Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

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 sharedjourney.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 curativeservices has increased from almost none in 2002 to more than forty percent. We have rehabilitated 12,200km of 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 roadnetwork 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 theinternational community and the strong determination of the Afghan people. I hasten to point outthat our achievements must not distract us from the enormity of the tasks that are still ahead. Thethreat of terrorism and the menace of narcotics are still affecting Afghanistan and the broader regionand hampering our development. Our progress is still undermined by the betrayal of public trust bysome functionaries of the state and uncoordinated and inefficient aid delivery mechanisms.Strengthening national and sub-national governance and rebuilding our judiciary are also among ourmost difficult tasks.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 amconfident that the ANDS will help us in achieving the Afghanistan Compact benchmarks andMillennium Development Goals. I also consider this document as our roadmap for the long-desiredobjective of Afghanization, as we transition towards less reliance on aid and an increase in selfsustainingeconomic 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 Afghanistanii

In the name of Allah, the most Merciful, the most CompassionateWe are pleased to present the Afghanistan National Development Strategy, which reflects thecommitment of the Islamic Republic of Afghanistan to poverty reduction and private sector-ledeconomic growth for a prosperous and stable Afghanistan. The ANDS Oversight Committee (OSC)was mandated by the Government to produce a Millennium Development Goals-based nationalstrategy that is Afghan-owned and meets the requirements for a Poverty Reduction Strategy Paper.The OSC met on a regular basis to design, discuss and oversee the development of the strategy,including the identification of the needs and grievances of the people, and the prioritization ofresource allocations and actions. To embrace ‘Afghanization” and ownership, the OSC facilitatedinclusive and extensive consultations 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 absolutecommitment to the ANDS goals and vision.We look forward to working with our government colleagues, civil society representatives, tribalelders and religious scholars, the private sector, the international community and, most importantly,fellow Afghans to implement the ANDS, to help realize the Afghanistan Compact benchmarks andMillennium Development Goals.iii

In the name of Allah, the most Merciful, the most CompassionateAcknowledgmentThe Afghanistan National Development Strategy (ANDS) could not have been developed without thegenerous contribution of many individuals and organizations. The ANDS was finalized under theguidance of the Oversight Committee, appointed by HE President Hamid Karzai and chaired by H.E.Professor Ishaq Nadiri, Senior Economic Advisor to the President and Chair of the ANDS OversightCommittee. The committee included: H.E. Rangeen Dadfar Spanta, Minister of Foreign Affairs;Anwar-ul-Haq Ahady, Minister of Finance; H.E. Jalil Shams, Minister of Economy; H.E. SarwarDanish, Minister of Justice; H.E. Haneef Atmar, Minister of Education; H.E. Amin Farhang, Ministerof 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 Zia Massoud. Special thanks are also due to H.E. Hedayat Amin Arsala, Senior Minister andH.E. Waheedulah Shahrani, Deputy Minister of Finance and the Ministry of Finance team. Inaddition, we would like to thank the Supreme Court, the National Assembly, Government Ministriesand Agencies, Provincial Authorities, Afghan Embassies abroad, national Commissions, the Office ofthe President, Civil Society Organizations, and International Community.All Ministers, deputy ministers and their focal points, religious leaders, tribal elders, civil societyleaders, all Ambassadors and representatives of the international community in Afghanistan; and allAfghan citizens. National and international agencies participated actively in the ANDS consultations.Their contributions, comments and suggestions strengthened the sectoral strategies, ensuring theirpractical implementation. Thanks are also due to the Ministry of Rural Rehabilitation for theirsignificant contributions to the subnational consultations. Special thanks are further due to thePresidents Advisors, Daud Saba and Noorullah Delawari for their contributions, as well as MahmoudSaikal for his inputs. We are also indebted to the Provincial Governors and their staff for theircontributions, support and hospitality to the ANDS preparations.Special thanks go to Wahidullah Waissi, ANDS/PRS Development Process Manager, for hisinvaluable contribution and for the efforts of his team of young Afghan professionals who dedicatedthemselves tirelessly to completing the I-ANDS, Afghanistan Compact and the full ANDS inconsultation with both national and international partners. The Sector Coordinators includedRahatullah Naeem, Farzana Rashid Rahimi, Shakir Majeedi, Attaullah Asim, Mohammad IsmailRahimi, Zalmai Allawdin, Hedayatullah Ashrafi, Shukria Kazemi, Saifurahman Ahmadzai, and; theSub-National Consultations Team consisted of Mohammad Yousuf Ghaznavi, Mohammad FahimMehry, Shahenshah Sherzai, Hekmatullah Latifi, Sayed Rohani and Osman Fahim; and Prof. MalikSharaf, Naim Hamdard, Saleem Alkozai, Mir Ahmad Tayeb Waizy, Sayed Shah Aminzai, KhwagaKakar and Mohammad Kazim. Thanks to Nematullah Bizhan for his special contribution from theJCMB Secretariat. We are also indebted to the many national and international advisers whosupported this effort. In particular, we would like to thank Zlatko Hurtic, Paul O’Brien, JimRobertson, Barnett Rubin, Peter Middlebrook, Richard Ponzio, Anita Nirody, Shakti Sinha, AshokNigam, Christopher Alexander and Ameerah Haq.Finally, I would like to thank all who contributed towards this endeavor in preparation of the firstAfghanistan National Development Strategy, a milestone in our country’s history and a nationalcommitment towards economic 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.iv

Table of ContentsI. Introduction....................................................................................................................................................1II. Our Achievements since December 2001......................................................................................................1III. Current Conditions and Challenges ...............................................................................................................2IV. Preparing the Afghanistan National Development Strategy (ANDS)............................................................3V. Goals of the ANDS........................................................................................................................................4Pillar 1: Security................................................................................................................................................5Security: Achieve nationwide stabilization, strengthen law enforcement, and improve personal security forevery Afghan..................................................................................................................................................4Pillar 2: Governance, Rule of Law, and Human Rights .....................................................................................6ANDS Goal: Strengthen democratic practice and institutions, human rights, the rule of law, delivery ofpublic services, and government accountability ............................................................................................6Pillar 3: Economic and Social Development......................................................................................................9Reduce poverty, ensure sustainable development through a private sector-led market economy, improvehuman development indicators, and make significant progress toward achieving the MDGs.......................9Cross Cutting Issues.........................................................................................................................................15Counter-narcotics.........................................................................................................................................15Anti-corruption ............................................................................................................................................16Capacity Development.................................................................................................................................16Gender Equity..............................................................................................................................................17Environment ................................................................................................................................................17Regional Cooperation ..................................................................................................................................17VI. Macroeconomic Framework ........................................................................................................................18VII. Partnerships for financing the ANDS ..........................................................................................................19Costing and prioritization of the ANDS sectors ..........................................................................................20Expected assistance for ANDS implementation ..........................................................................................20VIII. Aid effectiveness..........................................................................................................................................20IX. Implementation Framework.........................................................................................................................21X. Monitoring, Evaluation and Reporting ........................................................................................................22XI. Conclusion ...................................................................................................................................................22v

Executive SummaryI. INTRODUCTIONAfghanistan emerged in late 2001 as a State and People that were devastated like few other in modern history.The extent of destruction of the country’s physical, institutional, human and social capital left Afghanistan andits international partners with a monumental task: to build a pluralist Islamic State governed by the rule of law,in which all Afghans have the opportunity to live in peace with dignity, to reach their economic potential, toaccess basic public services and to participate fully as equal citizens.Six and one-half years later, despite considerable progress and sacrifice, we have yet to achieve this vision.Along with our international partners, we underestimated the full extent and time required to overcome theobstacles to peace and prosperity. Insecurity, poverty, corruption and the expanding narcotics industry signifythat while the challenges facing Afghanistan have changed in nature, they have not necessarily changed inmagnitude. The Afghan people will remain handicapped in discovering their full human potential unless a betterbalance is struck between development, security and political strategies that are sensitive to both Afghan cultureand resource constraints. When empowered with appropriate tools, skills, political support, and respect forhuman rights, the Afghan people—facilitated by their Government and international partners—remain the keyto comprehensive recovery and a durable peace.To meet the country’s many challenges and realize the aspirations of the Afghan people, the five-yearAfghanistan National Development Strategy has been prepared after two years of analysis and priority-setting,drawing on extensive national and sub-national consultations. As an Afghan-owned blueprint for progress in allspheres of national life, the ANDS is a Millennium Development Goals-based plan that will serve as thecountry’s Poverty Reduction Strategy Paper. Fundamental to its successful implementation is the need to investin critical national capacities, such as education, energy, irrigation, and agriculture, as well as to promotereconciliation, justice and alternative livelihoods. Besides providing a detailed, budgeted strategy for advancingthe Government of Afghanistan and international community’s Afghanistan Compact goals, the ANDS is aroadmap for the long-desired objective of ‘Afghanization’ and the transition towards stability, self-sustaininggrowth, and human development. Translating the Compact’s over-arching goals of peace, inclusive andcompetent governance, and sustainable socio-economic development into a meaningful impact in the lives ofordinary Afghans requires overcoming the fear of failure; after decades of violence and untold suffering—whichhas, at times, threatened the outside world—there can be no alternative but to succeed.II. OUR ACHIEVEMENTS SINCE DECEMBER 2001Beginning in 1380 (December 5, 2001), the Bonn Agreement guided Afghanistan’s transformation towards anew era of democratic self-governance. Shortly after the Bonn meeting, an Interim Authority convened anEmergency Loya Jirga (ELJ), the first genuinely representative Afghan national forum in decades, and itestablished a Transitional Administration. In 1383 (2004) Afghanistan adopted its first Constitution in threedecades, laying the political and development foundations for the country. Three rounds of free and fairelections followed. Afghanistan now enjoys a democratically elected President, National Assembly andProvincial Councils. Women constitute 27 percent of the National Assembly, and 76 percent of eligible votersparticipated in the presidential elections.Besides political progress, other significant achievements since 2001 include: enrolling 6 million children inprimary and secondary education, 35 percent of whom are young girls; the basic package of health services nowcovers 85 percent of the country with 80 percent of the population immunized; the return of more than fivemillion Afghan refugees; the rehabilitation of about 12,000 km of roads, including the ring road; thedisarmament, demobilization and reintegration of over 63,000 former combatants; the national army and policeforces are close to full strength; the core state economic and social welfare institutions have been fully reestablishedand are providing valuable basic services; a single unified currency and national accounts have been1

Afghanistan National Development Strategy (ANDS)established; macro-economic stability, fiscal discipline, prudent monetary policies, low levels of inflation, andpublic finance management systems have been established; commercial banking and telecommunicationnetworks, led by the private sector, are fully operational; and Afghanistan is far less likely to serve as a safehaven for terrorist activities.After the successful completion of the Bonn Agreement, Afghanistan and the international community adoptedthe Afghanistan Compact, agreed to at the London Conference of 1384 (2006). The Bonn Agreement reestablishedState institutions; the Afghanistan Compact aims to make them functional. To do so, the Compactsets out ambitious goals for comprehensive statebuilding with benchmarks for security, governance, anddevelopment, including the cross-cutting goals of counter-narcotics and regional cooperation. To implement itsobligations under the Afghanistan Compact, the Government of Afghanistan presented its Interim-AfghanistanNational Development Strategy, now developed into the full ANDS.III. CURRENT CONDITIONS AND CHALLENGESNo other nation has faced, simultaneously, the range and scale of far-reaching challenges with whichAfghanistan must now contend. Today, the country remains devastated with a large part of the human, physicaland institutional infrastructure destroyed or severely damaged. Afghanistan faces widespread poverty; limitedfiscal resources which impede service delivery; insecurity arising from the activities of extremists, terrorists andcriminals; weak governance and corruption; a poor environment for private sector investment; the corrosiveeffects of a large and growing narcotics industry; and major human capacity limitations throughout both thepublic and private sectors. Meeting the challenges of recovery and rebuilding a country that can provide thebasis for sustained economic development will take many years and require consistent international support.Social and economic development will not be achieved unless the insecurity that prevails in some parts of thecountry is reduced markedly. Despite the efforts by Government and the international community to endterrorists and extremist activity, security has steadily deteriorated since late 1384 (2006). The stabilization ofAfghanistan, especially in the south and south-east, remains a necessary but insufficient pre-condition forANDS implementation. The success and sustainability of the ANDS depends on the ability of Afghanistan toassert the rule of law across the country. However, this requires the establishment of central and sub-nationalgovernance structures capable of delivering basic services to all citizens.The difficulties in maintaining security contribute significantly to two closely related issues: increasingcorruption in the public sector and the rapid growth of the narcotics industry. There is a consensus thatcorruption is widespread and growing public corruption represents a major disincentive for private investment,substantially increasing the costs and risks of doing business. The lack of security in some parts of the countryhas created conditions in which poppy cultivation has flourished, feeding a growing narcotics industry. Thenarcotics economy seriously undermines the potential for growth in the licit economy and generates largeamounts of illicit money to fund terrorist activities and encourage corruption in the public sector. The countrymust also address serious shortcomings in the delivery of basic social services, particularly education andhealthcare. Literacy rates remain low, particularly in rural areas and among women. The health standards of theAfghan people are also among the lowest in the world. Spending on healthcare per person is only about onequarterof the amount spent elsewhere in the region.The Afghan Government is firmly committed to build a strong, private sector-led market economy. This willprovide the foundation for sustainable economic growth and for generating employment. However, severalsevere limitations in the economic environment must be addressed if these efforts are to succeed:i. The country’s ‘hard infrastructure’, including roads, reliable supplies of water and power, and the entirevalue chain that links production to domestic and foreign markets, is inadequate to support high levels ofeconomic growth and the poverty reduction benefits that such growth would bring.ii.The corresponding ‘soft infrastructure’, which includes the necessary human and institutional capacitynecessary for an economy to function, is largely lacking. Considerable emphasis is being given to2

Executive Summarydeveloping capacity in both the public and private sectors and to institutional development, but meetingthe growth targets of the ANDS will take time.iii.iv.Economic governance is weak. The Government is pursuing comprehensive economic reform, but theestablishment of the institutions and the regulatory framework needed for effective implementation andenforcement will take many years to develop.Afghanistan’s commercial connections to regional and global economies were severely disrupted duringthe period of political and economic isolation and must be re-established. The development of acompetitive private sector will be necessary if Afghanistan is once more to become well integrated withinthe both the regional and global economies.v. Key markets for land and finance are largely undeveloped, limiting the ability of private investors toestablish and operate businesses. Afghanistan has substantial commercial and natural resources thatcould be more productively employed and, in doing so, would greatly expand opportunities foremployment and lead to substantially increased government revenues.The current fragmented and uncoordinated approach to Afghanistan’s reconstruction and development must turninto an integrated and prioritized approach, as outlined in the ANDS. Given that most aid continues to flowoutside the Government’s core budget, improving coordination and aid effectiveness are essential for successfulANDS implementation.IV. PREPARING THE AFGHANISTAN NATIONAL DEVELOPMENTSTRATEGYTo comprehensively address the security, governance, and development needs of Afghanistan, the Governmenthas prepared the five-year Afghanistan National Development Strategy. The ANDS reflects the Government’svision, principles and goals for Afghanistan, building on and in support of commitments to reach theAfghanistan Compact benchmarks and the Afghanistan Millennium Development Goals. The AfghanistanCompact represents an international commitment to improve security, governance, and development conditionsand opportunities for all Afghans.The ANDS is the product of extensive national, provincial and local level consultations. National consultationsinvolved all major governmental and civil society institutions, including non-governmental organizations(NGOs), cultural associations, religious communities, tribal elders, the private sector, development experts andthe international community. Sub-national consultations involved discussions with provincial governors,provincial representative bodies, village councils, parliamentarians from each province, local civil societyleaders, representatives of Provincial Reconstruction Teams (PRTs) and prominent individuals in all 34provinces. More than 17,000 people, nearly 50 percent of who were women, directly participated in theconsultations.The sub-national consultations represented the first significant dialogue between the central Government and theprovinces, designed to strengthen center-periphery relations. The outcome of the consultations included theformulation of around 18,500 village based development plans, leading to 290 district development plans, whichwere finally consolidated into 34 Provincial Development Plans (PDPs). These PDPs identified needs and keydevelopment priorities for each province.In preparing the ANDS, the Government has adopted evidence based policy making—through detailed povertydiagnostic work—to better understand the causes and effects of poverty in all its forms. Based on this analysis,the ANDS serves as a pro-poor growth strategy. By pro-poor, the Government means making investments thathave a preferential impact on bringing the poor out of extreme poverty through the adoption of growth enablingpolicies and targeted social protection investments. Afghanistan aims to achieve pro-poor growth, where theincomes and livelihoods of the poorest rise faster than the average growth of the economy. Key findings of theGovernment’s 1386 (2007) National Risk and Vulnerability Assessment (NRVA) indicate that the poverty ratestands at 42 percent (or 12 million people), with per capita incomes of about US$14 per month. Moreover, food3

Afghanistan National Development Strategy (ANDS) StructureSECURITYGOVERNANCESOCIAL AND ECONOMIC DEVELOPMENTPillar 1 Pillar 2 Pillar 3 Pillar 4 Pillar 5 Pillar 6 Pillar 7 Pillar 81 - Security2 - GoodGovernance3 - Infrastructure &Natural Resources4 - Education &Culture5 - Health &Nutrition6 - Agriculture &Rural Development7 - SocialProtection8 - EconomicGovernance & PrivateSector DevelopmentSectorsSecurity Justice Energy Education Health and NutritionAgriculture andRural DevelopmentSocial ProtectionPrivate SectorDevelopment andTradeGovernance, PublicAdministrative Reform& Human RightsTransportationCulture, Media andYouthRefugees, Returneesand InternalDisplaced PersonsReligeous AffairsWater ResourceManagementInformation andCommunicationsTechnologyUrban DevelopmentMiningCross-Cutting IssuesCapacity BuildingGender EquityCounter NarcoticsRegional CooperationAnti-CorruptionEnvironment5

2. The Afghan National Police (ANP): The long-term objective for the ANP is to build a professionalpolice force that operates within internationally accepted legal standards, with respect for human rights,and is managed by a professional, adequately trained and paid staff able to effectively plan, manage,employ and sustain a national, merit-based police force. It should protect the local population from aterrorist and illegally armed anti-government threat and enforce the rule of law on a country-widebasis. It should be able to transition to traditional policing as conditions on the ground change. By Jaddi1392 (end-2013) the Ministry of Interior will achieve a target strength of 82,180 professionalpolicemen (including Afghan Border Police). This force will be capable of maintaining domestic orderand enforcing the law, and serve under the direction and control of the Ministry of Interior, whileremaining responsive to the needs of local communities.3. Disarmament of Illegal Armed Group (DIAG): All illegal armed groups will be disbanded by 20March 2011 in all provinces.4. Removing Unexploded Ordnance: By Jaddi 1389 (end-2010), in line with Afghanistan’s MDGs, theland area contaminated by mines and unexploded ordnance will be reduced by 70 percent. Ninetypercent of all known mine/Explosive Remnants of War (ERW) contaminated areas will be cleared by1391 (2012). All emplaced anti-personnel mines will be cleared by 1391 (2013) in accord with theprovisions of the Ottawa Convention.5. Counter-Narcotics: By 2013, the area under poppy cultivation will be reduced by half compared to2007 levels.PrioritiesAfghanistan’s security sector includes a number of institutions responsible for defending the country,maintaining security and enforcing laws. The first priority for this security pillar is to increase the capability ofthe security institutions.The second priority is to ensure that our efforts in the security sector are comprehensive, complimentary andintegrated. The Government is fully committed to successfully implementing an integrated and comprehensivenational policy and strategy; a robust security sector reform program; strengthening synergies between civil andmilitary operations; increasing the role of security forces in counter-narcotics activities; and strengthening andreforming the civilian components of security entities.The third priority for this sector is the progressive transfer of responsibility for security from their internationalpartners to Afghan forces and institutions. As NATO/ISAF forces step back from direct engagement in securityoperations, the ANA and ANP will take the lead on operations, and eventually provide the security needs ofAfghanistan with partners assuming only support and oversight roles. Meanwhile, the ANA will depend uponISAF for enablers and force multipliers. An increasingly capable ANA will enable the gradual reduction ininternational forces with a substantial reduction in the international community’s sacrifices. The pace forstanding up the Afghan Security Forces is linked directly to the level and speed by which the internationalcommunity chooses to aid Afghanistan in overcoming current gaps in capability—but Afghanistan is ready totake the first steps.Pillar 2: Good Governance, Rule of Law, and Human Rights:ANDS Goal: Strengthen democratic practice and institutions, human rights, the rule of law,delivery of public services, and government accountabilityImproved democratic governance, rule of law, justice and human rights remain vital to supporting our nationalvision, including poverty reduction and sustained high rates of economic growth. The ANDS strategic objectivefor this sector is the establishment of a stable Islamic constitutional democracy where the three branches of theState function effectively and inclusively, are held accountable, and uphold the rule of law and basic humanrights. The Government aims to provide good governance and measurable improvements in the delivery of6

Executive Summaryservices. To achieve these goals it will: (i) establish, reform and strengthen government institutions at the centraland sub-national levels with an emphasis on transparency and competent, results-based management; and (ii)reform legislative processes, including the holding of free and fair elections. The Government will act as apolicy maker, regulator, enabler and not a competitor, of the private sector.ChallengesWhile much has been achieved in strengthening the formal and informal structures of governance and the rule oflaw, as well as extending human rights, considerable challenges still stand in the way of achieving the goalsunder this pillar. These include: (i) the existence of multiple, parallel structures of state and non-stategovernance entities; (ii) confusion over center/sub-national governance entities; (iii) weak public sectorinstitutions and underdeveloped governance and administration capabilities; (iv) high levels of corruption; (v)fiscal uncertainty; (vi) weak legislative development and enforcement; (vii) weak parliamentary oversight; (viii)weak community and civil society institutions; (ix) ineffective and poorly defined justice system; (x) genderinequality; and (xi) underdeveloped human rights enforcement capacities. If significant improvements ingovernance are not rapidly achieved it will be difficult to make substantial progress with respect to security,human rights and economic development.PrioritiesTo remedy these weaknesses, the Government will adopt the following measures:Empower the National Assembly: The capacity of the National Assembly will be enhanced so as toimprove legislative oversight, transparency and accountability functions.Public Administration Reform (PAR): The objective of the PAR program is to encourage publicinstitutions to perform effectively with a focus on results. The capacity of the civil service will bestrengthened, for example through pay and grading restructuring, ensuring and expanding merit basedappointments, rationalizing and restructuring government institutions to reflect core functions andresponsibilities, and increasing training and capacity development.Anti-corruption measures: The Government will focus on reducing administrative corruption at alllevels of government and the judiciary, by increasing corruption monitoring, introducing additionalprograms to further limit potential corruption risks, and strengthening public complaints mechanisms.Enhanced availability of information: The Government will increase the amount of informationavailable to the public. The public will have greater access and rights to publicly held information.Enhanced participation of women in government: The Government will fulfill its obligations inregard to the implementation of the National Action Plan for Women’s Rights in Afghanistan.Effective system of disaster preparedness and response: The Government is committed toincreasing its capacity to effectively implement the National Disaster Management Plan.Independent Election Commission (IEC): The capacities of the IEC will be strengthened so that apermanent voter’s registry, electorates and electoral rolls will be established and constitutionallymandated elections at the national and sub-national levels successfully delivered.National identity document: The Government will pursue the development of a single nationalidentity document so as to enhance public accountability and transparency and reduce corruption.Geodesic and cartographic information: The Government will review village and Gozar boundariesand will complete a national mapping exercise.Census and statistical baseline: The Government will undertake the first national census in 2008 andwill establish national and sub-national economic and poverty baselines and will publish results andanalysis of data.7

Afghanistan National Development Strategy (ANDS)Land administration: The Government will establish a modern land registry and management systemand a fair disputes settlement process.Local governance: The Government will develop sub-national governance legislation; increase thepeople’s participation in sub-national governance structures; empower Provincial Councils; establishlegislation to define the roles of district councils, municipal councils and village councils; promoteregular elections for Municipal, District and Village Councils, including mayoral elections; reform subnationalgovernance structures; build the capacity of the sub-national civil service; institutionalizeprovincial planning and budgeting; and enhance municipal planning and budgeting capacities. Thesub-national activities will be facilitated by the Independent Directorate of Local Governance (IDLG).Communication with and within the government: The Government will enhance the flow ofinformation between all government entities related to national policy, strategy and national budgetprocedures.Religious affairs: The Government acknowledges the significant role of Islamic religion in shapingsociety and in creating systems of social value.Human rights: The Government will strengthen its capacity to protect the human rights of all Afghansthrough the development, ratification and enforcement of legislation that is consistent withAfghanistan’s international obligations, such as: Convention against Torture and Other Cruel, Inhumanor Degrading Treatment or Punishment (CAT), Convention on the Elimination of All Forms ofDiscrimination against Women (CEDAW), and the Convention on the Rights of the Child (CRC). TheGovernment remains committed to the Action Plan on Peace, Justice and Reconciliation and clarify theinstitutional responsibilities of all Government entities responsible for improving human rights.The main priorities for the Justice Sector are:Improved institutional capacity to deliver sustainable justice services: The Government willreform and restructure judicial institutions; strengthen legal education; develop a judicial recordssystem; enhance administrative capacity; reduce corruption; promulgate codes of ethics; develop apublic complaints system; expand judicial services through infrastructure development and procurenecessary transportation and equipment.Improved coordination and integration within the justice system and other state institutions: TheGovernment will increase coordination and integration with other government institutions and civilsociety; improve legislation through enhancing capacities of the Taqnin and the National Assembly;establish a National Legal Training Centre; increase opportunities for external stakeholders and civilsociety to contribute to legal policy development, analysis and legislative drafting; and improve thedelivery of justice services in the provinces by strengthening the Provincial Justice CoordinationMechanism (PJCM). The PJCM will assist the Government to systematically expand rule of lawbeyond Kabul through coordinated and targeted donor programs for technical assistance, training,capacity building, infrastructure and provision of equipment and transportation.Improved quality of justice: The justice sector’s strategic objective is to create an Islamic society inwhich an impartial and independent judiciary protects the safety and security, religion, property, humanrights and Islamic values of its citizens, while respecting liberty, equality before the law and access tojustice for all. The Government will: (i) establish an investigation system to reduce delays in thecriminal justice processes caused, in part, by the lack of representation and poor case management; (ii)develop sentencing policies; (iii) implement the Juvenile Justice Policy; (iv) develop specialized policyunits to address cross-cutting and emerging criminal justice issues; (v) enhance and improve civil courtcase administration and jurisdiction structures in major litigation categories; (vi) improve links betweenthe formal and informal justice sectors; and (vii) provide oversight to the informal justice sector.8

Executive SummaryTargets1. The Public Administration Reform program will be completed by 2013;2. A substantial reduction in corruption will be achieved by 2013;3. By 2009, the new criminal procedure code will be enacted and published, and for its implementationtraining with written commentary will be provided to all legal professionals, as well as communitylegal education for citizens;4. By 2010, all laws, regulations, and other legal instruments will be compiled, indexed, uploaded andmaintained on government websites, will be published and distributed to state institutions at all levels,and will be made available to the people nationwide5. By 2013, all government agencies and ministries will have improved technical capacity to draft andpropose nondiscriminatory legislative and regulatory instruments.Pillar 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 toward achieving theMDGs.The Government is committed to policies conducive to a private sector-led market economy that delivers high,sustainable economic growth. Within the ANDS, the Government’s key poverty reduction initiative will be tosupport the private sector as the most efficient vehicle for increasing employment and incomes. At the sametime, the Government recognizes the need to target resources at the poorest and most vulnerable groups, to beachieved through fiscally sustainable and transparent income transfer policies. Since 2002, the Government hasalso placed a high priority on attempting to provide health and education services to all Afghans. These policieswill continue to be strengthened, in order to improve human development indicators significantly acrossAfghanistan.ChallengesAlthough the economy is experiencing high growth rates, Afghanistan faces a number of constraints that mustbe addressed to ensure long-term economic expansion and poverty reduction. Among the most severe arecontinuing instability, the poor state of infrastructure, low levels of human capital development and institutionalcapacity, and the lack of a proper enabling economic environment. At the same time, growth alone is notenough to reduce poverty and improve human development indicators. A major challenge in this pillar is tocreate an environment where the economy performs to its full potential, while at the same time ensuring that themost vulnerable members of society are not left behind.Targets1. The proportion of people living on less than $1 a day will decrease by 3 percent per year;2. The proportion of people who suffer from hunger will decrease by 5 percent per year;3. The net enrolment in primary school for girls and boys will be at least 60 percent and 75 percentrespectively by 2010;4. Female teachers will be increased by 50 percent by 2010;5. Seventy percent of Afghanistan’s teachers will have passed a competency test by 2010;6. The under-5 mortality rate will be reduced by 50 percent between 2003 and 2013;7. The maternal mortality ratio will be reduced by 50 percent between 2002 and 2013;8. The Basic Package of Health Services will be extended to cover at least 90 percent of the population by2010;9. The proportion of people without sustainable access to safe drinking water and sanitation will behalved by 2020: by 2013, 50 percent of households in Kabul and 30 percent of households in otherurban areas will have access to piped water; 90 percent of villages will have access to drinking waterand 50 percent of villages will have access to sanitation.9

Afghanistan National Development Strategy (ANDS)PrioritiesPolicies for enabling a private sector-led market economyThree key Government priorities are: (i) to develop the legal framework for the private sector, including thepassage and enactment of key commercial laws (Corporations, Partnership, Commercial Arbitration,Commercial Mediation, Contracts, Agency, Standards, Copyrights, Trademarks, and Patents); (ii) to create aregulatory framework to support their implementation; and (iii) to improve enforcement of the legal andregulatory frameworks. The Government will also ensure that the laws appropriately reflect the Afghan societalcontext and are implemented fairly and consistently to provide greater predictability to investors.The Government will strengthen economic governance within the framework of the Policy for Private SectorGrowth and Development 1 , including: (i) clarifying institutional responsibilities and mechanisms for reformingthe business environment; (ii) strengthening the Ministry of Commerce and Industry, the AfghanistanInvestment Support Agency, and the legal system to effectively regulate and resolve disputes; and (iii)improving access to land, including measures to clarify property rights, to simplify procedures for the transfer oftitles, and to ensure the availability of longer-term leases. Major procedures for business operations(registration, licensing, permissions, border operations, custom clearance and payments) will continue to bestreamlined to reduce transaction costs.The Government attaches a high priority to the privatization and corporatization of key state-owned enterprises.This will include the corporatization and increasing the efficiency of the national electricity authority DaAfghanistan Brishna Mowasesa (DABM). The Ministry of Finance has prepared a list of all state-ownedenterprises that will be privatized or liquidated over the course of next three years. Fair access to markets fornew private sector competitors will be encouraged by all relevant government bodies.The Government is committed to pro-trade policies maintaining low trade barriers for imports and exports thattake into account domestic revenues and the need to support increased domestic production by the privatesector. It is important to strengthen certain competitive industries where Afghanistan possesses a comparativeadvantage. The Ministry of Finance will be responsible for setting the tariff regime, in consultation with relevantstakeholders. The Government’s top priority will be to improve trade and commercial relations with regionalcountries, taking advantage of Afghanistan’s strategic location in the region by adopting policies and proceduresthat facilitate and promote transit and trade. In the short-term, the Government will focus on ensuring thatcustom regulations are consistently applied and that the average time required for the import and export ofgoods continues to decline and eventually reaches the regional average. The Government remains committed togaining accession to the World Trade Organization.The financial system, including banking and microfinance, has been growing rapidly; however, financialintermediation remains low. Only a small segment of the population has access to formal financial services.Building a strong and responsive financial sector will remove one of the key bottlenecks to efforts within theprivate sector to increase productive capacity and enhance domestic production.The Government’s top priorities for the financial sector will be to strengthen the legal framework by passing andimplementing four pending financial sector laws (Secured Transactions, Mortgages, Leasing, and NegotiableInstruments) and to strengthen the enforcement of prudent regulations in the banking sector. The next prioritywill be to increase the offering of financial services in rural areas and to small and medium enterprises (SMEs).The Government will implement the restructuring and eventual privatization strategies of Bank Millie andPashtany Bank. Over the medium-term, the Government will seek to establish both a credit information bureauand a financial dispute resolution tribunal; it will further seek to implement an adequate insurance law toencourage the development of these key financial sector components.1 Presented by the Government at the Enabling Environment Conference, June 2007.10

Afghanistan National Development Strategy (ANDS)Most farmers are engaged in subsistence or near-subsistence agriculture, and many farming families remainfood insecure and therefore face risky livelihoods often combined with chronic debt. As a result, the country’svulnerability to natural disasters and food shortages has increased. The Agriculture and Rural DevelopmentStrategy sets out a series of programs designed to achieve improved quality of life for rural citizens – one inwhich food security is assured, basic services are provided, incomes increase with households actively engagedin legal activities, employment opportunities expand and where people live in a safe and secure environment.Activities are usefully grouped into two main components: a Comprehensive Agriculture and RuralDevelopment and the Agricultural and Rural Development Zone (ARDZ) initiatives.The fifteen programs that will provide the vehicles for reaching the objectives of the CARD strategy are asfollows: National Solidarity Program, National Food Security Program, National Area Based DevelopmentProgram, CARD horticulture program, CARD livestock program, National Rural Access Program , RuralWater Supply and Sanitation Program, CARD Irrigation Program, CARD National Resource program, NationalSurveillance System, Rural Electrification program, rural Enterprise program, research and Extension System,the Card Emergency Response System, and the CARD Capacity Building program.TransportationThe ANDS strategic goal for the transport sector strategy is to achieve a safe, integrated transportation networkthat ensures connectivity and that enables low-cost and reliable movement of people and goods withinAfghanistan as well as to and from foreign destinations. With the upcoming completion of the RegionalHighway System, high priority will be given to improving 5,334km of secondary (national and provincial) roadsand improving or building 6,290km of rural access roads as a key to raising rural livelihoods and reducingpoverty and vulnerability in rural areas. Municipal transportation management will be strengthened to improveurban road quality, road network maintenance, road network planning, and transportation facilities and services.The Government will implement a comprehensive Operations and Maintenance (O&M) system, ensuringsustainability of O&M costs.In addition, other major transportation priority initiatives to be undertaken include: (i) the New Kabul Airport;(ii) the Rehabilitation of Kandahar, Mazar-i-Sharif and Herat Airports; (iii) the building of new regionalairports; (iv) the development of the railroad project; and (v) the entering into of new Transit Agreements withneighboring countries: these agreements will help to reduce the transit time for moving goods across borders.By end-2010, Afghanistan and its neighbors will also achieve lower transit times by means of more cooperativeborder management. Programs are now underway to ensure that Afghanistan’s international airport, its otherprincipal airports and the civil aviation authorities conform to the requirements of the ICAO and IATA,including establishing a new Civil Aviation Authority to promote air transport in a competitive environment.MiningThe extraction of natural resources is expected to make a major contribution to GDP and export growth, as wellas to the government revenues. The ANDS strategic objectives for the mining sector are (i) to attract increasedprivate investment; (ii) to promote and regulate sustainable development of mineral resources; and (iii) to ensurethat the nation’s geological resources are properly surveyed and documented. This will be done through theestablishment of a legal and regulatory environment that will encourage and assist private sector development ofmining resources. A notable early success in the mining sector is the recently signed agreement for the largestforeign direct investment in the country to date—the leasing of the Aynak copper mine, for an estimated $2.8billion investment.As key priorities in the mining sector, the Government will: (i) work to maximize the fiscal returns andeconomic linkages of natural resource extraction; (ii) establish a transparent and capable management systemfor the sector; (iii) provide a supportive environment for investment in the sector by finalizing and implementingvarious laws and regulations; and (iv) determine the extent of mineral resources in the country, with theobjective of developing a long-term sustainable and environmentally-sound strategy. Success in attractinginvestment in mining operations will give investors confidence in the country’s legal and regulatory system,opening the door to investments in other sectors.12

Executive SummaryWater Resources ManagementThe Government will implement the integrated Water Resources Management and river basin managementapproaches to planning and developing water resources in the short and medium-term. The ANDS strategic goalis to manage and develop the water resources in the country, so as to reduce poverty, increase sustainableeconomic and social development, and improve the quality of life for all Afghans and ensure an adequate supplyof water for future generations.Agriculture accounts for 95 percent of water consumption. In the 1970s, some 3.6 million hectares werecultivated using various irrigation methods. At present only about 1.3 million hectares of land are beingirrigated. Of this, only 10 percent is being irrigated using properly engineered systems with the remainderdependent on traditional irrigation methods, some of these based on run-offs from or use of aquifers that arebeing degraded by deep water wells and insufficient investment in recharge basins. Irrigated land has threetimes the productivity of rain-fed land. Out of 8.3 million hectares of arable land in Afghanistan, 5.8 millionhectares is potentially irrigable. Irrigation water management is one of the highest priorities of the Government.Significant investment has gone into rehabilitating damaged or degraded irrigation systems, but little has beendone in terms of making new investments needed to increase efficiency in water use and new water supply. Oneof the highest priorities of the Government is developing irrigations dams, such as the Kokcha, Gambiri, andKama dams.The rehabilitation of traditional and existing irrigation structures will remain an important priority and willdeliver much-needed quick returns in terms of increasing agricultural production and reducing poverty ratesamong rural households. To address the large gap in access to drinking water and sanitation services, theGovernment will give high priority to the provision of rural water supply and sanitation projects. In the mediumto longer-term, the Government will complete hydrological surveys and build new dams with the aim ofreclaiming agricultural land.Information and Communications Technology (ICT)The ANDS strategic goal for this sector is to provide equitable access for 80 percent of the country and for mostpopulated areas to be covered by 1389 (2010). The priorities of the ICT sector will be to finalize the Fiber OpticCable and Copper Cable Network projects, expanding access to high-speed data services throughout thecountry, and extending mobile phone coverage. The implementation of national ICT legislation, to create anenabling environment for the development of the sector, will be necessary to stimulate further private-sectorinvestment. The ICT Council, through the Ministry of Communication and Information Technology (MCIT),will work to expand government capacity, improve governance, and reduce corruption, by pursuing movestoward e-government. The private-sector is expected to make additional large investments in thetelecommunication sector.Urban DevelopmentEffective management of the rapid urbanization process will make a significant contribution to the recovery ofthe country. Through the ANDS PDP process, eight major City Development Plans were developed. The ANDSstrategic objective is to ensure increased access to improved services and affordable shelter, while promotingsustainable economic growth through the implementation of the National Urban Program, which includes theNational Land Policy and the City Development Plans. Outcomes will include: (i) strengthened municipalcapacity to manage urban development and deliver services; (ii) improved institutional coordination andmonitoring of key urban indicators; (iii) increased access to basic services for urban households; (iv) phasedregularization of tenure for 50 percent of households living in informal settlements; (v) upgrading publicservices and facilities, including new urban area development including the development of a new city on theDeh-Sabz north of the existing city of Kabul; (vi) increased availability of affordable shelter, including a 50percent increase in numbers of housing units and 30 percent increase in area of serviced land on the market,coupled with access to affordable finance; and (vii) improved urban environment with green areas and openspaces.13

Afghanistan National Development Strategy (ANDS)A major challenge facing rapid urban development will be to adopt systems where urban taxes and cost recoveryfunds the provision of efficient government services. This will expand the scope for increased private sectorprovision of urban services, with funding still partially coming from the public sector to cover costs for thoseliving in poverty. To alleviate urban sprawl, zoning and new city planning management capacities will bestrengthened.EducationThe Government aims at having a well-educated nation. Since 2002, the Government has invested heavily inthe education sector and has attained progress toward the ultimate goals of educating all of Afghanistan’schildren, reducing illiteracy, and creating a skilled labor force. The Government is committed to meeting theMillennium Development Goals, and the primary education objective for the ANDS is to keep Afghanistan ontrack for their timely attainment.The Government aims to increase literacy, improve quality of education, expand the capacity of the educationsystem to absorb more students, increase equal access to education for all, improve opportunities for and qualityof higher education, and expand the capacity and improve the quality of vocational education and skillsbuilding.The provision of basic education and reducing illiteracy rates will remain the top priority for the Governmentthroughout the life of the ANDS. The Government is committed to implement the priority programs endorsedin the National Education Strategic Plan, including: (i) general education (targeting a 60 percent and 75 percentenrolment rate for girls and boys, respectively); (ii) improved teacher education and working conditions; (iii)education infrastructure rehabilitation and development; (iv) curriculum development and learning materials; (v)Islamic education; (vi) technical and vocational education and training; (vii) literacy and non-formal education;and (viii) reform and development of education administration.The next priority is to improve the quality and management of education through devolving responsibility forthe delivery of education services to local authorities while strengthening the monitoring and strategic planningcapacity of the Ministry of Education, Ministry of Higher Education, and Ministry of Labor and Social Services.The key priority in the vocational training subsector is to align vocational training and skills developmentprograms with the needs of the economy through improved coordination and implementation capacity at theNational Vocational Education and Training Board (NVETB).Culture and MediaThe culture and media sector vision is (i) to foster the continued expansion of a free and lively media that isindependent and accessible to women and men throughout the country; (ii) to preserve and protect the culturalheritage of Afghanistan; and (iii) to foster cultural creativity.Major goals for this sector include the documentation of unregistered historical monuments and archaeologicalsites and the restoration and protection of vulnerable locations; the adoption of new media legislation to supportindependent and open media; the expansion of media throughout the country; and the continuation of efforts torecover stolen artifacts through international and bilateral relations.Health and NutritionBy all measures, the people of Afghanistan suffer from poor health. Afghanistan’s health indicators are near thebottom of international indices, and fare far worse, in terms of their health, than any other country in the region.Life expectancy is very low, infant, under-five and maternal mortality is very high, and there is an extremelyhigh prevalence of chronic malnutrition and widespread occurrence of micronutrient deficiency diseases.The overarching priority of the health sector is to address priority health issues through a universal coverage of aBasic Package of Health Services (BPHS). The Government will continue to implement the BPHS and will14

Executive Summarystrengthen the referral network that links patients into the hospitals that provide the Essential Package ofHospital Services (EPHS). Specifically, the Government will focus on strengthening reproductive healthservices, particularly in the areas of safe motherhood and family planning; improving the nutritional status ofmothers and children; and controlling communicable diseases, recognizing their adverse impact on the health ofall Afghans. To support these specific health interventions, the Government has developed a comprehensiveprogram of institutional development for health services, designed to organize, manage and monitor the nationalhealth system to reduce inequity and improve efficiency, effectiveness, quality of care and accountability at alllevels.The ANDS strategic objectives include achieving the following Afghanistan Compact and the MillenniumDevelopment Goals: by end-1389 (2010), in line with Afghanistan's MDGs, (i) the Basic Package of HealthServices (BPHS) will be extended to cover at least 90 percent of the population; (ii) maternal mortality will bereduced by 15 percent; and (iii) full immunization coverage for infants under-5 for vaccine-preventable diseaseswill be achieved and their mortality rates reduced by 20 percent; (iv) to reduce by 50 percent, between 1382(2003) and 1394 (2015), the under-five mortality rate, and further reduce it to one third of the 1382 (2003) levelby 1400 (2020); (v) to reduce the maternal mortality rate by 50 percent, between 1381 (2002) and 1394 (2015),and further reduce by an additional 25 percent of the 1381 (2002) level by 1400 (2020); (vi) and reverse thespread of HIV/AIDS by 1400 (2020); and (vii) to halt and begin to reverse the incidence of malaria and othermajor diseases by 1400 (2020).Social ProtectionThe household survey data reflects Afghanistan’s high rate of poverty and vulnerability to consumption shocks,particularly sudden food price increases. While strong economic growth is a necessary precondition for povertyreduction, it is not sufficient to ensure an improvement in the poverty profile. To ensure quality growth, theGovernment will pursue income and transfer policies that are fiscally sustainable and target assistance at thepoorest and most vulnerable society groups, in line with Afghanistan’s Islamic traditions and values.Fiscally sound and well-targeted social protection interventions are of critical importance for improving povertyoutcomes. The Government is committed to pursuing sustainable income and transfer policies through pensionreform and programs focused on the extreme poor; allocating adequate resources to the poorest areas throughnationwide programs and productive safety net programs; phasing out non-targeted subsidies, such as energysubsidies; and building the planning and administrative capacity of the Ministry of Labor and Social Affairs todeliver coordinated programs in employment generation and social protection.The Government will provide humanitarian support for Afghans affected by natural disasters, insecurity, and thereturn from refugee status in neighboring countries. Up to 2.5 million additional Afghan refugees could returnduring the life of the ANDS. The capacity to absorb such an influx is uncertain and may require substantialinternational intervention in order to prevent the diversion of limited assets and resources. The Ministry forRefugees and Returnees will coordinate the provision of support programs for refugees and returneesimplemented through other ministries. The Afghan National Disaster Management Authority will coordinatethe Government’s preparedness for natural disasters and humanitarian situations.Cross Cutting IssuesThe ANDS is underpinned by five vital cross-cutting issues where coordinated action is needed across pillarsand sectors. They are inter-related and together pose a serious challenge to the successful implementation of theANDS and the achievement of Afghanistan’s MDGs. The Government is committed to decisive action intackling these challenges, in cooperation with its international partners.Counter-narcoticsOne of the major objectives of the ANDS is to lay out a strategy for the elimination of the narcotics industry,which represents a formidable threat to the country, the region, and beyond. The Government is committed to15

Afghanistan National Development Strategy (ANDS)halving the total area under poppy cultivation by 2013, as measured against 2007. The Government’s plan for1387 (2008) includes the eradication of 50,000 hectares of poppy fields.Those who are engaged in the narcotics industry are opposed to any gain in the Government’s legitimacy orstability for the country. They provide funding for terrorist activities and fuel corruption. The National DrugsControl Strategy (NDCS) is the Government’s main response to the fight against narcotics. It outlines eightinterlinked pillars that lead efforts to reduce drug production, trafficking, and consumption. The eight pillarsaddress: (i) alternative livelihoods, (ii) building institutions, (iii) information campaign, (iv) drug lawenforcement, (v) criminal justice, (vi) eradication, (vii) drug demand reduction and treatment of drug addicts,and (viii) regional cooperation. The NDCS will continue to be reviewed and updated during the lifetime of theANDS.A key element of the NDCS is moving towards a provincial based approach to counter-narcotics activities.While the Ministry of Counter-Narcotics will assume the leadership role, the IDLG, MRRD, ProvincialDevelopment Council and Provincial Governors will be increasingly involved in both the planning andimplementation of counter-narcotics activities. One of the main points of the provincial based approach is thatthe governors will be given the appropriate incentives to deliver on counter-narcotics and their performance willbe judged by how well they succeed.Other priorities include measures to increase the effectiveness of alternative livelihood programs by targetingtheir funding, administration, and delivery channels, as well as reform of the Counter-Narcotics Trust Fund(CNTF), with the aim of increasing Afghan management and improving its efficiency and effectiveness.Anti-corruptionThe perceived high level of corruption is a major roadblock to development and better governance. Theultimate objective of the Government’s anti-corruption strategy is a public administration that operates withintegrity and accountability to provide an enabling environment for economic and social development, basedupon the rule of law, impartiality in political decision making, the proper management of public resources, theprovision of efficient services and the active engagement of civil society and the private sector.The Government’s anti-corruption strategy and roadmap are focused on achieving clear progress in reformingpublic administration and judicial systems as well as implementing measures in the counter narcotics strategy.Specifically, the Government strives to: (i) amend and adapt legislation and procedures to prevent opportunitiesfor corruption; (ii) reform complex organizational structures which lead to opportunities for corruption; (iii)simplify and streamline government functions and procedures; (iv) remove corrupt officials and implementmerit based recruitments; (v) reform and strengthen audit procedures and increase control of financial andadministrative transactions; and (vi) ensure adequate salaries and incentives for civil servants.The Government recognizes that a balanced and sequenced approach to fighting corruption, making use ofdifferent instruments, strengthening their enforcement and evaluating their effectiveness is essential.Prevention, detection, prosecution, and sanctions, as well as awareness-raising are all components of thisstrategy. The Government will focus particularly on ensuring that the institutions, systems, and processes,including in public service delivery, are working well enough to minimize vulnerabilities to corruption.Measures to increase the transparency and accountability of government operations to external bodies such asthe National Assembly, media and civil society will also be designed.Capacity DevelopmentCapacity – human and institutional - is a major constraint facing all aspects of the implementation of the ANDS.Low capacity leads to wastage, underutilization of resources, inefficient and ineffective interventions, andsuboptimal outcomes. The Government will build the institutional mechanisms to support capacitydevelopment, mainly in the public sector, but where appropriate, supporting institutions and initiatives will alsoenable the private sector to participate and benefit from these mechanisms, such as National Vocational andEducation Training Board (NVETB). The institutional responsibility will be with Inter-ministerial Commission16

Executive Summaryfor Capacity Development (ICCD) that will serve as a single reporting point for both government and donors.The ICCD will provide a coordinated approach to support the effective management of funds and aid flows,cutting down on duplication and ensuring that capacity development needs are met in time and in an incrementalbut sustainable manner.The Government is working on a comprehensive program to increase the capacity of public sector institutionsand employees, in the context of the Public Administration Reform process. ANDS capacity developmentpriorities include a comprehensive training and skills development scheme for civil servants; the establishmentof the National Civil Service Training Centre; the management of international technical assistance to ensureaccelerated and sustainable transfer of skills and expertise; and the injection of short-term capacity through theManagement Capacity Program (MCP).Gender EquityAn important precondition for the success of Afghanistan’s development goals is the reversal of women’shistorical disadvantage in Afghan society. The Government’s vision is a peaceful and progressive nation wherewomen and men enjoy security, equal rights, and opportunities in all spheres of life. The Government iscommitted to fulfilling its obligation to women’s development as embodied in the Constitution, the MDGs, theAfghanistan Compact, and international treaties. The ANDS provides a framework for mainstreaming genderinterventions across sectors so as to address women’s position in the society, their socio-economic condition,and access to development opportunities. The implementation of the strategy for gender equity is a sharedresponsibility among government entities at the national and sub-national levels. The Ministry of Women’sAffairs, as the lead agency for women’s advancement, will be strengthened to enable it to take on the role ofcoordinating and monitoring the outcomes of Government interventions.EnvironmentThe environment is a cross-cutting issue that underpins the entire social and economic development frameworkfor the country. The Government’s chief goal regarding the environment is to improve the quality of life for thepeople of Afghanistan through conservation, protection, and improvement of the country’s environment, as wellas to ensure the sustainability of development efforts for future generations. As a top priority, the Governmentwill strengthen the capacity of the National Environmental Protection Agency (NEPA) to perform its regulatory,coordination, and oversight functions, and the capacity of line ministries to actively address environmentalconsiderations in their program designs. Another short-term priority is to make operational and fully deploy theEnvironmental Impact Assessment (EIA) system, jointly by NEPA and line ministries, which will allow for theadequate monitoring of the environmental impacts of development projects.Regional CooperationAfghanistan occupies a key strategic location linking Central Asia with South Asia, providing China and the FarEast with a direct trade route with the Middle East and Europe. At the moment, Afghanistan also faces asecurity threat that has region-wide implications and that can only be addressed effectively by region-widecooperation.Developing the opportunities arising from this strategic location as a ‘land bridge’ between Central and SouthAsia, and the Middle East and the Far East will contribute to regional stability and prosperity, as well asincreased investment and trade. The Government’s key priorities are: (i) to increase and deepen Afghanistan’sparticipation and leadership in bilateral and region-wide initiatives and agreements that facilitate transit,transport, and investment in the region; (ii) to promote cross-border initiatives for the equitable exploitation ofshared resources of hydro power; (iii) to facilitate the voluntary return of refugees; and (iv) extend regionalcooperation on border management to better align efforts against organized cross-border crimes, such astrafficking in drugs and weapons. The Government recognizes that it cannot achieve its goals with regards toimproving security without close cooperation from regional partners, particularly Pakistan.17

Afghanistan National Development Strategy (ANDS)VI. MACROECONOMIC FRAMEWORKHigh, sustainable and quality economic growth is the major driving force for poverty reduction and employmentcreation. Recent high growth performance has been supported by the government’s prudent fiscal and monetarypolicies and a stable exchange rate. However, Afghanistan’s high growth rate has thus far not contributedsufficiently to poverty reduction and employment creation, and it has been driven to a large degree by the influxof foreign aid—a situation which carries its own macroeconomic risks.The ANDS has been developed to articulate the Government’s policies for reducing poverty and improvingdevelopment outcomes—which will rely heavily on maintaining macroeconomic stability and cultivatingsources of growth, particularly in the private sector. The ANDS will also contribute to fiscal sustainabilitythrough its importance in the successful completion of the HIPC debt relief process and raising domesticrevenue. To support the successful implementation of the ANDS, the Government will rely on the Medium-Term Fiscal Framework to define a sustainable fiscal trajectory for Afghanistan. Da Afghanistan Bank (DAB)will continue to target low inflation and maintain the current stable exchange rate regime.The Government is committed to the creation of a strong private sector-led economy, despite current constraints.Although this means that there is still substantial scope for public/donor investment in the short-term, in themedium to longer term, private investment is expected to contribute significantly to growth. In turn, increasedeconomic growth will lead to higher government revenues that will benefit the poor by addressing inequality,enabling the Government to increase social services and creating jobs in the growing private sector. Given thatthis will take time, the Government will continue to engage in social protection programs for the mostvulnerable segments of the population.The Government is determined to assist the private sector to develop its competitiveness and to substantiallyincrease the volume of domestic production. At present, Afghanistan’s exports are very low by regionalstandards, dominated by dried fruit and carpets. However, in recent years a number of new manufacturingindustries have begun to emerge, some with demonstrated export potential, such as production dairy products,honey, cement, sunflower products, glass, sugar beet, olive oil, cashmere, and flowers and floral essences. TheGovernment will seek firm-level technical assistance to increase the ability of firms in these and other newindustries to compete more effectively in potential export markets.Anticipated large scale development of copper, natural gas, petroleum, and precious minerals will contributesubstantially to export growth, which is projected to grow at 16-18 percent per year during the lifetime of theANDS. Private sector growth will also support export expansion. The Government is committed to increasingexport volumes and moving toward higher value-added exports. The improvement of the enabling environmentfor the business sector – a key government priority—will contribute to improving competitiveness and supportexport growth. Expansion in the mining sector and the resulting growth of mining-related exports are expectedto be a significant source of economic growth, alongside increasingly high-value agricultural activities—both ofwhich will increase employment.Prudent fiscal policy will remain the central policy tool for macroeconomic stability and public resourceallocation. The medium-term fiscal sustainability objective of the Government is to cover recurrent expenditurewith domestic revenue sources. The operating budget balance (excluding grants) is projected to improve from adeficit of 4.0 percent of GDP in 1386 (2007/08) to a balanced budget in 1391 (2012/13). Prudent debtmanagement will continue to be essential as Afghanistan moves towards fiscal sustainability. The Governmentwill utilize limited amounts of concessional debt to finance specific project and program requirements.In the short to medium-term, the top priority for public expenditure will be investments to improve nationalsecurity and infrastructure necessary to stimulate private enterprise and greater productivity. Althoughimproved national security is the highest priority of the ANDS, it is expected that the majority of expenditure inthis sector will be financed by external assistance over the duration of the ANDS. Public expenditure policywill facilitate private sector growth, increase production capacity and enhance productivity, thereby contributingto poverty reduction. The Government plans to continue to improve its spending capacity at all levels.18

Executive SummaryOver the past five years, foreign aid has averaged approximately 60 percent of GDP. Roughly one third offoreign assistance is channeled through the core budget, with the rest spent outside the government budget.Aligning donors’ expenditure that is spent outside the national budget with ANDS priorities will remain a majorfiscal challenge. Of greater concern for the Government are the potentially negative effects of aid volatility.The Government will maintain financial reserves with DAB and over the medium-term will pursue policies todevelop contingent financing arrangements.Increasing revenues by improving revenue administration and enforcement, and broadening the tax base, isessential for fiscal sustainability and a reduction in aid dependency. The Government is committed to cover 100percent of recurrent expenditures through domestic revenues by 2012. Progress has been made in mobilizingdomestic revenue, with an increase from 12.8 billion Afghani in 1383 (2004/05) to 28.8 billion Afghani in 1385(2006/07). The ratio of revenue-to-GDP is expected to improve to 10 to 11 percent of GDP in 1391 (2012/13),albeit even then one of the lowest ratios in the world. The immediate priority for revenue generation is tostrengthen enforcement efforts and to persuade the National Assembly to enact the amendments to the incometax law that the Government has submitted. In the short-term, other important government policies forincreasing revenue will include measures to broaden the tax base and improve tax administration. In themedium term, a broad-based consumption tax will play an important role in domestic revenue mobilization.VII. PARTNERSHIPS FOR FINANCING THE ANDSThe Cabinet has approved a ceiling and budget prioritization for ANDS sectors, as shown in Table 1 below.These sectoral ceilings are based on moving to a budget that is based on delivering development needs,available financing information from previous years, and projections for domestic revenues.These ceilings and the budget prioritization exercise have played a central role in the preparation of theMedium-Term Fiscal Framework (MTFF), and they are directly linked to the national budget. Starting in 1387(2008/09), the MTFF will embody the prioritization established in the ANDS and will provide the mechanismfor implementing the ANDS through the national budget process.Table 1. Overall Financing Envelope for the ANDS 1387-1391 (2008-2013)13872008/09US$m13882009/10US$m13892010/11US$m13902011/12US$m13912012/13US$mTotalUS$mCore + External Budget FundingDomestic Revenue 887 1,104 1,351 1,611 1,911 6,864Total Assistance from Donors* 6,513 4,960 4,814 4,398 3,908 24,593Total Funding* 7,400 6,064 6,165 6,009 5,819 31,457Budgeted Core + External ExpenditureSecurity 3219 2585 2679 2790 2906 14179Infrastructure 1781 3093 3681 4180 4451 17185Agriculture and Rural Development 829 921 916 909 912 4486Education and Culture 742 893 980 1077 1181 4872Good Governance and Rule of Law 374 558 640 685 728 2985Health & Nutrition 325 465 530 563 595 2478Economic Governance & PSD 237 215 230 244 260 1186Social Protection 192 359 394 421 449 1815Others (Sub Codes) 205 198 185 170 157 915Total Expenditure 7,903 9,286 1 0,236 11,038 11,637 50,100 2* Based on discussions with international community and the 1386 (2007) financial review2 The level of expenditure in table 1 is based on assumption regarding the amount of financing which will be made available at theforthcoming ANDS Conference in Paris. The Macroeconomic Framework which currently underpins the ANDS does not assume a similarscaling-up of donor assistance and is therefore not entirely consistent with table 1. Following the Conference, the MacroeconomicFramework and the ANDS expenditure ceilings will be updated to reflect the actual level of international assistance.19

Afghanistan National Development Strategy (ANDS)Security will remain the top priority sector for Afghanistan in terms of expenditure. Over the lifetime of theANDS, security spending is expected to total $14.2 billion. The funding for this sector is expected to comeprimarily through international assistance. The Government estimates that in the future, the need for securityassistance will decrease as the threat declines. However, given the uncertain nature of the instability facingAfghanistan, the Government envisions the possibility of potentially significant revisions to the financingenvelope for the security sector.In the short-term, the Government will focus its public expenditure programs on investments in infrastructureand agriculture and rural development in recognition of the high importance of these sectors for thedevelopment of the private sector and for employment growth. Over the lifetime of the ANDS, the Governmentwill focus progressively more resources on education, governance, health, and social protection. TheGovernment is committed to allocating sufficient amount of resources to the key priorities of strengtheningeconomic governance and improving the enabling environment for private sector development.Costing and prioritization of the ANDS sectorsThe full costing of the projects and programs included in the ANDS is not yet complete. In the process ofpreparation of the ANDS, it became clear that in many sectors neither cost information nor detailed investmentplans were available. Further, full costing was not possible until the prioritized sectoral objectives wereidentified as a basis for costing of key sectoral outputs. Therefore, it was decided that three sectors withrelatively higher institutional capacity would be costed in the initial phase. The sectors chosen for the pilotcosting exercise were health, education, and roads—a sub-sector in the Transport sector. The Ministry ofFinance is leading the costing process, working directly with line ministries and incorporating ProvincialDevelopment Plans. The work on costing of the next group of priority sectors—security, social protection andthe remaining components of the infrastructure sectors—has already commenced. These sectors are expected tobe fully costed by the summer of 2008.Expected assistance for ANDS implementationThe total estimated cost of the ANDS over its five-year time span is approximately US$50.1 billion. Of thisamount, the Afghan government will contribute US$6.8 billion and external assistance is expected to beUS$43.2 billion. The US$50.1 assumes a significant incremental increase in funds being channeled through theGovernment Core Budget. However, if funds continue to be channeled externally this will result in much higheroverhead costs, thereby increasing by a sizeable amount the total aid requirements for successful ANDSimplementation over the next five years.Over the lifetime of the ANDS Afghanistan will continue to rely on external financing. The Government’smedium-term objective is to reduce aid dependency and improve sustainability by increasing domestic revenues.To that end, the Government is pursuing policies that will strengthen the performance of the economy andimprove revenue collection. Meanwhile, the Government encourages its international partners to make multiyearcommitments to support the goals and the priorities of the ANDS. This will improve the predictability ofaid flows and permit the Government to better plan sustainable expenditures and manage priorities moreeffectively over the medium-term.VIII. AID EFFECTIVENESSWithout significant improvements in the effectiveness of aid, Afghanistan will be unable to achieve theambitious goals set out in the ANDS, even with large increases in aid. The Government is committed toensuring that maximum benefit is gained from international development assistance. The ANDS, with itsimplementation, monitoring and evaluation framework, will facilitate greater aid effectiveness. TheGovernment has developed an aid effectiveness strategy, in line with the Paris Declaration for Aid Effectivenessand Afghanistan’s international obligations.20

Executive SummaryA key priority of the Government’s aid effectiveness strategy is to encourage donors to channel a greaterproportion of their contributions through the core budget. There is strong evidence that aid channeled throughthe national budget achieves greater impact at lower cost. In turn, the Government commits to furtherstrengthen public financial management, procurement, and fiduciary responsibilities and improve the absorptivecapacity of state institutions.The Government’s aid effectiveness strategy is based on the following principles and priority policies:• Afghan ownership: Through the establishment of the ANDS itself, the Government is articulating thepriorities necessary to achieve Afghanistan’s development goals.• Alignment of international assistance with Afghan priorities as enunciated in the ANDS: Afghanistan’sinternational partners can contribute to improved aid effectiveness through increased discipline inrespecting defined sector ceilings and priority programs, while improving coordination through moreextensive information sharing and policy dialogue—both horizontally (across donors and governmentinstitutions) and vertically (with PRTs and local governments).• Harmonization: Aid effectiveness will benefit from improved information on aid flows and greaterpredictability; reducing high transaction costs and parallel funding mechanisms; improving intergovernmentalcoordination; and strengthening the management of technical assistance.• Managing for results: The Government is committed to pursuing policies aimed at: increasing thetransparency and aid absorption capacity of the government; improving public financial management;reducing corruption; and ensuring sustainability of maintenance and operation costs.• Mutual accountability and partnership: In achieving the shared vision and goals, the Government willcontinue to participate in the Paris Declaration Monitoring Survey and the Public FinancialManagement Performance Assessment as a means to ensuring mutual accountability towards progressin aid effectiveness.IX. IMPLEMENTATION FRAMEWORKThe National Budget is the central tool for implementing the ANDS, and all line ministries will develop andalign their programs and projects in accordance with the ANDS sector strategies. Sector programs and projectswill then be costed, sequenced and re-prioritized to reflect the medium-term budget ceilings. Theimplementation framework for the ANDS is an integrated approach to national budgetary execution, thelegislative agenda and program delivery. This approach will also require the international community to aligntheir support with ANDS priorities. Based on this, the ANDS Public Investment Programs (PIPs) will beprepared to enable the full integration of the ANDS into the MTFF and the budget.The role of the Control and Audit Office (CAO) will be strengthened to provide oversight of the expenditurefunctions of core spending ministries. However, given CAO’s current capacity, the Ministry of Finance willassume this responsibility in the short term. The Cabinet, through the ANDS Oversight Committee (OSC), willoversee and coordinate the overall ANDS implementation process. However, line ministries and othergovernment agencies will be mainly responsible for implementation. The Ministry of Finance will have theresponsibility to ensure that the programs and projects of the line ministries are costed, sequenced, andintegrated into the Medium-Term Fiscal Framework and the National Budget. The Joint Coordination andMonitoring Board (JCMB) is the highest Government-international community mechanism in charge ofcoordinating and monitoring both the ANDS and the Afghanistan Compact. The joint Government and donorentities, such as the Consultative Groups (CGs) and Working Groups (WG), will continue to serve as forums forimproving aid coordination, policy and implementation dialogue, ensuring the alignment of donor programswith the ANDS priorities.21

Afghanistan National Development Strategy (ANDS)X. MONITORING, EVALUATION AND REPORTINGThe monitoring, evaluation and reporting process of the ANDS will be an integral part of the implementationframework. The ANDS has developed clearly defined goals, inputs, outputs, outcomes, and impact indicators.However, due to weak statistical capacity, the baselines for a number of key development and poverty indicatorsare yet to be established. It will be important to distinguish between two levels of monitoring and oversight:detailed input/output or program monitoring of the implementation of the ANDS; and wider results/outcomesand impact monitoring for the high level Government institutions (OSC, Cabinet) and JCMB to ensure that thestrategic priorities of the ANDS are on track.The JCMB secretariat will provide policy and strategy analysis and assessment, monitoring and evaluationreports to JCMB on the overall implementation of ANDS and Afghanistan Compact Benchmarks. The AnnualANDS Progress Report will be presented to the World Bank and IMF boards in the context of Afghanistan’swork to reach the “completion point” under the Highly Indebted Poor Counties (HIPC) program. Based onannual progress and evaluation reports, every two years a full update of the ANDS/PRSP, developed with broadparticipation, will be constituted as an impact evaluation. This update will be publicly disseminated and willprovide an opportunity for the government to adjust policies to achieve desired results. Public expenditurereviews will be carried out, and in line with the budget cycle, ad hoc and quarterly sectoral monitoring andreports will be conducted.The Central Monitoring and Reporting System (CMRS) will be developed jointly by the Ministry of Economyand the JCMB secretariat. The CMRS and the Central Statistics Office (CSO) will be part of an integratedinformation collection and monitoring system. The CSO will collect data through various means includingsurveys. The CMRS will then collect the processed data produced by the CSO; undertake budget monitoringand line ministry reporting; facilitate various monitoring processes; and disseminate information. The CSO willremain the main provider of primary and secondary national statistics, as an input to the CMRS. Its capacitywill be strengthened so that an effective statistical system is in place for capturing data on macro-level indicatorsas well as micro-level impacts. One of the most important tools for this framework is the NRVA householdsurvey, from which the current poverty line estimates have been calculated. The role of the NRVA will befurther expanded so that it can more fully capture the impact of ANDS implementation.Line ministries will continue to collect sectoral information to monitor the outputs and outcomes of nationalspending through the ANDS. The line ministries will strengthen their provincial offices to collect disaggregateddata on indicators to monitor progress at the sub-national level. The budget monitoring system, the AfghanistanFinancial Management Information System (AFMIS), managed by the Ministry of Finance, will provideinformation on input and output expenditures in line with the MTFF.Independent monitoring will be a vital part of the overall monitoring and reporting system. Civil society, nongovernmentalorganizations, and the media will play important roles in the external monitoring of the ANDS.ANDS implementation, monitoring, and evaluation will be carried out in consultation with these stakeholders,sub-national representatives, and the international community.The role of the International Financial Institutions, the international community and UN agencies will continueto be vital for (i) developing analyses and assessments; (ii) coverage and timeliness of key data; (iii)documenting the current resource envelope; and (iv) providing information on the present levels of externalassistance and prospects for aid levels over the medium-term.XI. CONCLUSIONAlthough significant gains have been made over the past six years, Afghanistan and the international communityunderestimated the magnitude of devastation, and the time and costs required to redress it. Progress to date hasstruggled to keep pace with the rapid growth of new problems and the rising democratic aspirations of theAfghan people.22

Executive SummarySustaining the nascent Afghan democracy will require nothing less than a prosperous Afghanistan in whichpoverty reduction and growth occur simultaneously. Success depends on a vibrant private sector with publicsector resources focused primarily on providing physical, commercial and legal infrastructure and distributingthe benefits of growth to all citizens. At the same time, economic growth and poverty reduction will not bedelivered without peace and security. Stabilizing the nation, provinces and communities across Afghanistan,coupled with rebuilding core government capacities, are prerequisites for realizing our national vision.Through the Afghanistan National Development Strategy, the Government is firmly committed to achieve theambitious targets specified in the Afghanistan Compact benchmarks and Afghanistan Millennium DevelopmentGoals. This includes: (i) the achievement of nationwide stabilization; (ii) the strengthening of the rule of law,democratic practice and human rights; and (iii) the improvement of public service delivery and governmentaccountability. This also involves efforts to reduce poverty, to ensure sustainable development through privatesector-led economic growth, and to improve human development indicators. In addition, to accelerate progressin all spheres of development, further investments are required in the key sectors of agriculture, energy,irrigation, and education.Following extensive consultations involving thousands of Afghans and international partners, the ANDS isformulated to ensure that the scope and priorities identified in the strategy are commensurate with the enormityof the challenges facing the country. Our success in this endeavor will require the sustained, enhanced, andcoherent support of Afghanistan’s international partners. In this regard, increasing aid effectiveness is essentialto effective Afghan-led implementation of the ANDS agenda, especially through the alignment of aid towardsANDS priorities and the channeling of resources through the core Government budget.The ANDS, as a national strategy, has adopted an integrated approach to guarantee successful implementationtowards realizing the shared goals of stabilization, prosperity, good governance and peace. As we move from‘Compact to Impact’ to make a meaningful change in the lives of ordinary Afghans, a stronger and sustainedfinancial and political commitment by the international community is needed. Most importantly, this integratedeffort will require the full involvement and collaboration of Government, the private sector, civil society, theinternational community, and all Afghan citizens.Together we will make our vision a reality for the people of Afghanistan.23

Islamic Republic of AfghanistanAfghanistan National DevelopmentStrategy SecretariatGul Khana Palace, (Sedarat)Kabul, Afghanistanwww.ands.gov.af

Islamic Republic of AfghanistanAfghanistan National Development Strategy1389 – 1391 (2008 – 2013)A Strategy for Security, Governance, Economic Growth & PovertyReduction

بسم االله الرحمن الرحيمIn the Name of Allah, the Most Compassionate, the Most Mercifulإِن َّ اللّهَ‏ لاَ‏ يُغَي ِّرُ‏ مَا بِقَوْمٍ‏ حَت َّى يُغَي ِّرُواْ‏ مَا بِأَنْفُسِهِمْ‏Verily, never will Allah change the condition of people unless theychange 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, standingwith full dignity in the international family.• A tolerant, united, and pluralistic nation that honors its Islamic heritage and the deepseated aspirations toward participation, justice, and equal rights for all.• A society of hope and prosperity based on a strong, private-sector led market economy, socialequity, 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 AfghanistanCompact as a foundation. The pillars and goals of the ANDS are:1. Security: Achieve nationwide stabilization, strengthen law enforcement, and improvepersonal security for every Afghan.2. Governance, Rule of Law and Human Rights: Strengthen democratic processes and institutions,human rights, the rule of law, delivery of public services and government accountability.3. Economic and Social Development: Reduce poverty, ensure sustainable developmentthrough 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

Map of AfghanistaniiiAfghanistan National Development Strategy (ANDS)

ForewordivAfghanistan 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 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 journey.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 serviceshas 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 networkand 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 internationalcommunity 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 hamperingour 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 confidentthat the ANDS will help us in achieving the Afghanistan Compact benchmarks and MillenniumDevelopment Goals. I also consider this document as our roadmap for the long-desired objectiveof 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 AfghanistanForewordv

Message from theOversight CommitteeFor the preparation of the Afghanistan National Development StrategyviAfghanistan National Development Strategy (ANDS)

In the name of Allah, the most Merciful, the most CompassionateWe are pleased to present the Afghanistan National Development Strategy, which reflects the commitmentof 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 mandatedby 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 identificationof 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 consultationsboth 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 commitmentto the ANDS goals and vision.We look forward to working with our government colleagues, civil society representatives, tribal eldersand religious scholars, the private sector, the international community and, most importantly, fellowAfghans to implement the ANDS, to help realize the Afghanistan Compact benchmarks and MillenniumDevelopment Goals.Message from the Ovresight Committeevii

AcknowledgmentsviiiAfghanistan National Development Strategy (ANDS)

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 OversightCommittee, 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 Shahrani,Deputy Minister of Finance and the Ministry of Finance team. In addition, we would like to thank the SupremeCourt, the National Assembly, Government Ministries and Agencies, Provincial Authorities, Afghan Embassiesabroad, 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. Nationaland 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 contributions,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 contributionand for the efforts of his team of young Afghan professionals who dedicated themselves tirelessly to completingthe I-ANDS, Afghanistan Compact and the full ANDS in consultation with both national and internationalpartners. The Sector Coordinators included Rahatullah Naeem, Farzana Rashid Rahimi, Shakir Majeedi,Attaullah Asim, Mohammad Ismail Rahimi, Zalmai Allawdin, Hedayatullah Ashrafi, Shukria Kazemi, SaifurahmanAhmadzai, 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 economicgrowth 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.Acknowledgmentsix

Table of ContentsxAfghanistan National Development Strategy (ANDS)

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 ..........................................................40Contentsxi

Growth Projection and Strategy ......................................................................................................................44Fiscal policy ........................................................................................................................................................46Monetary policy.................................................................................................................................................48Financing the ANDS..........................................................................................................................................50Conclusion..........................................................................................................................................................51CHAPTER 5 .......................................................................................................................................................53SECURITY .........................................................................................................................................................53Current situation................................................................................................................................................53Policy framework...............................................................................................................................................55Security institutions...........................................................................................................................................56‘Right-Financing’ Security Sector Reform ......................................................................................................58Sound Administration, Justice and Judicial System .....................................................................................59Relations with nieghbors and international allies.........................................................................................59Conclusion..........................................................................................................................................................59CHAPTER 6 .......................................................................................................................................................61GOVERNANCE, RULE OF LAW & HUMAN RIGHTS ...........................................................................61Governance, Public Administration Reform and human rights .................................................................61Justice ..................................................................................................................................................................63Religious affairs .................................................................................................................................................67Conclusion..........................................................................................................................................................69CHAPTER 7 .......................................................................................................................................................73ECONOMIC AND SOCIAL DEVELOPMENT ..........................................................................................73Private sector development..............................................................................................................................73Energy .................................................................................................................................................................77Water and irrigation..........................................................................................................................................82Agriculture and rural development................................................................................................................87Transport.............................................................................................................................................................93Information and Communications Technology ............................................................................................96Urban development.........................................................................................................................................100Mining ...............................................................................................................................................................105Health and Nutrition.......................................................................................................................................108Education..........................................................................................................................................................113Culture, youth and media ..............................................................................................................................120Social protection...............................................................................................................................................123Refuges, returnees and internally displaced persons .................................................................................129Conclusion........................................................................................................................................................133CHAPTER 8 .....................................................................................................................................................144CROSS-CUTTING ISSUES..........................................................................................................................144Regional cooperation.......................................................................................................................................144Counter narcotics.............................................................................................................................................146Anti-corruption................................................................................................................................................147Gender equity...................................................................................................................................................148Capacity development ....................................................................................................................................150Environment.....................................................................................................................................................151Conclusion........................................................................................................................................................152PART III ...........................................................................................................................................................154AID EFFECTIVENESS AND COORDINATION.....................................................................................154CHAPTER 9 .....................................................................................................................................................156AID EFFECTIVENESS AND COORDINATION.....................................................................................156Paris Declaration and Afghanistan Compact...............................................................................................156xiiAfghanistan National Development Strategy (ANDS)

Current situation: assessment of aid effectiveness......................................................................................156Aid effectiveness strategy framework ..........................................................................................................157Implementation and monitoring ...................................................................................................................161Conclusion........................................................................................................................................................163PART IV ...........................................................................................................................................................164IMPLEMENTATION AND MONITORING ............................................................................................164CHAPTER 10 ...................................................................................................................................................166IMPLEMENTATION FRAMEWORK ........................................................................................................166Lessons learned during the Interim ANDS..................................................................................................166Implementation framework and integrated approach...............................................................................167Implementation Plan and the ANDS implementation cycle .....................................................................168Implementation Cycle.....................................................................................................................................168Role of the National Budget and the MTFF .................................................................................................169Role of the MTFF .............................................................................................................................................172Role of the Control and Audit Office (CAO) ...............................................................................................172Budget management framework, prioritization and funding requirements for the implementation ofthe ANDS..........................................................................................................................................................172National implementation structures .............................................................................................................173Sub-national implementation structures ......................................................................................................173Coordination structures..................................................................................................................................173Integrating conflict management into sector strategies..............................................................................174Conclusion........................................................................................................................................................174CHAPTER 11 ...................................................................................................................................................177MONITORING FRAMEWORK ..................................................................................................................177ANDS monitoring and evaluation principles..............................................................................................177Institutional structure......................................................................................................................................178Monitoring and evaluation reporting...........................................................................................................180Indicators for monitoring ...............................................................................................................................180Monitoring and evaluation framework ........................................................................................................182Conclusion........................................................................................................................................................182CHAPTER 12 ...................................................................................................................................................187CONCLUSION................................................................................................................................................187APPENDICES..................................................................................................................................................191Contentsxiii

Acronyms and AbbreviationsxivAfghanistan National Development Strategy (ANDS)

ACACBARADBADCAfCERTAFMISAGOAIHRCAISAANAANDMAANPANSAityANSFANWPAPPPAARCSCARDSARDZARTFASYCUDAATRAAUWSSCBPFABPHSCAOCARCARDCARECCASACBNCCCGCDCsCEDAWCGCISCMRSCNCNPACNTFCSOCSTIAfghanistan CompactAgency Coordinating Body for AfghanReliefAsian Development BankArea Development CouncilsAfghanistan Cyber Emergency ResponseTeamAfghanistan Financial Management SystemAttorney General’s OfficeAfghanistan Independent Human RightsCommissionAfghanistan Investment Support AgencyAfghanistan National ArmyAfghanistan National Dis-aster ManagementAuthorityAfghan National PoliceAfghanistan National Standards Author-Afghan National Security ForcesAfghanistan National Welfare ProgramAfghanistan Participatory Poverty AssessmentAdministrative Reform and Civil ServiceCommissionAfghan Reconstruction & DevelopmentServicesAgriculture and Rural DevelopmentZonesAfghanistan Reconstruction Trust FundAutomated System for Customs DataAfghanistan Telecommunication RegulationAuthorityAfghanistan Urban Water Supply andSewerage CorporationBeijing Platform for Actionbasic package of health servicesControl and Audit OfficeCentral Asian RepublicsComprehensive Agriculture and RuralDevelopmentCentral Asian Regional Economic CooperationCentral and South AsiaCost of Basic NeedsCross Cutting Consultative GroupCommunity Development CouncilsConvention on the Elimination of allforms of Discrimination against WomenConsultative GroupCommonwealth of Independent StatesCentral Monitoring and Reporting Systemcounter narcoticsCounter Narcotics Police of AfghanistanCounter Narcotics Trust FundCentral Statistics OfficeCivil Services Training InstituteDABDABMDACDCNECECOTAEPAAEPHSEUFCCSFDIFSMSGDPGIAACGISGoAGSMHaHCSHIPCHIVHIV/AIDSHNSHNSSIAGsI-ANDSIARCSCIATAICAOICCDICEICTIDLGIDPIDPsIECILOIMFISAFITIWRMJCMBKmKWHLOTFAM&EMoCITMCNMDGsDa Afghanistan Bank (Central Bank ofAfghanistan)Da Afghanistan Breshna Moassessa (theAfghan electric utility)District Advisory CommitteeDistrict Communication NetworkEuropean CommissionEconomic Cooperation OrganizationTrade AgreementExport Promotion Agency of Afghanistanessential package of hospital servicesEuropean UnionFoundation for Culture and Civil SocietyForeign Direct InvestmentFood Security Monitoring SurveyGross Domestic ProductGeneral and Independent AdministrationAgainst Corruption and BriberyGeographical Information SystemGovernment of AfghanistanGlobal System MobileHectareHealth Care ServiceHeavily Indebted Poor CountriesHuman immunodeficiency virusHuman Immune-deficiency Virus/AcquiredImmune Deficiency SyndromeHealth and Nutrition SectorHealth and Nutrition Sector StrategyIllegal Armed GroupsInterim Afghanistan National DevelopmentStrategyIndependent Administrative Reform andCivil Service CommissionInternational Air Transport AssociationInternational Civil Aviation OrganizationInter-ministerial Commission for CapacityDevelopmentInter-Ministerial Commission on EnergyInformation and Communications TechnologyThe Independent Directorate for LocalGovernanceInternally Displaced PersonsInternally Displaced PersonsIndependent Electoral CommissionInternational Labor OrganizationInternational Monetary FundInternational Security Assistance ForceAir CommandInformation TechnologyIntegrated Water Resources ManagementJoint Monitoring and Coordination BoardKilometerKilowatt-Hour (Unit of electric energy)Law and Order Trust FundMonitoring and EvaluationMinistry of Communications & InformationTechnologyMinistry of Counter NarcoticsMillennium Development GoalsAcronyms and Abbreviationsxv

MEAsMISMoDMoEMoEMoFMoFAMoHEMoIMoJMoLSAMDMoMMoPHMoUMoUDMoWAMRRDMTFFMWNABDPNAPWANATONDCSNEPANEPSNGONIRANRAPNRVANSCNSDPNSPNVETAODAOECDOEFOMOOSCOSCEP&GPAGMultilateral Environmental AgreementsManagement Information SystemsMinistry of DefenseMinistry of EconomyMinistry of EducationMinistry of FinanceMinistry of Foreign AffairsMinistry of Higher EducationMinistry of InteriorMinistry of JusticeMinistry of Labor, Social Affairs, Martyrsand the DisabledMinistry of MinesMinistry of Public HealthMemorandum of UnderstandingMinistry of Urban DevelopmentMinistry of Women’s AffairsMinistry of Rural Rehabilitation and DevelopmentMedium Term Financial FrameworkMegawattNational Area-Based Development ProgramNational Action Plan for the Women ofAfghanistanNorth Atlantic Treaty OrganizationNational Drug Control StrategyNational Environmental ProtectionAgency (GoA)North-East Power SystemNon-Governmental OrganizationNational Internet Registry of AfghanistanNational Rural Accessibility ProgramNational Risk and Vulnerability AssessmentNational Statistical CouncilNational Skills Development ProgramNational Solidarity ProgramProposed National Vocational Educationand Training AuthorityOfficial Development AssistanceOrganization for Economic Cooperationand DevelopmentOperation Enduring FreedomOpen Market OperationsOversight CommitteeOrganization for Security and Cooperationin EuropePay and gradingPolicy Action GroupPARPAYGPDPsPFMPIOPIPPPAPRDPPRSPPRTPRTsRBAREDRIMUSAARCSCOSCWAMSEPSSMEsSNCSOESPECASPSTATAGTWGTWGsUNUNAMAUNCACUNDPUNHCRUNICEFUNIFEMUNODCUSAIDWATSANWBWCSWTOPublic Administration ReformPay-as-you-goProvincial Development PlansPublic Financial ManagementProject Implementation OfficePublic Investment ProgramPower Purchase AgreementPro-active Regional Diplomacy ProgramPoverty Reduction Strategy PaperProvincial Reconstruction TeamProvincial Reconstruction TeamsRiver Basin AgencyRural Road Evaluation ModelReform Implementation ManagementUnitSouth Asian Association for RegionalCooperationShanghai Cooperation OrganizationSupreme Council for Water Affairs ManagementSouth-East Power SystemSmall and Medium EnterprisesSub-National ConsultationState Owned EnterprisesSpecial Program for the Economies ofCentral AsiaSanitary and Phyto-sanitaryTripartite AgreementTechnical Advisory GroupTechnical Working GroupTechnical Working GroupsUnited NationsUnited Nations’ Assistance Mission toAfghanistanUnited Nations Convention Against CorruptionUnited Nations Development ProgramUnited Nations High Commission forRefugeesUnited Nations International Children'sEmergency FundUnited Nations Development Fund forWomenUnited Nations Office on Drugs andCrimeUnited States Agency for InternationalDevelopmentWater and Sanitation CommitteesWorld BankWildlife Conservation SocietyWorld Trade OrganizationxviAfghanistan National Development Strategy (ANDS)

Glossary of Afghan TermsAmu DaryaBank-e-MilliA river originated from Pamir mountain and flowing in the northern region ofAfghanistanNational BankDaryaGozarImamJirgasKarezeKuchiLoya JirgaMadrassaMeshrano JirgaMirabShariaShuraTaqninUlamaWolosi JirgaRiverSmallest Administrative Unit inside the Urban areaAn Islamic leader, often the leader of a mosqueLocal Consultation MeetingsUnderground canals connecting wells uses as traditional irrigation systemNomadGrand Council, ”Grand Assembly of elders”A school, where mostly Islamic Studies are concernedSenate (Upper House of Assembly)A person responsible for water management in a communityIslamic LawsTraditional or Local Council (Shuras, pl)Law making, legislationReligious ScholarsNational 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 exceedsa minimum level. In addition, Zakat is one of the basic principles of Islamiceconomics, based on social welfare and fair distribution of wealth.1. Hamal2. Saur3. Jawza4. Sarataan5. Asad6. SunbulaMarch 21April 21May 2June 22July 23Aug 23AFGHAN CALENDAR7. Meezaan8. Aqrab9. Qaus10. Jaddi11. Dalwa12. HootSeptember 23October 23November 22December 22January 21February 20Glossary of Afghan Termsxvii

INTRODUCTIONBACKGROUNDFollowing almost three decades of war, thechallenges facing Afghanistan’s developmentremain immense. By 1380 (2001), the ravagesof conflict had bestowed upon Afghan citizensand the incumbent administration an inheritanceof debt not wealth. With the Talibandominating the political landscape from 1375(1996) onwards, Afghanistan had been movingbackwards in all aspects. The results of war,the destruction of core institutions of state anda heavily war torn economy led to unrivaledlevels of absolute poverty, national ill health,large scale illiteracy and the almost completedisintegration of gender equity. And yet, followingsix years of reconstruction, at a cost ofbillions of dollars, the path to prosperity fromextreme poverty remains as distant as ever.Insecurity, poverty, corruption and the expandingnarcotics industry signify that while thechallenges facing Afghanistan have changed innature, they have not necessarily changed inmagnitude. Yet, the price of securing peace andfreedom at this pivotal moment in history willbe nothing compared to the long term costs offailure both for Afghanistan and the internationalcommunity. Averting failure and establishingAfghanistan on a virtuous path towardspeace, stability and prosperity are therefore thecornerstones of the new Afghan National DevelopmentStrategy (ANDS). At the core of theANDS is a policy of Afghanization, meaningthat ANDS has been fully developed andowned by Afghanistan.ACHIEVEMENTS SINCE 2001In 2001 Afghanistan was certainly a thoroughlydevastated country in virtually every respect.The political, social and economic structures ofthe country had been severely damaged orcompletely destroyed. Massive numbers ofAfghans had left as refugees, had died duringthe conflict or were severely disabled. Everyfamily had paid a price – many had to copewith the loss of main breadwinner. For theyoung people that remained, their educationhad been disrupted and in many cases, includingfor all girls and women, ended. Today Afghanistanhas among the highest rates of illiteracyin the world. Yet despite these desperateconditions, since 2001 the country has hadsome remarkable achievements. The progressthat has been made should be measuredagainst the desperate conditions that prevailedat the time of the fall of the Taliban. While Afghanistanstill faces many enormous challenges,the progress that has been made givescause for some optimism that with the determinationof the Afghan people to rebuild theirlives and their country, the transformation to apeaceful and prosperous can be achieved.The goals of the ANDS for the next five yearsought to be viewed against what has been accomplishedduring the last six years. Onlysome of the most significant achievements canbe mentioned here.Political achievements:• In 1380 (2001) the Bonn Agreement establisheda roadmap for the political transformationof Afghanistan to a legitimatedemocratic state. The targets set in theBonn Agreement were fully met on timeand included:• The Transitional Administration was establishedto guide the process. It derived itsauthority through an Emergency LoyaJirga, the first genuinely representative Afghannational meeting in decades.• In 1383 (2004) Afghanistan adopted its firstconstitution in 30 years, which laid the politicaland development foundation for thecountry and established legal protectionsfor private property and a market economy.• Free and fair democratic elections for President,the National Assembly and ProvincialCouncils were conducted. 76 percentof eligible voters participated in the presidentialelection. Women were elected to 27Introduction 1

percent of the seats in the National Assembly.• After the successful completion of the BonnAgreement, Afghanistan and the internationalcommunity entered into a new partnership,based upon the Afghanistan Compact,which was agreed at the London Conferenceof 1384 (2005). The Compact setambitious goals for comprehensive statebuilding, setting benchmarks in all sectorsof security, governance, and development,including the cross-cutting goals ofcounter-narcotics and regional cooperation.• In 1385 (2006) the new National Assemblybegan its work, including the approval of anew cabinet; a new Chief Justice and otherjudges for the Supreme Court; and the NationalBudget. A new Attorney Generalwith a new mission to fight corruption wasappointed. New Provincial Governorswere named.• The disarmament, demobilization and reintegrationof ex-combatants has been completed.Today the national army and policeforces are close to full strength. Afghanistanis no longer a safe haven for terrorists.Social and Humanitarian Achievements:• Since 1381 (2002), more than five millionAfghan refugees have returned home. In1385 (2006) 342,925 Afghan refugees returnedfrom Pakistan and Iran and 1,004from other countries. More than 150,000benefited from the assistance package providedby UNHCR.• The Government has so far distributed30,000 residential plots of land to needy returningrefugee families.• From under one million in 2001 the schoolpopulation has grown to 5.7 million in 2007and new enrolments into Grade 1 haveranged between 12-14 percent per annumin the last 5 years. Two million of the children(or 35 percent) enrolled are girls – a 35percent increase in five years. The numberof schools has trebled to 9,062 in 2007 including1,337 all girls’ and 4,325 coeducationalschools. Similarly, the numberof teachers has increased seven-fold to142,500 of who nearly 40,000 are female.Fifty thousand of these teachers have receivedin-service teacher training.• Major advances have been made in extendinghealth care services throughout thecountry and rebuilding a decimated educationalsystem. The percentage of the populationliving in districts where the BasicPackage of Health Services is being implementedhas increased from 9 percent in2003 to 82 percent in 2006.• Over 2.5 million people have benefitedfrom social protection arrangements covering(i) martyr’s families; (ii) disabled withwar-related disabilities; (iii) orphans andchildren enrolled in kindergartens; (iv) victimsof natural disasters; (v) pensioners;and (vi) unemployed.• Measurable progress has been achievedsince 2003 in improving rural livelihoods.Almost 20,000 km of rural access roads (i.e.,all weather, village-to-village and villageto-districtcentre roads) have been constructedor repaired, increasing access tomarkets, employment and social services.More than 500,000 households (36 percentof villages) have benefited from small-scaleirrigation projects. Currently, 32.5 percentof the rural population has access to safedrinking water and 4,285 improved sanitationfacilities have been provided. Morethan 336,000 households have benefitedfrom improved access to financial services.Some 18,000 CDCs have been establishedand are implementing community-led developmentprojects. Efforts have made toassist the poorest and most vulnerable.Economic Achievements:• Macroeconomic stability has been maintained,based upon disciplined fiscal andmonetary policies. A new unified currencywas successfully introduced; inflation hasremained low while the exchange rate hasbeen stable.• Sixteen private commercial banks havebeen licensed; a leasing and financingcompany is operating; an equity fund isunderway to invest in local businesses.There are also thirteen microfinance insti-2Afghanistan National Development Strategy (ANDS)

tutions providing services to almost200,000 active clients in 27 provinces.• State owned enterprises are being privatized,corporatized or liquidated.• A lively free and privately owned mediahave developed and over which people areable to express political views freely –which they do daily.• The legal and commercial infrastructure isbeing put in place for a market orientedeconomy.• Electricity capacity has almost doubledcompared to 2002.• Over 12,000 kilometers of roads have beenrehabilitated, improved, or built. This includesthe ring road system, national highways,provincial roads and rural roads.• Kabul International Airport has been expandedand extensively rehabilitated.• Private airlines have entered the aviationsector and established air links throughoutthe region.• A key bridge investment has opened updirect road links to Tajikistan and greatlyreduced transportation times through toUrumqi in China, one of the fastest growingtrade hubs in the world.• Two million urban residents have benefitedfrom investments in water supply and 12percent from investment in sanitation inmajor cities between 2002 and 2007.• About 35,000 water points 59 networks and1,713 water reservoirs and 23,884 demonstrationlatrines have been constructed.• More than three million people have benefiteddirectly from the rural water supplyand sanitation activities in the country.• Around a third of the provinces reportedsome improvement in access to cleandrinking water during the consultativeprocess under the ANDS.• Irrigation Rehabilitation has been givenhigh priority over the past four or fiveyears. Of some 2,100 rehabilitation projects,approximately 1,200 have been completedand have been placed back intocommercial service.• Major advances have been made in openingup the telecommunications sector toprivate sector investment under a ‘investmentfriendly’ regulatory frameworkaimed at maintaining a competitive marketfor services, and phone subscribers haveincreased from less than 20 thousand tomore than 5 million in less than 6 years.• A rapid urbanization process has seen theurban population increase to almost aquarter of the total population. Despite thepressures implied by rapid urbanization,two million urban residents (31 percent ofthe total urban population) have benefitedfrom investments in water supply and 12percent from investment in sanitation inmajor cities between 2002 and 2007.• Afghanistan has world class mineral depositsthat are being opened up for explorationand development. The first majorinvestment has recently been announcedfor developing the Aynak copper depositsin central Logar province, an almost $3 billioninvestment after an extensive evaluationof tenders from nine major internationalmining companies.When seen against the desperate conditionsthat prevailed in the country in 2001, theseachievements constitute an impressive record.The ANDS sets goals for the next five years thatwill require even greater achievements.AFGHANISTAN’SCHALLENGESFew countries have simultaneously faced therange and extent of challenges with which thepeople and Government of Afghanistan mustnow contend. After nearly three decades ofcontinuous conflict the country emerged in late2001 as a truly devastated state with its human,physical and institutional infrastructure destroyedor severely damaged. At that time theUN Human Development Report ranked Afghanistanas the second poorest country in theWorld. In addition to the widespread poverty,the Government must deal with continuingthreats to security from extremists and terrorists,weak capacity of governance and corruption;a poor environment for private sector investment,the corrosive effects of a large andgrowing narcotics industry; and major humanIntroduction 3

capacity limitations throughout the public andprivate sectors. Meeting these challenges andrebuilding the country will take many yearsand require consistent international support.The successful transformation of Afghanistaninto a secure, economically viable state that canmeet the aspirations of the Afghan people, liveat peace with itself and its neighbors and contributeto regional and international stabilitywill depend upon the effective utilization of allavailable human, natural and financial resources.In this partnership a critical role mustbe played by the private sector. Significantlyreducing poverty will require substantially increasingemployment which depends on maintaininghigh rates of economic growth in theyears ahead. It is not sufficient to rely on theGovernment and the international communityto sustain the high rates of investment neededto generate the levels of employment to have amajor impact on reducing poverty. As themacroeconomic projections presented in Chapter4 indicate, a substantial increase in privateinvestment will be essential if significant progressis to be realized in meeting the social andeconomic objectives of the country.Afghanistan is a country with significant potentialfor economic development. It has substantialwater, agricultural and mineral resourcesand is well positioned to become atrade and business hub linking the markets ofCentral Asia, the Middle East, South Asia andChina. The potential exists or sustainable economicgrowth in the future. However, thereare a number of fundamental limitations in theeconomic environment that must be addressedif these efforts are to succeed:• The country’s ‘hard infrastructure’, includingroads and reliable supplies of waterand power, is inadequate to support rapidand sustained economic growth.• The corresponding ‘soft infrastructure’,which includes the human and institutionalcapacity necessary for an economy to function,is also extremely limited. Considerableemphasis is being given to developingcapacity in both the public and private sectorsand to institutional development, butthese efforts will take time.• Economic governance is weak. The Governmentis pursuing comprehensive economicreform, including the introductionof new commercial laws and regulations,but the establishment of institutionsneeded for effective implementation andenforcement are largely lacking and willtake years to develop.1• Afghanistan’s commercial connections toregional and global economies were severelydisrupted and must be redeveloped.The development of a competitive privatesector will depend on establishing access toforeign markets and developing viable exportactivities.• Critical markets for land and finance arelargely undeveloped, limiting the ability ofprivate investors to establish and operatebusinesses. Property rights are often contestedor difficult to defend.• Afghanistan is experiencing high population.Continued rapid population growthwill substantially increase the levels of investmentthat will be required to substantiallyreduce poverty.Both the Government and the internationalcommunity recognize that prolonged aid dependencywill undermine the chances ofachieving sustained economic growth and povertyreduction. However, given the major limitationsin the economic environment that mustbe addressed, the successful transition to acompetitive market economy will require sustainedcommitment by the Government, withthe support of the international community.Simply creating conditions in which the privatesector can operate alone will not be sufficient.Increased efforts by both the Government andthe donor community to attract Afghan andforeign investors are needed if the goals of theANDS are to be realized.Social and economic development will also beseverely curtailed if the insecurity that prevailsis not resolved. Despite the considerable effortsby the Government and the international com-1 Many of the government’s initiatives in this area are describedin “A Policy for Private Sector Growth and Development” presentedat the Enabling Environment Conference, Kabul, June2007.4Afghanistan National Development Strategy (ANDS)

munity, security has steadily deteriorated since2004 in some parts of the country. Ongoingcross-border activities, particularly in thesouthern and southeastern provinces, have resultedin several areas being effectively off limitsto meaningful development assistance.The lack of stability reduces the ability of aidagencies and the Government to operate inmany areas and to effectively implement projectsand programs. The impacts of these limitationstypically fall most heavily on the poor.Insecurity also increases the cost of doing businessand undermines private sector growthand development. 2 The difficulties in maintainingsecurity contribute significantly to twoclosely related issues: increasing corruption inthe public sector and the rapid growth of thenarcotics industry. There is a consensus thatcorruption in Afghanistan is widespread andhas been getting worse. 3 Public corruptionrepresents a major disincentive for private investment,substantially increasing the costs andrisks of doing business. A lack of security insome parts of the country has created conditionsin which poppy cultivation has flourished,feeding a growing narcotics industrythat both funds terrorist activity and feeds publiccorruption. Although poppy cultivation hasbeen greatly reduced in 29 of the 34 provinces,in the remaining five it has seen explosivegrowth to where Afghanistan accounts foraround 90 percent of the world’s opium production.INTERNATIONAL SUPPORTFOR AFGHANISTANAfter the fall of the Taliban, the internationalcommunity’s response was not only militarybut also began to provide Afghanistan with theinstitutional and financial resources to start thestate building process. In 2006, the AfghanistanCompact agreed between the Governmentand international community established goalsfor state building, setting benchmarks in coresectors of security, governance, and development,including the cross-cutting goals ofcounter-narcotics. To implement its obligationsunder the Afghanistan Compact, the Governmentdeveloped the Afghanistan National DevelopmentStrategy (ANDS) to clarify existingconditions, establish objectives and define thepolicies, programs and projects needed toachieve those objections. The internationalcommunity made new pledges of financial andsecurity assistance and set out to improve itscoordination by renewing and upgrading theUN Assistance Mission for Afghanistan(UNAMA), headed by a Special Representativeof the Secretary General with enhanced powersfor coordination. 4The ANDS represents an important milestonein the efforts to rebuilding of Afghanistanwhich has been underway since late 1380(2001). During this time there have been anumber of reports, conferences and strategiesdeveloped to address Afghanistan’s challenges.5 In addition, the Government and theinternational community have entered into aseries of agreements concerning the directionand support for the country’s developmentefforts, including notably the Bonn Agreement,the commitment to the Millennium DevelopmentGoals (MDGs) and the AfghanistanCompact. The ANDS builds on all of these andprovides a comprehensive and integrated strategythat reflects recent experience and currentconditions.THE AFGHANISTANNATIONAL DEVELOPMENTSTRATEGYThe Afghanistan National Development Strategy(ANDS) represents the combined efforts ofthe Afghan people and the Afghan Governmentwith the support of the internationalcommunity to address the major challengesfacing the country. To comprehensively ad-2 For example, the World Bank “Investment Climate Assessment”reported that companies are typically spending as much as15 percent of total sales on security costs.3 For example, in the 2005 Transparency International “CorruptionPerceptions Index” Afghanistan ranked 117th (of 158); twoyears later the country was ranked 172nd (of 179).4 Afghanistan has also placed special emphasis on good relationswith its neighbors, particularly Pakistan. The two countries conveneda joint Peace Jirga in August 2006, and Afghanistan looksforward with hope and optimism to enhanced cooperation withPakistan.5 Details for many of the key documents can be found in thebibliography.Introduction 5

dress the security, governance, and developmentneeds of Afghanistan, the governmenthas developed the ANDS. The ANDS reflectsthe government’s vision, principles and goalsfor Afghanistan which builds on its commitmentto achieve the Millennium DevelopmentGoals by 2020 and the implementation of theAfghanistan Compact benchmarks. The strategyis based upon an assessment of currentsocial and economic conditions; offers clearintermediate objectives; and identifies the actionsthat must be taken to achieve these nationalgoals. The ANDS largely focuses on thenext five years, but reflects Afghanistan’s longtermgoals which include the elimination ofpoverty through the emergence of a vibrantmiddle class, an efficient and stable democraticpolitical environment and security throughoutthe country.Despite the full commitment of the Governmentand the considerable assistance beingprovided by the international community, itwill not be possible to fully achieve all of theseobjectives during the next five years. Thereforeit is essential that well defined priorities be establishedthat reflect the relative contributionsof potential policies, programs and projectstowards reaching these goals. This is a difficultprocess. The contribution of any project to increasingeconomic growth is uncertain and isinevitably contingent on progress in other areas.It also requires a careful analysis of benefitsversus costs with alternative allocations ofresources. As a result, the prioritization of activitiesshould be seen as an ongoing processthat adapts to changing circumstances and theresults of program and project appraisal workon alternative use of resources. In meeting thischallenge, the ANDS aims to establish institutionalmechanisms that will include the Afghanpeople, the Government, civil society and theinternational community in identifying prioritiesin an evolving environment.A comprehensive ‘bottom-up’ approach wasused in the development of the ANDS that hastaken into account all aspects of social and economiclife as well as fully reflecting the diversityof people in all parts of the country. Considerableefforts were made to ensure that subnationalconsultations (i.e., outside of the centralgovernment in the capital Kabul) identifiedthe priorities of the Afghan people living ineach of the 34 provinces. 6 In addition, a comprehensiveseries of sector and ministry strategieswere developed that address all aspects ofsocial and economic development. The resultof this inclusive process is a national strategythat is fully reflective of the aspirations of theAfghan people. The ANDS is the product ofextensive consultations at the national, provincialand local levels. The Government is committedto programs and projects that directlytarget the poorest and most vulnerable groupsfor assistance. Well targeted poverty reductionsprograms are emphasized both in the strategyfor social protection and integrated into thedesign of strategies across the other sectors ofthe economy.The remainder of the ANDS is organized asfollows:• Chapter 1: provides an overview of theANDS• Chapter 2: explains ANDS extensive participatoryprocess to ensure ownership• Chapter 3: presents the poverty profile ofthe country, a key foundation for ANDS’spolicy based on evidence approach• Chapter 4: presents the macroeconomicframework for the economy. It discussesthe policies intended to maintain economicstability, the initial planning on resource allocationsfor the ANDS period and the totalresources available for the implementationof public sector programs and projectsthrough the external and core budgets.• Chapter 5: presents the strategies and prioritiesrelating to Security pillar• Chapter 6: presents the strategies and prioritiesrelating to Governance, Rule of Law,Justice and Human Rights pillar.• Chapter 7: presents the sector strategiesand priorities relating to Economic and SocialDevelopment pillar. This addressesprivate sector development, energy, transport,mining, education, culture, youth andmedia, agriculture and rural development,public health, social protection and refu-6 The Provincial Development Plans (PDPs) that were developedas part of this process are presented in ANDS Volume III.6Afghanistan National Development Strategy (ANDS)

gees, returnees and internally displacedpersons.• Chapter 8: discusses critical cross-cuttingissues that have impacts across all sectors.These include regional cooperation,counter-narcotics, anti-corruption, genderequality, capacity building and environmentalmanagement.• Chapter 9: discusses aid effectivenessmeasure that needs to be taken jointly bythe Government and the internationalcommunity• Chapter 10: discusses the integrated approachimplementation framework ofANDS• Chapter 11: discusses monitoring, coordinationand evaluation requirements of theANDSVolume II: includes 17 sector strategies, 6strategies for cross cutting issues and 38 individualministry and agency strategies.Volume III: discusses the participatory processused in developing the ANDS, 34 ProvincialDevelopment Plans and development priorities.Introduction 7

