Islamic Republic of Afghanistan   Afghanistan National Development Strategy      ...
 
‫ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ‬In the Name of Allah, the Most Compassionate, the Most Merciful                    ‫إن اﻟﻠﻪ ﻻ ﻳﻐ ﱢﺮ ...
Map of Afghanistan  iii   Afghanistan National Development Strategy (ANDS)
Forewordiv   Afghanistan National Development Strategy (ANDS)
In the name of Allah, the most Merciful, the most CompassionateSix and one-half years ago, the people of Afghanistan and t...
Message from the               Oversight Committee                For the preparation of the Afghanistan National Developm...
In the name of Allah, the most Merciful, the most CompassionateWe are pleased to present the Afghanistan National Developm...
Acknowledgmentsviii   Afghanistan National Development Strategy (ANDS)
In the name of Allah, the most Merciful, the most CompassionateThe Afghanistan National Development Strategy (ANDS) could ...
Table of Contentsx   Afghanistan National Development Strategy (ANDS)
Map of Afghanistan ..........................................................................................................
Growth Projection and Strategy ..............................................................................................
Current situation: assessment of aid effectiveness...........................................................................
Acronyms and Abbreviationsxiv   Afghanistan National Development Strategy (ANDS)
AC        Afghanistan Compact                       DAB        Da Afghanistan Bank (Central Bank ofACBAR     Agency Coordi...
MEAs       Multilateral Environmental Agreements             PAR      Public Administration ReformMIS        Management In...
Glossary of Afghan TermsAmu Darya           A river originated from Pamir mountain and flowing in the northern region of  ...
INTRODUCTIONBACKGROUND                                          had been disrupted and in many cases, includ-             ...
percent of the seats in the National Assem-          142,500 of who nearly 40,000 are female.      bly.                   ...
tutions providing services to almost              Major advances have been made in open-200,000 active clients in 27 provi...
capacity limitations throughout the public and             Economic governance is weak. The Gov-    private sectors. Meeti...
munity, security has steadily deteriorated since                  sectors of security, governance, and develop-2004 in som...
dress the security, governance, and develop-          each of the 34 provinces.6 In addition, a com-    ment needs of Afgh...
gees, returnees and internally displaced           Chapter 10: discusses the integrated ap-persons.                       ...
PART IPROCESS, GOALSAND POLICYDIRECTIONS
CHAPTER 1                     THE ANDS: AN OVERVIEWThe overriding objective of the ANDS is to sub-      experience it. In ...
of the country’s 34 provinces are completely          and non-state governance entities; (ii) the con-    clear of land mi...
been prioritized within the overall macro-fiscal     growth and development. These steps will: (i)framework to allow a log...
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Transcript of "Afghanistan National Development Strategy"

  1. 1.  
  2. 2.     Islamic Republic of Afghanistan Afghanistan National Development Strategy 1387 – 1391 (2008 – 2013)A Strategy for Security, Governance, Economic Growth & Poverty Reduction
  3. 3.  
  4. 4. ‫ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ‬In the Name of Allah, the Most Compassionate, the Most Merciful ‫إن اﻟﻠﻪ ﻻ ﻳﻐ ﱢﺮ َﺎ ﺑﻘﻮم ﺣ ﱠﻰ ﻳﻐﻴ ُوا َﺎ ﺑﺄﻧﻔﺴﻬﻢ‬ ْ ِ ِ ُ ْ َ ِ ‫ِ ﱠ ّ َ َ ُ َﻴ ُ ﻣ ِ َ ْ ٍ َﺘ ُ َ ﱢﺮ ْ ﻣ‬Verily, never will Allah change the condition of people unless they change it themselves (013,011) VISION FOR AFGHANISTANBy the solar year 1400 (2020), Afghanistan will be: A stable Islamic constitutional democracy at peace with itself and its neighbors, standing with full dignity in the international family. A tolerant, united, and pluralistic nation that honors its Islamic heritage and the deep seated aspirations toward participation, justice, and equal rights for all. A society of hope and prosperity based on a strong, private-sector led market economy, so- cial equity, and environmental sustainability. OUR GOALSThe Afghanistan National Development Strategy (ANDS) serves as Afghanistan’s PovertyReduction Strategy Paper (PRSP) and uses the pillars, principles and benchmarks of the Af-ghanistan Compact as a foundation. The pillars and goals of the ANDS are:1. Security: Achieve nationwide stabilization, strengthen law enforcement, and improve personal security for every Afghan.2. Governance, Rule of Law and Human Rights: Strengthen democratic processes and in- stitutions, human rights, the rule of law, delivery of public services and government ac- countability.3. Economic and Social Development: Reduce poverty, ensure sustainable development through a private-sector-led market economy, improve human development indicators, and make significant progress towards the Millennium Development Goals (MDGs).A further vital and cross-cutting area of work is eliminating the narcotics industry, whichremains a formidable threat to the people and state of Afghanistan, the region and beyond. Afghanistan National Development Strategy (ANDS) i
  5. 5. Map of Afghanistan iii Afghanistan National Development Strategy (ANDS)
  6. 6. Forewordiv Afghanistan National Development Strategy (ANDS)
  7. 7. In the name of Allah, the most Merciful, the most CompassionateSix and one-half years ago, the people of Afghanistan and the international community joined handsto liberate Afghanistan from the grip of international terrorism and to begin the journey of rebuildinga nation from a past of violence, destruction and terror. We have come a long way in this shared jour-ney.In a few short years, as a result of the partnership between Afghanistan and the international community,we were able to create a new, democratic Constitution, embracing the freedom of speech and equal rightsfor women. Afghans voted in their first-ever presidential elections and elected a new parliament. Todayclose to five million Afghan refugees have returned home, one of the largest movements of people totheir homeland in history.Thousands of schools have been built, welcoming over six million boys and girls, the highest level everfor Afghanistan. Hundreds of health clinics have been established boosting our basic health coveragefrom a depressing 9 percent six years ago to over 85 percent today. Access to diagnostic and curative ser-vices has increased from almost none in 2002 to more than forty percent. We have rehabilitated 12,200 kmof roads, over the past six years. Our rapid economic growth, with double digit growth almost everyyear, has led to higher income and better living conditions for our people. With a developing road net-work and a state-of-the-art communications infrastructure, Afghanistan is better placed to serve as aneconomic land-bridge in our region.These achievements would not have been possible without the unwavering support of the interna-tional community and the strong determination of the Afghan people. I hasten to point out that ourachievements must not distract us from the enormity of the tasks that are still ahead. The threat ofterrorism and the menace of narcotics are still affecting Afghanistan and the broader region and ham-pering our development. Our progress is still undermined by the betrayal of public trust by somefunctionaries of the state and uncoordinated and inefficient aid delivery mechanisms. Strengtheningnational and sub-national governance and rebuilding our judiciary are also among our most difficulttasks.To meet these challenges, I am pleased to present Afghanistan’s National Development Strategy(ANDS). This strategy has been completed after two years of hard work and extensive consultationsaround the country. As an Afghan-owned blueprint for the development of Afghanistan in all spheresof human endeavor, the ANDS will serve as our nation’s Poverty Reduction Strategy Paper. I am con-fident that the ANDS will help us in achieving the Afghanistan Compact benchmarks and Millen-nium Development Goals. I also consider this document as our roadmap for the long-desired objec-tive of Afghanization, as we transition towards less reliance on aid and an increase in self-sustainingeconomic growth.I thank the international community for their invaluable support. With this Afghan-owned strategy, Iask all of our partners to fully support our national development efforts. I am strongly encouraged tosee the participation of the Afghan people and appreciate the efforts of all those in the internationalcommunity and Afghan society who have contributed to the development of this strategy. Finally, Ithank the members of the Oversight Committee and the ANDS Secretariat for the preparation of thisdocument.Hamid KarzaiPresident of the Islamic Republic of Afghanistan Foreword v
  8. 8. Message from the Oversight Committee For the preparation of the Afghanistan National Development Strategyvi Afghanistan National Development Strategy (ANDS)
  9. 9. In the name of Allah, the most Merciful, the most CompassionateWe are pleased to present the Afghanistan National Development Strategy, which reflects the com-mitment of the Islamic Republic of Afghanistan to poverty reduction and private sector-led economicgrowth for a prosperous and stable Afghanistan. The ANDS Oversight Committee (OSC) was man-dated by the Government to produce a Millennium Development Goals-based national strategy thatis Afghan-owned and meets the requirements for a Poverty Reduction Strategy Paper. The OSC meton a regular basis to design, discuss and oversee the development of the strategy, including the iden-tification of the needs and grievances of the people, and the prioritization of resource allocations andactions. To embrace ‘Afghanization” and ownership, the OSC facilitated inclusive and extensive con-sultations both at national and sub-national levels.Sustained fiscal support and continuous evaluation and monitoring are essential now to meet thechallenges ahead related to ANDS implementation. The democratic aspirations of the Afghan peopleare high, yet financial resources remain limited. While much has been accomplished since 2001, moreremains to be done as we move from “Compact to Impact”. The Afghan Government with supportfrom the international community must act decisively, strategically, and with an absolute commit-ment to the ANDS goals and vision.We look forward to working with our government colleagues, civil society representatives, tribal eld-ers and religious scholars, the private sector, the international community and, most importantly, fel-low Afghans to implement the ANDS, to help realize the Afghanistan Compact benchmarks and Mil-lennium Development Goals. Message from the Ovresight Committee vii
