Afghanistan is not exactly an easy place to undertake a rigorous study on the ease of doing business. And collecting primary data for a micro-based study in Kabul and several Afghan provinces can be a daunting task. Just how daunting is underscored by the fact that the country conducted its most recent census almost 40 years ago, in 1979. Vast tracts of the country remain unsafe and many of its provinces are inaccessible.
Despite the security challenges, our experience from the recently launched Subnational Doing Business in Afghanistan report shows that the barriers to collecting micro data are not insurmountable. The data and related findings can help guide business reforms toward the kind of smart regulations that are imperative for attracting private sector investment to the capital city and beyond. A regulatory environment that enables private enterprise, especially small and medium firms, to function and be creative boosts job creation and is, therefore, good for the economy.
The report, the first of its kind in Afghanistan, benchmarks Kabul and the provinces of Balkh, Herat, Kandahar and Nangarhar across four Doing Business indicators: Starting a Business, Dealing with Construction Permits, Getting Electricity and Registering Property.
The key takeways?
Kabul leads in two of the areas measured, Starting a Business and Getting Electricity. Kandahar ranks first in Dealing with Construction Permits and Registering Property, while Balkh comes in second in all four areas measured by the report.
Regulatory quality and efficiency vary considerably among the five locations. Rolling out reforms already implemented in Kabul across all of Afghanistan would improve the business environment for entrepreneurs in the provinces.
- By adopting all the good practices, Afghanistan could move up 11 places in the global Doing Business ranking, to 172.
- South Asia
- Middle East and North Africa
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- Conflict and Fragility; fragile and conflict affected states; fragile states; fragility; FCV; Afghanistan; doing business; ease of doing business; private enterprise; entrepreneurship; business regulations;