Today, Explained The fastest economic collapse ever
Dec 9, 2021
In this thought-provoking discussion, guest Ali Latifi, an online correspondent for Al Jazeera English, sheds light on Afghanistan's dire situation post-Taliban takeover. He explores the rapid economic collapse following the U.S. withdrawal, detailing business closures and widespread layoffs. Latifi brings urgency to the food crisis, where droughts and malnourishment threaten millions, especially children. He also addresses the challenges faced by the Taliban in managing aid amidst looming winter hardships and emphasizes the need for international support.
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Foreign Aid Dependence
- Afghanistan's economy was heavily reliant on foreign aid.
- The US froze $9.5 billion in assets after the Taliban takeover, leading to bank restrictions and economic collapse.
Cash Crisis in Afghanistan
- Ali Latifi spent four days getting $1000 from Western Union, even though he lived above the bank.
- This highlights the cash shortage crisis in Afghanistan, where lack of access to cash equates to poverty.
Source of Afghanistan's Cash
- Afghanistan's cash isn't printed domestically, but in Europe.
- Shipments of cash have stopped, exacerbating the cash shortage and economic collapse.