  10. 10. Acknowledgmentsviii Afghanistan National Development Strategy (ANDS)
  11. 11. In the name of Allah, the most Merciful, the most CompassionateThe Afghanistan National Development Strategy (ANDS) could not have been developed without the generouscontribution of many individuals and organizations. The ANDS was finalized under the guidance of the Over-sight Committee, appointed by HE President Hamid Karzai and chaired by H.E. Professor Ishaq Nadiri, SeniorEconomic Advisor to the President and Chair of the ANDS Oversight Committee. The committee included: H.E.Rangeen Dadfar Spanta, Minister of Foreign Affairs; Anwar-ul-Haq Ahady, Minister of Finance; H.E. JalilShams, Minister of Economy; H.E. Sarwar Danish, Minister of Justice; H.E. Haneef Atmar, Minister of Education;H.E. Amin Farhang, Minister of Commerce; and H.E. Zalmai Rassoul, National Security Advisor.We would like to sincerely thank the First Vice-President and Chair of the Economic Council, H.E. Ahmad ZiaMassoud. Special thanks are also due to H.E. Hedayat Amin Arsala, Senior Minister and H.E. Waheedulah Shah-rani, Deputy Minister of Finance and the Ministry of Finance team. In addition, we would like to thank the Su-preme Court, the National Assembly, Government Ministries and Agencies, Provincial Authorities, Afghan Em-bassies abroad, national Commissions, the Office of the President, Civil Society Organizations, and InternationalCommunity.All Ministers, deputy ministers and their focal points, religious leaders, tribal elders, civil society leaders, allAmbassadors and representatives of the international community in Afghanistan; and all Afghan citizens. Na-tional and international agencies participated actively in the ANDS consultations. Their contributions, commentsand suggestions strengthened the sectoral strategies, ensuring their practical implementation. Thanks are alsodue to the Ministry of Rural Rehabilitation for their significant contributions to the subnational consultations.Special thanks are further due to the Presidents Advisors, Daud Saba and Noorullah Delawari for their contribu-tions, as well as Mahmoud Saikal for his inputs. We are also indebted to the Provincial Governors and their stafffor their contributions, support and hospitality to the ANDS preparations.Special thanks go to Wahidullah Waissi, ANDS/PRS Development Process Manager, for his invaluable contribu-tion and for the efforts of his team of young Afghan professionals who dedicated themselves tirelessly to com-pleting the I-ANDS, Afghanistan Compact and the full ANDS in consultation with both national and interna-tional partners. The Sector Coordinators included Rahatullah Naeem, Farzana Rashid Rahimi, Shakir Majeedi,Attaullah Asim, Mohammad Ismail Rahimi, Zalmai Allawdin, Hedayatullah Ashrafi, Shukria Kazemi, Saifurah-man Ahmadzai, and; the Sub-National Consultations Team consisted of Mohammad Yousuf Ghaznavi,Mohammad Fahim Mehry, Shahenshah Sherzai, Hekmatullah Latifi, Sayed Rohani and Osman Fahim; and Prof.Malik Sharaf, Naim Hamdard, Saleem Alkozai, Mir Ahmad Tayeb Waizy, Sayed Shah Aminzai, Khwaga Kakarand Mohammad Kazim. Thanks to Nematullah Bizhan for his special contribution from the JCMB Secretariat. Weare also indebted to the many national and international advisers who supported this effort. In particular, wewould like to thank Zlatko Hurtic, Paul O’Brien, Jim Robertson, Barnett Rubin, Peter Middlebrook, RichardPonzio, Anita Nirody, Shakti Sinha, Ashok Nigam, Christopher Alexander and Ameerah Haq.Finally, I would like to thank all who contributed towards this endeavor in preparation of the first AfghanistanNational Development Strategy, a milestone in our country’s history and a national commitment towards eco-nomic growth and poverty reduction in Afghanistan.Adib Farhadi,Director, Afghanistan National Development Strategy, andJoint Coordination and Monitoring Board SecretariatThe complete list of contributors will be attached shortly. Acknowledgments ix
  12. 12. Table of Contentsx Afghanistan National Development Strategy (ANDS)
  13. 13. Map of Afghanistan ......................................................................................................................................... iiiForeword............................................................................................................................................................. ivMessage from the Oversight Committee...................................................................................................... viAcknowledgments.............................................................................................................................................. xAcronyms and Abbreviations....................................................................................................................... xivGlossary of Afghan Terms ........................................................................................................................... xviiINTRODUCTION .............................................................................................................................................. 1Background .......................................................................................................................................................... 1Achievements Since 2001.................................................................................................................................... 1Afghanistan’s Challenges .................................................................................................................................. 3International Support for Afghanistan ............................................................................................................. 5The Afghanistan National Development Strategy ......................................................................................... 5PART I .................................................................................................................................................................. 3PROCESS, GOALS AND POLICY DIRECTIONS....................................................................................... 3CHAPTER 1 ......................................................................................................................................................... 5THE ANDS: AN OVERVIEW .......................................................................................................................... 5Security.................................................................................................................................................................. 5Governance, rule of law, justice and human rights ........................................................................................ 6Economic and social development .................................................................................................................... 6Cross-Cutting Issues.......................................................................................................................................... 13Enhancing Aid Effectiveness and Aid Coordination.................................................................................... 14Implementation and Monitoring of the ANDS ............................................................................................. 15CHAPTER 2 ....................................................................................................................................................... 17THE PARTICIPATORY PROCESS AND PROVINCIAL DEVELOPMENT PLANS ......................... 17Organizing principles and participation process ....................................................................................... 17Consultation process ......................................................................................................................................... 19Provincial Development Plans (PDPs)............................................................................................................ 20Prioritization and sequencing of the PDPs..................................................................................................... 21Integration of the PDPs into ANDS ................................................................................................................ 21Outcomes from the provincial development planning process .................................................................. 22Prioritization of the pillars................................................................................................................................ 22Regional variation in priorities ........................................................................................................................ 24Conclusion .......................................................................................................................................................... 25CHAPTER 3 ....................................................................................................................................................... 27THE POVERTY PROFILE ............................................................................................................................... 27Data collection, poverty measurements and estimates ................................................................................ 