After the fall of Amanullah Khan, Habibullah Khan Kalakani ruled for a short term and then the Musahiban family ruled over Afghanistan from 1929-1978. The Musahiban family halted the social changes that Amanullah Khan wanted to make which moved it away from developing the economy, state building and modernization. The economy was the same as it was at the turn of the century. The Musahiban family followed the policy of encapsulated modernization. They only focused on the centers the countryside areas remained untouched because of the fear of rising revolts. Under the Musahbian family they did not impose any changes or taxes, especially no taxes in cash which means they made the rural economy remain untouched. This means that there was no…show more content… Also, people like Habibullah Kalakani and Ghulam Nabi Charkhi, who were potential political threat to the royal family, were liquidated by Nadir Shah. During this period, Afghanistan enjoyed peace and constancy. Nadir’s policies of national gradualism and positive neutrality and friendship were rather effective, and enabled him to establish control over the domestic environment.
One of the most essential domestic successes during Musahiban was the Economic development. The emergence of a merchant class for the first time in Afghanistan under Majed Zabulli’s leadership was one of those successes that helped Afghanistan to modernize its economy. He putted lots of efforts and contributions to influence people by Royal patronage and the monopoly system to attract the bulk of the private capital in the country between 1933 and 1946, and to invest in some 50 trading and industrial companies Before the creation of a merchant class in Afghanistan, the economy was heavily based on un-modernized agriculture. The creation of De-Afghanistan Bank in 1931 was another economic success because it helped Afghanistan to run its new modern economy. After the establishment of De-Afghanistan Bank in 1931 in Kabul, entrepreneurs become interested to invest in Afghanistan. The creation of cement and sugar factory in Dahan Ghori, Baghlan, installation of fabric factory in Gulbahar , Parwan,