Afghanistan National Development Strategy (A Strategy for Security, Governance, Economic Growth & Poverty Reduction) 2008-2013

Islamic Republic of Afghanistan Afghanistan National Development Strategy 1387 – 1391 (2008 – 2013) A Strategy for Security, Governance, Economic Growth & Poverty Reduction Afghanistan National Development Strategy (ANDS) i بسم اهللا الرحمن الرحيم In the Name of Allah, the Most Compassionate, the Most Merciful ِإنَّ الّلَه َال ُيَغيُِّر َما ِبَقْوٍم َحتَّى ُيَغيُِّروْا َما ِبَأْنُفِسِهْم Verily, never will Allah change the condition of people unless they change it themselves (013,011) VISION FOR AFGHANISTAN By the solar year 1400 (2020), Afghanistan will be: A stable Islamic constitutional democracy at peace with itself and its neighbors, standing with full dignity in the international family. A tolerant, united, and pluralistic nation that honors its Islamic heritage and the deep seated aspirations toward participation, justice, and equal rights for all. A society of hope and prosperity based on a strong, private-sector led market economy, so cial equity, and environmental sustainability. OUR GOALS The Afghanistan National Development Strategy (ANDS) serves as Afghanistan’s Poverty Reduction Strategy Paper (PRSP) and uses the pillars, principles and benchmarks of the Af ghanistan Compact as a foundation. The pillars and goals of the ANDS are: 1. Security: Achieve nationwide stabilization, strengthen law enforcement, and improve personal security for every Afghan. 2. Governance, Rule of Law and Human Rights: Strengthen democratic processes and in stitutions, human rights, the rule of law, delivery of public services and government ac countability. 3. Economic and Social Development: Reduce poverty, ensure sustainable development through a private-sector-led market economy, improve human development indicators, and make significant progress towards the Millennium Development Goals (MDGs). A further vital and cross-cutting area of work is eliminating the narcotics industry, which remains a formidable threat to the people and state of Afghanistan, the region and beyond. Afghanistan National Development Strategy (ANDS) iii Map of Afghanistan Afghanistan National Development Strategy (ANDS) iv Foreword Foreword v In the name of Allah, the most Merciful, the most Compassionate Six and half years ago, the people of Afghanistan and the international community joined hands to liberate Afghanistan from the grip of international terrorism and to begin the journey of rebuilding a nation from a past of violence, destruction and terror. We have come a long way in this shared jour ney. In a few short years, as a result of the partnership between Afghanistan and the international community, we were able to create a new, democratic Constitution, embracing the freedom of speech and equal rights for women. Afghans voted in their first-ever presidential elections and elected a new parliament. Today close to five million Afghan refugees have returned home, one of the largest movements of people to their homeland in history. Thousands of schools have been built, welcoming over six million boys and girls, the highest level ever for Afghanistan. Hundreds of health clinics have been established boosting our basic health coverage from a depressing 9 percent six years ago to over 85 percent today. Access to diagnostic and curative ser vices has increased from almost none in 2002 to more than forty percent. We have rehabilitated 12,200 km of roads, over the past six years. Our rapid economic growth, with double digit growth almost every year, has led to higher income and better living conditions for our people. With a developing road net work and a state-of-the-art communications infrastructure, Afghanistan is better placed to serve as an economic land-bridge in our region. These achievements would not have been possible without the unwavering support of the interna tional community and the strong determination of the Afghan people. I hasten to point out that our achievements must not distract us from the enormity of the tasks that are still ahead. The threat of terrorism and the menace of narcotics are still affecting Afghanistan and the broader region and ham pering our development. Our progress is still undermined by the betrayal of public trust by some functionaries of the state and uncoordinated and inefficient aid delivery mechanisms. Strengthening national and sub-national governance and rebuilding our judiciary are also among our most difficult tasks. To meet these challenges, I am pleased to present Afghanistan’s National Development Strategy (ANDS). This strategy has been completed after two years of hard work and extensive consultations around the country. As an Afghan-owned blueprint for the development of Afghanistan in all spheres of human endeavor, the ANDS will serve as our nation’s Poverty Reduction Strategy Paper. I am con fident that the ANDS will help us in achieving the Afghanistan Compact benchmarks and Millen nium Development Goals. I also consider this document as our roadmap for the long-desired objec tive of Afghanization, as we transition towards less reliance on aid and an increase in self-sustaining economic growth. I thank the international community for their invaluable support. With this Afghan-owned strategy, I ask all of our partners to fully support our national development efforts. I am strongly encouraged to see the participation of the Afghan people and appreciate the efforts of all those in the international community and Afghan society who have contributed to the development of this strategy. Finally, I thank the members of the Oversight Committee and the ANDS Secretariat for the preparation of this document. Hamid Karzai President of the Islamic Republic of Afghanistan Afghanistan National Development Strategy (ANDS) vi For the preparation of the Afghanistan National Development Strategy Message from the Oversight Committee Message from the Ovresight Committee vii In the name of Allah, the most Merciful, the most Compassionate We are pleased to present the Afghanistan National Development Strategy, which reflects the com mitment of the Islamic Republic of Afghanistan to poverty reduction and private sector-led economic growth for a prosperous and stable Afghanistan. The ANDS Oversight Committee (OSC) was man dated by the Government to produce a Millennium Development Goals-based national strategy that is Afghan-owned and meets the requirements for a Poverty Reduction Strategy Paper. The OSC met on a regular basis to design, discuss and oversee the development of the strategy, including the iden tification of the needs and grievances of the people, and the prioritization of resource allocations and actions. To embrace ‘Afghanization” and ownership, the OSC facilitated inclusive and extensive con sultations both at national and sub-national levels. Sustained fiscal support and continuous evaluation and monitoring are essential now to meet the challenges ahead related to ANDS implementation. The democratic aspirations of the Afghan people are high, yet financial resources remain limited. While much has been accomplished since 2001, more remains to be done as we move from “Compact to Impact”. The Afghan Government with support from the international community must act decisively, strategically, and with an absolute commit ment to the ANDS goals and vision. We look forward to working with our government colleagues, civil society representatives, tribal eld ers and religious scholars, the private sector, the international community and, most importantly, fel low Afghans to implement the ANDS, to help realize the Afghanistan Compact benchmarks and Mil lennium Development Goals. Prof. Ishaq Nadiri Senior Economic Advisor to the President Chair, ANDS and JCMB Ahmad Zia Masoud First Vice-President Dr. Rangin Dadfar Spanta Minister of Foreign Affairs Dr. Anwar-ul-Haq Ahady Minister of Finance Sarwar Danish Minister of Justice Dr. Amin Farhang Minister of Commerce and Industry Dr. Jalil Shams Minister of Economy Dr. Zalmay Rassoul National Security Advisor Haneef Atmar Minister of Education Afghanistan National Development Strategy (ANDS) viii Acknowledgments Acknowledgments ix In the name of Allah, the most Merciful, the most Compassionate The Afghanistan National Development Strategy (ANDS) could not have been developed without the generous contribution of many individuals and organizations. The ANDS was finalized under the guidance of the Over sight Committee, appointed by HE President Hamid Karzai and chaired by H.E. Professor Ishaq Nadiri, Senior Economic Advisor to the President and Chair of the ANDS Oversight Committee. The committee included: H.E. Rangeen Dadfar Spanta, Minister of Foreign Affairs; H.E. Anwar-ul-Haq Ahady, Minister of Finance; H.E. Jalil Shams, Minister of Economy; H.E. Sarwar Danish, Minister of Justice; H.E. Haneef Atmar, Minister of Education; H.E. Amin Farhang, Minister of Commerce; and H.E. Zalmai Rassoul, National Security Advisor. We would like to sincerely thank the First Vice-President and Chair of the Economic Council, H.E. Ahmad Zia Massoud. Special thanks are also due to H.E. Hedayat Amin Arsala, Senior Minister and H.E. Waheedulah Shah rani, Deputy Minister of Finance and the Ministry of Finance team. In addition, we would like to thank the Su preme Court, the National Assembly, Government Ministries and Agencies, Provincial Authorities, Afghan Em bassies abroad, national Commissions, the Office of the President, Civil Society Organizations, and International Community. All Ministers, deputy ministers and their focal points, religious leaders, tribal elders, civil society leaders, all Ambassadors and representatives of the international community in Afghanistan; and all Afghan citizens. Na tional and international agencies participated actively in the ANDS consultations. Their contributions, comments and suggestions strengthened the sectoral strategies, ensuring their practical implementation. Thanks are also due to the Ministry of Rural Rehabilitation for their significant contributions to the subnational consultations. Special thanks are further due to the Presidents Advisors, Daud Saba and Noorullah Delawari for their contribu tions, as well as Mahmoud Saikal for his inputs. We are also indebted to the Provincial Governors and their staff for their contributions, support and hospitality to the ANDS preparations. Special thanks go to Wahidullah Waissi, ANDS/PRS Development Process Manager, for his invaluable contribu tion and for the efforts of his team of young Afghan professionals who dedicated themselves tirelessly to com pleting the I-ANDS, Afghanistan Compact and the full ANDS in consultation with both national and interna tional partners. The Sector Coordinators included Rahatullah Naeem, Farzana Rashid Rahimi, Shakir Majeedi, Attaullah Asim, Mohammad Ismail Rahimi, Zalmai Allawdin, Hedayatullah Ashrafi, Shukria Kazemi, Saifurah man Ahmadzai, and; the Sub-National Consultations Team consisted of Mohammad Yousuf Ghaznavi, Mohammad Fahim Mehry, Shahenshah Sherzai, Hekmatullah Latifi, Sayed Rohani and Osman Fahim; and Prof. Malik Sharaf, Naim Hamdard, Saleem Alkozai, Mir Ahmad Tayeb Waizy, Sayed Shah Aminzai, Khwaga Kakar and Mohammad Kazim. Thanks to Nematullah Bizhan for his special contribution from the JCMB Secretariat. We are also indebted to the many national and international advisers who supported this effort. In particular, we would like to thank Zlatko Hurtic, Paul O’Brien, Jim Robertson, Barnett Rubin, Peter Middlebrook, Richard Ponzio, Anita Nirody, Shakti Sinha, Ashok Nigam, Christopher Alexander and Ameerah Haq. Finally, I would like to thank all who contributed towards this endeavor in preparation of the first Afghanistan National Development Strategy, a milestone in our country’s history and a national commitment towards eco nomic growth and poverty reduction in Afghanistan. Adib Farhadi, Director, Afghanistan National Development Strategy, and Joint Coordination and Monitoring Board Secretariat See complete list of contributors in next page. Afghanistan National Development Strategy (ANDS) x In addition to the mentioned names, tens of other Afghans (men and women) had direct role in the preparation of this first ever Afghanistan’s noble development strategy, who devoted their time and energy, and without their valuable efforts, the completion of this huge and highly important task would have been impossible. And, it would have unjust not mentioning their names. These names, categorized as under, include: FROM THE ANDS & JCMB SECRETARIATS Shahpoor Taqat, Ahmad Fahim Ebrat, Khaled Hares, Lutfullah Dinarkhil, Mohammad Arif Hushang, Ahmadul lah Kakar, Nazeef-ur-Rahman Jawad, Mursal Asmati, Samiullah Nazemi, Fardeen Sediqi, Habib Noor Marwat, Sousan Rasuli Rahimi, Assadullah Zarmalwal, Durukhshan Esmati, Abdul Moien Jawhary, Ellaha Baheer, Khwaga Kakar, Wida Yalaqi, Fauzia Asefi, Ziauddin Zia, Gul Ghutai Najeeb, Hamid Majidee, Sayed Mohammad Ameen Habibi, Jawid Shinwari, Zabiullah Zaki, Mohammad Karim Osmani, Qais Mehraban, Abdul Mateen Wal izada, Babrak Noorzad, Abdul Razeq Fakur, Qahir Shafai, Khwja Gharib Fitri, Shafiqullah Qaderi, M. Nabi Sroosh, Mir Mohammad Javid Qahari, Sameera. Muheb, Sayed Hamed Daqiq, Ahmad Siroos Popal, Ahmad Shah Safi, Ahmad Shah Aminzai, Ahmad Khalid Asghari, Abdul Sabour fazil, Hamid Hashimi, Mohammad Ilyas, Hameed Sayedy, Shafiqullah Ibrahimi, Ab.Ghafar, Habibullah Maiwand, Mustafa Ahmadzai, Haji Sham suddin, Eng. Bahawuddin Baha, Barat Ali, Khalid Malik Asghar, Ahmad Zia Kechkini, Muhammad Mustafa Mustaan, Abdullah Waziry, Mohammad Naeem, Husnia Hushang, Khalid Islam, Jafar Asifi, Ajmal Payman, Abdullah Barakzai Herawi, Sear Zafar, Emilie Jelinek, Helen Ólafsdóttir, Amy Paunila, Sorabh Sinha, Subhash Misra, Atul Gupta, Kara Johnston Molina, Ismail Ali Khan, Peter Middlebrook, Shanthini Dawson, Nipa Baner jee, Andrew Pinney, Sarah Lister and Andja Cosic. EDITORS Azam Rahnaward Zaryab, Habibullah Rafi, Sarwar Azarakhsh, Razaq Mamoon, Jawid Farhad, Prof Mohammad Yunus Toghyan, Prof Mohammad Nabi Salehi, Prof Sayed Jamaluddin Hashimi, Martha Fay, Trent Bertrand, Richard Filmer and James Corbishley. GOVERNMENT OFFICIALS Their Excellencies, Mohammad Karim Khalili, General Abdul Rahim Wardak, Zarar Ahmad Moqbel, Abdul Karim Khoram, Noor Mohammad Qarqeen, Dr. Mohammad Azam Dadfar, Mohammad Ismail Khan, Hamidul lah Qaderi, Hosn Bano Ghazanfar, Sohrab Ali Saffary, Dr. Sayed Mohammad Amin Fatimie, Obaidullah Ramin, Eng. Mohammad. Ibrahim Adel, Eng. Amirzai Sangin, Mohammad Ehsan Zia, Karim Barahowie, Eng. Yousef Pashtun, Gen. Khodaidad, Sher Mohammad Etebari, Dr. Farooq Wardak, Abdul Salam Azimi, Mohammad Omar Zakhilwal, Amrullah Saleh, Abdul Qadeer Fitrat, Mir Abdul Ahad Sahiby, Dr. Abdul Jabbar Sabit, Abdul Bari Rashid, M. Anwar Jigdalak, Dr. Abdul Matin Edrak, Dr. Sharif Sharifi, Mustafa Zahir, Ahmad Mushahid, Abdul Rahman Ghafori, Abdul Rauf Bari, Fatima Gilani, Dr. Seema Samar, Azizullah Lodin and Ezatullah Wasifi. Some former ministers, who have contributed to the ANDS process during their postings with the government are the followings: Dr. Abdullah Abdullah, Ali Ahmad Jalali, Sayed Makhdoom Raheen, Eng. Nematullah Ehsan Jawid, Habibullah Qaderi, Mohammad Akbar Akbar and Jawid Lodin. NATIONAL ASSEMBLY Their Excellencies, Prof. Sebghatullah Mojadidi, Mohammad Yunus Qanoni, Khial Mohammad Hussaini, Abdul Jabbar Shelgari, Zahira Ahmadyar Mowlai, Tahira Mirzad, Sultan Jan Khaksar, Taiba Zahidi, Mohammad Nasir Attai, Rahima Jami, Saadat Fatai, Sayed Mustafa Kazimi, SafarMohammad kakar, Mohammad Amin Qani, Dr. Fatima Aziz, Mohammad Rangeen, Mushwani, Dr. Habiba Danish, Samia Aziz Saddat, Haji Musa Khan, Roshanak Wardak, Pacha Khan Zadran, Gul Pacha Majeedi, Fazl-u-Rehman Samkani, Sayed Ghulam Farooq Meerani, Haji Faqir, Delbar Nazari, Eng. Mohammad Arif Zarif, Alhaj Mula Tarakhil, Quderia Yazdan Parast and Shinkai Zaheen Karookhil. PROVINCIAL GOVERNORS Their Excellencies, Haji Din Mohammad, Habiba Sarabi, Meerajuddin Pattan, Shir Ahmad Khosti, Dr. Usman Usmani, Abdul Jabar Naeemi, Abdullah wardak, Abdul Jabar Taqwa, Abdul Satar Murad, Bahlol Bahej, Gul Agha Shirzai, Gulab Mangal, Lutfullah Mashal, Sayed Fazlullah Wahidi, Haji Shahlezi Dedar, Assadullah Wafa, Mohammad Tamim, Nuristani, Arsala Jamal, Rehmatullah Rehmat, Juma Khan Hamdard, Dr. Akram Khpalwak, Assadullah Khalid, Delbar Jan Arman, Assadullah Hamdam, Abdul Hakim Munib, Alhaj Mawlawi Bahruddin Baloch, Sayed Hussain Anweri, Alhaj Baz Mohammad Ahmedy, Mohammad Ashraf, Nasiri, Abdul Jabar Haqbeen, Mohammad Haleem Yousufzai, Eng. Mohammad Ismail, Abdul Latif Ibrahimi, Munshi Abdul Majeed, Atta Mohammad Noor, Mohammad Hashim Zaray, Sayed Mohammad Iqbal Munib, Abdul Haq Shafaq, Qazi Enyatullah Enayat, Eng. Mohammad Essa, Sultan Ali Uruzgani and Khawaja Khalilullah Seddiqi. Acknowledgments xi HEADS OF PROVINCIAL COUNCILS Qari Samiullah, Habib-u-Rehman, Mohammad, Janan, Ustad Abdul Hakim, Farid Shafaq, Munawar Khan, Maw lawi, Ihsanullah, Fazal Hadi Muslim, Iamaaduddin Abdul Rahimzai, Abdul Wali, Rahmatullah Rashidi, Taj Ali Khan Sabir, Miakhil Zazai, Waziri, Ahmad Wali Karzai, Haji Mohammad Hashim, Mawlawi Hamdullah, Haji Mohammad Gul, Haji Sediq Khan, Abdul Qais Roshan, Dr. Hamayun Azizi, Daud Ghafoori, Qari Dawlat, Dr. Mahiuddin, Mawlawi Abdullah, Mawlawi Lutfullah, Rehmani, Farhad Azeemi, Mawlawi Abdul Hai, Mawlawi Abdul Ghani, Haji Sarajuddin, Sayed Farukh Shah Jinab, Raihana Azad and Poya. THOSE NATIONALS AND INTERNATIONALS WHO HAD CONTRIBUTED IN THE FOLLOWING ANDS SECTORS: SECURITY SECTOR Ab. Malik Qurishi, Acbar Quraishi, Hamayon Tandar, General Abdul Hadi Khalid, General Muhebullah Muheb, General Mohammad Taher Nazem, General Muslim, General Mashodullah, Col. Mohammad Taher, Abudul Zia,, General Ghiasee, Jamil Shamyana, Sayed Zahoor Rasuli, Aziz Ahmadzai,, Khalid Zekria and Dr. Mohammad Haider Reza. GOVERNANCE & PUBLIC ADMINISTRATION REFORM SECTOR Sultan Shah Akifi, M. Akbar Akramzada, Abdul Qadeer, Barna Karimi, Gheyas Wardak, Rahela Sidiqi, Sayed Zabiullah Sawayz, Asmatullah Ramzi, M. Sami Nabi, Dr, Daud Najafi, Monema Mansoor, Abdul Saboor, S. Noorullah Hashimi, Eng. Abdul Wasi, Amanullah Afshari, Zia Langahary, Fouzia Amini, Shazia Darwish, Moh. Ibrahim Safai, Ajmal Ayan, Zalmai Hotak, Amin Shafiee, Diana Nawazi, Jamal Nasir, Eng. Moh. Emal Azimi, Qurban Ali Rahimi, Mahesh Shukla, Verginia Sheffield, Kawun Kakar and Zia Frahmand. JUSTICE & RURAL OF LAW SECTOR Dr. Abdul Malik Kamawi, Dr. Qasem Hshimzai, Mohammad Isahq Alko, Abdul Aleem Samadi, Temorsha Sta nekzai, Mohammad Sediq Zhobal, Dr. Arif, Kawun Kakar, Hamidullah Amiry, Sayed Jalal Jalal, Munir Ahmad Pathang, Afizullah Noorestani, Zia Frahmand, Najim Animashaun, Sara Rezogli, Daniele Canistri,, Katherine Blanchette and Dr. Martine Lau. RELIGIOUS AFFAIRS SECTOR Shir Ali Zarif, Abdul Wali Basirat, Dr. Rezai, Sayed Norrullah Murad, Maulawi Esrarullhaq, Maulawi Dahee-ul Haq, Maulawi Muslem, Prof Asadullah Jahidi and Prof Lutfurahaman Sayedi. TRANSPORT & CIVIL AVIATION SECTOR Raz Mohammad Alami, Ghulam Ali Rasikh, Dr. Mohammad Yaqub Rassuli, Mohammad Ramazan Shafaq, Robert Kamphuis, G.K.Singh, Dr. Mohammad Wali Rassoli, Adel Shah, Saleem Bedya, Eng. Assadullah Oriakhel, Sohail Kaker, Patyal Ghorzang, Delbar Abdi, Eng. Qiamudin Jalalzada, Jamal Nasir, Raz Mohammad, Eng. Wais Ahmad, Salem Shah Ibrahimi, Eng. Khalilurahman, Eng. Satar Salim, Arsalan Ghalieh, Roya Husseni, Amin Shafiee, Diana Nawazi, Eng. Mohammad Azim, Eng. Waheedullah, Azizi, Pushpa Pathak, Dr. Hassan Abdullahi, General Munir Mangal, General Noorudin, Greg Gajewski, Barna Karimi, Mohammad Qurban Haqqjo and Ahmad Shah Hemat. ENERGY SECTOR Eng. Mir M. Sediq Ashan, Eng. Zia Gul Saljuki, Eng. Ghulam Rabani, Eng. Hashim, Eng. Sarwar, Eng. Wahid, Mary Louise, Arsalan Ghalieh, Salem Shah Ibrahimi, Eng. Khuzhman Ulomi, Eng. Mohmmad Farid Fazaly, Eng. Abdul Qudos Hamidi, Eng. Wais Ahmad, Roya Husseni, Amin Shafiee, Diana Nawazi, Russell Profozich and Matthew W. Addison. WATER RESOURCE MANAGEMENT SECTOR Eng. Shojaudin Ziaie, Eng. Sultan Mahmood, Hans Husselman, Paul Collins, Eng. Sayed Sharif Shobair, Mohammad Qasim Naimi, Eng. Pir Mohammad Azizi, Eng. Dad Mohammad Baheer, Ghulam Hassan, Eng. Mohammad Naim Tokhi, Eng. Qiamudin Jalalzada, Mohammad Qasim Salehi, Abdul Hashim Hikmat, Eng. Ab dul Waheed Hamidi, Eng. Fahimullah Ziaee, Eng. Waheedullah Majeed, Eng. M. Ali Akbari, Roya Husseni, Amin Shafiee, Diana Nawazi and Jamal Nasir. INFORMATION & COMMUNICATION TECHNOLOGY SECTOR Baryalai Hassam, Ajmal Ayan, Muhammad Aimal Marjan, Oliver Dziggel, Bhupal Nanda URBAN DEVELOPMENT SECTOR Eng. Said Osman, Eng. Abdul Hasib Latifi, Jamal Nasir, Richard Geier, Pushpa Pathak, Fernando Da Cruz, Jolyon Leslie,, Eng. Abdul Khaliq Nemat, Eng. Ibrahimi, Srinivasa Rao Podipireddy, Barna Karimi, Eng. Qia mudin Djalalzada PhD, Dr. Hassan Abdullahi, Eng. Waheedullah Azizi, Mahmoud Saikal, Mohammad Qurban Haqjo and Ahmad Shah Hemat. Afghanistan National Development Strategy (ANDS) xii MINES & NATURAL RESOURCES SECTOR Eng. Chaman Shah Ahmadi, Eng. Abdul Wakil, Eng. Sadeq, Eng. Khuzhman Ulomi, Eng. Mohmmad Farid Fazaly, Eng. Masoom, Eng. Mohammad Akram Ghiasi, Eng Abdul Qudos Hamidi and M. Heydari. EDUCATION AND CULTURE SECTOR Dr. Abdul Ghafor Ghaznavi, Abdul Wassay Arian Mohammad Azim Karbalai, Asadullah Zamir Mohmmand, Ab.Rahim Husainyar, Mohammad Esa Rezaie, Mohammad Ghous Bashir, Mohammad Hussain Farahmand, Abdul Rahim Wardak, Abdul Rahim Nasiri, Mohammad Musa Rahimi, Deen Mohammad Safi, Fazel Ahmad Fazelyar, Richard Filmer, Sardar Mohammad Roshan, Mohammad Ibrahim, Dr. Mohammad Yahya Wiar, Mohammad Razaq Noori, Javeed Attaee, Jena Haidari, Wakil Ahmad Bayan and Stephen Vardigans. MEDIA, CULTURE AND YOUTH SECTOR Sayed Omar Sultan, Mohammad Zahir Ghauss, Najibullah Manalai, Shams Zardasht, Shams, Zalami Hotak, Brendan Cassar, Yadgar Safi, Mohammad Ismail Aslami, Masonari, Rasuli and Ghulam Farooq Sawab. HEALTH & NUTRITION SECTOR Dr. Faizullah Kakar, Dr. Aqila Noori, Dr. Ahmad Jan, Dr. Wali, Dr. Daud Karimi, Dr. Zarmina, Nazira Rahman, Charlotte Dufour and Marghalry Khara. AGRICULTURE & RURAL DEVELOPMENT SECTOR Pir Mohammad Azizi, Mohammad Asif Rahimy, Eng. Rahman Habib, Nasrullah Bakhtani, Eng. Wais Aahmad Barmak, Salem Shah Ibrahimi, Arsalan Ghalieh, Amin Shafiee, Diana Nawazi, Roya Husseni, Cristy Ututalum, Joji Tokeshi, Loren Flaming and Clemence J. Weber. SOCIAL PROTECTION SECTOR Wasil Noor Mohmand, Mohammad Ghous Bashiri, Mazari Safa, Mazhgan Mustafawi, Naqibullah Hamdard, Sayed Asghar Haidari, Samimullah Sultani, Sanjeev Shirvastav, Zahidullah, Wahidullah Barekzai, Dr. Sayed Ahmad Zia Bina, Feroz Ali, Shahbaz Khan, Khawaja Gharib Fitri, Zia Ahmad Jalal, Eng. Habibullah Yanoor, Eng. Sardar Mohammad, Eng. M. Sediq Hasani, Ajmail Karimi, Seeta Giri, Nasir Ahmad Popal, Nooria Banwal, Hus sain Ali Moeen, Mohammad Ibrahim Safi, Mohammad Yahya Wiar, Dr. Shir Shah Bayan, Samiulhaq Sami, Elisa beth Rousset, Carol Le Duc, Abdul Ghani Kazimi, Naseer Ahamd Ayani, Naysan Adlparvar, Khalid Khoshbin, Abdul Rahim Wardak, Abdul Rahim Nasiri and Zlatko Hurtic. REFUGEES, RETURNEES & IDPS SECTOR Abdul Qadir Ahadi, Fazel Ahmad Azimi, Abdul Bari Rostaee, Khwja Gharib Fitri, Zia Ahmad Jalal, Abdul Qader Zazai, Zahida Shahidi, Sayed Rahim, Dr. Mohammad Yahya Wiar, Mohammad Zia Farahmand, M. Daud Pan jshiri, Mohammad Erfani Ayoob, Mohammad Sediq Rasoli, Eng. Habibullah Yahoor, Naseer Ahmad Ayani, Khalid Khoshbin, Ahmad Qais Munhazim, Malang Ibrahimi, Sardar Wali Wardak, Mohammad Nader Farhad, Salwator Lembardo and Ewen Macleod. PRIVATE SECTOR DEVELOPMENT SECTOR Dr. Mustafa Mastor, Dr. Shah Mehrabi, Waheed Qaderi, Ahmad Farid Nabi, Anwar Aryan, Mozaml Shinwari, Ateeq Nosher, Mustafa Aria, Ghazaal Habibyar, Waleed Payenda, Zia Ur Rahman, Lejla Catic Hurtic, Lisa Pinsley, Mohammad Mamoon Sarwary, Mirwais Ahmadzai, Ziauddin Zia, Sharif Sharifi, Said Azim Hossainy, Hafizullah Wali Rahimi, Mohammad Shah Hashimi, Abdul Wassay Haqiqi, Bashir Ahamd Seyat, Heydayatullah Watanyar, Mohammad Yousuf Rajabi, Shah Mohammad Jan, Mohammad Azim Wardak, Tarana Wafi, Ahmad Feroz Rasikh, Mohammad Yousuf Jabarkhail, Khalid Yousufzai, Najib Wardak, Ahmad Shah Taheri, Yousuf Nuristani, Haji Khalilurahman, Mohammad Asif Ferozan, Shakib Noori, Seliman Fatimi, Gulam Mohammad Aylaqi, Shiren Aga Sakhi, Khanjan Alkozai, Popalzai Popal, Omar Zakhiwal, Eng. Rahman Habib, Wahidullah Nosher, Sayed Hassan, Safi Popalzai, Sardar Mohammad Nabard, Jaweed Zeerak, Megal Leric, Derin Daivs, Nick Polite, Martin Kipping, Shafiq Gaohari, Garig Alison, Trend Brathernad, James Corbishly, Kety Walsh, Flip Kabnis and Mikaila Eglan. GENDER EQUITY Sayeda Mujgan Mustafavi, Palwasha Kakar, Mazari Safa, Fauzi Habibi, Nafisa Kohistani, Marghaler Khara, Ghu lam Farooq Sawab, Karima Salik, Jeena Haidary, Monema Mansoor, Nooria Banwal, Gulrukh Badakhshy, Has san Ali Moeen, Ahmad Zai Munsef, Mohammad Jahid, Mohammad Zahir, Nazia Faizee, DR. Hamida, Tamim Lomani, Gul Ghotai, Zohera Hafizi, Eng. Najiba, Noorzia Kohistani, Cliana Nawazi, Shahperay, Latifa, Meryam Aslan, Ermie Valdeavilla, Huma Sabri, Latifa Hamidi, Ahmad Sulaiman Hedayat, Ajab Niaji, Marzia Alam, Henri-Francois Morand, Ian Holland, Shipra Bose, Blanka Simunkova, Habibullah Wahidi, Mirwaise Sadaat, Rosanita Serrano, Hasin Safi, Jan Reynders, Muhahid Rustaqi, Barbara Ammirati, Nesrin Hannoun, Murwarid Ziaee, Saleha Kaliq, Shah Mahmood Miakhail, Husai Wardak, Mohammad Payab, Palwasha Hassan, Nabila Acknowledgments xiii Musleh, Wahidullah Popalzai, Makiko Kabota, Raju Malla-Dhakal, Sousan Reesor, Saifora Paktiss, Sara Rezoagli, Laura Raccion, Sofia Orrebrink, Inger Sangnes, Pieter Leenlingt, Amina Omeri, Ishaq Shanwari, S. M. Shah, Anna Wordsworth and Deborah Smith. COUNTER NARCOTICS Dr. Zafar Khan, Dr. Mohammad Yahyia Wiar, Abdul Haleem Wahidi, Mohammad Farooq Yaqoobi, Abdul Sa laam Ghiasi, Abdul Samad, Hamidulalh Amiri, Homayoon Paikar, Nicola Lee, Divid Macdonald, Tesbehullah Kan Shinwari and Amin Shaifee ANTI CORRUPTION Dr. Mohammad Qasim Hashimzai, Kawun Kakar, Hamidullah Amiry, Ali-Reza Mowhadi, Dr. Kamawi, Dr. Arif, Mohammd Qasim Halimi, Mohammad Monir Patang, Sayed Jalal Jalal, Rahela Hashim Sidiqi, Zabiullah Sawayz, Abdul Halim Marefat Almas, Mohammd Yuosuf Jalal, Sayed Amin Amin, Ibrahim Safi, Zai Frahmand,, Jamal Nasir, Ghulam Dastgir Meezan, Sanzer Kakar, Micheal Mota, Lary Sage, Jack Dougherty, Khwaga Kakar and Divad Watt. REGIONAL COOPERATION Enayatullah Nabiel, Eng. Zia Gul Saljuki, Kadir Nur, Mir Mohammad Sediq Eshan, Shakti Sinha, Mohammad Ramazan Shafaq, Eng. Hashim, M. Ghous Bashiri, Ziauddin Zia, Said Azim Hossainy, Azim Wardak, Mahmoud Saikal, Mohammad Mamoon Sarwary, Fazel Ahamd Bahrami, Feroz Rasikh, Saifullah Abid, Dr. Elham, Jack Dawtri, Eng. Salik and Mohammad Reza Jawad. ENVIRONMENT Mustapha Zaher, Eng. Dad Mohammad Baheer, Sayd Mohmmad Rahimi, Asif Zaidi, Belinda Bowling, Fatemah Shams, Suliman Salari and Erin Hannan. THE NON GOVERNMENTAL AND CIVIL SOCIETY ORGANIZATIONS Mohammad Hashim Mahyar, Eng. Aziz Rafiee, Afifa Azim, Lida Yaqoubi, Sayed Fazlullah Wahidi, Anja de beer, Dr. M.Saeed Niazi, Eng. Jan Mohammad, Rahmatullah Kamran, Asmatullah Alizai, Roya Rahmani, Jamila Af ghani, Sultan Maqsood Fazel, Fahim Hakim, Jawid Nader, Naysan Adalparvar, Haroon Shams, Grant Walton, Christen Dyness, Michael Scott Braunschweig, Tilly Reed, Razia Hassani, Sohiala yarzad, Eng. Hakim Gul Ahmadi, Eng. Sayed Rahim Sattar,Eng. Bariali Omerzai, Abdul Ahad Maihanyar, Naeem Asghari, Abdul Halim, Firoz Ali Alizada, Saifora Barekzai, Sheila Sameme, Sayed Jawed Quanee, Eng. Khial Shaha, Bahara Sarwary, Soraya Parlika, Laila Langari, Mary Akrami and Richard Blane. MINISTRY REPRESENTATIVE IN SUBNATIONAL CONSULTATIONS Pair Mohammad Khan, Mohammad Nasim, Safar ali, Sakhi khan, Mohammad Akbar, Abdul Samad, Said Ab dulqahar, Zabihullah, Zakrya khan, Mohammad Kazim, Wahidullah, Mohammad Yousuf, Qasim khan, Mohammad Sarwar, Mohammad shah, Abdul Wakel, Bakht Muner, Amir Muhammad Noori, Abdulghafoor, Abdul Ghiyas khan, Painda Mohammad khan, Mohibullah, Ahmad Nabi Farahi, Khwaja Dawa jan, Wafiullah, Abdul Mukhtar, Abdullkhaliq,, Tasbihullah Shinwari, Eng. Khalil Mangal, Mir Abdullah, Abdul Khaliq Faizi, Bismellah Khan, Ali Reza Mohadi, Said Ahmadllah, Abdull Rahman Azizi, Asadullah Wahdat, Said Abdullah, Haji Abdul Qader, Abdul Qadir, Haji Bismellah, Qazi Fazluddin, Dawlat mohammad, Mohammad Ibrahim Sa fai, Sadiqullah Reshtya, Muhibullah, Abdul Alim, Mohammad.Zia farahmand, Mohammad farooq Azizi, Nasir Ahmad Karimzai, Sultan Ahmad, Haji Abdul Wasy, Lal Mohammad Noori, Asdullah barakzai, Hamidullah, Mehrabuddin, Fida, Ghulam, mohammad, Sultan mohammad, Hamdullah, Sultanullah, Mohammad Naem, Nahed Nazari, Sahed baqi Amiri, Gull ghutai, Arifa Samadi, Tamim lonami, Sallahudin Faizi, Sayed baqir Amiri, Ahmad zubair rahel, Gullrokh, Ismail, Shirin Sahar, Khan Muhamad, Abdul Mallek Qazi, Abdul Muheb, Ali dost Shahab, Muhamad Tayeb, Munir Mahrwar, M.meelad, Mahrwar, Abdul Rafi Sahel, Mohammad Humayoon, Dr. Noormuhamad Niyazi, Pacha khan, Mirza Ahmad, Abdul Rahim Hassanyar, Dr. Habibullah, Sayed Ahmad, Dr. Dost, Dr. Mohammad Naem Abi, Hasan Husainy, Dr. Raoufi, Said Ahmad Gawhari, Dr. Sadiq, Mohammad Na sim, Zahidullah, Dr. Irag Feroz, Dr. Mohamad Said, Dr. Dawood, Said Ahmad Ghori, Dr. Ahmad Jawed, Dr. Rabi, Dr. zekrya, Dr. Shokohmand, Dr. Mohammad Tawab, Dr. Dostyar, Mahbob Wazirwall, Nazar Mohammad, Mohammad Ibrahim, Abdul Saboor Qazi, Said Ahmad Shah, Miram Jan, Hamidullah Baha, Mohammad Nasim, Eng. Hashim, Azizullah, Eng. Faiz, Eng. Ashuqullh, Eng. Rozbeh, Eng. Dad Mohammad, Eng, Mohammad Qasem, Eng. Ali Ahmad, Eng. Mohammad Nabi, Dawood, Eng. Gull bahram, Dr. Mohammad Den, Eng. Abdul lah Eng. Ali Ahamd, Eng. Alif Khan, Aminullah Mahmod, Mohammad Musa Afzali, Abdul Qasim, Ali Mohammad, Eng. Rahmatullah, Eng. Saifurahman, Eng. Idress Angar, Eng. Zaringul Sarter, Eng. Maruf, Eng. Ajmal, Mohammad Ashraf, Ahmad khlid, Azizurahman, Humayoun, Eng. Zaringull Shinwari, Eng. Kabir, Eng. Abdul Razeq, Shawali Khan, Mohammad Reshad, Abdul Mohib, Mohammad Akbar Lodin, Mohammad Farooq Umer Yar, Abdul Sabor, Roullah, Mahram Ali, Mohammad Naeem Khan, Mohammad Ali, Dinullah, Mohammad Omer, Ghulam Nabi, Niaz Mohammad, Hassibullah Amini, Muhamad mateen, Muhammad Mehdi, Yar Muhammad, Haseeb Mehridin, Khwga Mehrabudin, Abdul Basir, Taheera, Shahnawaz Khan, Abdul Rashid, Afghanistan National Development Strategy (ANDS) xiv Shah Muhammad, Hamidi, Abdul Raziq, Mohammad Sabor, Mir Husain, Abdul Salam Shanawaz, Sabur Shir zad, Shah Muhamood, Ghulam Rabani, Abdul Salam Khan, Abdul Ghiyas, Dr Fazilludin, Hafizullah, Abdul raziq, Rahimi, Nasrullaha Bakhtani, Shah Muhammad, Dr. Akram Karimi, Mohammad Karim Banwal, Eng. Ab dulqader Zahin, Eng. Shabir Ahamad, Muheburahman, Abdul Maruf Panjshiri, Eng. Mohammad Jafar, Abdul Nasir Qani, Eng. Mohammad Rahim, Eng. Habibulllah, Eng. Abdul Wali, Eng. Omer, Eng. Shafiq Zhobal, Noor Ali, Eng. Lutfullah, Ahamdullah, Feridoon Ahmadi, Eng. Asadullah, Hamyoon, Abdul Baqi Shaidi, Eng. Jan Mohammad, Eng. Mohammad Ismail, Abdulwajeed Wajeed, Sayed Gulam Shah, Eng. Mohammad Ameen, Eng. Mohammad Essa, Aminullah Nasiri and Eng. Faizullah. ANDS PROVINCIAL FOCAL POINTS Wais Munib, Lal Mohammad Walizada, Faiz Mohammad Daqiq, Jan Mohammad, Eng. Shabir Ahmad, Eng. Noorzai, Aziz-ur-Rehman, Amin Ahmad Daqiq, Ahmad Wali Hakimi, Aminudin Baidar, Shah Muhamood, Haz rat Gul Abid, Eng Hamid Shah, Mohammad Tahir, Haji Mohammad Ayoub Zurmati, Mohammad Rahim Ra himi, Dr. Habib Rehman Romal, Eng. Mohammad Hashim, Khawaja Khalilullah Sediqi, Eng. Fariadoon Ahmady, Eng. Abdul Nasir, Eng. Taj Mohammad Zulal, Abdul Bayes, Abdullah Samandari, Eng. Shah Hussain Atif, Abdul Rashid, Abdul Wasay Muslih, Haji Abdul Rehman, Eng. Sayed Hamidullah, Bismilah Bariz, Ghulam Abu Baker Hajizada, Eng. Mohammad Hashim Eshphary, Salman Ali Sediqi and Mohmmad Ali Najafi. Acknowledgments xv Afghanistan National Development Strategy (ANDS) xvi Table of Contents Contents xvii Map of Afghanistan ......................................................................................................................................... iii Foreword............................................................................................................................................................. iv Message from the Oversight Committee...................................................................................................... vi Acknowledgments.......................................................................................................................................... xvi Acronyms and Abbreviations......................................................................................................................... xx Glossary of Afghan Terms.......................................................................................................................... xxiii INTRODUCTION .............................................................................................................................................. 