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Report on Progress Toward Security and Stability in - United States ...

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ASGP-II is a multi-d<strong>on</strong>or project that supports the Afghan Government <strong>in</strong> the area of subnati<strong>on</strong>al<br />

governance <strong>and</strong> state build<strong>in</strong>g at the nati<strong>on</strong>al, prov<strong>in</strong>cial, district, <strong>and</strong> municipal levels.<br />

The program is run by the UNDP with the Independent Directorate of Local Governance (IDLG)<br />

as the Afghan implement<strong>in</strong>g partner. The program was funded with $83.6 milli<strong>on</strong> provided by<br />

the European Community, Italy, Switzerl<strong>and</strong>, <strong>and</strong> the UK. ASGP II, however, has not been able<br />

to report any tangible results besides fund<strong>in</strong>g Nati<strong>on</strong>al Technical Assistance <strong>in</strong> the IDLG.<br />

The sec<strong>on</strong>d <strong>in</strong>stallment of the PBGF, a modificati<strong>on</strong> to the orig<strong>in</strong>al c<strong>on</strong>tractual agreement with<br />

The Asia Foundati<strong>on</strong>, was put <strong>in</strong>to effect <strong>on</strong> October 25, 2011. The PBGF is an 18-m<strong>on</strong>th<br />

program funded at $45.5M. The program is currently funded jo<strong>in</strong>tly by the <strong>United</strong> <strong>States</strong> <strong>and</strong> the<br />

<strong>United</strong> K<strong>in</strong>gdom. However, the <strong>United</strong> K<strong>in</strong>gdom is c<strong>on</strong>duct<strong>in</strong>g a review to determ<strong>in</strong>e its<br />

<strong>in</strong>volvement <strong>in</strong> PBGF after the end of the Afghan fiscal year (March 21, 2012). This program<br />

has provided each of the 34 Prov<strong>in</strong>cial Governors a budget of $25,000 per m<strong>on</strong>th to cover<br />

operati<strong>on</strong>al expenditures as well as fund small-scale community outreach projects. The PBGF II<br />

was planned to be exp<strong>and</strong>ed with a Prov<strong>in</strong>cial Councils Fund <strong>and</strong> f<strong>in</strong>ancial system pilot <strong>in</strong><br />

coord<strong>in</strong>ati<strong>on</strong> with the IDLG <strong>and</strong> MoF. However, due to limited fund<strong>in</strong>g, the sec<strong>on</strong>d <strong>and</strong> third<br />

comp<strong>on</strong>ents have yet to be implemented.<br />

The DDP is a governance <strong>and</strong> development program created to improve government presence<br />

<strong>and</strong> service-delivery capacity at the district level. The DPP covers 32 districts throughout<br />

Afghanistan. Partner<strong>in</strong>g with both the IDLG <strong>and</strong> MoF, the program is funded by the <strong>United</strong><br />

<strong>States</strong>, the <strong>United</strong> K<strong>in</strong>gdom, Denmark, <strong>and</strong> France, with variati<strong>on</strong>s <strong>on</strong> how it is implemented.<br />

U.S. fund<strong>in</strong>g for the program was suspended <strong>in</strong> July pend<strong>in</strong>g accountability of expenditures <strong>and</strong><br />

a request for IDLG <strong>and</strong> MoF to satisfy several additi<strong>on</strong>al agreed-up<strong>on</strong> c<strong>on</strong>diti<strong>on</strong>s. Restorati<strong>on</strong> of<br />

fund<strong>in</strong>g for the program is c<strong>on</strong>t<strong>in</strong>gent <strong>on</strong> the outcomes of an <strong>on</strong>go<strong>in</strong>g technical assessment, an<br />

upcom<strong>in</strong>g f<strong>in</strong>ancial audit, <strong>and</strong> discussi<strong>on</strong>s lead<strong>in</strong>g toward a renewed commitment for sufficient<br />

program implementati<strong>on</strong> from both the IDLG <strong>and</strong> MoF.<br />

Overall, sub-nati<strong>on</strong>al governance programs are a critical element to develop<strong>in</strong>g <strong>and</strong> improv<strong>in</strong>g<br />

the effective extensi<strong>on</strong> of governance from Kabul to the prov<strong>in</strong>cial, district, <strong>and</strong> village level<br />

throughout Afghanistan. The cumulative effect of these programs will improve the ability of the<br />

Afghan Government to resp<strong>on</strong>d to the needs of the local populati<strong>on</strong>, <strong>and</strong> <strong>in</strong>crease support for <strong>and</strong><br />

the credibility of the Afghan Government.<br />

SNG programs c<strong>on</strong>t<strong>in</strong>ue to face challenges, however, <strong>in</strong>clud<strong>in</strong>g fund<strong>in</strong>g, procedures, <strong>and</strong><br />

coord<strong>in</strong>ati<strong>on</strong> of activities to enhance governance <strong>in</strong> the medium <strong>and</strong> l<strong>on</strong>g term through capacity<br />

build<strong>in</strong>g at the sub-nati<strong>on</strong>al level. The practice of d<strong>on</strong>ors’ geographically ear-mark<strong>in</strong>g funds<br />

rema<strong>in</strong>s prevalent, caus<strong>in</strong>g spend<strong>in</strong>g to be highly uneven across prov<strong>in</strong>ces. Years of limited<br />

discreti<strong>on</strong>ary fund<strong>in</strong>g at the central government level <strong>and</strong> plentiful d<strong>on</strong>or fund<strong>in</strong>g at the<br />

prov<strong>in</strong>cial level has distorted the budget formulati<strong>on</strong> process. The operati<strong>on</strong>al <strong>and</strong> management<br />

(O&M) budget is not proporti<strong>on</strong>al to the development budget, <strong>and</strong> this imbalance is amplified by<br />

off-budget <strong>in</strong>frastructure projects that do not account for future O&M.<br />

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