PART IPROCESS, GOALSAND POLICYDIRECTIONS

CHAPTER 1THE ANDS: AN OVERVIEWThe overriding objective of the ANDS is to substantiallyreduce poverty, improve the lives ofthe Afghan people, and create the foundationfor a secure and stable country. This requiresbuilding a strong, rapidly expanding economyable to generate the employment opportunitiesand increasing incomes essential for povertyreduction. The ANDS establishes the Government’sstrategy and defines the policies, programsand projects that will be implementedover the next five years and the means for effectivelyimplementing, monitoring and evaluatingthese actions. The goals included in theANDS are fully consistent with the commitmentsentered into in previous strategies andagreements and build on the considerable progressthat has been achieved since 1380 (2001).While focus of the ANDS is on the next fiveyears, it will continue to adjust to changing circumstances– it is intended to be a ‘livingdocument’.The ANDS serves as the country’s Poverty ReductionStrategy Paper (PRSP). As such, it establishesthe joint Government/internationalcommunity commitment to reducing poverty;describes the extent and patterns of povertythat exist; presents the main elements of itspoverty reduction strategy; summarizes theprojects and programs that will assist the poor;and provide a three-year macroeconomicframework and three-year policy matrix relevantto the poverty reduction efforts. ThePRSP has been prepared based on an inclusiveconsultative process to ensure broad participationand support, while also ensuring policiesare based on evidence. A public policy dialoguewith all key stakeholders was carried outacross all provinces, allowing government officials,private sector representatives, NGOs, themedia and ordinary citizens an opportunity todiscuss local conditions and concerns. Thisallowed these communities to participate effectivelyin defining the poverty problem as theyexperience it. In so doing, a broader choice ofpoverty actions based on the specific concernsof the poor have been established for eachprovince, as well as each district.Key issues identified by stakeholders included:(i) the lack of access to clean drinking water inall provinces; (ii) the needed improvement inprovincial roads; (iii) the poor quality of publicservices; (iv) poorly trained teachers and doctors;(v) the lack of alternatives to poppy cultivation;(vi) the lack of vocational training forreturnees and disabled people; (vii) poor accessto electricity; (viii) corruption within the publicadministration particularly respect to the securityservices. The Government has examined arange of poverty actions based on the specificconcerns of the poor including vulnerability,conflict sensitivity, insecurity and governance.The ANDS lays out the strategic priorities andthe policies, programs and projects for achievingthe Government’s development objectives.These are organized under three pillars: (i) Security;(ii) Governance, Rule of Law and HumanRights; and (iii) Economic and Social Development.SECURITYSecurity and stability in all parts of the countryis essential for economic growth and povertyreduction. Afghanistan still faces a number ofserious challenges before it can assume full responsibilityfor this. International terroristsand domestic extremists prevent the Governmentfrom establishing effective control insome areas, particularly in the south and southeast.The large-scale production of narcoticscontinues to provide funds to these groups.Unexploded ordinance remains a significantthreat to Afghans, with some five thousandcitizens either killed or wounded in mine explosionssince 1380 (2001). Currently only twoThe ANDS: An Overview 5

of the country’s 34 provinces are completelyclear of land mines. A long standing presenceof illegal armed groups in different parts of thecountry is hindering the process of empowermentof local democratic institutions. Some ofthese groups have close links with police oreven belong to local governments. This situationenhances corruption and is considered akey obstacle in cracking down the narcoticsindustry.The Government is fully committed to, and isgiving the highest priority, to successfully: (i)implementing an integrated and comprehensivenational security policy and strategy; (ii)building a robust security sector reform program;(iii) strengthening civil and military operationsand coordination; (iv) increasing therole of security forces in counter-narcotics activities;and (v) strengthening the civilian componentsof security entities. Detailed Compactbenchmarks have been established to measureprogress in improving capacity within the securityorganizations and improving security.Significant progress has been made since 2001in strengthening the ANA and ANP. For example,militias have been integrated into theMinistry of Defense (MoD), with the majoritydemobilized. A multi-sector donor supportscheme has been established where individualdonors are allocated responsibility for overseeingsupport for each of the key elements of thereform, including: disarmament, demobilization,and reintegration of ex-combatants; militaryreform; police reform; judicial reform; andcounter-narcotics. The ANP has been receivingextensive training and equipment from the internationalcommunity.GOVERNANCE, RULE OFLAW, JUSTICE AND HUMANRIGHTSIn 2000 the World Bank assessed the ‘quality’ ofAfghanistan’s governance institutions as fallingin the bottom one percent of all countries. Progresssince 2001 includes the adoption of theconstitution; successful parliamentary andpresidential elections, and progress in improvingthe livelihood and welfare of women andother disenfranchised groups. Despite someprogress, a number of significant issues mustbe addressed, including: (i) the existence ofmultiple and often parallel structures of stateand non-state governance entities; (ii) the confusionover core centre-periphery administrationand fiscal relations; (iii) weak public sectorinstitutions and underdeveloped governanceand administrative capabilities; (iv) high levelsof corruption; (v) fiscal uncertainty; (vi) weaklegislative development and enforcement; (vii)weak political and parliamentary oversightcapacities; (viii) weak community and civil societyinstitutions; (ix) limited capacity in a justicesystem; (x) gender inequality; and (xi) underdevelopedhuman rights enforcement capacities.If significantly improved governance is notrapidly achieved it will be difficult to makesubstantial progress with respect to securityand economic development. An emerging politicaland administrative vacuum will be filledby non-state structures driven by illegal andnarcotic interests, not by the Government.Religious affairsThe Government will focus on the followingpriorities: (i) to improve infrastructure for religiousaffairs, such as mosques, shrines, holyplaces, and religious schools; (ii) improve thetraining and capacity of Imams, preachers, religiousteachers and other scholars to raise publicawareness and to teach; (iii) finalize a comprehensiveculture curriculum for primary andhigher education; (iv) strengthen Hajj arrangementsystems for Afghan pilgrims; (iv) supportefforts by religious organizations to help alleviatepoverty and protect vulnerable groups; (v)support efforts of the other government agenciesto improve literacy, dispute resolution andto contribute to strengthening of the nationalsolidarity. The expected results include: (i) reformsimplemented in line with Islamic values;(b) improved infrastructure and financial sustainabilityof religious affairs, particularly ofthe religious education system; (iii) greater participationof Islamic scholars in raising awarenessabout importance of implementation ofkey reforms; (iv) a greatly strengthened role ofthe religious institutions in programs for povertyreduction.ECONOMIC AND SOCIALDEVELOPMENTThe economic and social development strategy,vision, objectives and expected outcomes have6Afghanistan National Development Strategy (ANDS)

een prioritized within the overall macro-fiscalframework to allow a logical progression ofinvestments that systematically overcome thecore binding constraints to growth and socialdevelopment. An integrated approach focusesinvestments through the sector strategiessummarized below. The sector strategies weredeveloped based on strategies first put forwardby individual ministries and groups of ministries.Although Ministry strategies were thestarting point, the sector strategies are broaderthan those of the ministries for several veryimportant reasons. First, the sector strategies inmany cases involve actions and programs thatneed to be undertaken by several ministries.Considerable attention has therefore beengiven to developing better coordination betweenministries through Inter-MinisterialCommittees. The sector strategies have alsotaken account of donor activities being implementedoutside of ministries and informed bythe Provincial Development Plans (PDPs). Thesuccess of the sector strategies will be heavilydependent on resource effectiveness, revenueenhancement and fiscal sustainability, humanand natural resource development and investmentsin productive and trade-based infrastructureand private sector driven development.Private Sector DevelopmentThe ANDS strategic objective is to enable theprivate sector to lead Afghanistan’s developmentwithin a competitive market-based economyin which the Government is the policymaker and regulator of the economy, not itscompetitor. The establishment of a strong enablingenvironment for a competitive privatesector is an on-going effort by both the Governmentand donors. Almost all sector strategiesinvolve the development of new legislation.The Government will enact and implementkey laws and amendments to establishthe basic legal and regulatory framework thatwill encourage private sector involvement insocial and economic development. Almost allsector strategies involve institutional strengtheningthat is designed to improve the ability ofministries and other agencies to administer legislationin an unbiased and predictable manner.Privatization and corporatization of stateowned enterprises is an on-going program thatis on schedule. It represents an important stepin expanding the scope for private sectorgrowth and development. These steps will: (i)improve general levels of efficiency in theeconomy; (ii) assist in eliminating corruption;(iii) encourage better resource allocation, and(iv) generate increased government revenues.An open trade policy will facilitate a competitiveenvironment for private sector development,avoid the high costs incurred with protectionistpolicies and facilitate Afghanistanbecoming better integrated as a ‘trading hub’ inthe region. Any proposals to provide protectionto particular industries will be evaluatedwith a proper ‘economy wide’ perspective thatfully accounts for the costs and benefits fromsuch actions, including the negative impacts onother firms and on the consumers who mustpay higher prices. Increased priority will begiven to regional economic cooperation initiativesaimed at developing regional transportationand transit infrastructure, facilitating regionaltrade and investment flows and developingAfghanistan as a regional business hublinking Central and East Asia with the MiddleEast and South Asia.A second major component of the private sectordevelopment strategy attempts to encourageincreased private sector investment by creatinginvestor friendly regulatory frameworksfor private sector operations in the developmentof natural resources and infrastructure.This approach has been very successful in thetelecommunications sector, where phone usagewent from less than 15,000 under a state monopolyto over five million subscribers as privateinvestments in cellular communicationwere encouraged. Significant initiatives areincluded in the sector strategies for energy,mining and agriculture based on leased accessto state lands to strengthen these investorfriendly regulatory frameworks, and pilot projectsand innovative initiatives are being investigatedto allow public funding to support privatesector activities in the provision of educationservices, vocational training and publichealth services.A third and closely related component of thestrategy is based on a concerted effort by theGovernment and the donor community tomore vigorously promote private sector investment.Given the limited capacities in thepublic sector and in the nascent domestic privatesector, much of this effort will focus ontrying to encourage foreign firms with the ex-The ANDS: An Overview 7

pertise, ability to manage risk and access tofinancial resources to take advantage of themany opportunities that exist for investment inAfghanistan. Efforts at investment promotionwill be designed to convince these investorsthat they are both needed in Afghanistan andthat they will be able to operate profitably withfull government support consistent with maintaininga competitive environment.EnergyThe ANDS strategic objective for the energysector strategy is an energy sector that providesreliable, affordable energy increasingly basedon market-based private sector investment andpublic sector oversight. The immediate task ofthe ANDS strategy, with assistance from thedonor community, is to expand energy availabilityat a price that covers cost (for all but thepoorest members of society) and to do so in themost cost effective manner. The Governmentwill also take steps to provide the basis for thetransition of the sector from public provision toprivate provision of electricity. As the Afghanenergy sector moves from primarily stateowned operations to a more private marketorientation, new institutional arrangementswill be established.Until recently a focus in the energy sector hasbeen on using donor funds and contractors torehabilitate and expand the infrastructure ofthe government-owned electric companyDABM, with virtually no attention being givento establishing an enabling environment thatwould promote increased private investment inthe sector. This will change with a major effortto set up a transparent regulatory frameworkand a pricing system that is designed to encourageprivate sector investment in the sector.A new market oriented paradigm, significantinstitutional changes and considerable capacitydevelopment will be established under guidancefrom the Inter-Ministerial Commission forEnergy (ICE). Streamlined government oversightand greater reliance on private sector investmentis essential. As the energy line ministriesshift from operating as production-basedinstitutions to becoming policy making regulatoryagencies, staff capacity and in-house functionswill be reoriented to market practices.The Government will assess its sector assetsand establish a plan for liquidation, restructuringand commercialization or sale. In particularthe Government will provide more supportfor the corporatization and commercializationof national power operations. All these effortswill occur even while donor funded projectscontinue to work to relax the severe constraintsin the energy and power sectors, but will laythe framework for a shift to a more commercialenergy system in the coming years..MiningWhile geological studies of Afghanistan havebeen conducted over the last 50 years, due topolitical, social and economic factors, 90 percentof the territory of Afghanistan has notbeen systematically studied. However the limitedresults have been highly promising withover 400 mineral occurrences having been identified,including Aynak copper, coal and anumber of small and medium mines such asgold, silver, platinum, zinc, nickel, emerald,lapis, ruby, canset, tourmaline, fluorite, chromate,salt, radioactive elements and numerousdeposits suitable for construction materials.The availability of significant oil and gas fieldsin Afghanistan has been well known for almost50 years.The ANDS strategic objective in the miningsector is to encourage legitimate private investmentin the sector so as to substantiallyincrease government revenues, improve employmentopportunities and foster ancillarydevelopment. Implementation of the strategywill help to develop effective market-basedeconomy sector policies, promote and regulatesustainable development of minerals and ensurethat the nation’s geological resources areprogressively investigated and developed. TheMinistry of Mines is making the transition frombeing primarily a producer of minerals andother commodities to a policy making andregulatory institution. For mining and minerals,the emphasis is on the exploration, extractionand delivery to market; for hydrocarbonsthe emphasis is exploration and development.There is a great potential for the mining sector.The test will be in moving quickly from thesuccess in attracting investment in the Aynakcopper deposits to the development and explorationof the many other mineral resources ofthe country.8Afghanistan National Development Strategy (ANDS)

Water ResourcesAgriculture accounts for 95 percent of waterconsumption. In the 1970s, some 3.3 millionhectares were cultivated using various irrigationmethods. However, because of civil conflictand drought, at present only about 1.8 millionhectares of land are being irrigated. Ofthis, only ten percent is being irrigated usingproperly engineered systems with the remainderdependent on traditional irrigation methods,some of these based on run-offs from oruse of aquifers that are being degraded by deepwater wells and insufficient investment in rechargebasins. Significant donor funded investmenthas gone into rehabilitating damagedor degraded irrigation systems, but little hasbeen done in terms of making new investmentsthe structures needed to increase efficiency inwater use. There is a lack of resources neededto improve water management, including alack of skilled human resources. Informationsystems are now being reconstituted, but thereis a lack of reliable hydrological, meteorological,geo-technical and water quality data. Theinfrastructure and equipment needed to efficientlyconserve and utilize water resources isinsufficient. There are limited data on groundwater resources and information indicatingthat un-regulated deep well drilling may bedepleting aquifers that are essential to watersupplies and traditional irrigation systems (Karezesand springs). There is a lack of economicmechanisms regulating water use and investmentsfor water supply, sanitary systems, irrigation,and hydropower generation.The efficient management of Afghanistan’s waterresources is essential for social and economicdevelopment and is an area where thereis a great need for public sector involvement.Both government and donor efforts have under-investedin better water resource managementthat will have a major impact on the productivecapacity of the economy and the livesof the people. Within the water resources sector,feasibility studies will be completed andinvestments will be made in the needed storagefacilities, recharge basins, multi-purpose dams,irrigation systems required to improve watersector management for both agricultural andnon-agricultural uses. These efforts will augmenton-going efforts to rehabilitate and improvemanagement in existing systems. Overtime there will be a movement away from aproject by project focus on rehabilitation to anIntegrated Water Resource Management(IWRM) system geared to the five major riverbasins in the country, with an eventual devolutionof responsibilities down to independentRiver Basin authorities.TransportThe ANDS strategic goal for the transport sectoris to have a safe, integrated transportationnetwork that ensures connectivity and that enableslow-cost and reliable movement of peopleand goods domestically as well as to and fromforeign destinations. The strategy will contributeto achieving the following targets establishedin the Afghanistan Compact. (i) Afghanistanwill have a fully upgraded andmaintained ring road, as well as roads connectingthe ring road to neighboring countries byend-2008 and a fiscally sustainable system forroad maintenance by end-2007; (ii) By end-2010, Kabul International Airport and HeratAirport will achieve full International CivilAviation Organization compliance; Mazar-i-Sharif, Jalalabad and Kandahar will be upgradedwith runway repairs, air navigation,fire and rescue and communications equipment;seven other domestic airports will beupgraded to facilitate domestic air transportation;and air transport services and costs will beincreasingly competitive with internationalmarket standards and rates; and (iii) By end-2010 Afghanistan and its neighbors willachieve lower transit times through Afghanistanby means of cooperative border managementand other multilateral or bilateral tradeand transit agreements.The Government continues to give high priorityto rehabilitate a badly damaged road system.This includes: (i) completion of a fullyupgraded and maintained ring road and connectorroads to neighboring countries, (ii) improving5,334 km of secondary (national andprovincial) roads and (iii) improving andbuilding 6,290 km of rural access roads as a keyto raising rural livelihoods and reducing povertyand vulnerability in rural areas. Betterrural roads will improve market access andopportunities for rural households. The actualallocation of resources amongst these three areasof planned activity will depend on the estimatedrates of return from analysis of proposalsput forward for funding by the internationalcommunity or by the ministries involvedin implementing the transport sector strategies.The ANDS: An Overview 9

A Transport Sector Inter-Ministerial WorkingGroup will be formed that will coordinate theministries in the sector to assure that investmentsare properly coordinated to obtain thehighest returns and greatest impact on the povertyreduction goals. Careful considerationwill be given to increasing employment opportunities,and assuring that the local resources orfunds channeled through local communitiesare effectively used to maintain the rural roadsestablished as part of this strategy.Information and CommunicationsTechnologyIn early 2003, Afghanistan had fewer than15,000 functioning telephone lines for a populationof approximately 25 million, one of thelowest telephone penetration rates in theworld. The Government with donor assistanceadopted major policy reforms for the ICT sector,moving rapidly to establish the legalframework and regulatory arrangements topromote private sector investment, resulting ina competitive environment and the rapidgrowth of mobile phone use from almost nothingto a present subscriber base of over fivemillion. This development is one of the majorsuccess stories of in the implementation of theprivate sector based development strategy.Greater efforts will be made during ANDS periodto adopt a similar investor friendly regulatoryframework for development of naturalresources and infrastructure. With respect totelecommunications, the ANDS strategic objectiveis to expand access to mobile phone serviceto 80 percent of the country and greatly increaseaccess and use of the internet by consumers,the private sector and the Government.Urban DevelopmentThe ANDS strategic objective for urban developmentis to greatly improve the managementof urban areas through a devolution of authorityand responsibilities to municipalities in away that improves urban infrastructure andservices, reduces urban poverty and allowsurban residents to live safe, healthy and productivelives and cities to grow and prosper.Effective management of the rapid urbanizationprocess will make a significant contributionto the recovery of the country. As of 2005nearly a quarter of Afghanistan’s populationlived in urban areas. Outcomes will include: (i)strengthened municipal capacity to manageurban development and deliver services; (ii)improved institutional coordination and monitoringof key urban indicators; (iii) increasedaccess to basic services for urban households;(iv) phased regularization of tenure for 50 percentof households living in informal settlements;(v) upgrading public services and facilities,including new urban area development;(vi) increased availability of affordable shelter,including a 50 percent increase in numbers ofhousing units and 30 percent increase in area ofserviced land on the market, coupled with accessto affordable finance; and (vii) improvedurban environment with green areas and openspacesMore is now being done under the ANDS todevolve authority to municipalities. The urbandevelopment strategy is designed to improveurban governance through: (i) decentralization,participatory processes, market-based approaches,and improved regulations; (ii) capacitybuilding at all levels of urban governance;(iii) establishing a clear national land policy,including urban informal settlement policy; (iv)improved revenue generation in cities throughdirect cost recovery for and economic pricing ofurban services, property-based taxes, and useof computer systems; (v) expanding urban upgradingpilots, including phased regularizationof informal settlements, and programs to meetthe immediate housing, tenure security andservice needs of the poor and vulnerable people;(vi) increasing the supply of serviced landby developing new urban areas, especiallywithin the cities, to meet the present and futurehousing needs of the people; (vii) improvingcity-wide basic infrastructure and services, inparticular water supply, sanitation, roads andgreen areas; and (viii) rehabilitation of urbanheritage facilities and sites.EducationEfforts to improve education, which started in2002, were focused on getting 1.5 million childreninto the primary/secondary school system.There are now over 6 million children atprimary and secondary school. In additionuniversities have reopened and there are increasingopportunities for vocational training.There are now 52,200 students at higher educationinstitutions. Although the expansion ofeducation has been impressive, there is an urgentneed to improve the quality of education.10Afghanistan National Development Strategy (ANDS)

This is one area where programs designed tomeet benchmarks defined in terms of enrolmentor coverage fail to give adequate considerationto the quality of the service being provided.Increased priority will be given toteacher training and other mechanisms to encourageprivate sector investment in educationalactivities.Vocational training will become an increasingfocus of attention. There is an urgent need toaddress problems in the vocational educationsector that include staff shortages, overbuilding,lack of standardization in training courses,and qualifications that are difficult for potentialemployers to assess. A new organization, theNational Vocational Education and TrainingAuthority (NVETA), will be established andwill: (i) manage, but not operate, all vocationaltraining institutions; (ii) set minimum corecompetencies for courses, carry out accreditation,and inspect vocational institutions, to ensurethat they meet minimum standards; and(iii) call for tenders by ministries or by the privatesector to operate vocational training facilitiesowned by the Government.The potential role of the private sector has beenexpanded considerably in this strategy. In theprimary and secondary education area therewill be an expansion in private and NGOschools, encouraged by a more accommodatingregulatory environment. In higher educationthe university cooperation plans that have alreadycommenced will allow universities inAfghanistan to interact and be supported byrecognized foreign universities. NVETA willcontract with private sector groups or NGOsfor provision of educational services. Someareas will be left to the private sector, includingpreschool education.Culture, media and youthThe ANDS strategic objective for this sector is:(i) to create awareness and foster a sense ofpride in the country’s history, future, cultureand achievements; (ii) to document and preservecultural artifacts and heritage sites; (iii) toensure an independent and pluralistic mediathat contributes to an open and democratic society;and (iv) to foster a sense of confidenceamong the young that they can contribute toand benefit from a stable and prosperous thecountry. An accessible and well maintainedcultural artifacts data base and the cultural artifactscollection held by the Ministry will be expanded.In the longer term, museums will beestablished and or expanded and historical orheritage sites will be protected. Media legislationwill be enacted to provide a stable andpredictable environment in which a largelyprivately run and independent media can operate.Media will be employed as an educationaltool in addition to entertainment. Keypriorities include a country-wide coverage ofpublic Afghan media (radio and television), anincreased number of hours of public broadcasting,and improved quality of programming. Atthis stage in its post-war development, stateownedmedia will be used to promote and conveyinformation on gender policies, publichealth and national security. Extensive reformshave been introduced within the educationstrategy that is designed to assist youth. Theseinclude expansion of the education system; rehabilitationprograms for young people whoseeducation may have been limited because ofthe security situation; and reforms to vocationaleducation to provide youth with marketableskills and better employment opportunities.Health and nutrition sector strategyBy all measures, the people of Afghanistan sufferfrom poor health. The country’s health indicatorsare near the bottom of internationalindices, and fare far worse, in terms of theirhealth, than any other country in the region.Life expectancy is low, infant, under-five andmaternal mortality is very high, and there is anextremely high prevalence of chronic malnutritionand widespread occurrence of micronutrientdeficiency diseases. Substantial improvementsin the health system and the healthstatus of the people of Afghanistan have beenachieved in recent years, but there are a numberof challenges and constraints that must beaddressed if continued progress is to be made,including: (i) inadequate financing for many ofthe key programs; (ii) reliance on externalsources of funding; (iii) inadequately trainedhealth workers; (iv) lack of qualified femalehealth workers in rural areas; (v) dispersedpopulation, geographical barriers and a lack oftransportation infrastructure; (vi) low levels ofutilization for certain health services, especiallypreventive services; (viii) variable levels of servicequality; (ix) insecurity in some provinces,making it difficult for program implementation,recruitment and retention of staff, expan-The ANDS: An Overview 11

sion of service coverage and monitoring by theprovincial and central levels; (x) lack of effectivefinancial protection mechanisms for poorhouseholds to receive the care they need withoutexperiencing financial distress; and (xi) lackof mechanisms for effective support to andregulation of for-profit private sector clinicsand pharmacies.Programs have been designed to expand andimprove the system and to try and target vulnerablegroups with preventive or curative programs.The Ministry of Public Health (MoPH)will review and develop relevant legal andregulatory mechanisms, such as accreditationsystems, that govern health and health relatedwork in the public and private sectors. Thegoal of the regulatory system will be to facilitatecompetitive and cost effective provision ofservices, carrying out its broader mandate tonot only contract out service provision to civiland private groups but also to facilitate growthof the ‘for profit’ sector. The MoPH will review,develop and enforce relevant legal andregulatory instruments that govern health andhealth related work to safeguard the public andensure service quality. The MoPH will work toidentify, encourage, coordinate, and reviewand in some cases conduct relevant, useful researchthat can assist evidence-based decisionmaking and the formulation of new policies,strategies and plans.Agriculture and Rural DevelopmentThe ANDS strategic objective for the agricultureand rural development sector is to jointlyuse private investment and public sector supportfor efforts to transform agriculture into asource of growth and means of livelihood forthe rural poor. The sector strategy articulates aroad map for the way forward in which povertyreduction through economic regenerationis the central objective Some of the focus willbe on the transformation of agriculture in anumber of well defined zones where the conditionsfor growth are most favorable.Agriculture has traditionally been the mainactivity for much of Afghanistan’s population,particularly in the most remote and vulnerableareas. While non-farming activities account forlarge amounts of time, many of these are relatedto processing, transporting or marketingagricultural goods. The agriculture and ruraldevelopment strategy establishes ambitiousplans for a series of programs that are designedto achieve an improved quality of life for ruralcitizens – one in which food security is assured,basic services are provided, incomes increasewith households actively engaged in legal activities,employment opportunities expand andwhere people live in a safe and secure environment.Activities are grouped into two maincomponents of the strategy: a ComprehensiveAgriculture and Rural Development (CARD)and the Agricultural and Rural DevelopmentZone (ARDZ) initiative.The CARD strategy articulates a road map forthe way forward in which poverty reductionthrough economic regeneration is the centralobjective. The overall focus is to support thepoorest and most vulnerable segments of ruralsociety. Proposed interventions will provide arange of measures that will differ betweengroups and between regions, but all are designedto help diversify incomes, includingincome support, direct provision of assets,skills training and market opportunities.The second main component of the strategy,the Agriculture and Rural Development Zones(ARDZ) program, is the Government’s approachto expanding commercial activities andincreasing agricultural productivity. TheARDZ recognizes that geographic prioritieshave to be set in support of the development ofcommercial agriculture. These geographic prioritieswill be used to target infrastructure,utilities and other support by various ministries.The Government will release publiclyheld land to increase private sector investmentthrough a competitive bidding process. Further,the Government will continue to investigateand implement measures to increase financialand technical support that can be utilizedby private firms to expand operations.This will ensure the process of transformingunderutilized state land into commercially viableagro-processing enterprises will be as fastand efficient as possible.Social ProtectionThe ANDS strategic objective for social protectionis to assure that the benefits of growthreach the poor and vulnerable, either throughthe attention to these groups in the design ofprograms and projects aimed at stimulatinggrowth or through well targeted support programs.The social protection sector has signifi-12Afghanistan National Development Strategy (ANDS)

cantly improved since 2002 in all areas: socialsupport, pension distribution and disaster preparedness.Cash transfer benefits have beenestablished for martyr’s families and the disabledas the main instrument of the social supportand national solidarity with the victims ofthe war. The MoLSAMD has established itsdepartments in all provinces and strengthen itscapacity for targeting and cooperating withNGOs and donors. Around 2.5 million peoplehave been covered with some type of publicarrangement for social protection. Efforts willnow focus on: (i) improving efficiency of publicarrangements for social risk management; (ii)diversifying market-based arrangements forsocial risk management; (iii) strengthening informalarrangements for social risk management(iv) capacity building and restructuring inthe MoLSAMD; and (vi) improving partnershipwith civil society and NGOs to enhance aidcoordination. The main principle for futuresocial support will be to enhance fiscal sustainabilityby focusing on the most vulnerable andsupporting the “poorest of the poor”. Finally,strengthening the public/NGOs/private sectorpartnership will support the Government’s intentionto remain mainly in the area of policymaking and providing regulations and havingthe private sector and NGOs increasingly involvedin service delivery.Refugees, returnees and internallydisplaced persons (IDPs)The ANDS strategic objective with respect torefugees, returnees and IDP’s is to efficientlymanage the voluntary return of refugees andIDPs and their reintegration into productiveparticipation in society. World-wide experiencehas indicated that large, unplanned, andessentially involuntary returns which have tobe managed as emergency influxes generate arange of negative consequences. Therefore theplanned and voluntary return of refugees andIDPs return is the guiding principle for the sectorstrategy.More than five million persons have returnedto their homes since 2002. Their reintegrationinto society has been challenging but there hasno been no pattern of discrimination againstreturnees. There is some evidence of secondarymigration of returnees from places of origin tocities and back to the neighboring countries.The latter occur most noticeably from borderprovinces. Population movements have largelynormalized with socio-economic factors largelyreplacing security and politics as the key drivers.The numbers of IDPs has also fallen significantlysince 2002. Currently there are anestimated 129,000 IDPs displaced by pastdrought and conflict and an additional 29,000more recently displaced by recent fighting inthe southern provinces. The majority of theone million IDPs identified in 2002 have returnedto their homes. During 2007 there wassome rise in local internal displacement in thesouthern provinces of Helmand and Uruzgandue to clashes with terrorist groups. Withinthe region, the principle legal and operationalframework governing voluntary repatriation isprovided by the Tripartite Agreements (TA)signed between Afghanistan, UNHCR, Iranand Pakistan respectively. These agreementsare serviced by regular meetings of TripartiteCommissions at both Ministerial and workinglevel.It is very probable that high levels of mass andvoluntary repatriation are over. The refugees’long stay in exile, poverty, and dissuasive conditionsin many parts of Afghanistan are likelyto prove difficult obstacles to overcome in thefuture. Security, lack of economic opportunities(employment) and social services (healthand education) continue to limit return andreintegration. The most significant challengesfor future will be: (i) ensuring peace and securityin areas of refugee origin; (ii) improvingthe Government’s abilities to negotiate effectivelywith its neighbors on refugee, displacementand migration issues; (iii) improving thepolitical, economic, social and organizationalabsorption capacities in key sectors and areas;and (iv) developing an implementation planand supporting resources executed over anumber of years.CROSS-CUTTING ISSUESSince 1383, the Government has given considerableattention to a set of issues that cut acrossall the sectors, motivated by the belief that theoverall success of the ANDS will be in jeopardyif these issues are not effectively addressed.These cross cutting issues involve (i) regionalcooperation; (ii) counter-narcotics; (iii) anticorruption;(iv) gender equality; (v) capacitydevelopment; and (vi) environmental management..The ANDS: An Overview 13

The regional cooperation initiatives are intendedto increase access to power; generaterevenues through transit trade; reduce impedimentsto trade and expand both importand export opportunities; increase investmentand contribute to improved employment andbusiness opportunities; facilitate the free flowof goods, services, and technology; allow thecosts or benefits of development of commonresources to be shared; reduce regional tensionsand facilitate regional efforts to reducecross border crime and terrorism; and facilitatethe voluntary return of refugees.Counter-narcotics programs are designed to;(i) disrupt the drugs trade; (ii) strengthen anddiversify legal rural livelihoods; (iii) reduce thedemand for illicit drugs and improve treatmentfor drug users; and (iv) strengthen state institutionscombating the drug scourge within centraland provincial governments. Provincialgovernors will be responsible and accountablefor the process of control and management ofcounter narcotics intervention in their jurisdictionwith support from MCN.The National Anti-Corruption Strategy isbased on the following key goals: (i) enhancinggovernment anti-corruption commitment andleadership; (ii) raising awareness of corruptionand evaluating the effectiveness of anticorruptionmeasures; (iii) mainstreaming anticorruptioninto government reforms and nationaldevelopment; and (iv) strengthening thelegal framework for fighting corruption andbuilding an institutional capacity for effectiveimplementation of the United Nations ConventionAgainst Corruption (UNCAC).The ANDS goal for gender equality is an Afghanistanwhere women and men enjoy security,equal rights and equal opportunities in allspheres of life. The National Action Plan forWomen focuses on three main outcomes: (i)government entities embracing ‘gender equality’in their employment, promotion, policymaking and budgetary allocations; (ii) measurableimprovements in women’s status as evidencedby reduced illiteracy; higher net enrollmentratio in educational and training programs;equal wages for equal work; lower maternalmortality; increasing leadership and participationin all spheres of life; greater economicopportunities and access to and controlover productive assets and income; adequateaccess to equal justice; reduced vulnerability toviolence in public and domestic spheres; and(iii) greater social acceptance of gender equalityas evidenced by increased participation bywomen in public affairs and policy discussions.The ANDS capacity development objectiveis to assure that the skills needed to effectivelyimplement programs and projects included inthe ANDS exist or can be developed within therequired time frame for implementation. Theinstitutional responsibility will be with InterministerialCommission for Capacity Development(ICCD) that will serve as a single reportingpoint for both government and donors.ICCD will provide a coordinated approach tosupport the effective management of funds andaid flows, to cut down on duplication and toensure that critical capabilities for program andproject implementation are well defined and(most importantly) that capacity developmentand technical assistance programs are properlyfocused on meeting these critical needs.Environmental protection efforts are gearedto: restoration and sustainable use of rangelandsand forests; conservation of biodiversity;preservation of Natural and Cultural Heritagesites or resources; encouragement to communitybased natural resource management, preventionand/or abatement of pollution; andimproved environmental management, educationand awareness. Throughout all sectors,any environmental costs will be fully accountedfor in appraisals aimed at ensuringthat benefits of proposed programs or projects.ENHANCING AIDEFFECTIVENESS AND AIDCOORDINATIONThe Government has implemented processes toincrease the monitoring of aid-funded activitiesand to improve the efficiency of implementation.The Aid Coordination Unit in the Ministryof Finance has responsibility for issues relatedto the delivery and monitoring of externalassistance. The Government would like to seeincreased core budget support (direct budgetsupport), giving greater ownership and enablinga more effective allocation of resourcesbased on needs and priorities. Channeling aidthrough established trust funds is also effective,with the Government able to access fundson an as needed basis. Pooling of donor fundsalso significantly reduces the duplication of14Afghanistan National Development Strategy (ANDS)

efforts and leads to better coordination, management,and effectiveness of aid. This is especiallyso with technical assistance grants.Efforts to increase capacity to implement theCore Development Budget more efficiently willresult in higher donor contributions, aidingcoordination. Equally important is the Government’saccountability to Afghan citizens onhow aid funds have been spent. The MoF’sPublic Expenditure Financial Accountability(PEFA) framework is crucial to this process.The ANDS provides the framework for priorityaid delivery. Aid delivery will be greatly improvedwhere Government, civil society andthe international community align expenditureswith the ANDS priorities. Further, theGovernment will work with civil society organizationsand Provincial ReconstructionTeams to ensure that these activities are alsoaligned with the ANDS priorities and goals.IMPLEMENTATION ANDMONITORING OF THE ANDSThe success of the ANDS depends on effectiveimplementation. The National Budget is thecentral tool for implementing the ANDS.Given this, all line ministries will first developor align their programs and projects with theANDS Sector Strategies; sector program andprojects will then be costed and re-prioritizedagainst the medium-term budget ceilings.Based on this, the ANDS Public InvestmentProgram (PIP) will be prepared to enable thefull integration of the ANDS into the mediumterm budget in accordance with the MoF’s ongoingactivities to introduce program budgeting.Furthermore, the Government will improveits absorption capacity and fiduciarypractices to encourage donors to implementtheir projects through the National (Core)Budget or, if this is not possible, to assure thatprograms or projects implemented through theexternal budget are aligned with the ANDSobjectives and priorities.At the national level, the following structureswill link policy, planning, budgeting and monitoringof the ANDS: The National Assembly isresponsible for legislating an enabling environmentfor security, economic growth andpoverty reduction. The Council of Ministersheaded by the President is the highest leveldecision-making body, providing overall policyguidance and direction under existing legislation.The ANDS Oversight Committee (OSC),composed of senior ministers, will oversee andcoordinate the overall ANDS implementationprocess. Line ministries and other governmentagencies will also be responsible for implementationitself. The MoF will play an importantrole by making sure that the program and projectsof the line ministries are costed, prioritizedand integrated into the National Budget.The OSC will play a key role in coordinatingoverall efforts to implement the ANDS. Moreover,the Ministry of Economy will strengthenthis mechanism by coordinating the work ofthe line ministries at the operational level. TheJoint Coordination and Monitoring Board willremain the highest Government-donor mechanismin charge of coordination and monitoring,which will cover not only the AfghanistanCompact but the entire ANDS. The Consultativeand Working Groups will continue to bethe key forums for improving aid coordinationand ensure alignment of the donor programsand projects with the ANDS.The ANDS: An Overview 15

CHAPTER 2THE PARTICIPATORY PROCESS AND PROVINCIALDEVELOPMENT PLANSPublic support for the successful implementationof the ANDS is essential. Therefore, Governmenthas developed the ANDS over thecourse of the past three years through a thoroughlyparticipatory manner, to seed the emergenceof a grass roots democracy, ensuringownership from people from all corners andwalks of life, civil society, the private sector,religious establishments, international communityand all government institutions at the nationaland sub-national levels. In the course ofdeveloping the ANDS, the Government hasundertaken a public policy dialogue with allkey stakeholders, embarking on a provincialbased planning process across all provinces tobring government closer to its people, and thepeople closer to government. The outcomesand lessons learned from this consultation exerciseprovided an opportunity to participate indiscussions on the development national policyand strategy framework.The ANDS is the product of extensive consultationsat the national, provincial and local levels.National consultations involved practically allgovernmental and major civil society institutionsincluding Non Governmental Organizations(NGOs), cultural associations, religiouscommunities, the private sector, influential individuals,experts and the international community.Sub-national consultations involveddiscussions with provincial governors, provincialrepresentative bodies, representative villagecouncils, parliamentarians representingeach province, local civil society, representativesof Provincial Reconstruction Teams(PRTs) and prominent individuals in all 34provinces of Afghanistan. More than 17,000people, 47 percent of whom were women, directlyparticipated in the consultation process.The consultations included all pillars of ANDS.This section summarizes the participatory andconsultative process and the lessons learnedfrom it.ORGANIZING PRINCIPLESAND PARTICIPATIONPROCESS 7The Government undertook extensive andthorough consultations, far exceeding thedepth and quantity of consultations usuallyundertaken as part of a PRSP process. To supportthe comprehensive development frameworkof the ANDS, the aims of the consultationprocess were to:• build a national consensus with respect tothe Government’s overall vision, developmentstrategy, and greater understandingof the realistic pace at which national developmentcould take place;• ensure that citizens had a real impact ondevelopment and implementation of publicpolicy;• ensure ownership by the Government,which is critical for successful strategy implementation;• be as inclusive as possible to capture theopinions and views of different groups toensure a representative strategy wouldemerge capable of addressing the needsand priorities of all citizens, and in theprocess ensuring Government fulfillment7 Participation is the process by which stakeholders influence andshare control over priority setting, policymaking, resource allocations,and/or program implementation. While there is no blueprintfor participation, because it plays a role in many different contextsand for different purposes, the Government has worked hardto design a meaningful participatory process as part of the futureANDS.The Participatory Process 17

of the participatory requirements of thePRSP;• lay the groundwork for a sustainable process,which would last beyond the life of thedevelopment of the full ANDS, and ensureregular inputs into Government decisionmakingprocesses, thereby creating a participatoryprocess which will be institutionalizedover time; and• Strengthen the capacity of the Governmentto consult widely on its strategies, as wellas to facilitate wider input into its policymaking.The consultation process was designed to reflectthe structures of Government at national,provincial and district levels, guided by theprogrammatic structure provided in Figure2.1. 88Paris Declaration on Aid Effectiveness, 2005(http://www.oecd.org/dataoecd/11/41/34428351.pdf).Figure 2.1. ANDS oversight structureANDS Oversight StructureOffice of the President / Oversight Committee / Joint Coordination and Management Board (JCMB) / External Advisory Group (EAG)SECURITY GOVERNANCE SOCIAL AND ECONOMIC DEVELOPMENTPillar 1SecurityPillar 2GoodGovernancePillar 3InfrastructureNatural ResourcesPillar 4Education &CulturePillar 5Health &NutritionPillar 6AgricultureRural DevelopmentPillar 7SocialProtectionPillar 8EconomicGovernance / PSDEight ConsultativeQuarterly Meetings(80-100 participants)National Consultation ProcessNational Assembly / Sub-cabinet CommitteesConsultative Groups /Working Groups / Technical Working GroupsPrivate Sector / Afghan DiasporaCross Cutting IssuesTechnicalWorking Groups34 Provincial SNCMeetings / 10,000StakeholdersProvincial Consultation ProcessProvincial Governors / Provincial Development Committee (PDC)Community Development Councils (CDCs)Shuras / Traditional Structures / PRTsParliamentariansand Civil SocietyEngagement500 participantsIn nationwideconference;over 1000 in KabulPrivate Sector, Media and Civil Society Consultation ProcessReligious / Private Sector / National MediaGrassroots Organizations / Civil Society GroupsNSP/CDCCross CuttingCG met throughoutI-ANDS PeriodCross Cutting IssuesRegional Cooperation / Counter Narcotics / Anti-Corruption / Gender Equity / Capacity Building / EnvironmentConsultations brought together central andprovincial decision-making institutions. Valuableoutcomes and lessons have been learnedas part of this process, which are being used tostrengthen the policy, planning and budgetformulation. As the consultation design allowedfor ministerial and cross-ministerial cooperation,some of the outcomes of the processhave addressed cross-cutting issues. This isparticularly so where national and sub-nationalplanning, budgeting and financing intersect.Consultations have been ongoing throughoutthe development of the ANDS (figure 2.2).18Afghanistan National Development Strategy (ANDS)

Figure 2.2. ANDS timeline 1385 – 1388 (2006-2009)ANDSProcessLunchedat JCMBANDSWorkPlanapprovedANDSdraftMinistriesstrategiespreparedANDS PilotConsultationsLaunchedANDSConsultationsLunchedANDSSectorStrategiesintegratedinto the FirstDraft ofthe ANDSANDSconsultationfinalized andthe FinalDraft of theANDSpreparedANDSapprovedby theCabinetFirst ANDSProgressandUpdateNational & Sub-National consultation and Research ongoingOne Year of ANDS Iplementation (HIP)Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug... Mar2006 2007 2008 2009CONSULTATION PROCESSConsultations were conducted with primaryand secondary stakeholders from the:(i) national; (ii) sub-national; (iii) international;and (iv) private sector, civil society, religiousand traditional communities. Through the consultationprocess the Government has aimed toconnect newly formed central and provincialgovernance structures and ensure harmonizationand co-ordination of the developmentprocess. The following section provides a verybrief summary of the important strategy designprocess.• National Consultation Process: The day today preparation of the ANDS was managedby the ANDS Directorate, with thesupervision of a Presidential OversightCommittee, chaired by the Senior EconomicAdvisors. The Oversight Committee(OSC) was formed to oversee the economic,policy and strategic direction for the implementationand development of theANDS. The committee is composed ofCabinet Ministers, including the Ministersof Finance, Foreign Affairs, Economy,Commerce, Justice, Education and the NationalSecurity Advisor and meets bimonthlyto monitor the progress of implementationof the Afghanistan Compact, I-ANDS and the ANDS. Within the frameworkof the various Consultative andTechnical Working Groups, each Ministryand Agency developed its individual strategy,coordinated within the sector wideapproach underpinning the ANDS. Thesestrategies cut across the three pillars andseventeen sectors of the ANDS, includingthe mainstreaming of cross cutting issues,to deliver a mutually reinforcing, fully prioritizedand integrated strategy. The JointCoordination and Monitoring Board(JCMB) coordinates the efforts of all partnersin the process, and reports the resultsto the President, the National Assembly,and the UN Secretary General as well as tothe international community and the public.Between quarterly meetings, the JCMBSecretariat coordinates activities that keepthe benchmarks on track. The JCMB servesas the official link between the ConsultativeGroups (CGs) as well as between the TechnicalWorking Groups (TWGs) and theOSC. Moreover, key national stakeholdersinvolved in the National ConsultationProcess include (a) the national assembly(b) sub-cabinet committees (c) consultativeand technical working groups and (d) theprivate sector and members of the Afghandiaspora.• Sub National Consultation Process: 9 Thesub-national consultation process of theANDS represented the first significant dialoguebetween the central Government andthe provinces; designed to strengthen centre-peripheryrelations. The outcome of thisconsultation process included the formulationof 18,500 village based developmentplans, leading to 345 district development9 The sub-national consultation process and how the PDPs weredeveloped and informed policy will be discussed in greater detailin the next section.The Participatory Process 19

plans, which were finally consolidated into34 Provincial Development Plans (PDPs).This process involved consultation betweenparliamentarians, provincial authorities,provincial development committees,village Shuras, local Ulama, the internationalcommunity (including the ProvincialReconstruction Teams) and most importantlyordinary Afghan citizens. ThesePDPs identified needs and key developmentpriorities for each province. Both theNational (top-down) and sub-national (bottom-up)processes were developed into thesector strategies, with a move towards theformulation of Sector Wide Approach andProgrammatic Budgeting.• International Consultation Process: Engagementbetween the Government andthe international community has been substantiallyguided by the Bonn processwhich set high level political goals: the SecuringAfghanistan Future exercise; theAfghanistan Compact and the MDG process.The international community was involvedin the ANDS consultation processthrough the External Advisory Group(EAG). Among other issues, this organ focuseson implementation of the principlesof the Paris Declaration. The ANDS Secretariatprovides support to these structuresto enhance coordination and effectivenessand the linkage with the national consultationprocess. The international communitywas extensively involved in the developmentand preparation of the ANDS.• Consultation with the Civil Society, PrivateSector and Media: The Governmentcarried out extensive consultation withcivil society groups, including: (a) the religiousestablishment; (b) village shuras 10 ; (c)non governmental and not for profit agencies;(d) cultural associations; (e) humanrights organizations; (f) grassroots associationsrelated to women’s affairs, youth developmentand disability; and (g) Waterand Sanitation Committees (WATSAN).Six Afghan coordination bodies and partnerNGOs were extensively engaged duringthe development of the Sector Strategies.Moreover, throughout the process themedia has been actively reporting on theANDS, through newspapers, TV, radio and10 Traditional village councils.internet. The role that civil society organizationshave played at different levels asfacilitators, communicators, advocates andmonitors has been invaluable. 11 As part ofthe economic diagnostic and PDP work,provincial discussions were held to discussthe private sector development strategy inthe five largest commercial cities, whichculminated in the ‘Enabling EnvironmentConference’ held in Kabul in 1386 (June2007).Poverty diagnostic consultations: The Government’sparticipatory approach to povertydiagnostics involved enabling poor communitiesand their institutions to participate effectivelyin defining, analyzing and monitoringpoverty as they experience it. This work wasalso conducted in the most remote and conflictaffected communities of Afghanistan. In sodoing, a broader choice of poverty actionsbased on the specific concerns of the poor havebeen established for each province, as well aseach district. Government has considered arange of poverty actions based on specific concernsof the poor including vulnerability, conflictsensitivity, insecurity and governance. Asa result of provincial and district planning, differenttargeting of poverty reduction programs/interventionshave been considered toestablish a best fit between poverty profile andpoverty actions.PROVINCIAL DEVELOPMENTPLANS (PDPS)As part of the ANDS PDPs were developed forall 34 provinces of Afghanistan to provide acoordinated framework for the Governmentand the international community to undertakesector programs and projects at the subnationallevel. The linking of consultation tothe provincial based planning process has allowedlocal communities to prioritize, sequence,plan and be involved in the implemen-11 In addition to the feedback, comments and support of a numberof CSOs, the Agency Coordinating Body for Afghan Relief(ACBAR) and the Foundation for Culture and Civil Society(FCCS) undertook extensive research in 12 provinces, contributinginvaluable poverty data for the ANDS, as teams were sent toremote, poverty stricken areas in both rural and urban settings, inorder to inform the sector strategies. This information was used inconjunction with findings from the National Risk and VulnerabilityAssessment surveys over the past five years, to ensure that theANDS policies are pro-poor and representative of the more disadvantagedsegments of society.20Afghanistan National Development Strategy (ANDS)

tation of projects. The PDPs developedthrough the Sub National Consultations ensurethat the priorities in the ANDS reflect the bestinterests of the Afghan people and are theproduct of the three rounds of Sub-NationalConsultations that took place across AfghanistanMarch 2007- March 2008.The PDPs have informed policy formulation,articulated goals and needs of the people andprovided strategic direction to the sectorstrategies and the overall ANDS. During theSub National Consultations (SNCs), preparationand input for the PDPs was based on thefollowing inputs:• line ministry strategies and plans;• priorities of rural communities includingthose set out in Community and DistrictDevelopment Plans;• priorities of urban communities, includingthose set out in Urban Plans;• priorities of vulnerable social groups includingKuchis, refugees, returnees and InternallyDisplaced Persons (IDP) and thedisabled; and• priorities of women, who attended the consultationswith an average of 47 percentparticipation. 12Development of Provincial ProfilesThe PDPs contain a profile of each provinceusing information from both the National Riskand Vulnerability Assessment (NRVA) andUNFPA’s Socio-Economic and DemographicProfiles, providing a geographic, poverty-basedand social picture of the province and perspectiveson the state of provincial development.Opportunities for poverty alleviation have beenincluded with the agreed goals and needs foreach pillar. This provides a guide to potentialdevelopment in each province; especially forthe most urgent local needs.12 A nomad woman from Balkh province stated that this was thefirst time she had attended the meeting on behalf of nomadwomen of this province in order to present her opinions for thewelfare and prosperity of the country. “We would be glad if thegovernment continues to pursue such policy. Nomads like anyother people in the society would also benefit from this process”.Farida Kochi, representative of Balkh‘ Source: ANDS SubnationalConsultation, 1386 (2007).Priority ProjectsTen projects have been prioritized for each sectorand for each province aligned with the fiscalenvelope of ministries within the outreachof national programs. In total, 80 priority projectswere identified for each province. TheSNCs served as an opportunity for these ideasin the shape of Community Development Plans(CDPs) and District Development Plans (DDPs)to be consolidated and improved and to reachconsensus on them with a wider audience fromthe province before being incorporated intoPDPs as priority projects. Priority projectsfrom the eight sectors across the 34 provincestherefore represent a list of activities that respondto the most urgent sectoral needs in eachprovince. These are being mapped into thenational budget process.PRIORITIZATION ANDSEQUENCING OF THE PDPSPrioritization of the provincial priority projects,aligned with National Programs, forms the basison which implementation of the ANDS willtake place at the local level. Out of the eightyprojects prioritized during the SNC process, themost critical projects were aligned with the fivemost crucial sectors and prioritized into tiers.Tier one projects represent the most urgenttasks. This has allowed for a logical resourceallocation and prioritization process to be carriedout. Provincial budgeting, as a componentof the National Program Budgeting ReformProgress, is also informed by the provincialprioritization process. It aims to empower localauthorities and increase the appropriateness ofresource allocation. This is currently being pilotedin ten provinces and will be extended to afurther ten in 1387 (2008).INTEGRATION OF THE PDPSINTO ANDSThe data from the SNCs and PDPs was fullyincorporated into ANDS in the following ways:• For each Sector Strategy; comments gatheredfrom the SNCs from a provincial perspectiveon challenges for that particularsector have been a starting point for addressingthe country’s most urgent needs.Thus each sector can be seen to respond directlyto the concerns raised by the people.The Participatory Process 21

• Prioritized projects will be aligned withministries’ national programs. This will enablea more transparent provision of servicesand a more clearly defined implementationand monitoring mechanism.• The prioritization process will assist ministrieswith effective resource allocation andprovincial projects highlighted as the mosturgent should be seen as priority action bythe ministries.OUTCOMES FROM THEPROVINCIAL DEVELOPMENTPLANNING PROCESSOne of the most valuable outcomes of the subnationalconsultations was the clear indicationthat the 34 provinces have different developmentpriorities. As outputs, the PDPs haveformed an integral part of Government policyformation, prioritization, sequencing andneeds- related resource allocation. In addition,two national overriding considerationsemerged as critically important to any intervention:the importance of preserving the country’sIslamic religious principles, culture and lifestyleand ensuring equity of access to resourcesand intervention.Security emerged as a top priority in two thirdsof the PDPs; most strongly in the south and theeast of the country. In these regions, security isperceived as the fundamental basis on whichall other development depends.disabled people; (vi) poor access to electricitycited in 80 percent of the PDPs; and (vii) corruptionwithin the public administration (mentionedin 80 percent of the PDPs, particularlywithin the security services).PRIORITIZATION OF THEPILLARSUsing qualitative information from the PDPsthe ANDS pillars have been prioritized. Thishas been illustrated in two ways. Figure 2.3shows the proportional representation of prioritieswithin the top five sectors across the 34provinces. Unsurprisingly, with 80 percent ofthe population relying on some form of agriculture,it has appeared as a national priority. Sectorssuch as health and social protection arealso one of people’s top priorities. In order, thekey priorities are:• Agriculture• Security• Education• Governance• Health• Private sector• Roads• Infrastructure (energy and water) and socialprotection.Key issues identified by stakeholders 13 include:the (i) lack of access to clean drinking water inall provinces, for both domestic use andthroughout institutions such as schools andclinics; (ii) improvement of provincial roads, 83percent referring specifically to the need fortertiary road services, to improve communicationbetween villages to district and provincialcenters; access to basic services such as schoolsand clinics; (iii) improvement in the presentlow quality services emerged as a key prioritythroughout the country, especially with respectto poorly trained teachers and doctors; (iv) lackof alternative livelihoods to poppy cultivation;(v) lack of vocational training for returnees and13 For a detailed breakdown and analysis of provincial priorities,sequencing and integration into Sector Strategies see Volume iiiof the ANDS.22Afghanistan National Development Strategy (ANDS)

Figure 2.3. Proportional representation of sectors across all 34 provincesTable 2.4 shows the top priorities for provinces,shown for all 34 provinces. Thus in 17 out of 34provinces security can be seen as the absolutenumber one priority. Roads is shown as a subsector since people articulated this as a separaterequirement from other infrastructure development(health is not mentioned because althoughit appears numerous times in the topfive priorities for provinces, it is not consideredthe top priority in any province).Table 2.4. Sectors/pillars and the number ofprovinces in which they are a top prioritySector or Pillar No. of provincesSecurity 17Infrastructure 5Education 4Employment 3Roads 3Agriculture 2Governance 1Figure 2.5. Top priorities of provinces – primary rankingThe Participatory Process 23

Figure 2.6. Top priorities of provinces – secondary rankingFigure 2.5. Top priorities of provinces – tertiary rankingREGIONAL VARIATION INPRIORITIESFrom a regional analysis some general similaritiescan also be seen from the above map:• In the South and South East regions themajor priority is security.• In the West and Northern regions prioritiesare mainly employment generation and infrastructuredevelopment24Afghanistan National Development Strategy (ANDS)

• In the North East and Central Highlandsareas the main priorities are provision ofroads, education and agriculture.The clearest message to be obtained form aprovincial level analysis is that every provinceis unique in its needs, goals and priorities andthis should be a major consideration within theresource allocation process.CONCLUSIONThe ANDS is the result of an extensive processof consultations involving key players at international,national, provincial and grassrootslevel. The insights provided by these consultationshave served to highlight both nationaland local priorities to form the holistic vision ofthe country’s development strategy, keeping inmind the vast experiences of the internationalcommunity in this arena. The PDPs have enabledthe prioritization of provincial sectoralgoals and needs into time-bound activities.The voices of the poor have informed the overallpolicy framework and the poverty profile,as well as the various sectoral priorities outlinedin this document. It is envisioned thatparticipation processes will be sustainedthroughout implementation of the strategy.Lessons learned have been formally integratedinto the policy, planning and budgeting processes,including ongoing concerns about regionalcooperation, conflict management,counter-narcotics, anti-corruption, gender, theenvironment and capacity building. It is assumedthat integration of the provincial planning,budgeting and implementation into thenational development process will contributeto a relevant and accountable national developmentprocess.The Participatory Process 25

CHAPTER 3THE POVERTY PROFILEIn the development of the ANDS Governmenthas adopted evidence based policy making,through detailed poverty diagnostic work,within which to understand the causes and effectsof poverty. Based on this analysis wehave been able to develop the ANDS as a propoorgrowth strategy. By pro-poor, the Governmentmeans making investments that havea preferential impact on bringing poor peopleout of extreme poverty through the adoption ofgrowth enabling policies and targeted socialprotection investments. This means that Afghanistanaims to achieve pro-poor growth,where the incomes and livelihoods of the poorestrise faster than the average growth of theeconomy. Key findings of the Governments1386 (2007) National Risk and VulnerabilityAssessment (NRVA) indicates the poverty rateat 42 percent (or 12 million people) were livingbelow the poverty line, with incomes of aboutUS$14 per month per capita. Moreover, foodpoverty was estimated to be around 45 percentof people who were therefore unable to purchasesufficient food to guarantee the worldstandard minimum food intake of 2,100cal/day. Furthermore, 20 percent of peoplewere slightly above the poverty line indicatinghigh vulnerability.In addition to the high incidence of consumptiondisparity, there is a significant differencein poverty levels between provinces, and betweenrural (36 percent) and urban (21 percent)communities. For example, the depth of poverty(the poverty gap) in the Northeast appearsto be higher than in the South whereas the averagedistance between the poor and the povertyline seems to be larger in Badakhshan thanin Zabul. Parwan and Logar provinces havepoverty rates of less than 10 percent while Daikundihas a poverty rate of 77 percent and thelowest level of welfare among all groups, arewomen and Kuchis. Gender inequality is animportant characteristic of poverty in Afghanistan.The vast majority of women do not participatein paid economic activities makingthem highly dependable on their husbands orfamilies. The literacy rate among women beingmuch lower (19 percent) than for men (40 percent)and, the net primary school enrolmentrate for girls (6-9) is around 21 percent whilemuch higher for boys (28 percent).DATA COLLECTION,POVERTY MEASUREMENTSAND ESTIMATESThe Government has undertaken extensive assessmentsto improve understanding of thedeterminants of poverty and the impacts ofgrowth and poverty reduction programs ondifferent income groups. In addition to theNRVA studies, the Government has relied oninformation from the Participatory Poverty Assessmentsconducted by ACBAR (Agency CoordinatingBody for Afghan Relief) and theFCCS (Foundation for Culture and Civil Society).ACBAR launched the Afghanistan PilotParticipatory Poverty Assessment (APPPA) inseveral provinces to enhance collective understandingof different poverty perspectives, itsanalysis and formulation into the ANDS povertyreduction strategy.Data Collection: National Risk andVulnerability AssessmentsInformation on the specific nature of poverty inAfghanistan is restricted by the considerablequality and quantity limitations, with theNRVA comprising the majority of informationavailable. These have been based on limitedhousehold surveys. The 2005 NRVA coveredapproximately 31,000 households, allowingnational and provincial poverty rates to be assessed.While the 2005 NRVA survey was asubstantial improvement on previous studies,it also had several weaknesses with only oneThe Poverty Profile 27

season being covered. To overcome this, aseparate survey conducted in spring 2007.Ongoing data collection includes the planned2007/08 NRVA survey (predominantly fundedby the EC). This study will cover all seasonsand the consumption module includes assessmentof more food items and non-food items.Moreover, stronger emphasis has been placedon survey design and the collection and computationof high quality of data.Sub-national Consultation and the PilotParticipatory Poverty AssessmentThe ANDS sub-national consultation processhas contributed to a far deeper understandingof the specific nature of poverty in the Afghancontext. Consultations were held in all provinces,with discussions on critical priorities forpoverty reduction, such as education, health,water and sanitation, agriculture and socialprotection. A significant number of women (46percent) took active part in these discussions. 14food and non-food items. Adding the food andnon-food poverty lines the poverty analysisbased on NRVA 2005 yielded a CBN povertyline for Afghanistan estimated to be 593 Afghaniper capita per month or around US$14(at 2005 prices). However, the 2007 surveyprovides an updated CBN poverty line of 708Afghani per capita per month (again aroundUS$14 at the 2007 exchange rate).POVERTY ESTIMATESHowever, the latest NRVA survey (Spring2007) indicates that 42 percent of the populationlives below the CBN poverty line (figure3.2). That is, almost half of the Afghan populationis unable to purchase a basic food basket toprovide 2,100 calories consumption per day.Box 3.1. Voices of the poor“The poor are being the ones with an emptystomach”, or “the poor are being the oneswho do not have enough milk to makeyogurt”. Furthermore, Afghan citizens statespoverty ‘as being an incapacity to plan thefuture’ with the ‘poor being unable toforesee what will happen tomorrow”. Oneman in Bamiyan province defined povertyby saying: “the poor are the ones who can besick today and be dead the next day”.Interviews by: MoWA, 2007Poverty measurement: cost of basicneeds analysisThe Cost of Basic Needs (CBN) poverty linerepresents the level of per capita expenditure atwhich the members of a household can be expectedto meet their basic needs comprised of14 ‘A nomad woman from Balkh province stated that this was thefirst time she had attended the meeting on behalf of nomadwomen of this province in order to present her opinions for thewelfare and prosperity of the country. “We would be glad if thegovernment continues to pursue such policy. Nomads like anyother people in the society would also benefit from this process”.Farida Kochi, representative of Balkh‘ Source: ANDS SubnationalConsultation, 200728Afghanistan National Development Strategy (ANDS)

Figure 3.2. Regional poverty comparisonsSeasonality and povertyPoverty levels in Afghanistan vary by season.This further compounds the understanding ofpoverty in Afghanistan. The Food SecurityMonitoring Survey (FSMS) suggests thathouseholds tend to have the richest consumptionin summer following the harvest, withmore restricted food consumption during winter,especially in March. 15Box 3.3. Seasonality and povertyDuring spring we plant, in winter weharvest so in autumn and winter we haveenough food. At the end of winter and thebeginning of spring we do not haveenough.” Female participant, Shawakvillage, Badakhshan.VulnerabilitySource: APPPA final report, march 2008The 2005 NRVA highlighted that 20 percent ofthe population are located very close to thepoverty line, indicating high vulnerability.Even small consumption shocks can result insubstantially higher rates of poverty. For instance,a 5 percent reduction in consumptionacross the board will cause the poverty headcountrate to rise from 33 to 38 percent. Accordingto the 2005 NRVA, a 25 percent upwardshift in the poverty line would result in53 percent of the population living in poverty.Meanwhile, a 25 percent downward shift in thepoverty lines would reduce the poverty rate to14 percent. Table 3.4 highlights the potentialimpact of consumption shocks on poverty incidence.Table 3.4. Impact of consumption on povertyrate 16SectorBase case(% poverty)5% shock(% poverty)10% shock(% poverty)Kuchi 30 33 38Rural 36 40 45Urban 21 25 29Total 33 38 42POVERTY IN AFGHANISTAN:MAIN CHARACTERISTICS OFINEQUALITYAfghanistan has the lowest level of inequalityin South Asia as measured by the Gini coefficient.This however is largely due to the widespreadnature of poverty across the country.However, within Afghanistan, significant inequalitydoes exist between many segments ofAfghan society. The variation in poverty betweenthe rural, Kuchi and urban populationsis significant and of great importance. Meanwhile,gender inequality is one of the highest inthe world.15 Source: Understanding Poverty in Afghanistan, Analysis andrecommendations using National Risk & Vulnerability Assessment(NRVA) 2005 and Spring 2007, WB, October 30, 2007.16 Source: NRVA, 2005, WB Staff EstimationThe Poverty Profile 29

Consumption DisparityConsumption inequality is a concern. TheWorld Bank has estimated (based on the 2005NRVA) the bottom 10 percent of the populationaccounts for 3.6 percent of total consumptionwhile the bottom 30% account for 15.6% of totalconsumption. Combined with very low overalllevels of consumption, this indicates that thepoorest population suffers from high levels ofdeprivation (table 3.5).Table 3.5. Share of consumption by quintileGroupShare of totalconsumption (%)Bottom 10 % 3.6Bottom 30 % 15.6Top 30% 47.8Top 10% 21.1Top 1% 3.5Poverty also varies significantly between provinces.Poverty headcount rates vary fromaround 10 percent to more than 70 percent,with poverty more severe in the Northeast,Central Highlands and parts of the Southeast.Entire provinces like Daikundi, Badakhshan,Zabul and Paktika represent large pockets ofpoverty.The 2005 NRVA indicates a significant disparityin poverty between rural people and theKuchi population compared to urban populations.Around 45 percent of rural and Kuchipopulations appear to be poor as opposed to 27percent of those who live in urban areas. Ruralpopulations have the highest rates of food insecurity,with 45 percent not meeting dailyminimum food requirements. Moreover, it isnoted that 40 percent and 41 percent of the Kuchiand of urban population respectively arealso unable to meet their minimum food intake(table 3.6).Table 3.6. Estimated poverty headcount ratesand food insecurity (spring 2007)17SectorFoodpovertyCBNpovertyFood insecurityindexKuchi 40 45 39Rural 45 45 39Urban 41 27 37National 45 42 39These disparities are reflected in primaryschool enrollment rates (table 3.7), though inthis regards, the Kuchi population is particularlydisadvantaged.Table 3.7. Enrollment rates (ages 6-9) 18Group Female (%) Male (%) All (%)Kuchi 5.0 5.8 5.4Rural 20.1 28.8 24.6Urban 34.7 34.9 34.8All 21.2 28.4 24.9Characteristics of Rural PovertyThe rural population – who make up the majorityof the poor – account for approximately 80percent of the population. The main characteristicof the rural poverty is high food insecurityand a lack of access to infrastructure and basicpublic services. Illiteracy rates are prevalentamong rural Afghans and the level of educationis low. Rural households are highly dependableon agriculture. However, non-farmactivity has started to play a bigger role in thecoping strategy of the rural poor. The poorestamong the rural households are those who livein remote and mountainous area, whose headis illiterate or without any education and whodo not poses land or livestock.Characteristics of Poverty amongKuchisKuchis are nomadic pastoralists (estimated at1.5 million people) and are heavily dependenton livestock and migration patterns for theirlivelihood. In recent years, 15 percent of Kuchifamilies have been forced to cease migrationand settle. Kuchi poverty has many of the corecharacteristics of rural poverty although foodinsecurity is not as high as in the case of ruralhouseholds (table 3.6). However, the poorestKuchis are those who have settled. Reasons forsettling include loss of livestock due to recentdroughts and insecurity which disrupted traditionalmigratory routes. Moreover, the biggestcause of being settled is growing banditry andlocal crime as well as conflict with settledpopulations over grazing areas. The failure oflocal authorities to deal with disputes over traditionalpasture rights has already led to num-17 Source: The World Bank based on Spring 2007survey.18 Source: World Bank Staff Estimates based on 2005 NRVA.30Afghanistan National Development Strategy (ANDS)

er of conflicts and rising poverty among Kuchis.Characteristics of Urban PovertyUrban poverty and food insecurity are loweramongst the rural and Kuchi populations.However, recent research regarding urban livelihoodsfrom a European Commission fundedproject suggests that urban poverty is increasing,and is positively correlated with the growingurban population. 19 Many informal settlementsaround major cities have been built inorder to accommodate migrant workers, returneesand others. For years these suburbshave been one of the largest neglected pocketsof poverty. A number of recent studies haveconcluded that low paid employment does notguarantee that citizens live above the povertyline. 20 Due to poor daily wages many urbanworkers fall into the category of the “workingpoor”. 21 Insecurity of employment leads toincome irregularities and to a chronic shortageof money. Many urban poor households lackof finance to smooth consumption and areforced to take short term loans to purchase basicneeds such as buy food and pay rent. Incomefluctuation, job insecurity and high indebtednessare core characteristics of a typical“poverty trap” for the urban poor.Gender InequalityGender inequality is an important characteristicof poverty in Afghanistan. The vast majority ofwomen do not participate in paid economicactivities making them highly dependent ontheir husbands or families. In spite of thiswomen, especially in rural areas, actively contributeto the household income through employment(often unpaid) in agriculture andlivestock activities. Nevertheless, the gendergap remains large with (i) the literacy rateamong women is much lower (19%) than formen (40%) and, (ii) the net primary school enrolmentrate for girls (6-9) is around 21 percentwhile much higher for boys (28%) (table 3.7).Female headed households are closely correlatedwith the high poverty due to a lack ofeducation and employment opportunities. 22MOST IMPORTANT CAUSESOF POVERTY: POVERTYCORRELATESA number of factors contribute to poverty, includinga lack of infrastructure, limited accessto markets, social inequity, historical and ongoingconflict and various productivity constraints.The APPPA found that the key determinantsof poverty were: (i) a weak assets base,(ii) ineffective institutions: including the disablingeconomic environment; weak regionalgovernance, service delivery and corruption;weak social protection programming; socialinequalities; and (iii) vulnerability to: conflict;natural disasters; decreasing rule of law; increasingbasic costs; increasing population;food insecurity; winterization; and (iv) nondiverselivelihoods. Source: APPPA Final Report,March 2008.Literacy levelsPoverty is highly correlated with literacy skills.The 2005 NRVA highlights that poverty ratesfor households with illiterate heads is 37 percent,compared to 23 percent among householdswith literate heads. Citizens with primaryeducation experience up to 10 percentlower poverty than families with uneducatedheads.Agriculture and livestock are positivelycorrelated with povertyThe poorest households are found to be dependentmainly on livestock and agricultureactivities. The NRVA 2005 report found thatagriculture and livestock activities are the largestcontributors to poor household incomes.Meanwhile, households in the top two consumptionquintals earn more from trade andservices. Education and literacy are also highly19Urban Livelihoods in Afghanistan, Jo Beall and StefanCshutte, August 2006.20 Study on Chronically Poor Women in Afghanistan (Draft),March 2007.21 Working poor is a term used to describe individuals and familieswho maintain regular employment but remain in relativepoverty due to low levels of pay and dependent expenses.22 As a recent APPPA Final Report stated, “We women have norights or decision-making power. The men make decisions insideand outside the house. This is normal for us.” Female participant,Bai Sar Community, Herat. Source: APPPA, Final Report,March 2008.The Poverty Profile 31

correlated with higher involvement in nonfarmingactivities as is access to major roads.contributed to a lowering of poverty rates inthese areas.Asset ownership and crop diversificationA lack of ownership of land and livestock isassociated with lower poverty. 23 Small landowners, landless families and families withoutlivestock are in most cases poor. Moreover,ownership of non irrigated land is strongly associatedwith levels of poverty with familieswho are engaged in cultivating rain fed landmuch poorer than families that cultivate irrigatedland. Equally, livestock ownership appearsto decrease economic vulnerability. Urbanfamilies without home ownership arehighly vulnerable as they have to allocate largeparts of income to paying rent. Moreover, cropdiversification appears to be an importantspring board strategy for escaping poverty.Access to educationPoverty reduction and economic growth areclosely associated with the population’s level ofeducation. As highlighted above, a literatehead of household has greater earning potentialand is negatively correlated with poverty.Access to education by the bottom consumptionquintile is low, resulting in a lower netprimary school enrollment rate. 24 The 2005NRVA also highlights a significant gender disparityin net primary school enrollment, especiallyamong Kuchi and in rural areas, whilethe disparity in urban areas remains marginal.Access to health facilitiesA lack of access to health facilities and povertyare closely related. Higher household consumptionis associated with more frequent visitsto health facilities and higher vaCross CuttingIssuesnation rates of children (see box 3.8).Access to the Basic Package of Health Services(BPHS) has significantly improved, covering 85percent of the population in 2006. This has23 According to the WB analysis based on NRVA 2005 more than70 percent of households in Afghanistan are engaged in agriculturelivestock activities.24 Net primary enrolment rate is the proportion of primary schoolage children (6-9) who enrolled in primary grades.Box 3.8. Health and hospital services in theprovinces“We don’t have a clinic here but if you arelucky enough to be able to drive the 30kilometers to the nearest hospital you finddoctors who are not professional, who don’tpay attention to you, and who tell you to goout and buy your own medicine.” femaleparticipant, Papchi village, Herat.Source: APPPA, final report march 2008Other important causes of povertyA number of other factors are linked with povertyin Afghanistan:• Indebtedness: a lack of job security, irregularincome, pressure to buy food and havingto pay rent forces many rural and urbanpoor to increase borrowing.• Remoteness: the NRVA data indicate povertyis much lower in areas that are close tothe main roads (Ring Road). Topographicalremoteness and the lack of access to majorroads remains a major causative factorof poverty.• Female household heads and disability:research conducted by MoWA identifiedfemale households as being linked withhigher rates of poverty. Likewise, having adisabled head of household or a disabledfamily member is also associated withhigher poverty.The remaining causes of poverty include: (i)security; (ii) large households with small children;(iii) poor access to basic services (waterand electricity), and (iv) natural disasters.Box 3.9. Poverty and natural disasters“In the spring the river overflows – there isno retaining wall and our lands aredamaged” male participant, Bai Sarcommunity, Herat.Source: APPPA final report, march 200832Afghanistan National Development Strategy (ANDS)

WHO THE POOR ARE: THEMOST VULNERABLE GROUPSAccording to the Spring 2007 survey approximately10 million Afghans, around 42 percentof the population, live below the poverty lineand do not meet their daily food and non-foodrequirements. While high rates of poverty existamongst Kuchi and rural households, the incidenceof poverty is increasing in urban areasand large city suburbs.Families with a large number of smallchildrenAfghanistan has one of the largest child populationsand the smallest proportion of workingage populations in the world 25 which exposesfamilies with a large number of small childrento economic shocks. Moreover, the countryalso has one of the highest under 5 infant mortalityrates in the world. Children up to fiveyears remain the most vulnerable because theyrequire high quality nutrition as well as otherforms of child care unaffordable to most families.Many rural and urban children are forcedto work to bolster family incomes resulting inwidespread child labor and school drop-outs,“trapping” the children in the endless cycle ofpoverty.Female Headed HouseholdsAccording to 2005 NRVA data, female-headedhouseholds comprise around 2.5% of Afghanhouseholds. These households are typicallyhighly vulnerable to economic shocks, with asignificant number not having a single ablebodied income earner.Disabled, internally displaced and extremelyvulnerable poorAfghanistan has one of the largest rates of disabilityin the world. According to HandicapInternational there are around 800,000 disabledpeople in Afghanistan. The unemploymentrate among these groups is almost 90 percent.The country also has a large number of internallydisplaced persons (IDPs). The high vulnerabilityto natural disasters, ongoing conflictand forceful repatriation of the refugees from25 Working age group is 15-64 years.the neighboring countries contributes to overallpoverty. Increasing migration to cities, job insecurity,indebtedness and the collapse of traditionalsafety nets has placed many urban poorinto extreme poverty.POLICY FRAMEWORK FORPOVERTY REDUCTIONPoverty in Afghanistan is complex and multidimensional.The NRVA surveys reveal theseverity of poverty with one in two Afghansbeing classified as poor. Further, a large numberof people are concentrated close to the povertyline and are highly vulnerable to natural,security and price based shocks.To address this, the policy framework for theANDS will be premised on the following principles:• Promoting pro-poor growth: the Governmentwill tackle poverty first and foremostthrough promoting strong equitable andbroad based private sector led growth. Inparallel, fiscally affordable social protectionsafety nets will be undertaken as part ofregular Government business.• Promoting pro-poor budgeting: the mostimportant sectors impacting on povertyand poverty reduction, including security,education, health, and social protection,will see budget allocations maintained orincreased over the medium term.• Allocating adequate resources to the poorestareas: although past expenditure allocationswere in favor of the pro-poor sectors,actual spending has not always been wellfocused to benefit the poor and vulnerable.• Providing the balanced support to the Kuchis,rural and the urban poor: the majorityof Government and donors interventionshave been aimed at supporting the ruralpoor. Future support to the Kuchis, ruraland urban poor will need to be more balancedbased on levels of poverty.• Focusing on the poorest and most vulnerable:given the huge needs and scarce resourcesof the Government and the internationalcommunity, the poverty reductionstrategy will need to prioritize targeting thepoorest of the poor.The Poverty Profile 33

• Improving donor coordination and aideffectiveness:donor support as well as improveddonor coordination together withthe elimination of duplication in deliveringassistance to the poor will be essential tothe success of the ANDS poverty reductionstrategy.• Strengthening the capacity for data collectionand poverty analysis: institutional capacityfor data collection and povertyanalysis will need to improve in order tobetter inform policies for poverty reduction.The Government will actively mainstreamthe poverty focus throughout monitoringand data collection mechanisms.• Building partnership between the Governmentand NGOs: the role of NGOs indelivering services to the Afghan poor isrecognized. Strengthening the Government’spolicy making capacity needs to becombined with a strengthening of the partnershipwith NGOs in the area of servicedelivery.Implementation, monitoring and institutionalstrengtheningImplementation and monitoring of the ANDSpoverty reduction policies will be mainstreamedthrough the sector strategies. However,the evaluation of the overall ANDS sectorpolicies for poverty reduction will be evaluatedseparately to inform policy makers about theireffectiveness. The NRVA will remain the maintool for data collection on matters of poverty.However, the introduction of the householdbudget survey and strengthening of the CPIand national income data will also contribute tothis understanding. The forthcoming CensusSurvey will play an important role in enhancingthe understanding of poverty. The capacityof the CSO’s for data collection of key povertyand development indicators will need to bestrengthened. Moreover, the Government willcontinue to improve its own capacity to undertakepoverty analysis within the CSO and otherGovernment agencies.HIGH PRIORITY SECTORPOLICIES FOR POVERTYREDUCTIONSecurity, maintaining strong growthand macroeconomic stabilityMaintaining steady growth rates of between 7and 9 percent of the GDP (in real terms)through the promotion of the private sector isexpected to lead to a reduction in the nationalheadcount poverty rate of around 2 percent onan annual basis. Equitable growth distributionis the precondition for broad based povertyreduction. This will require higher (budget)expenditure in the critical sectors of health,education and social protection and higher levelsof public spending in the poorest provincesand remote areas where poverty levels arehigh.Maintaining macroeconomic stability includingprudent fiscal policies is critical to growth as ismaintaining price stability and single-digit inflationrates. Improving the security environmentwould significantly contribute to povertyreduction leading to increased economic activityand the preservation of human capital andhousehold assets. Moreover, it would decreaseinternal displacement and reduce pressure onimpoverished dwellers due to migrating impoverishedrural families to the cities.Generating employment and labormarket policiesGiven widespread low productivity employmentand the large number of jobless, employmentgeneration will be one of the mostimportant policies for poverty reduction. Animproved security and business environmentwill support stronger private sector growth,which will gradually become the main sourceof employment and the main instrument ofpoverty reduction. This requires expandingthe mining and oil and gas sector. The Government,supported by the donors, will increasepublic work activities and their presencein the poorest provinces. The National SolidarityProgram (NSP) will continue to play an importantrole in generating jobs and income forthe rural poor. Skills development programswill expand to help the unemployed obtain indemand qualifications. Moreover, public ad-34Afghanistan National Development Strategy (ANDS)

ministration will employ more women anddisabled people. Labor market regulation andthe pension reforms will be improved to provideprotection from the employers, especiallyfor workers engaged in the informal economy.Education and healthEducation and health will remain the prioritysectors for public spending. The Governmentwill continue the policy of providing free universaleducation. Increasing the literacy andnet primary school enrollment rates and decreasingthe number of school drop-outs willbe the main contribution of the education sectorto poverty reduction. Higher attention willbe given to supporting disabled peoples accessto facilities, including specialized institutionsand adjusting schools and universities to meetingtheir needs.The Health sector will continue to be strengthened.Building new health centers in rural andpoor urban areas will be priority for health sectorpublic spending. The special needs of disabledwill be better accounted for in the BasicPackage of Health Services (BPHS).Two major issues that contribute to women’spoverty are a lack of maternal heath servicesand education for girls. Both issues are causedby a lack of facilities and are inter-linked withthe need for culturally appropriate services forwomen and girls. In relation to the provisionof maternal health services, there is a greatneed for female doctors and trained mid-wivesto offer ‘culturally appropriate’ health services.Afghanistan has one of the highest populationgrowths among developing nations and despitestrong cultural limitations the overallpoverty reduction strategy will need to encouragefamily planning.Social protection and urban developmentSocial protection programs will focus on supportingthe most vulnerable and the poorest ofthe poor. This includes “children at risk”,chronically poor women, poor disabled, mentallyill without family protection, neglectedelders and drug edicts.Many urban homes are built without the necessaryconstruction permits, creating uncertaintyand risk for typically poor families. To addressthis uncertainty, the Ministry of Urban Developmentwill include pro-poor urban developmentprograms. The first priority will be tolegalize constructions in residential areas anddevelop basic infrastructure to improve publicservice delivery.Malnutrition is one of the major causes of thehigh infant mortality under 5, with the poor themost vulnerable. The Government will considerintroducing the Zakat-based tax to increaseallocations for social programs to supportthese programs.Agriculture and rural developmentRural development and agriculture are keysectors for improving the rural livelihoods.Access to markets has been indicated as an importantdeterminant for rural poverty in Afghanistan.Programs to support crop diversification,targeted livestock, orchards, distributionand providing farming implements willcontribute to poverty reduction among the ruralpoor. As will improved access to rural allweatherroads, sanitation, electricity, job opportunitiesand promoting rural enterprises. Theseprograms are important tools for rural incomegeneration and the elimination of poppy cultivation.Water and irrigationInvestments in water management and irrigationwill significantly contribute to higher foodsecurity and poverty reduction for those currentlyoperating on rain fed land. In additionto malnutrition, the lack of the access to cleanwater, poor sanitation and sewage is one of themain causes of high infant mortality. The Governmentwill increase public spending on improvingthe access clean water as well as improvedhealth protection to address this.Disaster preparedness and community-basedinsurance schemesNatural disasters, particularly droughts andfloods are one of the major sources of vulnerabilityamong the poor. The NRVA 2005 highlightedthe destruction of crops due todroughts represents a higher poverty risk thanThe Poverty Profile 35

sickness or loss of a working family member.Building more efficient disaster preparednessand response will decrease the risk of fallinginto poverty. Further, the Government willinitiate the establishment of community basedcrop insurance schemes to enable the poor tobetter mitigate the risks of losing harvest.Energy and transportExpanding the national road network, includingthe construction of the rural roads, will allowpoor households to diversify income generation– from low profitable crops to moreprofitable activates such as trade, services andsmall businesses. Investments in transmissionlines and power generation will increase accessto electricity, improving productivity.Social protection safety nets will be strengthenedto ensure the poor can cope with theplanned elimination of energy subsidies, whichwill increase the risk of the poor and marginalhouseholds falling further into poverty, especiallyfor the urban households.Justice and anti-corruptionGreater access to justice, especially for women,is an important component of the ANDS toempower the poor and provide more efficientprotection to victims of violence. Justice reformwill also improve the business environmentand increase investments and job generation.The ANDS will also reduce corruption in keysectors such as justice, health, public administrationand education, which will have a significantbenefit for the poor.their role in providing the Government withthe “voices of the poor” and policy advice.CONCLUSIONDuring the pre-harvest spring of 2007, theNRVA estimated that 42 percent of the populationwas below the poverty line. A great manymore people remain vulnerable to falling belowthe poverty line as a result of rising food andfuel prices or bad weather. Great reliance isbeing placed on private sector-led developmentand growth to create sustainable employmentand market opportunities. It is these opportunitiesthat will allow the majority of Afghans toimprove their lives and pull themselves out ofchronic poverty. As the ANDS sector strategiesare implemented, great effort is being made touse participatory and consultative processes tobetter understand the needs of the poorest andmost vulnerable groups, to inform the designof appropriate programs to address thoseneeds. The real needs are so enormous thatsubstantial interventions are indeed required toprovide real assistance to the neediest, particularlywomen who are burdened with child careresponsibilities, social constraints, and the disabledwho are not provided enough opportunityfor full participation in society in order totake advantage of improved employment andmarket advantages. Special programs are suggestedto be put in place to target these groupsso that they too share in the benefits from economicand social development programs. Thisis important not only on humanitarian groundsbut in terms of building the community cohesionthat is the foundation of a tolerant andcompassionate Islamic state.Empowering the poor: role of NGOsExpanding the service delivery and policy inputrole of NGOs and civil society are crucial toreducing poverty. This is strengthened by theANDS’ participatory structure with Afghansociety. ANDS progress reports will be publiclydisseminated. Civil society and subnationallevel bodies will be consulted inpreparation of the ANDS updates. Participatorypoverty qualitative assessments and quantitativeanalysis will be provided on a regularbasis to obtain input from NGOs and civil societyon the key priorities for the poverty reduction.The role of the NGOs in delivering theservices to the poor will also increase as will36Afghanistan National Development Strategy (ANDS)

PART IITHE NATIONALDEVELOPMENTSTRATEGY

CHAPTER 4MACROECONOMIC FRAMEWORKHigh, sustainable, broad-based economicgrowth and the preparation of a viable macroeconomicframework are indispensable forpoverty reduction and employment creation.The overall growth strategy of the ANDS isbased on a firm policy of private sector ledgrowth. During the last five years per capitaincome nearly doubled from US$147 to US$289.Comparable rapid economic growth will beneeded during in the next five years if the povertyreduction goals of the ANDS are to beachieved. This will require a supportive environmentfor social and economic development,which will depend crucially on making significantprogress toward improving security,eliminating the narcotics industry, reducingcorruption and strengthening governance.Equally important will be the continued maintenanceof sound and stable macroeconomicpolicies.Past high growth experience does not guaranteesimilar high rates of growth in the future.In recent years strong economic performancehas reflected substantial public investment inreconstruction activities and large foreign assistanceinflows. These factors cannot be expectedto continue to contribute to economic growth tothe same extent in the coming five years. Whilepublic/donor investment will undoubtedlycontinue to be important in the near term, therewill be an increasing reliance on private economicactivity for longer term growth to besustainable and to extend the benefits of developmentto the entire population.The drivers of economic growth are the rate ofinvestment and the rate of improvement inproductivity. A key strategic objective of theANDS is to establish a secure economic environmentin which it will be possible to attractsufficient levels of investment and which willencourage the employment of human, financialand natural resources in the most productiveways possible. A critical element in achievingthis objective will be to substantially increaseinvestment in the development of capacity ofthe workforce in order to expand employmentopportunities and increase incomes.The ability to implement the projects and programsincluded in the ANDS depends upon theresources that will be available. This chapterpresents summaries of macroeconomic projectionsfor the next five years on which estimatesof available resources are based and projectionsof the domestic and donor financial resourcesthat will be required to implement the ANDS.In order to ensure that sufficient resources willbe available, a high priority for the Governmentis to significantly increase domestic revenues.Fiscal policies will remain a central policy toolfor macroeconomic stability, public resourceallocation, and implementation of the developmentstrategy – all of which are importantingredients for sustained robust economicgrowth. Foreign assistance (including core andexternal budget) has averaged 40 percent ofGDP for the past five years. In order to bestuse foreign assistance for growth and development,there are two major challenges for fiscalpolicy. One is that distribution of financialresources (including domestic revenues andforeign assistance) must be aligned with ANDSprioritization. The other is to improve absorptioncapacity to improve both quantity andquality of projects and project execution.Macroeconomic Framework 39