1 Background .......................................................................................................................................................... 1 Achievements Since 2001.................................................................................................................................... 1 Afghanistan’s Challenges .................................................................................................................................. 3 International Support for Afghanistan ............................................................................................................. 5 The Afghanistan National Development Strategy......................................................................................... 5 PART I .................................................................................................................................................................. 3 PROCESS, GOALS AND POLICY DIRECTIONS....................................................................................... 3 CHAPTER 1 ......................................................................................................................................................... 5 THE ANDS: AN OVERVIEW .......................................................................................................................... 5 Security.................................................................................................................................................................. 5 Governance, rule of law, justice and human rights ........................................................................................ 6 Economic and social development.................................................................................................................... 7 Cross-Cutting Issues.......................................................................................................................................... 13 Enhancing Aid Effectiveness and Aid Coordination.................................................................................... 14 Implementation and Monitoring of the ANDS ............................................................................................. 15 CHAPTER 2 ....................................................................................................................................................... 17 THE PARTICIPATORY PROCESS AND PROVINCIAL DEVELOPMENT PLANS ......................... 17 Organizing principles and participation process ....................................................................................... 17 Consultation process ......................................................................................................................................... 19 Provincial Development Plans (PDPs)............................................................................................................ 20 Prioritization and sequencing of the PDPs..................................................................................................... 21 Integration of the PDPs into ANDS ................................................................................................................ 21 Outcomes from the provincial development planning process .................................................................. 22 Prioritization of the pillars................................................................................................................................ 22 Regional variation in priorities ........................................................................................................................ 24 Conclusion .......................................................................................................................................................... 25 CHAPTER 3 ....................................................................................................................................................... 27 THE POVERTY PROFILE............................................................................................................................... 27 Data collection, poverty measurements and estimates ................................................................................ 27 Poverty estimates............................................................................................................................................... 28 Poverty in Afghanistan: main characteristics of inequality ......................................................................... 29 Most important causes of poverty: poverty correlates ................................................................................. 31 Who the poor are: the most vulnerable groups............................................................................................. 33 Policy framework for poverty reduction........................................................................................................ 33 High priority sector policies for poverty reduction ...................................................................................... 34 Conclusion .......................................................................................................................................................... 36 PART II............................................................................................................................................................... 37 THE NATIONAL DEVELOPMENT STRATEGY ...................................................................................... 37 CHAPTER 4 ....................................................................................................................................................... 39 MACROECONOMIC FRAMEWORK ......................................................................................................... 39 Linking growth with poverty reduction and employment creation .......................................................... 40 Afghanistan National Development Strategy (ANDS) xviii Growth Projection and Strategy ...................................................................................................................... 44 Fiscal policy ........................................................................................................................................................ 46 Monetary policy................................................................................................................................................. 49 Financing the ANDS.......................................................................................................................................... 51 Conclusion .......................................................................................................................................................... 52 CHAPTER 5 ....................................................................................................................................................... 54 SECURITY ......................................................................................................................................................... 54 Current situation................................................................................................................................................ 54 Policy framework............................................................................................................................................... 56 Security institutions........................................................................................................................................... 57 ‘Right-Financing’ Security Sector Reform ...................................................................................................... 59 Sound Administration, Justice and Judicial System ..................................................................................... 60 Relations with nieghbors and international allies......................................................................................... 60 Conclusion .......................................................................................................................................................... 60 CHAPTER 6 ....................................................................................................................................................... 62 GOVERNANCE, RULE OF LAW & HUMAN RIGHTS ........................................................................... 62 Governance, Public Administration Reform and human rights ................................................................. 62 Justice .................................................................................................................................................................. 65 Religious affairs ................................................................................................................................................. 69 Conclusion .......................................................................................................................................................... 71 CHAPTER 7 ....................................................................................................................................................... 75 ECONOMIC AND SOCIAL DEVELOPMENT .......................................................................................... 75 Private sector development.............................................................................................................................. 75 Energy ................................................................................................................................................................. 79 Water and irrigation.......................................................................................................................................... 84 Agriculture and rural development................................................................................................................ 89 Transport............................................................................................................................................................. 95 Information and Communications Technology ............................................................................................ 98 Urban development......................................................................................................................................... 103 Mining ............................................................................................................................................................... 108 Health and Nutrition....................................................................................................................................... 111 Education .......................................................................................................................................................... 116 Culture, youth and media .............................................................................................................................. 123 Social protection............................................................................................................................................... 126 Refuges, returnees and internally displaced persons ................................................................................. 132 Conclusion ........................................................................................................................................................ 136 CHAPTER 8 ..................................................................................................................................................... 146 CROSS-CUTTING ISSUES .......................................................................................................................... 146 Regional cooperation....................................................................................................................................... 146 Counter narcotics............................................................................................................................................. 147 Anti-corruption ................................................................................................................................................ 149 Gender equity................................................................................................................................................... 150 Capacity development .................................................................................................................................... 152 Environment..................................................................................................................................................... 153 Conclusion ........................................................................................................................................................ 154 PART III ........................................................................................................................................................... 155 AID EFFECTIVENESS AND COORDINATION..................................................................................... 155 CHAPTER 9 ..................................................................................................................................................... 157 AID EFFECTIVENESS AND COORDINATION..................................................................................... 157 Paris Declaration and Afghanistan Compact............................................................................................... 157 Contents xix Current situation: assessment of aid effectiveness...................................................................................... 157 Aid effectiveness strategy framework .......................................................................................................... 158 Implementation and monitoring ................................................................................................................... 162 Conclusion ........................................................................................................................................................ 164 PART IV ........................................................................................................................................................... 165 IMPLEMENTATION AND MONITORING ............................................................................................ 165 CHAPTER 10 ................................................................................................................................................... 167 IMPLEMENTATION FRAMEWORK ........................................................................................................ 167 Lessons learned during the Interim ANDS.................................................................................................. 167 Implementation framework and integrated approach............................................................................... 168 Implementation Plan and the ANDS implementation cycle ..................................................................... 168 Implementation Cycle..................................................................................................................................... 169 Role of the National Budget and the MTFF ................................................................................................. 170 Role of the MTFF ............................................................................................................................................. 172 Role of the Control and Audit Office (CAO) ............................................................................................... 173 Budget management framework, prioritization and funding requirements for the implementation of the ANDS.......................................................................................................................................................... 173 National implementation structures ............................................................................................................. 174 Sub-national implementation structures ...................................................................................................... 174 Coordination structures.................................................................................................................................. 175 Integrating conflict management into sector strategies.............................................................................. 175 Conclusion ........................................................................................................................................................ 175 CHAPTER 11 ................................................................................................................................................... 177 MONITORING FRAMEWORK .................................................................................................................. 177 ANDS monitoring and evaluation principles.............................................................................................. 177 Institutional structure...................................................................................................................................... 178 Monitoring and evaluation reporting ........................................................................................................... 180 Indicators for monitoring ............................................................................................................................... 180 Monitoring and evaluation framework ........................................................................................................ 182 Conclusion ........................................................................................................................................................ 182 CHAPTER 12 ................................................................................................................................................... 187 CONCLUSION................................................................................................................................................ 187 APPENDICES.................................................................................................................................................. 190 Afghanistan National Development Strategy (ANDS) xx Acronyms and Abbreviations Acronyms and Abbreviations xxi AC Afghanistan Compact ACBAR Agency Coordinating Body for Afghan Relief ADB Asian Development Bank ADC Area Development Councils AfCERT Afghanistan Cyber Emergency Response Team AFMIS Afghanistan Financial Management Sys tem AGO Attorney General’s Office AIHRC Afghanistan Independent Human Rights Commission AISA Afghanistan Investment Support Agency ANA Afghanistan National Army ANDMA Afghanistan National Dis-aster Manage ment Authority ANP Afghan National Police ANSA Afghanistan National Standards Author ity ANSF Afghan National Security Forces ANWP Afghanistan National Welfare Program APPPA Afghanistan Participatory Poverty As sessment ARCSC Administrative Reform and Civil Service Commission ARDS Afghan Reconstruction & Development Services ARDZ Agriculture and Rural Development Zones ARTF Afghanistan Reconstruction Trust Fund ASYCUDA Automated System for Customs Data ATRA Afghanistan Telecommunication Regula tion Authority AUWSSC Afghanistan Urban Water Supply and Sewerage Corporation BPFA Beijing Platform for Action BPHS basic package of health services CAO Control and Audit Office CAR Central Asian Republics CARD Comprehensive Agriculture and Rural Development CAREC Central Asian Regional Economic Coop eration CASA Central and South Asia CBN Cost of Basic Needs CCCG Cross Cutting Consultative Group CDCs Community Development Councils CEDAW Convention on the Elimination of all forms of Discrimination against Women CG Consultative Group CIS Commonwealth of Independent States CMRS Central Monitoring and Reporting Sys tem CN counter narcotics CNPA Counter Narcotics Police of Afghanistan CNTF Counter Narcotics Trust Fund CSO Central Statistics Office CSTI Civil Services Training Institute DAB Da Afghanistan Bank (Central Bank of Afghanistan) DABM Da Afghanistan Breshna Moassessa (the Afghan electric utility) DAC District Advisory Committee DCN District Communication Network EC European Commission ECOTA Economic Cooperation Organization Trade Agreement EPAA Export Promotion Agency of Afghanistan EPHS essential package of hospital services EU European Union FCCS Foundation for Culture and Civil Society FDI Foreign Direct Investment FSMS Food Security Monitoring Survey GDP Gross Domestic Product GIAAC General and Independent Administration Against Corruption and Bribery GIS Geographical Information System GoA Government of Afghanistan GSM Global System Mobile Ha Hectare HCS Health Care Service HIPC Heavily Indebted Poor Countries HIV Human immunodeficiency virus HIV/AIDS Human Immune-deficiency Vi rus/Acquired Immune Deficiency Syn drome HNS Health and Nutrition Sector HNSS Health and Nutrition Sector Strategy IAGs Illegal Armed Groups I-ANDS Interim Afghanistan National Develop ment Strategy IARCSC Independent Administrative Reform and Civil Service Commission IATA International Air Transport Association ICAO International Civil Aviation Organization ICCD Inter-ministerial Commission for Capac ity Development ICE Inter-Ministerial Commission on Energy ICT Information and Communications Tech nology IDLG The Independent Directorate for Local Governance IDP Internally Displaced Persons IDPs Internally Displaced Persons IEC Independent Electoral Commission ILO International Labor Organization IMF International Monetary Fund ISAF International Security Assistance Force Air Command IT Information Technology IWRM Integrated Water Resources Management JCMB Joint Monitoring and Coordination Board Km Kilometer KWH Kilowatt-Hour (Unit of electric energy) LOTFA Law and Order Trust Fund M&E Monitoring and Evaluation MoCIT Ministry of Communications & Informa tion Technology MCN Ministry of Counter Narcotics MDGs Millennium Development Goals Afghanistan National Development Strategy (ANDS) xxii MEAs Multilateral Environmental Agreements MIS Management Information Systems MoD Ministry of Defense MoE Ministry of Economy MoE Ministry of Education MoF Ministry of Finance MoFA Ministry of Foreign Affairs MoHE Ministry of Higher Education MoI Ministry of Interior MoJ Ministry of Justice MoLSAMD Ministry of Labor, Social Affairs, Martyrs and the Disabled MoM Ministry of Mines MoPH Ministry of Public Health MoU Memorandum of Understanding MoUD Ministry of Urban Development MoWA Ministry of Women’s Affairs MRRD Ministry of Rural Rehabilitation and De velopment MTFF Medium Term Financial Framework MW Megawatt NABDP National Area-Based Development Pro gram NAPWA National Action Plan for the Women of Afghanistan NATO North Atlantic Treaty Organization NDCS National Drug Control Strategy NEPA National Environmental Protection Agency (GoA) NEPS North-East Power System NGO Non-Governmental Organization NIRA National Internet Registry of Afghani stan NRAP National Rural Accessibility Program NRVA National Risk and Vulnerability Assess ment NSC National Statistical Council NSDP National Skills Development Program NSP National Solidarity Program NVETA Proposed National Vocational Education and Training Authority ODA Official Development Assistance OECD Organization for Economic Cooperation and Development OEF Operation Enduring Freedom OMO Open Market Operations OSC Oversight Committee OSCE Organization for Security and Coopera tion in Europe P&G Pay and grading PAG Policy Action Group PAR Public Administration Reform PAYG Pay-as-you-go PDPs Provincial Development Plans PFM Public Financial Management PIO Project Implementation Office PIP Public Investment Program PPA Power Purchase Agreement PRDP Pro-active Regional Diplomacy Program PRSP Poverty Reduction Strategy Paper PRT Provincial Reconstruction Team PRTs Provincial Reconstruction Teams RBA River Basin Agency RED Rural Road Evaluation Model RIMU Reform Implementation Management Unit SAARC South Asian Association for Regional Cooperation SCO Shanghai Cooperation Organization SCWAM Supreme Council for Water Affairs Man agement SEPS South-East Power System SMEs Small and Medium Enterprises SNC Sub-National Consultation SOE State Owned Enterprises SPECA Special Program for the Economies of Central Asia SPS Sanitary and Phyto-sanitary TA Tripartite Agreement TAG Technical Advisory Group TWG Technical Working Group TWGs Technical Working Groups UN United Nations UNAMA United Nations’ Assistance Mission to Afghanistan UNCAC United Nations Convention Against Cor ruption UNDP United Nations Development Program UNHCR United Nations High Commission for Refugees UNICEF United Nations International Children's Emergency Fund UNIFEM United Nations Development Fund for Women UNODC United Nations Office on Drugs and Crime USAID United States Agency for International Development WATSAN Water and Sanitation Committees WB World Bank WCS Wildlife Conservation Society WTO World Trade Organization Glossary of Afghan Terms xxiii Glossary of Afghan Terms Amu Darya A river originated from Pamir mountain and flowing in the northern region of Afghanistan Bank-e-Milli National Bank Darya River Gozar Smallest Administrative Unit inside the Urban area Imam An Islamic leader, often the leader of a mosque Jirgas Local Consultation Meetings Kareze Underground canals connecting wells uses as traditional irrigation system Kuchi Nomad Loya Jirga Grand Council, ”Grand Assembly of elders” Madrassa A school, where mostly Islamic Studies are concerned Meshrano Jirga Senate (Upper House of Assembly) Mirab A person responsible for water management in a community Sharia Islamic Laws Shura Traditional or Local Council (Shuras, pl) Taqnin Law making, legislation Ulama Religious Scholars Wolosi Jirga National Assembly (Lower House of Assembly Zakat Islamic concept of tithing and alms. It is an obligation on Muslims to pay 2.5% of their wealth to specified categories in society when their annual wealth ex ceeds a minimum level. In addition, Zakat is one of the basic principles of Is lamic economics, based on social welfare and fair distribution of wealth. AFGHAN CALENDAR September 23 7. Meezaan March 21 1. Hamal October 23 8. Aqrab April 21 2. Saur November 22 9. Qaus May 2 3. Jawza December 22 10. Jaddi June 22 4. Sarataan January 21 11. Dalwa July 23 5. Asad February 20 12. Hoot Aug 23 6. Sunbula Introduction 1 INTRODUCTION BACKGROUND Following almost three decades of war, the challenges facing Afghanistan’s development remain immense. By 1380 (2001/02), the rav ages of conflict had bestowed upon Afghan citizens and the incumbent administration an inheritance of debt not wealth. With the Tali ban dominating the political landscape from 1375 (1996) onwards, Afghanistan had been moving backwards in all aspects. The results of war, the destruction of core institutions of state and a heavily war torn economy led to unrivaled levels of absolute poverty, national ill health, large scale illiteracy and the almost complete disintegration of gender equality. Today, despite six years of reconstruction, at a cost of billions of dollars, the path to prosperity from extreme poverty remains as distant as ever. Insecurity, poverty, corruption and the expanding narcotics industry signify that while the challenges facing Afghanistan have changed in nature, they have not necessarily changed in magnitude. Yet, the price of secur ing peace and freedom at this pivotal moment in history will be nothing compared to the long term costs of failure to both Afghanistan and the international community. Averting failure and establishing Afghanistan on a virtuous path towards peace, stability and prosperity are therefore the cornerstones of the new Af ghan National Development Strategy (ANDS). At the core of the ANDS is a policy of Afghani zation, meaning that ANDS has been fully de veloped and owned by Afghanistan. ACHIEVEMENTS SINCE 2001 In 2001 Afghanistan was a devastated country in virtually every respect. The political, social and economic structures of the country had been severely damaged or completely de stroyed. Massive numbers of Afghans had left the country as refugees, had died during the conflict or were severely disabled. Every fam ily paid a price; many were left to cope with the loss of main breadwinner. For the young peo ple who remained, education had been dis rupted or in many cases, ended, as it was for all girls and women... Today Afghanistan has among the highest rates of illiteracy in the world. Yet despite these desperate conditions, the country can claim some remarkable achievements since 2001. The progress that has been made should be measured against the desperate conditions that prevailed at the time of the fall of the Taliban. While Afghanistan still faces enormous challenges, the progress that has been made gives cause for optimism that with the Afghan people’s determination to rebuild their lives and their country, a trans formation to a peaceful and prosperous can be achieved. The goals of the ANDS for the next five years ought to be viewed against what has been ac complished during the last six years. Only some of the most significant achievements can be mentioned here. Political achievements: In 1380 (2001/02) the Bonn Agreement estab lished a roadmap for the political trans formation of Afghanistan to a legitimate democratic state. The targets set in the Bonn Agreement were fully met on time and included: The Transitional Administration was estab lished to guide the process. It derived its authority through an Emergency Loya Jir ga, the first genuinely representative Af ghan national meeting in decades. In 1383 (2004) Afghanistan adopted its first constitution in 30 years, which laid the po litical and development foundation for the country and established legal protections for private property and a market econ omy. Free and fair democratic elections for President, the National Assembly and Provincial Councils were conducted. Seventy-six per cent of eligible voters participated in the presidential election. Women were elected Afghanistan National Development Strategy (ANDS) 2 to 27 percent of the seats in the National Assembly. After the successful completion of the Bonn Agreement, Afghanistan and the interna tional community entered into a new part nership, based upon the Afghanistan Compact, which was agreed to at the Lon don Conference of 1384 (2005). The Com pact set ambitious goals for comprehensive state building, setting benchmarks in all sectors of security, governance, and devel opment, including the cross-cutting goals of counter-narcotics and regional coopera tion. In 1385 (2006) the new National Assembly be gan its work, including the approval of a new cabinet; a new Chief Justice and other judges for the Supreme Court; and the Na tional Budget. A new Attorney General with a mandate to fight corruption was ap pointed. New Provincial Governors were named. The disarmament, demobilization and reinte gration of ex-combatants have been com pleted. Today the national army and police forces are close to full strength. Afghani stan is no longer a safe haven for terrorists. Social and Humanitarian Achieve ments: Since 1381 (2002), more than five million Af ghan refugees have returned home. In 1385 (2006) 342,925 Afghan refugees re turned from Pakistan and Iran and 1,004 from other countries. More than 150,000 returnees benefited from the assistance package provided by UNHCR. The Government has so far distributed 30,000 residential plots of land to needy returning refugee families. 