27Poverty estimates............................................................................................................................................... 28Poverty in Afghanistan: main characteristics of inequality ......................................................................... 29Most important causes of poverty: poverty correlates ................................................................................. 31Who the poor are: the most vulnerable groups ............................................................................................. 33Policy framework for poverty reduction........................................................................................................ 33High priority sector policies for poverty reduction ...................................................................................... 34Conclusion .......................................................................................................................................................... 36PART II............................................................................................................................................................... 37THE NATIONAL DEVELOPMENT STRATEGY ...................................................................................... 37CHAPTER 4 ....................................................................................................................................................... 39MACROECONOMIC FRAMEWORK ......................................................................................................... 39Linking growth with poverty reduction and employment creation .......................................................... 40 Contents xi
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Growth Projection and Strategy ...................................................................................................................... 44 Fiscal policy ........................................................................................................................................................ 46 Monetary policy ................................................................................................................................................. 48 Financing the ANDS.......................................................................................................................................... 50 Conclusion .......................................................................................................................................................... 51 CHAPTER 5 ....................................................................................................................................................... 53 SECURITY ......................................................................................................................................................... 53 Current situation................................................................................................................................................ 53 Policy framework............................................................................................................................................... 55 Security institutions........................................................................................................................................... 56 ‘Right-Financing’ Security Sector Reform ...................................................................................................... 58 Sound Administration, Justice and Judicial System ..................................................................................... 59 Relations with nieghbors and international allies......................................................................................... 59 Conclusion .......................................................................................................................................................... 59 CHAPTER 6 ....................................................................................................................................................... 61 GOVERNANCE, RULE OF LAW & HUMAN RIGHTS ........................................................................... 61 Governance, Public Administration Reform and human rights ................................................................. 61 Justice .................................................................................................................................................................. 63 Religious affairs ................................................................................................................................................. 67 Conclusion .......................................................................................................................................................... 69 CHAPTER 7 ....................................................................................................................................................... 73 ECONOMIC AND SOCIAL DEVELOPMENT .......................................................................................... 73 Private sector development.............................................................................................................................. 73 Energy ................................................................................................................................................................. 77 Water and irrigation .......................................................................................................................................... 82 Agriculture and rural development................................................................................................................ 87 Transport............................................................................................................................................................. 93 Information and Communications Technology ............................................................................................ 96 Urban development......................................................................................................................................... 100 Mining ............................................................................................................................................................... 105 Health and Nutrition....................................................................................................................................... 108 Education .......................................................................................................................................................... 113 Culture, youth and media .............................................................................................................................. 120 Social protection............................................................................................................................................... 123 Refuges, returnees and internally displaced persons ................................................................................. 129 Conclusion ........................................................................................................................................................ 133 CHAPTER 8 ..................................................................................................................................................... 143 CROSS-CUTTING ISSUES .......................................................................................................................... 143 Regional cooperation....................................................................................................................................... 143 Counter narcotics............................................................................................................................................. 145 Anti-corruption ................................................................................................................................................ 146 Gender equity................................................................................................................................................... 147 Capacity development .................................................................................................................................... 149 Environment..................................................................................................................................................... 150 Conclusion ........................................................................................................................................................ 151 PART III ........................................................................................................................................................... 153 AID EFFECTIVENESS AND COORDINATION..................................................................................... 153 CHAPTER 9 ..................................................................................................................................................... 155 AID EFFECTIVENESS AND COORDINATION..................................................................................... 155 Paris Declaration and Afghanistan Compact............................................................................................... 155xii Afghanistan National Development Strategy (ANDS)