Table 4.1. Macroeconomic projections13852006/0713862007/0813872008/0913882009/1013892010/1113902011/1213912012/13Real sector(annual percent change)Real GDP (excluding opium) 6.1 13.5 9.0 9.0 8.0 7.7 7.0Nominal GDP (excluding opium) 9.5 24.1 19.8 16.4 14.2 13.2 12.1Consumer Price Index 5.1 9.8 10.2 7.2 6.0 5.4 5.0Fiscal sector(percent of GDP)Total expenditures (A) 21.55 22.6 23.0 24.2 23.5 22.6 22.0Revenues/Financing (B)(operating and development)20.1 21.2 21.5 22.5 22.6 21.7 21.4Budget balance (B minus A) -1.4 -1.4 -1.5 -1.8 -0.9 -0.9 -0.6Fiscal sustainability indicator(domestic revenues as % of 66.3 67.0 69.9 72.0 82.9 91.4 100.1operating expenditures)Monetary sector(percent of GDP)Net foreign assets 30.1 26.7 24.0 19.3 16.5 13.9 12.4Net domestic sales -14.1 -12.0 -9.2 -5.5 -3.4 -1.5 -0.6External sector(percent of GDP)Merchandise trade balance -70.1 -67.6 -64.5 -52.7 -46.3 -39.0 -33.4Current account balance,including official transfers-6.3 -1.4 -0.1 -0.7 -2.6 -3.6 -4.5Foreign direct investment 3.4 3.3 3.3 3.4 3.9 4.0 4.1Memorandum items(percent of GDP)External budget (= grants) 55.4 54.5 51.6 38.0 30.8 23.6 18.0LINKING GROWTH WITHPOVERTY REDUCTION ANDEMPLOYMENT CREATIONA growth strategy is the backbone of theANDS. Poverty in Afghanistan is high by anystandard. Estimated poverty incidence rangesfrom 34 percent around harvest season to asmuch as 42 percent in the leaner season. Theunemployment rate hovers at around40 percent. High annual average growth ratesat 12 percent in the past few years likely havehad positive impacts on reducing poverty andgenerating employment at the margins, whichare undoubtedly hard to measure (see PovertyProfile chapter). Afghanistan’s poverty andunemployment have the following key characteristics:• High vulnerability: A significant numberof Afghans are concentrated around theHigh growth rates: GDP per capita nearlydoubled from $147 in 1381 to $289 in 1385 (excludingopium). Nevertheless, GDP per capitais still one of the lowest in the world. Continuedhigh rates of growth will be essential toachieve further increases in average per-capitapoverty line, especially among the ruralpopulation. The concentration around thepoverty line implies that even small shockscould further increase national poverty figures.• Seasonality: National poverty has strongseasonality and uneven dispersion acrossthe country.• Working poor: Low salaries subject manyunemployed to the risk of falling below thepoverty line. The poor are concentratedprimarily in the informal sector, whichpays very low salaries and leaves themwithout job protection.The high poverty and unemployment rates aswell as their characteristics suggest that there isa need to sustain high growth rates in the medium-term(sustainability) and results of highgrowth should reduce poverty and generateemployment (quality).incomes. Preliminary estimates of the elasticityof growth on poverty reduction suggest thatthere will be significant reductions in the povertyrate if growth remains strong in the nextfew years. These estimates suggest that thepoverty rate could fall as much as 20 percent-40Afghanistan National Development Strategy (ANDS)

age points – from 42 percent of the populationin 1386 to 22 percent in 1391. 26Sustainable growth rates: High growth ratesin the past few years were mainly supported byforeign assistance and related activities (e.g.construction). Although GDP figures do notinclude the opium economy, this sector hasnonetheless provided job opportunities andsome degree of poverty reduction. However,dependence on foreign assistance and theopium economy will not be sustainable in themedium-term. A shift to private sector ledeconomic growth will be crucial.Quality growth rates: The results of highgrowth should achieve corresponding povertyreduction and employment generation. In thisregard, identifying the best potential sources ofgrowth is important. For example, while agricultureaccounts for 27 percent of GDP (excludingopium), about three quarters of labor forceis employed in that sector. As a sudden shift oflabor force from agriculture to other sectors isunrealistic, an increase in agricultural productivityis one of the best strategies to enablehigher contributions from the agriculture sectorto quality growth rates.State of the economy and constraintsto growthEconomic growth has been high but volatile.Between 1381 and 1385, (2002-06) the annualaverage growth rate was 11.7 percent, the highestin the region. The growth rate of industryand services were either constant or accelerating,while agricultural growth has remainedvolatile (Figure 4.1). Sectoral breakdownsshow that while growth rates of industry andservices were constant or accelerating, those ofagriculture have experienced high volatility.Cereal production, which accounts for approximately75 percent of agricultural output,is susceptible to weather conditions. In industries,manufacturing and construction (heavilysupported by reconstruction activities and foreignassistance) contributed equally to growth.However, in manufacturing, ‘food, beverageand tobacco’ is dominant with few other significantcategories. Services, transportation,government services, and wholesale and retailtrading also account for significant contributionsto economic growth rates. This suggeststhat agriculture and its related sectors (manufacturingof food, beverages and tobacco alongwith transportation, trade, and services) arecurrently the dominant activities in the economy.26 Preliminary work done by World Bank, based on NRVA 2005data. Elasticity of growth on poverty reduction calculated usingBourguinon’s method.Figure 4.2. Contribution to growth ratesMacroeconomic Framework 41

One of the most significant developmentalachievements has been the maintenance ofmacroeconomic stability. Successful currencyreform in January 2003, alongside prudent fiscaland monetary policy (e.g. no-overdraft policyto finance the budget deficits) have contributedto achieve macroeconomic stability reflectedin the deceleration of inflation rates andstable nominal exchange rates (figure 4.3). 2727 SY1386 inflation rates are likely to increase to around 10 percentdue to higher fuel prices and subsequent increases in basiccommodity prices. Stable nominal exchange rates (with combinationof higher than US inflation) mean appreciation of real exchangerates. This leads to an issue of “Dutch Disease” and competitiveness.Figure 4.3. Macroeconomic stabilityIn flation Rates3025Inflation rates (LHS)Exchange Rates60585620151050Exchange rates (RHS)SY 1381 S Y1382 SY 1383 SY 1384 S Y1385 SY 13865452504846444240Due to increasing challenges posed by insecurityin some areas of the country, opium hasbecome Afghanistan’s leading economic activity.28 Opium production increased in 2007 by34 percent to 8,200 tons. The impact of theopium economy on the overall economy, polity,and society is profound, including someshort-term economic benefits for the ruralpopulation. However, these are vastly outweighedby its adverse effects on security, politicalnormalization, and state building, whichare key elements of high, sustainable and qualitygrowth.During the past five years foreign assistancehas averaged about 40 percent of GDP, ofwhich roughly one third was channeledthrough the core budget while the remainder28Data is taken from “Afghanistan: Opium Survey 2007”(UNODC, October 2007).was spent outside the government budget system(Figure 4.4). 29 One of the Government’skey macroeconomic 30 policy objectives will beusing both fiscal and monetary policy to mitigatethe most detrimental effects of foreign assistanceand ward off any potential “Dutch Disease”effects.29There is a possibility of significant underreporting/underestimatesof external assistance (especially on security)in recent few years.30 This cited is directly from “Responding to Afghanistan’s DevelopmentChallenge: An Assessment of Experience During2002-2007 and Issues and Priorities for the Future” (WilliamByrd, World Bank South Asia PREM Working Paper Series,Report No. SASPR-11, October 2007).42Afghanistan National Development Strategy (ANDS)

Figure 4.4. Size of foreign assistanceAfghanistan faces daunting challenges toachieve high, sustainable and quality growthled by the private sector. In recent years, aninformal equilibrium has been evolving (figure4.5). That is, increased informal activitiesnegatively impact on the rule of law, weakeninggovernance and the effectiveness of thestate institutions. This suggests that some keyaspects of state building and the formalizationagenda are going off-track, and that overallprogress is being threatened by the:• emerging political patterns in which conflict-generatedpolitical groupings are playingan increasingly important role;• increasing linkages between some key figuresand the consolidating drug industry;• continuing insecurity in some parts of thecountry; and• modalities by which most aid is deliveredcoupled with disappointing results thus fardespite large aid inflows.Figure 4.5. The Evolving Informal EquilibriumMacroeconomic Framework 43

GROWTH PROJECTION ANDSTRATEGYThe average annual economic growth rate isprojected to be 8.1 percent for 1387-1391. Insubsequent years, growth rates are projected togradually decelerate from 9.0 percent in 1387 to7.0 percent in 1391 (Figure 4.5). This growthscenario envisages the following developments:• Agriculture: Agriculture is expected togrow 5 percent per year, the same rate asthe average growth rates for 1382-86.• Industry: Industry is expected to grow 9percent per year, supported by high investment(average investment is 34 percentof GDP). The main source of investment isexpected to shift from public investment toprivate investment (including domesticand foreign direct investment) with domesticinvestment initially leading foreign directinvestment.• Services: The services sector is also expectedto grow 9 percent. Although stillhigh in absolute terms, this is lower thanthe previous years’ average (14.5 percent).Figure 4.6. Medium term growth projectionsA key assumption underlying this ambitiousgrowth projection is an increasing role of theprivate sector over the projection period. Thisassumption is based on the understanding thatstrong private sector development better contributesto creating employment and hencepoverty reduction. Under the current environment(i.e. the evolving informal equilibrium),it is essential to break the informal equilibriumusing the following strategies:• Strengthening governance: Fighting corruptionwill require credible demonstrationsby high-level government – includingstrong commitments and clarification of institutionalarrangements; public administrationreform including merit-based selectionand appointment of civil servants;improving governance at the sub-nationallevel; further strengthening of public financialmanagement; and strengthening theexternal and public accountability mechanism(e.g. external audit, National Assemblyreview).• Responding to the challenge of the opiumeconomy: Past lessons have indicated thata key principle for success is focusing onthose parts of the drug industry that posethe greatest danger to the nation and itsdevelopment agenda – in other words, thelarger drug traffickers and their sponsors.Some strategies could include:oFocus eradication efforts on wealthieropium poppy cultivating areasand also areas that are new topoppy cultivation;44Afghanistan National Development Strategy (ANDS)

ooooIncrease interdiction efforts againstmedium and large drug traffickersand their sponsors;Actors associated with the drug industrywho are discovered to holdpowerful “legitimate” positions ingovernment or private sectorshould be removed and prosecuted;The government should focus onsensible rural development, insteadof short-term alternative livelihoodsprograms;The counter-narcotics dimensionshould be mainstreamed into developmentprogram.• Improving macroeconomic policy managementand aid effectiveness: It is veryimportant that macroeconomic policy formulationis transparent and avoids shorttermad-hoc measures. Some strategiescould include:oooFurther strengthening coordinationamong relevant line ministries. It isimportant that line ministries sharethe same view regarding the directionof macroeconomic policy;Continuing to enhance the budgetprocess and the role of the budgetas the central instrument for policyand reforms;Maintaining macroeconomic stabilityand progressing toward fiscalsustainability together with prudentmonetary policy will continueto be important.In order to break the evolving informal equilibrium,we must also ameliorate specific privatesector investment constraints. The results ofWorld Bank’s investment climate assessment in2005 show that more than half of respondentsidentify: (i) electricity; (ii) access to land;(iii) corruption (discussed above); and(iv) access to finance as major constraints toprivate investment. As the increase in privateinvestment is a key assumption to achievehigh, sustainable and quality growth rates, thefollowing specific strategies are suggested: 31• Electricity: Involve the private sector toexpedite power generation and distributionprojects in urban centers as well as in ruralareas. Specific strategies include:oooDeveloping the legal framework topermit and encourage power generationand distribution by the privatesector;Accelerating the execution of prioritypower generation initiatives;Improving distribution system.• Access to land: Implement measures tofacilitate access to land by clarifying propertyrights, simplifying procedures for thetransfer of titles, and allowing for longertermleases. Specific strategies include:oooDeveloping a strategy for industrialparks;Implementing improved and simplifiedprocedures for transfer ofprivately owned land;Developing better legal frameworksfor land registration and land adjudication.• Access to finance: Strengthen the financialsector to increase access to credit and financialservices, paying special attention toalleviating capacity constraints. Specificstrategies include:o Enacting an appropriate legalframework;ooBuilding capacity in the financialsector;Increasing the availability of financialservices in rural areas.Scaling up of industrial parks is a possibleshort-term solution: Although in themedium-term the Government should tacklethe abovementioned issues, in the short-term31 See the Government’s “Policy for Private Sector Growth andDevelopment”, presented at the Enabling Environment Conference,June 2007.Macroeconomic Framework 45

the government could work to “scale up” andmaximizing the effectiveness of IndustrialParks. This could provide investors and entrepreneurswith security, access to land, infrastructure(power, water, convenient transport)and some insulation from red tape and corruption,at least on an “enclave” basis.Opportunities and Risks: There exist severalpotential exogenous shocks which could seriouslyaffect growth projections. Shocks such asdrought pose a serious threat to an economydependant on agriculture. Insecurity too canharm private sector development, investment,employment creation, and reconstruction efforts,which could have a negative impact onoverall growth. Finally, global economic conditionspose serious risks for the Afghan economy.A precipitous rise in oil prices wouldhamper economic growth especially via theprivate sector. Also possible slowdowns in theglobal economy and donor fatigue also poserisks.Factors which may affect this macroeconomicframework in a positive or negative way, including:• The political situation: Presidential andparliamentary elections are scheduled to beheld in 2009. Successful and peaceful electionsprovide confidence in political stabilityto the private sector and internationalcommunity;• Insecurity: Security costs can be as high as15 percent of total revenues.32 Further insecuritywould add additional costs tocompanies’ operations and inhibit privateinvestment;• Weather: Agriculture is directly affected byweather conditions. As the sector employsabout 70 percent of the total labor force,variations in agricultural production have asignificant impact on poverty and employment.FISCAL POLICYFiscal policy remains a key policy instrumentfor macroeconomic stability, and the budget isan important tool to implement the ANDS andprioritize public sector activities. Prudent fiscalpolicy and effective budget planning and executionwill support sustained robust economicgrowth. Proper budget allocation enables thereconstruction of basic infrastructure, supportsprivate sector development, improves overalleconomic efficiency and enhances the population’sstandard of living, especially for thepoor. Despite the increase in expenditures inabsolute terms, the Government remains committedto sound expenditure management andincreased revenue mobilization, as well as ensuringfiscal sustainability. Fiscal prudence remainsthe underlying principle, which ensuresmacroeconomic stability and provides the governmentsome flexibility to respond to externalshocks.The Government continues efforts to increaserevenues by improving revenue administrationand enforcement and broadening the tax base.This will be essential for achieving fiscal sustainability,delivering priority developmentexpenditures and a reduction in aid dependency.Without domestic revenue mobilizationAfghanistan will remain heavily dependent onexternal support over the long-term. The domesticrevenue to GDP ratio is expected toreach 8.2 percent in 2007, which substantiallyexceeds the revenue target in the AfghanistanCompact for 2010. 33 Although domestic revenueis expected to reach 10.7 percent of GDP in1391 (Figure 4.6), Afghanistan’s revenue-to-GDP ratio still is among the lowest in theworld, requiring sustained commitment to pursuerevenue reforms. In the medium-term, abroad-based consumption tax will play an importantrole in domestic revenue mobilization.In order to accomplish this, broadening the taxbase, improvements in tax policy, administrationand enforcement will be implemented. Inthis regard an immediate high priority for theGovernment is the enactment of the amendmentsto the income tax law by National Assembly.Progress in domestic revenue mobilizationin coming years will enable the Governmentto be less dependent on foreign assistance.New tax measures will focus equally onimproving the revenue intake, while simultaneouslyreducing the cost of doing business,improving the country’s investment environmentand enhancing competitiveness.32 The Investment Climate in Afghanistan: Exploiting Opportunitiesin an Uncertain Environment (World Bank, 2005).33 In the Afghanistan Compact, revenues are projected to exceed8 percent of GDP in 1389.46Afghanistan National Development Strategy (ANDS)

Consistent with the growth strategy of theGovernment, the prioritization framework ofbudgetary allocations is expected to allocatesignificant resources to productive sectors suchas infrastructure, health, education, agricultureand rural development, and rule of law andgovernance. Cumulative total public expendituresduring 1387-91 in roads, energy, waterand irrigation, airports, and communicationstechnologies alone are expected to reach about$11 billion (or about one-third of the total expenditures).34 Similarly, health and educationsectors are expected to receive about 17 to 18percent of the total resources – considerablyhigher than current allocations. Other priorityareas include agriculture, rural development,rule of law and governance, where the Governmentwill invest significant resources.34 Figures in the macroeconomic framework (see tables) arebased on projected execution rates of the core developmentbudget. As a result, the original total budgeted figures for the coredevelopment budget can be higher than those in the macroeconomicframework of the ANDS.Figure 4.7. Domestic revenues and operating expenditures as a percent of GDPThe Government is taking measures to improvethe overall absorption capacity and executionof projects in these sectors through more effectivepublic finance management and efficientproject management methods. Key public financemanagement reforms include introductionof the medium term budget framework(MTBF), program and provincial budgeting.Other Government reforms are targeting projectpreparation and management, as well asprocurement procedures. The overall developmentbudget execution rate has been steadilyincreasing – the core development expenditurerate for 1385 increased to 54 percent from 31percent in 1383. The public finance managementreforms and prioritization process areexpected to improve the overall fiscal situationand improve the quality of public expenditures.Significantly higher execution rates andimproved quality of public expenditures in keysectors over the medium term in turn will improvethe growth and development process inthe country.Government expenditure policy will focus oncreating an enabling environment for the privatesector; enhancing production capacity andproductivity; and improving the quality of lifeof the population. The Government’s budgetallocation prioritization is expected to improvephysical infrastructure, enhance human capitaland build institutions necessary for private sectorled growth and increased employment opportunities.Macroeconomic Framework 47

Core budget expenditures will remain constantat about 25 percent of GDP although the allocationof various expenditures changes over timeto align with the Government’s developmentpriorities. Throughout the projection period,while the share of operating expenditures decreases,that of development expenditures increases.A considerable portion of expendituregoes to security, counter-narcotics, roads andsocial expenditures (i.e. education and health).Figure 4.8. Domestic revenues versus operating expendituresFiscal sustainability is essential to ensure macroeconomicstability. The operating budgetbalance (excluding grants) is projected to improvefrom a deficit of 4.4 percent of GDP in1386 to a balanced budget 1391 (Figure 4.7).This requires that the donor grants to the operatingbudget (e.g. Afghanistan ReconstructionTrust Fund) will free up domestic revenues forkey development expenditures after 1391.Two key fiscal policy challenges are on the horizon:the integration of the external budgetinto the core budget, and improvement of theabsorption capacity of line ministries. Currently,more than two thirds of foreign assistancedoes not go through the Government’streasury account, and thus information regardingthese expenditures is often partial and difficultto obtain. This impedes the Governmentin its attempts to allocate scarce financial resourcesin line with its priorities and developmentobjectives. Donors can greatly help byproviding more information and/or shiftingfrom the external budget to the core budget; theGovernment can also improve the situation byarticulating clearer priorities – which should beachieved through the ANDS itself. In the pastfew years, the government has spent less thanavailable financial resources, resulting in delayedinvestments needed for development.Improving the absorption capacity of the Government,therefore, will continue to be important.Prudent debt management will continue to beessential as Afghanistan moves towards fiscalsustainability. As a supplement to donor fundsthe country expects to continue to use limitedamounts of debt to finance specific projects andvarious program requirements. It is expectedthat any debt received will carry terms that arebelow market in nature as this is a requirementunder Afghanistan’s current agreements withvarious international financial institutions andthe Paris Club group of creditors. Debt sustainabilityin future periods is an importantgoal for the Government to achieve and willcontinue to be a guiding principle governingthe country’s use of debt in the coming years.MONETARY POLICYConsistent with DAB’s medium to long-termstrategic objectives in conducting monetary48Afghanistan National Development Strategy (ANDS)

policy, it will remain vigilant against inflation.The main goal is to maintain core inflation atsingle digit levels, preferably between 2.5 to 4percent, although this will continue to be agreat challenge. 35Nominal exchange rates are expected to remainconstant at around Afs 50 against US dollar.Stable exchange rates will contribute to containinflationary pressure from imported productsas well as provide predictability to the privatesector. Nevertheless, stable nominal exchangerates imply the appreciation of the real exchangerates. In the short-term, the impacts onthe appreciation of the real exchange rateswould not significantly hurt competitiveness asother costs associated with security and electricityseem bigger than the negative impactson the exchange rate appreciation. However,the Government will keep its eyes on the impactof real exchange rate appreciation forcompetitiveness in the medium-term.Access to finance is one of the most severe constraintsto the private sector development.High interest rates, caused by high inflationrates and a high risk premium will threaten thefinancial sustainability of the private sector.Such high interest rates could jeopardize thegrowth of the nascent financial sector in thecountry. In the medium to long term, prudentmonetary policy together with a disciplinedfiscal policy will contribute to a reduction inthe risk premium. Effective financial intermediationand macroeconomic stability will eventuallybring down real interest rates in the longrun as prospects for long term stability improve.The central bank will closely monitorthe monetary developments and ensuing liquiditysituation along with developments ininterest rates and credit markets and will reactappropriately to these developments.To achieve price stability, DAB intends to expandthe menu of instruments that have not yetbeen fully utilized in directing monetary policy.The Central Bank currently relies on foreignexchange auctions as the most dominanttool to maintain price stability and reduce exchangerate volatility. The use of other tools of35 Note, the recent rapid increase in global prices could potentiallycreate a challenge for the Government and DAB to maintaincore inflation between 2.5 and 4 percent in the short term.monetary policy – such as Open Market Operations(OMO) and Reserve Requirement Ratio(RRR) – has so far been very limited. Othermonetary policy tools, such as short-term interestrates and discount rates, have not yet beenintroduced due to the lack of a market for suchsecurities.DAB will issue capital notes with various maturityperiods and create a secondary marketfor trading of these notes. The more capitalnotes are traded in secondary markets, themore the need for foreign exchange auctionswill be diminished. Overall, by creating a capitalmarket and a strategic repositioning ofmonetary policy tools through gradual transitioningfrom foreign exchange auctions to utilizingother tools of the monetary policy, DAB’sroom for maneuverability will expand.Banking systemThrough its regulatory mandate, DAB is committedto help banking institutions to managethe risks involved in their operations. Pursuantto Paragraph 2 of Article 2, and other articlesstipulated in the DAB law, the central bank isin charge of supervising all depository financialinstitutions that are legally authorized to takedeposits from the public on a continual basis.DAB will continue to supervise banks’ lendingpractices and encourage transparency and accountabilityin the entirety of their financialtransactions, in order to avoid bank failureswhich can negatively impact the economy.DAB will strive to encourage financial institutionsto actively take part in economic developmentsby granting short-term, medium-termand long-term credits to small and mediumenterprises (SMEs), owners of factories andconstruction companies and to start mortgagelending to commercial and residential customers.Consumer lending should also becomeavailable to the citizens of this country. To doso, DAB needs to remove any prevailing obstaclesand unnecessary legal constraints by draftingrequired laws and regulations and submittingthem for approval to the National Assemblyas quickly as is practicable. Fortunately,DAB has already taken significant steps indrafting four laws which will facilitate medium-to long-term lending in the country.Macroeconomic Framework 49

External sectorExports are unlikely to increase substantiallyfrom the current very low base. Afghanistan’sexports are currently dominated by low valueaddedagricultural exports and carpets. Scalingup the export base would require significantFDI (Foreign Direct Investment) inflows. Underthe current situation, FDI is concentrated in thetelecommunications sector and the financialsector, which are not export-oriented industries.Large scale exploitation of copper, naturalgas, petroleum and precious minerals will helpin the medium and long term, although investmentsin this sector are relatively lumpy.The Current Account Balance, excluding the reexportof goods, is likely to decline over theprojected phase. This is largely due to an anticipateddecline in the imports-to-GDP ratio,particularly for manufacturing consumedgoods. In the outer years, local products andservices are expected to become a more significantfactor in Afghanistan’s economy.FINANCING THE ANDSThe Government has determined sectoralbudget ceilings that reflect priorities establishedin the ANDS (see Table 4.9). This reflectsthe Ministry of Finance’s adoption of asystem of program-based budgeting that is designedto achieve the country’s developmentneeds. It is based on levels of domestic anddonor financing in previous years and projectionsfor future revenues.This process is an integral part of the Government’sMedium-Term Fiscal Framework(MTFF) and the preparation of the budget.From 1387 (2008/09) onward the MTFF and thebudget will be based on the prioritization establishedin the ANDS and the utilization ofresources for the implementation of ANDSthrough the budget.These sectoral expenditure ceilings reflect thefact that security will remain the highest priority.Over the lifetime of the ANDS, securityspending is expected to total $14.2 billion. Thefunding for this sector is expected to come primarilythrough international assistance. TheGovernment estimates that in future years, theneed for security assistance will decrease as thethreat declines. However, given the uncertainnature of the instability facing Afghanistan, theGovernment envisions the possibility of potentiallysignificant revisions to the financing envelopefor the security sector.Table 4.9. Overall Financing Envelope for the ANDS 1387-1391 (2008-2013)13872008/09US$m13882009/10US$m13892010/11US$m13902011/12US$m13912012/13US$mTotalUS$mCore + External Budget FundingDomestic Revenue 887 1,104 1,351 1,611 1,911 6,864Total Assistance from Donors* 6,513 4,960 4,814 4,398 3,908 24,593Total Funding* 7,400 6,064 6,165 6,009 5,819 31,457Budgeted Core + External ExpenditureSecurity 3219 2585 2679 2790 2906 14179Infrastructure 1781 3093 3681 4180 4451 17185Agriculture and Rural Development 829 921 916 909 912 4486Education and Culture 742 893 980 1077 1181 4872Good Governance and Rule of Law 374 558 640 685 728 2985Health & Nutrition 325 465 530 563 595 2478Economic Governance & PSD 237 215 230 244 260 1186Social Protection 192 359 394 421 449 1815Others (Sub Codes) 205 198 185 170 157 915Total Expenditure 7,903 9,286 10,236 11,038 11,637 50,100 36* Based on discussions with donors and the 1386 (2007) financial review36 The level of expenditure in Table 4.9 is based on an assumption regarding the amount of financing which will be made available at theforthcoming ANDS donor conference in Paris. The macroeconomic framework which currently underpins the ANDS does not assume asimilar scaling-up of donor assistance and is therefore not entirely consistent with Table 4.8. Following the donor conference, the macroeconomicframework and the ANDS expenditure ceilings will be updated to reflect the actual level of donor assistance.50Afghanistan National Development Strategy (ANDS)

In the short term, the Government will focus itspublic expenditure programs on investments ininfrastructure, agriculture and rural developmentin recognition of the high importance ofthese sectors for the development of the privatesector and for employment growth. Over thelifetime of the ANDS, the Government will focusprogressively more resources on education,governance, health, and social protection. TheGovernment commits to allocating sufficientresources to the key priorities of strengtheningeconomic governance and improving the enablingenvironment for private sector development.CONCLUSIONFor Afghanistan to become a peaceful andprosperous country able to provide its peoplewith an acceptable standard of living, it has tobuild a strong economic foundation that willsupport long term and broad-based economicgrowth with the private sector as its engine.With sound macroeconomic policies undertakenduring the last five years, per capita incomenearly doubled. For the poverty reductiongoals of the ANDS to be achieved, comparablelevels of economic growth will be neededin comings years. This will require a conduciveenvironment for social and economic development,which in turn depends on the continuedmaintenance of sound and stable macroeconomicpolicies to enable the private sector toestablish itself as a vigorous engine of growthand employment creation.A key strategic objective of the ANDS is to establisha secure economic environment inwhich it will be possible to attract sufficientlevels of private sector investments that willlead to the increased employment of human,financial and natural resources in more productiveways. A critical element in achieving thisobjective will be to substantially increase investmentin capacity development and creatinga skilled workforce in order to expand employmentopportunities and increase incomes.Average economic growth is projected at an 8.1percent rate for 1387-1391. A key assumptionunderlying this ambitious goal is an increasingshare of total investment will come from theprivate sector. To reach these goals, the Governmentwill continue to maintain strong macroeconomicmanagement characterized by fiscalsustainability, prudent monetary policies,and the avoidance of short-term ad hoc measures.The ability to implement the projects and programsincluded in the ANDS depends upon theresources that will be available. In this regard,a major contribution of the ANDS has been thedetermination of budget ceilings that reflect theGovernment’s sectoral priorities. These arebeing built into the MTFF and the Ministry ofFinance’s program-based budgeting systemfocused on achieving the country’s developmentneeds. Security will remain the Government’shighest priority, while the public expenditureprograms for investments in energy,water and irrigation, transportation infrastructure,agriculture, agro-based industry, and ruraldevelopment will remain high priorities,acknowledging the high importance of thesesectors for the development of the private sectorand for long term and sustainable employmentgrowth. In the coming years the Governmentwill also devote progressively moreresources on education, governance, health,and social protection.Macroeconomic Framework 51

CHAPTER 5SECURITYSecurity in all parts of the country is essentialfor economic growth and poverty reduction.The ANDS long term strategic vision for theSecurity sector is to ensure security of state,persons and assets through the provision of acosted, integrated and sustainable national securityinfrastructure and law and order policy.The Government has developed the NationalSecurity Policy to be implemented through theSecurity Sector Reform (SSR) program. Thiswill strengthen and improve coordinationamong the Afghan National Security Forces(ANSF), ISAF/NATO, CSTC-A. While continuedinternational support is vital, the Governmentaims to assume an increasing share of thesecurity burden – the Afghanization of thecountry’s security activities. However, Afghanistanstill faces a number of serious challengesbefore it can assume full responsibilityfor its own security. Terrorism, instability andweak capacity of governance are preventingthe Government from establishing effectivecontrol in some areas, particularly in the southand south-east. The large-scale production ofnarcotics continues to provide funds to thesegroups. Unexploded ordinance remain a significantthreat, with some five thousand citizenseither killed or wounded in mine explosionssince 1380 (2001). Currently only two ofthe country’s 34 provinces are completely clearof land mines.The “Afghanization” of the country’s securitywill require: (i) comprehensive security sectorreform; (ii) a new division of labor betweenthe international security forces and the AfghanNational Army (ANA); (iii) a reassessment ofthe design, composition and size of the army;(iv) accelerated training for the officers; and (v)an intensified national recruitment drive.CURRENT SITUATIONAfghanistan currently faces a whole range ofsecurity threats. To counter these threats andensure national interests the Government plansto strengthen the military, economic and politicalties with its regional and international partners.The security objectives are aimed at protectingthe country’s independence, establishinga democratic and economically stable society,free of corruption. Implementing developmentpolicies outlined in ANDS can only bepossible if there is peace and security in thecountry because security and sustainable developmentinevitably go hand in hand.NATO is currently the major force throughwhich the International Community is providingsecurity assistance to Afghanistan with theInternational Security Assistance Force (ISAF)in cooperation with the Afghan Government.The Government aims to secure stronger commitmentsfrom NATO whilst building the capacityof Afghanistan’s national armed andother security forces. The Government is intenton building administrative capacity, investingin human resources development and justicesector, and spurring private sector developmentto help improve Afghanistan’s internalsituation. An educated and prosperous societyis less likely to be influenced by conceptsspread by extremist elements. A strong NationalSecurity Structure will facilitate developmentof Afghanistan’s economy, social fabricand thus will enhance national unity andpeaceful coexistence.Terrorism and illegally armed groupsThe major challenges to stability are terrorismrelated,due to the revival of the Taliban in thesouth and southeast. The Government’s securityforces and their international partners willfocus on fighting terrorism, illegally armedSecurity 53

groups and neutralizing armed elements operatingalong the borders. Given that many ofthese groups receive support from foreignsources, both regional cooperation and diplomaticinitiatives are vital. To defeat terrorism,new strategies attuned with political objectivesof the Government are being adopted, such asstrengthening the effectiveness of ISAF andCoalition Forces assistance. This includes specialattention to building the professional capabilitiesof Afghan security forces designed todefeat terrorism and to render assistance tovictims of war and avoid civilian casualties.The government aims at strengthening itsownership over law enforcement to effectivelyovercome internal security problems. Furthermore,combating criminal activity and increasednarcotics production are integratedcomponents of the security strategy.Countering a terror-dominated Taliban andillegally armed groups is an extremely complexform of warfare. In many ways it is a competitionfor the support of the population. The activesupport of the Afghan people is vital tosuccess. This demands a firm political will andsubstantial persistence by the Government andthe Afghan people, and unwavering long termcommitment and patience from the internationalcommunity. Government legitimacy is apre-requisite if we are to isolate the Taliban.The Government’s support and legitimacy willincrease only if we can assure the security ofthe people and provide them with the basicnecessities of life: food, water, shelter, healthcareand the means to make a living. The useof excessive force in operations should beavoided, targets should be accurately identified,and collateral damage and especiallycasualties among civilians be avoided as muchas possible.NarcoticsPoppy cultivation and production of narcoticsposes a serious challenge to Afghanistan’s security.The high level corruption that enablesthe narcotics industry to thrive endangers foreignassistance to development. Huge revenuesfrom opium and production of narcoticshave drawn in terrorist elements, organizedcrimegroups and extremists. Revenues fromopium and drug trafficking is also a considerablesource of funding to remnants of illegalarmed groups. The Government’s strategy coordinatesinternational efforts with Governmentplans and addresses issues such as thedevelopment of economic infrastructure, demandreduction, poppy eradication, counteringdrug trafficking and establishing alternativelivelihood programs. As the police are reformedand the judicial system strengthened, amajor effort will be made to reduce corruption,better policing officials involved in cultivationand interfering with eradication efforts.Illegal Armed GroupsWars and violence have turned Afghanistaninto a fully armed society where people useguns to earn a living or to control resources.Illegally armed groups pose a direct threat tonational security. The long-term presence ofillegal armed groups in different parts of thecountry is obstructing Government control,hindering development of local democraticinstitutions and posing a serious threat to nationalunity. They are obstacles to the rule oflaw and stand in the way of social and economicdevelopment. Many commanders ofillegal armed groups have close links with policeor even belong to local governments. Thissituation enhances corruption and is considereda key obstacle in cracking down on thenarcotics industry. Unless the Government isable to provide adequate security with policepresence in every village and district, peoplewill feel the need to keep guns for selfprotection.People are now required to have alicense to carry arms and this law needs to beenforced effectively.The Disbandment of Illegal Armed Groups(DIAG) and the continuation of the Disarmament,Disintegration and Rehabilitation program(DDR), is the first step in disarming illegalarmed groups. The existence of arms andammunition caches and mines in differentparts of Afghanistan also pose a threat, becauseopponents of the government can use them forterrorist operations. The government –in cooperationwith international organizations – istrying to garner support from local communitiesto get rid of these arms caches.Mines and Explosive Remnants ofWar (ERW)Mines and other ERWs are major obstacles toinfrastructure and economic reconstruction.The benchmark for locating and destroying all54Afghanistan National Development Strategy (ANDS)

stockpiles of anti-personnel mines was reachedin 1386 (October 2007). However the existenceof mines and explosives still pose a threat tothe lives of four million Afghans. Only twoprovinces have been completely cleared ofmines. Statistics have shown that about 5,000Afghans have been either killed or wounded inmine explosions since 1380 (2001). Unknownarms and ammunition caches and mines in differentparts of Afghanistan pose an additionalthreat because opponents of the Governmentcan use these for terrorist operations.POLICY FRAMEWORKThe National Security Policy is drafted for aperiod of five years and reviewed annually.The policy contains two interrelated strategies:National Security Strategy and Security SectorReforms Strategy.The Security Sector Reforms Strategy establishesa mechanism to regulate relations betweenministries and departments to ensureeffective coordination. The policy encompassesthe functions of other government departmentsincluding the legislative, judiciary and law enforcement.The reforms establish responsibilitiesand coordination in the security sector forimplementation of programs and give guidelinesfor planning, prioritization, assessment ofresources, and operations. Sustained financialsupport is needed to avoid compromising eitherdevelopment or security objectives. TheOECD DAC Implementation-Framework forSecurity Sector Reform provides a usefulframework for increasing national ownershipand laying out the core elements of a ‘rightfinancing’framework.37The Government is committed to addressingthe following strategic benchmarks to achievethe security sector strategic vision:• The Afghan National Army: (i) ThroughJaddi 1389 (end-2010), with the support ofand in close coordination with the government,the NATO-led ISAF, OperationEnduring Freedom (OEF) and their respectiveProvincial Reconstruction Teams(PRTs) will promote security and stabilityin all regions of Afghanistan, including bystrengthening Afghan capabilities. (ii) ByJaddi 1389, (end-2010): the Governmentwill establish a nationally respected, professional,ethnically balanced ANA that isaccountable, organized, trained and wellequipped to meet the security needs of thecountry. It will be increasingly fundedfrom Government revenue, commensuratewith the nation’s economic capacity. Supportwill continue to be provided to expandthe ANA towards a ceiling of 80,000personnel with additional 6,000 personnel,including trainers. The pace of this expansionwill be adjusted on the basis of periodicjoint quality assessments by the Governmentand the international communityagainst agreed criteria which take into accountprevailing conditions.• The Afghan National Police: By Jaddi 1389(end-2010) a fully constituted, professional,functional and ethnically balanced AfghanNational Police and Afghan Border Policewith a combined force of up to 82,180 willbe able to effectively meet the securityneeds of the country and will be increasinglyfiscally sustainable.• DIAG: All illegal armed groups will disbandedby 20 March 2011 in all provinces.Approximately 2,000 illegal armed groupshave been identified. Nearly 300 are nowfully or partially disbanded and 1200 moreare engaged to cooperate with DIAG.• Removing Unexploded Ordnance: ByJaddi 1389 (end-2010), in line with AfghanistanMDGs, the land area contaminatedby mines and unexploded ordnancewill be reduced by 70%; and by end-2010all unsafe, unserviceable, and surplus ammunitionwill be destroyed. The goal is toclear 90% of all known mine/ERW contaminatedareas by 1391 (2012). The goalfurthermore is to clear all emplaced antipersonnelmines by 1391 (1 March 2013) accordingto the Ottawa Convention. A capacityto remove mines and ERWs beyondthe 2013 MAPA transition deadline probablywill be needed.• Counter-Narcotics: By 2013, the area underpoppy cultivation will be reduced by halfcompared to 2007 levels.The security sector expected outcomes are:• Effectively coordinated security sector,where decisions and plans are timely madeand implemented and external and internal37 See http://www.oecd.org/dataoecd/43/25/38406485.pdfSecurity 55

threats are deterred, contained or eliminated;• ANA and ANP operationally capable ofperforming those missions and tasks assigned;• ANP and ABP expenditures are fiscallysustainable;• Citizens have an enhanced level of justicewith the help of Police and the Army;• Narcotics industry is reduced in line withcounter-narcotics national strategy;• Reduction of corruption in the ANA, ANPand amongst other government officials;• Reduced level of deaths and casualtiescaused by UXOs, reduce the number of affectedcommunities and increased safetyprecautions;• Enhanced public trust on government abilityto deliver justice and security as illegallyarmed groups are disbanded and reintegrated;and• Eventual eradication of Poppy Productionand crack down on drug trafficking.SECURITY INSTITUTIONSAfghanistan’s security sector includes a numberof institutions responsible for maintainingsecurity and enforcing laws. Increased capacityand improved coordination is necessary toachieve the strategic objectives for this sector.The security sector includes ministries, departmentsand institutions that are responsiblefor enforcing security and laws to protect theGovernment and the Afghan people. Theseinclude among other: National Security Council(NSC), Office of the National Security Council(ONSC), the Policy Action Group (PAG),Ministries, National Directorate of Security(NDS), National Army and Air Forces, AfghanNational Police (ANP), Presidential Guard, ParliamentaryCommissions on Security andMonitoring, Public Audit and Evaluation Offices,justice and judicial institutions, Ministryof Justice, Prosecution Departments and theHuman Rights Commission. To improve professionalcapabilities of the security institutionstheir duties and responsibilities need to be coordinated.This will guarantee appropriateregulations, set priorities in policy making,help forecasting financial expenses and ensurecorrect allocation of funds.National Security CouncilThe National Security Council is the highestinstitution for identifying and addressing nationalsecurity issues. The Council, led by thePresident, is responsible for developing strategiesand policies, determining priorities, and isresponsible for the oversight and coordinationof the security sector and institutions. The NationalSecurity Advisor identifies the needs andrequirements of the sector and leads the PolicyAction Group (PAG) which has been establishedas an emergency response mechanism toaddress the deteriorating security conditions inthe six southern provinces. The PAG directsand coordinates security, development work,reconstruction and strategic relations across allfunctional areas of the Government and theInternational Community (both civilian andmilitary).Ministry of Defense (MoD), and theAfghan National Army (ANA)MoD is responsible for establishing and maintainingpeace and security. The Minister ofDefense is a civilian with the ministry beingnon-political and non-partisan. MoD standsready to provide support to the MoI, which isresponsible for border control in emergencysituations. Reforms and capacity building initiativesare in process to make the MoD moretransparent and accountable with a strong administrationand internal discipline. The MoDis developing an ethnically balanced, nonpoliticalarmy with a single military doctrineand operational capabilities. Education, trainingand equipping the national army to create aprofessional army with strong operational capabilityto fight terrorism and armed groupsare top priorities. The MoD must ensure thatall military units under its command observeand respect Islamic religion and Afghan values.MoD’s primary responsibilities include:• National defense against foreign militaryaggression;• Fighting illegally armed groups and terrorism,and help establish the rule of law;• Deter wars and ensure stability to securenational interests;• Play an active part to solve crisis and controlemergency situations;• Render assistance to civilian officials tocontrol any emerging security crisis, naturaldisasters and emergency situations;56Afghanistan National Development Strategy (ANDS)

• Protect and expand Afghanistan’s nationalinterests; and• Support the National and Border Police tocurb organized crime.To achieve these goals, the MoD has establishedthe ANA.The National Army (ANA)The National Army is responsible for protectingAfghanistan’s territorial integrity, upholdingand protecting the Constitution, defendingnational interests and the Islamic religion, andestablishing a favorable environment for publicwelfare and progress. The National Army, ledby civilian leadership and supported by theNational Police, has a mandate to improve internalsecurity. It also plays a role to boost regionalsecurity through military cooperationwith ISAF and regional and international allies.A reassessment of the design, composition andsize of the ANA has led to intensified nationalrecruitment drive and training.Following a presidential decree to establish aNational Army in 2003 the Ministry of Defenseand the Afghan National Army have achievedconsiderable progress. The ministry is responsiblefor maintaining professional cadres todesign appropriate policies, manage the ANAand defense institutions, and establish necessarycoordination among security institutionsand international partners. The quality andquantity of the ANA is rapidly growing, andwill continue to grow until the army is capableof maintaining the stability of the country, defendingits sovereignty, and contributing toregional security. The National Army has amandate to assist the civilian administrationand police whenever needed. If instructed bythe National Security Council, the ANA willcooperate with the National Police, Anti-Disasters Department, Afghan Red CrescentSociety and other civilian charity organizationsto tackle emergency situations requiring disasterresponse and humanitarian assistance.Ministry of Internal Affairs (MoI),and the Afghan National Police (ANP)The Ministry of Internal Affairs is responsiblefor ensuring internal security, establishing therule of law, justice and protecting the country’sinternational borders. MoI’s responsibilitieswith regard to security are to ensure internalsecurity and fight criminal activity. High priorityactivities include:• Crack down on organized and internationalcrimes including drugs and humantrafficking; fight terrorism and other nationalsecurity threats in cooperation withMoD, ANA, ISAF and Coalition forces;• Establish a border police force to controlcross-border movements and assist withcollection of customs revenues in cooperationwith MoD, ANA and Ministry of Finance(MoF);• Enforce justice by detecting crimes, carryout investigations, and promptly handoversuspects to the judicial authorities withoutdelay in accordance with the law;• Provide witness protection and support tovictims of crime and establish detentioncenters;• Implement the DIAG program: Collect unregisteredarms in cooperation with othersecurity departments and implement andenforce new regulations regarding privatesecurity companies.The National Police (ANP)The Police are undergoing reforms aimed enhancingefficiency by improving police trainingand education, upgrading staff and equippingthe department adequately. The current MoITashkeel allows for 82,180 uniformed personnelin the ANP. Police capacities have beenincreasing with extensive help from donorsthat has led to the expansion of governmentcontrol to provinces. However, there is a needto accelerate recruitment, education and trainingprograms to ensure not only professionalperformance but also to improve the reputationof the ANP. Ensuring quality police performanceand accountability of police and the MoI isthe key to stabilization of the society and gainingpopular support for the Government.The Border Police (BP) are responsible for bordercontrol, in cooperation with customs officials.The BP establish check points to monitorcrossings, particularly in areas with suspectedterrorist activity, and are responsible for preventinghuman trafficking, and drug smuggling.The Counter-Narcotics Police of Afghanistan(CNPA) has been especially establishedto work on drug related crimes.Security 57

Significant steps have been taken since 2001 torevamp and train the Afghan National Armyand the Afghan National Police. Police capacitieshave been increasing with extensive helpfrom the international community. Large militiashave been integrated into the Ministry ofDefense, with the majority demobilized. Amulti-sector donor support scheme has beenestablished where individual donors are allocatedresponsibility for overseeing support foreach of the key elements of the reform, including:disarmament, demobilization, and reintegrationof ex-combatants; military reform; policereform; judicial reform; and counternarcotics.National Directorate of Security (NDS)The National Directorate of Security is responsiblefor lending support to the military andpolice in fighting terrorism, anti-governmentelements and narcotics. NDS fulfill its dutiesby collecting and analyzing information andoffering specific recommendations on security.The Directorate is designed to help improveeffectiveness of operations carried out by nationalsecurity agencies. NDS also shares informationand cooperates with internationalsecurity organizations stationed in Afghanistan.NDS is non-political institutions withmerit based promotion system.Ministry of Foreign Affairs (MoFA)The Ministry of Foreign Affairs is responsiblefor organizing and following Afghanistan’srelations with other countries and internationalorganizations. It is mandated to:• Establish cordial international relationsbased on sovereignty and mutual trust;• Set foreign policy objectives in line withnational military strategies and activities ofthe National Army and border police;• Support and promote international peaceand welfare by upholding and implementinginternational laws, conventions and nationaldevelopment strategies ;• Support development and encourage investmentin Afghanistan and promotetrade;• Promote regional peace and prosperity,adopt active diplomacy to achieve regionalstability and support economic programsthat help in securing national interests;• Support and promote bilateral and multilateraleconomic initiatives with neighborsto secure national interests.Ministry of Counter Narcotics (MCN)The Ministry of Counter Narcotics is responsiblefor the implementation of the NationalDrug Control Strategy (NDCS). The MCN’spolicies are designed to address: (i) developmentof projects to provide alternative livelihoodopportunities in districts where poppy isgrown; (ii) programs to reduce demand fordrugs including addiction treatment facilitiesin affected provinces; (iii) development of effectivemechanisms to deal with drug-relatedcrimes; and (iv) media and public awarenesscampaigns to discourage people from growingpoppy and producing narcotics; and (v) poppyeradication programs..‘RIGHT-FINANCING’SECURITY SECTOR REFORMFiscal sustainability is essential for a sound andstable security forces. Given the limitations ofthe National Budget at present, additional timeis needed before security sector expenditurescan be included in the ordinary budget. Thesecurity sector must therefore rely on continuedassistance from Afghanistan’s internationalallies. Limited internal revenue will inevitablyforce the Government to make some verytough decisions when it comes to security sectorspending. The Government supports thedevelopment of a ‘Right-financing’ approach tothe security sector, within which to strike anappropriate balance between current securityneeds and the goal of building a fiscally sustainablesecurity sector based on realistic resourceprojections.Afghanistan has no wish to be a burden on theinternational community for longer than is necessary.In line with a three phased effort todevelop the Afghan military, coalition allieswill move progressively from carrying the majorburden of combat operations to a supportingand enabling role. The First Phase, an accelerateddevelopment both in numbers andcapabilities of Afghanistan’s security forcesthat are adequately manned, equipped andtrained to defeat all internal and external58Afghanistan National Development Strategy (ANDS)

threats, is well advanced. The Second Phase isto transition from coalition-led, to an Afghanledand NATO-supported security operation.Although much of the security burden remainswith our coalition allies, there has been progressin combined Afghan/Coalition operations,and in independent ANA security operations.Phase Three will encompass efforts tofurther improve professionalism, discipline andoperational cohesiveness and the ANA willconduct independent operations and lead thefight. ISAF will move to a supporting role. Atthe end of this final phase, a capacity to defendthe country will have been established, and thepartnership with allies will become one ofnormalized defense relations.SOUND ADMINISTRATION,JUSTICE AND JUDICIALSYSTEMEstablishing a transparent and accountable judicialadministration is a key in achieving durablestability in the country. The Governmentis committed to strengthening the justice system,incuding the Supreme Court, AttorneyGeneral´s Office, Chief Prosecution Department,Ministry of Justice, and military courts inthe capital and provinces. Priority programs ofthe Government include appointing professionalcadres, coordinating law enforcementand justice sector development programs toestablish a prosperous, stable, and a just societybased on democratic values and internationalstandards. An effective legal administrationthat ensures the rule of law is important forpeople to have faith in their government. TheGovernment is implementing programs tostrengthen and support reform in the Ministryof Justice, the Supreme Court, and the AttorneyGeneral’s Office.RELATIONS WITHNIEGHBORS ANDINTERNATIONAL ALLIESAfghanistan’s security is closely linked withinternational developments. The country borderswith six countries and inevitably has economicand political interests with these countriesthat are related. The Government seeks tocooperate with its neighbors by strengtheningregional security linkages with intelligencesharing to tackle cross-border infiltration, terrorismand narcotics trafficking.The Government will make every effort to ensureregional stability, security and prosperityfor itself and for neighboring countries. TheKabul Declaration on Peaceful Coexistence andGood Neighborliness was signed in 1381(2002). It obliges Afghanistan and its neighborsto respect each others’ territorial integrity, establishfriendly relations and cooperation, andensure non-interference in each other’s internalaffairs. All of the Government’s efforts tomaintain security and accelerate social andeconomic development will not work withoutsome degree of cooperation and support fromAfghanistan’s neighbors. A secure Afghanistanin a stable region is in the best interest of entireworld. The Government will work with theinternational community and neighboringcountries for an effective diplomatic solution tosecurity challenges. This will require: (i) concerteddiplomatic pressure against the safe havensenjoyed by terrorist groups outside of Afghanistan’sborders; (ii) coordinated and effectivemeasures for strengthening border andcross-border security; (iii) support for the programsagreed in recent regional economic cooperationconferences; and (iv) a furtherstrengthening of the Tri-partite Commission todialogue with Pakistan on substantial issues.CONCLUSIONThe Government is fully committed to successfully:(i) implementing an integrated and comprehensivenational security policy and strategy;(ii) building a robust security sector reformprogram; (iii) strengthening synergies betweencivil and military operations; (iv) increasing therole of security forces in counter-narcotics activities;and (v) strengthening the civilian componentsof security entities. While internationalassistance is vitally necessary at the presenttime, the Government is planning andlooking forward to taking on an increasingshare of the responsibility for security in Afghanistan.Security 59

Table 5.1. Integration of the Cross Cutting Issues into the Security SectorAnti-Corruption Gender Equality Counter-Narcotics Environment Regional Co-operation Capacity BuildingPrograms within the SectorStrategy emphasize accountabilityand transparency.By Jaddi 1392 (end-2013),corruption in the governmentat all levels especiallyin security and, customswill be significantly reduced.A monitoring mechanismto track corruption at highplaces, including the securitysector, will be put inplace by Jaddi 1387 (end-2008).By Jaddi 1387 (end-2008),the Government will establishand implement a publiccomplaints mechanism.This will include complaintsagainst the securityforces or the security sector.Targeting corruption isvital for security reasons:Narcotics traffickers thrivein insecurity and absenceof governance; corruptionat the highest levels facilitatefor narcotics trade thatspur anti- governmentelements.Increase the number of qualifiedfemale staff throughoutthe security sector.Promote gender mainstreamingand gender-balancethroughout the security sector.Increase awareness of genderand rights, raising women’sdecision-making role and ensuringthat women have equalemployment opportunitieswithin the Sector.Recognize in all policies andprograms that men andwomen have equal rights andresponsibilities through thesecurity sector.Ensure that monitoringmechanisms are in place torealize goals for gender equality.This calls for setting indicatorsto monitor improvements.Ensure reduction of violenceand harassment againstwomen in the workplace, byimplementing specific training,units/programs (e.g. referralcenters) and effectivecomplaint and redress mechanisms.The international forces inAfghanistan must cooperatewith the Afghan NationalArmy (ANA) to facilitate forAfghan counter-narcotics operations.Afghan security forces provideforce protection and law enforcementfor eradication andinterdiction operationsEradication of poppy cropsneeds to be enforced, in particularwhere those who benefitare using the profits for antigovernment activities.There is a need to enhanceborder control to crack downon drug trafficking.By Jaddi 1389 (end-2010), theGovernment will increase thenumber of arrests and prosecutionsof traffickers and corruptofficials with the help ofthe security sector.Increased security is needed toguarantee alternative livelihoods.Capacity for eradicationmust similarly increase.Improved securitywill ensuresustainable developmentwithminimum negativeimpact toenvironment.Implement DIAGand mine/UXOclearance programsto enhancesecurity thatwould allow forextensive land tobe taken backinto use for farmingand development.Stabilitythroughout thecountry isneeded to preventnatural resourcesfrombeing degraded.Establish and developgood international relationshipsbased on mutualrespect, noninterference.EnhanceAfghanistan’s activeposition as a positiveand effective member ofthe UN.Enhance cooperativeborder managementwith Afghanistan’sneighbors to crackdown on illegal bordercrossing and trafficking.Regional cooperation toimprove security willlead to overall stabilityin the region.Multilateral and bilateralagreements reachedwith the countries of theregion and further effortsto promote regionalcooperationwould contribute to thestability in the regionand enhance the pace ofeconomic developmentin Afghanistan.Reforming defense and the securitysector is a priority of the AfghanGovernment to strengthen Afghancapabilities and transform the Afghansecurity forces into effectiveand modern force, confirming tointernational standards.MoD reform and reconstruction aimto rehabilitate a strong defense sectorto protect national security and to beable to begin assuming primary responsibilityfor Afghanistan’s securitywith a gradual withdrawal ofinternational security forces.Intensive field and operational trainingis and will continue to furtherenhance the capabilities of the ANAand ANP.Capacity and budget needs of theANA and the ANP will be underconstant review. There is a need forovercoming financial challenges andinsufficient funds to realize capacitybuilding of the security strategy.Specific capacity development programswill be required for preparingthe security forces for counter narcoticsoperations.Special programs will be developedfor developing gender sensitive securitysystem internally as well for externalinteractions.60AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY (ANDS)

CHAPTER 6GOVERNANCE, RULE OF LAW & HUMAN RIGHTSThe goal for the Governance, Rule of Law andHuman Rights is strengthen democratic processesand institutions, human rights, the rule oflaw, delivery of public services and governmentaccountability.Improving governance is essential to the attainmentof the Government’s national visionand the establishment of a stable and functioningsociety. The government’s guiding principlesfor improving governance are openness,participation, accountability, effectiveness, efficiency,coherence, equity, inclusiveness, justiceand rule of law applied at all levels of the government.The government will act as a policymaker, regulator, enabler and not a competitor,of the private sector. The main priorities forthe governance sector are (i) to increase thepace and quality of public administration reform;(ii) strengthen sub-national governancestructures; (iii) reform legal and courts processes;and (iv) strengthen parliamentary andlegislative processes including holding free andfair elections.While much has been achieved in strengtheningthe formal and informal structures of governanceand rule of law, as well as extendinghuman rights, considerable challenges stillstand in the way of achieving the goals underthis pillar. These include: (i) the existence ofmultiple, parallel structures of state and nonstategovernance entities; (ii) confusion overcentre/sub-national governance entities; (iii)weak public sector institutions and underdevelopedgovernance and administration capabilities;(iv) high levels of corruption; (v) fiscaluncertainty; (vi) weak legislative developmentand enforcement; (vii) weak parliamentaryoversight; (viii) weak community and civil societyinstitutions; (ix) ineffective and poorlydefined justice system; (x) gender inequality;and (xi) underdeveloped human rights enforcementcapacities.Three sectors are contained under this pillar:Governance, Public Administration Reformand Human Rights, Justice Sector and ReligiousAffairs. Sub-national consultation andthe Provincial Development Plans (PDPs) wereinstrumental in developing the sector strategy.GOVERNANCE, PUBLICADMINISTRATION REFORMAND HUMAN RIGHTSRole of the Sector in ANDSIn the Afghanistan Compact, the Governmentand the international community reaffirmedtheir commitment to certain benchmarks onPublic Administration Reform, Anti-Corruption, The Census and Statistics, NationalAssembly, Elections, Gender, Land Registration,Counter- Narcotics and Human Rightswithin the specified timelines. Functional institutionswith trained staff will be established ineach province to implement appropriate legalframeworks and appointment procedures. TheGovernment will also establish a fiscally andinstitutionally sustainable administration forfuture elections and prioritize the reform of thejustice system to ensure equal, fair and transparentaccess to justice.The strategy includes out efforts to reducegender inequality. Institutional and administrativeframeworks will be established at the localgovernment level that will enable women toplay an important role in decision making(such as the CDCs established under the NSP).The Constitution allows limited decentralizationspecifying that a Provincial Councils (PC)with elected members are to be formed in everyProvince and, that District, Village and MunicipalCouncils and Mayors are to be electedthrough, free, general, secret and direct electionsevery three years.Governance, Rule of Law and Human Rights 61

Current Situation in the SectorAfghanistan has come a long way in the last 7years. In 2000 the World Bank assessed the‘quality’ of Afghanistan’s governance institutionsas falling in the bottom one percent of allcountries. The rule of law, adherence to goodgovernance practices and respect for humanrights in Afghanistan is weak but improving.The ANDS vision for this sector is the establishmentof a stable Islamic constitutional democracywhere the three branches of governmentfunction effectively and openly, are accountable,inclusive and abide by the rule oflaw.Progress since 2001 includes the adoption ofthe constitution; successful parliamentary andpresidential elections, and progress in improvingthe livelihood and welfare of females andother disenfranchised groups. In addition, theANDS sets out a series of reforms to addressthese constraints:• Justice: The Ministry of Justice (MoJ) isstrengthening the review process for lawsand regulations and identifying areas forreform, including instituting a code of ethicsand professional standards. In March2007, the Supreme Court, the MoJ, and heAttorney General’s Office presented newcomprehensive reform strategies at theRome Conference. These include plans torestructure the institutions; develop meritbasedand transparent recruitment; promotionand accountability mechanisms forimproving professional standards, ethicsand discipline; improving the conditions ofservice for justice officials; and increasingwomen’s representation at all levels of thejustice system.• Corruption: The High Level Commissionagainst Corruption has been established toassess and analyze the factors contributingto corruption. The Commission presentedrecommendations to prevent corruptionand developed the roadmap in its document“Fighting Corruption in Afghanistan- Strategy and Action”.• Legislative Reforms: Progress is beingmade in reforming the legal framework ofthe country. Laws have been enacted topromote investment and trade. Measuresto deal with illegal drugs, corruption andmoney laundering are under review andbeing enacted. As part of the judicial reformprogram a number of other importantlaws will soon be approved.• Gender: The National Action Plan forWomen of Afghanistan is being implementedto establishing greater genderequality by eliminating discrimination,building of women’s human capital andpromoting their participation and leadership.• Governance: Public administration is generallyrecognized as being weak. The Governmentwill undertake comprehensive institutionalstrengthening and capacitybuilding within the ministries, provinces,districts, municipalities and villages. Thiswill achieve improvements in the deliveryof services to the people and communitiesliving in the provinces, districts, municipalitiesand villages.A number of constraints continue to face thesector: weak public sector capacity; a lack ofresources and unsustainable fiscal outcomes; arestrictive legislative environment that limitsprivate sector activity; limited legislative oversightand representational experience of publicfigures; extensive corruption; excessive centralization;a lack of coordinated decisionmakingacross Government; limited femaleparticipation in the Government; limited directaccountability to clients; and state capture byillicit power-holders.Policy Framework: Sector StrategyThe governance agenda addresses three majorchallenges: pervasive corruption, low publicsector capacity and human rights deprivationsfor girls and women in Afghanistan.80 percent of provinces identified reducing corruptionin public administration as a priorityduring sub national consultations.The policy framework for the proposed reformprogram to strengthen governance includes allnational and sub-national government, parliamentary,civil society and political structures.The mainstreaming of cross-cutting issues ofanti-corruption, capacity building and genderare of particular relevance to this pillar. Insummary, the policy framework for this pillarincludes the following goals:62Afghanistan National Development Strategy (ANDS)

• National Assembly Empowerment: Toenhance the capacity of the National Assemblyin discharging legislative, oversight,transparency and accountabilityfunctions.• Public Administration Reform: Publicadministration reform will focus on payand grading reforms to increase competitiverecruitment, hiring of a trained andcapable public sector workforce, strengtheningmerit based appointments, conductingperformance-based reviews.• Anti-corruption: Measures to achieve areduction of corruption in the judiciary andthroughout the government will be introduced.There will be increased monitoringof corruption at senior levels. Appropriatenew applications will be introduced tolimit potential corruption. Public reportingand complaints mechanisms will be expanded.• Enhanced availability of information topublic and enforcement: Public rights toaccess to information will be increased.Sanctions will be enforced against those involvedin the drugs trade.• Enhanced participation of Women inGovernance: Fulfillment of the national actionplan for women’s rights will be implementedand affirmative action programsmade available to women.• Enhanced participation of Youth in Governance:A proactive policy to expand opportunitiesfor young people that encompassesall areas of Government activity willbe adopted.• Effective system of disaster preparednessand response: The national disaster managementand mitigation policy will be implemented.• Independent Election Commission: Thecapacity of the Independent ElectionCommission will be strengthened. A permanentvoters’ registry will be established.Regular national and sub-national electionswill be held as mandated by the Constitution.• Single National Identity Document: Toenhance public accountability and transparencya single national identity documentwill be issued.• Census and Statistical Baseline Data: Thenational census will be completed and theresults published. National economic andpoverty baselines will be established.• Geodesy and Cartography: Village andGozar boundaries will be verified andmapping exercises will be undertaken.• Land Administration: A modern andcommunity-based land administration systemand establishment of a fair system forsettlement of land disputes will be established.• Independent Directorate of Local Governance(IDLG): A sub-national governancepolicy will be developed. People’sparticipation in sub-national governancewill be increased. Provincial Councils willbe empowered. Laws on District Councils,Municipal Councils, and Village Councilswill be introduced. Regular elections ofDistrict Councils, Municipal Councils,Mayors and Village Councils will be held.Public administration will be reformed atthe sub-national level and the capacity ofthe public sector workforce at sub-nationallevel strengthened. Provincial planningand budgeting will be institutionalized.• Governance Administration: Review andassessment of the facilities in all governmentoffices will be undertaken and appropriatefacilities provided.• Communication with and within theGovernment: There will be enhanced flowof information between all government entitiesrelated to national policy, strategyand national budget procedures.• Human Rights: The realization, protection,promotion and extension of human rights,including the Action Plan on Peace, Justiceand Reconciliation will be implemented.JUSTICERole of the Sector in ANDSThe role of the Justice Sector in the government’sdevelopment strategy is to ensure improvedintegrity, performance and infrastructureof Afghanistan’s justice institutions in eachprovince; to streamline administrative structures,ensure professional integrity and improvecoordination and integration within theGovernance, Rule of Law and Human Rights 63

Justice system between government and civilsociety institutions, and improve access to thejustice system for all. In the longer term thesector will seek to increase specialization anddiversification of justice practices to meet morecomplex demands – including the importantand necessary interaction and relationship withinformal justice systems, which are prevalentthroughout the country, while expanding justiceservices. Transitional Justice is obviouslyan important aspect of the sector. The Government’sAction Plan for Peace, Reconciliationand Justice in Afghanistan acknowledges thatany mechanism for building peace and justicemust be carried out with the active and meaningfulparticipation of all national stakeholders,including the justice institutions.Contribution to the ANDSEconomic Growth: An efficiently operatingjustice system will encourage investment andfor economic activity to move from the informalto the formal sector, thereby strengtheningthe ability of the government to raise revenueinternally.Employment: Growth of the private sector, aprerequisite of which is an efficient judicial systemwill generate increased demand for labor.In addition, improved labor and contract lawswill lower the cost of hiring labor and directlyencourage increased employment, particularlyin urban centers.Poverty Reduction: Economic growth and increasedemployment will contribute to a reductionin poverty. In addition it should be notedthat women and the poor and marginalized aremost likely to be the ones to suffer the lack ofaccess to a fair and unbiased judicial system.Security/Stability: Poor security in certainparts of the country makes service delivery difficultor impossible and justice professionalsoperate at great personal risk. Police devotemost of their resources to maintaining security.Contribution of the Sector to Implementationof the Compact and MDGsAfghanistan Compact: The Justice Sector willhave met the four Rule of Law Compactbenchmarks by the end of 1391 (2010).Millennium Development Goals (MDGs): Althoughjustice and the rule of law are notamong the eight plus one MDGs, they providethe enabling environment for poverty reductionand economic development.Current Situation in the SectorAchievements: Afghanistan has a mixed civillaw and Islamic Sharia-based formal legal systemthat has evolved over many years. In mostnon-urban areas customary legal systems continueto operate. While there is considerablevariation in these customary legal systems theyare usually based around traditional tribunals –jirgas, maracas shuras or mookee khans. Traditionalsystems usually have core principles ofapology and forgiveness, followed by reconciliation.Most Afghan customary systems arebased on the principle of restorative justice.The Constitution introduced three major reformsto the judicial system:• Art. 97 declared the judiciary an “independentorgan of the State” which “dischargesits duties side by side with the Legislativeand Executive Organs;”• The Constitution created a unified judicialsystem with an organizational structurethat is headed by the Supreme Court;• The constitution created a unified systemof laws. The Constitution and statutes createdunder the Constitution are legallydominant, with the basic principles of theSharia acting as a guide to the legislature.In August 2006 a new Supreme Court was approvedby National Assembly. The SupremeCourt then adopted a new Code of JudicialConduct, based on the internationally recognizedPrinciples of Judicial Conduct and establishingethical standards.Donor activity in the justice sector has generallyfocused on building capacity of the judicialsystem, including police training and courtconstruction.Needs Assessment: the following needs havebeen identified at the national and provinciallevels:64Afghanistan National Development Strategy (ANDS)

• Salary support: to improve performance,mitigate corruption and ensure professionalqualification;• Infrastructure and office equipment: Subjectto survey of essential work to be targeted.• Transportation: Subject to survey of essentialwork to be targeted;• Operating costs need to be financed to improveperformance of justice institutions;• Capacity building and training: continuingprofessional development requirements;• Information management and human resourcemanagement to be established;• Codes of Ethics and oversight mechanismsto be established for all legal professionals;• Financial management: budgets are inadequateand budget execution rates are low;• Public awareness: There is a need to developtools and instrument which ensureaccess at all level of society.Challenges, Constraints, Weaknesses: Weakinfrastructure; lack of trained staff; delays andbacklogs of appeals; lack of information technologyand capacity; uncompetitive salaries;poor education and vocational training, publicconfidence; resource constraints; security situation:Security constraints in certain parts of thecountry make service delivery difficult or impossible.Policy framework: sector strategyThe Government’s vision for justice is of anIslamic society in which an impartial and independentjustice system delivers safety and securityfor life, religion, property, family andreputation; with respect for liberty, equalitybefore the law and access to justice for all.Sector Priority Policies and Goals: These are alldetailed in the sector strategy, however a briefsummary of the policy reform areas is providedbelow under three main goals:• Integrity, performance and infrastructure:Administrative reform and restructuring ofjustice institutions; legal education; systematicrecords systems; enhancing administrativecapacity; eradicating corruption;promulgation of ethics codes, engagementof public through complaints systems; expansionof justice services through infrastructuraldevelopment, procurement oftransportation assets and equipment.• Coordination and integration with othergovernment institutions and civil society:Improved legislation through enhancedcapacity of drafting and parliamentary personnel;establishment of National LegalTraining Centre for vocational educationand vocational excellence; increased opportunitiesfor external stakeholders and civilsociety to contribute to legal policy developmentin policy analysis and legislativedrafting. Support the Provincial Justice CoordinationMechanism (PJCM), to improvethe delivery of justice assistance in theprovinces.• Improved Justice Practices and Processes:investigation system established to determinedelays in criminal justice system andlack of representation and improved casemanagement; Sentencing Policy developed;Juvenile Justice Policy implemented; Specializationto address cross-cutting andemerging issues in criminal justice; Enhancedand improved civil court case administrationand jurisdictional structures inmajor litigation categories; nationwide accessto legal information and representation;investigating policies for improvedlinks between formal and informal justicesectors and oversight of the informal by theformal.Governance, Rule of Law and Human Rights 65

Table 6.2. Key Objectives of the National Justice ProgramPublic can rely on effectively organized and professionally staffed, transparent and accountable justice institutions.A.1. Justice institutions are structured, managed and administered according to their mandate and functionsA.2. Justice institutions are professionally staffed by men and women who are equally remunerated according to theircompetencies and qualifications.A.3. Justice institutions have established the organs necessary for implementation of the national justice programA.4. Justice institutions and organizations have adopted and are enforcing codes of professional conduct and ethicsA.5. Justice institutions have developed transparent operating proceduresA.6. Justice institutions have adopted effective anti-corruption measuresJustice institutions have access to infrastructure, transportation, equipment, and supplies adequate to support effectivedelivery of justice services.B.1. Justice institutions, including the central prisons directorate, are provided with buildings necessary for fulfillment oftheir tasks.B.2. Justice institutions are provided with equipment and supplies necessary for their tasksB.3. Justice institutions are provided with means of transport necessary for their tasksLegal education and vocational training are adequate to provide justice professionals with sufficient know-how to performtheir task.C.1. Universities provide legal education which equips graduates with the intellectual skills and substantive knowledge toperform well as justice professionals.C.2. Justice institutions equip new professionals with the practical and professional skills necessary to fulfill their dutiesC.3. A system of continuing legal education for justice professionals, paying specific attention to women, is in place andoperational.Statutes are clearly drafted, constitutional and the product of effective and consultative drafting processes.D.1. The taqnin has sufficient capacity and resources to review, amend or draft legislation.D.2. All laws in force have been reviewed for constitutionalityD.3. Capacity for legislative drafting has been enhanced throughout other government institutions including parliamentD.4. System is in place to ensure consultation of stakeholders regarding proposed or pending legislationJustice Institutions effectively perform their functions in a harmonized and interlinked manner.E.1. Coordination and cooperation among justice sector institutions is enhanced, resulting in improved criminal and civiltrials and case managementE.2. Adequate institutional organization structures capable of addressing cross cutting issues in rule of law are in placeE.3. Criminal justice is administered effectively, and in accordance with the law, the constitution, and internationalstandards.E.4. Civil justice is administered effectively, and in accordance with law, the constitution, and international standards.E.5. Policies regarding introduction of administrative law structures are in place.E.6. Policies are in place to ensure that the corrections system operates in accordance with international standards.E.7. Enhance legal and policy framework related to juvenile offenders and children in conflict with the law.Citizens are more aware of their rights and are better able to enforce them.F.1. Practices and procedures governing trials and routine legal transactions, including registration of documents, havebeen streamlined and rationalizedF.2. Enhanced access to formal legal system for indigents, illiterates, women, and childrenF.3. Enhanced monitoring of human rights enforcement throughout the governmentF.4. Increased knowledge of laws, rights, and responsibilities through legal awareness campaignsF.5. The role of traditional dispute resolution in the rule of law is defined, and tdr decisions consistently meet internationalhuman rights standards.F.6. Begin the process of establishing a transitional justice system to record past human rights abuses and preserve therights of victims consistent with the government’s action plan for peace, reconciliation and justice.66Afghanistan National Development Strategy (ANDS)

Integration of the PDPs: Seventeen out of thethirty-four PDPs cited security as the main obstacleto development and stability, and cited itas the priority sector in their provinces. As aresult, many of the projects requested by thepeople indicate the need for justice sector infrastructureand a law enforcement presence atthe district level.Sector Related IssuesRole of the Private Sector: The justice systemlowers the cost of doing business and allowsfirms to enter into commercial enforceablecontracts. Businesses in the formal sector havea strong interest in promoting an efficient judicialsystemRole of Civil Society: Civil society urgentlyrequires a judicial system at both the nationaland provincial level that can be trusted to administerjustice and has the confidence of thegeneral population.Policies to improve Aid Effectiveness: Animportant criticism has been that the donorcommunity has neglected provincial issues andaid has been uncoordinated. Donors should notattempt to impose an external judicial systemthat may not be accepted throughout the country.RELIGIOUS AFFAIRSRole of the Sector in ANDSThe ANDS strategic objective for this sector isto provide competent and qualified religiousservices and increase the public awareness ofIslamic religion and values in order to promotepeople’s participation in the poverty reductionand development programs. The Government’sprimary goal is to ensure that all Afghanshave equal opportunities to exercisetheir Islamic and religious believes and thatIslamic values will be embedded in the Afghanrecovery and development. The religious affairsstrategy intends to establish a systemwhich ensures that religious values are reflectedwith every aspect to Government policyand contributes to the overall development ofthe country. The sector strategy was developedafter extensive consultations with religious institutions,scholars and religious leaders at bothnational and sub-national levels.With respect to this the Government will improvereligious infrastructures includingmosques, shrines and other holy places. TheGovernment will also develop religious schools(madrassas) and will significantly strengthenthe training of imams, preachers and religiousteachers. The Government will provide trainingopportunities for Islamic teaching. In orderto meet these objectives, the strategy requiresthe provision of religious services, poverty reductionand effective economic development ofthe countryContribution of the Sector StrategyEconomic growth: The Government recognizesthat Islam is contrary to many challengesthat Afghanistan faces today such as corruption,poppy production and others and that byraising public awareness of the link betweeneconomic recovery, the role of the economy instrengthening Afghan society and Islamic valuessupport of the Government’s efforts to implementnumber of key reforms will bestrengthened.Poverty reduction: The religion of Islam requiresall Muslims to support the poor and vulnerablein society, as well as promoting theidea of social solidarity and actively encouragingcharity. With the establishment of the ZakatAdministration within the government, aswell as the possibility of a Zekat-based tax, donationscan now be collected and redistributedin an organized manner among the mostneedy.Stability: The religion of Islam is a religion ofpeace. The sacred religion of Islam calls on allMuslims to treat people with kindness andmercy and always try to forgive and avoid baddeeds. Religious scholars and leaders will playa significant role in propagating an end to thecurrent conflict and encourage national reconciliation.Human rights: Islam is based on humanrights, including the rights of women, orphansand children. Affirmation of these basic rights,like all other Islamic values, will build supportfor the reform and implementation of theANDS. Basic human rights and freedom areessential to building a strong free market economyin addition to being essential for any democracy.Governance, Rule of Law and Human Rights 67

Current Situation in the SectorAchievements: A great deal of work has beendone since the establishment of the transitionalgovernment of Afghanistan in terms of religiousaffairs including:• Afghanistan is an Islamic Republic• The Constitution is fully based on the principleof Islam;• The Constitution states in Article 2: “Thesacred religion of Islam is the religion ofthe Islamic Republic of Afghanistan. Followersof other faiths shall be free withinthe bounds of law in the exercise and performanceof their religious rituals.”• Improved Hajj services and strengtheningof Ministry of Hajj and Endowment;• The construction and rehabilitation ofhundreds of new mosques and other holyplaces;• Restoration of the endowed properties extortedby individuals;• Inclusion of Islamic subjects in the newcurriculum of primary, secondary andhigher education systems;• Establishment and rehabilitation of the IslamicMadrasas and Dar-Ul-Hefazs;• Rehabilitation of the Department of theIslamic Sciences of the Science Academy;• Growth of the Islamic literature throughpublic and private media, “electronic, visualand audio”.Needs assessments: The rehabilitation andconstruction of religious schools is the mostpressing need for the sector. Additionally thereis a need to improve the Islamic female educationsystem and to hire an adequate number ofimams.Challenges and Constraints• Lack of qualified scholars’ and lack propertraining for the scholars;• Lack of qualified cadre in religious education;• Weak coordination among the differentreligious government and non-governmentinstitutions;• Low level of professional capacity: lack ofadequate facilities and competent professionalswhich hinders the effective implementationof programs;• Uncertain funding and the dependence ofthe religious institutions on private charities.A lack of adequate funding is one ofthe major constrain in the realization of thesector programs, which minimize the abilityof the government institutions to implementtheir projects.• Security problems: continued insecurity isa barrier to the implementation of the programsin some parts of the country.Policy Framework: Sector StrategyThe vision for the sector is to provide competentreligious services and raise religiousawareness of the public in order to promotetheir participation in the development programsof the Government. This will ultimatelylead to poverty reduction and the developmentof Afghanistan.Sector Priority Policies: the government willfocus on the following priorities:• Improve infrastructure for religious affairs:(mosques, shrines, holy places, religiousschools);• Improve the training and capacity of theImams, preachers, religious teachers andother scholars to raise public awarenessand to teach;• Finalize overall cultural curriculum forprimary and higher education;• Strengthen Hajj arrangement systems forpilgrims;• Support efforts of other government agenciesto improve religious literacy.Expected outcomes:• All Government activities will not contradictIslamic values;• Improved religious infrastructure;• Financial sustainability of religious affairssector will be achieved;• The religious education system will be improved;68Afghanistan National Development Strategy (ANDS)

• Increased participation of Islamic scholarsin rising awareness of importance of keyGovernment reforms;• Strengthening the role of the religious institutionsin programs for poverty reduction.Government priorities for Religious Affairs:• Implement reforms in the education systemand teaching methods in the public andprivate Madrasas;• Implement administrative reform programsin the Ministry of Haj and Endowmentand its provincial offices;• Reform the Hajj and pilgrimage servicessystems;• Reform and improve coordination of theSharia faculties of Afghan Universities;• Strengthen the support for building andmaintaining mosques and other religiousinstitutions;• Improve self-sustainability of the religiousinstitutions through building shops andbusiness centers within the propertiesowned by mosques and other holy placesand opening bank accounts for collectingdonations;• Establish Ulama Councils for settlement oflocal disputes and implementation of developmentprograms in the community;• Establish Zakat related office within theministry of Hajj and Endowment;• Establish effective and transparent mechanismsfor collecting revenues from shrinesand holy sites.CONCLUSIONGood governance and adherence to the rule oflaw are much needed reforms that the Governmentof Afghanistan is committed to pursue.While the donor community can supportreforms and provide technical assistance, thesereforms have to be initiated by internal decisionsto implement improvements in governance.Without good governance and a sustainedsocial contract for the acceptance of therule of law, the total development strategy thathas been developed in the ANDS will fail. Thisis because the strategy has at its core the developmentof a private sector that will generateeconomic growth and demand for skilled labor.In this framework, the ANDS encourages thepublic sector to concentrate on the creation of asafe and conducive environment that encouragesthe smooth operation of a robust privatesector. This means a much greater focus byGovernment on governance issues rather thaninvolvement in the production of goods andservices that can be provided by a significantlylarger and more efficient private sector.Governance and the rule of law will remain aprimary concern of the Government and hasdirected that a considerable proportion ofavailable resources be devoted to strengtheningthe institutions responsible for delivering goodgovernance. They include the National Assembly,the judicial system, including thecourts, the AGO, the police, and the Ministriesthat administer much of the legislation. In itsearly stages, strengthening of governance andthe institutions that support governance hastended to concentrate on the central governmentlevel.The Afghan ‘ownership’ of this strategy requiresthat the Government seeks donors closecooperation in capacity building and knowhowtransfer, but retains ultimate responsibilityso that a system can evolve that allows the bestparts of the functional traditional governancesystem to co-exist with a universal system thatrecognizes and supports principles of socialdiversity, respect for human rights and the ruleof law.Governance, Rule of Law and Human Rights 69

Table 6.1. Cross cutting issues in the Governance, Rule of Law and Human Rights PillarAnti-Corruption Gender Equality Counter-Narcotics Environment Regional Capacity BuildingBy Jaddi 1392 (end-2013), the corruptionin the judiciary and the government atall levels especially in security, customs,civil administration and municipalitieswill be significantly reduced. A monitoringmechanism to track corruption inhigh places will be put in place by Jaddi1387 (end-2008). By Jaddi 1387 (end-2008), cross-cutting electronic governmentapplications will be launched toreduce corruption and increase efficiency.By Jaddi 1387 (end-2008), theGovernment will establish and implementa public complaints mechanism.The citizens have right of access to informationfrom government offices inaccordance with Article 50 of the Constitution.This right will have no limits,unless it violates the rights of others. ByJaddi 1389 (end-2010), the legal frameworkrequired for exercising this rightprovided under the constitution will beput in place, distributed to all judicialand legislative institutions, and madeavailable to the public and, implemented.By Jaddi 1389 (end-2010), the Governmentwill increase the number of arrestsand prosecutions of traffickers and corruptofficials, and improve its informationbase concerning those involved inthe drugs trade, with a view to enhancingthe selection system for national andsub-national public appointments. Publicofficials elected and appointed tohigh positions will be required to declaretheir asset before taking charge of theirThe Governmentwill fully implementthe NationalActionPlan for Womenin Afghanistan byJaddi 1389.The Governmentwill bring legislationon affirmativeaction providinga specificpercent reservationof seats forwomen in theelected district,municipal andvillage councilsas well as in thecivil service. Theset targets will beseen as a minimumand not,over time, as amaximum.Affirmative actionon allocatingseats for womenwill be linked toeducation reformsfor women.Educatingwomen will helpbreak the genderbias and preparewomen for moresignificant participationin gov-By Jaddi 1389 (end-2010), the Governmentwill increase the numberof arrests andprosecutions of traffickersand corruptofficials, and will improveits informationbase concerning thoseinvolved in the drugstrade, with a view toenhancing the selectionsystem for national andsub-national publicappointments. Publicofficials elected andappointed to high positionswill be required todeclare their assets beforetaking office andon a periodical basisduring their tenure inpublic office.The Government willestablish and supportthe existing CounterNarcotics units in keyministries and will establishcoordinationmechanisms for a coordinatedGovernmentresponse.The National Assemblywill organize trainingsfor its members on CNissues, in particular theCN Law.National Environmental Governance:The Government willestablish the following rightsof the public (individuals andtheir associations) with regardto the environment:1. The right of everyone toreceive environmental informationthat is held by publicauthorities ("access to environmentalinformation").2. The right of both womenand men to participate in environmentaldecision-making.("public participation in environmentaldecision-making");3. The right to review proceduresto challenge public decisionsthat have been madewithout respecting the twoaforementioned rights or environmentallaw in general("access to environmental justice").Local Environmental Governance:Natural resources willbe managed through community-basedmechanisms andwith the support of legitimatelocal governments.Natural Resource Management-relatedinterventionswill be based on broad consultationswith local communities(that include marginalizedgroups like pastoralists orLOGOTRI is theNetwork of LocalGovernment Trainingand ResearchInstitutes in Asiaand the Pacific. Itsmembers are bothgovernmental,autonomous andprivate sector institutionsand organizationsinvolvedprimarily inlocal governmenttraining and research.The IndependentDirectorateof Local Governance(IDLG)will collaboratewith the LOGOTRIwith a view to organizingtrainingand study tours ofAfghan subnationalgovernancepolicy makersand Afghan officialsat LOGOTRImemberinstitutionsin Asiaand the Pacific.The capacity of National AssemblyMembers will be built in draftingand ratification of legislation, reviewand input to the nationalbudget review, oversight, and representation,and on issues related towomen’s rights, national security,international relations, and interethnicrelations.The Government will strengthenthe capacity of Provincial Councils,support knowledge sharing andexchange among Provincial Councils.The Government willstrengthen the elected sub-nationalrepresentative bodies enablingthem to perform their roles andfulfill their responsibilities towardstheir constituent citizens.By end-1389 (20 March 2011), theGovernment will build institutionaland administrative capabilities inprovincial, district and, municipaladministrations to manage basicservice delivery through reformingorganizational structures, streamliningmanagement processes, developingessential skills and knowledgeof civil servants.A training policy for entire publicsector workforce will be developedand implemented. Institutionalarrangements shall be put in placeto ensure that each member of theworkforce gets trained at least oncein two years in organization specificand job specific training along with70AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY (ANDS)

office.Anti-Corruption Gender Equality Counter-Narcotics Environment Regional Capacity BuildingThe Government will establish a singleleadership and monitoring within governmentand parliament on anticorruptionprocess and implementation ofUNCAC. Institutional arrangementswithin the Government to fight corruptionwill be rationalized and strengthened.The Government will fight corruptionwith resolve and commitment and improveits capacity to do so. The actionscontained in the Anti Corruption RoadMap will remain priority actions for theGovernment in 2008 and beyond. TheGovernment will take steps contained inthe report of Inter-Institutional Commission.ernance.Youth groups are importantcivil societyorganizations. Awarenessof CN issues willbe incorporated intothe programs developedfor youth groups.Provincial level counternarcotic initiatives willbe implemented withthe cooperation of theGovernors and theProvincial CouncilMembersindigenous groups) and willreflect local values. These willform an essential part of aprocess of poverty reduction,since improved productivitywill directly increase rurallivelihoods, food security andmarket participation.generic training. Women’s participationwill be ensured. The aim of T& D policy shall be to:Provide job-related education,training, and development opportunitiesfor all Civil Servants so thatthey may perform their jobs competentlyand happily. This recognizesthat when strategically planned andimplemented, Training and Developmentis vital for strengtheningCivil Servants’ knowledge, capabilities,skills, gender sensitive andsupportive attitudes, and values inthe performance of work.GOVERNANCE, RULE OF LAW AND HUMAN RIGHTS 71

CHAPTER 7ECONOMIC AND SOCIAL DEVELOPMENTThis chapter summarizes the sector strategiesdeveloped as part of the ANDS under Pillar 3:Economic and Social Development. 38 TheANDS strategy depends upon achieving sustainedhigh rates of economic growth that willincreasingly be based on private sector-led development.39 A key component of the ANDS isthe development of an enabling environmentthat encourages the private sector to play a centralrole in the economic development of thecountry. While the sector strategies cannotspecify private sector investments, which are aresult of private decision making, the actionsand programs designed to establish an enablingenvironment for the private and nongovernmentsectors are included.PRIVATE SECTORDEVELOPMENTThe Government’s economic vision has beenconsistent since 1381 (2002) 40 and remains thestrategic objective for the private sector developmentstrategy. The market based economy isenshrined in the Constitution, article 10, whichstates that:The State encourages and protects privatecapital investments and enterprises basedon the market economy and guaranteestheir protection in accordance with theprovisions of law.As President Karzai also stated,38 The full sector strategies are included in the Volume II of theANDS.39 See for example “A Policy for Private Sector Growth and Development”presented by the Government at the Enabling EnvironmentConference, June 2007.40See generally, National Development Framework, (2002),ANDS Volume II, and Securing Afghanistan’s Future, Chapter 5(2004).We aim to “enable the private sector tolead Afghanistan’s development”.41 Wewill build a market-based system, drivenby private sector growth,42 in which Governmentis the “policy maker and regulatorof the economy, not its competitor”.43If the Government is to achieve its aim ofsignificantly enhancing per capita GDP inthe next five years,44 it must complete thefoundations for socially responsible privatesector growth and encourage sustainedhigh levels of foreign and domesticprivate investment.The implementation of the private sector developmentstrategy will contribute directly tothe achievement of a number of objectives embodiedin the Afghanistan Compact and theMDGs:• Afghanistan Compact: Private Sector Developmentand Trade: “All legislation,regulations and procedures related to investmentwill be simplified and harmonizedby end-2006 and implemented byend-1386 (2007). New business organizationlaws will be tabled in the National Assemblyby end-2006. The Government'sstrategy for divestment of state-owned en-41 President Karzai, Opening Address at the ADF, April 2005,page 9.42 Minister of Finance Anwar Ahady, The Budget as a Tool forAccelerating Economic Development and Poverty Reduction,ADF, April 2005. Senior Economic Advisor to the President,Professor Ishaq Nadiri, The National Development Strategy &Key Challenges, Presentation at the Afghanistan DevelopmentForum. April 2005.43 Senior Economic Advisor to the President, Professor IshaqNadiri, The National Development Strategy & Key Challenges,Presentation at the Afghanistan Development Forum. April 2005.44 Statement of Dr. M. M. Amin Farhang, Minister of Economy,at the ADF, April 2005.Economical and Social Development 73

terprises will be implemented by end-1388(2009).”• Afghanistan Compact: Regional Cooperation:“By end-1398 (2010) Afghanistan andits neighbors will achieve lower transittimes through Afghanistan by means ofcooperative border management and othermultilateral or bilateral trade and transitagreements; Afghanistan will increase theamount of electricity available through bilateralpower purchases; and Afghanistan,its neighbors and countries in the regionwill reach agreements to enable Afghanistanto import skilled labor, and to enableAfghans to seek work in the region andsend remittances home.”• MDGs: Goal 8: “Further develop an opentrading and financial system that is rulebased,predictable and non-discriminatory,which includes a commitment to goodgovernance, development and poverty reduction.Goal 8: In cooperation with theprivate sector, make available the benefitsof new technologies — especially informationand communications technologies.”The macroeconomic framework presented inChapter 4 makes clear that maintaining highrates of economic growth during the life of theANDS and beyond depends on a substantialincrease in the level of private investment inthe economy.Key components of the private sectordevelopment strategyThe strategy to foster private sector developmentand increase domestic and foreign investmentconsists of three main components: (i)continued efforts to build a strong and stableenabling environment that will encourage acompetitive private sector; (ii) expand thescope for private investment in developing nationalresources and infrastructure; and (iii)strengthen efforts to promote investment fromdomestic sources, the Afghan diaspora andforeign investors.Component 1: Strengthening the enablingenvironmentThe main objective of an improved enablingenvironment is to reduce the costs of doingbusiness. This entails the elimination of excessiveor unnecessary impediments to businessactivity that raise costs, and improving the‘soft’ and ‘hard’ infrastructure essential to efficienteconomic activity. This requires that theprivate sector have access to necessary inputsat reasonable cost, including land for commercialpurposes, credit and imported raw materialsand intermediate goods. Efficient land, laborand financial markets and a stable, opentrade regime have a major impact on the abilityof firms to operate competitively.Private sector development requires macroeconomicstability and an environment wherethere is a general reliance on the rule of law.While it is relatively easy to introduce a suitablelegal and regulatory framework, it is considerablymore difficult to ensure that it is effectivelyimplemented. This requires that allparties, both public and private, reliably abideby the legal system. It is critical that contractscan be entered into and enforced with disputesreadily resolved. A high priority of the ANDSis the strengthening of the institutions, includingthe establishment of effective commercialcourts, responsible for the implementation ofcommercial laws.ANDS strategic priorities to promote privatesector development involve activities in thefollowing areas:• A stable macroeconomic environment andsupportive financial system: The Governmentwill control inflation at low levelssimilar to those achieved in recent years.The growth of a supportive financial sectorthat is able to extend credit to viable firmswill be supported through legal and regulatoryreforms, including the implementationof secured transactions laws.• Private sector investment: Attracting privateinvestment is the responsibility of theentire Government and will be an integralpart of all projects and programs implementedunder the ANDS. This will requireinstitutional strengthening of Governmentagencies and ministries, including AISA asthe lead investment promotion agency. Allministries have the scope to expand theopportunities for private business activitiesand to increase their contribution to thegrowth and development of the economy.Donors will be encouraged to fulfill their74Afghanistan National Development Strategy (ANDS)

commitments to increase the goods andservices sourced within the country.• Legislative Reform: Enact and implementkey commercial laws and amendments toestablish the basic legal and regulatoryframework that will encourage private sectorinvolvement in social and economic developmentand consistent with the Afghanconditions. ANDS priorities actions include:ooooThe Government will introduce andimplement the remaining commerciallaws included in the AfghanistanCompact benchmark.The Government will consult with representativesfrom private business andcivil society in a meaningful and timelymanner during the process of draftingpolicies and laws.The necessary steps will be taken to establishthe authority of mediation andarbitration tribunals to resolve privateprivateand private-public disputes, includingland issues.The Government will ensure that nolaw will be implemented unless it hasbeen published in the newspapers, andmade available electronically and inhard copy to the public. Regulations,including import tariff rates, will bemade readily available on the Ministryof Finance website.• Administrative Reform: The Governmentwill ensure that ministries and agencies areable to competently administer commerciallaws and regulations in an unbiased andpredictable manner. These actions will include:ooooInvest in capacity development for NationalAssembly so that MPs are betterinformed and supported in their roleand understanding of proposed laws.Ensure the competency and transparencyof tribunals by establishing standardsand building the capacity of arbitrators,mediators and lawyers.Undertake financial audits of stateowned assets and corporations.Implement effective programs to provideinstitutional strengthening andcapacity development throughout thepublic sector.• State owned enterprises: The Governmentwill continue the program of privatizationand corporatization of state owned enterprises,a process that is presently on schedule.This will: (i) improve the level of efficiencyin the economy; (ii) assist in eliminatingcorruption; (iii) encourage better resourceallocation; and (iv) generate increasedgovernment revenue.• Formalizing private sector operations: TheGovernment is encouraging firms to formalizetheir activities by introducing taxnumber identification and applying commerciallaws and regulations. Considerationis being given to innovative efforts tochannel some public funds now being usedfor vocational training through properlyregistered firms in compliance with taxlaws for their use in financing training fortheir employees in properly accredited vocationaltraining programs.• Improve private sector access to finance:The Government will implement a well definedstrategy to expand the availabilityand range of financial products and services,especially targeting small and mediumenterprises. Priority actions include:ooooPassage and enactment of four key financiallaws: Secured Transactions,Mortgage, Leasing and Negotiable InstrumentsLaws.Establish an independent banking andbusiness training institute as a jointcommercial bank – DAB initiative.A credit information bureau will be establishedto facilitate commercial andconsumer lending.The financial tribunal will be establishedto provide swift legal resolutionof financial disputes.• Maintain a pro-trade environment: TheGovernment remains committed to maintainingtrade policies with low barriers forimports and exports and a liberal foreignexchange system. The Government’s tradepolicies will take into account the need toincrease domestic revenues and supportincreased domestic production by the privatesector. Pressures can be expected toarise from some groups for tariff protec-Economical and Social Development 75

tion, which would likely impose burdenson consumers or other producers in theeconomy. Such proposals will only be consideredby evaluating the economy-widecosts and benefits, including the impact onconsumers. The Government will undertakesystematic tariff reform as part of thebudget process and in consultation withthe private sector and will avoid ad hocchanges. The Government will continue tovigorously seek to increase access for Afghangoods and services in foreign marketsthough bilateral, regional and multilateraltrade agreements. The Government remainscommitted to WTO accession. Expandingtrade with neighboring countrieswill help to establish Afghanistan as animportant ‘trading hub’ in the region.• Firm-level technical assistance: The Governmentis determined to assist the privatesector develop its competitiveness and tosubstantially increase the volume of domesticproduction. At present, Afghanistan’sexports are very low by regionalstandards, dominated by dried fruit andcarpets. However, in recent years a numberof new manufacturing industries havebegun to emerge, some with demonstratedexport potential, such as production dairyproducts, honey, cement, sunflower products,glass, sugar beet, olive oil, cashmere,and flowers and floral essences. The Governmentwill seek firm-level technical assistanceto increase the ability of firms inthese and other new industries to competemore effectively in potential export markets.• Trade Facilitation: The Government willintroduce trade facilitation measures to reducethe costs of moving goods within thecountry and across borders, including endeavoringto relax restrictions arising fromtransit agreements with neighboring countries.Institutional capacity to support theexport of domestically produced goods andservices will be increased, including for examplethe technical resources to establishthat Afghan agricultural products meetsanitary and phyto-sanitary (SPS) requirementsof importing countries and internationalproduct standards are met. TheGovernment will reduce the burden of exportdocumentation and processes will befurther streamlined and essential services,including market information will be providedto the exporters by the EPAA.• NGOs and civil society: The strategy recognizesthe vital contribution that NGOsand other civil society organizations aremaking in implementing the social andeconomic goals of the ANDS. The Governmentwill maintain an open and effectivesocial dialogue with civil society andencourage their contributions to social andeconomic development.Component 2: Expand opportunitiesfor the private investment in infrastructureand natural resources developmentThe country requires enormous investment ininfrastructure, including roads, power generation,water supply, and irrigation. A substantialpart of these requirements could be undertakenprofitably by private investors with anappropriate regulatory environment. Privateinvestment in the development of natural resources,particularly minerals developmentwill become viable when suitable regulationsare in place.• The Government will establish a multisectorregulatory authority following anapproach similar to that used to developthe telecommunications industry. Thisregulatory system will establish appropriatefees and royalties, public purchaseagreements (e.g., for power), ensure transparentprocedures and dispute resolutionmechanisms. Its mandate will be to maximizeprivate investment in these areas.• Opportunities for entering into publicprivatepartnerships for investment in infrastructureprojects, such as roads andbridges, will be developed based on internationalbest practices.• The Government will encourage privateprovision of public services wherever itwill be feasible, including areas such ashealth, education, municipal services, etc.Opportunities to expand private investmentoccur in sectors where multiple ministries haveresponsibilities. This will require improvedcoordination and strengthening the capacitiesof most ministries and agencies. To be successful,the development and promotion of private76Afghanistan National Development Strategy (ANDS)

investment opportunities cannot be the responsibilityof only one or two agencies or ministries,but must entail a concerted effort by theentire Government. Efforts to encourage privatesector investment also require the understandingand cooperation of the donor community.This aspect of the private sector developmentstrategy is reflected in many of the sectorstrategies set out below. For example, it representsa major reform in the energy sector designedto attract private investment into thepower sector and development of energy resources.It is the basic foundation for developmentof the mining sector. It plays an importantrole with respect to the efforts to makemore efficient use of state owned land to stimulatecommercial agriculture. The Governmentwill seek to attract medium and large scale agriculturalproducers and processors to invest incommercial agriculture in order to increaseemployment and market opportunities in ruralareas and to develop export markets for highervalue Afghan products. It is reflected in innovativeefforts to try and use public funding tosupport and improve private provision of educationand health services. There is scope forusing donor funding to develop a vibrant andcompetitive domestic private construction industryin the projects being implemented byGovernment ministries.Component 3: Concerted private sectorinvestment promotionThe third component of the strategy involvesconcerted efforts to promote investment fromforeign and domestic sources, including fromthe Afghan diaspora. After a long period ofisolation, Afghanistan must rebuild commercialties and demonstrate that there are considerableprofitable opportunities for investors inthe country. The Afghanistan Investment SupportAgency will play a central role in thisprocess and will be strengthened. But the responsibilityfor promoting increased investmentwill be a government-wide task and willbe an integral part of all projects and programsundertaken as a part of the ANDS.The objective is to make known to potentialinvestors the opportunities available in Afghanistan,to ensure them that the Governmentrecognizes the importance to the country ofincreased private investment and to work withpotential investors to assure them that theirinvestments will not fail due to unpredictableand unfavorable changes in the tax environmentor policies towards private investors.This needs the full support of the internationalcommunity. This can be done through focusedefforts by donors to create conditions necessaryfor increased private investment in the country.It can also be done by bilateral donors usingtheir relationships with firms in their owncountries that are potential investors in Afghanistanto make known the great importancethe Government is now placing on the need toexpand private sector investment and operationswithin Afghanistan.ENERGYRole of the Sector in ANDS:Energy is a critical input to economic growth.The ANDS strategic vision and goal for the energysector strategy is: “An energy sector thatprovides drivers of growth in the economywith long term reliable, affordable energybased on market-based private sector investmentand public sector oversight”. This strategysupports (1) commercially and technicallyefficient energy delivery as a priority; (2) reformedsector governance that will safeguardconsumers, workers and resources; (3) the establishmentof a market-based enabling environmentwhere legitimate private investmentwill be facilitated; (4) the diversification of energyresources for long term low cost energy,energy security and clean energy use; and (5)identifying and supporting inter-sectoral supportinglinkages including comprehensive system-basedplanning not limited to projects, energyfor industry and vehicles. The Governmentputs great emphasis on expanding domesticcapacity for electricity generation andwill take steps to provide the basis for a transitionof the sector from public to private provisionof electricity. As the Afghan energy sectormoves from primarily state owned operationsto a more private market orientation, new institutionalarrangements will be established.The Afghanistan Compact benchmarks thatspecifically deal with the energy sector include:Economical and Social Development 77