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 5 years. Two million of the chil dren enrolled are girls—a 35 percent in crease in five years. 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 in creased seven-fold to 142,500 of whom nearly 40,000 are female. Fifty thousand of these teachers have received in-service teacher training. Major advances have been made in extending health care services throughout the country and in rebuilding a decimated educational system. 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. Over 2.5 million people have benefited from social protection arrangements covering (i) martyrs’ families; (ii) disabled due to war related disabilities; (iii) orphans and chil dren enrolled in kindergartens; (iv) victims of natural disasters; (v) pensioners; and (vi) unemployed. Measurable progress has been achieved since 2003 in improving rural livelihoods. Al most 20,000 km of rural access roads (i.e., all weather, village-to-village and village to-district centre roads) have been con structed 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 sanita tion facilities have been provided. More than 336,000 households have benefited from improved access to financial services. Some 18,000 Community Development Centers [CDCs] have been established and are implementing community-led devel opment projects. Efforts have made to as sist the poorest and most vulnerable. Economic Achievements: Macroeconomic stability has been maintained, based upon disciplined fiscal and monetary policies. A new unified currency was suc cessfully introduced; inflation has re mained low while the exchange rate has been stable. Sixteen private commercial banks have been licensed; a leasing and financing company is operating; an equity fund is underway to invest in local businesses. There are also 13 microfinance institutions providing ser Introduction 3 vices to almost 200,000 active clients in 27 provinces. State owned enterprises are being privatized, corporatized or liquidated. A lively, free and privately owned media sector has developed, encouraging people to ex press their political views freely – and daily. The legal and commercial infrastructure is be ing put in place for a market oriented economy. Electricity capacity has almost doubled com pared to 2002. Over 12,000 kilometers of roads have been re habilitated, improved, or built. This in cludes the ring road system, national highways, provincial roads and rural roads. Kabul International Airport has been expanded and extensively rehabilitated. Private airlines have entered the aviation sector and established air links throughout the region. A key bridge investment has opened up direct road links to Tajikistan and greatly reduced transportation time to Urumqi in China, one of the fastest growing trade hubs in the world. Two million urban residents have benefited from investments in water supply; 12 per cent of the populations benefited from in vestment in sanitation in major cities be tween 2002 and 2007. About 35,000 water points, 59 water networks and 1,713 reservoirs and 23,884 demonstra tion latrines have been constructed. More than three million people have benefited directly from the rural water supply and sanitation activities in the country. Approximately one third of the provinces re ported some improvement in access to clean drinking water during the consulta tive process under the ANDS. Irrigation Rehabilitation has been given high priority over the past four or five years. Of some 2,100 rehabilitation projects, ap proximately 1,200 have been completed and placed back into commercial service. Major advances have been made in opening up the telecommunications sector to private sector investment under an “investment friendly” regulatory framework aimed at maintaining a competitive market for ser vices, and phone subscribers have in creased from less than 20 thousand to more than five million in less than six years. A rapid urbanization process has seen the ur ban population increase to almost a quarter of the total population. Despite the pres sures of rapid urbanization, two million urban residents (31 percent of the total ur ban population) have benefited from in vestments in water supply; investment in sanitation in major cities between 2002 and 2007 has helped 12 percent of the popula tion. Afghanistan has world class mineral deposits that are being opened up for exploration and development. The first major invest ment for developing the Aynak copper de posits in central Logar province was re cently announced, an almost $3 billion in vestment that followed on an extensive evaluation of tenders from nine major in ternational mining companies. When seen against the desperate conditions that prevailed in the country in 2001, these achievements constitute an impressive record. The ANDS sets goals for the next five years that will require even greater achievements. AFGHANISTAN’S CHALLENGES Few countries have simultaneously faced the range and extent of challenges with which the people and Government of Afghanistan must now contend. After nearly three decades of continuous conflict, the country emerged in late 2001 as a truly devastated state with its human, physical and institutional infrastruc ture destroyed or severely damaged. In late 1380 (2001/02), the UN Human Development Report ranked Afghanistan as the second poor est country in the World. In addition to the widespread poverty, the Government must deal with continuing threats to security from extremists and terrorists, weak capacity of gov ernance and corruption; a poor environment for private sector investment, the corrosive ef Afghanistan National Development Strategy (ANDS) 4 fects of a large and growing narcotics industry; and major human capacity limitations throughout the public and private sectors. Meeting these challenges and rebuilding the country will take many years and require con sistent international support. The successful transformation of Afghanistan into a secure, economically viable state that can meet the aspirations of the Afghan people, live at peace with itself and its neighbors and con tribute to regional and international stability will depend upon the effective utilization of all available human, natural and financial re sources. In this partnership a critical role must be played by the private sector. Significantly reducing poverty will require substantially in creasing employment, which depends on main taining high rates of economic growth in the years ahead. It is not sufficient to rely on the Government and the international community to sustain the high rates of investment needed to generate levels of employment necessary to have a major impact on reducing poverty. As the macroeconomic projections presented in Chapter 4 indicate, a substantial increase in private investment will be essential if signifi cant progress is to be realized in meeting the social and economic objectives of the country. Afghanistan is a country with significant po tential for economic development. It has sub stantial water, agricultural and mineral re sources and is well positioned to become a trade and business hub linking the markets of Central Asia, the Middle East, South Asia and China. The potential exists for sustainable eco nomic growth in the future. However, there are a number of fundamental limitations in the economic environment that must be addressed if these efforts are to succeed: The country’s “hard infrastructure,” including roads and reliable supplies of water and power, is inadequate to support rapid and sustained economic growth. The corresponding “soft infrastructure”, which includes the human and institutional ca pacity necessary for an economy to func tion, is also extremely limited. Consider able emphasis is being given to developing capacity in both the public and private sec tors and to institutional development, but these efforts will take time. Economic governance is weak. The Govern ment is pursuing comprehensive economic reform, including the introduction of new commercial laws and regulations, but the establishment of institutions needed for ef fective implementation and enforcement are largely lacking and will take years to develop.1 Afghanistan’s commercial connections to re gional and global economies were severely disrupted and must be redeveloped. The development of a competitive private sec tor will depend on establishing access to foreign markets and developing viable ex port activities. Critical markets for land and finance are largely undeveloped, limiting the ability of private investors to establish and operate businesses. Property rights are often con tested or difficult to defend. Afghanistan is experiencing high population. Continued rapid population growth will dramatically increase the levels of invest ment that will be required to substantially reduce poverty. Both the Government and the international community recognize that prolonged aid de pendency will undermine the chances of achieving sustained economic growth and pov erty reduction. However, given the major limi tations in the economic environment that must be addressed, the successful transition to a competitive market economy will require sus tained commitment by the Government, with the support of the international community. Simply creating conditions in which the private sector can operate alone will not be sufficient. Increased efforts by both the Government and the donor community to attract Afghan and foreign investors are needed if the goals of the ANDS are to be realized. Social and economic development will also be severely curtailed if the insecurity problem is not resolved. Despite the considerable efforts of the Government and the international commu 1 Many of the government’s initiatives in this area are described in “A Policy for Private Sector Growth and Development” pre sented at the Enabling Environment Conference, Kabul, June 2007. Introduction 5 nity, security has steadily deteriorated since 1382 - 1383 (2003/04- 2004/05) in some parts of the country. Ongoing cross-border activities, particularly in the southern and southeastern provinces, have resulted in several areas being effectively off limits to meaningful develop ment assistance. The lack of stability reduces the ability of aid agencies and the Government to operate in many areas and to effectively implement pro jects and programs. The impact of these limita tions typically falls most heavily on the poor. Insecurity also increases the cost of doing busi ness and undermines private sector growth and development.2 The difficulties in main taining security contribute significantly to two closely related issues: increasing corruption in the public sector and the rapid growth of the narcotics industry. There is a consensus that corruption in Afghanistan is widespread and has been getting worse.3 Public corruption represents a major disincentive for private in vestment, substantially increasing the costs and risks of doing business. A lack of security in some parts of the country has created condi tions in which poppy cultivation has flour ished, feeding a growing narcotics industry that both funds terrorist activity and feeds pub lic corruption. Although poppy cultivation has been greatly reduced in 29 of the 34 provinces, in the remaining five it has seen explosive growth to where Afghanistan accounts for around 90 percent of the world’s opium pro duction. INTERNATIONAL SUPPORT FOR AFGHANISTAN After the fall of the Taliban, the international community responded not only militarily but by moving to supply Afghanistan with the in stitutional and financial resources needed to start the state building process. In 1384 - 1385 (2005/06 - 2006/07), the Afghanistan Compact agreed to between the Government and the 2 The World Bank “Investment Climate Assessment” reported that companies are typically spending as much as 15 percent of total sales on security costs. 3 In the 2005 Transparency International “Corruption Perceptions Index,” Afghanistan ranked 117th (of 158); two years later the country was ranked 172nd (of 179). international community established goals for state building, setting benchmarks in the core sectors of security, governance, and develop ment, including the cross-cutting goal of coun ter-narcotics. To implement its obligations un der the Afghanistan Compact, the Government developed the Afghanistan National Develop ment Strategy (ANDS) to clarify existing condi tions, establish objectives and define the poli cies, programs and projects needed to achieve those objectives. The international community made new pledges of financial and security assistance and set out to improve its coordina tion by renewing and upgrading the UN Assis tance Mission for Afghanistan (UNAMA), headed by a Special Representative of the Sec retary General with enhanced powers for coor dination.4 The ANDS represents an important milestone in the effort to rebuild Afghanistan. Since late 1380 (2001/02), a large number of reports, con ferences and strategies have focused on Af ghanistan’s challenges.5 In addition, the Gov ernment and the international community have entered into a series of agreements concerning the direction of and support for the country’s development efforts, including notably the Bonn Agreement, the commitment to the Mil lennium Development Goals (MDGs) and the Afghanistan Compact. The ANDS builds on all of these to provide a comprehensive and inte grated strategy that reflects recent experience and current conditions. THE AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY The Afghanistan National Development Strat egy (ANDS) represents the combined efforts of the Afghan people and the Afghan Govern ment to comprehensively address, with the support of the international community, the major challenges that face the country... The 4 Afghanistan has also placed special emphasis on good relations with its neighbors, particularly Pakistan. The two countries con vened a joint Peace Jirga in August 2006, and Afghanistan looks forward with hope and optimism to enhanced cooperation with Pakistan. 5 Details for many of the key documents can be found in the bibliography. Afghanistan National Development Strategy (ANDS) 6 ANDS reflects the government’s vision, princi ples and goals for Afghanistan, which are or ganized under three pillars: (i) Security; (ii) Governance, Rule of Law and Human Rights; and (iii) Economic and Social Development. The strategy is based upon a careful assessment of current social and economic conditions; it offers clear intermediate objectives; and it iden tifies the actions that must be taken to achieve these national goals. The ANDS focuses main ly on the next five years, but it also reflects Af ghanistan’s long-term goals, which include the elimination of poverty through the emergence of a vibrant middle class, an efficient and stable democratic political environment and security throughout the country. Despite the full commitment of the Govern ment and the considerable assistance being provided by the international community, it will not be possible to fully achieve all of these objectives during the next five years. Therefore it is essential that well defined priorities be es tablished that reflect the relative contributions of potential policies, programs and projects towards reaching these goals. This is a difficult process. The contribution of any project to in creasing economic growth is uncertain and is inevitably contingent on progress in other ar eas. It requires a careful analysis of benefits versus costs, and comparisons with alternative investments. The ANDS is the product of extensive consulta tions at the national, provincial and local levels. A comprehensive ”bottom-up” approach that took into account all aspects of social and eco nomic life and fully reflects the diversity of people in all parts of the country was used in developing the ANDS. Considerable effort was made to ensure that sub-national consultations (i.e., outside of the central government in the capital Kabul) identified the priorities of the Afghan people living in each of the 34 prov inces.6 In addition, a comprehensive series of sector and ministry strategies were developed to address all aspects of social and economic development. The result of this inclusive proc ess is a national strategy that is fully reflective of the aspirations of the Afghan people. The Government is committed to programs and 6 The Provincial Development Plans (PDPs) that were developed as part of this process are presented in ANDS Volume III. projects that directly target the poorest and most vulnerable groups for assistance. Poverty reduction programs are both emphasized in the strategy for social protection and integrated into the design of strategies across other sectors of the economy. The remainder of the ANDS is organized as follows: Chapter 1: Provides an overview of the ANDS. Chapter 2: Explains ANDS extensive participa tory process to ensure ownership. Chapter 3: Presents the poverty profile of the country, a key foundation for the ANDS evidence-based policy approach. Chapter 4: Presents the macroeconomic framework for the economy. It discusses the policies intended to maintain economic stability, the initial planning on resource al locations for the ANDS period and the total resources available for the implementation of public sector programs and projects through the external and core budgets. Chapter 5: Presents the strategies and priorities relating to the Security pillar. Chapter 6: Presents the strategies and pri orities relating to the Governance, Rule of Law, Justice and Human Rights pillar. Chapter 7: Presents the sector strategies and priorities relating to the Economic and So cial Development pillar. This addresses private sector development, energy, trans port, mining, education, culture, youth and media, agriculture and rural development, public health, social protection and refu gees, returnees and internally displaced persons. Chapter 8: Discusses critical cross-cutting is sues that have an impact across all sectors. These include regional cooperation, counter-narcotics, anti-corruption, gender equality, capacity building and environ mental management. Chapter 9: Discusses aid effectiveness meas ures that need to be taken jointly by the Government and the international commu nity. Chapter 10: Discusses the integrated approach implementation framework of the ANDS. Introduction 7 Chapter 11: Discusses monitoring, coordination and evaluation requirements of the ANDS. Volume II: Includes 17 sector strategies, six strategies for cross cutting issues and 38 indi vidual ministry and agency strategies. Volume III: Discusses the participatory process used in developing the ANDS, 34 Provincial Development Plans and development priori ties. PART I PROCESS, GOALS AND POLICY DIRECTIONS The ANDS: An Overview 5 CHAPTER 1 THE ANDS: AN OVERVIEW The overriding objective of the ANDS is to sub stantially reduce poverty, improve the lives of the Afghan people, and create the foundation for a secure and stable country. This requires building a strong and rapidly expanding econ omy that is able to generate abundant em ployment opportunities and greatly increased incomes. The ANDS establishes the Govern ment’s strategy and defines the policies, pro grams and projects that will be implemented over the next five years, as well as the means for effectively implementing, monitoring and evaluating these actions. The goals included in the ANDS are fully consistent with the com mitments entered into in previous strategies and agreements and build on the considerable progress that has been achieved since 1380 (2001). While the focus of the ANDS is on the next five years, it will be adjusted in response to changing circumstances—it is intended to be a “living document.” The ANDS serves as the country’s Poverty Re duction Strategy Paper (PRSP). As such, it es tablishes the joint Government/international community’s commitment to reducing poverty; describes the extent and patterns of poverty as it now exists ; presents the main elements of the strategy to reduce poverty; summarizes the projects and programs that will assist the poor; and provides a three-year macroeconomic framework and a three-year policy matrix for these efforts. The PRSP has been prepared based on an inclusive consultative process to ensure broad participation and support, while also ensuring that policies are based on evi dence. A public policy dialogue with all key stakeholders was carried out across all prov inces, allowing government officials, private sector representatives, NGOs, the media and ordinary citizens an opportunity to discuss lo cal conditions and concerns. This allowed these many communities to participate in de fining the poverty problem as they experience it. In so doing, a broad choice of poverty ac tions based on the specific concerns of the poor has been established for each province, as well as each district. Key issues identified by stakeholders included: (i) lack of access to clean drinking water in all provinces; (ii) needed improvements to provin cial roads; (iii) the poor quality of public ser vices; (iv) poorly trained teachers and doctors; (v) the lack of alternatives to poppy cultivation; (vi) the lack of vocational training for returnees and disabled people; (vii) poor access to elec tricity; and (viii) corruption within the public administration, particularly with respect to the security services. The Government has exam ined a range of poverty actions based on the specific concerns of the poor, including vulner ability, conflict sensitivity, insecurity and gov ernance. The ANDS lays out the strategic priorities and the policies, programs and projects for achiev ing the Government’s development objectives. These are organized under three pillars: (i) Se curity; (ii) Governance, Rule of Law and Hu man Rights; and (iii) Economic and Social De velopment. SECURITY Security and stability in all parts of the country are essential for economic growth and poverty reduction. Afghanistan still faces a number of serious challenges before it can assume full re sponsibility for this. International terrorists and domestic extremists prevent the Govern ment from establishing effective control in some areas, particularly in the south and southeast. The large-scale production of nar cotics continues to provide funds to these groups. Unexploded ordinance remains a sig nificant threat to Afghans, with some five thou sand citizens either killed or wounded in mine Afghanistan National Development Strategy (ANDS) 6 explosions since 1380 (2001/02). Currently on ly two of the country’s 34 provinces are com pletely clear of land mines. The long-standing presence of illegal armed groups in different parts of the country is hindering efforts to em power local democratic institutions. Some of these groups have close links to police or even belong to local governments. This situation en courages corruption and is considered a key obstacle in cracking down the narcotics indus try. The Government is fully committed to, and is giving the highest priority to: (i) implementing an integrated and comprehensive national se curity policy and strategy; (ii) building a robust security sector reform program; (iii) strength ening civil and military operations and coordi nation; (iv) increasing the role of security forces in counter-narcotics activities; and (v) strength ening the civilian components of security enti ties. Detailed Compact benchmarks have been established to measure progress in improving capacity within the security organizations and improving actual security. Significant progress has been made since 1380 (2001/02) in strengthening the ANA and ANP. For example, militias have been integrated into the Ministry of Defense (MoD), with a reduc tion in total numbers in the militia. A multi sector donor support scheme has been estab lished under which individual donors are allo cated responsibility for overseeing support for each of the key elements of the reform, includ ing: disarmament, demobilization, and reinte gration of ex-combatants; military reform; po lice reform; judicial reform; and counter narcotics. The ANP has been receiving exten sive training and equipment from the interna tional community. GOVERNANCE, RULE OF LAW, JUSTICE AND HUMAN RIGHTS In 1379 (2000/01). the World Bank assessed the “quality” of Afghanistan’s governance institu tions as falling in the bottom one percent of all countries. Progress since 2001 includes the adoption of the constitution; successful parlia mentary and presidential elections, and pro gress in improving the livelihood and welfare of women and other disenfranchised groups. Despite some progress, a number of significant issues must be addressed, including: (i) the ex istence of multiple and often parallel structures of state and non-state governance entities; (ii) the confusion over core center-periphery ad ministration and fiscal relations; (iii) weak pub lic sector institutions and underdeveloped gov ernance and administrative capabilities; (iv) high levels of corruption; (v) fiscal uncertainty; (vi) weak legislative development and en forcement; (vii) weak political and parliamen tary oversight capacities; (viii) weak commu nity and civil society institutions; (ix) limited capacity within the justice system; (x) gender inequality; and (xi) underdeveloped human rights enforcement capacities. If significantly improved governance is not rapidly achieved it will be difficult to make substantial progress with respect to security and economic development. An emerging po litical and administrative vacuum will be filled by non-state structures driven by illegal and narcotic interests, not by the Government. Religious affairs The Government will focus on the following priorities: (i) improve the infrastructure for re ligious affairs, such as mosques, shrines, holy places, and religious schools; (ii) improve the training and capacity of Imams, preachers, reli gious teachers and other scholars to raise pub lic awareness and to teach; (iii) finalize a com prehensive culture curriculum for primary and higher education; (iv) strengthen Hajj arrange ment systems for Afghan pilgrims; (iv) support efforts by religious organizations to help allevi ate poverty and protect vulnerable groups; (v) support efforts of other government agencies to improve literacy, speed the resolution of dis putes and contribute to strengthening of the national solidarity. The expected results in clude: (i) reforms implemented in line with Is lamic values; (b) improved infrastructure and financial sustainability of religious affairs, par ticularly of the religious education system; (iii) greater participation of Islamic scholars in rais ing awareness about importance of implemen tation of key reforms; (iv) a greatly strength ened role of the religious institutions in pro grams aimed at reducing poverty. The ANDS: An Overview 7 ECONOMIC AND SOCIAL DEVELOPMENT The economic and social development strategy, vision, objectives and expected outcomes have been prioritized within the overall macro-fiscal framework to allow a logical progression of investments that systematically overcome the core binding constraints to growth and social development. An integrated approach focuses investments through the sector strategies summarized below. The sector strategies were developed based on strategies first put forward by individual ministries and groups of minis tries. Although ministerial strategies were the starting point, the sector strategies are broader than those of the ministries for several very important reasons. First, the sector strategies in many cases involve actions and programs that need to be undertaken by several ministries. Considerable attention has therefore been giv en to developing better coordination between ministries through Inter-Ministerial Commit tees. The sector strategies have also taken ac count of donor activities being implemented outside of ministries and informed by the Pro vincial Development Plans (PDPs). The success of the sector strategies will be heavily depend ent on resource effectiveness, revenue en hancement and fiscal sustainability, human and natural resource development and invest ments in productive and trade-based infra structure and private sector driven develop ment. Private Sector Development The ANDS strategic objective is to enable the private sector to lead Afghanistan’s develop ment within a competitive market-based econ omy in which the Government is the policy maker and regulator of the economy, not its competitor. The establishment of a strong ena bling environment for a competitive private sector is an on-going effort by both the Gov ernment and donors. Almost all sector strate gies involve the development of new legisla tion. The Government will enact and imple ment key laws and amendments to establish the basic legal and regulatory framework that will encourage private sector involvement in social and economic development. Almost all sector strategies involve institutional strength ening that is designed to improve the ability of ministries and other agencies to administer leg islation in an unbiased and predictable manner. Privatization and corporatization of state owned enterprises is an on-going program that is on schedule. It represents an important step in expanding the scope for private sector growth and development. These steps will: (i) improve general levels of efficiency in the economy; (ii) assist in eliminating corruption; (iii) encourage better resource allocation, and (iv) generate increased government revenues. An open trade policy will facilitate a competi tive environment for private sector develop ment, avoid the high costs incurred with pro tectionist policies and facilitate Afghanistan becoming better integrated as a “trading hub” in the region. Any proposals to provide protec tion to particular industries will be evaluated with a proper “economy wide” perspective that fully accounts for the costs and benefits from such actions, including the negative impacts on other firms and on the consumers who must pay higher prices. Increased priority will be given to regional economic cooperation initia tives aimed at developing regional transporta tion and transit infrastructure, facilitating re gional trade and investment flows and devel oping Afghanistan as a regional business hub linking Central and East Asia with the Middle East and South Asia. A second major component of the private sec tor development strategy attempts to encour age increased private sector investment by cre ating investor friendly regulatory frameworks for private sector operations in the develop ment of natural resources and infrastructure. This approach has been very successful in the telecommunications sector, where phone usage went from fewer than 15,000 subscribers under a state monopoly to more than five million sub scribers as private investments in cellular communication were encouraged. Significant initiatives are included in the sector strategies for energy, mining and agriculture based on leased access to state lands to strengthen these investor friendly regulatory frameworks. Pilot projects and innovative initiatives are being investigated to allow public funding to support private sector activities in the provision of edu cation services, vocational training and public health services. Afghanistan National Development Strategy (ANDS) 8 Another closely related component of the strat egy is based on a concerted effort by the Gov ernment and the donor community to more vigorously promote private sector investment. Given the limited capacities in the public sector and in the nascent domestic private sector, much of this effort will focus on trying to en courage foreign firms with the expertise, ability to manage risk and access to financial resources to take advantage of the many opportunities that exist for investment in Afghanistan. Ef forts at investment promotion will be designed to convince these investors that they are both needed in Afghanistan and that they will be able to operate profitably with full government support consistent with maintaining a competi tive environment. Energy The ANDS strategic objective for energy is an energy sector that provides reliable, affordable energy increasingly based on market-based private investment