  15. 15. Current situation: assessment of aid effectiveness...................................................................................... 155Aid effectiveness strategy framework .......................................................................................................... 156Implementation and monitoring ................................................................................................................... 160Conclusion ........................................................................................................................................................ 162PART IV ........................................................................................................................................................... 163IMPLEMENTATION AND MONITORING ............................................................................................ 163CHAPTER 10 ................................................................................................................................................... 165IMPLEMENTATION FRAMEWORK ........................................................................................................ 165Lessons learned during the Interim ANDS.................................................................................................. 165Implementation framework and integrated approach ............................................................................... 166Implementation Plan and the ANDS implementation cycle ..................................................................... 167Implementation Cycle..................................................................................................................................... 167Role of the National Budget and the MTFF ................................................................................................. 168Role of the MTFF ............................................................................................................................................. 171Role of the Control and Audit Office (CAO) ............................................................................................... 171Budget management framework, prioritization and funding requirements for the implementation ofthe ANDS.......................................................................................................................................................... 171National implementation structures ............................................................................................................. 172Sub-national implementation structures ...................................................................................................... 172Coordination structures.................................................................................................................................. 172Integrating conflict management into sector strategies.............................................................................. 173Conclusion ........................................................................................................................................................ 173CHAPTER 11 ................................................................................................................................................... 175MONITORING FRAMEWORK .................................................................................................................. 175ANDS monitoring and evaluation principles.............................................................................................. 175Institutional structure...................................................................................................................................... 176Monitoring and evaluation reporting ........................................................................................................... 178Indicators for monitoring ............................................................................................................................... 178Monitoring and evaluation framework ........................................................................................................ 180Conclusion ........................................................................................................................................................ 180CHAPTER 12 ................................................................................................................................................... 185CONCLUSION................................................................................................................................................ 185APPENDICES.................................................................................................................................................. 189 Contents xiii
  16. 16. Acronyms and Abbreviationsxiv Afghanistan National Development Strategy (ANDS)
  17. 17. AC Afghanistan Compact DAB Da Afghanistan Bank (Central Bank ofACBAR Agency Coordinating Body for Afghan Afghanistan) Relief DABM Da Afghanistan Breshna Moassessa (theADB Asian Development Bank Afghan electric utility)ADC Area Development Councils DAC District Advisory CommitteeAfCERT Afghanistan Cyber Emergency Response DCN District Communication Network Team EC European CommissionAFMIS Afghanistan Financial Management Sys- ECOTA Economic Cooperation Organization tem Trade AgreementAGO Attorney General’s Office EPAA Export Promotion Agency of AfghanistanAIHRC Afghanistan Independent Human Rights EPHS essential package of hospital services Commission EU European UnionAISA Afghanistan Investment Support Agency FCCS Foundation for Culture and Civil SocietyANA Afghanistan National Army FDI Foreign Direct InvestmentANDMA Afghanistan National Dis-aster Manage- FSMS Food Security Monitoring Survey ment Authority GDP Gross Domestic ProductANP Afghan National Police GIAAC General and Independent AdministrationANSA Afghanistan National Standards Author- Against Corruption and Briberyity GIS Geographical Information SystemANSF Afghan National Security Forces GoA Government of AfghanistanANWP Afghanistan National Welfare Program GSM Global System MobileAPPPA Afghanistan Participatory Poverty As- Ha Hectare sessment HCS Health Care ServiceARCSC Administrative Reform and Civil Service HIPC Heavily Indebted Poor Countries Commission HIV Human immunodeficiency virusARDS Afghan Reconstruction & Development HIV/AIDS Human Immune-deficiency Vi- Services rus/Acquired Immune Deficiency Syn-ARDZ Agriculture and Rural Development drome Zones HNS Health and Nutrition SectorARTF Afghanistan Reconstruction Trust Fund HNSS Health and Nutrition Sector StrategyASYCUDA Automated System for Customs Data IAGs Illegal Armed GroupsATRA Afghanistan Telecommunication Regula- I-ANDS Interim Afghanistan National Develop- tion Authority ment StrategyAUWSSC Afghanistan Urban Water Supply and IARCSC Independent Administrative Reform and Sewerage Corporation Civil Service CommissionBPFA Beijing Platform for Action IATA International Air Transport AssociationBPHS basic package of health services ICAO International Civil Aviation OrganizationCAO Control and Audit Office ICCD Inter-ministerial Commission for Capac-CAR Central Asian Republics ity DevelopmentCARD Comprehensive Agriculture and Rural ICE Inter-Ministerial Commission on Energy Development ICT Information and Communications Tech-CAREC Central Asian Regional Economic Coop- nology eration IDLG The Independent Directorate for LocalCASA Central and South Asia GovernanceCBN Cost of Basic Needs IDP Internally Displaced PersonsCCCG Cross Cutting Consultative Group IDPs Internally Displaced PersonsCDCs Community Development Councils IEC Independent Electoral CommissionCEDAW Convention on the Elimination of all ILO International Labor Organization forms of Discrimination against Women IMF International Monetary FundCG Consultative Group ISAF International Security Assistance ForceCIS Commonwealth of Independent States Air CommandCMRS Central Monitoring and Reporting Sys- IT Information Technology tem IWRM Integrated Water Resources ManagementCN counter narcotics JCMB Joint Monitoring and Coordination BoardCNPA Counter Narcotics Police of Afghanistan Km KilometerCNTF Counter Narcotics Trust Fund KWH Kilowatt-Hour (Unit of electric energy)CSO Central Statistics Office LOTFA Law and Order Trust FundCSTI Civil Services Training Institute M&E Monitoring and Evaluation MoCIT Ministry of Communications & Informa- tion Technology MCN Ministry of Counter Narcotics MDGs Millennium Development Goals Acronyms and Abbreviations xv
  18. 18. MEAs Multilateral Environmental Agreements PAR Public Administration ReformMIS Management Information Systems PAYG Pay-as-you-goMoD Ministry of Defense PDPs Provincial Development PlansMoE Ministry of Economy PFM Public Financial ManagementMoE Ministry of Education PIO Project Implementation OfficeMoF Ministry of Finance PIP Public Investment ProgramMoFA Ministry of Foreign Affairs PPA Power Purchase AgreementMoHE Ministry of Higher Education PRDP Pro-active Regional Diplomacy ProgramMoI Ministry of Interior PRSP Poverty Reduction Strategy PaperMoJ Ministry of Justice PRT Provincial Reconstruction TeamMoLSAMD Ministry of Labor, Social Affairs, Martyrs PRTs Provincial Reconstruction Teams and the Disabled RBA River Basin AgencyMoM Ministry of Mines RED Rural Road Evaluation ModelMoPH Ministry of Public Health RIMU Reform Implementation ManagementMoU Memorandum of Understanding UnitMoUD Ministry of Urban Development SAARC South Asian Association for RegionalMoWA Ministry of Women’s Affairs CooperationMRRD Ministry of Rural Rehabilitation and De- SCO Shanghai Cooperation Organization velopment SCWAM Supreme Council for Water Affairs Man-MTFF Medium Term Financial Framework agementMW Megawatt SEPS South-East Power SystemNABDP National Area-Based Development Pro- SMEs Small and Medium Enterprises gram SNC Sub-National ConsultationNAPWA National Action Plan for the Women of SOE State Owned Enterprises Afghanistan SPECA Special Program for the Economies ofNATO North Atlantic Treaty Organization Central AsiaNDCS National Drug Control Strategy SPS Sanitary and Phyto-sanitaryNEPA National Environmental Protection TA Tripartite Agreement Agency (GoA) TAG Technical Advisory GroupNEPS North-East Power System TWG Technical Working GroupNGO Non-Governmental Organization TWGs Technical Working GroupsNIRA National Internet Registry of Afghani- UN United Nations stan UNAMA United Nations’ Assistance Mission toNRAP National Rural Accessibility Program AfghanistanNRVA National Risk and Vulnerability Assess- UNCAC United Nations Convention Against Cor- ment ruptionNSC National Statistical Council UNDP United Nations Development ProgramNSDP National Skills Development Program UNHCR United Nations High Commission forNSP National Solidarity Program RefugeesNVETA Proposed National Vocational Education UNICEF United Nations International Childrens and Training Authority Emergency FundODA Official Development Assistance UNIFEM United Nations Development Fund forOECD Organization for Economic Cooperation Women and Development UNODC United Nations Office on Drugs andOEF Operation Enduring Freedom CrimeOMO Open Market Operations USAID United States Agency for InternationalOSC Oversight Committee DevelopmentOSCE Organization for Security and Coopera- WATSAN Water and Sanitation Committees tion in Europe WB World BankP&G Pay and grading WCS Wildlife Conservation SocietyPAG Policy Action Group WTO World Trade Organization xvi Afghanistan National Development Strategy (ANDS)