• “By end 2010, electricity will reach at least65 percent of households and 90 percent ofnon-residential establishments in major urbanareas and at least 25percent of householdsin rural areas.”• “By end 2010, at least 75 percent of thecosts will be recovered from users connectedto the national power grid”, abenchmark that the Government now intendsto exceed for all but the poorestmembers of society.45These are ambitious goals. Meeting these objectiveswill require the transformation of thesector similar to the changes that took place inthe telecommunications industry with the reorganizationand commercialization of publicsector activities and with a greater role beingplayed by the private sector.Current situation in the sectorThe energy sector suffered considerable damagedue to war and operational neglect. Thecountry has never had high rates of electrification.Today it is estimated that 20 percent ofthe population have access to public power(grid-supplied) on certain days for a limitednumber of hours. Nationally seven grids distributepower, with supply coming from domestichydro generation; imported power andthermal generation. Isolated diesel generationhas dramatically increased since 2002 and willcontinue to play a large role in power supplies.Rural populations use local waste, solar panels,batteries and small wood, coal, kerosene suppliesfor basic cooking and heat.Over the past five years, the Government hasworked with the international community to45 The poorest members of society rarely have access to electricityservice.increase the availability of electricity and otherenergy resources and to carry out the planningnecessary to make the transition to a more sustainableand efficient private sector led energysector. A power sector master plan (2003-04); agas sector master plan (2004-05), and a renewableenergy plan (2006) were developed and/orupdated. Considerable Investment in expandingdomestic generation capacity has been undertaken,including the rehabilitation of thedamaged power infrastructure. To a lesser extent,repairs at gas, coal and other energy infrastructurehave taken place while millions ofdollars have been spent for diesel fuel andsupport of more than 1,700 small renewableenergy projects. Since 2006, there has been anon-going program for commercialization ofoperations in power operations by the stateowned power company, DABM.The Inter-Ministerial Commission for Energy(ICE) was established in 2006 to coordinateGovernment policy in energy; to leverage donorresources; and integrate sector planning.Cadastre and Inspectorate functions are nowlocated at the Ministry of Mines to support oil,natural gas and coal contracts.The efforts mentioned above have resulted in asignificant improvement in the availability ofelectricity and other energy sources comparedto the devastated conditions prior to 2002.Electricity capacity compared to 2002 has almostdoubled, largely due to imported supply,which was non-existent prior to 2002 (see Table7.1). However, on a per capita basis, the electricitygenerating capacity is well below what itwas in 1978. The present goal of electricityavailability set for 2010 is below 40 kwh percapita, (compared to a present availability in,for instance, Tajikistan of over 2,200 kwh percapita). Technical standards of operations remainantiquated and do not appropriately reflectthe new technologies or modern safetymeasures.Table 7.1. Electricity supply sources and operating capacityYearHydro Thermal Imported Other: diesel, micro hydro Total supply(MW) (MW) (MW) & renewable (MW) (MW)1357 (1978) 259 137 0 0 3961381 (2002) 141 16 87 0 2431386 (2007) 262 90 167 133 65278Afghanistan National Development Strategy (ANDS)

Despite progress and efforts to date, the existinggovernance arrangements and policyframework for the sector are still insufficient tosupport a market-based energy system. Someof the obstacles to making the desired transitioninclude:• Dispersed institutional support: Sevenministries include energy as part of theirportfolio.• Lack of regulatory framework: No legal orregulatory regime (though an energy law isunder preparation) is in place to guide sectoroperations. There are no legal professionalstrained in commercial energy lawor regulatory processes.• No divesting or meaningful commercializationof state energy assets: The Governmentand energy enterprise operations areoverstaffed and highly inefficient, lackingfundamental tools and capacity to supporttechnically and commercially viable operations.This includes power, natural gas,coal and liquid fuels. Some of the stateowned enterprises and budgetary units operatewith considerable government supportwith virtually no audit, fiscal or legaloversight.• A drain on budgetary resources: A sectorthat could be generating revenues for governmentwith normal rates of taxation appliedto sector activities is, under presentarrangements, a major drain on governmentresources.• Inefficient and wasteful use of electricity:Underpriced electricity is used inefficiently.Appropriate cost recovery willprovide incentives to cut down on thiswasteful use.• Limited opportunities for private participation:There are no legal impediments toprivate investment in the energy sector. Inpractice, there is a weak legal and regulatoryinfrastructure in place to support andmonitor investments. Potential investorscite unclear policies and corruption as abarrier to investment. In a well developedmarket, the majority of services now providedby the 11 SOE and three budgetaryunits that support energy operations couldbe implemented by the private sector inways that are more cost-effective and technicallyefficient. Areas where private sectorengagement has immediate potentialwith appropriate regulatory include independentpower production and oil and gasconcessions.In the Provincial Development Plan consultations,a number of issues were frequently highlightedacross a range of sectors and in a majorityof provinces, and therefore emerge as overarchingdevelopment priorities. Access to electricity,both for domestic use through the extensionof availability of electricity to more remotevillages, and for productive purposessuch as factories and businesses was mentionedin 80 percent of the PDPs.Policy framework: sector strategySubstantial new investment is required in thesector to increase domestic generating capacityand ensure adequate supplies. A central thrustin the strategy will be increased investment inenergy related infrastructure. The three keyhydro power projects (described above) willsubstantially add to generating capacity, butalso support agricultural growth and improvedmanagement of water resources. Substantialadditional private investment is also required.The Government will leverage currently availabledonor funds to ensure longer term accessto private investment and capital. Policies tosupport private investments will be established.Improved procurement, accountingfunctions, contracting and reporting at the governmentlevel will be put in place.A new market oriented paradigm will be developed,supported by significant institutionalstrengthening and capacity development. Asthe energy line ministries shift over time fromoperating as production-based entities to becomepolicy-making regulatory agencies, staffcapacity and in-house functions will be reorientedto market practices. The key programs ofthe sector are: (i) efficient operation of infrastructure;(ii) market based sector governance;(iii) rural electrification and renewable energy;(iv) expand supplies, (for additional detail referto the full sector strategy in ANDS Volume II).The Priority Polices and Projects include:• Implementation of key power infrastructureprojects: The Government will givepriority to the implementation of four majorinfrastructure projects that will substan-Economical and Social Development 79

tially increase power supplies, but also contributeto expanded irrigation and ruraldevelopment: (i) the Kokcha-e-Ulia HydroPower Plant, which will generate a total of1,900 MW and add 57,000 hectares of irrigatedagricultural land; (ii) the BaghdaraHydro Power Plant, which will generate210 MW, benefit more than 105,000 families,increasing irrigation coverage; (iii) theIrrigation and Power Project of Kokcha-e-Sofla, which will generate 100 MW ofpower, benefiting more than 950,000 familiesin the area; and (iv) the Sorobi II HydroPower Plant, which will generate 180MWand help meet electricity needs in Kabul.Other key projects include expansion of thepublic power grid through the rehabilitationand upgrading of Kabul and other keyinfrastructure areas (i.e., distribution –lines, substations, meters); the developmentof the North East Power System(NEPS) to be followed by the South EastPower System (SEPS), Western and EasternPower Systems; the development of theSheberghan gas and oil fields; constructionof new transmission and related distributionfor power imports; installation of adispatch and control system as well as a reactivepower system.• Restructured energy sector governance: TheGovernment will consolidate energy planningand policy-making functions throughthe Inter-Ministerial Commission for Energy(ICE). This may involve some regroupingof Ministerial functions as well asimproved line ministry staff capacity toplan and budget. Use of the ICE mechanismas well as improved public informationwill be essential for improved governmentcoordination in the energy sector.Related or duplicated energy functions atvarious ministries will be consolidated andappropriate line ministry terms of referenceswill be introduced. It is essential thatthe donors themselves improve the way inwhich they are engaged with the energysector. At present there are 25 donors engagedin the sector; in addition there are 15different US agencies. Afghan counterpartresources are limited and stretched to thelimit. Improved governance will mobilizeinvestment, mitigate corrupt practices andimprove the technical quality of energysupply. A viable legal and regulatoryframework will be established that includesthe development of market-based powerpurchase and production sharing agreements.• Legal reform and Regulatory standards.Finalization of primary legislative andregulatory tools is essential. These includemining regulations, the Hydrocarbons UpstreamLaw and drafting legislation for theelectricity sector. There are no meaningfultechnical standards or financial standardsfor operation in place; these need to be urgentlydeveloped as well as staff capacityto implement them. The Government isworking with the international communityto draft a revised Hydrocarbons Law aswell as mining and hydrocarbons regulations).Drafting of regulation for hydrocarbonsis underway in the strengthening ofthe cadastre and inspectorate functions andmore focus on grid and off-grid regulationof electricity as well as liquid fuels is required.• Commercialization and/or divestiture ofstate and “quasi-state” assets: The Governmentwill assess its sector assets and aplan for liquidation, restructuring andcommercialization or sale. In particular theGovernment will provide more support forthe corporatization and commercializationof national power operations. Commercializationand increasing the efficiency ofthe state power company DABM includes,for example, the installation of internationalaccounting and procurement practicesthat will follow in other energy subsectors.• Improve the enabling environment for privatesector investment. As new energy developmentsemerge including new powerimport transmission, gas-fired power, coalfiredpower and new hydro generation, theintroduction of the private sector to financeand operate these assets will be important.In most instances no local capacity is inplace to support these market operationsand private investments. A marketfriendlyenabling environment to facilitateprivate investment must be developed thatis sufficiently flexible to entice private investmentbut effective in how these investmentsare monitored to safeguard Afghanresources, workers, consumers andenvironment. The ANDS energy sectorstrategy calls for the establishment of a sec-80Afghanistan National Development Strategy (ANDS)

tor regulator, which will adopt a transparentlicensing regime and establish conditionsthat will attract private investment inelectricity generation and in the relatedfields of mining, natural gas and hydropower.A market-friendly enabling environmentto facilitate private investmentwill be developed. Key areas for investmentin the near term include: (i) increaseddomestic power generation that includesnew hydro power, natural gas and coalfiredpower facilities; (ii) power distributionincluding lines, substations and metering;(iii) power construction and services(i.e., outsourcing); (iv) exploration and exploitationof coal, natural gas and oil; (v)installation and operation of rural energyservices.• Expanded Public Power Grid: The Governmentis committed to improving energyaccess for people across the country. Ahigh priority in this area is the rehabilitationand expansion of grid-supplied power,including investment in new generation,distribution and transmission. The Governmentis also implementing a series oflarge and small infrastructure improvements,generation, transmission and improveddistribution of electricity throughoutthe country. Future actions include: (i)rehabilitation and upgrading of Kabul andother key infrastructure areas (i.e., distribution– lines, substations, meters); (ii) developmentof the North East Power System(NEPS); to be followed by the South EastPower System (SEPS), Western and EasternPower Systems; (iii) construction of newtransmission and related distribution forpower imports. Installation of a dispatchand control system as well as a reactivepower system will be underway in 2008.These on-going donor funded activities toexpand the power grids will be adjusted tobe compatible with the move to a moremarket based system.• Increase Access to rural energy services:Micro-hydro, solar, waste and even smalldiesel power and energy generatingsources will be promoted to improve ruralaccess. Commercial operation of these serviceswill be encouraged and technicalstandards will be established to ensurecost-recovery, sustainability and safety.High levels of cost recovery will avoid preemptingpotentially more efficient provisionof such services by the private sector.Several private firms are involved in thedevelopment of off-grid power suppliesbased on wind or solar power and effortswill be made to encourage the developmentof these activities, or at least not underminetheir viability with subsidizedpublic sector activities.• Increase Regional Cooperation and Tradein Energy Products: Afghanistan is geographicallywell positioned to import additionalresources from neighboring countries.Afghanistan joined as a full memberthe Central Asia South Asia (CASA)1300mw project in November 2007. Powerpurchase agreements (PPA) are being finalizedfor regular power imports fromneighboring countries and new PPAs arebeing negotiated for increased power imports.Afghanistan is also participating inongoing planning for a Turkmenistan-Afghanistan-Pakistan-India (TAPI) naturalgas pipeline. A number of regional energytrade and import arrangements have commencedand will contribute to long-termenergy security.• Poverty Reduction Initiatives: The energysector will provide essential power suppliesneeded for private sector development,job creation and poverty reduction.Investments in the sector will create directemployment opportunities in the developmentof power plants, oil, gas and coalfields, the construction of grid systems andthe commercial operations of the sector.The development of small energy installationswill contribute to local economic developmentparticularly in rural areas. Subsidiesfor electricity will be maintained forthe poorest households. Micro-hydro, solar,waste and even small diesel power andenergy generating sources will be promotedto improve increased rural access topower. Commercial operation of these serviceswill be encouraged and technicalstandards will be established to ensurecost-recovery, sustainability and safety. Anumber of private firms are currently involvedin the development of off-gridpower supplies based on wind or solarpower and efforts will be made to encouragethe development of these activities.• Environmental Protection: The environmentalimplications of the expansion of theEconomical and Social Development 81

energy sector will be fully accounted for.These will be both positive, such as reducedpressure for deforestation, whileothers may be potentially negative, such asincreased green house gas emissions.There will be scope for using wind and solarenergy, particularly in areas away fromthe regional grids, and the relative benefitsof this type of energy should be recognizedin policies to support their use.The energy sector strategy therefore combinesefforts supported by donor funding to expandpublic sector operations while laying thegroundwork for much greater involvement bythe private sector investors. The relativeweight given to these two components will bedependent on the relative effectiveness of thetwo efforts over the implementation period forthe ANDS (for details refer to ANDS VolumeII).Integration of the Provincial DevelopmentPlans (PDPs)Access to electricity, both for domestic usethrough the extension of availability ofelectricity to more remote villages, and forproductive purposes such as factories andbusinesses was cited in 80 percent of ProvincialDevelopment Plans. PDPs in eightprovinces, principally in the center, southand south east of the country report progressin access to electricity since 2005,however, provinces in the center and southalso most frequently mentioned the needfor improvement. Little mention or understandingwas cited with respect to the nonelectricityuse of energy, i.e., for heating,fuel for small equipment, vehicle fuel, etc.Expected Outcomes:The key outcomes of the sector strategy are:• Improved Governance and Commercialization• Expanded Public Power Grid• Increased Access to Rural Energy Services• Enabling environment for private sectorinvestment in energy sector. (For detail informationrefer to Appendixes 3-NationalAction Plan and 4-Monitoring Matrix.)WATER AND IRRIGATIONRole of the sector in ANDS:The ANDS strategic vision and goal of the watersector can be summarized as follows: tomanage and develop the water resources in thecountry so as to reduce poverty, increase sustainableeconomic and social development, andimprove the quality of life for all Afghans andensure an adequate supply of water for futuregenerations.There are significant water resources in Afghanistan.Average annual precipitation isequivalent to about 165,000 million m³, yieldingan annual surface runoff water volume ofabout 57,000 million m³. This amounts to approximately2,280 m³/year per capita. Thiswould be an adequate amount, except: precipitationis primarily in the form of snowfall andthe resulting snowmelt runs off in a matter of afew months without adequate catchment systems;and precipitation in not evenly distributedgeographically. Reliance is thereforeplaced on groundwater extraction that is notsustainable and currently only an insignificantamount of surface water storage exists. Deepwater drilling without adequate investment inrecharge basins or storage structures is degradingthe aquifers on which much of traditionalirrigation systems depend. Despite considerableassistance in rehabilitating irrigation systems,progress towards establishing a comprehensiveplan with prioritized and costed investmentsis still in the formative stage.The Afghanistan Compact Benchmarks for WaterManagement commit both the Governmentand the donors to the development of sustainablewater resource management strategies andplans covering irrigation and drinking watersupply, and irrigation investments will resultin at least 30 percent of water coming fromlarge waterworks by end 2010. Other CompactBenchmarks under Urban Development, Environment,Agriculture and Rural Developmentdirectly address and contribute to the watersector, as follows:• Urban Development: Investment in watersupply and sanitation will ensure that 5082Afghanistan National Development Strategy (ANDS)

percent of households in Kabul and 30 percentof households in other major urban areaswill have access to piped water andimproved sanitation.• Environment: Environmental regulatoryframeworks and management services willbe established for the protection of air andwater quality, waste management andnatural resources.• Agriculture: The necessary institutional,regulatory and incentive framework will beestablished for securing access to irrigation,water management systems and food security.• Rural Development: Rural developmentwill be enhanced for 90 percent of villagesthrough the provision of safe drinking water,sanitation (50 percent) and small scaleirrigation (47 percent) by the end of 2010.Millennium Development Goals: TheMDGs state that: “access to water and sanitation,electricity, and livelihoods sources havebeen negatively impacted through the decadesof war. Drinking water supplies reach only 23percent of Afghanistan’s total population – 43percent in urban areas and 18 percent in ruralareas. The country’s total sanitation coverageof only 12 percent deserves attention. Whilearound 28 percent of the urban population iscovered, only 8 percent of rural population hadaccess to improved sanitation in 2006. 46Target 10 of the MDGs is to halve by 2020 theproportion of people without sustainable accessto safe drinking water and ensure environmentalsustainability.The sector strategy incorporates feedback andcomments from the sub-national consultations.Access to clean drinking water has been identifiedas a priority in the Provincial DevelopmentPlans in all provinces. Participants generallyvoiced concern that unsafe drinking water is acause of disease, and the provision of safedrinking water is therefore seen to be as mucha public health issue as an issue of infrastructure,rural and urban development. In over aquarter of PDPs, the need for access to cleandrinking water is specifically raised by women46 According to the best estimates of social indicators for childrenin Afghanistan, UNICEF, few places in the world face suchscarce and alarming water supply and sanitation coverage levels.who often have the responsibility of collectingwater for the household. However, this issue isnot confined to the domestic context and thePDPs in six provinces highlighted the need foraccess to safe drinking water in public institutionssuch as schools.Current situation in the sectorGiven the importance of water resources, theGovernment has made improved water managementa high priority. Steps are being takento address shortcomings in governance as wellas meeting some of the most pressing needsthrough donor funded projects. Some keyachievements have been:• The formulation of the Supreme Councilfor Water Affairs Management (SCWAM)to coordinate and overcome the problemsof diverse ministerial responsibilities forwater management. A Technical Secretariathas been established to develop newwater laws and develop a consistent set ofpolicies for water management. New environmentallaws were recently enacted bythe National Assembly.• Steps have been undertaken to re-organizewater resource management on the basis ofan Integrated Water Resource ManagementSystem based on the five main river basins.Development will still be planned and implementedcentrally, but in the future individualriver basin organizations or authoritieswill be established. Feasibility studieshave been completed or are underway forsmall, medium and large water infrastructureprojects. The rehabilitation and modernizationof hydrological stations havebeen started. Research and modeling of theavailability of allocation of safe drinkingwater supplies in Kabul are being developed.• Significant progress has been made in providingincreased access to safe drinkingwater and sanitation. The Afghanistan UrbanWater Supply and Sewerage Corporation(AUWSSC) has been established.Some 80 water supply and sanitation projectshave been implemented around thecountry. Research and assessment of theunderground water resources available toKabul is on-going. The urban water supplysystems will be transformed into quasipublicagencies. Two million urban resi-Economical and Social Development 83

dents (31 percent) have benefited from investmentsin water supply and 12 percentfrom investment in sanitation in major citiesbetween 2002 and 2007. About 35,000water points 59 networks and 1,713 waterreservoirs and 23,884 demonstration latrineshave been constructed. More thanthree million people have benefited directlyfrom the rural water supply andsanitation activities in the country. Arounda third of the provinces reported some improvementin access to clean drinking watersince 2005 during the consultative processunder the ANDS.• Irrigation Rehabilitation has been givenhigh priority over the past four or fiveyears. An estimated 1.8 million hectares ofland is under irrigation; 10 percent gets waterfrom engineered systems and largeworks, the remaining through traditionalirrigation methods. Of some 2,100 rehabilitationprojects, approximately 1,200 havebeen completed and have been placed backinto commercial service. The Governmentwill continue to work with the mirabs thatmanage these systems. 47Despite some progress in establishing bettergovernance in the sector and in rehabilitatingexisting assets, a lot more needs to be done.Prior to 1979, some 3.3 million hectares werecultivated under various irrigation methods,compared to the 1.8 million hectares now beingirrigated. The remaining amount employs traditionalirrigation methods. Out of 7.9 millionhectares arable land, 5.3 million hectares is irrigable.Irrigation water management is a highpriority of the Government.There is a lack of skilled human resources withexperience in water management. Informationsystems are only now being reconstituted andthere is a lack of reliable hydrological, meteorological,geo-technical and water quality data.There is a lack of the infrastructure and equipmentneeded to efficiently conserve and utilizewater resources that result from seasonal runoffwith the snow melt. There is limited data47 The mirabs are community level organizations that managetraditional irrigation systems. A similar effort has been madeunder the National Solidarity Program to establish CommunityDevelopment Councils with a broader mandate for local funding.These organizations have different mandates, representativelyand are based on a totally different geographical unit.on ground water resources and informationindicating that un-regulated deep well drillingmay be depleting aquifers that are essential towater supplies and traditional irrigation systems(Karezes and springs). There is a lack ofeconomic mechanisms regulating water useand investments for water supply, sanitary systems,irrigation, and hydropower generation.Unclear delineation of responsibilities betweenministries complicates planning. Some donorsare focused on emergency projects that are notintegrated into an integrated system of wateruse. Access to drinking water and sanitation,while improved, is still not in compliance withthe Millennium Development Goals. There is alack of hydro geological investment in urbanareas. A significant risk exists for undergroundwater contamination. A major river basin watersupply master plan with good informationon water balances, that is, supply versus demandfor water for drinking, irrigation, hydropower and environment purposes is not yetavailable. There is a pressing need to enhancethe ground water resource recharge capacity.Coordination among water related institutionsand agencies remains weak.This sector strategy incorporates feedback andcomments from the sub-national consultations.The projects identified and prioritized duringthe SNC process are included in the Water SectorStrategy. Access to clean drinking waterhas been identified as a priority in the ProvincialDevelopment Plan in all provinces. Participantsgenerally voiced concern that unsafedrinking water is a cause of disease, and theprovision of safe drinking water is thereforeseen to be as much a public health issue as anissue of infrastructure, rural and urban development.In over a quarter of PDPs, the needfor access to clean drinking water is specificallyraised by women who often have the responsibilityof collecting water for the household.However, this issue is not confined to the domesticcontext and the PDPs of six provinceshighlight the need for access to safe drinkingwater in public institutions such as schools.Around a third of the provinces spread acrossthe country report some improvement in accessto clean drinking water since 2005.Policy framework: sector strategyFor the immediate future, the Government centrallywill play the dominant role in setting pol-84Afghanistan National Development Strategy (ANDS)

icy priorities and decisions pertaining to developmentand management of water resources atthe national level. The Government, actingthrough its operating entities, can influence thenecessary international cooperation relating toseveral international water bodies. This extendsto coverage provided by policy frameworks,appropriate legislation, and institutionalstructures under which water managementcan over time be devolved to the riverbasin and/or river sub-basin levels. Groundwateron the other hand seldom has aquiferboundaries coinciding with river basins. Managementof groundwater aquifers may necessitatecollaboration with special inter-basin entitiesestablished for that purpose. (For additionaldetails refer to ANDS Volume II).Towards an Integrated Water ResourceManagement System (IWRM)The water sector is extremely diverse. The responsibilitiesfor supply management and useof water are distributed among a number ofline ministries. The sector’s governancemechanisms (organizational structure, policiesand legislation) are in the process of reformulationand implementation. Adoption and implementationof an effective IWRM programwill take into consideration all activities anddevelopment requirements influencing waterresources. This will include sociological andecological considerations, in addition to watersupply, irrigation, hydroelectric power, sanitation,land use, fisheries, and forestry. The programwill prioritize a series of specific activitiesrequired to effectively implement IWRM policyframework.The river basin approach to water managementwill lead to improvements in capturing surfacewater using storage reservoir and recharge basins.By devolving authority to the RBA andthus encouraging more effective use of waterresources, the water resource strategy (whenintegrated with programs in the transport, agriculture,health, education, power sectors,along with counter narcotics programs, privatesector development programs) will contributeto sustainable development and poverty reduction.Key Components of the Water SectorStrategyWhile an IWRM approach has major benefits,supplementary comprehensive river basin datamanagement programs are needed to supportthis approach. It is important to improvemechanisms regulating water use and to attractinvestment to rehabilitate and construct irrigation,water supply and sanitary systems, aswell as hydropower generation. Essential legislationand a new policy framework governingthe water sector have been prepared. The sectoris in the process of transitioning from a project-by-projectapproach to a sector-wide approach,using an integrated water resourcesmanagement (IWRM) system. Improved governancemechanisms were identified and arebeing implemented. Foremost among themwas the formation of the Supreme Council forWater Affairs’ Management (SCWAM), and itsassociated Technical Secretariat.Until the IWRM comes into effect, considerablereliance will have to be put on a project-byprojectapproach for continued investments inrehabilitation of existing systems. New projectsneed to be assessed relative to the returnsfrom rehabilitation efforts and returns in othersectorsResponsibilities for a number of water relatedactivities are distributed among a number ofline ministries and agencies. Each of these entitieshave prepared sector specific strategies focusingon their particular sector mandate, oftenunderemphasizing water related programsand/or activities. Development of a water sectorstrategy therefore requires coordinating allrelevant water sub-sector strategies being administeredby individual government entitiesinto one single unified water sector strategydocument. The following sub-sectors havebeen included in this unification: (i) urban andrural water supply and sanitation; (ii) irrigationand drainage; (iii) hydro power; (iv) industrialwater supply and wastewater disposal; (v)flood protection and preparedness; (vi)drought mitigation measures; and (vii) environmentalrequirements, including forestry,fisheries, and bio-diversity. Facilitating relateddevelopment of each of these sub-sectors willrequire institution building, enhancement oflegal frameworks, capacity development,enlisting economic mechanisms, and intensiverehabilitation of infrastructure.Economical and Social Development 85

The Strategic Policy Framework for the WaterSector approved by SCWAM recommendedthat the following policies, laws, regulationsand procedures should be developed in orderto move forward in the development of the watersector. Under this policy framework, theWater Law of 1991 will be revised; water resourcesand irrigation policies and regulationswill be established along with an institutionalframework for water resources management;regulations for Water User Associations will bedeveloped; plans will be developed and stepstaken to preserve surface and undergroundwater resources; national urban and rural watersupply and sanitation policies and institutionaldevelopment will be implemented; accessto safe drinking water and improveddrainage and sanitation systems will be established;and key groundwater and hydropowerdevelopment plans and policies will be established.For the immediate future, the Government willplay the dominant role in setting policy prioritiesand decisions pertaining to the developmentand management of water resources.This extends to policies, legislation, and institutionsunder which water management can intime be devolved to the river basin and/orriver sub-basin levels. (Management ofgroundwater aquifers may sometime necessitatecollaboration with special inter-basin entitiesestablished for that purpose.) Ongoing andplanned water sector projects have been structuredinto eight programs (i) Institutional Setupand Capacity Building (ii) National WaterResources Development (iii) National RiverBasin Management (iv) Irrigation Rehabilitation(v) Urban Water Supply and Sanitation (vi)Rural Water Supply and Sanitation (vii) RiverbankProtection (viii) Agriculture “Food Securityfor All”. For detail on all of the programsrefer to ANDS volume II. The highest priorityprograms are:• Institutional Building and Capacity DevelopmentProgram: Activities in this programfocus on the institutional and humancapacity development of water resourcesmanagement as well as infrastructure developmentat national, river basin and subbasinlevels. These activities have beencombined into a comprehensive programto enhance cooperation between projectsand avoid duplication of efforts.• National Water Resources DevelopmentProgram: Under the Water Law the Ministryof Energy and Water is responsible forthe preparation of a national water resourcesdevelopment plan. This plan willcover the development of water resourcesfor the social, environmental and economicneeds of the country as well as: (i) elaboratingriver basin development and managementplans, fostering ministry and waterusers’ capacity for on-farm and off-farmwater management; (ii) preparing for discussionson trans-boundary water issueswith some neighbor countries; (iii) supportinganalytical capacity and research; (iv)enabling private investments in the watersector; and (v) proper planning and implementationof infrastructure for rain andflood water harvesting, supplementary irrigation,groundwater recharge and soilstabilization. As a first step in the developmentof this national development plan,a Master Plan for the Kabul River Basin hasbeen prepared. In addition, the Ministryhas prepared a list of water resources developmentprojects in the five river basins.• Irrigation Rehabilitation Program: Severalprojects to address the immediate needs inirrigation infrastructure have been developed.48 Although these projects mainly focuson the infrastructure, they contribute tothe development of water resources andaddress related issues like the rehabilitationof the hydro-metric network for datacollection on river flows and weather.Components of the emergency irrigationrehabilitation program for the period 2008to 2013 include the rehabilitation of the NationalHydrological Stations to aid in theundertaking of national hydrological surveysto aid in planning and building irrigationinfrastructure; and rehabilitation of nationwidesmall, medium and large traditionalirrigation schemes, such as the‘Emergency Irrigation Rehabilitation Project’– a three year country-wide project forthe rehabilitation of infrastructure and capacitybuilding.These programs respond to the dual tasks ofremodeling and modernizing institutions while48 See the discussion on hydro power projects for the energysector.86Afghanistan National Development Strategy (ANDS)

at the same time rehabilitating and improvinginfrastructure. They consider short term emergencywater infrastructure rehabilitation andincome generation needs as well as the longterm goal of sustainable development of institutionsand creation of new multifunctionalinfrastructure.The development of the country’s water resourceswill continue to be heavily influencedby programs and projects implemented by donors.It is essential that these activities be effectivelycoordinated and aligned with the prioritiesin the ANDS. SCWAM will undertake aleadership role among government organizationsin providing coordination with the internationalcommunity. The ANDS water sectorgoals are achievable with the implementationof an effective integrated water resource developmentstrategy. Some of the benefits will berealized only over the long term, while otherswill be realized within a very short time span.Expected OutcomesThe key expected outcomes of the Water SectorStrategy are:• Improved water sector legal and governancestructures and institutions in place• Sustainable water resource managementstrategies and plans covering drinking andirrigation water supply developed and implemented.• Water resources for drinking and irrigationpurposes improved as well as poverty reductionand employment creation.• Infant mortality decreased and life expectancyincreased as result of higher access toclean water. (For more detailed informationrefer to Appendixes 3-National Action Planand 4-Monitoring Matrix.)AGRICULTURE AND RURALDEVELOPMENTRole of the Sector:The ANDS long term strategic vision for agricultureand rural development is to ensure thesocial, economic and political well-being of ruralcommunities, especially poor and vulnerablepeople, while stimulating the integrationof rural communities within the national economy.This will require transforming agriculturalproduction so that it is more productiveand increasingly commercially oriented andexpanding off-farm employment opportunitiesas the basis for increasing incomes among therural population. This sector strategy articulatesa road map for the way forward in whichpoverty reduction through economic regenerationis the central objective. A central focus ison supporting the poorest and most vulnerablesegments of rural society and promoting thedevelopment of medium and large scale commercialagricultural activities. Advancementsin the sector will improve the quality of life forrural citizens, increase food security, improvethe delivery of basic services, increase incomesand contribute to establishing a safe and secureenvironment.The Afghanistan Compact Benchmarks relateddirectly to agriculture and rural developmentcall for measurable improvements in:Compact Benchmark 6.1• The necessary institutional, regulatory andincentive framework to increase productionand productivity will be established tocreate an enabling environment for legalagriculture and agriculture-based rural industries.• Public investment in agriculture will increaseby 30 percent. Particular considerationwill be given to perennial horticulture,animal health, and food security by: institutingspecialized support agencies and financialservice delivery mechanisms, supportingfarmers’ associations, branding nationalproducts, disseminating timely priceand weather-related information and statistics,providing strategic research and technicalassistance, and securing access to irrigationand water management systems.Compact Benchmark 6.2• assistance to and rehabilitation and integrationof refugees and internally displacedpersons; and• assistance to female-headed householdsthat are chronically poor and increases intheir employment rates.Economical and Social Development 87

Other major Government goals relating to agricultureand rural development should benoted, including:• creating the necessary policy and regulatoryframework to support the establishmentof micro, small and medium-size ruralenterprises;• creating the enabling environment for sustainablemanagement and use of Afghanistan’snatural resources;• access to safe drinking water will be extendedto 90 percent of villages, and sanitationto 50 percent;• road connectivity will reach 40 percent ofall villages.• 47 percent of villages will benefit fromsmall-scale irrigation. (See ANDS VolumeTwo for more details)Current SituationAgriculture has traditionally been the majoractivity for a large proportion of the population,particularly in the most remote areas. Theyears of turmoil left much of the country’s agricultureand rural infrastructure in a seriousstate of disrepair and led to a significant reductionof cultivatable land and degradation of theenvironment. Between 1978 and 2004, agriculturalproduction declined by an average of 3.5percent a year; 50 percent of the livestock herdwas lost between 1997 and 2004.Recent performance in the sector has been positive.Measurable progress has been achievedsince 2003 in improving rural livelihoods.Through a variety programs, almost 20,000 kmof rural access roads (i.e., all weather, villageto-villageand village-to-district center roads)have been constructed or repaired, increasingaccess to markets, employment and social services.More than 500,000 households (36 percentof villages) have benefited from smallscaleirrigation projects. Currently, 32.5 percentof the rural population has access to safedrinking water and 4,285 improved sanitationfacilities have been provided. More than336,000 households have benefited from improvedaccess to financial services. Some18,000 CDCs have been established and areimplementing community-led developmentprojects.The contribution of agriculture to GDP increasedfrom 48 percent in 2006 to 53 percent in2007, although the longer run trend (not includingopium) is down due mainly due torapid growth in construction and other activities.Other achievements include: 5.5 millionmetric tons of wheat and other grains producedin 2007 compared to 3.7 million metric tons in2002; 0.9 million metric tons of horticulture andindustrial crops produced in 2007 compared to0.4 million metric tons in 2002; 3.2 million animalsreceived veterinary and health services;5,000 metric tons of improved wheat seed wasproduced and distributed to farmers in 28provinces; $120 million is to be invested incommercial agriculture; more than 3,000 cooperativesand farmers organization have beencreated and strengthened; and 20,000 cooperativemembers trained.However, significant improvements are still tobe made. With a few notable exceptions, allrural citizens are poor in relative and absoluteterms, lacking both physical and social assets.80 percent of the Afghan population live in ruralareas, most of whom are engaged in agricultureto some degree, although many are alsoheavily engaged in processing, trading or marketingactivities of agricultural products; 12-15percent of total land area is suitable for cultivation;water constraints inhibit cultivation of upto one third of irrigated land; three million hectaresof land are rain-fed, in a country of repeateddroughts; 58 percent of villages havelimited seasonal or no access roads (the averagedistance to the nearest road is 4.6 km); 13 percentof rural Afghans have access to electricityat some point during the year; more than 70percent of rural Afghans do not have access tosafe drinking water; 96 percent of rural Afghansdo not have access to safe toilets/sanitation(28 percent have no toilets atall). The continued high population growthprojected for Afghanistan will imply continueddecline in per capita levels of agricultural resourcesunless major investments are made inimproved water management.Ongoing instability, widespread poverty andlack of governance resulted in a dramatic upsurgein opium poppy cultivation, involving3.3 million people (14 percent of the population).Poppy production is now highly concentratedin five southern and eastern provinces,whereas production in the other 29 provinceshas fallen and is half 2004 levels.88Afghanistan National Development Strategy (ANDS)

Further, the unstable security situation coupledwith capacity constraints presents major obstaclesto program implementation, includingcommunity mobilization, survey and design ofprojects, service and input provision, selectionof qualified contractors and NGOs willing towork in high-risk areas, and the ability tomonitor projects for quality assurance and financialcontrol purposes. These constraintsaffect the pace, cost and quality of developmentactivities.Most farmers are engaged in subsistence ornear-subsistence agriculture, and many farmingfamilies lack food security with risky livelihoodsoften combined with chronic debt. Further,many rural households are involved indown-stream agricultural activities, includingprocessing, transporting and marketing. As aresult, the country’s vulnerability to naturaldisasters and food shortages is high. The abilityto engage in agricultural pursuits is centralto improving wellbeing of the rural poor.Limited coordination between ministries andbetween the Government and the internationalcommunity has impeded progress. Governmentfunds have been channeled throughhighly centralized ministries, with many nationalprograms and donor-funded projectsworking independently of each other. The roleof provincial administration units has been andremains unclear, especially in the areas of economicplanning, budget execution and servicedelivery. Provincial governments have limitedauthority, budgetary resources or technicalskills to facilitate development. Ministrieswhich deliver services to the rural populationare still struggling with the legal structures ofpast administrations and over-centralization ofadministrative processes has impeded thetimely and effective delivery of services to localcommunities.The Government recognizes that to meet theseenormous challenges nationwide, progressmay be slow, incremental and uneven; it maytake a generation or more to adequately meetthe needs of all rural Afghans. Nevertheless,the Government is committed to providing aproper enabling environment for the ruraleconomy and working to address the needsand articulated priorities of the rural population.This long term effort requires a consideredand cohesive policy framework.Policy and Strategic FrameworkThe Government is committed to working toaddress the needs and articulated priorities ofthe rural population. This long term effort requiresa considered and cohesive policyframework across ministries and sectors. Thefollowing are the key components of this policyframework of this sector:• Comprehensive and strategically cohesivepoverty reduction programs• Public/Private sector responsibilities• Assurance of food security• The restoration and expansion of Afghanistan’slicit economy through the promotionof livelihoods free from dependency onpoppy cultivation• Land tenure security• Assistance to farmers to increase productionand productivity• Environmental protection and assistance tocommunities to manage and protect Afghanistan’snatural resource base for sustainablegrowth• Improvements in agricultural and ruralphysical infrastructure and irrigation systemsproviding services to meet basic humanrights• Development of human resource capital• The strengthening of local governance• Institutional coordination• Cross sector policy development• Strengthening of national capacities• Mitigation of natural and man-made disastersThe strategy intent focuses on five thematicareas of programming. The following five thematicareas are loosely sequenced, based upontheir level of interdependence• Local Governance• Agricultural Production• Agricultural and Rural Infrastructure• Economic Regeneration• Disaster and Emergency Preparedness (SeeANDS Volume Two for more details)The key priorities of this program are the:• Development of a comprehensive set ofprograms and projects – the ComprehensiveAgriculture Rural Development program– designed to improve rural livelihoodsand reduce rural poverty; andEconomical and Social Development 89

• Support of commercialized agriculture,leading to an improvement in agriculturalproductivity throughout the rural economy.Comprehensive Agriculture and RuralDevelopment program: The ComprehensiveAgriculture and Rural Development program(CARD) is a series of programs designed tosupport the poorest and most vulnerable segmentsof rural society. The CARD representsthe Government’s approach to providing diversifiedincome sources, through income support,direct provision of assets, skills trainingand market opportunities, and is crucial toproviding alternatives to producing narcotics.Interventions will be targeted and tailored tospecific regions and groups.In implementing the CARD, the Governmentwill ensure that efforts to promote activity inthe sector will stimulate and not displace spontaneousviable private sector development.The devolution of authority will be undertakenover a number of years to ensure the capacitiesat all levels of government exist. The Governmentwill work to reconcile the introduction ofsub-national governance measures down to thevillage level with existing community organizations.In particular, the role between proposedVillage Councils and the existing CommunityDevelopment Councils set up under theNational Solidarity Program and which havebeen given legal status will be clarified.Strengthening sub-national governance structuresin line with the newly-formed IndependentDirectorate for Local Governance will alsobe undertaken.The Government will work with NGOs, civilsociety and the international community on theprioritization of the sub-components of theoverall CARD program and to develop thefunding requirements in some detail within alog frame matrix, identifying what will be doneby when. This will allow a cooperative effortby the international community and the Governmentto reallocate resources towards thoseefforts that appear most effective in improvingrural livelihoods. Ongoing monitoring andevaluation will be essential to address identifiedconstraints and successes and alter theprograms as necessary.The principal program among the 15 programsof the CARD is the National Solidarity Program(NSP), the Government’s main communitydevelopment program. Implemented bythe Community Development Councils (CDC),the more than 50,000 projects benefit approximately2 million people in rural areas. TheNSP is developing the capacity of CDCs toidentify community needs and transfer fundingand necessary support resources to fund localizedsmall scale activities of importance to ruralcommunities, such as roads, irrigation, waterwells and school. It is a successful and popularprogram used to empower these communities.It is a major contributor to meeting a number ofthe Compact benchmarks and is a successfulexample of country-wide Government, donorand NGO coordination. It establishes theframework for future programs that providegreater control to local communities, includingthe private sector, over development funds.The other 14 programs of the CARD include:• The National Food Security Program willpromote and implement food security opportunitiesat the household level, benefitingover 1.2 million households by 2010.This will decrease malnourishment ratefrom 57 percent to 35 percent. A key componentof this program is the support toimprove local governance in 38,000 villages.• The National Area Based DevelopmentProgram will support all District DevelopmentAssemblies to develop district leveldevelopment plans which will supportcomprehensive rural development and regeneration.• The Horticulture Program will supporthorticulture development and supplyfarmers with saplings, provide equipmentfor trellises and establish pest control systemsleading to a 20 percent increase inperennial crop production and significantexports through public private sector partnerships.• The Livestock Program will support livestockproduction by importing purebredsheep, establishing commercial dairyplants and poultry units for women farmers,increasing productivity and output.• The National Rural Access Program willsupport rural road construction and reha-90Afghanistan National Development Strategy (ANDS)

ilitation that will provide all weather roadaccess to 65 percent of villages by 2013.• The Rural Water Supply and SanitationProgram will assure that by 2013 98 percentof villages will have access to safe drinkingwater and 50 percent of villages will haveimproved sanitation facilities. This willsubstantially improve health, hygiene andwelfare in rural communities.• The Irrigation Program will establish irrigationinfrastructure on an additional105,000 ha of new irrigated land by 2018and improve on-farm water use efficiency.• The National Resource Program will establishNational Resource Managementcommittees and develop national resourcemanagement plans for forests, rangeland,wildlife and desertification control.• The National Surveillance System Projectwill assist MRRD and CSO in the developmentof a national poverty, vulnerabilityand food security surveillance system andenable the government to provide credibleand timely information to all governmentand non-government agencies.• The Rural Electrification Program willresult in over 4,000 villages being connectedto local electrical facilities.• The Rural Enterprise Program will providetraining and finance to establish ruralenterprises across 70 percent of all CDCsand create an estimated 2.1 million jobs,better integrate the rural economy with thenational economy and reduce poppy cultivation.• The Research and Extension System willestablish a research and extension capability;provide access to credit, support farmersorganization and private sector marketdevelopment through cooperatives, leadingto agricultural growth and diversification.• The Emergency Response System willprovide a mechanism for humanitarian anddisaster response that will provide emergencyassistance, assure access to areas affectedby snow and disasters and protectvulnerable people and assets.• The Capacity Building Program will providethe institutional and organizationalcapacity at the national, provincial and districtlevels needed to successfully implementthe other CARD programs. (SeeANDS Volume Two and Appendix “NationalAction Plan/Policy Matrix” for moredetails)Support for Commercial Agriculture:There is virtually no large scale commercialagricultural activity currently undertaken inAfghanistan. This has not always been thecase. Earlier turmoil destroyed much of thecountry’s agricultural and physical infrastructure,halting commercial activities. There hasbeen limited recovery since 2002. This includesongoing efforts to increase the internationalcommunity’s, including ISAF, procurement ofagricultural products from local producers,promoting large scale production and supplychain processes.The Agriculture and Rural Development Zones(ARDZ) program is the Government’s approachto expanding commercial activities andincreasing agricultural productivity. This isnecessary to increasing incomes and employmentopportunities in rural areas and to developpotential agro-based export potential.The ARDZ recognizes that geographic prioritieshave to be set in support of the developmentof commercial agriculture. These geographicpriorities will be used to target infrastructure,utilities and other support by variousministries. The Government will release publiclyheld land to increase private investment.Competitive bidding for the rights to leasethese lands will be similar to the competitivebidding to lease development rights for mineralresources and the competitive bidding forthe rights to use the telecommunications spectrum.Further, the Government will continueto investigate, implement and monitor keysteps necessary to increasing financial andtechnical support so that private firms are ableto expand operations. This will ensure theprocess of transforming underutilized stateland into commercially viable agro-processingenterprises will be as fast and efficient as possible.The Government’s objective is to largely relyon private investment and public sector supportto transform agriculture in some well definedzones where the conditions for growthare most favorable and high value addedcommercial agricultural activities can flourish.Economical and Social Development 91

This requires integrating and upgrading existingprivate and public sector networks and investingin essential infrastructure projects thatshorten trade distances, reduce costs and increaseproductivity, encouraging entrepreneursto expand private sector activity.In implementing the ARDZ, the Governmentwill:• identify and map agricultural growthzones;• quantify the necessary factors required foraccelerated growth within each zone;• identify key competitive product valuechains and the connector firms that drivethese value chains;• develop plans to extend the reach of agriculturalzones into more remote rural areas;• ensure rural development activities arenational in scope and linked to the agriculturalgrowth zone plans; and• mobilize private sector investment and operationsas the key element in the successof the agricultural growth zone initiative.To date, five distinct agricultural growthzones have been identified:• a North Western Zone centered on theprimary market town of Mazar-i-Sharifthat includes ten secondary market townsand which is well positioned to take advantageof trade linkages with the CentralAsian Republics;• a North Eastern Zone centered on the primarymarket town of Kunduz that includesseven secondary market towns and which,with the new bridge at Shirkhan, is wellpositioned for trade with Tajikistan and,with good road connections to Urumqi,with China;• a Central Zone centered on the primarymarket town of Kabul that includes thirteensecondary towns and which is linkedwith the important market center in Jalalabadand the regional market in Peshawar,Pakistan;• a South Eastern Zone centered on the primarymarket town of Kandahar and whichincludes four secondary towns (one ofwhich is the important agricultural productiontown in Lashkargah) and which islinked to the regional market in Quetta,Pakistan; and• a Western Zone which is centered on theprimary market town of Herat and whichincludes four secondary market towns andwhich has linkages to markets in andthrough Iran.As part of the ARDZ, the Government hasbegun the process of establishing the ExecutiveManagement Unit with Presidentialauthority to coordinate and develop afive year action plan and organize the necessaryfunding and commitment from lineMinistries and donors so as to establish aprogram implementation plan. This unitwill ensure critical infrastructure, such aspower, water, transportation links, telecommunications,financial services andvocational programs are available. TheUnit will work with relevant Ministries toensure priority is given to providing servicesin these zones. (See ANDS VolumeTwo for more details)Expected OutcomesThe Agriculture and Rural Development expectedoutcomes are as follows:• Strengthened Local Governance: Functioningformal and informal local governance,including social and economic activitiesimplemented and maintained by communitiesthat contribute to the human capitaldevelopment and improved livelihoods.Improved management of local natural resourcesincluding clarifying the legal statusof natural resources, roles of both communitiesand institutions in governance andmanagement will help ensure food security,contribute to poverty alleviation andimprove both ecological integrity and thenatural resource base.• Poverty Reduction and Food Security: TheNational Food Security Program (NFSP)will increase household food security andnutritional status while contributing to nationalfood security and economic growthin rural areas.92Afghanistan National Development Strategy (ANDS)

• Increased Agricultural Production andProductivity: Public and private sectorpartnerships strengthen horticulture industry.Increased livestock production andproductivity will improve food securityand incomes that will lead to a reduction ofillicit agriculture and a decline in livestockimports. Agriculture diversificationthrough various value-added activities, research,extension, access to credit, marketdevelopment, establishing/strengtheningfarmers’ organization, private sector development,trainings, will improve the ruraleconomy. (See ANDS Volume Two formore details)• Provision, and maintenance of Agricultureand Rural Infrastructure: Successfulcrop production requires: technical irrigationmanagement (e.g., availability of irrigationwater supply, improving water efficiencyand productivity, building effectiveand efficient irrigation and village basedirrigation infrastructures, utilize modern irrigationtechnologies and human resourcewater management (e.g., organizing andstrengthening mirabs, farmers associations,irrigation associations, decentralization ofirrigation management at basin and subbasinlevels, water allocation. etc.).TRANSPORTRole of the Sector in ANDSThe ANDS strategic vision and goal for thetransport sector is to have a safe, integratedtransportation network that ensures connectivityand that enables low-cost and reliablemovement of people and goods domestically aswell as to and from foreign destinations. Thiswill give impetus to economic growth and employmentgeneration and help integrate Afghanistaninto the global economy. A high priorityis to have in place an efficient and viableroad transportation network for achieving economicgrowth and poverty reduction, particularlyin rural areas.In the 1960s and 1970s, a large portion of the‘ring road’ and connecting roads to neighboringcountries were constructed. This networkwas subsequently largely destroyed duringthree decades of war and political strife. TheGovernment has continued to give high priorityto completing the rehabilitation and extensionof this system over the past six years. Dueto the significant impact of the road system oneconomic activity and the impact on povertyreduction, this will continue to be a high priorityunder the ANDS strategy.The Transport Sector Strategy will achieve thefollowing targets established in the AfghanistanCompact. (i) Roads: Afghanistan will havea fully upgraded and maintained ring road, aswell as roads connecting the ring road toneighboring countries by end-2008 and a fiscallysustainable system for road maintenance;(ii) Air Transport: By end-2010, Kabul InternationalAirport and Herat Airport will achievefull International Civil Aviation Organizationcompliance; Mazar-i-Sharif, Jalalabad andKandahar will be upgraded with runway repairs,air navigation, fire and rescue and communicationsequipment; seven other domesticairports will be upgraded to facilitate domesticair transportation; and air transport servicesand costs will be increasingly competitive withinternational market standards and rates. (iii)Regional Cooperation: By end-2010 Afghanistanand its neighbors will achieve lower transittimes through Afghanistan by means of cooperativeborder management and other multilateralor bilateral trade and transit agreements.Current situation in the sectorSince 2001, significant achievements have beenmade in the transport sector as donors contributedover $3.3 billion to rebuilding the transportsystem between 2002 and 2007. Some ofthe main achievements include:• An estimated 12,200 kilometers of roadshave been rehabilitated, improved, or builtincluding segments of the ring road system,national highways, provincial roadsand rural roads.• Kabul International Airport has been expandedand extensively rehabilitated.• Four major airports (at Herat, Mazar-i-Sharif, Jalalabad, and Kandahar) as well asseven other regional airports are eitherslated for, or currently undergoing, extensiverehabilitation and expansion.• In July 2007, trade and transit agreementswith Uzbekistan and Turkmenistan werereached. A transit agreement is currentlyEconomical and Social Development 93

eing drafted with Tajikistan. Theseagreements will help reduce transit timefor shippers moving goods transnationally.• The introduction of the automated customsand data systems (ASYCUDA) has beeninitiated which will reduce transit timesand encourage promote trade, and aid intracking customs collections.Much remains to be done to expand andimprove the transportation system. Road,air and rail links all require significant investment.Some of the most pressingneeds include:• A system for road maintenance and rehabilitationurgently needs to be put intoplace and made operational. Roads thathave been reconstructed will begin to deteriorateunless maintenance is done in a systematicway.• Approximately 85 percent of the total130,000 km road network (some 43,000 kmof national, regional, urban and provincialroads and an estimated 87,000 km of ruralroads) is significantly degraded, with a majorportion not passable by motor vehicles.Most bridges and culverts are in bad conditionand at risk of collapse.• A limited number of airports are availablefor commercial use and all are in need ofinfrastructure improvements. None of thecivil air services meet the internationalstandards and practices required by the InternationalCivil Aviation Organization(ICAO) and the International Air TransportAssociation (IATA). While there has beenprivate entry into the civil aviation sectorand regional connections have expanded,much must still be done to create a truly‘open skies’ regulatory framework thatboth encourages new entry but maintainsinternational standards for safety.• The country has no internal rail links, butrelies on rail heads in neighboring countriesfor trade. The railhead transfer stationsare inefficient, increasing the costs ofrail transportation. Mines cannot be developedand potential resources cannot be exploredand utilized without having a railwaylinks to the neighboring/regionalcountries.• Transport sector ministries and institutionsare weak in the human capacity and organizationto carry out budgeting; procurementand contract administration; andadequate management of transport-relatedassets. The institutions lack the necessaryregulatory and enforcement frameworksand personnel management systems.There are overlapping ministerial responsibilitiesin the sector. There is a lack of coordinationand communication within thetransport sector governance institutionsand with other sectors. For detail refer toANDS Volume II.The Transport Sector Strategy incorporatesfeedback, proposed projects and commentswhich emerged from the Sub-NationalConsultations process. The construction ofroads was among the top five most prioritizedsectors in the PDPs. In areas such asBadakhshan, Bamyan, Ghor and Sari Pul,road construction was listed as the numberone priority.Policy framework: sector strategyThe Government continues to give high priorityto rehabilitate a badly damaged road system.This includes: (i) completion of a fullyupgraded and maintained ring road and connectorroads to neighboring countries, (ii) improving5,334 km of secondary (national, urbanand provincial) roads and (iii) improving andbuilding 6,290 km of rural access roads as akey to raising rural livelihoods and reducingpoverty and vulnerability in rural areas. 49 Betterrural roads will improve market access andopportunities for rural households. The actualallocation of resources amongst these three areasof planned activity will depend on the estimatedrates of return from analysis of concreteproposals put forward for funding by theinternational community or by the Ministriesinvolved in implementing the Transport sectorstrategies. A Transport Sector Inter-MinisterialWorking Group has been formed to coordinatethe work of the ministries in the sector to assurethat projects are properly designed to obtainthe highest returns and greatest impact on49 More detailed information on road construction projects can befound in the Transportation Sector Strategy and in the94Afghanistan National Development Strategy (ANDS)

the poverty reduction goals. Careful considerationwill be given to increasing employmentopportunities, and assuring that the local resourcesor funds channeled through localcommunities are effectively used to maintainthe rural roads established as part of this strategy.The main programs of the strategy are (i)Regional, National Highways and ProvincialRoads (ii) Rural Road (iii) Urban Transport (iv)Civil Aviation (v) Transport Sector Maintenance(vi) Pubic Transport (vii) Railway Program.(For further details refer to ANDS VolumeII.)In addition to the above work on the roadtransportation system, there are many areasthat need to be addressed to both increase returnsfrom an improved network but also toimprove other aspects of the total transportationsystem. These include:• Transportation Services and Trade Facilitation:Improved transportation services,customs, and logistics management willrequire new investment and coordinatedmultilateral efforts, including work withthe Economic Cooperation Trade Agreement(ECOTA), the Central Asian RegionEconomic Cooperation (CAREC), and theShanghai Cooperation Organization. TheGovernment will undertake feasibilitystudies to assess the economic viability ofrailway development within Afghanistanand links with neighboring countries.• Air transport links: The Government giveshigh priority to the development of a newairport in Kabul. In addition, the Governmentwill implement programs to ensurethat the principal airports and the civilaviation authorities conform to the requirementsof the ICAO and IATA, includingestablishing a new Civil Aviation Authorityto promote air transport in a competitiveenvironment. A regulatoryframework will be introduced to encourageprivate investment under an ‘open skies’policy.• Regional Transportation and Transit: Regionaltransportation investments will becoordinated by the Inter-ministerial WorkingGroup for Transport to assure that investmentsare designed in such a way as tobest serve the development goals of Afghanistan.Relevant investments includethe rail links that will be constructed underthe agreement for developing the Aynakcopper fields in Logar province and the energytransmission lines developed undertransit arrangements.• Urban Road Networks: Under the urbansector strategy, much greater authority andresponsibility is being given to municipalities.The development of the national andregional road networks will be coordinatedwith municipal authorities with responsibilitiesfor the urban road networks. Municipaltransportation management will bestrengthened to improve urban road quality,road network maintenance, road networkplanning, and transportation facilitiesand services.Railways: The Government will pursuethe Afghanistan Railway Project which willinclude 1,824 km rail links to connect Kabul,in the East with Islam Qala in the Westthrough Kandahar and Hirat. The Governmentwill also undertake feasibilitystudies to assess the economic viability ofrailway links with neighboring countries.Aviation: The Government will seek investmentin a new international airport inthe Kabul area to provide Afghanistan witha modern international airport and implementprograms to ensure that the principalairports and the civil aviation authoritiesconform to the requirements of the ICAOand IATA, including establishing a newCivil Aviation Authority to promote airtransport in a competitive environment. Aregulatory framework will be introduced toencourage private sector investment underan ‘open skies’ policy.• Interaction with vulnerable groups: Usean integrated participatory regional developmentapproach in rural areas, combiningimproved roads with agriculture, water,education, health, and counter-narcoticsinitiatives so that the poor derive the benefitfrom roads. Undertake transport developmentthrough investments in secondaryand rural roads to significantly increaseprovincial and village access to the nationalroad system.Economical and Social Development 95

Expected OutcomesThe key expected outcomes of the transportsector strategy are:• An efficient and safe road transportationsystem, through:oooimproved connectivity throughout Afghanistan;lower road user costs;improved business environment forprivate sector development, creatingjobs and reducing poverty;o lower accident and fatality rates,measured by personal injuries per millionvehicle kilometers; andoreduced journey times due to congestion.• A viable civil aviation sector that providesefficient access to the country and region:ooooincreased domestic and internationalpassengers and freight traffic;improved stakeholder information onthe viability of air transport systems;improved governance within the civilaviation sector; andoverall improvement in urban air qualityfrom reduced congestion, better fuelquality and improved fuel efficiency.(For more detailed information refer toAppendixes 3, National Action Planand 4, Monitoring Matrix.) Informationand Communication TechnologyINFORMATION ANDCOMMUNICATIONSTECHNOLOGYRole of the sector in ANDSThe ANDS strategic vision and goal for the Informationand Communication Technology(ICT) sector is to make affordable communicationservices available in every district and villageof Afghanistan through an improved enablingenvironment for private sector investment.ICT will contribute to the Government’sefforts for a broad-based reconstruction effort.A modern telecommunications sector, incorporatinge-government initiatives will enhancethe effectiveness, efficiency and transparency ofthe public sector and the provision of socialservices. All Afghans, men and women alike,will in time be able to access ICT to access informationand social services, foster the rebuildingprocess, increase employment, createa vibrant private sector, reduce poverty andsupport underprivileged groups.ICT provides an opportunity to bridge thecommunications gap that exists within thecountry. Women in particular face movementrestrictions due to security concerns and localtraditions. To establish greater national unity,it is important that all 365 districts, major villagesand rural areas should be able to communicatewith Kabul, with each other, andwith the rest of the world. ICT is a basic enablerof informal social and economic discoursenecessary in the strengthening of civil societyand the promotion of economic activity (e.g.access to markets and pricing). Despite its importance,there are no explicit AC benchmarksor MDG goals for this sector. The ICT SectorStrategy will achieve the following targets establishedin the I-ANDS: By end-2010, a nationaltelecommunications network to be put inplace so that more than 80 percent of Afghanswill have access to affordable telecommunications;and more than $100 million dollars peryear will be generated in public revenues.Current situation in the sectorIn early 2003, Afghanistan had fewer than15,000 functioning telephone lines – a telephonepenetration rate of 0.06 percent, amongthe lowest in the world. In addition to a shortageof basic telephone switching capacity, thelocal transmission network delivering last mileservices, presented an even more difficult bottleneck.The cabling conduit, trunk cables andcopper wires were old or completely destroyed.Afghanistan did not have a functioninglong distance network to provide nationalor international connectivity. The absence oftransmission and switching facilities meant thatcitizens could only complete calls within theirown cities and were unable to reach any otherparts of the country or the outside world.The Government adopted major policy reformsfor the ICT sector in October 2002, which wasimmediately posted to one of the first governmentwebsites. This initial broad policy statementwas further refined and divided into two96Afghanistan National Development Strategy (ANDS)

separate policies – one for basic telecom infrastructureand regulatory principles, and a secondfor ICT applications and a vision for theInformation Society. These policies have remainedthe basis for the reforms over the lastfive years. The basic principles have beengiven a statutory basis, in the form of the TelecomLaw that was promulgated in December2005. The telecom infrastructure aspects arebeing implemented by ATRA, which was establishedin June 2006. The ICT applicationsaspects are being implemented via the ICTCouncil, which was established in May 2007.The transparent approach taken to the adoptionof the policies and the consistency of thevision from design to implementation has producedrapid results. The fact that most of theexisting infrastructure was either antiquated orbroken meant that the industry was free to essentiallystart again with a clean slate. In 2003,the obvious choice for personal communicationswas wireless. Accepted global standardsmeant that the equipment was reliable, cheapand could be deployed rapidly. In July 2003,two nationwide mobile (GSM) networks beganoperation, following an international competitivetender. The licenses required commercialservice to be offered in Kabul within sixmonths of the effective date, with nationwideservice within 18 months. Pursuant to theoriginal Telecom Policy, these first two licensesalso were provided a legal duopoly for threeyears. In October 2005 and May 2006, two additionalnationwide mobile (GSM) licenseswere awarded, with identical terms and conditions.There was immediate strong demand formobile services, with over 5 million Afghansnow having access.The 2003 ICT sector strategy has been the referencetemplate for subsequent reform policies,procedures and activities. The Telecom Lawwas promulgated by President Karzai on 18thDecember 2005. The law is compliant with theWorld Trade Organization Basic TelecomAgreement framework requirements in that itseparates the three basic functions and assignsresponsibilities to three independent sectorelements, as follows (i) Policy – MoCIT; (ii)regulation – ATRA; and (iii) operations – LicensedService Providers. The Telecom Lawhas led to the establishment of the independentsector regulator, ATRA. The legal authority ofATRA rests with its five member board appointedby the President.Figure 7.2. Growth in phone useY 1381 Y 1382 Y 1383 Y 1384 Y 1385 Y 1386Despite the considerable progress in expandingthe use of mobile phones, much more needs tobe done to take advantage of the telecommunicationsrevolution in both the private and publicsectors. Impediments to the growth of ICTsector include:• Lack of Security represents an impedimentto construction and maintenance of ICT infrastructurein remote areas. Lack of clearproperty rights adds to construction times.• Government bureaucracy (length of timefor simple decisions) adds time and costs todevelopment and operation of the system.• Lack of electricity and high cost of dieselfuel for generators raises construction andmaintenance costs.Economical and Social Development 97

• The high level of illiteracy reduces the immediateimpact of many internet applications,especially limiting the access ofwomen to internet services.• The numbers and skills within ICT workforce is a constraint to the adoption andpromotion of ICT.• The limited awareness and acceptance ofICT within Government leadershipPolicy framework: sector strategyThe immediate goal of the sector is to increaseaccess to telecom services to cover 80 percent ofthe country. Most populated areas will be coveredby 2010. A key component of this effortwill be the completion of the Fibre Optic Cableand Copper Cable Network, allowing an expansionof high-speed data services and extendingmobile phone coverage. The privatesectoris expected to make additional majorinvestments in the telecommunication sector.With the establishment of a national data centerby end of 2008, and implementation of e-Government, e-Commerce, e-Health (telemedicine)towards the end of 2010 Afghan citizenswill be able to more fully participate in the informationage. For the next five years, MoCITpolicies, working through ATRA will also deploysatellite-based services to the less populatedareas where personal mobile facilities aretoo costly. The current program is to reach atleast 3,000 villages by 2010. Plans are also underwayto issue new licenses for the provisionof fixed wireless access for broadband internet.There will be a $100 million revenue contributionto Government revenue by 2010. The ICTsector is already the most heavily taxed, primarilybecause it is comprised of the largestformal enterprises in the country. A majorstudy is currently being prepared that will provideguidance to the ICT Council, and the Governmenton improving governance and increasingpublic sector capacity for the industry.The key programs of the ICT sector are (i) EnablingEnvironment (ii) Infrastructure Development(iii) E-Afghanistan (iv) ICT Literacy. Fordetail refer to volume II. In addition to the investmentin the cable network, the policy priorityfor the Government is the passage and implementationof ICT legislation that will createan appropriate environment for further growthand development. MoCIT has commenceddrafting the ICT Law, which will address infrastructureand services, including issues such aslegal recognition of electronic/digital signaturesand formation of electronic contracts (affectingtransactions both in public and privatesectors), content regulation, competition regulation,electronic evidence, data privacy protection,consumer protection and rights, domainname registration and regulation, intellectualproperty rights, encryption and security, financialand banking sector law and regulation relatingto electronic transfers and settlements,taxation of transfers, customs, jurisdiction, disputeresolution and civil and criminal offences,limitations of liability of internet service providers,cyber piracy and digital rights management,facilitation of e-government and crossborder interoperability of e-commerce frameworksaffecting trade.The sector priority policy is passage and implementationof ICT legislation that will createan appropriate environment for further development.MoCIT has commenced drafting theICT Law. The telecom law addresses the telecominfrastructure and services, but the lawdoesn’t cover the content of the services. TheICT law will address issues such as legal recognitionof electronic/digital signatures andformation of electronic contracts (affectingtransactions both in public and private sectors),content regulation, competition regulation,electronic evidence, data privacy protection,consumer protection and rights, domain nameregistration and regulation, intellectual propertyrights, encryption and security, financialand banking sector law and regulation relatingto electronic transfers and settlements, taxationof transfers, customs, jurisdiction, dispute resolutionand civil and criminal offences, limitationsof liability of internet service providers,cyber piracy and digital rights management,facilitation of e-government and cross borderinteroperability of e-commerce frameworksaffecting trade.The ICT Council, through the MoCIT, willwork to achieve the following:• By end-2008, actions designed to promotetransparency and citizen access to publicinformation will be implemented. This willinclude adopting Rules and Procedures torequire all Government institutions to publishdocuments on their official websites (asa supplement to the Official Gazette). Ac-98Afghanistan National Development Strategy (ANDS)

tions designed to promote Government efficiency,reduce costly waste and ensure informationsystem inter-operability will beimplemented. This will involve adopting afull set of Rules and Procedures that willgovern the competitive procurement andutilization of ICT by all Government institutions.An e-Government resource centerwill be established for the design and implementationof projects. MoCIT will promoteprivate investment for Afghan Telecomto reduce the financial burden on theGovernment, and adopt the legal instrumentsfor private investment in the sector.Afghan Post offices will be modernized usingICT to ensure reliable collection anddistribution of mail. The infrastructure ofmobile networks will be adapted to enablemobile commerce, meaning the use ofphones to transfer funds and conduct otherfinancial transactions (pay utility bills andtaxes, make retail purchases). MoCIT willsubmit draft ICT legislation governing e-transactions, electronic commerce, electronicsignatures and cyber crimes to theNational Assembly. The Afghanistan NationalData Center will be ready to host thee-government applications.• A unified curriculum and regulatoryframework for private ICT training centerswill be drafted in cooperation with Ministryof Education. MoCIT will have establishedan IT Training center in all provincialcapitals where security permits.• By end-2009, further efforts will be made toreduce corruption by reviewing all Governmentservices and making recommendationsfor the adoption of ICT to streamlineand automate (for example, customsprocessing, procurement and licensing).• An ICT Village will be established in Kabul,this facility will attract foreign and localinvestments in ICT. Efforts will bemade to ensure that all schools have accessto internet and multimedia resources, togetherwith a basic curriculum that includesbrowsing, searching and messaging.• By end-2010, the ICT sector will contributefive billion Afs ($100 million) annually tothe treasury by broadening the tax base (attractingadditional investors to the market,rather than over-burdening the existingones). ATRA will foster a transparent legal-regulatoryregime that attracts a further37.5 billion Afs ($750 million) in private investment,and adds 50,000 jobs.• National ICT networks will be expandedand interconnected so that at least 80 percentof Afghans will have access to affordabletelecom services.• By end-2018, all pupils should be digitallyliterate by the time they leave school. Digitalliteracy will be adopted as one of thebasic skills of all young Afghans.The ICT sector strategy incorporates feedback,proposed projects and comments from the SubNational Consultations. The ministry activelyutilized its video conferencing capabilities toreach out to all 34 provincial capitals and manyof the 240 district capitals that are presentlyserved by the District Communications Network(DCN) infrastructure. MoCIT has alsoworked with National Assembly to reach allcommunities. The Ministry has furthermoreconducted planning sessions by bringing togetherrepresentatives from all 34 provinces forworkshops in Kabul. ATRA is in the process ofinstituting greater responsiveness to the needsof remote communities, by making availablefinancial support from the Telecom DevelopmentFund (TDF) upon request from communityleaders.Policy framework: key initiatives andissuesThe MoCIT is responsible for providing theinstitutional leadership for the ICT sector. Ithas the primary responsibility for developingpolicy and supervises the implementation of anumber of key ICT projects, such as the NationalData Center, the Optical Fiber Cable andthe Copper Cable Network projects.Afghan Telecom is presently a corporation thatis 100 percent owned by MoCIT however it isbeing privatized (an 80 percent share is to besold), reflecting the Government’s 2003 Telecomand Internet Policy. This will lead to thefurther expansion of the mobile phone network.The Ministry’s Information CommunicationTechnology Institute (ICTI) provides specializedtechnical training and certification haslaunched a four year ICT bachelors program(the first class of 50 students have recentlycommenced studies). Since 2003, it is also inEconomical and Social Development 99

the process of considering a transformation topublic-private partnership in order to ensurethat its curriculum meets the needs of the privatesector (which has a huge demand forproperly skilled workers).The ICT Council is the primary forum for allstakeholders in the ICT sector. It consists of allof government institutions that have ICT activitiesand is open to all other institutions as theyacquire ICT infrastructure and applications.The ICT Council is chaired by the First VicePresident and its total membership is fully inclusiveof all interested parties, including theprivate sector, civil society organizations, andacademia. The National Assembly has becomean important institutional player in the ICTsector, both in terms of policy and utilization.The role of the private sector is central to thisstrategy. A modern telecommunications sector,incorporating e-government initiatives whereverpossible, will enhance the effectivenessand efficiency of the public sector. By mobilizingresources to build up the ICT sector withinthe public sector institutions, MoCIT will alsobe accelerating the development of ICT supportcapabilities of the private sector in Afghanistan,both through contracts and via participation inthe policy processes of the ICT Council.The ICT sector is Afghanistan’s biggest successstory in terms of attracting private sector investment,$925 million as of the end of 2007.This is expected to reach $1.5 billion by end2010. According to numerous studies this is byfar the largest investment in the licit economy.Expected outcomesThe key expected outcomes in the Informationand Communications Technology sector are;• Improved Enabling Environment• Improved Infrastructure with Fiber Opticand Copper.• E-Afghanistan created• ICT Literacy improvedIt is expected there will be wide communityacceptance of ICT facilities. Access to facilitieswill be expanded. Government administrationwill be predictable and unbiased, in accordwith all legislation. The role of the private sectorwill be increased. ICT access will be generallyavailable in education institutions, includingmany primary and secondary schools. Fordetail information regarding outcomes refer toaction plan and M&E matrices. For detail informationrefer to Appendixes 3-National ActionPlan and 4-Monitoring Matrix.URBAN DEVELOPMENTRole of the sector in ANDS:The ANDS strategic vision and goal for urbandevelopment sector is to ensure increased accessto improved services, and affordable shelterwhile promoting sustainable economic developmentas part of efforts to reduce urbanpoverty through encouragement of private investment.The urban areas in the country willbecome hubs for economic growth with all basicinfrastructure and services. The managementof urban areas will be improved throughthe devolution of authority and responsibilityto municipalities in ways that improve urbaninfrastructure and services, reduce urban povertyand allow urban residents to live safe,healthy and productive lives and cities to growand prosper. Effective management of therapid urbanization process will make a significantcontribution to the recovery of the country.Cities contribute to economic growththrough their high productivity as a result ofeconomies of scale and agglomeration, and byproviding opportunities for the accumulationof capital, investment, trade and production.Urban investments create employment opportunitiesand urban jobs account for a disproportionateshare of GDP. Urban growth canstimulate rural development through increasedemand for food, markets for rural products,off-season employment for farmers, and remittancesand provide opportunities to movegoods and services in the region. However,cities are often linked to increased violence,crime and insecurity. Improving the urbanenvironment, the supply of urban services,providing employment opportunities, utilizingthe potential resources and improving the livelihoodsof the population will lead to improvementsin security.The importance of effective management of theurban development process has been recognizedin the Afghanistan Compact benchmarks:100Afghanistan National Development Strategy (ANDS)

• Urban Development: By the end of 2010;Municipal Governments will havestrengthened capacity to manage urbandevelopment and to ensure that municipalservices are delivered effectively, efficientlyand transparently; in line with MDG investmentsin water supply and sanitationwill have ensured that 50 percent of householdsin Kabul and 30 percent of householdsin other major urban areas will haveaccess to piped water.• Energy: By end-2010: electricity will reachat least 65 percent of households and 90percent of non-residential establishmentsin major urban areas, at least 75 percent ofthe costs will be recovered from users connectedto the national power grid.The Millennium Development Goals most relevantto the urban sector development include:• Goal 7: By 2020 halve the proportion withoutaccess to safe drinking water and sanitation.Significantly improve the lives of allslum-dwellers by 2020. Sustainable developmentto reverse the loss of environmentalresourcesCurrent situation in the sectorAchievements: While investments in the urbansector continue to lag far behind actual needsacross the country, there have been someachievements. The most important are as follows:• Water supply and sanitation: 2 million urbanresidents (31 percent of the total urbanpopulation) have benefited from investmentsin water supply and 12 percent frominvestment in sanitation in major cities between2002 and 2007.• Up to 1.4 million people (20 percent of urbanpopulation) have benefited from rehabilitationof public works, with 250,000 (4percent) benefiting from upgrading programs• In addition to legislative reforms, a pilotland tenure security project is underway inKabul• The Dehsabz City Development Authorityhas been established to facilitate the developmentof new city housing for up to 3 millionpeople north of Kabul. Additionally,new small settlements (satellite townships)have been planned for 1 million people.• Regional and city planning: strategic developmentplans are being prepared for 7regional cities, while a city developmentplan for three major cities (Mazar, Jalalalabad,Kabul) and existing-Kabul plan isdue for completion by mid 2008.• Urban policy: initiatives include a comprehensiveNational Urban Program (NUP), adraft National Land Policy was submittedin 2007 for approval to the Ministry of Justice.And a draft of national building codesfor construction has been developed.• Institutional reforms within MoUD, KM &IDLG (established in 2007) continue, alongwith investments in strengthening institutionalcapacity.• Almost 5 percent of vulnerable families hasbeen provided improved shelter in majorcities. Private sector so far has made littlecontribution to the development of housingsector.• Three conservation initiatives are underway in historic quarters of Kabul, Heratand Tashqurghan.• The Afghan Urban Water Supply and SanitationCorporation has been established asa quasi independent public entity.As of 2005 nearly a quarter of Afghanistan’spopulation lived in urban areas. By 2015 it isestimated that almost a third of Afghans will beliving in urban areas. Current needs include:• Urban Poverty: In 2002, one fifth of the urbanpopulation was living below the povertyline. The NRVA (2005) study foundthat 28 percent of urban households perceivethemselves to be food insecure, 31percent fall below the minimum level ofdietary energy consumption, 45 percentborrow money to purchase food, and 48percent sometimes have problems satisfyingtheir food needs. It is estimated that4.95 million people inhabited informal settlementsin 2006, suggesting that 68.5 percentof the urban population is living withoutsecurity of tenure.• Water and Sanitary Conditions: In 2005,about 20-22 percent of urban householdshad access to safe drinking water, althoughEconomical and Social Development 101

the percentage varies significantly betweenurban areas. The country’s total sanitationcoverage is only 8 percent, (16 percent urbanand 5 percent rural as of 2002). Fewplaces in the world face such scarce andalarming water supply and sanitation coveragelevels. The percentage of urbanhouseholds using: (i) traditional covered latrinesand (ii) improved latrines, and (iii)flush toilets are about 67 percent and 15percent, and 9 percent, respectively. InKabul city, 14 percent use a flush latrine, 2percent are covered by a sewerage system.• Roads: About 61 percent of urban dwellersaccess homes through unpaved roads andabout 25 percent through footpaths, includingin Kabul.There are a number of challenges and constraintsfacing the Sector:• Low coverage of basic services and inadequatepublic resources to meet growingneeds• A rapid pace of urbanization partly due toreturning refugees and rural-urban migrants,leading to high population density• Widespread urban poverty and limitedaccess to productive employment• A high proportion of informal settlementsand associated problems• Lack of capacity and coordination amongurban sector institutions• Limited scale of private sector investmentin urban enterprises, facilities or services• Lack of accurate data on which to basecritical policy decisions• Land security and titling: Absence ofproper land registration system, Landgrabbing, inadequate legal instruments andinstitutions• Lack of available financial funds due tolimited interest of donors in the urban sector.The Urban Sector Strategy incorporates feedback,proposed projects and comments fromthe Sub National Consultations (SNCs) and is aresponse to the people’s needs and developmentgoals. Key urban infrastructure needsemerged from City Development Pland (CDPs)and PDPs-related consultations as well as CAP(City Action Plans based on the city profilesreport) have been integrated into the strategy,reflecting the range of sub-national developmentneedsKey components of the urban sectorstrategyThe objective is to ensure increased access toimproved basic infrastructure and services, andaffordable shelter while promoting sustainableeconomic growth. The key to the urban sectordevelopment strategy is a national urban policythat decentralizes decision making to the locallevel, encourages participatory processes basedon urban community councils or otherneighborhood organizations, adopts a marketbased approach that encourages private sectoractivity and that establishes a regulatoryframework focused narrowly on environmentalprotection and the rationalization of land use.The main programs of the sector strategy are (i)Urban Governance, Finance and Management(ii) Land Development & Housing (iii) UrbanInfrastructure & Services (for details of programrefer to volume II).Urban Governance: The Ministry and Municipalitieswill be restructured and jointlywork to prepare city action strategies and structureplans for Kabul and the 34 major urbanareas, with special attention to local area plansfor selected, fast growing areas, strengthen urbanand municipal governance, finance andmanagement. This involves establishing anenabling environment where stakeholders participatein municipal elections and residentscan have a say in policy formulation and thedesign of implementation activities. This willbe done through democratically elected CommunityDevelopment Councils (CDC) at theneighborhood level, comprising clusters ofhouseholds, and Area Development Councils(ADC) at the sub-urban district level.Finance and Management: Steps will betaken to increase revenue generation capacityand improve management by upgrading accountingand budgetary practices and linkingthe capital budget to the planning process. Reviewexisting revenue base and assets and developaction plans for revenue improvementplans to include widening revenue base, improvedcollection rates, user charges, co-102Afghanistan National Development Strategy (ANDS)

financing or co-production with users, propertyor sales taxes, intergovernmental transfers,municipal borrowing, mobilization of localgovernment resources through loan guarantees.Develop mechanisms to increase localrevenues to finance part of the costs of improvedurban service. Promote public partnershipswith the private sector and NGOs tomore efficiently provide urban services or meeturban needs. The draft Public Finance and ExpenditureManagement Law will be enacted.Urban Development and Land Management:The Government will prepare a nationalspatial development plan. The plan will provide(i) a framework for balanced urbanization,urban-rural links, and greater regional coherence;(ii) a town planning policy, processes,laws, standards, and guidelines as well as developmentregulations; (iii) effective land managementand information systems and a nationalsettlements plan will be put in place; (iv)improve tenure security gradually through improvinginfrastructure and services; (v) clarifyproperty rights, providing temporary certificates,addressing environmental and planningconcerns; (vi) land management laws will bepassed with the objective of preventing unlawfuloccupation of government and private landfor economic (and political) gains; facilitatingland registration and adjudication; and enablinggovernment acquisition of private landfor public purposes; (vii) improve land managementthrough steps to register land titles;(viii) develop a system for settlement of landdisputes; (ix) develop a computerized (GIS)land management system; (x) cadastral surveysand reconciliation of cadastre with actual conditions;(xi) linkage of cadastre to a municipalproperty tax system and with the land registrationdata; (xii) linkage to a planning and developmentcontrol system; (xiii) create new servicedand un-serviced land in connection withnew urban plans that identify real demand forserviced land at specific locations within individualtowns and cities and in all urban areas.Standards of servicing will be based on affordabilityof target groups. Priority will begiven to sites and service schemes, an approachthat has proven effective in many countries.The strengths of these schemes are that theycan: cater to various household affordabilitylevels and needs through various planning,servicing and technical standards; provide basicinfrastructure and services relatively efficiently;permit progressive developmentthrough provision of a sanitary core (known asan “embryo” housing unit). Sectoral agencieswill consider other options for providing developableland including: land-sharing, landreadjustment, land pooling, and infill development.Land security will be improved through mappingand land surveying of communities, tenureformalization, and land registration. If informalsettlements are recognized and providedwith tenure security, they are more willingto invest their own financial and other resourcesin improving the community and theirhouses. Moreover, they can use the title as collateral.Security of tenure may include formaland informal arrangements, from full land titleto customary rights. Although the tenure legalizationapproach is popular, it is also possibleto regularize without any policy interventionto legalize tenure. The regularizationstrategy focuses on physical interventions, suchas infrastructure, amenities provision, andhealth and education services.The Government, through the Dehsabz CityDevelopment Authority, will continue to examinethe potential for the development of a newcity on the Dehsabz plain north of the existingKabul City. As part of the Dehsabz project, theBarikab area located to the north of the newcity will become a private commercial agriculturalzone designed to not only supply many ofthe needs of Dehsabz, but to become a centerfor the cultivation of exportable agriculturalproducts. The development of this urban centerwill be undertaken primarily by the privatesector. The extent of the Government’s directrole will generally be limited to planning, investmentin some of the basic urban infrastructureand facilitating private commercial investment.This project will be largely financiallyself-sustainable and become a center fornew investment in private agro-based and serviceindustries. Most of the land in Dehsabzbelongs to the Government hence, the sale andlease of land will generate revenues needed forinvestment in the new city and for the pressingreconstruction and infrastructure developmentneeds of Kabul.Housing: New housing will be produced andimproved through: (i) public sector housingproduction (ii) support to informal and smallEconomical and Social Development 103

scale housing producers – the ‘peoples housingprocess’; (iii) support to research and developmentof appropriate building materials andtechnologies; (iv) upgrading the skills of contractorsand laborers; (v) supporting entrepreneursto upgrade or set up building componentsmanufacturing units; (vi) support to privatesector production, particularly of rentalhousing.Housing programs will consider the particularneeds of various groups such as civil servants,returnees, Kuchis, IDPs, widows and othervulnerable groups. Housing finance will beprovide – for purchase, rehabilitation, and constructionof new housing – through: integratinghousing finance; stimulating private banks toincrease mortgage lending to low-incomehouseholds, through, for example, mortgageguarantees; initiating community mortgageschemes; lowering mortgage interest rates; reducingcollateral and down payment requirements;introducing flexible repaymentschemes. This will enhance purchasing powerof urban inhabitants and attract private investmentin housing programs. This will leadto a system of affordable land and housing andassured cost recovery for the investors.Housing subsidy programs will be providedfor very low income households, includingboth owners and renters. The following optionswill be examined: direct loans to purchasean existing or construct a new house; governmentguarantees of loans made by private sectorlenders, thus enabling households to purchasehouses without a down payment; mutualself-help housing programs which makeshomes affordable to groups of households byvaluing to work, or "sweat equity", by eachhomeowner; portable rent subsidies that giveeligible households a choice about where tolive, including market rate rentals subsidiesdirectly to the property owner who then appliesthe subsidies to the rents that are chargedto low-income tenants.Urban Infrastructure and Services: A concertedeffort will be made to improve infrastructureincluding roads, footpaths, stormdrainage, water supply, electricity, street lights,sanitation, and solid waste collection. Socialinfrastructure will be improved, includingopen space, children’s’ parks, community andhealth centers, schools, and markets. Supportwill be provided to house construction and rehabilitation,but only in line with an approvedplan and with careful consideration given tolevels of cost recovery. Steps will be taken torehabilitate and extend water supply and sanitationservices, giving priority to rehabilitatingexisting areas to an adequate level of servicebefore extending service to new areas. Extensionsto new areas will be done in connectionwith an approved plan for new settlement development.Improve solid waste managementthrough waste minimization (reduce, reuse,and recycle) and improved collection, transportand transfer, and disposal alternatives. Considerationwill be given to privatization, communitymanagement, affordability and costrecovery. Improve urban transportation managementthrough improvements to circulationand road networks, transportation facilities andservices by function, type, capacity, and condition,bus system, bicycles and pedestrians,transportation demand management includingon- and off-street parking system management.The most significant heritage areas will beidentified and a detailed inventory of heritageassets will be undertaken. This will be done incoordination with NGOs already working onthe preservation of heritage areas. Conservationplans for each heritage area (rehabilitationand preservation) will be developed and implementedthrough efforts to raise publicawareness, economic incentives to privateowners, tourism development, legal protection,public investment, and outreach to internationalbodies.Key steps to improve and monitor progresswith urban development will include the identificationof indicators on which strategic, tactical,and operational decisions will be based; theestablishment of GIS and databases to manageinformation; and the improvement of analyticalroutines and creation of the creation of webbasedinformation systems. The priority focuswill be on the establishment of land informationand registration systems in municipalities.Expected OutcomesThe following outcomes are expected to beachieved in this Urban Sector Strategy in comingfive years:104Afghanistan National Development Strategy (ANDS)

• Strengthened municipal capacity to manageurban development and deliver services.• Improved institutional coordination andmonitoring of key urban indicators• Increased access to basic services for urbanhouseholds50:ooKabul: 50 percent of households withpiped water, sanitation, drainage andwaste collection; 30 percent coveragefor programs of hygiene promotion30 provincial towns/cities: 30 percentof households with piped water, sanitation,drainage and waste collection;10 percent coverage of hygiene promotionprograms.• Phased regularization of tenure for 50 percentof households in informal settlements,in parallel with upgrading of public servicesand facilities, as well as new urbanarea development.• Increased availability of affordable shelter,with 50 percent increase in numbers ofhousing units and 30 percent increase inarea of serviced land on the market, coupledwith access to affordable finance.• Improved urban environment with greenareas and open spaces.For detail information, refer to Appendix 3-National Action Plan and 4-Monitoring Matrix.MININGRole of the sector in ANDSThe ANDS strategic vision and goal of the miningsector is to establish Afghanistan as an at-tractive destination for investment in survey,exploration and development of mineral resources.The intention is to encourage legitimateprivate investment in the sector so as tosubstantially increase government revenues,improve employment opportunities and fosterancillary development centered on mining activity.Implementation of the strategy will helpto develop effective market-based economicpolicies, promote and regulate sustainable developmentof minerals and ensure that the nation’sgeological resources are progressivelyinvestigated and properly documented. Thisstrategy supports large and small scale miningfor immediate and sustainable economic gains.For mining and minerals, the emphasis is onthe exploration, extraction and delivery tomarket; for hydrocarbons the emphasis is explorationand exploitation.Experience during the period 1987 to 2000 hasdemonstrated that if governments address issuessuch as: up-dating the mineral policy andstrategy; amending the mining legislation (particularlyin respect of mining rights); up-datingthe mining taxation regime; reinforcing governmentsupervisory institutions; buildinggreater capacity (including good governance)within institutions; and developing a reliableand comprehensive scientific database; thecountry can attract significant amounts of investmentin this sector. Employment and benefitsfrom opportunities for skill improvementwill be substantial. Most mining related activityis expected to occur in isolated areas whereunemployment is high. In addition, the largecontribution that the mining sector will maketo government revenues will increase the availabilityof social services, such as education andhealth services, which will contribute to increasedsecurity and stability.50 Note, these targets are also identified in the Water Sector Strategy.Table 7.3. Mining sector reform and its effect on economic growthExploration (US$m) Production (US$m) Exports (US$m)CountryBefore After Before After Before AfterReform Reform Reform Reform Reform ReformArgentina

The Afghanistan Compact Benchmark calls foran enabling regulatory environment for profitableextraction of Afghanistan's mineral andnatural resources to be created and for the investmentenvironment and infrastructure to beenhanced so as to attract significant domesticand foreign direct investment by end 2010.Current SituationWhile geological studies of Afghanistan havebeen conducted over the last 50 years, 90 percentof the territory of Afghanistan has notbeen systematically studied despite highlypromising findings. A geological map of Afghanistanhas been prepared and over 400mineral deposits have been identified includingcopper, coal and a number of small andmedium deposits including gold, silver, platinum,zinc, nickel, emerald, lapis, ruby, kuznite,tourmaline, fluorite, chromite, salt, radioactiveelements and numerous deposits suitable forconstruction materials.The availability of oil and gas fields in Afghanistanhas been well known for almost 50years. Russian equipment was used to explorethe first fields. Subsequently, gas fields inYateem Taq, Khwaja Gogerdak, Khwaja Bolan,Zigdeli and Bayan of Ghor province as well asoutskirts of Sheberghan district of Jowzjanprovince have been identified. Afghan andRussian experts identified a total of 500 structuresof which 67 were extended with exploratoryapproaches. Known gas reserves have acapacity of 180 billion cubic meters and an exploitationcapacity of 120 billion cubic meters.Sar-e-pul oil reserves have been identified(44.5) million tons with the extractable reservesof 14.5 million metric tons. During the past fewyears, five oil and gas fields have been identified.More work has been carried out in thevicinity of Amu Darya, and Afghan-Tajik basins.The first major investment has recently beenannounced for developing the Aynak copperdeposits in central Logar province, an almost$3 billion investment. The selection of thecompany was made after an extensive evaluationof tenders from nine major internationalmining companies. There will be importantindirect benefits from this investment. Thecompany will establish a power station with400 mega watt capacity at a cost of over $400million and will construct a town for the workersof the company. The company will alsoestablish a railway route from Hairatan port innorthern Afghanistan to Torkham in easternAfghanistan. Ongoing and planned activitiesinclude the: (i) fertilizer and power plants atBalkh with capacity of 110,000 tons of urea eachyear, and 48 mega watt power per hour;(ii) Ghori cement factory with capacity of100,000 tons per year; (iii) Jabal Seraj cementfactory with maximum capacity of 30,000 tonsper year; and (iv) Herat cement factory andGhori 2 with capacity reaching 200,000 annually.In July 2005 a Minerals Law was approved bythe Government. In December 2005, a HydrocarbonsLaw was also approved. Regulationsare being drafted which may be finalized during2008.Some of the most immediate needs of the sectorare being addressed as part of a $30 millionproject supporting sustainable development ofnatural resources. The main purpose of thisproject is to assist the Ministry of Mines to improveits capacity to effectively transform thesector so that it is primarily operated by theprivate sector and contributes to sustainableeconomic growth through tax revenues, employment,rural development and economicspin-offs. The major institutional strengtheningobjective of the project will be to assistMoM to make the transition from a producer ofminerals and other commodities to a policymaking institution that will facilitate the operationof private firms within the industry. It willalso strengthen financial and budgetary proceduresin the ministry, assist with the internalgeological survey work being done, assist inidentifying unlicensed mining operations, andattempt to enforce improved and safer workmining work practices.The landlocked nature of Afghanistan and thecurrent lack of rail links represent a barrier tothe movement of large bulk commodities. Securitydifficulties limit mining in some areas,principally in the south. Roads, energy andwater are all lacking. The danger of unexplodedordnance makes mining difficult. Thereis a shortage of trained labor. Most of the stateownedmining enterprises are not operating ona commercial basis. The North Coal Enterprisehas been privatized and is operating successfullywhile Mineral Exploitation Enterprise andAfghan Gas are about to be privatized.106Afghanistan National Development Strategy (ANDS)

