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THE ECONOMY
When Afghanistan began to plan the development of its economy in the
mid-1950s, it lacked not only the necessary social organization and
institutions for modern economic activities but also managerial and
technical skills. The country was at a much lower stage of economic
development than most of its neighbours. Between 1956 and 1979, however,
the country's economic growth was guided by several five-year and
seven-year plans and was aided by extensive foreign assistance, primarily
from the Soviet Union and the United States. Roads, dams, power plants,
and factories were constructed, irrigation projects carried out, and
education broadened.
The Soviet invasion in 1979 and the subsequent civil war severely
disrupted Afghanistan's economic development. Agricultural production
declined, food shortages were reported, and, with the exception
of natural gas production and some other industries considered essential
by the Soviet Union, industrial output stagnated. Thus, Afghanistan
remains economically one of the world's poorest countries. |
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