  19. 19. Glossary of Afghan TermsAmu Darya A river originated from Pamir mountain and flowing in the northern region of AfghanistanBank-e-Milli National BankDarya RiverGozar Smallest Administrative Unit inside the Urban areaImam An Islamic leader, often the leader of a mosqueJirgas Local Consultation MeetingsKareze Underground canals connecting wells uses as traditional irrigation systemKuchi NomadLoya Jirga Grand Council, ”Grand Assembly of elders”Madrassa A school, where mostly Islamic Studies are concernedMeshrano Jirga Senate (Upper House of Assembly)Mirab A person responsible for water management in a communitySharia Islamic LawsShura Traditional or Local Council (Shuras, pl)Taqnin Law making, legislationUlama Religious ScholarsWolosi Jirga National Assembly (Lower House of AssemblyZakat Islamic concept of tithing and alms. It is an obligation on Muslims to pay 2.5% of their wealth to specified categories in society when their annual wealth ex- ceeds a minimum level. In addition, Zakat is one of the basic principles of Is- lamic economics, based on social welfare and fair distribution of wealth. AFGHAN CALENDAR 1. Hamal March 21 7. Meezaan September 23 2. Saur April 21 8. Aqrab October 23 3. Jawza May 2 9. Qaus November 22 4. Sarataan June 22 10. Jaddi December 22 5. Asad July 23 11. Dalwa January 21 6. Sunbula Aug 23 12. Hoot February 20 Glossary of Afghan Terms xvii
  20. 20. INTRODUCTIONBACKGROUND had been disrupted and in many cases, includ- ing for all girls and women, ended. Today Af-Following almost three decades of war, the ghanistan has among the highest rates of illit-challenges facing Afghanistan’s development eracy in the world. Yet despite these desperateremain immense. By 1380 (2001), the ravages conditions, since 2001 the country has hadof conflict had bestowed upon Afghan citizens some remarkable achievements. The progressand the incumbent administration an inheri- that has been made should be measuredtance of debt not wealth. With the Taliban against the desperate conditions that prevaileddominating the political landscape from 1375 at the time of the fall of the Taliban. While Af-(1996) onwards, Afghanistan had been moving ghanistan still faces many enormous chal-backwards in all aspects. The results of war, lenges, the progress that has been made givesthe destruction of core institutions of state and cause for some optimism that with the deter-a heavily war torn economy led to unrivaled mination of the Afghan people to rebuild theirlevels of absolute poverty, national ill health, lives and their country, the transformation to alarge scale illiteracy and the almost complete peaceful and prosperous can be achieved.disintegration of gender equity. And yet, fol-lowing six years of reconstruction, at a cost of The goals of the ANDS for the next five yearsbillions of dollars, the path to prosperity from ought to be viewed against what has been ac-extreme poverty remains as distant as ever. complished during the last six years. OnlyInsecurity, poverty, corruption and the expand- some of the most significant achievements caning narcotics industry signify that while the be mentioned here.challenges facing Afghanistan have changed innature, they have not necessarily changed inmagnitude. Yet, the price of securing peace and Political achievements:freedom at this pivotal moment in history will In 1380 (2001) the Bonn Agreement estab-be nothing compared to the long term costs of lished a roadmap for the political trans-failure both for Afghanistan and the interna- formation of Afghanistan to a legitimatetional community. Averting failure and estab- democratic state. The targets set in thelishing Afghanistan on a virtuous path towards Bonn Agreement were fully met on timepeace, stability and prosperity are therefore the and included:cornerstones of the new Afghan National De-velopment Strategy (ANDS). At the core of the The Transitional Administration was estab-ANDS is a policy of Afghanization, meaning lished to guide the process. It derived itsthat ANDS has been fully developed and authority through an Emergency Loyaowned by Afghanistan. Jirga, the first genuinely representative Af- ghan national meeting in decades. In 1383 (2004) Afghanistan adopted its firstACHIEVEMENTS SINCE 2001 constitution in 30 years, which laid the po-In 2001 Afghanistan was certainly a thoroughly litical and development foundation for thedevastated country in virtually every respect. country and established legal protectionsThe political, social and economic structures of for private property and a market econ-the country had been severely damaged or omy.completely destroyed. Massive numbers of Free and fair democratic elections for Presi-Afghans had left as refugees, had died during dent, the National Assembly and Provin-the conflict or were severely disabled. Every cial Councils were conducted. 76 percentfamily had paid a price – many had to cope of eligible voters participated in the presi-with the loss of main breadwinner. For the dential election. Women were elected to 27young people that remained, their education Introduction 1
  21. 21. percent of the seats in the National Assem- 142,500 of who nearly 40,000 are female. bly. Fifty thousand of these teachers have re- ceived in-service teacher training. After the successful completion of the Bonn Agreement, Afghanistan and the interna- Major advances have been made in extend- tional community entered into a new part- ing health care services throughout the nership, based upon the Afghanistan Com- country and rebuilding a decimated educa- pact, which was agreed at the London Con- tional system. The percentage of the popu- ference of 1384 (2005). The Compact set lation living in districts where the Basic ambitious goals for comprehensive state Package of Health Services is being imple- building, setting benchmarks in all sectors mented has increased from 9 percent in of security, governance, and development, 2003 to 82 percent in 2006. including the cross-cutting goals of Over 2.5 million people have benefited counter-narcotics and regional coopera- from social protection arrangements cover- tion. ing (i) martyr’s families; (ii) disabled with In 1385 (2006) the new National Assembly war-related disabilities; (iii) orphans and began its work, including the approval of a children enrolled in kindergartens; (iv) vic- new cabinet; a new Chief Justice and other tims of natural disasters; (v) pensioners; judges for the Supreme Court; and the Na- and (vi) unemployed. tional Budget. A new Attorney General Measurable progress has been achieved with a new mission to fight corruption was since 2003 in improving rural livelihoods. appointed. New Provincial Governors Almost 20,000 km of rural access roads (i.e., were named. all weather, village-to-village and village- The disarmament, demobilization and rein- to-district centre roads) have been con- tegration of ex-combatants has been com- structed or repaired, increasing access to pleted. Today the national army and police markets, employment and social services. forces are close to full strength. Afghani- More than 500,000 households (36 percent stan is no longer a safe haven for terrorists. of villages) have benefited from small-scale irrigation projects. Currently, 32.5 percent of the rural population has access to safe Social and Humanitarian Achieve- drinking water and 4,285 improved sanita- ments: tion facilities have been provided. More Since 1381 (2002), more than five million than 336,000 households have benefited Afghan refugees have returned home. In from improved access to financial services. 1385 (2006) 342,925 Afghan refugees re- Some 18,000 CDCs have been established turned from Pakistan and Iran and 1,004 and are implementing community-led de- from other countries. More than 150,000 velopment projects. Efforts have made to benefited from the assistance package pro- assist the poorest and most vulnerable. vided by UNHCR. The Government has so far distributed Economic Achievements: 30,000 residential plots of land to needy re- Macroeconomic stability has been main- turning refugee families. tained, based upon disciplined fiscal and From under one million in 2001 the school monetary policies. A new unified currency population has grown to 5.7 million in 2007 was successfully introduced; inflation has and new enrolments into Grade 1 have remained low while the exchange rate has ranged between 12-14 percent per annum been stable. in the last 5 years. Two million of the chil- Sixteen private commercial banks have dren (or 35 percent) enrolled are girls – a 35 been licensed; a leasing and financing percent increase in five years. The number company is operating; an equity fund is of schools has trebled to 9,062 in 2007 in- underway to invest in local businesses. cluding 1,337 all girls’ and 4,325 co- There are also thirteen microfinance insti- educational schools. Similarly, the number of teachers has increased seven-fold to2 Afghanistan National Development Strategy (ANDS)
