This survey report will help thegovernment of Afghanistan think through its approach toprivate sector development. Historically, there has been adearth of information and reliable statistics aboutAfghanistan's economy. This report reviews theconstraints that firms currently operating in Afghanistanface and provides a basis for possible policyrecommendations to address these constraints. It is hopedthat the report will be a useful tool to support investmentclimate reforms and enhance the private sector dialogue inAfghanistan. The report also identifies a group of emergingissues that include the interlinked issues ofcompetitiveness, innovation, and diversification. Despitestrong growth, policymakers should be concerned about thelack of entry of new firms, especially foreign firms, andthe lack of innovative behavior. These two factors indicatea lack of competitiveness and warrant further research. Anundiversified manufacturing sector that is overwhelminglylinked to the agriculture and agro-processing sectors arealso of concern. The strong growth trend itself needs moreevaluation. A country that has weak governance, poor factormarkets, and firms that are not innovative is unlikely toachieve sustainable long-term growth. The report discussesthe issues noted above, summarizes the status of reforms,and suggests some next steps, including further analyticwork on a number of topics, public private dialogue oncertain issues, and stronger government reform efforts.
PDF
download
878987797
028-85220240