and public sector oversight. The immediate task of the ANDS strategy, with assistance from the donor community, is to ex pand availability at a price that covers cost (for all but the poorest members of society) and to do so in the most cost effective manner. The Government will also take steps to provide the basis for the transition of the sector from public to private provision of electricity. As the Af ghan energy sector moves from primarily state owned operations to a more private market orientation, new institutional arrangements will be established. Until recently the focus in the energy sector has been on using donor funds and contractors to rehabilitate and expand the infrastructure of the government-owned electric company DABM, with virtually no attention being given to establishing an environment that would en courage increased private investment in the sector. This will change with a major effort to set up a transparent regulatory framework and a pricing system designed to encourage private sector investment. A new market-oriented pa radigm, significant institutional changes and considerable capacity development will be es tablished under guidance from the Inter Ministerial Commission for Energy (ICE). Streamlined government oversight and greater reliance on private sector investment is essen tial. As the energy line ministries shift from production-based institutions to policy making regulatory agencies, staff capacity and in-house functions will be reoriented to market practices. The Government will assess its sector assets and establish a plan for liquidation, restructur ing and commercialization or sale. In particu lar the Government will provide more support for the corporatization and commercialization of national power operations. All these efforts will begin even as donor funded projects work to remove the severe constraints to the energy and power sectors, and will lay the framework for a more commercial energy system in the coming years. Mining While geological studies of Afghanistan have been conducted over the last 50 years, due to political, social and economic factors, 90 per cent of the territory of Afghanistan has not been systematically studied. However the lim ited results have been highly promising: over 400 mineral occurrences have been identified, including Aynak copper, coal and a number of small and medium mines such as gold, silver, platinum, zinc, nickel, emerald, lapis, ruby, tourmaline, fluorite, chromate, salt, radioactive elements and numerous deposits suitable for construction materials. The availability of sig nificant oil and gas fields in Afghanistan has been well known for almost 50 years. The ANDS strategic objective in the mining sector is to encourage legitimate private in vestment in the sector so as to substantially increase government revenues, improve em ployment opportunities and foster ancillary development. Implementation of the strategy will help to develop effective market-based policies, promote and regulate sustainable de velopment of minerals and ensure that the na tion’s geological resources are progressively investigated and developed. The Ministry of Mines is undergoing a transition from being primarily a producer of minerals and other commodities to a policy making and regulatory institution. For mining and minerals, the em phasis is on the exploration, extraction and de livery to market; for hydrocarbons the empha sis is on exploration and development. There is great potential for the mining sector. The test will be in moving quickly from the success in attracting investment in the Aynak copper de posits to the development and exploration of the many other mineral resources of the coun try. The ANDS: An Overview 9 Water Resources Agriculture accounts for 95 percent of the country’s water consumption. In the 1970s, some 3.3 million hectares were cultivated using various irrigation methods. At present, be cause of civil conflict and drought, only about 1.8 million hectares of land are being irrigated. Of this, only 10 percent is being irrigated using properly engineered systems; the remainder are dependent on traditional irrigation meth ods, some of them based on run-offs from or use of aquifers that are being degraded by deep water wells and insufficient investment in re charge basins. Significant donor investment has gone toward rehabilitating damaged or degraded irrigation systems, but little has been done in terms of making new investments in the structures needed to increase efficiency in water use. There is a lack of resources needed to improve water management, including a lack of skilled human resources. Information systems are now being reconstituted, but there is little reliable hydrological, meteorological, geo-technical and water quality data; what data is available indicates that un-regulated deep well drilling may be depleting aquifers that are essential to water supplies and traditional irri gation systems (Karezes and springs). The in frastructure and equipment needed to effi ciently conserve and utilize water resources are also insufficient, as are the economic mecha nisms necessary to regulate water use and in vestments for water supply, sanitary systems, irrigation, and hydropower generation. Efficient management of Afghanistan’s water resources is essential for social and economic development and will require public sector involvement. Until now, both Government and donors have under-invested in better water resource management, with negative conse quences for the productive capacity of the economy and the lives of the people. Within the water resources sector, feasibility studies will be completed and investments will be made in the storage facilities, recharge basins, multi-purpose dams and irrigation systems required to improve water sector management for both agricultural and non-agricultural uses. These efforts will augment on-going efforts to rehabilitate and improve management in exist ing systems. Over time there will be a move ment away from a project by project focus on rehabilitation to an Integrated Water Resource Management (IWRM) system geared to the five major river basins in the country, with an even tual devolution of responsibilities down to in dependent River Basin authorities. Transport The ANDS strategic goal for the transport sec tor is to have a safe, integrated transportation network that ensures connectivity and that en ables low-cost and reliable movement of people and goods domestically as well as to and from foreign destinations. The strategy will contrib ute to achieving the following targets estab lished in the Afghanistan Compact: (i) Af ghanistan will have a fully upgraded and maintained ring road, as well as roads connect ing the ring road to neighboring countries by 1387 (2008/09) and a fiscally sustainable sys tem for road maintenance by 1386 (2007/08); (ii) by 1389 (2010/11), Kabul International Air port and Herat Airport will achieve full Inter national Civil Aviation Organization compli ance; Mazar-i-Sharif, Jalalabad and Kandahar will be upgraded with runway repairs, air navigation, fire and rescue and communica tions equipment; seven other domestic airports will be upgraded to facilitate domestic air transportation; and air transport services and costs will be increasingly competitive with in ternational market standards and rates; and (iii) by 1389 (2010/11), Afghanistan and its neigh bors will achieve shorter transit times within Afghanistan by means of cooperative border management and other multilateral or bilateral trade and transit agreements. The Government continues to give high prior ity to rehabilitate a badly damaged road sys tem. This includes: (i) completion of a fully upgraded and maintained ring road and con nector roads to neighboring countries; (ii) im proving 5,334 km of secondary (national and provincial) roads, and (iii) improving and building 6,290 km of rural access roads as a key to increasing rural livelihoods and reducing poverty and vulnerability in rural areas. Better rural roads will improve market access and opportunities for rural households. The actual allocation of resources among these three areas of planned activity will depend on the esti mated rates of return from analysis of propos als 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 will be formed that will coordinate the Afghanistan National Development Strategy (ANDS) 10 ministries in the sector to assure that invest ments are properly coordinated to obtain the highest returns and greatest impact on the pov erty reduction goals. Careful consideration will be given to increasing employment oppor tunities, and assuring that the local resources or funds channeled through local communities are effectively used to maintain the rural roads established as part of this strategy. Information and Communications Technology In 1381 (2002/03), Afghanistan had fewer than 15,000 functioning telephone lines for a popula tion of approximately 25 million, one of the lowest telephone penetration rates in the world. The Government, with donor assis tance, adopted major policy reforms for the ICT sector, moving rapidly to establish the legal framework and regulatory arrangements to promote private sector investment, which quickly resulted in a competitive environment and the rapid growth of mobile phone use from almost nothing to a present subscriber base of over five million. This development is one of the major success stories of in the implementa tion of the private sector-based development strategy. Greater efforts will be made under the ANDS to adopt a similar investor friendly regulatory framework for development of nat ural resources and infrastructure. With respect to telecommunications, the ANDS strategic ob jective is to expand access to mobile phone ser vice to 80 percent of the country and greatly increase access and use of the Internet by con sumers, the private sector and the Government. Urban Development The ANDS strategic objective for urban devel opment is to greatly improve the management of urban areas through devolution of authority and responsibilities to municipalities in a way that improves urban infrastructure and ser vices, reduces urban poverty, allows urban residents to live safe, healthy and productive lives and encourages cities to grow and pros per. Effective management of the rapid ur banization process will make a significant con tribution to the recovery of the country. As of 2005, nearly a quarter of Afghanistan’s popula tion lived in urban areas. Outcomes will in clude: (i) strengthened municipal capacity to manage urban development and deliver ser vices; (ii) improved institutional coordination and monitoring of key urban indicators; (iii) increased access to basic services for urban households; (iv) phased regularization of ten ure for 50 percent of households living in in formal settlements; (v) upgrading public ser vices and facilities, including new urban area development; (vi) increased availability of af fordable shelter, including a 50 percent increase in the number of housing units and a 30 per cent increase in area of serviced land on the market, coupled with access to affordable fi nance, and (vii) an improved urban environ ment with green areas and open spaces More is now being done under the ANDS to devolve authority to municipalities. The urban development strategy is designed to improve urban governance through: (i) decentralization, participatory processes, market-based ap proaches, and improved regulations; (ii) capac ity building at all levels of urban governance; (iii) establishing a clear national land policy, including urban informal settlement policy; (iv) improved revenue generation in cities through direct cost recovery for and economic pricing of urban services, property-based taxes, and use of computer systems; (v) expanding urban up grading pilots, including phased regularization of informal settlements, and programs to meet the immediate housing, tenure security and service needs of the poor and vulnerable; (vi) increasing the supply of serviced land through development of new urban areas, especially within the cities, to meet the present and future housing needs of the people; (vii) improving city-wide basic infrastructure and services, in particular water supply, sanitation, roads and green areas; and (viii) rehabilitation of urban heritage facilities and sites. Education Efforts to improve education, which started in 1380 or 1381 (2001/02 or 2002/03), were fo cused on getting 1.5 million children into the primary/secondary school system. There are now more than six million children at primary and secondary school. In addition, universities have reopened and there are increasing oppor tunities for vocational training. There are now 52,200 students enrolled in institutions of high er education. Although the expansion of edu cation has been impressive, there is an urgent need to improve the quality of education. This is one area where programs designed to meet The ANDS: An Overview 11 benchmarks defined in terms of enrolment or coverage fail to give adequate consideration to the quality of the service being provided. In creased priority will be given to teacher train ing and other mechanisms to encourage private sector investment in educational activities. Vocational training will become an increasing focus of attention. There is an urgent need to address problems in the vocational education sector that include staff shortages, overbuild ing, lack of standardization in training courses, and qualifications that are difficult for potential employers to assess. A new organization, the National Vocational Education and Training Authority (NVETA), will be established and will: (i) manage, but not operate, all vocational training institutions; (ii) set minimum core competencies for courses, carry out accredita tion, and inspect vocational institutions to en sure that they meet minimum standards, and (iii) call for tenders by ministries or by the pri vate sector to operate vocational training facili ties owned by the Government. The potential role of the private sector has been expanded considerably in this strategy. In the primary and secondary education area there will be an expansion in private and NGO schools, encouraged by a more accommodating regulatory environment. In higher education the university cooperation plans that have al ready commenced will allow universities in Afghanistan to interact and be supported by recognized foreign universities. NVETA will contract with private sector groups or NGOs for provision of educational services. Some areas will be left to the private sector, including preschool education. Culture, media and youth The ANDS strategic objective for this sector is: (i) to create awareness and foster a sense of pride in the country’s history, future, culture and achievements; (ii) to document and pre serve cultural artifacts and heritage sites; (iii) to ensure an independent and pluralistic media that contributes to an open and democratic so ciety, and (iv) to foster a sense of confidence among the young that they can contribute to and benefit from a stable and prosperous coun try. An accessible and well maintained cultural artifacts data base and the cultural artifacts col lection held by the Ministry will be expanded. In the longer term, museums will be estab lished and or expanded and historical or heri tage sites will be protected. Media legislation will be enacted to provide a stable and predict able environment in which a largely privately run and independent media can operate. Media will be employed as an educational tool in ad dition to entertainment. Key priorities include country-wide coverage of public Afghan media (radio and television), an increased number of hours of public broadcasting, and improved quality of programming. State-owned media will be used to promote and convey informa tion on gender policies, public health and na tional security. Extensive reforms have been introduced to assist youth within the education strategy. These include expansion of the educa tion system; rehabilitation programs for young people whose education may have been limited because of the security situation, and reforms to vocational education to provide youth with marketable skills and better employment op portunities. Health and nutrition sector strategy By all measures, the people of Afghanistan suf fer from poor health. The country’s health in dicators are near the bottom of international indices, and its people fare far worse, in terms of their health, than in 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 chron ic malnutrition and widespread incidence of micronutrient deficiency diseases. Substantial improvements in the health system and the health status of the people of Afghanistan have been achieved in recent years, but a number of remaining challenges and constraints must be addressed if continued progress is to be made, including: (i) inadequate financing for many of the key programs; (ii) reliance on external sources of funding; (iii) inadequately trained health workers; (iv) lack of qualified female health workers in rural areas; (v) dispersed population, geographical barriers and a lack of transportation infrastructure; (vi) low levels of utilization for certain health services, especially preventive services; (viii) variable levels of ser vice quality; (ix) insecurity in some provinces, making it difficult for program implementa tion, recruitment and retention of staff, expan sion of service coverage and monitoring at the provincial and central levels; (x) lack of effec tive financial protection mechanisms for poor households to receive the care they need with Afghanistan National Development Strategy (ANDS) 12 out experiencing financial distress, and (xi) lack of mechanisms to provide effective support to and regulation of for-profit private sector clin ics and pharmacies. Programs have been designed to expand and improve the system and to try and target vul nerable groups with preventive or curative programs. The Ministry of Public Health (MoPH) will review and develop relevant legal and regulatory mechanisms, such as accredita tion 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 provi sion of services, carrying out its broader man date to not only contract out service provision to civil and private groups but also to facilitate growth of the ”for profit” sector. The MoPH will review, develop and enforce relevant legal and regulatory instruments that govern health and health related work to safeguard the public and ensure service quality. The MoPH will work to identify, encourage, coordinate review, and in some cases conduct research to advance evidence-based decision making and the for mulation of new policies, strategies and plans. Agriculture and Rural Development The ANDS strategic objective for the agricul ture and rural development sector is to jointly use private investment and public sector sup port for efforts to transform agriculture into a source of growth and means of livelihood for the rural poor. Agriculture has traditionally been the main activity for much of Afghanistan’s population, particularly in the most remote and vulnerable areas. While non-farming activities account for large amounts of time, many of these are re lated to processing, transporting or marketing agricultural goods. The agriculture and rural development strategy establishes ambitious plans for a series of programs that are designed to achieve an improved quality of life for rural citizens—one in which food security is assured, basic services are provided, incomes increase for households actively engaged in legal activi ties, employment opportunities expand and people live in a safe and secure environment. Activities are grouped into two main compo nents: a Comprehensive Agriculture and Rural Development (CARD) and the Agricultural and Rural Development Zone (ARDZ) initiative. The CARD strategy describes a road map for the way forward in which poverty reduction through economic regeneration is the central objective. The overall focus is to support the poorest and most vulnerable segments of rural society. Proposed interventions will include a range of measures that will differ by group and region, but all are designed to help diversify incomes, and will include income support, di rect provision of assets, skills training and market opportunities. The second main component of the strategy, the Agriculture and Rural Development Zones (ARDZ) program, is the Government’s ap proach to expanding commercial activities and increasing agricultural productivity. The ARDZ recognizes that geographic priorities have to be set in support of the development of commercial agriculture. These geographic pri orities will be used to target infrastructure, utilities and other support by various minis tries. The Government will release publicly held land to increase private sector investment through a competitive bidding process. Fur ther, the Government will continue to investi gate and implement measures to increase fi nancial and technical support that can be util ized by private firms to expand operations. This will ensure that the process of transform ing underutilized state land into commercially viable agro-processing enterprises will begin as quickly as possible. Social Protection The ANDS strategic objective for social protec tion is to assure that the benefits of growth reach the poor and vulnerable, either through the attention directed toward these groups in the design of programs and projects aimed at stimulating growth or more directly, through carefully targeted support programs. Since 2002, the social protection sector has signifi cantly improved in all areas: social support, pension distribution and disaster preparedness. Cash transfer benefits have been established for families who lost household members and the disabled as the main instrument of the social support and national solidarity with the vic tims of the war. The MoLSAMD has estab lished its departments in all provinces and strengthened its capacity for targeting and co operating with NGOs and donors. Around 2.5 million people have been covered with some type of public arrangement for social protec The ANDS: An Overview 13 tion. Efforts will now focus on: (i) improving efficiency of public arrangements for social risk management; (ii) diversifying market-based arrangements for social risk management; (iii) strengthening informal arrangements for social risk management; (iv) capacity building and restructuring in the MoLSAMD, and (vi) im proving partnership with civil society and NGOs to enhance aid coordination. The main principle for future social support will be to enhance fiscal sustainability by focusing on the most vulnerable and supporting the “poorest of the poor.” Finally, strengthening the pub lic/NGOs/private sector partnership will sup port the Government’s intention to remain mainly in the area of policy making and regula tion setting while the private sector and NGOs take increasing responsibility for service deliv ery. Refugees, returnees and internally displaced persons (IDPs) The ANDS strategic objective with respect to refugees, returnees and IDPs is to efficiently manage their voluntary return and their reinte gration into productive participation in society. World-wide experience has indicated that large, unplanned, and essentially involuntary returns which have to be managed as emer gency influxes generate a range of negative consequences. Therefore the planned and vol untary return of refugees and IDPs return is the guiding principle for the sector strategy. More than five million persons have returned to their homes since 2002. Their reintegration into society has been challenging but there has no been no pattern of discrimination against returnees. There is some evidence of secondary migration of returnees from places of refuge to cities and back to the neighboring countries. The latter occur most noticeably in border provinces. Population movements have largely normalized with socio-economic factors largely replacing security and politics as key motiva tors. The number of IDPs has also fallen sig nificantly since 1380 or 1381 (2001/02 or 2002/03). Currently there are an estimated 129,000 IDPs displaced by past drought and conflict, with an additional 29,000 who were more recently displaced by fighting in the southern provinces. The majority of the one million IDPs identified in 2002 have returned to their homes. During 2007 there was some rise in local internal displacement in the southern provinces of Helmand and Uruzgan due to clashes with terrorist groups. Within the re gion, the principal legal and operational framework for voluntary repatriation is pro vided by the Tripartite Agreements (TA) signed between Afghanistan, UNHCR, Iran and Pakistan respectively. These agreements are serviced by regular meetings of Tripartite Commissions at both ministerial and working levels. It is very probable that period of high levels of mass and voluntary repatriation are over. The refugees’ long stay in exile, poverty, and diffi cult conditions in many parts of Afghanistan are likely to prove difficult obstacles to over come in the future. Security, lack of economic opportunities (employment) and social services (health and education) continue to limit return and reintegration. The most significant chal lenges for the future will be: (i) ensuring peace and security in areas of refugee origin; (ii) im proving the Government’s abilities to negotiate effectively with its neighbors on refugee, dis placement and migration issues; (iii) improving the political, economic, social and organiza tional absorption capacities in key sectors and areas, and (iv) developing an implementation plan and resources to support its execution over a number of years. CROSS-CUTTING ISSUES Since 1383 (2004/05) , the Government has giv en considerable attention to a set of issues that cuts across all the critical sectors, in the belief that the overall success of the ANDS will be in jeopardy if these issues are not effectively ad dressed. These cross cutting issues involve (i) regional cooperation; (ii) counter-narcotics; (iii) anti-corruption; (iv) gender equality; (v) capac ity development, and (vi) environmental man agement. The regional cooperation initiatives are in tended to increase access to power; generate revenues by way of through transit trade; re duce impediments to trade and expand both import and export opportunities; increase in vestment and contribute to improved employ ment and business opportunities; facilitate the free flow of goods, services, and technology; allow the costs or benefits of development of common resources to be shared; reduce re Afghanistan National Development Strategy (ANDS) 14 gional tensions and facilitate regional efforts to reduce cross border crime and terrorism, and facilitate the voluntary return of refugees. Counter-narcotics programs are designed to: (i) disrupt the drugs trade; (ii) strengthen and diversify legal rural livelihoods; (iii) reduce the demand for illicit drugs and improve treatment for drug users, and (iv) strengthen state institu tions combating the drug scourge within cen tral and provincial governments. Provincial governors will be responsible and accountable for the process of control and management of counter narcotics intervention in their jurisdic tion, with support from MCN. The National Anti-corruption Strategy is based on the following key goals: (i) enhancing government anti-corruption commitment and leadership; (ii) raising awareness of corruption and evaluating the effectiveness of anti corruption measures; (iii) mainstreaming anti corruption into government reforms and na tional development, and (iv) strengthening the legal framework for fighting corruption and building an institutional capacity for effective implementation of the United Nations Conven tion Against Corruption (UNCAC). The ANDS goal for Gender equality is an Af ghanistan where women and men enjoy secu rity, equal rights and equal opportunities in all spheres of life. The National Action Plan for Women focuses on three main outcomes: (i) government entities embracing “gender equal ity” in their employment, promotion, policy making and budgetary allocations; (ii) measur able improvements in women’s status as evi denced by reduced illiteracy; higher net en rollment ratio in educational and training pro grams; equal wages for equal work; lower ma ternal mortality; increased leadership and par ticipation in all spheres of life; greater eco nomic opportunities and access to and control over productive assets and income; adequate access to equal justice; reduced vulnerability to violence in public and domestic spheres. and (iii) greater social acceptance of gender equality as evidenced by increased participation by women in public affairs and policy discussions. The ANDS Capacity development objective is to ensure that the skills needed to effectively implement programs and projects included in the ANDS exist or can be developed within the required time frame for implementation. The institutional responsibility will be with the In ter-ministerial Commission for Capacity De velopment (ICCD), which will serve as a single reporting point for both government and do nors. ICCD will provide a coordinated ap proach to support the effective management of funds and aid flows, to cut down on duplica tion and to ensure that critical capabilities for program and project implementation are well defined and (most importantly) that capacity development and technical assistance pro grams are properly focused on meeting these critical needs. Environmental protection efforts are geared to: restoration and sustainable use of range lands and forests; conservation of biodiversity; preservation of Natural and Cultural Heritage sites or resources; encouragement of commu nity based natural resource management, pre vention and/or abatement of pollution; and improved environmental management, educa tion and awareness. Throughout all sectors, any environmental costs will be fully ac counted for in appraisals aimed at ensuring the benefits of proposed programs or projects. ENHANCING AID EFFECTIVENESS AND AID COORDINATION The Government has implemented processes to increase the monitoring of aid-funded activities and to improve the efficiency of implementa tion. The Aid Coordination Unit in the Minis try of Finance has responsibility for issues re lated to the delivery and monitoring of external assistance. The Government would like to see increased core budget support (direct budget support), giving greater ownership and ena bling a more effective allocation of resources based on needs and priorities. Channeling aid through established trust funds is also effec tive, with the Government able to access funds on an as-needed basis. Pooling of donor funds also significantly reduces the duplication of effort and leads to better coordination, man agement, and effectiveness. This is especially so with technical assistance grants. Efforts to increase capacity to implement the Core Development Budget more efficiently will result in higher donor contributions, aiding coordination. Equally important is the Gov ernment’s accountability to Afghan citizens on The ANDS: An Overview 15 how aid funds have been spent. The MoF’s Public Expenditure Financial Accountability (PEFA) framework is crucial to this process. The ANDS provides the framework for priority aid delivery. Aid delivery will be greatly im proved where Government, civil society and the international community align expendi tures with the ANDS priorities. Further, the Government will work with civil society or ganizations and Provincial Reconstruction Teams to ensure that these activities are also aligned with the ANDS priorities and goals. IMPLEMENTATION AND MONITORING OF THE ANDS The success of the ANDS depends on effective implementation. The National Budget is the central tool for implementing the ANDS. Giv en this, all line ministries will first develop or align their programs and projects with the ANDS Sector Strategies; sector program and projects will then be costed out and re prioritized against the medium-term budget ceilings. Based on this, the ANDS Public In vestment Program (PIP) will be prepared to enable the full integration of the ANDS into the medium term budget in accordance with the MoF’s ongoing activities to introduce program budgeting. Furthermore, the Government will improve its absorption capacity and fiduciary