  22. 22. tutions providing services to almost Major advances have been made in open-200,000 active clients in 27 provinces. ing up the telecommunications sector to private sector investment under a ‘invest-State owned enterprises are being privat- ment friendly’ regulatory frameworkized, corporatized or liquidated. aimed at maintaining a competitive marketA lively free and privately owned media for services, and phone subscribers havehave developed and over which people are increased from less than 20 thousand toable to express political views freely – more than 5 million in less than 6 years.which they do daily. A rapid urbanization process has seen theThe legal and commercial infrastructure is urban population increase to almost abeing put in place for a market oriented quarter of the total population. Despite theeconomy. pressures implied by rapid urbanization, two million urban residents (31 percent ofElectricity capacity has almost doubled the total urban population) have benefitedcompared to 2002. from investments in water supply and 12Over 12,000 kilometers of roads have been percent from investment in sanitation inrehabilitated, improved, or built. This in- major cities between 2002 and 2007.cludes the ring road system, national high- Afghanistan has world class mineral de-ways, provincial roads and rural roads. posits that are being opened up for explo-Kabul International Airport has been ex- ration and development. The first majorpanded and extensively rehabilitated. investment has recently been announced for developing the Aynak copper depositsPrivate airlines have entered the aviation in central Logar province, an almost $3 bil-sector and established air links throughout lion investment after an extensive evalua-the region. tion of tenders from nine major interna-A key bridge investment has opened up tional mining companies.direct road links to Tajikistan and greatlyreduced transportation times through to When seen against the desperate conditionsUrumqi in China, one of the fastest grow- that prevailed in the country in 2001, theseing trade hubs in the world. achievements constitute an impressive record. The ANDS sets goals for the next five years thatTwo million urban residents have benefited will require even greater achievements.from investments in water supply and 12percent from investment in sanitation inmajor cities between 2002 and 2007. AFGHANISTAN’SAbout 35,000 water points 59 networks and CHALLENGES1,713 water reservoirs and 23,884 demon-stration latrines have been constructed. Few countries have simultaneously faced the range and extent of challenges with which theMore than three million people have bene- people and Government of Afghanistan mustfited directly from the rural water supply now contend. After nearly three decades ofand sanitation activities in the country. continuous conflict the country emerged in lateAround a third of the provinces reported 2001 as a truly devastated state with its human,some improvement in access to clean physical and institutional infrastructure de-drinking water during the consultative stroyed or severely damaged. At that time theprocess under the ANDS. UN Human Development Report ranked Af- ghanistan as the second poorest country in theIrrigation Rehabilitation has been given World. In addition to the widespread poverty,high priority over the past four or five the Government must deal with continuingyears. Of some 2,100 rehabilitation pro- threats to security from extremists and terror-jects, approximately 1,200 have been com- ists, weak capacity of governance and corrup-pleted and have been placed back into tion; a poor environment for private sector in-commercial service. vestment, the corrosive effects of a large and growing narcotics industry; and major human Introduction 3
  23. 23. capacity limitations throughout the public and Economic governance is weak. The Gov- private sectors. Meeting these challenges and ernment is pursuing comprehensive eco- rebuilding the country will take many years nomic reform, including the introduction and require consistent international support. of new commercial laws and regulations, but the establishment of institutions The successful transformation of Afghanistan needed for effective implementation and into a secure, economically viable state that can enforcement are largely lacking and will meet the aspirations of the Afghan people, live take years to develop.1 at peace with itself and its neighbors and con- Afghanistan’s commercial connections to tribute to regional and international stability regional and global economies were se- will depend upon the effective utilization of all verely disrupted and must be redeveloped. available human, natural and financial re- The development of a competitive private sources. In this partnership a critical role must sector will depend on establishing access to be played by the private sector. Significantly foreign markets and developing viable ex- reducing poverty will require substantially in- port activities. creasing employment which depends on main- taining high rates of economic growth in the Critical markets for land and finance are years ahead. It is not sufficient to rely on the largely undeveloped, limiting the ability of Government and the international community private investors to establish and operate to sustain the high rates of investment needed businesses. Property rights are often con- to generate the levels of employment to have a tested or difficult to defend. major impact on reducing poverty. As the Afghanistan is experiencing high popula- macroeconomic projections presented in Chap- tion. Continued rapid population growth ter 4 indicate, a substantial increase in private will substantially increase the levels of in- investment will be essential if significant pro- vestment that will be required to substan- gress is to be realized in meeting the social and tially reduce poverty. economic objectives of the country. Both the Government and the international Afghanistan is a country with significant po- community recognize that prolonged aid de- tential for economic development. It has sub- pendency will undermine the chances of stantial water, agricultural and mineral re- achieving sustained economic growth and pov- sources and is well positioned to become a erty reduction. However, given the major limi- trade and business hub linking the markets of tations in the economic environment that must Central Asia, the Middle East, South Asia and be addressed, the successful transition to a China. The potential exists or sustainable eco- competitive market economy will require sus- nomic growth in the future. However, there tained commitment by the Government, with are a number of fundamental limitations in the the support of the international community. economic environment that must be addressed Simply creating conditions in which the private if these efforts are to succeed: sector can operate alone will not be sufficient. Increased efforts by both the Government and The country’s ‘hard infrastructure’, includ- the donor community to attract Afghan and ing roads and reliable supplies of water foreign investors are needed if the goals of the and power, is inadequate to support rapid ANDS are to be realized. and sustained economic growth. The corresponding ‘soft infrastructure’, Social and economic development will also be which includes the human and institutional severely curtailed if the insecurity that prevails capacity necessary for an economy to func- is not resolved. Despite the considerable efforts tion, is also extremely limited. Consider- by the Government and the international com- able emphasis is being given to developing capacity in both the public and private sec- tors and to institutional development, but 1 these efforts will take time. Many of the government’s initiatives in this area are described in “A Policy for Private Sector Growth and Development” pre- sented at the Enabling Environment Conference, Kabul, June 2007.4 Afghanistan National Development Strategy (ANDS)
  24. 24. munity, security has steadily deteriorated since sectors of security, governance, and develop-2004 in some parts of the country. Ongoing ment, including the cross-cutting goals ofcross-border activities, particularly in the counter-narcotics. To implement its obligationssouthern and southeastern provinces, have re- under the Afghanistan Compact, the Govern-sulted in several areas being effectively off lim- ment developed the Afghanistan National De-its to meaningful development assistance. velopment Strategy (ANDS) to clarify existing conditions, establish objectives and define theThe lack of stability reduces the ability of aid policies, programs and projects needed toagencies and the Government to operate in achieve those objections. The internationalmany areas and to effectively implement pro- community made new pledges of financial andjects and programs. The impacts of these limi- security assistance and set out to improve itstations typically fall most heavily on the poor. coordination by renewing and upgrading theInsecurity also increases the cost of doing busi- UN Assistance Mission for Afghanistanness and undermines private sector growth (UNAMA), headed by a Special Representativeand development.2 The difficulties in main- of the Secretary General with enhanced powerstaining security contribute significantly to two for coordination.4closely related issues: increasing corruption inthe public sector and the rapid growth of the The ANDS represents an important milestonenarcotics industry. There is a consensus that in the efforts to rebuilding of Afghanistancorruption in Afghanistan is widespread and which has been underway since late 1380has been getting worse.3 Public corruption (2001). During this time there have been arepresents a major disincentive for private in- number of reports, conferences and strategiesvestment, substantially increasing the costs and developed to address Afghanistan’s chal-risks of doing business. A lack of security in lenges.5 In addition, the Government and thesome parts of the country has created condi- international community have entered into ations in which poppy cultivation has flour- series