The Underground Economy in Afghanistan

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The underground economy is a very complex structure, functioning outside the restrictions of legal and tax systems (Tradelinks, 2013). It is also vastly known as the world’s fastest growing economy. Afghanistan is a country located in Southern Asia, East of Iran and North and West of Pakistan. According to the official CIA website, the total population of this war-torn country is 31,108,077 (2013). The country of Afghanistan is often in the eyes of the media, and has had some very tough times because of its corrupt reputation. It is a country with many terrorist groups, such as Al Qaeda and Taliban. This essay will explore the underground economy in Afghanistan, specifically, what is happening in the country concerning guns, drugs and terrorism, what some potential outcomes could be, and the reasons behind them.

Firstly, we will uncover the reality of what is happening in Afghanistan. Some of the main groups in this ethnically-diverse country are the Afghanistan Project, Al Qaeda, Taliban, and the Haqqani Network just to name a few (understandingwar, 2013). These terrorist groups are all linked to the underground economy in Afghanistan through producing and distributing illegal drugs throughout the World. According to Washington Times, these illicit groups are raking in hundreds of millions of dollars through banned drugs, and produce up to 90% of the World’s supply of opium (2013). The country of Afghanistan has an 80% poverty rate and a per capita income of just $800. This ultimately leaves the unfortunate farmers no choice but to do anything they can to provide for their families. This includes growing opium, which is valued at $4500 per hectare, as opposed to growing wheat which is only valued at $266 (IAR 2013). Havocscope...

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