practices to encourage donors to implement their projects through the National (Core) Budget or, if this is not possible, to assure that programs or projects implemented through the external budget are aligned with the ANDS objectives and priorities. At the national level, several structures will link policy, planning, budgeting and monitor ing of the ANDS. The National Assembly is responsible for legislation to create an enabling environment for security, economic growth and poverty reduction. The Council of Minis ters headed by the President is the highest level decision-making body, providing overall policy guidance and direction under existing legisla tion. The ANDS Oversight Committee (OSC), composed of senior ministers, will oversee and coordinate the overall ANDS implementation process. Line ministries and other government agencies will also be responsible for implemen tation. The MoF will play an important role by making sure that the program and projects of the line ministries are costed out, prioritized and integrated into the National Budget. The OSC will play a key role in coordinating overall efforts to implement the ANDS. Moreover, the Ministry of Economy will strengthen this me chanism by coordinating the work of the line ministries at the operational level. The Joint Coordination and Monitoring Board will re main the highest Government-donor mecha nism in charge of coordination and monitoring, which will cover not only the Afghanistan Compact but the entire ANDS. The Consulta tive and Working Groups will continue to be the key forums for improving aid coordination and ensuring alignment of the donor programs and projects with the ANDS. The Participatory Process 17 CHAPTER 2 THE PARTICIPATORY PROCESS AND PROVINCIAL DEVELOPMENT PLANS Public support for the successful implementa tion of the ANDS is essential. For that reason, Government has developed the ANDS in a thoroughly participatory manner over the last three years, with the goal of seeding a grass roots democracy, ensuring ownership of the policy by people from all corners and all walks of life: civil society, the private sector, religious establishments, the international community and all government institutions, at both na tional and sub-national levels. In the course of developing the ANDS, the Government has undertaken a public policy dialogue with all key stakeholders, embarking on a province based planning process with the goal of bring ing the Government closer to its people, and the people closer to their Government. The outcomes and lessons learned from this con sultation exercise have provided thousands of Afghan citizens an opportunity to participate in discussions on national development policy and strategy. National consultations involved virtually all governmental and major civil society institu tions, including non-Governmental Organiza tions (NGOs), cultural associations, religious communities, the private sector, influential individuals, experts and the international community. Sub-national consultations in volved discussions with provincial governors and representative bodies, village councils, parliamentarians from each province, local civil society, representatives of Provincial Re construction Teams (PRTs) and prominent individuals in all 34 provinces of Afghanistan. More than 17,000 people, 47 percent of whom were women, directly participated in the con sultation process. The consultations focused on all pillars of ANDS. This section summa rizes the participatory and consultative proc ess and the lessons learned... ORGANIZING PRINCIPLES AND PARTICIPATION PROCESS7 The Government undertook extensive and thorough consultations, far exceeding the depth and quantity of consultations usually undertaken as part of a Poverty Reduction Strategy Paper PRSP process. The aims of the consultation process were to: build a national consensus with respect to the Government’s overall vision, development strategy, and greater understanding of the pace at which national development could realistically take place; ensure that citizens had a real impact on de velopment and implementation of public policy; ensure ownership by the Government, which is critical for successful strategy imple mentation; be as inclusive as possible in order to capture the opinions and views of different groups, thereby ensuring that a represen tative strategy capable of addressing the needs and priorities of all citizens would emerge, and in the process ensure Gov ernment fulfillment of the participatory requirements of the PRSP; lay the groundwork for a sustainable process, which would last beyond the life of the 7 Participation is the process by which stakeholders influence and share control over priority setting, policymaking, resource allocations, and/or program implementation. While there is no blueprint for participation, because it plays a role in many dif ferent contexts and for different purposes, the Government has worked hard to design a meaningful participatory process as part of the future ANDS. Afghanistan National Development Strategy (ANDS) 18 development of the full ANDS, and ensure regular input into Government decision making processes, thereby creating a par ticipatory process which will be institu tionalized over time; and Strengthen the capacity of the Government to consult widely on its strategies, as well as to facilitate broader input into its policy making. The consultation process was designed to re flect the structures of Government at national, provincial and district levels, guided by the programmatic structure provided in Figure 2.18 8 Paris Declaration on Aid Effectiveness, 2005 (http://www.oecd.org/dataoecd/11/41/34428351.pdf). Figure 2.1. ANDS oversight structure National Consultation Process National Assembly / Sub-cabinet Committees Consultative Groups /Working Groups / Technical Working Groups Private Sector / Afghan Diaspora Cross Cutting Issues Provincial Consultation Process Provincial Governors / Provincial Development Committee (PDC) Community Development Councils (CDCs) Shuras / Traditional Structures / PRTs Private Sector, Media and Civil Society Consultation Process Religious / Private Sector / National Media Grassroots Organizations / Civil Society Groups NSP/CDC ANDS Oversight Structure Office of the President / Oversight Committee / Joint Coordination and Management Board (JCMB) / External Advisory Group (EAG) Eight Consultative Quarterly Meetings (80-100 participants) 34 Provincial SNC Meetings / 10,000 Stakeholders Technical Working Groups Parliamentarians and Civil Society Engagement Cross Cutting Issues Regional Cooperation / Counter Narcotics / Anti-Corruption / Gender Equity / Capacity Building / Environment 500 participants In nationwide conference; over 1000 in Kabul Cross Cutting CG met throughout I-ANDS Period Pillar 1 Security Pillar 2 Good Governance Pillar 3 Infrastructure Natural Resources Pillar 4 Education & Culture Pillar 5 Health & Nutrition Pillar 6 Agriculture Rural Development Pillar 7 Social Protection Pillar 8 Economic Governance / PSD SECURITY GOVERNANCE SOCIAL AND ECONOMIC DEVELOPMENT Consultations brought together central and provincial decision-making institutions. Valu able outcomes and lessons have been learned as part of this process, which are being used to strengthen the policy, planning and budget formulation. As the consultation design al lowed for ministerial and cross-ministerial cooperation, some of the outcomes of the process have addressed cross-cutting issues. This is particularly so where national and sub national planning, budgeting and financing intersect. Consultations have been ongoing throughout the development of the ANDS (figure 2.2). The Participatory Process 19 Figure 2.2. ANDS timeline 1385 – 1388 (2006-2009) ANDS draft Ministries strategies prepared ANDS Pilot Consultations Launched ANDS Work Plan approved ANDS Consultations Lunched ANDS Sector Strategies integrated into the First Draft of the ANDS ANDS consultation finalized and the Final Draft of the ANDS prepared ANDS approved by the Cabinet First ANDS Progress and Update National & Sub-National consultation and Research ongoing One Year of ANDS Iplementation (HIP) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug... Mar 2006 2007 2008 2009 ANDS Process Lunched at JCMB CONSULTATION PROCESS Consultations were conducted with primary and secondary stakeholders from the: (i) national; (ii) sub-national; (iii) international; and (iv) private sector, civil society, religious and traditional communities. Through the con sultation process the Government has at tempted to connect newly formed central and provincial governance structures and ensure co-ordination of the development process. The following section provides a very brief sum mary of the important strategy design process. National Consultation Process: The day to day preparation of the ANDS was managed by the ANDS Directorate, with the supervi sion of a Presidential Oversight Committee, chaired by the Senior Economic Advisors. The Oversight Committee (OSC) was formed to direct the development and im plementation of the ANDS. The committee is composed of Cabinet Ministers, includ ing the Ministers of Finance, Foreign Af fairs, Economy, Commerce, Justice, Educa tion and the National Security Advisor, and meets bi-monthly to monitor the pro gress of implementation of the Afghanistan Compact, I-ANDS and the ANDS. Within the framework of the various Consultative and Technical Working Groups, each Min istry and Agency developed its individual strategy, coordinated within the sector wide approach that underpins the ANDS. These strategies cut across the three pillars and seventeen sectors. The Joint Coordina tion and Monitoring Board (JCMB) coordi nates the efforts of all partners in the proc ess, and reports the results to the President, the National Assembly, and the UN Secre tary General as well as to the international community and the public. Between quar terly meetings, the JCMB Secretariat coor dinates activities that keep the benchmarks on track. The JCMB serves as the official link between the Consultative Groups (CGs) as well as between the Technical Working Groups (TWGs) and the OSC. Other important national stakeholders in volved in the process include (a) the na tional assembly; (b) sub-cabinet commit tees; (c) consultative and technical working groups and (d) the private sector and members of the Afghan diaspora. Sub National Consultation Process:9 The sub national consultation process of the ANDS represented the first significant dialogue between the central Government and the provinces, and was designed to strengthen centre-periphery relations. The outcome of this consultation process included the for mulation of 18,500 village- based develop ment plans, leading to 345 district devel opment plans, which were ultimately con solidated into 34 Provincial Development Plans (PDPs). This process involved con sultation between parliamentarians, pro vincial authorities, provincial development committees, village Shuras, local Ulama, 9 The sub-national consultation process and how the PDPs were developed and informed policy will be discussed in greater detail in the next section. Afghanistan National Development Strategy (ANDS) 20 the international community (including the Provincial Reconstruction Teams) and most importantly ordinary Afghan citizens. These PDPs identified needs and key de velopment priorities for each province. Both the National (top-down) and sub national (bottom-up) processes were de veloped into the sector strategies, with a move towards the formulation of Sector Wide Approach and Programmatic Budg eting. International Consultation Process: Engage ment between the Government and the in ternational community has been substan tially guided by the Bonn process, which set high level political goals: the Securing Afghanistan Future exercise, the Afghani stan Compact and the MDG process. The international community was involved in the ANDS consultation process through the External Advisory Group (EAG). Among other issues, this organ focuses on imple mentation of the principles of the Paris Declaration. The ANDS Secretariat pro vides support to these structures to en hance coordination and effectiveness and linkage with the national consultation process. The international community was extensively involved in the development and preparation of the ANDS. Consultation with the Civil Society, Private Sector and Media: The Government car ried out extensive consultation with civil society groups, including: (a) the religious establishment; (b) village shuras10; (c) non governmental and not-for-profit agencies; (d) cultural associations; (e) human rights organizations; (f) grassroots associations re lated to women’s affairs, youth develop ment and disability; and (g) Water and Sanitation Committees (WATSAN). Six Afghan coordination bodies and partner NGOs were extensively engaged during the development of the Sector Strategies. Moreover, throughout the process the me dia has been actively reporting on the ANDS, through newspapers, TV, radio and Internet. The role that civil organizations have played at different levels as facilita tors, communicators, advocates and moni 10 Traditional village councils. tors has been invaluable. 11 As part of the economic diagnostic and PDP work, pro vincial discussions were held to discuss the private sector development strategy in the five largest commercial cities, which cul minated in the “Enabling Environment Conference” held in Kabul in Month 1386 (June 2007). Poverty diagnostic consultations: The Gov ernment’s participatory approach to poverty diagnostics involved inviting poor communi ties and their institutions to participate in de fining, analyzing and monitoring poverty as they experience it. This work was also con ducted in the most remote and conflict affected communities of Afghanistan. In so doing, a broad choice of interventions have been estab lished for each province, and each district. Government has considered a range of poverty actions based on specific concerns of the poor, which include vulnerability, sensitivity to con flict, insecurity and governance. As a result of this grass roots planning, a variety of poverty reduction interventions have been considered to address specific local concerns. PROVINCIAL DEVELOPMENT PLANS (PDPS) Provincial Development Plans (PDPs) were developed for all 34 provinces of Afghanistan in order to provide a coordinated framework for the Government and the international community to undertake sector programs and projects at the sub-national level. The linking of consultation to the provincial based plan ning process has allowed local communities to prioritize, sequence, plan and be involved in the implementation of projects. The PDPs de veloped through the Sub National Consulta tions ensure that the priorities in the ANDS reflect the best interests of the Afghan people and are the product of the three rounds of Sub 11 In addition to the feedback, comments and support of a number of CSOs, the Agency Coordinating Body for Afghan Relief (ACBAR) and the Foundation for Culture and Civil Society (FCCS) undertook extensive research in 12 provinces, contribut ing invaluable poverty data for the ANDS, as teams were sent to remote, poverty stricken areas in both rural and urban settings, in order to inform the sector strategies. This information was used in conjunction with findings from the National Risk and Vulnerabil ity Assessment surveys over the past five years, to ensure that the ANDS policies are pro-poor and representative of the more dis advantaged segments of society. The Participatory Process 21 National Consultations that took place across Afghanistan March 2007-March 2008. The PDPs have informed policy formulation, articulated the goals and needs of the people and provided valuable direction for formulat ing sector strategies and the overall ANDS. During the Sub National Consultations (SNCs), preparation for the PDPs was based on the fol lowing: line ministry strategies and plans; priorities of rural communities, including those set out in Community and District Devel opment Plans; priorities of urban communities, including those set out in Urban Plans; priorities of vulnerable social groups including Kuchis, refugees, returnees and Internally Displaced Persons (IDP) and the disabled; and priorities of women, who attended the consul tations with an average of 47 percent par ticipation.12 Development of Provincial Profiles The PDPs contain a profile of each province based on information from the National Risk and Vulnerability Assessment (NRVA) and UNFPA’s Socio-Economic and Demographic Profiles. These profiles provide a geographic, poverty-based social picture of the province and perspectives on the state of provincial de velopment. Opportunities for poverty allevia tion have been included with the agreed goals and needs for each pillar. This provides a guide to potential development in each prov ince, especially for the most urgent local needs. Priority Projects Ten projects have been prioritized for each sec tor and for each province aligned with the fis cal envelope of ministries within the outreach of national programs. In total, 80 priority pro 12 A nomad woman from Balkh province stated that this was the first time she had attended a meeting of nomad women of this province in order to present her opinions for the welfare and prosperity of the country. “We would be glad if the government continues to pursue such policy. Nomads like any other people in the society would also benefit from this process”. Farida Kochi, representative of Balkh‘ Source: ANDS Sub-national Consulta tion, 1386 (2007). jects were identified for each province. The Sub National Consultations (SNCs) served as an opportunity for these ideas, in the shape of Community Development Plans (CDPs) and District Development Plans (DDPs), to be con solidated and improved, and for a consensus on them to be reached with a wider audience in the province before being incorporated into PDPs. Priority projects from the eight sectors across the 34 provinces therefore represent a list of activities that respond to the most urgent needs in each province. These are being mapped into the national budget process. PRIORITIZATION AND SEQUENCING OF THE PDPS Aligned with National Programs, the provin cial priority projects form the basis on which implementation of the ANDS will take place at the local level. Out of the 80 projects priori tized during the SNC process, the most critical were aligned with the five most crucial sectors and prioritized into tiers. Tier one projects rep resent the most urgent tasks. This has allowed for a logical resource allocation and prioritiza tion process to be carried out. Provincial budg eting, as a component of the National Program Budgeting Reform Progress, is also informed by the provincial prioritization process. It aims to empower local authorities and increase the appropriateness of resource allocation. This is currently being piloted in 10 provinces and will be extended to a further 10 in 1387 (2008/09). INTEGRATION OF THE PDPS INTO ANDS The data from the SNCs and PDPs was fully incorporated into ANDS in the following ways: For each Sector Strategy comments gathered from the SNCs from a provincial perspec tive have been a starting point for address ing the country’s most urgent needs. Prioritized projects will be aligned with minis tries’ national programs. This will enable a more transparent provision of services and a more clearly defined implementation and monitoring mechanism. The prioritization process will assist ministries with effective resource allocation; provin cial projects highlighted as the most urgent Afghanistan National Development Strategy (ANDS) 22 should be seen as priority action by the ministries. OUTCOMES FROM THE PROVINCIAL DEVELOPMENT PLANNING PROCESS One of the most valuable outcomes of the sub national consultations was the clear indication that the 34 provinces have different develop ment priorities. The PDPs have formed an inte gral part of Government policy formation, pri oritization, sequencing and resource allocation. In addition, two national overriding considera tions emerged as critically important to any intervention: the importance of preserving the country’s Islamic religious principles, culture and lifestyle, and ensuring equity of access to resources and intervention. Security emerged as a top priority in two-thirds of the PDPs, most strongly in the south and the east of the country. In these regions, security is perceived as the basis on which all other devel opment depends. Key issues identified by stakeholders13 include: (i) lack of access to clean drinking water in all provinces, for both domestic use and through out institutions such as schools and clinics; (ii) improvement of provincial roads, with 83 per cent referring specifically to the need for terti ary road services, to improve communication 13 For a detailed breakdown and analysis of provincial priorities, sequencing and integration into Sector Strategies see Volume iii of the ANDS. between villages and district and provincial centers, access to basic services such as schools and clinics; (iii) improvement of low quality services emerged as a key priority throughout the country, especially with respect to poorly trained teachers and doctors; (iv) lack of alter native livelihoods to the cultivation of poppies; (v) lack of vocational training for returnees and disabled people; (vi) poor access to electricity (cited in 80 percent of the PDPs), and (vii) cor ruption within the public administration (men tioned in 80 percent of the PDPs, particularly within the security services). PRIORITIZATION OF THE PILLARS The eight ANDS pillars have been prioritized with the help of qualitative information from the PDPs. This has been illustrated in two ways. Figure 2.3 shows the proportional repre sentation of priorities within the top five sec tors across the 34 provinces. Unsurprisingly, with 80 percent of the population relying on some form of agriculture, it appears as a clear national priority. In order, the key priorities are: Agriculture Security Education Governance Health Private sector Roads Infrastructure (energy and water) and social protection. Figure 2.3. Proportional representation of sectors across all 34 provinces The Participatory Process 23 Table 2.4 shows the top priorities for provinces, shown for all 34 provinces. Thus in 17 out of 34 provinces security can be seen as the absolute number one priority. Roads is shown as a sub sector since people articulated this as a separate requirement from other infrastructure devel opment (health is not mentioned because al though it appears numerous times in the top five priorities for provinces, it is not considered the top priority in any province). Table 2.4. Sectors/pillars and the number of provinces in which they are a top priority Sector or Pillar No. of provinces Security 17 Infrastructure 5 Education 4 Employment 3 Roads 3 Agriculture 2 Governance 1 Figure 2.5. Top priorities of provinces – primary ranking Afghanistan National Development Strategy (ANDS) 24 Figure 2.6. Top priorities of provinces – secondary ranking Figure 2.5. Top priorities of provinces – tertiary ranking REGIONAL VARIATION IN PRIORITIES From a regional analysis some general similari ties can also be seen from the above map: In the South and South East regions the major priority is security. In the West and Northern regions priorities are mainly employment generation and infra structure development. The Participatory Process 25 In the North East and Central Highlands the main priorities are provision of roads, edu cation and agriculture. The clearest message to be obtained from a provincial level analysis is that every province is unique in its needs, goals and priorities and this should be a major consideration within the resource allocation process. CONCLUSION The ANDS results from an extensive process of consultations with crucial players at the inter national, national, provincial and grassroots levels. The insights provided by these consulta tions have served to highlight both national and local priorities to form a holistic vision of the country’s development strategy, while keeping in mind the experiences of the interna tional Community. The PDPs have made possible the prioritization of provincial sectoral goals. It is envisioned that the participation of all parts of the community in formulating the ANDS will continue throughout implementation of the strategy. Lessons learned have been formally integrated into the policy, planning and budg eting processes, including ongoing concerns about regional cooperation, conflict manage ment, counter-narcotics, anti-corruption, gen der, the environment and capacity building. It is assumed that integration of provincial level planning, budgeting and implementation with in the national development process will en sure that the process is relevant and account able. The Poverty Profile 27 CHAPTER 3 THE POVERTY PROFILE In developing the ANDS, Government has con sistently pursued a pro-poor growth strategy. By pro-poor is meant the adoption of growth enabling policies and targeted social protection investments that result in bringing poor people out of extreme poverty at an accelerated pace. In practice, this means that Afghanistan seeks to ensure that the incomes of its poorest citi zens rise faster than the average growth of the economy. Key findings of the Spring 1385 (2006/2007) or 1386 (2007/2008) National Risk and Vulnerability Assessment (NRVA) showed 42 percent of Afghans living below the poverty line had an income of US $14 per capita per month. Moreover, an estimated 45 percent of the population was unable to purchase suffi cient food to guarantee the world standard minimum food intake of 2,100 cal/day. An other 20 percent were living just above the poverty line, and remained highly vulnerable. In addition to the high incidence of consump tion disparity, there is a significant difference in poverty levels among provinces, and be tween rural (36 percent) and urban (21 percent) communities. For example, the depth of pov erty (the poverty gap) in the Northeast appears to be higher than in the South, whereas the av erage distance between the poor and the pov erty line seems to be larger in Badakhshan than in Zabul. Parwan and Logar provinces have poverty rates of less than 10 percent while Dai kundi has a poverty rate of 77 percent; and among all groups,women and Kuchis experi ence the lowest level of welfare. Gender ine quality is an important characteristic of poverty in Afghanistan. The vast majority of women do not participate in paid work, making them highly dependent on their husbands or fami lies. The literacy rate among women is much lower (19 percent) than for men (40 percent) while the net primary school enrollment rate for girls (6-9) is around 21 percent; for for boys it is28 percent. DATA COLLECTION, POVERTY MEASUREMENTS AND ESTIMATES The Government has undertaken extensive as sessments to improve its understanding of the determinants of poverty and the impact of growth and poverty reduction programs on different income groups. In addition to the NRVA studies, the Government has relied on information from the Participatory Poverty As sessments conducted by ACBAR (Agency Co ordinating Body for Afghan Relief) and the FCCS (Foundation for Culture and Civil Soci ety). ACBAR launched the Afghanistan Pilot Participatory Poverty Assessment (APPPA) in several provinces to improve collective under standing of different poverty perspectives, its analysis and formulation into the ANDS pov erty reduction strategy. Data Collection: National Risk and Vulnerability Assessments Information on the specific nature of poverty in Afghanistan is restricted by limitations of qual ity and quantity. The NRVA is the principal source of data, which is. based on limited household surveys. The 2005 NRVA covered approximately 31,000 households, allowing national and provincial poverty rates to be as sessed. While the 1383 (2004/05) OR 1384 (2005/06) NRVA survey was a substantial im provement on previous studies, it also had sev eral weaknesses, as just one season was cov ered. To overcome this, a separate survey was conducted in Spring 1385 (2006/07) OR 1386 (2007/08). Ongoing data collection includes the planned 1385/86 (2007/08) NRVA survey (principally funded by the EC). This study will cover all seasons and the consumption module includes Afghanistan National Development Strategy (ANDS) 28 assessment of more food items and non-food items. Moreover, stronger emphasis has been placed on survey design and the collection and computation of high quality data. Sub-national Consultation and the Pilot Participatory Poverty Assessment The ANDS sub-national consultation process has contributed to a far deeper understanding of the specific nature of poverty in the Afghan context. Consultations were held in all prov inces, with discussions on critical priorities for poverty reduction such as education, health, water and sanitation, agriculture and social protection. Women comprised 46 percent of those who took an active part in these discus sions.14 Box 3.1. Voices of the poor “The poor are the ones with an empty stom ach,” or “the poor are the ones who do not have enough milk to make yogurt.” Fur thermore, Afghan citizens describe poverty “as being an incapacity to plan for the fu ture,” and the poor as “those who are unable to foresee what will happen tomorrow.” One man in Bamiyan province defined poverty by saying, “The poor are the ones who can be sick today and dead the next day”. Interviews by: MoWA, 2007 Poverty measurement: cost of basic needs analysis The Cost of Basic Needs (CBN) represents the level of per capita expenditure at which the members of a household can be expected to meet their basic needs, comprising food and non-food items. An analysis based on NRVA 1383 (2004/05) OR 1384 (2005/06) yielded a CBN poverty line for Afghanistan of about 593 Afghani per capita per month, or around US $14 (at 1383 (2004) OR 1384 (2005/06) prices). An update of that assessment last Spring put 14 ‘A nomad woman from Balkh province stated that this was the first time she had attended the meeting on behalf of nomad wom en of this province in order to present her opinions for the welfare and prosperity of the country. “We would be glad if the govern ment continues to pursue such policy. Nomads like any other people in the society would also benefit from this process”. Fari da Kochi, representative of Balkh‘ Source: ANDS Sub-national Consultation, 1385 (2006/07 OR 1386 (2007/08). the number at 708 Afghani per capita per month, equal to US $14, because of the shift in the exchange rate. POVERTY ESTIMATES The latest NRVA survey (Spring 1385 (2006/07) indicates that 42 percent of the population lives below the CBN poverty line (figure 3.2). That is, almost half of the Afghan population is un able to purchase a basic food basket to provide 2,100 calories consumption per day. The Poverty Profile 29 Figure 3.2. Regional poverty comparisons Seasonality and poverty Poverty levels in Afghanistan vary by season. This further compounds the understanding of poverty in Afghanistan. The Food Security Monitoring Survey (FSMS) suggests that households tend to have the richest consump tion in summer following the harvest, with more restricted food consumption during win ter, especially in March.15 Box 3.3. Seasonality and poverty During apring we plant, in winter we har vest so in autumn and winter we have enough food. At the end of winter and the beginning of spring we do not have enough.” Female participant, Shawak vil lage, Badakhshan. Source: APPPA final report, Month, 1386 (March 2008) Vulnerability The 1383 (2004/05) OR 1384 (2005/06) NRVA showed that 20 percent of the population is living very close to the poverty line, which in dicates thateven very small consumption shocks can tip many additional people into po verty very quickly. For instance, a 5 percent reduction in caloric intake across the board will cause the poverty as defined above rate to rise from 33 to 38 percent. According to the 1383 15 Source: Understanding Poverty in Afghanistan, Analysis and recommendations using National Risk & Vulnerability Assess ment (NRVA) 2005 and Spring 2007, WB, October 30, 2007. (2004/05) OR 1384 (2005/06) NRVA, a 25 per cent increase in the number of people living below the poverty line would means that 53 percent of the Afghan population is living in poverty. A 25 percent downward shift would reduce the poverty rate to 14 percent. Table 3.4 highlights the potential impact of consumption shocks on poverty incidence. Table 3.4. Impact of consumption on poverty rate16 Sector Base case (% poverty) 5% shock (% poverty) 10% shock (% poverty) Kuchi 30% 33% 38% Rural 36% 40% 45% Urban 21% 25% 29% Total 33% 38% 42% POVERTY IN AFGHANISTAN: MAIN CHARACTERISTICS OF INEQUALITY Afghanistan has the lowest level of economic inequality in South Asia as measured by the Gini coefficient Significant inequality does ex ist between many segments of Afghan society, however. The variation in poverty among the rural, Kuchi REMINDER TO EXPLAIN WHO KUCHIS ARE IN INTRO and urban popula tions is of great importance. Meanwhile, gen der inequality in Afghanistan is one of the world’s highest. 