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War and Underdevelopment$
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Frances Stewart and Valpy Fitzgerald

Print publication date: 2000

Print ISBN-13: 9780199241880

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780199241880.001.0001

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Afghanistan: The Economic and Social Impact of Conflict

Afghanistan: The Economic and Social Impact of Conflict

(p.21) 2 Afghanistan: The Economic and Social Impact of Conflict
War and Underdevelopment

Peter Marsden

Emma Samman

Oxford University Press

In most respects, Afghanistan closely conforms to the model of a war-torn society. It exhibits all the expected features of macroeconomic decline, following the near-collapse of its political system. Government spending has fallen in all sectors except the military. Household entitlements have been correspondingly adversely affected. This chapter attempts to measure the cost of war at the macro- and mesolevel, and to assess its impact on individual households and communities. Throughout, it draws comparisons between Afghanistan's pre-war and wartime performance. To establish counterfactual points of reference, Afghanistan is compared with Nepal — which in many ways resembled Afghanistan prior to the war — and with the least-developed countries (LDCs) as a whole.

Keywords:   macroeconomic decline, government spending, household entitlements, Nepal, Afghanistan

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