LINKING GROWTH WITH POVERTY REDUCTION AND EMPLOYMENT CREATION

A growth strategy is the backbone of the ANDS. Poverty in Afghanistan is high by any standard.  Estimated poverty incidence ranges from 34 percent around harvest season to as much as 42 percent in the leaner season.  The unemployment rate hovers at around 40 percent. High annual average growth rates at 12 percent in the past few years likely have had positive impacts on reducing poverty and generating employment at the margins, which are undoubtedly hard to measure (see Poverty Profile chapter).  Afghanistan’s poverty and unemployment have the following key charac­teristics:

• High vulnerability: A significant number of Afghans are concentrated around the

High growth rates: GDP per capita nearly doubled from $147 in 1381 to $289 in 1385 (ex­cluding opium).  Nevertheless, GDP per capita is still one of the lowest in the world. Contin­ued high rates of growth will be essential to achieve further increases in average per-capita poverty line, especially among the rural population. The concentration around the poverty line implies that even small shocks could further increase national poverty fig­ures.

• Seasonality: National poverty has strong seasonality and uneven dispersion across the country.
• Working poor: Low salaries subject many unemployed to the risk of falling below the poverty line. The poor are concentrated primarily in the informal sector, which pays very low salaries and leaves them without job protection.

The high poverty and unemployment rates as well as their characteristics suggest that there is a need to sustain high growth rates in the me-dium-term (sustainability) and results of high growth should reduce poverty and generate employment (quality).

incomes.  Preliminary estimates of the elasticity of growth on poverty reduction suggest that there will be significant reductions in the pov­erty rate if growth remains strong in the next few years. These estimates suggest that the poverty rate could fall as much as 20 percent-

Afghanistan National Development Strategy (ANDS)

age points – from 42 percent of the population in 1386 to 22 percent in 1391.²⁶

Sustainable growth rates: High growth rates in the past few years were mainly supported by foreign assistance and related activities (e.g. construction).  Although GDP figures do not include the opium economy, this sector has nonetheless provided job opportunities and some degree of poverty reduction.  However, dependence on foreign assistance and the opium economy will not be sustainable in the medium-term.  A shift to private sector led economic growth will be crucial.

Quality growth rates: The results of high growth should achieve corresponding poverty reduction and employment generation. In this regard, identifying the best potential sources of growth is important.  For example, while agri­culture accounts for 27 percent of GDP (exclud­ing opium), about three quarters of labor force is employed in that sector.  As a sudden shift of labor force from agriculture to other sectors is unrealistic, an increase in agricultural produc­tivity is one of the best strategies to enable higher contributions from the agriculture sector to quality growth rates.

²⁶ Preliminary work done by World Bank, based on NRVA 2005 data. Elasticity of growth on poverty reduction calculated using Bourguinon’s method.

State of the economy and constraints to growth

Economic growth has been high but volatile. Between 1381 and 1385, (2002-06) the annual average growth rate was 11.7 percent, the high­est in the region.  The growth rate of industry and services were either constant or accelerat­ing, while agricultural growth has remained volatile (Figure 4.1).  Sectoral breakdowns show that while growth rates of industry and services were constant or accelerating, those of agriculture have experienced high volatility. Cereal production, which accounts for ap­proximately 75 percent of agricultural output, is susceptible to weather conditions.  In indus­tries, manufacturing and construction (heavily supported by reconstruction activities and for­eign assistance) contributed equally to growth. However, in manufacturing, ‘food, beverage and tobacco’ is dominant with few other sig­nificant categories.  Services, transportation, government services, and wholesale and retail trading also account for significant contribu­tions to economic growth rates.  This suggests that agriculture and its related sectors (manu­facturing of food, beverages and tobacco along with transportation, trade, and services) are currently the dominant activities in the econ­omy.

Figure 4.2. Contribution to growth rates

Macroeconomic Framework   

• o Increase interdiction efforts against medium and large drug traffickers and their sponsors;
• o Actors associated with the drug in­dustry who are discovered to hold powerful “legitimate” positions in government or private sector should be removed and prosecuted;
• o The government should focus on sensible rural development, instead of short-term alternative liveli­hoods programs;
• o The counter-narcotics dimension should be mainstreamed into de­velopment program.

• Improving macroeconomic policy man­agement and aid effectiveness: It is very important that macroeconomic policy for­mulation is transparent and avoids short-term ad-hoc measures.  Some strategies could include:

• o Further strengthening coordination among relevant line ministries. It is important that line ministries share the same view regarding the direc­tion of macroeconomic policy;
• o Continuing to enhance the budget process and the role of the budget as the central instrument for policy and reforms;
• o Maintaining macroeconomic stabil­ity and progressing toward fiscal sustainability together with pru­dent monetary policy will continue to be important.

In order to break the evolving informal equilib­rium, we must also ameliorate specific private sector investment constraints.  The results of World Bank’s investment climate assessment in 2005 show that more than half of respondents identify: (i) electricity; (ii) access to land;

(iii) corruption (discussed above); and

(iv) access to finance as major constraints to private investment.  As the increase in private investment is a key assumption to achieve high, sustainable and quality growth rates, the following specific strategies are suggested:³¹

• Electricity: Involve the private sector to expedite power generation and distribution projects in urban centers as well as in rural areas. Specific strategies include:

• o Developing the legal framework to permit and encourage power gen­eration and distribution by the pri­vate sector;
• o Accelerating the execution of prior­ity power generation initiatives;
• o Improving distribution system.
• • Access to land: Implement measures to facilitate access to land by clarifying prop­erty rights, simplifying procedures for the transfer of titles, and allowing for longer-term leases. Specific strategies include:
  • o Developing a strategy for industrial parks;
  • o Implementing improved and sim­plified procedures for transfer of privately owned land;
  • o Developing better legal frameworks for land registration and land adju­dication.
• • Access to finance: Strengthen the financial sector to increase access to credit and fi­nancial services, paying special attention to alleviating capacity constraints. Specific strategies include:
  • o Enacting an appropriate legal framework;
  • o Building capacity in the financial sector;
  • o Increasing the availability of finan­cial services in rural areas.

Scaling up of industrial parks is a possi­ble short-term solution: Although in the medium-term the Government should tackle the abovementioned issues, in the short-term

³¹ See the Government’s “Policy for Private Sector Growth and Development”, presented at the Enabling Environment Confer­ence, June 2007.

Macroeconomic Framework   

the government could work to “scale up” and maximizing the effectiveness of Industrial Parks. This could provide investors and entre­preneurs with 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 several potential exogenous shocks which could seri­ously affect growth projections. Shocks such as drought pose a serious threat to an economy dependant on agriculture.  Insecurity too can harm private sector development, investment, employment creation, and reconstruction ef­forts, which could have a negative impact on overall growth.  Finally, global economic con­ditions pose serious risks for the Afghan econ­omy. A precipitous rise in oil prices would hamper economic growth especially via the private sector.  Also possible slowdowns in the global economy and donor fatigue also pose risks.

Factors which may affect this macroeconomic framework in a positive or negative way, in­cluding: 

• The political situation: Presidential and parliamentary elections are scheduled to be held in 2009.  Successful and peaceful elec­tions provide confidence in political stabil­ity to the private sector and international community;
• Insecurity: Security costs can be as high as 15 percent of total revenues.32  Further in­security would add additional costs to companies’ operations and inhibit private investment; 
• Weather: Agriculture is directly affected by weather conditions. As the sector employs about 70 percent of the total labor force, variations in agricultural production have a significant impact on poverty and em­ployment.

FISCAL POLICY

Fiscal policy remains a key policy instrument for macroeconomic stability, and the budget is an important tool to implement the ANDS andprioritize public sector activities.  Prudent fiscal policy and effective budget planning and exe­cution will support sustained robust economic growth. Proper budget allocation enables the reconstruction of basic infrastructure, supports private sector development, improves overall economic efficiency and enhances the popula­tion’s standard of living, especially for the poor. Despite the increase in expenditures in absolute terms, the Government remains com­mitted to sound expenditure management and increased revenue mobilization, as well as en­suring fiscal sustainability. Fiscal prudence re­mains the underlying principle, which ensures macroeconomic stability and provides the gov­ernment some flexibility to respond to external shocks.

The Government continues efforts to increase revenues by improving revenue administration and enforcement and broadening the tax base. This will be essential for achieving fiscal sus­tainability, delivering priority development expenditures and a reduction in aid depend­ency. Without domestic revenue mobilization Afghanistan will remain heavily dependent on external support over the long-term.  The do­mestic revenue to GDP ratio is expected to reach 8.2 percent in 2007, which substantially exceeds the revenue target in the Afghanistan Compact for 2010.³³  Although domestic reve­nue is expected to reach 10.7 percent of GDP in 1391 (Figure 4.6), Afghanistan’s revenue-to-GDP ratio still is among the lowest in the world, requiring sustained commitment to pur­sue revenue reforms.  In the medium-term, a broad-based consumption tax will play an im­portant role in domestic revenue mobilization. In order to accomplish this, broadening the tax base, improvements in tax policy, administra­tion and enforcement will be implemented.  In this regard an immediate high priority for the Government is the enactment of the amend­ments to the income tax law by National As­sembly.  Progress in domestic revenue mobili­zation in coming years will enable the Gov­ernment to be less dependent on foreign assis­tance.  New tax measures will focus equally on improving the revenue intake, while simulta­neously reducing the cost of doing business, improving the country’s investment environ­ment and enhancing competitiveness.  

^{32 The Investment Climate in Afghanistan: Exploiting Opportuni­ties in an Uncertain Environment (World Bank, 2005).}

³³ In the Afghanistan Compact, revenues are projected to exceed 8 percent of GDP in 1389.

Core budget expenditures will remain constant at about 25 percent of GDP although the alloca­tion of various expenditures changes over time to align with the Government’s development priorities.  Throughout the projection period, while the share of operating expenditures de­creases, that of development expenditures in­creases. A considerable portion of expenditure goes to security, counter-narcotics, roads and social expenditures (i.e. education and health).

Figure 4.8. Domestic revenues versus operating expenditures

Fiscal sustainability is essential to ensure mac­roeconomic stability.  The operating budget balance (excluding grants) is projected to im­prove from a deficit of 4.4 percent of GDP in 1386 to a balanced budget 1391 (Figure 4.7). This requires that the donor grants to the oper­ating budget (e.g. Afghanistan Reconstruction Trust Fund) will free up domestic revenues for key development expenditures after 1391.

Two key fiscal policy challenges are on the ho­rizon: the integration of the external budget into the core budget, and improvement of the absorption capacity of line ministries.  Cur­rently, more than two thirds of foreign assis­tance does not go through the Government’s treasury account, and thus information regard­ing these expenditures is often partial and dif­ficult to obtain.  This impedes the Government in its attempts to allocate scarce financial re­sources in line with its priorities and develop­ment objectives. Donors can greatly help by providing more information and/or shifting from the external budget to the core budget; the Government can also improve the situation by articulating clearer priorities – which should be achieved through the ANDS itself.  In the past few years, the government has spent less than available financial resources, resulting in de­layed investments needed for development. Improving the absorption capacity of the Gov­ernment, therefore, will continue to be impor­tant.

Prudent debt management will continue to be essential as Afghanistan moves towards fiscal sustainability.  As a supplement to donor funds the country expects to continue to use limited amounts of debt to finance specific projects and various program requirements.  It is expected that any debt received will carry terms that are below market in nature as this is a requirement under Afghanistan’s current agreements with various international financial institutions and the Paris Club group of creditors. Debt sus­tainability in future periods is an important goal for the Government to achieve and will continue to be a guiding principle governing the country’s use of debt in the coming years.

MONETARY POLICY

Consistent with DAB’s medium to long-term strategic objectives in conducting monetary

Afghanistan National Development Strategy (ANDS)

policy, it will remain vigilant against inflation. The main goal is to maintain core inflation at single digit levels, preferably between 2.5 to 4 percent, although this will continue to be a great challenge.³⁵

Nominal exchange rates are expected to remain constant at around Afs 50 against US dollar. Stable exchange rates will contribute to contain inflationary pressure from imported products as well as provide predictability to the private sector.  Nevertheless, stable nominal exchange rates imply the appreciation of the real ex­change rates.  In the short-term, the impacts on the appreciation of the real exchange rates would not significantly hurt competitiveness as other costs associated with security and elec­tricity seem bigger than the negative impacts on the exchange rate appreciation.  However, the Government will keep its eyes on the im­pact of real exchange rate appreciation for competitiveness in the medium-term.

Access to finance is one of the most severe con­straints to the private sector development. High interest rates, caused by high inflation rates and a high risk premium will threaten the financial sustainability of the private sector. Such high interest rates could jeopardize the growth of the nascent financial sector in the country. In the medium to long term, prudent monetary policy together with a disciplined fiscal policy will contribute to a reduction in the risk premium. Effective financial interme­diation and macroeconomic stability will even­tually bring down real interest rates in the long run as prospects for long term stability im­prove. The central bank will closely monitor the monetary developments and ensuing li­quidity situation along with developments in interest rates and credit markets and will react appropriately to these developments.

To achieve price stability, DAB intends to ex­pand the menu of instruments that have not yet been fully utilized in directing monetary pol­icy. The Central Bank currently relies on for­eign exchange auctions as the most dominant tool to maintain price stability and reduce ex­change rate volatility. The use of other tools of

³⁵ Note, the recent rapid increase in global prices could poten­tially create a challenge for the Government and DAB to main­tain core 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.  Other monetary policy tools, such as short-term inter­est rates and discount rates, have not yet been introduced due to the lack of a market for such securities.

DAB will issue capital notes with various ma­turity periods and create a secondary market for trading of these notes.  The more capital notes are traded in secondary markets, the more the need for foreign exchange auctions will be diminished.  Overall, by creating a capi­tal market and a strategic repositioning of monetary policy tools through gradual transi­tioning from foreign exchange auctions to util­izing other tools of the monetary policy, DAB’s room for maneuverability will expand.

Banking system

Through its regulatory mandate, DAB is com­mitted to help banking institutions to manage the risks involved in their operations. Pursuant to Paragraph 2 of Article 2, and other articles stipulated in the DAB law, the central bank is in charge of supervising all depository financial institutions that are legally authorized to take deposits from the public on a continual basis. DAB will continue to supervise banks’ lending practices and encourage transparency and ac­countability in the entirety of their financial transactions, in order to avoid bank failures which can negatively impact the economy.

DAB will strive to encourage financial institu­tions to actively take part in economic devel­opments by granting short-term, medium-term and long-term credits to small and medium enterprises (SMEs), owners of factories and construction companies and to start mortgage lending to commercial and residential custom­ers.  Consumer lending should also become available to the citizens of this country.  To do so, DAB needs to remove any prevailing obsta­cles and unnecessary legal constraints by draft­ing required laws and regulations and submit­ting them for approval to the National Assem­bly as quickly as is practicable.  Fortunately, DAB has already taken significant steps in drafting four laws which will facilitate me­dium- to long-term lending in the country.

External sector

Exports are unlikely to increase substantially from the current very low base. Afghanistan’s exports are currently dominated by low value-added agricultural exports and carpets. Scaling up the export base would require significant FDI (Foreign Direct Investment) inflows. Under the current situation, FDI is concentrated in the telecommunications sector and the financial sector, which are not export-oriented indus­tries. Large scale exploitation of copper, natural gas, petroleum and precious minerals will help in the medium and long term, although in­vestments in this sector are relatively lumpy.

The Current Account Balance, excluding the re­export of goods, is likely to decline over the projected phase. This is largely due to an an­ticipated decline in the imports-to-GDP ratio, particularly for manufacturing consumed goods. In the outer years, local products and services are expected to become a more signifi­cant factor in Afghanistan’s economy.

FINANCING THE ANDS

The Government has determined sectoral budget ceilings that reflect priorities estab­lished in the ANDS (see Table 4.9).  This re­flects the Ministry of Finance’s adoption of a system of program-based budgeting that is de­signed to achieve the country’s development needs. It is based on levels of domestic and donor financing in previous years and projec­tions for future revenues.

This process is an integral part of the Govern­ment’s Medium-Term Fiscal Framework (MTFF) and the preparation of the budget. From 1387 (2008/09) onward the MTFF and the budget will be based on the prioritization es­tablished in the ANDS and the utilization of resources for the implementation of ANDS through the budget.

These sectoral expenditure ceilings reflect the fact that security will remain the highest prior­ity.  Over the lifetime of the ANDS, security spending is expected to total $14.2 billion.  The funding for this sector is expected to come pri­marily through international assistance.  The Government estimates that in future years, the need for security assistance will decrease as the threat declines.  However, given the uncertain nature of the instability facing Afghanistan, the Government envisions the possibility of poten­tially significant revisions to the financing en­velope for the security sector.

³⁶ The level of expenditure in Table 4.9 is based on an assumption regarding the amount of financing which will be made available at the forthcoming ANDS donor conference in Paris. The macroeconomic framework which currently underpins the ANDS does not assume a similar scaling-up of donor assistance and is therefore not entirely consistent with Table 4.8.  Following the donor conference, the macro­economic framework and the ANDS expenditure ceilings will be updated to reflect the actual level of donor assistance.

Afghanistan National Development Strategy (ANDS)

In the short term, the Government will focus its public expenditure programs on investments in infrastructure, agriculture and rural develop­ment in recognition of the high importance of these sectors for the development of the private sector and for employment growth.  Over the lifetime of the ANDS, the Government will fo­cus progressively more resources on education, governance, health, and social protection.  The Government commits to allocating sufficient resources to the key priorities of strengthening economic governance and improving the ena­bling environment for private sector develop­ment.

CONCLUSION

For Afghanistan to become a peaceful and prosperous country able to provide its people with an acceptable standard of living, it has to build a strong economic foundation that will support long term and broad-based economic growth with the private sector as its engine. With sound macroeconomic policies under­taken during the last five years, per capita in­come nearly doubled.  For the poverty reduc­tion goals of the ANDS to be achieved, compa­rable levels of economic growth will be needed in comings years. This will require a conducive environment for social and economic develop­ment, which in turn depends on the continued maintenance of sound and stable macroeco­nomic policies to enable the private sector to establish itself as a vigorous engine of growth and employment creation.

A key strategic objective of the ANDS is to es­tablish a secure economic environment in which it will be possible to attract sufficient levels of private sector investments that will lead to the increased employment of human, financial and natural resources in more produc­tive ways. A critical element in achieving this objective will be to substantially increase in­vestment in capacity development and creating a skilled workforce in order to expand em­ployment opportunities and increase incomes.  

Average economic growth is projected at an 8.1 percent rate for 1387-1391.  A key assumption underlying this ambitious goal is an increasing share of total investment will come from the private sector.  To reach these goals, the Gov­ernment will continue to maintain strong mac­roeconomic management characterized by fis­cal sustainability, prudent monetary policies, and the avoidance of short-term ad hoc meas­ures.  

The ability to implement the projects and pro­grams included in the ANDS depends upon the resources that will be available.  In this regard, a major contribution of the ANDS has been the determination of budget ceilings that reflect the Government’s sectoral priorities.  These are being built into the MTFF and the Ministry of Finance’s program-based budgeting system focused on achieving the country’s develop­ment needs. Security will remain the Govern­ment’s highest priority, while the public ex­penditure programs for investments in energy, water and irrigation, transportation infrastruc­ture, agriculture, agro-based industry, and ru­ral development will remain high priorities, acknowledging the high importance of these sectors for the development of the private sec­tor and for long term and sustainable employ­ment growth.  In the coming years the Gov­ernment will also devote progressively more resources on education, governance, health, and social protection.

SECURITY

Security in all parts of the country is essential for economic growth and poverty reduction. The ANDS long term strategic vision for the Security sector is to ensure security of state, persons and assets through the provision of a costed, integrated and sustainable national se­curity infrastructure and law and order policy. The Government has developed the National Security Policy to be implemented through the Security Sector Reform (SSR) program.  This will strengthen and improve coordination among the Afghan National Security Forces (ANSF), ISAF/NATO, CSTC-A.  While contin­ued international support is vital, the Govern­ment aims to assume an increasing share of the security burden – the Afghanization of the country’s security activities.  However, Af­ghanistan still faces a number of serious chal­lenges before it can assume full responsibility for its own security.  Terrorism, instability and weak capacity of governance are preventing the Government from establishing effective control in some areas, particularly in the south and south-east.  The large-scale production of narcotics continues to provide funds to these groups. Unexploded ordinance remain a sig­nificant threat, with some five thousand citi­zens either killed or wounded in mine explo­sions since 1380 (2001).  Currently only two of the country’s 34 provinces are completely clear of land mines.

The “Afghanization” of the country’s security will require: (i) comprehensive security sector reform; (ii) a new division of  labor between the international security forces and the Afghan National Army (ANA); (iii) a reassessment of the design, composition and size of the army;

(iv) accelerated training for the officers; and (v) an intensified national recruitment drive.

CURRENT SITUATION

Afghanistan currently faces a whole range of security threats.  To counter these threats and ensure national interests the Government plans to strengthen the military, economic and politi­cal ties with its regional and international part­ners.  The security objectives are aimed at pro­tecting the country’s independence, establish­ing a democratic and economically stable soci­ety, free of corruption.  Implementing devel­opment policies outlined in ANDS can only be possible if there is peace and security in the country because security and sustainable de­velopment inevitably go hand in hand.

NATO is currently the major force through which the International Community is provid­ing security assistance to Afghanistan with the International Security Assistance Force (ISAF) in cooperation with the Afghan Government. The Government aims to secure stronger com­mitments from NATO whilst building the ca­pacity of Afghanistan’s national armed and other security forces.  The Government is intent on building administrative capacity, investing in human resources development and justice sector, and spurring private sector develop­ment to help improve Afghanistan’s internal situation.  An educated and prosperous society is less likely to be influenced by concepts spread by extremist elements. A strong Na­tional Security Structure will facilitate devel­opment of Afghanistan’s economy, social fabric and thus will enhance national unity and peaceful coexistence.

Terrorism and illegally armed groups

The major challenges to stability are terrorism-related, due to the revival of the Taliban in the south and southeast. The Government’s secu­rity forces and their international partners will focus on fighting terrorism, illegally armed

Security

53

groups and neutralizing armed elements oper­ating along the borders. Given that many of these groups receive support from foreign sources, both regional cooperation and diplo­matic initiatives are vital. To defeat terrorism, new strategies attuned with political objectives of the Government are being adopted, such as strengthening the effectiveness of ISAF and Coalition Forces assistance.  This includes spe­cial attention to building the professional capa­bilities of Afghan security forces designed to defeat terrorism and to render assistance to victims of war and avoid civilian casualties. The government aims at strengthening its ownership over law enforcement to effectively overcome internal security problems. Further­more, combating criminal activity and in­creased narcotics production are integrated components of the security strategy.

Countering a terror-dominated Taliban and illegally armed groups is an extremely complex form of warfare.  In many ways it is a competi­tion for the support of the population.  The ac­tive support of the Afghan people is vital to success.  This demands a firm political will and substantial persistence by the Government and the Afghan people, and unwavering long term commitment and patience from the interna­tional community.  Government legitimacy is a pre-requisite if we are to isolate the Taliban. The Government’s support and legitimacy will increase only if we can assure the security of the people and provide them with the basic necessities of life: food, water, shelter, health-care and the means to make a living.  The use of excessive force in operations should be avoided, targets should be accurately identi­fied, and collateral damage and especially casualties among civilians be avoided as much as possible.

Narcotics

Poppy cultivation and production of narcotics poses a serious challenge to Afghanistan’s se­curity.  The high level corruption that enables the narcotics industry to thrive endangers for­eign assistance to development.  Huge reve­nues from opium and production of narcotics have drawn in terrorist elements, organized-crime groups and extremists.  Revenues from opium and drug trafficking is also a consider­able source of funding to remnants of illegal armed groups.  The Government’s strategy co­ordinates international efforts with Govern­ment plans and addresses issues such as the development of economic infrastructure, de­mand reduction, poppy eradication, countering drug trafficking and establishing alternative livelihood programs. As the police are re­formed and the judicial system strengthened, a major effort will be made to reduce corruption, better policing officials involved in cultivation and interfering with eradication efforts.

Illegal Armed Groups

Wars and violence have turned Afghanistan into a fully armed society where people use guns to earn a living or to control resources. Illegally armed groups pose a direct threat to national security.  The long-term presence of illegal armed groups in different parts of the country is obstructing Government control, hindering development of local democratic institutions and posing a serious threat to na­tional unity.  They are obstacles to the rule of law and stand in the way of social and eco­nomic development. Many commanders of illegal armed groups have close links with po­lice or even belong to local governments.  This situation enhances corruption and is consid­ered a key obstacle in cracking down on the narcotics industry.  Unless the Government is able to provide adequate security with police presence in every village and district, people will feel the need to keep guns for self-protection. People are now required to have a license to carry arms and this law needs to be enforced 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 ille­gal armed groups. The existence of arms and ammunition caches and mines in different parts of Afghanistan also pose a threat, because opponents of the government can use them for terrorist operations. The government –in coop­eration with international organizations – is trying to garner support from local communi­ties to get rid of these arms caches.

Mines and Explosive Remnants of War (ERW)

Mines and other ERWs are major obstacles to infrastructure and economic reconstruction. The benchmark for locating and destroying all

Afghanistan National Development Strategy (ANDS)

stockpiles of anti-personnel mines was reached in 1386 (October 2007).  However the existence of mines and explosives still pose a threat to the lives of four million Afghans.  Only two provinces have been completely cleared of mines.  Statistics have shown that about 5,000 Afghans have been either killed or wounded in mine explosions since 1380 (2001). Unknown arms and ammunition caches and mines in dif­ferent parts of Afghanistan pose an additional threat because opponents of the Government can use these for terrorist operations.

POLICY FRAMEWORK

The National Security Policy is drafted for a period of five years and reviewed annually. The policy contains two interrelated strategies: National Security Strategy and Security Sector Reforms Strategy. 

The Security Sector Reforms Strategy estab­lishes a mechanism to regulate relations be­tween ministries and departments to ensure effective coordination. The policy encompasses the functions of other government departments including the legislative, judiciary and law en­forcement. The reforms establish responsibili­ties and coordination in the security sector for implementation of programs and give guide­lines for planning, prioritization, assessment of resources, and operations. Sustained financial support is needed to avoid compromising ei­ther development or security objectives. The OECD DAC Implementation-Framework for Security Sector Reform provides a useful framework for increasing national ownership and laying out the core elements of a ‘right­financing’ framework.37

The Government is committed to addressing the following strategic benchmarks to achieve the security sector strategic vision:

• The Afghan National Army: (i) Through Jaddi 1389 (end-2010), with the support of and in close coordination with the gov­ernment, the NATO-led ISAF, Operation Enduring Freedom (OEF) and their respec­tive Provincial Reconstruction Teams (PRTs) will promote security and stability in all regions of Afghanistan, including by strengthening Afghan capabilities. (ii) By Jaddi 1389, (end-2010): the Government will establish a nationally respected, pro­fessional, ethnically balanced ANA that is accountable, organized, trained and well equipped to meet the security needs of the country.  It will be increasingly funded from Government revenue, commensurate with the nation’s economic capacity.  Sup­port will continue to be provided to ex­pand the ANA towards a ceiling of 80,000 personnel with additional 6,000 personnel, including trainers.  The pace of this expan­sion will be adjusted on the basis of peri­odic joint quality assessments by the Gov­ernment and the international community against agreed criteria which take into ac­count prevailing conditions.

• The Afghan National Police: By Jaddi 1389 (end-2010) a fully constituted, professional, functional and ethnically balanced Afghan National Police and Afghan Border Police with a combined force of up to 82,180 will be able to effectively meet the security needs of the country and will be increas­ingly fiscally sustainable.
• DIAG: All illegal armed groups will dis­banded by 20 March 2011 in all provinces. Approximately 2,000 illegal armed groups have been identified. Nearly 300 are now fully or partially disbanded and 1200 more are engaged to cooperate with DIAG.
• Removing Unexploded Ordnance: By Jaddi 1389 (end-2010), in line with Af­ghanistan MDGs, the land area contami­nated by mines and unexploded ordnance will be reduced by 70%; and by end-2010 all unsafe, unserviceable, and surplus am­munition will be destroyed. The goal is to clear 90% of all known mine/ERW con­taminated areas by 1391 (2012). The goal furthermore is to clear all emplaced anti­personnel mines by 1391 (1 March 2013) ac­cording to the Ottawa Convention. A ca­pacity to remove mines and ERWs beyond the 2013 MAPA transition deadline proba­bly will be needed.
• Counter-Narcotics: By 2013, the area under poppy cultivation will be reduced by half compared to 2007 levels.  

The security sector expected outcomes are:

• Effectively coordinated security sector, where decisions and plans are timely made and implemented and external and internal

³⁷ See http://www.oecd.org/dataoecd/43/25/38406485.pdf

Security

threats are  deterred, contained or elimi­nated;

• ANA and ANP operationally capable of performing those missions and tasks as­signed;
• ANP and ABP expenditures are fiscally sustainable;
• Citizens have an enhanced level of justice with the help of Police and the Army; 
• Narcotics industry is reduced in line with counter-narcotics national strategy; 
• Reduction of corruption in the ANA, ANP and amongst other government officials; 
• Reduced level of deaths and casualties caused by UXOs, reduce the number of af­fected communities and increased safety precautions;
• Enhanced public trust on government abil­ity to deliver justice and security as ille­gally armed groups are disbanded and re­integrated; and
• Eventual eradication of Poppy Production and crack down on drug trafficking.

SECURITY INSTITUTIONS

Afghanistan’s security sector includes a num­ber of institutions responsible for maintaining security and enforcing laws. Increased capacity and improved coordination is necessary to achieve the strategic objectives for this sector. 

The security sector includes ministries, de­partments and institutions that are responsible for enforcing security and laws to protect the Government and the Afghan people.  These include 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, Afghan National Police (ANP), Presidential Guard, Par­liamentary Commissions on Security and Monitoring, Public Audit and Evaluation Of­fices, justice and judicial institutions, Ministry of Justice, Prosecution Departments and the Human Rights Commission.  To improve pro­fessional capabilities of the security institutions their duties and responsibilities need to be co­ordinated.  This will guarantee appropriate regulations, set priorities in policy making, help forecasting financial expenses and ensure correct allocation of funds. 

National Security Council

The National Security Council is the highest institution for identifying and addressing na­tional security issues.  The Council, led by the President, is responsible for developing strate­gies and policies, determining priorities, and is responsible for the oversight and coordination of the security sector and institutions.  The Na­tional Security Advisor identifies the needs and requirements of the sector and leads the Policy Action Group (PAG) which has been estab­lished as an emergency response mechanism to address the deteriorating security conditions in the six southern provinces. The PAG directs and coordinates security, development work, reconstruction and strategic relations across all functional areas of the Government and the International Community (both civilian and military).

Ministry of Defense (MoD), and the Afghan National Army (ANA)

MoD is responsible for establishing and main­taining peace and security.  The Minister of Defense is a civilian with the ministry being non-political and non-partisan.  MoD stands ready to provide support to the MoI, which is responsible for border control in emergency situations.  Reforms and capacity building ini­tiatives are in process to make the MoD more transparent and accountable with a strong ad­ministration and internal discipline.  The MoD is developing an ethnically balanced, non­political army with a single military doctrine and operational capabilities. Education, train­ing and equipping the national army to create a professional army with strong operational ca­pability to fight terrorism and armed groups are top priorities.  The MoD must ensure that all military units under its command observe and respect Islamic religion and Afghan values. MoD’s primary responsibilities include:

• National defense against foreign military aggression;
• Fighting illegally armed groups and terror­ism, and help establish the rule of law;
• Deter wars and ensure stability to secure national interests;
• Play an active part to solve crisis and con­trol emergency situations;
• Render assistance to civilian officials to control any emerging security crisis, natu­ral disasters and emergency situations;

Afghanistan National Development Strategy (ANDS)

• Protect and expand Afghanistan’s national interests; and
• Support the National and Border Police to curb organized crime.

To achieve these goals, the MoD has estab­lished the ANA.

The National Army (ANA)

The National Army is responsible for protect­ing Afghanistan’s territorial integrity, uphold­ing and protecting the Constitution, defending national interests and the Islamic religion, and establishing a favorable environment for public welfare and progress.  The National Army, led by civilian leadership and supported by the National Police, has a mandate to improve in­ternal security.  It also plays a role to boost re­gional security through military cooperation with ISAF and regional and international allies. A reassessment of the design, composition and size of the ANA has led to intensified national recruitment drive and training. 

Following a presidential decree to establish a National Army in 2003 the Ministry of Defense and the Afghan National Army have achieved considerable progress. The ministry is respon­sible for maintaining professional cadres to design appropriate policies, manage the ANA and defense institutions, and establish neces­sary coordination among security institutions and international partners.  The quality and quantity of the ANA is rapidly growing, and will continue to grow until the army is capable of maintaining the stability of the country, de­fending its sovereignty, and contributing to regional security.  The National Army has a mandate to assist the civilian administration and police whenever needed.  If instructed by the National Security Council, the ANA will cooperate with the National Police, Anti-Disasters Department, Afghan Red Crescent Society and other civilian charity organizations to tackle emergency situations requiring disas­ter response and humanitarian assistance.

Ministry of Internal Affairs (MoI), and the Afghan National Police (ANP)

The Ministry of Internal Affairs is responsible for ensuring internal security, establishing the rule of law, justice and protecting the country’s international borders.  MoI’s responsibilities with regard to security are to ensure internal security and fight criminal activity.  High prior­ity activities include:

• Crack down on organized and interna­tional crimes including drugs and human trafficking; fight terrorism and other na­tional security threats in cooperation with MoD, ANA, ISAF and Coalition forces;
• Establish a border police force to control cross-border movements and assist with collection of customs revenues in coopera­tion with MoD, ANA and Ministry of Fi­nance (MoF);
• Enforce justice by detecting crimes, carry out investigations, and promptly handover suspects to the judicial authorities without delay in accordance with the law;
• Provide witness protection and support to victims of crime and establish detention centers;
• Implement the DIAG program: Collect un­registered arms in cooperation with other security departments and implement and enforce new regulations regarding private security companies.