16 Source: 1383 (2004/05) OR 1384 (2005/06) NRVA , WB Staff Estimation Afghanistan National Development Strategy (ANDS)30 Consumption Disparity Consumption inequality is a serious concern. The World Bank has estimated (based on the 1383 (2004/05) OR 1384 (2005/06) NRVA) that the bottom 10 percent of the population ac counts for 3.6 percent of total CALORIC/FOOD consumption while the bot tom 30 percent accounts for 15.6 percent of total consumption. Combined with very low overall levels of consumption, this indicates that the poorest population suffers from high levels of deprivation (table 3.5). Table 3.5. Share of consumption by quintile Group Share of total consump tion (%) Bottom 10 % 3.6 Bottom 30 % 15.6 Top 30% 47.8 Top 10% 21.1 Top 1% 3.5 Poverty also varies significantly between prov inces. Poverty headcount rates vary from around 10 percent to more than 70 percent, with conditions more severe in the Northeast, Central Highlands and parts of the Southeast. Entire provinces, such as Daikundi, Badakh shan, Zabul and Paktika represent large pock ets of poverty. The 1383 (2004/05) OR 1384 (2005/06) NRVA indicates a significant disparity in poverty be tween rural and Kuchi populations compared to urban populations. Around 45 percent of rural and Kuchi populations appear to be poor, as opposed to 27 percent of urban residents. Rural populations have the highest rates of food insecurity, with 45 percent failing to meet minimum daily food requirements. Moreover, it is noted that 40 percent of the Kuchi popula tion and 41 percent of the urban population are also unable to meet their minimum food intake (table 3.6). Table 3.6. Estimated poverty headcount rates and food insecurity in 1385 (Spring 2007). 17 Kuchi poverty shares many of the core charac teristics of rural poverty, although food insecu rity is not as high as in the case of rural house holds (table 3.6). Significantly, the poorest Ku chis are those who have settled. Sector Food poverty CBN poverty Food insecurity index Kuchi 40% 45% 39% Rural 45% 45% 39% Urban 41% 27% 37% National 45% 42% 39% These disparities are reflected in primary school enrollment rates (table 3.7), though in this regards, the Kuchi population is particu larly disadvantaged. Table 3.7. Enrollment rates (ages 6-9)18 Group Female (%) Male (%) All (%) Kuchi 5.0 5.8 5.4 Rural 20.1 28.8 24.6 Urban 34.7 34.9 34.8 All 21.2 28.4 24.9 Characteristics of Rural Poverty Afghanistan’s rural population—is for ap proximately 80 percent of the national total. The chief characteristic of rural poverty is high food insecurity and a lack of access to infra structure and basic public services. Rural Af ghans suffer from a high degree of illiteracy and a low level of education. Rural households are highly dependent on agriculture, although non-farm activity has begun to play a bigger role in the survival strategy of the rural poor. The poorest of rural households are those who live in remote and mountainous areas, who do not possess land or livestock, and whose head of family is illiterate or without any education.. 17 4: The World Bank based on 1383 (Spring 2007) survey. 18 Source: World Bank Staff Estimates based on 1383 (2004/05) OR 1384 (2005/06) NRVA. [I can’t make it any smaller with my Word commands The Poverty Profile 31 Characteristics of Poverty among Kuchis Kuchis are nomadic pastoralists, estimated to total 1.5 million people, are heavily dependent on livestock and migration patterns for their livelihood. In recent years, 15 percent of Kuchi families have been forced to cease migration and settle. Reasons for settling include loss of livestock due to recent droughts and insecurity, which has disrupted traditional migratory routes. But the biggest cause of being settled is growing banditry and local crime as well as conflict over grazing areas with non-Kuchi populations. The failure of local authorities to deal with disputes over traditional pasture rights has already led to a number of conflicts and increased poverty among Kuchis. Kuchi poverty shares many of the core characteristics of rural poverty, although food insecurity is not as high as in the case of rural households (table 3.6). Significantly, the poorest Kuchis are those who have settled. Characteristics of Urban Poverty Urban poverty and food insecurity is less than among the rural and Kuchi populations How ever, recent research regarding urban liveli hoods from a European Commission funded project suggests that urban poverty is increas ing, and is positively correlated with the grow ing urban population.19 Many informal settle ments around major cities have been built in order to accommodate migrant workers, re turnees and others. For years these suburbs have been one of the largest neglected pockets of poverty. Several recent studies have con cluded that low paid employment does not guarantee that citizens live above the poverty line.20 Due to poor daily wages, many urban workers fall into the category of the “working poor”.21 Employment insecurity leads to in come irregularities and to a chronic shortage of money. Many urban poor households lack money to survive day to day, and are forced to take short term loans for such basic needs as 19 Urban Livelihoods in Afghanistan, Jo Beall and Stefan Cshutte, August 2006. 20 Study on Chronically Poor Women in Afghanistan (Draft), 1385 (March 2007) 21 Working poor is a term used to describe individuals and fami lies who maintain regular employment but remain in relative poverty due to low levels of pay and dependent expenses. food and rent. Income fluctuation, job insecu rity and high indebtedness are core characteris tics of the “poverty trap” in which many of the urban poor are caught. Gender Inequality Gender inequality is an important aspect of poverty in Afghanistan. The vast majority of women do not participate in paid economic activities, which makes them highly dependent on their husbands or families. In spite of this, women, especially in rural areas, actively con tribute to the household income through em ployment (often unpaid) in agriculture and livestock activities. Nevertheless, the gender gap remains large with the literacy rate among women much lower (19percent) than for men (40 percent; net primary school enrollment rate for girls aged 6 to 9 is around 21 percent; for boys it is 28percent) (table 3.7). Because of this lack of education and employment opportuni ties, female-headed households are closely cor related with high poverty rates.22 MOST IMPORTANT CAUSES OF POVERTY: POVERTY CORRELATES A number of factors contribute to poverty, in cluding a lack of infrastructure, limited access to markets, social inequality, historical and on going conflict and various other constraints on productivity. The APPPA found that the key determinants of poverty were: (i) a weak assets base; (ii) ineffective institutions, weak regional governance, service delivery and corruption; weak social protection and social inequalities; and (iii) vulnerability to conflict, natural disas ters and a decreasing rule of law combined with an increase in basic costs and population; food insecurity in the winter season and (iv) non-diverse livelihoods. Source: APPPA Final Report, March 2008. 22 As a recent APPPA Final Report stated, “We women have no rights or decision-making power. The men make decisions inside and outside the house. This is normal for us.” Female participant, Bai Sar Community, Herat. Source: APPPA, Final Report, 1386 (March 2008). Afghanistan National Development Strategy (ANDS)32 Literacy levels Poverty is highly correlated with literacy skills. The 1383 (2004/05) OR 1384 (2005/06) NRVA reports that the poverty rate for households with illiterate heads is 37 percent, compared to 23 percent among households head by literate members. Citizens with even a primary educa tion experience poverty at a rate up to 10 per cent less than families with uneducated heads. Agriculture and livestock are posi tively correlated with poverty The 1383 (2004/05) OR 1384 (2005/06 NRVA report found that households dependent on agriculture and livestock activities are among the poorest. Meanwhile, a large proportion of households in the top two consumption quin tiles derive their income from trade and ser vices. Education, literacy and access to major roads are also highly correlated with greater involvement in non-farming activities.. Asset ownership and crop diversifica tion Lack of land and livestock ownership is associ ated with lower poverty.23 Small land owners, landless families and families without livestock are in most cases poor. Moreover, ownership of non irrigated land is strongly associated with levels of poverty with families who are engaged in cultivating rain fed land much poorer than families that cultivate irrigated land. Equally, livestock ownership appears to decrease economic vulnerability. Urban fami lies without home ownership are highly vul nerable as they have to allocate large parts of income to paying rent. Moreover, crop diversi fication appears to be an important spring board strategy for escaping poverty. Access to education Poverty reduction and economic growth are closely associated with educational level. As highlighted above, a literate head of household 23 According to the WB analysis based on 1383 (2004/05) OR 1384 (2005/06) NRVA more than 70 percent of households in Afghanistan are engaged in agriculture livestock activities. has greater earning potential and is less likely to be poor. Access to education by the lowest consumption quintileis low, resulting in a low er net primary school enrollment rate.24 The 1383 (2004/05) OR 1384 (2005/06) NRVA also highlights a significant gender disparity in net primary school enrollment, especially among Kuchi and in rural areas, while the disparity in urban areas remains small. Access to health facilities A lack of access to health facilities and poverty are closely related. Higher household con sumption is associated with more frequent vis its to health facilities and higher vaccination rates of children (see box 3.8). Access to the Basic Package of Health Services (BPHS) has significantly improved, covering 85 percent of the population in 1384 (2005/06) OR 1385 (2006/07). This has contributed to a reduction in the poverty rate in these areas. Box 3.8. Health and hospital services in the provinces “We don’t have a clinic here but if you are lucky enough to be able to drive the 30 kilo meters to the nearest hospital you find doc tors who are not professional, who don’t pay attention to you, and who tell you to go out and buy your own medicine.” Female par ticipant, Papchi village, Herat. Source: APPPA, final report, 1386 (March 2008) Other important causes of poverty A number of other factors are linked with pov erty in Afghanistan: Indebtedness: a lack of job security, irregular income, pressure to buy food and having to pay rent forces many rural and urban poor to increase their borrowing. Remoteness: the NRVA data indicate poverty is much lower in areas that are close to the main roads (i.e. the Ring Road). Topog raphical remoteness and the lack of access to major roads remains a major cause of poverty. 24 Net primary enrollment rate is the proportion of primary school children (age 6-9) enrolled in primary grades. The Poverty Profile 33 Female household heads and disability: re search conducted by MoWA identified fe male households as being having higher rates of poverty. Having a disabled head of household or a disabled family member is also associated with higher poverty. The remaining causes of poverty include: (i) security; (ii) large households with small chil dren; (iii) poor access to basic services (water and electricity), and (iv) natural disasters. Box 3.9. Poverty and natural disasters “In the spring the river overflows. There is no retaining wall and our lands are dam aged.” Male participant in APPPA consulta tion, Bai Sar community, Herat. Source: APPPA final report, 1386 (March 2008 WHO THE POOR ARE: THE MOST VULNERABLE GROUPS According to the 1385 (Spring 2007) survey, approximately 10 million Afghans, or roughly 42 percent of the population, live below the poverty line and do not meet their daily food or non-food requirements. While high rates of poverty continue among Kuchi and rural households, the incidence of poverty is increas ing in urban areas and large city suburbs as well. Families with a large number of small children Afghanistan has one of the largest child popu lations and a low average family income. This exposes families with a large number of small children to economic shocks. Moreover, the country also has one of the highest under-5 infant mortality rates in the world. Children of that age are the most vulnerable because they require high quality nutrition and other forms of child care unaffordable to most families. Many rural and urban children are forced to work to bolster family incomes, resulting in widespread child labor and dropping out of school, thereby trapping the children in an end less cycle of poverty. Female Headed Households According to 1383 (2004/05) OR 1384 (2005/06) NRVA data, female-headed households com prise approximately 2.5% of Afghan house holds. These households are typically highly vulnerable to economic shocks, with a signifi cant number not having a single able-bodied income earner. Disabled, internally displaced and ex tremely vulnerable poor Afghanistan has one of the largest rates of dis ability in the world. According to Handicap International there are roughly 800,000 dis abled people in Afghanistan. The unemploy ment rate among these groups is almost 90 per cent. The country also has a large number of internally displaced persons (IDPs). The high vulnerability to natural disasters, ongoing con flict and forceful repatriation of the refugees from the neighboring countries contributes to overall poverty. Increasing migration to cities, job insecurity, indebtedness and the collapse of traditional safety nets has pushed many urban poor into extreme poverty. POLICY FRAMEWORK FOR POVERTY REDUCTION Poverty in Afghanistan is complex and multi dimensional. The NRVA surveys reveal the severity of poverty, with one in two Afghans being classified as poor. Further, a large num ber of people live just above the poverty line and are highly vulnerable to natural, security and price-based shocks. To address this, the policy framework for the ANDS is premised on the following principles: Promotion of pro-poor growth: the Govern ment will tackle poverty first and foremost by promoting strong, equitable and broad based private sector-led growth. In paral lel, fiscally affordable social protection safety nets will be undertaken as part of regular Government business. Promotion of pro-poor budgeting: the most important sectors affecting poverty and poverty reduction, including security, edu cation, health, and social protection, will see budget allocations maintained or in creased over the medium term. Afghanistan National Development Strategy (ANDS)34 Allocation of adequate resources to the poorest areas: although past expenditure alloca tions were in favor of the pro-poor sectors, actual spending has not always been well focused to benefit the poor and vulnerable. Provision of balanced support to the Kuchis, rural and urban poor: the majority of Gov ernment and donor interventions have been aimed at supporting the rural poor. Future support to the Kuchis, rural and ur ban poor will be based on levels of poverty. Focus on the poorest and most vulnerable: given the huge needs and scarce resources of the Government and the international community, the poverty reduction strategy will need to prioritize the targeting the poorest of the poor. Improve donor coordination and aid effectiveness: donor support and improved donor coordination together with the eli mination of duplication in delivering assis tance to the poor is essential to the success of the ANDS poverty reduction strategy. Strengthen the capacity for data collection and poverty analysis: institutional capacity for data collection and poverty analysis will need to improve in order to better inform policies for poverty reduction. The Gov ernment will actively mainstream the pov erty focus throughout monitoring and data collection mechanisms. Build a partnership between the Government and NGOs: the role of NGOs in delivering services to the Afghan poor is recognized. Strengthening the Government’s policy making capacity needs to be combined with a strengthening of the partnership with NGOs in the area of service delivery. Implementation, monitoring and in stitutional strengthening Implementation and monitoring of the ANDS poverty reduction policies will be main streamed through the sector strategies. How ever, the evaluation of the overall ANDS sector policies for poverty reduction will be evaluated separately to inform policy makers about their effectiveness. The NRVA will remain the main tool for data collection on matters of poverty. However, the introduction of the household budget survey and strengthening of the CPI and national income data will also contribute to a clearer understanding. The forthcoming Cen sus Survey will play an important role in en hancing the understanding of poverty. The ca pacity of the Statistical Office for data collec tion of key poverty and development indicators will need to be strengthened. Moreover, the Government will continue to improve its own capacity to undertake poverty analysis within the CSO and other Government agencies. HIGH PRIORITY SECTOR POLICIES FOR POVERTY REDUCTION Security, maintaining strong growth and macroeconomic stability Maintaining steady growth rates of between 7 and 9 percent of the GDP (in real terms) through the promotion of the private sector is expected to lead to a reduction in the national headcount poverty rate of around 2 percent annually. Equitable growth distribution is the precondition for broad based poverty reduc tion. This will require higher budget expendi ture in the critical sectors of health, education and social protection, and higher levels of pub lic spending in the poorest provinces and in remote areas where poverty levels are high. Maintaining macroeconomic stability, includ ing prudent fiscal policies, is critical to growth, as is maintaining price stability and single-digit inflation rates. Improving the security envi ronment would significantly contribute to pov erty reduction, leading to increased economic activity and the preservation of human capital and household assets. Moreover, it would de crease internal displacement and reduce pres sure on impoverished urban dwellers due to the migration of more impoverished rural fami lies to the cities. Generating employment and labor market policies Given widespread low-productivity employ ment and the large number of jobless, em ployment generation is one of the most impor tant weapons in reducing poverty. An im proved security and business environment will support stronger private sector growth, which The Poverty Profile 35 will gradually become the main source of em ployment and the main instrument of poverty reduction. This requires expanding the mining and oil and gas sector. The Government, sup ported by the donors, will increase public work activities and their presence in the poorest provinces. The National Solidarity Program (NSP) will continue to play an important role in generating jobs and income for the rural poor. Skills development programs will expand to help the unemployed obtain qualifications that are in genuine demand. Moreover, public ad ministration will employ more women and disabled people. Labor market regulation and pension reforms will be improved to provide protection from private employers, especially for workers engaged in the informal economy. Education and health Education and health will remain the priority sectors for public spending. The Government will continue its policy of providing free uni versal education. Increasing the literacy and net primary school enrollment rates and de creasing the number of school drop-outs will be the main contribution of the education sec tor to poverty reduction. Higher attention will be given to supporting disabled peoples’ access to facilities, including specialized institutions and the adjustment of schools and universities to meet their needs. The Health sector will continue to be strength ened. Building new health centers in rural and poor urban areas will be a priority for health sector public spending. The special needs of disabled will be better accounted for in the Ba sic Package of Health Services (BPHS). Two major issues that contribute to women’s poverty are a lack of maternal heath services and education for girls. Both issues are caused by a lack of facilities and are linked with the need for health services designed for women and girls. In relation to the provision of mater nal health services, there is a great need for fe male doctors and trained mid-wives to offer culturally appropriate health services. Af ghanistan has one of the highest rates of popu lation growth among developing nations, and despite strong cultural limitations, the overall poverty reduction strategy will need to encour age family planning. Social protection and urban develop ment Social protection programs will focus on sup porting the most vulnerable and the poorest of the poor. This includes “children at risk,” chronically poor women, poor disabled, men tally ill who have no family protection, ne glected elders and drug addicts. Many urban homes are built without the neces sary construction permits, creating uncertainty and risk for typically poor families. To address this uncertainty, the Ministry of Urban Devel opment will include pro-poor urban develop ment programs. The first priority will be to legalize construction in residential areas and develop basic infrastructure to improve public service delivery. Malnutrition is one of the major causes of the country’s high under 5 infant mortality rate, with the poor being the most vulnerable. The Government will consider introducing the Za kat-based PLEASE I.D. ZAKAT tax to increase allocations for social programs to support these programs. Agriculture and rural development Rural development and agriculture are key sectors for improving rural livelihoods. Access to markets has been indicated as an important determinant for rural poverty in Afghanistan. Programs to support crop diversification, tar geted livestock, orchards, and the distribution and provision of farming implements will con tribute to poverty reduction among the rural poor. IImproved access to rural all-weather roads, sanitation, electricity, job opportunities and promoting rural enterprises will also make an significant difference. These programs are important tools for rural income generation and for the elimination of poppy cultivation. Water and irrigation Investments in water management and irriga tion will significantly contribute to higher food security and poverty reduction for those who currently farm on rain fed land. Along with malnutrition, lack of access to clean water, poor sanitation and sewage are among the main causes of high infant mortality. To address this, the Government will increase public spending to improve access to clean water. Afghanistan National Development Strategy (ANDS)36 Disaster preparedness and commu nity-based insurance schemes Natural disasters, particularly droughts and floods, are one of the major causes of vulner ability among the poor. The destruction of crops due to drought represents a higher pov erty risk than sickness or loss of a working fam ily member. Building more efficient disaster preparedness and response will decrease the risk of falling into poverty. Further, the Gov ernment will initiate the establishment of community- based crop insurance schemes to enable the poor to minimize the consequences of a lost harvest. Energy and transport Expansion of the national road network, in cluding construction of additional rural roads, will allow poor households to diversify income generation, from low profit crops to more prof itable activities such as trade, services and small businesses. Investment in transmission lines and power generation will increase access to electricity, improving productivity. Social protection safety nets will be strength ened to ensure that the poor can cope with the planned elimination of energy subsidies, which will increase the risk of poor and marginal households falling further into poverty, espe cially urban households. Justice and anti-corruption Greater access to justice, especially for women, is an important component of the ANDS goal of empowering the poor and providing grea terprotection to victims of violence. Justice re form will also improve the business environ ment and increase investments and job genera tion. The ANDS will also reduce corruption in key sectors such as justice, health, public ad ministration and education, which will have significant benefits for the poor. Empowering the poor: the role of NGOs Expanding the service delivery and policy in put role of NGOs and civil society is crucial to reducing poverty. This is strengthened by the ANDS’ participatory structure within Afghan society. ANDS progress reports will be pub licly disseminated. Civil society and sub national level bodies will be consulted in prep aration of the ANDS updates. Qualitative and quantitative assessments and analysis will be provided to NGOs on a regular basis to obtain their input on the key priorities for poverty reduction. The role of the NGOs in delivering services to the poor will increase, as will their role in providing the Government with the “voices of the poor” and policy advice. CONCLUSION During the pre-harvest 1385 (Spring 2007), the NRVA estimated that 42 percent of the popula tion was below the poverty line. A great many more people remain vulnerable to falling below the poverty line as a result of rising food and fuel prices or bad weather. Great reliance is being placed on private sector-led development and growth to create sustainable employment and market opportunities. It is these opportu nities that will allow the majority of Afghans to improve their lives and pull themselves out of chronic poverty. As the ANDS sector strategies are implemented, great effort is being made to use participatory and consultative processes to better understand the needs of the poorest and most vulnerable groups and to inform the de sign of appropriate programs to address those needs. The real needs are so enormous that substantial interventions are indeed required to provide real assistance to the neediest, particu larly women burdened with both child care responsibilities and social constraints, and the disabled, who are given too few opportunities for full participation in society, where they might take advantage of improved employ ment and market advantages. Special pro grams must be put in place to target these groups, so that they too can share in the bene fits from economic and social development programs. This is important not only on hu manitarian grounds but in terms of building the community cohesion that is the foundation of a tolerant and compassionate Islamic state. PART II THE NATIONAL DEVELOPMENT STRATEGY Macroeconomic Framework 39 CHAPTER 4 MACROECONOMIC FRAMEWORK High, sustainable, broad-based economic growth and the preparation of a viable macro economic framework are indispensable for poverty reduction and employment creation. The overall growth strategy of the ANDS is based on a firm policy of private sector-led growth. During the last five years, per capita income nearly doubled from US $147 to US $289. Comparable economic growth will be needed over the next five years if the poverty reduction goals of the ANDS are to be achieved. This will require a supportive envi ronment for social and economic development, which will depend crucially on making signifi cant progress toward improving security, eliminating the narcotics industry, reducing corruption and strengthening governance. Equally important will be the continued main tenance of sound and stable macroeconomic policies. Past high growth experience does not guaran tee similar high rates of growth in the future. The strong economic performance of recent years reflects substantial public investment in reconstruction activities and a large influx of foreign assistance. We cannot assume equiva lent contributions to economic growth in the coming five years. While public/donor in vestment will undoubtedly continue to be im portant in the near term, private economic ac tivity must be increased if long term growth is to be sustained and the benefits of develop ment extended to the entire population. The drivers of economic growth are the rate of investment and the rate of improvement in productivity. A key strategic objective of the ANDS is to establish a secure economic envi ronment in which it will be possible to attract sufficient levels of investment and which will encourage the employment of human, financial and natural resources in the most productive ways possible. A critical element in achieving this objective will be to substantially increase investment in the development of capacity of the workforce in order to expand employment opportunities and increase incomes. The ability to implement the projects and pro grams included in the ANDS depends upon the resources that will be available. This chapter presents summaries of the macroeconomic pro jections for the next five years on which esti mates of available resources are based and pro jections of the domestic and donor financial resources that will be required to implement the ANDS. In order to ensure that sufficient resources will be available, the Government has made a significant increase in domestic revenues a high priority. Fiscal policies will remain a central policy tool for macroeconomic stability, public resource allocation, and implementation of the devel opment strategy, all of which are essential to sustained robust economic growth. Foreign assistance (including core and external budget) has averaged 40 percent of GDP for the past five years. There are two major challenges to fiscal policy in deciding how to make effective use of foreign assistance for growth and devel opment,. One is to align distribution of finan cial resources (including domestic revenues and foreign assistance) with ANDS prioritiza tion. The other is to improve absorption capac ity; to improve both the quantity and the qual ity of projects and project execution. Afghanistan National Development Strategy (ANDS) 40 Table 4.1. Macroeconomic projections 1385 2006/07 1386 2007/08 1387 2008/09 1388 2009/10 1389 2010/11 1390 2011/12 1391 2012/13 Real sector (annual percent change) Real GDP (excluding opium) 6.1 13.5 9.0 9.0 8.0 7.7 7.0 Nominal GDP (excluding opium) 9.5 24.1 19.8 16.4 14.2 13.2 12.1 Consumer Price Index 5.1 9.8 10.2 7.2 6.0 5.4 5.0 Fiscal sector (percent of GDP) Total expenditures (A) 21.55 22.6 23.0 24.2 23.5 22.6 22.0 Revenues/Financing (B) (operat ing and development) 20.1 21.2 21.5 22.5 22.6 21.7 21.4 Budget balance (B minus A) -1.4 -1.4 -1.5 -1.8 -0.9 -0.9 -0.6 Fiscal sustainability indicator (domestic revenues as % of oper ating expenditures) 66.3 67.0 69.9 72.0 82.9 91.4 100.1 Monetary sector (percent of GDP) Net foreign assets 30.1 26.7 24.0 19.3 16.5 13.9 12.4 Net domestic sales -14.1 -12.0 -9.2 -5.5 -3.4 -1.5 -0.6 External sector (percent of GDP) Merchandise trade balance -70.1 -67.6 -64.5 -52.7 -46.3 -39.0 -33.4 Current account balance, includ ing official transfers -6.3 -1.4 -0.1 -0.7 -2.6 -3.6 -4.5 Foreign direct investment 3.4 3.3 3.3 3.4 3.9 4.0 4.1 Memorandum items (percent of GDP) External budget (= grants) 55.4 54.5 51.6 38.0 30.8 23.6 18.0 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 of 12 percent over the past few years appear to have had helped reduce poverty and generate employment at the margins, which are un doubtedly hard to measure (see Poverty Profile chapter). Afghanistan’s poverty and unem ployment have the following key characteris tics: High vulnerability: A significant number of Afghans are concentrated around the poverty line, especially among the rural population. The concentration around the poverty line im plies that even small shocks could further in crease the national poverty rate. Seasonality: Poverty has strong seasonality and uneven dispersion across the country. Working poor: Low salaries subject many un employed 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. High poverty and unemployment rates, and their specific characteristics, suggest that there is a need to sustain high growth rates in the medium-term (sustainability) and that the result of high growth will be to reduce poverty and generate employment (quality).