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Local Governance in Afghanistan: A View from the Ground

Local Governance in Afghanistan: A View from the Ground

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<strong>Afghanistan</strong> Research and Evaluation Unit<br />

2011<br />

5. Service Delivery<br />

The management and delivery of goods and services is critical to any government’s ability to<br />

achieve and ma<strong>in</strong>ta<strong>in</strong> legitimacy. The problem <strong>in</strong> <strong>Afghanistan</strong> is that <strong>the</strong> government cannot be<br />

solely held responsible for shortcom<strong>in</strong>gs <strong>in</strong> service delivery s<strong>in</strong>ce about 90 percent of <strong>the</strong> national<br />

budget is “externally f<strong>in</strong>anced” and aid constitutes almost half of <strong>the</strong> Gross Domestic Product. 48 Most<br />

importantly, however, almost 75 percent of <strong>the</strong> foreign assistance bypasses government budgetary<br />

structures entirely, and a large proportion of <strong>the</strong> aid that is channelled through <strong>the</strong> government goes<br />

unused due to lack of capacity.<br />

There are considerable problems with underspend<strong>in</strong>g of development budgets. Accord<strong>in</strong>g to MoF<br />

figures, government execution of <strong>the</strong> development budget for 2010/11 is a meagre 37 percent. 49<br />

This presents a major challenge for donors and <strong>the</strong> government alike. Donors may use <strong>the</strong> Afghan<br />

government’s <strong>in</strong>ability to fully execute exist<strong>in</strong>g allocations to justify a reduction <strong>in</strong> development<br />

budgets, while <strong>the</strong> government itself may f<strong>in</strong>d it much more convenient to attribute underspend<strong>in</strong>g to<br />

uncoord<strong>in</strong>ated and unpredictable donor engagement ra<strong>the</strong>r than its own adm<strong>in</strong>istrative <strong>in</strong>efficiencies.<br />

In ei<strong>the</strong>r case, consistent underspend<strong>in</strong>g results <strong>in</strong> reduced budgetary allocations, as is evident <strong>from</strong><br />

<strong>the</strong> table below.<br />

Table 1: Performance and implications of Afghan<br />

government development budget execution<br />

Sector<br />

2009/10<br />

Development Budget<br />

Execution Rate<br />

2010/11 Development<br />

Budget Execution Rate<br />

(for first 10 months only)<br />

Reduction <strong>in</strong> Development<br />

Budget Allocation for<br />

2011/12 as proportion of<br />

unused budget for 2010/11<br />

Health 40% 43% 21%<br />

Social Protection 46% 25% 33%<br />

Education 40% 44% 48%<br />

Security 63% 27% 50%<br />

<strong>Governance</strong>, Rule of Law<br />

& Human Rights<br />

Agriculture and Rural<br />

Development<br />

Economic <strong>Governance</strong><br />

and Private Sector<br />

Development<br />

Infrastructure and<br />

Natural Resources<br />

30% 20% 46%<br />

45% 21.50% 51%<br />

21% 17% 63%<br />

30% 28% 72%<br />

Source: The 2009/10 development budget execution rate comes <strong>from</strong> <strong>the</strong> October 2010, Pre-Budget Report by<br />

<strong>the</strong> Afghan MoF. The 2010/11 execution rate and proposed change <strong>in</strong> development budget allocations are <strong>from</strong><br />

<strong>the</strong> SY 1390 Afghan government budget.<br />

48 The World Bank and DFiD, “<strong>Afghanistan</strong> Public Expenditure Review 2010,” http://zunia.org/post/afghanistan-publicexpenditure-review-2010-second-generation-of-public-expenditure-reforms/<br />

(accessed 21 May 2011).<br />

49 M<strong>in</strong>istry of F<strong>in</strong>ance, “<strong>Afghanistan</strong>’s National Budget for 1384-88,” available at www.harmonieweb.org (accessed 15 April<br />

2011). Data <strong>from</strong> 1389 <strong>from</strong> MoF’s 13 March 2011 update on budget execution. Total development budget: $2,251,000,000.<br />

<strong>Local</strong> <strong>Governance</strong> <strong>in</strong> <strong>Afghanistan</strong>: A <strong>View</strong> <strong>from</strong> <strong>the</strong> <strong>Ground</strong><br />

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