The National Police (ANP)

The Police are undergoing reforms aimed en­hancing efficiency by improving police training and education, upgrading staff and equipping the department adequately. The current MoI Tashkeel allows for 82,180 uniformed person­nel in the ANP.  Police capacities have been increasing with extensive help from donors that has led to the expansion of government control to provinces. However, there is a need to accelerate recruitment, education and train­ing programs to ensure not only professional performance but also to improve the reputation of the ANP.  Ensuring quality police perform­ance and accountability of police and the MoI is the key to stabilization of the society and gain­ing popular support for the Government.

The Border Police (BP) are responsible for bor­der control, in cooperation with customs offi­cials.  The BP establish check points to monitor crossings, particularly in areas with suspected terrorist activity, and are responsible for pre­venting human trafficking, and drug smug­gling. The Counter-Narcotics Police of Af­ghanistan (CNPA) has been especially estab­lished to work on drug related crimes.

Security

Significant steps have been taken since 2001 to revamp and train the Afghan National Army and the Afghan National Police.  Police capaci­ties have been increasing with extensive help from the international community.  Large mili­tias have been integrated into the Ministry of Defense, with the majority demobilized.  A multi-sector donor support scheme has been established where individual donors are allo­cated responsibility for overseeing support for each of the key elements of the reform, includ­ing: disarmament, demobilization, and reinte­gration of ex-combatants; military reform; po­lice reform; judicial reform; and counter-narcotics.

National Directorate of Security (NDS)

The National Directorate of Security is respon­sible for lending support to the military and police in fighting terrorism, anti-government elements and narcotics. NDS fulfill its duties by collecting and analyzing information and offering specific recommendations on security. The Directorate is designed to help improve effectiveness of operations carried out by na­tional security agencies. NDS also shares in­formation and cooperates with international security organizations stationed in Afghani­stan.  NDS is non-political institutions with merit based promotion system. 

Ministry of Foreign Affairs (MoFA)

The Ministry of Foreign Affairs is responsible for organizing and following Afghanistan’s relations with other countries and international organizations.  It is mandated to:

• Establish cordial international relations based on sovereignty and mutual trust;
• Set foreign policy objectives in line with national military strategies and activities of the National Army and border police;
• Support and promote international peace and welfare by upholding and implement­ing international laws, conventions and na­tional development strategies ;
• Support development and encourage in­vestment in Afghanistan and promote trade;
• Promote regional peace and prosperity, adopt active diplomacy to achieve regional

stability and support economic programs that help in securing national interests;

• Support and promote bilateral and multi­lateral economic initiatives with neighbors to secure national interests.

Ministry of Counter Narcotics (MCN)

The Ministry of Counter Narcotics is responsi­ble for the implementation of the National Drug Control Strategy (NDCS).  The MCN’s policies are designed to address: (i) develop­ment of projects to provide alternative liveli­hood opportunities in districts where poppy is grown; (ii) programs to reduce demand for drugs including addiction treatment facilities in affected provinces; (iii) development of effec­tive mechanisms to deal with drug-related crimes; and (iv) media and public awareness campaigns to discourage people from growing poppy and producing narcotics; and (v) poppy eradication programs..

‘RIGHT-FINANCING’ SECURITY SECTOR REFORM

Fiscal sustainability is essential for a sound and stable security forces.  Given the limitations of the National Budget at present, additional time is needed before security sector expenditures can be included in the ordinary budget.  The security sector must therefore rely on contin­ued assistance from Afghanistan’s international allies.  Limited internal revenue will inevitably force the Government to make some very tough decisions when it comes to security sec­tor spending.  The Government supports the development of a ‘Right-financing’ approach to the security sector, within which to strike an appropriate balance between current security needs and the goal of building a fiscally sus­tainable security sector based on realistic re­source projections.

Afghanistan has no wish to be a burden on the international community for longer than is nec­essary. In line with a three phased effort to develop the Afghan military, coalition allies will move progressively from carrying the ma­jor burden of combat operations to a support­ing and enabling role.  The First Phase, an ac­celerated development both in numbers and capabilities of Afghanistan’s security forces that are adequately manned, equipped and trained to defeat all internal and external

Afghanistan National Development Strategy (ANDS)

threats, is well advanced. The Second Phase is to transition from coalition-led, to an Afghan-led and NATO-supported security operation. Although much of the security burden remains with our coalition allies, there has been pro­gress in combined Afghan/Coalition opera­tions, and in independent ANA security opera­tions. Phase Three will encompass efforts to further improve professionalism, discipline and operational cohesiveness and the ANA will conduct independent operations and lead the fight.  ISAF will move to a supporting role. At the end of this final phase, a capacity to defend the country will have been established, and the partnership with allies will become one of normalized defense relations.

SOUND ADMINISTRATION, JUSTICE AND JUDICIAL SYSTEM

Establishing a transparent and accountable ju­dicial administration is a key in achieving du­rable stability in the country.  The Government is committed to strengthening the justice sys­tem, incuding the Supreme Court, Attorney General´s Office, Chief Prosecution Depart­ment, Ministry of Justice, and military courts in the capital and provinces.  Priority programs of the Government include appointing profes­sional cadres, coordinating law enforcement and justice sector development programs to establish a prosperous, stable, and a just society based on democratic values and international standards. An effective legal administration that ensures the rule of law is important for people to have faith in their government.  The Government is implementing programs to strengthen and support reform in the Ministry of Justice, the Supreme Court, and the Attorney General’s Office.

RELATIONS WITH NIEGHBORS AND INTERNATIONAL ALLIES

Afghanistan’s security is closely linked with international developments.  The country bor­ders with six countries and inevitably has eco­nomic and political interests with these coun­tries that are related.  The Government seeks to cooperate with its neighbors by strengthening regional security linkages with intelligence sharing to tackle cross-border infiltration, ter­rorism and narcotics trafficking.  

The Government will make every effort to en­sure regional stability, security and prosperity for itself and for neighboring countries.  The Kabul Declaration on Peaceful Coexistence and Good Neighborliness was signed in 1381 (2002).  It obliges Afghanistan and its neighbors to respect each others’ territorial integrity, es­tablish friendly relations and cooperation, and ensure non-interference in each other’s internal affairs.  All of the Government’s efforts to maintain security and accelerate social and economic development will not work without some degree of cooperation and support from Afghanistan’s neighbors.  A secure Afghanistan in a stable region is in the best interest of entire world. The Government will work with the international community and neighboring countries for an effective diplomatic solution to security challenges.  This will require: (i) con­certed diplomatic pressure against the safe ha­vens enjoyed by terrorist groups outside of Af­ghanistan’s borders; (ii) coordinated and effec­tive measures for strengthening border and cross-border security; (iii) support for the  pro­grams agreed in recent regional economic co­operation conferences; and (iv) a further strengthening of the Tri-partite Commission to dialogue with Pakistan on substantial issues.

CONCLUSION

The Government is fully committed to success­fully: (i) implementing an integrated and com­prehensive national security policy and strat­egy; (ii) building a robust security sector reform program; (iii) strengthening synergies between civil and military operations; (iv) increasing the role of security forces in counter-narcotics ac­tivities; and (v) strengthening the civilian com­ponents of security entities. While interna­tional assistance is vitally necessary at the pre­sent time, the Government is planning and looking forward to taking on an increasing share of the responsibility for security in Af­ghanistan.

Security

The goal for the Governance, Rule of Law and Human Rights is strengthen democratic proc­esses and institutions, human rights, the rule of law, delivery of public services and govern­ment accountability.

Improving governance is essential to the at­tainment of the Government’s national vision and the establishment of a stable and function­ing society. The government’s guiding princi­ples for improving governance are openness, participation, accountability, effectiveness, effi­ciency, coherence, equity, inclusiveness, justice and rule of law applied at all levels of the gov­ernment. The government will act as a policy maker, regulator, enabler and not a competitor, of the private sector.  The main priorities for the governance sector are (i) to increase the pace and quality of public administration re­form; (ii) strengthen sub-national governance structures; (iii) reform legal and courts proc­esses; and (iv) strengthen parliamentary and legislative processes including holding free and fair elections.

While much has been achieved in strengthen­ing the formal and informal structures of gov­ernance and rule of law, as well as extending human rights, considerable challenges still stand in the way of achieving the goals under this pillar.  These include: (i) the existence of multiple, parallel structures of state and non-state governance entities; (ii) confusion over centre/sub-national governance entities; (iii) weak public sector institutions 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) gender inequality; and (xi) underdeveloped human rights en­forcement capacities. 

Three sectors are contained under this pillar: Governance, Public Administration Reform and Human Rights, Justice Sector and Reli­gious Affairs.  Sub-national consultation and the Provincial Development Plans (PDPs) were instrumental in developing the sector strategy.

GOVERNANCE, PUBLIC ADMINISTRATION REFORM AND HUMAN RIGHTS

Role of the Sector in ANDS

In the Afghanistan Compact, the Government and the international community reaffirmed their commitment to certain benchmarks on Public Administration Reform, Anti-Corruption, The Census and Statistics, National Assembly, Elections, Gender, Land Registra­tion, Counter- Narcotics and Human Rights within the specified timelines.  Functional insti­tutions with trained staff will be established in each province to implement appropriate legal frameworks and appointment procedures. The Government will also establish a fiscally and institutionally sustainable administration for future elections and prioritize the reform of the justice system to ensure equal, fair and trans­parent access to justice.

The strategy includes out efforts to reduce gender inequality. Institutional and administra­tive frameworks will be established at the local government level that will enable women to play an important role in decision making (such as the CDCs established under the NSP). The Constitution allows limited decentraliza­tion specifying that a Provincial Councils (PC) with elected members are to be formed in every Province and, that District, Village and Mu­nicipal Councils and Mayors are to be elected through, free, general, secret and direct elec­tions every three years.

Governance, Rule of Law and Human Rights

61

Current Situation in the Sector

Afghanistan has come a long way in the last 7 years.  In 2000 the World Bank assessed the ‘quality’ of Afghanistan’s governance institu­tions as falling in the bottom one percent of all countries.  The rule of law, adherence to good governance practices and respect for human rights in Afghanistan is weak but improving. The ANDS vision for this sector is the estab­lishment of a stable Islamic constitutional de­mocracy where the three branches of govern­ment function effectively and openly, are ac­countable, inclusive and abide by the rule of law.

Progress since 2001 includes the adoption of the constitution; successful parliamentary and presidential elections, and progress in improv­ing the livelihood and welfare of females and other disenfranchised groups.  In addition, the ANDS sets out a series of reforms to address these constraints:

• Justice: The Ministry of Justice (MoJ) is strengthening the review process for laws and regulations and identifying areas for reform, including instituting a code of eth­ics and professional standards.  In March 2007, the Supreme Court, the MoJ, and he Attorney General’s Office presented new comprehensive reform strategies at the Rome Conference.  These include plans to restructure the institutions; develop merit-based and transparent recruitment; promo­tion and accountability mechanisms for improving professional standards, ethics and discipline; improving the conditions of service for justice officials; and increasing women’s representation at all levels of the justice system.  
• • Corruption: The High Level Commission against Corruption has been established to assess and analyze the factors contributing to corruption.  The Commission presented recommendations to prevent corruption and developed the roadmap in its docu­ment “Fighting Corruption in Afghanistan
• - Strategy and Action”.
• Legislative Reforms: Progress is being made in reforming the legal framework of the country.  Laws have been enacted to promote investment and trade.  Measures to deal with illegal drugs, corruption and money laundering are under review and

being enacted.  As part of the judicial re­form program a number of other important laws will soon be approved.

• Gender: The National Action Plan for Women of Afghanistan is being imple­mented to establishing greater gender equality by eliminating discrimination, building of women’s human capital and promoting their participation and leader­ship.
• Governance: Public administration is gen­erally recognized as being weak.  The Gov­ernment will undertake comprehensive in­stitutional strengthening and capacity building within the ministries, provinces, districts, municipalities and villages.  This will achieve improvements in the delivery of services to the people and communities living in the provinces, districts, munici­palities and villages.

A number of constraints continue to face the sector: weak public sector capacity; a lack of resources and unsustainable fiscal outcomes; a restrictive legislative environment that limits private sector activity; limited legislative over­sight and representational experience of public figures; extensive corruption; excessive cen­tralization; a lack of coordinated decision-making across Government; limited female participation in the Government; limited direct accountability to clients; and state capture by illicit power-holders.

Policy Framework: Sector Strategy

The governance agenda addresses three major challenges: pervasive corruption, low public sector capacity and human rights deprivations for girls and women in Afghanistan. 80 percent of provinces identified reducing cor­ruption in public administration as a priority during sub national consultations.

The policy framework for the proposed reform program to strengthen governance includes all national and sub-national government, parlia­mentary, civil society and political structures.

The mainstreaming of cross-cutting issues of anti-corruption, capacity building and gender are of particular relevance to this pillar.  In summary, the policy framework for this pillar includes the following goals:

Afghanistan National Development Strategy (ANDS)

• National Assembly Empowerment: To enhance the capacity of the National As­sembly in discharging legislative, over­sight, transparency and accountability functions.
• Public Administration Reform: Public administration reform will focus on pay and grading reforms to increase competi­tive recruitment, hiring of a trained and capable public sector workforce, strength­ening merit based appointments, conduct­ing performance-based reviews.
• Anti-corruption: Measures to achieve a reduction of corruption in the judiciary and throughout the government will be intro­duced. There will be increased monitoring of corruption at senior levels.  Appropriate new applications will be introduced to limit potential corruption. Public reporting and complaints mechanisms will be ex­panded.
• Enhanced availability of information to public and enforcement: Public rights to access to information will be increased. Sanctions will be enforced against those in­volved in the drugs trade.
• Enhanced participation of Women in Governance: Fulfillment of the national ac­tion plan for women’s rights will be im­plemented and affirmative action programs made available to women.
• Enhanced participation of Youth in Gov­ernance: A proactive policy to expand op­portunities for young people that encom­passes all areas of Government activity will be adopted.
• Effective system of disaster preparedness and response: The national disaster man­agement and mitigation policy will be im­plemented.
• Independent Election Commission: The capacity of the Independent Election Commission will be strengthened.  A per­manent voters’ registry will be established. Regular national and sub-national elections will be held as mandated by the Constitu­tion.
• Single National Identity Document: To enhance public accountability and trans­parency a single national identity docu­ment will be issued.

• Census and Statistical Baseline Data: The national census will be completed and the results published.  National economic and poverty baselines will be established.
• Geodesy and Cartography: Village and Gozar boundaries will be verified and mapping exercises will be undertaken.
• Land Administration: A modern and community-based land administration sys­tem and establishment of a fair system for settlement of land disputes will be estab­lished.
• Independent Directorate of Local Gov­ernance (IDLG): A sub-national govern­ance policy will be developed.  People’s participation in sub-national governance will be increased.  Provincial Councils will be empowered.  Laws on District Councils, Municipal Councils, and Village Councils will be introduced. Regular elections of District Councils, Municipal Councils, Mayors and Village Councils will be held. Public administration will be reformed at the sub-national level and the capacity of the public sector workforce at sub-national level strengthened.  Provincial planning and budgeting will be institutionalized.
• Governance Administration: Review and assessment of the facilities in all govern­ment offices will be undertaken and ap­propriate facilities provided.
• Communication with and within the Government: There will be enhanced flow of information between all government en­tities related to national policy, strategy and national budget procedures.
• Human Rights: The realization, protection, promotion and extension of human rights, including the Action Plan on Peace, Justice and Reconciliation will be implemented.

JUSTICE

Role of the Sector in ANDS

The role of the Justice Sector in the govern­ment’s development strategy is to ensure im­proved integrity, performance and infrastruc­ture of Afghanistan’s justice institutions in each province; to streamline administrative struc­tures, ensure professional integrity and im­prove coordination and integration within the

Governance, Rule of Law and Human Rights

Justice system between government and civil society institutions, and improve access to the justice system for all. The government has de­veloped the National Justice Sector Strategy (NJSS) to fully articulate these objectives. The NJSS will be implemented through the Na­tional Justice Program (NJP). This will strengthen and improve coordination among the justice institutions, and within the justice institutions and their bilateral and multilateral funding partners.  In the longer term the sector will seek to increase specialization and diversi­fication of justice practices to meet more com­plex demands – including the important and necessary interaction and relationship with in­formal justice systems, which are prevalent throughout the country, while expanding jus­tice services. Transitional Justice is obviously an important aspect of the sector. The Govern­ment’s Action Plan for Peace, Reconciliation and Justice in Afghanistan acknowledges that any mechanism for building peace and justice must be carried out with the active and mean­ingful participation of all national stakeholders, including the justice institutions. 

Contribution to the ANDS

Economic Growth: An efficiently operating justice system will encourage investment and for economic activity to move from the infor­mal to the formal sector, thereby strengthening the ability of the government to raise revenue internally.

Employment: Growth of the private sector, a prerequisite of which is an efficient judicial sys­tem will generate increased demand for labor. In addition, improved labor and contract laws will lower the cost of hiring labor and directly encourage increased employment, particularly in urban centers. 

Poverty Reduction: Economic growth and in­creased employment will contribute to a reduc­tion in poverty.  In addition it should be noted that women and the poor and marginalized are most likely to be the ones to suffer the lack of access to a fair and unbiased judicial system.

Security/Stability: Poor security in certain parts of the country makes service delivery dif­ficult or impossible and justice professionals operate at great personal risk. Police devote most of their resources to maintaining security. 

Contribution of the Sector to Imple­mentation of the Compact and MDGs

Afghanistan Compact: The Justice Sector will have met the four Rule of Law Compact benchmarks by the end of 1391 (2010).

Millennium Development Goals (MDGs): Al­though justice and the rule of law are not among the eight plus one MDGs, they provide the enabling environment for poverty reduc­tion and economic development.

Current Situation in the Sector

Achievements: Afghanistan has a mixed civil law and Islamic Sharia-based formal legal sys­tem that has evolved over many years. In most non-urban areas customary legal systems con­tinue to operate. While there is considerable variation in these customary legal systems they are usually based around traditional tribunals – jirgas, maracas shuras or mookee khans. Tradi­tional systems usually have core principles of apology and forgiveness, followed by recon­ciliation. Most Afghan customary systems are based on the principle of restorative justice. 

The Constitution introduced three major re­forms to the judicial system:

• Art. 97 declared the judiciary an “inde­pendent organ of the State” which “dis­charges its duties side by side with the Leg­islative and Executive Organs;”
• The Constitution created a unified judicial system with an organizational structure that is headed by the Supreme Court;
• The constitution created a unified system of laws. The Constitution and statutes cre­ated under the Constitution are legally dominant, with the basic principles of the Sharia acting as a guide to the legislature.

In August 2006 a new Supreme Court was ap­proved by National Assembly. The Supreme Court then adopted a new Code of Judicial Conduct, based on the internationally recog­nized Principles of Judicial Conduct and estab­lishing ethical standards.

Donor activity in the justice sector has gener­ally focused on building capacity of the judicial system, including police training and court construction. 

Afghanistan National Development Strategy (ANDS)

Integration of the PDPs: Seventeen out of the thirty-four PDPs cited security as the main ob­stacle to development and stability, and cited it as the priority sector in their provinces. As a result, many of the projects requested by the people indicate the need for justice sector infra­structure and a law enforcement presence at the district level.

Sector Related Issues

Role of the Private Sector: The justice sys­tem lowers the cost of doing business and al­lows firms to enter into commercial enforceable contracts. Businesses in the formal sector have a strong interest in promoting an efficient judi­cial system

Role of Civil Society: Civil society urgently requires a judicial system at both the national and provincial level that can be trusted to ad­minister justice and has the confidence of the general population.

Policies to improve Aid Effectiveness: An important criticism has been that the donor community has neglected provincial issues and aid has been uncoordinated. Donors should not attempt to impose an external judicial system that may not be accepted throughout the coun­try.

RELIGIOUS AFFAIRS

Role of the Sector in ANDS

The ANDS strategic objective for this sector is to provide competent and qualified religious services and increase the public awareness of Islamic religion and values in order to promote people’s participation in the poverty reduction and development programs. The Govern­ment’s primary goal is to ensure that all Af­ghans have equal opportunities to exercise their Islamic and religious believes and that Islamic values will be embedded in the Afghan recovery and development.  The religious af­fairs strategy intends to establish a system which ensures that religious values are re­flected with every aspect to Government policy and contributes to the overall development of the country. The sector strategy was developed after extensive consultations with religious in­stitutions, scholars and religious leaders at both national and sub-national levels.

With respect to this the Government will im­prove religious infrastructures including mosques, shrines and other holy places.  The Government will also develop religious schools (madrassas) and will significantly strengthen the training of imams, preachers and religious teachers.  The Government will provide train­ing opportunities for Islamic teaching.  In order to meet these objectives, the strategy requires the provision of religious services, poverty re­duction and effective economic development of the country

Contribution of the Sector Strategy

Economic growth: The Government recog­nizes that Islam is contrary to many challenges that Afghanistan faces today such as corrup­tion, poppy production and others and that by raising public awareness of the link between economic recovery, the role of the economy in strengthening Afghan society and Islamic val­ues support of the Government’s efforts to im­plement number of key reforms will be strengthened.

Poverty reduction: The religion of Islam re­quires all Muslims to support the poor and vul­nerable in society, as well as promoting the idea of social solidarity and actively encourag­ing charity.  With the establishment of the Za­kat Administration within the government, as well as the possibility of a Zekat-based tax, do­nations can now be collected and redistributed in an organized manner among the most needy.

Stability: The religion of Islam is a religion of peace.  The sacred religion of Islam calls on all Muslims to treat people with kindness and mercy and always try to forgive and avoid bad deeds. Religious scholars and leaders will play a significant role in propagating an end to the current conflict and encourage national recon­ciliation.

Human rights: Islam is based on human rights, including the rights of women, orphans and children.  Affirmation of these basic rights, like all other Islamic values, will build support for the reform and implementation of the ANDS. Basic human rights and freedom are essential to building a strong free market econ­omy in addition to being essential for any de­mocracy.

Governance, Rule of Law and Human Rights

This chapter summarizes the sector strategies developed as part of the ANDS under Pillar 3: Economic and Social Development.³⁸  The ANDS strategy depends upon achieving sus­tained high rates of economic growth that will increasingly be based on private sector-led de­velopment.³⁹ A key component of the ANDS is the development of an enabling environment that encourages the private sector to play a cen­tral role in the economic development of the country. While the sector strategies cannot specify private sector investments, which are a result of private decision making, the actions and programs designed to establish an ena­bling environment for the private and non­government sectors are included.  

PRIVATE SECTOR DEVELOPMENT

The Government’s economic vision has been consistent since 1381 (2002)⁴⁰ and remains the strategic objective for the private sector devel­opment strategy. The market based economy is enshrined in the Constitution, article 10, which states that:

The State encourages and protects private capital investments and enterprises based on the market economy and guarantees their protection in accordance with the provisions of law.

As President Karzai also stated, 

³⁸ The full sector strategies are included in the Volume II of the ANDS.

³⁹ See for example “A Policy for Private Sector Growth and De­velopment” presented by the Government at the Enabling Envi­ronment Conference, June 2007.

⁴⁰ See generally, National Development Framework, (2002), ANDS Volume II, and Securing Afghanistan’s Future, Chapter 5 (2004).

We aim to “enable the private sector to lead Afghanistan’s development”.41  We will build a market-based system, driven by private sector growth,42 in which Gov­ernment is the “policy maker and regula­tor of the economy, not its competitor”.43 If the Government is to achieve its aim of significantly enhancing per capita GDP in the next five years,44 it must complete the foundations for socially responsible pri­vate sector growth and encourage sus­tained high levels of foreign and domestic private investment.

The implementation of the private sector de­velopment strategy will contribute directly to the achievement of a number of objectives em­bodied in the Afghanistan Compact and the MDGs:

• Afghanistan Compact: Private Sector De­velopment and Trade: “All legislation, regulations and procedures related to in­vestment will be simplified and harmo­nized by end-2006 and implemented by end-1386 (2007). New business organiza­tion laws will be tabled in the National As­sembly by end-2006. The Government's strategy for divestment of state-owned en­terprises will be implemented by end-1388 (2009).”

⁴¹ President Karzai, Opening Address at the ADF, April 2005, page 9.

⁴² Minister of Finance Anwar Ahady, The Budget as a Tool for Accelerating 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 Development Forum. April 2005.

⁴³ Senior Economic Advisor to the President, Professor Ishaq Nadiri, 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.

• Afghanistan Compact: Regional Coopera­tion: “By end-1398 (2010) Afghanistan and its neighbors will achieve lower transit times through Afghanistan by means of cooperative border management and other multilateral or bilateral trade and transit agreements; Afghanistan will increase the amount of electricity available through bi­lateral power purchases; and Afghanistan, its neighbors and countries in the region will reach agreements to enable Afghani­stan to import skilled labor, and to enable Afghans to seek work in the region and send remittances home.”
• MDGs: Goal 8: “Further develop an open trading and financial system that is rule-based, predictable and non-discriminatory, which includes a commitment to good governance, development and poverty re­duction. Goal 8:  In cooperation with the private sector, make available the benefits of new technologies — especially informa­tion and communications technologies.”

The macroeconomic framework presented in Chapter 4 makes clear that maintaining high rates of economic growth during the life of the ANDS and beyond depends on a substantial increase in the level of private investment in the economy.

Key components of the private sector development strategy

The strategy to foster private sector develop­ment and increase domestic and foreign in­vestment consists of three main components: (i) continued efforts to build a strong and stable enabling environment that will encourage a competitive private sector; (ii) expand the scope for private investment in developing na­tional resources and infrastructure; and (iii) strengthen efforts to promote investment from domestic sources, the Afghan diaspora and foreign investors. 

Component 1: Strengthening the ena­bling environment

The main objective of an improved enabling environment is to reduce the costs of doing business.  This entails the elimination of exces­sive or unnecessary impediments to business activity that raise costs, and improving the ‘soft’ and ‘hard’ infrastructure essential to effi­cient economic activity.  This requires that the private sector have access to necessary inputs at reasonable cost, including land for commer­cial purposes, credit and imported raw materi­als and intermediate goods.  Efficient land, la­bor and financial markets and a stable, open trade regime have a major impact on the ability of firms to operate competitively.

Private sector development requires macroeco­nomic stability and an environment where there is a general reliance on the rule of law. While it is relatively easy to introduce a suit­able legal and regulatory framework, it is con­siderably more difficult to ensure that it is ef­fectively implemented. This requires that all parties, both public and private, reliably abide by the legal system.  It is critical that contracts can be entered into and enforced with disputes readily resolved.  A high priority of the ANDS is the strengthening of the institutions, includ­ing the establishment of effective commercial courts, responsible for the implementation of commercial laws.

ANDS strategic priorities to promote private sector development involve activities in the following areas:

• A stable macroeconomic environment and supportive financial system: The Govern­ment will control inflation at low levels similar to those achieved in recent years. The growth of a supportive financial sector that is able to extend credit to viable firms will be supported through legal and regu­latory reforms, including the implementa­tion of secured transactions laws.  
• Private sector investment: Attracting pri­vate investment is the responsibility of the entire Government and will be an integral part of all projects and programs imple­mented under the ANDS.  This will require institutional strengthening of Government agencies and ministries, including AISA as the lead investment promotion agency.  All ministries have the scope to expand the opportunities for private business activities and to increase their contribution to the growth and development of the economy. Donors will be encouraged to fulfill their commitments to increase the goods and services sourced within the country.

• Legislative Reform: Enact and implement key commercial laws and amendments to establish the basic legal and regulatory framework that will encourage private sec­tor involvement in social and economic de­velopment and consistent with the Afghan conditions.  ANDS priorities actions in­clude:

• o The Government will introduce and implement the remaining commercial laws included in the Afghanistan Compact benchmark.
• o The Government will consult with rep­resentatives from private business and civil society in a meaningful and timely manner during the process of drafting policies and laws.
• o The necessary steps will be taken to es­tablish the authority of mediation and arbitration tribunals to resolve private-private and private-public disputes, in­cluding land issues.
• o The Government will ensure that no law will be implemented unless it has been published in the newspapers, and made available electronically and in hard copy to the public.  Regulations, including import tariff rates, will be made readily available on the Ministry of Finance website.
• • Administrative Reform: The Government will ensure that ministries and agencies are able to competently administer commercial laws and regulations in an unbiased and predictable manner.  These actions will in­clude:
  • o Invest in capacity development for Na­tional Assembly so that MPs are better informed and supported in their role and understanding of proposed laws.
  • o Ensure the competency and transpar­ency of tribunals by establishing stan­dards and building the capacity of arbi­trators, mediators and lawyers.
  • o Undertake financial audits of state owned assets and corporations.
  • o Implement effective programs to pro­vide institutional strengthening and capacity development throughout the public sector.

• State owned enterprises: The Government will continue the program of privatization and corporatization of state owned enter­prises, a process that is presently on sched­ule.  This will: (i) improve the level of effi­ciency in the economy; (ii) assist in elimi­nating corruption; (iii) encourage better re­source allocation; and (iv) generate in­creased government revenue.
• Formalizing private sector operations: The Government is encouraging firms to for­malize their activities by introducing tax number identification and applying com­mercial laws and regulations.  Considera­tion is being given to innovative efforts to channel some public funds now being used for vocational training through properly registered firms in compliance with tax laws for their use in financing training for their employees in properly accredited vo­cational training programs.
• • Improve private sector access to finance: The Government will implement a well de­fined strategy to expand the availability and range of financial products and ser­vices, especially targeting small and me­dium enterprises.  Priority actions include:
  • o Passage and enactment of four key fi­nancial laws: Secured Transactions, Mortgage, Leasing and Negotiable In­struments Laws.
  • o Establish an independent banking and business training institute as a joint commercial bank – DAB initiative.
  • o A credit information bureau will be es­tablished to facilitate commercial and consumer lending.
  • o The financial tribunal will be estab­lished to provide swift legal resolution of financial disputes.
  • Maintain a pro-trade environment: The Government remains committed to main­taining trade policies with low barriers for imports and exports and a liberal foreign exchange system.  The Government’s trade policies will take into account the need to increase domestic revenues and support increased domestic production by the pri­vate sector.  Pressures can be expected to arise from some groups for tariff protection, which would likely impose burdens on consumers or other producers in the economy. Such proposals will only be con­sidered by evaluating the economy-wide costs and benefits, including the impact on consumers.  The Government will under­take systematic tariff reform as part of the budget process and in consultation with the private sector and will avoid ad hoc changes.  The Government will continue to vigorously seek to increase access for Af­ghan goods and services in foreign markets though bilateral, regional and multilateral trade agreements.  The Government re­mains committed to WTO accession. Ex­panding trade with neighboring countries will help to establish Afghanistan as an important ‘trading hub’ in the region.

• Firm-level technical assistance:  The Gov­ernment is determined to assist the private sector develop its competitiveness and to substantially increase the volume of do­mestic production.  At present, Afghani­stan’s exports are very low by regional standards, dominated by dried fruit and carpets. However, in recent years a num­ber of new manufacturing industries 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.  The Gov­ernment will seek firm-level technical assis­tance to increase the ability of firms in these and other new industries to compete more effectively in potential export mar­kets.
• Trade Facilitation: The Government will introduce trade facilitation measures to re­duce the costs of moving goods within the country and across borders, including en­deavoring to relax restrictions arising from transit agreements with neighboring coun­tries.  Institutional capacity to support the export of domestically produced goods and services will be increased, including for ex­ample the technical resources to establish that Afghan agricultural products meet sanitary and phyto-sanitary (SPS) require­ments of importing countries and interna­tional product standards are met. The Government will reduce the burden of ex­port documentation and processes will be further streamlined and essential services, including market information will be pro­vided to the exporters by the EPAA.

• NGOs and civil society: The strategy rec­ognizes the vital contribution that NGOs and other civil society organizations are making in implementing the social and economic goals of the ANDS.  The Gov­ernment will maintain an open and effec­tive social dialogue with civil society and encourage their contributions to social and economic development.

Component 2: Expand opportunities for the private investment in infra­structure and natural resources devel­opment

The country requires enormous investment in infrastructure, including roads, power genera­tion, water supply, and irrigation.  A substan­tial part of these requirements could be under­taken profitably by private investors with an appropriate regulatory environment.  Private investment in the development of natural re­sources, particularly minerals development will become viable when suitable regulations are in place.

• The Government will establish a multi-sector regulatory authority following an approach similar to that used to develop the telecommunications industry.  This regulatory system will establish appropri­ate fees and royalties, public purchase agreements (e.g., for power), ensure trans­parent procedures and dispute resolution mechanisms.  Its mandate will be to maxi­mize private investment in these areas.
• Opportunities for entering into public-private partnerships for investment in in­frastructure projects, such as roads and bridges, will be developed based on inter­national best practices.
• The Government will encourage private provision of public services wherever it will be feasible, including areas such as health, education, municipal services, etc.

Opportunities to expand private investment occur in sectors where multiple ministries have responsibilities.  This will require improved coordination and strengthening the capacities of most ministries and agencies.  To be success­ful, the development and promotion of private investment opportunities cannot be the respon­sibility of only one or two agencies or minis­tries, but must entail a concerted effort by the entire Government.  Efforts to encourage pri­vate sector investment also require the under­standing and cooperation of the donor com­munity.

