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Islamic Republic of Afghanistanجمهوری اسلامی افغانستان ( Jamhūrī-ye Islāmī-ye Afġānistān ) د افغانستان اسلامي جمهوریت ( Da Afġānistān Islāmī Jomhoriyat )
Flag Emblem
Anthem: Soroud-e Melli
Capitaland largest city	Kabul
Official languages	Pashto, Persian (Darī)
Government	Islamic Republic
• President	Hamed Karzai
• Vice President	Ahmad Zia Massoud
• Vice President	Karim Khalili
Independence from the United Kingdom of Great Britain and Ireland
• Declared	August 8 1919
• Recognized	August 19 1919
• Water (%)	n/a
Population
• 2005 estimate	29,863,000 (38th)
• 1979 census	13,051,358
GDP (PPP)	2006 estimate
• Total	$31.9 billion (91st)
• Per capita	$1,310 (162nd)
HDI (1993)	0.229 low (unranked)
Currency	Afghani (Af) (AFN)
Time zone	UTC+4:30
• Summer (DST)	UTC+4:30
Calling code	93
ISO 3166 code	AF
Internet TLD	.af
"Afghanistan" in the Encyclopædia Britannica Online Edition 2006.

Afghānistān, officially the Islamic Republic of Afghanistan (Pashto: د افغانستان اسلامي جمهوریت, Persian: جمهوری اسلامی افغانستان), is a landlocked country located in the heart of Asia and is variously designated within Central and/or South Asia as well as the Middle East. It has religious, ethno-linguistic, and geographic links with most of its neighbours. It is largely bordered by Pakistan in the south and east, Iran in the west, Turkmenistan, Uzbekistan and Tajikistan in the north, and the People's Republic of China in the far northeast. The name Afghanistan means the "Land of Afghans".

Afghanistan is a mosaic of ethnic groups, and a crossroads between the East and the West. It has been an ancient focal point of trade and migration. The region has seen many invaders or conquerors, including the Persian Empire, Alexander the Great, Muslim Arabs, Turkic and Mongol nomads, the British Empire, the Soviet Union and the United States of America.

Ahmad Shah Durrani created Afghanistan in the middle of the eighteenth century as a large state, with its capital at Kandahar. Subsequently, most of its territories were ceded to former neighboring countries by the early twentieth century, due to regional conflicts. On August 19 1919, following the third Anglo-Afghan war, the country regained full independence from Great Britain over its foreign affairs.

Since 1978, Afghanistan has suffered through an almost continuous and brutal civil war, which has included foreign interventions in the form of the 1979 Soviet invasion of Afghanistan and the 2001 conflict with the US in which the then ruling Taliban government was toppled. In December 2001, the United Nations Security Council authorized the creation of an International Security Assistance Force (ISAF). This force, composed of NATO troops, has been involved in assisting the government of President Hamid Karzai in establishing authority across the nation. In 2005, the United States and Afghanistan signed a strategic partnership agreement committing both nations to a long-term relationship. In the meantime, about 30 billion US dollars have also been provided by the international community for the reconstruction of the country.

Etymology

The name Afghānistān translates to the "Land of Afghans". Its modern usage derives from the word Afghan.

Origin of the word "Afghan"

The Pashtuns began using the term Afghan as a name for themselves from at least the Islamic period and onwards. According to W. K. Frazier Tyler, M. C. Gillet and several other scholars, "The word Afghan first appears in history in the Hudud-al-Alam in 982 AD." In this regard, the Encyclopædia Iranica states:

From a more limited, ethnological point of view, "Afghān" is the term by which the Persian-speakers of Afghanistan (and the non-Paštō-speaking ethnic groups generally) designate the Paštūn. The equation Afghan Paštūn has been propagated all the more, both in and beyond Afghanistan, because the Paštūn tribal confederation is by far the most important in the country, numerically and politically.

It further explains:

The term "Afghān" has probably designated the Paštūn since ancient times. Under the form Avagānā, this ethnic group is first mentioned by the Indian astronomer Varāha Mihira in the beginning of the 6th century CE in his Brihat-samhita.

