Afghanistan's Agenda for Action - Economic Growth - usaid

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Afghanistan’s Agenda for Action: Developing the Trade and Business Environment – August 2007FOREIGN DIRECT INVESTMENTNo. Type Recommendation Priority Duration1. Institutionaldevelopment andcapacity buildingSeparate the functions of policy-making and policy-implementing at every significant level ofgovernment. Merger creates distorted policy goals and the opportunity for corruption.High Mediumterm2. Institutionaldevelopment andcapacity building3. Institutionaldevelopment andcapacity building4. Institutionaldevelopment andcapacity building5. Education/Information sharing6. Institutionaldevelopment andcapacity buildingPare down membership in the High Commission on Investment (HCI). Medium MediumtermApply the Afghan telecom model to Afghan energy development. Medium Long termCreate incentives for sector self-sustainability and create a negative stigma to undue donorassistance. (Current perception is that “successful” ministries achieve higher rates of donorassistance annually than “unsuccessful” ones. This is a dependence-creating mechanism thatmust be stopped.)Publish an exclusive tax and fee schedule – with a persuasive implementing decree (fromthe president).Build a relevant Commercial Court by training experienced businessmen as jurists andlawyers while recognizing the potential aversion to a semi-secular court and thedisplacement of current jurists. This could serve as nucleus for the introduction ofWestern aspects of adjudication in other legal areas.HighMediumHighNear termNear termLong termINTERNATIONAL TRADENo. Type Recommendation Priority Duration1. Education and training A better program to satisfy information and training needs to be implemented with respect Medium Long termto trade policy issues; not only at the grass-roots level, but within the Afghan businesscommunity and mid-level government offices.2. Consensus building/Public- Privatepartnerships/ Training/WTO accessionsupportA WTO negotiation team needs to be formed, including both government officials (apartfrom the inter-ministerial task force) and members of the business community andchambers of commerce, to be trained in negotiation skills and English-language skills(particularly technical vocabulary in areas of business, commerce and economics), and tobe tasked with greater exchange of information across areas of technical expertise andacross ministry lines.High Mediumterm150
Afghanistan’s Agenda for Action: Developing the Trade and Business Environment – August 2007INTERNATIONAL TRADENo. Type Recommendation Priority Duration3. Legal reform The legal framework for trade needs to be considerably strengthened and brought to the Low Long termlevel of international standards: it is suggested, for example, that anti-dumping laws,countervailing duty laws, and laws supporting secured trade finance on imported andexported goods be studied and enacted as and when appropriate.4. Public-private Greater input from the business community needs to be elicited, and trade organizations High Long termpartnerships/Institutional capacitybuildingneed to be supported and strengthened. Better coordination and communication needs tobe established between the various NGOs and donor-sponsored organizations advising theAfghan government on trade matters.5. Legal reform Strengthen and update trade agreements with regional trade partners, as well as tradeagreements with other countries outside the region.High Mediumterm6. Institutionaldevelopment andcapacity buildingNominate a single ministry to have responsibility for facilitating trade negotiations andconcluding trade agreements, with the authority to demand allocation of resources andinformation from other ministries.MediumLong termFLOW OF GOODS AND SERVICESNo. Type Recommendation Priority Duration1. WTO accessionsupportArrange briefings by countries that have recently acceded to the WTO and WTO expertsto provide a common basis of understanding for Afghanistan’s accession process. This willcurb much of the misinformation about WTO Accession and allow for a more informeddialog. Additionally, a ministerial level committee should be established to provide impetusand overall guidance for the accession effort.High Near term2. Institutionaldevelopment andcapacity building3. Institutionaldevelopment andcapacity building4. Infrastructuredevelopment/Institutionaldevelopment andcapacity buildingRather than raise duty rates to raise revenues to meet IMF targets, rely on reduction ofsmuggling, corruption losses and the benefits of an efficient trade regime to increasecollections.Secure a high-level Customs subject matter expert to assist the ACD Commissioner andstaff in the reformation and modernization of Customs.Implement needed rail improvements and attempt to negotiate better treatment ofAfghanistan’s trucking industry in Pakistan.HighHighHighLong termLong termLong term5. Public-Private Create mechanism for consultation between trade community and agencies regarding new Medium Long term151
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Afghanistan's Agenda for Action - Economic Growth - usaid

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