There are five million refugees

"A daunting range of constraints must be overcome to sustain a long-run development drive," it said.

The task of rebuilding the economy has already begun, but it is not going to be easy.

The majority of the population remains extremely poor, lacking food, clothing, housing and medical care.

Most skilled professionals have either died in the years of conflict or have fled the country.

Agriculture hit

Roads and airports have been damaged and a telephone and telegraph network that linked the main towns has been destroyed.

Millions of people are living in refugee camps outside Afghanistan and at least a million more have been driven from their homes.

Agriculture is the mainstay of the economy, but it has been hit by three years of drought.

The years of fighting have also left mines scattered over the land.

Cost of rebuilding

But there are positive signs. Afghanistan is believed to have substantial oil and gas reserves, and exploration is likely to resume.

The restoration of peace also means that production of traditional goods such as carpets, leatherwear and jewellery should also recover quickly.

The international community has estimated that over ten years it will cost $15bn (�10.4bn) to rebuild Afghanistan.