This information is supported by traditional Pashto literature, for example in the writings of the seventeenth century Pashto poet Khushal Khan Khattak:

Pull out your sword and slay any one, that says Pashtun and Afghan are not one! Arabs know this and so do Romans: Afghans are Pashtuns, Pashtuns are Afghans!

Meaning and origin of the name "Afghanistan"

The last part of the name, -stān, is an Indo-Iranian suffix for "place", prominent in many languages of the region.

The term "Afghanistan", meaning the "Land of Afghans", was mentioned by the sixteenth century Mughal Emperor Babur in his memoirs, referring to the territories south of Kabul that were inhabited by Pashtuns (called "Afghans" by Babur). Regarding the modern nation "Afghanistan", the Encyclopædia of Islam states:

Afghānistān has borne that name only since the middle of the eighteenth century, when the supremacy of the Afghan race (Pashtuns) became assured: previously various districts bore distinct appellations, but the country was not a definite political unit, and its component parts were not bound together by any identity of race or language. The earlier meaning of the word was simply “the land of the Afghans”, a limited territory which did not include many parts of the present state but did comprise large districts now either independent or within the boundary of Pakistan.

Until the nineteenth century, the name was only used for the traditional lands of the Pashtuns, while the kingdom as a whole was known as the Kingdom of Kabul, as mentioned by the British statesman and historian Mountstuart Elphinstone. Other parts of the country were at certain periods recognized as independent kingdoms, such as the Kingdom of Balkh in the late eighteenth and early nineteenth centuries.

With the expansion and centralization of the country, Afghan authorities adopted and extended the name "Afghanistan" to the entire kingdom, after its English translation, "Afghanland", had already appeared in various treaties between British Raj and Qajarid Persia, referring to the lands that were subject to the Pashtun Barakzai Dynasty of Kabul. "Afghanistan" as the name for the entire kingdom was mentioned in 1857 by Frederick Engels. It became the official name when the country was recognized by the world community in 1919, after regaining its full independence from the British, and was confirmed as such in the nation's 1923 constitution.

Geography

Afghanistan is a land-locked and mountainous country in central Asia, with plains in the north and southwest. The highest point is Nowshak, at 7,485 m (24,557 ft) above sea level. Large parts of the country are dry, and fresh water supplies are limited. Afghanistan has a continental climate, with hot summers and cold winters. The country is frequently subject to minor earthquakes, mainly in the northeast of Hindu Kush mountain areas.

At 249,984 mi² (647,500 km²), Afghanistan is the world's 41st-largest country (after Myanmar). Comparatively, it is slightly smaller than the U.S. state of Texas.

The country's natural resources include gold, silver, copper, zinc and iron ore in southeastern areas; precious and semi-precious stones such as lapis, emerald and azure in the north-east; and potentially significant petroleum and natural gas reserves in the north. The country also has coal, chromite, talc, barites, sulfur, lead, and salt. However, these significant mineral and energy resources remain largely untapped due to the effects of the Soviet invasion and the subsequent civil war. Plans are underway to begin extracting them in the near future.

History

Excavation of prehistoric sites by Louis Dupree, the University of Pennsylvania, the Smithsonian Institute and others suggests that humans were living in what is now Afghanistan at least 50,000 years ago, and that farming communities of the area were among the earliest in the world.

Afghanistan is a country at a unique nexus point where numerous Indo-European civilizations have interacted and often fought, and was an important site of early historical activity. Through the ages, the region has been home to various people, among them the Aryan (Indo-Iranian) tribes, such as the Kambojas, Bactrians, Persians, etc.

It also has been invaded or conquered by a host of people, including the Median and Persian Empires, Greeks, Kushans, Hepthalites, Arabs, Turks, Mongols, British, Soviets, and most recently by the Americans and their allies. On the other hand, native entities have invaded or conquered surrounding regions in Iranian Plateau and Indian Subcontinent to form empires of their own.

