Mobilizing domestic and foreign resources for development in Afghanistan

1. World Bank
Financing for
Development
Course
HOW TO MOBILIZE DOMESTIC AND
FOREIGN RESOURCE FOR
DEVELOPMENT IN AFGHANISTAN
08 Dec 2015

2.  Population: 31.63 million (2014)
 Area: Approx 650,000 square kilometer
 Population Density: 48 Person/km2
 Location: Between Central and South Asia
Source: World Bank
AFGHANISTAN - COUNTRY PROFILE

3.  Post-conflict situation, but still ongoing conflict
 Politically and Economically fragile
 Tension with neighbors
 Millions of population living as refugees in
neighboring and other countries around the
world.
CURRENT SITUATION

4.  GDP : $20.84 Billion (2014)
 GDP per capita: $659 (US Dollar)
 GDP per capita (PPP): $1924
 GDP Growth Rate: 2 % (2014)
 Development Category: Least Income country
 Life Expectancy at birth: 61 years (2013)
Source: World Bank
DEVELOPMENT INDICATORS

5. SOURCES OF DEVELOPMENT FINANCE IN
AFGHANISTAN
Sources of
Finance
Domestic
Natural
Resources
Tax, Custom
and other
Government
Revenues
Foreign
Grants (ODA
etc.) Loans FDI
Others
(Remittances
etc.)

6. MAJOR SOURCES OF FOREIGN AID AND
CAPITAL FLOW
Sources of
Foreign Aid
and Capital
Flow
World
Bank
ADB IDB IMF USAID and
other donors
FDI,
Remittances &
other means
of capital
inflows

7.  Weak Governance & Corruption
 Unnecessary red-tape and bureaucracy
 Macro-economic Instability
 Insecure Operating Environment
 Weak tax legal framework and enforcement
 Weak Institutions, Inadequate legal framework
 Lack of infrastructure (Roads, Electricity etc.)
KEY CHALLENGES TO DOMESTIC & FOREIGN
RESOURCES MOBILIZATION

8. KEY CHALLENGES OF DOMESTIC AND FOREIGN
RESOURCES MOBILIZATION
Key
Challenges
Weak
Governance
and
Corruption
Red tape and
bureaucracy
Macro-
economic
Instability
Limited
enforcement
of tax
Weak
institutional
and legal
framework
Lack of
adequate
infrastructure

9. BUSINESS ENVIRONMENT IN AFGHANISTAN
The overall Business
Environment in
Afghanistan has legal,
institutional, technical
and macro-economic
challenges and issues
that need to be
addressed if domestic
and foreign resources
are supposed to be
mobilized for financing
development.
Legal Institutional
Macro-
Economic
Technical
Business
Environment

10. AFGHANISTAN’S POTENTIAL FOR
DEVELOPMENT
Domestic & Foreign
Resources Mobilization
PotentialforDevelopment
Strategic Location
Small Population
Rich in Natural Resources
Large Area
Diverse climate
Trade & Energy Corridor
DEVELOPMENT

11. Afghanistan is a natural resources rich country having an important
strategic location in Asia. Due to the past several decades of war and
conflict, the country has suffered immense losses in terms of physical and
institutional infrastructure. Yet, with the following measures, the country
has great potential to attract and mobilize both domestic and foreign
investment to finance its development:
 Providing an investment friendly climate
 Improving the institutional and legal framework
 Combating corruption, improving governance and building robust
institutions
 Removing un-necessary hurdles, red tape and excessive bureaucracy
 Improving the tax regime by increasing the tax base through
legislation, policies and enforcement measures
CONCLUSION

12. THANKS TO WORLD BANK FOR OFFERING THIS
EXTREMELY IMPORTANT AND PROUDUCTIVE
COURSE. I PERSONALLY BENEFITED A LOT AND
HOPE THAT OTHER COLLEAGEUES HAVE
BENEFITED AS WELL.
THANKS FOR YOUR ATTENTION