This Sector Strategy incorporates feedback andcomments from the Sub National Consultations(SNCs). A key finding was the lack of informationavailable to local communities on mineopportunities. There is also reflected a lack ofmarket-based thinking and considerable expectationfor the Government to provide sectorsupport. It should be noted that investments inthe mining sector are primarily commercialdecisions that should be taken by the privatesector. Projects identified and prioritized duringthe SNC process include the extraction ofmarbles, precious and semi precious stonemines in Anaba and Shotol districts of Panjshirprovince. The Ministry of Mines has beenidentified as the responsible agency for enablingthis development.Policy framework: sector strategyThe sector strategy is geared to supporting developmentthrough private firms engaged in amix of large and small operations. The privatesector will operate within a legislative andregulatory framework designed to facilitateinvestment and maintain a competitive sector.While there will be some public sector activity,these will be required to operate under thesame legislative and regulatory framework asthe private sector. The focus will be on usingGovernment projects or competitive biddingfor exploration contracts to better determinethe extent of natural resources in Afghanistan;on the establishment of an improved, transparentand capable management system for theeffective extraction of mines and natural resources;and the establishment of a regulatoryenvironment that facilitates local and internationalinvestment in the mining sector.The key reform will involve the refocusing ofthe Ministry of Mines from one involved inproduction to one that is primarily concernedwith the creation of an enabling environmentthat requires mining companies to operate effectivelyand responsibly in accordance withthe law. Mining legislation will be passed andimplemented. Planned actions include explorationand exploitation of mineral resources bythe private sector or MoM; capacity buildingprograms; successful implementation of theAynak project; development of long term geoscienceprojects; and a reconstruction programincluding equipping the laboratory and technicalsections of the ministry. Steps will also betaken to raise the production level of gas andincrease utilization of mineral and gas resources;encourage expansion of the cementindustry and increase power supplies by raisingthe production of mineral resources, oil, gasand underground water; and increase the productionof urea. The main programs of the sectorare (i) Implementing PRR (ii) Legislativeaffairs completion (iii) A comprehensive geologicalstudy follow- up program in the country(iv) Exploration and exploitation of mineralresources by private sector or geology surveyof MoM (v) Exploration, extraction and exploitationprogram of gas and oil fields in the countryby the government or private sector (vi)Capacity building (vii) Long term geo scienceresearch (viii) Reconstruction program, equippingof laboratory and technical section of theministry (for detail refer to ANDS Volume II).Priority Projects: Top priority projects, in orderof priority are:• completing and implementing the hydrocarbonsregulations by Ministry of Justice;• finalizing of Afghanistan gas law (downstream);• completing the second round of PRR in theMoM;• providing background information andinvite bidding for three blocks of oil andgas in the northern provinces aimed at explorationand exploitation.Expected outcomesGiven the known mining resources that areavailable, implementation of this strategy willlead to considerable investment in small andlarge projects. Mining will play a major role inachieving the high rates of economic growthenvisioned in the ANDS and increased governmentrevenues. Increased revenues will bederived from mining royalties, taxes and customsrevenues on largely private operations aswell as through licenses, permits and othertaxes charged as part of the bidding process.Mining projects will generate employment opportunitiesfor thousands of citizens, in remoteareas where alternative legal productive opportunitiesare few. Mining firms will increasinglyenter into the formal part of the economy.They will operate within a legislative frameworkthat is accepted and impartially administeredby MoM. Mining will bring with it accessEconomical and Social Development 107

to advanced technology that can be of benefitin many areas of the economy. There will alsobe major indirect benefits from mining, includingthe construction of roads, bridges, housings,health clinics, mosques, playgrounds,schools and parks (for detail information referto Appendixes 3-National Action Plan and 4-Monitoring Matrix).HEALTH AND NUTRITIONThe ANDS strategic objective for this sector isto improve the health and nutrition of the peopleof Afghanistan through quality health careservice provision and the promotion of healthylife styles. Afghanistan ranks towards the bottomon global measures of health and nutrition.Improving health and nutrition is vital to improvingthe livelihood and well being of theAfghan people and to achieving the goals ofthe MDGS and the Compact which include:• By end-2010 the Basic Package of HealthServices will be extended to cover at least90 percent of the population;• By end-2010 maternal mortality will be reduced;• By end-2010 full immunization coveragefor infants under-5 for vaccine-preventablediseases will be achieved and their mortalityrates reduced by 20 percent;• Between 2003 and 2015 reduce the underfivemortality rate by 50 percent, and furtherreduce it to one third of the 2003 levelby 2020;• Between 2002 and 2015 reduce the maternalmortality ratio by 50 percent, and furtherreduce it to 25 percent of the 2002 levelby 2020;• To have halted and begun the reverse thespread of HIV/AIDS by 2020;• To have halted by 2020 and begun to reversethe incidence of malaria and othermajor diseases.For more details refer to the Appendices I andII (National Action Plan and Monitoring Matrices).Current SituationAfghanistan’s health indicators are near thebottom of international indices, and are farworse, in terms of their health, than any othercountry in the region. Life expectancy is low,infant, under-five and maternal mortality isvery high, and there is an extremely highprevalence of chronic malnutrition and widespreadoccurrence of micronutrient deficiencydiseases. For more information refer to volumeII.Achievements: Substantial improvements inthe health system and the health status of thepeople of Afghanistan have been achieved inrecent years.• Expansion of primary health care services.The percentage of the population living indistricts where the Basic Package of HealthServices is being implemented has increasedfrom 9 percent in 2003 to 82 percentin 2006. The percentage of people inAfghanistan who live within two hourswalking distance from a primary healthcare facility was approximately 66 percentin 2006.• Increased access to female health careworkers. The percentage of primary healthcare facilities with at least one female doctor,nurse or midwife has increased from 26percent in 2004 to 81 percent in 2007.• Increased use of reproductive health servicesin rural areas. Between 2003 and2006, use of a modern family planningmethod among married women in ruralAfghanistan increased from 5 percent to 16percent, receipt of skilled antenatal care bypregnant women increased from 5 percentto 32 percent and use of skilled birth attendantsfor assistance with delivery increasedfrom 6 percent to 19 percent.• Increased coverage of child immunizationin rural areas. Between 2003 and 2006, coverageof BCG vaccine among children 12-23months of age to protect against tuberculosisincreased from 57 percent to 70 percentand receipt of three doses of oral poliovaaccine increased from 30 percent to 70percent.• The Afghan Compact High Level Benchmarkfor reduction of infant mortality hasbeen reached ahead of schedule. From a108Afghanistan National Development Strategy (ANDS)

high baseline level of 165 infant deaths per1000 live births, a 20 percent reduction ininfant mortality was targeted by 2010. Withthe infant mortality rate estimated by the2006 Afghanistan Health Survey to be 129per 1000 live births, a 22 percent reductionfrom the baseline level has already beenachieved.• The Afghan Compact High Level Benchmarkfor reduction of under-five mortalityhas been reached ahead of the schedule.From a high baseline level of 257 underfivedeaths per 1000 live births, a 20 percentreduction in under-five mortality was targetedby 2010. With the under-five mortalityrate estimated by the 2006 AfghanistanHealth Survey to be 191 per 1000 livebirths, a 26 percent reduction from thebaseline level has already been achieved.There are a number of challenges and constraintsthat must be addressed if continuedprogress is to be made, including:• Inadequate financing for many of thekey programs;• Reliance on external sources of funding;• Inadequately trained health workers;• Lack of qualified female health workers inrural areas;• Dispersed population, geographical barriersand a lack of transportation infrastructure• Low levels of utilization for certain healthservices, especially preventive services;• Variable levels of service quality;• Insecurity which makes program implementationdifficult, recruitment and retentionof staff, expansion of service coverageand monitoring by the provincial and centrallevels;• Lack of effective financial protectionmechanisms for poor households to receivethe care they need without experiencing financialdistress;• Lack of mechanisms for effective regulationof for-profit private sector clinics andpharmacies.Policy framework: sector strategyThe strategy is for the MoPH to maintain andstrengthen its stewardship role for the Healthand Nutrition Sector. For that purpose, a neworganizational chart and programmatic structurehave been defined, enabling a comprehensiveapproach to health service delivery, withprimary health care services, hospital services,disease control, nutrition and reproductive andchild health integrated under the same HealthCare Services Provision General Directorate.The overarching priority policy of the MoPHhas been to obtain nearly universal coverage ofa standard Basic Package of Health Services(BPHS) through a ‘contracting out’ initiative, tocreate strong linkages with the hospital sectorthrough an effective referral mechanism.However, the MoPH will also be responsiblefor creating an enabling environment for expansionof the Health Care System beyond theprovision of the BPHS.The MoPH will focus on the following policyareas:• Leadership at all levels in policy formulationand translating policies into concreteactions to ensure that actions are gearedtoward attaining the specified goals;• Conducting monitoring and evaluation ofthe implementation of health care servicesin order to ensure quality, equity and efficiencyof the health system;• Coordinating the contributions of all nationaland international agencies involvedin the Health and Nutrition Sector, upholdingstandards and mapping services toavoid duplication and gaps;• Decentralization of appropriate responsibilityand managerial autonomy to theprovincial level;• Increase the active participation of communitiesin the management of their localhealth care services through developingstrong, active participatory links withshura (community committees) and trainingand supporting community healthworkers;• Developing legislation and regulations tofacilitate growth and assure quality in theprivate sector provision or civil serviceprovision of health care services. For moreinformation refer to the Volume II.Economical and Social Development 109

The Government will give high priority to thefollowing projects in this sector for the next fiveyears:CDC and Non-CDC ProgramPrimary Health Care ProgramHospital Care ProgramReproductive Health and MCH ProgramPolicy and Planning Support ProgramHuman Resource Development andResearchPharmaceutical Management SupportProgramThe Health and Nutrition Strategy compriseseight core programs (Refer Appendix I) – fourrelated to the Health Care Services Programs(Primary Health Care Program; Hospital CareProgram; Disease Control and Nutrition Program;and RH and Child Health Program) andfour related to the Institutional Developmentprogram (Policy and Planning Support Program;HRD and Research Program; PharmaceuticalManagement Support Program; andAdministrative Program). In addition, the effortsto stimulate the development of ‘forprofit’ private sector provision of health careservices can be considered a third prioritycomponent of the Health and Nutrition Strategy.Health Care Services Programs: PrimaryHealth Care and Hospital Care Programs: TheMoPH will ensure the provision of a comprehensivereferral network of secondary and tertiaryhospitals that provide, as a minimum, theEssential Package of Hospital Services and doso within a framework of agreed upon, to setstandards to improve clinical and managerialperformance.Pharmaceutical Management SupportProgram: MoPH will also act to ensure theaccessibility, availability, safety, efficiency, effectivenessand affordability of medicines,through several means, including establishmentof a functional drug quality control laboratoryat the central level. Establish and usestandard international level procurement,stocking and logistics systems to enable internationalcontracting, bidding, stocking andtransportation. MoPH will also establish, maintainand further develop an affordable, usefuland functioning communications network usingmodern information and technology systemsat both national and provincial levels.Disease Control and Nutrition Program:MoPH will establish and maintain a surveillancesystem (Disease Early Warning System)to respond to epidemics and other risks to humanhealth as well as responding to healthemergencies in a timely manner. This will involveimplementing actions needed to bettercontrol communicable diseases throughstrengthened management of integrated, costeffectiveinterventions for prevention, controland treatment. The prevention and managementof outbreaks will also be strengthenedfurther through raising public awareness andresponding more rapidly through the DiseaseEarly Warning System. A key action will bethe development and institutionalization of aComprehensive Health Preparedness Plan atthe national and provincial levels and allocateappropriate resources for responding to naturaland man-made emergencies in an effective andtimely manner. This plan will set out the programsneeded to address key emerging publichealth problems, such as illicit drugs and theiruse, smoking, HIV/AIDS, blindness, and roadtraffic accidents.MoPH will also work to increase awarenessand understanding of potential adverse healthconsequences of environmental factors, such aspoor water supplies; lack of adequate sanitationfacilities; inadequate rubbish disposal andcollection; health facility waste; poor food handlingand hygiene; and high levels of air pollution.MoPH will also oversee programs to reducemalnutrition of all types, including reductionof micronutrient deficiency diseases,through integrated and coordinated programmingand promotion of food and nutrition securityfor all by adopting a public nutrition approachinvolving multi-sectoral interventionsthat address the underlying causes of malnutrition,including food insecurity, poor social environment,and inadequate access to healthcare services.This program will also develop a flexible rangeof integrated mental health support and careservices at all levels of the health system. Particularattention will be given to post-traumaticcounseling through the training of more communityhealth care workers and psychologistsand their placement in accessible communityhealth facilities; and ensure that people with110Afghanistan National Development Strategy (ANDS)

temporary or permanent disabilities have accessto both general health services and specializedservices, and detect and treat disabilitiesearly through more appropriate diagnosis ofnewborn and small children with disabilities.Reproductive and Child Health Program:High priority will be given to ensuring thatdevelopment partners deliver the differentcomponents of reproductive health as an integratedpackage, and increase accessibility to,and utilization of, quality reproductive healthcare services, including antenatal care, intrapartumcare, routine and emergency obstetriccare and post partum care, counseling andmodern family planning services. This willfocus on reducing child mortality, morbidityand disabilities and improve child growth anddevelopment by promoting exclusive breastfeeding, expanding implementation of integratedmanagement of childhood illnesses, enhancingthe control of vaccine preventable diseasesand addressing adolescent healththrough school health programs. For more informationrefer to the Volume IIInstitutional Development Programs: Policyand Planning Support Program: The nationalhealth care system will be organized andmanaged to reduce inequity and improve efficiencyand accountability at all levels. Stepswill be taken to improve capacity at the provinciallevel and to decentralize responsibilities asprovincial capacity is established. In addition,efforts will be made to enhance evidencebased,bottom-up and participatory strategicplanning in all levels of the health systemthrough development of annual, business planswith costs in all departments, strengthenedlinks between the different levels of the healthsystem, implementation of the National Monitoringand Evaluation Strategy and translationof recommendations from research and practicalexperiences to policy formulation andhealth planning.MoPH will enhance coordination between theMoPH and partner organizations through formaland informal mechanisms and facilitatestronger donor coordination, especially whenundertaking assessment and planning missionsand in supporting health priorities. MoPH willalso work with both donors, partners and theprivate sector to coordinate the delivery ofhealth care services by setting and distributingpolicies, standards and guidelines, conveningthe Consultative Group on Health and Nutritionand task forces to work on specific technicalissues under the leadership of the MoPHand further develop Provincial Public HealthCoordination Committees within each province.MoPH will also review and develop relevantlegal and regulatory mechanisms, such as accreditationsystems, that govern health andhealth related work in the public and privatesectors. The goal of the regulatory system willbe to facilitate competitive and cost effectiveprovision of services, carrying out its broadermandate to not only contract out service provisionto civil and private groups but also to facilitategrowth of the ‘for profit’ sector. Thisbeing said, MoPH will also review, developand enforce relevant legal and regulatory instrumentsthat govern health and health relatedwork to safeguard the public and ensure servicequality. MoPH will work to identify, encourage,coordinate, and review and in somecases conduct relevant, useful research that canassist evidence-based decision making and theformulation of new policies, strategies andplans. One area of resource is with respect tofacilitating the growth of the private sectorproviders operating on their own outside theframework of contracts from MoPH.Human Resource Development, Researchand Administration Programs: The MoPHwill work closely with the Civil Service Commissionto implement the National Priority Reformand Restructuring competitive recruitmentprocesses for placing the most highlyqualified Afghan health professionals in establishedposts throughout all levels of the healthsystem. Efforts will be made to promote a cultureof quality throughout the Health and NutritionSector, especially in health facilities,through leadership and good examples set inday-to-day work, strengthen the use of qualitystandards, and promote frequent supportivesupervision.A Quality Assurance Committeehas been established to promote improvementsin service within public sector facilities. Onceeffective regulatory mechanisms are developedand can be enforced, the MoPH will addressquality issues in the private-for-profit sector,especially pharmacies and drug sellers. Acomprehensive approach to human resourcedevelopment will be developed to produce,deploy and retain where they are needed anappropriately trained health workforce pos-Economical and Social Development 111

sessing the variety of skills needed to deliveraffordable, equitable and quality health careservices. Further develop and maintain a healthcare worker registration system and a nationaltesting and certification examination process(in collaboration with the Ministry of HigherEducation) will be established standards foraccreditation of training institutes and programs.There will be a significant Expansion ofthe community midwife training programmodel to other cadres of health workers, withparticular emphasis on recruiting, training anddeploying couples to work together in healthfacilities in their community after graduation.For more information refer to the Volume IIand Appendix II, National Action Plan Matrix.Health Care Financing: The MoPH will undertakehealth advocacy to increase funds andresources to the health sector, ensure spendingis in line with priorities and coordinated acrosssectors, strengthen transparency in the allocationof financial resources and financial management,strengthen coordination of differentsources of funding, and monitor differentmechanisms of financing the delivery of servicesfor their cost-efficiency and acceptability.MoPH will also coordinate closely with theMinistry of Finance on the National DevelopmentBudget, the development of mechanismsto improve total public expenditure from internaland external resources, the development ofalternative health care financing. Work undertakenon facilitating private sector growth inthe sector will also be used to explore the potentialcosts or savings from efforts to facilitatesuch growth or from the budget savings becauseof such growthRule of Private Sector and Civil Society:Through the Basic Package of Health Services,the contracting out initiative, and the focuseddevelopment of the MoPH’s ability to exercisethe stewardship function, highly effective partnershipswith non-profit private sector agencieshave been achieved. Strategic actions related tothe private sector include: (i) continuing theeffective partnership with non-governmentalorganizations in the health sector (ii) furtherdeveloping the MoPH’s capacity to establishpolicies, strategies and plans, monitor performancein delivery of health services and coordinatediverse actors from the public and privatesectors working within health and nutrition;and (iii) developing regulatory mechanisms forengaging the for-profit private sector. Many ofthe later issues have been discussed in describingearlier programs.Civil society plays a role in the delivery ofhealth services and in the interaction betweengovernment and the population in determininghealth needs and priority areas. This strategyhas been designed to specifically target thehealth and nutritional needs of the most vulnerablegroups in Afghanistan. Civil Societygroups will play a key role interacting betweenall players to ensure this happens. Recognizingthat transparency and accountability are essentialin order to attract resources, and aware thatin a post-conflict environment many wellintentionedgovernmental and nongovernmentalpartners tend to impose and arrangefor the implementation of programs oftheir own design, the MoPH has pursued astrategy of close coordination with all actors inthe health sector. A Consultative Group forHealth and Nutrition that includes donors, majorNGOs, ISAF, UN agencies, and other lineministries meets regularly to review recent developmentsin the health sector and to contributeto making policies and suggesting programsfor the future. For more information referto the volume IIThe Sub-national Consultation (SNC) processof the ANDS has successfully involved the subnationaladministration of the sector. It hasstrengthened the sense of cohesion between thecentral MoPH and the provincial public healthdepartments. The MoPH’s evaluation criteriafor the SNC proposals seek equity by looking atthe depth of poverty and vulnerability of thepopulation to be served. It takes into accounthealth indicators of mothers and children, utilizationand availability of the health services inthe area of concern, and availability of funds: 51• the proposals that are on-going and/or tobe implemented with the current funds;• the proposals that are included in theMoPH Construction Plan and to be implementedwhen fund is available;51 While maximizing the number of beneficiaries, the MoPHseeks equity by looking at the scientific data on topography,depth of poverty and vulnerability of the population to be servedfor, health indicators of mothers and children in particular, utilizationand availability of the health services in the area of concern,availability of funds and so forth. By doing so, the proposalsare categorized according to four criteria.112Afghanistan National Development Strategy (ANDS)

• the proposals that are considered in theHNSS timeframe and implemented whenfund is available; and• the proposals that have to be discussed indetail with the MoPH because they are notadhering to the evaluation criteria, collidingwith the HNSS strategies and/or duplicatingthe efforts and inputs of theMoPH and its partners.The MoPH acknowledges that the SNC is anopportunity for all the stakeholders in the sectorto create more dialogue and thus refine theroute towards the accomplishment of theHNSS.Private Sector ‘For Profit’ Health CareProvision: In addition to the contractual arrangementswith NGOs and Private Sectorgroups to provide MoPH service packages,mechanisms will be developed by which ‘forprofit’ private sector providers of medical andhospital services can be supported by Government.This reflects the realization that whilepublic funding for many social services such aseducation and health is necessary, ‘for profit’private sector provision may be more efficient.In many countries, private sector provision hasdeveloped to cover the needs of a significantproportion of the population seeking qualityeducation and health care. These ‘for profit’private sector providers have emerged despitenot have any access to public funding. As partof the ANDS, an effort will be made to fostercompetition between public sector providers,public sector contractors and ‘for profit’ privatesector operations. Communities or individualconsumers who feel they can get better servicefrom the ‘for profit’ private sector providersshould not lose their claim on public funds justbecause they make this choice. Voucherschemes and/or direct public sector paymentsfor approved services provided by accredited‘for profit’ private sector providers will be usedto encourage this competition.Expected OutcomesThe key expected outcomes in the Health andNutrition sector are:• Increased quality of health care services;• Increased access to health care services;• Effective Reproductive and Child healthsystem; and• Increased competition amongst health careproviders.EDUCATIONRole of the Sector in ANDSThe ANDS strategic vision for this sector is thatregardless of gender, ethnicity, socio-economicstatus or religious affiliation, all Afghans willhave equal access to quality education to enablethem to develop their knowledge andskills and thereby maximize their potential. Aneducation sector that engenders a healthyworkforce with relevant skills and knowledgeis a key to long-term economic growth.Over the last six years the sector has experienceda number of major achievements, notablyin terms of enrollment rates. There are todaymore than six million children, youth andadults receiving education. Communities havedemonstrated their desire for a better future fortheir children by sending them to school intheir millions. Tens of thousands of youth andadults, both female and male attend literacyclasses and vocational training programs.Households are making large personal and financialsacrifices to provide an education fortheir children. However, much remains to bedone. This strategy outlines the Government’spriorities for education that will facilitate thedevelopment of an education sector fromwhich students will emerge literate, numerateand technologically proficient.Access to education is enshrined in the constitution,which states that:education “is the right of all citizens andoffered free of charge in State institutions….andthat the State is obliged to deviseand implement effective programs fora balanced expansion of education all overAfghanistan” (article 43).The education sector in Afghanistan comprisesthree sub-sectors: (i) Primary and SecondaryEducation, which includes general, Islamic andtechnical/vocational education, from Grades 1to 14; (ii) Higher Education for all tertiary education;and (iii) Skills Development that en-Economical and Social Development 113

compasses literacy and technical vocationaleducation/trainingThe Millennium Development Goal for the sectoris that by 2020 all children in the country –boys and girls alike – will be able to complete afull course of primary education. A set of mediumterm benchmarks (to be met by the end of2010) identified in the Afghanistan Compacthas guided the development of strategies foreach of the sub-sectors.The Afghanistan Compact Benchmarks for thesector is net enrolment in primary schools forgirls and boys will be at least 60 percent and 75percent respectively; a new curriculum will beoperational in all secondary schools; the numbersof female teachers will be increased by 50percent; 70 percent of Afghanistan’s teacherswill have passed a competency test and a systemfor assessing learning achievement will bein place”. The total number of students enrolledin universities will be 100,000 of which atleast 35 percent will be female”.150, 000 menand women will be trained in marketable skillsthrough public and private means,The Government has set itself a target to enableat least 1.8 million Afghans to attain demonstratedliteracy by 2010, and ensure that at least60 percent of the learners are females, membersof minority groups, nomads or persons withdisabilities.Expected Outcomes: The overall educationsystem agreed outcomes include an increase inthe literacy rate, improved quality of education,an expansion in the capacity of the educationsystem to absorb more students (particularlyfemale students), equal access to education forall, improvement in opportunities and qualityfor Higher Education, expanded capacity andimproved quality of vocational education andskill development, improved conditions forsport, improved and expanded capacity of theAcademy of Science, and mainstreaming ofcross-cutting issues. For detail information referto Appendix 3 National Action Plan andMonitoring MatrixSector Priority Policies: Priority short termpolicies over the next four years involve retraining70 percent of teachers in primary andsecondary school and coping with increaseddemand for education by increasing enrolmentsfrom 6.1 million to 7.7 million. Otherpriority policies include an increase in the qualityand independence of the Higher Educationsystem and a move to place vocational educationalon a more sustainable basis that can bettercontribute to emerging demands for skills.Current Situation in the SectorAfter decades of disruption to education andthe near total destruction of the education system,one of the Government’s top social prioritieswas to get children to return to school.Data from the sub-sector 52 indicate unparalleledsuccess giving a clear indication of theaspirations of the people that reflects a socialtransformation taking place (see box 7.4).Box 7.4. Success in the education sector:increased primary educationThe Back to School campaign launched in2002 aimed to get 1.5 million childrenenrolled in primary and secondaryeducation. From under one million in 2001the school population has grown to 5.7million in 2007 and new enrolments intoGrade 1 have ranged between 12-14 percentper annum in the last five years. Twomillion of the children (or 35 percent)enrolled are girls – a 35 percent increase infive years. In keeping with the exponentialincrease in enrolment, the number of schoolshas trebled to 9,062 in 2007 including 1,337all girls’ and 4,325 co-educational schools.Similarly, the number of teachers hasincreased seven-fold to 142,500 of whonearly 40,000 are female. Fifty thousand ofthese teachers have received in-serviceteacher training. Islamic education inAfghanistan has been reviewed and a broadbasedcurriculum has been developedthrough a national consultative process. Thenumber of reformed religious schools thatteach a broad-based Islamic educationcurriculum has increased to 336 and theNational Islamic Education Council has beenestablished to oversee and monitor thedelivery of Islamic education across thecountry.52 School Surveys Summary Report, 1386 (February 2008), Ministryof Education, Islamic Republic of Afghanistan.114Afghanistan National Development Strategy (ANDS)

In Higher Education, universities have reopened.There are now 52,200 students inhigher education institutions taught by 2,713lecturers. Demand for higher education is currentlyfour times greater than the availableplaces in tertiary education institutions. Thenext stage of rehabilitation involves improvingthe quality of education in existing institutionsand expanding the number of places available.Partnerships with foreign universities andother educational institutions have been introducedin about half the universities. Suchpartnerships foster and provide support to developand enhance the capacity of these universities.Skills development – through technical andvocational education and training as well asfocused functional literacy – has also seen significantgrowth in the last five years. The Governmentestablished the National Skills DevelopmentProgram in 2005 as a national priorityprogram. Technical/vocational education atthe secondary level through public institutionshas seen a 10-fold increase in the last five yearswith nearly 10,500 students enrolled in 44schools. Short-term technical/vocational trainingcourses that focus on specific skills set areconducted by the non-government and the privatesectors. Similarly, functional literacy foryouth and young adults are carried out by boththe public and non-government sectors. In thepublic sector alone nearly 320,000 persons undertooka 9-month literacy course in 2007, 75percent of whom were female students.The key achievements noted above are commendablebut are by no means the whole picture.While the Government is satisfied withthe progress made so far, it recognizes themany challenges that lie ahead in achieving itslong-term vision and medium term objectives.These challenges pertain to meeting the growingdemand for access to quality and relevanteducation.The demand for education far outstrips thesupply across the sector in Afghanistan today.Only half of all school-age children 53 are en-53 School age refers to children between 6-18 years of age; 6-13years = primary school which is Grades 1-6; 14-18 years = secondaryschool from Grades 7 to 12. Basic education is describedas Grades 1-9 (6-15 years of age), which is also compulsory asstated in the Constitution.rolled in schools and there are huge provincial,gender and rural/urban disparities. Eight-twopercent of children enrolled in schools are inprimary grades.Box 7.5. Progress is still required in theeducation sectorHalf of all schools today do not haveadequate, safe or appropriate learningspaces that are conducive to parentsallowing their girls, particularly at thesecondary level, to enroll in schools. Thistogether with a severe shortage of femaleteachers in rural areas – 80 percent of ruraldistricts do not have a girls’ high schoolbecause there are no female teachersavailable locally to teach in them (there areonly 216 girls’ high schools across thecountry, a majority of them located inregional and provincial capitals). Only 28percent of all teachers are women and eightypercent of them are found in urban schools.Schools for children with special needs arewoefully lacking while those for Kuchichildren are inadequate. Every year between40,000-70,000 youth graduate from highschools across the country but only 25-30percent of them are able to enter tertiaryeducation due to the severe shortage ofplaces in higher education institutions. In2006 there were 58,300 applicants for entryinto tertiary education institutions. Only17,700 were successful. Most of theuniversities have buildings that requirerehabilitation and there is a drastic shortageof qualified lecturers.The lack of access to education in the recentpast has resulted in a massive backlog of illiteratepeople in Afghanistan. Based on recentnational surveys 54 it is estimated that only28 percent of the population in the country canread. Disaggregated by gender this statisticreveals that only 18 percent of females and36 percent of males are able to read, a female tomale ratio of 0.5. Based on population projectionsdeveloped specifically for this work andliteracy rates by the Afghan Institute for RuralDevelopment it is estimated that there are11.2 million illiterate persons in the country54 NRVA 2005 and projected population projections specificallydeveloped for this report.Economical and Social Development 115

today, half of whom are out-of-school childrenprimarily above the age of thirteen.Other quality constraints revolve around teachingspaces, teacher and trainer qualifications,skills and motivation, outdated curricula andpoor teaching and learning materials. Add tothis weak assessment and accreditation systems.Only half the teachers employed in theprimary and secondary sub-sector meet theminimum qualification which is set at Grade 12for primary school teachers. But this is hamperedby the numbers of high schools graduatesavailable and/or willing to train as teachers.There is major shortage of qualified mastertrainers in the vocational training.Primary school curriculum has been reviewedand revised and new textbooks developed;production and distribution of these textbooksis still ongoing. However, secondary schoolstudents are still being taught from an outdatedcurriculum developed more than 20 years ago.While a new curriculum has been developedover the last 12 months, the development, productionand distribution of textbooks, teachers’guides and learning materials will take a further12-18 month period. Teacher training inthe use and teaching of the new curriculum stillneeds to be addressed. Libraries and laboratoriesare singularly lacking even in most urbanschools and higher education institutions as aretrained librarians, technicians and scienceteachers. In higher education there is a need totransform the monolithic system into a modernsystem of independent, well managed universitiesthat operate in the interests of their students.Technical/vocational education andtraining are overloaded with academic subjects,have poor laboratory environments for practicaltraining, are short of teaching aids and lackadequate training materials. These programsprovide limited exposure to students on thepractical application of their training.The relevance of education as it applies to thecontent, proper articulation from elementary tohigh school level and appropriateness for studentlearning and teachers teaching are a challengethat is still being defined in the sectortoday. Skills development is rarely linked tomarket relevance and weak job linkages. Thereis no minimum qualification standards imposedparticularly in course content or assessmentprocedures for technical/vocational training.Similarly, there is no uniformity in courselength across various training programs andcourses are often not sub-divided into levels ofcompetency. The quality of student input islow and consequently the quality of studentsentering formal higher secondary or tertiaryeducation do not possess adequate literacy andnumeracy skills needed to cope with higherlevel theory and practical courses. In the caseof vocational training the problem is furthercompounded by the lack of prior academictraining.Throughout the education sector there is a generallack of engagement with the private sectorand the use of private sector resources thatwould generate competitiveness and therebyencourage and enhance quality of the educationservices. Benefits to delivery of relevanteducation services would be greatly enhancedthrough market linkages and the private sector.Perhaps the most daunting challenge facing thesector today is that which is posed by terrorism.Educational institutions, students andteachers have become the soft targets throughwhich terrorists are depriving the populationtheir basic rights. Threats to schools, destructionof school buildings, killing and maiming ofstudents and teachers is increasing, particularlyin the southern provinces. Despite the braveryof communities and school authorities in keepingschools open when threatened or reopeningthem as soon as possible after an incident orthreat, the terrorists continue their campaign ofintimidation. In 2007 alone 117 schools wereburned down or destroyed, 207 schools had tobe closed due to severe threats, 157 studentsand teachers lost their lives and over 200 othershave been injured or maimed. For detail informationrefer to Volume IIPolicy Framework: Sector StrategyThree dominant policy goals drive the educationsector strategy; equity, quality and relevance:Equity: Access to education for all is enshrinedin the Constitution which makes it illegal todeny or refuse access to schools for any reason.Although there has been significant progress inthe past five years at the national level, boys’enrolment in primary schools is still nearlytwice that of girls, while at the secondary levelsit is three to four times higher. In urban areasgirls are approaching gender equity but only at116Afghanistan National Development Strategy (ANDS)

the primary level. In rural areas, girls are muchless likely to be enrolled at any level but afterthe primary years boys are more than ten timesas likely to be enrolled. The shortage of girls’schools and female teachers, especially at postprimarylevels, are the greatest risk factors forachieving higher participation rates and genderequity in rural areas. Access to education fornomadic children, those with learning disabilities,pre-school children and older childrenwho have missed the first years of basic educationand now want to enter the system is alsogenerally low.Equity in access to primary and secondaryeducation will provide a firm base for equity inhigher education. In order to improve and increaseaccess, the government plans to pursuean aggressive building and equipment programin addition to assessing the potential fordistance learning strategies. This will includeassessing the optimal role for government andidentifying strategies for achieving nationalcoverage relatively quickly through the use ofexisting national facilities. As part of the aggressivebuilding program, efforts will be madeto include improved security, comfort and hygienein the building designs in order to improvethe physical learning environment. Improvementin equitable access to education willbe indicated through increased net enrolmentin the various sub-sectors, by gender and specialneeds; additional physical infrastructureand facilities for that caters to all including females,special needs and nomadic communitiesin suitable locations.Quality: The quality of education in Afghanistanis quite low across the sector. There aremultiple reasons for this including teacherswho do not have a thorough knowledge of eitherthe subjects taught or effective teachingmethods; the lack of adequate learning spaces,as well as the lack of quality teaching andlearning materials. The classroom environmentand the quality of education are critically dependenton the quality of teaching. Teachercenteredclassrooms and rote learning are thenorm in Afghanistan’s classrooms across thesector. Existing classroom-based methods dono deliver basic literacy and numeracy andthey do not develop critical thinking and analyticalskills of students. Teachers either do notknow how to implement more studentcenteredmethods or are not motivated tochange their teaching style.Although improving the pedagogical skills ofteachers is a contributor to improving the qualityof education in Afghanistan, recent surveysindicate that the knowledge level of teachers isalso extremely low. This indicates the need fora teacher training program that consists of bothsubject-content training as well as pedagogicaltraining. The quality of education will also beimproved by continued updating and revisionof the curriculum and by increased communityinvolvement in the management of educationdelivery. Enhanced quality of education willbe measured by the progression rates of studentsthrough the system and the numbers ofteachers who have successfully completedcompetency tests and the systems put in placeto monitor and coach teachers on a regular basis.Relevance: For education to contribute topoverty reduction and economic growth it isimportant that the skills and knowledge acquiredin the education system are relevant topresent day needs and market demands. Thecontent of education in Afghanistan has notevolved with the times and not for want ofgood reasons. However, it is opportune now toleapfrog in time and adopt relevant methodologies,content and appropriateness that suitboth the individual and the people at large tobetter contribute to and benefit from economicgrowth.The review and revision of curriculum to makeIslamic education broad-based to allow multiplecareer paths for graduates, the teaching andlearning of technical and vocational skills thatare in demand and will lead to jobs, adult literacythat is linked to productive skills, are someexamples of how government is attempting tomake education more relevant to present dayAfghanistan. For detail information refer toVolume II.Strategic approachesThe underlying principle of government in ensuringequal access to education for all is todevelop a strategy that is national in scope butlocal in focus and delivery. Different measureswill be required to overcome constraints to accessand supply due to geography and therebypromote the diversity of Afghanistan.Government will work towards strengtheningpartnerships, clarifying responsibility andEconomical and Social Development 117

transferring skills. The value and contributionof partners to the education sector will be enhancedthrough improved understanding andcollaborative implementation.A government-led education sector needs to besupported through building an accountableand transparent system of education financingand administration. The underpinning strategythat the government will employ to achieve itspolicy goals, therefore, is the reform and restructuringof the management systems inplace that facilitate the delivery of educationservices. At the primary and secondary schoollevel, a major policy shift seeks to devolvegreater authority to the school level for minoroperating expenses, planning and execution.This is part of the overall intention to improvegovernance and management standards.Recruitment processes will be reviewed and bepart of the overall public administration reforms.Registration of all teaching professionalsacross the sector, implementation of publicadministration reform, teacher salaries andother incentives are being reviewed as part ofthe pay and grading process, including appropriatecareer development of teaching professionalsbased on merit and performance to increaseretention, in conjunction with the CivilService Commission.StrategiesPrimary and Secondary Education: A comprehensivefive-year strategic plan 55 for thedelivery of education services has been developedby the Ministry of Education to meet themedium-term benchmarks for primary andsecondary education set in the AfghanistanCompact by 2010. Based on the overarchingpolicy of attaining national and gender equityin access to quality and relevant education, includingaffirmative action initiatives, the StrategicPlan encompasses the National EducationProgram that comprises two subsets of priorityprograms. The first set comprises service deliveryprograms and the second set quality assuranceand support programs. The servicedelivery programs are General Education, IslamicEducation, Technical/Vocational Educa-tion and Literacy, 56 while the quality of educationis assured through the Teacher Education& Working Conditions, Curriculum Development& Learning Materials, Education InfrastructureRehabilitation and Development, andEducation Administration Reform and Management.Each of these programs has a set ofcosted projects that are prioritized and sequencedfor implementation. For detail informationrefer to Volume II.Higher Education: The Higher Educationstrategy involves improving quantity and qualityaspects to satisfy the demand for the marketbased economy with skilled professionals. Thiswill involve increasing the capacity to accommodatemore qualified students, together withan improvement in the quality of higher educationby improving the number and quality oflecturers and offering a greater variety ofcourses. There are plans to provide universitieswith greater autonomy. A key componentof the strategy is to encourage universities toenter into cooperative arrangements with otheruniversities, both domestic and foreign, so thatthere can be an exchange of lecturers. Implementationof this strategy has already commenced.Eleven cooperative partnerships betweenindividual universities in the countrywith well qualified foreign universities are invarious stages of finalization.In 2007 a Higher Education Law has beenpassed by Cabinet. A Master’s course has alreadybegun as part of the objective to offer agreater variety of courses. Ministry of HigherEducation has started to introduce accreditationthrough the Academic CoordinationCommittee. This body, whilst still in the earlystages will also be involved in quality assuranceand control, which is an integral componentof the accreditation procedures. Thiscomponent of the strategy will be monitored bythe structure that has been established throughan agreement and Memorandum of Understanding(MoU) signed with the World Bankon establishment of Afghanistan NationalQualification Authority. In its efforts to improvethe quality of Higher Education, mostfunds available to the Ministry will be used torefurbish the existing university campuses and55 National Education Strategic Plan (1385-1389), Ministry ofEducation, Islamic Republic of Afghanistan.56 Outputs of these programs contribute to the development anddelivery of the Skills Development sub-sector.118Afghanistan National Development Strategy (ANDS)

carry out construction of buildings for librariesand laboratories in the existing universities. Itis also important as part of the strategy to conducta review of university funding so thatuniversities have greater autonomy. For detailinformation refer to Volume II.Skills Development and Training: Many ofthe courses delivered by mandated institutionssuffer from the similar problems: lack of modernequipment that can be used by students toacquire trade-relevant skills and lack of adequatelytrained and motivated staff. Issues thatneed to be addressed include the need toclearly identify administrative responsibilityfor delivering and setting standards in the areaof vocational education. There are problems ofstaff shortages, overbuilding, lack of standardizationin training courses, and qualificationsthat are difficult for potential employers to access.These problems are being addressedthrough the MoU mentioned above.The strategy that has been proposed to addressthis is to establish a new organization, NationalVocational Education and Training Board(NVETB) that would manage, but not operate,all vocational training institutions. The NVETBwould set minimum core competencies forcourses, carry out accreditation, and inspectvocational institutions, to ensure that they meetminimum standards. They would be responsiblefor calling tenders to operate vocationaltraining facilities owned by the state. Tendersto operate training centers that comply withNVETB standards could be accepted from boththe public and private sectors. The proposedapproach using NVETB would address theproblems of lack of modern equipment that canbe used by students to acquire trade-relevantskills, lack of adequately-trained and motivatedstaff, and lack of standardization in courses. Itwould provide for sustainability of the sector,which is currently lacking. Part of the strategywould involve the development of an accreditationsystem for NGO and private sector providerswho provide the bulk of vocationaltraining. By 2008 there would be a plan to formalizeexisting apprenticeship arrangementsand expand the system. The approach will ensurethat a recognized qualification is providedto people undertaking apprenticeships whohave achieved specified basic competencies.Technical/vocational education, as part of theformal secondary education, is included underthe National Education Strategic Plan as is Literacyand Non-formal education. These twoprograms address all three policy goals of thesector. Under the former a National Institute ofAdministration and Management is being establishedto address the lack of capacity in boththe public and private sectors in basic projectmanagement, accountancy and booking andinformation and communication technology. Anation-wide literacy and productive skills programis being launched that is envisaged makingat least half a million people literate andnumerate with skills that will enable them tofind employment. This would be in addition tonumerous other literacy service providers whocoordinate their activities and interventionsunder the leadership of the National LiteracyCentre.There are now firm proposals agreed to byrelevant institutions to the establishment ofregulatory bodies to operate across the wholeof the education spectrum in order to improveeducational standards. These include a Boardof Secondary Education, a National VocationalEducation and training Board, the Islamic EducationBoard and Higher Education Board. Ithas been agreed to establish the necessary legislationfor these Boards and for the implementationof the Afghanistan National QualificationsFramework. In order to oversee thesecomponents of the strategy a committee oneducation and skills policy has been established.This committee covers the entire educationsector. It is chaired by the Vice-President.There are four Government members representingMoE, MoHE, MoLSAMD and MoF, twomembers representing the private sector andtwo members representing the donor community.A committee to monitor Capacity Utilization,headed by the Minister of economy willalso be established. This committee will monitorindividual projects where there is potentialfor capacity utilization issues to present implementationproblems. The private sector willbe represented on this Committee. For detailinformation refer to Volume II.In some countries, heavy investments in highereducation have resulted in low returns becauseof low absorption capacity for these skills in theeconomy, with unemployment rates high forgraduates unwilling to take jobs consideredbeneath their skill level. If the quality of educationcan be improved, this is not expected to bea problem in Afghanistan where there is aEconomical and Social Development 119

dearth of well qualified individuals. Increasedinvestment is crucial for the demand for laborto increase. This requires higher rates ofgrowth, broad investment to increase and productivityto be higher. With increased investmentin many areas of the economy, there willbe high demand for well qualified Afghans.There is an urgent need for qualified teachers,trainers, doctors, professors, for those with therequisite skills for planning and implementingimproved water management practices, forqualified professionals in the Civil Service, forskills needed in the management and developmentof mineral resources, for meeting themanagement and safety needs of a growingcivil aviation sector, for managing and maintainingan expanding road system, for work inregional trading enterprises centered in Afghanistan,in developing, energy resources,working in Independent Power Producers, andin managing and improving electricity transmissionand distribution systems, developingcommercial agriculture, and working in operationsto assist the poor and most vulnerableeither within or outside government. If theANDS educational strategy is successful in addressingthe quality shortcomings in the publiceducation system and expanding the scope forprivate education, the expected growth of theeconomy will create the demand for well qualifiedAfghans emerging from the educationalsystem. Care will need to be taken to assurethat existing but less qualified employees in thepublic sector do not block the way of betterqualified applicants for these jobs, althoughthese existing employees should also be giventhe opportunity to develop the needed skillsthrough in house capacity development programsand through ‘educational leaves’ to upgradetheir skills.There are other sub-sector policies coveringareas such as Sport and the Afghan Academyof Science.• In sports policy there will be an effortmade to encourage private sector support.Provided funds are available, there is aprogram to build sports complexes andstrengthen sports through provincial sportsdepartments and sports improvement programsin capital and provinces. The antinarcoticsmessage will be promotedstrongly through sports activities.• The Academy of Science will be strengthenedand supported so as to use the resourcesand talents of the academy to assistwith the restoration and development ofAfghanistan societyIntegration of the PDPs: At the provincial anddistrict level Provincial and Development Plans(PDPs), have been developed through a subnationalconsultation process. These Plans ensurethat the priorities in the ANDS reflect thebest interests and most urgent needs of thepeople. The most urgent provincial needs ineducation, health, and transport have beenidentified and will be integrated in the sectorstrategies. A problem in the education sectorhas been direct provincial infrastructure aid bycountry donors, such as construction of provincialagricultural colleges, that is not sustainablebecause the provincial recipient does not havethe funds to finance the running costs, includingas salaries and equipment, which are essentialto enable this type of infrastructure aid tomake a contribution to provincial development.For detail information refer to Volume III ProvincialDevelopment Plans.Institutional Arrangements: Education servicesare delivered by a number of governmentinstitutions. The Ministry of Education ismandated to deliver primary and secondaryeducation, including general education, Islamiceducation, teacher education, technical/vocationaleducation and literacy. TheMinistry of Higher Education is responsible forall tertiary education while the Ministry of Laborand Social Affairs is mandated to delivervocational training.CULTURE, YOUTH ANDMEDIARole of the Sector in ANDSThe ANDS strategic vision for this sector is topreserve and protect the cultural heritage ofAfghanistan and hand it on to new generationsto foster cultural creativity and to establishmedia that are independent, pluralistic andaccessible to women and men throughout thecountry thereby promoting an open and democraticsociety, young people (male and female)to be confident that they have a stable,120Afghanistan National Development Strategy (ANDS)

prosperous and productive future in the country.Culture provides the social basis that allowsfor stimulating creativity, innovation,human progress and well-being. In thissense, culture can be seen as a drivingforce for human development, in respect ofeconomic growth and also as a means ofleading a more fulfilling intellectual, emotional,moral and spiritual life.The Afghanistan Constitution article 47 articulatesthat the state shall devise effective programsfor fostering knowledge, culture, literatureand arts. The state shall guarantee thecopyrights of authors, inventors and discoverers,and, shall encourage and protect scientificresearch in all fields, publicizing their resultsfor effective use in accordance with the provisionsof the law. Freedom of expression shall beinviolable according to Article 34 and everyAfghan shall have the right to express thoughtsthrough speech, writing, and illustrationThe Afghanistan Compact Benchmarks targetscomprehensive inventory of Afghan culturaltreasures by end-2007 and measures will betaken to revive the Afghan cultural heritage, tostop the illegal removal of cultural material andto restore damaged monuments and artifactsby end-2010.Current situation in the sectorAchievements: Considerable progress hasbeen made in the past six years. From virtuallyno public debate, there are now over 130 independenttelevision and radio stations coveringthe entire country. In Kabul alone there are 11independent television stations, while access tocable television is increasing. There are largenumbers of independent newspapers. Many ofthese outlets are managed and target youth,female and minority groups. This providesavenues for vulnerable and marginalizedgroups to have a voice in society.These advancements have created an environmentin which the caliber of public debate ishigh and lively. Criticism as well as praise forpublic programs and figures are common andencourage the public’s involvement in governmentactions and the development process.This debate filters down through society and isresponsible for increased questioning andanalysis of Government activities morebroadly.The Government is committed to furtheringthis public debate and independence of media.The Government recognizes that public debateis crucial for allowing the needs of the Afghanpeople to be fed into development activities.Independent media report development activitiesand programs and are critically importantto increasing public awareness on the Governmentand international community’s efforts.At the same time, local independent entertainmentprograms have been developed and arehighly popular. Regional television shows arealso broadcasted meeting the needs of the Afghanpeople.Many historical and valuable artifacts that werebelieved lost or stolen have been accounted forand returned. There is now a need for a comprehensiveinventory to determine the extent ofholdings.In Media, a large number of media outlets,television, radio and newspapers have beenstarted in the last six years. These stations produceconsiderable local Afghan content and arepopular within the country. The media law isdrafted and is under debate.In Youth a Joint National Youth Program isbeing implemented. This program is designedto increase the participation of youth in governance,recovery, development and peacebuildingof the country. It has been producedfrom inputs by eight Ministries and sevenUnited Nations agencies.Challenges and constraints• There is an urgent need to take action toprevent the looting of valuable cultural artifactsand to encourage other countries toreturn them.• The inability of the Ministry to reach assignedtargets is due to the lack of resources,both human and financial. This isthe basic cause of the weaknesses in theSector. Institutional strengthening shouldlook not only at the resource needs of theMinistry but also look at the way resourcesare organized.Economical and Social Development 121

• In the area of culture, legal and policyframeworks, such as those guaranteeing respectof cultural rights for all Afghans, areweak and not comprehensive.• Most media infrastructure and equipmentfor both print and broadcast media are outof-dateor have been damaged or deliberatelydestroyed. State-owned media needsto be reformed in order to ensure that itpromotes democratic values and is editoriallyindependent of influences from variousinterested factions.• Media legislation that will provide an environmentin which a free, independent andresponsible media can operate has beendrafted. It will be passed through Parliamentin 2008. Despite some setbacks, theGovernment is determined that the freedomsthat have been introduced will remainand will be protected by appropriatelegislation.Policy framework: sector strategyCultureThe objective of this sub-sector to the ANDSwill be to establish a system that documentsand safeguards Afghanistan’s history and culturefor the benefit of future generations. Majorgoals include:• Establish an accessible and well maintainedcultural artifacts data base;• Plans will be accepted, and donors will beidentified, to establish regional museums;• Maintain Kabul museum and take measuresto establish thematic museums such asethnology, anthropology, science and technology,handicrafts and community museums;• The cultural artifacts collection held by theMinistry will be expanded;• Take appropriate measures to promote liveculture (Music, Poetry, Arts, Theater &Dance)In the longer term goals will include the establishmentand expansion of museums as well asthe protection of historical and heritage sites.For detail information refer to volume 2MediaThe contribution of this sub-sector to the ANDSwill be to ensure an independent, pluralisticand accessible media for Afghan men andwomen throughout the country which it ishoped will promote an open and democraticsociety. The objectives with respect to mediaare:• To establish legislation that will provide astable and predictable environment inwhich a largely private sector, independentmedia can operate;• Media will be employed as an educationaltool in addition to entertainment.Expected outcomes for the media sub-sector inthe short term will include:• New Media legislation will have beenpassed and Government and the Ministrywill successfully administer this legislationin an open manner;• A country-wide coverage of public Afghanmedia (radio and television);• An increased number of hours of publicbroadcasting, and improved quality ofprogramming;• Press freedom has been declining drasticallyin Afghanistan over the past 4 yearsand so the need to promote and protect theindependence of the media as well as ensurepress freedom is extremely important;• Press freedom is a fundamental aspect of ademocratic society therefore the Governmentwill work to reverse setbacks and ensurethat press freedom be protected bothin legislation and in practice. For detail informationrefer to volume 2YouthThe contribution of this sub-sector to the ANDSwill be to instill in young people a sense of confidencein a stable, prosperous and productivefuture in the country. In addition a Joint NationalYouth Program is now in the process ofbeing implemented. This program has beenproduced with inputs from eight Ministries ofthe Government of Afghanistan and sevenUnited Nations agencies is designed to increasethe participation of youth in governance, re-122Afghanistan National Development Strategy (ANDS)

covery, and peaceful development of the country.It provides young women and men withenhanced capacities, education, and recreationand employment opportunities.The Joint National Youth Program containsfour main components:• Strengthening the capacity of the Governmentto respond to the needs of the youthof the country;• Promoting non-formal education, increasingawareness and developing skills (literacy,leadership, strategic planning, conflictresolution, peace-building, etc.) in youngpeople so to provide better quality of lifeand livelihood opportunities;• Engaging youth in governance, developmentand social-political processes at local,district, municipal, provincial and nationallevel, ensuring the participation of youngwomen and men in democracy and advocacy;and• Promoting voluntary efforts for peace anddevelopment and establishing a youth volunteercorps for the country. For detail informationrefer to volume 2The most important projects to support thesub-sector strategies included the development,maintenance and expansion of the databasethat documents the collection of artifacts heldby the Ministry; and the passage of the newMedia legislation and its implementation aswell as the implementation of the Joint NationalYouth Program.SOCIAL PROTECTIONCurrent situationImproving social protection is vital to reducingpoverty and increasing the livelihood of theAfghan people, particularly the poor and mostvulnerable. This sector strategy is critical to theGovernment’s ongoing poverty reduction efforts.The programs highlighted below form akey part Government’s approach to achievingthis; alleviating the impacts of poverty and improvingthe welfare of the country.The Afghan Constitution defines the role ofsocial protection and obliges the Governmentto take necessary measures to support the mostvulnerable. Since 2001 progress has beenachieved in number of areas: cash transferbenefits have been established (martyr’s familiesand disabled) as the main instrument ofsocial support for the victims of the war; regularsupport to orphanages has been providedfrom the Core Budget; the MoLSAMD has establisheddepartments in all provinces andstrengthened its capacity for targeting and cooperatingwith the NGOs and the donors. Intotal, some 2.5 million people have been coveredwith some type of public arrangement forsocial protection.The pension system has been strengthened:Although highly dependent on budgettransfers, the basic pension scheme for civilservants and military personal has been established.The number of pensions paid has steadilyincreased from around 10,000 to more than50,000 (in 2006). The MoLSAMD’s PensionDepartment receives technical assistance forfurther improvements and the MoF has intensifiedits effort on collecting pension contributions.The capacity of ANDMA to coordinate disasterpreparedness and response has improved aswell. Basic risk vulnerability studies have beeneither completed or initiated. The links withsub-national structures have been established.The Emergency Budget for Disastrous Situationshas been established under the President’sauthority and a number of interventionsfor risk mitigation have been made.Despite the progress in the strengthening ofsocial protection, important challenges andconstraints remain, including security issuesand low mobilization of the domestic revenues.A further constraint is limited coordinationwithin the Government and with the donors,which leads to duplication of efforts and inefficienttargeting.The ANDS Risk and Vulnerability Assessmentsindicate that the Afghan people are vulnerableto number of risks:Security and economic risks: The continuedinsecurity has led to the loss of lives and forcedpeople to migrate. Afghanistan is one of themost heavily land-mined countries. In 2006,landmines killed or injured an average of 61people per month. The latest survey (NRVAEconomical and Social Development 123

Spring 2007) estimated that 42 percent of thetotal population was estimated to be poor andliving below the CBN poverty line. The incidenceof food poverty has been estimated to beeven higher. Afghanistan has one of the largestchild populations and the smallest proportionof working age populations in the world. Almost40 percent of the adult population is unemployed.Health and natural risks: Afghanistan hasone of the lowest life expectancies in the worldwith the life expectancy of 43 years for womenand 44 years for men. Unlike in most countries,the life expectancy of women is shorterthan for men. Faced with natural disasters,many vulnerable families sold the assets, childrenwere taken out of school to work, manypre-pubescent girls were married and manyyoung men migrated in search for work.Life-cycle and social risks: Despite legislationprohibiting this practice, around 57 percentof girls are married before the age of sixteen.The early marriage of girls, and consequently,early pregnancy, puts women in highrisk. Widespread poverty and the nonexistenceof an effective safety net or pensionsystem leaves a high proportion of elderly peoplevulnerable. According to a study conductedby UNIFEM, out of the 1,327 registeredcases of violence against women 30.7 percentwere related to physical violence.Environmental risks and seasonality: People’shigh dependence on natural resources hasincreased with rising poverty resulting in seriousdevastation of the environment. Forestshave been seriously depleted. This adverselyaffects soil stability and weakens flood protection.According to the NRVA 2005 the consumptionof the poorest is the highest in summerwhile it typically falls to critical levels inwinter.Table 7.6. Reach of social protection programsSocial protection Number of recipientsprogramMartyrs’ families 224,850Disabled 87,717Orphans 10,500Children enrolled in25,000kindergartensPensioners 54,000Public works 1,700,000Microfinance 340,000Total 2,442,067A rough estimate shows that half of the Afghanpopulation (12 million) requires public support.They are either poor or concentrated veryclose to the poverty line and are vulnerable tofalling into poverty. In 2006 only around 2.5million people benefited from social protectionarrangements. Currently social protection interventionscover several groups: (i) martyr’sfamilies; (ii) disabled with war-related disabilities;(iii) orphans and children enrolled in kindergartens;(iv) victims of natural disasters; (v)pensioners; and (vi) unemployed. A roughcalculation shows that the Government wouldrequire annually around $2 billion just to keepthe poorest and most vulnerable above thepoverty line.Sector targets and expected resultsThe implementation the strategy will aim toachieve the following targets in line with theAfghanistan Compact and MDGs:• By end-2012/13 the spring national povertyheadcount rate (42 percent) will decreaseby 2 percent per year; by end-2010proportion of people who suffer from hungerwill decrease by 5 percent per year;• By end-2012/13 prevalence of underweightchildren under five in urban and rural areaswill decrease by 2 percent per year; byend-2012/13 proportion of the populationbelow minimum level of dietary energyconsumption (urban and rural areas) willdecrease by 2 percent per year;• By March-2011, the number of femaleheadedhouseholds that are chronicallypoor will be reduced by 20 percent andtheir employment rate will increase by 20percent;• By end-2010 increased assistance will beprovided to meet the special needs of alldisabled people, including their integrationinto society through opportunities for educationand gainful employment;• By end-2010 skill development trainingwill be provided for 150,000 unemployedof which women will comprise 35 percentand the disabled will comprise minimum10 percent;• By end-2012/13 the Government will employ3 percent of disabled persons withinits administration;124Afghanistan National Development Strategy (ANDS)

• By end-2012/13 the Government will employ20 percent of women within its administration;• By end-2015 reduce gender disparity inaccess to justice by 50 percent, and completelyby 2020;• By end-2010 the number of treated drugusers will increase by 20 percent;• By 2012/13 pension reforms will be implemented;• By end-2010 an effective system of disasterpreparedness will be in place; by end-2010an effective system of disaster responsewill be in place.Implementation of these strategic objectivesand priority policies will lead to visible progressin implementation of the following majoroutcomes: (i) poverty and vulnerability reduction;(ii) improved social inclusion: (iii) lowerinfant and maternal mortality; (iv) reduction inharmful child labor; (v) reduction in drug demandwithin the country; (vi) improved employment;(vii) reduction in vulnerability tonatural disasters; (viii) improved aid effectiveness.Policy framework: sector strategyFiscally sound and well targeted social protectioninterventions are of critical importance forimproving the poverty outcomes. The Governmentis committed to pursuing sustainableinterventions through social support, pensionsystem and by strengthening disaster preparednessand response. Given the scarce donorand public funds the focus will be put on supportingthe most vulnerable (i.e., the poorest ofthe poor) by allocating adequate resources tothe poorest areas through nationwide targetedprograms and transfers and by phasing outnon-targeted subsidies (such as energy subsidies)and building the planning and administrativecapacity of the MoLSAMD (and otherline ministries) to deliver coordinated programsand improve social protection.The ANDS strategic objectives for the socialprotection sector are to decrease vulnerabilityof large number of Afghans and to help thepoor to climb out of poverty. It is also to empowerthe poor and make their voices heard –to decrease inequality, especially amongwomen, and to enhance social inclusion of theneglected such as minorities and disabled. Theultimate objective is to build a country of socialjustice in line with Islamic values and Afghantraditions. Other important objectives are tosupport economic growth by improving humancapital accumulation; and to support thestability of the country by reducing povertyand increasing social inclusion.To achieve these objectives the Governmentwill pursue the following priority policies: (i)maintain macroeconomic stability, ensure equitablegrowth and increase mobilization of domesticrevenues; (ii) build fiscally sustainablesocial support and pension systems; and (iii)improve disaster preparedness and responsecapacity.Social support: Reform in this area will focuson the following priority policies: (i) to improveefficiency of the public arrangements forsocial risk management; (ii) to diversify marketbased arrangements; (iii) to strengthen informalarrangements; (iv) to improve targeting;(v) to strengthen the capacity and restructurethe MoLSAMD; and (vi) to improve partnershipwith the civil society (NGOs) and enhanceaid coordination.In the future social protection will target twomain groups: the population “at risk” and warsurvivors.Box 7.7. Greater support to poor familieswith small children: Zakat-based taxLimited resources are impediment for moresubstantial support to the poor families withsmall children. Introduction of the Zakatbasedtax and establishment of theAfghanistan Social Protection Fund to attractcharity contributions in line with the Islamicvalues could mobilize significant resourcesto support vulnerable families. Largersupport to poor families with small childrenwould decrease prevalence of underweightchildren and infant mortality. Given this, theMoLSAMD will initiate public debate aboutprospects and modalities for introduction ofthe Zakat-based tax.The population “at risk” includes: (i) chronicallypoor female headed households withsmall children; (ii) children “at risk”(orphans,street working children, children in beggingEconomical and Social Development 125

and exploitative work; children in conflict withlaw; children with mothers in detention; childrenwith severe disability); (iii) poor personswith disability; (iv) victims of violence, such aswomen and children victims of violence, abuseand victims of human trafficking; (v) extremelyvulnerable individuals, including mentally illpersons, and drug addicts, and (vi) unemployed,underemployed and victims of naturaldisaster.The target group of “war survivors” includes:(i) martyr’s families from the previous and ongoingconflict; (ii) disable individuals with warrelated disability, and (iii) civilian victims ofthe ongoing conflict.The civilian victims of the ongoing conflict includesthe following vulnerable groups: (i)families who lost the breadwinner or membersas result of military operations; (ii) familieswho lost their breadwinner or members as resultof suicide bombing that targeted internationalor Government troops; (iii) families thatlost the breadwinner or members as result ofmilitary attack at the international or Governmenttroops; (iv) individuals which becamedisabled as result of military operations; (e)individuals that became disabled as result ofsuicide or military attacks on international orGovernment troops; and (vi) families or individualswhose property was destroyed ordamaged as result of military operations, suicideand military attack at the international andthe Government troops. Social support to thisgroup will be coordinated with the supportfrom the MoD and MoI.Implementation of this will be through the NationalSocial Protection Sector Program andwill consist of: (i) public arrangements; (ii)market-based arrangements; (iii) informal arrangements;and (iv) capacity building. Preliminarycosting of the program indicated thataround $500 million will be required for thenext five years which will need to be metthrough the Core and the External Budgets.Public arrangements to enhance socialsupport reform: Future social support systemswill include most of the existing publicarrangements such as: (i) direct cash payments;(ii) payments in kind; (iii) public works; (iv)skills development; (v) lump sum payments;(vi) support to orphanages; and (vii) land distribution.However, given the insufficient impacton the poor some arrangements like subsidies(for fuel, pensions, and kindergartens)will gradually be eliminated. Support to orphanageswill remain part of the social supportsystem; however, they will be reorganized toprovide day care services for other children “atrisk”.The current cash transfers to the martyr’s familiesand individuals with war related disabilitieswill be integrated into the pension systemand will cease to be part of the social supportsystem. However, this will occur only in themedium term and after completion of pensionreforms. The new direct cash transfers will begradually introduced for the poor disabledwith non-war related disability. The inclusionof the poorest families with small children intodirect cash transfers will depend on mobilizationof domestic revenues and possible introductionof the Zakat-based tax.Payment in kind, through distribution ofhumanitarian assistance, will continue to beused to support higher children’s enrolment inschools (e.g., food for education) and trainingof teachers (e.g., food for training). Accordingto the NRVA 2005 the poorest households havecritically low consumption during winter, especiallyin March. Therefore, a new system ofpayments in kind will be introduced for thepoorest families with small children (winterization).The parcels with basic food and nonfooditems will be distributed through AfghanRed Crescent Society to support the pooresthouseholds in the most difficult period of year.Given the high incidence of rural poverty thenew program will be developed to provide freedistribution of livestock, orchards and tools forfarming helping the poor to diversify agricultureproduction. Both, direct cash transfers andpayments in kind will be made conditional:poor families will have to enroll children inschool and take them to regular health checkups.Given the extent of unemployment, skills developmentwill remain one of the high prioritypublic arrangements in the social support system.However, the terms of reference of theNSDP will be changed to introduce the mostvulnerable as the highest priority group forskills development training. Public works programs,such as NSP, NABDP and NRAP willcontinue to provide job opportunities for thepoor. Moreover, the new public work program126Afghanistan National Development Strategy (ANDS)

to re-forest Afghanistan (i.e., “Greening of Afghanistan”)will be introduced to supply additionaljobs to decrease deforestation of thecountry. All programs will be redesigned toreach the most isolated and remote areas. Inaddition to other public arrangements, targetedland distribution and lump sum payments willcontinue to be used to help the poorest warvictims and victims of natural disaster.Diversification of the market based arrangements:In Afghanistan, market basedarrangements for social protection are dominatedby microfinance schemes. These will befurther developed and strengthened. However,efforts will be made to develop othermarket-based arrangements such as increasingfinancial market literacy and the introductionof community-based insurance schemes. Lossof women’s inheritance entitlements to malerelatives and denial of their property rightsprevents women from using collateral and limitsaccess loans for creating employment opportunities.Therefore, future Government policieswill introduce measures to enforce women’srights to inheritance.Strengthening informal arrangements forsocial risk management: Migration to workin neighboring countries and remitting fundswill remain as a key informal arrangement forthe poor. The Government will ensure thatAfghan migrant workers are not subject toabuse in the countries of their destination. Inthis regard, the Government will conclude internationalagreements with the neighboringand other countries to regulate the rights of theAfghanistan’s migrant workers.Priority measures to provide social include:• Integrate the current direct cash transfers tomartyr’s families and people with disabilitiesinto the pension system;• Develop projects for the distribution oflivestock, orchards and tools for farming;• Develop projects for the distribution offood parcels in winter (winterization);• Develop a new public works program:“Greening of Afghanistan”• Develop mechanisms for distributing directcash entitlements to poor disabled individualswith non-war related disabilitiesand include rehabilitation of the disabledin the BHP in all provinces;• Develop programs for community-basedrehabilitation of drug-addicts;• In cooperation with NGOs implement pilotprojects to support extremely vulnerablegroups which will include options for reintegrationinto families;• Conduct surveys to collect data on civilianvictims of conflict and develop policies tosupport civilian victims;• Conduct reviews of the MoLSAMD andprepare plans for capacity building and restructuring,including the establishment ofthe Child Secretariat within MoLSAMD.Strengthening the capacity and restructuringthe MoLSAMD: Implementation ofeffective social protection reform will requiresignificant capacity building of the MoLSAMD.The main objectives of this will be to improvepolicy/strategy/elaboration of standards ofcare, monitoring, targeting and project preparation/implementationin partnership withNGOs in charge of service delivery; and to increaseabsorption capacity. Enhanced roles ofthe private sector and NGOs in providing theservices will support timely implementation ofthe projects. Finally, developing courses toenable university graduates to obtain qualificationfor social workers will be important forcapacity building.Pension reform: The main objective of pensionreform will be to improve old-age protection(especially for civil servants and military)and establish fiscally sustainable pensionschemes. Priorities will include the enhancementof fiscal sustainability by increasing collectionof the pension contributions, and buildingthe capacity of the Pension DepartmentDesign of the pension reform: Coverage:The future pension system will cover the samegroups of employees that are covered in thecurrent system (civil servants and military personal).The system will remain a defined benefitsystem based on a formula that will take intoaccount age, years of service, and a specifiedaccrual rate. The average benefit for an employeewith 25 years of service will equal 50percent of final pay after Pay and Grading reform.The benefit accrual rate will be 2 percentfor each year of service. This formula will beEconomical and Social Development 127

adjusted to increase equity, reduce cost, andaddress human resource needs of the Government.Pension benefits will be increased in absoluteterms (as a result of Pay and Gradingreform), but reduced as a percentage of lastdrawn pay of an employee. They will beautomatically indexed for increases in cost ofliving to preserve the value of pensions. Employeeswill be eligible for a pension at age 65 ifthey have ten years of service and will be ableto retire at age 55 if they have accumulated 25years of service. In addition to regular pensionsbenefits will be provided to preretirementand post-retirement war survivors.The existing direct cash transfers to martyr’sfamilies and individuals with war related disabilitywill be integrated into the future pensionsystem.Financing and transition: The pension systemwill be self-financed from government andemployee contributions on wages (payroll tax).Direct budget subsidies will be graduallyeliminated. The overall contribution, however,will increase from 11 percent of pay to 16 percentto ensure fiscal sustainability. Around 2percent (of the 16 percent) will be used to fundpost-retirement survivors’ benefits. Both, theGovernment and employees will contribute 8percent of the payroll amount. The employee’scontribution will gradually increase while theGovernment’s will gradually be reduced. Employeesretiring before implementation of thePay and Grading reform will earn pensionbased on the current pension system rules.The implementation of pension reforms willalso be supported through the National SocialProtection Sector Program. The specific componentsof the pension reform will include: (i)budget subsidies to the pensions system (whichwill gradually be eliminated); (ii) capacitybuilding, and (iii) modernization of equipment.Preliminary costing of the funding needs haveidentified the cost of around $150 millionwhich will mainly be covered through the CoreBudget (mainly budget subsidies for paymentsof the pensions which will be eliminated in fiveyears).Priority measures to support implementationof pension reform:• Promulgate pension reform by the Governmentdecree;• Conduct capacity building and training forthe staff and managers of the Pension Department,and develop new IT system andprocesses;• Modernize accounting and internal operationalprocedures in harmony with the ITsystem implementation and improve recordkeeping and processes;• Improve collection of the pension payrolltaxes and establish a central database tostore and process the details on pensionersand their bank accounts; and• Introduce payments of pensions throughbanks in Kabul by mid-2009, and throughoutthe country by end 2010 subject toavailability of banking services.Strengthening the capacity of the PensionDepartment: Employees of the current pensiondepartment, including management, willbe required to go through comprehensive training.The staff will be trained in the use of newautomated systems. Managers will be requiredto acquire new skills in program supervisionand project management. The most significantattribute of the new pension scheme will beintroduction of the payment of pensionsthrough authorized banks.Disaster preparedness: The main objectivesof the sub-sector strategy for disaster preparednesswill be to decrease risks from naturaldisasters and improve disaster preparednessand response with the aim of protecting humanlives, assets, public infrastructure and the environment.This objectives will be achievedthrough implementation of the following prioritypolicies: (i) to strengthen the capacity ofANDMA, not only for coordination and policymaking, but also for implementation of programsand projects; (ii) to strengthen the capacityof line ministries for disaster preparednessand disaster response; (iii) to enhance the provincialand community mechanisms for disasterpreparedness and response; (iv) to improvecoordination within the Government for disasterpreparedness and response; (v) to improveaid coordination in the area of delivering thehumanitarian assistance, and (vi) to addresslong-term needs for rehabilitation.ANDMA: Under existing legislation, theprime responsibility of ANDMA is to coordinatethe Government’s efforts and to provide128Afghanistan National Development Strategy (ANDS)

policy making. However, lack of the responsibilityfor implementation of key projects fordisaster preparedness/response and overrelianceon the line ministries is a weakness.Therefore, the existing legislation will beamended to reflect the need to strengthen theANDMA’s role in implementing key projects.It is important to stress that line ministries willremain responsible for the implementation ofmost projects for disaster preparedness/response.Disaster preparedness will also be supportedby the National Social Protection Sector Programand will include: (i) finalization of riskvulnerability assessments and disaster preparednessplans at the national and sub-nationallevel; (ii) strengthening the capacity and therole of the ANDMA; (iii) establishing the emergencyoperation centers at the provincial leveland regional warehouses; and (iv) modernizationof equipment.Priority measures to support sub-sector strategyfor disaster preparedness:• Amend the legislation to clearly reflect theleading role of the ANDMA in coordinatingthe national efforts but also for implementingof key programs and projects;• Approve annual plans for disaster preparedness,finalize disaster risk analyses andguidelines for disaster response, and developthe provincial disaster managementplans;• Develop standardized operating proceduresfor quick assessment and response,reporting, and for rapid mobilization of internationalassistance;• Establish Emergency Operation Centers atprovincial level, response centers andteams at the regional level and effectiveearly warning systems and develop thecommunity emergency response systemand develop back-up communication systembased on Codan;• Construct 12 regional storage facilities foraid assistance and equipment and improvepublic awareness activities and raise nationalawareness about disaster risks andvulnerabilitiesStrengthening capacity and improvingcoordination: The ANDMA, and to a lesserextent the line ministries, require strong capacitybuilding and equipment modernization.Having rescue equipment, management toolsand operational centers at the provincial levelwill provide the necessary facilities to respondto disasters. Strengthening disaster preparednessand response at the community levelthrough CDCs will be required. Maintainingaccess to modern technology, such as withalarm systems, is important for reducing casualtiesand damages that occur during disasters.Finally, given the existing legal ambiguities, therole of the ANDMA in leading and coordinatingthe national efforts for disaster preparednessand response will need to be clearly definedand this will require adjustment of thecurrent legislative framework.REFUGES, RETURNEES ANDINTERNALLY DISPLACEDPERSONSThe ANDS strategic objective for the Refugee,Returnee and Internally Displaced Persons(IDPs) strategy is to facilitate the planned andvoluntary return of refugees and IDPs and thereintegration of returnees and IDPs into society.This strategy establishes the Governmentsefforts in coordinating and reintegrating refugeesand the IDPs into society. The plannedand voluntary return of refugees and IDPs willcontribute to economic growth, the reductionof poverty and the strengthening of securityand stability of the country and the region.World-wide experience has indicated thatlarge, unplanned, and essentially involuntaryreturns generate a range of negative consequencesas they are managed as emergencyinfluxes.Situation in the sectorMore than five million persons have returnedto their homes since 2002. Yet over three millionAfghan refugees remain in Iran and Pakistan.Several hundred thousand others are presentin former Soviet Union countries (CIS,CAR) and Europe.The majority of those that remain in Pakistan(2.1 million) and Iran (0.9 million) have been inexile for over twenty years remain a seriousconstraint for voluntary repatriation. The presenceof these communities places strains onboth the Government and neighboring countryEconomical and Social Development 129

governments. The desire of the neighboringcountries to engineer large scale return is achallenge to the principle of voluntary repatriation.Experience indicates that such pressureswill not produce sustainable or humane outcomes.This is particularly the case for extremelyvulnerable individuals: unaccompaniedwomen, unaccompanied minors, womenat risk, the elderly, the very poor, those in needof medical care and drug addicted individuals.Economic and social reintegration faces manyconstrains and challenges. Since 2005 repatriationof refugees has slowed down considerably.This is attributable to a number of factors: (i)the deterioration in the security situation; (ii)limited economic opportunities, including employment,upon arrival; (iii) access to housing;(iv) limited access to basic health and educationfacilities; and (v) the length of time in exile.Lower return figures have led to an increase inthe pressures from the neighboring countries tostem the continuing trend of out-migrationfrom Afghanistan. The most visible indicationhas been the deportation of over 350,000 unregisteredAfghans from Iran.It is very probable that high levels of mass andvoluntary repatriation are over. The refugees’long stay in exile, poverty, and dissuasive conditionsin many parts of Afghanistan are likelyto prove difficult obstacles to overcome in future.Internal displacement remains a significantproblem facing the same constrains and challengesas do refugees: (i) ongoing conflict; (ii)natural disasters (drought, floods); and (iii) lackof livelihoods. As a consequence, there are approximately160,000 internally displaced persons,mostly in southern Afghanistan. There isalso evidence of secondary migration of returneesfrom places of origin to cities and back tothe neighboring countries.Further, many of those that return face significanthardships and difficulties re integratinginto life in Afghanistan. Drug abuse and itssocio-economic repercussions on families andcommunities are aggravated by the large numbersof refugees returning. These groups haveoften been exposed to drugs during their stayabroad. The difficulties of economic and socialreintegration also place them at particular riskof drug abuse on their return. Ensuring thatthey do not contribute to drug production orbecome drug uses requires viable and visibleemployment prospects.The sector strategy provides policies for voluntary,planned and sustainable return of therefugees and IDPs that will support stability ofAfghanistan, its economic development andpoverty reduction. The strategic vision of thesector strategy is to provide safe, voluntary,gradual and sustainable reintegration possibilitiesfor all Afghan refugees, returnees and IDPschoosing to return. This vision supports therights of all Afghans to return to their homes,reposes property and enjoy all constitutionaland human rights. Greater attention to protectionof the vulnerable groups among refugeesand IDPs, including children and women is animportant part of this vision.The main strategic objective of the sector is totransition out of a purely refugee and humanitarianframework for managing populationmovements to a more comprehensive set ofpolicy arrangements that, will advance durablesolutions for the remaining 3 million Afghansin the neighboring countries, for returnees, andfor Internally Displaced Persons (IDPs) includingthe most vulnerable populations, andwhich will not rely solely on voluntary returns.Overall strategic goals and objectives have beendivided in three categories:The Government’s expected outcomes from thesector strategy are to:• support the safe, voluntary, an gradual returnof refugees from Pakistan, Iran andelsewhere;• prepare and implement more visible andeffective, sustainable reintegration programsand interventions;• improve social protection and disaster preparedness;• strengthen the management of cross bordermovements and economic migration;• prepare plans to improve the response tointernal displacement crisis; and• give greater attention to the protection ofthe vulnerable groups among refugees andIDPs, including children and women.• improve the facilitation for gradual returnof all Afghans who wish to return voluntarilyfrom Pakistan, Iran and other host130Afghanistan National Development Strategy (ANDS)

countries through policy negotiation andcoordination;• strengthen the Government’s capacity toplan, manage, and assist the reintegrationof returning Afghans and IDPs;• improve the capacity of the Government toplan for and respond to internal displacement;• improve the terms of stay and conditionsfor Afghans in neighboring countries;• make progress towards the implementationof the bilateral agreements on temporarylabor migration; and• improve access to land for the refugee andthe IDP population.Further, the strategy will support the implementationof the following Afghanistan Compactbenchmarks:• By end-2010, all refugees opting to returnand internally displaced persons will beprovided assistance for rehabilitation andintegration in their local communities; theirintegration will be supported by nationaldevelopment programs, particularly in keyareas of return• Afghanistan, its neighbors and countries inthe region will reach agreements to enableAfghanistan to import skilled labor, and toenable Afghans to seek work in the regionand send remittances home.• Human rights monitoring will be carriedout by the Government and independentlyby the AIHRC, and the UN will track theeffectiveness of measures aimed at the protectionof human rights; the AIHRC will besupported in the fulfillment of its objectiveswith regard to monitoring, investigation,protection and promotion of human rights.Depending on the success of the implementationof the ANDS and the specific sector programs,some broad scenarios for the return andreintegration sector could be envisaged for theperiod (2008-13). These assume that currenttrends will be unlikely to deviate dramatically(positively or negatively) from the presentsituation and that therefore there will still be asubstantial number of Afghans remaining outsidetheir country in 2013:• Scenario One: progress towards peace andsecurity, political stability, economic andsocial development improves on currenttrend lines. There are no changes to currentlegal and operational frameworksgoverning repatriation. Support for reintegrationthrough national programs benefitsfrom increased and better targeted investments.Afghans continue to enjoy internationallegal protection as refugees. Internaldisplacement continues as a consequenceof localized conflict. Under these conditions,it may be envisaged that a projectedfigure of between 800,000 and 1,000,000Afghans return home voluntarily and sustainably,predominantly to the west, northand central regions of the country.• Scenario Two: progress towards peace andsecurity, political stability, economic andsocial development follows current trends.The number of Afghans returning outsidethe Tripartite Framework increases as a resultof new measures introduced by theneighboring countries. Support for reintegrationthrough national programs benefitsfrom increased and better targeted investmentsand improved response capabilities.The terms and conditions for registeredAfghans to remain in the neighboringcountries deteriorate. Conflict induced internaldisplacement persists, especially insouthern Afghanistan. Under these conditionsit may be envisaged that a projectedoverall figure of 600,000 – 800,000 returnsvoluntarily or are returned.• Scenario Three: progress towards peaceand security, political stability, economicand social development deteriorate. Thereare no changes to current legal and operationalframeworks governing repatriation.Support for reintegration through nationalprograms benefits from increased and bettertargeted investments but implementationis weak due to poor operating conditions(security). Afghans continue to enjoya measure of international legal protectionas refugees though less than before. Internaldisplacement continues as a consequenceof localized conflict. Under theseconditions, it may be envisaged that a projectedfigure of between 400,000 and600,000 Afghans return home voluntarilyand sustainably, predominantly to thewest, north and central regions of the country.Economical and Social Development 131

The Government will implement the followingpriority policies to achieve the sector objective:• prepare and implement more visible andeffective reintegration programs and interventionsand to improve mechanism fordelivering immediate reintegration assistanceto returning refugees and IDPs;• improve social protection and disaster preparedness;• address concerns of long-staying Afghansthat prefer to remain in exile;• develop broader policy responses to populationmovements;• retain the Tripartite Agreements is an importanttool to ensure policy coordinationand respect for refugee law and humanitarianprinciples;• improve access to land for the refugee andthe IDP population;• improve inter-ministerial coordination; and• improve aid coordination and increase aideffectiveness.Specific activities the Government will undertakeare detailed below.Maintaining frameworks to managerepatriationsWithin the region, the principle legal and operationalframework governing voluntary repatriationis provided by the Tripartite Agreementssigned between Afghanistan, UNHCR,Iran and Pakistan respectively. These agreementsare serviced by regular meetings of TripartiteCommissions at both Ministerial andworking level.The Tripartite Agreement with Iran was renewedfor a further year in February 2007; anextension of the agreement with Pakistan forthree years was signed in August 2007. Afghanistanhas signed similar agreements withDenmark, France, the Netherlands, Norway,the United Kingdom, Sweden and Switzerland.The Government is committed to continueworking with Iran, Pakistan and the UNHCRon the implementation of the Tripartite Agreementand the Tripartite Commission.Specifically, the most important measures to betaken to support implementation of the strategyare to:• fully reflect the principles of voluntary,dignified and gradual return in the Tripartiteagreements between countries of asylum,Afghanistan, and UNHCR;• discuss and agree the annual return planningfigures with the Governments of Pakistanand Iran within the Tri-Partite Commissions;• strengthen the management of cross bordermovements and economic migration; and• promote a national framework and policyguideline for the protection of IDPs as wellas the IDP mapping exercise.The Government’s policy supports the voluntary,planned and sustainable repatriationmovements. At the same time, the Governmentis committed to increasing the overall rateof returns. This requires improving the livelihoodsand welfare opportunities in the country,increasing the attractiveness of the countryto displaced persons.The Government will work to address the constraintsreturnees face on returning, includingincreasing economic opportunities (employment)and social services (health and education).The Government, with support from the internationalcommunity, will develop a range ofpolitical and practical solutions to work withand address the concerns of neighbors on therecent slowing of repatriation rates. This willassist in reducing bilateral tensions on this issue.The retention of the Tripartite Agreements is animportant tool to ensure policy coordinationand respect for refugee law and humanitarianprinciples. Ensuring the voluntariness of returnis critically important in improving sustainabilityand minimizing humanitarian distress.In view of the potential political andhumanitarian consequences of large inducedreturns, and taking into account the need todevelop broader policy responses to populationmovements, future policy actions willbenefit from the active involvement of a widercross section of Government ministries.132Afghanistan National Development Strategy (ANDS)

Provide housing, facilities and socialservices to returneesThe Government will continue to providehousing facilities, land plots and infrastructureto returnees to encourage voluntary returns.Key programs and projects to support implementationof the strategy will be implementedby several line ministries. These projects willsupport the reintegration of the returnees byproviding housing, public services and incomegeneration opportunities. Distribution of landplots to solve the housing problem will remainan important public arrangement. Publicworks programs will provide job opportunitiestogether with skill development training.These projects will be developed, costed andintegrated into the National Budget by the endof 2008.Since 2002 over a million returnees have benefitedfrom a rural housing program implementedin all regions of the country. Approximately170,000 houses have been built.Over 10,000 water points have been constructedin key returnee destinations.A Land Allocation Scheme was launched in2005 to address the needs of landless returneesand IDPs for land for housing. These settlementshave the necessary infrastructure includingschools, clinics, roads, mosques, potablewater, parks and sanitation.Priority has been given to those who have alreadyapplied for land (those that returned between2002 and 2006) and the most vulnerable(for example the disabled and widowed). Presentlyover 520,000 applications have been registered,approximately 100,000 beneficiaries havebeen selected, 23,000 plots have been distributedand 5,500 families have moved intohouses on site.The Government will also increase the provisionof social services available to returnees,refugees and IDPs. These programs include:• providing legal aid and vocational trainingfor Afghan refugees and support to thehost communities in Pakistan;• improving primary and secondary healthcare for Afghan refugees in Mashhad andZahedan, Iran;• enhancing emergency preparedness forIDPs to ensure the timely and necessarysupport is provided to minimize hardshipand suffering; and• providing public works programs willprovide job opportunities together withskill development training.Enhance Government capacity to encouragevoluntary returnsOngoing efforts to increase Government capacityto manage returns will continue. Specifically,the Government will work to:• improve internal Government coordinationmechanisms, intern-ministerial cooperationand capacity for refugee and IDPs return;• enhance policy advice, data collection,analysis, research, knowledge generationand advocacy;• provide policy advice to provincial authorities;• promote a national framework and policyguideline for the protection of IDPs and anIDP mapping exercise;• identify and implement programs and interventionsto support voluntary refugeeand IDPs return;• incorporate IDPs and returnees into developmentand national programs and to providefor a national framework for their protection;• ensure greater access to land for the refugeeand IDP population;• ensure refugees and IDPs have greater accessto microfinance loans; and• improve the capacity of the Ministry forRefugees and Returnees.CONCLUSIONThe sector strategies summarized here identifythe ANDS strategic objectives, principal outputtargets and the projects and programs that willbe required to reach these goals. More detailedsector and ministry strategies are presented inANDS Volume II.The objective of the ANDS with respect to economicand social development is to provideEconomical and Social Development 133

effective support to the mobilization of thecountry’s resources through the private sector,including efficiently providing the neededphysical, legal and commercial infrastructureand institutional frameworks, while taking actionto meet the pressing needs of the poor andmost vulnerable members of the society. Thisstrategy recognizes the need to highlight thelessons learned over the past six years. Thesehave been reflected in common themes that runthroughout the ANDS.The ANDS provides a renewed emphasis onmobilizing private sector investment, both becauseof the limited resources available relativeto the tasks at hand, and also because of themuch greater efficiency evident with privatesector operations compared to either stateowned enterprises, Ministry implementationefforts, and donor funded and implementedactivities. This principle is reflected in most ofthe sector strategies under this pillar. A modelfor these efforts to be considered is what hasbeen accomplished in the telecommunicationssector. Of course, for many reasons, it is easierto establish a good enabling environment andregulatory framework for telecommunicationsservices than it is to bring private investmentinto the development of natural resources, infrastructureand public utilities or even provisionof educational and health care services. Anumber of the approaches set out in the ANDSare either built on enabling private investmentto play a greater role in sectors presently dominatedby state operations (e.g., power, mining)or to carrying out pilot projects to test the potentialfor doing so (e.g., education and commercialagriculture utilizing state owned land).An attempt has been made to create more focusedministries and government agencies.based on well defined mandates, in line withtheir capabilities within the appropriate role ofthe public sector activities, and with mechanismsin place to efficiently monitor and evaluatetheir performance. In some cases, past attemptsto establish the role of government inthe economic and social development process,for state building purposes, left Ministries andgovernment agencies with very broad and unrealisticmandates and objectives.Efforts are also being made to devolve responsibilitiesfor narrower tasks to result-orienteddepartments or authorities, and providing themanagers of these institutions with sufficientauthority to achieve results. Thus, responsibilityfor Urban Development is being devolveddown to Municipalities, where municipal leadersare expected to be more responsive to realisticneeds of their cities and more accountableto their residents for municipal services. Similardevolution of both operational control andresponsibility is at the heart of the NationalSolidarity Program’s efforts to enable CommunityDevelopment Councils implement projectsto the benefit of their communities. Accordingly,independent regulatory authorities willbe established with well defined mandates toencourage private sector investment and put inplace regulatory frameworks needed to assureeffective competition. For example, river basinauthorities will eventually be given greaterautonomy and responsibility for developmentof the five major river basins in the country; aCivil Aviation Authority will be given greaterresponsibility for civil aviation developmentand safety. Various regulatory authorities arealready being given a mandate to create theconditions necessary for attracting private investmentwhile maintaining a competitivemarket place. At the same time, provincial governorsare being given greater responsibility tooversee development activities in their relevantprovinces, to be coordinated by the IndependentDepartment for Local Governance underthe supervision of the President for more efficiency.134Afghanistan National Development Strategy (ANDS)

Table 13.0.1. Cross Cutting Issues in Social and Economic Development PillarSectorAnti-CorruptionGenderCounter-NarcoticsEnvironmentRegionalCooperationCapacityDevelopmentEnergy The high priority onimproved sector governanceand the developmentof improvedprocurement, tenderand contracting processeswill mitigate corruption.By promoting increasedprivate sectorparticipation, internationaloperating standardsand governmentas sector regulator, anew paradigm for sectoroperations can improvetransparency,service quality andcompliance with thelaw..Improved localenergy can reducetraditional women’shousehold burdensthrough efficientstoves, waterpumping and agroprocessingthat alsoimprove women’sand other householdresidents’ (i.e.,young children,older relatives)health conditions.Improved supply ofpower can have an immediateimpact on localcommunities by increasingemployment anddrawing labor frompoppy productionsEnergy as a businessitself– power generation,supply and fuelsupply - can providealternative employmentto those presently withoutoptions for employmentin manycommunities.Improved sector governanceincludes environmentalregulation as wellas meaningful measuresfor enforcement of standards.Emphasis on energy efficiency,renewable energy,and improved cookingfuels will have measurableimpact on improvedenvironmental conditions;The current energy lawprovides for environmentalprotections thatare now being developed.Regional cooperationin the tradeand transmissionof energy productsplays an importantpart in the expansionof powersupplies in Afghanistan.Improved technical, commercial andregulatory skills are essential in all energysub-sectors. This strategy supports(1) the development of vocational trainingfor power and energy sector workersto become familiar with installation,health and safety and monitoring of operations;(2) improved university andother academic training to instill projectfinance, project management, legal skillsand overall commercial capacity; (3) professionaltraining for government officialsto implement important regulatoryand oversight functions; (4) commercialskills to manage and operate the sector.TransportThe strategy provides aframework to improvegovernance in TransportationMinistry.This includes expandingmerit-based selectionand performancebased contracts for keystaff. Penalties for corruptpractices are alsospecified.Government Transportagencies willincrease femaleparticipationthrough additionaltraining and newopportunitiesGreater consultationwith women.Also implement theNational ActionPlan for the Womenof Afghanistan.Support enforcementactivities of the MoI andpolice against narcoticssmuggling. Checkpointsfor narcotics smugglingwill be built into bordercustoms clearance stations,truck pull-offs forpermanent and rovingweigh stations, and urbanbypasses. As civilairports will be securedagainst narcotics smuggling.Environmental impactassessments and managementplans will beprepared and implementedin accordancewith Afghan Law for allworks. Better qualityroads improve the efficiencyof vehicles, reducingper km fuel usage.Fuel and other petroleumproducts must be clean inorder to meet Afghanenvironmental standards.Improved transportationlinkswill significantlyimprove Afghanistan’slinks withregional and internationalmarkets.This willstrengthen Afghanistan’sroleand links with anumber of tradinggroups, includingSAARC, CAREC,SCO and ECOTAA Transportation Training Institute willbe established to boost capacity of sectorministries and institutions. This will helpstrengthen the planning capacity of stafffor all transport modes for feasibilitystudies and infrastructure planning.Capacity will be increased so that Ministrystaff are able to conduct drivers’ licensingtests, vehicle safety inspectionsand enforce traffic flow regulations. Capacitywill also be increased in the CivilAviation Authority in order to take overcontrol of civilian airspace from internationalforcesEconomical and Social Development 135

SectorAnti-CorruptionGenderCounter-NarcoticsEnvironmentRegionalCooperationCapacityDevelopmentWater ResourceManagementAdoption of aRiver Basin administrativestructureshould decentralizetraditionalmechanismswhich havebeen prone tofoster corruption.Access to cleanwater and improvedsanitationfacilities will improvehealth inhouseholds,thereby benefitingall householdmembers but particularlywomenwho often are caretakersand whoface threats tohealth during childbirth.Implementing strong waterstrategy programs havingextensive user participationshould infuse effective antinarcoticssentiments into thepopulace.Control of water allocationscould be sued to discouragethe poppy cultivation andencourage production ofother high value crops.Environment Law establishes aframework for the conservationand productive use of naturalresources, including water,granting enforcement and permittingrights to the governmentto be implementedthrough NEPA.Water sector strategy programsand the sector’s institutionalstructure will be used to supportenvironmental policies,regulations and laws.Since water resourcesrequire the rationalizationof use by differentcountries, regionalcooperation is requiredfor effectivemanagement of waterresources shared bydifferent countries. Itis an important factorin developing effectivemanagement of severalkey river basins.Water sector capacitybuilding programs areessentially targeted at thethree principal developmentcomponents: Institutional,organizational,and individual. And,each component is furthersub-dividedamongst various relevantsub sectors comprisingwater resources management,rural and urbanwater supply, and irrigation.Information andCommunicationsTechnology(ICT)E-Governanceand other E-Enabled serviceswill reduce thescope for corruptionbecause itprovides betterrecord sand moreinformationMobile and Electroniccommercewill make it possiblefor women towork at home andbe commerciallyviable without offendingculturalsensitivities.Better comm-unicationsWill improve enforcementand detectionTelephone services and theinternet reduce the need forphysical travel. It reduces congestioncosts and pollution fromvehicles. Emissions.Better communicationsassists regionalcooperationCommunications is at theforefront of skills development.It encouragescomputer literacy whichis a key capacity constraintin Afghanistan.Because it is based onEnglish, it encourageskey language skills.UrbanDevelopmentMore effectivescrutiny of tenderingfor public sectorprojectsMonitoring ofsources of financefor private urbandevelopment,where appropriate.Women will benefitfrom improvedliving conditions asa result of upgrading.Improved livingconditions couldenhance levels offemale education.Women could enjoyaccess to hous-Contributions could bemade to demand-reductionthrough sustainable employmentand vocationaltraining.Introduction of an environmentalfocus in planning processesand new regulatoryframeworks, to cover water/wastemanagement, pollutioncontrol, etc.Enforcement of environmentalimpact assessments for all urbanprojectsFocus on the specificsituation of frontiercities, including Herat,Mazar, Jalalabad.Take account of thepotential for regionalbusiness in developmentof new cities.There could be RC forurban planning?The strategy includes astrong focus on reformand strengthening of keyurban institutions, bothat the central and regionallevel, as a preconditionof effective urbangovernance.136Afghanistan National Development Strategy (ANDS)

SectorAnti-CorruptionGendering finance andeconomic developmentinitiatives.Counter-NarcoticsEnvironmentRegionalCooperationCapacityDevelopmentMiningThere will be improvedsectorgovernance aimedat increased legitimateprivateinvestment.Reforms includeimproved tenderand contractingfunctions of Government,anddrafting of fundamentallegaland regulatorydocuments, andalso include theestablishment oflegal, financialand monitoringinstitutions.Roles and responsibilitiesof femaleprofessionals ingovernment will beenhanced.There have beenvirtually nowomen enteringthe sector in recentyears. A targetedinitiative for“Women in Mining”to improvefemale employmentwill be supportedMining will be an alternativesource of employmentin some poppy growingregions in the South.Inspectorate and Cadastre to beestablished at the MinistryMines.This includes environmentalinspection and regulation.Regulations will be specificallydrafted that address environmentalrequirements for publicand private investment.There is already considerablecross-bordertrade in this sector.Opportunities to formalizethese arrangementsand enhancegovernment revenuesexist.Government will consideropportunities towork with cross-bordercountries where improvedtransport (i.e.,select light rail) andinfrastructure mayhave mutual benefit.The Ministry proposescapacity building for itsstaff members.Capacity building will berequired to implementthe hydrocarbon andmineral legislation, andbidding and tenderingprocesses, including tenderevaluation.Economical and Social Development 137

SectorAnti-CorruptionGenderCounter-NarcoticsEnvironmentRegionalCooperationCapacityDevelopmentEducationThis issue has beenaddressed with institutionalstrengtheningprograms in all Ministries.There are alsoimproved accountingprocedures and supportwith procurementthat will lower theprobability of corruption.The strategy reducesbarriers forwomen to enter theeducation sectorboth as studentsand teaching staff.There will be specificcounter narcoticsprogramsintroduced intoprimary and secondaryschool curricula.In addition an antinarcotics messagewill be built intothe sports programEnvironmental issueswill be incorporatedinto the primaryand secondarycurriculumThe education system isregionally dispersed. Theprimary and secondarystrategy has a component tosupport remote and disadvantagecommunities.The universities both in Kabuland in the provinces areto be considerably upgraded,and each universitywill be supported by a recognizedexternal university.Lack of capacity development inthe past has resulted in a failureto spend allocated funds.An inter-ministerial committeewith the education Ministries andMinistry of Finance has been establishedto solve this problem.Capacity building projects havebeen included in MoE ad MoHE.Culture, MediaandYouthThere will be institutionalstrengtheningprogram at the Ministry.As part of this, an internalaudit departmentand a computing departmentwill be establishedand there will bea review of securityprocedures.Legal and diplomaticefforts to retrieve missingartifacts will also bemadeGender will be acore issue coveredin all state ownedmedia.The Ministry willwork closely withthe Ministry ofCounter Narcoticsand seek advicefrom them aboutthe incorporationof an anti drugsmessage in allforms of media.The National YouthProgram, throughall its componentswill promote adrug-free society.Preservation andrehabilitation of historicalsites and artifactsmakes an importantcontributionto the environment.Under the YouthProgram, youth willbe encouraged tobecome invoved inenvironmental programsTourism, culture and mediacan be further developedthrough an effective andfruitful cooperation withregional partners.Regional cooperation canalso support and ensure theefforts of MoIC by strengtheningthe legal frameworkand the enforcement of thelaw in relation to archaeologicalsites to stop illicittraffic at the borders, andawareness-raising at boththe national and the internationallevel.The major capacity weakness isthe lack of qualified staff at theMinistry.The Ministry requires a computerdepartment with trained staff,software and hardware, an internalaudit department with accountancyskills, and officialswith legal skills to deal with draftinglegislation and retrieval ofartifacts138Afghanistan National Development Strategy (ANDS)

SectorAnti-CorruptionGenderCounter-NarcoticsEnvironmentRegionalCooperationCapacityDevelopmentAgriculture andRuralDevelopmentAll programs withinthe Sector Strategyemphasize accountabilityand transparencyLocal governance programsreduce corruption,since the act ofcommunity ownershipand participationpromotes a sense ofobligation and accountabilitywhich iscontinually reinforcedthrough all functionsof project management.The focus on communitylevel developmentpromotesgender mainstreamingand genderbalanceddevelopmentStrategy is designedto ensure that womenhave communityrepresentation and topromote gendersensitivedevelopmentplanning, implementationandmonitoring of all projects.Involvement in income-producingactivities.Skills developmentand other capacitybuilding programswill contribute furtherto both women’sempowerment andincreasing householdincome levels.The Sector Strategyfocuses on providingviable incomegeneratingalternativesby raising theprofitability of licitcrops, promotingmarket linkages andcreating off-farmemployment.Rural communitiesare closely knit.Those communitiesisolated from governmentare moreprone to grow poppyand other illicitcrops. Those benefitingfrom integratedrural developmentprograms are lesslikely to grow poppy.Improved governancecan influenceentrenched attitudesand is therefore vitalto the enabling environmentto tackledrugs production.The Governmentwill provide capacitydevelopmentto assistcommunities tobe able to managetheir natural resourcesand implementprojectsbased on sustainableuse.Government iscurrently developingthe regulatoryenvironmentin such areas asenvironmentalimpact assessments,protectedareas managementand complianceand enforcement.Strategy is to develop institutionallinkages in the areasof collaborative research,technology transfers andtraining/skills enhancement,and the exchange ofscientific information withregard to Afghanistan’s disasterpreparedness program.AREDP will require a highlevel of regional interaction,particularly in the area ofcurrent imports and potentialfuture exports.Afghanistan’s membershipin the South Asian Associationfor Regional Cooperation(SAARC) willoperationalize a RegionalFood Security Reserve andproposed Regional FoodBankThe Center on IntegratedRural Development for Asiaand the Pacific (CIRDAP) isa regional intergovernmentalautonomous organizationestablished for the promotionof integrated rural developmentin the region.Capacity development is an integralpart of the ARD Sector Strategy.In addition to internal capacitybuilding and institutional reformboth at the central and locallevels, every program interventionin agriculture and rural developmenthas a significant capacitydevelopment component.Economical and Social Development 139

SectorAnti-CorruptionGenderCounter-NarcoticsEnvironmentRegionalCooperationCapacityDevelopmentHealth & NutritionStrategic actions relatedto anticorruptioninclude:Establish Health ServiceOmbudsmen unitas a fully autonomousentity.Promote publicawareness campaignrelated to the HealthService OmbudsmenRaise professionalstandards in keyMoPH entitiesPromote Civil ServiceCommission Code ofConductEstablish permanentMoPH transparencyworking group.The Basic Package ofHealth Services is aimedat women and children.The MoPH has placedemphasis on having femalehealth staff employedat every healthfacility.Increasednumber of qualified femalehealth workers atlocal facilitiesIncrease awareness ofgender and health andrights, raising women’sdecision-making role inrelation to health seekingpractices.Ensuring that womenhave equal employmentopportunities within theSectorMonitor equity issues.The MoPH is theline Government ofAfghanistan agencywith primary responsibilityfor deliveryof treatmentand rehabilitationservices to drugusers throughoutAfghanistan andimplementation ofHIV preventionprograms.Strategic actionsrelated to counternarcoticsincludethe: implementationof the NationalDrug Control Strategy;and implementationof theCounter-NarcoticsImplementationPlan.Environmental health,including water andsanitation, indoor andoutdoor air quality andproper housing is animportant pillar ofpublic health.Strategic actions relatedto the environmentinclude the: enforcementof existinglaws, by-laws andregulations; strengtheninghuman resourceexpertise in the field ofenvironmental protection;raising awarenessof environmental issueswith the public;formulating a NationalEnvironmental ActionPlan for Afghanistan;and monitoring theprogress toward theachievement of a cleanand safe environment.Afghanistan is fully committedto the implementationof International HealthRegulations 2005, throughwhich the MoPH is responsiblefor detecting, reportingand responding to allpublic health emergenciesof international concern.Afghanistan has increasinglybecome a full participantin health activities inthe South Asia region andits role in international organizations,includingWHO and UNICEF, hasstrengthened over the pastfew years.Strategic actions include:implementing the KabulDeclaration on RegionalCollaboration in Health;and fostering a strongerpartnership with Iran andPakistan that will provide aplatform for dialogue andensure joint actions for addressingcritical crossborderhealth issues.The strategy provides aframework for increasingthe capacity of staff in thesector to better deliverhealth and nutrition services.Strategic actions include:undertaking a TrainingNeeds Assessment ofMoPH staff; building thecore skills of MoPH staff inEnglish, report writing,basic computer skills, basicmanagement and introductorypublic health; establishingdifferent levels oftraining courses suited tothe Afghan situation; improvingthe coordinationbetween MoPH and itspartners in the implementationand revision of theMoPH training plan; anddetermining the unmettraining needs based on thejob description of the employees140Afghanistan National Development Strategy (ANDS)

SectorSocialProtectionAnti‐Corruptionto improvemanagementof the directcash transfersand eliminateirregularitiesto ensure thatdistribution ofthe land plotswill be free ofcorruptionGender Equality Counter‐Narcotics Environment Regional Cooperation Capacity Buildingto introduce benefits forchronically poor femaleheaded households, victimsof violence and other categoriesof women “at risk”to improve legislation toensure women’s rights toinheritto improve “Food for Scholl”programs to increase primaryschool enrolment ofgirlsto introduce free legal advisebenefit for women “atrisk” and improve women’saccess to justiceto improve treatmentof the drugaddictsto improve rehabilitationof drug addictsand their accessto education, skilldevelopment andjob opportunitiesto contribute to reductionin domesticdrug demand andpoppy cultivation byimproving the socialsupport systemto prepare andimplement newpublic work program(Greening ofAfghanistan) toreduce deforestationof thecountry and mitigateenvironmentriskto support implementationof the SAARC’sSocial Protection Chartto establish the NationalCoordinationCommittee in line withthe SAARC’s recommendationsto improve MoLSAMD’s capacity forvulnerability analysis, targeting andproject preparation and implementationTo improve the capacity of the PensionDepartment for implementation of thepension reformTo improve ANDMA’s capacity for coordinatingthe disaster preparednessprocess within the Government, withsub‐national level and with donors andhumanitarian agenciesTo modernize ANDAMA’s equipmentand build regional warehousesEconomical and Social Development 141

SectorAnti‐CorruptionGenderCounter‐NarcoticsEnvironmentRegionalCooperationCapacityDevelopmentRefugee,Returnee &IDP’sIn the design ofreintegrationprogram componentssuch asland allocation,shelter and housing,attention willbe paid to anticorruptionmeasuresby providingfull transparencyon beneficiaryselection processes.Special attentionwill be paid toprotect children,women and theelderly duringthe return process.To improve rehabilitationandreintegrationinto societylarge number ofdrug users willbe among thereturnees.Environmental issues will meritgreater focus, especially in view ofthe additional strains on urbanand municipal infrastructure andservices occasioned by possiblereturn of further 3 million personswhich will put additional pressureon natural resources;As the refugee return increases,the Government will need to payparticular attention to the potentialfor conflicts over land andaccess to natural resources (land,pasture, water, forests) especiallyin ethnically mixed provincesThe Government will aimto conclude and implementregional and bilateralagreement on populationmovements andmigration;Plan to better communicateto the neighboringcountries the Governmentpolicies and programsfor repatriation ofthe refugeesThe capacity for Inter‐ministerialcooperation will need to be improved.The refugee return is notresponsibility of MoRR only.Capacity for program preparationand implementation will also needto be improved, especially for immediateresponse to IDPs crisis.The draw down of funds from Ministryof Finance has been slow. Aprogram/project implementationunit (PIU) has been establishedwithin MORR to assist with the LandAllocation Scheme.PrivateSectorDevelopment142Removal of nuisanceprocedures,licensesand taxes willreduce corruption.Making administrationmorepredictable sothat laws are followedand administrativediscretionis reducedwill also help..Economicgrowth will providea strongbase for increasingdemand forfemale laborand increasingtheir role in allaspects of theeconomic life ofthe country.Also programsthat will providewomen withgreater accessto training andcredit facilitiesand will encouragethe womenownedand operatedbusinesses.Increased demandfor laborand increasedinvestment opportunitiesinlegal private sectoractivity providesan alternativeto the incomesthey arenow making inthe illicit narcoticstrade.Afghanistan National Development Strategy (ANDS)Increased formalization of firmsincreases the likelihood that environmentalregulations are adheredto.Efforts at developingcloser regional cooperationwith neighboringcountries will help expandmarkets for theprivate sector and contributeto the success ofthe private sector developmentstrategy.Open domestic marketswith a strong privatesector will further increaseintegration astrade, transport, communicationand otherlinks are made withneighboring countries.Government, donors, the privatesector and NGOs will provide additionalsupport to increase the skillsof the Afghan workforce. This willhelp assist both government andthe private sector.

