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Afghanistan speeding up toward free economy
KABUL. Jan 22 : Taking Its cue from the collapse of the Soviet Union and changes in its former republics, the Afghan government is speeding up the transition to a free market economy by revising obsolete trade laws, reports AFP.
"Everyone in the region is liberalising. We have regained our strategic importance after the collapse of the Soviet Union. We should act now to change the system or we will tose in the economic race," an economist said here.
President Najlbullah has said political changes in the region have elevated
Afghanistan's "economic and transit role."
The engine of the reforms in Afghanistan is the Economic Advisory Council (EAC), a new think-tank forming a link be tween the government and the private sector, which is funding the group.
"We want to have a say tn the development of economic policies and to act as advocates of free market economy." said Farid Zarif, Afghanistan's former Permanent Representative to the United Nations and now Secretary-General of the EAC.
Although Prime Minister Fazle Haq Kliallq Yaar is the EAC's Chairman, Zarif said the organisation was not political.
"The prime minister's presence will help us get through much red tape and get things done efficiently, particularly when the bureaucracy here is very strong." Zarif said.
The EAC has identified some one dozen trade laws that need either amending or repealing as most were enforced during the 1978 communist takeover of power in Afghanistan.
Zarif said three laws on foreign and domestic private investments. on insurance com-Eantes and on money and anking had already been drafted and would be presented to parliament by a min-
isterial council for enactment
‘"Under the revised Investment laws, foreign countries can invest with ownership of 100 per cent of the shares. Earlier foreigners were entitled to 59 per cent and the government had 41 per cent of the shares," he said.
Zarif said the new Insurance laws permitted the establishment of private firms.
Najlbullah said many more of the country's laws would also be changed in "line with the principles of free market economy."
The EAC's programme for moving towards a free market system began last year when the government accepted its suggestions to end the state monopoly on Imports.
"We want to break up the monopoly of the government in the economy. The idea is not to rebel but to facilitate the free interaction of market forces." said Zartfk
He said the EAC wanted to end state subsidies for services enjoyed mainly by the higher income groups.
"It is only those with higher incomes who consume more electricity. The tower class has access only to a radio or a heating appliance." Zarif said, adding that the EAC was not yet advocating ending subsidies to government workers, who be unable to adjust to life
without coupons.
An estimated 300.000 government servants receive food coupons, which also enable them to obtain free kerosene, wheat, sugar and tea each month.
But a leading importer here described the reforms as "nothing new."
"We always had a free market. even when the communists were here, the system of free trade thrived. Of course, the laws did not work . . . but the free market worked, the government is trying to make Eropaganda out of these laws." he said