Examining the Economic Policies of the Afghan Government for Combating Poverty and Inequality: A Comparative Study of the Karzai and Ghani Administrations (2001–2021)

Abstract

Following 2001 and the establishment of a new political system in Afghanistan, the government sought to facilitate national reconstruction, reduce poverty, and mitigate economic and social inequalities through a range of economic policies. During this period, economic policies were implemented in areas such as fiscal and monetary policy, employment generation, investment promotion, infrastructure development, rural development, agriculture, trade, and the enhancement of domestic revenues. Although these policies differed in terms of implementation approaches and priorities during the administrations of Hamid Karzai and Mohammad Ashraf Ghani, their overarching objective was the improvement of economic conditions and the enhancement of citizens’ living standards. This study aims to identify and examine the economic policies adopted by the Afghan government to combat poverty and inequality during the republican period (2001–2021). The central research question investigates which economic policies were implemented by the Afghan government during this period to reduce poverty and inequality, and how these policies can be categorized and compared across the Karzai and Ghani administrations. The primary hypothesis of the study is that the government's economic policies in both periods were largely focused on economic reconstruction, the expansion of public services, the attraction of investment, and the utilization of foreign aid; however, policy priorities and management approaches differed between the two administrations. The research employs a descriptive–analytical methodology, and the required data were collected and examined through library-based sources. Within this framework, government economic policies across various economic sectors were identified, classified, and comparatively analyzed. The findings indicate that during the Hamid Karzai administration, greater emphasis was placed on the initial reconstruction of the country, the expansion of public services, and extensive reliance on foreign assistance. In contrast, during the Mohammad Ashraf Ghani administration, greater attention was devoted to economic reforms, increasing domestic revenues, developing regional trade, and strengthening domestic production.