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 is cru cial. Quality growth rates: High growth should lead directly to poverty reduction and em ployment generation. For this reason, identify ing the most promising potential sources of growth is important. For example, while agri culture accounts for just 27 percent of GDP (ex cluding opium), it employs roughly three quar ters of the labor force. Since a sudden shift of Macroeconomic Framework 41 the labor force from agriculture to other sec tors is unrealistic, increasing agricultural pro ductivity overall is a far more promising aprach to improving sustainable growth rates. State of the economy and constraints to growth Economic growth has been high but volatile. Between 1381 and 1385, (2002-2006) the annual average growth rate was 11.7 percent, the high est in the region. Sector breakdowns show con siderable variety across the economy however, with agriculture, accounting for almost one third of the GNP, experiencing the greatest volatility. (Figure 4.1). (Cereal production, which accounts for approximately 75 percent of agricultural output, is particularly susceptible to weather conditions.) In the industrial sector, manufacturing and construction, heavily sup ported by reconstruction activities and foreign assistance, contributed equally to growth. Within manufacturing, “food, beverage and tobacco” dominated, followed by a few other significant categories. Services, transportation, government services, and wholesale and retail trading also contributed significantly to eco nomic growth. Figure 4.2. Contribution to growth rates One of the most significant developmental achievements has been the maintenance of ma croeconomic stability. Successful currency re form in Jaddi 1381 (January 2003), in concert with a prudent fiscal and monetary policy (e.g. no-overdraft policy to finance the budget defi cits) has contributed to macroeconomic stabil ity as reflected in the deceleration of inflation rates and stable nominal exchange rates (fig ure 4.3).25 25 SY1386 (Equivalent of SY 2007/08) inflation rates are likely to increase to around 10 percent due to higher fuel prices and subse quent increases in basic commodity prices. Stable nominal ex change rates (in combination with higher than US inflation) mean appreciation of real exchange rates. This leads to the issue of “Dutch Disease” and competitiveness. Afghanistan National Development Strategy (ANDS) 42 Figure 4.3. Macroeconomic stability 0 5 10 15 20 25 30 SY 1381 S Y1382 SY 1383 SY 1384 S Y1385 SY 1386 40 42 44 46 48 50 52 54 56 58 60 In flat ion Rat es E xchange Rates Inflation rates ( LHS) Exchange rates ( RHS ) Due to increasing challenges posed by insecu rity in some areas of the country, opium has become Afghanistan’s leading economic activ ity.26 Opium production increased in 1385 1386 (2007) by 34 percent, to 8,200 tons. The impact of the opium economy on the larger economy, polity, and society is profound, and includes some short-term economic benefits for the rural population. However, these are vastly outweighed by its adverse effects on security, political normalization, and state building, all key to high, sustainable and quality growth. During the past five years foreign assistance has averaged about 40 percent of GDP, of which roughly one-third was channeled through the core budget while the remainder was spent outside the government budget sys tem (Figure 4.4).27 One of the Government’s key macroeconomic28 policy objectives will be to use fiscal and monetary policy to mitigate 26 Data is taken from “Afghanistan: Opium Survey 2007 (1386)” (UNODC, October 2007 Mizan 1386)). 27 There is a possibility of significant underreport ing/underestimation of external assistance (especially on security) in recent few years. 28 This is cited directly from “Responding to Afghanistan’s De velopment Challenge: An Assessment of Experience During 2002-2007 and Issues and Priorities for the Future” (William Byrd, World Bank South Asia PREM Working Paper Series, Report No. SASPR-11, October 2007 (Mizan 1386)). the most detrimental effects of foreign assis tance and ward off any potential “Dutch Dis ease” effects. Macroeconomic Framework 43 Figure 4.4. Size of foreign assistance Afghanistan faces daunting challenges to its goal of achieving high, sustainable and quality growth led by the private sector. In recent years, a disturbing equilibrium has been evolv ing (figure 4.5), driven by an increase in infor mal activities that negatively impact on the rule of law, thereby weakening governance and the effectiveness of state institutions. This suggests that certain key aspects of state building are going off-track, and that overall progress is be ing threatened by the following: emerging political patterns in which conflict generated political groupings play an in creasingly important role; increasing linkages among key Government figures and the drug industry; continued insecurity in some parts of the coun try; modalities by which most aid is delivered cou pled with disappointing results thus far despite large aid inflows. DO YOU MEAN “the disappointing results of current meth ods of aid distrubution, despite large aid inflow from donors” Figure 4.5. The Evolving Informal Equilibrium Afghanistan National Development Strategy (ANDS) 44 GROWTH PROJECTION AND STRATEGY The average annual economic growth rate is projected to be 8.1 percent for 1387-1391 (2008 2012). In subsequent years, growth rates are projected to gradually decelerate from 9.0 per cent in 1387 (2008/09) to 7.0 percent in 1391 (2011/12) (Figure 4.5). This growth scenario envisages the following developments: Agriculture: Agriculture is expected to grow 5 percent per year, the same rate as the aver age growth rates for 1382-86 (2003-2007). Industry: Industry is expected to grow 9 per cent per year, supported by high invest ment (average investment is 34 percent of GDP). The main source of investment is expected to shift from public investment to private investment,) with domestic invest ment initially leading foreign direct in vestment. Services: The services sector is also expected to grow by 9 percent. Although still high in absolute terms, this is lower than the pre vious years’ average (14.5 percent). Figure 4.6. Medium term growth projections A key assumption underlying this ambitious growth projection is the role to be played by the private sector over the projection period. This assumption is based on the understanding that strong private sector development will create new opportunities for employment and thereby help reduce poverty. At the same time, it is essential to short circuit the existing in formal equilibrium using the following strate gies: Strengthening governance: Fighting corrup tion will require credible demonstrations by high-level Government officials of a strong commitment to and clarification of institutional arrangements; public administration reform should include: merit-based selection and ap pointment of civil servants; improved govern ance at the sub-national level; further strength ening of public financial management and of the external and public accountability mecha nism (e.g. external audit, National Assembly review). Responding to the challenge of the opium economy: Recent experience has demon strated that the key to success is to focus on those parts of the drug industry that pose the greatest danger to the nation and its development agenda: large drug traf fickers and their sponsors. Some strategies could include: o Focus eradication efforts on wealthier opium poppy cultivating areas and ar eas that are new to poppy cultivation; Macroeconomic Framework 45 o Increase interdiction efforts against medium and large drug traffickers and their sponsors; o Actors involved in 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 sen sible rural development, instead of short-term alternative livelihoods pro grams; o Counter-narcotics efforts should be mainstreamed into the larger devel opment program. Improving macroeconomic policy manage ment and aid effectiveness: It is essential that macroeconomic policy formulation be transparent and avoid short-term ad-hoc measures. Some strategies could include: o Strengthening coordination among re levant line ministries. It is important that line ministries share the same view regarding the direction of macroeco nomic 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 sustain ability together with prudent monetary policy will continue to be important. In order to break the evolving informal equilib rium, we must also ameliorate specific private sector investment constraints. The results of the World Bank’s investment climate assess ment in 1384/85 (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 con straints to private investment. As an increase in private investment is key to achieving high, sustainable and quality growth rates, the fol lowing specific strategies are suggested:29 29 See the Government’s “Policy for Private Sector Growth and Development”, presented at the Enabling Environment Confer ence, June 2007. Electricity: Engage the private sector in expe diting 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 genera tion and distribution by the private sec tor; o Accelerating the execution of priority power generation initiatives; o Improving the distribution system. Access to land: Implement measures to facili tate 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 simpli fied procedures for transfer of pri vately owned land; o Developing better legal frameworks for land registration and land adjudica tion. Access to finance: Strengthen the financial sec tor to increase access to credit and financial services, paying special attention to allevi ating capacity constraints. Specific strate gies include: o Enacting an appropriate legal frame work; o Building capacity in the financial sec tor; 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 above mentioned issues, in the short-term the Gov ernment could work to “scale up” and maxi mize 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 both red tape and corruption, at least on an “enclave” basis. Opportunities and Risks: There exist several potential exogenous shocks which could seri Afghanistan National Development Strategy (ANDS) 46 ously affect growth projections. Shocks such as drought pose a serious threat to an economy largely dependent on agriculture. Insecurity can harm private sector development, invest ment, employment creation, and reconstruction efforts, which could have a negative impact on overall growth. Finally, global economic con ditions pose serious risks for the Afghan econ omy. A precipitous rise in oil prices would hamper economic growth especially via the private sector. 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 in clude: The political situation: Presidential and par liamentary elections are scheduled to be held in 1388-1389 (2009-2010). Successful and peaceful elections provide assurance of political stability to the private sector and international community; Insecurity: Security costs can be as high as 15 percent of total revenues. Further insecu rity would add additional costs to compa nies’ operations and inhibit private invest ment; Weather: Agricultural production is directly affected by weather conditions. With about 70 percent of the total labor force engaged in agriculture, variations in production have a significant impact on poverty and employment. FISCAL POLICY Fiscal policy is a key instrument of macroeco nomic stability, and the budget offers an im portant tool to implement the ANDS and pri oritize public sector activities. Prudent fiscal policy and effective budget planning and exe cution 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 popula tion’s standard of living, especially for the poor. Despite the increase in expenditures in absolute terms, the Government remains com mitted to sound management of expenses and increased revenue mobilization, as well as en suring fiscal sustainability. Fiscal prudence re mains the underlying principle, which ensures macroeconomic stability and provides the Government some flexibility to respond to ex ternal shocks. The Government continues its efforts to in crease revenues by improving revenue admini stration and enforcement and broadening the tax base. This will be essential for achieving fiscal sustainability, delivering priority devel opment expenditures and a reduction in aid dependency. Without domestic revenue mobi lization Afghanistan will remain heavily de pendent on external support over the long term. The domestic revenue to GDP ratio is expected to reach 8.2 percent in 1387 (2008/09), which substantially exceeds the revenue target in the Afghanistan Compact for 2010.30 Al though domestic revenue is expected to reach 10.7 percent of GDP in 1391 (2012/13) (Figure 4.6), Afghanistan’s revenue-to-GDP ratio still is among the lowest in the world, requiring sus tained commitment to pursue revenue reforms. In the medium-term, a broad-based consump tion 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 enact ment of the amendments to the income tax law by National Assembly. Progress in domestic revenue mobilization in coming years will en able the Government to be less dependent on foreign assistance. New tax measures will fo cus equally on improving the revenue intake, while simultaneously reducing the cost of do ing business, improving the country’s invest ment environment and enhancing competitive ness. Consistent with the growth strategy of the Government, the prioritization framework of budgetary allocations is expected to allocate significant resources to productive sectors such as infrastructure, health, education, agriculture and rural development, and rule of law and governance. Cumulative total public expendi tures during 1387-91 (2009/13) in roads, en ergy, water and irrigation, airports, and com munications technologies alone are expected to reach about $11 billion (or about one-third of 30 In the Afghanistan Compact, revenues are projected to exceed 8 percent of GDP in 1389. Macroeconomic Framework 47 total expenditures).31 Similarly, health and education sectors are expected to receive about 17 to 18 percent of total resources, considerably higher than current allocations. Other priority areas include agriculture, rural development, rule of law and governance, where the Gov ernment will invest significant resources. 31 Figures in the macroeconomic framework (see tables) are based on projected execution rates of the core development budget. As a result, the original total budgeted figures for the core development budget can be higher than those in the macroeco nomic framework of the ANDS. Afghanistan National Development Strategy (ANDS) 48 Figure 4.7. Domestic revenues and operating expenditures as a percent of GDP The Government is taking measures to improve the overall absorption capacity and execution of projects in these sectors through more effec tive public finance management and efficient project management methods. Key public fi nance management reforms include introduc tion of the medium term budget framework (MTBF), program and provincial budgeting. Other Government reforms are targeting pro ject preparation and management, as well as procurement procedures. The overall devel opment budget execution rate has been steadily increasing. The core development expenditure rate for 1385 (2006/07) increased to 54 percent from 31 percent in 1383 (2004/05). The public finance management reforms and prioritization process are expected to improve the overall fiscal situation and the quality of public expen ditures. Significantly higher execution rates and improved quality of public expenditures in key sectors over the medium term in turn will improve the growth and development process in the country. Government expenditure policy will focus on creating an enabling environment for the pri vate sector; enhancing production capacity and productivity; and improving the quality of life of the population. The Government’s budget allocation prioritization is expected to improve physical infrastructure, enhance human capital and build institutions necessary for private sec tor led growth and increased employment op portunities. Core budget expenditures will remain constant at about 25 percent of GDP, although the allo cation of various expenditures will change over time to align with the Government’s develop ment priorities. Throughout the projection pe riod, while the share of operating expenditures decreases, that of development expenditures increases. A considerable portion of expendi ture goes to security, counter-narcotics, roads and social expenditures (i.e. education and health). Macroeconomic Framework 49 Figure 4.8. Domestic revenues versus operating expenditures Fiscal sustainability is essential to ensure mac roeconomic stability. The operating budget balance (excluding grants) is projected to im prove from a deficit of 4.4 percent of GDP in 1386 (2007/08)to a balanced budget in 1391 (2012/13) (Figure 4.7). This requires that the donor grants to the operating budget (e.g. Af ghanistan Reconstruction Trust Fund) will free up domestic revenues for key development expenditures after 1391 (2012/13). Two key fiscal policy challenges are on the ho rizon: the integration of the external budget into the core budget, and improvement of the absorption capacity of line ministries. Cur rently, more than two thirds of foreign assis tance does not go through the Government’s treasury account, and thus information regard ing these expenditures is often partial and dif ficult to obtain. This impedes the Government in its attempts to allocate scarce financial re sources in line with its priorities and develop ment 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 de layed investments necessary for development. Improving the absorption capacity of the Gov ernment, therefore, will continue to be impor tant. 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 below market terms as required under Afghanistan’s current agreements with various international financial institutions and the Paris Club group of credi tors. Debt sustainability in future periods is an important goal for the Government to achieve and will continue to be a guiding principle go verning the country’s use of debt in the coming years. MONETARY POLICY Consistent with Da Afghanistan Bank (DAB)’s medium to long-term strategic objectives in conducting monetary policy, it will remain vi gilant 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.32 Nominal exchange rates are expected to remain constant at around Afs 50 against the US dollar. 32 Note, the recent rapid increase in global prices could poten tially create a challenge for the Government and DAB to main tain core inflation between 2.5 and 4 percent in the short term. Afghanistan National Development Strategy (ANDS) 50 Stable exchange rates will help contain infla tionary pressure from imported products as well as provide predictability to the private sector. Nevertheless, stable nominal exchange rates imply the appreciation of the real ex change rates. In the short-term, the impact on the appreciation of the real exchange rates would not significantly hurt competitiveness, as other costs associated with security and elec tricity are likely to exceed any negative impacts on the exchange rate appreciation. However, the Government will keep it’s a close eye on the impact of real exchange rate appreciation for competitiveness in the medium-term. Access to finance is one of the severest con straints on private sector development. High interest rates, caused by high inflation rates and a high risk premium, 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 pre mium. 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 ex pand the menu of instruments that have not yet been fully utilized in directing monetary pol icy. The Central Bank currently relies on for eign exchange auctions as the dominant tool to maintain price stability and reduce exchange rate volatility. The use of other tools of mone tary 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 inter est 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 ma turity 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 capi tal market and a strategic repositioning of monetary policy tools through gradual transi tioning from foreign exchange auctions to util izing other tools of the monetary policy, DAB’s room for maneuverability will expand. Banking system Through its regulatory mandate, DAB is com mitted to help banking institutions manage the risks involved in their operations. Pursuant to Paragraph 2 of Article 2, and other articles sti pulated 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 ac countability in the entirety of their financial transactions, in order to avoid bank failures. DAB will strive to encourage financial institu tions to actively take part in economic devel opments by granting short-, medium-and long term credits to small and medium enterprises (SMEs), owners of factories and construction companies, and to initiate mortgage lending to commercial and residential customers. Con sumer lending should also become available to the citizens of this country. To do so, DAB needs to remove any existing obstacles and un necessary 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 designed to 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 indus tries. Large-scale exploitation of copper, natural gas, petroleum and precious minerals will help in the medium and long term, although in vestments in this sector are relatively lumpy. Macroeconomic Framework 51 The Current Account Balance, excluding the re export of goods, is likely to decline over the projected phase. This is largely due to an an ticipated decline in the imports-to-GDP ratio, particularly for manufacture of consumer goods. Local products and services are ex pected to become a more significant factor in Afghanistan’s economy. FINANCING THE ANDS The Government has determined sectoral budget ceilings that reflect priorities estab lished in the ANDS (see Table 4.9). This re flects the Ministry of Finance’s adoption of a system of program-based budgeting that is de signed to achieve the country’s development needs. It is based on levels of domestic and donor financing in previous years and projec tions for future revenues. This process is an integral part of the Govern ment’s Medium-Term Fiscal Framework (MTFF) and the preparation of the budget. From 1387 (2008/09) onthe MTFF and the budget will be based on the prioritization es tablished 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 prior ity. Over the lifetime of the ANDS, security spending is expected to total $14.2 billion. Funding for this sector is expected to come primarily through international assistance. The Government estimates that as the threat de clines, the need for security assistance will de crease. However, given the uncertain nature of the instability facing Afghanistan, the Govern ment anticipates the possibility of potentially significant revisions to financing of the security sector. Table 4.9. Overall Financing Envelope for the ANDS 1387-1391 (2008-2013) 1387 2008/09 US$m 1388 2009/10 US$m 1389 2010/11 US$m 1390 2011/12 US$m 1391 2012/13 US$m Total US$m Core + External Budget Funding Domestic Revenue 887 1,104 1,351 1,611 1,911 6,864 Total Assistance from Donors* 6,513 4,960 4,814 4,398 3,908 24,593 Total Funding* 7,400 6,064 6,165 6,009 5,819 31,457 Budgeted Core + External Expenditure Security 3219 2585 2679 2790 2906 14179 Infrastructure 1781 3093 3681 4180 4451 17185 Agriculture and Rural Development 829 921 916 909 912 4486 Education and Culture 742 893 980 1077 1181 4872 Good Governance and Rule of Law 374 558 640 685 728 2985 Health & Nutrition 325 465 530 563 595 2478 Economic Governance & PSD 237 215 230 244 260 1186 Social Protection 192 359 394 421 449 1815 Others (Sub Codes) 205 198 185 170 157 915 Total Expenditure 7,903 9,286 10,236 11,038 11,637 50,10033 * Based on discussions with donors and the 1386 (2007) financial review 33 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 macro economic framework and the ANDS expenditure ceilings will be updated to reflect the actual level of donor assistance. Afghanistan National Development Strategy (ANDS)52 In the short term, the Government will focus its public expenditure programs on investments in infrastructure, agriculture and rural develop ment 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 fo cus 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 envi ronment 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 must build a strong economic foundation that will support long term and broad-based economic growth with the private sector as its engine. With the sound macroeconomic policies under taken over 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 coming years. This will require an environ ment that actively encourages social and eco nomic development, and the continuance of sound and stable macroeconomic policies that will enable the private sector to establish itself as a vigorous engine of growth and employ ment creation. A key strategic objective of the ANDS is to es tablish 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 produc tive ways. A critical element in achieving this objective will be to substantially increase in vestment in capacity development, thereby cre ating new employment opportunities for an emerging skilled workforce, leading to ex panded employment opportunities and higher incomes. Average economic growth is projected at an 8.1 percent rate for 1387-1391 (2009-2013). A key assumption underlying this ambitious goal is that an increasing share of total investment will come from the private sector. To reach these goals, the Government will continue its policy of strong macroeconomic management charac terized by fiscal sustainability, prudent mone tary policies, and avoidance of short-term ad hoc measures. The ability to implement the projects and pro grams 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, which focuses on achieving the country’s de velopment needs. Security will remain the Government’s highest priority, while public investment in energy, water and irrigation, transportation infrastructure, agriculture, agro based industry, and rural development—all of them crucial to the development of the private sector and long term and sustainable employ ment growth—will also remain high priorities.. In the coming years the Government will also devote progressively more resources to educa tion, governance, health, and social protection. Afghanistan National Development Strategy (ANDS) 54 CHAPTER 5 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 an integrated and sustainable national security infrastructure and law and order policy. The National Security Policy will be implemented through the Security Sector Reform (SSR) pro gram. This will strengthen and improve coor dination 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 “Afghaniza tion” of the country’s security activities. How ever, Afghanistan still faces a number of seri ous challenges before it can assume full re sponsibility for its own security. Terrorism, instability and weak governance capacity are preventing the Government from establishing effective control in some areas of the country, particularly in the south andsoutheast. The large-scale production of narcotics continues to provide funds to these groups. Unexploded ordinance remain a significant threat, with some 5,000 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 protect the national interest the Government plans to strengthen military, economic and po litical ties with its regional and international partners. The security objectives are aimed at protecting the country’s independence, estab lishing a democratic and economically stable society, free of corruption. Implementing de velopment policies outlined in the ANDS is possible only if there is peace and security in the country; security and sustainable develop ment go hand in hand. NATO is currently the major force through which the international community provies security assistance to Afghanistan, by means of the International Security Assistance Force (ISAF) working in cooperation with the Afghan Government. The Government aims to secure stronger commitments from NATO while building the capacity of Afghanistan’s national armed and other security forces. The Govern ment is intent on building administrative ca pacity, investing in human resources develop ment and justice, and spurring private sector development to help improve Afghanistan’s internal situation. An educated and prosper ous society is less likely to be influenced by concepts spread by extremist elements. A strong National Security Structure will facili tate development of Afghanistan’s economy and social fabric, thereby enhancing 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 secu rity forces and their international partners will focus on fighting terrorists and illegally armed groups and on neutralizing armed elements operating along the borders. Given that many of these groups receive support from foreign sources, both regional cooperation and diplo Security 55 matic initiatives are vital. To defeat terrorism, new strategies attuned to the political objec tives 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 trained to defeat terrorism and to render assistance to victims of war and avoid civilian casualties. The Government aims at strengthening its con trol of law enforcement to effectively overcome internal security problems. Combating criminal activity and narcotics production are crucial components of the security strategy. Pick upCountering a terrorist-dominated Tali ban and illegally armed groups is an extremely complex form of warfare. In large part it is a competition for the support of the population, and certainly theactive support of the Afghan people is vital to success. Winning this battle requires a firm political will and substantial persistence by the Government and the Afghan people, and unwavering long term commit ment 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 in crease only if we can assure the security of the people and provide them with the basic neces sities of life: food, water, shelter, healthcare and the means to make a living. The use of exces sive force in operations should be avoided, tar gets should be accurately identified, and collat eral damage—especially civilian casualties— should be avoided as much as possible. Narcotics Poppy cultivation and the production of nar cotics pose a serious challenge to Afghanistan’s security. The high level corruption that enables the narcotics industry to thrive endangers for eign assistance to development. Huge reve nues from opium and production of narcotics have drawn in terrorist elements, organized crime groups and extremists. Revenues from opium and drug trafficking represent a signifi cant source of funding to remnants of illegal armed groups. The Government’s strategy co ordinates international efforts with Govern ment plans and addresses issues such as the development of economic infrastructure, re duction of demand, poppy eradication, coun tering drug trafficking and the establishment of alternative livelihood programs. As the police are reformed and the judicial system strength ened, a major effort will be made to