|
Foreign Direct Investment
Foreign direct investment has grown dramatically in Afghanistan over the past four years. Much of that growth is attributable to growth from an almost unmeasurably low baseline, and much of it is due to native Afghans returning from exile. Foreign direct investment has, thus far, failed to deliver on its promise to grow the business infrastructure of a self-sufficient Afghan economy. Afghanistan remains largely a nation of raw exports and re-exports of goods made elsewhere in Central Asia and beyond that are being traded across its borders. While the legal framework appears to support predictability in investment and return, a lack of supporting institutions and underlying social factors conspire to make Afghanistan’s climate for foreign investment less attractive than those of the comparable alternatives.
|
