SIGAR

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ECONOMIC AND SOCIAL DEVELOPMENT CONTENTS ECONOMIC CONTENTS Key Issues and Events 149 U.S. Reconstruction Funding for Economic and Social Development 150 Economic Profile 150 Banking and Finance 156 U.S. Economic and Development Support 162 Essential Services and Development 167 Economic Growth 174 Education 177 Health 180 148 SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION
ECONOMIC AND SOCIAL DEVELOPMENT ECONOMIC AND SOCIAL DEVELOPMENT KEY ISSUES AND EVENTS Afghanistan began Fiscal Year (FY) 1396, which runs from December 21, 2016, through December 20, 2017, without an approved budget. 568 The lower house of parliament twice rejected the draft budget submitted by the executive, arguing that project funds were not well balanced between provinces. 569 Parliament rejected a draft FY 1395 budget with the same critique. 570 On January 16, 2017, the parliament passed a AFN 429 billion budget (more than $6.4 billion in current dollars) on its third attempt with only 57% of lower house members participating in the vote. Domestic revenues are to pay for 38% of the budget with donor assistance covering the rest. 571 Domestic revenues collected in the first 11 months of FY 1395 rose 32.0% above the same period in the previous year, but still covered only about 46.4% of total government expenditures. 572 The World Bank projected Afghanistan’s real (net of inflation) gross domestic product (GDP), excluding opium, to grow 1.2% in 2016, marginally higher than 0.8% in 2015. 573 In contrast, Afghanistan’s FY 1395 (December 21, 2015 through December 20, 2016) budget estimated GDP growth at 4.4% and its target growth rate is 4.0% for the next three years. 574 Current economic growth remains far below what is necessary to increase employment and improve living standards, according to the IMF. 575 It is being outpaced by Afghanistan’s rapid population growth, estimated at 3% per year. As a result, per capita GDP is falling, employment opportunities are limited, and the budget is pressured. Afghanistan’s labor market is unable to absorb what the World Bank estimates are 400,000 people entering the work force every year. Nearly 23% of Afghanistan’s labor force was unemployed in 2013–2014, almost triple the level of the 2011–2012 years of the Coalition surge with its accompanying spending. 576 REPORT TO THE UNITED STATES CONGRESS I JANUARY 30, 2017 149
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SIGAR JAN Special Inspector General
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JOWZJAN BALKH KUNDUZ TAKHAR BADAKHS
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This quarter, SIGAR issued 13 audit
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EXECUTIVE SUMMARY • the abandonme
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TABLE OF CONTENTS SECTION 4 203 OTH
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1AFGHAN PROCUREMENT REFORM 1
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AFGHAN PROCUREMENT REFORM THE NEED
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AFGHAN PROCUREMENT REFORM from ente
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AFGHAN PROCUREMENT REFORM Conflict:
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AFGHAN PROCUREMENT REFORM that alth
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AFGHAN PROCUREMENT REFORM system fr
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AFGHAN PROCUREMENT REFORM identify
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AFGHAN PROCUREMENT REFORM THE STAKE
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2 SIGAR OVERSIGHT 17
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SIGAR OVERSIGHT ACTIVITIES SIGAR OV
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SIGAR OVERSIGHT ACTIVITIES on TFBSO
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SIGAR OVERSIGHT ACTIVITIES Performa
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SIGAR OVERSIGHT ACTIVITIES were pro
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SIGAR OVERSIGHT ACTIVITIES Financia
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SIGAR OVERSIGHT ACTIVITIES 1. Deter
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SIGAR OVERSIGHT ACTIVITIES is now t
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SIGAR OVERSIGHT ACTIVITIES Review L
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SIGAR OVERSIGHT ACTIVITIES indefini
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SIGAR OVERSIGHT ACTIVITIES their co
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SIGAR OVERSIGHT ACTIVITIES communit
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SIGAR OVERSIGHT ACTIVITIES advocate
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SIGAR OVERSIGHT ACTIVITIES remote o
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SIGAR OVERSIGHT ACTIVITIES The Cour
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SIGAR OVERSIGHT ACTIVITIES at both
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SIGAR OVERSIGHT ACTIVITIES restitut
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QUARTERLY HIGHLIGHT Louis M. Bailly
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SIGAR OVERSIGHT ACTIVITIES FIGURE 2
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QUARTERLY HIGHLIGHT Suspensions and
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QUARTERLY HIGHLIGHT appealed a susp
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SIGAR OVERSIGHT ACTIVITIES the Unit
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SIGAR OVERSIGHT ACTIVITIES identify
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3RECONSTRUCTION UPDATE 63
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RECONSTRUCTION UPDATE RECONSTRUCTIO
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RECONSTRUCTION UPDATE that project
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STATUS OF FUNDS STATUS OF FUNDS To
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STATUS OF FUNDS Security Forces Fun
