AREU’s political economy research programme has sought to explore the nature of power and control in Afghanistan. It aims to understand the impact of these elements on the economy and the political organisation of Afghan society - at the macro, meso and micro levels.  The Afghan political economy, like all others, is the product of the interaction between various economic actors with vested interests. Understanding the dynamics of this interplay, and the factors that constrain or empower the different actors, is crucial to harnessing the “good” of Afghan entrepreneurship and ensure broad-based equity and distribution of resources.  

AREU’s political economy research has focused on meeting the following objectives:  

• To document how the economy functions in rural and urban settings;
• To understand who the main beneficiaries of the economic surplus are;
• To investigate the link between private-sector economic activity and livelihoods in rural and urban environments;
• To assess how the realities of the private sector relate to the aims and expectations of Afghan policymakers and the international donors; 
•  To gain insights into the experiences of Afghan businesspeople, the environment in which they operate, and the obstacles they face; and 
•  To make recommendations on how to improve the operating environment for value-adding economic activity in the domestic markets and increase access by Afghan entrepreneurs to regional and international markets.