Abstract

Afghanistan is considered to be one of the most undeveloped counties in the world; scoring very low on Human Development Index for decades. This study examines the role of political regimes and formal institutions in the development of Afghanistan. The study employs a mix-method approach. The quantitative analysis has been done using datasets such as HDI from the United Nations Development Program as an indicator of development and Worldwide Governance Indicators as the indicators of formal institutions. Semi-structured interviews have been conducted with Afghan experts, economists, political scientists, politicians and government officials to explore in detail the role of political regimes in the past and institutions in development. The study finds that political regimes that are legitimate, originated within the country, accountable, peaceful, stable, pro-people, and pro-development have a positive and significant effect on development – not necessarily democracy per se. Similarly, formal institutions that are accountable, effective, well-regulated, law-based, and harmonious with informal institutions have a positive and significant effect on development in Afghanistan. Hence, political regimes and institutions have mattered a lot in the development of Afghanistan.