CHAPTER 8CROSS-CUTTING ISSUESThe ANDS has pursued a proactive policy withregard to the treatment of cross-cutting issues.In terms of importance, Government viewscross-cutting issues as being of equal significanceto the sector strategies themselves. TheGovernment recognizes the development visionof the ANDS cannot be met without addressingthe presence of large scale illegal narcoticsactivities, high levels of corruption, genderinequity, limited public and private capacities,a degraded environment and weak regionalcooperation. For this reason, the Governmenthas fully integrated six crosscuttingissues into the ANDS: (i) regional cooperation;(ii) counter-narcotics; (iii) anti-corruption; (iv)gender equality; (v) capacity building; and (vi)environmental management. The strategic objectivesand mainstreaming of the outcomes ofthese six issues are outlined below.REGIONAL COOPERATIONBackground and contextThe strategic vision of regional cooperation isto contribute to regional stability and prosperity,and to enhance the conditions for Afghanistanto resume its central role as a land bridgebetween Central Asia and South Asia, and theMiddle East and the Far East, as the best way ofbenefiting from increased trade and export opportunities.The reestablishment of trade allows for the reconnectionof Central Asia with South Asia,and also the development of potentially importanttrade links between China and the MiddleEast and Europe. This will contribute substantiallyto the economic growth and integrationof the countries in the region and foster cooperationon mutual interests. Access to Chinesemarkets and its rapidly developing businesshub of Urumqi has expanded with the completionof a bridge at the border with Tajikistan.The central goal of the Regional Cooperationissue is to contribute to regional stability andprosperity, and to enhance the conditions forAfghanistan to resume its central role as a landbridge between Central Asia and South Asia,and the Middle East and the Far East, as thebest way of benefiting from increased tradeand export opportunities.Strategic outcomes are detailed below.• Enhanced regional cooperation providesAfghanistan an opportunity to connectland locked energy rich Central Asia withwarm water ports and energy deficientSouth Asia. As a result of this expandedtrade Afghanistan would be able to meetpart of its energy demand.• As a transit country, Afghanistan will realizeincreased revenue and enhanced economicactivity, enabling it to better meet itsmain development challenges.• The removal of trade impediments andlower trade barriers will create a freer marketand enhance the flow of goods, services,investment, and technology andsupport Afghan economic development.• Regional cooperation facilitates harmonizationof standards and regulations to enhancecross border initiatives, such asgreater regional trade and investment, theexploitation of common resources of hydro-power,hydrocarbons, infrastructuredevelopment, and social development.• Improved border management and customscooperation at regional level increasessecurity and helps to fight organized crossbordercrime such as trafficking in armsand drugs.144Afghanistan National Development Strategy (ANDS)

• Improved access for women to wider politicaland economical participation at nationaland regional levels.• Improved economic conditions for facilitatingthe return of refugees and reduce migration.Implementation frameworkThe re-establishment of Afghanistan as a majortrading hub at the heart of Asia will require thesupport of the key international players,namely the U.S., E.U., and the big economies ofSouth Asia and the Far East. Since early 2002,Afghanistan has signed at least 21 agreementsin trade, transit, transport and investment withcountries and organization in the region. TheDecember 2002 Kabul Conference on GoodNeighborly Relations, the December 2005 RegionalEconomic Cooperation Conference, heldin Kabul, and its subsequent follow up conferencesin New Delhi, and the more recent Pak-Afghan Regional Peace Jirga, held in Kabul on9-12 August 2007, are all important regionalinitiatives.Efforts to strengthen regional cooperation arebased on mutual benefit. Improving bilateral,regional and international trade relationships,for example, benefits all countries involved.Likewise, improving security benefits all countries.Part of the Government’s efforts will beto work with regional partners on implementingpractical project based activities. This includesand emphasis on increasing the transferof knowledge with regional partners. Increasingthe human interaction between Afghanistanand it’s neighbors, at the government, diplomatic,social and local level will lead to improvedrelationships.The Government is implementing a multifacetedPro-active Regional Diplomacy Program(PRDP). The PRDP will encompass security,political, economic and social aspects.Under the PRDP, the Government, throughrelevant Ministries, will commit the necessaryhuman and technical resources towards regionalcooperation capacity building programs,including the mobilization of Afghan Missionsin the regional countriesImproving security, governance, justice and therule of law continue to remain a central focus ofthe Government’s reform efforts. The Declarationof the cross-border Pak-Afghan RegionalPeace Jirga, , recommends further expansion ofeconomic, social, and cultural relations betweenthe two countries. It identifies the implementationof infrastructure, economic andsocial sector projects in the affected areas (inthe south-east) as a key part of bringing securityto the country. There is still some tensionstill prevalent in the region but the Governmentgives the highest priority to the developmentof projects to strengthen regional cooperation.In security, the Government will seekbetter intelligence sharing and cooperation incounter terrorism measures.From late 2002, the Government has adopted apolicy of joining effective regional groupings.Afghanistan is now the only country enjoyingmembership or affiliation of all the major regionaleconomic groupings of the surroundingregion. In addition to the Government’s ongoingefforts to accede to the World Trade Organization(WTO), it is also actively pursuingthe expansion of bilateral and regional tradeagreements with the countries of the region.While Afghanistan already has in place bilateraltrade agreements with India and Pakistan,the two largest members of the South Asia Associationfor Regional Cooperation (SAARC),there is considerable scope to increase tradewith South Asia now that Afghanistan has becomea full member of SAARC in April 2007.Since November 2005, Afghanistan has beenserving on the Contact Group of the ShanghaiCooperation Organization (SCO). In April2003, Afghanistan became a Partner of the Organizationfor Security and Cooperation inEurope (OSCE). Afghanistan also attended theSpecial session of the Regional AdvisoryCommittee of the United Nations Program forthe Economies of Central Asia (SPECA), held inAstana on 27 May 2005.Afghanistan is a signatory to a number of regionalconsultative processes that focus on developingframeworks to manage migration.The Government continues to make all possibleefforts to integrate politically, socially and economicallywith its regional neighbors.Cross-Cutting Issues 145

COUNTER NARCOTICSBackground and contextThe continuing expansion of the narcotics industryrepresents the single greatest threat toAfghanistan’s stability, especially since the narcoticstrade is inextricably linked to insecurityand terrorist activities. According to theUnited Nations Office on Drugs and Crime(UNODC) Afghanistan Opium Survey 2007,the cultivation of poppy in the country brokeall records in 2007 and the trend is likely tocontinue in 2008. The number of domesticdrug users in Afghanistan has also increasedsignificantly and illicit drugs and the corruptionsurrounding it is threatening to destroy thenext generation of Afghan youth. The explosivegrowth of poppy production has takenplace in five southern provinces. In the other29 provinces, poppy production has been cut inhalf over the past four years.In 2006 the Government adopted the NationalDrug Control Strategy (NDCS) that remains theoverall policy and strategy for CN activitiesand the Government is moving immediately toaccelerate and improve strategy implementationthrough:• Provision of force protection for eradicationin targeted areas;• Restructure and reform of the Counter-Narcotics Trust Fund (CNTF)• Provincial based planning for CN policyimplementation based on the ProvincialDevelopment Plans;• Expansion and effective delivery of programsto promote licit development, includingeconomic support for licit cashcrops and rural industries;• Strengthening of justice, other legal institutionsand interdiction efforts;• Further strengthening of cross-border, regional,and international cooperation forCN activities; and,• Mainstreaming CN into all governmentpolicies.Counter Narcotics is a core crosscutting issue inthe ANDS and will be the responsibility of allsectors; while the MCN will take the leadershiprole. The goal is to ensure a rapid and sustainabledecrease in cultivation, production, traffickingand consumption of illicit drugs with aview to complete and sustainable eliminationof narcotics by providing a conducive developmentenvironment and opportunities whiletaking requisite direct action. Progress will bemeasured against four priorities set out inNDCS to: (i) disrupt the drugs trade; (ii)strengthen and diversify legal rural livelihoods;(iii) reduce the demand for illicit drugs andexpand the treatment of drug users; and (iv)strengthen state institutions both at centre andin the provinces.Implementation frameworkThe implementation of the strategy will rely ona provincial based approach to counternarcotics,which will provide the provincesrequisite responsibility for developing counternarcotics action-plans aligned with the ProvincialDevelopment Plans (PDPs). Governorswill be consulted in developing local CN implementationplans ultimately consolidatedand prioritized into a national implementationplan. The Governors will coordinate the localplanning process involving line departments,international organizations, districts, andcommunities. At the national level the Ministryof Counter Narcotics, in conjunction withprovincial Governors, line ministries, the IDLG,and ANDS must help identify provincial CNpriorities and support the design of comprehensiveprovincial counter narcotics plans inline with Provincial Development Plans (PDPs)within the framework of the national budget.The Government will increase its eradicationefforts. The JCMB has established a goal oferadicating 50,000 ha of the opium cultivationin 2008. A robust system of eradication will beintroduced together with state capacity, minimizingthe level of corruption and improvingthe access of the eradication teams to less secureareas. As the NDCS states that “targetedand verified eradication will be carried outwhere access to alternative livelihoods is available,”targeting will be made more accuratethrough mechanisms to monitor and evaluatethe availability of alternative development.Articles 52 and 54 of the Law on Drug Controlas well as chapter 3 of the NDCS articulate theroles and responsibilities of ministries for implementingcounter narcotics activities. Pro-146Afghanistan National Development Strategy (ANDS)

vincial-based planning will identify furtherroles line ministries and other organizations.NDCS Chapter 3 also specifies, by the eightpillars, the ministries and organizations thatare expected to be involved in the evaluationand implementation of CN plans. The Governmentwill mitigate weaknesses in the ministries,agencies and provinces charged with implementingthe CN plans by drawing on theresources of international donors and contractingexpert staff. The other key institutionalcapacity that needs to be addressed by the internationalcommunity is the lack of sufficientCN expertise. The international communitywill be asked to provide sustained CN specifictechnical assistance to Afghan counterparts.The new NDCS implementation plan has toinclude a commitment by the internationalcommunity to fund and support efforts to:• Integrate CN into operations ofISAF/NATO (this is suggested but will requiredto be dealt with in a combined aswell as bilateral manner in considerationwith the the individual partners capacityand sensitivity);• Adequate financing of CNTF and adjustalternative development programs to thepriorities of PDPs, subject to reform andimproved functioning;• Increase funding of the Good PerformanceInitiative;• Prevent the import of precursors into Afghanistan;• Create markets for Afghan productsthrough trade preferences and investmentin infrastructure for export;• Arrest and prosecute international drugdealers/traffickers;• Procure supplies and services for internationalmilitary forces and organization inAfghanistan from Afghan sources, as envisagedin the “Afghan First” policy;• Improve intelligence sharing on counternarcoticsactivities;• Provide large scale assistance to follow uperadication and reduction in cultivation;• Production and market development programsfor cash crops in certain areas; and,• Reduce global demand for illicit drugs.ANTI-CORRUPTIONBackground and contextCorruption, the misuse of public office for privategain, undermines the authority and accountabilityof the Government, lessening publictrust and reducing the legitimacy of stateinstitutions. Corruption is a significant andgrowing problem in Afghanistan. According toone of the most widely-used international indexes,‘Worldwide Governance Indicators,1996-2006 published by the World Bank Institute(2007), Afghanistan is close to the bottomamong the 212 countries in terms of its abilityto control corruption – ranking in lowest percentilealongside Bangladesh, Somalia andZimbabwe.The Government is fully committed to controllingcorruption, promoting transparency andaccountability through establishing new andeffective preventative mechanisms and implementingthe Afghanistan Compact Anti-Corruption Benchmarks. The chronic povertyconditions in Afghanistan are seen as naturalbreeding grounds for systemic corruption dueto social and income inequalities and perverseeconomic incentives. A key ANDS strategicobjective is to establish a state administrationthat operates with integrity and accountabilityto provide an enabling environment for economicand social development, based upon therule of law, impartiality in political decisionmaking,the proper management of public resources,the provision of efficient administrativesystems and the active engagement of civilsociety.The National Anti-Corruption Strategy andRoadmap developed as part of the ANDS willbe implemented in support of the followingstrategic aims: (i) enhancing Government anticorruptioncommitment and leadership; (ii)raising awareness of corruption and evaluatingthe effectiveness of anti-corruption measures;(iii) mainstreaming anti corruption into Governmentreforms and national development;(iv) strengthening the enforcement of anticorruptionaimed to strengthen the legalframework for anti-corruption and build a coherentand fully capacitated system of enforcementinstitutions required to support theeffective implementation of the UNCAC; (v)reinforcing counter-narcotics integrity; (vi) re-Cross-Cutting Issues 147

inforcing the integrity of public and businesssector relationships; and, (vii) increasing politicalaccountability.Implementation frameworkThe mainstreaming process will be driven primarilyby the three complementary and interdependentareas of public administration, financialmanagement and legal reform:• Improving Public Sector Management:aimed at the creation and consolidation ofa motivated, knowledgeable, skilled, efficientand effective public service.• Strengthening Public Accountability:aimed at increasing the transparency andaccountability of procedures and controlsfor the management of public resourcesand thereby deterring corrupt practices, orincreasing the likelihood of detection ofthose practices and generating systemicimprovement to prevent their future reoccurrence.• Reinforcing the Legal Framework andJudicial System: aimed at ensuring thecomprehensiveness and robustness of thelegal and regulatory framework in order tosupport activities and measures of Afghanistan’santi corruption institutions andmeasures.The anti-corruption mainstreaming processwill be applied jointly with the security sectorstrategy and the economic and social developmentsector strategies to guide their completionin order to ensure that anti-corruption measuresare explicitly included and implicitly reflectedin their development proposals. Implementationwill draw upon the diagnosticefforts for institutional arrangements for combatingcorruption concluded by UNDP’s Accountabilityand Transparency project. Howeverthe key partner institutions on anticorruptionare the ministries and agencies withresponsibilities for delivering the Government’sreform agenda comprising:• The IARCSC, responsible for the Government-widePAR program, directed at improvingpublic service management andpublic service delivery by addressing administrativestructures and systems; humanresource management policies, proceduresand practices and institutional capacitybuilding.• The Control and Audit Office and the Ministryof Finance, responsible for strengtheningthe Government’s financial control systemsand practices.• The Ministry of Justice and Supreme Court,responsible for strengthening the legislativeframework and improving the efficiencyand effectiveness of the justice andrule of law sector.• The AGO, the GIAAC, and Ministry of Interiorresponsible for policinganti-corruption measures via inspectionand investigation of corrupt practices in thepublic and private sectors.• The AIHRC and the National Assemblyrepresentative oversight bodies such as theNational Assembly and Provincial Councils,responsible for promoting links betweencivil society and the political decision-makingprocesses.The Government is firmly committed to fullyand effectively implementing these anticorruptionmeasures.GENDER EQUITYBackground and contextThe Gender Equity Cross Cutting Strategy isthe basis for the ANDS to address and reversewomen’s historical disadvantage. The strategyprovides a roadmap for various sectors to bringabout changes in women’s position in society,their socio-economic condition and access todevelopment opportunities. This strategy is anoverarching framework that synthesizes thecritical measures to be pursued through allANDS sectors to fulfill the Government’scommitments to women’s development as embodiedin the Constitution, Afghanistan MDGs,Afghanistan Compact, I-ANDS, and internationaltreaties such as the Convention on theElimination of all forms of Discriminationagainst Women (CEDAW) and the Beijing Platformfor Action (BPFA).The ultimate goal is ‘gender equality’; a conditionwhere women and men fully enjoy theirrights, equally contribute to and enjoy thebenefits of development and neither is pre-148Afghanistan National Development Strategy (ANDS)

vented from pursuing what is fair, good andnecessary to live a full and satisfying life, Threeimmediate goals have been prioritized, namely:(i) to attain the 13 gender-specific benchmarksof the Afghanistan Compact/I-ANDS, includingthe five-year priorities of NAPWA; (ii) torealize the gender commitments that are mainstreamedin each of the ANDS sectors; and (iii)to develop basic institutional capacities of ministriesand government agencies on gendermainstreaming. 57This strategy targets three main outcomes:• a significant number of government entitiesembracing and implementing genderequity efforts, as indicated by gender sensitivepolicies, strategies, budgets and programs;increased expenditures on genderequity; increasing number of ministrieswith functional gender equity-promotingmechanisms and technically capable professionals;and indicators that will beagreed upon for Gender Equity in theANDS;• measurable improvements in women’sstatus as evidenced by reduced illiteracy;higher net enrollment ratio; control overincome; equal wages for equal work; lowermaternal mortality; increasing leadershipand participation in all spheres of life;greater economic opportunities and accessto and control over productive assets andincome; adequate access to justice systemsthat are gender sensitive; and reduced vulnerabilityto violence in public and domesticspheres; and• greater social acceptance of gender equalityas manifested in support for women’s participationin public affairs, increased appreciationof the value of women and girls’education, increasing number of influentialmen and institutions promoting genderequity; and participation of women in policydiscussions.Implementation frameworkThe implementation of strategy for gender equityis a shared responsibility among govern-57 Constraints and challenges have been addressed in detail insector strategy paper as well as the NAPWA.ment entities at the national and sub-nationallevels. MoWA’s status as lead ministry forwomen’s advancement will be maintained andstrengthened. All government entities will:(i) foster a work environment that supportsegalitarian relationships between women andmen; (ii) establish internal enabling mechanismsfor gender equity; and (iii) supportwomen’s shuras. ANDS consultative andworking groups will be provided with capacityto pursue gender mainstreaming. Gender capacitiesof sector professionals will be strengthenedand Gender Studies Institutes will be establishedin selected universities beginningwith Kabul University. The informal networkof gender advisers will be tapped for a ‘gendermentoring program’ that will transfer genderexpertise to nationals. A technical supportprogram for women managers in the civil servicewill also be created. Local chief executivesare mandated to ensure that gender equitytheme is incorporated into the local developmentplan and into the overall work of the localgovernment. Pilot provinces on gender mainstreamingwill be developed. DOWAs willbuild a network of gender advocates and theircapacity to oversee sub-national gender mainstreamingwill be strengthened.International organizations are encouraged toadopt gender equity in their development cooperationand technical assistance and directlysupport ministries in implementing genderequity strategy. The NGO Coordination Councilwill be strengthened as a major link of governmentto the NGO community in promotinggender equity. NGOs will be encouraged totarget women as project participants and beneficiariesand to increase the participation ofwomen in the management of their organizations.An advocacy and public communicationstrategy that will transform negative perceptionsand attitudes toward women will be implementednationwide, with particular attentionto women, men, media, religious leaders,and institutions and influential decision makersin society. Non-traditional, culturally-sensitiveforms of mass communication will be exploredfor remote and tribal communities to addresscultural obstacles to women’s education, leadershipand participation in public life, reproductiverights, property ownership and inheritance.The Government will establish mechanisms toeffectively facilitate, monitor, and coordinateCross-Cutting Issues 149

activities on gender. The Government will alsoadopt a monitoring scorecard that ministrieswill use to track their own performance ongender equity. All sectors will be required tocollect and use sex disaggregated data, adoptgender sensitive indicators, and include genderrelated performance in their regular reports.Performance of sectors on gender will be monitoredby the Oversight Committee and theJCMB. The gender indicators and statisticalframework of MoWA will be elaborated to containindicators on the performance of governmenton the promotion of women’s status. Themonitoring and evaluation system of everyministry will:• Include gender in the terms of reference ofthe monitoring and evaluation unit and jobdescription of its chiefs;• Provide training on gender sensitive monitoringand reporting;• Adopt gender sensitive indicators;• Collect and process sex disaggregated data;and,• Highlight gender achievements in ministryand sector reports. Surveys that will set thebaseline data for monitoring will be conducted.The baseline statistics on women and men inAfghanistan will be updated annually and disseminatedto strategic users, and NRVA datacollection process will be further strengthenedto support greater gender desegregation.Evaluation will be undertaken periodically totake stock of achievements, correct gaps andadjust strategies as necessary. A mid-termevaluation will be conducted in 2008 and anotheron 2011. Insights from the evaluation willbe used to inform future planning, includingthe updating of the National Action Plan forthe Women of Afghanistan.CAPACITY DEVELOPMENTBackground and contextIt has become increasingly evident that technicaland financial support will remain underutilizedor poorly utilized unless adequate systemiccapacities are built. Years of strife andoutmoded methods of governance and management,without accountability and transparencyhas weakened the capabilities of the publicsector, particularly at provincial and districtlevels. There are, however, indications that thecapacity of the public sector has been increasingover time. In 2004 ministries were onlyable to spend about 31 percent of their developmentbudget allocations. In 2005 this figurehad risen to 44 percent and in 2006 the correspondingfigure was about 49 percent; in realterms this represents an average growth rate ofaround 60 percent as budget allocations areincreasing quite fast. There are no clear indicatorson whether or not the effectiveness of theseexpenditures have also been increasing. Thereare indicators that lack of capacity remains aserious problem within the public sector. TheGovernment, through specific institution buildingwill take the lead in directing capacity developmentto where it is most needed and toevaluating the impact of capacity developmentand technical assistance programs. This institutionalresponsibility will be with InterministerialCommission for Capacity Development(ICCD) that will serve as a single reportingpoint for both the Government anddonors. ICCD will work out detailed goals forcapacity development that will serve crosssectoralpurposes.The Government encourages donors to donorfundedprojects to engage to the maximum extentpossible qualified Afghan expatriates andto make greater use of technical experts fromthe region. These people bring greater understandingof the historic and cultural environmentin which development activities are beingimplemented. Development projects that focuson capacity building should increasingly bedesigned to build on regional human resourcecapacity. The Government also recognizes thatincreasing reliance on building managerial capacityin both the public and private sectorswill be necessary to effectively implement thegoals of the ANDS.Implementation frameworkThere is a limited capacity to effectively implementsuch extensive and intensive capacitydevelopment programs in all areas and thiswill require a well structured institutionalmechanism which has to be built and constantlystrengthened. The institutional arrangementsfor capacity development, in additionto the ICCD, include the Capacity DevelopmentWorking Group (CDWGs), Independ-150Afghanistan National Development Strategy (ANDS)

ent Administrative Reforms and Civil ServiceCommission (IARCSC) and the Reform ImplementationManagement Units (RIMUs). ICCDwill seek the assistance of the internationalcommunity to establish and staff a technicalsecretariat, to provide the administrative andtechnical support to ICCD.ICCD has undertaken a survey of capacity developmentand technical assistance programs.At the ministerial level, under the guidance ofthe Independent Administrative Reforms andCivil Service Commission (IARCSC), ReformImplementation Management Units (RIMU)have been established primarily to restructureministries so that they could move ahead onpay and grading reform – this process of restructuringrequires clarifying roles and responsibilities,and laying down very clear reportinglines, and assessing whether individualsare fit to hold the job they are holding. Capacitydevelopment is not the primary role ofthe RIMUs, but the RIMUs will identify capacitydevelopment needs, coordinate programsand initiatives to meet those needs, whilemonitoring and evaluate the impact. The ICCDwill monitor the progress of the capacity developmentprojects and programs. The Presidentand Cabinet will receive regular reportson performance of all projects. Those that areunder-performing will be required to provideexplanation for their underperformance andtheir recommendations for bringing the performanceback on target. Persistent underperformancewill result in a major redesign orclosure.Under the auspices of ICCD the IARCSC willbe empowered to encourage RIMUs to worktogether along the lines of the ANDS/sectoralgroupings, to identify common needs and solutionsas well as assist to articulate specificneeds and formulate outline proposals as appropriate.Where needed, the IARCSC withdonors’ assistance will provide training on capacityneeds assessments, capacity developmentactivities and monitoring and evaluation.Actions include:• Agreement on specific terms of referencefor RIMU;• Identify any short term technical assistancerequirements;• Conduct capacity assessments with RIMUs,establish and implement training programs;• Empower and train RIMUs in capacity assessments,capacity development, monitoringand evaluation;• Agreement on reporting protocol throughcapacity development unit to Interministerialcapacity development committee;and• Empower RIMUs to undertake a departmentby department capacity assessmentuntil all ministries have been assessed andcapacity development plans drawn up tomeet needs.Once the basic institutions required for capacitydevelopment, program implementationmechanism and priority sectors have beenagreed upon, there will be a need to set up anumber of training projects. This will includeCore Public Sector Training, Financial Managementtraining, Procurement Training, PolicyFormulation, Project Development and management,priority capacity development in theprivate sector, priority capacity development toincrease skills in work force and to make moreeffective use of Diaspora Afghans.It will take some time to get results from thecapacity development efforts. In the meantime,more efforts will be made to attract:• Afghan Expats in country with their diffskills and knowledge;• Technical assistance from the region, giventhe many qualified people fully familiarwith regional issues; and• good managers with management skills forvariety of managerial positions.ENVIRONMENTBackground and contextThe National Environment Strategy recognizesthe need to give greater attention to environmentalprotections as development occurs. InMay 2005, an independent National EnvironmentalProtection Agency was established, beingelevated from a department previously establishedin the Ministry of Irrigation, WaterCross-Cutting Issues 151

Resources and Environment. The organizationaltransition of the environment functionsince 2002 has precluded the consistent developmentof technical and managerial skillswithin both NEPA and other governmentalauthorities involved in environmental management.Therefore the ANDS focuses on developingNational Environment ProtectionAgency’s (NEPA) capacity to perform its regulatory,coordination and policy-making duties.The ANDS strategic vision is to improve thequality of life of the people of Afghanistanthrough conservation of the nation’s resourcesand protection of the environment. Goals include:(i) secure a clean and healthy environment;(ii) attain sustainable economic and socialdevelopment while protecting the naturalresource base and the environment of the country;and (iii) ensure effective management ofthe country’s environment through participationof all stakeholders. The strategy elaboratespriority programs areas for environmentalmanagement based on thematic strategies including:restoration and sustainable use ofrangelands and forests, conservation of biodiversity,accession to/ signing and enforcementof MEAs, preservation of natural and culturalheritage sites, encouragement to communitybasednatural resource management, preventionand abatement of pollution, urban environmentalmanagement; environmental educationand awareness.Implementation frameworkStrengthening EIA awareness and institutionalcapacity of NEPA and the line ministrieswill be accorded priority. Short termand long term outcomes linked to the thematicobjectives (eg. conservation of biodiversity,abatement of pollution, environmentalawareness, etc.) will also be prioritizedbased on assessment of the expectedenvironmental, social, and health impactsand the institutional, economic and politicalconstraints.Strategic coordination of the ANDS is totake place on a sector-by-sector basisthrough a inter-ministerial and consultativegroup (CG) mechanisms. Under theCG mechanism, environment features as across-cutting issue and is also a sectoralissue in its own right. Environment as across-cutting issue, must be mainstreamedacross all sectors and in each program areathrough the development of policy benchmarksto ensure that the Government, donorsand implementing agencies followestablished norms with respect to the incorporationof environmental considerationsinto the design and implementationof projects, and provide adequate oversightand monitoring of the environmentalimpacts of economic and social developmentprojects.There is a defined institutional arrangementfor implementation and monitoringof environment themes. The groups engagedin the implementation of the ANDSwill play a crucial role in ensuring issuesencountered in the implementation of programsand ministerial/sectoral strategiesare effectively addressed. Their assessmentmust be frank, identifying the problemsencountered in the implementation ofthese activities. This will allow the Governmentto more effectively address theissues and meet their obligation of reportingto the Oversight Committee (OSC) andthe JCMB on progress in fulfilling theseobjectives.CONCLUSIONThe ANDS consolidates critical crosscuttingissues and integrates them into sectorstrategies. These are issues that will have adecisive impact on the achievement of allANDS goals.Greater regional cooperation will contributesignificantly to establishing security ina volatile region and improve the prospectsfor economic growth and developmentin Afghanistan. A key objective inthe regional cooperation strategy is to removebarriers to investment and trade sothat regional investors will be better able todo business in Afghanistan and Afghanfirms will have greater access to regionalmarkets.152Afghanistan National Development Strategy (ANDS)

The elimination of the narcotics industry isessential for increasing security, improvinggovernance and strengthen formal economyif the country. The large amount ofmoney derived from narcotics supportsterrorism and creates opportunities for corruptionin public institutions. The narcoticsproduced in Afghanistan not only destroythe lives of Afghans, but imposeenormous social costs on people in othercountries. The Government, with the activesupport of the international communityis determined to eliminate this menacefrom the country.Establishing gender equality is essential sothat the country is able to make use of amajor human resource that is not significantlyunder-utilized – Afghan women.Removing barriers that prevent womenfrom fully participating in all aspects ofpublic and private life requires comprehensiveefforts by the Government, donorsand throughout the private sector.Developing the capacity of the Afghanpeople to effectively govern this countryand to engage in productive employmentis necessary if poverty is to be substantiallyreduced. The Government has establishedmechanisms to ensure that the enormousresources being devoted to developing capacityin the public and private sectors areutilized in the most effective ways possible.Achieving these goals require a long termvision. All of the cross-cutting issues willhave significant impacts on core nationalobjectives such as poverty reduction, economicgrowth, people’s participation in thedevelopment process, human rights, reducingsocial vulnerability, enhancing therole of civil society, effective public administrativereforms, developing a sound legalsystem and expanding financial resources.Cross-Cutting Issues 153

PART IIIAID EFFECTIVENESSANDCOORDINATION154Afghanistan National Development Strategy (ANDS)

CHAPTER 9AID EFFECTIVENESS AND COORDINATIONThe Government will continue to maintain theprinciples of the Paris Declaration as the cornerstoneof the ANDS. Since 2001, Afghanistanhas received more than $15 billion in OfficialDevelopment Assistance (ODA), not includingoff-budget security spending which is not formallyreported as part of the OECD DAC aidreporting system. Current estimates for totalassistance, ODA and security-related expenditures,are $40 to $50 billion. This chapter laysout the Government’s approach to increasedeffectiveness and efficiency as a vital element inthe successful implementation of the AfghanistanCompact and ANDS. Moreover, and inspite of considerable gains in recent years, theGovernment remains concerned about the urgentneed to strengthen the aid deliveryframework (management, coordination, mobilization,and effectiveness) to improve results,particularly at the sub-national level. The Governmentis aware that donor funds are limited.The main principle of the Government’s aideffectiveness policy is to ensure that donors’funds will be spent in the most productive wayand in line with the ANDS priorities.The other core principles relevant to this strategyinclude: Afghanistazation (ownership);alignment; coordination and harmonization;managing for results; and mutual accountability.PARIS DECLARATION ANDAFGHANISTAN COMPACTAfghanistan and the international communityagreed on the Afghanistan Compact andsigned the Paris Declaration on Aid Effectivenessin 2006 to improve the delivery and impactof external assistance. The Government’said strategy is in line with the major principlesof the Paris Declaration whereby (i) partnercountries own and exercise leadership overtheir development policies (ii) donors aligntheir overall support on partner countries' nationaldevelopment strategies (iii) donor actionsare more harmonized, transparent andcollectively effective (iv) resource managementand decision-making are more results-oriented;and (v) donors and partners are accountable fordevelopment results. In addition to this theGovernment’s aid effectiveness policies are alsoin line with the Afghanistan Compact, MDGsand ANDS poverty reduction targets.The effectiveness of aid can be measuredagainst progress towards the attainment ofMDG, Compact and ANDS poverty reductionand development targets. Much has beenachieved over the course of the past six years,but a great deal more needs to be done. Afghanistan’scurrent heavy reliance on aid is areflection of the extent of the devastation followingyears of turmoil.CURRENT SITUATION:ASSESSMENT OF AIDEFFECTIVENESSThe effectiveness of aid can be measuredagainst attainment of MDG, Compact andANDS poverty reduction targets. While muchhas undoubtedly been achieved over the courseof the past six years, lack of services, high povertyincidence and a lack of security in someparts of the country continue to underminereconstruction and development efforts. Afghanistan’scurrent reliance on aid can be attributedto the fact that most of Afghanistan’sinstitutions, infrastructure and human capacitywere destroyed or depleted during the threedecade-longwar. Despite this and since 2001there has been noticeable progress in improvingthe peoples’ lives: the average per capitaincome almost double from 2001 to 2007 fromUS$147 to US$289, Afghanistan averted majorhumanitarian catastrophe in 2001; 6.0 million156Afghanistan National Development Strategy (ANDS)

children have enrolled in primary and secondaryeducation, with 35% being female; thebasic package of health services is now at 87%national coverage with immunization at 80%coverage; more than 5 million Afghans havereturned home; more than 12,200 km of roadhave been rehabilitated and rebuilt includingthe ring road; and in urban areas especially,professional opportunities for women are beginningto increase.AID EFFECTIVENESSSTRATEGY FRAMEWORKExperience in other countries has shown thatexternal aid has in many cases, contributed toeconomic growth, private sector development,and poverty reduction. The Government isstrongly committed to making aid more effectiveby working with donors to achieve thebenchmarks set out in the Paris Declarationand the Afghanistan Compact. The Governmentwill continue to work on to deepen theownership and successful implementation ofthe ANDS. This will require the full cooperationand assistance of the donor community.The motivation behind this commitment issimple: the realization that making aid moreeffective by reducing overlap, duplication andthe administrative cost of aid in the short runwill have an even greater impact on increasingthe benefits of aid in the longer term.The Government will continue to providestrong political backing for economic reformsthrough support to the conditions attached toprograms and projects undertaken by donors.This will be strongly supported by the Governmentwhere institutions and policies areweak and the policy environment is distorted.The Government encourages program and projectdesigns that focus on creating and transmittingknowledge and building capacity.Over the ANDS period, post evaluation of alldevelopment projects will be undertaken whichwill provide valuable information on the lessonslearned and improve the future design ofdevelopment programs and projects. The Government’said policies will be based on the followingprinciples:• Maintaining Macroeconomic Stability:sustainable growth and reducing povertyboth require a sound and stable macroeconomicframework. The Government willcontinue to improve its overall macroeconomicframework by identifying and removingstructural rigidities and marketdistortions to permit higher levels of economicgrowth.• A performance/results-based approach:with improved monitoring , coordinationand evaluation of development programsand projects by both the Government andthe international community;• Good governance: good governance providesthe broad setting for developmentand the quality of that governance willhave a profound effect on developmentsuccess and aid effectiveness.• Building capacity: enhanced capacity—inpublic and private sectors—is also criticalto sustainable development. Past aid programmingoften failed because it focusedon resource transfers by donors but did notprovide enough support for local capacitydevelopment efforts to sustain these investmentsonce donors had withdrawnsupport.• Engaging civil society: participatory processes,particularly those engaging civil society,are essential to establishing clear, locallyowned priorities so that aid is demanddriven and has maximum impact.This will also ensure that aid meets theneeds of the poorest and most marginalizedpeople in society.Aid Effectiveness Objectives: Key objectivesare to increase aid effectiveness andmaximize the impact of international assistanceand achieve the following objectives: (i) improvedsecurity and stability; (ii) reduced poverty;(iii) enhanced environment for privatesector development; (iv) further democratizationof Afghan society in accordance with theIslamic values; and (v) increased social inclusionand equality. For the Government aid isone of most important tools in implementingthe ANDS.Excepted Outcomes: The Government’s aideffectiveness policies will achieve the followingoutcomes: (i) improved security and povertyreduction (ii) higher participation of the privatesector in the GDP and employment (iii) higherschool enrolment and literacy (iv) better socialinclusion (v) lower infant and maternal mortality(vi) improved access to a higher quality ofAid Effectiveness and Coordination 157

public services and (vii) improved humanrights.Developing Priority Policies: Increasing aideffectiveness is a joint effort between Government,donors and agencies involved in the implementationof programs and projects. TheGovernment will implement reforms that willlead to higher transparency and absorptioncapacities. Donors will be expected to undertakemeasures to improve aid delivery in linewith the Paris Declaration.Building Greater Ownership: The Governmenthas demonstrated a genuine commitmentto lead the development process and make aidmore effective by establishing the AfghanistanCompact and signing the Paris Declaration in2006. Afghanistan’s long-term developmentvision as set out in the ANDS, identifies andarticulates national priorities in the mediumterm. All assistance should be aligned withANDS priorities as presented in the sectorstrategies. To this end, the Ministry of Financewill monitor the Government’s total aid portfolioand it will, in collaboration with line ministries,encourage donors to channel their resourcesin a manner that is consistent with theprinciples of Islam, the Government’s Aid Policyand the ANDS priorities.Improving Public Finance Management:Although the tax system does not directly relateto aid effectiveness, its further strengtheningwill increase domestic revenues and theGovernment’s potential to allocate more resourcesto fund recurrent costs of donorfundedprojects. The tax system is in the processof being strengthened. Institutional capacityfor efficient tax collection will improve taxadministration at all levels. The Government’sdomestic revenue collection has significantlyimproved to the point where today it covers asmuch as 64 percent of recurrent expenditures.Even though the Government is putting inplace increasingly effective public financialmanagement systems, it still faces major challenges.The Government seeks cooperationfrom its development partners to channel morefunds through the Core Budget, an importantstep for enhancing financial management systems.The capacity to implement the DevelopmentBudget more efficiently will improve,resulting in a higher donor contribution to theoverall Core Budget. The Government’s targetis for 75 percent of aid to be channeled throughthe core budget.Major public administration reforms being implementedor planned—such as the introductionof a merit-based civil service system, andprofessional management of government ministriesand departments, or the creation of amore formalized budget, procurement, andaudit processes and agencies—had their rootsin the desire of the Government to avoid earlierabuses of graft and political patronage.Equally important will be the Government’saccountability to the Afghan people with regardto the expenditure of aid money, whichwill be supported by the ongoing efforts of theMoF to develop the Public Expenditure FinancialAccountability (PEFA) framework.This process will be strengthened by: (i) deepeningthe linkages between the ANDS, MTFF,MTB and in the future with the MTEF; (ii) enhancingthe ‘budget literacy’ of citizens andcivil society organizations through engagementin budget processes; (iii) support to civil societyorganizations and downward accountability inthe context of decentralized service delivery;(iv) assessing the experience gained under theNational Solidarity Program and the NationalRural Access Program and disseminating theselessons; (v) regular reporting to National Assemblyand other public entities in how budgetaryresources (core and external) are beingspent; (vi) better communication with the publicusing the ANDS framework on plans, aidreceived, disbursed, outcomes and impact and(vi) supporting civil society organizations andnon-governmental organizations to ensure thatlocal governments are held accountable on howaid money is being spent to improve the people’swelfare.Curbing Corruption: The drug trade, porousborders, and informal markets have led to increasedcorruption in public institutions. TheGovernment is conscious of the fact that corruptionand aid effectiveness are inversely correlatedand is therefore committed to significantlyreducing corruption. Some mitigatingmeasures to improve anti-corruption in thearea of aid delivery will be as follows: (i) increasepublicly available information aboutdonor aid provision at the national and provinciallevels; (ii) harmonization of donor supportaround the Government’s anti-corruptionstrategy as prescribed in the ANDS; (iii) in-158Afghanistan National Development Strategy (ANDS)

crease donor support for preventive actionbased on corruption vulnerability assessmentsof specific processes and actions practiced bygovernment departments and agencies and (iv)eliminate the narcotics industry in a mannerthat provides alternative sources of income tothe farmers.The Government has also passed the PublicFinance Management, Procurement, and Auditingand Accounting Laws and will ensurethat these laws and regulations are implementedand enforced diligently. As corruptionand other rent seeking activities are one of themain causes of ineffective aid delivery, theGovernment will address this issue in an affirmativemanner to win the trust, confidenceand continued support of the donor community.Improve information on aid flows andpredictability: Incomplete reporting of OfficialDevelopment Assistance (ODA), includingreporting on the activities of Provincial ReconstructionTeams (PRTs), civil society organizationsand the international NGOs to the Governmenthas limited transparency and hinderedthe ability of the Government to monitorand manage external assistance. This informationis critical to planning and budgeting processesas well as the execution of the developmentbudget. The MoF expects that the ongoingParis Declaration Survey will improve informationabout the aid flows.Additionally, a lack of multi-year commitmentsby development partners has made it difficultfor the Government to plan for the medium tolong-term allocation of resources to nationalpriorities. Consequently, it has been difficult toobtain a complete picture of external assistanceto Afghanistan.The conduct of the Financial Reviews and theimplementation of the Harmonized ReportingFormat since October 2007 will enable the Governmentto access comprehensive and coordinatedinformation on aid flows as well as highlightthe problems and issues impeding projectimplementation, improving aid management.Reducing High Transaction Costs andParallel Funding Mechanisms: Eventhough significant progress has been made interms of aligning external resources and prioritiesof the ANDS a number of challenges stillremain. For instance, a significant proportionof external resources provided are still beingrouted directly to projects by donors. Fundschanneled through the Core Budget, by meansof pooled funding modalities, including theAfghanistan Reconstruction Trust Fund(ARTF), Law and Order Trust Fund for Afghanistan(LOTFA) and Counter NarcoticsTrust Fund (CNFT) will be fully integrated intonational planning and resource accountabilitysystems across the different layers of Government.Funds disbursed through the external budgetoften have high transaction costs, particularlythose funds disbursed to stand alone projects.As highlighted in the Afghan Economic Impactstudy, the greatest local economic impact isobtained when resources are provided directlyto the Government (local impact around 85percent) compared to funds provided to internationalcompanies (less than 20 percent) tocarry out projects. Where funds are disbursedthrough the external budget their economicimpact is maximized when spending is on locallyprocured goods and services.To manage its own resource allocation in aneffective manner in the annual budget processand ensure maximum alignment with nationalpriorities, the Government will require thatinformation on all activities financed underparallel funding mechanisms is communicatedto the MoF in a timely manner. Donors whoare implementing parallel funds are encouragedto show flexibility in aligning their projectswith sector strategies of ANDS and havingdefinite time-lines for eventually bringing suchassistance on-budget.Prior to the allocation of resources for parallelfunding, there should be consultation with theGovernment through existing consultationmechanisms (CGs, WGs, Aid Effectiveness CGand JCMB). This will help improve aid coordination,management, mobilization and effectiveness.The Government’s aid policy calls forthe reduction of parallel funding mechanismsthrough the gradual integration of thesemechanisms with the Government’s budgetand a “no pinching of staff” policy from Governmentagencies by other stakeholders.Reducing Tied Aid: A significant proportionof aid provided to Afghanistan is still tied.That is, many donors procure imported goods,Aid Effectiveness and Coordination 159

mostly from their own countries, and importtheir own labor force rather than hire localworkers to work on their projects. Accordingto the 2006 Baseline Survey of the Paris Declarationon Aid Effectiveness, 56 percent of aid istied in Afghanistan. This indicates that a largepercentage of aid is effectively contracted totechnical assistance from donor countries, andis not necessarily consistent with or aligned tothe ANDS. Rebuilding Afghanistan, creatingjobs, and reducing poverty requires strong localeconomies and untied aid. One of the mainreasons behind the slow revival of the economyis the conditions attached to external assistance.In order to help Afghanistan achieve its developmentgoals, there is a need to increase thelocal impact of aid. The Government wouldlike to encourage donors to use more locallyproduced goods as well as local implementingagencies so as to promote greater private sectordevelopment and employment.Simplifying Aid Management Proceduresand introducing More Flexible Conditionality:Both the Government and donorsshould aim to further simplify their processesand procedures for implementation of programsand projects, to avoid unnecessary delaysin implementation. Simplification of processesand procedures, albeit, with safeguards inplace to minimize corruption and other rentseeking activities would enable the Governmentto manage the development process in asmoother manner and for donors to allocatemore resources to the reconstruction of Afghanistan.Excessive conditionality attached toforeign assistance should be avoided at allcosts. At the same time, simplification of processesand procedures must also ensure thatthere is no corresponding increase in fiduciaryrisk. Safeguards for donor funds have ofteninvolved special implementation arrangementsthat bypass mainstream government systems.However, the fiduciary security derived fromseparate controls and “ring-fencing” of aidfunds has limits. Earmarking of funds is not aguarantee against fungiblility; separate controlsdo not address (and may worsen) the underlyingweaknesses of public finance management;and the costs of complying with such safeguardsmay reduce the value for money of aid.Improving inter-government cooperation:Inter-government coordination is an importantprecondition for increasing the impact of theinternational assistance. The ANDS will providethe basis for improved inter-ministerialcooperation. Based on the sector strategies inter-ministerialcommittees will be establishedto support implementation of the ANDS, whichwill work to create an enabling environment.Finally, Government agencies will be responsiblefor implementation of the ANDS and arbitrarypriority setting by ministries outside ofthe agreed ANDS service delivery frameworkwill be heavily discouraged. In terms of federal- provincial relations, central CGs will workclosely with provincial coordination offices toenhance co-ordination between national andsub-national priorities.Improving donor coordination: The ANDSsets the framework for improving donor coordinationin line with the Paris Declarationwhich recommends greater alignment betweenODA and the ANDS. Based on this, the Governmentwill strongly recommend to donorsthe harmonization of their programs and thedevelopment of their Country AssistanceStrategies and Joint Donors Response (JDR)with ANDS priorities to minimize the risk ofduplication, poor alignment, coordination andharmonization.The donor implementing agencies (NGOs) willneed to increase their cooperation with lineministries to ensure that the future donorfundedprograms and projects will supportimplementation of the ANDS. The JCMB, CGsand the WGs will remain the primary mechanismsfor Government-donor dialogue andconsultation.Future Government /donor cooperation needsto be based on the basic principle of mutualaccountability. Furthermore, benchmarks willbe developed to measure progress againstcommitments on both sides. For its part, theGovernment remains committed to (i) improvingexisting coordination mechanisms; to (ii)increasing collection of domestic revenues, andto (iii) increasing absorption capacity, allowingfor higher migration of the donor resourcesfrom the External to the Core Budgets (especiallyin dealing with large sums of externalfunds). From the donor side the Governmentexpects that the donor external funding will bein line with the ANDS priorities.160Afghanistan National Development Strategy (ANDS)

Increasing the volume and concessionalityof donor assistanceSignificant investments are required to achievethe MDGs and benchmarks, leading to the effectiveimplementation of the ANDS. Theamount of money pledged per head for Afghanistan’sreconstruction is still low in comparisonto pledges made previously for otherpost-conflict countries such as Bosnia and Herzegovina.Thus there is a need for more appropriatelevels of aid reflecting the needs ofAfghanistan.Even though Afghanistan received debt reliefunder the Paris Club initiative, the challengewill be ensuring that Afghanistan’s externaldebt will be maintained at sustainable levels byreaching the completion point for the HeavilyIndebted Poor Countries (HIPC). Despite thisthe majority of all future donor aid should bedelivered in the form of grants with very limitedamount of lending which should continueto be under favorable concessional terms.In order to increase investment, while maintainingdebt at sustainable levels, the Governmentneeds to mobilize significant additionalresources. At the same time, it is also importantto address the Government’s absorptivecapacity constraints through well coordinatedand executed TA/Capacity Building programs.If these constraints are not simultaneously addressed,it will be futile to seek increases in thelevel of development assistance, even thoughthe development needs of Afghanistan remainslarge. In parallel with this the Government willimplement reforms that will lead to higher mobilizationof domestic revenues in order to ensurefiscal sustainability in the long run anddecrease aid dependence.Improving the management of thetechnical assistance (TA)Afghanistan is a large recipient of technicalassistance. Over the ANDS period, the Governmentwill ensure that technical assistancewill be demand-driven and aimed at buildingGovernment capacity. In addition, it will ensurethat it is delivered in a coordinated manner.All technical assistance channeled outsidethe Core Budget should have capacity buildingcomponents and require Afghan counterparts.Technical Assistance also must focus on developingsystems and procedures the local staffcan utilize to perform their daily duties. Furthermore,each TA should have an exit strategy.All terms of reference for TA must recognizethis as the ultimate objective of such assistance.The Government will develop a policyfor dealing with the TA to ensure higher coordinationand delivery of assistance in line withthe Government priorities and improved effectiveness.The selection process needs to favorforeign advisers that have proven record incapacity building. Finally, international advisersshould always encourage local ownershipand despite the weak capacity, should avoidbeing involved in decision making processes.Improved communication with thegeneral publicThe perception of aid effectiveness has beenhampered because of a failure to meet the public’sexpectations and meet the high demandfor resources. The Government will improvecommunication in order to better manage expectationsof the public and provide transparentinformation about aid delivery.Ensuring proper coverage of maintenancecostsA number of development projects already sufferfrom lack of planning in terms of maintenancecost. This has already become a highrisk for project sustainability and aid effectiveness.Both the Government and donors willimprove planning to ensure that requiredmaintenance cost funding will be included inproject implementation.IMPLEMENTATION ANDMONITORINGThe MoF is the leading government institutionfor aid effectiveness issues. The Aid CoordinationUnit (ACU), within the Budget Department,is responsible for most issues surroundingthe delivery and monitoring of externalassistance. The Government’s aid policies layout preferred aid modalities on the delivery ofdevelopment assistance, how it views the roleof the other stakeholders such as the nongovernmentalorganizations (NGOs) and theprovincial reconstruction teams (PRTs) in theaid delivery process, its external debt policyAid Effectiveness and Coordination 161

and how it proposes to enhance its partnershipwith all donors.aid delivery for Government ministries andagencies and donors.Preferred aid modalitiesThe Government prefers core budget support(direct budget support). This modality givesthe Government greater ownership and enablesit to more effectively allocate resources basedon needs and priorities. Direct budget supportalso strengthens the Government’s financialmanagement systems by providing hands-onexperience to those involved in managing andmonitoring the core budget. More aid in theform of budget support would also simplifyadministration and reduce overheads.The Government is aware that the ExternalBudget, as well as PRTs budget lines will continueto exist, however it will seek to the transferof more funds to the Core Budget. In addition,the Government expects that the futureimplementation of the programs and projectsfrom the donor-funded External Budget andthe PRTs budget lines will be strictly in linewith the ANDS priorities.Channeling aid through already establishedtrust funds (ARTF, LOFTA, CNTF) would bethe second preferred option as this wouldmean that the Government would be able toaccess these funds on an as-needed basis. TheGovernment also prefers to see a progressivedecline in non-discretionary budget support,which distorts the allocation of Governmentspending across sectors, and in turn weakensthe Government’s role in determining its financingpriorities. However, for this to happen,the Government is aware that continuousprogress will need to be made in fighting corruptionand implementing public administrationreforms. Finally, the Government prefersthat donor funds be pooled rather than earmarkedfor individual projects. Pooling of donorfunds also significantly reduces the duplicationof effort and leads to better coordination,management, and effectiveness of aid, especiallywith respect to technical assistancegrants.The Government will not support provision ofassistance in the form of donor preferred anddesigned projects based on needs assessmentdone solely by donors with little or no consultationwith the Government. The approval ofthe ANDS provides the framework for priorityImproving cooperation with civil societyorganizations (CSOs)Both local and international CSOs active in Afghanistanplay crucial and diverse roles in deliveringdevelopment assistance to the Afghanpublic. Generally, the CSOs mobilize publicsupport and voluntary contributions for aid;they often have strong links with communitygroups and often work in areas where government-to-governmentaid is not possible. Giventheir important contribution to the improvementof the welfare of rural and remote communities,the Government will ensure that itadopts a supportive approach vis-à-vis thework of the CSOs. The Government however,will encourage the CSOs to align their assistancewith ANDS priorities and conduct theirbusiness according to the NGO Law and otherrelevant legislation covering CSOs.The NGOs and the CSOs will be required toimprove their reporting systems and provideaccurate and timely information on their developmentactivities through the HarmonizedReporting Form. However, the Governmentremains committed to improving the reportingmechanism by introducing more simplicity andincreasing compliance as well as removing unnecessarybarriers to their effective operation.Improving cooperation with provincialreconstruction teams (PRTs)The Government recognizes the important rolethat the PRTs play in supporting the subnationalgovernments. Given this the Governmentwould encourage the PRTs to assist in theimplementation of priority projects through theProvincial Development Plans (PDPs) in linewith national priorities (ANDS). In order toavoid duplication, all PRTs will need to reporttheir activities to the Government through theHarmonized Reporting Form.Securing debt relief under the HIPCinitiativeAfter receiving debt relief under the Paris Clubnegotiations, Afghanistan has become eligiblefor additional debt relief under the HIPC. TheGovernment will continue with the implemen-162Afghanistan National Development Strategy (ANDS)

tation of the PRGF. Moreover, the successfulimplementation of the ANDS will be one of themain drivers in achieving the HIPC requirementsand securing debt relief.Enhancing strategic partnershipThe Government’s aid policy aims tostrengthen the partnership with the donors byencouraging information sharing and policydialogue, at both sectoral and program levels.In addition, the Government’s policy will encouragethe launching of joint analytical projectsbetween the Government and donors.That is, the Government will develop agreements—inthe form of Memoranda of Understandingwith all donors in which rights; mutualobligations; and accountabilities are clearlyidentified.The following lessons learned will be implementedacross all consultative structures andplatforms to ensure an effective dialogue:• All CG’s Working Groups will remain focusedon results, with time-bound actionplans and clearly defined targets and milestones;• Government and donors will improve theirrepresentation to ensure that only representativeswith adequate technical expertisewill take part in consultations;• Maximize the efficiency of the ConsultativeGroup meetings. The ministries and agencieschairing the meetings will establishsecretariats including the participation oftechnical people from the leading donoragencies;• Helping the Government achieve developmentobjectives and implementing theANDS will be main priorities for donorsrather than a donor-driven policy agenda.• Where necessary, joint Government/Donorsub-groups should be formed on specificissues to improve efficiency of developmentwork.CONCLUSIONThe Government and people of Afghanistanare grateful to international community fortheir timely and much needed assistance. ForAfghanistan to shift from recovery-relatedgrowth to long-term sustainable development,additional continued and efficient donor supportwill be required. Of course, building amore prosperous Afghanistan is a joint taskbetween the people, the Government and theinternational community. This joint effortshould be viewed in the context of the commonbenefits that will accrue to the Afghan peopleand the international community from overcomingthe threats of terrorism and drugs.With proper support, Afghanistan will emergeas stable and growing economy in the region,cooperating with its neighbors for mutualprosperity, and finally at peace with its self, theregion and the world.The successful implementation of the ANDSwill remain dependent on securing the requiredlevels of the donor assistance. It hasbeen widely acknowledged that achievement ofthe Afghanistan MDGs cannot be accomplishedwith current levels of international support. Atthe same time, it is known that success of theANDS also depends on the Government anddonors’ ability to increase aid effectiveness andefficiency. Government policies based on theANDS provide a good framework for achievingthis goal. However, both the Governmentand donors will have to do more to improveaid delivery mechanism and efficiency to bringmore tangible changes to the life of ordinaryAfghans. The Government is accountable toAfghan people and National Assembly on howaid is spent. The Government is committed todo its part to ensuring the successful implementationof Paris Declaration and their supportof the Government’s policies and strategies.Aid Effectiveness and Coordination 163

PART IVIMPLEMENTATIONAND MONITORING

CHAPTER 10IMPLEMENTATION FRAMEWORKThe implementation framework for the ANDSis based on an integrated approach that will bestructured to address the three interdependentpillars of security; governance, rule of law andhuman rights; and economic and social development,and five cross-cutting issues. Stabilizingconditions in Afghanistan will require continuingsecurity operations combined with theimplementation of the rule of law and crediblesub-national governance. It will require equalityof access to the delivery of basic services, inparticular education, road infrastructure andhealth throughout the country.Figure 10.1 Implementation cycleThe implementation of the ANDS will be basedon an integrated approach to these challenges,uniting government, international community,civil society and private sector effort in supportof common goals, shared policies and jointprograms. The integrated approach takes asits point of departure the requirement forall actors, not only to accept a shared visionof development and stabilization outcomes,as expressed in the AfghanistanCompact and the ANDS, but also to planand deliver jointly in order to maximizeimpact and aid effectiveness. This processmust take place on the basis of the NationalBudget approval process and thenational programs that are at its core. Inpractical terms, any identified national priority(e.g. CNTF, food and agriculture,governance) should be given policy attentionat the Oversight Committee prior toobtaining overall approval and directionfrom the cabinet. This process would thenlead to the development of a national program,which would be introduced both tothe National Assembly and to donors aspart of the national budget process.An integrated approach makes it easier for theGovernment to meet challenges in a dynamicpolitical context with multiple stakeholders,internal and external risks, and evolving securitychallenges. A major key to success is toensure effective coordination with internationalcommunity. However, the functioning of theseinstitutions needs to be improved and theircapacity further developed. This chapter outlines:(i) lessons learned; (ii) the principles of anintegrated approach; (iii) budget management;(iv) the necessary institutional framework arrangements;(iv) the coordination framework;and (v) integrating Conflict Management intoSector Strategies.LESSONS LEARNED DURINGTHE INTERIM ANDSThe country’s development efforts in recentyears have highlighted the following constraintsfacing effective implementation:Fiscal Sustainability: Recurrent financingneeds now met by donors must increasinglybe offset by strong growth in theformal taxable economy.166Afghanistan National Development Strategy (ANDS)

Lack of Capacity: The ANDS must focusmore efforts at the sub-national level,where the capacity of government, privatesector and civil society remains weak.Low Aid Volume and Low Disbursement:Despite generous pledges, Afghanistan hasnot received the same per capita commitmentas other post-conflict states.Weak Aid Coordination and Effectiveness:Despite the Afghanistan Compactand JCMB, the external budget has remaineddominant, limiting coordination.Enhancing Provincial Equity and PovertyTargeting: Unequal provincial developmentand a failure to target vulnerabilityusing NRVA data remain endemic.Private Sector Capacities: Inadequate attentionhas been given by the Governmentand donors alike to the enabling environmentfor private sector growth.Donor Alignment: Despite sector strategiesand national programs, donor effortshave remained fragmented, and there hasbeen poor coordination and reporting; aswell as programmatic and provincial biases.Conflict Sensitivity: It is essential that asystem be put in place to ensure that conflictsensitivity is mainstreamed into alldevelopment programs.Management of Complexity: Both theGovernment and donors are faced withcomplex policy and delivery challengesthat require a concerted and coordinatedeffort.IMPLEMENTATIONFRAMEWORK ANDINTEGRATED APPROACHThe Government will integrate the nationalbudgetary process, legislative agenda and programdelivery simultaneously. This will requiredevelopment partners and donors toalign their efforts with ANDS priorities andactivities through joint planning and evaluation.The Government will concentrate on integratingand delivering donor-supported programsthat achieve the ANDS goals of (i) stability,(ii) delivery of basic services and infrastructureand (iii) enabling a vibrant national economy.This integration will require a strengtheningof government machinery both at thecentre (OAA, NSC, Ministry of Finance,IARCSC and JCMB Secretariat) and at subnationallevel (through the Ministry of Interior,MCN, IDLG and Ministry of Economy).This new capacity will itself requirea program approach.The sector strategies and the implementationframework are premised on the application ofthe following principles:• Enhance the Medium Term BudgetFramework, maintain fiscal sustainability,adopt sector-wide approaches and buildupon Provincial Development Planning;• Strengthen links between Kabul and theprovinces and support the resolution ofconflicts;• Targeting basic and essential services andsocial protection through national programs;• Enhance budget prioritization, sequencing,aid effectiveness and provincial equity;• Enhance private sector engagement to enhancecompetitiveness;• Focus on productive infrastructure development;• Improve security through governance, ruleof law and regional cooperation;• Meeting PRGF and HIPC requirements;• Improve government and civil society capacitythrough a human capital strategy;• Enhance poverty and economic growthdiagnostic monitoring and impact evaluation.The proposed implementation and coordinationframework, outlined below, balances theneed for coordination between the Governmentand donors as well as provincial based formu-Implementation Framework 167

lation and execution capacities to enhance servicedelivery. This will require improved coordinationbetween the Government and variousstakeholders.IMPLEMENTATION PLANAND THE ANDSIMPLEMENTATION CYCLEImplementation MechanismThe ANDS sector strategies will be implementedthrough national programs which willgenerate results at the local level, as well asbeing synchronized with national and provincialbudgeting and legislative and evaluationcycles. The main instruments for the implementationwill be the Budget and private sector.The medium term budget expenditures of theCore Budget will support implementation ofthe national programs that will be aligned withthe ANDS priorities. This will be reflected inthe MTFF. Based on the Paris Declaration, thedonors will be asked to implement programsand projects from the External and the PRT’sbudgets in line with the ANDS. The existingJCMB coordination mechanism will be used toensure this. The ongoing activities of the MoFto cost sector strategies and develop the programand provincial budgeting will enhanceentire process of implementation of the ANDSthrough the Government and donor fundedbudgets.Apart from the Budget, the private sector isexpected to play important role in the implementationof the ANDS contributing to jobcreation, infrastructure development and revenuemobilization. The private sector contributionto development of the country was one ofthe criteria for the Government’s expenditureprioritization framework (see Table 10.5). It isexpected that the private sector will play leadingrole in implementation of the ANDS prioritiesin number of sectors such as: ICT, miningand natural resources, agriculture, private sectordevelopment and others.Together these processes comprise the integratedANDS implementation process. To supportthis process, institutions will be strengthenedand capacity build within the central governmentand at the sub-national level. Apartfrom this the high priority will be given to skilldevelopment programs to meet the needs ofthe private sector and increase employment.This sequencing of priorities in framework isillustrated in Figure 10.2.Figure 10.2. Sequencing of priorities for an integrated approachIMPLEMENTATION CYCLEFollowing the approval of the Government, theANDS will be submitted to the World Bankand International Monetary Fund and presentedto the international community, outliningthe ANDS funding requirements.Because the Budget is the central tool for implementingthe ANDS, all line ministries andagencies will develop and align their nationalprograms and projects with the ANDS SectorStrategies, which will then be costed and prioritizedagainst the fiscal framework which itselfhas already been prioritized and sequenced.168Afghanistan National Development Strategy (ANDS)

Based on the costing and prioritization of sectorstrategies, the Public Investment Program (PIP)will be prepared to enable (i) full integration ofthe ANDS into the Medium-Term FiscalFramework and the Budget; and (ii) presentationto the National Assembly. This will be accomplishedby by Jaddi 1387 (end-2008).The first ANDS Progress Report will be preparedby end-1387 (March 2009). Following theGovernment’s approval of the Progress Report,it will be presented to the World Bank and IMF(within the context of reaching the HIPC completionpoint). This review process will also beused to continually strengthen and adjust policyand program delivery throughout the periodof implementation.Based on the progress and evaluation reportsthe ANDS Review/Update will be completedby mid-1389 (September 2010). This will allowfor policy correction and adjustments followingthe completion of the period envisaged for theimplementation of the Afghanistan Compact.The implementation of the ANDS is summarizedin Figure 10.3.Figure 10.3. ANDS Implementation CycleROLE OF THE NATIONALBUDGET AND THE MTFFThe Budget is the funding mechanism throughwhich ANDS policy will be implemented. Highlevels of insecurity have meant that the costs ofmany development and reconstruction activitieshave been dramatically increased. This hasled to fragmentation of the policy developmentprocess, lower levels of aid effectiveness and afailure to effectively utilize the national budgetaryprocess as an effective tool for coordinationand prioritization.Strengthening the role of the Budget as the instrumentof national policy making is critical tothe implementation of the ANDS. An integratedapproach will rely on the Budget as itsprincipal vehicle for delivering stabilizationand development results. All public expendituresaimed at enhancing economic growth andreducing poverty are formulated and executedthrough the budget formulation and executionprocess, as outlined in Figure 10.4 below. 5858 The budget is currently divided into two major components; theCore Budget, controlled by the Government; and, the ExternalBudget, which includes Provincial Reconstruction Team Civiland Military Cooperation funds, provided and controlled by eachdonor individually. The Core Budget includes both Operationaland Development components, 60% of which is donor providedand the remaining 40% of which comes from National revenues.The Government is committed to getting to the stage where thetotal Budget is Core, and is funded from nationally generatedrevenues, but acknowledges that it will take some time to accomplishthis goal. The near-term objectives therefore are to gainCore Operational Budget self sufficiency as soon as possible, andin the mean time to move as much External budget into the CoreBudget Management Framework as practicable.Implementation Framework 169

By committing themselves to funding nationalprograms according to ANDS priorities,international community will ensurethat their assistance is leveraged to bringstability to the government planning cycle.The integrated approach to planning andimplementation will ensure that prioritiesand potential synergies (across nationalprograms as well as across the public/privatesector divide) are identified atthe planning stage and utilised to developcontext-specific approaches. The integratedapproach will also set the conditionsfor external budget funds to be moreeasily aligned to the ANDS; if the capacityto design and deliver national programs issuccessfully increased, the proportion ofassistance delivered through the externalbudget will begin to decline.Figure 10.4. Annual Budget Formulations and Execution ProcessA forward-looking partnership between Afghanistanand the international community isneeded to ensure external aid is managed inline with the ANDS and recommendations ofthe Paris Declaration. The implementation ofthe ANDS will depend upon the donors to implementmore programs and projects throughthe Core Budget. As afore-mentioned , effectiveimplementation will require that thoseprograms and projects funded through the ExternalBudgets and the PRTs be aligned withANDS priorities. Finally, this approach willalso require: (i) enhanced Government ownershipof the development process; (ii) more effectivepublic expenditure management; (iii) anincreased focus on outcomes and service delivery;(iv) greater harmonization between Governmentand donor policies, and (v) more mutualaccountability between the Governmentand the international community.The Government’s current approach is basedon programmatic budgeting. This will helpensure the Budget is realistic; based on sectorstrategies; has measured and unambiguousbudget management guidelines that reflect improvinggovernment capacities; involves keystakeholders (including sub-national bodiesbased on provincial development plans); istransparent, with relevant, accurate and timelyinformation provided to decision makers, includingthe National Assembly and the publicat large; and accountable through internal andexternal audits.Control of on-budget resources is beingstrengthened through fundamental reforms of170Afghanistan National Development Strategy (ANDS)

the Public Finance Management (PFM) system,including procurement, accounting, reporting,auditing, and other systems of accountability.The ANDS presents the strategic orientationwithin which future resource utilization will bedetermined. Specific emphasis will include:Strengthening aggregate fiscal discipline:Government will aim to (i) increase therevenue to GDP ratio; (ii) reduce the ratioof operating expenditures to revenues, and(iii) make progress according to fiscal targetsestablished through the MTFF.Enhancing resource allocation and utilizationbased on strategic priorities: Currently,the Ministry of Finance uses programbudgeting in key sectors and ministries.This activity will expand to includeall ministries, which will significantly supportthe integrated approach. Budgetaryproposals will be examined on the basis oftheir alignment to the ANDS policies. Specificcriteria to the following elements willneed to be met:• Rationale: Does this project require publicsector finance? Does the project directlyaddress poverty reduction, economicgrowth or contribute to easing tensions inthe communities? Does the project addresscross-cutting issues such as gender?• Cost-effectiveness: Have multi-year costimplications (sustainability) and the leastcostalternative been identified, includingthrough competitive bidding?• Benefit-cost: Have the benefits (includingeconomic, social and environmental) beenquantified and do they exceed the costs? Isthe rate of return on expenses sufficient tojustify expenditure?• Risk mitigation: Do project managementcapacities exist to allow successful projectimplementation within the time frames?Have risks been identified and are they acceptable?Supporting greater efficiency and effectivenessin the delivery of services: TheGovernment will expedite the procurementof services, labor and supplies.Implement Sector Wide Approaches and NationalPrograms 59 : The success of these sectoralframeworks will depend on an appropriateenabling legal frameworks, institutionalcapacity, infrastructure, human resources,technical assistance, finance, baseline data anddata management systems, risk managementstrategies, and standard audit and PFM procedures.Further integrate existing trust funds andPRTs into the budgetary process: Efforts willcontinue to incorporate the Afghan ReconstructionTrust Fund (ARTF), Law and Order TrustFund (LOTFA) and the Counter NarcoticsTrust Fund (CNTF) into the budgetary process.This will ensure these trust funds contribute tothe effectiveness of broader sector wide approaches.To the maximum extent possible,appropriations will be made through the treasurysystem.Integrate budgetary processes with cabinetlevelpolicy-making and legislative planning:The linkages among policy-making, planningand budgeting will be strengthened to promotemore results-based performance management.Medium-term expenditure priorities will receiveexpedited treatment in the cabinet policymakingand legislative processes. Program andprovincial budgeting will provide multi-yearbudget proposals which integrate recurrentand capital expenditures. These processes willalso integrate the Provincial DevelopmentPlans (PDPs) and address any provincial orregional imbalances.Tracking of poverty related spending: Evaluatingthe effects of public spending on povertyreduction will be enhanced by introducing thesystem of tracking of poverty related spendingwithin the framework of the future monitoringmechanism. The JCMB Secretariat will takelead on this in cooperation with the MoF, CSOand line ministries.59 In particular, a well-defined and operational PRS is a prerequisitefor the development for the proposed Sector Wide Approaches(SWAPs). SWAPs involve all stakeholders (includingGovernment, donors and NGOs) committing to using their resourcesin the sector only through the Sector Investment Program(SIP). SWAPs are considered by Government to be a tool fordonor co-ordination, to reduce the administrative burden of theindividual project approach to donor funding and ensure thatthere is a unified strategy for the sector, with no overlapping orcontradictory activities by different actors.Implementation Framework 171

ROLE OF THE MTFFThe three year Medium Term Fiscal Framework(MTFF) will continue to provide the resourceframework. The MTFF allows the Governmentto put in place an affordable, realisticand sustainable medium-term fiscal frameworkto ensure (i) transparency in setting fiscal objectives;(ii) stability in fiscal policy-making process;and (iii) efficiency in design and implementationof fiscal policies.The MTFF will be essential planning tool toimplement ANDS and evaluate impacts of itspolicies. Through the MTFF the ANDS prioritieswill be considered in yearly budgeting:within the limits of the capacity, the MTFF willensure that the ANDS implementation will becoordinated with the budget preparations.Based on this the MoF plans to embark on theprocess of developing the Medium-Term ExpenditureFramework (MTEF) to strengthenthe Governments capacity for expenditureplanning.ROLE OF THE CONTROL ANDAUDIT OFFICE (CAO)The role of the Control and Audit Office (CAO)will be strengthened to provide oversight of theexpenditure functions of core spending ministries.However, given the CAO’s current weakcapacity, the MoF will assume these responsibilitiesin the short term.Budget management framework, prioritizationand funding requirements for theimplementation of the ANDSThe Medium Term Fiscal Framework and sectorwide programming and costing will (i)strengthen realistic resource projections; (ii)sectoral prioritization; (iii) support fiscal sustainability,and (iv) develop budget ceilings forall budget entities. Table 10.5 below provides ahigh level sectoral overview of the projectedsectoral costs for the period 1386 to 1391 (2007-2012).As afore-mentioned, the implementation of theANDS will be aligned with the Government’scommitments toward the PRGF and HIPC. TheGovernment expenditure prioritization frameworkwill ensure that proper resource allocationwill be made to support implementationof these commitments and if necessary appropriateadjustments will be done.Table 10.5. Projected Operating and Development Spending (US$ m) 1387-1391 60Sector1387 1388 1389 1390 1391 TotalUS$m US$m US$m US$m US$m US$mSecurity 3219 2585 2679 2790 2906 14179Infrastructure & Natural Resources 1781 3093 3681 4180 4451 17185Agriculture and Rural Development 829 921 916 909 912 4486Education and Culture 742 893 980 1077 1181 4872Good Governance, Rule of Law and Human374 558 640 685 728 2985RightsHealth and Nutrition 325 465 530 563 595 2478Economic Governance & PSD 237 215 230 244 260 1186Social Protection 192 359 394 421 449 1815Others 205 198 185 170 157 915Total 7,903 9,286 10,236 11,038 11,637 50,10060 Source: Ministry of Finance, April 2008The total estimated cost of the ANDS over thenext five years (1387-1391) is $50.1 billion. Ofthis amount the Government will contribute$6.8 billion and external assistance is expectedto be $43.2 billion.172Afghanistan National Development Strategy (ANDS)

NATIONALIMPLEMENTATIONSTRUCTURESAt the national level, the following structureslink policy, planning, budgeting and monitoringof the ANDS:To facilitate coordination, 17 Inter-MinisterialCommittees (IMCs) will be established, eachresponsible for overseeing the implementationof an ANDS sector strategies. The membershipof these bodies will include the ministers fromthose ministries with responsibility in the particularsector. The IMCs will report regularlyto the President and Cabinet and to the JCMBthrough the Oversight Committee. The IMCswill be coordinated by the ANDS OversightCommittee and supported by the JCMB Secretariat.The line ministries and other governmentagencies will be responsible for the implementationof the ANDS (program and projects)with support from the Ministry of Finance, IndependentAdministrative Reform and CivilService Commission (IARCSC) and internationalpartners.The National Assembly will be responsible forlegislating an enabling environment for security,economic growth and poverty reduction.Parliamentarians and committees are alreadyactively engaged in the formulation of theANDSThe Council of Ministers headed by the Presidentas the highest level decision-making body,will oversee the progress and provide overallpolicy guidance and direction under existinglegislation.The ANDS Oversight Committee as high levelbody comprised of senior ministers will overseethe implementation of the ANDS and reportabout the progress directly to the Presidentand the Cabinet. 61MoF will be responsible to ensure that the programsand projects of the line ministries will becosted, prioritized against the fiscal framework,sequenced and integrated into the MTFF andthe Budget.SUB-NATIONALIMPLEMENTATIONSTRUCTURESAt the sub-national level, the following structuresare to be established to enhance the linkbetween policy making, planning, and implementationof the PDPs, budgeting and monitoring:The Independent Department for Local Governance(IDLG), under the President’s Office,will be responsible for the overall coordinationof local governance and all provincial governorswill report to it on the progress of the implementationof the ANDS.At the provincial level, the Provincial Councils,Provincial Development Committees and ProvincialGovernors will be directly involved inthe implementation of the ANDS. The provincialdepartments of the line ministries will beresponsible for implementation of the subnationalprojects. At district and communitylevels the District and Community DevelopmentCouncils (DDCs, CDCs) will continue toplay key role in implementation of the communitylevel projects under the overall leadershipof the Wuluswal..COORDINATIONSTRUCTURESThe Government and the international communityhave established the Joint Coordinationand Monitoring Board (JCMB), with responsibilityfor overall strategic coordination andmonitoring of the implementation of the AfghanistanCompact.61 This mechanism has been very effective for formulation ofMillennium Development Goals (MDGs) for Afghanistan, developmentof Afghanistan Compact and Interim Afghanistan NationalDevelopment Strategy (I-ANDS), prioritization of variousprograms and projects, and approval of policies and decisions.The effectiveness of this mechanism is supplemented by the factthat the Senior Economic Advisor to the President is also a co-chair of the Joint Coordination and Monitoring Board (JCMB),which is mainly responsible for coordination between the governmentand the international community. The members of theOversight Committee are also members of JCMB. This mechanismwill be a very important implementation mechanism forANDS because of its past experience, criticality and positioning.Implementation Framework 173

Consultative Groups (CGs) will continue toplay important role in coordinating the effortsof the Government and donors in implementationof the development programs and projects.The CGs will be important forum for improvingaid coordination, policy and implementationdialogue, and ensuring alignment of thedonor programs with the ANDS. Each CG isco-chaired by the Minister of Finance and arelevant member of the Oversight Committee.Line ministry representatives and other representativesselected by the co-chairs are responsiblefor the substantive work of the CGs, assistedby the Secretariat.Working Groups (WGs) have been establishedfor each sector, and where necessary are supportedby sub-working groups. They will remainto be the key forum through which lineministries and international partners can developprograms, align efforts and monitor results.The Policy Action Group (PAG) will provideoverall direction to key Afghan and internationalactors to ensure that the interdependenceof security, governance and development objectivesguide operations and programs in orderto achieve the conditions for basic servicedelivery, development programs and privatesector-led growth, especially in conflict affectedareas.At the sub-national level, the Provincial DevelopmentCommittees (PDCs), chaired by theGovernors, will ensure coordination within theprovincial administration and with the donors,PRTs and civil society.INTEGRATING CONFLICTMANAGEMENT INTOSECTOR STRATEGIESThere are deep concerns about the feasibility ofinitiating development and reconstruction programsdue to the ongoing conflict in someprovinces, as well as increasing attacks countrywide.This insecurity is preventing the implementationof development projects in severalareas of the country. The impacts of conflictand violence on development efforts willbe more comprehensively addressed in implementationof the programs and projects. Theconflict evaluation mechanism will be establishedwithin the existing monitoring structureswith aim to sensitizing development and aid toconflict and risks. However, a proper diagnosiswill be part of program and project preparations.The Central Monitoring and Reporting System(CMRS) 62 will conduct specific assessment andanalysis which will subsequently mainstreamand integrate conflict awareness and sensitivityinto all areas of development assistance (basedon criteria to be developed in cooperation withthe donors) to ensure that development programswill not erode stability or increase conflict.Finally, conflict awareness and peacepromotinginitiatives will be incorporated intoreconstruction and development assistance andspecial attention will be paid to ensure that developmentprograms do not upset cultural valuesor beliefs.CONCLUSIONImplementation of the ANDS under the IntegratedApproach will require synchronizationof budgetary, cabinet, legislative, program andstabilization cycles. In particular, it will requiremeasures to further strengthen the capacity ofstate bodies responsible for these processes (Officeof Administrative Affairs, Ministry of ParliamentaryAffairs, Ministry of Finance,IARCSC, IDLG, NSC) and Inter-MinisterialCommittees, as well as those responsible forprogram delivery (line ministries, provincialand district administrations). It will requirestrengthened coordination and alignment byinternational partners under the overall authorityof the JCMB, delivered through CGs, WGsand the PAG.The implementation framework conceived inthis strategy requires an ongoing evaluationand monitoring, and an enhanced risk managementmechanism, as there are continuingsignificant risks to stability which may yet underminethe underlying assumptions. Themain risk for successful implementation of theANDS will continue to be security. Domesticand donor resource mobilization remains anextremely demanding challenge, which will notyield reliable long-term predictability for thebudget process for some time to come. Implementationof donor commitments will be62 See text in the Monitoring Framework for information on theCMRS174Afghanistan National Development Strategy (ANDS)

highly dependent on implementation of theANDS reforms. There is also a risk that domesticsupport for the ANDS will weakens, thus,further consultative processes will be undertakento overcome this. However, these riskscan only be mitigated rather than being eliminated.The Integrated Approach reflects a recognitionthat building on achievements to date will requirean unprecedented number of actors tocome together to support institutional structuresin order to overcome complex challenges.By focusing on agreed programs and buildingcoherence and synergy among activities at thelocal level, stability can be achieved in all partsof Afghanistan and a genuine national developmentprocess can begin. In the framework ofsuch a strategy, the Integrated Approach inANDS implementation aims to bring visibleimprovements to the lives of all Afghans.Implementation Framework 175

CHAPTER 11MONITORING FRAMEWORKThe ANDS, as the country’s PRSP, consists of(i) formulation (ii) implementation and (iii)monitoring and evaluation phases. The monitoringand evaluation phase (see Figure 11.1below) runs parallel to implementation, allowingactions and measures taken to be monitored,providing an indication of their efficiencyand effectiveness in meeting povertyreduction and development targets. The Governmenthas already begun establishing a CentralMonitoring and Reporting System (CMRS)to fulfill both internal and PRSP reporting functions.While the CMRS will take some time toestablish, this chapter outlines the core approachadopted to measuring developmentoutcomes and impacts in line with ANDS priorities,Compact benchmarks and the MDGs.As the ANDS has an increasingly provincialfocus, with public spending linked to provincialdevelopment plans, an effective monitoringand evaluation system will need to be establishedin both the provinces and by the Governmentin Kabul.Figure 11.1. Formulations, Implementation and Monitoring and Evaluation ProcessThe Afghanistan Compact benchmarks and theMDGs have been integrated into the ANDSSector Strategies. The JCMB Secretariat, as thebody responsible for high-level co-ordination,together with the line ministries, will play akey role in high-level, strategic monitoring ofthe implementation of the Afghanistan Compactand the MDGs.It will be important to distinguish between twolevels of monitoring and oversight: (a) input/outputor program monitoring of the implementationof the ANDS, and (b) outcome/impactmonitoring for high level Governmentinstitutions (OSC, Cabinet) and theJCMB to ensure that the strategic priorities ofthe ANDS are met.ANDS MONITORING ANDEVALUATION PRINCIPLESIn developing a responsive, manageable andoutcome oriented monitoring and evaluationsystem, the Government commits to:• Establishing a centralized and eventuallyprovincial based monitoring and reportingsystem;• Adopting a comprehensive approach topoverty measurement and economic diagnosticwork through determination of baselinesand benchmarks;• Adopting evidence-based systems formonitoring and evaluating policy and implementation;Monitoring Framework 177

• Increasingly not only measuring inputsand processes, but outcomes, performanceand development and poverty impacts(positive and negative);• Strengthening the management of knowledgeand information access around theM&E system;• Increasingly, over the course of the ANDS,seeking to strengthen linkages between theM&E system and the provincial planningprocess;• Maintaining transparency and accountabilityand encouraging support from NGOs,the Central Statistics Office and citizens inthe provision of data and analysis of findings;• Building the core institutional capacitiesneeded to sustain M&E processes, bothwithin the CMRS, as well as the CSO,NRVA and line ministry systems;• Setting service delivery benchmarks willutilize accepted international specific,measurable, achievable, realistic and timelyoutcome indicators for poverty measurement;and,• Integrating the M&E system across the entirenational budget cycle, to support thesetting of multi-annual and annual performancetargets.INSTITUTIONAL STRUCTUREThe institutional structure for monitoring willinclude a number of government, donor andnon-government intuitions, however; theJCMB, line ministries and the CSO will play themost important roles.The Role of the ANDS OversightCommitteeThe OSC will remain the key high-level governmentbody coordinating and monitoring theimplementation of the ANDS. It will approvebi-annual and annual progress on ANDS implementationreports as well as the reportsprepared for the Cabinet and the JCMB. TheOSC makes up the Government part of theJCMB.The role of the JCMBThe JCMB is the strategic level coordinationmechanism between the Governmentand the international community. It willfocus on resolving the strategic problemsarising from the implementation, coordinationand monitoring not only of the AfghanistanCompact but also the entireANDS. Co-chaired by the Governmentand the United Nations it will provide (i)high level oversight, ensuring an integratedapproach to delivery of the Compactand ANDS; (ii) directions to addressany obstacles or bottlenecks surroundingimplementation, coordination and monitoringof the ANDS; and (iii) report on theimplementation of the Afghanistan Compactand ANDS to the President, NationalAssembly, the UN Secretary General, theinternational community and the public.The Role of the JCMB SecretariatThe JCMB secretariat will provide policy andstrategy analysis/assessment, monitoring andevaluation reports to JCMB on the overall implementationof ANDS and Afghanistan CompactBenchmarks as well as supporting thework of the standing committees. It willstrengthen its capacity to provide independentanalysis to enhance the high leveloversight and problem solving role of theJCMB. The capacity of the JCMB Secretariatmust be significantly strengthened toperform these tasks.The role of the Central Monitoringand Reporting System (CMRS)The CMRS will be developed within the JCMBSecretariat and Ministry of Economy as thecentral machinery of government to supportthe monitoring and reporting process. Alongsidethe CSO, it will provide the central hub forall national monitoring as an apex monitoringbody, with a particular focus on monitoringand evaluating the impact of the Compact andthe ANDS. It will not function in isolation butwill bring together existing information fromthe CSO, consumer price indices, the NRVA,Afghanistan Financial Monitoring InformationSystem, Afghanistan Country Stability Picture178Afghanistan National Development Strategy (ANDS)