of agreements concerning the directionished, feeding a growing narcotics industry and support for the country’s developmentthat both funds terrorist activity and feeds pub- efforts, including notably the Bonn Agreement,lic corruption. Although poppy cultivation has the commitment to the Millennium Develop-been greatly reduced in 29 of the 34 provinces, ment Goals (MDGs) and the Afghanistanin the remaining five it has seen explosive Compact. The ANDS builds on all of these andgrowth to where Afghanistan accounts for provides a comprehensive and integrated strat-around 90 percent of the world’s opium pro- egy that reflects recent experience and currentduction. conditions.INTERNATIONAL SUPPORT THE AFGHANISTANFOR AFGHANISTAN NATIONAL DEVELOPMENTAfter the fall of the Taliban, the international STRATEGYcommunity’s response was not only military The Afghanistan National Development Strat-but also began to provide Afghanistan with the egy (ANDS) represents the combined efforts ofinstitutional and financial resources to start the the Afghan people and the Afghan Govern-state building process. In 2006, the Afghani- ment with the support of the internationalstan Compact agreed between the Government community to address the major challengesand international community established goals facing the country. To comprehensively ad-for state building, setting benchmarks in core 4 Afghanistan has also placed special emphasis on good relations2 For example, the World Bank “Investment Climate Assess- with its neighbors, particularly Pakistan. The two countries con-ment” reported that companies are typically spending as much as vened a joint Peace Jirga in August 2006, and Afghanistan looks15 percent of total sales on security costs. forward with hope and optimism to enhanced cooperation with3 Pakistan. For example, in the 2005 Transparency International “Corrup- 5tion Perceptions Index” Afghanistan ranked 117th (of 158); two Details for many of the key documents can be found in theyears later the country was ranked 172nd (of 179). bibliography. Introduction 5
  25. 25. dress the security, governance, and develop- each of the 34 provinces.6 In addition, a com- ment needs of Afghanistan, the government prehensive series of sector and ministry strate- has developed the ANDS. The ANDS reflects gies were developed that address all aspects of the government’s vision, principles and goals social and economic development. The result for Afghanistan which builds on its commit- of this inclusive process is a national strategy ment to achieve the Millennium Development that is fully reflective of the aspirations of the Goals by 2020 and the implementation of the Afghan people. The ANDS is the product of Afghanistan Compact benchmarks. The strat- extensive consultations at the national, provin- egy is based upon an assessment of current cial and local levels. The Government is com- social and economic conditions; offers clear mitted to programs and projects that directly intermediate objectives; and identifies the ac- target the poorest and most vulnerable groups tions that must be taken to achieve these na- for assistance. Well targeted poverty reductions tional goals. The ANDS largely focuses on the programs are emphasized both in the strategy next five years, but reflects Afghanistan’s long- for social protection and integrated into the term goals which include the elimination of design of strategies across the other sectors of poverty through the emergence of a vibrant the economy. middle class, an efficient and stable democratic political environment and security throughout The remainder of the ANDS is organized as the country. follows: Despite the full commitment of the Govern- Chapter 1: provides an overview of the ment and the considerable assistance being ANDS provided by the international community, it Chapter 2: explains ANDS extensive par- will not be possible to fully achieve all of these ticipatory process to ensure ownership objectives during the next five years. Therefore it is essential that well defined priorities be es- Chapter 3: presents the poverty profile of tablished that reflect the relative contributions the country, a key foundation for ANDS’s of potential policies, programs and projects policy based on evidence approach towards reaching these goals. This is a difficult Chapter 4: presents the macroeconomic process. The contribution of any project to in- framework for the economy. It discusses creasing economic growth is uncertain and is the policies intended to maintain economic inevitably contingent on progress in other ar- stability, the initial planning on resource al- eas. It also requires a careful analysis of bene- locations for the ANDS period and the total fits versus costs with alternative allocations of resources available for the implementation resources. As a result, the prioritization of ac- of public sector programs and projects tivities should be seen as an ongoing process through the external and core budgets. that adapts to changing circumstances and the results of program and project appraisal work Chapter 5: presents the strategies and pri- on alternative use of resources. In meeting this orities relating to Security pillar challenge, the ANDS aims to establish institu- Chapter 6: presents the strategies and pri- tional mechanisms that will include the Afghan orities relating to Governance, Rule of Law, people, the Government, civil society and the Justice and Human Rights pillar. international community in identifying priori- ties in an evolving environment. Chapter 7: presents the sector strategies and priorities relating to Economic and So- A comprehensive ‘bottom-up’ approach was cial Development pillar. This addresses used in the development of the ANDS that has private sector development, energy, trans- taken into account all aspects of social and eco- port, mining, education, culture, youth and nomic life as well as fully reflecting the diver- media, agriculture and rural development, sity of people in all parts of the country. Con- public health, social protection and refu- siderable efforts were made to ensure that sub- national consultations (i.e., outside of the cen- tral government in the capital Kabul) identified the priorities of the Afghan people living in 6 The Provincial Development Plans (PDPs) that were developed as part of this process are presented in ANDS Volume III.6 Afghanistan National Development Strategy (ANDS)
  26. 26. gees, returnees and internally displaced Chapter 10: discusses the integrated ap-persons. proach implementation framework of ANDSChapter 8: discusses critical cross-cuttingissues that have impacts across all sectors. Chapter 11: discusses monitoring, coordi-These include regional cooperation, nation and evaluation requirements of thecounter-narcotics, anti-corruption, gender ANDSequality, capacity building and environ-mental management. Volume II: includes 17 sector strategies, 6 strategies for cross cutting issues and 38 indi-Chapter 9: discusses aid effectiveness vidual ministry and agency strategies.measure that needs to be taken jointly bythe Government and the international Volume III: discusses the participatory processcommunity used in developing the ANDS, 34 Provincial Development Plans and development priori- ties. Introduction 7
  27. 27. PART IPROCESS, GOALSAND POLICYDIRECTIONS
  28. 28. CHAPTER 1 THE ANDS: AN OVERVIEWThe overriding objective of the ANDS is to sub- experience it. In so doing, a broader choice ofstantially reduce poverty, improve the lives of poverty actions based on the specific concernsthe Afghan people, and create the foundation of the poor have been established for eachfor a secure and stable country. This requires province, as well as each district.building a strong, rapidly expanding economyable to generate the employment opportunities Key issues identified by stakeholders included:and increasing incomes essential for poverty (i) the lack of access to clean drinking water inreduction. The ANDS establishes the Govern- all provinces; (ii) the needed improvement inment’s strategy and defines the policies, pro- provincial roads; (iii) the poor quality of publicgrams and projects that will be implemented services; (iv) poorly trained teachers and doc-over the next five years and the means for ef- tors; (v) the lack of alternatives to poppy culti-fectively implementing, monitoring and evalu- vation; (vi) the lack of vocational training forating these actions. The goals included in the returnees and disabled people; (vii) poor accessANDS are fully consistent with the commit- to electricity; (viii) corruption within the publicments entered into in previous strategies and administration particularly respect to the secu-agreements and build on the considerable pro- rity services. The Government has examined agress that has been achieved since 1380 (2001). range of poverty actions based on the specificWhile focus of the ANDS is on the next five concerns of the poor including vulnerability,years, it will continue to adjust to changing cir- conflict sensitivity, insecurity and governance.cumstances – it is intended to be a ‘livingdocument’. The ANDS lays out the strategic priorities and the policies, programs and projects for achiev-The ANDS serves as the country’s Poverty Re- ing the Government’s development objectives.duction Strategy Paper (PRSP). As such, it es- These are organized under three pillars: (i) Se-tablishes the joint Government/international curity; (ii) Governance, Rule of Law and Hu-community commitment to reducing poverty; man Rights; and (iii) Economic and Social De-describes the extent and patterns of poverty velopment.that exist; presents the main elements of itspoverty reduction strategy; summarizes theprojects and programs that will assist the poor; SECURITYand provide a three-year macroeconomic Security and stability in all parts of the countryframework and three-year policy matrix rele- is essential for economic growth and povertyvant to the poverty reduction efforts. The reduction. Afghanistan still faces a number ofPRSP has been prepared based on an inclusive serious challenges before it can assume full re-consultative process to ensure broad participa- sponsibility for this. International terroriststion and support, while also ensuring policies and domestic extremists prevent the Govern-are based on evidence. A public policy dia- ment from establishing effective control inlogue with all key stakeholders was carried out some areas, particularly in the south and south-across all provinces, allowing government offi- east. The large-scale production of narcoticscials, private sector representatives, NGOs, the continues to provide funds to these groups.media and ordinary citizens an opportunity to Unexploded ordinance remains a significantdiscuss local conditions and concerns. This threat to Afghans, with some five thousandallowed these communities to participate effec- citizens either killed or wounded in mine ex-tively in defining the poverty problem as they plosions since 1380 (2001). Currently only two The ANDS: An Overview 5