This aspect of the private sector development strategy is reflected in many of the sector strategies set out below.  For example, it repre­sents a major reform in the energy sector de­signed to attract private investment into the power sector and development of energy re­sources.  It is the basic foundation for devel­opment of the mining sector.  It plays an im­portant role with respect to the efforts to make more efficient use of state owned land to stimu­late commercial agriculture.  The Government will seek to attract medium and large scale ag­ricultural producers and processors to invest in commercial agriculture in order to increase employment and market opportunities in rural areas and to develop export markets for higher value Afghan products.  It is reflected in inno­vative efforts to try and use public funding to support and improve private provision of edu­cation and health services. There is scope for using donor funding to develop a vibrant and competitive domestic private construction in­dustry in the projects being implemented by Government ministries.

Component 3: Concerted private sec­tor investment promotion

The third component of the strategy involves concerted efforts to promote investment from foreign and domestic sources, including from the Afghan diaspora.  After a long period of isolation, Afghanistan must rebuild commercial ties and demonstrate that there are consider­able profitable opportunities for investors in the country. The Afghanistan Investment Sup­port Agency will play a central role in this process and will be strengthened.  But the re­sponsibility for promoting increased invest­ment will be a government-wide task and will be an integral part of all projects and programs undertaken as a part of the ANDS.

The objective is to make known to potential investors the opportunities available in Af­ghanistan, to ensure them that the Government recognizes the importance to the country of increased private investment and to work with potential investors to assure them that their investments will not fail due to unpredictable and unfavorable changes in the tax environ­ment or policies towards private investors. This needs the full support of the international community. This can be done through focused efforts by donors to create conditions necessary for increased private investment in the country. It can also be done by bilateral donors using their relationships with firms in their own countries that are potential investors in Af­ghanistan to make known the great importance the Government is now placing on the need to expand private sector investment and opera­tions within Afghanistan.

ENERGY

Role of the Sector in ANDS:

Energy is a critical input to economic growth. The ANDS strategic vision and goal for the en­ergy sector strategy is: “An energy sector that provides drivers of growth in the economy with long term reliable, affordable energy based on market-based private sector invest­ment and public sector oversight”. This strat­egy supports (1) commercially and technically efficient energy delivery as a priority; (2) re­formed sector governance that will safeguard consumers, workers and resources; (3) the es­tablishment of a market-based enabling envi­ronment where legitimate private investment will be facilitated; (4) the diversification of en­ergy resources for long term low cost energy, energy security and clean energy use; and (5) identifying and supporting inter-sectoral sup­porting linkages including comprehensive sys­tem-based planning not limited to projects, en­ergy for industry and vehicles.  The Govern­ment puts great emphasis on expanding do­mestic capacity for electricity generation and will take steps to provide the basis for a transi­tion of the sector from public to private provi­sion of electricity.  As the Afghan energy sector moves from primarily state owned operations to a more private market orientation, new insti­tutional arrangements will be established.  

The Afghanistan Compact benchmarks that specifically deal with the energy sector include: 

• “By end 2010, electricity will reach at least 65 percent of households and 90 percent of non-residential establishments in major ur­ban areas and at least 25percent of house­holds in rural areas.”
• “By end 2010, at least 75 percent of the costs will be recovered from users con­nected to the national power grid”, a benchmark that the Government now in­tends to exceed for all but the poorest members of society.45

These are ambitious goals.  Meeting these ob­jectives will require the transformation of the sector similar to the changes that took place in the telecommunications industry with the re­organization and commercialization of public sector activities and with a greater role being played by the private sector.  

Current situation in the sector

The energy sector suffered considerable dam­age due to war and operational neglect. The country has never had high rates of electrifica­tion.  Today it is estimated that 20 percent of the population have access to public power (grid-supplied) on certain days for a limited number of hours.  Nationally seven grids dis­tribute power, with supply coming from do­mestic hydro generation; imported power and thermal generation.  Isolated diesel generation has dramatically increased since 2002 and will continue to play a large role in power supplies. Rural populations use local waste, solar panels, batteries and small wood, coal, kerosene sup­plies for basic cooking and heat. 

Over the past five years, the Government has worked with the international community to

⁴⁵ The poorest members of society rarely have access to electric­ity service.

increase the availability of electricity and other energy resources and to carry out the planning necessary to make the transition to a more sus­tainable and efficient private sector led energy sector. A power sector master plan (2003-04); a gas sector master plan (2004-05), and a renew­able energy plan (2006) were developed and/or updated. Considerable Investment in expand­ing domestic generation capacity has been un­dertaken, including the rehabilitation of the damaged power infrastructure.  To a lesser ex­tent, repairs at gas, coal and other energy infra­structure have taken place while millions of dollars have been spent for diesel fuel and support of more than 1,700 small renewable energy projects.  Since 2006, there has been an on-going program for commercialization of operations in power operations by the state owned power company, DABM. 

The Inter-Ministerial Commission for Energy (ICE) was established in 2006 to coordinate Government policy in energy; to leverage do­nor resources; and integrate sector planning. Cadastre and Inspectorate functions are now located at the Ministry of Mines to support oil, natural gas and coal contracts. 

The efforts mentioned above have resulted in a significant improvement in the availability of electricity and other energy sources compared to the devastated conditions prior to 2002. Electricity capacity compared to 2002 has al­most doubled, largely due to imported supply, which was non-existent prior to 2002 (see Table 7.1). However, on a per capita basis, the elec­tricity generating capacity is well below what it was in 1978. The present goal of electricity availability set for 2010 is below 40 kwh per capita, (compared to a present availability in, for instance, Tajikistan of over 2,200 kwh per capita).  Technical standards of operations re­main antiquated and do not appropriately re­flect the new technologies or modern safety measures.

Despite progress and efforts to date, the exist­ing governance arrangements and policy framework for the sector are still insufficient to support a market-based energy system. Some of the obstacles to making the desired transi­tion include:

• Dispersed institutional support: Seven ministries include energy as part of their portfolio.  
• Lack of regulatory framework: No legal or regulatory regime (though an energy law is under preparation) is in place to guide sec­tor operations.  There are no legal profes­sionals trained in commercial energy law or regulatory processes.
• No divesting or meaningful commerciali­zation of state energy assets: The Govern­ment and energy enterprise operations are overstaffed and highly inefficient, lacking fundamental tools and capacity to support technically and commercially viable opera­tions.  This includes power, natural gas, coal and liquid fuels.  Some of the state owned enterprises and budgetary units op­erate with considerable government sup­port with virtually no audit, fiscal or legal oversight.
• A drain on budgetary resources: A sector that could be generating revenues for gov­ernment with normal rates of taxation ap­plied to sector activities is, under present arrangements, a major drain on govern­ment resources.
• Inefficient and wasteful use of electricity: Underpriced electricity is used ineffi­ciently. Appropriate cost recovery will provide incentives to cut down on this wasteful use.
• Limited opportunities for private partici­pation: There are no legal impediments to private investment in the energy sector. In practice, there is a weak legal and regula­tory infrastructure in place to support and monitor investments.  Potential investors cite unclear policies and corruption as a barrier to investment.  In a well developed market, the majority of services now pro­vided by the 11 SOE and three budgetary units that support energy operations could be implemented by the private sector in ways that are more cost-effective and tech­nically efficient.  Areas where private sec­tor engagement has immediate potential with appropriate regulatory include inde­pendent power production and oil and gas concessions.

In the Provincial Development Plan consulta­tions, a number of issues were frequently high­lighted across a range of sectors and in a major­ity of provinces, and therefore emerge as over-arching development priorities.  Access to elec­tricity, both for domestic use through the ex­tension of availability of electricity to more re­mote villages, and for productive purposes such as factories and businesses was mentioned in 80 percent of the PDPs. 

Policy framework: sector strategy

Substantial new investment is required in the sector to increase domestic generating capacity and ensure adequate supplies.  A central thrust in the strategy will be increased investment in energy related infrastructure.  The three key hydro power projects (described above) will substantially add to generating capacity, but also support agricultural growth and improved management of water resources.  Substantial additional private investment is also required. The Government will leverage currently avail­able donor funds to ensure longer term access to private investment and capital.  Policies to support private investments will be estab­lished.  Improved procurement, accounting functions, contracting and reporting at the gov­ernment level will be put in place.

A new market oriented paradigm will be de­veloped, supported by significant institutional strengthening and capacity development.  As the energy line ministries shift over time from operating as production-based entities to be­come policy-making regulatory agencies, staff capacity and in-house functions will be reori­ented to market practices.  The key programs of the sector are: (i) efficient operation of infra­structure; (ii) market based sector governance;

(iii) rural electrification and renewable energy;

(iv) expand supplies, (for additional detail refer to the full sector strategy in ANDS Volume II). 

The Priority Polices and Projects include:

• Implementation of key power infrastruc­ture projects:  The Government will give priority to the implementation of four ma­jor infrastructure projects that will substantially increase power supplies, but also con­tribute to expanded irrigation and rural development: (i) the Kokcha-e-Ulia Hydro Power Plant, which will generate a total of 1,900 MW and add 57,000 hectares of irri­gated agricultural land; (ii) the Baghdara Hydro Power Plant, which will generate 210 MW, benefit more than 105,000 fami­lies, increasing irrigation coverage; (iii) the Irrigation and Power Project of Kokcha-e-Sofla, which will generate 100 MW of power, benefiting more than 950,000 fami­lies in the area; and (iv) the Sorobi II Hydro Power Plant, which will generate 180MW and help meet electricity needs in Kabul. Other key projects include expansion of the public power grid through the rehabilita­tion and upgrading of Kabul and other key infrastructure areas (i.e., distribution – lines, substations, meters); the develop­ment of the North East Power System (NEPS) to be followed by the South East Power System (SEPS), Western and Eastern Power Systems; the development of the Sheberghan gas and oil fields; construction of new transmission and related distribu­tion for power imports; installation of a dispatch and control system as well as a re­active power system. 

• Restructured energy sector governance: The Government will consolidate energy plan­ning and policy-making functions through the Inter-Ministerial Commission for En­ergy (ICE). This may involve some re­grouping of Ministerial functions as well as improved line ministry staff capacity to plan and budget.  Use of the ICE mecha­nism as well as improved public informa­tion will be essential for improved gov­ernment coordination in the energy sector. Related or duplicated energy functions at various ministries will be consolidated and appropriate line ministry terms of refer­ences will be introduced.  It is essential that the donors themselves improve the way in which they are engaged with the energy sector. At present there are 25 donors en­gaged in the sector; in addition there are 15 different US agencies.  Afghan counterpart resources are limited and stretched to the limit. Improved governance will mobilize investment, mitigate corrupt practices and improve the technical quality of energy supply. A viable legal and regulatory framework will be established that includes the development of market-based power purchase and production sharing agree­ments.

• Legal reform and Regulatory standards. Finalization of primary legislative and regulatory tools is essential.  These include mining regulations, the Hydrocarbons Up­stream Law and drafting legislation for the electricity sector.  There are no meaningful technical standards or financial standards for operation in place; these need to be ur­gently developed as well as staff capacity to implement them.  The Government is working with the international community to draft a revised Hydrocarbons Law as well as mining and hydrocarbons regula­tions). Drafting of regulation for hydrocar­bons is underway in the strengthening of the cadastre and inspectorate functions and more focus on grid and off-grid regulation of electricity as well as liquid fuels is re­quired.

• Commercialization and/or divestiture of state and “quasi-state” assets: The Gov­ernment will assess its sector assets and a plan for liquidation, restructuring and commercialization or sale.  In particular the Government will provide more support for the corporatization and commercialization of national power operations. Commer­cialization and increasing the efficiency of the state power company DABM includes, for example, the installation of interna­tional accounting and procurement prac­tices that will follow in other energy sub-sectors.
• Improve the enabling environment for pri­vate sector investment. As new energy de­velopments emerge including new power import transmission, gas-fired power, coal-fired power and new hydro generation, the introduction of the private sector to finance and operate these assets will be important. In most instances no local capacity is in place to support these market operations and private investments. A market-friendly enabling environment to facilitate private investment must be developed that is sufficiently flexible to entice private in­vestment but effective in how these in­vestments are monitored to safeguard Af­ghan resources, workers, consumers and environment. The ANDS energy sector strategy calls for the establishment of a sector regulator, which will adopt a transpar­ent licensing regime and establish condi­tions that will attract private investment in electricity generation and in the related fields of mining, natural gas and hydro­power. A market-friendly enabling envi­ronment to facilitate private investment will be developed.  Key areas for invest­ment in the near term include: (i) increased domestic power generation that includes new hydro power, natural gas and coal-fired power facilities; (ii) power distribu­tion including lines, substations and meter­ing; (iii) power construction and services (i.e., outsourcing); (iv) exploration and ex­ploitation of coal, natural gas and oil; (v) installation and operation of rural energy services. 

• Expanded Public Power Grid: The Gov­ernment is committed to improving energy access for people across the country. A high priority in this area is the rehabilita­tion and expansion of grid-supplied power, including investment in new generation, distribution and transmission.  The Gov­ernment is also implementing a series of large and small infrastructure improve­ments, generation, transmission and im­proved distribution of electricity through­out the country. Future actions include: (i) rehabilitation and upgrading of Kabul and other key infrastructure areas (i.e., distribu­tion – lines, substations, meters); (ii) devel­opment of the North East Power System (NEPS); to be followed by the South East Power System (SEPS), Western and Eastern Power Systems; (iii) construction of new transmission and related distribution for power imports. Installation of a dispatch and control system as well as a reactive power system will be underway in 2008. These on-going donor funded activities to expand the power grids will be adjusted to be compatible with the move to a more market based system.

• Increase Access to rural energy services: Micro-hydro, solar, waste and even small diesel power and energy generating sources will be promoted to improve rural access.  Commercial operation of these ser­vices will be encouraged and technical standards will be established to ensure sion of such services by the private sector. Several private firms are involved in the development of off-grid power supplies based on wind or solar power and efforts will be made to encourage the develop­ment of these activities, or at least not un­dermine their viability with subsidized public sector activities.

• Increase Regional Cooperation and Trade in Energy Products: Afghanistan is geo­graphically well positioned to import addi­tional resources from neighboring coun­tries.  Afghanistan joined as a full member the Central Asia South Asia (CASA) 1300mw project in November 2007.  Power purchase agreements (PPA) are being final­ized for regular power imports from neighboring countries and new PPAs are being negotiated for increased power im­ports.  Afghanistan is also participating in ongoing planning for a Turkmenistan­Afghanistan-Pakistan-India (TAPI) natural gas pipeline.  A number of regional energy trade and import arrangements have com­menced and will contribute to long-term energy security.  
• Poverty Reduction Initiatives:  The energy sector will provide essential power sup­plies needed for private sector develop­ment, job creation and poverty reduction. Investments in the sector will create direct employment opportunities in the devel­opment of power plants, oil, gas and coal fields, the construction of grid systems and the commercial operations of the sector. The development of small energy installa­tions will contribute to local economic de­velopment particularly in rural areas.  Sub­sidies for electricity will be maintained for the poorest households.  Micro-hydro, so­lar, waste and even small diesel power and energy generating sources will be pro­moted to improve increased rural access to power. Commercial operation of these ser­vices will be encouraged and technical standards will be established to ensure cost-recovery, sustainability and safety. A number of private firms are currently in­volved in the development of off-grid power supplies based on wind or solar power and efforts will be made to encour­age the development of these activities.

•Environmental Protection: The environ-mental implications of the expansion of the energy sector will be fully accounted for. These will be both positive, such as re­duced pressure for deforestation, while others may be potentially negative, such as increased green house gas emissions. There will be scope for using wind and so­lar energy, particularly in areas away from the regional grids, and the relative benefits of this type of energy should be recognized in policies to support their use.

The energy sector strategy therefore combines efforts supported by donor funding to expand public sector operations while laying the groundwork for much greater involvement by the private sector investors.  The relative weight given to these two components will be dependent on the relative effectiveness of the two efforts over the implementation period for the ANDS (for details refer to ANDS Volume II).

Integration of the Provincial Devel­opment Plans (PDPs)

Access to electricity, both for domestic use through the extension of availability of electricity to more remote villages, and for productive purposes such as factories and businesses was cited in 80 percent of Pro­vincial Development Plans. PDPs in eight provinces, principally in the center, south and south east of the country report pro­gress in access to electricity since 2005, however, provinces in the center and south also most frequently mentioned the need for improvement.  Little mention or under­standing was cited with respect to the non-electricity use 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 sector investment in energy sector. (For detail in­formation refer to Appendixes 3-National Action Plan and 4-Monitoring Matrix.)

WATER AND IRRIGATION 

Role of the sector in ANDS:

The ANDS strategic vision and goal of the wa­ter sector can be summarized as follows: to manage and develop the water resources in the country so as to reduce poverty, increase sus­tainable economic and social development, and improve the quality of life for all Afghans and ensure an adequate supply of water for future generations.

There are significant water resources in Af­ghanistan.  Average annual precipitation is equivalent to about 165,000 million m•, yielding an annual surface runoff water volume of about 57,000 million m•.  This amounts to ap­proximately 2,280 m•/year per capita.  This would be an adequate amount, except: precipi­tation is primarily in the form of snowfall and the resulting snowmelt runs off in a matter of a few months without adequate catchment sys­tems; and precipitation in not evenly distrib­uted geographically.  Reliance is therefore placed on groundwater extraction that is not sustainable and currently only an insignificant amount of surface water storage exists.  Deep water drilling without adequate investment in recharge basins or storage structures is degrad­ing the aquifers on which much of traditional irrigation systems depend.  Despite consider­able assistance in rehabilitating irrigation sys­tems, progress towards establishing a compre­hensive plan with prioritized and costed in­vestments is still in the formative stage.

The Afghanistan Compact Benchmarks for Wa­ter Management commit both the Government and the donors to the development of sustain­able water resource management strategies and plans covering irrigation and drinking water supply, and irrigation investments will result in at least 30 percent of water coming from large waterworks by end 2010. Other Compact Benchmarks under Urban Development, Envi­ronment, Agriculture and Rural Development directly address and contribute to the water sector, as follows:

• Urban Development: Investment in water supply and sanitation will ensure that 50 percent of households in Kabul and 30 per­cent of households in other major urban ar­eas will have access to piped water and improved sanitation.

• Environment: Environmental regulatory frameworks and management services will be established for the protection of air and water quality, waste management and natural resources.
• Agriculture: The necessary institutional, regulatory and incentive framework will be established for securing access to irrigation, water management systems and food secu­rity.
• Rural Development: Rural development will be enhanced for 90 percent of villages through the provision of safe drinking wa­ter, sanitation (50 percent) and small scale irrigation (47 percent) by the end of 2010.

Millennium Development Goals: The MDGs state that: “access to water and sanita­tion, electricity, and livelihoods sources have been negatively impacted through the decades of war.  Drinking water supplies reach only 23 percent of Afghanistan’s total population – 43 percent in urban areas and 18 percent in rural areas.  The country’s total sanitation coverage of only 12 percent deserves attention. While around 28 percent of the urban population is covered, only 8 percent of rural population had access to improved sanitation in 2006.⁴⁶

Target 10 of the MDGs is to halve by 2020 the proportion of people without sustainable ac­cess to safe drinking water and ensure envi­ronmental sustainability.

The sector strategy incorporates feedback and comments from the sub-national consultations. Access to clean drinking water has been identi­fied as a priority in the Provincial Development Plans in all provinces.  Participants generally voiced concern that unsafe drinking water is a cause of disease, and the provision of safe drinking water is therefore seen to be as much a public health issue as an issue of infrastruc­ture, rural and urban development.  In over a quarter of PDPs, the need for access to clean drinking water is specifically raised by women

⁴⁶ According to the best estimates of social indicators for children in Afghanistan, UNICEF, few places in the world face such scarce and alarming water supply and sanitation coverage levels.

who often have the responsibility of collecting water for the household.  However, this issue is not confined to the domestic context and the PDPs in six provinces highlighted the need for access to safe drinking water in public institu­tions such as schools.

Current situation in the sector

Given the importance of water resources, the Government has made improved water man­agement a high priority.  Steps are being taken to address shortcomings in governance as well as meeting some of the most pressing needs through donor funded projects.  Some key achievements have been:

• The formulation of the Supreme Council for Water Affairs Management (SCWAM) to coordinate and overcome the problems of diverse ministerial responsibilities for water management.  A Technical Secre­tariat has been established to develop new water laws and develop a consistent set of policies for water management. New envi­ronmental laws were recently enacted by the National Assembly. 
• Steps have been undertaken to re-organize water resource management on the basis of an Integrated Water Resource Management System based on the five main river basins. Development will still be planned and im­plemented centrally, but in the future indi­vidual river basin organizations or authori­ties will be established. Feasibility studies have been completed or are underway for small, medium and large water infrastruc­ture projects. The rehabilitation and mod­ernization of hydrological stations have been started. Research and modeling of the availability of allocation of safe drinking water supplies in Kabul are being devel­oped.
• Significant progress has been made in pro­viding increased access to safe drinking water and sanitation.  The Afghanistan Ur­ban Water Supply and Sewerage Corpora­tion (AUWSSC) has been established. Some 80 water supply and sanitation pro­jects have been implemented around the country. Research and assessment of the underground water resources available to Kabul is on-going.  The urban water supply systems will be transformed into quasi-public agencies.  Two million urban residents (31 percent) have benefited from in­vestments in water supply and 12 percent from investment in sanitation in major cit­ies between 2002 and 2007.  About 35,000 water points 59 networks and 1,713 water reservoirs and 23,884 demonstration la­trines have been constructed.  More than three million people have benefited di­rectly from the rural water supply and sanitation activities in the country.  Around a third of the provinces reported some im­provement in access to clean drinking wa­ter since 2005 during the consultative proc­ess under the ANDS.

• Irrigation Rehabilitation has been given high priority over the past four or five years.  An estimated 1.8 million hectares of land is under irrigation; 10 percent gets wa­ter from engineered systems and large works, the remaining through traditional irrigation methods.  Of some 2,100 rehabili­tation projects, approximately 1,200 have been completed and have been placed back into commercial service.  The Government will continue to work with the mirabs that manage these systems. ⁴⁷

Despite some progress in establishing better governance in the sector and in rehabilitating existing assets, a lot more needs to be done. Prior to 1979, some 3.3 million hectares were cultivated under various irrigation methods, compared to the 1.8 million hectares now being irrigated.  The remaining amount employs tra­ditional irrigation methods.  Out of 7.9 million hectares arable land, 5.3 million hectares is irri­gable. Irrigation water management is a high priority of the Government. 

There is a lack of skilled human resources with experience in water management.  Information systems are only now being reconstituted and there is a lack of reliable hydrological, meteoro­logical, geo-technical and water quality data. There is a lack of the infrastructure and equip­ment needed to efficiently conserve and utilize water resources that result from seasonal run­off with the snow melt.  There is limited data

⁴⁷ The mirabs are community level organizations that manage traditional irrigation systems.  A similar effort has been made under the National Solidarity Program to establish Community Development Councils with a broader mandate for local funding. These organizations have different mandates, representatively and are based on a totally different geographical unit.

on ground water resources and information indicating that un-regulated deep well drilling may be depleting aquifers that are essential to water supplies and traditional irrigation sys­tems (Karezes and springs).  There is a lack of economic mechanisms regulating water use and investments for water supply, sanitary sys­tems, irrigation, and hydropower generation. 

Unclear delineation of responsibilities between ministries complicates planning.  Some donors are focused on emergency projects that are not integrated into an integrated system of water use. Access to drinking water and sanitation, while improved, is still not in compliance with the Millennium Development Goals.  There is a lack of hydro geological investment in urban areas.  A significant risk exists for underground water contamination.  A major river basin wa­ter supply master plan with good information on water balances, that is, supply versus de­mand for water for drinking, irrigation, hydro power and environment purposes is not yet available.  There is a pressing need to enhance the ground water resource recharge capacity. Coordination among water related institutions and agencies remains weak.  

This sector strategy incorporates feedback and comments from the sub-national consultations. The projects identified and prioritized during the SNC process are included in the Water Sec­tor Strategy.  Access to clean drinking water has been identified as a priority in the Provin­cial Development Plan in all provinces.  Par­ticipants generally voiced concern that unsafe drinking water is a cause of disease, and the provision of safe drinking water is therefore seen to be as much a public health issue as an issue of infrastructure, rural and urban devel­opment. In over a quarter of PDPs, the need for access to clean drinking water is specifically raised by women who often have the responsi­bility of collecting water for the household. However, this issue is not confined to the do­mestic context and the PDPs of six provinces highlight the need for access to safe drinking water in public institutions such as schools. Around a third of the provinces spread across the country report some improvement in access to clean drinking water since 2005.

Policy framework: sector strategy

For the immediate future, the Government cen­trally will play the dominant role in setting pol-

icy priorities and decisions pertaining to devel­opment and management of water resources at the national level. The Government, acting through its operating entities, can influence the necessary international cooperation relating to several international water bodies.  This ex­tends to coverage provided by policy frame­works, appropriate legislation, and institu­tional structures under which water manage­ment can over time be devolved to the river basin and/or river sub-basin levels.  Ground­water on the other hand seldom has aquifer boundaries coinciding with river basins. Man­agement of groundwater aquifers may necessi­tate collaboration with special inter-basin enti­ties established for that purpose. (For addi­tional details refer to ANDS Volume II).

Towards an Integrated Water Re­source Management System (IWRM)

The water sector is extremely diverse.  The re­sponsibilities for supply management and use of water are distributed among a number of line ministries. The sector’s governance mechanisms (organizational structure, policies and legislation) are in the process of reformula­tion and implementation.  Adoption and im­plementation of an effective IWRM program will take into consideration all activities and development requirements influencing water resources.  This will include sociological and ecological considerations, in addition to water supply, irrigation, hydroelectric power, sanita­tion, land use, fisheries, and forestry.  The pro­gram will prioritize a series of specific activities required to effectively implement IWRM policy framework. 

The river basin approach to water management will lead to improvements in capturing surface water using storage reservoir and recharge ba­sins.  By devolving authority to the RBA and thus encouraging more effective use of water resources, the water resource strategy (when integrated with programs in the transport, ag­riculture, health, education, power sectors, along with counter narcotics programs, private sector development programs) will contribute to sustainable development and poverty reduc­tion.

Key Components of the Water Sector Strategy

While an IWRM approach has major benefits, supplementary comprehensive river basin data management programs are needed to support this approach.  It is important to improve mechanisms regulating water use and to attract investment to rehabilitate and construct irriga­tion, water supply and sanitary systems, as well as hydropower generation.  Essential leg­islation and a new policy framework governing the water sector have been prepared. The sec­tor is in the process of transitioning from a pro­ject-by-project approach to a sector-wide ap­proach, using an integrated water resources management (IWRM) system.  Improved gov­ernance mechanisms were identified and are being implemented.  Foremost among them was the formation of the Supreme Council for Water Affairs’ Management (SCWAM), and its associated Technical Secretariat. 

Until the IWRM comes into effect, considerable reliance will have to be put on a project-by­project approach for continued investments in rehabilitation of existing systems. New pro­jects need to be assessed relative to the returns from rehabilitation efforts and returns in other sectors

Responsibilities for a number of water related activities are distributed among a number of line ministries and agencies.  Each of these enti­ties have prepared sector specific strategies fo­cusing on their particular sector mandate, often underemphasizing water related programs and/or activities.  Development of a water sec­tor strategy therefore requires coordinating all relevant water sub-sector strategies being ad­ministered by individual government entities into one single unified water sector strategy document. The following sub-sectors have been included in this unification:  (i) urban and rural water supply and sanitation; (ii) irrigation and drainage; (iii) hydro power; (iv) industrial water supply and wastewater disposal; (v) flood protection and preparedness; (vi) drought mitigation measures; and (vii) envi­ronmental requirements, including forestry, fisheries, and bio-diversity.  Facilitating related development of each of these sub-sectors will require institution building, enhancement of legal frameworks, capacity development, enlisting economic mechanisms, and intensive rehabilitation of infrastructure.

The Strategic Policy Framework for the Water Sector approved by SCWAM recommended that the following policies, laws, regulations and procedures should be developed in order to move forward in the development of the wa­ter sector. Under this policy framework, the Water Law of 1991 will be revised; water re­sources and irrigation policies and regulations will be established along with an institutional framework for water resources management; regulations for Water User Associations will be developed; plans will be developed and steps taken to preserve surface and underground water resources; national urban and rural wa­ter supply and sanitation policies and institu­tional development will be implemented;  ac­cess to safe drinking water and improved drainage and sanitation systems will be estab­lished; and key groundwater and hydropower development plans and policies will be estab­lished.

For the immediate future, the Government will play the dominant role in setting policy priori­ties and decisions pertaining to the develop­ment and management of water resources. This extends to policies, legislation, and institu­tions under which water management can in time be devolved to the river basin and/or river sub-basin levels.  (Management of groundwater aquifers may sometime necessi­tate collaboration with special inter-basin enti­ties established for that purpose.)  Ongoing and planned water sector projects have been struc­tured into eight programs (i) Institutional Set­up and Capacity Building (ii) National Water Resources Development (iii) National River Basin Management (iv) Irrigation Rehabilita­tion (v) Urban Water Supply and Sanitation (vi) Rural Water Supply and Sanitation (vii) River­bank Protection (viii) Agriculture “Food Secu­rity for All”.  For detail on all of the programs refer to ANDS volume II.  The highest priority programs are:

• Institutional Building and Capacity De­velopment Program: Activities in this pro­gram focus on the institutional and human capacity development of water resources management as well as infrastructure de­velopment at national, river basin and sub-basin levels. These activities have been combined into a comprehensive program to enhance cooperation between projects and avoid duplication of efforts.

• National Water Resources Development Program: Under the Water Law the Minis­try of Energy and Water is responsible for the preparation of a national water re­sources development plan.  This plan will cover the development of water resources for the social, environmental and economic needs of the country as well as: (i) elaborat­ing river basin development and manage­ment plans, fostering ministry and water users’ capacity for on-farm and off-farm water management; (ii) preparing for dis­cussions on trans-boundary water issues with some neighbor countries; (iii) support­ing analytical capacity and research; (iv) enabling private investments in the water sector; and (v) proper planning and im­plementation of infrastructure for rain and flood water harvesting, supplementary ir­rigation, groundwater recharge and soil stabilization. As a first step in the devel­opment of this national development plan, a Master Plan for the Kabul River Basin has been prepared.  In addition, the Ministry has prepared a list of water resources de­velopment projects in the five river basins.
• Irrigation Rehabilitation Program: Several projects to address the immediate needs in irrigation infrastructure have been devel­oped.⁴⁸  Although these projects mainly fo­cus on the infrastructure, they contribute to the development of water resources and address related issues like the rehabilita­tion of the hydro-metric network for data collection on river flows and weather. Components of the emergency irrigation rehabilitation program for the period 2008 to 2013 include the rehabilitation of the Na­tional Hydrological Stations to aid in the undertaking of national hydrological sur­veys to aid in planning and building irriga­tion infrastructure; and rehabilitation of na­tionwide small, medium and large tradi­tional irrigation schemes, such as the ‘Emergency Irrigation Rehabilitation Pro­ject’ – a three year country-wide project for the rehabilitation of infrastructure and ca­pacity building.  

⁴⁸ See the discussion on hydro power projects for the energy sector.

These programs respond to the dual tasks of remodeling and modernizing institutions while at the same time rehabilitating and improving infrastructure.  They consider short term emer­gency water infrastructure rehabilitation and income generation needs as well as the long term goal of sustainable development of insti­tutions and creation of new multifunctional infrastructure.  

The development of the country’s water re­sources will continue to be heavily influenced by programs and projects implemented by do­nors. It is essential that these activities be effec­tively coordinated and aligned with the priori­ties in the ANDS.  SCWAM will undertake a leadership role among government organiza­tions in providing coordination with the inter­national community.  The ANDS water sector goals are achievable with the implementation of an effective integrated water resource devel­opment strategy.  Some of the benefits will be realized only over the long term, while others will be realized within a very short time span. 

Expected Outcomes

The key expected outcomes of the Water Sector Strategy are:

• Improved water sector legal and govern­ance structures and institutions in place
• Sustainable water resource management strategies and plans covering drinking and irrigation water supply developed and im­plemented.
• Water resources for drinking and irrigation purposes improved as well as poverty re­duction and employment creation.
• Infant mortality decreased and life expec­tancy increased as result of higher access to clean water. (For more detailed information refer to Appendixes 3-National Action Plan and 4-Monitoring Matrix.)

AGRICULTURE AND RURAL DEVELOPMENT

Role of the Sector:

The ANDS long term strategic vision for agri­culture and rural development is to ensure the social, economic and political well-being of ru­ral communities, especially poor and vulner­able people, while stimulating the integration of rural communities within the national econ­omy. This will require transforming agricul­tural production so that it is more productive and increasingly commercially oriented and expanding off-farm employment opportunities as the basis for increasing incomes among the rural population.  This sector strategy articu­lates a road map for the way forward in which poverty reduction through economic regenera­tion is the central objective.  A central focus is on supporting the poorest and most vulnerable segments of rural society and promoting the development of medium and large scale com­mercial agricultural activities.  Advancements in the sector will improve the quality of life for rural citizens, increase food security, improve the delivery of basic services, increase incomes and contribute to establishing a safe and secure environment.

The Afghanistan Compact Benchmarks related directly to agriculture and rural development call for measurable improvements in:

Compact Benchmark 6.1

• The necessary institutional, regulatory and incentive framework to increase produc­tion and productivity will be established to create an enabling environment for legal agriculture and agriculture-based rural in­dustries.
• • Public investment in agriculture will in­crease by 30 percent. Particular considera­tion will be given to perennial horticulture, animal health, and food security by: insti­tuting specialized support agencies and fi­nancial service delivery mechanisms, sup­porting farmers’ associations, branding na­tional products, disseminating timely price and weather-related information and statis­tics, providing strategic research and tech­nical assistance, and securing access to irri­gation and water management systems. Compact Benchmark 6.2
• assistance to and rehabilitation and integra­tion of refugees and internally displaced persons; and
• assistance to female-headed households that are chronically poor and increases in their employment rates.

