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kabul
September 17, 2018
The Kabul Times

Economic development requires productive, non-productive investment

Investment for production of only consuming items is called non-productive investment while investment in those sectors in which such items are produced that help or facilitate production of other materials or are exploited and utilized in production of other goods including machineries which produce means of productions are called infrastructural investment or industrial installations.
In developed countries, most investments are productive but in less developed or developing countries many investments are non-productive which can be changed to productive investment after economic development gradually.
If we have a glance in Afghanistan which is one of the developing countries, absolute majority of investments are non-productive with small scale and efforts are underway to change them to productive and infrastructural investment.
Afghanistan as a consuming country is endeavoring to be changed to an industrial and producing country with availability of the following conditions:
Political, security stability:
Taking into account current circumstances of the country, political, security and stability is the most top and basic condition for productive investment which sans it investment and attracting of investors are problematic. Productive investment requires full security and elimination of insecurity, otherwise without reliable security, local investors don’t dare to invest let alone foreign investors.
Therefore attraction of investment and change of non-productive to productive investment strongly requires security, political stability and the concerned governments are obliged to spare no sincere efforts in close cooperation of the world community for creation of security-political stability.
Energy availability:
Following security, power energy is urgently needed for construction of infrastructural installations and paving the way for development. Power energy plays the role of food and soul for establishment of infrastructural installations and productive sources as without energy, production is impossible. Afghanistan has sufficient resources for generation of power energy, unfortunately either due to lack of reliable security and political stability or threats of neighboring countries these resources have been stagnated. But now the government is making effort to undertake essential steps and exploit available natural energy sources.
Reservoirs and short-term loans:
Maximum exploitation of reservoirs and loans is an important economic principle. Fortunately at the moment, Afghanistan hosts over 15 government and non-government commercial banks and our businessmen can get their loans and operate their business and produce more items in short time. As the Central Bank “Da Afghanistan Bank” has arranged and prepared such commercial bills and regulations for private banks that in the light of them, they provide facilities for receiving of loans and increase of banking customers.
Relying on foreign countries, developing countries get used to be consuming who offer ideas and plans for development.
The Afghans are required to develop their national economy and prevent import of essential products in their country. Productive investment should be used for economic development- domestic resources should be utilized, and way should be paved for production and global investors should be encouraged to invest inside Afghanistan.
Economic principles allow that the raw materials exporting countries should change these materials to product and export them.
Infrastructural Installations:
If certain countries want to achieve economic development without establishment of infrastructural installation, this goal is impossible including transportation roads, bridges, dams, energy sources, primary and higher institutions of education, medical facilities. Construction of these projects improve employment opportunities, prevent involvement of youth in crimes and create income.
Changing of non-productive to productive investment:
Exploiting the experiences of developed nations, non-productive investments should be gradually changed to productive sectors.
Hamidullah Faizi

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