Editor in Chief: Moh. Reza Huwaida Wednesday, May 1st, 2024

The Vitality of Business

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The Vitality of Business

Economy plays an important role within a country. Economy for a country is as important as circulatory system within a human body. As without circulatory system blood cannot be pumped through different parts of the body, in the similar fashion without economy, money and other basic requirements of life cannot reach to different parts of a country.

Most of the other systems in the country, like social and political systems are highly dependent on the economic system. There are few thinkers who even believe that the nature and characteristics of others systems are determined by the structure of the economic setup. Therefore, it is vital that all the countries in the world must maintain strong economy so as to have stability and integrity.

There are different aspects of an economic system. Businesses play a vital role within an economy. If within a system there are consistent investments and different businesses, the system is on a track towards development and prosperity. Since the very inception of human society, human beings have required businesses so as to have their requirements fulfilled.

Throughout human history, businesses have taken different forms and characteristics and today have reached to a very advanced form. From the barter system to today's advanced era when the businesses are taking place online, there has been a series of different practices, but the vitality of the business has never been lost.

The under-developed and developing countries of the world that need to establish strong economic system require evolution and nourishment of different businesses to a large extent. The authoritative people in such societies have to make sure that the way to the businesses is paved properly.

There are different pre-requisites for businesses and investments to flourish. Among them stability and security play a dominant role. If different systems within a country are stable and there are not major fluctuations every now and then, the ground is said to be ready for the investors and businessmen to jump in and establish their businesses. Businessmen want consistent outcomes from their investments and they abhor seeing political and social changes disturb their businesses.

The evil like insecurity also plays major role in discouraging businesses and investments. Different incidents of terrorism and killings compel the businesses to shut down, and frighten the investors to invest. The societies marked with insecurity do not have consumers going to the markets and enjoying the luxury of shopping different products.

Afghanistan is one of the same kinds of country where insecurity has been influencing the economic life to a large extent. Both national and international businessmen are not readily willing to invest in all the sectors and they do not see positive prospects of their businesses. As insecurity has been overwhelmingly influencing the country, the development in the basic infra-structure has been meager.

The doubts and uncertainties of the Afghan market have made the international investors to think thousand times before they take an initiative to start their businesses in the country. Though there are great opportunities in Afghanistan and the country is blessed with different types of mineral and other natural resources, the economic infra-structure has not been able to get enough attention.

Apart from that there are other factors as well that have been influencing the economic system of Afghanistan. The insufficient and unfavorable business environment is also one of the issues affecting Afghan economy. On certain occasions, there are accidents as well that may affect the businesses.

One of the similar types of accidents took place on Sunday, December 23. A cloth market caught fire in the Mandawi area of the 1st police district in the central capital Kabul, inflicting financial losses on traders. The fire that erupted around midnight at the Nasari Market raged on until 5am and influenced many shops.

Dozens of fabric shops were burnt, but no one suffered casualties in the incident. According to certain reports the fire was caused by short-circuit. As the shops are not built to a standard level and electrical connections are not managed properly, there may have been short-circuit, which may have given rise to the fire.
The reports also revealed that around 400 shops were burnt and products worth millions of Afghanis were burnt. If the fire had not been controlled, a nearby money market could have been devoured.

The accident is really unfortunate and would affect the overall business environment in Afghanistan. The authorities have to make sure that the issue is dealt properly and measures are taken so that the businessmen are not discouraged. Such incidents can play a role to invite a sort of pessimism in the investors and they would fear to initiate their businesses anew.

It will also affect dozens of families who had their bread earners' businesses burnt in the fire. Some of them were definitely not very rich businessmen and they had just started their businesses with the savings of their lives and their whole families depended on them for their daily requirements. It would take years for such businessmen to establish their businesses from the ashes.

Afghanistan needs to have strong economy so as to go through the transition period and most importantly to survive after the international troops' withdraw from the country in 2014. The international aid and assistance that have been coming to the country for the last some years will be diminished and Afghan economy will be tested to a large extent.

The country has to start from the basic infra-structure development and have to reach to a stable economy, wherein the businesses are able to function without any fear and inconsistency. An environment has to be developed that can be galvanizing for both the national and international investors. Moreover, the golden opportunities wherein Afghanistan can exert maximum and can get the best outcomes from must be discovered and they should be strengthened so as to push the country towards self sufficiency.

On the other hand, the businessmen and investors must also keep the national interests in their consideration while they establish their businesses and start getting the outcomes from them. They have to keep this in their minds that the society as a whole has certain rights that have to be fulfilled by them.

Dilawar Sherzai is the permanent writer of the Daily outlook Afghanistan. He can be reached at dilawar.sherzai@gmail.com.

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