Economy

Agriculture is the main occupation, although less than 10% of the land is cultivated; a large percentage of the arable land was damaged by warfare during the 1980s and 90s. Largely subsistence crops include wheat and other grains, cotton, sugar beets, fruits, and nuts. The opium poppy, grown mainly for the international illegal drug trade, is the most important cash crop, and the country is the world's largest producer of opium. Grazing is also of great importance in the economy. The fat-tailed sheep are a staple of Afghan life, supplying skins and wool for clothing and meat and fat for food; goats and cattle are also of economic significance.

Mineral wealth is virtually undeveloped, except for natural gas. There are deposits of iron ore, coal, copper, talc, sulfur, emeralds, and lapis lazuli; oil fields are found in the north. Industry was still only in the beginning stages at the end of the 1970s and has suffered substantial damage since then. Some small-scale manufactures produce cotton and other fabrics, fertilizer, cement, and processed agricultural goods. Extremely high levels of unemployment—up to 70% in Kabul in 2000—have resulted from the general collapse of Afghanistan's industry.

Opium, fruits and nuts, lambskins (Karakul) and textiles, handwoven carpets, and gemstones are the main exports; petroleum products, manufactured goods, and foodstuffs are the main imports. As a result of civil war, exports have dwindled to a minimum, except for the illegal trade in opium and hashish. The country is also becoming a important producer of heroin, which is derived from opium.

Once a major trade hub, the city of Kabul was ravaged by fighting in the late 20th cent., and its industry largely disappeared. Road communications throughout the country are poor, although existing roads have undergone reconstruction since the end of Taliban rule; pack animals are the primary means of transport in the interior. A road and tunnel under the Salang pass, built (1964) by the Russians, provides a short, all-weather route between N and S Afghanistan. The few railway lines in the country are those that were constructed by the Soviets during their occupation of Afghanistan.

Government

Under the constitution of 2004, the country is headed by a president, who is both head of state and of government. The president is directly elected, and may serve two five-year terms. The former king, Muhammad Zahir Shah, is acknowledged as the "father of the country," but he lacks any authority and the honor accorded him is not hereditary. The president is assisted by a cabinet, the members of which must be approved by the National Assembly. Wolesi Jirga [people's council] of the Assembly consists of not more than 249 members, directly elected to five-year terms. The upper house, the Meshrano Jirga [council of elders], consists of 102 members, a third elected by provincial councils to four-year terms, a third elected by district councils to three-year terms, and the rest (half of whom must be women) appointed by the president to five-year terms. No law passed by the Assembly may be contrary to Islam. Administratively, the country is divided into 34 provinces.