(for ISAF), Afghanistan Information ManagementService, Donor Assistance Database andGeoBase, the Project and Activity Tracking systemof USAID/Afghanistan as well as sectoralministries.The CMRS will focus on data analysis and reportingof outputs, outcomes and impacts.There will be no conflict between the roles ofthe CMRS and the CSO, as they will be at twoopposite ends of the data systems. While theCSO will concentrate on data collectionthrough various means including surveys andtheir reporting, the CMRS will be collating thefiltered data produced by the CSO and willfacilitate various monitoring processes and disseminateinformation. They will in fact complementeach other. Finally, the CMRS will beresponsible for gathering information on programsfor conflict sensitivity, and to mainstreamconflict sensitivity into programs basedon criteria to be developed within the JCMBSecretariat in cooperation with the Governmentand line ministries.The Role of the Central StatisticsOffice (CSO)The CSO will remain the main provider of primaryand secondary information in relation tonational statistics, as an input to the CMRS.The CSO is currently compiling statistics onnational accounts, prices, external trade, populationand demographics for monitoring economic,financial, and structural policies as wellas other operations that will provide lots ofquality information for improving the monitoringframework. The capacity of the CSO willbe strengthened so that a meaningful statisticalsystem be put in place for providing usefuldata on various macro-economic processes andimportant sectors. It is necessary for this purposeto strengthen the collection of operationaldata in various sectors through respectiveagencies. The CSO will coordinate data collectionsystems in various ministries and organizations.The Role of NRVA and other surveysOne of the most important data-capturing exerciseshas been the NRVA surveys, from whichthe current poverty line has been calculated.Three surveys have already been conductedand provide critical information on poverty, aswell as other important sectors. The role ofthese surveys will be further expanded so thatthey can meet the immediate data needs of theother sectors. The multi-purpose householdsurveys will be conducted under the supervisionand guidance of the Central Statistics Office(CSO). To monitor the impact on poverty,the NRVA and the future household budgetsurveys will serve as the key source for monitoringfor critical poverty and social outcomeindicators and completion of the reports onpoverty situation (see appendix III).The Role of the Line MinistriesLine departments will continue to collect sectorrelevant information to monitor the output andsectoral outcome of national spending throughthe ANDS. The CMRS and CSO will workclosely with line ministries to standardizemethodological approaches to monitoring NationalPrograms. The Ministry of Economy willbe responsible for the wider inter-ministerialcoordination.The Role of Provincial OfficesThe line ministries will strengthen their provincialoffices to collect disaggregated data onall indicators to monitor progress on individualprojects at provincial, district and village level.The provincial offices and institutions of subnationalgovernance will utilize monitoring,support and reporting mechanisms to feed datato the line ministries which will assist in provincialbudgeting, planning and monitoring ofthe overall implementation of the ANDS. TheGovernor will report to the Provincial Councilson the progress of implementation of the subnationalANDS priorities and other parts of thePDPs.The Role of the National BudgetThe Budget remains the central tool of governmentpolicy. The close day-to-day workingrelationship between the MoF (AFMIS), thevarious budget entities, the CMRS and CSOwill provide vital information in setting andcosting sectoral priorities and targets to befunded through the medium term budgetframework. Annual targets will be reportedagainst the agreed sectoral baselines and thebudget hearing sessions will increasingly moveMonitoring Framework 179

towards reportage of budget outcomes, not justfinancial and input reporting.The Role of Donors, IFIs and the UNThe Government will continue to request supportfrom international partners in (a) developinganalysis of the main obstacles to more rapidgrowth and poverty reduction; (b) discussingthe quality, coverage and timeliness of keydata, including possible final and intermediateindicators; (c) assessing the main policy issuesconfronting the Government in the macroeconomic,structural, and social areas, given thecore objectives of promoting growth and reducingpoverty; (d) assessing the current ‘resourceenvelope’ and, within this, the possible scale ofexpenditures for poverty reduction; and (e)discussing current levels and nature of externalassistance, and prospects for increased aid overthe medium-term.The role of NGOs and Civil Society:Independent monitoring and reporting byNGOs, CSOs, the media and other civilian bodieswill be a vital part of the overall monitoringand reporting system. Their participation willbe encouraged and actively supported. Theywill play an important role in the externalmonitoring of the implementation of the ANDSwhich will be carried out in continuing consultationswith NGOs and the civil society, subnationalrepresentatives and the internationalcommunity.MONITORING ANDEVALUATION REPORTINGFor the purposes of the Compact and theANDS, the JCMB Secretariat will provide adhoc, periodic impact evaluation reports to theGovernment, the public and international partners.The JCMB Secretariat will produce andthe Government will approve annual progressreports on ANDS implementation, to serve asthe basis for reporting. The Annual ANDS reportwill be presented to the Board of Directorsof the WB and the IMF. This report will indicateto what extent outside views are soughtand incorporated into the report, particularly ofthe IMF, World Bank and UN.Based on annual progress and evaluation reportsevery two years, a full update of theANDS/PRSP, developed with broad participationwill be constituted as an impact evaluation.This update, which will be publicly disseminated,will provide an opportunity for allstakeholders to assess progress on implementationand adjust policies to achieve higher efficiency.In order to evaluate effects of implementationof the ANDS on poverty reduction, the JCMBSecretariat will be producing reports on povertysituation on three year basis to coincidewith the completion of the NRVA surveys,which will continue to be most important instrumentfor collection of the poverty relateddata and produce annual MDG progress reports.Finally, public expenditure reviews will beconducted and integrated into the ANDS monitoringprocess. In line with the budget cycle,ad hoc and periodic sectoral monitoring andreporting will be conducted.INDICATORS FORMONITORINGThe measurement and analysis of poverty, inequality,and vulnerability are crucial for variousreasons: The Government has developed povertyand vulnerability surveys largely based onincome and consumption data, disaggregatedby province, household, agro-economic zone,gender and household size, among other factors.Against these a new poverty line has beendeveloped. The process of data collection andanalysis has led to a far deeper understandingof the causes of poverty, and these constraintsare being addressed within the various sectorstrategies. Figure 11.2 outlines the overall povertymonitoring and strategy design processundertaken in formulating and implementingthe ANDS. The CMRS will play a pivotal rolein providing information to decision-makers aspart of this process.180Afghanistan National Development Strategy (ANDS)

Figure 11.2. ANDS Poverty Monitoring and Strategy Design ProcessIn establishing an effective monitoring andevaluation systems for the ANDS, based onrelevant national statistics (CSO/NRVA), theGovernment has already determined the following:(i) goals, indicators and targets (ii) levelsof data desegregation including by provinceand gender; (iii) appropriate targets, for examplethrough the MDGs, Compact and ANDSsectoral levels; (iv) data requirements to meetthe minimum standards of a PRSP; and (v) thefrequency of data collection and monitoring.In developing the ANDS, the sectoral strategiesand the provincial development plans, theGovernment has established a core set of monitoringand evaluation indicators for monitoringoutcomes and impact for security, law and orderand human rights, governance, social andeconomic development and poverty programs.In addition to standard sector strategies such aseducation and health, social protection andwelfare programs have also been developed,within which the needs of particularly vulnerablegroups can be targeted. Appendix III outlinesthe main indicators to be used in measuringthe progress of the ANDS on reducing povertyand improving economic development.Monitoring matrices have been developedwithin all sector strategies, which provide importantoutcomes, indicators, targets and baselines(where available). The various sectoralstrategies outline targets for each reporting periodon an annual and three-yearly basis.Data requirements to feed into the input, output,outcome and impact assessment processare gradually being established. Sources ofdata to feed into the CMRS include, governmentadministrative records, donor projectstatus reports, ministry MIS systems data, CSOhousehold listings, NRVA data and otherforms of data (i.e. AIMS, AFMIS), sector specificsurvey data, IMF Enterprise Survey results,consumer price information, budget andexpenditure data, the ACSP database and existingdatabases (e.g., AFMIS, DAD, DevInfo,GeoBase.). Indicators for the cross-cutting issuesof, regional cooperation, counter-narcotics,corruption, capacity building, gender and theenvironment have been mainstreamed acrossthe sectoral strategies.However, due to weak statistical data, the baselinesfor a number of key development andpoverty indicators are yet to be established.This is going to be an important priority for thefirst two years of implementation of the ANDS.Strengthening of the CSO and the capacity ofthe line ministries will be essential for establishingclear baselines. These efforts will includemapping intermediate indicators withfinal outcomes. In cases where actual indicatorsare difficult to measure or cannot be providedwith sufficient frequency, proxy indicatorswill be used.Since early development stages will not yieldmeasurable outcomes in the short run, a seriesof process indicators are used in order tomeasure immediate results. These indicatorsare part of the overall monitoring frameworkboth for the Compact and the ANDS that identifiesprogress on reaching key milestones. Theindicators are measured in index format whichcontain multiple components that also ensurestrict monitoring to take action on various areasof reform. For example, they are built into theANDS Action Plan to improve legislation, institutionalbuilding and policy making.Monitoring Framework 181

Finally, working together will the MoF and theline ministries, the JCMB Secretariat will ensurethat the budgets will be aligned with the indicatorsand costing priorities. However, theGovernment is aware that this activity will alsorequire a significant capacity building.MONITORING ANDEVALUATION FRAMEWORKBased on the development of the sector strategies,initial Sector Monitoring and EvaluationFrameworks have been prepared to identifyneeds with regard to existing and plannedpolicies, and developing the programs/projectsand indicators. These Frameworks have identified:(i) the milestones in implementation of theM&E plans; (ii) activities required to build onexisting monitoring structures; and (iii) reportingrequirements for the multilateral agencieson the progress of the implementation of theANDS. The monitoring and evaluation planwill also identify data requirements and additionalsurveys, where required, to establish sectoralbaselines. The M&E plans will furthermorebe developed and monitored to captureprogress on the achievement of benchmarks.An exercise to rationalize and adjust the Compactbenchmarks to the Government’s implementationcapacity has already been addressedat JCMB meetings.CONCLUSIONThe ANDS monitoring and evaluation systembeing developed will track the progress of implementationof the ANDS towards theachievement of its objectives in poverty reductionand overall development in the country. Italso provides valuable inputs for further policy-streamlining,planning and implementationfine-tuning. The monitoring and evaluationinstitutions, especially the JCMB and CMRS,and capacity created in the country will producea strengthened and sustainable developmentprocess. The availability of relevant informationproduced by this system, will promoteconstructive public debate on the challenges,solutions and progress in poverty reductionand economic development. The centralrole that the CMRS will eventually playwithin the implementation framework of thePRSP will enable the development of a povertymonitoring and analysis system, based on acceptedinternational criteria. Given the existingweak capacity in the Government, it is importantto stress that the strengthening of themonitoring framework will require a stagedapproach that will eventually develop into amore sophisticated monitoring and evaluationsystem.182Afghanistan National Development Strategy (ANDS)

Table 13.1. Monitoring and Evaluation IndicatorsANDS Monitoring and Evaluation IndicatorsNo. IndicatorsCollection DataResponsibleFrequency SourceAgencyPoverty and Hunger1 Proportion of population below national poverty line (National/Prov/Urb/Rur/Kuchi)3-years NRVA CSO2 Poverty gap ratio [incidence x depth of poverty] 3-years NRVA CSO3 Share of poorest quintile in national consumption 3-years NRVA CSO4 Proportion of population below minimum level of dietary 3-years NRVA CSOenergy consumption (National/Prov/Urb/Rur/Kuchi)Economic Indicators5 GDP (US$ billions) Annual National Accounts DAB6 Gross domestic investment/GDP Annual National Accounts DAB7 Exports of goods and services/GDP Quarterly National Accounts DAB8 Gross domestic savings/GDP Quarterly National Accounts DAB9 Gross national savings/GDP Quarterly National Accounts DAB10 Current account balance/GDP. Quarterly National Accounts DAB11 Interest payments/GDP Quarterly National Accounts DAB12 Budget balance Quarterly National Accounts MoF13 Revenue/GDP Quarterly National Accounts MoF14 Public Expenditure/GDP Quarterly National Accounts MoF15 Total debt/GDP Annual National Accounts DAB16 Gross national reserves Annual National Accounts DAB17 Total debt service/exports Quarterly National Accounts DAB18 Present value of debt/GDP Annual National Accounts DAB19 Present value of debt/exports Annual National Accounts DABOther Social Indicators20 Population (millions) Annual National Survey CSO21 Labor force (%) 3-years National Survey CSO22 Urban/Rural/Kuchi population (% of total population) Annual National Survey CSO23 Life expectancy at birth (years) Annual National Survey CSOGovernance24 Index on progress of empowering the National Assembly. Six Months Admin Data OoP25 Index on progress of Reforming Public Administration. Annual Admin Data IARCSC26 Index on progress of building capacity of Public Sector Workforce.Annual Admin Data IARCSC27 Index on progress of Implementing systems, mechanisms and Six Months Admin Data IARCSCprocedures to implement merit based appointments and performance-basedreviews.28 Index on progress of introducing systems, mechanisms and Six Months Admin Data IARCSCprocedures to reduce and monitor corruption at differentlevels in the government and the judiciary.29 Index on progress of putting plans, systems and mechanisms Annual Admin Data IARCSCin place for improved participation of women in governance.30 Index on progress of creating a strong and capable IndependentSix Months Admin Data OoPElection Commission to hold regular Elections as man-dated by the Constitution.31 Index on progress of putting in place legal, policy, institutions Annual Admin Data IDLGand other systems and procedures for strengthening the subnationalgovernance.32 Index on progress of putting in place legal, policy, institutionalSix Months Admin Data MoJ, MoFAand other systems in place to realize, protect, promoteand extend human rights in the country.Justice33 Index on progress of putting in place legal framework andsystems so that Criminal and Civil justice is administeredeffectively, and in accordance with law, the Constitution, andinternational standards.Six Months Admin Data MoJMonitoring Framework 183

ANDS Monitoring and Evaluation IndicatorsNo. IndicatorsCollection DataResponsibleFrequency SourceAgency34 Index on progress of making justice institutions transparent Six Months Admin Data MoJand accountable.35 # of functioning and adequately resourced, judicial institutionsSix Months Admin Data MoJin each provinceReligious Affairs36 Index on the progress of enhancing the impact of religious Six Months Admin Data MoHRAaffairs for socio-economic developmentEnergy37 Index on progress of putting in place an enabling environmentSix Months Admin Data MoEWfor private sector investment in energy sector.38 % of households electrified (National/Urban/Rural) 3-years NRVA CSO39 Index on progress of expanding public power grid (National/Urban/Rural)Six Months Admin Data MoEW40 Index on progress of increasing access to rural energy Six Months Admin Data MoEW41 Index on Progress of restructuring energy sector governance Six Months Admin Data MoEWand commercialized operationsTransport42 Index on progress of putting in place institutional mechanismsSix Months Admin Data MoTfor better governance of the Transport Sector.43 Index on progress of enabling legislations and regulations for Six Months Admin Data MoTefficient working of the transport sector and various playerstherein.44 % of target Km of ring road or roads to the neighboring countriesAnnual Admin Data MoPWfully upgraded and rehabilitated.45 % of all villages connected by all-weather roads Annual Admin Data MRRD,MoPW46 Index on the progress of the process of completion of InternationalSix Months Admin Data MoTCivil Aviation Organization (ICAO) compliance forKabul and Herat Airports.Urban Development47 Index on the progress of providing improved to basic services Six Months Admin Data MoUDHby urban household48 Index on the progress of providing increased availability of Six Months Admin Data MoUDHaffordable shelter49 % completion of city development plans for 34 provinces Six Months Admin Data MoUDHWater Resources50 Index on the progress of putting in place improved water Six Months Admin Data MoEWsector legal and governance structures and institutions inplace51 Index on the progress of developing and implementing sustainableSix Months Admin Data MoEWwater resources management strategies and planscovering irrigation and drinking water52 # of Hydrometric stations installed and equipped Annual Admin Data MoEWInformation and Communication Technologies (ICT)53 Index on the progress of creation of E-Afghanistan Six Months Admin Data MoCIT54 % increase in annual revenue generated from the ICT Sector Annual Admin Data MoF55 % of population access to mobile phones 3-years NRVA CSO56 number of internet users 3-years NRVA CSOMining57 Index on progress of creation of enabling and regulatory environmentSix Months Admin Data MoM, MoCIfor increased investment in mining sector58 % of increase in revenue generated from mining sector Six Months National Accounts DABEducation59 Literacy rate of population (National/Urban/Rural) 5-years MoE Survey MoE60 Net enrolment ratio in primary education (National/Urban/Rural)Annual MoE Survey MoE61 Attendance Rate (National/Urban/Rural) Annual MoE Survey MoE184Afghanistan National Development Strategy (ANDS)

ANDS Monitoring and Evaluation IndicatorsNo. IndicatorsCollection DataResponsibleFrequency SourceAgency62 Proportion of pupils starting grade 1 who reach grade 5 (National/Urban/Rural)Annual MoE Survey MoE63 Literacy rate of 15-24 year-olds (National/Urban/Rural) 5-years MoE Survey MoE64 Index of improving quality of education including higher and Six Months Admin Data MoE, MoHEvocational educationMedia and Culture65 Index on progress of protecting and preserving Afghan cultureSix Months Admin Data MoCand heritage66 Index on progress of promoting independent and free media Six Months Admin Data MoCHealth67 Under-five mortality rate (National/Urban/Rural) 3-years NRVA CSO68 Infant mortality rate (National/Urban/Rural) 3-years NRVA CSO69 Proportion of 1 year-old children immunized against measles 3-years NRVA CSO(National/Urban/Rural)70 Prevalence of underweight children under-five years of age 3-years MoPH Survey MoPH(National/Urban/Rural)71 Maternal mortality ratio (National/Urban/Rural) 3-years MoPH Survey MoPH72 Proportion of births attended by skilled health personnel (National/Urban/Rural)3-years NRVA CSO73 Condom use rate of the contraceptive prevalence rate (National/Urban/Rural)3-years NRVA CSO74 % of population within two hours walking distance from 3-years NRVA CSOPHC services (National/Urban/Rural)75 % of population access to clean water (National/Urban/Rural)3-years NRVA CSO76 % of children under 1 year receiving three doses of DPT vaccine3-years NRVA CSO77 % of children under 1 year received measles antigen. 3-years NRVA CSO78 TB case detection rate 3-years MoPH Survey MoPH79 Malaria incidence 3-years MoPH Survey MoPH80 HIV prevalence 3-years MoPH Survey MoPHAgriculture and Rural Development81 Index on the progress of facilitating economic regeneration SixMonthsAdmin DataMRRD,MAIL82 Index on progress of Strengthened Local Governance SixMonthsAdmin DataMRRD,IDLG83 Index on progress of Reduced Poppy cultivation throughAlternative LivelihoodsSixMonthsAdmin DataMRRD,MAIL84 Index on the progress of increasing agriculture productionand productivity.SixMonthsAdmin DataMRRD,MAIL85 Index on the progress of improving agriculture and ruralinfrastructureSixMonthsAdmin DataMRRD,MAILSocial Protection86 Index on progress of a social protection system for vulnerable Six Admin DataMoLSAsections of societyMonths87 Percentage of poor female headed households (National/Urban/Rural)3-years NRVA CSO88 Number of employed poor women who are heads of their 3-years NRVA CSOhouseholds (National/Urban/Rural)89 Percentage of poor persons with disability (National/Urban/Rural)3-years NRVA CSORefugees and Internally Displaced Persons90 Index on progress of strengthening government’s capacity tomanage and assist refugees and displaced personsSixMonthsAdmin DataMoRRPrivate Sector Development91 Index on progress of development of enabling legal and regulatoryframework for private sector and tradeSixMonthsAdmin DataMoCIMonitoring Framework 185

ANDS Monitoring and Evaluation IndicatorsNo. IndicatorsCollection DataResponsibleFrequency SourceAgency92 Nominal value of the annual actual investment of the private Annual Admin Data DABsector93 Number of registered company to AISA Annual Admin Data AISAGender94 Ratios of girls to boys in primary, secondary and tertiary educationAnnual Ministry Data MoE, MoHE95 Ratio of literate women to men, 15-24 years old 3-years NRVA CSO96 Share of women in wage employment in the non-agricultural 3-years NRVA CSOsectorEnvironment Sustainability97 Proportion of population with sustainable access to an improved3-years NRVA CSOwater source (National/Urban/Rural)98 Proportion of population with access to improved sanitation 3-years NRVA CSO(National/Urban/Rural)99 Proportion of households with access to secure tenure (Urban)3-years NRVA CSO186Afghanistan National Development Strategy (ANDS)

CHAPTER 12CONCLUSIONWhile significant gains have been made in thereconstruction and development efforts overthe course of the past six years, it seems that atthe beginning of state building process in 2002,Afghanistan and the international communityseverely underestimated the depth and the extentof the calamity this country has gonethrough, and the time and costs that would berequired to redress these. While the challengesfacing Afghanistan have evolved in nature,they have not necessarily changed in magnitude.The deteriorating security in the past twoyears has definitely altered the path of developmentthat the country has been pursuingsince 2002, thus, substantially changing the assumptionson which the Afghanistan Compactwas based. In many respects, the immenseprogress that has been made during these yearshas struggled to keep pace with the rapidgrowth of new problems and challenges. Despitethat, the people of Afghanistan still believethat the path to prosperity from extremepoverty is on track.Sustaining the nascent Afghan democracy willrequire the emergence of a prosperous Afghanistanin which poverty reduction and economicgrowth are able to raise the potential ofthe Afghan people for a better future. Successwill require the emergence of a productive privatesector active that plays a major role inmost areas of the economy with public sectorresources primarily focused on providing theneeded physical, commercial and legal infrastructureand ensuring that the results of developmentbenefit all citizens.The ANDS represents an important milestonein the rebuilding and development of Afghanistanand serves as the country’s Poverty ReductionStrategy Paper (PRSP). Through theANDS, the Government is firmly committed tocontinuing state building efforts. It includes arealistic and comprehensive assessment of theenormous constraints and challenges facing thecountry and plans for addressing security, governance,rule of law, human rights, and socialand economic development issues in an integratedapproach. The primary goal of theANDS is to establish a framework in which theGovernment and international community canwork jointly to substantially reduce povertybased on a foundation of a private sector ledsustained economic growth. This requires simultaneousprogress on improving security,strengthening governance, increasing the effectivenessin delivering basic social services andtaking the actions necessary to ensure that theprivate sector can invest and operate competitively.Achieving substantial progress in all ofthese areas is a complex task that will requirecommitment and coordination by all parts ofthe Government and the donor community. Assuch, the ANDS will help to coordinate andguide the joint activities of the Governmentand donors.The development of the ANDS has been agenuinely Afghan ‘owned’ exercise, based on abroad consultative process, engaging donorcommunity and stakeholders at national, provincialand grassroots levels to define the developmentof national and local priorities. Thisenabled men and women from all provinces toparticipate in defining national developmentobjectives and to express their priorities. Thevoices of the poor have informed the policyframework, the poverty profile, as well as theorientation of the sectoral strategies that formthe foundation of the ANDS. Important insightshave been gained in security and conflictmanagement, regional cooperation, counternarcotics,anti-corruption, gender, the environment,and capacity development. Withinthe Government, the ANDS was developedbased on strategies prepared by all ministriesand broader sector strategies that were discussedextensively in ministries, Inter-Monitoring Framework 187

Ministerial Committees, and with donors,NGOs, and the private sector. This inclusiveparticipatory process will be maintainedthroughout the life of the ANDS.The effectiveness of the ANDS will dependcrucially on building a strong economic foundationthat will support long term, broad-basedeconomic growth, with the private sector beingits driving engine. With proper policies undertakenduring the last five years, per capita incomenearly doubled. To achieve the povertyreduction goals of the ANDS comparable levelsof economic growth will be needed in comingsyears. This will require a supportive enablingenvironment for social and economic development,which in turn depends on the continuedmaintenance of sound and stable macroeconomicpolicies to enable the private sector toestablish itself as a vigorous engine of growthand employment creation.A key strategic objective of the ANDS is to establisha secure economic environment inwhich it will be possible to attract sufficientlevels of private sector investments that couldin trun encourage the employment of human,financial and natural resources in the mostproductive ways possible. A critical element inachieving this objective will be to substantiallyincrease investment in human capacity developmentand creating a skilled workforce in orderto expand employment opportunities andincrease incomes.The ability to implement the projects and programsincluded in the ANDS depends upon theresources that will be available. Average economicgrowth is projected at an 8.1 percent ratefor 1387-1391. A key assumption underlyingthis ambitious goal is an increasing role of theprivate sector in the economy. To reach thesegoals the Government will maintain strongmacroeconomic management characterized byfiscal sustainability, prudent monetary policies,and the avoidance of short-term ad hoc measures.A major contribution of the ANDS has been thedetermination of budget ceilings that reflect theGovernment’s sectoral priorities. These arebeing built into the MTFF and the Ministry ofFinance’s program-based budgeting systemfocused on achieving the country’s developmentneeds. Security will remain the Government’shighest priority, while the public expenditureprograms for investments in energy,water and irrigation, transportation infrastructure,agriculture, agro-based industry, and ruraldevelopment will remain high priorities,acknowledging the high importance of thesesectors for the development of the private sectorand for long term and sustainable employmentgrowth. In the coming years the Governmentwill also devote progressively moreresources on education, governance, health,and social protection.Acknowledging that in the near future, securitysector development remains the country’shighest priority, the Government is fully committedto successfully: (i) implementing an integratedand comprehensive national securitypolicy and strategy; (ii) building a robust securitysector reform program; (iii) strengtheningcivil and military operations; (iv) increasing therole of security forces in counter-narcotics activities;and (v) strengthening the civilian componentsof security entities. While internationalassistance is vitally necessary at the presenttime, the Government is planning andlooking forward to taking on an increasingshare of the responsibility for security-relatedactivities in Afghanistan. This requires sufficientresources to enhance the capabilities ofthe country’s armed forces, including the ANA,ANP and NSD, which is only possible throughjoint efforts and long-term commitments of theinternational community to Afghanistan.Good governance and adherence to the rule oflaw are much needed reforms that the Governmentis committed to pursue. Whilst thedonor community can support reforms andprovide technical assistance, these reformshave to be initiated by internal decisions to implementimprovements in governance. Withoutgood governance and a sustained socialcontract for the acceptance of the rule of law,the total development strategy that has beendeveloped will fail. This is because the strategyhas at its core, the development of a privatesector that will provide economic growth anddemand for skilled labor. In this framework,the ANDS approach has been to encourage thepublic sector to concentrate on the creation of asafe and conducive environment that encouragesthe smooth operation of a robust privatesector. This means a much greater focus byGovernment on governance issues rather thaninvolvement in the production of goods andservices that can be provided by a significantly188Afghanistan National Development Strategy (ANDS)

larger and more efficient private sector. TheAfghan ‘ownership’ of the strategy requiresthat the Government seeks donors close cooperationin capacity building and know-howtransfer, so that a system can evolve that allowsthe best parts of the functional traditional governancesystem to co-exist with a universalsystem that recognizes and supports principlesof social diversity, respect for human rightsand the rule of law.The successful implementation of the ANDSstrategies for social and economic developmentis expected to contribute substantially to thelong term transformation of Afghanistan. Atthe center of these strategies is the creation ofconditions for accelerated private sector development.The Afghan private sector is nowquite weak after years of isolation and an almosttotal lack of investment. The limited foreigninvestment that has taken place has beenlargely in the telecommunications industry.The Government is taking steps to establish anenabling environment, based on sound marketorientedpolicies and an adherence to the ruleof law. There is great potential to attract privateinvestment in the critical areas of infrastructureand natural resource development –including power generation, commercial agricultureand agro-based industry, developmentof water resources, and mining. To realize thisenormous potential, the Government is developingthe legal and regulatory structures requiredto enable private investment to operateprofitably.Given the devastated condition of much of thecountry’s ‘hard’ and ‘soft’ infrastructures, hugepublic investments, particularly in agriculture,energy and water resources development, andtransportation infrastructures will be necessaryto create conditions in which the private sectorcan be competitive and successful. With donorassistance, considerable investment in essentialinfrastructure is currently being undertaken,particularly in roads, power, commercial agriculture,healthcare, and education and vocationalskills. The Government intends to undertakepublic investment in infrastructure inways that complement private investment inthese areas or using public-private partnershiparrangements whenever feasible.It will take many years for a large competitiveprivate sector to emerge in Afghanistan. Animmediate goal of the ANDS is to put thepieces in place for this process to realizequickly and effectively. It is expected that infive years substantial progress will at least bemade towards providing reliable access to electricityand water; the ability to efficientlytransport goods throughout the country and tomarkets in neighboring countries; the implementationof major investments in commercialagriculture and minerals development to beunderway; and for all Afghan businesses tooperate formally with reliable legal protections.The central objective of the ANDS is the reductionin poverty. Afghanistan is afflicted withextreme poverty for a large part of its population.As much as 42 percent of the populationlives below the poverty line, while a significantnumber of people live precariously, whereeven relatively small increases in the cost ofliving will have the potential to greatly increasethe numbers living in absolute poverty. Andtoday, like much of the rest of the world, theAfghan people are facing substantial increasesin the prices for food and fuel, which are havinga disproportionate impact on the poor. TheGovernment puts heavy emphasis on increasingemployment as the most effective meansfor reducing poverty. Unemployment and under-employmentare high – the unemploymentrate is estimated to be near 40 percent. It isrecognized that a high proportion of thegrowth in employment must come through thegrowth of a robust private sector.The Government and people of Afghanistanremain grateful to the international communityfor their considerable and timely assistance inovercoming the enormous security and developmentchallenges. The ANDS addresses thequestions of the amounts and distribution ofaid that will be required in the coming fiveyears and the most effective modes of delivery.The Government expects that donors will aligntheir support to reflect the priorities establishedin the ANDS. The successful implementationof the ANDS under the Integrated Approachwill require greater coordination and increasedresponsiveness on the part of the Governmentand donors. Achieving alignment between thecountry’s priorities and aid programs, and effectivelyadjusting priorities and programs asconditions change require a continued strongpartnership between Afghanistan and the internationalcommunity embodied in the JCMB.Monitoring Framework 189

Afghanistan faces extremely difficult challengesthat will take many years to fully overcome.The successful transformation of Afghanistanto a secure and developing countryis vital not only for the Afghan people, but toneighboring countries in a volatile region andto the entire world. The ANDS represents animportant step towards achieving these objectivesshared by the country and its internationalpartners.190Afghanistan National Development Strategy (ANDS)

APPENDICES

APPENDIX INational Action Plan (2009 – 2013)PILLAR : SECURITYSECTOR : SECURITYExpected Outcomes Policy Actions and Activities Category Timeframe Responsible AgencyEffectively coordinated securitysectorMonitor and coordinate security issues between ministries and departments andestablish 13 coordination centersInstitution Development2008 - 2013 NSC, MoD, MoI, NDS,MCN, MoFAANA operationally capable ofperforming those missions andtasks assignedRecruit additional personnel to reach the newly agreed 80,000 army ceiling withadditional 6000 staff of mentors, trainers etcRevise Operations and tactical structures and new weaponry to be provided thenaccordinglyInstitution Building ongoing - end 2009 MoDInstitution Building 2007 - 2013 MoDEquip the ANA with technical and administrative support Institution Building 2008 - 2013 MoDEquip the ANA by Land and Air force Development 2008 - 2013 MoDEstablish new ANA training centers Development 2008 - 2013 MoDEquip existing ANA training centers/Academies Development 2008 - 2013 MoDReform and capacity building of the ANA to a sustainable level Development 2008 - 2013 MoDStrengthen logistical support to the Army in regional and provincial battalions Institution Building 2008 - 2013 MoDEstablish computerized system in MoD to strengthen human resource, financial andprogram managementExtensive training schemes to equip national units to fight terrorism and anti governmentelementsFocus on conflict prevention programs in areas where anti government activities areripeInstitution Building 2008 - 2013 MoDDevelopment 2008 - 2013 MoDDevelopment 2008 - 2013 MoDInformation campaigns about the benefits of peaceful processes Development 2008 - 2013 MoDANA expenditures are fiscallysustainableANP operationally capable ofperforming those missions andtasks assigned and crime ratesreducedDevelop a ‘Right-financing’ approach to the security sector Institution Building 2008 - 2013 MoDRecruit Personnel to reach the Benchmark of 82,000 Institution Building ongoing - End 2010 MoIEquip the Police with technical and administrative support Institution Building 2008 - 2013 MoIReform and capacity building of the ANP and ABP to a sustainable level Development 2008 - 2013 MoIStrengthen logistical support to ANP and ABP in regional and provincial centers Institution Building 2008 - 2013 MoIAfghanistan National Development Strategy (ANDS) 193

PILLAR : SECURITYSECTOR : SECURITYExpected Outcomes Policy Actions and Activities Category Timeframe Responsible AgencyOperational border posts able toprotect national sovereignty, levyand collect custom duties andprocess those collections to thecentral government.ANP and ABP expenditures arefiscally sustainableReduced level of deaths and casualtiescaused by UXOs, reduce thenumber of affected communitiesand increased safety precautionsEnhanced public trust on governmentability to deliver justice andsecurity as IAGs are disbandedand reintegratedEventual eradication of PoppyProduction and crack down ondrug traffickingConstruct new Stations and Substations for Police in Provinces Institution Building 2008 - 2013 MoIEstablish/Equip Fire Brigade Departments Institution Building 2008 - 2013 MoIRestore Traffic signals structure in Urban areas and highways Development 2008 - 2013 MoIEstablish/Equip Health care centers/facilities for Police in center and provinces Development 2008 - 2013 MoIExtensive training schemes to equip national units to fight terrorism and anti governmentelementsFocus on conflict prevention programs in areas where anti government activities areripeInstitution Building 2008 - 2013 MoIDevelopment 2008 - 2013 MoIInformation campaigns about the benefits of peaceful processes Development 2008 - 2013 MoIConduct training to increase the capacity of Afghan National Police forces to enforcethe law against poppy cultivation and drug traffickingInstitution Building 2008 - 2013 MoIMoI reform to support the transformation of police Institution Building 2008 - 2013 MoIEstablish computerized system in MoI to strengthen human resource, financial andprogram managementInstitution Building 2008 - 2013 MoIReform, train and equip the Border Police Institution Building 2008 - 2013 MoIEstablish/Rehabilitate and equip Border Posts Institution Building 2008 - 2013 MoIDevelop a ‘Right-financing’ approach to the security sector Institution Building 2008 - 2013 MoIImprove revenues and finance security sector spending; this includes licenses toprivate security companiesClear 90% of all known mine/ERW contaminated areas by 1391 (2012). The goalfurthermore is to clear all emplaced antipersonnel mines by 1391 (1 March 2013)Institution Building 2008 - 2013 MoIDevelopment 2008-2013 MoFAAll unsafe unserviceable and surplus ammunition will be destroyed Development 2008-2013 MoFA, MoIDIAG plans need to be instated and properly implemented Development ongoing - (by end of2011)Coordinate and target poppy eradication, in particluar where the beneficiaries aresupporting anti government activitiesConduct training to increase the capacity of Afghan Security forces to enforce thelaw against poppy cultivation and drug traffickingDDR/DIAG, MoDInstitution Building 2008 - 2013 MCN, MoD, MoIInstitution Building 2008 - 2013 MCN, MoI194Afghanistan National Development Strategy (ANDS)

PILLAR : SECURITYSECTOR : SECURITYExpected Outcomes Policy Actions and Activities Category Timeframe Responsible AgencyCooperate and coordinate with neighboring countries with intelligence sharing,particular with regard to drug smuggling across borders.Conduct effective information campaigns against poppy production and drug trading.Institution Building 2008 - 2013 MCN, MoIDevelopment 2008 - 2013 MCN, MoIPILLAR : GOOD GOVERNANCESECTOR : GOVERNANCE AND HUMAN RIGHTSObjectives or Outcomes Policy Actions or Activities Category Timeframe Responsible AgencyEmpowered National AssemblyReformed Public AdministrationCorruption ReducedTechnical and Administrative Support Training Institutional Development Jaddi 1392 (end-2013) Meshrano Jirga, WolosiJirgaCapacity Building Institutional Development Jaddi 1392 (end-2013) Meshrano Jirga, WolosiJirgaPublic Administration Reform Institutional Development Jaddi 1392 (end-2013) IARCSCOversee/Implement/Monitor Training and Capacity Building of Public SectorWorkforceInstitutional Development Jaddi 1392 (end-2013) IARCSCAppoint civil servants based on Merit Institutional Development Jaddi 1392 (end-2013) IARCSCOversee/Implement/Monitor Performance-based Reviews Institutional Development Jaddi 1389 (end-2010) IARCSCTake effective measures to Reduce Corruption Institutional Development Jaddi 1392 (end-2013) GIAAC, President's Office,other MinistriesMonitor Corruption at high places of Government Institutional Development Jaddi 1387 (end-2008) GIAAC, President's Office,other MinistriesLaunch E-Government Applications Institutional Development Jaddi 1387 (end-2008) President's Office, MoICTImplement Public Complaints Mechanism Institutional Development Jaddi 1387 (end-2008) President's office, GIAAC,MoJ etcMid-term plans formulated and implementedDevelopment/ Gender CrossCutting IssuesJaddi 1387 (end-2008)Inter-ministerial ConsultativegroupCredible institutional infrastructure established Institutional Development Jaddi 1387 (end-2008) All relevant ministriesEnhance Research & Data management CapacityPublic sector reforms instituted incorporating anti-corruption issuesDevelopment/ AC CrossCutting IssuesInstitutional/ AC Cross CuttingIssuesJaddi 1387 (end-2008)Jaddi 1387 (end-2008)IARCSC, all ministriesIARCSC, all Ministries andAgenciesAfghanistan National Development Strategy (ANDS) 195

PILLAR : GOOD GOVERNANCESECTOR : GOVERNANCE AND HUMAN RIGHTSObjectives or Outcomes Policy Actions or Activities Category Timeframe Responsible AgencyEnhanced Availability ofInformation to Public andEnforcementImproved Participation ofWomen in GovernanceNation Prepared for DisasterManagementStrong and Capable IndependentElection Commissionholding regular nationaland sub national Elections asmandated by the ConstitutionSingle National IdentityDocumentRegulations and monitoring mechanism for the private sector developmentdeveloped and implementedImplement Public awareness programs on anti-corruption issuesInstitutional/ AC Cross CuttingIssuesDevelopment/ AC CrossCutting IssuesJaddi 1387 (end-2008)Jaddi 1387 (end-2008)Consultative groupAll Ministries and Agenciesalong with their sub nationalunitsRight to Information Available to People Legislation Jaddi 1389 (end-2010) IDLG, GIAAC, OoP, MoJ,Cabinet, National AssemblyEnforce Sanctions against those involved in the drugs trade Institutional Development Jaddi 1389 (end-2010) MoI (Police), MCN, AGO,IARCSCProductivity Commission advising the Cabinet Institutional Development Jaddi 1389 (end-2010) GIAAC, MoJ, Cabinet, NationalAssemblyImplement National Action Plan for Women Institutional Development Jaddi 1389 (end-2010) MoWA, All other ministries& AgenciesAffirmative action available to women Legislation Jaddi 1389 (end-2010) MoJ, Cabinet, National Assembly,Office of PresidentPiloting of a Regional Leadership Institute for Women in 2 areasCapacity Building Program for Women in Government at the level of NationalAssembly, provincial council and women laid off by the PRR processesCapacity Building for Ministries and LGUs on Gender Sensitive BudgetingEstablishment of Women’s Councils at the District LevelGender awareness raising of senior officials of governmentInstitutional Development/Gender Cross Cutting IssuesDevelopment/ Gender CrossCutting IssuesInstitutional Development/Gender Cross Cutting IssuesDevelopment/ Gender CrossCutting IssuesJaddi 1387 (end-2010)Jaddi 1389 (end-2010)Jaddi 1389 (end-2010)Jaddi 1389 (end-2010)IARCSCIARCSCIDLGIARCSCEstablish an effective system of disaster preparedness and response Institutional Development Jaddi 1389 (end-2010) ANDMA, IDLGIndependent Election Commission Capable to fulfill its Role Institutional Development Jaddi 1388 (end-2009) Election Commision, IDLG,PolicePermanent Voters Registry Available Institutional Development Jaddi 1388 (end-2009) Election Commision, IDLG,MoISub National Elections Regularly held Institutional Development in the year 1389 (2010)and 1392 (2013)Establish civil registry with a single national identity document Institutional Development Jaddi 1392 (end-2013) MoI, IDLGCensus and Statistical Base- Census Completed and Results Published Institutional Development Jaddi 1387 (end-2008) CSOElection Commision, IDLG,Police196Afghanistan National Development Strategy (ANDS)

PILLAR : GOOD GOVERNANCESECTOR : GOVERNANCE AND HUMAN RIGHTSObjectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agencyline Data available for use ofthe nationVillages and Gozars MappedModern Land AdministrationSystemEstablished and A fair Systemfor Settlement of LandDisputes AvailableGovernment Connected toPeople and Increased reachof the Government bystrengthening sub-nationalgovernanceGovernment Offices physicallyequipped to fulfill theirRoleStatistical Baselines Established and the Statistical Capacity Built Jaddi 1392 (end-2013) CSO, MoFVillage and Gozar Boundaries Reviewed Institutional Development Jaddi 1387 (end-2008) AGCHO, IDLG, MUD,MRRDMapping of Villages and Gozars Institutional Development Jaddi 1388 (end-2009) AGCHO, IDLG, MUD,MRRDEstablish Modern Land Administration System Institutional Development Jaddi 1387 (end-2008) SC, MUD, MAIL, MoJ,AGCHOEstablish A fair System for Settlement of Land Disputes Jaddi 1386 (end-2007) SC, MUD, MAIL, MoJ,AGCHO, IDLGDevelop Sub National Governance Policy Legislation end-1389 (20 March2011)Ensure Peoples’ Participation in Sub National Governance Institutional Development end-1389 (20 March2011)Empower Provincial Councils Institutional Development end-1389 (20 March2011)IDLG, MoJ, OoP, NationalAssemblyIDLG, Election Commission,Prov. Councils, MoJIDLG, MoJ, Offfice ofPresident, National AssemblyLaw on District Councils, Municipal Councils, and Village Councils Legislation The President, IDLGRegular Elections of District Councils, Municipal Councils, Mayors and VillageCouncilsEmpowered District Councils, Municipal Councils, Elected Mayors and VillageCouncilsCapacity built, the structures reformed, the processes streamlined in the provinces,districts and municipalitiesInstitutional Development Election Commision, Prov.CouncilsInstitutional Development Office of President, IDLGInstitutional Developmentend-1389 (20 March2011)Reform Sub National Public Administration Institutional Development end-1389 (20 March2011)Instutionalize Provincial Planning and Provincial Budgeting Institutional Development end-1389 (20 March2011)IDLG, IARCSCIDLG, IARCSC, Office ofPresidentIDLG, MoF, All ministriesEmpower Municipalities Institutional Development Jaddi 1392 (end-2013) IDLG, KM, MoF, IARCSCFacility and Amenities to the Government Offices Reviewed Development Jaddi 1387 (end-2008) All ministries and agenciesBasic Facility and Amenities Provided to all Government Offices Development end-1392 (20 March2013)All ministries and agencies,MoFAfghanistan National Development Strategy (ANDS) 197

PILLAR : GOOD GOVERNANCESECTOR : GOVERNANCE AND HUMAN RIGHTSObjectives or Outcomes Policy Actions or Activities Category Timeframe Responsible AgencyFree Flow of Informationfrom all the District CentersCommunication with theGovernment made EasyYouth Involved in GovernanceHuman Rights Realized,Protected, Promoted andExtendedFree Flow of Information from all the District Centers Institutional Development end-1389 (20 March2011)Communication with the Government made Easy through the websites Institutional Development end-1389 (20 March2011)Provide Definite Mechanisms for youth involvement Institutional Development end-1389 (20 March2011)Ministries, MoICT, IDLG,Office of PresidentAll the Ministries and Agencies,MoICTIDLG, Dept of YouthHuman Rights Realized, Protected, Promoted and Extended Institutional Development Jaddi 1389 (end-2010) IDLG, National Assembly,MoI, MoJ, MoUD, MoCI,MoWA, MoD, MoLSAMD,MoRR, MoE, AIHRC, andall relevantAction Plan on Peace, Justice and Reconciliation Implemented Institutional Development Jaddi 1387 (end-2008) AIHRC, Office of President,NA, SC, MoJ, IARCSC,othersPILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible AgenciesPublic can rely on effectivelyorganized and professionallystaffed justice institutionsAnalyze and develop recommendations regarding justiceinstitutions’ record-keeping practices in order to improveaccuracy and irretrievability and to avoid redundant processesAnalyze and make recommendations for improving existingremuneration and human resources systems in justice institutions.Support development and introduction of institutionspecificremuneration and human resources schemes, suchas pay and grading and performance evaluation measuresJustice institutions to establish links with universities forrecruiting candidates (e.g., job fairs and short internships).Survey, develop and implement recommendations to improveexisting career development practices in each institutionwith particular attention to complying with genderbenchmarks.Institution Building By year 2 SC,MoJ,AGOInstitution Building By year 1 SC,MoJ,AGOInstitution Building By Year 2 Program Oversight CommitteeInstitution Building Year 3 and on MoJ, AOG, SC, MoHEInstitution Building Year 3 and on SC,MoJ,AGO, MoWA, MoHEDevelop institutional capacity to train professionals Institution Building Year 2 and on SC,MoJ,AGO, ICCD198Afghanistan National Development Strategy (ANDS)

PILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible AgenciesLegal education and vocationaltraining are adequateto provide justice professionalswith sufficient know-Analyze and, in consultation with stakeholders, developrecommendations for improving the organizational, managementand administrative structures of justice institutionsto enable them to fulfill their respective mandates and functionsat headquarters and at provincial and district levelofficesDevelopment By year 2 SC,MoJ,AGOImplement recommendations Development Year 3 and on SC,MoJ,AGOImplement security measure for Judges safety Development By end year 4 SC, MoJ, MoIPublic information system improved Development Year 2 on MoJEnhanced awareness of public in general and women inparticular of women's legal rightsPublic demands Sexual Harassment and grievance handlinglaws/policy to be enactedJustice institutions construct, acquire or make functional ona priority basis infrastructure necessary to expand deliveryof justice services throughout provincial and district areasoutside of regional centers.Assess and priorities equipment and supply needs of justiceinstitutions and establish effective and accountable procurementsystems.Provide equipment and supplies in accordance with needsassessment.Conduct comprehensive inventory of all transportationassets, indicating condition and expected lifespan.Survey existing asset management capacity and make recommendationsfor improvementJustice institutions acquire and maintain transportation assetssufficient to fulfill their tasks.Increased and improved facilities to deal with female offendersCreate and launch agreed core subject curriculum forSharia, law and political science faculties.Create and launch agreed core subject curriculum forSharia, law and political science faculties.Development Year 2 on MoWAYear 2 onDevelopment Year 3 and onDevelopment By end year 2 SC,MoJ,AGODevelopment Year 2 and on SC,MoJ,AGODevelopment By end year 2 SC,MoJ,AGODevelopment By end year 1 SC,MoJ,AGODevelopment Year 3 and on SC,MoJ,AGOInstitution Building Year 2 on MoJDevelopment By end Year 2 SC,MoJ,AGODevelopment SC,MoJ,AGOAfghanistan National Development Strategy (ANDS) 199

PILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible Agencieshow to perform their task Survey and make recommendations for enhancement oflegal research facilities, including a feasibility study of theestablishment of an advanced legal research institute.Development Year 3 to 4 SC,MoJ,AGOStatutes are clearly drafted,constitutional and the productof effective and consultativedrafting processesCreate stakeholder consultations to develop policy andplanning mechanisms for enhancing legal research capacity.Law and Sharia faculties establish links with foreign legaleducational institutions to enhance research capacity, includingforeign study programs for both students and staff.Universities identify and enhance infrastructure so as toaccommodate female students and staffUniversities develop and implement policies to raise percentageof female students and staff to at least 30 percentJustice institutions, in coordination with the IndependentNational Legal Training Center, develop appropriate vocationaltraining courses for justice professionals, payingspecific attention to the needs of female professionals.Justice institutions, in coordination with the IndependentNational Legal Training Center, develop and implementspecialized programs for continuing legal education, payingspecific attention to the needs of female professionals.Perform comprehensive needs assessment of Taqnin andmake recommendations for technical assistance and capacitybuildingProvide technical assistance and capacity building forTaqnin in line with recommendations.Establish a working body to promote greater cooperationand enhance the efficiency of the legislative drafting process.An indexed compilation of all laws in force is assembledand updated regularly.Taqnin conducts a review of the constitutionality of all lawsin force, and recommends amendments to ensure constitutionality.Unconstitutional laws are amended to ensure constitutionalityAssess capacity of government institutions and entities todraft laws and make recommendations for enhancing thatDevelopment Year3 to 4 SC,MoJ,AGODevelopment Year 2 and on MoHE, MoFADevelopment By year 2 MHE, MoJDevelopment By end year 2 MHE, MoJDevelopment By end year 2 INLTCDevelopment Year 3 and on SC,MoJ,AGO, INLTCInstitution Building By end Year 1 MoJ, National AssemblyInstitution Building Year 2 and on MoJInstitution Building Year 2 and on MoJ, National AssemblyDevelopment By end Year 3 and on MoJDevelopment By end Year 3 and on SC,MoJ,AGO, MoIDevelopment Year 3 and on National Assembly, MoJ, AOGDevelopment By end year 2 MoJ200Afghanistan National Development Strategy (ANDS)

PILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible AgenciescapacityJustice institutions effectivelyperform their functionsin a harmonized andinterlinked mannerImplement recommendations for enhancing legislativedrafting capacity in justice institutions.Establish a Taqnin working group to make recommendationsfor inclusion of civil society stakeholders in legislativedeliberations.Development commencing year 3 MoJDevelopment Year 2 MoJImplement recommendations Development Year 3 and on MoJDevelop and implement procedures to safeguard and furtherthe role and function of defense attorneys in criminal investigationsand trialsUpdate and implement court regulations in order to facilitatefiling and tracking of civil and criminal cases (includingAGO Information System).Create and establish the Program Oversight Committee,together with requisite administrative and logistical supportLegislation Year 1 and on AGO, MoJLegislation By end Year 4 SC, AGOInstitution Building By commencement Year 1 SC, MoJ, AGOCreate and establish the Program Implementation Unit Institution Building By commencement Year 1 Oversight CommitteeDesign and administer a baseline survey of legal systemperformanceImprove information sharing between justice institutions,and coordinate information management and interfacing.Develop, establish, and implement measures and mechanismsto improve police prosecutor coordination in criminalmatters; and addressing the cross-cutting issuesIntroduce effective “one-stop” complaints system coveringall justice institutions.Enhance capacity of police and prosecutors to conduct proactivecriminal investigations.Institution Building By end Year 1 MoJInstitution Building Year 3 and on SC, MoJ, AGOInstitution Building Year 1 and on AGO, MoI, MoJInstitution Building Year 2 and on SC,MoJ,AGOInstitution Building Year 2 and on AGO, MoIEnhance capacity for managing corruption issues. Institution Building Year 2 on SC, MoJ, AGO, MoITrain judges, lawyers and prosecutors in trial practices andtrial management.Assessment of information interfacing needs of AGO, MoI,MoJ, courts, and other specialized agencies.Institution Building Year 2 and on SC,MoJ,AGOInstitution Building By end Year 1 SC,MoJ,AGOAssessment and improvement of paper-based case file and Institution Building By end Year 1 SC,MoJ,AGOAfghanistan National Development Strategy (ANDS) 201

PILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible Agenciescase tracking systems.Citizens are more aware oftheir rights and justice institutionsare better able toenforce them.Evaluate the viability of converting paper-based file systemsto combined paper and electronic file systemsJustice institutions develop plans and implement coordinationmechanisms for specialized units addressing crosscuttingissuesRecruit qualified professionals with specialized knowledgeof cross-cutting issuesInstitution Building Year 2 and 3 Program Oversight CommitteeInstitution Building Year 2 and on Program Oversight CommitteeInstitution Building Year 2 and on Program Oversight CommitteeJustice mitigation measures are developed Institution Building MoJBuild capacity of judges, prosecutors, and investigators bytraining on cross-cutting issues.Assess the needs of the justice institutions and citizens forlegal materials.Compile and distribute legal materials in response to needsand establish system for routine updating of legal resources.Develop and distribute judicial and procedural manuals forlegal professionals, including judges, prosecutors and defenseadvocates.Survey and standardize routine legal documents (e.g.,bonds, title deeds, marriage certificates and certificates ofthe courts) and the existing systems for registering, indexingand retrieving them.Distribute forms to relevant justice facilities nationwide andtrain staff to use them and make them available to the publicfor standardized nominal fees.Pilot an electronic storage and retrieval system for legalregistration documentsDesign legal awareness programs paying particular attentionto:• Successes and lessons learned from previous campaigns• Human rights and Islamic values• The rights of women and children• The needs of illiterate persons• Transitional justice• The roles of each justice institution in promoting access tojustice for all.Institution Building Year 2 and on Program Oversight CommitteeDevelopment By end Year 1 MoJDevelopment By end Year 3 MoJDevelopment From Year 2 on MoJDevelopment By Year 4 and on MoJDevelopment By Year 4 and on MoJDevelopment Year 2 to 3 SC,MoJ,AGODevelopment Years 1 - 3 MoJImplement legal awareness programs, in coordination with Development Commence end Year 2 on MoJ, IDLG202Afghanistan National Development Strategy (ANDS)

PILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible Agenciesactivities expanding formal justice systems to provinces.Civil justice is administeredeffectively, and in accordancewith law, the Constitution,and international standardsCriminal justice is administeredeffectively, and in accordancewith law, the Constitution,and internationalnorms and standardsConduct baseline survey legal aid service provision Development Commence end Year 2 on MoJConsider options and costs of various models for legal aiddelivery, and draw up recommendations for a legal aid system.Development By Year 2 MoJImplement legal aid recommendations Development Year 2 and on MoJConduct needs assessment and survey of obstacles to accessto and use of formal legal system.Draw up recommendations to increase access to and use offormal legal systemDevelopment By end Year 1 MoJDevelopment By end Year 1 MoJSurvey of legal gateways to justice services. Development By end Year 1 MoJConsider options and costs of various models for improvingaccess to formal system, and draw up recommendationsDevelopment By end Year 1 MoJImplement recommendations to improve access Development Year 2 and on SC,MoJ,AGOGenerate public awareness about corruption and anticorruptionissuesstrengthened institutional response to stop violence againstwomenimproved capacity of the provincial govt to address anddeal with VAWReview existing civil justice processes and practices, includingenforcement of judgments, and develop recommendationsbased on the findings.Public demands Sexual Harassment and grievance handlinglaws/policy to be enactedStrengthen the legal framework so as to improve responsivenessto the needs of juvenile offenders and children inconflict with the lawStrengthen the legal and institutional framework for childrenaccompanying their parents in prison.Develop and implement policy recommendations for improvingsentencing, detention, and conditions of prisoners.Development Year 2 on SC,MoJ,AGOInstitution Building Year 2 on SC,MoJ,AGODevelopment Year 3 and on SC, SGO, MoJInstitution Building Year 2 MoJ, AOG,, SCLegislation Year 2 and on National Assembly, MoJ, AOGLegislation From Year 2 on MoJLegislation From Year 2 on MoJLegislation From Year 2 on MoJAfghanistan National Development Strategy (ANDS) 203

PILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible AgenciesJustice institutions are transparentand accountablePromote practices within the justice institutions that aresupportive of the rights of victims, witnesses, the accused,and those convicted of crimesFamily Response Units, staffed by all female police officers,are functional in all provinces, and are effectivelylinked with Special Victims Units in the AGO.Develop and implement training programs for correctionsofficials incorporating recommendations based on analysis.Rationalize and update civil justice process and practices,including enforcement of judgments, in accordance with thedeveloped recommendationsReview and analyze existing assistance, programs and activitiesfor juvenile offenders and children in conflict withthe law.Develop information campaigns to enhance the public’sknowledge of the rights of victims, witnesses, and the accusedin the criminal justice systemProcedural code is amended to address specific needs ofwitnesses, including women and other vulnerable groupsEstablish a system to record past human rights abuses andto preserve the rights of victimsCarry out a baseline survey of prosecution efficiency andnumber of criminal complaints proceeding to trial.Develop a program for prioritizing prosecution resourcesaccording to seriousness of the offense.Review and analyze existing assistance, programs and activitiesrelating to sentencing practices, detention practices,and prisoner conditioners.Institution Building From Year 2 on SC,MoJ,AGOInstitution Building Starting Year 2 and on SC,MoJ,AGOInstitution Building By end year 4 MoJInstitution Building Starting Year 3 PAR (MoJ)Development By Year 1 MoJ, MOLSADevelopment Starting Year 2 and on MoJ, MOLSADevelopment By Year 3 MoJ, MOLSADevelopment Year 2 and on MoJ, MOLSADevelopment By end year 1 SCDevelopment By end year 2 AGODevelopment By Year 2 MoJRegulatory reforms, procedures and protocols established Institution Building Year 2 and on MoJCounter Narcotic Laws implemented Legislation Year 2 and on MCN, AGO, SC, MoIDevelop, finalize and disseminate codes of ethics for professionalsin justice institutions.Performance evaluation with special focus on corruptionincorporated as part of the system transparency and accountabilityInstitution Building By end Year 1 SC,MoJ,AGOInstitution Building Year 2 and on SC,MoJ,AGOTrain justice professionals on ethics code. Institution Building Year 2 on SC,MoJ,AGO204Afghanistan National Development Strategy (ANDS)

PILLAR : GOOD GOVERNANCESECTOR : JUSTICE AND THE RULE OF LAWExpected Outcomes Policy Actions and Activities category Time frame Responsible AgenciesDesign and establish dedicated and effective institutionalunits and procedures to advice on and enforce codes ofethics.Improve the professional and ethic standards of attorneys atlaw through an Independent Bar Association.Develop and standardize informational materials on themission, the function and the operating procedures of eachjustice institution and make it available to the public.Establish a dedicated office within each justice institutionand organization capable of acting as a focal point for publicinquiries.3 Justice institutions participate in a commissioned study ofthe feasibility of introducing administrative law structuresand procedures to enhance accountability of governmentinstitutionsImplement the activities related to operations of the justicesector contained in the National Anti Corruption Strategy.Institution Building Year 2 and on SC,MoJ,AGOInstitution Building Year 2 and on SCInstitution Building By end year 3 MoJInstitution Building By end Year 3 SC,MoJ,AGOInstitution Building Year 4 and on MoJInstitution Year 2 and on SC,MoJ,AGOPILLAR : ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENTSECTOR : PRIVATE SECTOR DEVELOPMENT AND TRADEObjectives or Outcomes Policy Action or Activities Category Timeframe Responsible AgencyThe legal framework for thebusiness sector is improvedEnact the required laws (Corporations, Partnerships, Commercial Arbitration,Commercial Mediation, Contracts, Agency, Standards, Copyrights, Trademarks,and Patents) to complete and update the basic legal and regulatoryframework governing private sector activity in social and economic development.Government, business and the international community to make astronger effort in lobbying National Assembly regarding the urgency of enactinglaws.Invest in capacity building for National Assembly so that MPs are better informedand supported in their role and understanding of the rationale, use andcontent of proposed laws.Establish the principle and formalize and standardize processes to consult withthe private sector (business and civil society) in a meaningful and timely mannerduring the process of drafting policies and laws.Legislation Mid-1389 Cabinet, DAB and NationalAssemblyInstitution Building Mid-1388 National Assembly and donorsLegislation End-1386 Cabinet, DAB and NationalAssemblyAfghanistan National Development Strategy (ANDS) 205

PILLAR : ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENTSECTOR : PRIVATE SECTOR DEVELOPMENT AND TRADEObjectives or Outcomes Policy Action or Activities Category Timeframe Responsible AgencyPrivate sector access to financeis increasedEstablish the principle that no law can be implemented unless it has been gazetted,published in the newspapers, and made available electronically and inhard copies at no cost. Explore the option of using the Afghanistan NationalDevelopment Strategy (ANDS) website as an interim solution for publishinglaws after their enactment. Publish the tariff structures on the Ministry of Financewebsite.Amend the tariff legislation to facilitate ROZ (Reconstruction OpportunityZone) trade along the border with PakistanEndorse the authority of mediation and arbitration tribunals to resolve privateprivateand private-public disputes, including land issues.Ensure the competency and transparency of tribunals by establishing standardsand building the capacity of arbitrators, mediators and lawyers.Legislation End-1386 Ministry of Justice, Ministry ofFinance, ANDSlegislation/ RC CrossCutting IssuesInstitution Building Mid-1389 MoJInstitution Building Mid-1389 MoJUndertake financial audits of State Owned Enterprises Other Measures Mid-1388 MoCI, MoFPrivatize and corporative state owned assets Other Measures Mid-1389 MoCI, MoFMoCI, MoJ, MoFA, MoFImplement an adequate insurance law. Legislation Mid-1389 MoF, DAB, FIsEncourage the development of an appropriately regulated private insurancesector.Work with donors to create risk management tools for domestic and foreigninvestors, appropriate to the specific risks of investing in Afghanistan.Lay out a concrete strategy with time-bound actions to significantly expandthe outreach and range of financial products and services, especially targetingsmall and medium enterprises.Enact an appropriate legal framework including passage of four financial laws:Secured Transactions, Mortgage, Leasing and Negotiable Instruments.Build capacity in the financial sector by establishing an independent bankingand business training institute as a joint commercial bank – DAB initiative.Establish a credit information bureau to facilitate commercial and consumerlending.Establish a financial tribunal to provide swift legal decisions on financial disputes.Other Measures Mid-1388 MoF, DAB, FIsOther Measures End-1389 AISA/MIGAOther Measures Mid-1388 DAB, Afghanistan Bankers'Association, MicrofinanceInvestmentLegislation End-1388 DAB, Ministry of JusticeInstitution Building Mid-1388 DAB together with AfghanistanBankers' AssociationInstitution Building End-1388 DAB, Afghanistan Bankers'AssociationInstitution Building End-1388 DAB, Ministry of JusticeExpand provision of donor and private sector micro and SME finance Other Measures End-1388 MoF, MoCI, DAB, Afg Bankers'AssociationEstablish an office in DAB in conjunction with Ministry of Interior to providesecurity for cash in transit between banks and bank branches in Kabul.Institution Building Mid-1389 DAB in cooperation with Ministryof InteriorIncrease the offering of financial services in rural areas through the further Other Measures Mid-1389 Ministry of Agriculture, DAB,206Afghanistan National Development Strategy (ANDS)

PILLAR : ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENTSECTOR : PRIVATE SECTOR DEVELOPMENT AND TRADEObjectives or Outcomes Policy Action or Activities Category Timeframe Responsible AgencyThe government uses Public-Private Partnerships to expandinfrastructureSurplus land is used by theprivate sector to increaseeconomic activitydevelopment of effective and sustainable delivery mechanisms with specialconsideration to women.Implement the agreed upon privatization strategies in Bank-e-Milli and PashtanyBank, including the placement of professional management and board torestructure the banks free of government interference.Ensure the evolving legal framework to permit and encourage power generationand distribution by the private sector, including through the establishmentof Public-Private Partnerships (PPPs).Accelerate the execution of priority power generation initiatives: (a)Sheberghan natural gas generation project; (b) the high voltage transmissionline from Tajikistan.Improve distribution system, beginning with Kabul, including through outsourcingof billing and collections and by providing information to the privatesector on opportunities to invest in electricity supply.Corporatize DABM (national electricity company) with qualified managementteam selected through transparent process.Launch pilot initiatives in non-grid small and medium-scale provision insmaller cities and in community-based rural power, including micro-hydropower.MISFAInstitution Building Mid-1387 Ministry of Finance and DABLegislation Mid-1387 Ministry of Energy and WaterOther Measures End-1386 Ministry of Energy and WaterOther Measures Mid-1387 Ministry of Energy and Water,DABMInstitution Building Mid-1387 Ministry of Energy and Water,DABMOther Measures Mid-1387 Ministry of Energy and WaterNegotiate competitive terms for reliable power supply from Central Asia. Other Measures Mid-1387 Ministry of Energy and WaterEstablish a liaison mechanism for joint forums with Business/Trade/Employers’association.Trade Facilitation Zones (TFZ) in key areas of Afghanistan that will connectdistrict and provisional level production to regional and international marketsby providing the basic infrastructure for processing, packaging and storage.Draft legislation based on the recommendations of the land policy that compriseslegal frameworks for land registration; land adjudication, includingcommunity-based systems; and the formalization of informal land holdings,including legislation for adverse possession.Implement improved simplified procedures for transfer of privately ownedland.Clarify and simplify the procedures associated with the transfer of publiclyownedand privately-owned land.Institution Building/ RCCross Cutting IssuesOther Measures/ RCCross Cutting IssuesMoCI, AISAMoCI, othersLegislation End-1387 Ministry of Justice, Ministry ofAgricultureOther Measures End-1387 Ministry of Justice, Office ofthe PresidentInstitution Building Mid-1387 Ministry of JusticePermit foreign investors to obtain access to land through 90-year leases. Other Measures Mid-1387 Ministry of JusticeAfghanistan National Development Strategy (ANDS) 207

PILLAR : ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENTSECTOR : PRIVATE SECTOR DEVELOPMENT AND TRADEObjectives or Outcomes Policy Action or Activities Category Timeframe Responsible AgencyRegulations, taxes and licensesare streamlined andbetter enforcedCivil society groups are ableto operate effectively to aidExtend the duration of leases for government land and ensure that they areeither wholly or partly transferable.Develop a strategy for industrial parks, including the creation of an industrialpark development department as an independent authority.Consolidate the registration of private sector entities and the issuance of taxidentification numbers into a single platform, extending the service to smallerbusinesses.Remove licensing requirements except for reasons of health, safety, environmentalprotection, land use and access to natural resources.Make necessary business licenses more effective by re-engineering andstreamlining themAdopt the principles of regulatory best practice (RBP) to ensure that new regulationsare appropriate and minimize compliance costMinimize compliance costs for SMEs by introducing appropriate administrativeand reporting exemptions for SMEsOther Measures Mid-1387 Ministry of JusticeOther Measures End-1387 Ministry of Commerce andIndustry, AISAInstitution Building End-1387 Ministry of Commerce andIndustryOther Measures Mid-1387 Ministry of Commerce andIndustryInstitution Building 12 months Ministry of Commerce andIndustryLegislation 18 months Ministry of Commerce andIndustry, Ministry of JusticeOther Measures 12 months Ministry of FinancePublish comprehensive information on licensing requirements and procedures Other Measures 12 months Ministry of Commerce andIndustryEducate private sector stakeholders’ (investors, employers, employees andconsumers) to increase awareness and understanding of their legal and regulatoryrights and responsibilities.Establish and enforce “one-stop collection points” for tax payment and othergovernment revenue collection in every district centre.Continue to eliminate nuisance taxes and reform the tax system to make itsimpler, fairer, more competitive and easier to comply withReform and revitalize the High Commission on Investment (HCI). Ensure thatAISA is an effective secretariat; ensure that it meets regularly (starting in thenext 14 days); focus it on policy issues; introduce increased private sectorrepresentation; improve member selection process to focus on competence andexperience; extend access to SMEs throughout the country. Report results ofHCI reform to the private sector.Apply customs regulations consistently across the country and commit toachieving an average time for importing and exporting goods in line with bestpractice in the region (reduced by at least half of current levels).Other Measures 12 months Ministry of Commerce andIndustryInstitution Building Mid-1387 Ministry of FinanceInstitution Building 12 months Ministry of FinanceInstitution Building End-1386 High Commission on Investment;AISAInstitution Building End-1387 Ministry of FinanceExamine the merits of outsourcing custom services Other Measures Mid-1388 Ministry of FinanceRevise, clarify and update the legal framework governing civil society organizations,including the NGO Law and Social Organizations Law, to cover civilLegislation End-1387 Ministry of Economy, Ministryof Justice with Civil Society208Afghanistan National Development Strategy (ANDS)

PILLAR : ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENTSECTOR : PRIVATE SECTOR DEVELOPMENT AND TRADEObjectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agencyin the development process.Economic activity increasesin response to increasedhuman capacity and skill setsand business servicessociety more comprehensively, easing the establishment / registration of CSOsand ensuring adequate (not burdensome) oversight.Develop self-regulatory mechanisms with clearly defined quality standards ora “code of conduct” to ensure that civil society organizations are well managed,accountable and their activities are well conceived, effective and attunedto the needs of Afghans, with governance models drawn from internationalbest practice.Establish independent certification bodies for civil society organizations thatare recognized by Government, the private sector, donor agencies and civilsociety while introducing the associated capacity building services required toachieve certification.Facilitate private sector involvement to offer short-cycle certificate-level educationfor school leavers to rapidly develop the skills of young people andadults that are crucial to economic development.Establish the modality for public-private partnerships in the provision of educationfrom basic education through to tertiary levels, including provision ofprofessional and vocational education.Computerize all HRM and project activities in MoCI to strengthen HumanResource and Program ManagementEstablish a coherent national policy framework to guide professional and vocationaleducation, linked to the overall higher education strategy that willensure coordination, assign clear accountability and set world-class standards(including the process for licensing, certification and accreditation).Border Management Initiative to focus on the establishment of effective andefficient Border Crossing Points/Facilities at each Border Control Zone ofAfghanistan.Consider quickly piloting specific market-based vocational and professionaltraining initiatives through coalition of Government, industry groups and traininginstitutions with special consideration to women.Create incentives for private sector to invest in education specific to skillstraining, mentoring and on-the-job training.Conceptualization of Private Sector Employment Strategy for Women that willyield to pro-women employment strategies in the private sectorInvest urgently in vocational and professional education to meet current needs,while simultaneously making parallel investments in reform of basic andstakeholdersLegislation Mid-1387 Civil Society with the endorsementof the Ministry ofEconomyInstitution Building End 1387 Civil Society with the endorsementof the Ministry ofEconomyOther Measures End-1386 Civil Society with BusinessOther Measures Mid-1387 Ministry of EducationInstitution Building/ ACCross Cutting IssuesMoCIOther Measures End-1387 MoEC, MoE, MoHE, MoLSA,Business Community, CivilSocietyOther Measures/ RCCross Cutting IssuesOngoingMoCIInstitution Building Mid-1387 MoEC, MoE, MoHE, MoLSA,MoWA, Business Community,Civil SocietyOther Measures End-1387 Ministry of Economy, Ministryof FinanceOther Measures/ GenderCross Cutting IssuesMoCI, MoWAOther Measures Mid-1387 Ministry of Labor and SocialAffairs, Ministry of Education,Afghanistan National Development Strategy (ANDS) 209

PILLAR : ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENTSECTOR : PRIVATE SECTOR DEVELOPMENT AND TRADEObjectives or Outcomes Policy Action or Activities Category Timeframe Responsible AgencyIncreased and more effectivecompetitionPublic-Private Partnershipsare used to aid social andeconomic developmentIncreased levels of formalizationIncreased provincial economicgrowthCivil society helps driveeconomic and social devel-higher education systems that will yield longer term results.Ministry of EconomyStrengthen chambers of commerce and business membership organizations Institution Building Immediate Ministry of Commerce andIndustryCo-ordinate public and private sector approaches to increasing access to essentialbusiness servicesOther Measures Mid-1388 Ministry of Commerce andIndustryIncrease access to information on current business development services Other Measures Mid 1387 Ministry of Commerce andIndustrySupport the establishment of accounting, auditing and other professional associationsand the adoption of related professional standardsCreate the legal framework for and ensure the rapid development of the AfghanistanNational Standards Authority (ANSA)Establish a consumer protection agency to define, communicate and protectconsumer rightsIdentify and implement three pilot projects to test new approaches in areassuch as power, water supply, transportation infrastructure and social development.Catalogue best practices drawn from across ministries (especially of Ministryof Health) of genuine partnerships between public and private sectors. Attentionon increased women participationDevelop programs of public-private partnership that would improve health,education, drug demand reductionDevelop a formalization strategy grounded in an understanding of the incentivesand disincentives facing business, which reduces entry costs to, and operatingcosts within, the formal sector and increases the benefits of formalizationEffectively communicate the nature and benefits of operating in the formaleconomyThe new Afghanistan Pakistan Transit Agreement (APTA), the revised versionof Afghan Trade and Transit Agreement (ATTA) signed with Pakistan in 1965Work with provincial public sector institutions to increase the consistency ofapplication of commercial laws and regulationsDevelop and implement economic growth strategies for provinces, based onprivate sector developmentCreate the necessary legal and fiscal incentives that actively encourage individualand corporate support for social and economic development.Institution Building Mid-1388 Ministry of Commerce andIndustryLegislation Immediate ANSAInstitution Building End-1389 ANSAOther Measures Mid-1387 MoEW, MRRD, MoT,MOLSAOther Measures Mid-1387 MoPH, MoE, MoLSAOther Measures/ CNCross Cutting IssuesEnd-1387Other Measures End-1387 MoCI, MoFMoPH, MoE, MoLSA, MCNOther Measures Mid-1388 Ministry of Labor, Ministry ofCommerce and IndustryOther Measures/ RCCross Cutting IssuesMoCI, MoFA, MoFInstitution Building End-1389 Ministry of Commerce andIndustryOther Measures Mid 1388 Ministry of Commerce andIndustryLegislation Mid-1387 Ministry of Finance210Afghanistan National Development Strategy (ANDS)

PILLAR : ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENTSECTOR : PRIVATE SECTOR DEVELOPMENT AND TRADEObjectives or Outcomes Policy Action or Activities Category Timeframe Responsible AgencyopmentThe Private Sector and Tradesector strategy is implementedImprove the legal framework governing corporate social responsibility (CSR)and philanthropy including creating a Foundation law; revising NGO law toallow CSOs to generate (non-commercial) revenue to ensure selfsustainability;creating tax deductions for giving; and developing new mechanismsfor private giving such as Zakat funds, a Diaspora fund and communityfoundations.Form a business donor's group to share best practices in corporate social responsibilityand philanthropy to create more flexibility, risk-taking and imaginativepractices in approaches to corporate giving, including lending goodbusiness practices to civil society.Increase trust and credibility of the civil society sector by establishing a systemto vet CSOs through standards that the businesses would work with, publicizingCSO successes, and educating businesses to increase understanding ofthe concept of CSR.Create a Council for the Private Sector, reporting on progress against this matrixto the President.Develop a list of the private sector's most urgent priorities that would supportan enabling environment, developed through a process of sub-national consultationand engagement with the private sector to be presented to the Governmentwithin three to six months.Establish a system of stocktaking at six-month intervals to monitor implementationof the Conference Road Map, with public dissemination of results.Legislation End-1387 Ministry of Finance, Ministryof Justice, Ministry of EconomyInstitution Building Mid-1387 Business communityOther Measures End-1387 Ministry of Economy; CivilSocietyInstitution Building Immediate Office of the PresidentOther Measures Immediate Business communityInstitution Building Mid-1387 Proposed Council for the PrivateSector, Conference SteeringCommitteePILLAR : INFRASTRUCTURESECTOR : ENERGYOutcomes Policy Actions or Activities Category Time frame Responsible AgencyAn enabling environment forprivate sector investment inenergy sector createdIssuance of tenders for exploration and exploitation in northern country notablyfor powerDevelop private sector opportunities to take on long-term production, transport,supply of CNGDevelopment 2008 MoM MEW MoFDevelopment 2009-2010 MoM, MEWOutsourcing operations at DABM (audit, billing) Development 2007-2009 MEWImplement Private distribution projects Development 2008 MEW, MoMAfghanistan National Development Strategy (ANDS) 211

PILLAR : INFRASTRUCTURESECTOR : ENERGYOutcomes Policy Actions or Activities Category Time frame Responsible AgencyExpanded public power gridPrivate sector promotion in renewable energy Development Immediately MRRD, MEW, AISADivestiture of the Liquid Fuels Enterprise Development Program not in place MoFAssess and revitalize oil refinery Development MoCI, MoMDevelopment of Sheberghan Gas Fields and Power Plant Development 2008 MoMPromotion of regional cooperation to facilitate various projects under theenergy sectorTo mainstream into all administrative reform programs measures required toaddress the systems and incentives promoting anti-corruption within the publicadministration system and Development Activities.To maintain the highest level of transparency, accountability and integrity inthe relationship between the public and private sector.Gender mainstreaming in the policies in the energy sector.Encouragement to Community Based Natural Resource Management formeeting energy needs of the people.Awareness generation of policy makers on the environmental issues so thatthey are taken care of in all projects in the energy sector.Leveraging available donor assistance, pilot CNG for public vehicles (i.e.,buses) and taxis; conversion of engines, fitting gas pump stations.Institution Building / RCCross Cutting IssuesInstitution Building/ ACCross Cutting IssuesInstitution Building/ ACCross Cutting IssuesDevelopment / GenderCross Cutting IssuesInstitution Building /Env. Cross Cutting IssuesInstitution Building /Env. Cross Cutting Issues2008-2010 MEW, MoFA2008-2009 MEW, MoM2008-2009 MEWContinueTBDContinueMEW, MoWAMoM, MEWMEW, MoMDevelopment No action at this time. MEW, MoCI, MoMProcure spare parts and fuel for thermal generation Development 2008 MEWRepair existing transmission and distribution systems including rehabilitatingand/or upgrading substations and distribution networksDevelopment 2008-2010 MEWInstall meters for cross border transmission Development 2008-2010 MEWRepair existing thermal plants Development 2008-2009 MEWStarting National Energy Conservation Program (NECP) Development 2009 MEWImplement ICE technical assistance (ADB) Development Commenced, ongoingthrough 2009MEW MoM MoCI MoFMRRD MoETake appropriate measures to reduce electricity loss Development 2008-2010 DABM MEW MoFPromotion of energy efficiency Development 2008 MEW DABMKabul distribution procurement Development Commence work February2008MEW MoF DABM/S212Afghanistan National Development Strategy (ANDS)

PILLAR : INFRASTRUCTURESECTOR : ENERGYOutcomes Policy Actions or Activities Category Time frame Responsible AgencyIncreased Access to RuralEnergy ServicesPromotion of Private sectorRestructured Energy SectorGovernance and CommercializedoperationsCompletion of NEPS transmission Development Oct 08-Mar 09 MEW MoFComplete Turkmen assessment Development . March 2008 DABM/SAssessments of South, East and West Transmission needs Development 2008-2009Procurement for meters Development Partially conducted nowunder distribution tender;more needed.MEW MoF DABMInstallation of Dispatch and Control System Development End 2009 MEW DABMMotion detectors Development 2008 commence andongoingLine inspections (regular protocols) Development Jul-05 MEWDABM/SHealth & Safety protocols Development 2008 MEW,MoMOperation & Maintenance protocols DevelopmentPriority to providing energy in areas having substantial narcotics cultivation topromote economic activity to generate alternate livelihoodsDevelopment/ CN CrossCutting IssuesContinueLink rural energy with micro and small finance programs Development Commencing 2008 MRRDDevelop a comprehensive and appropriate rural energy program Development TBD MEWPublic awareness on rural energy opportunities, benefits, funding Development 2009 MEW, MRRDAssessment of priority areas based on income-generation opportunities Development 2008 MEW, MRRDSpecial attention to gender issues in providing energy for rural areas. Development TBD MEW, MRRD, MoWAPrivate Sector promotion in close as formalization of existing operator rights;tender for new rights (i.e., to support power generation)MEWLegislation End 2008 MoM MEW MoFPrivate power generation policy Legislation End 2008 DABM/SIn collaboration with National Regulation Utility Commission (NURC), developRural-remote Energy PolicyLegislation 2008 MRRD, MEWPower Purchase Agreements for Power Imports Legislation 2008 MEWRevise 2 laws and 2 regulations related to Hydrocarbons, minerals and MarketCadastre & InspectorateLegislation End 2008 MoMCorporatization and ongoing commercialization of DABS Legislation March 2008 MEW, MoFPower tariff reform Legislation Assess in 2008 MoJ, MEWEstablishment of viable ICE working groups Institution Building Feb 2008 MoE MEWAfghanistan National Development Strategy (ANDS) 213

PILLAR : INFRASTRUCTURESECTOR : ENERGYOutcomes Policy Actions or Activities Category Time frame Responsible AgencyImproved GoA, Donor & NGO Coordination Institution Building 2008 Energy Sector Ministries andInstitutionsBuild Afghan capacity to operate and maintain system Institution Building 2009 Energy Sector Ministries andInstitutionsNeeds Assessment and Data Base Institution Building 2009 Energy Sector Ministries andInstitutionsEstablish Project Management Unit Institution Building Jun-05 MEWEstablish Pricing regime for natural gas Institution Building End 2008 MoM, MoFDefine Government roles in clearly defining TORs for MRRD and MEW onrural energy aspectsInstitution Building Apr 2008 MRRD MEWDevelopment of basic technical standards based on MRRD materials Institution Building Immediately MRRDAnnual audit of all operations Institution Building Power – March 2008;others TBDDevelop and implement the organizational structure and staffing plan for RuralLivelihoods and Energy Department (RLED)MoM,MEWInstitution Building 2008 MRRD, MEWPILLAR : INFRASTRUCTURESECTOR : TRANSPORTExpected Outcomes Policy Actions and Activities Category Time frame Responsible AgenciesImproved connectivitythrough out Afghanistan andto the foreign destinationswithin the region.ROAD TRANSPORTMassive road rehabilitation, improvement and maintenance programs.(Ring Roads/Regional highways)Massive road rehabilitation, improvement and maintenance programs. (Priority:5,335 km)(National Highways/Provincial Roads)Massive road rehabilitation, improvement and maintenance programs (with itsentire infrastructure including drainage, walkways and street lighting systemfor urban roads).(Rural Roads and Urban Roads) (Priority: 6,290km Rural roads)The road and air infrastructure will be built and maintained to a higher quality,giving road users lower costs. Whereas, the Feasibility Study of the railwaylinks will be done.Development/ RC CrossCutting IssuesMarch 2009MPWDevelopment End of 2010 MRRD, MPWDevelopment End of 2010 MRRD, MPW, MoUD, MunicipalitiesDevelopment March 2009 MPW, MRRDLower road user costs Rationalize road user fees (one fee) and use funds to establish a road fund that Institution Building End 2009 MPW, MoF214Afghanistan National Development Strategy (ANDS)

PILLAR : INFRASTRUCTURESECTOR : TRANSPORTExpected Outcomes Policy Actions and Activities Category Time frame Responsible Agenciesmanages all road improvement programs.Less journey time lost due tocongestionImproved air quality.Lower road user fees by 75% by end 2008. Development End 2008 MPW, MoTCA, MoF, MoFA,MoCISubsidy to private bus operators to implement the policy on promoting equitableaccess to transportationMassive road rehabilitation, improvement and maintenance programs (with itsentire infrastructure including drainage, walkways and street lighting systemfor urban roads).(Urban Roads)Improve Public Transport Provision in Urban and inter-provincial (34 provinces)(with having bus and truck terminals in all the provincial centers)Pass enabling legislation so that the environmental law has regulations that canbe enforcedDevelopment/ GenderCross Cutting IssuesEnd 2008MoTCADevelopment End 2010 MUD, Provinical Municipalities,MPW, MRRDDevelopment 2010 MoTCA. MPW, KM, MoUD,Provincial MunicipalitiesLegislation By end-2008 Transport sector line ministriesand institutionsCIVIL AVIATIONIncreased domestic and internationalpassengers andfreight traffic.All stakeholders are wellinformed about the viabilityof air transport systems.Improved governance ofcivil aviation sector.OVERALL TRANSPORT SECTORImproved governance structureof the structureMassive reconstruction program(Kabul Int'l Airport, Herat in compliance with ICAO and IATA requirements)Massive reconstruction program(Mazar-i-Sharif, Jalalabad, Kandahar airports)Massive reconstruction program(Seven Other Domestic airports)More air transport service providers enter the Afghan market—requires anenabling environment for businessesInstitutional reform programs and a reduction in the requirement of ISAF touse air facilities (Create a new Civil Aviation Authority (CAA), and restorecontrol of Afghan airspace to the Civil Aviation Authority.)Development By March 2011 MoTCADevelopment By March 2011 MoTCADevelopment By March 2011 MoTCALegislation By March 2011 MoTCAInstitution Building By end 2009 MoTCA, MoFMassive capacity building programs End 2008 MoTCACapacity building specially in the areas of project monitoring and contractmanagement• Completing the regulatory framework- developing the regulatory frameworkfor the implementation of the Procurement law, developing roads standardsInstitution Building/ ACCross Cutting IssuesEnd 2010MoTCAAfghanistan National Development Strategy (ANDS) 215

PILLAR : INFRASTRUCTURESECTOR : TRANSPORTExpected Outcomes Policy Actions and Activities Category Time frame Responsible Agenciesand codes, land acquisition;• Establishing an effective external scrutiny system;• Conducting VCA and developing mitigation plans in the sector;• Targeted anti corruption training for the responsible anti-corruption agenciesto effectively investigate and report on corruption;• Developing code of conducts and enforcement mechanisms• Increasing wages of the civil serviceImproved connectivitythrough out Afghanistan andto the foreign destinationswithin the region.After a study of international standards, adopt a set of standards that are compatiblewith Afghanistan’s neighbors.Establish a Transport Sector Inter-ministerial Working Group to determine thelines of authority between the transportation-related governance institutionsand the roles and responsibilities of each institution.Create an inter-ministerial costing committee to work with the Ministry ofFinance to cost out annually programs that take five to fifteen years to implementInstitute a substantial capacity building program, including a road safety program.(Improve the MoI’s capacity to conduct drivers’ licensing tests, vehiclesafety inspections and enforce traffic flow regulations.)Develop the Traffic Management Bureau form the MoI to the Provinces andMunicipalities through the new Independent Directorate of Local GovernanceInstitutional reforms put in place to simplify governance of the sector, includingdevolution of authority to the Provinces and Municipalities.Cost savings will be realized by the governing institutions and thus there willbe Government budget savings.Put in place systems to improve transparency in all functions of the governmentin the transport sectorGive more autonomy to local communities and the Provincial Governments todetermine how and when rural roads are improved, as well as provincial roadsImprove coordination between transport sector governance institutions, theMoI and ISAF so that the transport sector can better develop in conflictaffectedareas of the country as soon as possibleInstitution Building End 2008 MPW, MRRD, KM, MoUD,IDLGInstitution Building End 2008 MPW, MoTCA, MRRD,MoUD, MoF, IDLG, MoI, KMInstitution Building End 2008 MPW, MoTCA, MRRD, KM,MoI, IDLG, MoFInstitution Building End 2008 MoIInstitution Building End 2009 MoI, IDLGInstitution Building End of 2010 Transport sector line ministriesand institutionsInstitution Building 2009 Transport sector line ministriesand institutionsInstitution Building 2010 Transport sector line ministriesand institutionsInstitution Building End 2009 MRRD, IDLGInstitution Building Transport sector line ministriesand institutionsIncrease public sector salaries in tandem with increases in capacity Institution Building End 2008 GoA and Transport sector lineministries and institutionsAnnual assessment of data collected and databases maintained and updated inall planning departments, including municipalities, mapping progress againstthe goal of “best practices” data collection and databases for transport sectorplanning, with necessary funding mechanisms and capacity building programsInstitution Building 2009 Transport sector line ministriesand institutions216Afghanistan National Development Strategy (ANDS)

PILLAR : INFRASTRUCTURESECTOR : TRANSPORTExpected Outcomes Policy Actions and Activities Category Time frame Responsible Agenciesin place and operationalBusiness environment forprivate sector developmentimproved to create jobs andreduce poverty.Strengthening the planning capacity of ministry staff for road transport, airports,and rail functions so that the ministry staff can perform feasibility studies,Master planning, and multi-modal planning, as well as asset managementplanning, to international standardsPass legislation and enabling regulations to allow transport sector governinginstitutions to competitively engage and manage private contractors, privatecontract supervision engineers to maintain roads, airports and other transportinfrastructure, also regulations that protect the normal market rights of thosecontractors.Pass required legislation and enabling regulations so that the Mortgage law ispassed and enforced.Pass any required legislation and enabling regulations so that private and publicsector rights are protected in contract law, enforcement, and penalties forviolation.Reform laws relating to determining "fair market value" of lands purchased fortransport sector improvementsDevelop and put in place an axle-load limit violation fees and an enforcementsystemPass any required legislation and enabling regulations so that private sectorinsurance, auditing, and bonding industries can develop, and foreign insurancefirms can operate in Afghanistan, protecting rights of the companies and thepublic, with penalties for violations.Improved trade, transit documentation proceduresIntroduce and checks and balances for illicit transpiration of human and commoditieslike precursors, drugs, etc.Institution Building 2010 Transport sector line ministriesand institutionsLegislation 2013 Office of the President, theNational Assembly, MoTCA,MPW, MoI, MoF, MRRD,IDLG and MoUDLegislation End 2008 Office of the President, theNational Assembly, MoUD,MoJ, and MoFLegislation End 2008 Office of the President, theNational Assembly, MoCI,MoJ and MoFLegislation 2010 MPW, MoF, MRRD, MoUD,IDLG,Office of President,National Assembly, MoJLegislation End 2008 MPW, MoFLegislation End 2008 Office of the President, theNational Assembly, MoCI,MoJ and MoFLegislation/ RC CrossCutting IssuesLegislation and Development/CN Cross CuttingIssuesEnd 2009Mid 2009National Assembly, MoTCANational Assembly, MoTCA.MCN, MoI, MoJAfghanistan National Development Strategy (ANDS) 217

PILLAR : INFRASTRUCTURESECTOR : URBAN DEVELOPMENTOutcomes Policy Actions or Activities Category Time frame Responsible AgencyAccess to secure tenure andimproved services and publicfacilities for inhabitantsof informal settlementsImproved institutional coordinationand monitoring ofkey urban indicatorsIncreased and inclusive accessfor urban households tobasic servicesIncreased availability ofaffordable shelterStrengthened institutionalcapacity to plan and manageurban development in a systematicand transparentmannerReview of relevant legislation to facilitate regularization, followed by programof investments in basic infrastructure and public facilities with drawing frombest practices in the regionInstitutional reform and enforcement of administrative processes; introductionof effective systems of monitoring and evaluation for the implementationphase for transparent urban development processesInvestments in piped water systems and drainage networks (improved sanitation),Legislation/ RC CrossCutting IssuesEnd 2013KM/IDLG/MUDInstitution Building Mid 2009 KM/IDLG/MUDDevelopment March 2011 KM/IDLG/MUDUrban Property registration and mapping in major municipalities Development End 2009 IDLG, MoUDFeasibility studies for building new roads Development End 2008 IDLG, MoUD, MPWImplementation of Traffic Management Strategies Development 2009 MoUD, IDLG, KM, MoIIncrease reconstruction of asphalt roads in major and secondary cities Development 2010 IDLG, MoUD, KM, MPWRehabilitation of existing damaged roads Development 2009 IDLG, MoUD, KM, MPWDesign and build (asphalted) new roads Development 2010 IDLG, MoUD, KM, MPWInvestments by public and private sector in land and housing development,coupled with development of systems of housing financeDevelopment End 2013 KM/IDLG/MUDMost needy households receive a housing subsidy Development 2009 KM/IDLG/MUDCity Development Plans for 40 major municipalities Development 2010 MoUD, KM, IDLGRegional Development Plans for all 8 zones of the country Development 2010 MoUD, IDLG,Detailed development plans for major 10 cities Development 2010 MoUD, IDLG,Provide land tenure to the inhabitants in informal settlements Development 2009 MoUD, KM, IDLGUpgrade the basic infrastructure and urban services in the informal area Development 2010 MoUD, KM, IDLGEstablish Dehsabz New City and turn Kabul into a business hub of the surroundingregionsReview and update policies, regulations and implementation plans that willconsider crosscutting issues gender, environment, ant-corruption and counternarcotics.Comprehensive and gender sensitive reform of institutions, review and updateof relevant legislations, policies and administrative processesDevelopment 2007 - 2025 DCDALegislation/ Cross CuttingIssuesInstitution Building/Gender Cross CuttingIssuesEnd 2009End 2009KM/IDLG/MUDKM/IDLG/MUD, MoWAInstitutional Reform Action Plans in 34 municipalities/ministerial departments Institution Building End 2009 KM/IDLG/MUDComputerize HRM/Finance and program activities to strengthen Human Re- Institution Building/AC MUD, KM218Afghanistan National Development Strategy (ANDS)

PILLAR : INFRASTRUCTURESECTOR : URBAN DEVELOPMENTOutcomes Policy Actions or Activities Category Time frame Responsible AgencyImproved environmentfriendly programs and policiessource, Financial and Program ManagementCross Cutting IssuesImproved financial management in 30 major municipalities Institution Building End 2009 KM/IDLG/MUDProperty tax implementation Institution Building IDLG, KMPreparation of economic data base for revenue administration Institution Building MoUD, IDLG, KMEstablish Uni- urban Data collection unit (encourage disaggregated data collection)Training and capacity building of the key staff in the process of monitoringand evaluation and re-planningCapacity building of technical and managerial staff of provincial municipalitiesManagement Plans and Implementation of management plans initiated forprotected areas and national parks, including game reserves, wetlands and birdsanctuariesEnsure environment sustainability of all urban development programsDevelop national settlement and regional strategic plans and through themprovide a framework for balanced urbanization and greater regional coherence,from which the border cities of Afghanistan and neighboring countriesshall benefit.Institution Building/Gender Cross CuttingIssuesMoUD, IDLG, KMInstitution Building End 2009 KM/IDLG/MUDInstitution Building IDLG,Development/ EnvironmentCross Cutting IssuesDevelopment/ EnvironmentCross Cutting IssuesInstitution Building/ RCCross Cutting IssuesEnd 2009MUD, KM, NEPAMUD, IDLG, KM, NEPAMUD, IDLG,PILLAR : INFRASTRUCTURESECTOR : MINES AND NATURAL RESOURCESObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyGeophysical and geologicalinformation availableIncreased access to waterresourcesPlanning exploration activities, mapping, survey of minerals, oil and gas, collectionof geophysical and geological informationDevelopment Continued MoMConducting geological research studies Development Continued MoMMaster plan on underground water development Development End 2014 MoM, other line ministriesManual for underground water management Development End 2008 MoMRehabilitation of the Hydrological and Geo-engineering research sections Development End 2010 MoMAfghanistan National Development Strategy (ANDS) 219

PILLAR : INFRASTRUCTURESECTOR : MINES AND NATURAL RESOURCESObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyIncreased Private SectorInvestment in mining sectorIssuance of permit to Private Sector who work on underground water Development TBD MoMRehabilitation and establishment of new Hydrological Stations for collectionof the necessary information and figuresDevelopment Continued MoMEnhancement of working relationships with related line ministries for water Development Continued MoMDesign and implementation of Mineral policy Legislation 2008-2013 MoMPreparation of Gas Law and Manual Legislation End 2009 MoMAnalysis study of loss and damages in mines extraction Development Continued MoMCategorizing oil and gas fields to gas blocks for better management Development Continued MoMLeasing of oil and gas blocks to privates sector for research and study Development Continued MoMEstablishment of new organizational structure for gas and oil management Institution Building End 2008 MoMPublic access to natural gas Design of plan for gas pipeline grid to provinces Development Continued MoMStrong regulatory frameworkin placePRR Implementation Institution Building End 2009 MoMCapacity building of Survey and Geological staff Institution Building Continued MoMEquipping labs of GSD Institution Building First Phase will be doneby 2008 and then ContinuedStandardizing working a capacity of Geology staff Institution Building Continued MoMCoordination with different countries in raising capacity of the public sector Institution Building Continued MoMIntroduction of measures to ensure environmental concerns taken care of.Conservation of Biodiversity in implementing mining projectsPromotion of regional cooperation to facilitate various projects under themining sectorTo mainstream into all administrative reform programs measures required toaddress the systems and incentives promoting anti-corruption within the publicadministration system and Development Activities.To maintain the highest level of transparency, accountability and integrity inthe relationship between the public and private sector.Gender mainstreaming in the policies in the mining sector.Priority to areas having substantial narcotics cultivation to promote economicactivity to generate alternate livelihoodsInstitution Building/ Env.Cross Cutting IssuesDevelopment/ Env. CrossCutting IssuesDevelopment/ RC CrossCutting IssuesInstitution Building / ACCross Cutting IssuesInstitution Building / ACCross Cutting IssuesDevelopment/ GenderCross Cutting IssuesDevelopment/ CN CrossCutting IssuesContinuedContinuedContinuedContinuedContinuedMoMMoMMoMMoMMoMMoM2008-2013 MoM2008-2010 MoM220Afghanistan National Development Strategy (ANDS)