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STATUS OF FUNDS Congress appropriat
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STATUS OF FUNDS ASFF BUDGET ACTIVIT
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STATUS OF FUNDS USAID INCLE State A
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DOD STATUS OF FUNDS CERP DOD DOD DR
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DOD STATUS OF FUNDS ESF USAID INTER
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STATUS OF FUNDS the United Kingdom
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SECURITY SECURITY KEY ISSUES AND EV
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SECURITY FIGURE 3.26 AVERAGE NUMBER
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SECURITY investigation concluded th
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SECURITY USFOR-A determined that
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SECURITY System for the ANA’s Nat
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SECURITY FIGURE 3.27 RS TRAIN, ADVI
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Page 109 and 110: SECURITY TABLE 3.8 ANDSF ASSIGNED F
Page 111 and 112: SECURITY function without Coalition
Page 113 and 114: SECURITY international scholarships
Page 115 and 116: SECURITY TABLE 3.10 COST OF U.S.-FU
Page 117 and 118: SECURITY Utility in Kabul ($314,325
Page 119 and 120: SECURITY An AAF specialist adjusts
Page 121 and 122: SECURITY According to USFOR-A, the
Page 123 and 124: SECURITY A Women’s Participation
Page 125 and 126: SECURITY announcement has provoked
Page 127 and 128: SECURITY as well as for civilians a
Page 129 and 130: GOVERNANCE GOVERNANCE KEY ISSUES AN
Page 131 and 132: GOVERNANCE U.S. RECONSTRUCTION FUND
Page 133 and 134: GOVERNANCE TABLE 3.14 USAID ON-BUDG
Page 135 and 136: GOVERNANCE the ARTF is the largest
Page 137 and 138: GOVERNANCE Of 59 conditions defined
Page 139 and 140: GOVERNANCE TABLE 3.15 USAID CAPACIT
Page 141 and 142: GOVERNANCE independent news and pub
Page 143 and 144: GOVERNANCE ministry of municipal af
Page 145 and 146: GOVERNANCE In January, the Wall Str
Page 147 and 148: GOVERNANCE TABLE 3.17 RULE OF LAW A
Page 149 and 150: GOVERNANCE ADALAT found in the cour
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Page 153 and 154: GOVERNANCE to the absence of design
Page 155 and 156: GOVERNANCE TABLE 3.18 USAID GENDER
Page 157: GOVERNANCE service is organized on
Page 161 and 162: ECONOMIC AND SOCIAL DEVELOPMENT Agr
Page 163 and 164: ECONOMIC AND SOCIAL DEVELOPMENT TAB
Page 165 and 166: ECONOMIC AND SOCIAL DEVELOPMENT $7.
Page 167 and 168: ECONOMIC AND SOCIAL DEVELOPMENT reg
Page 169 and 170: ECONOMIC AND SOCIAL DEVELOPMENT FIG
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Page 173 and 174: ECONOMIC AND SOCIAL DEVELOPMENT ins
Page 175 and 176: ECONOMIC AND SOCIAL DEVELOPMENT are
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Page 185 and 186: ECONOMIC AND SOCIAL DEVELOPMENT A s
Page 187 and 188: ECONOMIC AND SOCIAL DEVELOPMENT to
Page 193 and 194: ECONOMIC AND SOCIAL DEVELOPMENT wit
Page 195 and 196: COUNTERNARCOTICS COUNTERNARCOTICS K
Page 197 and 198: COUNTERNARCOTICS opium-poppy cultiv
Page 199 and 200: COUNTERNARCOTICS UNODC estimates th
Page 201 and 202: COUNTERNARCOTICS The program pays a
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Page 205 and 206: COUNTERNARCOTICS Community Based Ag
Page 207 and 208: COUNTERNARCOTICS activities include
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COUNTERNARCOTICS in 2016 at an addi
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COUNTERNARCOTICS TABLE 3.6 INTERDIC
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OTHER AGENCY OVERSIGHT CONTENTS OTH
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OTHER AGENCY OVERSIGHT COMPLETED OV
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OTHER AGENCY OVERSIGHT U.S. Departm
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OTHER AGENCY OVERSIGHT Audit of Afg
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OTHER AGENCY OVERSIGHT equipment su
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APPENDICES AND ENDNOTES CONTENTS Ap
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APPENDICES APPENDIX A CROSS-REFEREN
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APPENDICES TABLE A.1 (CONTINUED) CR
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APPENDICES TABLE A.2 CROSS-REFERENC
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APPENDICES APPENDIX B U.S. FUNDS FO
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APPENDICES APPENDIX C SIGAR WRITTEN
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APPENDICES Ongoing Financial Audits
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APPENDICES APPENDIX D SIGAR INVESTI
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APPENDICES TABLE D.1 SPECIAL ENTITY
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APPENDICES TABLE D.1 (CONTINUED) SP
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APPENDICES TABLE D.1 (CONTINUED) SP
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APPENDICES ACRONYM OR ABBREVIATION
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ENDNOTES 1. Transparency Internatio
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ENDNOTES 100. General John Nicholso
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ENDNOTES 226. RS, email to SIGAR, 1
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ENDNOTES 380. UNMAS, Afghan Civilia
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ENDNOTES 483. Voice of America, “
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ENDNOTES 596. SIGAR, analysis of MO
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ENDNOTES 698. USAID, OI, response t
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ENDNOTES 794. UN, Report of the Sec
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A worker looks down on an Afghan va
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SIGAR

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