The Investment Climate in Afghanistan : Exploiting Opportunities in an Uncertain Environment

In a post-conflict environment, attracting new foreign and domestic firms is central to private sector development. Existing firms at the end of sustained conflict are typically state-owned, are highly undercapitalized, have weak or nonexistent management, have a deskilled and underemployed labor force, and are in need of significant new capital investment. As is the case in any business environment, particularly in post-conflict countries, new investment decisions (into existing or new firms) usually depend on the availability of five basic factors: political and economic stability and security, clear unambiguous regulations, reasonable tax rates that are equitably enforced, access to finance and infrastructure, and an appropriately skilled workforce. In Afghanistan, these conditions are lacking. This report has been prepared to assist the government of Afghanistan to address its private sector development challenges. It acknowledges the achievements that have been accomplished since the fall of the Taliban regime, and it highlights both the investments that have taken place and the opportunities that remain to be captured. More important, it reviews the constraints that firms currently operating in Afghanistan face and makes policy recommendations on how these constraints can be addressed. In addition to a survey of 338 firms, the study makes reference to the numerous studies on the private sector that have been conducted recently.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2005-12
Subjects:	ACCOUNTABILITY, ACCOUNTING, AIR, ANTICOMPETITIVE PRACTICES, AVERAGE CAPACITY, AVERAGE CAPACITY UTILIZATION, BANKING LAWS, BANKING SECTOR, BANKING SERVICES, BANKING SYSTEM, BASIC SERVICES, BRIDGE, BUSINESS ENVIRONMENT, CAPITAL INVESTMENT, CAPITAL STOCK, CARRIERS, CENTRAL ASIAN, CIVIL SERVICE, COMMERCIAL CREDIT, COMPANY, COST OF TRANSPORT, COSTS OF SERVICE, COSTS OF SERVICE PROVISION, CREDIT RATING, CREDIT RATING AGENCIES, CREDIT UNIONS, CUSTOMS, CUSTOMS ADMINISTRATION, CUSTOMS CLEARANCE, CUSTOMS DEPARTMENT, CUSTOMS MODERNIZATION, CUSTOMS OFFICIALS, CUSTOMS TARIFFS, DEBT, DISPUTE RESOLUTION, DOMESTIC FIRMS, DOMESTIC INVESTMENT, DOMESTIC MARKET, ECONOMIC GROWTH, ECONOMIC STABILITY, EMPLOYMENT, ENTERPRISE REFORM, EXPANSION, FACTORING, FINANCIAL LEASING, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL SYSTEM, FIRMS, FOREIGN COMPANIES, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN MARKETS, FOREIGN TRADE, FREIGHT, GROSS PROFIT, HIGHWAYS, IMPORTED INPUTS, INDUSTRIAL ENTERPRISES, INFLATION, INSPECTION, INSURANCE, INTERNATIONAL COMMUNITY, INVESTMENT ACTIVITY, INVESTMENT CLIMATE, INVESTMENT CLIMATE ASSESSMENT, INVESTMENT CLIMATE CONSTRAINTS, INVESTMENT DECISIONS, INVESTMENT GROWTH, INVESTMENT PROGRAM, LABOR FORCE, LABOR PRODUCTIVITY, LEGAL FRAMEWORK, LEGAL SYSTEMS, LEGISLATION, LOCAL FIRMS, LOCAL MARKET, MANUFACTURERS, MEDIUM ENTERPRISES, MICROENTERPRISES, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE INSTITUTIONS, MICROFINANCE SECTOR, NEIGHBORING COUNTRIES, NEW ENTRANTS, NONBANK FINANCIAL INSTITUTIONS, NONGOVERNMENTAL ORGANIZATIONS, OPEN ECONOMIES, PATRONAGE, POLICE, POLICY BARRIERS, PREFERENTIAL TRADE, PREFERENTIAL TRADE ARRANGEMENTS, PRIVATE COMMERCIAL BANKS, PRIVATE FIRMS, PRIVATE INVESTMENT, PRIVATE SECTOR, PRIVATE SECTOR ACTIVITY, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR INVESTMENT, PRIVATE SECTOR PLAYERS, PRIVATE TRANSPORT, PRIVATIZATION, PRIVATIZATION POLICY, PRODUCTIVITY, PROPERTY RIGHTS, PROVISION OF INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC POLICY, PUBLIC UTILITIES, PUBLIC-PRIVATE PARTNERSHIPS, RAILROADS, RATING AGENCIES, REDUCING UNCERTAINTY, REGULATORY FRAMEWORK, REGULATORY ISSUES, REMOVING BARRIERS, RING ROAD, RISKY INVESTMENT, ROAD, ROAD NETWORK, ROADS, SAVINGS, SME, STATEMENT, SUB-SAHARAN AFRICA, TARIFF STRUCTURE, TARIFF STRUCTURES, TAX, TAX ADMINISTRATION, TAX BASE, TAX INCENTIVES, TAX POLICY, TAX RATES, TAX REFORM, TRADE AGREEMENTS, TRADE CREDIT, TRADE FACILITATION, TRADE FACILITATION SERVICES, TRADE POLICY, TRADE REFORM, TRADERS, TRANSACTIONS COSTS, TRANSPORT, TRANSPORT AGREEMENTS, TRANSPORT COMPANIES, TRANSPORT NETWORK, TRANSPORT SECTOR, TRANSPORT SERVICE, TRAVEL TIMES, VEHICLE, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2005/12/6676155/investment-climate-afghanistan-exploiting-opportunities-uncertain-environment https://hdl.handle.net/10986/8484
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