Other major Government goals relating to agri­culture and rural development should be noted, including:

• creating the necessary policy and regula­tory framework to support the establish­ment of micro, small and medium-size ru­ral enterprises; 
• creating the enabling environment for sus­tainable management and use of Afghani­stan’s natural resources;
• access to safe drinking water will be ex­tended to 90 percent of villages, and sanita­tion to 50 percent;
• road connectivity will reach 40 percent of all villages.
• 47 percent of villages will benefit from small-scale irrigation. (See ANDS Volume Two for more details)

Current Situation

Agriculture has traditionally been the major activity for a large proportion of the popula­tion, particularly in the most remote areas.  The years of turmoil left much of the country’s agri­culture and rural infrastructure in a serious state of disrepair and led to a significant reduc­tion of cultivatable land and degradation of the environment.  Between 1978 and 2004, agricul­tural production declined by an average of 3.5 percent a year; 50 percent of the livestock herd was lost between 1997 and 2004.

Recent performance in the sector has been posi­tive. Measurable progress has been achieved since 2003 in improving rural livelihoods. Through a variety programs, almost 20,000 km of rural access roads (i.e., all weather, village­to-village and village-to-district center roads) have been constructed or repaired, increasing access to markets, employment and social ser­vices.  More than 500,000 households (36 per­cent of villages) have benefited from small-scale irrigation projects.  Currently, 32.5 per­cent of the rural population has access to safe drinking water and 4,285 improved sanitation facilities have been provided. More than 336,000 households have benefited from im­proved access to financial services. Some 18,000 CDCs have been established and are implementing community-led development projects.

The contribution of agriculture to GDP in­creased from 48 percent in 2006 to 53 percent in 2007, although the longer run trend (not in­cluding opium) is down due mainly due to rapid growth in construction and other activi­ties. Other achievements include: 5.5 million metric tons of wheat and other grains produced in 2007 compared to 3.7 million metric tons in 2002; 0.9 million metric tons of horticulture and industrial crops produced in 2007 compared to

0.4 million metric tons in 2002; 3.2 million ani­mals received veterinary and health services; 5,000 metric tons of improved wheat seed was produced and distributed to farmers in 28 provinces; $120 million is to be invested in commercial agriculture; more than 3,000 coop­eratives and farmers organization have been created and strengthened; and 20,000 coopera­tive members trained.

However, significant improvements are still to be made. With a few notable exceptions, all rural citizens are poor in relative and absolute terms, lacking both physical and social assets. 80 percent of the Afghan population live in ru­ral areas, most of whom are engaged in agricul­ture to some degree, although many are also heavily engaged in processing, trading or mar­keting activities of agricultural products; 12-15 percent of total land area is suitable for cultiva­tion; water constraints inhibit cultivation of up to one third of irrigated land; three million hec­tares of land are rain-fed, in a country of re­peated droughts; 58 percent of villages have limited seasonal or no access roads (the average distance to the nearest road is 4.6 km); 13 per­cent of rural Afghans have access to electricity at some point during the year; more than 70 percent of rural Afghans do not have access to safe drinking water; 96 percent of rural Af­ghans do not have access to safe toi­lets/sanitation (28 percent have no toilets at all).  The continued high population growth projected for Afghanistan will imply continued decline in per capita levels of agricultural re­sources unless major investments are made in improved water management.

Ongoing instability, widespread poverty and lack of governance resulted in a dramatic up­surge in opium poppy cultivation, involving

3.3 million people (14 percent of the popula­tion).  Poppy production is now highly concen­trated in five southern and eastern provinces, whereas production in the other 29 provinces has fallen and is half 2004 levels.

Further, the unstable security situation coupled with capacity constraints presents major obsta­cles to program implementation, including community mobilization, survey and design of projects, service and input provision, selection of qualified contractors and NGOs willing to work in high-risk areas, and the ability to monitor projects for quality assurance and fi­nancial control purposes. These constraints affect the pace, cost and quality of development activities.

Most farmers are engaged in subsistence or near-subsistence agriculture, and many farm­ing families lack food security with risky liveli­hoods often combined with chronic debt.  Fur­ther, many rural households are involved in down-stream agricultural activities, including processing, transporting and marketing.  As a result, the country’s vulnerability to natural disasters and food shortages is high.  The abil­ity to engage in agricultural pursuits is central to improving wellbeing of the rural poor.

Limited coordination between ministries and between the Government and the international community has impeded progress.  Govern­ment funds have been channeled through highly centralized ministries, with many na­tional programs and donor-funded projects working independently of each other. The role of provincial administration units has been and remains unclear, especially in the areas of eco­nomic planning, budget execution and service delivery.  Provincial governments have limited authority, budgetary resources or technical skills to facilitate development.  Ministries which deliver services to the rural population are still struggling with the legal structures of past administrations and over-centralization of administrative processes has impeded the timely and effective delivery of services to local communities.

The Government recognizes that to meet these enormous challenges nationwide, progress may be slow, incremental and uneven; it may take a generation or more to adequately meet the needs of all rural Afghans.  Nevertheless, the Government is committed to providing a proper enabling environment for the rural economy and working to address the needs and articulated priorities of the rural popula­tion. This long term effort requires a consid­ered and cohesive policy framework.

Policy and Strategic Framework 

The Government is committed to working to address the needs and articulated priorities of the rural population. This long term effort re­quires a considered and cohesive policy framework across ministries and sectors.  The following are the key components of this policy framework of this sector:

• Comprehensive and strategically cohesive poverty reduction programs 
• Public/Private sector responsibilities
• Assurance of food security
• The restoration and expansion of Afghani­stan’s licit economy through the promotion of livelihoods free from dependency on poppy cultivation
• Land tenure security
• Assistance to farmers to increase produc­tion and productivity
• Environmental protection and assistance to communities to manage and protect Af­ghanistan’s natural resource base for sus­tainable growth
• Improvements in agricultural and rural physical infrastructure and irrigation sys­tems providing services to meet basic hu­man rights
• 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 disas­ters The strategy intent focuses on five thematic areas of programming. The following five the­matic areas are loosely sequenced, based upon their level of interdependence
• Local Governance 
• Agricultural Production
• Agricultural and Rural Infrastructure
• Economic Regeneration
• Disaster and Emergency Preparedness (See ANDS Volume Two for more details)

The key priorities of this program are the:

• Development of a comprehensive set of programs and projects – the Comprehen­sive Agriculture Rural Development pro­gram – designed to improve rural liveli­hoods and reduce rural poverty; and• Support of commercialized agriculture, leading to an improvement in agricultural productivity throughout the rural econ­omy.

Comprehensive Agriculture and Rural Development program: The Comprehensive Agriculture and Rural Development program (CARD) is a series of programs designed to support the poorest and most vulnerable seg­ments of rural society.  The CARD represents the Government’s approach to providing di­versified income sources, through income sup­port, direct provision of assets, skills training and market opportunities, and is crucial to providing alternatives to producing narcotics. Interventions will be targeted and tailored to specific regions and groups.

In implementing the CARD, the Government will ensure that efforts to promote activity in the sector will stimulate and not displace spon­taneous viable private sector development. The devolution of authority will be undertaken over a number of years to ensure the capacities at all levels of government exist.  The Govern­ment will work to reconcile the introduction of sub-national governance measures down to the village level with existing community organi­zations.  In particular, the role between pro­posed Village Councils and the existing Com­munity Development Councils set up under the National Solidarity Program and which have been given legal status will be clarified. Strengthening sub-national governance struc­tures in line with the newly-formed Independ­ent Directorate for Local Governance will also be undertaken.

The Government will work with NGOs, civil society and the international community on the prioritization of the sub-components of the overall CARD program and to develop the funding requirements in some detail within a log frame matrix, identifying what will be done by when. This will allow a cooperative effort by the international community and the Gov­ernment to reallocate resources towards those efforts that appear most effective in improving rural livelihoods.  Ongoing monitoring and evaluation will be essential to address identi­fied constraints and successes and alter the programs as necessary.

The principal program among the 15 programs of the CARD is the National Solidarity Pro­gram (NSP), the Government’s main commu­nity development program.  Implemented by the Community Development Councils (CDC), the more than 50,000 projects benefit approxi­mately 2 million people in rural areas. The NSP is developing the capacity of CDCs to identify community needs and transfer funding and necessary support resources to fund local­ized small scale activities of importance to rural communities, such as roads, irrigation, water wells and school.  It is a successful and popular program used to empower these communities. It is a major contributor to meeting a number of the Compact benchmarks and is a successful example of country-wide Government, donor and NGO coordination.  It establishes the framework for future programs that provide greater control to local communities, including the private sector, over development funds.

The other 14 programs of the CARD in­clude:

• The National Food Security Program will promote and implement food security op­portunities at the household level, benefit­ing over 1.2 million households by 2010. This will decrease malnourishment rate from 57 percent to 35 percent.  A key com­ponent of this program is the support to improve local governance in 38,000 vil­lages.
• The National Area Based Development Program will support all District Develop­ment Assemblies to develop district level development plans which will support comprehensive rural development and re­generation.
• The Horticulture Program will support horticulture development and supply farmers with saplings, provide equipment for trellises and establish pest control sys­tems leading to a 20 percent increase in perennial crop production and significant exports through public private sector part­nerships.
• The Livestock Program will support live­stock production by importing purebred sheep, establishing commercial dairy plants and poultry units for women farm­ers, increasing productivity and output.
• The National Rural Access Program will support rural road construction and rehabilitation that will provide all weather road access to 65 percent of villages by 2013.

• The Rural Water Supply and Sanitation Program will assure that by 2013 98 percent of villages will have access to safe drinking water and 50 percent of villages will have improved sanitation facilities.  This will substantially improve health, hygiene and welfare in rural communities.
• The Irrigation Program will establish irri­gation infrastructure on an additional 105,000 ha of new irrigated land by 2018 and improve on-farm water use efficiency.
• • The National Resource Program will es­tablish National Resource Management committees and develop national resource management plans for forests, rangeland, wildlife and desertification control.
• • The National Surveillance System Project will assist MRRD and CSO in the develop­ment of a national poverty, vulnerability and food security surveillance system and enable the government to provide credible and timely information to all government and non-government agencies.
• The Rural Electrification Program will result in over 4,000 villages being con­nected to local electrical facilities.
• The Rural Enterprise Program will pro­vide training and finance to establish rural enterprises across 70 percent of all CDCs and create an estimated 2.1 million jobs, better integrate the rural economy with the national economy and reduce poppy culti­vation.
• The Research and Extension System will establish a research and extension capabil­ity; provide access to credit, support farm­ers organization and private sector market development through cooperatives, lead­ing to agricultural growth and diversifica­tion.
• The Emergency Response System will provide a mechanism for humanitarian and disaster response that will provide emer­gency assistance, assure access to areas af­fected by snow and disasters and protect vulnerable people and assets.
• The Capacity Building Program will pro­vide the institutional and organizational capacity at the national, provincial and dis­trict levels needed to successfully imple­ment the other CARD programs. (See ANDS Volume Two and Appendix “Na­tional Action Plan/Policy Matrix” for more details)

Support for Commercial Agriculture: There is virtually no large scale commercial agricultural activity currently undertaken in Afghanistan.  This has not always been the case.  Earlier turmoil destroyed much of the country’s agricultural and physical infrastruc­ture, halting commercial activities.  There has been limited recovery since 2002.  This includes ongoing efforts to increase the international community’s, including ISAF, procurement of agricultural products from local producers, promoting large scale production and supply chain processes.

The Agriculture and Rural Development Zones (ARDZ) program is the Government’s ap­proach to expanding commercial activities and increasing agricultural productivity.  This is necessary to increasing incomes and employ­ment opportunities in rural areas and to de­velop potential agro-based export potential.

The ARDZ recognizes that geographic priori­ties have to be set in support of the develop­ment of commercial agriculture.  These geo­graphic priorities will be used to target infra­structure, utilities and other support by various ministries.  The Government will release pub­licly held land to increase private investment. Competitive bidding for the rights to lease these lands will be similar to the competitive bidding to lease development rights for min­eral resources and the competitive bidding for the rights to use the telecommunications spec­trum. Further, the Government will continue to investigate, implement and monitor key steps necessary to increasing financial and technical support so that private firms are able to expand operations.  This will ensure the process of transforming underutilized state land into commercially viable agro-processing enterprises will be as fast and efficient as pos­sible.

The Government’s objective is to largely rely on private investment and public sector sup­port to transform agriculture in some well de­fined zones where the conditions for growth are most favorable and high value added commercial agricultural activities can flourish.

This requires integrating and upgrading exist­ing private and public sector networks and in­vesting in essential infrastructure projects that shorten trade distances, reduce costs and in­crease productivity, encouraging entrepreneurs to expand private sector activity.

In implementing the ARDZ, the Government will:

• identify and map agricultural growth zones;
• quantify the necessary factors required for accelerated growth within each zone; 
• identify key competitive product value chains and the connector firms that drive these value chains; 
• develop plans to extend the reach of agri­cultural zones into more remote rural ar­eas;
• ensure rural development activities are national in scope and linked to the agricul­tural growth zone plans; and
• mobilize private sector investment and op­erations as the key element in the success of the agricultural growth zone initiative.

To date, five distinct agricultural growth zones have been identified:

• a North Western Zone centered on the primary market town of Mazar-i-Sharif that includes ten secondary market towns and which is well positioned to take advan­tage of trade linkages with the Central Asian Republics;
• a North Eastern Zone centered on the pri­mary market town of Kunduz that includes seven secondary market towns and which, with the new bridge at Shirkhan, is well positioned for trade with Tajikistan and, with good road connections to Urumqi, with China;
• a Central Zone centered on the primary market town of Kabul that includes thir­teen secondary towns and which is linked with the important market center in Jala­labad and the  regional market in Pesha­war, Pakistan;
• a South Eastern Zone centered on the pri­mary market town of Kandahar and which includes four secondary towns (one of which is the important agricultural produc­tion town in Lashkargah) and which is linked to the regional market in Quetta, Pakistan; and a Western Zone which is centered on the primary market town of Herat and which includes four secondary market towns and which has linkages to markets  in and through Iran.

As part of the ARDZ, the Government has begun the process of establishing the Ex­ecutive Management Unit with Presiden­tial authority to coordinate and develop a five year action plan and organize the nec­essary funding and commitment from line Ministries and donors so as to establish a program implementation plan. This unit will ensure critical infrastructure, such as power, water, transportation links, tele­communications, financial services and vocational programs are available. The Unit will work with relevant Ministries to ensure priority is given to providing ser­vices in these zones. (See ANDS Volume Two for more details)

Expected Outcomes

The Agriculture and Rural Development ex­pected outcomes are as follows: 

• Strengthened Local Governance: Func­tioning formal and informal local govern­ance, including social and economic activi­ties implemented and maintained by com­munities that contribute to the human capi­tal development and improved livelihoods. Improved management of local natural re­sources including clarifying the legal status of natural resources, roles of both commu­nities and institutions in governance and management will help ensure food secu­rity, contribute to poverty alleviation and improve both ecological integrity and the natural resource base.
• Poverty Reduction and Food Security: The National Food Security Program (NFSP) will increase household food security and nutritional status while contributing to na­tional food security and economic growth in rural areas.

• Increased Agricultural Production and Productivity: Public and private sector partnerships strengthen horticulture indus­try. Increased livestock production and productivity will improve food security and incomes that will lead to a reduction of illicit agriculture and a decline in livestock imports. Agriculture diversification through various value-added activities, re­search, extension, access to credit, market development, establishing/strengthening farmers’ organization, private sector devel­opment, trainings, will improve the rural economy. (See ANDS Volume Two for more details)
• Provision, and maintenance of Agricul­ture and Rural  Infrastructure: Successful crop production requires: technical irriga­tion management (e.g., availability of irri­gation water supply, improving water effi­ciency and productivity, building effective and efficient irrigation and village based irrigation infrastructures, utilize modern ir­rigation technologies and human resource water management (e.g., organizing and strengthening mirabs, farmers associations, irrigation associations, decentralization of irrigation management at basin and sub-basin levels, water allocation. etc.).

TRANSPORT

Role of the Sector in ANDS

The ANDS strategic vision and goal for the transport sector is to have a safe, integrated transportation network that ensures connec­tivity and that enables low-cost and reliable movement of people and goods domestically as well as to and from foreign destinations.  This will give impetus to economic growth and em­ployment generation and help integrate Af­ghanistan into the global economy.  A high pri­ority is to have in place an efficient and viable road transportation network for achieving eco­nomic growth and poverty reduction, particu­larly in rural areas.

In the 1960s and 1970s, a large portion of the ‘ring road’ and connecting roads to neighbor­ing countries were constructed.  This network was subsequently largely destroyed during three decades of war and political strife.  The Government has continued to give high prior­ity to completing the rehabilitation and exten­sion of this system over the past six years.  Due to the significant impact of the road system on economic activity and the impact on poverty reduction, this will continue to be a high prior­ity under the ANDS strategy.

The Transport Sector Strategy will achieve the following targets established in the Afghani­stan Compact.  (i) Roads: Afghanistan will have a fully upgraded and maintained ring road, as well as roads connecting the ring road to neighboring countries by end-2008 and a fis­cally sustainable system for road maintenance;

(ii) Air Transport: By end-2010, Kabul Interna­tional Airport and Herat Airport will achieve full International Civil Aviation Organization compliance; Mazar-i-Sharif, Jalalabad and Kandahar will be upgraded with runway re­pairs, air navigation, fire and rescue and com­munications equipment; seven other domestic airports will be upgraded to facilitate domestic air transportation; and air transport services and costs will be increasingly competitive with international market standards and rates.  (iii) Regional Cooperation: By end-2010 Afghani­stan and its neighbors will achieve lower tran­sit times through Afghanistan by means of co­operative border management and other multi­lateral or bilateral trade and transit agreements.

Current situation in the sector

Since 2001, significant achievements have been made in the transport sector as donors contrib­uted over $3.3 billion to rebuilding the trans­port system between 2002 and 2007.  Some of the main achievements include: 

• An estimated 12,200 kilometers of roads have been rehabilitated, improved, or built including segments of the ring road sys­tem, national highways, provincial roads and rural roads.
• Kabul International Airport has been ex­panded and extensively rehabilitated.
• Four major airports (at Herat, Mazar-i-Sharif, Jalalabad, and Kandahar) as well as seven other regional airports are either slated for, or currently undergoing, exten­sive rehabilitation and expansion.
• In July 2007, trade and transit agreements with Uzbekistan and Turkmenistan were reached. A transit agreement is currently being drafted with Tajikistan. These agreements will help reduce transit time for shippers moving goods trans-nationally.

• The introduction of the automated customs and data systems (ASYCUDA) has been initiated which will reduce transit times and encourage promote trade, and aid in tracking customs collections.

Much remains to be done to expand and improve the transportation system. Road, air and rail links all require significant in­vestment. Some of the most pressing needs include:

• A system for road maintenance and reha­bilitation urgently needs to be put into place and made operational.  Roads that have been reconstructed will begin to dete­riorate unless maintenance is done in a sys­tematic way. 
• Approximately 85 percent of the total 130,000 km road network (some 43,000 km of national, regional, urban and provincial roads and an estimated 87,000 km of rural roads) is significantly degraded, with a ma­jor portion not passable by motor vehicles. Most bridges and culverts are in bad condi­tion and at risk of collapse.
• A limited number of airports are available for commercial use and all are in need of infrastructure improvements.  None of the civil air services meet the international standards and practices required by the In­ternational Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA).  While there has been private entry into the civil aviation sector and regional connections have expanded, much must still be done to create a truly ‘open skies’ regulatory framework that both encourages new entry but maintains international standards for safety.
• The country has no internal rail links, but relies on rail heads in neighboring coun­tries for trade.  The railhead transfer sta­tions are inefficient, increasing the costs of rail transportation.  Mines cannot be devel­oped and potential resources cannot be ex­plored and utilized without having a rail­way links to the neighboring/regional countries.

• Transport sector ministries and institutions are weak in the human capacity and or­ganization to carry out budgeting; pro­curement and contract administration; and adequate management of transport-related assets.  The institutions lack the necessary regulatory and enforcement frameworks and personnel management systems. There are overlapping ministerial respon­sibilities in the sector.  There is a lack of co­ordination and communication within the transport sector governance institutions and with other sectors. For detail refer to ANDS Volume II.

The Transport Sector Strategy incorporates feedback, proposed projects and comments which emerged from the Sub-National Consultations process. The construction of roads was among the top five most priori­tized sectors in the PDPs.  In areas such as Badakhshan, Bamyan, Ghor and Sari Pul, road construction was listed as the number one priority.

Policy framework: sector strategy

The Government continues to give high prior­ity to rehabilitate a badly damaged road sys­tem.  This includes: (i) completion of a fully upgraded and maintained ring road and con­nector roads to neighboring countries, (ii) im­proving 5,334 km of secondary (national, urban and provincial) roads and (iii) improving and building 6,290 km of rural access roads  as a key to raising rural livelihoods and reducing poverty and vulnerability in rural areas.⁴⁹  Bet­ter rural roads will improve market access and opportunities for rural households.  The actual allocation of resources amongst these three ar­eas of planned activity will depend on the es­timated rates of return from analysis of con­crete proposals put forward for funding by the international community or by the Ministries involved in implementing the Transport sector strategies.  A Transport Sector Inter-Ministerial Working Group has been formed to coordinate the work of the ministries in the sector to as­sure that projects are properly designed to ob­tain the highest returns and greatest impact on the poverty reduction goals.  Careful considera­tion will be given to increasing employment opportunities, and assuring that the local re­sources or funds channeled through local the agreement for developing the Aynak copper fields in Logar province and the en­ergy transmission lines developed under transit arrangements.

communities are effectively used to maintain the rural roads established as part of this strat­egy. The main programs of the strategy are (i) Regional, National Highways and Provincial Roads (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 Vol­ume II.)

In addition to the above work on the road transportation system, there are many areas that need to be addressed to both increase re­turns from an improved network but also to improve other aspects of the total transporta­tion system.  These include:

• Transportation Services and Trade Facili­tation: Improved transportation services, customs, and logistics management will require new investment and coordinated multilateral efforts, including work with the Economic Cooperation Trade Agree­ment (ECOTA), the Central Asian Region Economic Cooperation (CAREC), and the Shanghai Cooperation Organization. The Government will undertake feasibility studies to assess the economic viability of railway development within Afghanistan and links with neighboring countries.
• Air transport links: The Government gives high priority to the development of a new airport in Kabul.  In addition, the Govern­ment will implement programs to ensure that the principal 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. A regulatory framework will be introduced to encourage private investment under an ‘open skies’ policy.
• Regional Transportation and Transit: Re­gional transportation investments will be coordinated by the Inter-ministerial Work­ing Group for Transport to assure that in­vestments are designed in such a way as to best serve the development goals of Af­ghanistan. Relevant investments include the rail links that will be constructed under

 ⁴⁹ More detailed information on road construction projects can be found in the Transportation Sector Strategy and in the 

• Urban Road Networks: Under the urban sector strategy, much greater authority and responsibility is being given to municipali­ties.  The development of the national and regional road networks will be coordinated with municipal authorities with responsi­bilities for the urban road networks. Mu­nicipal transportation management will be strengthened to improve urban road qual­ity, road network maintenance, road net­work planning, and transportation facilities and services.

Railways: The Government will pursue the Afghanistan Railway Project which will include 1,824 km rail links to connect Ka­bul, in the East with Islam Qala in the West through Kandahar and Hirat.  The Gov­ernment will also undertake feasibility studies to assess the economic viability of railway links with neighboring countries.  

Aviation: The Government will seek in­vestment in a new international airport in the Kabul area to provide Afghanistan with a modern international airport and imple­ment programs to ensure that the principal 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.  A regulatory framework will be introduced to encourage private sector investment under an ‘open skies’ policy.

• Interaction with vulnerable groups: Use an integrated participatory regional devel­opment approach in rural areas, combining improved roads with agriculture, water, education, health, and counter-narcotics initiatives so that the poor derive the bene­fit from roads.  Undertake transport devel­opment through investments in secondary and rural roads to significantly increase provincial and village access to the national road system.

Economical and Social Development   

Expected Outcomes

The key expected outcomes of the transport sector strategy are:

• An efficient and safe road transportation system, through:

• o improved connectivity throughout Af­ghanistan;
• o lower road user costs;
• o improved business environment for private sector development, creating jobs and reducing poverty;
• o lower accident and fatality rates, measured by personal injuries per mil­lion vehicle kilometers; and
• o reduced journey times due to conges­tion.
• • A viable civil aviation sector that provides efficient access to the country and region:
  • o increased domestic and international passengers and freight traffic;
  • o improved stakeholder information on the viability of air transport systems;
  • o improved governance within the civil aviation sector; and

o overall improvement in urban air qual­ity from reduced congestion, better fuel quality and improved fuel efficiency. (For more detailed information refer to Appendixes 3, National Action Plan and 4, Monitoring Matrix.) Information and Communication Technology

INFORMATION AND COMMUNICATIONS TECHNOLOGY

Role of the sector in ANDS

The ANDS strategic vision and goal for the In­formation and Communication Technology (ICT) sector is to make affordable communica­tion services available in every district and vil­lage of Afghanistan through an improved ena­bling environment for private sector invest­ment. ICT will contribute to the Government’s efforts for a broad-based reconstruction effort. A modern telecommunications sector, incorpo­rating e-government initiatives will enhance the effectiveness, efficiency and transparency of the public sector and the provision of social services.  All Afghans, men and women alike, will in time be able to access ICT to access in­formation and social services, foster the re­building process, increase employment, create a vibrant private sector, reduce poverty and support underprivileged groups.

ICT provides an opportunity to bridge the communications gap that exists within the country.  Women in particular face movement restrictions due to security concerns and local traditions.  To establish greater national unity, it is important that all 365 districts, major vil­lages and rural areas should be able to com­municate with Kabul, with each other, and with the rest of the world.  ICT is a basic en­abler of informal social and economic discourse necessary in the strengthening of civil society and the promotion of economic activity (e.g. access to markets and pricing).  Despite its im­portance, there are no explicit AC benchmarks or MDG goals for this sector.  The ICT Sector Strategy will achieve the following targets es­tablished in the I-ANDS: By end-2010, a na­tional telecommunications network to be put in place so that more than 80 percent of Afghans will have access to affordable telecommunica­tions; and more than $100 million dollars per year will be generated in public revenues.

Current situation in the sector

In early 2003, Afghanistan had fewer than 15,000 functioning telephone lines – a tele­phone penetration rate of 0.06 percent, among the lowest in the world.  In addition to a short­age of basic telephone switching capacity, the local transmission network delivering last mile services, presented an even more difficult bot­tleneck.  The cabling conduit, trunk cables and copper wires were old or completely de­stroyed. Afghanistan did not have a function­ing long distance network to provide national or international connectivity.  The absence of transmission and switching facilities meant that citizens could only complete calls within their own cities and were unable to reach any other parts of the country or the outside world.  

The Government adopted major policy reforms for the ICT sector in October 2002, which was immediately posted to one of the first govern­ment websites.  This initial broad policy state­ment was further refined and divided into two separate policies – one for basic telecom infra­structure and regulatory principles, and a sec­ond for ICT applications and a vision for the Information Society.  These policies have re­mained the basis for the reforms over the last five years.  The basic principles have been given a statutory basis, in the form of the Tele­com Law that was promulgated in December 2005.  The telecom infrastructure aspects are being implemented by ATRA, which was es­tablished in June 2006. The ICT applications aspects are being implemented via the ICT Council, which was established in May 2007.

The transparent approach taken to the adop­tion of the policies and the consistency of the vision from design to implementation has pro­duced rapid results.  The fact that most of the existing infrastructure was either antiquated or broken meant that the industry was free to es­sentially start again with a clean slate.  In 2003, the obvious choice for personal communica­tions was wireless.  Accepted global standards meant that the equipment was reliable, cheap and could be deployed rapidly. In July 2003, two nationwide mobile (GSM) networks began operation, following an international competi­tive tender. The licenses required commercial service to be offered in Kabul within six months of the effective date, with nationwide service within 18 months.  Pursuant to the original Telecom Policy, these first two licenses also were provided a legal duopoly for three years.  In October 2005 and May 2006, two ad­ditional nationwide mobile (GSM) licenses were awarded, with identical terms and condi­tions. There was immediate strong demand for mobile services, with over 5 million Afghans now having access.

The 2003 ICT sector strategy has been the refer­ence template for subsequent reform policies, procedures and activities.  The Telecom Law was promulgated by President Karzai on 18th December 2005.  The law is compliant with the World Trade Organization Basic Telecom Agreement framework requirements in that it separates the three basic functions and assigns responsibilities to three independent sector elements, as follows (i) Policy – MoCIT; (ii) regulation – ATRA; and (iii) operations – Li­censed Service Providers.  The Telecom Law has led to the establishment of the independent sector regulator, ATRA.  The legal authority of ATRA rests with its five member board ap­pointed by the President. 

Figure 7.2. Growth in phone use

Despite the considerable progress in expanding the use of mobile phones, much more needs to be done to take advantage of the telecommuni­cations revolution in both the private and pub­lic sectors.  Impediments to the growth of ICT sector include: 

• Lack of Security represents an impediment to construction and maintenance of ICT in­frastructure in remote areas. Lack of clear property rights adds to construction times.

• Government bureaucracy (length of time for simple decisions) adds time and costs to development and operation of the system.
• Lack of electricity and high cost of diesel fuel for generators raises construction and maintenance costs.

• The high level of illiteracy reduces the im­mediate impact of many internet applica­tions, especially limiting the access of women to internet services.
• The numbers and skills within ICT work force is a constraint to the adoption and promotion of ICT.
• The limited awareness and acceptance of ICT within Government leadership 

Policy framework: sector strategy

The immediate goal of the sector is to increase access to telecom services to cover 80 percent of the country. Most populated areas will be cov­ered by 2010. A key component of this effort will be the completion of the Fibre Optic Cable and Copper Cable Network, allowing an ex­pansion of high-speed data services and ex­tending mobile phone coverage.  The private-sector is expected to make additional major investments in the telecommunication sector. With the establishment of a national data center by end of 2008, and implementation of e-Government, e-Commerce, e-Health (telemedi­cine) towards the end of 2010 Afghan citizens will be able to more fully participate in the in­formation age.  For the next five years, MoCIT policies, working through ATRA will also de­ploy satellite-based services to the less popu­lated areas where personal mobile facilities are too costly. The current program is to reach at least 3,000 villages by 2010.  Plans are also un­derway to issue new licenses for the provision of fixed wireless access for broadband internet.

There will be a $100 million revenue contribu­tion to Government revenue by 2010.  The ICT sector is already the most heavily taxed, pri­marily because it is comprised of the largest formal enterprises in the country.  A major study is currently being prepared that will pro­vide guidance to the ICT Council, and the Gov­ernment on improving governance and increas­ing public sector capacity for the industry.  

The key programs of the ICT sector are (i) Ena­bling Environment (ii) Infrastructure Develop­ment (iii) E-Afghanistan (iv) ICT Literacy. For detail refer to volume II.  In addition to the in­vestment in the cable network, the policy prior­ity for the Government is the passage and im­plementation of ICT legislation that will create an appropriate environment for further growth and development.  MoCIT has commenced drafting the ICT Law, which will address infra­structure and services, including issues such as legal recognition of electronic/digital signa­tures and formation of electronic contracts (af­fecting transactions both in public and private sectors), content regulation, competition regu­lation, electronic evidence, data privacy protec­tion, consumer protection and rights, domain name registration and regulation, intellectual property rights, encryption and security, finan­cial and banking sector law and regulation re­lating to electronic transfers and settlements, taxation of transfers, customs, jurisdiction, dis­pute resolution and civil and criminal offences, limitations of liability of internet service pro­viders, cyber piracy and digital rights man­agement, facilitation of e-government and cross border interoperability of e-commerce frame­works affecting trade.

The sector priority policy is passage and im­plementation of ICT legislation that will create an appropriate environment for further devel­opment. MoCIT has commenced drafting the ICT Law. The telecom law addresses the tele­com infrastructure and services, but the law doesn’t cover the content of the services. The ICT law will address issues such as legal rec­ognition of electronic/digital signatures and formation of electronic contracts (affecting transactions both in public and private sectors), content regulation, competition regulation, electronic evidence, data privacy protection, consumer protection and rights, domain name registration and regulation, intellectual prop­erty rights, encryption and security, financial and banking sector law and regulation relating to electronic transfers and settlements, taxation of transfers, customs, jurisdiction, dispute reso­lution and civil and criminal offences, limita­tions of liability of internet service providers, cyber piracy and digital rights management, facilitation of e-government and cross border interoperability of e-commerce frameworks affecting trade.

The ICT Council, through the MoCIT, will work to achieve the following:

• By end-2008, actions designed to promote transparency and citizen access to public information will be implemented.  This will include adopting Rules and Procedures to require all Government institutions to pub­lish documents on their official websites (as a supplement to the Official Gazette).  Actions designed to promote Government ef­ficiency, reduce costly waste and ensure in­formation system inter-operability will be implemented.  This will involve adopting a full set of Rules and Procedures that will govern the competitive procurement and utilization of ICT by all Government insti­tutions. An e-Government resource center will be established for the design and im­plementation of projects.  MoCIT will pro­mote private investment for Afghan Tele­com to reduce the financial burden on the Government, and adopt the legal instru­ments for private investment in the sector. Afghan Post offices will be modernized us­ing ICT to ensure reliable collection and distribution of mail.  The infrastructure of mobile networks will be adapted to enable mobile commerce, meaning the use of phones to transfer funds and conduct other financial transactions (pay utility bills and taxes, make retail purchases).  MoCIT will submit draft ICT legislation governing e-transactions, electronic commerce, elec­tronic signatures and cyber crimes to the National Assembly.  The Afghanistan Na­tional Data Center will be ready to host the e-government applications. 

