Afghan daily blames free market for price rises

The increase in food prices has seriously increased the concerns of the people of Afghanistan. The demonstration by local people in Jalalabad city, Nangarhar Province, over food price rises was an illustration of people's serious annoyance over the bad economic situation. It was internationally predicted that food prices would increase dramatically and the government should make plans to face this challenge. Even the UN, International Monetary Fund [IMF] and other political and financial international organizations expressed concern over this issue.

Also, the spokesman of the president said the reason for food price rises was an international increase in food prices, not confined to Afghanistan. But as British Prime Minister Gordon Brown said, it could be a risk factor for the stability of many countries in the world and governments should take serious steps to control it.

The problem of food price rises is an international issue and millions of people in various countries of the world are facing it. A summit of UN, unions of farmers and African Development Bank will be held in London to discuss increase in food price.

The experience of the latest few months in Peru, Haiti, Bangladesh and ... [ellipsis as published] indicates that many other governments are facing a big challenge. Besides international factors of food inflation, Afghanistan's specific situation does affect the increase in food price in this country.

The lives of many people in Afghanistan have been dependent on imports from neighbouring countries. A slight change in the political or economic policy of neighbouring countries can seriously affect the lives of Afghans. That is why a change in the export policy of the Pakistani government is considered a reason for the food price rises in Afghanistan. So the Afghan government can resolve the problem with Pakistan through negotiation.

Another important point about food price rises is the weakness of the policies and plans of the Afghan government. The agriculture policy of Afghanistan is not as efficient as it should be while most of Afghans are earning their bread through agriculture. According to the latest reports, thousands of hectares of government land are left uncultivated due to irregularities in previous property laws.

The policy of the government to provide employment opportunity for Afghans has the similar faith as other sectors. That is why numbers of unemployed persons increase day to day, while unemployment is another important factor for food price rise.

Government corruption, unrest and the incompetence of the government are other significant factors in food price rises.

Consequently, the economic system of Afghanistan - the free market system - could be the root of all the economic problems of the country. The free market system is adopted in the constitution of Afghanistan at a time when the country does not have the capability to adapt to it. Afghanistan was a country whose entire resources were destroyed in wars. The income of this country came from foreign aid. There was not a single sign of industry in this country. How could this country accept a free market system?

Adopting a free market system in Afghanistan where the ground was not prepared for it was great risk in itself and its consequences will slowly come to light.

Source: Daily Afghanistan, Kabul, in Dari and Pashto 23 Apr 08

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