Between 2000 and 1200 BC, waves of Indo-European-speaking Aryans from the north of Amu Darya are thought to have flooded into northern Afghanistan and then spread south towards India and west towards Persia, setting up a nation that during the rule of Medes and Achaemenid Persians became known as Aryānām Xšaθra or Airyānem Vāejah. Later, during the rule of Ashkanian, Sasanian and after, it was called Erānshahr (Template:PerB - Īrānšahr) meaning "Dominion of the Aryans", which included large parts of Mesopotamia, the Caucasus, Armenia, Azerbaijan, Iran and modern-day Central Asia (Afghanistan, Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, the western part of Pakistan, etc., depending on differing interpretations).

It has been speculated that Zoroastrianism might have originated in what is now Afghanistan between 1800 to 800 BC. Ancient Eastern Iranian languages, such as Avestan, may have been spoken in this region around a similar time-line with the rise of Zoroastrianism. By the middle of the sixth century BC, the Persian Empire of the Achaemenids supplanted the Median Empire and incorporated what was known as Persia to the Greeks within its boundaries; and by 330 BC, Alexander the Great had invaded Afghanistan and conquered the surrounding regions. Following Alexander's brief occupation, the Hellenistic successor states of the Seleucids and Greco-Bactrians controlled the area, while the Mauryas from India annexed the southeast for a time and introduced Buddhism to the region until the area returned to the Bactrian rule.

During the first century AD, the Kushans created a vast empire centered in modern Afghanistan and were patrons of Buddhist culture. The Kushans were defeated by the Sassanids in the third century. Although various rulers calling themselves Kushans (and generally known as Kushano-Sasanians) continued to rule at least parts of the region today known as Afghanistan, they were probably more or less subject to the Sassanids. The late Kushans were followed by the Kidarite Huns who, in turn, were replaced by the short-lived but powerful Hephthalites, as rulers of the region in the first half of the fifth century. The Hephthalites were defeated by the Sasanian king Khosrau I in AD 557, who re-established Sasanian power in Persia. However, the successors of Kushans and Hepthalites established a small dynasty in Kabulistan called Kushano-Hephthalites or Kabul-Shahan and were later defeated by the Muslim Armies.

In the Middle Ages, up to the eighteenth century, the region was known as Khorasan. Several important centers of Khorāsān are thus located in modern Afghanistan, such as Balkh, Herat, Ghazni and Kabul.

. In the Middle Ages the territory that is today Afghanistan was known as Khorasan

The region of Afghanistan became the center of various important empires, including that of the Samanids (875-999), Ghaznavids (977-1187), Seljukids (1037-1194), Ghurids (1149-1212), and Timurids (1370-1506). Among them, the periods of Ghaznavids of Ghazni, and Timurids of Herat are considered as some of the most brilliant eras of Afghanistan's history.

In 1219, the region was overrun by the Mongols under Genghis Khan, who devastated the land. Their rule continued with the Ilkhanates, and was extended further following the invasion of Timur Lang ("Tamerlane"), a ruler from Central Asia. In 1504, Babur, a descendant of both Timur Lang and Genghis Khan, established the Mughal Empire with its capital at Kabul. By the early 1700s, Afghanistan was controlled by several ruling groups: Uzbeks to the north, Safavids to the west and the remaining larger area by the Mughals or self-ruled by local Afghan tribes.

In 1709, Mirwais Khan Hotak, a local Afghan (Pashtun) from the Ghilzai clan, overthrew and killed Gurgin Khan, the Safavid governor of Kandahar. Mirwais Khan successfully defeated the Persians, who were attempting to convert the local population of Kandahar from Sunni to Shia sect of Islam. Mirwais held the region of Kandahar until his death in 1715 and was succeeded by his son Mir Mahmud Hotaki. In 1722, Mir Mahmud led an Afghan army to Isfahan (now in Iran), sacked the city and proclaimed himself King of Persia. However, the great majority still rejected the Afghan regime as usurping, and after the massacre of thousands of civilians in Isfahan by the Afghans – including more than three thousand religious scholars, nobles, and members of the Safavid family – the Hotaki dynasty was eventually removed from power by a new ruler, Nadir Shah of Persia.

