In addition to the continuing civil strife, the country suffers from enormous poverty, a crumbling infrastructure, and widespread live mines. During that conflict one-third of the population fled the country, with Pakistan and Iran sheltering a combined peak of more than 6 million refugees. In early 1999, 1.2 million Afghan refugees remained in Pakistan and about 1.4 million in Iran. Gross domestic product has fallen substantially over the past 20 years because of the loss of labor and capital and the disruption of trade and transport. The majority of the population continues to suffer from insufficient food, clothing, housing, and medical care.
Inflation remains a serious problem throughout the country.
International aid can deal with only a fraction of the humanitarian problem, let alone promote economic development. The economic situation did not improve in 1998-99, as internal civil strife continued, hampering both domestic economic policies and international aid efforts. Numerical data are likely to be either unavailable or unreliable. Afghanistan was by far the largest producer of opium poppies in 1999, and narcotics trafficking is a major source of revenue. Inc. All Rights Reserved.