The shadow economy is a very complex structure, operating 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 Afghan country is often in the media eye and has fallen on very difficult times due to its corrupt reputation. It is a country where many terrorist groups live, such as Al-Qaeda and the Taliban. This essay will explore the underground economy in Afghanistan, particularly what is happening in the country regarding weapons, drugs and terrorism, what the potential outcomes could be and the reasons behind them. First, we will discover the reality of what is happening in Afghanistan. Afghanistan. Some of the major groups in this ethnically diverse country are Project Afghanistan, Al-Qaeda, the Taliban, and the Haqqani Network, to name a few (understandingwar, 2013). These terrorist groups are all linked to Afghanistan's underground economy through the production and distribution of illegal drugs around the world. According to the Washington Times, these illicit groups rake in hundreds of millions of dollars from banned drugs and produce up to 90% of the world's opium supply (2013). Afghanistan has a poverty rate of 80% and a per capita income of just $800. Ultimately, hapless farmers have no choice but to do whatever they can to provide for their families. This includes opium cultivation, valued at $4,500 per hectare, as opposed to wheat cultivation, which is valued at only $266 (IAR 2013). Havocscope...... middle of paper ......ageGuns in Afghanistan: Guns, Gun Violence and Gun Law. (nd). Guns in Afghanistan: Guns, Gun Violence, and Gun Law. Retrieved from http://www.gunpolicy.org/firearms/region/afghanistanMajor Enemy Groups in Afghanistan. (nd). Institute for the Study of War. Retrieved November 8, 2013 from http://www.understandingwar.org/map/major-enemy-groups-afghanistanThe irony of Muslim terrorism. (nd). - Notice. Accessed November 10, 2013 from http://www.aljazeera.com/inowned/opinion/2Global Policy Forum. (nd). UN 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. (nd). American Institute of Peace. Accessed November 10, 2013 from http://www.usip.org/afghanistan-the-current-situation