Abstract

One of the poorest countries in the world, the people of Afghanistan gained a chance for peace with the collapse of the Taliban. Whether the country can find its way forward from a precarious position to a democratic and peaceful future will depend on how it responds to the challenge of globalization and constructs a viable economic system. The rate of economic growth and integration into the world capitalist economy for developing countries depends primarily upon any given country's political capacities. Afghanistan ranks low on all three indicators of political capacity: extractive capability, institutional credibility, and transparency. Globalization is a multifaceted process. In its ability to compete in the global economy, Afghanistan is beginning the contest in arrears with little political capacity and experience in capitalist, market-based economics. Often buffeted historically by external forces and actors, two global wars are intersecting in the country today: those of narcotics and terrorism.

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