In 1738, Nadir Shah and his army, which included four thousand Pashtuns of the Abdali clan, conquered the region of Kandahar; in the same year he occupied Ghazni, Kabul and Lahore. On June 19, 1747, Nadir Shah was assassinated, possibly planned by his nephew Ali Qoli. In the same year, one of Nadir's military commanders and personal bodyguard, Ahmad Shah Abdali, a Pashtun from the Abdali clan, called for a loya jirga following Nadir's death. The Afghans gathered at Kandahar and chose Ahmad Shah as their King. Since then, he is often regarded as the founder of modern Afghanistan. After the inauguration, he changed his title or clans' name to "Durrani", which derives from the Persian word Durr, meaning "Pearl".

By 1751, Ahmad Shah Durrani and his Afghan army conquered the entire present-day Afghanistan, Pakistan, Khorasan and Kohistan provinces of Iran, along with Delhi in India. In October 1772, Ahmad Shah retired to his home in Maruf, Kandahar, where he died peacefully. He was succeeded by his son, Timur Shah Durrani, who transferred the capital from Kandahar to Kabul. Timur died in 1793 and was finally succeeded by his son Zaman Shah Durrani.

During the nineteenth century, following the Anglo-Afghan wars (fought 1839-42, 1878-80, and lastly in 1919) and the ascension of the Barakzai dynasty, Afghanistan saw much of its territory and autonomy ceded to the United Kingdom. The UK exercised a great deal of influence, and it was not until King Amanullah Khan acceded to the throne in 1919 that Afghanistan re-gained complete independence over its foreign affairs (see "The Great Game"). During the period of British intervention in Afghanistan, ethnic Pashtun territories were divided by the Durand Line. This would lead to strained relations between Afghanistan and British India – and later the new state of Pakistan – over what came to be known as the Pashtunistan debate.

The longest period of stability in Afghanistan was between 1933 and 1973, when the country was under the rule of King Zahir Shah. However, in 1973, Zahir Shah's brother-in-law, Sardar Daoud Khan, launched a bloodless coup. Daoud Khan and his entire family were later murdered in 1978, when the communist People's Democratic Party of Afghanistan launched a coup known as the Great Saur Revolution and took over the government.

Opposition against, and conflict within, the series of communist governments that followed, was considerable. As part of a Cold War strategy, in 1979 the United States government under President Jimmy Carter and National Security Advisor Zbigniew Brzezinski began to covertly fund and train anti-government Mujahideen forces through the Pakistani secret service agency known as Inter Services Intelligence (ISI), who were derived from discontented Muslims in the country that opposed the official atheism of the Marxist regime. In order to bolster the local Communist forces, the Soviet Union—citing the 1978 Treaty of Friendship, Cooperation and Good Neighborliness that had been signed between the two countries—intervened on December 24, 1979. According to media and official government sources, between 110,000 to 150,000 Soviet troops, assisted by another 100,000 or so pro-communist Afghan troops, were present in Afghanistan. The Soviet occupation resulted in a mass exodus of over 5 million Afghans that moved into refugee camps in neighboring Pakistan, Iran and other countries. More than 3 million settled in Pakistan, over a million in Iran and many others in different countries of the world. Faced with mounting international pressure and the loss of over 15,000 Soviet soldiers as a result of Mujahideen opposition forces trained by the United States, Pakistan, and other foreign governments, the Soviets withdrew ten years later, in 1989.

The Soviet withdrawal from the Democratic Republic of Afghanistan was seen as an ideological victory in the US, which had backed the Mujahideen through three US presidential administrations in order to counter Soviet influence in the vicinity of the oil-rich Persian Gulf. Following the removal of the Soviet forces in 1989, the US and its allies lost interest in Afghanistan and did little to help rebuild the war-ravaged country or influence events there. The USSR continued to support President Najibullah (formerly the head of the secret service, KHAD) until his downfall in 1992. However, the absence of the Soviet forces resulted in the downfall of the pro-communist government as it steadily lost ground to the guerrilla forces.