  29. 29. of the country’s 34 provinces are completely and non-state governance entities; (ii) the con- clear of land mines. A long standing presence fusion over core centre-periphery administra- of illegal armed groups in different parts of the tion and fiscal relations; (iii) weak public sector country is hindering the process of empower- institutions and underdeveloped governance ment of local democratic institutions. Some of and administrative capabilities; (iv) high levels these groups have close links with police or of corruption; (v) fiscal uncertainty; (vi) weak even belong to local governments. This situa- legislative development and enforcement; (vii) tion enhances corruption and is considered a weak political and parliamentary oversight key obstacle in cracking down the narcotics capacities; (viii) weak community and civil so- industry. ciety institutions; (ix) limited capacity in a jus- tice system; (x) gender inequality; and (xi) un- The Government is fully committed to, and is derdeveloped human rights enforcement ca- giving the highest priority, to successfully: (i) pacities. implementing an integrated and comprehen- sive national security policy and strategy; (ii) If significantly improved governance is not building a robust security sector reform pro- rapidly achieved it will be difficult to make gram; (iii) strengthening civil and military op- substantial progress with respect to security erations and coordination; (iv) increasing the and economic development. An emerging po- role of security forces in counter-narcotics ac- litical and administrative vacuum will be filled tivities; and (v) strengthening the civilian com- by non-state structures driven by illegal and ponents of security entities. Detailed Compact narcotic interests, not by the Government. benchmarks have been established to measure progress in improving capacity within the se- curity organizations and improving security. Religious affairs The Government will focus on the following Significant progress has been made since 2001 priorities: (i) to improve infrastructure for reli- in strengthening the ANA and ANP. For ex- gious affairs, such as mosques, shrines, holy ample, militias have been integrated into the places, and religious schools; (ii) improve the Ministry of Defense (MoD), with the majority training and capacity of Imams, preachers, reli- demobilized. A multi-sector donor support gious teachers and other scholars to raise pub- scheme has been established where individual lic awareness and to teach; (iii) finalize a com- donors are allocated responsibility for oversee- prehensive culture curriculum for primary and ing support for each of the key elements of the higher education; (iv) strengthen Hajj arrange- reform, including: disarmament, demobiliza- ment systems for Afghan pilgrims; (iv) support tion, and reintegration of ex-combatants; mili- efforts by religious organizations to help allevi- tary reform; police reform; judicial reform; and ate poverty and protect vulnerable groups; (v) counter-narcotics. The ANP has been receiving support efforts of the other government agen- extensive training and equipment from the in- cies to improve literacy, dispute resolution and ternational community. to contribute to strengthening of the national solidarity. The expected results include: (i) re- forms implemented in line with Islamic values; GOVERNANCE, RULE OF (b) improved infrastructure and financial sus- LAW, JUSTICE AND HUMAN tainability of religious affairs, particularly of RIGHTS the religious education system; (iii) greater par- ticipation of Islamic scholars in raising aware- In 2000 the World Bank assessed the ‘quality’ of ness about importance of implementation of Afghanistan’s governance institutions as falling key reforms; (iv) a greatly strengthened role of in the bottom one percent of all countries. Pro- the religious institutions in programs for pov- gress since 2001 includes the adoption of the erty reduction. constitution; successful parliamentary and presidential elections, and progress in improv- ing the livelihood and welfare of women and ECONOMIC AND SOCIAL other disenfranchised groups. Despite some DEVELOPMENT progress, a number of significant issues must be addressed, including: (i) the existence of The economic and social development strategy, multiple and often parallel structures of state vision, objectives and expected outcomes have6 Afghanistan National Development Strategy (ANDS)
  30. 30. been prioritized within the overall macro-fiscal growth and development. These steps will: (i)framework to allow a logical progression of improve general levels of efficiency in theinvestments that systematically overcome the economy; (ii) assist in eliminating corruption;core binding constraints to growth and social (iii) encourage better resource allocation, anddevelopment. An integrated approach focuses (iv) generate increased government revenues.investments through the sector strategiessummarized below. The sector strategies were An open trade policy will facilitate a competi-developed based on strategies first put forward tive environment for private sector develop-by individual ministries and groups of minis- ment, avoid the high costs incurred with pro-tries. Although Ministry strategies were the tectionist policies and facilitate Afghanistanstarting point, the sector strategies are broader becoming better integrated as a ‘trading hub’ inthan those of the ministries for several very the region. Any proposals to provide protec-important reasons. First, the sector strategies in tion to particular industries will be evaluatedmany cases involve actions and programs that with a proper ‘economy wide’ perspective thatneed to be undertaken by several ministries. fully accounts for the costs and benefits fromConsiderable attention has therefore been such actions, including the negative impacts ongiven to developing better coordination be- other firms and on the consumers who musttween ministries through Inter-Ministerial pay higher prices. Increased priority will beCommittees. The sector strategies have also given to regional economic cooperation initia-taken account of donor activities being imple- tives aimed at developing regional transporta-mented outside of ministries and informed by tion and transit infrastructure, facilitating re-the Provincial Development Plans (PDPs). The gional trade and investment flows and devel-success of the sector strategies will be heavily oping Afghanistan as a regional business hubdependent on resource effectiveness, revenue linking Central and East Asia with the Middleenhancement and fiscal sustainability, human East and South Asia.and natural resource development and invest-ments in productive and trade-based infra- A second major component of the private sec-structure and private sector driven develop- tor development strategy attempts to encour-ment. age increased private sector investment by cre- ating investor friendly regulatory frameworks for private sector operations in the develop-Private Sector Development ment of natural resources and infrastructure.The ANDS strategic objective is to enable the This approach has been very successful in theprivate sector to lead Afghanistan’s develop- telecommunications sector, where phone usagement within a competitive market-based econ- went from less than 15,000 under a state mo-omy in which the Government is the policy nopoly to over five million subscribers as pri-maker and regulator of the economy, not its vate investments in cellular communicationcompetitor. The establishment of a strong ena- were encouraged. Significant initiatives arebling environment for a competitive private included in the sector strategies for energy,sector is an on-going effort by both the Gov- mining and agriculture based on leased accessernment and donors. Almost all sector strate- to state lands to strengthen these investorgies involve the development of new legisla- friendly regulatory frameworks, and pilot pro-tion. The Government will enact and imple- jects and innovative initiatives are being inves-ment key laws and amendments to establish tigated to allow public funding to support pri-the basic legal and regulatory framework that vate sector activities in the provision of educa-will encourage private sector involvement in tion services, vocational training and publicsocial and economic development. Almost all health services.sector strategies involve institutional strength-ening that is designed to improve the ability of A third and closely related component of theministries and other agencies to administer leg- strategy is based on a concerted effort by theislation in an unbiased and predictable manner. Government and the donor community to more vigorously promote private sector in-Privatization and corporatization of state vestment. Given the limited capacities in theowned enterprises is an on-going program that public sector and in the nascent domestic pri-is on schedule. It represents an important step vate sector, much of this effort will focus onin expanding the scope for private sector trying to encourage foreign firms with the ex- The ANDS: An Overview 7

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