• A unified curriculum and regulatory framework for private ICT training centers will be drafted in cooperation with Minis­try of Education.  MoCIT will have estab­lished an IT Training center in all provin­cial capitals where security permits.
• By end-2009, further efforts will be made to reduce corruption by reviewing all Gov­ernment services and making recommen­dations for the adoption of ICT to stream­line and automate (for example, customs processing, procurement and licensing).  
• An ICT Village will be established in Ka­bul, this facility will attract foreign and lo­cal investments in ICT.  Efforts will be made to ensure that all schools have access to internet and multimedia resources, to­gether with a basic curriculum that in­cludes browsing, searching and messaging.
• By end-2010, the ICT sector will contribute five billion Afs ($100 million) annually to the treasury by broadening the tax base (at­tracting additional investors to the market, rather than over-burdening the existing ones). ATRA will foster a transparent le­gal-regulatory regime that attracts a further 37.5 billion Afs ($750 million) in private in­vestment, and adds 50,000 jobs. 

• National ICT networks will be expanded and interconnected so that at least 80 per­cent of Afghans will have access to afford­able telecom services. 
• By end-2018, all pupils should be digitally literate by the time they leave school.  Digi­tal literacy will be adopted as one of the basic skills of all young Afghans.

The ICT sector strategy incorporates feedback, proposed projects and comments from the Sub National Consultations.  The ministry actively utilized its video conferencing capabilities to reach out to all 34 provincial capitals and many of the 240 district capitals that are presently served by the District Communications Net­work (DCN) infrastructure.  MoCIT has also worked with National Assembly to reach all communities. The Ministry has furthermore conducted planning sessions by bringing to­gether representatives from all 34 provinces for workshops in Kabul.  ATRA is in the process of instituting greater responsiveness to the needs of remote communities, by making available financial support from the Telecom Develop­ment Fund (TDF) upon request from commu­nity leaders.

Policy framework: key initiatives and issues

The MoCIT is responsible for providing the institutional leadership for the ICT sector.  It has the primary responsibility for developing policy and supervises the implementation of a number of key ICT projects, such as the Na­tional Data Center, the Optical Fiber Cable and the Copper Cable Network projects.

Afghan Telecom is presently a corporation that is 100 percent owned by MoCIT however it is being privatized (an 80 percent share is to be sold), reflecting the Government’s 2003 Tele­com and Internet Policy.  This will lead to the further expansion of the mobile phone net­work.

The Ministry’s Information Communication Technology Institute (ICTI) provides special­ized technical training and certification has launched a four year ICT bachelors program (the first class of 50 students have recently commenced studies).  Since 2003, it is also in the process of considering a transformation to public-private partnership in order to ensure that its curriculum meets the needs of the pri­vate sector (which has a huge demand for properly skilled workers).

The ICT Council is the primary forum for all stakeholders in the ICT sector.  It consists of all of government institutions that have ICT activi­ties and is open to all other institutions as they acquire ICT infrastructure and applications. The ICT Council is chaired by the First Vice President and its total membership is fully in­clusive of all interested parties, including the private sector, civil society organizations, and academia.  The National Assembly has become an important institutional player in the ICT sector, both in terms of policy and utilization.

The role of the private sector is central to this strategy.  A modern telecommunications sector, incorporating e-government initiatives wher­ever possible, will enhance the effectiveness and efficiency of the public sector.  By mobiliz­ing resources to build up the ICT sector within the public sector institutions, MoCIT will also be accelerating the development of ICT support capabilities of the private sector in Afghanistan, both through contracts and via participation in the policy processes of the ICT Council.

The ICT sector is Afghanistan’s biggest success story in terms of attracting private sector in­vestment, $925 million as of the end of 2007. This is expected to reach $1.5 billion by end 2010.  According to numerous studies this is by far the largest investment in the licit economy.  

Expected outcomes

The key expected outcomes in the Information and Communications Technology sector are; 

• Improved Enabling Environment 
• Improved Infrastructure with Fiber Optic and Copper.
• E-Afghanistan created
• ICT Literacy improved

It is expected there will be wide community acceptance of ICT facilities. Access to facilities will be expanded.  Government administration will be predictable and unbiased, in accord with all legislation. The role of the private sec­tor will be increased. ICT access will be gener­ally available in education institutions, includ­ing many primary and secondary schools. For detail information regarding outcomes refer to action plan and M&E matrices. For detail in­formation refer to Appendixes 3-National Ac­tion Plan and 4-Monitoring Matrix.

URBAN DEVELOPMENT

Role of the sector in ANDS:

The ANDS strategic vision and goal for urban development sector is to ensure increased ac­cess to improved services, and affordable shel­ter while promoting sustainable economic de­velopment as part of efforts to reduce urban poverty through encouragement of private in­vestment. The urban areas in the country will become hubs for economic growth with all ba­sic infrastructure and services. The manage­ment of urban areas will be improved through the devolution of authority and responsibility to municipalities in ways that improve urban infrastructure and services, reduce urban pov­erty and allow urban residents to live safe, healthy and productive lives and cities to grow and prosper.  Effective management of the rapid urbanization process will make a signifi­cant contribution to the recovery of the coun­try. Cities contribute to economic growth through their high productivity as a result of economies of scale and agglomeration, and by providing opportunities for the accumulation of capital, investment, trade and production. Urban investments create employment oppor­tunities and urban jobs account for a dispropor­tionate share of GDP. Urban growth can stimulate rural development through increase demand for food, markets for rural products, off-season employment for farmers, and remit­tances and provide opportunities to move goods and services in the region.  However, cities are often linked to increased violence, crime and insecurity.  Improving the urban environment, the supply of urban services, providing employment opportunities, utilizing the potential resources and improving the live­lihoods of the population will lead to im­provements in security.

The importance of effective management of the urban development process has been recog­nized in the Afghanistan Compact benchmarks: 

• Urban Development: By the end of 2010; Municipal Governments will have strengthened capacity to manage urban development and to ensure that municipal services are delivered effectively, efficiently and transparently; in line with MDG in­vestments in water supply and sanitation will have ensured that 50 percent of house­holds in Kabul and 30 percent of house­holds in other major urban areas will have access to piped water.
• • Energy: By end-2010: electricity will reach at least 65 percent of households and 90 percent of non-residential establishments in major urban areas, at least 75 percent of the costs will be recovered from users con­nected to the national power grid.  The Millennium Development Goals most rele­vant to the urban sector development include:
• Goal 7: By 2020 halve the proportion with­out access to safe drinking water and sani­tation. Significantly improve the lives of all slum-dwellers by 2020. Sustainable devel­opment to reverse the loss of environ­mental resources 

Current situation in the sector

Achievements: While investments in the urban sector continue to lag far behind actual needs across the country, there have been some achievements. The most important are as fol­lows:

• Water supply and sanitation: 2 million ur­ban residents (31 percent of the total urban population) have benefited from invest­ments in water supply and 12 percent from investment in sanitation in major cities be­tween 2002 and 2007.
• Up to 1.4 million people (20 percent of ur­ban population) have benefited from reha­bilitation of public works, with 250,000 (4 percent) benefiting from upgrading pro­grams
• In addition to legislative reforms, a pilot land tenure security project is underway in Kabul
• The Dehsabz City Development Authority has been established to facilitate the devel­opment of new city housing for up to 3 mil­lion people north of Kabul. Additionally, new small settlements (satellite townships) have been planned for 1 million people.

• Regional and city planning: strategic de­velopment plans are being prepared for 7 regional cities, while a city development plan for three major cities (Mazar, Jalala­labad, Kabul) and existing-Kabul plan is due for completion by mid 2008. 
• Urban policy: initiatives include a compre­hensive National Urban Program (NUP), a draft National Land Policy was submitted in 2007 for approval to the Ministry of Jus­tice.  And a draft of national building codes for construction has been developed. 
• Institutional reforms within MoUD, KM & IDLG (established in 2007) continue, along with investments in strengthening institu­tional capacity.
• Almost 5 percent of vulnerable families has been provided improved shelter in major cities. Private sector so far has made little contribution to the development of housing sector.
• Three conservation initiatives are under way in historic quarters of Kabul, Herat and Tashqurghan.
• • The Afghan Urban Water Supply and Sani­tation Corporation has been established as a quasi independent public entity. As of 2005 nearly a quarter of Afghanistan’s population lived in urban areas.  By 2015 it is estimated that almost a third of Afghans will be living in urban areas. Current needs include:
• • Urban Poverty: In 2002, one fifth of the ur­ban population was living below the pov­erty line. The NRVA (2005) study found that 28 percent of urban households per­ceive themselves to be food insecure, 31 percent fall below the minimum level of dietary energy consumption, 45 percent borrow money to purchase food, and 48 percent sometimes have problems satisfy­ing their food needs.  It is estimated that
• 4.95 million people inhabited informal set­tlements in 2006, suggesting that 68.5 per­cent of the urban population is living with­out security of tenure. 
• Water and Sanitary Conditions: In 2005, about 20-22 percent of urban households had access to safe drinking water, although the percentage varies significantly between urban areas.  The country’s total sanitation coverage is only 8 percent, (16 percent ur­ban and 5 percent rural as of 2002).  Few places in the world face such scarce and alarming water supply and sanitation cov­erage levels. The percentage of urban households using: (i) traditional covered la­trines and (ii) improved latrines, and (iii) flush toilets are about 67 percent and 15 percent, and 9 percent, respectively.  In Kabul city, 14 percent use a flush latrine, 2 percent are covered by a sewerage system. 

• Roads: About 61 percent of urban dwellers access homes through unpaved roads and about 25 percent through footpaths, includ­ing in Kabul. There are a number of challenges and con­straints facing the Sector:

• Low coverage of basic services and inade­quate public resources to meet growing needs
• A rapid pace of urbanization partly due to returning refugees and rural-urban mi­grants, leading to high population density
• Widespread urban poverty and limited access to productive employment
• A high proportion of informal settlements and associated problems
• Lack of capacity and coordination among urban sector institutions
• Limited scale of private sector investment in urban enterprises, facilities or services
• Lack of accurate data on which to base critical policy decisions
• Land security and titling: Absence of proper land registration system, Land grabbing, inadequate legal instruments and institutions
• Lack of available financial funds due to limited interest of donors in the urban sec­tor.

The Urban Sector Strategy incorporates feed­back, proposed projects and comments from the Sub National Consultations (SNCs) and is a response to the people’s needs and develop­ment goals. Key urban infrastructure needs emerged from City Development Pland (CDPs) and PDPs-related consultations as well as CAP (City Action Plans based on the city profiles report) have been integrated into the strategy, reflecting the range of sub-national develop­ment needs

Key components of the urban sector strategy

The objective is to ensure increased access to improved basic infrastructure and services, and affordable shelter while promoting sustainable economic growth.  The key to the urban sector development strategy is a national urban policy that decentralizes decision making to the local level, encourages participatory processes based on urban community councils or other neighborhood organizations, adopts a market based approach that encourages private sector activity and that establishes a regulatory framework focused narrowly on environmental protection 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) Urban Infrastructure & Services (for details of pro­gram refer to volume II). 

Urban Governance: The Ministry and Mu­nicipalities will be restructured and jointly work to prepare city action strategies and struc­ture plans for Kabul and the 34 major urban areas, with special attention to local area plans for selected, fast growing areas, strengthen ur­ban and municipal governance, finance and management. This involves establishing an enabling environment where stakeholders par­ticipate in municipal elections and residents can have a say in policy formulation and the design of implementation activities.  This will be done through democratically elected Com­munity Development Councils (CDC) at the neighborhood level, comprising clusters of households, and Area Development Councils (ADC) at the sub-urban district level. 

Finance and Management: Steps will be taken to increase revenue generation capacity and improve management by upgrading ac­counting and budgetary practices and linking the capital budget to the planning process. Re­view existing revenue base and assets and de­velop action plans for revenue improvement plans to include widening revenue base, im­proved collection rates, user charges, cofinancing or co-production with users, property or sales taxes, intergovernmental transfers, municipal borrowing, mobilization of local government resources through loan guaran­tees. Develop mechanisms to increase local revenues to finance part of the costs of im­proved urban service.  Promote public partner­ships with the private sector and NGOs to more efficiently provide urban services or meet urban needs. The draft Public Finance and Ex­penditure Management Law will be enacted. 

Urban Development and Land Manage­ment: The Government will prepare a national spatial 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 de­velopment regulations; (iii) effective land man­agement and information systems and a na­tional settlements plan will be put in place; (iv) improve tenure security gradually through im­proving infrastructure and services; (v) clarify property rights, providing temporary certifi­cates, addressing environmental and planning concerns; (vi) land management laws will be passed with the objective of preventing unlaw­ful occupation of government and private land for economic (and political) gains; facilitating land registration and adjudication; and ena­bling government acquisition of private land for public purposes; (vii) improve land man­agement through steps to register land titles;

(viii) develop a system for settlement of land disputes; (ix) develop a computerized (GIS) land management system; (x) cadastral surveys and reconciliation of cadastre with actual con­ditions; (xi) linkage of cadastre to a municipal property tax system and with the land registra­tion data; (xii) linkage to a planning and devel­opment control system; (xiii) create new ser­viced and un-serviced land in connection with new urban plans that identify real demand for serviced land at specific locations within indi­vidual towns and cities and in all urban areas.

Standards of servicing will be based on af­fordability of target groups.  Priority will be given to sites and service schemes, an approach that has proven effective in many countries. The strengths of these schemes are that they can: cater to various household affordability levels and needs through various planning, servicing and technical standards; provide ba­sic infrastructure and services relatively effi­ciently; permit progressive development through provision of a sanitary core (known as an “embryo” housing unit).  Sectoral agencies will consider other options for providing de­velopable land including: land-sharing, land readjustment, land pooling, and infill devel­opment.

Land security will be improved through map­ping and land surveying of communities, ten­ure formalization, and land registration.  If in­formal settlements are recognized and pro­vided with tenure security, they are more will­ing to invest their own financial and other re­sources in improving the community and their houses. Moreover, they can use the title as col­lateral.  Security of tenure may include formal and informal arrangements, from full land title to customary rights.  Although the tenure le­galization approach is popular, it is also possi­ble to regularize without any policy interven­tion to legalize tenure.  The regularization strategy focuses on physical interventions, such as infrastructure, amenities provision, and health and education services.

The Government, through the Dehsabz City Development Authority, will continue to exam­ine the potential for the development of a new city on the Dehsabz plain north of the existing Kabul City. As part of the Dehsabz project, the Barikab area located to the north of the new city will become a private commercial agricul­tural zone designed to not only supply many of the needs of Dehsabz, but to become a center for the cultivation of exportable agricultural products. The development of this urban cen­ter will be undertaken primarily by the private sector. The extent of the Government’s direct role will generally be limited to planning, in­vestment in some of the basic urban infrastruc­ture and facilitating private commercial in­vestment. This project will be largely finan­cially self-sustainable and become a center for new investment in private agro-based and ser­vice industries.  Most of the land in Dehsabz belongs to the Government hence, the sale and lease of land will generate revenues needed for investment in the new city and for the pressing reconstruction and infrastructure development needs of Kabul.

Housing: New housing will be produced and improved through: (i) public sector housing production (ii) support to informal and small scale housing producers – the ‘peoples housing process’; (iii) support to research and develop­ment of appropriate building materials and technologies; (iv) upgrading the skills of con­tractors and laborers; (v) supporting entrepre­neurs to upgrade or set up building compo­nents manufacturing units; (vi) support to pri­vate sector production, particularly of rental housing. 

Housing programs will consider the particular needs of various groups such as civil servants, returnees, Kuchis, IDPs, widows and other vulnerable groups.  Housing finance will be provide – for purchase, rehabilitation, and con­struction of new housing – through: integrating housing finance; stimulating private banks to increase mortgage lending to low-income households, through, for example, mortgage guarantees; initiating community mortgage schemes; lowering mortgage interest rates; re­ducing collateral and down payment require­ments; introducing flexible repayment schemes. This will enhance purchasing power of urban inhabitants and attract private in­vestment in housing programs.  This will lead to a system of affordable land and housing and assured cost recovery for the investors.

Housing subsidy programs will be provided for very low income households, including both owners and renters. The following op­tions will be examined: direct loans to purchase an existing or construct a new house; govern­ment guarantees of loans made by private sec­tor lenders, thus enabling households to pur­chase houses without a down payment; mutual self-help housing programs which makes homes affordable to groups of households by valuing to work, or "sweat equity", by each homeowner; portable rent subsidies that give eligible households a choice about where to live, including market rate rentals subsidies directly to the property owner who then ap­plies the subsidies to the rents that are charged to low-income tenants.

Urban Infrastructure and Services: A con­certed effort will be made to improve infra­structure including roads, footpaths, storm drainage, water supply, electricity, street lights, sanitation, and solid waste collection.  Social infrastructure will be improved, including open space, children’s’ parks, community and health centers, schools, and markets.  Support will be provided to house construction and re­habilitation, but only in line with an approved plan and with careful consideration given to levels of cost recovery.  Steps will be taken to rehabilitate and extend water supply and sani­tation services, giving priority to rehabilitating existing areas to an adequate level of service before extending service to new areas.  Exten­sions to new areas will be done in connection with an approved plan for new settlement de­velopment. Improve solid waste management through waste minimization (reduce, reuse, and recycle) and improved collection, transport and transfer, and disposal alternatives.  Con­sideration will be given to privatization, com­munity management, affordability and cost recovery. Improve urban transportation man­agement through improvements to circulation and road networks, transportation facilities and services by function, type, capacity, and condi­tion, bus system, bicycles and pedestrians, transportation demand management including on- and off-street parking system management.

The most significant heritage areas will be identified and a detailed inventory of heritage assets will be undertaken. This will be done in coordination with NGOs already working on the preservation of heritage areas.  Conserva­tion plans for each heritage area (rehabilitation and preservation) will be developed and im­plemented through efforts to raise public awareness, economic incentives to private owners, tourism development, legal protection, public investment, and outreach to interna­tional bodies.

Key steps to improve and monitor progress with urban development will include the iden­tification of indicators on which strategic, tacti­cal, and operational decisions will be based; the establishment of GIS and databases to manage information; and the improvement of analytical routines and creation of the creation of web-based information systems. The priority focus will be on the establishment of land informa­tion and registration systems in municipalities.

Expected Outcomes

The following outcomes are expected to be achieved in this Urban Sector Strategy in com­ing five years:

Afghanistan National Development Strategy (ANDS)

• Strengthened municipal capacity to man­age urban development and deliver ser­vices.
• Improved institutional coordination and monitoring of key urban indicators
• • Increased access to basic services for urban households50:
  • o Kabul: 50 percent of households with piped water, sanitation, drainage and waste collection; 30 percent coverage for programs of hygiene promotion
  • o 30 provincial towns/cities: 30 percent of households with piped water, sani­tation, drainage and waste collection; 10 percent coverage of hygiene promo­tion programs.
  • Phased regularization of tenure for 50 per­cent of households in informal settlements, in parallel with upgrading of public ser­vices and facilities, as well as new urban area development.
  • Increased availability of affordable shelter, with 50 percent increase in numbers of housing units and 30 percent increase in area of serviced land on the market, cou­pled with access to affordable finance.
  • Improved urban environment with green areas and open spaces. 

For detail information, refer to Appendix 3­National Action Plan and 4-Monitoring Matrix.

MINING

Role of the sector in ANDS

The ANDS strategic vision and goal of the min­ing sector is to establish Afghanistan as an at­

⁵⁰ Note, these targets are also identified in the Water Sector Strat­egy.

tractive destination for investment in survey, exploration and development of mineral re­sources. The intention is to encourage legiti­mate private investment in the sector so as to substantially increase government revenues, improve employment opportunities and foster ancillary development centered on mining ac­tivity.  Implementation of the strategy will help to develop effective market-based economic policies, promote and regulate sustainable de­velopment of minerals and ensure that the na­tion’s geological resources are progressively investigated and properly documented.  This strategy supports large and small scale mining for immediate and sustainable economic gains. For mining and minerals, the emphasis is on the exploration, extraction and delivery to market; for hydrocarbons the emphasis is ex­ploration and exploitation.

Experience during the period 1987 to 2000 has demonstrated that if governments address is­sues such as: up-dating the mineral policy and strategy; amending the mining legislation (par­ticularly in respect of mining rights); up-dating the mining taxation regime; reinforcing gov­ernment supervisory institutions; building greater capacity (including good governance) within institutions; and developing a reliable and comprehensive scientific database; the country can attract significant amounts of in­vestment in this sector. Employment and bene­fits from opportunities for skill improvement will be substantial.  Most mining related activ­ity is expected to occur in isolated areas where unemployment is high. In addition, the large contribution that the mining sector will make to government revenues will increase the avail­ability of social services, such as education and health services, which will contribute to in­creased security and stability.

Economical and Social Development   

The Afghanistan Compact Benchmark calls for an enabling regulatory environment for profit­able extraction of Afghanistan's mineral and natural resources to be created and for the in­vestment environment and infrastructure to be enhanced so as to attract significant domestic and foreign direct investment by end 2010. 

Current Situation

While geological studies of Afghanistan have been conducted over the last 50 years, 90 per­cent of the territory of Afghanistan has not been systematically studied despite highly promising findings.  A geological map of Af­ghanistan has been prepared and over 400 mineral deposits have been identified includ­ing copper, coal and a number of small and medium deposits including gold, silver, plati­num, zinc, nickel, emerald, lapis, ruby, kuznite, tourmaline, fluorite, chromite, salt, radioactive elements and numerous deposits suitable for construction materials.

The availability of oil and gas fields in Af­ghanistan has been well known for almost 50 years.  Russian equipment was used to explore the first fields. Subsequently, gas fields in Yateem Taq, Khwaja Gogerdak, Khwaja Bolan, Zigdeli and Bayan of Ghor province as well as outskirts of Sheberghan district of Jowzjan province have been identified.  Afghan and Russian experts identified a total of 500 struc­tures of which 67 were extended with explora­tory approaches.  Known gas reserves have a capacity of 180 billion cubic meters and an ex­ploitation capacity of 120 billion cubic meters. Sar-e-pul oil reserves have been identified

(44.5) million tons with the extractable reserves of 14.5 million metric tons.  During the past few years, five oil and gas fields have been identi­fied.  More work has been carried out in the vicinity of Amu Darya, and Afghan-Tajik ba­sins.

The first major investment has recently been announced for developing the Aynak copper deposits in central Logar province, an almost $3 billion investment.  The selection of the company was made after an extensive evalua­tion of tenders from nine major international mining companies.  There will be important indirect benefits from this investment.  The company will establish a power station with 400 mega watt capacity at a cost of over $400 million and will construct a town for the work­ers of the company.  The company will also establish a railway route from Hairatan port in northern Afghanistan to Torkham in eastern Afghanistan.  Ongoing and planned activities include the: (i) fertilizer and power plants at Balkh with capacity of 110,000 tons of urea each year, and 48 mega watt power per hour;

(ii) Ghori cement factory with capacity of 100,000 tons per year; (iii) Jabal Seraj cement factory with maximum capacity of 30,000 tons per year; and (iv) Herat cement factory and Ghori 2 with capacity reaching 200,000 annu­ally.

In July 2005 a Minerals Law was approved by the Government. In December 2005, a Hydro­carbons Law was also approved. Regulations are being drafted which may be finalized dur­ing 2008.

Some of the most immediate needs of the sector are being addressed as part of a $30 million project supporting sustainable development of natural resources.  The main purpose of this project is to assist the Ministry of Mines to im­prove its capacity to effectively transform the sector so that it is primarily operated by the private sector and contributes to sustainable economic growth through tax revenues, em­ployment, rural development and economic spin-offs.  The major institutional strengthen­ing objective of the project will be to assist MoM to make the transition from a producer of minerals and other commodities to a policy making institution that will facilitate the opera­tion of private firms within the industry.  It will also strengthen financial and budgetary proce­dures in the ministry, assist with the internal geological survey work being done, assist in identifying unlicensed mining operations, and attempt to enforce improved and safer work mining work practices.

The landlocked nature of Afghanistan and the current lack of rail links represent a barrier to the movement of large bulk commodities. Se­curity difficulties limit mining in some areas, principally in the south.  Roads, energy and water are all lacking.  The danger of unex­ploded ordnance makes mining difficult. There is a shortage of trained labor.  Most of the state-owned mining enterprises are not operating on a commercial basis.  The North Coal Enterprise has been privatized and is operating success­fully while Mineral Exploitation Enterprise and Afghan Gas are about to be privatized. 

This Sector Strategy incorporates feedback and comments from the Sub National Consultations (SNCs). A key finding was the lack of informa­tion available to local communities on mine opportunities. There is also reflected a lack of market-based thinking and considerable expec­tation for the Government to provide sector support. It should be noted that investments in the mining sector are primarily commercial decisions that should be taken by the private sector. Projects identified and prioritized dur­ing the SNC process include the extraction of marbles, precious and semi precious stone mines in Anaba and Shotol districts of Panjshir province. The Ministry of Mines has been identified as the responsible agency for ena­bling this development.

Policy framework: sector strategy

The sector strategy is geared to supporting de­velopment through private firms engaged in a mix of large and small operations.  The private sector will operate within a legislative and regulatory framework designed to facilitate investment and maintain a competitive sector. While there will be some public sector activity, these will be required to operate under the same legislative and regulatory framework as the private sector.  The focus will be on using Government projects or competitive bidding for exploration contracts to better determine the extent of natural resources in Afghanistan; on the establishment of an improved, transpar­ent and capable management system for the effective extraction of mines and natural re­sources; and the establishment of a regulatory environment that facilitates local and interna­tional investment in the mining sector.  

The key reform will involve the refocusing of the Ministry of Mines from one involved in production to one that is primarily concerned with the creation of an enabling environment that requires mining companies to operate ef­fectively and responsibly in accordance with the law. Mining legislation will be passed and implemented. Planned actions include explora­tion and exploitation of mineral resources by the private sector or MoM; capacity building programs; successful implementation of the Aynak project; development of long term geo­science projects; and a reconstruction program including equipping the laboratory and techni­cal sections of the ministry.  Steps will also be taken to raise the production level of gas and increase utilization of mineral and gas re­sources; encourage expansion of the cement industry and increase power supplies by rais­ing the production of mineral resources, oil, gas and underground water; and increase the pro­duction of urea. The main programs of the sec­tor are (i) Implementing PRR (ii) Legislative affairs completion (iii) A comprehensive geo­logical study follow- up program in the coun­try (iv) Exploration and exploitation of mineral resources by private sector or geology survey of MoM (v) Exploration, extraction and exploi­tation program of gas and oil fields in the coun­try by the government or private sector (vi) Capacity building (vii) Long term geo science research (viii) Reconstruction program, equip­ping of laboratory and technical section of the ministry (for detail refer to ANDS Volume II).

Priority Projects: Top priority projects, in order of priority are:

• completing and implementing the hydro­carbons regulations by Ministry of Justice;
• finalizing of Afghanistan gas law (down­stream);
• completing the second round of PRR in the MoM;
• providing background information and invite bidding for three blocks of oil and gas in the northern provinces aimed at ex­ploration and exploitation.

Expected outcomes

Given the known mining resources that are available, implementation of this strategy will lead to considerable investment in small and large projects.  Mining will play a major role in achieving the high rates of economic growth envisioned in the ANDS and increased gov­ernment revenues.  Increased revenues will be derived from mining royalties, taxes and cus­toms revenues on largely private operations as well as through licenses, permits and other taxes charged as part of the bidding process. Mining projects will generate employment op­portunities for thousands of citizens, in remote areas where alternative legal productive oppor­tunities are few.  Mining firms will increasingly enter into the formal part of the economy. They will operate within a legislative frame­work that is accepted and impartially adminis­tered by MoM.  Mining will bring with it access to advanced technology that can be of benefit in many areas of the economy.  There will also be major indirect benefits from mining, includ­ing the construction of roads, bridges, hous­ings, health clinics, mosques, playgrounds, schools and parks (for detail information refer to Appendixes 3-National Action Plan and 4­Monitoring Matrix).

HEALTH AND NUTRITION

The ANDS strategic objective for this sector is to improve the health and nutrition of the peo­ple of Afghanistan through quality health care service provision and the promotion of healthy life styles.  Afghanistan ranks towards the bot­tom on global measures of health and nutrition. Improving health and nutrition is vital to im­proving the livelihood and well being of the Afghan people and to achieving the goals of the MDGS and the Compact which include: 

• By end-2010 the Basic Package of Health Services will be extended to cover at least 90 percent of the population; 
• By end-2010 maternal mortality will be re­duced;
• By end-2010 full immunization coverage for infants under-5 for vaccine-preventable diseases will be achieved and their mortal­ity rates reduced by 20 percent;
• Between 2003 and 2015 reduce the under-five mortality rate by 50 percent, and fur­ther reduce it to one third of the 2003 level by 2020;
• Between 2002 and 2015 reduce the mater­nal mortality ratio by 50 percent, and fur­ther reduce it to 25 percent of the 2002 level by 2020;
• To have halted and begun the reverse the spread of HIV/AIDS by 2020;
• To have halted by 2020 and begun to re­verse the incidence of malaria and other major diseases.

For more details refer to the Appendices I and II (National Action Plan and Monitoring Matri­ces).

Current Situation

Afghanistan’s health indicators are near the bottom of international indices, and are far worse, in terms of their health, than any other country in the region. Life expectancy is low, infant, under-five and maternal mortality is very high, and there is an extremely high prevalence of chronic malnutrition and wide­spread occurrence of micronutrient deficiency diseases. For more information refer to volume

II.

Achievements: Substantial improvements in the health system and the health status of the people of Afghanistan have been achieved in recent years.

• Expansion of primary health care services. The percentage of the population living in districts where the Basic Package of Health Services is being implemented has in­creased from 9 percent in 2003 to 82 per­cent in 2006. The percentage of people in Afghanistan who live within two hours walking distance from a primary health care facility was approximately 66 percent in 2006.
• Increased access to female health care workers. The percentage of primary health care facilities with at least one female doc­tor, nurse or midwife has increased from 26 percent in 2004 to 81 percent in 2007.
• Increased use of reproductive health ser­vices in rural areas.  Between 2003 and 2006, use of a modern family planning method among married women in rural Afghanistan increased from 5 percent to 16 percent, receipt of skilled antenatal care by pregnant women increased from 5 percent to 32 percent and use of skilled birth atten­dants for assistance with delivery increased from 6 percent to 19 percent.
• Increased coverage of child immunization in rural areas. Between 2003 and 2006, cov­erage of BCG vaccine among children 12-23 months of age to protect against tuberculo­sis increased from 57 percent to 70 percent and receipt of three doses of oral polio vaaccine increased from 30 percent to 70 percent.
• The Afghan Compact High Level Bench­mark for reduction of infant mortality has been reached ahead of schedule. From a high baseline level of 165 infant deaths per 1000 live births, a 20 percent reduction in infant mortality was targeted by 2010. With the infant mortality rate estimated by the 2006 Afghanistan Health Survey to be 129 per 1000 live births, a 22 percent reduction from the baseline level has already been achieved.

• The Afghan Compact High Level Bench­mark for reduction of under-five mortality has been reached ahead of the schedule. From a high baseline level of 257 under-five deaths per 1000 live births, a 20 percent reduction in under-five mortality was tar­geted by 2010. With the under-five mortal­ity rate estimated by the 2006 Afghanistan Health Survey to be 191 per 1000 live births, a 26 percent reduction from the baseline level has already been achieved.

There are a number of challenges and con­straints that must be addressed if continued progress is to be made, including: 

• Inadequate financing for many of the key programs;

• Reliance on external sources of funding;
• Inadequately trained health workers;
• Lack of qualified female health workers in rural areas;
• Dispersed population, geographical barri­ers and a lack of transportation infrastruc­ture
• Low levels of utilization for certain health services, especially preventive services;
• Variable levels of service quality;
• Insecurity which makes program imple­mentation difficult, recruitment and reten­tion of staff, expansion of service coverage and monitoring by the provincial and cen­tral levels;
• Lack of effective financial protection mechanisms for poor households to receive the care they need without experiencing fi­nancial distress; 
• Lack of mechanisms for effective regulation of for-profit private sector clinics and pharmacies.

Policy framework: sector strategy

The strategy is for the MoPH to maintain and strengthen its stewardship role for the Health and Nutrition Sector.  For that purpose, a new organizational chart and programmatic struc­ture have been defined, enabling a comprehen­sive approach to health service delivery, with primary health care services, hospital services, disease control, nutrition and reproductive and child health integrated under the same Health Care Services Provision General Directorate. The overarching priority policy of the MoPH has been to obtain nearly universal coverage of a standard Basic Package of Health Services (BPHS) through a ‘contracting out’ initiative, to create strong linkages with the hospital sector through an effective referral mechanism. However, the MoPH will also be responsible for creating an enabling environment for ex­pansion of the Health Care System beyond the provision of the BPHS.