The result of the fighting was that the vast majority of the elites and intellectuals had escaped to take refuge abroad, a dangerous leadership vacuum thereby coming into existence. Fighting continued among the various Mujahideen factions, eventually giving rise to a state of warlordism. The most serious fighting during this growing civil conflict occurred in 1994, when over 10,000 people were killed in Kabul. The chaos and corruption that dominated post-Soviet Afghanistan in turn spawned the rise of the Taliban, who were mostly Pashtuns from the Helmand and Kandahar region.

The Taliban developed as a politico-religious force, and eventually seized Kabul in 1996. By the end of 2000, the Taliban were able to capture 95% of the country, aside from the opposition (Afghan Northern Alliance) strongholds primarily found in the northeast corner of Badakhshan Province. The Taliban sought to impose a strict interpretation of Islamic Sharia law and were later implicated as supporters of terrorists, most notably by harbouring Osama bin Laden's Al-Qaeda network.

During the Taliban's seven-year rule, much of the population experienced restrictions on their freedom and violations of their human rights. Women were banned from jobs, girls forbidden to attend schools or universities. Those who resisted were punished instantly. Communists were systematically eradicated and thieves were punished by amputating one of their hands or feet. Meanwhile, the Taliban managed to nearly eradicate the majority of the opium production by 2001.

Following the September 11, 2001 attacks, the United States launched Operation Enduring Freedom, a military campaign to destroy the Al-Qaeda terrorist network operating in Afghanistan and overthrow their host (the Taliban government). The US made common cause with the Afghan Northern Alliance to achieve its ends.

In December 2001, major leaders from the Afghan opposition groups and diaspora met in Bonn, Germany, and agreed on a plan for the formulation of a new democratic government that resulted in the inauguration of Hamid Karzai, a Pashtun from the southern city of Kandahar, as Chairman of the Afghan Interim Authority.

After a nationwide Loya Jirga in 2002, Karzai was chosen by the representatives to assume the title as Interim President of Afghanistan. In 2003, the country convened a Constitutional Loya Jirga (Council of Elders) and ratified a new constitution the following year. Hamid Karzai was elected President in a nationwide election in October 2004. Legislative elections were held in September 2005. The National Assembly – the first freely elected legislature in Afghanistan since 1973 – sat in December 2005, and was noteworthy for the inclusion of women as voters, candidates, and elected members.

As the country continues to rebuild and recover, it is still struggling against poverty, poor infrastructure, large concentration of land mines and other unexploded ordnance on earth, as well as a huge illegal poppy cultivation and opium trade. Afghanistan also remains subject to occasionally violent political jockeying. The country continues to grapple with the Taliban insurgency, the threat of attacks from a few remaining al Qaeda, and instability, particularly in the north, caused by the remaining few semi-independent warlords.

Latest on Afghanistan

At the start of 2007, reports of the Taliban's increasing presence in Afghanistan led the US to consider longer tours of duty and even an increase in troop numbers. According to a report filed by Robert Burns of Associated Press on January 16, 2007, "U.S. military officials cited new evidence that the Pakistani military, which has long-standing ties to the Taliban movement, has turned a blind eye to the incursions." Also, "The number of insurgent attacks is up 300 percent since September , when the Pakistani government put into effect a peace arrangement with tribal leaders in the north Waziristan area, along Afghanistan's eastern border, a U.S. military intelligence officer told reporters." Opium production has also steadily increased, accounting for one-third to two-third of the country's GDP .

Government and Politics

Politics in Afghanistan has historically consisted of power struggles, bloody coups and unstable transfers of power. With the exception of a military junta, the country has been governed by nearly every system of government over the past century, including a monarchy, republic, theocracy and communist state. The constitution ratified by the 2003 Loya jirga restructured the government as an Islamic republic consisting of three branches, (executive, legislature and judiciary).

Afghanistan is currently led by President Hamid Karzai, who was elected in October 2004. The current parliament was elected in 2005. Among the elected officials were former mujahadeen, Taliban members, communists, reformists, and Islamic fundamentalists. 28% of the delegates elected were women, 3% more than the 25% minimum guaranteed under the constitution. This made Afghanistan, long known under the Taliban for its oppression of women, one of the leading countries in terms of female representation.

