Exploring Consequences of U.S. Withdrawal from Afghanistan: An Overview and Perspective on Economy

Abstract

Since 2003, the economic situation, life expectancy, and per capita income of Afghanistan were increasing. This was mainly due to foreign aid reported $83 billion from 2003 to 2016. 90% of Afghanistan's military budget was also coming from international donors. The role of the North Atlantic Treaty Organization (NATO) forces was strengthening the Afghan government. However, recently the USA has decided to withdraw its troops. It is expected that the rest of NATO forces will also evacuate Afghanistan. The whole process of withdraw of USA of Afghanistan is mainly discussed in the military perspective in literature. There are fewer articles on the expected economic impact of USA withdrawal. Therefore, this research paper has provided an overview of the existing situation of the Afghan economy, in parallel with war impacts and consequences of US withdrawal. The paper concludes that in one USA evacuation will result in the diminishing of foreign aid and reduction in the legitimacy of government, yet it will create opportunities for Afghanistan to strengthen its relationship with neighbors and strengthen its foundation.