Emerging markets
The contention, “markets are a useful way to address underdevelopment today”, is true since trade is crucial in marking the end of global poverty. Regarding this, countries that are more open to international trade tend to showcase a faster growth, innovation, improve productivity as well as providing higher incomes. Nevertheless, lower-income households benefit from open trade by offering consumers more affordable goods and services. Economic growth is spearheaded by countries such as Afghanistan integrating with the world economy through trade as well as global chains. Additionally, the integration reduces poverty both locally and globally. As a result, the countries develop economically hence earning more revenue and foreign income.
Emerging markets always empress liberalization. Concerning this, new opportunities are provided for investors to increase their diversification and profit. More importantly, liberalization relaxes the barriers and relinquishes some control over the direction of the economy to the private sector. It involves deregulation as well as the privatization of companies. Therefore, the removal of these barriers and privatization of companies helps the countries that are still developing such as Afghanistan to participate in trading activities that help them to access national and international markets. Thus, playing a crucial role in engineering the development of the nation.
Despite Afghanistan having a poor agrarian economy with a small manufacturing base, few valuable industries, and corruption the government has undertaken several crucial reforms to attract Afghan private sector and foreign investment. For example, it has streamlined the business license registration process under the Afghanistan Central Business Registry (ACBR). This step has enabled Afghanistan to create markets for available products produced by a few valuable industries. As a result, the country is addressing underdevelopment by employing citizens in the trading sector.