The Supreme Court of Afghanistan is currently led by Chief Justice Abdul Salam Azimi, a former university professor who had been legal advisor to the president. The previous court, appointed during the time of the interim government, had been dominated by fundamentalist religious figures, including Chief Justice Faisal Ahmad Shinwari. The court had issued numerous questionable rulings, such as banning cable television, seeking to ban a candidate in the 2004 presidential election and limiting the rights of women, as well as overstepping its constitutional authority by issuing rulings on subjects not yet brought before the court. The current court is seen as more moderate and led by more technocrats than the previous court, although it has yet to issue any rulings.

Law Enforcement

Afghanistan currently has 60,000 police force. It plans to recruit 20,000 more police officers so the that the total number can reach up to 80,000. Although the police officially are responsible for maintaining civil order, local and regional military commanders continue to exercise control in the hinterland. Police have been accused of improper treatment and detention of prisoners. In 2003 the mandate of the International Security Assistance Force, now under command of the North Atlantic Treaty Organization (NATO) was extended and expanded beyond the Kabul area. However, in some areas unoccupied by those forces, local militias maintain control. In many areas, crimes have gone uninvestigated because of insufficient police and/or communications. Troops of the Afghan National Army have been sent to quell fighting in some regions lacking police protection.

Provinces and districts

Afghanistan is administratively divided into thirty-four provinces (welayats) and for each province there is a capital.

Each province is then divided to districts and each district normally covers a city or several towns.

The Governor of the province is appointed by the Ministry of Interior and the Prefects for other districts of the province will be appointed by the governor. The governor is the representative of the government and is responsible for all administrative and formal issues. The Chief of Security and Police is normally appointed by the Ministry of Interior and works together with the governor on law enforcement.

There is an exception in Kabul where the Mayor of the city is selected by the President and is completely independent from the prefecture of the Kabul Province.

Economy

Afghanistan is an extremely impoverished country, one of the world's poorest and least developed nations. Two-thirds of the population lives on less than 2 US dollars a day. The economy has suffered greatly from the recent political and military unrest since the 1979 Soviet invasion and subsequent conflicts, while severe drought added to the nation's difficulties in 1998-2001.

The economically active population in 2002 was about 11 million (out of a total of an estimated 29 million). While there are no official unemployment rate estimates available, it is evident that it is high. The number of non-skilled young people is estimated at 3 million, which is likely to increase by some 300,000 per annum.

However, Afghanistan has achieved respectable economic recovery and growth since 2002. The real value of non-drug GDP increased by 29% in 2002, 16% in 2003, 8% in 2004 and 14% in 2005. As much as one-third of Afghanistan's GDP comes from growing poppy and illicit drugs including opium and its two derivatives, morphine and heroin, as well as hashish production.

On a positive note, international efforts to rebuild Afghanistan led to the formation of the Afghan Interim Authority (AIA) as a result of the December 2001 Bonn Agreement, and later addressed at the Tokyo Donors Conference for Afghan Reconstruction in 2002, where 4.5 billion US dollars were committed in a trust fund to be administered by the World Bank Group. Another 4 billion US dollars were committed in 2004 followed by 10.5 billion US dollars in early 2006 at the London Conference. In early 2007, 11.6 billion dollars were committed to the country from the United States alone. Priority areas for reconstruction include the rebuilding of the educational system, health, and sanitation facilities, enhancement of administrative capacity, the development of the agricultural sector, and the rebuilding of road, energy, and telecommunication links.

According to a 2004 report by the Asian Development Bank, the present reconstruction effort is two-pronged: first it focuses on rebuilding critical physical infrastructure, and second, on building modern public sector institutions from the remnants of Soviet style planning to ones that promote market-led development. In 2006, two US companies, Black & Veatch and the Louis Berger Group, have won a US 1.4 billion dollar contract to rebuild roads, power lines and water supply systems of Afghanistan.

One of the main drivers for the current economic recovery is the return of over 4 million refugees from neighbouring countries and the West, who brought with them fresh energy, entrepreneurship and wealth-creating skills as well as much needed funds to start up businesses. What is also helping is the estimated US 2-3 billion dollars in international assistance every year, the partial recovery of the agricultural sector, and the reestablishment of market institutions. Private developments are also beginning to get underway. In 2006, a Dubai-based Afghan family opened a $25 million Coca Cola bottling plant in Afghanistan.

