Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

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