Afghanistan has made a number of significant strides in recent years, and it is steadily working toward financial independence. One of the most critical challenges to the stability and security of the country is unemployment. While a great deal of financial aid has flowed into Afghanistan to fuel economic development, most of it has not been directed toward relieving unemployment.
Experts estimate that Afghanistan has a 60 percent unemployment rate. In order to reduce this number, author Sayed Aziz Azimi, who is also the CEO of an Afghan company, recently proposed a set of initiatives to boost private-sector employment. Azimi is the CEO of Technologists, Inc., an engineering and management consulting company that focuses mostly on developing countries.
He said that moving forward, investors and donors could ultimately help to alleviate unemployment by directing their funds toward a few key initiatives. For instance, a program could be created to clean up Afghan cities. Many cities throughout Afghanistan have a major trash problem. If the government established designated landfills around major cities, then private firms could collect trash from the streets and households to develop a sanitation program that would simultaneously create jobs and improve health outcomes.
Another initiative that could drive down unemployment rates is loan insurance. Afghanistan has many motivated entrepreneurs who are poised to start exciting companies. However, few people have access to capital since banks’ interests run counter to the needs of a majority of small businesses in Afghanistan. Loan insurance would significantly reduce the risk incurred by banks for giving loans and remove some of the obstacles for small businesses.
High rates of employment tend to create stability and prosperity. By undertaking a few initiatives, Afghanistan could offer its people an improved quality of life.