PILLAR : INFRASTRUCTURESECTOR : WATER RESOURCESExpected Outcomes Policy Action Category Time frame Responsible AgenciesImproved water sector legaland governance structuresand institutions in placeSustainable water resourcesmanagement strategies andplans covering irrigation anddrinking water supply devel-Assess, identify, draft, review, debate, resolve, finalize water law and supplementaryregulationsConduct appropriate studies, identify specific pilot programs, experimentation,and customize river basin institutional structures.Legislation 2008-2009 MEW, MAIL., MoM, MoUD,MRRD, NEPA, MoPHInstitution Building by 2010 MEW, MAIL,MRRD, MoM,MoUD, NEPAEstablishment of institutions for hydrometric network in the country Institution Building by 2010 MEWNational urban and rural water supply institutions in place Institution Building by 2011 MoUD, MRRDTraining of staff from various sector ministries on integrated water resourcesmanagementEstablishment of organization and capacity building of River Basin Agenciesand Sub-agencies (RBA/ SBA) and River Basin and Sub-basin Councils(RBC/SBC)Institution Building Continue MEW, MAIL., MoM, MoUD,MRRD, NEPA, MoPHInstitution Building 2008-2009 MEWTraining of SCWAM Technical Secretariat staff Institution Building Continue MEW, MAIL., MoM, MoUD,MRRD, NEPA, MoPHGathering of data socio-economics, geology/groundwater, environment, hydrological,meteorological and others for project developmentDevelopment of curriculum in water resources management at local universities/technicalcollegesInstitution Building by end 2010 MEW, MAIL., MoM, MoUD,MRRD, NEPA, MoPHInstitution Building by end 2009 MEW, MAIL, MoHE,MRRD, MoMAssessment studies for project Institution Building Continue MEW,MAIL, MRRD,MoUD, NEPA, MoPHInstitute training in HEC RAS and other appropriate modeling techniques Institution Building 2010 MEW, MAIL., MoM, MoUD,MRRDAssignment of staff/personnel to consultancy contracts for training Institution Building end 2009 MEW, MAIL,MRRD,MoUD, MoMGender discrepancies in various laws systematically uncoveredRegional water issues dialogues initiatedInitiate appropriate inventory studies, water resources planning studies andbasin master plansLegislation/ GenderCross Cutting IssuesLegislation/ RC CrossCutting Issues2008-2009 National Assembly, MoUD,MoJTBDMoFA, MEW, MAIL,SCWAMDevelopment end 2010 MEW, MAIL., MoM, MoUD,MRRD, NEPAComplete master plan investigations Development 2010 MEW, MAIL,MRRD,MoUD, MoM,Afghanistan National Development Strategy (ANDS) 221

PILLAR : INFRASTRUCTURESECTOR : WATER RESOURCESExpected Outcomes Policy Action Category Time frame Responsible Agenciesoped and implemented.Water resources for irrigationand Drinking purposesimproved.SCWAM,NEPAIdentify, study, design, procure and implement projects Development Continue MEW, MAIL,MRRD,MoUD, MoM,NEPAIdentify, prioritize, and implement rehabilitation program Development Continue MEW, MAIL,MRRD,MoUD, MoM,NEPAEnhance achievement tracking procedures and augment NSP resources Development by 2010 MRRDWUA implementation programming Development Continue MEW, MAIL, MRRD,MoUDStrengthen required resources and monitor programs Development Continue MEW, MAIL,MoUD,MRRD, NEPAImprove existing drinking water supply systems and build new systems invillages and cities, including KabulDevelopment by 2010 MoUD, MRRD, MoM, MEWRehabilitation of National Hydro-meteorological network Development by 2010 MEWDevelopment of technical plans, management plans, and implementationstrategies for Amu Darya River Basin, Northern River Basin, Western RiverBasin, Helmand River basin, and Kabul River Basins,Rehabilitation of all small, medium, and large traditional irrigation schemesand strengthen water users associationDevelopment by 2011 MEWDevelopment Continue MEW, MAIL, MRRDProvision of access to water and sanitation facilities to rural people Development Continue MRRDUndertake riverbank protection and erosion control works and implementlong-term flood control programCommunity based natural resource management establishedWater resources for irrigation utilized for non-poppy farmingDevelopment Continue MEWDevelopment/ Env.Cross Cutting IssuesDevelopment/ CN CrossCutting IssuesContinueby 2010MEW, NEPA, MRRD, MAILMEW, MCN, MAIL, MRRDPILLAR : INFRASTRUCTURESECTOR : INFORMATION & COMMUNICATION TECHNOLOGYExpected Outcomes Policy Actions or Activities Category Time frame Responsible AgenciesE-Afghanistan createdInternet Exchange point Development 2008-2010 MoCITICT Village Development 2008-2010 MoCITE-Government Development 2008-2013 MoCIT222Afghanistan National Development Strategy (ANDS)

PILLAR : INFRASTRUCTURESECTOR : INFORMATION & COMMUNICATION TECHNOLOGYExpected Outcomes Policy Actions or Activities Category Time frame Responsible AgenciesEnabling EnvironmentNational Internet Registry of Afghanistan (NIRA) Development 2008-2011 MoCITAfghanistan Cyber Emergency Response Team (AfCERT) Development 2008-2011 MoCITNational Identity Management Initiative (NIMI) Development 2008-2013 MoCITDevelopment of policies, laws, regulations procedures and other normativeacts to accelerate the role of telecom services to citizensLegislation 2008-2010 MoCITEstablish Telecom Development Fund (TDF) Legislation 2008-2013 MoCITDrafting the ICT Law Legislation 2008-2009 MoCITDevelop CIO (Chief Information Officer) culture in government organizations Institution Building 2008-2009 MoCITMovement of the government institution to a modern level of services to thecitizensDeveloping Curriculum and Regulatory Framework for ICT Training Centersin the Private SectorDevelop rules and regulations to require all government institutions to publishdocuments on their official websites (as a supplement to the Official Gazette)Adopt a full set of Rules and Procedures that will govern the competitive procurementand utilization of ICT by all government institutionsReduce corruption by reviewing all government services and making recommendationsfor the adoption of ICT to streamline and automate (for example,customs processing, procurement and licensingPilot home based ICT related work for womenInstitution Building 2008-2013 MoCITInstitution Building 2008-2011 MoCITInstitution Building end 2008 MoCITInstitution Building end 2008 MoCITInstitution Building end 2009 MoCITDevelopment/ GenderCross Cutting Issues3nd 2008ICT Literacy improved Establishment of ICT centers in 34 Provincial capitals Development 2008-2011 MoCITImproved ICT coverage andInfrastructureMoCITOptical fiber backbone Development End 2008 MoCITGovernment online (web presence) Development 2008-2013 MoCITE-government Resource Centre Development 2008-2013 MoCITCopper Cable Network Development 2008-2013 MoCITExpansion of District Communication Network (DCN) Development 2008-2013 MoCITExpansion of Microwave System Development 2008-2013 MoCITVillage Communications Network (VCN) Development 2008-2013 MoCITModernization of Postal Services Development 2008-2013 MoCITAfghanistan National Development Strategy (ANDS) 223

PILLAR : INFRASTRUCTURESECTOR : INFORMATION & COMMUNICATION TECHNOLOGYExpected Outcomes Policy Actions or Activities Category Time frame Responsible AgenciesNational Data Centre (The electronic data of the government will be securelyhosted and will be available to all entities upon request and level of access)The National Data Centre will have information on crosscutting issues likeanti-corruption, counter narcotics, and environment.Development 2008-2013 MoCITDevelopment/ CrossCutting Issues2008-2013 MoCITPILLAR : HEALTH AND NUTRITIONSECTOR : HEALTH AND NUTRITIONExpected Outcomes Policy Actions or Activities Category Time frame Responsible AgencyIncreased quality of healthcare servicesIncreased access to healthcare servicesDevelop an effective organization and management system to coordinate allservices of NHCSStrengthen HRD unit to oversee the HR and R&D issues, Computerize allHRM activities to strengthen Human resource managementDevelop a suitable regulatory framework to encourage private sector investmentInstitution Building 2008 - 2013 MoPHInstitution Building/ ACCross Cutting Issues2009 - 2013 MoPHLegislation 2009 - 2013 MoPHStrengthen policy and planning support unit in the Ministry Legislation 2008 - 2013 MoPHEffective monitoring and reporting of quality of services provided by differentagenciesInstitution Building 2008 - 2013 MoPHEstablishment of a quality support program Institution Building 2008 - 2013 MoPHMaking service delivery performance based through incentives and contractmonitoring and exploring options for implementing results based financing ofhealth service delivery in Afghanistan.To mainstream into all administrative reform programs measures required toaddress the systems and incentives promoting anti-corruption within the publicadministration system and Development Activities.Institution Building 2009 - 2013 MoPHInstitution Building/Cross Cutting Issues2008 - 2013 MoPHImplement the Primary Health Care Program Development Ongoing MoPHDevelop a comprehensive referral system integrated with BPHS to improve theservice delivery levelDevelopment 2008 - 2013 MoPHHarmonize the system of procurement and disbursement of essential medicines Institution Building 2008 - 2013 MoPHDevelop a comprehensive care system for communicable diseases like TB,HIV and malariaEstablish and maintain required number of Health Facilities providing diagnosticand treatment TB servicesDevelopment Ongoing-2013 MoPHDevelopment Ongoing-2013 MoPH224Afghanistan National Development Strategy (ANDS)

PILLAR : HEALTH AND NUTRITIONSECTOR : HEALTH AND NUTRITIONExpected Outcomes Policy Actions or Activities Category Time frame Responsible AgencyEffective Reproductive andChild health systemEstablish number of Health Facilities providing diagnostic and treatment MalariaservicesEstablishing effective surveillance system and Volunteer Confidential Counselingand Testing Center for HIV cases in each provinceAwareness generation against ills of drug usage and environmental issues affectinghealthEstablishing centers for treatment and rehabilitation of Drugs users.Promotion of regional cooperation to make health facilities available to thepeople of Afghanistan if such facilities are not available in the country.Develop an integrated reproductive and child health care system with the supportof development partnersDevelop effective immunization coverage system with adequate doses of DPTvaCross Cutting Issuesne & Hepatitis, measles and polio in all provincesA Special Cell be created to take care and promote all gender issues especiallyhealth of females and mothersDevelopment Ongoing-2013 MoPHDevelopment 2008 - 2013 MoPHDevelopment/ CN Env.Cross Cutting IssuesDevelopment/ CN CrossCutting IssuesDevelopment/ RC CrossCutting IssuesOngoing-2013Ongoing-2013Ongoing-2013MoPHMoPHMoPHDevelopment Ongoing-2013 MoPH, MoE, MoWA, MoHEDevelopment Ongoing-2013 MoPHDevelopment/ GenderCross Cutting IssuesOngoing-2013MoPHPILLAR : EDUCATION AND CULTURESECTOR : EDUCATIONObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyImproved quality of educationPRIMARY AND SECONDRY EDUCATIONApproval of laws for setting up of Independent Boards for secondary education,vocational education and for national standards of accreditation and regulatoryframework for quality assurance of education servicesLegislation 1386 MoEDevelop policies to encourage the non-government sector to offer services Legislation 1386 MoEEstablish School Advisory and Support Councils (SASC) in all schools Institution Building 1385-1389 MoEEstablish Independent Boards for secondary education, NESA and NationalInstitute of Management and AdministrationEstablish a National Institute of Curriculum Development incorporating nationalstandards benchmarksInstitution Building 1387-1389 MoEInstitution Building 1387-1389 MoEStrengthen institutional and staff capacities in curriculum development with Institution Building/ 1387-1389 MoEAfghanistan National Development Strategy (ANDS) 225

PILLAR : EDUCATION AND CULTURESECTOR : EDUCATIONObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyLiteracy rate increasedspecial focus on gender, counter-narcotics, environment and anti-corruption.Create a sustainable, transparent and accountable financial management systemat central, provincial and district levelCreate a computerized HRM system to strengthen human resource managementMonitor the activities of sector administrative units to confirm adherence toethical standards, professional service and staff integrity, based upon relevantlaws, codes of conduct and standardized procedures and protocolsImplement PRR and Pay and Grading of all approved positions within the ministryincluding teaching staffCross Cutting IssuesInstitution Building 1386-89 MoEInstitution Building/ ACCross Cutting IssuesInstitution Building/ ACCross Cutting IssuesInstitution Building1387-1388 MoE1387 MoEPRR1385-1386 Approvedposition 1387-1389Build a national partnership program of literacy and non-formal education Institution Building 1387 MoEIncrease the number of female primary and secondary teachers including retrainingall female teachers who were separated from service during the PRRprocess and re-employing them.Establish/strengthen teacher training colleges in all provincesTrain 17,000 teachers and 3,500 mullahs in the delivery of literacy courseswith at least 30% of them being female teachers.Improve the quality of primary and secondary teaching (training teachers,school principals)Development / GenderCross Cutting IssuesDevelopment / GenderCross Cutting IssuesMoE1389 MoE, MoWA1386-1389 MoE, MoWADevelopment 1386-89 MoEDevelopment 1387-1389 MoEImprove teaching material and new curricula for secondary schools Development 1386-1389 MoEStudent Competency tests prepared and implement testing Development 1387-1389 MoEAdopt an enabling policy to implement the Constitutional provision of compulsoryeducation up to intermediate levelLegislation / GenderCross Cutting Issues1387 MoEReduce dropout level by … Development 1389 MoEAdopt a system to follow up female drop outs and provide incentives to returnthem to schoolInstitution Building /Gender Cross CuttingIssues1387-1389 MoE; MoWAIncrease enrolment rates at primary and secondary school Development 1386-1389 MoEImplement parent-oriented campaign to promote support to girls' enrolmentConduct review class for girls who graduate from secondary schools to preparefor college entrance examinationsDevelopment/ GenderCross Cutting IssuesDevelopment/ GenderCross Cutting Issues1386-89 MoE; MoWA1386-89 MoE226Afghanistan National Development Strategy (ANDS)

PILLAR : EDUCATION AND CULTURESECTOR : EDUCATIONObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyEqual opportunity for allHIGHER EDUCATIONImproved quality of academicteaching and researchHave a program of remedial education to address literacy rates Development 1387-1389 MoEConstruction and School Rehabilitation Development 1389 MoEConstruct dormitories and pro-women facilities, especially in the secondarylevel schoolsDevelopment/ GenderCross Cutting IssuesProduce new textbooks and teacher guides Development 1386-89Establish National Institute of Management and Administration at MoE /TVETDepartment. Operation of the Institute to be contracted outDisaggregate by sex all human related statisticsPolicies that require new university professors and lecturers to be hired on thebasis of academic merit and gender balance.1386-89 MoEDevelopment 1387 MoEInstitution Building/Gender Cross CuttingIssues1386-89 MoELegislation 1386-1389 MoHE; MoWAUpgraded qualifications of faculty through university partnership programs Institution Building Already commenced.This is a continuingprogram (1386-1389)Recruit foreign residing Afghan and regional Professors through regionalagreementsInstitution Building/ RCCross Cutting IssuesInstitutional strengthening at MoHE Institution Building Commence 1389- continuingCreate a computerized HRM system to strengthen human resource managementMonitor the activities of sector administrative units to confirm adherence toethical standards, professional service and staff integrity, based upon relevantlaws, codes of conduct and standardized procedures and protocolsInstitution Building/ ACCross Cutting IssuesInstitution Building/ ACCross Cutting IssuesInvestigate possible funding models that would provide greater autonomy Institution Building 1386-1389 MoHEA reorganized and streamlined recruitment and hiring process (PRR) at theMoHE within its departments and at the 19 institutions of higher learningAdopt strategy to hire more women professionals; re-train female teachers whowere dismissed during the PRR process and re-employ themEstablish a separate body responsible for standards and accreditation all degreegranting institutions and professional programs, public and private, in Afghani-TBDTBDTBDMoHEMoHE, MoFAMoHEMoHEMoHEInstitution Building 1385-88 MoHEInstitution Building/Gender Cross CuttingIssues1385-89 MoHE; MoWAInstitution Building 1387-TBD it is a conti- MoHEAfghanistan National Development Strategy (ANDS) 227

PILLAR : EDUCATION AND CULTURESECTOR : EDUCATIONObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyImproved access to HigherEducationVOCATIONAL EDUCATIONImproved quality of vocationaleducationstan.noued ProgrameMonitor standards and ensure consistency between institutions Institution Building 1387 MoHERevised and approved curricula and related teaching materials; training forprofessors and lecturers in use of theseIdentify and evaluate existing research capacity in higher education institutionsand non-governmental organizations in Afghanistan.Rehabilitate existing universities and build new library and laboratory facilitiesat existing universities.Institution Building 1388 MoHEInstitution Building/ ACCross Cutting IssuesTBDMoHEDevelopment 1381-1389 MoHEConstruction of 24 new dormitories 12 for men and 12 for women Development 1385-1389 MoHERecruit 3000 new professors, including qualified Afghan professors from theregion (India, Pakistan, Tajikistan, and Iran).Development 1387-1389 MoHEIncreased number of research centers at higher education institutions. Development 1389 MoHENew MA programs at departments of languages and literature at Kabul University,and new programs for the faculties of social science, law, economics,geology, engineering, agriculture, and Islamic law.Strengthen security in the campus Institution Building /Gender Cross CuttingIssuesConduct review class for girls to prepare them for college entrance examinationsDevelopment Already Commenced MoHEInstitution Building /Gender Cross CuttingIssuesDisaggregate by sex all human related statistics Institution Building /Gender Cross CuttingIssuesProposal to formalize existing apprenticeship arrangements and expand thesystem. Ensure that a recognized qualification is provided to people undertakingapprenticeships who have achieved specified basic competencies.Expand the capacity and improve the quality of Vocational Education and SkillDevelopmentImprove the capacity of the national VET system to manage and deliver market-drivenskills training and linkages to micro-credit and business developmentsupport services is planned to have increased.Within the next 12 months, establish an independent National Vocational Educationand Training Authority with the responsibility for managing and co-1386-89 MoHE1386-89 MoHE1386-89 MoHELegislation 1387 NSDPInstitution Building 1389 NSDPInstitution Building 1389 MoL/NSDPInstitution Building1387-TBD it is a continuedProgramNSDP228Afghanistan National Development Strategy (ANDS)

PILLAR : EDUCATION AND CULTURESECTOR : EDUCATIONObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyImproved access to vocationaleducationSPORTSImproved sports facilitiesSCIENCE ACADEMYEnhanced contribution of theAcademy in Sciencecoordinating national VET policy will be established. Teaching and operationof individual VET institutions to be contracted out.Target the most vulnerable women and youth in the selection of training andprovision of employment opportunitiesDevelop an accessible, regional network of TVET schools and training centers,including 17 new schools and a school for those with special needsInstitution Building/Gender Cross CuttingIssues1386-89 NSDPDevelopment 1387-1388 MoE/TVET DeptEstablishment of job-placement centers in all 34 provinces Development 1387-1389 (2010)The NSDP will procure the services of a variety of training providers (private/public)for the provision of training to 150,000 unemployed Afghanwomen and men through competitive bidding proceduresDisaggregate by sex all human related statisticsDelegate the overall authority to coordinating sports services in the country tothe Olympic CommitteeBuild capacity of professional staff of the National Olympic Committee forquality programming of administration and service deliveryApproach countries and foreign sporting agencies with facilities for advancedathletes to allow Afghan sports people to train and compete in foreign countriesAdopt and implement a strategy to realize the benchmark of increasingwomen's access, leadership and participation in sportsImprove Infrastructure (build sports complexes and strengthen sports throughprovincial sports departments, sports improvement programs in capital andprovinces)Sex-disaggregate all human related statisticsEstablish advisory committees consisting of academy members and MoE andMoHE officials. To advise on training and curriculum issues.Development 1385-1389 (2010) MoL/NSDPInstitution Building/Gender Cross CuttingIssues1386-89 MoL/NSDPLegislation 1389 MoE/NOCInstitution Building 1389 MoE/NOCDevelopment 1387 MoE/NOCInstitution Building/Gender Cross CuttingIssues1386-89 MoE/NOC; MoWADevelopment 1389 MoE/NOCInstitution Building/Gender Cross CuttingIssues1386-89 MoE/NOC;MoWAInstitution Building 1388 Science AcademyAfghanistan National Development Strategy (ANDS) 229

PILLAR : EDUCATION AND CULTURESECTOR : EDUCATIONObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyComplete Encyclopedia Project Institution Building 1386-1389 Science AcademyConsider publication of an academic journal edited by the academy Institution Building 1389 Science AcademyConstruct a 7-story building for use by the academy (note: this building couldalso be used for higher education teaching and seminars)Institution Building 1385-1389 Science AcademyRehabilitate the Centre for Literature and Language at the academy Institution Building 1385-1389 Science AcademyProvide laboratory facilities for the academy Institution Building 1387-1389 Science AcademyPILLAR : EDUCATION AND CULTURESECTOR : MEDIA AND CULTUREObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgencyAfghanistan’s cultural HeritageProtected and PreservedFree and independent mediaEmpowerment of YouthRehabilitation of Kabul theater, Ministry complex, 20 historical monuments,building for MoIC provinces Dept. libraries in provinces, music institute inKabul construction of museum in Nangarhar, Bamyan etc…Development 2010 MoICComprehensive inventory of Afghan cultural treasures Development 2007 MoICMeasures to be taken to revive the Afghan cultural heritage, to stop the illegalremoval of cultural material and to restore damaged monuments and artifactsLegislation 2010 MoICRegistration, conservation and restoration of sites and monuments Development 2010 MoICThe MoIC will continue registration and conservation of monuments, repairand preservation of museum, archeology items and historical monumentsDevelopment Continue MoICPass Media Law Legislation 2008 MoICInventory of intangible cultural heritage (music) Development 2008 MoICTake appropriate measures to promote Live Culture (Music, Cinema and Arts) Development 2013 MoICDevelopment of a truly editorially independent public service broadcasting of ahigh standard educational radio-TV production centreDevelopment 2010 MoICRenovation of the existing Radio Studios (National) equipments Development 1385 MoICSensitizing media about the issues related to gender, anti-corruption, counternarcotics,environment and regional cooperationPromoting non-formal education, increasing awareness and developing skills(literacy, leadership, strategic planning, conflict resolution, peace-building,etc.) in young people so to provide better quality of life and livelihood opportunities.Development/ CrossCutting Issues2010 MoIC (Youth Affairs DeputyMinistry)Development 2010 MoIC (Youth Affairs DeputyMinistry)Engaging youth in governance, development and social-political processes at Development 2010 MoIC (Youth Affairs Deputy230Afghanistan National Development Strategy (ANDS)

PILLAR : EDUCATION AND CULTURESECTOR : MEDIA AND CULTUREObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agencylocal, district, municipal, provincial and national level, ensuring the participationof young women and men in democracy and advocacy.Promoting voluntary efforts for peace and development and establishing ayouth volunteer corps for Afghanistan and also in the fields of gender, anticorruption,counter-narcotics, environment and regional cooperation.Sensitizing youth about the issues related to gender, anti-corruption, counternarcotics,environment and regional cooperation.Ministry)Development 2010 MoIC (Youth Affairs DeputyMinistry)Development/ CrossCutting Issues2010 MoIC (Youth Affairs DeputyMinistry)PILLAR : AGRICULTURE AND RURAL DEVELOPMENTSECTOR : AGRICULTURE AND RURAL DEVELOPMENTExpected Outcomes Policy Actions or Activities Category Timeframe Responsible AgencyImproved service deliverywithin the Agriculture &Rural Development sectorPoverty Reduced in line withMDG targetsImproved Local GovernanceIncreased Agriculture Productionand ProductivityReview of the legal framework governing ARD sector, including governmentalinstitutional reformsDevelop 5 years action plan which quantifies all 8 functions of ARD zonesincluding budget requirements, roles and responsibilities and appropriate M&EsystemsTo mainstream into all administrative reform programs measures required toaddress the systems and incentives promoting anti-corruption within the publicadministration system and Development Activities.To maintain the highest level of transparency, accountability and integrity inthe relationship between the public and private sector.Align ARD Programs to promote sustainable growth and distribute wealththrough CRDDevelop and implement poverty baseline and survey database in addition toNRVAReview and update legislation concerning sub-national governance formal andinformal structures, roles and responsibilitiesFormulate and implement policy imperatives requiring all development actorsto carry out their activities through the established sub-national structuresLegislation/ Policy/Plan 1387 - 1389 MAIL, MRRD, MCN andIDLGLegislation/ Policy/Plan 1387 - 1388 CARD Inter-ministerialCommitteeLegislation/ Policy/Plan/ AC Cross Cutting IssuesLegislation/ Policy/Plan/ AC Cross Cutting Issues1387 - 1389 MAIL, MRRD1387 - 1391 MAIL, MRRDLegislation/ Policy/Plan 1387 - 1391 MAIL, MRRD and MCNLegislation/ Policy/Plan 1387 - 1391 MAIL, MRRD and MCNLegislation/ Policy/Plan 1387-1389 MRRD, IDLG, MAILLegislation/ Policy/Plan 1387-1389 MRRD, IDLG, MAILReview, revise and formulate land use and government owned land for lease Legislation/ Policy/Plan 1387-1389 MAILReview, revise and formulate Natural Resources laws (wetlands, forests, range Legislation/ Policy/Plan 1387-1391 MAILAfghanistan National Development Strategy (ANDS) 231

PILLAR : AGRICULTURE AND RURAL DEVELOPMENTSECTOR : AGRICULTURE AND RURAL DEVELOPMENTExpected Outcomes Policy Actions or Activities Category Timeframe Responsible AgencyImproved agriculture andrural infrastructureFacilitated Economic Regenerationlands, arid lands ,watershed)Review, revise and formulate Food laws and regulations (Quality and Safety,CODEX standards, quarantine)Review, revise and formulate laws and regulations on Livestock and HorticultureReview, revise and formulate laws and regulation on Pesticides Use, plant andanimal protectionReview, revise and formulate laws and regulations on agricultural imports andexportsFormulation of laws on concerning forests, food safety and control, strategicfood reserves, agricultural imports, horticulture and improved seeds.Restoration and Sustainable Use of Rangelands and forests, conservation ofbio-diversity, and encouragement to Community Based Natural Resource ManagementSpecial focus on gender in polices and plans and their implementationLegislation/ Policy/Plan 1387-1390 MAILLegislation/ Policy/Plan 1387-1390 MAILLegislation/ Policy/Plan 1387-1390 MAILLegislation/ Policy/Plan 1387-1391 MAILLegislation/ Policy/Plan 1387-1390 MAILOther Measures / Env.Cross Cutting IssuesLegislation / Policy/Plan/ Gen der Cross CuttingIssues1387 - 1391 MAIL1387 - 1391 MAIL, MRRDDevelop and implement policy on infrastructure investment and maintenance Legislation/ Policy/Plan 1387-1389 MRRD, MAILDevelop and implement sub-sector policies on rural roads, water, irrigation andrural energyDevise and implement appropriate labor-intensive approach and technologiesfor investment and maintenance of infrastructureReview, revise and formulate laws and regulations on Water Management andutilizationLegislation/ Policy/Plan 1387-1389 MRRD, MAILLegislation/ Policy/Plan 1387-1389 MRRD, MAILLegislation/ Policy/Plan 1387-1389 MAIL, MRRD, MoE&WEstablish standards including social and environmental safeguards Legislation/ Policy/Plan 1387-1389 MRRD, MAILEnhance public and private sectors capacities to effectively and efficientlymanage and deliver infrastructure programsReview current and formulate new policies, legal and regulatory for establishing,stimulating and sustaining rural enterprises and creditInstitution Building 1387-1391 MRRD, MAILLegislation/ Policy/Plan 1387-1389 MRRD, MAILEstablish rural enterprise support services network Institution Building 1387-1389 MRRD, MAILEstablish Agriculture and Rural Development Zones Institution Building 1387-1389 CARD Inter-ministerialCommitteeDevelop national and international markets for agriculture and non-agricultureproduce and productsOther Measures 1387-1391 MRRD, MAIL, MoCom232Afghanistan National Development Strategy (ANDS)

PILLAR : AGRICULTURE AND RURAL DEVELOPMENTSECTOR : AGRICULTURE AND RURAL DEVELOPMENTExpected Outcomes Policy Actions or Activities Category Timeframe Responsible AgencyImproved service deliverywithin the sectorImproved Local GovernanceImproved disaster and emergencypreparednessReduced poppy cultivationthrough Alternative LivelihoodPromote regional cooperation to help generate economic growth through technologies,exchange of knowledge etc.Other Measures / RCCross Cutting Issues1387 - 1391 MAIL, MRRD, MoFAStrengthen line ministries capacities at national and sub-national levels Institution Building 1387-1389 MRRD, MAIL, MCN, IDLGEstablish an Executive Management Unit with presidential authority and clearmandate to implement CARDDevelop mechanism to ensure integration and linkage of local level planningwith the national ARD investment planningContinue capacity development of the sub-national governance structures toenable them to play a greater role in the development processStrengthen the sub-national governance structures through sustainable financialmechanismsContinue the establishment of the local governance informal and formal structuresand village and district levelsSensitization of functionaries of local governance on gender, environmental,counter-narcotics and anti-corruption issuesInstitution Building 1387 CARD Inter-ministerialCommitteeInstitution Building 1387-1388 MRRD, IDLG, MoEcInstitution Building 1387-1391 MRRD, IDLGOther Measures 1387-1389 MRRD, MAIL, IDLGOther Measures 1387-1389 MRRD, MAILLegislation / Policy/Plan/ Cross Cutting Issues1387 - 1389 MRRDSupport the establishment of disaster early warning system Institution Building 1387-1389 MAIL, MRRD, IDLGEstablish and operationalise a system for mitigation, preparedness and responseto natural disasters and plant/animal diseases and epidemicsSpecial focus to gender issues in polices and plans and their implementationInstitution Building 1387-1389 MAIL, MRRDInstitution Building 1387-1389 MAIL, MRRDLegislation / Policy/Plan/ Gender Cross CuttingIssues1387 - 1388 MAIL, MRRDDesign and implement programs to strengthen and diversify licit livelihood Institution Building 1387-1391 MRRD, MAIL, MCNMainstream CN strategy in ARD programs and projectsInterventions for promoting legal agriculture livelihood options through inputslike seeds, irrigation, fertilizers, credit and crop insuranceTraining for self employment and micro enterprise and development of microcredit facilitiesDevelopment of private sector especially promotion of small and medium enterpriseOther Measures / CNCross Cutting IssuesOther Measures/ CNCross Cutting IssuesInstitution Building/ CNCross Cutting IssuesOther Measures/ CNCross Cutting Issues1387-1391 MRRD, MAIL, MCN1387 - 1391 MAIL, MCN1387 - 1391 MAIL, MCN1387 - 1391 MAIL, MCNAfghanistan National Development Strategy (ANDS) 233

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: SOCIAL PROTECTIONExpected Outcomes Policy Action Category Time frame Responsible AgencyPoverty and vulnerabilityreductionA) SOCIAL PROTECTIONInitiate and complete the public debate about establishment of the AfghanistanWelfare Fund and introduction of the Zakat-based taxIntroduce the Zakat-based tax in line with the recommendations from the publicdebate and consultations that will take place in 2008Approve the new National Law on Rights and Privileges of the Persons withDisabilityOther Measures by mid-2008 MoLSAMD, MoF, MoHajLegislation by mid-2009 MoF, MoHaj, GoALegislation by mid-2008 National AssemblyRatifying the UN Convention for the Rights of Persons with Disabilities Legislation by mid-2009 MoLSAMD, MoFA, MoJ,National AssemblyDevelop and circulate the National Disability Terms Book Legislation by mid-2008 MoLSAMDDevelop and circulate National Disability Referral Guide other Measures by end-2008 MoLSAMDImprove labor market regulations to eliminate employer’s abuses and to decreaseinformal economyDevelop the policy and criteria for providing comprehensive support to thefemale headed chronically poor households with small childrenIn cooperation with the NGOs develop the programs for reunifying the orphanswith their living parent/parents.Develop and approve policy and standards for establishing day care centerwithin orphanages and by the NGOsIn cooperation with the NGOs develop the network of day care centersthroughout the countryProvide support to the Afghan Red Crescent Society for building the new shelters/marastoonsDevelop the project and criteria for free distribution of the livestock, orchardsand tools for farmingIn cooperation with the NGOs develop the programs for reunifying the orphanswith their living parent/parents.Develop and approve policy and standards for establishing day care centerwithin orphanages and by the NGOsIn cooperation with the NGOs develop the policy and standards for dealingwith the children in conflict with law and with children who live with mothersin detentionIn cooperation with the NGOs implement the pilot project for supporting thechildren that are living with mothers in detention and for children in conflictLegislation by mid-2009 MoLSAMD, GoA, NationalAssemblyOther Measures/ GenderCross Cutting IssuesTBDMoLSAMDOther Measures TBD MoLSAMDOther Measures by end - 2009 MoLSAMDInstitution Building by end-2009 MoLSAMDInstitution Building continuously MoLSAMD, ARCSOther Measures by end-2008 MoLSAMD, MAILOther Measures by mid-2008 MoLSAMDOther Measures by mid-2009 MoLSAMD, MoJOther Measures by-mid 2009 MoLSAMDOther Measures by end-2009 MoLSAMD, MoJ234Afghanistan National Development Strategy (ANDS)

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: SOCIAL PROTECTIONExpected Outcomes Policy Action Category Time frame Responsible Agencywith lawEnsure that the most vulnerable groups will be priority for participation in thepublic work programsOther Measures continuously respective line ministriesIncreased employmentPoverty reduction and improvednatural disaster preparedness/responsePoverty and vulnerabilityreduction and capacitystrengtheningPoverty and vulnerabilityreduction, improved employmentImplement awareness campaigns to increase the financial market literacy of thepoor and issues, laws and regulations against corruptionChange the NSDP terms of references to introduce the most vulnerable categoriesas priority group for receiving the skill development trainingsCost, reprioritize and integrate The ANDS Social Protection Strategy into theCore BudgetReach the agreement with the ISAF/NATO on long term direct support to civilianvictims of conflictDevelop the project and criteria for free distribution of the parcels with foodand non-food items in winter period (winterization)Other Measures/ ACCross Cutting IssuescontinuouslyMoFOther Measures Ongoing MoLSAMDOther Measures by end-2008 MoLSAMD, MoFOther Measures by mid-2008 Government, ISAF/NATOOther Measures by end-2008 ANDMA, ARCSApprove poverty-targeted criteria for channeling social protection Other Measures Ongoing MoLSAMDConclude international agreements with the neighboring and other countries toregulate the rights of the Afghanistan’s migrant workersOther Measures by end-2009 MoFA, MoLSAMDDevelop the policy and criteria for supporting the civilian victims of conflict Other Measures by mid-2008 MoLSAMD, ISAF/NATOEstablish the institutional framework for accrediting service providers for skillsdevelopment training and for issuing the certificatesInstitution Building by end-2008 MoLSAMD. MoE, GoADevelop the project for establishing community based insurance scheme Institution Building by end-2008 MoLSAMD, MoFDevelop the new public work program (Greening of Afghanistan) to supportre-forestingOther Measures by end-2008 MAILDevelop the Policy and criteria for supporting the victims of natural disasters Other Measures by mid-2008 Presidents’ Office, ANDMAEstablish, on a pilot basis, the Crop Insurance Scheme at least in two provinces Institution Building by mid 2009 MoF, MoLSAMDEstablish the Afghanistan Welfare Fund in line with recommendations from theconsultations that will take place in 2008Redesign the NSP and the NRAP to ensure their presence in remote and poorestprovincesImprove the communication campaigns to better inform the poor about opportunitiesto participate in the public work programInstitution Building by mid-2009 MoLSAMDOther Measures by end-2008 MRRD, MOPW, MoLSAMDOther Measures continuously respective line ministriesComplete the Labor Market Study to ensure that NSDP will meet the needs for Other Measures by mid-2009 MoLSAMD, NSDPAfghanistan National Development Strategy (ANDS) 235

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: SOCIAL PROTECTIONExpected Outcomes Policy Action Category Time frame Responsible Agencyskills of the labor marketCapacity buildingImproved social inclusionVocational trainings for widows, chronically poor and disabled womenOther Measures/ GenderCross Cutting IssuesOngoingMoWA, MoLSAMDConduct the functional review of the MoLSAMD Other Measures by end- 2008 MoLSAMDPrepare the Plan for capacity building and restructuring of the MoLSAMD Other Measures by end-2008 MoLSAMDDevelop a Proxy Means Test (PMT) based on non-income variables Other Measures by end-2008 MoLSAMDEstablish the data base and computerize all HRM and project information forthe beneficiaries of the social protectionConduct the comprehensive survey to collect data on number of martyr’s familiesand individuals with war related disability, and on their socio-economicsituationConduct the survey to collect data about the female headed chronically poorhouseholds with small childrenDevelop the program for evening classes and skill development training forstreet working childrenAdjust the National Action Plan on Disability with the ANDS Social ProtectionSector StrategyOther Measures/ ACCross Cutting Issuesby end-2009MoLSAMDOther Measures by end-2009 MoLSAMDOther Measures/ GenderCross Cutting Issuesby end-2008MoWA, MoLSAMDOther Measures by mid-2009 MoLSAMD, MoEOther Measures by mid-2009 MoLSAMDConduct the survey to collect data on poor persons with disability Other Measures by mid-2009 MoLSAMDDevelop the criteria and mechanisms for distributing direct cash entitlements tothe poor disabled individuals with the non-war related disabilityDevelop and approve the policy and standards for establishing the communitybased rehabilitation centers by the NGOs to support integration of disabled,drug users and other vulnerable groupsOther Measures by end-2008 MoLSAMDOther Measures by mid-2009 MoLSAMD, MCNInclude rehabilitation of disabled in the BHP in all provinces Other Measures by end-2009 MoPHDevelop the policy and criteria for supporting the victims of violence to includethe program for reintegration into families, schools and society, as wellas developing the criteria for establishing the NGOs-run shelters for women “atrisk” and vulnerable childrenDevelop and approve the guidance for providing the free legal advice and mediationservices (for reintegration into families) to all vulnerable groupsDevelop and approve the policy, program and criteria for community basedrehabilitation of drug-addicts and their reintegration into societyIn cooperation with NGOs implement the pilot project to support extremelyvulnerable groups (homeless, mentally imperiled, elders without family sup-Other Measures by mid-2008 MoLSAMDOther Measures by mid-2009 MoLSAMD, MoJOther Measures by mid-2009 MoLSAMD in cooperationwith MoPH, MCN, MoI, andNGOsOther Measures by end-2009 MoLSAMD236Afghanistan National Development Strategy (ANDS)

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: SOCIAL PROTECTIONExpected Outcomes Policy Action Category Time frame Responsible Agencyport) to include options for reintegration into familiesImproved social protectionsystemDecreased domestic drugdemandImproved aid coordinationsystemReduction in harmful childlaborB) PENSION REFORMWomen's capacity building, and establishment of economic centers for bettereconomic opportunitiesDevelop the project to support the poor KuchiRegulate rights of the Kuchi and other population to use traditional summerpasturesEliminate all existing misuses and irregularities in distributing the direct cashtransfersImplement the new schedule for payments of the direct cash transfers (twice ayear) in order to decrease cost of collecting the payments for vulnerable martyr’sfamilies and individuals with war related disability who are living in remoteareasOther Measures/ GenderCross Cutting IssuesOther Measures/ GenderCross Cutting IssuesTBDby mid-2009Other Measures by-mid 2008 GoAMoWA, MoLSAMDOther Measures continuously MoLSAMDOther Measures by mid-2009 MoLSAMDMoLSAMD, MoE, MoPHDevelop the strategy for privatization of kindergartens Other Measures by mid-2008 MoLSAMD, MoFGradually privatize kindergartens Other Measures by end-2012 MoLSAMD, MoCIConduct the survey and collect data on civilian victims of conflict Other Measures by-mid-2009 MoLSAMD, MoI, MoDMap the NGOs activities in social protection sector Other Measures by mid-2009 MOSAMDDevelop the standards for the NGOs involvement in implementation of thesocial protection projects and set up recognized and publish referral systemEnsure that social protection programs of line ministries will be in line with theSAARC Social ChapterEstablish the qualitative baseline indicators for monitoring of the Social ProtectionSector StrategyPrepare and disseminate regular progress and evaluation report on implementationof the Social Protection Sector StrategyImplement Drug Prevention Awareness Campaign through media, schools andreligious leadersDevelop the database of all Government and donor-funded projects in the areaof social protection.Other Measures by end-2008 MoLSAMDOther Measures continuously MoLSAMDOther Measures by end-2008 CSO, line ministriesOther Measures continuously ANDS,.MoLSAMD,ANDMAOther Measures continuously MoE, MCN, MoRAOther Measures by mid-2009 MoLSAMDImplement the awareness campaign against harmful child labor Other Measures continuously MoLSAMDAfghanistan National Development Strategy (ANDS) 237

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: SOCIAL PROTECTIONExpected Outcomes Policy Action Category Time frame Responsible AgencyImproved old age protectionCapacity buildingC) DISASTER PREPAREDNESSImproved disaster preparedness/responsePromulgate the pension reform by the Government decree Legislation by mid-2008 MoLSAMDModernize accounting as well as internal operational procedures of the PensionDepartmentInstitution Building by end-2012 MoLSAMDDevelop the new IT system and processes of the Pension Department Other Measures 2008-2012 MoLSAMDImprove collection of the pension contributions (payroll taxes) Other Measures continuously MoFEstablish a central database to store and process the details on pensioners andtheir bank accountsOther Measures by end-2012 MoLSAMDIntroduce payments of pensions through banks Other Measures by end-2012 MoLSAMDImprove the capacity of the Pension Department of MoLSAMD Institution Building continuously MoLSAMDImprove record keeping and processes of the Pension Department and minimizeany corrupt practicesConduct the capacity building and training for the staff and managers of thePension DepartmentAdjust the legislation to clearly reflect the leading role of the ANDMA in coordinatingthe national efforts for disaster preparedness and response but alsofor implementing of key programs and projects.Establish a coordination network of NGO's which are working in the field ofdisaster risk reduction by creating department of NGO in ANDMA structureEstablish academic consultation network with academy of science, faculty ofEngineering and Polytechnic University for designing, prevention & mitigationprojectsOther Measures/ ACCross Cutting Issuesby end-2012MoLSAMDOther Measures by end-2010 MoLSAMDLegislation by end-2008 GoA, ANDMAby end-2008by end-2008ANDMAANDMAEstablish Emergency Operation Centers (EOCs) at the provincial level Institution Building by end-2009 ANDMA, GovernorsEstablish response centers and teams at the regional level Institution Building by end-2009 ANDMAEstablish community emergency response system Institution Building by end-2010 ANDMAEstablish effective early warning system Institution Building by end-2009 ANDMADevelop back-up communication system based on Codan Institution Building by end-2008 ANDMAEstablish ANDMA’s offices along with the operational centers Institution Building by end-2009 ANDMAConstruct 12 regional storages for aid assistance and equipment Institution Building by end-2009 ANDMAApprove regular annual plans for disaster preparedness and response Other Measures continuously GoAComplete collecting information related to risks and vulnerabilities at the nationaland sub-national level and finalizes disaster risk analysisOther Measures by end-2009 ANDMA238Afghanistan National Development Strategy (ANDS)

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: SOCIAL PROTECTIONExpected Outcomes Policy Action Category Time frame Responsible AgencyDevelop a guideline for disaster preparedness and response planning Other Measures by end-2008 ANDMADevelop Standardized Operational Procedures(SPO) for quick assessment andresponse, reporting, and for rapid mobilization of international assistanceOther Measures by end-2008 ANDMA, line ministriesDevelop and operationalize the provincial disaster management plans Other Measures by end-2009 ANDMA, GovernorsImprove public awareness activities and raise national awareness about disasterrisks and vulnerabilitiesIntegrate disaster risk reduction in national and sub-national policies and plans’– responsible all line ministriesOther Measures continuously ANDMAOther Measures by end-2010 ANDMA & All MinistriesPILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: REFUGEES AND INTERNALLY DISPLACES PERSONSObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgenciesRefugees and Internally DisplacedPersons (IDPs) returnvoluntarily according toagreed principles and proceduresIdentify bottlenecks (political, security, economic, social and legal) facing returnees(refugees and IDPs) and promote sustainable solutions for them withspecial focus on chronically poor women, disabled and widows. (dispute settlementmechanisms land tenure, pasture management, rehabilitated livestock,productive infrastructure, vocational skills, shelters and etcCivil registry law with regards to the Kuchis implemented in close cooperationwith Ministry of Interior, Border and Tribal AffairsTri-partite agreements are concluded between countries of asylum, Afghanistan,and UNHCR, fully reflecting the principles of voluntary, dignified and gradualreturn, continue to guide the conduct of the voluntary repatriation operation.Tripartite Commissions are convened as the key policy arena within which decisionson the conduct of voluntary repatriation operations are takenAnnual return planning figures, taking into account Afghanistan’s absorptioncapacities are discussed and agreed upon in Tri-Partite Commissions, especiallywith the Governments of Pakistan and Iran.Monitor border movements, interview returnees and document violations ofarticles of agreements, due attention to be given to counter narcotics issuesEnsure continued donor support for initial reintegration assistance in criticalareas like housing, water/sanitation, and financial supportLegislation/ GenderCross Cutting Issues2008 – 2013 MoRR, MoFALegislation 2008 – 2013 MoRR, MoFALegislation 2008 – 2013 MoRR, MoFAOther Measures 2008 – 2013 MoRR, MoFAOther Measures 2008 – 2013 MoRR, MoFAOther Measures/ CNCross Cutting Issues2008 – 2013 MoRR, MoFA, MCN, MoIOther Measures 2008 – 2013 MoRR, MoFA, MRRDAfghanistan National Development Strategy (ANDS) 239

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: REFUGEES AND INTERNALLY DISPLACES PERSONSObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgenciesGovernment’s capacity tomanage and support returnand reintegration prgrammesis strengthenedContinued emphasis on social protection (e.g. establishment of referral systems,centers, networks for vulnerable groups and individuals with focus on women)Implement programs for improved employment opportunities, skill development,basic literacy and numeracy, access to health carePolicies adjusted to make provisions for returning refugees and IDPs in nationalprogramsEnhance capacity to prepare and reach out information to Afghans either in oroutside of the country.Computerize all HRM and project activities to strengthen Human Resource andProject ManagementStrengthened public management capacity to develop policy and negotiateagreements and strengthen ant-corruption measuresManagement and implementation of Land Allocation Scheme is improved andsupported to increase number of sites (5-10) in key returnee provinces. Landallocation and registration monitored for anti-corrupt practicesReforms to the structure, organization and work processes of the Ministry andprovincial Departments of Refugees and Repatriation are completed.Other Measures 2008 – 2013 MoRR, MoFA, MoLSAMD,MRRD, MD, UNHCR, ILO,IOM and partnersOther measures 2008-2013 MoRR, MRRD, MoUD, MoE,MoPH, MolSALegislation 2008-2009 MoRR, MoFA, MRRD,UNHCRInstitution Building 2008 – 2013 MoRR, MoFAInstitution Building/ ACCross Cutting IssuesInstitution Building/ ACCross Cutting IssuesInstitution Building/ ACCross Cutting Issues2008-10 MoRR2008-102008 – 2013 MoRR, MoFAInsitution building 2008-210 MoRR, Civil Service CommissionCapacity building and technical assistance Institution Building 2008-2013 MoRR, Civil Service CommissionEnhance communications and interactions between Kabul and provinces Institution Building 2008-2010 MoRR, Civil Service commissionData collection, analysis (disaggregated by gender) and knowledge generationInstitution Building/Gender Cross CuttingIssues2008-2010 MoRRPolicy advice to provincial authorities, Institution Building 2008-2013 MoRR, MoFA, UNHCRCoordination of interventions and material assistance support. Institution Building TBDImproved internal coordination mechanisms by establishing joint committee (ministries and related agencies) for policy and operational planning and developmenton land Allocation programData on Afghans in neighboring countries ( Iran and Pakistan) is analyzed andAfghanistan’s absorption capacity is assessed Analysis to be gender and childrensensitiveBudget allocations to sectors and provinces takes account of population expansionas a result of returnsOther Measures TBD MoRR, MRRD, MHUD,MoLSAOther Measures/ GenderCross Cutting Issues2008-2009 MoRR, UNHCROther Measures 2007-2010 MoRR, MoF240Afghanistan National Development Strategy (ANDS)

PILLAR: SOCIAL PROTECTION & REFUGEESSECTOR: REFUGEES AND INTERNALLY DISPLACES PERSONSObjectives or Outcomes Policy Actions or Activities Category Time frame Responsible AgenciesNational initiatives addressing returnee needs (both Male and Female) and localhost communities developed and enhanced in housing, area-based and communitydevelopment programs with particular emphasis on employment, livelihoods,and skill development.Other MeasuresBy end-first half of2009MoRR, MoUD, MoFA, MRRD,MoE, MoPHImproved terms of stay andconditions for Afghans inneighboring countriesBilateral agreements on temporarylabor migration progressMonitoring and evaluation mechanisms for tracking the reintegration processare establishedOther Measures By end of 2009 MoRR, ANDMA, MRRD, provincialauthoritiesResearch and analysis to support policy advocacy Other Measures By end of 2013 MoRR, MoFANegotiations with neighboring countries led by Ministry of Foreign Affairs andMinistry of Refugees and Repatriation for more predictable and clearer legalstatus and renewable documentationIdentification of program interventions to support policy objectives Other MeasuresResearch and analysis to support policy and public advocacy (Labor migrationflows identified and quantified, cross border commuting assessed)Negotiations with neighboring countries led by Ministry of foreign Affairs andMinistry of Labor and Social Affairs (Agreements with neighboring and countriesin the region that accept laborers)Strengthened public management capacity to develop policy and negotiateagreementsOther Measures 2009-2013 MoFA, MoRR, MoLSAOther Measures TBD MoRR, MolSAMD, MoFA, MoIOther Measures End of 2013 MoRR, MoFA, MoLSAOther Measures End of 2013 MoRR, MoFA, MoLSAMD,MRRD, MD, UNHCR, ILO,IOM and partnersInternational conference on "Return and reintegration in Afghanistan" Other Measures 2008 MoRR, MoFA, MoLSAMD,MRRD, MD, UNHCR, ILO,IOM and partnersTripartite commissions with Pakistan and Iran meet four times a year Other Measures 2008-20013 MoRR, MoFA UNHCRTripartite agreement renewed with Iran on Annual basis and signed with Pakistanfor three yearsOther Measures 2008 MoRR, UNHCRAfghanistan National Development Strategy (ANDS) 241

APPENDIX IIMonitoring MatrixPILLAR: SECURITYSECTOR: SECURITYExpected Outcomes Indicators Baselines TargetsEffectively coordinated security sectorANA operationally capable of performing those missionsand tasks assignedANA expenditures are fiscally sustainableANP operationally capable of performing those missionsand tasks assigned and crime rates reducedOperational border posts able to protect national sovereigntyANP and ABP expenditures are fiscally sustainableReduced level of deaths and casualties caused by UXOs,reduce the number of affected communities and increasedsafety precaustionsEnhanced public trust on government ability to deliverjustice and security as IAGs are disbanded and reintegratedIndex on progress of establishing joint coordination centersfor the ANA and ANPUnder Assessment, 13Coordination centersproposedEhanced coordination amongstsecurity setor ministry/departments (2013)# of recruited ANA personnel 64, 996 (Apr 2008) 80,000 (end 2009)% completion of PAR process in MoD 80% (Apr 2008) 100% (end 2009)Index on progress of equipping the ANA with technicaland administrative supportIndex on progress of equipping the ANA by Land and AirForceUnder AssessmentUnder AssessmentIndex on equipping the ANA training centers Under Assessment TBD% of ANA personnel trained 77% (2008) 100% (2013)% of ANA expenditure funded from Government Revenue21% (2008) (corebudget)# of recruited ANP personnel 80,426 (Apr 2008) 82,000 (end 2008)% completion of PAR process in MoI 60% (Apr 2008) 100% (end 2009)% of ANP received logistical support 85% (Apr 2008) 100% (2010)% of ANP personnel trained 55% (Apr 2008) 100% (2010)Index on equipping the border posts Under Assessment 100% (2013)% of ANP and ABP expenditure funded from GovernmentRevenue# square meters cleared of UXOs# of districts cleared from IAGs8.9% (2008) (corebudget)128,478,929 squaremeters of land21 Districts compliedso farTBDTBDTBDTBDClearance of 540 million squaremeters before end 201051 Districts targeted242Afghanistan National Development Strategy (ANDS)

Eventual eradication of Poppy Production and crack downon drug trafficking# ha of poppy cultivated land area 193,000 haBy 2013, the area under poppy cultivationwill be reduced by halfcompared to 2007 levelsPILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTSSECTOR: GOVERNANCEExpected Outcomes Indicators Baseline TargetsEmpowered National AssemblyIndex on the progress of empowering the National Assembly.UnderAssessmentEmpowered National Assembly to fulfill effectively its constitutionally mandatedroles (2013)Reformed Public AdministrationIndex on the progress of reforming Public Administration.UnderAssessmentReformed Public Administration (2013)Trained and Capable PublicSector WorkforceIndex on the progress of building capacity of Public SectorWorkforce.UnderAssessmentBy Jaddi 1392 (end-2013), a training policy for the entire public sector workforceshall be developed and implemented. Institutional arrangements shallbe put in place to ensure that each member of the workforce gets trained atleast once in two years in organization specific and job specific training alongwith the generic training.Merit Based Appointmentsand Performance-based ReviewsIndex on the progress of implementing systems, mechanismsand procedures to implement merit based appointmentsand performance-based reviews.UnderAssessmentBy March 2011, in furtherance of the work of the Civil Service Commission,merit-based appointments, vetting procedures and performance-based reviewswill be undertaken for civil service positions at all levels of governmentCorruption ReducedIndex on the progress of introducing systems, mechanismsand procedures to reduce and monitor corruptionat different levels in the government and the judiciary.UnderAssessmentBy Jaddi 1392 (end-2013), the corruption in the judiciary and the governmentat all levels especially in security, customs, civil administration and municipalitieswill be significantly reduced.Enhanced Availability ofInformation to Public andEnforcementIndex on the progress on enhanced availability of Informationto Public and Enforcement.UnderAssessmentBy Jaddi 1389 (end-2010), the legal framework required for exercise of thisright provided under the constitution will be put in place, distributed to alljudicial and legislative institutions, and made available to the public and,implemented.Improved Participation ofWomen in GovernanceIndex on the progress of putting plans, systems andmechanisms in place for improved participation ofwomen in governance.UnderAssessmentBy Jaddi 1389 (end-2010) In line with Afghanistan’s MDGs, female participationin all Afghan governance institutions, including elected and appointedbodies and the civil service, will be strengthened by providing a specific percentreservation of seats by enacting a law of affirmative action.Nation Prepared for DisasterManagementIndex on the progress of putting plans, systems andmechanisms in place at all levels for Disaster Management.UnderAssessmentBy Jaddi 1389 (end-2010), an effective system of disaster preparedness andresponse will be in place.Afghanistan National Development Strategy (ANDS) 243

PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTSSECTOR: GOVERNANCEExpected Outcomes Indicators Baseline TargetsStrong and Capable IndependentElection Commissionholding regular nationaland sub national Elections asmandated by the ConstitutionIndex on the progress of creating a strong and capableIndependent Election Commission holding regular nationaland sub national Elections as mandated by theConstitution.UnderAssessmentThe Afghanistan Independent Electoral Commission will have the high integrity,capacity and resources to undertake elections in an increasingly fiscallysustainable manner by Jaddi 1388 (end-2009), with the Government of Afghanistancontributing to the extent possible to the cost of future electionsfrom its own resources.Single National IdentityDocumentIndex on the progress of providing single national identityto all citizens in the country.UnderAssessmentBy Jaddi 1392 (end-2013), civil registry with a single national identity documentwill be establishedCensus Completed and ResultsPublishedIndex on the progress of Census operations and publishingof results.UnderAssessmentCensus enumeration fully completed during summer of 2008 in all districts.Publishing the full results of census in 2010Statistical Baselines Establishedand the Statistical CapacityBuiltIndex on the progress of building statistical capacity inthe country and establishing statistical baselines.UnderAssessmentBy Jaddi 1392 (end-2013), Reliable statistical baselines will be established forall quantitative benchmarks and statistical capacity built to track progressagainst them.Mapping of Villages and Gozarsand reviewing theirboundariesIndex on the progress of mapping and reviewing theboundaries of Villages and Gozars.UnderAssessmentBy Jaddi 1388 (end-2009), Government will carry out political and administrativemapping of the country with villages and gozars as basic units and,the political and administrative maps will be made available at all levels forthe purpose of elections, socio- economic planning and implementation ofsub-national governance policy.Modern Land AdministrationSystem EstablishedIndex on the progress of establishing a modern land administrationsystem including settlement of land disputes.UnderAssessmentA community based process for registration of land in all administrativeunits and the registration of titles will be started for all urban areas and ruralareas by Jaddi 1387 (end-2008).A fair system for settlement of land disputes will be in place by Jaddi 1386(end-2007).Sub National GovernancePolicy DevelopedIndex on the progress of putting in place legal, policy,institutions and other systems and procedures forstrengthening the sub-national governance.UnderAssessmentBy end-1389 (20 March 2011), the Government will ensure formulation andimplementation of sub-national governance policy and, its legal and regulatoryframework. This will be done through a national dialogue on subnationalgovernance and, with technical support of international community.Government Offices physicallyequipped to fulfill theirRoleIndex on the progress of providing basic facilities andamenities to all government offices.UnderAssessmentBy end-1392 (20 March 2013), all the councils and offices including municipalitieswill have basic facilities and amenities including adequate built upspace, computers, communication facility and furniture. The key officials atnational and sub national level will have adequate means of mobility to makeconnection with the communities they are serving244Afghanistan National Development Strategy (ANDS)

PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTSSECTOR: GOVERNANCEExpected Outcomes Indicators Baseline TargetsFree Flow of Informationfrom all the District CentersIndex on the progress of development of a comprehensiveMIS for free flow of information from all the DistrictCentersUnderAssessmentBy end-1389 (20 March 2011), all the district centers of the country will haveinternet facility to facilitate the flow of information between the districts,municipalities, provinces and, the centre i.e. Kabul.Human Rights Realized, Protected,Promoted and ExtendedIndex on the progress of putting in place legal, policy,institutional and other systems in place to realize, protect,promote and extend human rights in the country.UnderAssessmentBy Jaddi 1389 (end-2010), the Government's capacity to comply with andreport on its human rights treaty obligations will be strengthenedPILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTSSECTOR: JUSTICE AND THE RULE OF LAWExpected Outcomes Indicators Baseline TargetsPublic can rely on effectively organizedand professionally staffed justiceinstitutionsIndex on the progress of putting in place systems so thatpublic can rely on effectively organized and professionallystaffed justice institutions.# of oversight and disciplinary mechanism developedand implemented by AGO, MoJ and Supreme CourtUnderAssessmentUnderAssessmentby end 2010 (1391), reforms will strengthen the professionalism, credibility and integrityof key institutions of the justice system (the Ministry of Justice, the Judiciary,the Attorney-General’s Office, the Ministry of the Interior and the National Directorateof Security)TBDIndex on the progress of providing Justice institutionsaccess to infrastructure, transportation, equipment, andsupplies adequate to support effective delivery of justiceservicesUnderAssessmentBy the end of 2010 (1391), justice institutions will be fully functional and operationalin each province of Afghanistan, and the average time to resolve contract disputeswill be reduced as much as possibleJustice institutions have access toinfrastructure, transportation, equipment,and supplies adequate to supporteffective delivery of justiceservices# of functioning and adequately resourced, judicialinstitutions in each province# of functional prisons (Detention Centers, DC)UnderAssessment33 ProvincialDC184 District DCTBDTBD# of Adequate detention and correction facilities forwomen2 (Kabul, Herat)18 Provinceswith no facilitiesTBDLegal education and vocational trainingare adequate to provide justiceprofessionals with sufficient knowhowto perform their taskIndex on the progress of improving legal education andvocational training to provide justice professionals withsufficient know-how to perform their taskUnderAssessmentBy end-2013 the Justice Institutions will Have recruited and promoted justice professionalson merit, based on established policies and procedures, including meeting thetarget of 30% of the professional staff being femaleAfghanistan National Development Strategy (ANDS) 245

PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTSSECTOR: JUSTICE AND THE RULE OF LAWExpected Outcomes Indicators Baseline TargetsStatutes are clearly drafted, constitutionaland the product of effectiveand consultative drafting processesIndex on the progress of making Statues clearly drafted,constitutional and the product of effective and consultativedrafting processes.UnderAssessmentTBDJustice institutions effectively performtheir functions in a harmonizedand interlinked mannerIndex on Progress of enacting and implementing newcriminal procedureIndex on the progress of putting in place systems so thatJustice institutions effectively perform their functions ina harmonized and interlinked manner.UnderAssessmentUnderAssessmentBy 2009 (1388), the new criminal procedure code will be enacted and published, andfor its implementation training with written commentary will be provided to all legalprofessionals, as well as community legal education for citizensBy end-2013 the Justice Institutions will have mapped in detail the processes linkingall justice institutions, and have streamlined them to improve information systems andbusiness processes, with the aim of reducing delays in processing of cases, administrativecosts and vulnerability to corruptionCitizens are more aware of theirrights and justice institutions arebetter able to enforce them.Index on the progress of making citizens more aware oftheir rights and justice institutions being better able toenforce them.UnderAssessmentBy end-2013, the Justice Institutions will encourage press coverage of justice proceedings,public attendance at those proceedings, and general public understanding ofthe process at each stage of such proceedings. The justice institutions should encourageand participate in the development of outreach programs within civil society includingcurriculum for public education at all levelsCriminal and Civil justice is administeredeffectively, and in accordancewith law, the Constitution, and internationalstandardsIndex on the progress of putting in place systems so thatCriminal and Civil justice is administered effectively,and in accordance with law, the Constitution, and internationalstandards.UnderAssessmentBy end-2013, the Justice Institutions will have established an easily accessible andfunctioning public complaints system in at least eight major provincial capitals withclear processes for handling complaintsJustice institutions are transparentand accountableIndex on the progress of making justice institutionstransparent and accountable.UnderAssessmentBy end-2013, the Justice Institutions will have determined their vulnerabilities tocorruption and established policies and procedures to eliminate such vulnerabilitiesPILLAR: INFRASTRUCTURESECTOR: ENERGYExpected Outcomes Indicator Baseline TargetsAn enabling environment for private sector investmentin energy sector createdExpanded public power gridIndex on the progress of creating an enabling environment for private sector investmentin energy sector.% of households electrified in urban areas 30% 65% (2011)% of households electrified in rural areas. 10% 25% (2011)% of non-residential consumers provided electricity. 35% 90% (2011)Index on the progress of expanding public power grid. TBD TBDTBD Enabling Environment for Private Sector by 2009246Afghanistan National Development Strategy (ANDS)

Increased Access to Rural Energy Services Index on the progress of increasing access to rural energy 6%Promotion of Private sector Index on the progress of promotion of private sector in energy sector TBD TBDRestructured Energy Sector Governance andCommercialized operationsIndex on the progress of restructuring energy sector governance and commercializedoperations% of recovery of cost of supply 60%60%A strategy for the development and use of renewableenergies will be developed by March 2008Energy sector governance restructuring andcommercialized operations by 201075% of the costs will be recovered from users byMarch 2011PILLAR: INFRASTRUCTURESECTOR: TRANSPORTExpected Outcomes Indicators Baseline TargetsROAD TRANSPORTImproved connectivity through outAfghanistan and to the foreign destinationswithin the region.% of target 3263 Km of regional highways or roads to theneighboring countries fully upgraded and rehabilitated.% of all villages connected by all-weather roadsHaving updated transport policies/regulation and improvedtransport management system to enforce and implement thestates law and regulations related to the transport sector.% of all roads in municipalities (i.e. cities) improved to agood standard (with having bus and truck terminals in allthe provincial centers).% of roads in maintainable condition that receive regularmaintenanceIndex on the progress of putting a fiscally sustainable roadmaintenance system in place by March 2008 and its coverageImproved sidewalks and shoulders (km) (along with improvedand connected drainage system)2236 km has been rehabilitatedTarget has achieved 65% (Out of 38,000villages 9,954 villages have access to ruralroads)Outdated policies and regulations whichneed to be improved / Although that somemanagement improvement have been inplace15-20 % roads are in good condition withsome improved servicesout of 2236 km of rehabilitated regionalhighways, 860 km receives regular maintenance40%15-20 % roads are in good condition withsome improved servicesFully upgraded and maintained ring road and roads toneighboring countries by March 2009.40 % of all villages to be connected by all-weatherroads to the national road system by the end of 2010.Improved and updated transport management by 201170% of all roads in municipalities (i.e., cities) are improvedto a good standard by the end of 2011.Fiscally sustainable system for roads maintenance byJune 2008A fiscally sustainable road maintenance system byJune 2008.Improved sidewalks and shoulders by 2010Lower road user costs Index on the rationalization of road user costs. 0% Lower road user fees by 75% by end 2008.Less journey time lost due to congestionIndex on the improvement of Public Transport Provisionand roads in urban areas and inter-provinces.TBD Less journey time by end 2012Afghanistan National Development Strategy (ANDS) 247

PILLAR: INFRASTRUCTURESECTOR: TRANSPORTExpected Outcomes Indicators Baseline TargetsImproved air quality.CIVIL AVIATIONIncreased domestic and internationalpassengers and freight traffic by air.Improved governance of civil aviationsector.Index on the progress of the process of enforcing the environmentallaw in transport sector.Index on the progress of the process of completion of InternationalCivil Aviation Organization (ICAO) compliancefor Kabul and Herat Airports.Index on the progress of the process of up gradation ofKandhar, Jalalabad and Mazar-e-Sharif Airports with runwayrepairs, air navigation, fire and rescue and communicationequipment.Index on the progress of the process of up gradation of 7airports to facilitate domestic air transportation.TBD40% Kabul0% Heart50% (KDH)10% (JBD)0% (MZR)50% Qalainaw30% Maimana0% Faizabad0% Chaghcharan0% Zaranj0% Lashkar Gah0% Tarin Kowt# of International airports constructed /rehabilitated 0 2 (End 2010)# of domestic airports constructed/rehabilitatedAir travel price index comparable to international standards.Index on the progress of Institutional reform programs anda reduction in the requirement of ISAF to use air facilities(Create a new Civil Aviation Authority (CAA), and restorecontrol of Afghan airspace to the Civil Aviation Authority.)Index on the progress of massive capacity building programsin the civil aviation sector.The feasibility studies for the 10 domesticairports have been done.For have Airport services cost comparablewith international standards ,ICAO personnelis developing a tariff plan for variouscomponent of airport services on the basisof the Airport master Planning study reportof 2004.5%To enhance capacity of the Ministry, a trainingprogram has been finalized to the tune of640000. ADB is funding the project.40 studentswill be trained under the program.Environmental protection from air pollution by End of2009Kabul International Airport and Herat Airport are incompliance with the International Civil Aviation Organization’s(ICAO) and the International Air TransportAssociation’s (IATA’s) requirements by March2011.Mazar-i-Sharif, Jalalabad and Kandahar will be upgradedwith runway repairs, air navigation, fire andrescue, and communications equipment by March2011.Seven other domestic airports will be upgraded to facilitatedomestic air transportation by March 2011.10 (2013)Air transport services and costs will be increasinglycompetitive with international market standards andrates by March 2011.Improved governance in civil aviation sector by end2011By end-2013, transport sector capacity will be enhanced248Afghanistan National Development Strategy (ANDS)

PILLAR: INFRASTRUCTURESECTOR: TRANSPORTExpected Outcomes Indicators Baseline TargetsOVERALL TRANSPORT SECTORAll the programs will be conducted in 2008.30 Fire Fighter have been trained in Omanand another 17 other personnel will betrained in 2008. Under the Transition Planalso for key functions such as ATC, CNSand Fire Fighting on the job trainings will beprovided by ICAO experts. The identification& the number of the beneficiaries willbe finalized by March 2008. Further 200students was sent to FAA academy in U.S.Aand 20 others will be sent by end of 2008.Improved Governance in the TransportSectorBusiness environment for privatesector development improved tocreate jobs and reduce poverty.Access to secure tenure and improvedservices and public facilitiesfor inhabitants of informal settlementsImproved institutional coordinationand monitoring of key urban indicatorsIncreased access for urban householdsto basic servicesIndex on the progress of putting institutional mechanismsin place for better governance of the Transport Sector.Index on the progress of passing enabling legislations andenabling regulations for efficient working of the transportsector and various players therein.% increase in amount of taxes and duties collected throughcross border tradeIndex on the progress of providing access to secured tenureand improved services and public facilities for inhabitantsof informal settlementsInter-Ministerial Working Group established.TOR under review% of informal settlements having access to basic services 10-15 % 50 % by 2013% of informal settlements have access to secure tenure 0% 90% by 2013Index on the progress of improving institutional arrangementsfor coordination and monitoring of key urban indicators.Index on the progress of providing improved to basic servicesby urban households.% of investment in urban road networksTBDTBD0%In principals all the key institutions haveagreed upon on but details and actions havebeen to preparedDue to capacity limitation within municipalities;the urban services delivering arevery low and aren't sufficient and efficient10-15 % urban roads are improved withsome improved services.Governance of Road Transport sector progressivelyimproved by by 2013Improved business environment for private sector by2012TBDThe registration of titles will be started for all majorurban areas and a fair system for settlement of landdisputes will be in place.Improved institutional coordination by end 2008By March 2011, Municipal Governments will havestrengthened capacity to manage urban developmentand to ensure that municipal services are deliveredeffectively, efficiently and transparently;70% by 2013% of households having access to safe water supply inKabul.18-21 % h/h has access to safe piped water in line with MDG investment in water supply and sanitationwill ensure that 50% of households (h/h) in Ka-Afghanistan National Development Strategy (ANDS) 249

PILLAR: INFRASTRUCTURESECTOR: TRANSPORTExpected Outcomes Indicators Baseline Targetsbul will have access to piped water by March 2011Increased availability of affordableshelterStrengthened institutional capacityto plan and manage urban development% of households having access to piped water supply inother major urban areas except Kabul.% of households having access to sanitation facilities inKabul.% of households having access to sanitation facilities inother major urban areas except Kabul.15-18% h/h has access to safe piped water5-8% h/h have access to improved sanitation 50 % by March 201110-12% h/h have access to improved sanitation30% of households (h/h) in other major urban areaswill have access to piped water”; by March 201130% by March 2011Proportion of open green spaces per developed urban area less than 5% 30% By 2013Index on the progress of providing increased availability ofaffordable shelter.less than 5% 60% by 2013% of urban residents having access to affordable finance 0% TBD% of urban residents having access to housing subsidyThe process is underway to implement mortgagesystem50% by 2013% completion of city development plans for 34 provinces 20% 90% by 2013Index on the progress of building strengthened institutionalcapacity to plan and manage urban development.The process is under way has been recentlyinitiatedby 2013 Sustainable water resource managementstrategies and plans covering drinking water supplywill be developed along with improved sanitation.Municipalities will be operating under updated lawsand polices and effectively and transparently deliveringurban services, with better customer service systemPILLAR: INFRASTRUCTURESECTOR: WATER RESOURCESExpected Outcomes Indicator Baseline TargetsImproved water sector legal and governancestructures and institutions in placeSustainable water resources managementstrategies and plans covering irrigation anddrinking water supply developed and implemented.Index on the progress of putting in place improved water sector legaland governance structures and institutions in place.Index on the progress of developing and implementing sustainablewater resources management strategies and plans covering irrigationand drinking water.Partially good (improving) Improved water sector governance by 2013Strategies 70% completedFeasibilities studies forlarge projects are continue% of water coming from large waterworks. 10% TBDSustainable water resource management strategies andplans covering irrigation and drinking water supplywill be developed by end-2008, and irrigation investmentswill result in at least 30% of water coming fromlarge waterworks by March, 2011.250Afghanistan National Development Strategy (ANDS)

PILLAR: INFRASTRUCTURESECTOR: WATER RESOURCESExpected Outcomes Indicator Baseline TargetsWater resources for irrigation and Drinkingpurposes improvedIndex on the improvement of water resources for irrigation and drinkingwater purposes.25-30%# of Hydrometric stations installed and equipped 3 out of 177 TBDImproved water resources for drinking and irrigationpurpose by 2013% of lands irrigated through rehabilitated and new water works 1.8 Million Ha Additional 450,000 ha (2013)% of sites where 90% of tail-enders receive enough water on time TBD TBD# of sites reserved as suitable drinking water resource% of beneficiaries, by gender, whose technical knowledge and skillsfor managing irrigation assets have increased considerably% of households in other urban areas except Kabul have access topiped waterBased on recent surveys 20% of the sites have beenreservedTBDBy 2013 sites reserved as suitable drinking water resourceTBD15-18% 30% by end of 2011% of households in Kabul have access to piped water 18-21% 50% (2010)# of water points available for rural households TBD TBDPILLAR: INFRASTRUCTURESECTOR: INFORMATION AND COMMUNICATION TECHNOLOGYExpected Outcomes Indicators Baseline TargetsE-Afghanistan createdEnabling EnvironmentIndex on the progress of creation of E-AfghanistanE-Government policies, strategies and pilotprojects are already launched.E-Afghanistan created by 2013# of government offices having official web presence 15 All Government Offices (2013)# of provincial government offices having official web presence 3 All Prov. Government Offices (2013)# of government offices having Chief Information Officer (CIO) 0 All Government Offices (2013)# of government offices connected through the fiber optic 20 All Government Offices (2013)Index on the progress of putting legal enabling environment forthe ICT Sector in place.Index on the progress of building institutions for the ICT Sector.At present telecom law, An independent regulatorATRA and open telecom market is the guarantorof the enabling environment.Ministry of Communications and IT and NationalICT Council are the existing.Enabling Environment by 2013ICT Sector institutions will be built (2013)ICT Literacy improved Index on the progress of establishment of ICT centers in 34 Pro- 15 Improved ICT Literacy, 34 provinces 2013Afghanistan National Development Strategy (ANDS) 251

vincial capitalsImproved ICT coverageand InfrastructureIndex on the progress of putting in place improved infrastructurefor the ICT Sector.GCN, DCN, VCN, CCN, OFC and NDC projectsare brought, implemented at present.% of Afghans having access to affordable telecommunications 70% 80% (2010)% increase in annual revenue generated from the ICT Sector US$ 75 millionBy end-2010, a national telecommunications networkto be put in place so that more than 80% of Afghanswill have access to affordable telecommunications.More than US$ 100 million dollars per year are generatedin public revenues by end 2010% of population access to mobile phones 20% Increased Access to mobile phonesnumber of internet users 500,000 Increased Access to internet# of Post Offices connected to a well-functioning communicationnetwork and equipped44 Increased number of post offices connectedPILLAR: INFRASTRUCTURESECTOR: MINES AND NATURAL RESOURCESExpected Outcomes Indicator Baseline TargetsStrong regulatory framework inplaceApproval of Gas LawApproval of Mineral RegulationsApproval of Hydrocarbons RegulationsMinerals and Hydrocarbons law has been passedCreating enabling environment including legalone for increased investment in mining sector(2013)Increased Private Sector Investmentin mining sectorIncrease in net revenue of ministry ofMinesIn current year (1386)net revenue of ministry of mines is US$ 32 millionIncrease net revenue of ministry of mines afterseven years to US$ 1 billionGeophysical and geologicalinformation availableSurvey of Minerals and HydrocarbonsSurveys conducted in this regard cover only 10% and 4% of country'stotal hydrocarbons and minerals respectivelySurvey of 5% area of country's natural resources( minerals and hydrocarbons)Increased access to Gas resourcesRenovation of Shaberghan gas networkand extension of Mazar-e-sharif gaspipeline and its networkCurrently consumers of Afghan gas is less than 1% of total populationIncreasing gas consumers to 5% of total populationIncreased access to water resourcesIncreased access to safe drinking waterPartial study of water in Kabul river basin has been done, but the waterstudied do not fulfill the need of Kabul population. Recently assessmentstudy in Kabul river basin has been started through research and Geoengineering enterprises with support of JICA and USGSAvailability of under ground water with qualityand quantity252Afghanistan National Development Strategy (ANDS)

PILLAR: EDUCATIONSECTOR: EDUCATION AND MEDIA, CULTURE AND YOUTHExpected Outcomes Indicators Baseline TargetsImproved quality of educationLiteracy rates improvedEqual opportunity for allPRIMARY AND SECONDRY EDUCATIONIndex on the progress of putting systems, institutions, proceduresand legal framework in place for improving the quality of education.Index on the process of designing and conducting competency testfor teachers including principals.No. of competent teachers (male and female).Started in 1386 and will continuedtill 1389 (% TBD)Started in 1387 (% TBD)54,093 male (2002)20,508 female (2002) EMISEMIS is completed, NIMA, NCB are on going, EducationLaw's draft is completed, Law for private Schools arecompleted.70% of teachers pass competency test ( minimum of 40%women)At least 140,000 competent teachersIncrease Female teachers by 50%No. of competent principals (male and female) Under Assessment 26,000 school principalsPrimary Student/Teacher ratio 43 (2002) TBDGovernment Expenditure per student $12.1 (2002) TBDIndex on the progress of designing and conducting competency testfor students.Index on the progress of preparation and implementation of newcurriculum for primary and secondary schools.Index on the progress of establishment of separate body responsiblefor standards and accreditation of all primary and secondaryschools.Started in 13871-6 Class Book developed and7-12 Class under developingOn progress and WB is supportingthis partAdult Literacy rate 28% (2000) TBDTotal enrolment level (millions)5.9 million enrolled at schools(1386)Competency Test for students prepared and implemented.New curriculum for primary and secondary schools preparedand implemented.Established separate body responsible for standards andaccreditation of all primary and secondary schools.7.7 m children enrolled (1389)% of boys and girls enrolled. 35% and 35% respectively Enrolment Rates (Boys 75%, Girls 60%) (1389)No. of illiterates in the country (male and female) 11.2 million illiterate (1386) Separate program for non-formal education in placePrimary Completion Rate (Percentage of all children that completedprimary schooling)Percentage of children having access to schools 55%32.3% (2005) TBDTotal number of learning spaces (formal/informal) 7,027 (2002) TBDratio of boys and girls enrolledNo. of new school buildings constructed with basic amenities forboth male and female70% boys (2002)30% girls (2002)692 138675% of school-age children to be within reach of a schoolwith significantly reduced gender and provincial disparity50% eachAt least 90% schools and buildings have male and femalefacilities by 1389Afghanistan National Development Strategy (ANDS) 253

PILLAR: EDUCATIONSECTOR: EDUCATION AND MEDIA, CULTURE AND YOUTHExpected Outcomes Indicators Baseline TargetsIndex on the progress of providing equal opportunity for all foreducationestablishment of (1,200 newschools and 1,200 CBS)andconstruction of 692 newschools, recruitment of 149,000teachers (40,000 Female)Established and constructed new schools, recruitment ofteachers, especially female teachers.HIGHER EDUCATIONImproved quality of academicteaching and researchImproved access to higher educationVOCATIONAL EDUCATIONImproved quality of vocationaleducationImproved access to vocationaleducationSPORTSIndex on the progress of putting in place policies, institutions andsystems for improving quality of academic teaching and research.No. of faculty members benefited from such programsTo be determinedTo be determinedImproved quality of academic teaching and research by2013Capacity building of faculty members through partnershipprogramsNo. of degree or PG courses where curriculum has been revised To be determined New Curriculum for all courses in place by 1388No. of faculty members appointed (male and female)No. of students enrolled in the universities (male and female).No. of new facilities constructed at universities across the country.No. of new dormitories constructed for males.No. of new dormitories constructed for females.Index on the progress of improving the quality of higher education.Index on the progress of improving the quality of vocational education.Index on the progress of improving access to vocational education.No. of persons trained through NSDP (male and female))To be determined52200 enrolled male and female(1386)7 facilities constructed2 Female dormitories constructedTo be determinedTo be determinedTo be determinedImproved sports facilities Index on the progress to provide improved sports facilities. To be determinedSCIENCE ACADEMY3000 new faculty members to be recruited from the regionby 1389100,000 students enrolled in universities by 1389Construct 41 new facilities at universities across the country.Construction of 24 new dormitories (12 for women and12 for men)Quality of vocational Education will considerably beimproved (2013)Improved access to vocational education will be available(2013)The NSDP will provide training to 150,000 unemployedAfghan women and men through competitive biddingproceduresSport facilities will be improved in all provinces of Afghanistan(2013)254Afghanistan National Development Strategy (ANDS)

PILLAR: EDUCATIONSECTOR: EDUCATION AND MEDIA, CULTURE AND YOUTHExpected Outcomes Indicators Baseline TargetsEnhanced contribution of theAcademy in ScienceIndex on the progress to provide enhanced contribution of theAcademy in Science.To be determinedBy 1388 make the Academy competent enough to promotethe cause of sciencePILLAR: EDUCATIONSECTOR: MEDIA, CULTURE AND YOUTHExpected Outcomes Indicators Baseline Targets% completion of cultural heritage inventory/registration (1385) 41000 artifacts registered Inventory of Afghan cultural artifacts prepared by 2010Afghanistan’s cultural HeritageProtected and PreservedFree and independent mediaEmpowerment of Youth# of rehabilitated historical monuments(up to 1386) 1271 archeologicalsites# of rehabilitated/constructed museums 4 Reconstructed TBDIndex on progress of taking measures to revive the Afghancultural heritage, to stop the illegal removalIndex on progress of creating an environment for free andindependent media# of youths registered as volunteer corps for welfare activitieslike rural health care campaigns etc.# of youth clubs registeredIndex on the progress of providing legal, policy, institutionaland systemic framework for empowerment of youth.TBDMedia law is drafted, needsamendmentsTBD60 LYC (Local Youth Councils)established in 60 Villages of 6Provinces34925 both Male and female receivedtrainingAll historical monuments rehabilitated and protected by 2010Measures will be taken to revive the Afghan cultural heritage,to stop the illegal removal of cultural material and torestore damaged monuments and artifacts by end-2010Media Law to be passed and implemented by 2008TBDTBDLegal and Institutional framework for youth empowermentwill be in place (2013)PILLAR: HEALTHSECTOR: HEALTH & NUTRITIONExpected Outcomes Indicators Baseline TargetsIncreased quality of health careservicesNumber of functional public and private hospitals set upUnder AssessmentFunctional regulatory framework for quality healthservices in place by 2013No. of provinces where organized structure is in placeUnder AssessmentFunctional organization structure for quality healthservices in place by 2013Index on the progress of putting in place quality health care Under Assessment Increased quality of health care services will be avail-Afghanistan National Development Strategy (ANDS) 255

services able throughout Afghanistan by 2013Overall score on the Balanced Scorecard TBD TBDIncreased access to health care servicesEffective Reproductive and Childhealth system% of population within two hours walking distance fromPHC servicesNo. of health facilities, district, provincial and regionalhospitals equipped with standard package of defined clinicaland diagnostic servicesii) 66% - of population with nearbyaccess to PHCs (2006)Under Assessment90% of population with access to PHC services (2010)Comprehensive referral system integrated with BPHS& EPHS in place by 2013% of TB cases detected and treated 68% (2006) Increase of 12% from the baseline% of Malaria cases detected and using preventive treatment To be assessed Reduction by 60% from baseline% of children under 1 year having received measles antigen,DPT & hepatitis dosage and polio drops77%(2006)Achieve and sustain above 90% national coverage(2013).% of children under 1 year received measles antigen. 35% (2000) Achieve above 90% coverage by 2010.Maternal mortality ratio 1600 deaths /100,000 live births (2000) Reduce by 50% between 2002 and 2013Under 5 mortality rate in the country (%) 257 deaths/1000 live births (2000) Reduce by 50% between 2003 and 2013Infant mortality rate (IMR) in the country (%)165 deaths per 1000 live births(2000)Reduce infant mortality rate by 30% by 2013 from thebaseline of 2000PILLAR: AGRICULTURE & RURAL DEVELOPMENTSECTOR: AGRICULTURE & RURAL DEVELOPMENTExpected Outcomes Indicators Baseline TargetsImproved service deliverywithin the Agriculture & RuralDevelopment sectorIndex on the progress of improving service delivery within the sector.To be AssessedService Delivery will be improved within the Agriculture andRural Development sector (2013)Poverty Reduced in line withMDG targetsIndex on the progress of aligning ARD Programs to promote sustainablegrowth and distribute wealth through CRD# of provinces, districts, villages covered by NFSP# household beneficiaries covered by NFSP% reduction in malnourished populationTBD10 provinces, 20 districts,200 villages(2008)20,000 households(2008)57% reduction ofpopulation malnourished.(2008)ARD programs will be aligned to promote sustainable growth(2013)34 Provinces (2013)To be AssessedImproved Local Governance Index on the progress of strengthening local governance. TBD Local Governance will be strengthened (2013)TBD256Afghanistan National Development Strategy (ANDS)

PILLAR: AGRICULTURE & RURAL DEVELOPMENTSECTOR: AGRICULTURE & RURAL DEVELOPMENTExpected Outcomes Indicators Baseline Targets# CDCs established 16,502 (2007) TBD# CDPs completed 16,263 (2007) TBD# DDAs Established 256 (2007) TBD# DDPs incorporated into provincial plans # (2007) TBDIncreased Agriculture Productionand Productivity Improvedagriculture and ruralinfrastructureIndex on the progress of increasing agriculture production and productivity.# of increased irrigated areas# hectares with new water efficiency techniques ( 2008)TBD Increased Agriculture Productivity (2013)4500 hectares irrigated(2008)1,000 hectares arewater efficient (2008)# hectares with new mgt techniques 1400 hectares (2008) TBDIndex on the progress of improving agriculture and rural infrastructure. TBD Improved Agriculture and Rural Infrastructure (2013)# of increased irrigated areas4500 hectares irrigated(2008)% of villages having access to drinking water 100% (2013)# hectares with new water efficiency techniques1,000 hectares arewater efficient (2008)# hectares with new management techniques 1400 hectares (2008) TBD% of rural population have access improved sanitation facilities 3% (2007) 70% (2013)Km of rural roads constructed and rehabilitated 13,500 km (2007) To be assessed# Villages connected by road to the district centers or major service centers.% of rural population receiving income through participation in shorttermemployment generation activities (non-agrarian)TBDTBDTBDTBD4743 (2007) 56% of all villages (2013)15% (2007) TBD# of labor days generated 24.5m (2007) 110m (2013)# of villages benefiting from different sources of electricity 7665 (2007) TBD% of villages that will benefit from new/ rehabilitated small scale irrigationschemes36% (2007) 68% (2013)# (hectares) of New irrigated areas increase 1.5 ha (2007) TBDImproved water efficiency in existing irrigation 25% (2006) TBDAfghanistan National Development Strategy (ANDS) 257

PILLAR: AGRICULTURE & RURAL DEVELOPMENTSECTOR: AGRICULTURE & RURAL DEVELOPMENTExpected Outcomes Indicators Baseline TargetsFacilitated Economic RegenerationReduced poppy cultivationthrough Alternative LivelihoodIndex on the progress of facilitating economic regeneration.# of rural households receiving services from formal financial institutionsTBD219,000 (2007) 950,000 (2013)# of agri and non-agri-businesses established TBD TBD# of poor and vulnerable rural households supported through economicregeneration activitiesIndex on the progress of reducing poppy cultivation through alternativelivelihoods.TBDTBDBy end-2010, a policy and regulatory framework will be developedto support the establishment of small and medium rural enterprises,and institutional support will be established in all 34provinces to facilitate new entrepreneurial initiatives by ruralcommunities and organisationsTBDBy end-2010, decrease in the absolute and relative size of the drugeconomy in line with the Government's Millennium DevelopmentGoal targetPILLAR: SOCIAL PROTECTIONSECTOR: SOCIAL PROTECTIONExpected Outcomes Indicators Baseline TargetsPoverty and Vulnerability ReductionPercentage of people living on less than US$1 a dayTBDBy end-2011 and in line with the MDGs the proportion of peopleliving on less than US$1 a day will decrease by 3 percent peryear.Percentage of people living below the poverty line (basedon Spring data)42% (2007)By end-2012/13 the proportion of the people living below thepoverty line will decline by 2 percent on annual basis (based onSpring poverty data)Percentage of people who suffer from hungerTBDBy end-2010 proportion of people who suffer from hunger willdecrease by 5 percentPercentage of population below the minimum level ofdietary energy consumption45%By end-2012/13 the proportion of the population below the minimumlevel of dietary energy consumption will decrease by 2 percenton annual basisPercentage of poor female headed householdsTBDBy end-2010 number of female headed households that arechronically poor will be reduced by 20 percent and their employmentrate will increase by 20 percentPercentage of employed females that on the head of the TBD TBD258Afghanistan National Development Strategy (ANDS)

PILLAR: SOCIAL PROTECTIONSECTOR: SOCIAL PROTECTIONExpected Outcomes Indicators Baseline Targetspoor householdsReduction in infant mortalityImproved Social InclusionImproved old age protectionImproved disaster preparedness andresponseNumber of persons with disabilities received micro creditNumber of persons with disabilities received pensionNumber of people received trainingNumber Persons with Disabilities received Inclusive andExclusive Education ServicesNumber of Persons with Disabilities received PhysicalRehabilitation ServicesNumber of Persons with Disability received other servicesPercentage of underweight children in urban and rural;areasNumber of disabled that have gone trough skill developmentprogramNumber of women that have gone through skill developmentprogramPercentage of disabled in the public administrationTBDTBDTBDTBDTBDTBDTBDTBDTBDTBDBy end-2010 increased assistance will be provided to meet thespecial needs of all disabled people, including their integrationinto society through opportunities for education, skill developmentand gainful employmentBy end-2012/13 prevalence of underweight children in rural andurban areas will decrease by 2 percent on annual basisBy end-2010 provide training for 150 000 people of whichwomen should be 35 percent and disabled 10 percentTBDPercentage of women in the public administration TBD TBDNumber of treated drug usersPercentage of collected pension contribution of total pensionpaymentsNumber of the people affected by the natural disasterMonetary value of the destroyed assets as result of naturaldisasterTBD2%TBDTBDBy end-2012/13 the Government will employ at least 3 percent ofdisabled and 30 percent of women within its administrationBy end-2010 number of treated drug users will increase by 20percentBy 2012/13 implement the pension reform and increase collectionof the pension contributionsBy end-2010 an effective system of disaster preparedness andresponse will be in placeTBDAfghanistan National Development Strategy (ANDS) 259

PILLAR: SOCIAL PROTECTIONSECTOR: REFUGEES & IDPSExpected Outcomes Indicators Baselines TargetsRefugees and Internally DisplacedPersons (IDPs) returnvoluntarily according to agreedprinciples and proceduresGovernment’s capacity to manageand support return and reintegrationprograms is strengthenedImproved terms of stay and conditionsfor Afghans in neighboringcountriesBilateral agreements on temporarylabor migration progress# of returnees (male, female) 3 million refugees (Pakistan 2.1 million,Iran 900,000), 140,000 IDPs(estimated)The index on the progress of the process ofstrengthening government’s capacity tomanage and assist them# of tri-partite agreements signedNo measurable indicators currentlyavailable, existing capabilities arevaried but generally extremely limitedcountrywideTPA signed with Iran Feb 2007 forone yearTPA signed with Pakistan in Aug2007 for three years# of Bilateral Agreements Currently there are no bilateralagreements covering temporary labormigrationScenario OnePresent trend lines improve permitting 800,000 – 1 mill returnsScenario TwoCurrent trends continue permitting 600,000-800,000 returnsScenario ThreeCurrent trends deteriorate permitting 400,000-600,000 returnsBy 2010, the first phase of reform within the Ministry of Refugees and Repatriationshould have been completed and inter-ministerial mechanisms forreintegration assistance should have been established and operatingAgreement with Iran to be renewed annually during the period 2008-2013Agreement with Pakistan to be extended from 2009-2103Agreement reached with Iran on temporary labor migration by 2013,Agreement reached with Pakistan on management of cross border movementsby 2013PILLAR: ECONOMIC GOVERNANCE & PRIVATE SECTOR DEVELOPMENTSECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADEExpected Outcomes Indicators Baselines TargetsThe legal framework for the businesssector is developedPrivate sector access to finance isincreasedPublic-Private PartnershipsSurplus land is used by the privatesector to increase economic activityIndex on the progress of putting in place the legal, regulatory and facilitatingframework for the business sector.Index on the progress of providing increased access of finance to privatesector.10 draft commercial laws 4 laws passed by mid-1387Additional 6 laws passed by end-1388% increase in private sector investment TBD TBD% of GDP increase as investment levels increases TBD TBDIndex on the progress of putting in place an enabling environment forPublic-Private Partnerships. number of projects undertaken with PPPIndex on the progress of creating enabling environment for use of surplusland by the private sector to increase economic activity.TBDPPPs underway at the end of 1386Area of unused government land atthe end of 1386Number of providers increases by 25% byend-1389Number of PPPs increases by 100% by end-1390Area of additional government land used bythe private sector increases by minimum100ha per year260Afghanistan National Development Strategy (ANDS)

PILLAR: ECONOMIC GOVERNANCE & PRIVATE SECTOR DEVELOPMENTSECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADEExpected Outcomes Indicators Baselines TargetsRegulations are streamlined andbetter enforcedCivil society groups are able to operateeffectively to aid in the developmentprocess.Economic activity increases in responseto increased human capacityand skill setsIncreased provincial economicgrowthIncreased and more effective competitionThe Private Sector Development andTrade sector strategy is implementedIndex on the progress of putting in place legal, regulatory and facilitatingframework for registration and regulation of private sector.% increase in firms formalizing their operationsTBD80% of economic activity is in theinformal sector% increase in tax revenue from the increased number of formalized firms % of tax revenue from businesses TBDIndex on the progress of putting necessary legal, regulatory and facilitatingframeworks in place so that civil society groups are able to operateeffectively to aid in the development process.Number of NGOs and Civil Society organizations registered TBD TBDNumber of people employed in the private sectorIndex on the progress of promoting increased provincial economicgrowth.Index on the progress of putting in place a legal framework to facilitateincreased and more effective competitionIndex on the progress of implementation of the Private Sector Developmentand Trade Sector Strategies.TBDData for formal sector employmentat the end of 1386TBDTBD2008 World Bank data in DoingBusiness data IndicatorsTBD60% of economic activity is in the informalsector by the end of 1390TBDIncrease in formal sector employment of10% per annum in absolute numbersIncrease in number of courses by 50% by theend of 1389TBDTBDAfghanistan improves its overall DoingBusiness ranking by a minimum of fiveplaces each year60% of economic activity is in the informalsector by the end of 1390Afghanistan National Development Strategy (ANDS) 261

G:Islamic Republic of AfghanistanAfghanistan National DevelopmentStrategy SecretariatGul Khana Palace, (Sedarat)Kabul, Afghanistan