Reconstruction

Opportunity Zones

Promoting Security By Stimulating

Legitimate Economic Opportunities in
Afghanistan and Pakistan
 Key Economic Indicators*
ROZs would counter these conditions by stimulating vital, legitimate economic activity

• Unemployment
– Afghanistan -- 40%
• With 70% of households averaging 10 or
more people, this lack of income earning
opportunity represents a devastating
multiplier effect for the significant number
of large families
– Pakistan -- 20% (national)
• Unemployment is higher in the ROZ
eligible border areas. For instance,
statistics show unemployment at 28% in
Northwest Frontier Province and 34% in
Baluchistan. Household size in rural areas
is seven, creating significant pressure on
income providers. Informal sector
employment is 75% in rural areas.

• Per capita GDP

– $300 - $500 per year in Afghanistan
– Up to $2400 per year in Pakistan but less than
$1000 in underdeveloped ROZ eligible areas

• Poverty
– Afghanistan -- 53%
– Pakistan -- 24% (national)
• NWFP -- 44.3%
• FATA -- 44.5%
• Baluchistan -- 24.6%
• Azad Jammu and Kashmir -- 15.6%

• GDP by sector
– Afghanistan
• 60% - 80% agriculture
– Includes poppy farming which
some sources estimate is 35% –
53% of GDP
• 10% industry
• 10% services
– Pakistan
• 20 % - 42% agriculture ROZ eligible areas
• 20% industry
• 38% - 50% services

* Sources include United Nations, World Bank, CIA World Factbook, Afghan and Pakistani governments, USAID etc.
 Winning Hearts and Minds
• Not only do jobs have an Headline:
economic multiplier effect U.S. Supports Jobs and Investment
in ROZ areas, but there
would be a public relations
multiplier effect.

• How far does a front page

ribbon cutting ceremony of
the 1st ROZ factory go?

• How beneficial is a photo of

Afghan women employed in
an ROZ factory?

• What would be the impact

of an interview with a
former fighter who laid
down his arms when given
a choice to earn an honest
living in an ROZ factory?

• In other words, ROZs do not

have to create 30K, 50K or
100K+ jobs to have a
tremendous benefit.
Available Infrastructure
Industrial parks already exist and more are being built
Strategic Importance of
the Frontier Areas
• The underdeveloped, ungoverned frontier
areas offer safe havens for terrorists to
hide, recruit and threaten U.S., Afghan and
other coalition forces in Afghanistan.

• The Federally Administered Tribal Areas

(FATA) have never been fully governed or
integrated into Pakistan.

• ROZs support Pakistan’s Frontier Strategy

and the USG five-year, $750 million FATA
Development Plan.

• Pakistan has captured or killed thousands

of Al-Qaeda operatives and and Taliban
associates since September 11, 2001. ROZ
programs while stimulating economic
opportunities can extend the authority of
the central government into the frontier
region and further deny use of the frontier
areas as safe havens to the Taliban and Al-
Qaeda. Pakistan’s Prime Minister has said
ROZs would be the lead development
effort into the tribal areas.
 Promoting A More
Diverse Afghan Economy

• Afghanistan is one of the poorest countries in the

world with per capita income $350 per year by some
estimates. After years of underinvestment,
Afghanistan lacks the resources needed to build a
modern economy or to attract significant private
investment.
• ROZs can stimulate job creation for the unemployed
and underemployed, disarmed militia, and returning
refugees. ROZs can also rebuild an economy
devastated by war and diversify revenues away from
illicit and informal economic activities.
• ROZs can also support Afghanistan’s plan to become a
“land bridge” for regional trade.