While the country's current account deficit is largely financed with the donor money, only a small portion – about 15% – is provided directly to the government budget. The rest is provided to non-budgetary expenditure and donor-designated projects through the United Nations system and non-governmental organizations. The government had a central budget of only $350 million in 2003 and an estimated $550 million in 2004. The country's foreign exchange reserves totals about $500 million. Revenue is mostly generated through customs, as income and corporate tax bases are negligible.

Inflation had been a major problem until 2002. However, the depreciation of the Afghani in 2002 after the introduction of the new notes (which replaced 1,000 old Afghani by 1 new Afghani) coupled with the relative stability compared to previous periods has helped prices to stabilize and even decrease between December 2002 and February 2003, reflecting the turnaround appreciation of the new Afghani currency. Since then, the index has indicated stability, with a moderate increase toward late 2003.

The Afghan government and international donors seem to remain committed to improving access to basic necessities, infrastructure development, education, housing and economic reform. The central government is also focusing on improved revenue collection and public sector expenditure discipline. The rebuilding of the financial sector seems to have been so far successful. Money can now be transferred in and out of the country via official banking channels. Since 2003, over fourteen new banks have opened in the country, including Standard Chartered Bank, Afghanistan International Bank, Kabul Bank, Azizi Bank, First MicroFinanceBank, and others. A new law on private investment provides three to seven-year tax holidays to eligible companies and a four-year exemption from exports tariffs and duties.

Afghanistan is a full member of SAARC and ECO regional organizations, as well as the Organization of the Islamic Conference.

Some private investment projects, backed with national support, are also beginning to pick up steam in Afghanistan. An initial concept design called the City of Light Development, envisioned by Dr. Hisham N. Ashkouri, Principal of ARCADD, Inc. for the development and the implementation of a privately based investment enterprise has been proposed for multi-function commercial, historic and cultural development within the limits of the Old City of Kabul along the Southern side of the Kabul River and along Jade Meywand Avenue, revitalizing some of the most commercial and historic districts in the City of Kabul, which contains numerous historic mosques and shrines as well as viable commercial activities among war damaged buildings. Also incorporated in the design is a new complex for the Afghan National Museum.

While these improvements will help rebuild a strong basis for the nation in the future, for now, half the population continues to suffer from insufficient food, clothing, housing, and other problems exacerbated by military operations and political uncertainties. The government is not strong enough to collect customs duties from all the provinces due to the power of the warlords. Fraud is widespread and "corruption is rife within many Afghan government organs.

The overall good news is the country has potential to quickly come out of poverty and become an economically stable country. This is due to many reports showing that the country has possession of mass amounts of high demand natural resources and minerals. According to the US Geological Survey and the Afghan Ministry of Mines and Industry, Afghanistan may be possessing up to 36 trillion cubic feet of natural gas, 3.6 billion barrels of petroleum and up to 1,325 million barrels of natural gas liquids. This could mark the turning point in Afghanistan’s reconstruction efforts. Energy exports could generate the revenue that Afghan officials need to modernize the country’s infrastructure and expand economic opportunities for the beleaguered and fractious population. Other reports suggest that the country has huge amounts of gold, copper, coal, iron ore and other rich minerals.

Demographics

The population of Afghanistan is divided into a wide variety of ethnic groups. Because a systematic census has not been held in the country in decades, exact figures about the size and composition of the various ethnic groups are not available. Therefore most figures are approximations only.

On a functional level, Afghanistan cannot be subjectively examined under the Western conception of either a state or a nation. The country simply does not operate in any sense of either definition at this time. Both a limited security apparatus and stalled international support have done little to cultivate ancient divisions based on ethnic and religious elements. J. Feiser, Asia Times

• Afghanistan
• Central Asian countries
• Landlocked countries
• Middle Eastern countries
• South Asian countries
• SAARC members
• Least Developed Countries
• Territories under military occupation
• Constitutional republics
• Iranian Plateau