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1 [1] (February 9, 2022)

handle is hein.crs/govefgg0001 and id is 1 raw text is: C o n r e s s o n a R e e a c S e r i c February 9, 2022 Afghanistan: Humanitarian Crisis, Economic Collapse, and U.S. Sanctions Humanitarian and economic conditions in Afghanistan, long one of the world's poorest and most aid-dependent countries, have deteriorated significantly since the Taliban's August 2021 takeover, creating the largest humanitarian crisis in the world. The Biden Administration and many Members of Congress seek to maintain sanctions on the Taliban and avoid actions that would empower the group or legitimize its rule. At the same time, they and many others in the international community seek to respond to the urgent humanitarian crisis. Afghanistan's needs will persist in the absence of sustainable economic development that may be difficult without greater engagement with the Taliban. Afghanistan Pr-Taliban Takeover Prior to the Taliban takeover, roughly half of Afghanistan's population (18.4 million people, out of 35-40 million) faced a severe humanitarian crisis across a wide range of metrics. Conflict, natural disasters (including severe droughts in 2018 and 2020), and the Coronavirus Disease 2019 (COVID-19) pandemic contributed to deteriorating humanitarian conditions and chronic vulnerability and poverty among the general population. The weak Afghan economy exacerbated humanitarian needs. The former U.S.-backed government relied heavily on international development assistance. Foreign donors financed over half of the government's $6 billion annual budget and as much as 80% of total public expenditures. Between 2002 and 2021, the United States provided over $17 billion to the Afghan government in on-budget assistance-funds that went directly to Afghan government entities, or to them through multilateral trust funds. Current Humanitarian Overview In Afghanistan, humanitarian needs have since surpassed those of other major crises (such as Ethiopia, South Sudan, Syria, and Yemen) with 24.4 million people in humanitarian need. The U.N. World Food Program (WFP) has been sounding the alarm on food insecurity, with some estimates predicting that at least 55% of the population will likely reach crisis or emergency levels of food insecurity by March 2022, a near 35% increase over the previous winter. Nine million are projected to reach the more severe level of emergency food insecurity. Acute malnutrition is expected to impact the most vulnerable, including millions of children. As of January 2022, U.N. estimates indicate forced displacement could affect over 9 million people this year, including more than 3.4 million Afghans displaced within Afghanistan and 5.7 million people in the region. (In neighboring countries this includes 2.2 million Afghans previously registered as refugees, 1.7 million Afghans projected to be newly displaced in 2022, and 1.8 million people in communities hosting displaced Afghans.) On January 11, 2022, the United Nations launched a $5 billion humanitarian appeal for Afghanistan ($4.4 billion) and five neighboring countries ($623 million) hosting displaced Afghans-the largest ever annual appeal for one country. The humanitarian community requires lead times of several months to increase capacity for critical assistance; however, the United Nations emphasizes that these efforts cannot be a substitute for long-term recovery. While the operational context is extremely challenging in Afghanistan, U.N. entities and other humanitarian organizations continue to deliver multi-sector assistance (such as emergency food, health, water and sanitation, shelter, and winterization services) across the country. The U.S. government is the largest humanitarian donor for the Afghan population, including refugees and internally displaced persons. On January 11, 2022, the United States announced a contribution of more than $308 million, bringing total U.S. humanitarian assistance to nearly $782 million since October 2021. It is not yet clear how much of the U.S. contribution is for the recent U.N. appeal. Current Economic Situation Following the Taliban takeover, economic challenges, such as currency depreciation, increased food and fuel costs, reduced cash availability, and high unemployment have constrained Afghans' ability to meet their basic needs, and made a greater number more reliant on humanitarian assistance. Donor governments and implementing partners ended international development funding to prevent the Taliban from accessing those resources. Millions of Afghans lost salaries and other forms of support. In October 2021, the International Monetary Fund projected that the Afghan economy may contract as much as 30% by the end of 2022. The currency devaluation and halt in foreign aid have contributed to fundamental government insolvency, including a severe liquidity crisis (in response to which the Taliban imposed limits on the amount of cash Afghans could withdraw). Prior to August 2021, the Afghan central bank reportedly received quarterly shipments of $249 million in U.S. paper currency, which stopped after the United States placed a hold on U.S.-based Afghan central bank reserves. In December 2021, Secretary of State Antony Blinken stated we are looking intensely at ways to put more liquidity into the Afghan economy, to get more money into other people's pockets ... in a way that doesn't directly benefit the Taliban. ittps://Crsreports.congress.gt 0