Revenue and state building in Afghanistan

Afghanistan’s socio- economic conditions and state institutions changed dramatically after 2001. This was realised through both substantial military and economic contribution from the international community and sacrifices made by Afghans. Yet without significant flows of aid to Afghanistan post- 2014, the situation remains fragile and the state- building project appears unsustainable. While the international community has promised to provide continuing foreign aid to Afghanistan, global changes such as conflicts in the Middle East and Ukraine and the effects of global financial crises have diverted the donors’ attention from Afghanistan. Total aid to Afghanistan declined by 58 per cent in 2015 compared to the previous year. The failure of President Karzai effectively to manage the 2014 presidential election impacted adversely upon economic growth.