There have been substantial improvementsin development outcomes in Afghanistan since 2001,particularly in terms of improved access to basic servicessuch as water, sanitation, and electricity, and increasedhuman development in education and health. However, somegains are now being eroded due to growing insecurity,stagnating growth, and rising levels of poverty. Economicgrowth in Afghanistan has slowed after a period of rapidgrowth between 2003 and 2012. While the Government ofAfghanistan is committed to an ambitious reform program, itis doing so in the midst of political and economicuncertainty. Afghanistan remains a deeply fragile andconflict-affected country. The long years of war havehollowed out state institutions and led to widespreaddisenchantment with the ruling elite and have fueled theTaliban insurgency. Internal displacement as a result ofconflict has led to over 1 million internally displacedpersons.At the same time, the country’s difficulttopography, vulnerability to climate change, and growingpopulation at 3 percent a year have imposed additionalconstraints on development. For economic growth to have anyimpact on poverty, it has to be particularly high and broadbased to compensate for the high population growth rate andyouth bulge. At nearly 50 percent, Afghanistan’s proportionof population aged 15 years or below is the second highestin the world. Poor nutrition, especially of children,threatens welfare and education gains.
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