Annually, a huge amount of financing for development is directed to developing countries. However, we have observed small returns or results of such huge monetary contributions for a long time. In this regard, new conception and strategies show that financing for development is a responsibility of each actor in a whole system: government with all its institutions, a private sector (firms, enterprises, and individuals), banks and micro financial sector, international community (development banks, various funds, and project programs). All these actors should work systematically and in a balanced manner with each other to achieve sustainable development for a long-term period.

1. FINANCING FOR
DEVELOPMENT
PRIVATE SECTOR DEVELOPMENT
ISLAMIC REPUBLIC OF AFGANISTAN

2. ISLAMIC REPUBLIC
OF AFGANISTAN
A landlocked country located within South
Asia and Central Asia.[
Population: app. 32 million, (42nd populous
country in the world).
Territory: 652,000 km2 (252,000 sq mi), (41st
largest country in the world).
Climate: a continental climate with harsh
winters in the central highlands, Despite
having numerous rivers and reservoirs, large
parts of the country are dry.
GDP (PPP) in 2016:
• Total : $65.295 billion[6]
• Per capita: $1,994[6]

3. Current conditions
 Economy: Afghanistan is an impoverished least developed country, one of
the world's poorest because of decades of war and lack of foreign investment;
 Health: The country has one of the highest maternal mortality rate in the
world as well as the highest infant mortality rate in the world. A number of
hospitals and clinics have been built over the last decade, with the most
advanced treatments being available
 Education: The literacy rate of the entire population has been very low but is
now rising because more students go to schools.

4. INNOVATIVE FINANCIAL MECHANISN:
PPP TOP-DOWN SUPPORT
1. National Strategy (a long-term period): Public-Private
Partnership (sector projects)
2. Legal framework: Tax Administration Development,
Improvements in Investments and banking system, etc.
3. Action Plans: Support SMEs, social programs,
education and science projects, infrastructure projects

5. INNOVATIVE FINANCIAL MECHANISN:
PPP BOTTOM-UP SUPPORT
3. Action Plans: Support SMEs, social
programs, education and science
projects, infrastructure projects
2. Access to financing: private banks, micro
financial agencies, state banks, loan
institutions, grant foundations, etc.
1. Business planning, strategies: agribusiness, service sector:
trade, tourism; manufacturing sector: textile, clothing and
footwear industry

6. INNOVATIVE FINANCIAL MECHANISN:
INTERNATIONAL SUPPORT of PPP
Public-
Partnership
Development Banks (infrastructure,
industry)
Wealth, Pension and Insurance Funds
(education, social projects)
IMF, Donors, etc. (macroeconomic
stability, risk management)
Foreign Direct Investment (mining,
trade)

7. FINANCING FOR DEVELOPMENT
Development can be sustainable and fruitful if
1. Government provide long-term all-round support and stability;
2. Private sector is inclusive, competitive and operates within the laws;
3. Public-private projects in all sectors of economy;
4. International cooperation and collaboration at all level of development from state
administration to a firm;
5. International investments through FDI, Wealth and Pension Funds, Voluntary
Funds and others.