The MoPH will focus on the following policy areas:

• Leadership at all levels in policy formula­tion and translating policies into concrete actions to ensure that actions are geared toward attaining the specified goals;
• Conducting monitoring and evaluation of the implementation of health care services in order to ensure quality, equity and effi­ciency of the health system; 
• Coordinating the contributions of all na­tional and international agencies involved in the Health and Nutrition Sector, uphold­ing standards and mapping services to avoid duplication and gaps; 
• Decentralization of appropriate responsi­bility and managerial autonomy to the provincial level;
• Increase the active participation of com­munities in the management of their local health care services through developing strong, active participatory links with shura (community committees) and train­ing and supporting community health workers;
• Developing legislation and regulations to facilitate growth and assure quality in the private sector provision or civil service provision of health care services. For more information refer to the Volume II.

The Government will give high priority to the following projects in this sector for the next five years:

CDC and Non-CDC Program

Primary Health Care Program

Hospital Care Program

Reproductive Health and MCH Pro­gram

Policy and Planning Support Program

Human Resource Development and Research

Pharmaceutical Management Support Program

The Health and Nutrition Strategy comprises eight core programs (Refer Appendix I) – four related to the Health Care Services Programs (Primary Health Care Program; Hospital Care Program; Disease Control and Nutrition Pro­gram; and RH and Child Health Program) and four related to the Institutional Development program (Policy and Planning Support Pro­gram; HRD and Research Program; Pharma­ceutical Management Support Program; and Administrative Program).  In addition, the ef­forts to stimulate the development of ‘for profit’ private sector provision of health care services can be considered a third priority component of the Health and Nutrition Strat­egy.

Health Care Services Programs: Primary Health Care and Hospital Care Programs: The MoPH will ensure the provision of a compre­hensive referral network of secondary and ter­tiary hospitals that provide, as a minimum, the Essential Package of Hospital Services and do so within a framework of agreed upon, to set standards to improve clinical and managerial performance.

Pharmaceutical Management Support Program: MoPH will also act to ensure the accessibility, availability, safety, efficiency, ef­fectiveness and affordability of medicines, through several means, including establish­ment of a functional drug quality control labo­ratory at the central level. Establish and use standard international level procurement, stocking and logistics systems to enable inter­national contracting, bidding, stocking and transportation. MoPH will also establish, main­tain and further develop an affordable, useful and functioning communications network us­ing modern information and technology sys­tems at both national and provincial levels.

Disease Control and Nutrition Program:

MoPH will establish and maintain a surveil­lance system (Disease Early Warning System) to respond to epidemics and other risks to hu­man health as well as responding to health emergencies in a timely manner.  This will in­volve implementing actions needed to better control communicable diseases through strengthened management of integrated, cost-effective interventions for prevention, control and treatment. The prevention and manage­ment of outbreaks will also be strengthened further through raising public awareness and responding more rapidly through the Disease Early Warning System.  A key action will be the development and institutionalization of a Comprehensive Health Preparedness Plan at the national and provincial levels and allocate appropriate resources for responding to natural and man-made emergencies in an effective and timely manner.  This plan will set out the pro­grams needed to address key emerging public health problems, such as illicit drugs and their use, smoking, HIV/AIDS, blindness, and road traffic accidents.

MoPH will also work to increase awareness and understanding of potential adverse health consequences of environmental factors, such as poor water supplies; lack of adequate sanita­tion facilities; inadequate rubbish disposal and collection; health facility waste; poor food han­dling and hygiene; and high levels of air pollu­tion. MoPH will also oversee programs to re­duce malnutrition of all types, including reduc­tion of micronutrient deficiency diseases, through integrated and coordinated program­ming and promotion of food and nutrition se­curity for all by adopting a public nutrition ap­proach involving multi-sectoral interventions that address the underlying causes of malnutri­tion, including food insecurity, poor social en­vironment, and inadequate access to health care services. 

This program will also develop a flexible range of integrated mental health support and care services at all levels of the health system. Par­ticular attention will be given to post-traumatic counseling through the training of more com­munity health care workers and psychologists and their placement in accessible community health facilities; and ensure that people with temporary or permanent disabilities have ac­cess to both general health services and special­ized services, and detect and treat disabilities early through more appropriate diagnosis of newborn and small children with disabilities.

Reproductive and Child Health Program:

High priority will be given to ensuring that development partners deliver the different components of reproductive health as an inte­grated package, and increase accessibility to, and utilization of, quality reproductive health care services, including antenatal care, intra­partum care, routine and emergency obstetric care and post partum care, counseling and modern family planning services.  This will focus on reducing child mortality, morbidity and disabilities and improve child growth and development by promoting exclusive breast feeding, expanding implementation of inte­grated management of childhood illnesses, en­hancing the control of vaccine preventable dis­eases and addressing adolescent health through school health programs. For more in­formation refer to the Volume II

Institutional Development Programs: Pol­icy and Planning Support Program: The na­tional health care system will be organized and managed to reduce inequity and improve effi­ciency and accountability at all levels. Steps will be taken to improve capacity at the provin­cial level and to decentralize responsibilities as provincial capacity is established. In addition, efforts will be made to enhance evidence-based, bottom-up and participatory strategic planning in all levels of the health system through development of annual, business plans with costs in all departments, strengthened links between the different levels of the health system, implementation of the National Moni­toring and Evaluation Strategy and translation of recommendations from research and practi­cal experiences to policy formulation and health planning.  

MoPH will enhance coordination between the MoPH and partner organizations through for­mal and informal mechanisms and facilitate stronger donor coordination, especially when undertaking assessment and planning missions and in supporting health priorities. MoPH will also work with both donors, partners and the private sector to coordinate the delivery of health care services by setting and distributing policies, standards and guidelines, convening the Consultative Group on Health and Nutri­tion and task forces to work on specific techni­cal issues under the leadership of the MoPH and further develop Provincial Public Health Coordination Committees within each prov­ince.

MoPH will also review and develop relevant legal and regulatory mechanisms, such as ac­creditation systems, that govern health and health related work in the public and private sectors. The goal of the regulatory system will be to facilitate competitive and cost effective provision of services, carrying out its broader mandate to not only contract out service provi­sion to civil and private groups but also to fa­cilitate growth of the ‘for profit’ sector.  This being said, MoPH will also review, develop and enforce relevant legal and regulatory in­struments that govern health and health related work to safeguard the public and ensure ser­vice quality. MoPH will work to identify, en­courage, coordinate, and review and in some cases conduct relevant, useful research that can assist evidence-based decision making and the formulation of new policies, strategies and plans. One area of resource is with respect to facilitating the growth of the private sector providers operating on their own outside the framework of contracts from MoPH.

Human Resource Development, Research and Administration Programs: The MoPH will work closely with the Civil Service Com­mission to implement the National Priority Re­form and Restructuring competitive recruit­ment processes for placing the most highly qualified Afghan health professionals in estab­lished posts throughout all levels of the health system. Efforts will be made to promote a cul­ture of quality throughout the Health and Nu­trition Sector, especially in health facilities, through leadership and good examples set in day-to-day work, strengthen the use of quality standards, and promote frequent supportive-supervision. A Quality Assurance Committee has been established to promote improvements in service within public sector facilities. Once effective regulatory mechanisms are developed and can be enforced, the MoPH will address quality issues in the private-for-profit sector, especially pharmacies and drug sellers.  A comprehensive approach to human resource development will be developed to produce, deploy and retain where they are needed an appropriately trained health workforce possessing the variety of skills needed to deliver affordable, equitable and quality health care services. Further develop and maintain a health care worker registration system and a national testing and certification examination process (in collaboration with the Ministry of Higher Education) will be established standards for accreditation of training institutes and pro­grams. There will be a significant Expansion of the community midwife training program model to other cadres of health workers, with particular emphasis on recruiting, training and deploying couples to work together in health facilities in their community after graduation. For more information refer to the Volume II and Appendix II, National Action Plan Matrix.

Health Care Financing: The MoPH will un­dertake health advocacy to increase funds and resources to the health sector, ensure spending is in line with priorities and coordinated across sectors, strengthen transparency in the alloca­tion of financial resources and financial man­agement, strengthen coordination of different sources of funding, and monitor different mechanisms of financing the delivery of ser­vices for their cost-efficiency and acceptability. MoPH will also coordinate closely with the Ministry of Finance on the National Develop­ment Budget, the development of mechanisms to improve total public expenditure from inter­nal and external resources, the development of alternative health care financing.  Work under­taken on facilitating private sector growth in the sector will also be used to explore the po­tential costs or savings from efforts to facilitate such growth or from the budget savings be­cause of such growth

Rule of Private Sector and Civil Society:

Through the Basic Package of Health Services, the contracting out initiative, and the focused development of the MoPH’s ability to exercise the stewardship function, highly effective part­nerships with non-profit private sector agencies have been achieved. Strategic actions related to the private sector include: (i) continuing the effective partnership with non-governmental organizations in the health sector (ii) further developing the MoPH’s capacity to establish policies, strategies and plans, monitor perform­ance in delivery of health services and coordi­nate diverse actors from the public and private sectors working within health and nutrition; and (iii) developing regulatory mechanisms for engaging the for-profit private sector. Many of the later issues have been discussed in describ­ing earlier programs.

Civil society plays a role in the delivery of health services and in the interaction between government and the population in determining health needs and priority areas. This strategy has been designed to specifically target the health and nutritional needs of the most vul­nerable groups in Afghanistan. Civil Society groups will play a key role interacting between all players to ensure this happens. Recognizing that transparency and accountability are essen­tial in order to attract resources, and aware that in a post-conflict environment many well-intentioned governmental and non­governmental partners tend to impose and ar­range for the implementation of programs of their own design, the MoPH has pursued a strategy of close coordination with all actors in the health sector. A Consultative Group for Health and Nutrition that includes donors, ma­jor NGOs, ISAF, UN agencies, and other line ministries meets regularly to review recent de­velopments in the health sector and to contrib­ute to making policies and suggesting pro­grams for the future. For more information re­fer to the volume II

The Sub-national Consultation (SNC) process of the ANDS has successfully involved the sub-national administration of the sector. It has strengthened the sense of cohesion between the central MoPH and the provincial public health departments. The MoPH’s evaluation criteria for the SNC proposals seek equity by looking at the depth of poverty and vulnerability of the population to be served. It takes into account health indicators of mothers and children, utili­zation and availability of the health services in the area of concern, and availability of funds:⁵¹

• the proposals that are on-going and/or to be implemented with the current funds;
• the proposals that are included in the MoPH Construction Plan and to be imple­mented when fund is available;

• the proposals that are considered in the HNSS timeframe and implemented when fund is available; and
• the proposals that have to be discussed in detail with the MoPH because they are not adhering to the evaluation criteria, collid­ing with the HNSS strategies and/or du­plicating the efforts and inputs of the MoPH and its partners.

The MoPH acknowledges that the SNC is an opportunity for all the stakeholders in the sec­tor to create more dialogue and thus refine the route towards the accomplishment of the HNSS.

⁵¹ While maximizing the number of beneficiaries, the MoPH seeks equity by looking at the scientific data on topography, depth of poverty and vulnerability of the population to be served for, health indicators of mothers and children in particular, utili­zation and availability of the health services in the area of con­cern, availability of funds and so forth. By doing so, the propos­als are categorized according to four criteria.

Private Sector ‘For Profit’ Health Care Provision: In addition to the contractual ar­rangements with NGOs and Private Sector groups to provide MoPH service packages, mechanisms will be developed by which ‘for profit’ private sector providers of medical and hospital services can be supported by Govern­ment. This reflects the realization that while public funding for many social services such as education and health is necessary, ‘for profit’ private sector provision may be more efficient. In many countries, private sector provision has developed to cover the needs of a significant proportion of the population seeking quality education and health care.  These ‘for profit’ private sector providers have emerged despite not have any access to public funding.  As part of the ANDS, an effort will be made to foster competition between public sector providers, public sector contractors and ‘for profit’ private sector operations.  Communities or individual consumers who feel they can get better service from the ‘for profit’ private sector providers should not lose their claim on public funds just because they make this choice.  Voucher schemes and/or direct public sector payments for approved services provided by accredited ‘for profit’ private sector providers will be used to encourage this competition.

Expected Outcomes

The key expected outcomes in the Health and Nutrition sector are:

• Increased quality of health care services; 
• Increased access to health care services;

• Effective Reproductive and Child health system; and
• Increased competition amongst health care providers.

EDUCATION

Role of the Sector in ANDS

The ANDS strategic vision for this sector is that regardless of gender, ethnicity, socio-economic status or religious affiliation, all Afghans will have equal access to quality education to en­able them to develop their knowledge and skills and thereby maximize their potential. An education sector that engenders a healthy workforce with relevant skills and knowledge is a key to long-term economic growth.

Over the last six years the sector has experi­enced a number of major achievements, nota­bly in terms of enrollment rates.  There are to­day more than six million children, youth and adults receiving education.  Communities have demonstrated their desire for a better future for their children by sending them to school in their millions.  Tens of thousands of youth and adults, both female and male attend literacy classes and vocational training programs. Households are making large personal and fi­nancial sacrifices to provide an education for their children.  However, much remains to be done. This strategy outlines the Government’s priorities for education that will facilitate the development of an education sector from which students will emerge literate, numerate and technologically proficient.  

Access to education is enshrined in the consti­tution, which states that:

education “is the right of all citizens and offered free of charge in State institu­tions….and that the State is obliged to de­vise and implement effective programs for a balanced expansion of education all over Afghanistan” (article 43).

The education sector in Afghanistan comprises three sub-sectors:  (i) Primary and Secondary Education, which includes general, Islamic and technical/vocational education, from Grades 1 to 14; (ii) Higher Education for all tertiary edu­cation; and (iii) Skills Development that encompasses literacy and technical vocational education/training 

The Millennium Development Goal for the sec­tor is that by 2020 all children in the country – boys and girls alike – will be able to complete a full course of primary education. A set of me­dium term benchmarks (to be met by the end of 2010) identified in the Afghanistan Compact has guided the development of strategies for each of the sub-sectors.

The Afghanistan Compact Benchmarks for the sector is net enrolment in primary schools for girls and boys will be at least 60 percent and 75 percent respectively; a new curriculum will be operational in all secondary schools; the num­bers of female teachers will be increased by 50 percent; 70 percent of Afghanistan’s teachers will have passed a competency test and a sys­tem for assessing learning achievement will be in place”. The total number of students en­rolled in universities will be 100,000 of which at least 35 percent will be female”.150, 000 men and women will be trained in marketable skills through public and private means,

The Government has set itself a target to enable at least 1.8 million Afghans to attain demon­strated literacy by 2010, and ensure that at least 60 percent of the learners are females, members of minority groups, nomads or persons with disabilities.

Expected Outcomes: The overall education system agreed outcomes include an increase in the literacy rate, improved quality of education, an expansion in the capacity of the education system to absorb more students (particularly female students), equal access to education for all, improvement in opportunities and quality for Higher Education, expanded capacity and improved quality of vocational education and skill development, improved conditions for sport, improved and expanded capacity of the Academy of Science, and mainstreaming of cross-cutting issues. For detail information re­fer to Appendix 3 National Action Plan and Monitoring Matrix

Sector Priority Policies: Priority short term policies over the next four years involve re­training 70 percent of teachers in primary and secondary school and coping with increased demand for education by increasing enrol­ments from 6.1 million to 7.7 million. Other priority policies include an increase in the qual­ity and independence of the Higher Education system and a move to place vocational educa­tional on a more sustainable basis that can bet­ter contribute to emerging demands for skills.

Current Situation in the Sector

After decades of disruption to education and the near total destruction of the education sys­tem, one of the Government’s top social priori­ties was to get children to return to school. Data from the sub-sector⁵² indicate unparal­leled success giving a clear indication of the aspirations of the people that reflects a social transformation taking place (see box 7.4).

Box 7.4. Success in the education sector: increased primary education

The Back to School campaign launched in 2002 aimed to get 1.5 million children enrolled in primary and secondary education.  From under one million in 2001 the school population has grown to 5.7 million in 2007 and new enrolments into Grade 1 have ranged between 12-14 percent per annum in the last five years. Two million of the children (or 35 percent) enrolled are girls – a 35 percent increase in five years.  In keeping with the exponential increase in enrolment, the number of schools has trebled to 9,062 in 2007 including 1,337 all girls’ and 4,325 co-educational schools. Similarly, the number of teachers has increased seven-fold to 142,500 of who nearly 40,000 are female.  Fifty thousand of these teachers have received in-service teacher training. Islamic education in Afghanistan has been reviewed and a broad-based curriculum has been developed through a national consultative process.  The number of reformed religious schools that teach a broad-based Islamic education curriculum has increased to 336 and the National Islamic Education Council has been established to oversee and monitor the delivery of Islamic education across the country.

⁵² School Surveys Summary Report, 1386 (February 2008), Min­istry of Education, Islamic Republic of Afghanistan.

In Higher Education, universities have re­opened. There are now 52,200 students in higher education institutions taught by 2,713 lecturers.  Demand for higher education is cur­rently four times greater than the available places in tertiary education institutions.  The next stage of rehabilitation involves improving the quality of education in existing institutions and expanding the number of places available. Partnerships with foreign universities and other educational institutions have been intro­duced in about half the universities.  Such partnerships foster and provide support to de­velop and enhance the capacity of these univer­sities. 

Skills development – through technical and vocational education and training as well as focused functional literacy – has also seen sig­nificant growth in the last five years. The Gov­ernment established the National Skills Devel­opment Program in 2005 as a national priority program.  Technical/vocational education at the secondary level through public institutions has seen a 10-fold increase in the last five years with nearly 10,500 students enrolled in 44 schools.  Short-term technical/vocational train­ing courses that focus on specific skills set are conducted by the non-government and the pri­vate sectors.  Similarly, functional literacy for youth and young adults are carried out by both the public and non-government sectors.  In the public sector alone nearly 320,000 persons un­dertook a 9-month literacy course in 2007, 75 percent of whom were female students.

The key achievements noted above are com­mendable but are by no means the whole pic­ture. While the Government is satisfied with the progress made so far, it recognizes the many challenges that lie ahead in achieving its long-term vision and medium term objectives. These challenges pertain to meeting the grow­ing demand for access to quality and relevant education. 

The demand for education far outstrips the supply across the sector in Afghanistan today. Only half of all school-age children⁵³ are en­

⁵³ School age refers to children between 6-18 years of age;  6-13 years = primary school which is Grades 1-6; 14-18 years = sec­ondary school from Grades 7 to 12. Basic education is described as Grades 1-9 (6-15 years of age), which is also compulsory as stated in the Constitution.

rolled in schools and there are huge provincial, gender and rural/urban disparities.  Eight-two percent of children enrolled in schools are in primary grades. 

Box 7.5. Progress is still required in the education sector

Half of all schools today do not have adequate, safe or appropriate learning spaces that are conducive to parents allowing their girls, particularly at the secondary level, to enroll in schools. This together with a severe shortage of female teachers in rural areas – 80 percent of rural districts do not have a girls’ high school because there are no female teachers available locally to teach in them (there are only 216 girls’ high schools across the country, a majority of them located in regional and provincial capitals).  Only 28 percent of all teachers are women and eighty percent of them are found in urban schools. Schools for children with special needs are woefully lacking while those for Kuchi children are inadequate.  Every year between 40,000-70,000 youth graduate from high schools across the country but only 25-30 percent of them are able to enter tertiary education due to the severe shortage of places in higher education institutions. In 2006 there were 58,300 applicants for entry into tertiary education institutions. Only 17,700 were successful. Most of the universities have buildings that require rehabilitation and there is a drastic shortage of qualified lecturers.

The lack of access to education in the recent past has resulted in a massive backlog of illiter­ate people in Afghanistan.  Based on recent national surveys⁵⁴ it is estimated that only 28 percent of the population in the country can read.  Disaggregated by gender this statistic reveals that only 18 percent of females and 36 percent of males are able to read, a female to male ratio of 0.5.  Based on population projec­tions developed specifically for this work and literacy rates by the Afghan Institute for Rural Development it is estimated that there are today, half of whom are out-of-school children primarily above the age of thirteen.

11.2 million illiterate persons in the country

⁵⁴ NRVA 2005 and projected population projections specifically developed for this report.

Other quality constraints revolve around teach­ing spaces, teacher and trainer qualifications, skills and motivation, outdated curricula and poor teaching and learning materials.  Add to this weak assessment and accreditation sys­tems. Only half the teachers employed in the primary and secondary sub-sector meet the minimum qualification which is set at Grade 12 for primary school teachers. But this is ham­pered by the numbers of high schools gradu­ates available and/or willing to train as teach­ers. There is major shortage of qualified master trainers in the vocational training.  

Primary school curriculum has been reviewed and revised and new textbooks developed; production and distribution of these textbooks is still ongoing.  However, secondary school students are still being taught from an outdated curriculum developed more than 20 years ago. While a new curriculum has been developed over the last 12 months, the development, pro­duction and distribution of textbooks, teachers’ guides and learning materials will take a fur­ther 12-18 month period.  Teacher training in the use and teaching of the new curriculum still needs to be addressed. Libraries and laborato­ries are singularly lacking even in most urban schools and higher education institutions as are trained librarians, technicians and science teachers.  In higher education there is a need to transform the monolithic system into a modern system of independent, well managed universi­ties that operate in the interests of their stu­dents. Technical/vocational education and training are overloaded with academic subjects, have poor laboratory environments for practi­cal training, are short of teaching aids and lack adequate training materials.  These programs provide limited exposure to students on the practical application of their training.

The relevance of education as it applies to the content, proper articulation from elementary to high school level and appropriateness for stu­dent learning and teachers teaching are a chal­lenge that is still being defined in the sector today.  Skills development is rarely linked to market relevance and weak job linkages. There is no minimum qualification standards im­posed particularly in course content or assess­ment procedures for technical/vocational train­ing. Similarly, there is no uniformity in course length across various training programs and courses are often not sub-divided into levels of competency.  The quality of student input is low and consequently the quality of students entering formal higher secondary or tertiary education do not possess adequate literacy and numeracy skills needed to cope with higher level theory and practical courses.  In the case of vocational training the problem is further compounded by the lack of prior academic training.

Throughout the education sector there is a gen­eral lack of engagement with the private sector and the use of private sector resources that would generate competitiveness and thereby encourage and enhance quality of the educa­tion services.  Benefits to delivery of relevant education services would be greatly enhanced through market linkages and the private sector.  

Perhaps the most daunting challenge facing the sector today is that which is posed by terror­ism. Educational institutions, students and teachers have become the soft targets through which terrorists are depriving the population their basic rights. Threats to schools, destruc­tion of school buildings, killing and maiming of students and teachers is increasing, particularly in the southern provinces.  Despite the bravery of communities and school authorities in keep­ing schools open when threatened or reopening them as soon as possible after an incident or threat, the terrorists continue their campaign of intimidation.  In 2007 alone 117 schools were burned down or destroyed, 207 schools had to be closed due to severe threats, 157 students and teachers lost their lives and over 200 others have been injured or maimed. For detail infor­mation refer to Volume II

Policy Framework: Sector Strategy

Three dominant policy goals drive the educa­tion sector strategy; equity, quality and rele­vance:

Equity: Access to education for all is enshrined in the Constitution which makes it illegal to deny or refuse access to schools for any reason. Although there has been significant progress in the past five years at the national level, boys’ enrolment in primary schools is still nearly twice that of girls, while at the secondary levels it is three to four times higher.  In urban areas girls are approaching gender equity but only at the primary level.  In rural areas, girls are much less likely to be enrolled at any level but after the primary years boys are more than ten times as likely to be enrolled.  The shortage of girls’ schools and female teachers, especially at post-primary levels, are the greatest risk factors for achieving higher participation rates and gender equity in rural areas.  Access to education for nomadic children, those with learning disabili­ties, pre-school children and older children who have missed the first years of basic educa­tion and now want to enter the system is also generally low.

Equity in access to primary and secondary education will provide a firm base for equity in higher education.  In order to improve and in­crease access, the government plans to pursue an aggressive building and equipment pro­gram in addition to assessing the potential for distance learning strategies.  This will include assessing the optimal role for government and identifying strategies for achieving national coverage relatively quickly through the use of existing national facilities.  As part of the ag­gressive building program, efforts will be made to include improved security, comfort and hy­giene in the building designs in order to im­prove the physical learning environment.  Im­provement in equitable access to education will be indicated through increased net enrolment in the various sub-sectors, by gender and spe­cial needs; additional physical infrastructure and facilities for that caters to all including fe­males, special needs and nomadic communities in suitable locations.

Quality: The quality of education in Afghani­stan is quite low across the sector.  There are multiple reasons for this including teachers who do not have a thorough knowledge of ei­ther the subjects taught or effective teaching methods; the lack of adequate learning spaces, as well as the lack of quality teaching and learning materials. The classroom environment and the quality of education are critically de­pendent on the quality of teaching. Teacher-centered classrooms and rote learning are the norm in Afghanistan’s classrooms across the sector. Existing classroom-based methods do no deliver basic literacy and numeracy and they do not develop critical thinking and ana­lytical skills of students.  Teachers either do not know how to implement more student-centered methods or are not motivated to change their teaching style.

Although improving the pedagogical skills of teachers is a contributor to improving the qual­ity of education in Afghanistan, recent surveys indicate that the knowledge level of teachers is also extremely low. This indicates the need for a teacher training program that consists of both subject-content training as well as pedagogical training.  The quality of education will also be improved by continued updating and revision of the curriculum and by increased community involvement in the management of education delivery.  Enhanced quality of education will be measured by the progression rates of stu­dents through the system and the numbers of teachers who have successfully completed competency tests and the systems put in place to monitor and coach teachers on a regular ba­sis.

Relevance: For education to contribute to poverty reduction and economic growth it is important that the skills and knowledge ac­quired in the education system are relevant to present day needs and market demands.  The content of education in Afghanistan has not evolved with the times and not for want of good reasons.  However, it is opportune now to leapfrog in time and adopt relevant method­ologies, content and appropriateness that suit both the individual and the people at large to better contribute to and benefit from economic growth.

The review and revision of curriculum to make Islamic education broad-based to allow multi­ple career paths for graduates, the teaching and learning of technical and vocational skills that are in demand and will lead to jobs, adult liter­acy that is linked to productive skills, are some examples of how government is attempting to make education more relevant to present day Afghanistan. For detail information refer to Volume II.

Strategic approaches

The underlying principle of government in en­suring equal access to education for all is to develop a strategy that is national in scope but local in focus and delivery.  Different measures will be required to overcome constraints to ac­cess and supply due to geography and thereby promote the diversity of Afghanistan.

Government will work towards strengthening partnerships, clarifying responsibility and transferring skills.  The value and contribution of partners to the education sector will be en­hanced through improved understanding and collaborative implementation.

A government-led education sector needs to be supported through building an accountable and transparent system of education financing and administration. The underpinning strategy that the government will employ to achieve its policy goals, therefore, is the reform and re­structuring of the management systems in place that facilitate the delivery of education services.  At the primary and secondary school level, a major policy shift seeks to devolve greater authority to the school level for minor operating expenses, planning and execution. This is part of the overall intention to improve governance and management standards.

Recruitment processes will be reviewed and be part of the overall public administration re­forms. Registration of all teaching profession­als across the sector, implementation of public administration reform, teacher salaries and other incentives are being reviewed as part of the pay and grading process, including appro­priate career development of teaching profes­sionals based on merit and performance to in­crease retention, in conjunction with the Civil Service Commission.

Strategies

Primary and Secondary Education: A com­prehensive five-year strategic plan⁵⁵ for the delivery of education services has been devel­oped by the Ministry of Education to meet the medium-term benchmarks for primary and secondary education set in the Afghanistan Compact by 2010. Based on the overarching policy of attaining national and gender equity in access to quality and relevant education, in­cluding affirmative action initiatives, the Stra­tegic Plan encompasses the National Education Program that comprises two subsets of priority programs.  The first set comprises service de­livery programs and the second set quality as­surance and support programs.  The service delivery programs are General Education, Is­lamic Education, Technical/Vocational Educa­tion and Literacy,⁵⁶ while the quality of educa­tion is assured through the Teacher Education & Working Conditions, Curriculum Develop­ment & Learning Materials, Education Infra­structure Rehabilitation and Development, and Education Administration Reform and Man­agement. Each of these programs has a set of costed projects that are prioritized and se­quenced for implementation. For detail infor­mation refer to Volume II.

Higher Education: The Higher Education strategy involves improving quantity and qual­ity aspects to satisfy the demand for the market based economy with skilled professionals.  This will involve increasing the capacity to accom­modate more qualified students, together with an improvement in the quality of higher educa­tion by improving the number and quality of lecturers and offering a greater variety of courses.  There are plans to provide universi­ties with greater autonomy.  A key component of the strategy is to encourage universities to enter into cooperative arrangements with other universities, both domestic and foreign, so that there can be an exchange of lecturers. Imple­mentation of this strategy has already com­menced. Eleven cooperative partnerships be­tween individual universities in the country with well qualified foreign universities are in various stages of finalization.  

In 2007 a Higher Education Law has been passed by Cabinet.  A Master’s course has al­ready begun as part of the objective to offer a greater variety of courses.  Ministry of Higher Education has started to introduce accredita­tion through the Academic Coordination Committee.  This body, whilst still in the early stages will also be involved in quality assur­ance and control, which is an integral compo­nent of the accreditation procedures.  This component of the strategy will be monitored by the structure that has been established through an agreement and Memorandum of Under­standing (MoU) signed with the World Bank on establishment of Afghanistan National Qualification Authority. In its efforts to im­prove the quality of Higher Education, most funds available to the Ministry will be used to refurbish the existing university campuses and carry out construction of buildings for libraries and laboratories in the existing universities.  It is also important as part of the strategy to con­duct a review of university funding so that universities have greater autonomy. For detail information refer to Volume II.

⁵⁵ National Education Strategic Plan (1385-1389), Ministry of Education, Islamic Republic of Afghanistan.

⁵⁶ Outputs of these programs contribute to the development and delivery of the Skills Development sub-sector.

Skills Development and Training: Many of the courses delivered by mandated institutions suffer from the similar problems: lack of mod­ern equipment that can be used by students to acquire trade-relevant skills and lack of ade­quately trained and motivated staff.  Issues that need to be addressed include the need to clearly identify administrative responsibility for delivering and setting standards in the area of vocational education.  There are problems of staff shortages, overbuilding, lack of standardi­zation in training courses, and qualifications that are difficult for potential employers to ac­cess. These problems are being addressed through the MoU mentioned above.

The strategy that has been proposed to address this is to establish a new organization, National Vocational Education and Training Board (NVETB) that would manage, but not operate, all vocational training institutions.  The NVETB would set minimum core competencies for courses, carry out accreditation, and inspect vocational institutions, to ensure that they meet minimum standards.  They would be responsi­ble for calling tenders to operate vocational training facilities owned by the state. Tenders to operate training centers that comply with NVETB standards could be accepted from both the public and private sectors.  The proposed approach using NVETB would address the problems of lack of modern equipment that can be used by students to acquire trade-relevant skills, lack of adequately-trained and motivated staff, and lack of standardization in courses.  It would provide for sustainability of the sector, which is currently lacking.  Part of the strategy would involve the development of an accredi­tation system for NGO and private sector pro­viders who provide the bulk of vocational training.  By 2008 there would be a plan to for­malize existing apprenticeship arrangements and expand the system.  The approach will en­sure that a recognized qualification is provided to people undertaking apprenticeships who have achieved specified basic competencies.  

Technical/vocational education, as part of the formal secondary education, is included under the National Education Strategic Plan as is Lit­eracy and Non-formal education.  These two programs address all three policy goals of the sector. Under the former a National Institute of Administration and Management is being es­tablished to address the lack of capacity in both the public and private sectors in basic project management, accountancy and booking and information and communication technology. A nation-wide literacy and productive skills pro­gram is being launched that is envisaged mak­ing at least half a million people literate and numerate with skills that will enable them to find employment.  This would be in addition to numerous other literacy service providers who coordinate their activities and interventions under the leadership of the National Literacy Centre.

There are now firm proposals agreed to by relevant institutions to the establishment of regulatory bodies to operate across the whole of the education spectrum in order to improve educational standards.  These include a Board of Secondary Education, a National Vocational Education and training Board, the Islamic Edu­cation Board and Higher Education Board.  It has been agreed to establish the necessary leg­islation for these Boards and for the implemen­tation of the Afghanistan National Qualifica­tions Framework. In order to oversee these components of the strategy a committee on education and skills policy has been estab­lished.  This committee covers the entire educa­tion sector. It is chaired by the Vice-President. There are four Government members repre­senting MoE, MoHE, MoLSAMD and MoF, two members representing the private sector and two members representing the donor commu­nity.  A committee to monitor Capacity Utiliza­tion, headed by the Minister of economy will also be established.  This committee will moni­tor individual projects where there is potential for capacity utilization issues to present im­plementation problems.  The private sector will be represented on this Committee. For detail information refer to Volume II.

In some countries, heavy investments in higher education have resulted in low returns because of low absorption capacity for these skills in the economy, with unemployment rates high for graduates unwilling to take jobs considered beneath their skill level.  If the quality of educa­tion can be improved, this is not expected to be a problem in Afghanistan where there is a dearth of well qualified individuals.  Increased investment is crucial for the demand for labor to increase.  This requires higher rates of growth, broad investment to increase and pro­ductivity to be higher.  With increased invest­ment in many areas of the economy, there will be high demand for well qualified Afghans.  

There is an urgent need for qualified teachers, trainers, doctors, professors, for those with the requisite skills for planning and implementing improved water management practices, for qualified professionals in the Civil Service, for skills needed in the management and devel­opment of mineral resources, for meeting the management and safety needs of a growing civil aviation sector, for managing and main­taining an expanding road system, for work in regional trading enterprises centered in Af­ghanistan, in developing, energy resources, working in Independent Power Producers, and in managing and improving electricity trans­mission and distribution systems, developing commercial agriculture, and working in opera­tions to assist the poor and most vulnerable either within or outside government. If the ANDS educational strategy is successful in ad­dressing the quality shortcomings in the public education system and expanding the scope for private education, the expected growth of the economy will create the demand for well quali­fied Afghans emerging from the educational system.  Care will need to be taken to assure that existing but less qualified employees in the public sector do not block the way of better qualified applicants for these jobs, although these existing employees should also be given the opportunity to develop the needed skills through in house capacity development pro­grams and through ‘educational leaves’ to up­grade their skills.

