6 Develop a global partnership for development

Where are we?

Afghanistan is an aid dependent country is financially able to fund only above 60% of its operational budget, the rest, and the entire of its development budget is funded through grants and aid provided by the international community, as well as loans. While international aid has been central to the re-habilitation and development of Afghanistan since 2001, utilization of this aid however was undermined by the lack of capacity, transparency, security, and overall inadequate aid effectiveness due to complex and multiple agendas, unclear goals and lack of coordination among donors, with and within the government of Afghanistan. The issue of donor financing unrelated to development needs but in post-conflict situations politically and militarily motivated, in Afghanistan particularly for the troops contributing countries have been acknowledged.
The Government of Afghanistan and International Community have continuously dialogued and adopted measures to make aid more effective, efficient and accountable. As part of these efforts Paris Declaration on Aid

Effectiveness was adopted, as well as in Kabul Conference and Tokyo Conference key socio-economic and political issues were addressed and clearer commitments were made to improve effectiveness of aid in Afghanistan. The Tokyo Mutual Accountability Framework (TMAF) emphasize stronger monitoring of issues such as the introduction and implementation of reforms, good governance and fighting corruption; the Aid Management Policy (AMP) prepared by the Government of Afghanistan which is structured around principles of increasing ownership of the Afghan government in the development process, enhancing alignment of aid with national priorities, and improving accountability are the most recent of the efforts.

Donor’s accountability to government of fund investment by amount and sector has been less than satisfactory. While there has been progress and improvement, investments do not match the volume and areas of need in the MDGs sectors and other priorities of government of Afghanistan. Aid still has to be better adjusted to Afghanistan’s needs whereby sustainable and inclusive growth is fostered. A good example is the agriculture sector which forms the backbone of the country’s economy, and as such productivity and development of this sector just as in any LDC (Least Developed Country) is essential for sustainable and inclusive growth, receives just around 5% of international aid. 35-40% of all aid according to some estimates has been “wrongly spent”.

The level of aid channeled through the Afghan government budget has increased and donors have committed to ensuring more of their aid is “on-budget” and aligned to national priorities. Key to these negotiated and endorsed policies on aid effectiveness especially the AMP endorsement, it can optimistically be speculated that in future aid to Afghanistan will be more easily accounted for, and be better utilized for the improvement of life of ordinary Afghans. The government, through it National Priority Programs and Aid Management Policy (AMP) will work to ensure adequate provisions are in place to further ensure aid effectiveness, improved cooperation and accountability. The aid will be utilized to enhance the development of the country and improve the lives of ordinary Afghans.

Targets for MDG8
  1. Develop further an open, rule-based, predictable, non-discriminatory trading and financial system
    • Developing countries gain greater access to the markets of developed countries
    • Least developed countries benefit most from tariff reductions, especially on their agricultural products
  2. Address the special needs of least developed countries
    • Net Official development assistance (ODA), total and to the least developed countries, as percentage of OECD/DAC donors' gross national income
    • Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation)
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  3. Address the special needs of landlocked developing countries and small island developing States
    • Official development assistance (ODA) received in landlocked developing countries as a proportion of their gross national income
    • ODA received in small island developing States as a proportion of their gross national incomes
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  4. Deal comprehensively with the debt problems of developing countries
    • Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative)
    • Debt relief committed under HIPC and MDRI Initiatives
    • Debt service as a percentage of exports of goods and services
  5. In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries
    • Proportion of population with access to affordable essential drugs on a sustainable basis
  6. In cooperation with the private sector, make available the benefits of new technologies, especially information and communications
    • Telephone lines per 100 population
    • Cellular subscribers per 100 population
    • Internet users per 100 population