Economic Diplomacy in Contemporary Afghanistan: An Analysis of Opportunities and Challenges

Abstract

Background and Objective: Economic diplomacy, as one of the most effective instruments of foreign policy, plays a fundamental role in linking the national economy to regional and global economic structures. Afghanistan’s location at the crossroads of Central Asia, South Asia, and the Middle East endows the country with a unique geo-economic position that, if managed strategically, can be transformed into a sustainable competitive advantage. At the same time, this path is accompanied by a range of problems and challenges. Accordingly, the objective of this study is to examine the opportunities and challenges facing Afghanistan’s economic diplomacy. Based on this, the main research question is formulated as follows: What challenges does Afghanistan’s economic diplomacy face in utilizing geo-economic and regional opportunities?

Methodology: This study adopts a descriptive–analytical approach. Data were collected through library-based and documentary sources, as well as content analysis of official studies and reports.

Findings: The findings indicate that Afghanistan, as a “geo-economic bottleneck of the region,” has the capacity to generate opportunities from the competition among regional powers, particularly China, Russia, Iran, Pakistan, and India. Key projects such as the Qosh-Tepa Canal, Chabahar Port, the TAPI Project, the CASA-1000 Project, the Lapis Lazuli Corridor, and the Belt and Road Initiative possess the potential to generate sustainable revenue, reduce economic dependence, enhance food security, promote employment, and consolidate Afghanistan’s role in the regional economic architecture. Nevertheless, a set of structural challenges—including the lack of international recognition of the government, economic and financial sanctions, reliance on informal trade, regional tensions over water resources, domestic challenges in project implementation, dependence on external actors, and weaknesses in attracting international private investment in the field of economic diplomacy—hinder the realization of these capacities.

Conclusion: If Afghanistan formulates a comprehensive economic diplomacy strategy, undertakes institutional reforms, manages regional projects in a scientific manner, and diversifies economic cooperation, it can enhance its position within the regional economic order and move toward becoming an “active and effective economic actor”.