There are other sub-sector policies covering areas such as Sport and the Afghan Academy of Science.

• In sports policy there will be an effort made to encourage private sector support. Provided funds are available, there is a program to build sports complexes and strengthen sports through provincial sports departments and sports improvement pro­grams in capital and provinces. The anti-narcotics message will be promoted strongly through sports activities.

• The Academy of Science will be strength­ened and supported so as to use the re­sources and talents of the academy to assist with the restoration and development of Afghanistan society

Integration of the PDPs: At the provincial and district level Provincial and Development Plans (PDPs), have been developed through a sub-national consultation process. These Plans en­sure that the priorities in the ANDS reflect the best interests and most urgent needs of the people. The most urgent provincial needs in education, health, and transport have been identified and will be integrated in the sector strategies. A problem in the education sector has been direct provincial infrastructure aid by country donors, such as construction of provin­cial agricultural colleges, that is not sustainable because the provincial recipient does not have the funds to finance the running costs, includ­ing as salaries and equipment, which are essen­tial to enable this type of infrastructure aid to make a contribution to provincial development. For detail information refer to Volume III Pro­vincial Development Plans.

Institutional Arrangements: Education ser­vices are delivered by a number of government institutions.  The Ministry of Education is mandated to deliver primary and secondary education, including general education, Islamic education, teacher education, techni­cal/vocational education and literacy. The Ministry of Higher Education is responsible for all tertiary education while the Ministry of La­bor and Social Affairs is mandated to deliver vocational training.  

CULTURE, YOUTH AND MEDIA

Role of the Sector in ANDS

The ANDS strategic vision for this sector is to preserve and protect the cultural heritage of Afghanistan and hand it on to new generations to foster cultural creativity and to establish media that are independent, pluralistic and accessible to women and men throughout the country thereby promoting an open and de­mocratic society, young people (male and fe­male) to be confident that they have a stable, prosperous and productive future in the coun­try.

Culture provides the social basis that al­lows for stimulating creativity, innovation, human progress and well-being. In this sense, culture can be seen as a driving force for human development, in respect of economic growth and also as a means of leading a more fulfilling intellectual, emo­tional, moral and spiritual life.

The Afghanistan Constitution article 47 articu­lates that the state shall devise effective pro­grams for fostering knowledge, culture, litera­ture and arts. The state shall guarantee the copyrights of authors, inventors and discover­ers, and, shall encourage and protect scientific research in all fields, publicizing their results for effective use in accordance with the provi­sions of the law. Freedom of expression shall be inviolable according to Article 34 and every Afghan shall have the right to express thoughts through speech, writing, and illustration

The Afghanistan Compact Benchmarks targets comprehensive inventory of Afghan cultural treasures by end-2007 and measures will be taken to revive the Afghan cultural heritage, to stop the illegal removal of cultural material and to restore damaged monuments and artifacts by end-2010.

Current situation in the sector

Achievements: Considerable progress has been made in the past six years.  From virtually no public debate, there are now over 130 inde­pendent television and radio stations covering the entire country. In Kabul alone there are 11 independent television stations, while access to cable television is increasing.  There are large numbers of independent newspapers.  Many of these outlets are managed and target youth, female and minority groups.  This provides avenues for vulnerable and marginalized groups to have a voice in society.

These advancements have created an environ­ment in which the caliber of public debate is high and lively.  Criticism as well as praise for public programs and figures are common and encourage the public’s involvement in gov­ernment actions and the development process. This debate filters down through society and is responsible for increased questioning and analysis of Government activities more broadly.

The Government is committed to furthering this public debate and independence of media. The Government recognizes that public debate is crucial for allowing the needs of the Afghan people to be fed into development activities. Independent media report development activi­ties and programs and are critically important to increasing public awareness on the Govern­ment and international community’s efforts.

At the same time, local independent entertain­ment programs have been developed and are highly popular.  Regional television shows are also broadcasted meeting the needs of the Af­ghan people.

Many historical and valuable artifacts that were believed lost or stolen have been accounted for and returned.  There is now a need for a com­prehensive inventory to determine the extent of holdings.

In Media, a large number of media outlets, television, radio and newspapers have been started in the last six years. These stations pro­duce considerable local Afghan content and are popular within the country.  The media law is drafted and is under debate.

In Youth a Joint National Youth Program is being implemented. This program is designed to increase the participation of youth in gov­ernance, recovery, development and peace-building of the country.  It has been produced from inputs by eight Ministries and seven United Nations agencies.

Challenges and constraints

• There is an urgent need to take action to prevent the looting of valuable cultural ar­tifacts and to encourage other countries to return them.
• The inability of the Ministry to reach as­signed targets is due to the lack of re­sources, both human and financial. This is the basic cause of the weaknesses in the Sector. Institutional strengthening should look not only at the resource needs of the Ministry but also look at the way resources are organized.

• In the area of culture, legal and policy frameworks, such as those guaranteeing re­spect of cultural rights for all Afghans, are weak and not comprehensive.
• Most media infrastructure and equipment for both print and broadcast media are out­of-date or have been damaged or deliber­ately destroyed. State-owned media needs to be reformed in order to ensure that it promotes democratic values and is editori­ally independent of influences from vari­ous interested factions.
• Media legislation that will provide an envi­ronment in which a free, independent and responsible media can operate has been drafted. It will be passed through Parlia­ment in 2008. Despite some setbacks, the Government is determined that the free­doms that have been introduced will re­main and will be protected by appropriate legislation.

Policy framework: sector strategy

Culture

The objective of this sub-sector to the ANDS will be to establish a system that documents and safeguards Afghanistan’s history and cul­ture for the benefit of future generations. Major goals include:

• Establish an accessible and well maintained cultural artifacts data base;
• Plans will be accepted, and donors will be identified, to establish regional museums;
• Maintain Kabul museum and take meas­ures to establish thematic museums such as ethnology, anthropology, science and tech­nology, handicrafts and community muse­ums;
• The cultural artifacts collection held by the Ministry will be expanded;
• Take appropriate measures to promote live culture (Music, Poetry, Arts, Theater & Dance)

In the longer term goals will include the estab­lishment and expansion of museums as well as the protection of historical and heritage sites. For detail information refer to volume 2

Media

The contribution of this sub-sector to the ANDS will be to ensure an independent, pluralistic and accessible media for Afghan men and women throughout the country which it is hoped will promote an open and democratic society. The objectives with respect to media are:

• To establish legislation that will provide a stable and predictable environment in which a largely private sector, independent media can operate;
• • Media will be employed as an educational tool in addition to entertainment.  Expected outcomes for the media sub-sector in the short term will include: 
• New Media legislation will have been passed and Government and the Ministry will successfully administer this legislation in an open manner;
• A country-wide coverage of public Afghan media (radio and television);
• An increased number of hours of public broadcasting, and improved quality of programming;
• Press freedom has been declining drasti­cally in Afghanistan over the past 4 years and so the need to promote and protect the independence of the media as well as en­sure press freedom is extremely important;
• Press freedom is a fundamental aspect of a democratic society therefore the Govern­ment will work to reverse setbacks and en­sure that press freedom be protected both in legislation and in practice. For detail in­formation refer to volume 2

Youth

The contribution of this sub-sector to the ANDS will be to instill in young people a sense of con­fidence in a stable, prosperous and productive future in the country. In addition a Joint Na­tional Youth Program is now in the process of being implemented. This program has been produced with inputs from eight Ministries of the Government of Afghanistan and seven United Nations agencies is designed to increase the participation of youth in governance, recovery, and peaceful development of the coun­try. It provides young women and men with enhanced capacities, education, and recreation and employment opportunities.

The Joint National Youth Program contains four main components:

• Strengthening the capacity of the Govern­ment to respond to the needs of the youth of the country;
• Promoting 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; 
• Engaging youth in governance, develop­ment and social-political processes at local, district, municipal, provincial and national level, ensuring the participation of young women and men in democracy and advo­cacy; and 
• Promoting voluntary efforts for peace and development and establishing a youth vol­unteer corps for the country. For detail in­formation refer to volume 2

The most important projects to support the sub-sector strategies included the development, maintenance and expansion of the database that documents the collection of artifacts held by the Ministry; and the passage of the new Media legislation and its implementation as well as the implementation of the Joint Na­tional Youth Program. 

SOCIAL PROTECTION

Current situation

Improving social protection is vital to reducing poverty and increasing the livelihood of the Afghan people, particularly the poor and most vulnerable.  This sector strategy is critical to the Government’s ongoing poverty reduction ef­forts.  The programs highlighted below form a key part Government’s approach to achieving this; alleviating the impacts of poverty and im­proving the welfare of the country.

The Afghan Constitution defines the role of social protection and obliges the Government to take necessary measures to support the most vulnerable.  Since 2001 progress has been achieved in number of areas: cash transfer benefits have been established (martyr’s fami­lies and disabled) as the main instrument of social support for the victims of the war; regu­lar support to orphanages has been provided from the Core Budget; the MoLSAMD has es­tablished departments in all provinces and strengthened its capacity for targeting and co­operating with the NGOs and the donors.  In total, some 2.5 million people have been cov­ered with some type of public arrangement for social protection. 

The pension system has been strength­ened: Although highly dependent on budget transfers, the basic pension scheme for civil servants and military personal has been estab­lished. The number of pensions paid has stead­ily increased from around 10,000 to more than 50,000 (in 2006).  The MoLSAMD’s Pension Department receives technical assistance for further improvements and the MoF has intensi­fied its effort on collecting pension contribu­tions. 

The capacity of ANDMA to coordinate disaster preparedness and response has improved as well. Basic risk vulnerability studies have been either completed or initiated.  The links with sub-national structures have been established. The Emergency Budget for Disastrous Situa­tions has been established under the Presi­dent’s authority and a number of interventions for risk mitigation have been made.

Despite the progress in the strengthening of social protection, important challenges and constraints remain, including security issues and low mobilization of the domestic revenues. A further constraint is limited coordination within the Government and with the donors, which leads to duplication of efforts and ineffi­cient targeting.  

The ANDS Risk and Vulnerability Assessments indicate that the Afghan people are vulnerable to number of risks:

Security and economic risks: The continued insecurity has led to the loss of lives and forced people to migrate.  Afghanistan is one of the most heavily land-mined countries.  In 2006, landmines killed or injured an average of 61 people per month.  The latest survey (NRVA Spring 2007) estimated that 42 percent of the total population was estimated to be poor and living below the CBN poverty line.  The inci­dence of food poverty has been estimated to be even higher. Afghanistan has one of the largest child populations and the smallest proportion of working age populations in the world.  Al­most 40 percent of the adult population is un­employed.

Health and natural risks: Afghanistan has one of the lowest life expectancies in the world with the life expectancy of 43 years for women and 44 years for men.   Unlike in most coun­tries, the life expectancy of women is shorter than for men.  Faced with natural disasters, many vulnerable families sold the assets, chil­dren were taken out of school to work, many pre-pubescent girls were married and many young men migrated in search for work. 

Life-cycle and social risks: Despite legisla­tion prohibiting this practice, around 57 per­cent of girls are married before the age of six­teen. The early marriage of girls, and conse­quently, early pregnancy, puts women in high risk. Widespread poverty and the non­existence of an effective safety net or pension system leaves a high proportion of elderly peo­ple vulnerable.  According to a study con­ducted by UNIFEM, out of the 1,327 registered cases of violence against women 30.7 percent were related to physical violence. 

Environmental risks and seasonality: Peo­ple’s high dependence on natural resources has increased with rising poverty resulting in seri­ous devastation of the environment.  Forests have been seriously depleted.  This adversely affects soil stability and weakens flood protec­tion.  According to the NRVA 2005 the con­sumption of the poorest is the highest in sum­mer while it typically falls to critical levels in winter.

Table 7.6. Reach of social protection programs A rough estimate shows that half of the Afghan population (12 million) requires public sup­port. They are either poor or concentrated very close to the poverty line and are vulnerable to falling into poverty.  In 2006 only around 2.5 million people benefited from social protection arrangements.  Currently social protection in­terventions cover several groups: (i) martyr’s families; (ii) disabled with war-related disabili­ties; (iii) orphans and children enrolled in kin­dergartens; (iv) victims of natural disasters; (v) pensioners; and (vi) unemployed.  A rough calculation shows that the Government would require annually around $2 billion just to keep the poorest and most vulnerable above the poverty line.

Sector targets and expected results

The implementation the strategy will aim to achieve the following targets in line with the Afghanistan Compact and MDGs:

• By end-2012/13 the spring national pov­erty headcount rate (42 percent) will de­crease by 2 percent per year; by end-2010 proportion of people who suffer from hun­ger will decrease by 5 percent per year;
• By end-2012/13 prevalence of underweight children under five in urban and rural ar­eas will decrease by 2 percent per year; by end-2012/13 proportion of the population below minimum level of dietary energy consumption (urban and rural areas) will decrease by 2 percent per year;
• By March-2011, the number of female-headed households that are chronically poor will be reduced by 20 percent and their employment rate will increase by 20 percent;
• By end-2010 increased assistance will be provided to meet the special needs of all disabled people, including their integration into society through opportunities for edu­cation and gainful employment;
• By end-2010 skill development training will be provided for 150,000 unemployed of which women will comprise 35 percent and the disabled will comprise minimum 10 percent;
• By end-2012/13 the Government will em­ploy 3 percent of disabled persons within its administration;

• By end-2012/13 the Government will em­ploy 20 percent of women within its ad­ministration;
• By end-2015 reduce gender disparity in access to justice by 50 percent, and com­pletely by 2020;
• By end-2010 the number of treated drug users will increase by 20 percent;
• By 2012/13 pension reforms will be im­plemented;
• By end-2010 an effective system of disaster preparedness will be in place; by end-2010 an effective system of disaster response will be in place.

Implementation of these strategic objectives and priority policies will lead to visible pro­gress in implementation of the following major outcomes: (i) poverty and vulnerability reduc­tion; (ii) improved social inclusion: (iii) lower infant and maternal mortality; (iv) reduction in harmful child labor; (v) reduction in drug de­mand within the country; (vi) improved em­ployment; (vii) reduction in vulnerability to natural disasters; (viii) improved aid effective­ness.

Policy framework: sector strategy

Fiscally sound and well targeted social protec­tion interventions are of critical importance for improving the poverty outcomes. The Gov­ernment is committed to pursuing sustainable interventions through social support, pension system and by strengthening disaster prepar­edness and response.  Given the scarce donor and public funds the focus will be put on sup­porting the most vulnerable (i.e., the poorest of the poor) by allocating adequate resources to the poorest areas through nationwide targeted programs and transfers and by phasing out non-targeted subsidies (such as energy subsi­dies) and building the planning and adminis­trative capacity of the MoLSAMD (and other line ministries) to deliver coordinated pro­grams and improve social protection.  

The ANDS strategic objectives for the social protection sector are to decrease vulnerability of large number of Afghans and to help the poor to climb out of poverty.  It is also to em­power the poor and make their voices heard – to decrease inequality, especially among women, and to enhance social inclusion of the neglected such as minorities and disabled.  The ultimate objective is to build a country of social justice in line with Islamic values and Afghan traditions.  Other important objectives are to support economic growth by improving hu­man capital accumulation; and to support the stability of the country by reducing poverty and increasing social inclusion.

To achieve these objectives the Government will pursue the following priority policies: (i) maintain macroeconomic stability, ensure equi­table growth and increase mobilization of do­mestic revenues; (ii) build fiscally sustainable social support and pension systems; and (iii) improve disaster preparedness and response capacity.

Social support: Reform in this area will focus on the following priority policies: (i) to im­prove efficiency of the public arrangements for social risk management; (ii) to diversify market based arrangements; (iii) to strengthen infor­mal arrangements; (iv) to improve targeting;

(v) to strengthen the capacity and restructure the MoLSAMD; and (vi) to improve partner­ship with the civil society (NGOs) and enhance aid coordination. 

In the future social protection will target two main groups: the population “at risk” and war survivors. 

Box 7.7. Greater support to poor families with small children: Zakat-based tax

Limited resources are impediment for more substantial support to the poor families with small children. Introduction of the Zakat­based tax and establishment of the Afghanistan Social Protection Fund to attract charity contributions in line with the Islamic values could mobilize significant resources to support vulnerable families. Larger support to poor families with small children would decrease prevalence of underweight children and infant mortality. Given this, the MoLSAMD will initiate public debate about prospects and modalities for introduction of the Zakat-based tax.

The population “at risk” includes: (i) chroni­cally poor female headed households with small children; (ii) children “at risk”(orphans, street working children, children in begging and exploitative work; children in conflict with law; children with mothers in detention; chil­dren with severe disability); (iii) poor persons with disability; (iv) victims of violence, such as women and children victims of violence, abuse and victims of human trafficking; (v) extremely vulnerable individuals, including mentally ill persons, and drug addicts, and (vi) unem­ployed, underemployed and victims of natural disaster.

The target group of “war survivors” includes:

(i) martyr’s families from the previous and on­going conflict; (ii) disable individuals with war related disability, and (iii) civilian victims of the ongoing conflict.  

The civilian victims of the ongoing conflict in­cludes the following vulnerable groups: (i) families who lost the breadwinner or members as result of military operations; (ii) families who lost their breadwinner or members as re­sult of suicide bombing that targeted interna­tional or Government troops; (iii) families that lost the breadwinner or members as result of military attack at the international or Govern­ment troops; (iv) individuals which became disabled as result of military operations; (e) individuals that became disabled as result of suicide or military attacks on international or Government troops; and (vi) families or indi­viduals whose property was destroyed or damaged as result of military operations, sui­cide and military attack at the international and the Government troops. Social support to this group will be coordinated with the support from the MoD and MoI.

Implementation of this will be through the Na­tional Social Protection Sector Program and will consist of: (i) public arrangements; (ii) market-based arrangements; (iii) informal ar­rangements; and (iv) capacity building.  Pre­liminary costing of the program indicated that around $500 million will be required for the next five years which will need to be met through the Core and the External Budgets. 

Public arrangements to enhance social support reform: Future social support sys­tems will include most of the existing public arrangements 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 im­pact on the poor some arrangements like sub­sidies (for fuel, pensions, and kindergartens) will gradually be eliminated. Support to or­phanages will remain part of the social support system; however, they will be reorganized to provide day care services for other children “at risk”. 

The current cash transfers to the martyr’s fami­lies and individuals with war related disabili­ties will be integrated into the pension system and will cease to be part of the social support system.  However, this will occur only in the medium term and after completion of pension reforms. The new direct cash transfers will be gradually introduced for the poor disabled with non-war related disability.  The inclusion of the poorest families with small children into direct cash transfers will depend on mobiliza­tion of domestic revenues and possible intro­duction of the Zakat-based tax.

Payment in kind, through distribution of humanitarian assistance, will continue to be used to support higher children’s enrolment in schools (e.g., food for education) and training of teachers (e.g., food for training).  According to the NRVA 2005 the poorest households have critically low consumption during winter, es­pecially in March.  Therefore, a new system of payments in kind will be introduced for the poorest families with small children (winteriza­tion). The parcels with basic food and non­food items will be distributed through Afghan Red Crescent Society to support the poorest households in the most difficult period of year. Given the high incidence of rural poverty the new program will be developed to provide free distribution of livestock, orchards and tools for farming helping the poor to diversify agricul­ture production.  Both, direct cash transfers and payments in kind will be made conditional: poor families will have to enroll children in school and take them to regular health check­ups.

Given the extent of unemployment, skills de­velopment will remain one of the high priority public arrangements in the social support sys­tem. However, the terms of reference of the NSDP will be changed to introduce the most vulnerable as the highest priority group for skills development training.  Public works pro­grams, such as NSP, NABDP and NRAP will continue to provide job opportunities for the poor. Moreover, the new public work program to re-forest Afghanistan (i.e., “Greening of Af­ghanistan”) will be introduced to supply addi­tional jobs to decrease deforestation of the country.  All programs will be redesigned to reach the most isolated and remote areas. In addition to other public arrangements, targeted land distribution and lump sum payments will continue to be used to help the poorest war victims and victims of natural disaster. 

Diversification of the market based ar­rangements: In Afghanistan, market based arrangements for social protection are domi­nated by microfinance schemes.  These will be further developed and strengthened.  How­ever, efforts will be made to develop other market-based arrangements such as increasing financial market literacy and the introduction of community-based insurance schemes. Loss of women’s inheritance entitlements to male relatives and denial of their property rights prevents women from using collateral and lim­its access loans for creating employment oppor­tunities. Therefore, future Government policies will introduce measures to enforce women’s rights to inheritance. 

Strengthening informal arrangements for social risk management:  Migration to work in neighboring countries and remitting funds will remain as a key informal arrangement for the poor. The Government will ensure that Afghan migrant workers are not subject to abuse in the countries of their destination.  In this regard, the Government will conclude in­ternational agreements with the neighboring and other countries to regulate the rights of the Afghanistan’s migrant workers.

Priority measures to provide social include:

• Integrate the current direct cash transfers to martyr’s families and people with disabili­ties into the pension system;
• Develop projects for the distribution of livestock, orchards and tools for farming;
• Develop projects for the distribution of food parcels in winter (winterization);
• Develop a new public works program: “Greening of Afghanistan”
• Develop mechanisms for distributing direct cash entitlements to poor disabled indi­viduals with non-war related disabilities

and include rehabilitation of the disabled in the BHP in all provinces;

• Develop programs for community-based rehabilitation of drug-addicts;
• In cooperation with NGOs implement pilot projects to support extremely vulnerable groups which will include options for rein­tegration into families;
• Conduct surveys to collect data on civilian victims of conflict and develop policies to support civilian victims;
• Conduct reviews of the MoLSAMD and prepare plans for capacity building and re­structuring, including the establishment of the Child Secretariat within MoLSAMD.

Strengthening the capacity and restruc­turing the MoLSAMD: Implementation of effective social protection reform will require significant capacity building of the MoLSAMD. The main objectives of this will be to improve policy/strategy/elaboration of standards of care, monitoring, targeting and project prepara­tion/implementation in partnership with NGOs in charge of service delivery; and to in­crease absorption capacity.  Enhanced roles of the private sector and NGOs in providing the services will support timely implementation of the projects. Finally, developing courses to enable university graduates to obtain qualifica­tion for social workers will be important for capacity building.

Pension reform: The main objective of pen­sion reform will be to improve old-age protec­tion (especially for civil servants and military) and establish fiscally sustainable pension schemes. Priorities will include the enhance­ment of fiscal sustainability by increasing col­lection of the pension contributions, and build­ing the capacity of the Pension Department

Design of the pension reform: Coverage: The future pension system will cover the same groups of employees that are covered in the current system (civil servants and military per­sonal). The system will remain a defined bene­fit system based on a formula that will take into account age, years of service, and a specified accrual rate.  The average benefit for an em­ployee with 25 years of service will equal 50 percent of final pay after Pay and Grading re­form. The benefit accrual rate will be 2 percent for each year of service.  This formula will be adjusted to increase equity, reduce cost, and address human resource needs of the Govern­ment. Pension benefits will be increased in ab­solute terms (as a result of Pay and Grading reform), but reduced as a percentage of last drawn pay of an employee.  They will be automatically indexed for increases in cost of living to preserve the value of pensions.  Em­ployees will be eligible for a pension at age 65 if they have ten years of service and will be able to retire at age 55 if they have accumulated 25 years of service.  In addition to regular pen­sions benefits will be provided to pre­retirement and post-retirement war survivors. The existing direct cash transfers to martyr’s families and individuals with war related dis­ability will be integrated into the future pen­sion system.

Financing and transition: The pension sys­tem will be self-financed from government and employee contributions on wages (payroll tax). Direct budget subsidies will be gradually eliminated.  The overall contribution, however, will increase from 11 percent of pay to 16 per­cent to ensure fiscal sustainability.  Around 2 percent (of the 16 percent) will be used to fund post-retirement survivors’ benefits.  Both, the Government and employees will contribute 8 percent of the payroll amount.  The employee’s contribution will gradually increase while the Government’s will gradually be reduced.  Em­ployees retiring before implementation of the Pay and Grading reform will earn pension based on the current pension system rules. 

The implementation of pension reforms will also be supported through the National Social Protection Sector Program. The specific com­ponents of the pension reform will include: (i) budget subsidies to the pensions system (which will gradually be eliminated); (ii) capacity building, and (iii) modernization of equipment. Preliminary costing of the funding needs have identified the cost of around $150 million which will mainly be covered through the Core Budget (mainly budget subsidies for payments of the pensions which will be eliminated in five years). 

Priority measures to support implementation of pension reform:

• Promulgate pension reform by the Gov­ernment decree;

• Conduct capacity building and training for the staff and managers of the Pension De­partment, and develop new IT system and processes;
• Modernize accounting and internal opera­tional procedures in harmony with the IT system implementation and improve re­cord keeping and processes;
• Improve collection of the pension payroll taxes and establish a central database to store and process the details on pensioners and their bank accounts; and
• Introduce payments of pensions through banks in Kabul by mid-2009, and through­out the country by end 2010 subject to availability of banking services.

Strengthening the capacity of the Pension Department: Employees of the current pen­sion department, including management, will be required to go through comprehensive train­ing. The staff will be trained in the use of new automated systems.  Managers will be required to acquire new skills in program supervision and project management.  The most significant attribute of the new pension scheme will be introduction of the payment of pensions through authorized banks.

Disaster preparedness: The main objectives of the sub-sector strategy for disaster prepar­edness will be to decrease risks from natural disasters and improve disaster preparedness and response with the aim of protecting human lives, assets, public infrastructure and the envi­ronment. This objectives will be achieved through implementation of the following prior­ity policies: (i) to strengthen the capacity of ANDMA, not only for coordination and policy making, but also for implementation of pro­grams and projects; (ii) to strengthen the capac­ity of line ministries for disaster preparedness and disaster response; (iii) to enhance the pro­vincial and community mechanisms for disas­ter preparedness and response; (iv) to improve coordination within the Government for disas­ter preparedness and response; (v) to improve aid coordination in the area of delivering the humanitarian assistance, and (vi) to address long-term needs for rehabilitation.

ANDMA: Under existing legislation, the prime responsibility of ANDMA is to coordi­nate the Government’s efforts and to provide policy making.  However, lack of the responsi­bility for implementation of key projects for disaster preparedness/response and over­reliance on the line ministries is a weakness. Therefore, the existing legislation will be amended to reflect the need to strengthen the ANDMA’s role in implementing key projects. It is important to stress that line ministries will remain responsible for the implementation of most projects for disaster prepared­ness/response.

Disaster preparedness will also be supported by the National Social Protection Sector Pro­gram and will include: (i) finalization of risk vulnerability assessments and disaster prepar­edness plans at the national and sub-national level; (ii) strengthening the capacity and the role of the ANDMA; (iii) establishing the emer­gency operation centers at the provincial level and regional warehouses; and (iv) moderniza­tion of equipment.

Priority measures to support sub-sector strat­egy for disaster preparedness:

• Amend the legislation to clearly reflect the leading role of the ANDMA in coordinat­ing the national efforts but also for imple­menting of key programs and projects;
• Approve annual plans for disaster prepar­edness, finalize disaster risk analyses and guidelines for disaster response, and de­velop the provincial disaster management plans;
• Develop standardized operating proce­dures for quick assessment and response, reporting, and for rapid mobilization of in­ternational assistance;
• Establish Emergency Operation Centers at provincial level, response centers and teams at the regional level and effective early warning systems and develop the community emergency response system and develop back-up communication sys­tem based on Codan; 
• Construct 12 regional storage facilities for aid assistance and equipment and improve public awareness activities and raise na­tional awareness about disaster risks and vulnerabilities 

Strengthening capacity and improving coordination: The ANDMA, and to a lesser

extent the line ministries, require strong capac­ity building and equipment modernization. Having rescue equipment, management tools and operational centers at the provincial level will provide the necessary facilities to respond to disasters.  Strengthening disaster prepared­ness and response at the community level through CDCs will be required.  Maintaining access to modern technology, such as with alarm systems, is important for reducing casu­alties and damages that occur during disasters. Finally, given the existing legal ambiguities, the role of the ANDMA in leading and coordinat­ing the national efforts for disaster prepared­ness and response will need to be clearly de­fined and this will require adjustment of the current legislative framework.

REFUGES, RETURNEES AND INTERNALLY DISPLACED PERSONS

The ANDS strategic objective for the Refugee, Returnee and Internally Displaced Persons (IDPs) strategy is to facilitate the planned and voluntary return of refugees and IDPs and the reintegration of returnees and IDPs into soci­ety. This strategy establishes the Governments efforts in coordinating and reintegrating refu­gees and the IDPs into society.  The planned and voluntary return of refugees and IDPs will contribute to economic growth, the reduction of poverty and the strengthening of security and stability of the country and the region. World-wide experience has indicated that large, unplanned, and essentially involuntary returns generate a range of negative conse­quences as they are managed as emergency influxes.

Situation in the sector

More than five million persons have returned to their homes since 2002.  Yet over three mil­lion Afghan refugees remain in Iran and Paki­stan. Several hundred thousand others are pre­sent in 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 in exile for over twenty years remain a serious constraint for voluntary repatriation.  The pres­ence of these communities places strains on both the Government and neighboring country governments. The desire of the neighboring countries to engineer large scale return is a challenge to the principle of voluntary repatria­tion.  Experience indicates that such pressures will not produce sustainable or humane out­comes. This is particularly the case for ex­tremely vulnerable individuals: unaccompa­nied women, unaccompanied minors, women at risk, the elderly, the very poor, those in need of medical care and drug addicted individuals.

Economic and social reintegration faces many constrains and challenges.  Since 2005 repatria­tion of 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 education facilities; and (v) the length of time in exile. Lower return figures have led to an increase in the pressures from the neighboring countries to stem the continuing trend of out-migration from Afghanistan. The most visible indication has been the deportation of over 350,000 unreg­istered Afghans from Iran.

It is very probable that high levels of mass and voluntary repatriation are over.  The refugees’ long stay in exile, poverty, and dissuasive con­ditions in many parts of Afghanistan are likely to prove difficult obstacles to overcome in fu­ture.

Internal displacement remains a significant problem facing the same constrains and chal­lenges as do refugees: (i) ongoing conflict; (ii) natural disasters (drought, floods); and (iii) lack of livelihoods. As a consequence, there are ap­proximately 160,000 internally displaced per­sons, mostly in southern Afghanistan. There is also evidence of secondary migration of return­ees from places of origin to cities and back to the neighboring countries.

Further, many of those that return face signifi­cant hardships and difficulties re integrating into life in Afghanistan.  Drug abuse and its socio-economic repercussions on families and communities are aggravated by the large num­bers of refugees returning. These groups have often been exposed to drugs during their stay abroad. The difficulties of economic and social reintegration also place them at particular risk of drug abuse on their return.  Ensuring that they do not contribute to drug production or become drug uses requires viable and visible employment prospects.

The sector strategy provides policies for volun­tary, planned and sustainable return of the refugees and IDPs that will support stability of Afghanistan, its economic development and poverty reduction. The strategic vision of the sector strategy is to provide safe, voluntary, gradual and sustainable reintegration possibili­ties for all Afghan refugees, returnees and IDPs choosing to return.  This vision supports the rights of all Afghans to return to their homes, reposes property and enjoy all constitutional and human rights.  Greater attention to protec­tion of the vulnerable groups among refugees and IDPs, including children and women is an important part of this vision.

The main strategic objective of the sector is to transition out of a purely refugee and humani­tarian framework for managing population movements to a more comprehensive set of policy arrangements that, will advance durable solutions for the remaining 3 million Afghans in the neighboring countries, for returnees, and for Internally Displaced Persons (IDPs) includ­ing the most vulnerable populations, and which will not rely solely on voluntary returns. Overall strategic goals and objectives have been divided in three categories:

The Government’s expected outcomes from the sector strategy are to:

• support the safe, voluntary, an gradual re­turn of refugees from Pakistan, Iran and elsewhere;
• prepare and implement more visible and effective, sustainable reintegration pro­grams and interventions;
• improve social protection and disaster pre­paredness;
• strengthen the management of cross border movements and economic migration;
• prepare plans to improve the response to internal displacement crisis; and
• give greater attention to the protection of the vulnerable groups among refugees and IDPs, including children and women.
• improve the facilitation for gradual return of all Afghans who wish to return volun­tarily from Pakistan, Iran and other hostcountries through policy negotiation and coordination;

• strengthen the Government’s capacity to plan, manage, and assist the reintegration of returning Afghans and IDPs;
• improve the capacity of the Government to plan for and respond to internal displace­ment;
• improve the terms of stay and conditions for Afghans in neighboring countries;
• make progress towards the implementation of the bilateral agreements on temporary labor migration; and
• • improve access to land for the refugee and the IDP population. Further, the strategy will support the imple­mentation of the following Afghanistan Com­pact benchmarks:
• By end-2010, all refugees opting to return and internally displaced persons will be provided assistance for rehabilitation and integration in their local communities; their integration will be supported by national development programs, particularly in key areas of return
• Afghanistan, its neighbors and countries in the region will reach agreements to enable Afghanistan to import skilled labor, and to enable Afghans to seek work in the region and send remittances home.
• Human rights monitoring will be carried out by the Government and independently by the AIHRC, and the UN will track the effectiveness of measures aimed at the pro­tection of human rights; the AIHRC will be supported in the fulfillment of its objectives with regard to monitoring, investigation, protection and promotion of human rights.

