Private Sector Development and Economic Growth: Lessons from the U.S. Experience in Afghanistan
Abstract
Private Sector Development and Economic Growth: Lessons from the U.S. Experience in Afghanistan is the third in a series of lessons learned reports issued by the Special Inspector General for Afghanistan Reconstruction. The report examines how the U.S. government supported private sector development in Afghanistan since 2001 through efforts led by the U.S. Agency for International Development, with additional significant roles played by the Departments of State, Defense, Commerce, and Treasury. The report provides both the chronology of U.S. government support to private sector development and an in-depth look at the five major areas of economic intervention: creating an enabling environment, providing access to finance, promoting investment, developing regional and international trade, and supporting enterprises. The report identifies lessons to inform U.S. policies and actions at the onset of and throughout a reconstruction and provides recommendations for improving private sector development efforts. These lessons and recommendations are relevant for ongoing work in Afghanistan, where the United States remains engaged in building and supporting the Afghan economy, and in future endeavors to rebuild other weak states emerging from protracted conflict. Our analysis highlights the difficulties of supporting economic development in a war-shattered country. Afghanistan's early economic gains were largely due to post-conflict recovery and substantial foreign spending, and optimistic predictions of future progress did not reflect the nation's economic and security environment, the capacity of Afghan and U.S. institutions, or the impact of corruption. The United States also overestimated the speed at which Afghanistan could transition to a Western-style market economy.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2018
- Accession Number
- AD1139418
Entities
People
- Elizabeth Young
- Emily Bakos
- John Sopko
- Joseph Windrem
- Lauren Helinski
- Margaret Jacobson
- Mariam Jalalzada
- Nikolai Condee-padunov
- Olivia Paek
- Paul Fishstein
Organizations
- Special Inspector General for Afghanistan Reconstruction