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KABUL – Afghanistan’s economy and living standards of its people have plummeted drastically under the Taliban rule, says a recent United Nations report. The study reveals a stark decline in both the economy and living standards, with women and girls disproportionately affected by the ongoing crisis.
The United Nations Development Programme underscores the severity of the situation, citing high levels of multidimensional deprivation, slow growth, and urgent humanitarian needs. Of particular concern is the severe impact on the rights and freedoms of women and girls under the Taliban regime.
Since the regime change in August 2021, Afghanistan’s economic situation has worsened considerably, with a significant challenge being the limited availability of loans for small businesses. The absence of an educated managerial class dedicated to regulatory development and enforcement poses a critical obstacle for the country’s economic recovery.
The report highlights the diminishing technical expertise in public institutions, especially in the economic sector, hindering policy formulation, regulatory implementation, and essential service delivery to sectors like agriculture, industry, and trade.
Of significant concern is the contraction of the microfinance sector, a crucial source of financing for start-ups and women-led enterprises. The report reveals a staggering 60 percent decline in the sector’s loan portfolio, with a significant drop in the number of branches and the share of female clients.
While some improvement in the standard of living for Afghans is noted, with a decrease in subsistence insecurity from 85 percent to 69 percent, the impact on women remains severe. The report highlights a sharp decrease in women’s employment share, contrasting with an increase for men, suggesting gender-based labor substitution.
The findings underscore the urgent need for attention to Afghanistan’s economic challenges, with a focus on empowering women and rebuilding the microfinance sector to foster sustainable growth and improved living conditions.