Depending on the success of the implementa­tion of the ANDS and the specific sector pro­grams, some broad scenarios for the return and reintegration sector could be envisaged for the period (2008-13).  These assume that current trends will be unlikely to deviate dramatically (positively or negatively) from the present situation and that therefore there will still be a substantial number of Afghans remaining out­side their country in 2013:

• Scenario One: progress towards peace and security, political stability, economic and social development improves on current trend lines.  There are no changes to cur­rent legal and operational frameworks governing repatriation.  Support for reinte­gration through national programs benefits from increased and better targeted invest­ments. Afghans continue to enjoy interna­tional legal protection as refugees.  Internal displacement continues as a consequence of localized conflict.  Under these condi­tions, it may be envisaged that a projected figure of between 800,000 and 1,000,000 Afghans return home voluntarily and sus­tainably, predominantly to the west, north and central regions of the country.
• Scenario Two: progress towards peace and security, political stability, economic and social development follows current trends. The number of Afghans returning outside the Tripartite Framework increases as a re­sult of new measures introduced by the neighboring countries. Support for reinte­gration through national programs benefits from increased and better targeted invest­ments and improved response capabilities. The terms and conditions for registered Afghans to remain in the neighboring countries deteriorate. Conflict induced in­ternal displacement persists, especially in southern Afghanistan. Under these condi­tions it may be envisaged that a projected overall figure of 600,000 – 800,000 returns voluntarily or are returned.
• Scenario Three: progress towards peace and security, political stability, economic and social development deteriorate. There are no changes to current legal and opera­tional frameworks governing repatriation. Support for reintegration through national programs benefits from increased and bet­ter targeted investments but implementa­tion is weak due to poor operating condi­tions (security). Afghans continue to enjoy a measure of international legal protection as refugees though less than before. Inter­nal displacement continues as a conse­quence of localized conflict. Under these conditions, it may be envisaged that a pro­jected figure of between 400,000 and 600,000 Afghans return home voluntarily and sustainably, predominantly to the west, north and central regions of the coun­try.  

The Government will implement the following Specifically, the most important measures to be priority policies to achieve the sector objective: taken to support implementation of the strat­

• prepare and implement more visible and effective reintegration programs and inter­ventions and to improve mechanism for delivering immediate reintegration assis­tance to returning refugees and IDPs;
• improve social protection and disaster pre­paredness;
• address concerns of long-staying Afghans that prefer to remain in exile;
• develop broader policy responses to popu­lation movements;
• retain the Tripartite Agreements is an im­portant tool to ensure policy coordination and respect for refugee law and humanitar­ian principles;
• improve access to land for the refugee and the IDP population;
• improve inter-ministerial coordination; and
• improve aid coordination and increase aid effectiveness.

Specific activities the Government will under­take are detailed below.

Maintaining frameworks to manage repatriations

Within the region, the principle legal and op­erational framework governing voluntary repa­triation is provided by the Tripartite Agree­ments signed between Afghanistan, UNHCR, Iran and Pakistan respectively. These agree­ments are serviced by regular meetings of Tri­partite Commissions at both Ministerial and working level.

The Tripartite Agreement with Iran was re­newed for a further year in February 2007; an extension of the agreement with Pakistan for three years was signed in August 2007.  Af­ghanistan has signed similar agreements with Denmark, France, the Netherlands, Norway, the United Kingdom, Sweden and Switzerland.

The Government is committed to continue working with Iran, Pakistan and the UNHCR on the implementation of the Tripartite Agree­ment and the Tripartite Commission. Specifically, the most important measures to be taken to support implementation of the strategy are to:

• fully reflect the principles of voluntary, dignified and gradual return in the Tripar­tite agreements between countries of asy­lum, Afghanistan, and UNHCR;
• discuss and agree the annual return plan­ning figures with the Governments of Paki­stan and Iran within the Tri-Partite Com­missions;
• strengthen the management of cross border movements and economic migration; and
• promote a national framework and policy guideline for the protection of IDPs as well as the IDP mapping exercise.

The Government’s policy supports the volun­tary, planned and sustainable repatriation movements. At the same time, the Govern­ment is committed to increasing the overall rate of returns. This requires improving the liveli­hoods and welfare opportunities in the coun­try, increasing the attractiveness of the country to displaced persons.

The Government will work to address the con­straints returnees face on returning, including increasing economic opportunities (employ­ment) and social services (health and educa­tion).

The Government, with support from the inter­national community, will develop a range of political and practical solutions to work with and address the concerns of neighbors on the recent slowing of repatriation rates.  This will assist in reducing bilateral tensions on this is­sue.

The retention of the Tripartite Agreements is an important tool to ensure policy coordination and respect for refugee law and humanitarian principles.  Ensuring the voluntariness of re­turn is critically important in improving sus­tainability and minimizing humanitarian dis­tress.  In view of the potential political and humanitarian consequences of large induced returns, and taking into account the need to develop broader policy responses to popula­tion movements, future policy actions will benefit from the active involvement of a wider cross section of Government ministries.

Chapter 8

CROSS-CUTTING ISSUES

The ANDS has pursued a proactive policy with regard to the treatment of cross-cutting issues. In terms of importance, Government views cross-cutting issues as being of equal signifi­cance to the sector strategies themselves. The Government recognizes the development vi­sion of the ANDS cannot be met without ad­dressing the presence of large scale illegal nar­cotics activities, high levels of corruption, gen­der inequity, limited public and private capaci­ties, a degraded environment and weak re­gional cooperation. For this reason, the Gov­ernment has fully integrated six crosscutting issues into the ANDS: (i) regional cooperation; (ii) counter-narcotics; (iii) anti-corruption; (iv) gender equality; (v) capacity building; and (vi) environmental management.  The strategic ob­jectives and mainstreaming of the outcomes of these six issues are outlined below.

REGIONAL COOPERATION

Background and context

The strategic vision of regional cooperation is to contribute to regional stability and prosper­ity, and to enhance the conditions for Afghani­stan to resume its central role as a land bridge between Central Asia and South Asia, and the Middle East and the Far East, as the best way of benefiting from increased trade and export op­portunities.

The reestablishment of trade allows for the re-connection of Central Asia with South Asia, and also the development of potentially impor­tant trade links between China and the Middle East and Europe.  This will contribute substan­tially to the economic growth and integration of the countries in the region and foster coop­eration on mutual interests.  Access to Chinese markets and its rapidly developing business hub of Urumqi has expanded with the comple­tion of a bridge at the border with Tajikistan.

The central goal of the Regional Cooperation issue is to contribute to regional stability and prosperity, and to enhance the conditions for Afghanistan to resume its central role as a land bridge between Central Asia and South Asia, and the Middle East and the Far East, as the best way of benefiting from increased trade and export opportunities.

Strategic outcomes are detailed below.

• Enhanced regional cooperation provides Afghanistan an opportunity to connect land locked energy rich Central Asia with warm water ports and energy deficient South Asia. As a result of this expanded trade Afghanistan would be able to meet part of its energy demand.
• As a transit country, Afghanistan will real­ize increased revenue and enhanced eco­nomic activity, enabling it to better meet its main development challenges.
• The removal of trade impediments and lower trade barriers will create a freer mar­ket and enhance the flow of goods, ser­vices, investment, and technology and support Afghan economic development.
• Regional cooperation facilitates harmoniza­tion of standards and regulations to en­hance cross border initiatives, such as greater regional trade and investment, the exploitation of hydro-power, hydrocar­bons, infrastructure development, and so­cial development.
• Improved border management and cus­toms cooperation at regional level increases security and helps to fight organized cross-border crime such as trafficking in arms and drugs. 

• Improved access for women to wider po­litical and economical participation at na­tional and regional levels.
• Improved economic conditions for facilitat­ing the return of refugees and reduce mi­gration.

Implementation framework

The re-establishment of Afghanistan as a major trading hub at the heart of Asia will require the support of the key international players, namely the U.S., E.U., and the big economies of South Asia and the Far East.  Since early 2002, Afghanistan has signed at least 21 agreements in trade, transit, transport and investment with countries and organization in the region.  The December 2002 Kabul Conference on Good Neighborly Relations, the December 2005 Re­gional Economic Cooperation Conference, held in Kabul, and its subsequent follow up confer­ences in New Delhi, and the more recent Pak-Afghan Regional Peace Jirga, held in Kabul on 9-12 August 2007, are all important regional initiatives.

Efforts to strengthen regional cooperation are based 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 be to work with regional partners on implement­ing practical project based activities.  This in­cludes and emphasis on increasing the transfer of knowledge with regional partners.  Increas­ing the human interaction between Afghani­stan and it’s neighbors, at the government, dip­lomatic, social and local level will lead to im­proved relationships.

The Government is implementing a multi­faceted Pro-active Regional Diplomacy Pro­gram (PRDP).  The PRDP will encompass secu­rity, political, economic and social aspects. Under the PRDP, the Government, through relevant Ministries, will commit the necessary human and technical resources towards re­gional cooperation capacity building programs, including the mobilization of Afghan Missions in the regional countries 

Improving security, governance, justice and the rule of law continue to remain a central focus of the Government’s reform efforts.  The Declara­tion of the cross-border Pak-Afghan Regional Peace Jirga, , recommends further expansion of economic, social, and cultural relations be­tween the two countries.  It identifies the im­plementation of infrastructure, economic and social sector projects in the affected areas (in the south-east) as a key part of bringing secu­rity to the country.  There is still some tension still prevalent in the region but the Govern­ment gives the highest priority to the develop­ment of projects to strengthen regional coop­eration. In security, the Government will seek better intelligence sharing and cooperation in counter terrorism measures. 

From late 2002, the Government has adopted a policy of joining effective regional groupings. Afghanistan is now the only country enjoying membership or affiliation of all the major re­gional economic groupings of the surrounding region.  In addition to the Government’s ongo­ing efforts to accede to the World Trade Or­ganization (WTO), it is also actively pursuing the expansion of bilateral and regional trade agreements with the countries of the region. While Afghanistan already has in place bilat­eral trade agreements with India and Pakistan, the two largest members of the South Asia As­sociation for Regional Cooperation (SAARC), there is considerable scope to increase trade with South Asia now that Afghanistan has be­come a full member of SAARC in April 2007. Since November 2005, Afghanistan has been serving on the Contact Group of the Shanghai Cooperation Organization (SCO).  In April 2003, Afghanistan became a Partner of the Or­ganization for Security and Cooperation in Europe (OSCE).  Afghanistan also attended the Special session of the Regional Advisory Committee of the United Nations Program for the Economies of Central Asia (SPECA), held in Astana on 27 May 2005.  

Afghanistan is a signatory to a number of re­gional consultative processes that focus on de­veloping frameworks to manage migration. The Government continues to make all possible efforts to integrate politically, socially and eco­nomically with its regional neighbors.

COUNTER NARCOTICS 

Background and context

The continuing expansion of the narcotics in­dustry represents the single greatest threat to Afghanistan’s stability, especially since the nar­cotics trade is inextricably linked to insecurity and terrorist activities.  According to the United Nations Office on Drugs and Crime (UNODC) Afghanistan Opium Survey 2007, the cultivation of poppy in the country broke all records in 2007 and the trend is likely to continue in 2008.  The number of domestic drug users in Afghanistan has also increased significantly and illicit drugs and the corrup­tion surrounding it is threatening to destroy the next generation of Afghan youth.  The explo­sive growth of poppy production has taken place in five southern provinces.  In the other 29 provinces, poppy production has been cut in half over the past four years. 

In 2006 the Government adopted the National Drug Control Strategy (NDCS) that remains the overall policy and strategy for CN activities and the Government is moving immediately to accelerate and improve strategy implementa­tion through:

• Provision of force protection for eradica­tion in targeted areas;
• Restructure and reform of the Counter-Narcotics Trust Fund (CNTF)
• Provincial based planning for CN policy implementation based on the Provincial Development Plans;
• Expansion and effective delivery of pro­grams to promote licit development, in­cluding economic support for licit cash crops and rural industries;
• Strengthening of justice, other legal institu­tions and interdiction efforts;
• Further strengthening of cross-border, re­gional, and international cooperation for CN activities; and,
• Mainstreaming CN into all government policies.

Counter Narcotics is a core crosscutting issue in the ANDS and will be the responsibility of all sectors; while the MCN will take the leadership role.  The goal is to ensure a rapid and sustain­able decrease in cultivation, production, traf­ficking and consumption of illicit drugs with a view to complete and sustainable elimination of narcotics by providing a conducive devel­opment environment and opportunities while taking requisite direct action.  Progress will be measured against four priorities set out in NDCS to: (i) disrupt the drugs trade; (ii) strengthen and diversify legal rural livelihoods; (iii) reduce the demand for illicit drugs and expand the treatment of drug users; and (iv) strengthen state institutions both at centre and in the provinces.

Implementation framework

The implementation of the strategy will rely on a provincial based approach to counter-narcotics, which will provide the provinces requisite responsibility for developing counter narcotics action-plans aligned with the Provin­cial Development Plans (PDPs).  Governors will be consulted in developing local CN im­plementation plans ultimately consolidated and prioritized into a national implementation plan. The Governors will coordinate the local planning process involving line departments, international organizations, districts, and communities.  At the national level the Minis­try of Counter Narcotics, in conjunction with provincial Governors, line ministries, the IDLG, and ANDS must help identify provincial CN priorities and support the design of compre­hensive provincial counter narcotics plans in line with Provincial Development Plans (PDPs) within the framework of the national budget.

The Government will increase its eradication efforts.  The JCMB has established a goal of eradicating 50,000 ha of the opium cultivation in 2008.  A robust system of eradication will be introduced together with state capacity, mini­mizing the level of corruption and improving the access of the eradication teams to less se­cure areas.  As the NDCS states that “targeted and verified eradication will be carried out where access to alternative livelihoods is avail­able,” targeting will be made more accurate through mechanisms to monitor and evaluate the availability of alternative development.

Articles 52 and 54 of the Law on Drug Control as well as chapter 3 of the NDCS articulate the roles and responsibilities of ministries for im­plementing counter narcotics activities.  Pro­vincial-based planning will identify further roles line ministries and other organizations. NDCS Chapter 3 also specifies, by the eight pillars, the ministries and organizations that are expected to be involved in the evaluation and implementation of CN plans. The Gov­ernment will mitigate weaknesses in the minis­tries, agencies and provinces charged with im­plementing the CN plans by drawing on the resources of international donors and contract­ing expert staff.  The other key institutional capacity that needs to be addressed by the in­ternational community is the lack of sufficient CN expertise.  The international community will be asked to provide sustained CN specific technical assistance to Afghan counterparts.

The new NDCS implementation plan has to include a commitment by the international community to fund and support efforts to:

• Integrate CN into operations of ISAF/NATO (this is suggested but will re­quired to be dealt with in a combined as well as bilateral manner in consideration with the the individual partners capacity and sensitivity);
• Adequate financing of CNTF and adjust alternative development programs to the priorities of PDPs, subject to reform and improved functioning;
• Increase funding of the Good Performance Initiative;
• Prevent the import of precursors into Af­ghanistan;
• Create markets for Afghan products through trade preferences and investment in infrastructure for export;
• Arrest and prosecute international drug dealers/traffickers;
• Procure supplies and services for interna­tional military forces and organization in Afghanistan from Afghan sources, as en­visaged in the “Afghan First” policy;
• Improve intelligence sharing on counter-narcotics activities;
• Provide large scale assistance to follow up eradication and reduction in cultivation;
• Production and market development pro­grams for cash crops in certain areas; and,
• Reduce global demand for illicit drugs.

ANTI-CORRUPTION

Background and context

Corruption, the misuse of public office for pri­vate gain, undermines the authority and ac­countability of the Government, lessening pub­lic trust and reducing the legitimacy of state institutions.  Corruption is a significant and growing problem in Afghanistan.  According to one of the most widely-used international in­dexes, ‘Worldwide Governance Indicators, 1996-2006 published by the World Bank Insti­tute (2007), Afghanistan is close to the bottom among the 212 countries in terms of its ability to control corruption – ranking in lowest per­centile alongside Bangladesh, Somalia and Zimbabwe. 

The Government is fully committed to control­ling corruption, promoting transparency and accountability through establishing new and effective preventative mechanisms and imple­menting the Afghanistan Compact Anti-Corruption Benchmarks. The chronic poverty conditions in Afghanistan are seen as natural breeding grounds for systemic corruption due to social and income inequalities and perverse economic incentives.  A key ANDS strategic objective is to establish a state administration that operates with integrity and accountability to provide an enabling environment for eco­nomic and social development, based upon the rule of law, impartiality in political decision-making, the proper management of public re­sources, the provision of efficient administra­tive systems and the active engagement of civil society.

The National Anti-Corruption Strategy and Roadmap developed as part of the ANDS will be implemented in support of the following strategic aims: (i) enhancing Government anti­corruption commitment and leadership; (ii) raising awareness of corruption and evaluating the effectiveness of anti-corruption measures;

(iii) mainstreaming anti corruption into Gov­ernment reforms and national development;

(iv) strengthening the enforcement of anti­corruption aimed to strengthen the legal framework for anti-corruption and build a co­herent and fully capacitated system of en­forcement institutions required to support the effective implementation of the UNCAC; (v) reinforcing counter-narcotics integrity; (vi) reinforcing the integrity of public and business sector relationships; and, (vii) increasing politi­cal accountability.

Implementation framework

The mainstreaming process will be driven pri­marily by the three complementary and inter­dependent areas of public administration, fi­nancial management and legal reform:

• Improving Public Sector Management: aimed at the creation and consolidation of a motivated, knowledgeable, skilled, effi­cient and effective public service. 
• Strengthening Public Accountability: aimed at increasing the transparency and accountability of procedures and controls for the management of public resources and thereby deterring corrupt practices, or increasing the likelihood of detection of those practices and generating systemic improvement to prevent their future reoc­currence.
• • Reinforcing the Legal Framework and Judicial System: aimed at ensuring the comprehensiveness and robustness of the legal and regulatory framework in order to support activities and measures of Af­ghanistan’s anti corruption institutions and measures. The anti-corruption mainstreaming process will be applied jointly with the security sector strategy and the economic and social develop­ment sector strategies to guide their completion in order to ensure that anti-corruption meas­ures are explicitly included and implicitly re­flected in their development proposals.  Im­plementation will draw upon the diagnostic efforts for institutional arrangements for com­bating corruption concluded by UNDP’s Ac­countability and Transparency project. How­ever the key partner institutions on anti­corruption are the ministries and agencies with responsibilities for delivering the Govern­ment’s reform agenda comprising:
• The IARCSC, responsible for the Govern-ment-wide PAR program, directed at im­proving public service management and public service delivery by addressing ad­ministrative structures and systems; hu­man resource management policies, proce­dures and practices and institutional capac­ity building.

• The Control and Audit Office and the Min­istry of Finance, responsible for strengthen­ing the Government’s financial control sys­tems and practices.
• The Ministry of Justice and Supreme Court, responsible for strengthening the legisla­tive framework and improving the effi­ciency and effectiveness of the justice and rule of law sector.
• The AGO, the GIAAC, and Ministry of In­terior responsible for policing anti-corruption measures via inspection and investigation of corrupt practices in the public and private sectors.
• The AIHRC and the National Assembly representative oversight bodies such as the National Assembly and Provincial Coun­cils, responsible for promoting links be­tween civil society and the political deci­sion-making processes.

The Government is firmly committed to fully and effectively implementing these anti­corruption measures.

GENDER EQUITY

Background and context

The Gender Equity Cross Cutting Strategy is the basis for the ANDS to address and reverse women’s historical disadvantage.  The strategy provides a roadmap for various sectors to bring about changes in women’s position in society, their socio-economic condition and access to development opportunities.  This strategy is an overarching framework that synthesizes the critical measures to be pursued through all ANDS sectors to fulfill the Government’s commitments to women’s development as em­bodied in the Constitution, Afghanistan MDGs, Afghanistan Compact, I-ANDS, and interna­tional treaties such as the Convention on the Elimination of all forms of Discrimination against Women (CEDAW) and the Beijing Plat­form for Action (BPFA).

The ultimate goal is ‘gender equality’; a condi­tion where women and men fully enjoy their rights, equally contribute to and enjoy the benefits of development and neither is pre­vented from pursuing what is fair, good and necessary to live a full and satisfying life, Three immediate goals have been prioritized, namely: (i) to attain the 13 gender-specific benchmarks of the Afghanistan Compact/I-ANDS, includ­ing the five-year priorities of NAPWA; (ii) to realize the gender commitments that are main-streamed in each of the ANDS sectors; and (iii) to develop basic institutional capacities of min­istries and government agencies on gender mainstreaming.⁵⁷

This strategy targets three main outcomes:

• a significant number of government enti­ties embracing and implementing gender equity efforts, as indicated by gender sensi­tive policies, strategies, budgets and pro­grams; increased expenditures on gender equity; increasing number of ministries with functional gender equity-promoting mechanisms and technically capable pro­fessionals; and indicators that will be agreed upon for Gender Equity in the ANDS;
• measurable improvements in women’s status as evidenced by reduced illiteracy; higher net enrollment ratio; control over income; equal wages for equal work; lower maternal mortality; increasing leadership and participation in all spheres of life; greater economic opportunities and access to and control over productive assets and income; adequate access to justice systems that are gender sensitive; and reduced vul­nerability to violence in public and domes­tic spheres; and
• greater social acceptance of gender equality as manifested in support for women’s par­ticipation in public affairs, increased ap­preciation of the value of women and girls’ education, increasing number of influential men and institutions promoting gender equity; and participation of women in pol­icy discussions.

 ⁵⁷ Constraints and challenges have been addressed in detail in sector strategy paper as well as the NAPWA.

Implementation framework

The implementation of strategy for gender eq­uity is a shared responsibility among govern­ment entities at the national and sub-national levels. MoWA’s status as lead ministry for women’s advancement will be maintained and strengthened. All government entities will:

(i) foster a work environment that supports egalitarian relationships between women and men; (ii) establish internal enabling mecha­nisms for gender equity; and (iii) support women’s shuras.  ANDS consultative and working groups will be provided with capacity to pursue gender mainstreaming.  Gender ca­pacities of sector professionals will be strength­ened and Gender Studies Institutes will be es­tablished in selected universities beginning with Kabul University.  The informal network of gender advisers will be tapped for a ‘gender mentoring program’ that will transfer gender expertise to nationals.  A technical support program for women managers in the civil ser­vice will also be created. Local chief executives are mandated to ensure that gender equity theme is incorporated into the local develop­ment plan and into the overall work of the local government.  Pilot provinces on gender main­streaming will be developed. DOWAs will build a network of gender advocates and their capacity to oversee sub-national gender main­streaming will be strengthened.

International organizations are encouraged to adopt gender equity in their development co­operation and technical assistance and directly support ministries in implementing gender equity strategy.  The NGO Coordination Coun­cil will be strengthened as a major link of gov­ernment to the NGO community in promoting gender equity. NGOs will be encouraged to target women as project participants and bene­ficiaries and to increase the participation of women in the management of their organiza­tions.  An advocacy and public communication strategy that will transform negative percep­tions and attitudes toward women will be im­plemented nationwide, with particular atten­tion to women, men, media, religious leaders, and institutions and influential decision makers in society.  Non-traditional, culturally-sensitive forms of mass communication will be explored for remote and tribal communities to address cultural obstacles to women’s education, lead­ership and participation in public life, repro­ductive rights, property ownership and inheri­tance.

The Government will establish mechanisms to effectively facilitate, monitor, and coordinate activities on gender.  The Government will also adopt a monitoring scorecard that ministries will use to track their own performance on gender equity.  All sectors will be required to collect and use sex disaggregated data, adopt gender sensitive indicators, and include gender related performance in their regular reports. Performance of sectors on gender will be moni­tored by the Oversight Committee and the JCMB.  The gender indicators and statistical framework of MoWA will be elaborated to con­tain indicators on the performance of govern­ment on the promotion of women’s status. The monitoring and evaluation system of every ministry will:

• Include gender in the terms of reference of the monitoring and evaluation unit and job description of its chiefs; 
• Provide training on gender sensitive moni­toring and reporting;
• Adopt gender sensitive indicators;
• Collect and process sex disaggregated data; and,
• Highlight gender achievements in ministry and sector reports. Surveys that will set the baseline data for monitoring will be con­ducted.

The baseline statistics on women and men in Afghanistan will be updated annually and dis­seminated to strategic users, and NRVA data collection process will be further strengthened to support greater gender desegregation. Evaluation will be undertaken periodically to take stock of achievements, correct gaps and adjust strategies as necessary.  A mid-term evaluation will be conducted in 2008 and an­other on 2011. Insights from the evaluation will be used to inform future planning, including the updating of the National Action Plan for the Women of Afghanistan.

CAPACITY DEVELOPMENT

Background and context

It has become increasingly evident that techni­cal and financial support will remain underuti­lized or poorly utilized unless adequate sys­temic capacities are built.  Years of strife and outmoded methods of governance and man­agement, without accountability and transpar­ency has weakened the capabilities of the pub­lic sector, particularly at provincial and district levels.  There are, however, indications that the capacity of the public sector has been increas­ing over time.  In 2004 ministries were only able to spend about 31 percent of their devel­opment budget allocations.  In 2005 this figure had risen to 44 percent and in 2006 the corre­sponding figure was about 49 percent; in real terms this represents an average growth rate of around 60 percent as budget allocations are increasing quite fast.  There are no clear indica­tors on whether or not the effectiveness of these expenditures have also been increasing. There are indicators that lack of capacity remains a serious problem within the public sector.  The Government, through specific institution build­ing will take the lead in directing capacity de­velopment to where it is most needed and to evaluating the impact of capacity development and technical assistance programs.  This insti­tutional responsibility will be with Inter-ministerial Commission for Capacity Devel­opment (ICCD) that will serve as a single re­porting point for both the Government and donors. ICCD will work out detailed goals for capacity development that will serve cross­sectoral purposes.

The Government encourages donors to donor-funded projects to engage to the maximum ex­tent possible qualified Afghan expatriates and to make greater use of technical experts from the region. These people bring greater under­standing of the historic and cultural environ­ment in which development activities are being implemented.  Development projects that focus on capacity building should increasingly be designed to build on regional human resource capacity.  The Government also recognizes that increasing reliance on building managerial ca­pacity in both the public and private sectors will be necessary to effectively implement the goals of the ANDS.

Implementation framework

There is a limited capacity to effectively im­plement such extensive and intensive capacity development programs in all areas and this will require a well structured institutional mechanism which has to be built and con­stantly strengthened.  The institutional ar­rangements for capacity development, in addi­tion to the ICCD, include the Capacity Devel­opment Working Group (CDWGs), Independ­ent Administrative Reforms and Civil Service Commission (IARCSC) and the Reform Imple­mentation Management Units (RIMUs). ICCD will seek the assistance of the international community to establish and staff a technical secretariat, to provide the administrative and technical support to ICCD. 

ICCD has undertaken a survey of capacity de­velopment and technical assistance programs. At the ministerial level, under the guidance of the Independent Administrative Reforms and Civil Service Commission (IARCSC), Reform Implementation Management Units (RIMU) have been established primarily to restructure ministries so that they could move ahead on pay and grading reform – this process of re­structuring requires clarifying roles and re­sponsibilities, and laying down very clear re­porting lines, and assessing whether individu­als are fit to hold the job they are holding.  Ca­pacity development is not the primary role of the RIMUs, but the RIMUs will identify capac­ity development needs, coordinate programs and initiatives to meet those needs, while monitoring and evaluate the impact.  The ICCD will monitor the progress of the capacity de­velopment projects and programs.  The Presi­dent and Cabinet will receive regular reports on performance of all projects.  Those that are under-performing will be required to provide explanation for their underperformance and their recommendations for bringing the per­formance back on target.  Persistent under-performance will result in a major redesign or closure.

Under the auspices of ICCD the IARCSC will be empowered to encourage RIMUs to work together along the lines of the ANDS/sectoral groupings, to identify common needs and solu­tions as well as assist to articulate specific needs and formulate outline proposals as ap­propriate. Where needed, the IARCSC with donors’ assistance will provide training on ca­pacity needs assessments, capacity develop­ment activities and monitoring and evaluation. Actions include:

• Agreement on specific terms of reference for RIMU;
• Identify any short term technical assistance requirements;

• Conduct capacity assessments with RIMUs, establish and implement training pro­grams;
• Empower and train RIMUs in capacity as­sessments, capacity development, monitor­ing and evaluation;
• Agreement on reporting protocol through capacity development unit to Inter-ministerial capacity development commit­tee; and
• Empower RIMUs to undertake a depart­ment by department capacity assessment until all ministries have been assessed and capacity development plans drawn up to meet needs.

Once the basic institutions required for capac­ity development, program implementation mechanism and priority sectors have been agreed upon, there will be a need to set up a number of training projects. This will include Core Public Sector Training, Financial Man­agement training, Procurement Training, Policy Formulation, Project Development and man­agement, priority capacity development in the private sector, priority capacity development to increase skills in work force and to make more effective use of Diaspora Afghans. 

It will take some time to get results from the capacity development efforts.  In the meantime, more efforts will be made to attract:

• Afghan Expats in country with their diff skills and knowledge;
• Technical assistance from the region, given the many qualified people fully familiar with regional issues; and
• good managers with management skills for variety of managerial positions.

ENVIRONMENT 

Background and context

The National Environment Strategy recognizes the need to give greater attention to environ­mental protections as development occurs.  In May 2005, an independent National Environ­mental Protection Agency was established, be­ing elevated from a department previously es­tablished in the Ministry of Irrigation, Water Resources and Environment.  The organiza­tional transition of the environment function since 2002 has precluded the consistent devel­opment of technical and managerial skills within both NEPA and other governmental authorities involved in environmental man­agement.  Therefore the ANDS focuses on de­veloping National Environment Protection Agency’s (NEPA) capacity to perform its regu­latory, coordination and policy-making duties. 

The ANDS strategic vision is to improve the quality of life of the people of Afghanistan through conservation of the nation’s resources and protection of the environment.  Goals in­clude: (i) secure a clean and healthy environ­ment; (ii) attain sustainable economic and so­cial development while protecting the natural resource base and the environment of the coun­try; and (iii) ensure effective management of the country’s environment through participa­tion of all stakeholders.  The strategy elaborates priority programs areas for environmental management based on thematic strategies in­cluding: restoration and sustainable use of rangelands and forests, conservation of biodi­versity, accession to/ signing and enforcement of MEAs, preservation of natural and cultural heritage sites, encouragement to community-based natural resource management, preven­tion and abatement of pollution, urban envi­ronmental management; environmental educa­tion and awareness.

Implementation framework

Strengthening EIA awareness and institu­tional capacity of NEPA and the line minis­tries will be accorded priority.  Short term and long term outcomes linked to the the­matic objectives (eg. conservation of biodi­versity, abatement of pollution, environ­mental awareness, etc.) will also be priori­tized based on assessment of the expected environmental, social, and health impacts and the institutional, economic and politi­cal constraints.

Strategic coordination of the ANDS is to take place on a sector-by-sector basis through a inter-ministerial and consulta­tive group (CG) mechanisms. Under the CG mechanism, environment features as a cross-cutting issue and is also a sectoral issue in its own right. Environment as a cross-cutting issue, must be mainstreamed across all sectors and in each program area through the development of policy bench­marks to ensure that the Government, do­nors and implementing agencies follow established norms with respect to the in­corporation of environmental considera­tions into the design and implementation of projects, and provide adequate over­sight and monitoring of the environmental impacts of economic and social develop­ment projects.

There is a defined institutional arrange­ment for implementation and monitoring of environment themes.  The groups en­gaged in the implementation of the ANDS will play a crucial role in ensuring issues encountered in the implementation of pro­grams and ministerial/sectoral strategies are effectively addressed. Their assess­ment must be frank, identifying the prob­lems encountered in the implementation of these activities. This will allow the Gov­ernment to more effectively address the issues and meet their obligation of report­ing to the Oversight Committee (OSC) and the JCMB on progress in fulfilling these objectives.

CONCLUSION

The ANDS consolidates critical crosscut­ting issues and integrates them into sector strategies. These are issues that will have a decisive impact on the achievement of all ANDS goals.

Greater regional cooperation will contrib­ute significantly to establishing security in a volatile region and improve the pros­pects for economic growth and develop­ment in Afghanistan.  A key objective in the regional cooperation strategy is to re­move barriers to investment and trade so that regional investors will be better able to do business in Afghanistan and Afghan firms will have greater access to regional markets.  

The elimination of the narcotics industry is essential for increasing security, improving governance and strengthen formal econ­omy if the country.  The large amount of money derived from narcotics supports terrorism and creates opportunities for cor­ruption in public institutions.  The narcot­ics produced in Afghanistan not only de­stroy the lives of Afghans, but impose enormous social costs on people in other countries. The Government, with the ac­tive support of the international commu­nity is determined to eliminate this menace from the country.

Establishing gender equality is essential so that the country is able to make use of a major human resource that is not signifi­cantly under-utilized – Afghan women. Removing barriers that prevent women from fully participating in all aspects of public and private life requires compre­hensive efforts by the Government, donors and throughout the private sector. 

Developing the capacity of the Afghan people to effectively govern this country and to engage in productive employment is necessary if poverty is to be substantially reduced. The Government has established mechanisms to ensure that the enormous resources being devoted to developing ca­pacity in the public and private sectors are utilized in the most effective ways possi­ble.

Achieving these goals require a long term vision. All of the cross-cutting issues will have significant impacts on core national objectives such as poverty reduction, eco­nomic growth, people’s participation in the development process, human rights, re­ducing social vulnerability, enhancing the role of civil society, effective public admin­istrative reforms, developing a sound legal system and expanding financial re­sources.