The shadow economy is a very complex structure, which functions outside the restrictions of legal and tax systems (Tradelinks, 2013). It is also widely known as the fastest growing economy in the world. Afghanistan is a country located in South Asia, east of Iran and north and west of Pakistan. According to the official CIA website, the total population of this war-torn country is 31,108,077 (2013). The country of Afghanistan is often in the eyes of the media and has gone through very difficult times due to its corrupt reputation. It is a country with many terrorist groups, such as Al Qaeda and the Taliban. This essay will explore the shadow economy in Afghanistan, in particular, what is happening in the country regarding weapons, drugs and terrorism, what some potential outcomes could be and the reasons behind them. First, we will find out the reality of what is happening in Afghanistan. Afghanistan. Some of the major groups in this ethnically diverse country are the Afghanistan Project, Al Qaeda, the Taliban, and the Haqqani Network, to name a few (understandingwar, 2013). These terrorist groups are all linked to the shadow economy in Afghanistan through the production and distribution of illegal drugs around the world. According to the Washington Times, these illicit groups are raking in hundreds of millions of dollars through banned drugs and produce up to 90% of the world's opium supply (2013). The country of Afghanistan has a poverty rate of 80% and a per capita income of only $800. This ultimately leaves unfortunate farmers with no choice but to do everything they can to provide for their families. This includes the cultivation of opium, which is valued at $4,500 per hectare, as opposed to the cultivation of wheat which is valued at only $266 (IAR 2013). Havocscope...... middle of paper...... agesGuns in Afghanistan: Firearms, gun violence and gun law. (n.d.). Guns in Afghanistan: Firearms, Gun Violence, and Gun Law. Retrieved from http://www.gunpolicy.org/firearms/region/afghanistanMajor Enemy Groups in Afghanistan. (n.d.). Institute for the Study of War. Retrieved November 8, 2013, from http://www.understandingwar.org/map/major-enemy-groups-afghanistanThe Irony of Muslim Terrorism. (n.d.). - Opinion. Retrieved November 10, 2013, from http://www.aljazeera.com/inapprofondimento/opinion/2Global Policy Forum. (n.d.). United Nations involvement in Afghanistan. Retrieved November 10, 2013, from http://www.globalpolicy.org/security-council/index-of-countries-on-the-security-council-agenda/afghanistan.html Afghanistan: The Current Situation. (n.d.). United States Institute of Peace. Retrieved November 10, 2013, from http://www.usip.org/afghanistan-the-current-situation