reduce cor ruption, and crack down on officials who are involved in cultivation or interfere with eradi cation 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 obstructs Government control, hinders development of local democratic institutions and poses a serious threat to national unity. These obstacles to the rule of law also 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. Until the Government provides adequate security, with a responsible police presence in every vil lage and district, people will feel the need to keep guns for self-protection. People are cur rently required to have a license to carry arms; this law needs to be enforced effectively. The Disbandment of Illegal Armed Groups (DIAG) and the continuation of the Disarma ment, Disintegration and Rehabilitation pro gram (DDR), is the first step in disarming ille gal armed groups. The existence of arms, am munition caches and mines in different parts of Afghanistan also poses a threat, because oppo nents of the Government can use them for ter rorist operations. The Government,in coopera tion with international organizations,is work ing to win 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 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 Afghanistan National Development Strategy (ANDS) 56 mines. Statistics have shown that about 5,000 Afghans have been killed or wounded in mine explosions since 1380 (2001). Unidentified arms and ammunition caches and mines in dif ferent 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 estab lishes a mechanism to regulate relations be tween ministries and departments to ensure effective coordination. The policy encompasses the functions of other government depart ments, including the legislative, judiciary and law enforcement. The reforms establish respon sibilities and coordination in the security sector for implementation of programs and give guidelines for planning, prioritization, assess ment of resources, and operations. Sustained financial support is needed to avoid compro mising either development or security objec tives. The OECD DAC Implementation Framework for Security Sector Reform pro vides a useful framework for increasing na tional ownership and laying out the core ele ments of a ‘right-financing’ framework.34 The Government is committed to addressing the following strategic benchmarks to achieve the security sector strategic vision: The Afghan National Army: (i) hrough 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 Pro vincial Reconstruction Teams (PRTs) will promote security and stability in all regions of Afghanistan, in part by strengthening Afghan capabilities. (ii) By Jaddi 1389 (end 2010), the Government will establish a pro fessional, ethnically balanced Afghan Na tional Army (ANA) that is accountable, or ganized, trained and well equipped to meet the security needs of the country. It will be 34 See http://www.oecd.org/dataoecd/43/25/38406485.pdf increasingly funded from Government revenue, commensurate with the nation’s economic capacity. Support will continue to be provided to expand the ANA toward a ceiling of 80,000 active personnel with additional 6,000 personnel, including train ers. The Afghan National Police: By Jaddi 1389 (end-2010), a fully constituted, profes sional, 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 be dis banded by Hamal 1390 (20 March 2011) in all provinces. Approximately 2,000 such groups have been identified. Nearly 300 are now fully or partially disbanded and 1200 more have pledged 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%; by end-2010. all unsafe, unserviceable, and surplus ammunition will be destroyed. The goal is to clear 90% of all known mine/ERW contaminated ar eas by 1391 (2012). A further goal is to clear all emplaced antipersonnel mines by 1391 (1 March 2013), in compliance with the Ot tawa Convention. A capacity to remove mines and ERWs beyond the 2013 MAPA transition deadline probably will be needed. Counter-Narcotics: By 1392 (2013), the area under poppy cultivation will be reduced by half compared to 1386 (2007) levels. Expected outcomes for the security sector are: An effectively coordinated security sector, in which decisions and plans are made and implemented in timely fashion and exter nal and internal threats are deterred, con tained or eliminated; ANA and ANP are operationally capable of performing those missions and tasks as signed; Security 57 ANP and ABP expenditures are fiscally sus tainable; Citizens experience a greater degree of justice with the help of Police and the Army; Narcotics industry is reduced in line with counter-narcotics national strategy; Corruption in the ANA, ANP and among other government officials is reduced; Reduced levels of deaths and casualties from UXOs; a reduction inthe number of affected communities; increased safety precautions; Enhanced public trust in Government ability to deliver justice and security as illegally armed groups are disbanded and reinte grated; and Eventual eradication of poppy production and crack down on drug trafficking. SECURITY INSTITUTIONS The security sector includes multiple minis tries, departments and institutions that are col lectively responsible for enforcing security and laws to protect the Government and the Af ghan people. These include, among others: National Security Council (NSC), Office of the National Security Council (ONSC), the Policy Action Group (PAG), Ministries, National Di rectorate of Security (NDS), National Army and Air Forces, Afghan National Police (ANP), Presidential Guard, Parliamentary Commis sions on Security and Monitoring, Public Audit and Evaluation Offices, Ministry of Justice, ju dicial institutions, Prosecution Departments and the Human Rights Commission. To im prove the professional effectiveness of all these institutions, their duties and responsibilities need to be coordinated. This will guarantee consistent regulations, establish priorities in policy making, help in the forecasting financial expenses and ensure correct allocation of funds. National Security Council The National Security Council is the highest institution for identifying and addressing na tional security issues. The Council, led by the President, is responsible for developing strate gies and policiesanddetermining priorities, and is responsible for the oversight and coordina tion 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 mecha nism to address the deteriorating security con ditions 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 main taining peace and security. The Minister of Defense is a civilian; the ministry is non political and non-partisan. MoD stands ready to provide support to the Ministry of Internal Affairs (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 account able, with a strong administration and internal discipline. The MoD is developing an ethni cally balanced, non-political army with a single military doctrine and operational capabilities. Educating, training and equipping a profes sional army with strong operational capability to fight terrorism and armed groups is a top priority. The MoD must ensure that all mili tary units under its command observe and re spect Islamic religion and Afghan values. MoD’s primary responsibilities include: National defense against foreign military ag gression; Fight illegally armed groups and terrorism, and help establish the rule of law; Deter wars and ensure stability to protect na tional interests; Play an active part in solving crises and con trolling emergency situations; Render assistance to civilian officials in secu rity crises, natural disasters and emergency situations; Protect and expand Afghanistan’s national in terests; and Support the National and Border Police to curb organized crime. Afghanistan National Development Strategy (ANDS) 58 To achieve these goals, the MoD has estab lished the ANA. The National Army (ANA) The National Army is responsible for protect ing Afghanistan’s territorial integrity, uphold ing 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 in ternal security. It also plays a role in boosting regional security through 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. Since a presidential decree was issued to estab lish a National Army in 1381 OR 1382 (2003), the Ministry of Defense and the Afghan Na tional Army have achieved considerable pro gress. The ministry is responsible for maintain ing professional cadres to design appropriate policies, manage the ANA and defense institu tions, 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 sover eignty, 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 Na tional Police, Anti-Disasters Department, Af ghan Red Crescent Society and other civilian charity organizations to tackle emergency situ ations requiring disaster response and humani tarian 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, fighting criminal activity, and pro tecting the country’s international borders High priority activities include: Cracking down on organized and international crimes, including drugs and human traf ficking; fighting terrorism and other na tional security threats in cooperation with MoD, ANA, ISAF and Coalition forces; Establishing a border police force to control cross-border movements and assist with collection of customs revenues in coopera tion with MoD, ANA and Ministry of Fi nance (MoF); Enforcing justice by detecting crimes, carrying out investigations, and promptly handing over suspects to the judicial authorities in accordance with the law; Providing witness protection and support to victims of crime and establishing detention centers; Implementation of the DIAG program: Collect unregistered arms in cooperation with other security departments and implement and enforce new regulations regarding pri vate security companies. The National Police (ANP) The national police are currently undergoing reforms aimed at enhancing efficiency by im proving police training and education, upgrad ing staff and equipping the department ade quately. The current MoI Tashkeel allows for 82,180 uniformed personnel in the ANP. With extensive help from donors, police capacity has been increasing, leading to expanded govern ment control in the provinces. However, there is a need to further accelerate recruitment, edu cation and training programs to ensure consis tent professional performance and improve the reputation of the ANP. Quality police per formance and accountability are key to stabili zating the society and winning popular sup port for the Government. The Border Police (BP) are responsible for bor der control, in cooperation with customs offi cials. The BP establish check points to monitor crossings, particularly in areas with suspected terrorist activity, and are responsible for pre venting human trafficking and drug smug gling. The Counter-Narcotics Police of Af ghanistan (CNPA) has been established specifi cally to combat drug related crimes. Significant steps have been taken since 1379 OR1380 (2001) to revamp and train the Afghan National Army and the Afghan National Po lice. Police capacities have been increasing, with extensive help from the international community. Large militias have been inte Security 59 grated into the Ministry of Defense, with the majority of their members demobilized. A multi-sector donor support scheme has been established by which individual donors are allocated responsibility for overseeing support for each of the key elements of the reform, in cluding disarmament, demobilization, and re integration of ex-combatants; military reform; police reform; judicial reform; and counter narcotics. National Directorate of Security (NDS) The National Directorate of Security is respon sible 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 the effectiveness of operations carried out by na tional security agencies. NDS also shares in formation and cooperates with international security organizations stationed in Afghani stan. NDS is a non-political institution 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 na tional 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 na tional development strategies ; Support development and encourage invest ment in Afghanistan and promote trade; Promote regional peace and prosperity, adopt active diplomacy to achieve regional stabil ity and support economic programs that help in securing national interests; Support and promote bilateral and multilateral economic initiatives with neighbors to se cure national interests. Ministry of Counter Narcotics (MCN) The Ministry of Counter Narcotics is responsi ble for the implementation of the National Drug Control Strategy (NDCS). The MCN’s policies are designed to address: (i) develop ment of projects to provide alternative liveli hood opportunities in districts where poppy is grown; (ii) programs to reduce demand for drugs including addiction treatment facilities in affected provinces; (iii) development of effec tive 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 force. 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 contin ued 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 sec tor 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 sus tainable security sector based on realistic re source projections. Afghanistan has no wish to be a burden on the international community for longer than is nec essary. In line with a three-phase effort to de velop 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 acceler ated development in the number and capability of Afghan security forces that are adequately manned, equipped and trained to defeat all internal and external threats, is well advanced. The Second Phase is to transition from a coali tion-led to an Afghan-led and NATO supported security operation. Although much of the security burden remains with our coali tion allies, there has been progress in combined Afghanistan National Development Strategy (ANDS) 60 Afghan/Coalition operations, and in inde pendent ANA security operations. Phase Three will encompass efforts to further im prove professionalism, discipline and opera tional cohesiveness,The ANA will conduct in dependent operations and lead the fight while ISAF moves to a supporting role. At the end of this final phase, true 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 ju dicial administration is key to achieving dura ble stability in the country. The Government is committed to strengthening the justice system, including the Supreme Court, Attorney Gen eral´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, and coordinating law enforcement and justice sector development programs to estab lish a prosperous, stable, and just society based on democratic values and international stan dards. An effective legal administration that ensures the rule of law is essential in order 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 bor ders six countries and has economic and politi cal interests with all of them. The Government seeks to cooperate with its neighbors by streng thening regional security linkages with intelli gence sharing to tackle cross-border infiltra tion, terrorism and narcotics trafficking. The Government will make every effort to en sure 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, es tablish 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 the 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) con certed diplomatic pressure to eradicate 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 to in recent regional economic cooperation conferences; and (iv) a further strengthening of the Tri-partite Commission to open a dialogue with Pakistan on substantive issues. CONCLUSION The Government is fully committed to: (i) suc cessfully 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) in creasing 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 Af ghanistan. 61 Security Table 5.1. Integration of the Cross Cutting Issues into the Security Sector Anti-Corruption Gender Equality Counter-Narcotics Environment Regional Co-operation Capacity Building Programs within the Sector Strategy emphasize ac countability and transpar ency. By Jaddi 1392 (end-2013), corruption in the govern ment at all levels especially in security and, customs will be significantly re duced. A monitoring mechanism to track corruption at high places, including the secu rity sector, will be put in place by Jaddi 1387 (end 2008). By Jaddi 1387 (end-2008), the Government will estab lish and implement a pub lic complaints mechanism. This will include com plaints against the security forces or the security sec tor. Targeting corruption is vital for security reasons: Narcotics traffickers thrive in insecurity and absence of governance; corruption at the highest levels facili tate for narcotics trade that spur anti- government elements. Increase the number of quali fied female staff throughout the security sector. Promote gender mainstream ing and gender-balance throughout the security sector. Increase awareness of gender and rights, raising women’s decision-making role and en suring that women have equal employment opportunities within the Sector. Recognize in all policies and programs that men and wom en have equal rights and re sponsibilities through the se curity sector. Ensure that monitoring me chanisms are in place to realize goals for gender equality. This calls for setting indicators to monitor improvements. Ensure reduction of violence and harassment against wom en in the workplace, by im plementing specific training, units/programs (e.g. referral centers) and effective com plaint and redress mecha nisms. The international forces in Afghanistan must cooperate with the Afghan National Ar my (ANA) to facilitate for Af ghan counter-narcotics opera tions. Afghan security forces provide force protection and law en forcement for eradication and interdiction operations Eradication of poppy crops needs to be enforced, in par ticular where those who bene fit are using the profits for anti government activities. There is a need to enhance border control to crack down on drug trafficking. By Jaddi 1389 (end-2010), the Government will increase the number of arrests and prose cutions of traffickers and cor rupt officials with the help of the security sector. Increased security is needed to guarantee alternative liveli hoods. Capacity for eradica tion must similarly increase. Improved secu rity will ensure sustainable de velopment with minimum nega tive impact to environment. Implement DIAG and mine/UXO clearance pro grams to enhance security that would allow for extensive land to be taken back into use for farm ing and devel opment. Stability throughout the country is needed to pre vent natural re sources from being degraded. Establish and develop good international rela tionships based on mu tual respect, non interference. Enhance Afghanistan’s active position as a positive and effective member of the UN. Enhance cooperative border management with Afghanistan’s neighbors to crack down on illegal border crossing and trafficking. Regional cooperation to improve security will lead to overall stability in the region. Multilateral and bilat eral agreements reached with the countries of the region and further ef forts to promote re gional cooperation would contribute to the stability in the region and enhance the pace of economic development in Afghanistan. Reforming defense and the security sector is a priority of the Afghan Government to strengthen Afghan capabilities and transform the Af ghan security forces into effective and modern force, confirming to international standards. MoD reform and reconstruction aim to rehabilitate a strong defense sector to protect national security and to be able to begin assuming primary re sponsibility for Afghanistan’s secu rity with a gradual withdrawal of international security forces. Intensive field and operational train ing is and will continue to further enhance the capabilities of the ANA and ANP. Capacity and budget needs of the ANA and the ANP will be under constant review. There is a need for overcoming financial challenges and insufficient funds to realize capacity building of the security strategy. Specific capacity development pro grams will be required for preparing the security forces for counter narcot ics operations. Special programs will be developed for developing gender sensitive secu rity system internally as well for ex ternal interactions. Afghanistan National Development Strategy (ANDS) 62 62 A fghanistan N ational D evelopm ent S trategy (A N D S ) CHAPTER 6 GOVERNANCE, RULE OF LAW & HUMAN RIGHTS The goal of Governance, Rule of Law and Hu man Rights Pillar is to strengthen democratic processes and institutions and extend human rights, the rule of law, delivery of public ser vices and government accountability. Improving governance is essential to the at tainment of the Government’s national vision and the establishment of a stable and function ing society. The Government’s guiding princi ples for improving governance are openness, participation, accountability, effectiveness, effi ciency, coherence, equity, inclusiveness, justice and rule of law applied at all levels of the gov ernment. The Government will act as a policy maker, regulator, and enabler, not a competitor of the private sector. The main priorities for the governance sector are to: (i) increase the pace and quality of public administration re form; (ii) strengthen sub-national governance structures; (iii) reform legal and courts proc esses; and (iv) strengthen parliamentary and legislative processes, including holding free and fair elections. While much has been achieved in strengthen ing the formal and informal structures of gov ernance and the rule of law, as well as in ex tending human rights, considerable challenges still stand in the way of achieving the goals of 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 underde veloped governance and administration capa bilities; (iv) high levels of corruption; (v) fiscal uncertainty; (vi) weak legislative development and enforcement; (vii) weak parliamentary oversight; (viii) weak community and civil so ciety institutions; (ix) an ineffective and poorly defined justice system; (x) gender inequality; and (xi) underdeveloped human rights en forcement capacities. Three sectors are contained under this pillar: Governance, Public Administration Reform and Human Rights, Justice, and Religious Af fairs. Sub-national consultation and the Pro vincial Development Plans (PDPs) were in strumental 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 Registra tion, Counter- Narcotics and Human Rights within specified timelines. Functional institu tions 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 trans parent access to justice. The strategy includes efforts to reduce gender inequality. Institutional and administrative frameworks will be established at the local government level to enable women to play an important role in decision-making (such as the CDCs established under the NSP). The Consti tution allows limited decentralization, specify ing that a Provincial Council (PC) with elected members is to be formed in every Province, and that District, Village and Municipal Coun cils and Mayors are to be elected through free, general, secret and direct elections every three years. Governance, Rule of Law and Human Rights 63 Current Situation Afghanistan has come a long way in the last seven years. In 1378 OR 1379 (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, under which the three branches of government function effec tively and openly, are accountable, inclusive and abide by the rule of law. Progress since 1379 OR 1380 (2001) includes the adoption of the constitution; successful parlia mentary and presidential elections, and pro gress in improving the livelihood and welfare of females and other disenfranchised groups. In addition, the ANDS sets out a series of re forms 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 stan dards. In Hamal 1385 (March 2007), the Supreme Court, the MoJ, and the Attorney General’s Office presented new comprehensive reform strategies at the Rome Conference. These in cluded plans to: restructure institu tions; develop merit-based and trans parent recruitment; design promotion and accountability mechanisms for im proving professional standards, ethics and discipline; improve the conditions of service for justice officials; and in crease women’s representation at all levels of the justice system. Corruption: The High Level Commission against Corruption has been estab lished to assess and analyze the factors contributing to corruption. The Com mission 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 en acted to promote investment and trade. Measures to deal with illegal drugs, corruption and money laundering are under review or 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 im plemented to establish greater gender equality by eliminating discrimination, developing women’s human capital and promoting their participation and leadership. Governance: Public administration is gen erally recognized as being weak. The Government will undertake compre hensive institutional strengthening and capacity building within the ministries, provinces, districts, municipalities and villages. This will achieve improve ments in the delivery of services to the people and communities living in the provinces, districts, municipalities and villages. A number of constraints continue to hamper the public sector. They include: weak capacity; a lack of resources and unsustainable fiscal outcomes; a restrictive legislative environment that limits private sector activity; limited legis lative oversight; lack of understanding of the responsibilities of political office; extensive cor ruption; excessive centralization; a lack of co ordinated decision-making across Government; limited female participation in the Govern ment; and limited direct accountability to cli ents; 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. Eigh ty percent of provinces identified reducing cor ruption in public administration as a priority during sub national consultations. The policy framework for the proposed reform program includes all national and sub-national government, parliamentary, civil society and political structures. Afghanistan National Development Strategy (ANDS) 64 The mainstreaming of cross-cutting issues of anti-corruption, capacity building and gender is of particular relevance to this pillar. In summary, the policy framework for this pillar includes the following goals: National Assembly Empowerment: To en hance the capacity of the National As sembly in discharging legislative, over sight, 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, and conducting per formance-based reviews. Anti-corruption: Measures to achieve a re duction of corruption in the judiciary and throughout the government will be introduced. There will be increased monitoring of corruption at senior lev els. Appropriate new applications will be introduced to limit potential corrup tion. Public reporting and complaint mechanisms will be expanded. Enhanced availability of information to public The public’s right to access to information will be increased and the rule of law will be enforced. Enhanced participation of Women in Governance: Fulfillment of the na tional action plan for women’s rights will be implemented and affirmative action programs made available to women. Enhanced participation of Youth in Gov ernance: 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 es tablished. Regular national and sub national elections will be held as man dated 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 eco nomic and poverty baselines will be es tablished. Geodesy and Cartography: Village and Gozar Electoral boundaries will be ve rified and mapping exercises will be undertaken. Land Administration: A modern and community-based land administration system and establishment of a fair sys tem for settlement of land disputes will be established. Independent Directorate of Local Gov ernance (IDLG): A sub-national gov ernance policy will be developed. People’s participation in sub-national governance will be increased. Provin cial Councils will be empowered. Laws on District Councils, Municipal Councils, and Village Councils will be introduced. Regular elections of Dis trict Councils, Municipal Councils, Mayors and Village Councils will be held. Public administration will be re formed at the sub-national level and the capacity of the public sector work force at sub-national level strength ened. Provincial planning and budget ing will be institutionalized. Governance Administration: Review and assessment of the facilities in all gov ernment offices will be undertaken and appropriate facilities provided. Communication with and within the Government: There will be enhanced flow of information between all gov ernment entities related to national pol icy, strategy and national budget pro cedures. Human Rights: The realization, protection, promotion and extension of human rights, including the Action Plan on Peace, Justice and Reconciliation will be implemented. Governance, Rule of Law and Human Rights 65 JUSTICE Role of the Sector in ANDS The role of the Justice Sector in the govern ment’s development strategy is to ensure the improved integrity, performance and infra structure of Afghanistan’s justice institutions in each province; to streamline administrative structures, ensure professional integrity and improve coordination and integration within the 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 Na tional Justice Program (NJP). This will strengthen and improve coordination among the justice institutions, and between the justice institutions and their bilateral and multilateral funding partners. In the longer term the sector will seek to increase specialization and diversi fication of justice practices to meet more com plex demands. This includes the necessary in teraction and with the informal justice systems, which are prevalent throughout the country.. 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 mecha nism for building peace and justice must be carried out with the active and meaningful par ticipation of all national stakeholders, includ ing the justice institutions. Contribution of the Sector to the ANDS Economic Growth: An efficiently operating justice system will encourage investment and economic activity to move from the informal to the formal sector, thereby strengthening the ability of the government to raise revenue in ternally. Employment: Growth of the private sector, a prerequisite for 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 di rectly encourage increased employment, par ticularly in urban centers. Poverty Reduction: Economic growth and in creased employment will contribute to a reduc tion in poverty. In addition it should be noted that women, the poor and the marginalized are most likely to suffer from lack of access to a fair and unbiased judicial system. Security/Stability: Poor security in certain parts of the country makes service delivery dif ficult or impossible and forces justice profes sionals to operate at great personal risk. Police devote most of their resources to maintaining security. Contribution of the Sector to Imple mentation 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): Al though justice and the rule of law are not among the eight plus one MDGs, they provide the enabling environment for poverty reduc tion and economic development. Current Situation in the Sector Achievements: Afghanistan has a mixed civil law and Islamic Sharia-based formal legal sys tem that has evolved over many years. In most non-urban areas customary legal systems con tinue to operate. While there is considerable variation in these customary legal systems they are usually based around traditional tribunals – jirgas, madracas shuras or mookee khans. Tra ditional systems usually have core principles of apology and forgiveness, followed by recon ciliation. Most Afghan customary systems are based on the principle of restorative justice. The Constitution introduced three major re forms to the judicial system: Art. 97 declared the judiciary an “inde pendent 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 struc ture that is headed by the Supreme Court; Afghanistan National Development Strategy (ANDS) 66 The constitution created a unified system of laws. The Constitution and statutes created under the Constitution are le gally dominant, with the basic princi ples of the Sharia acting as a guide to the legislature. In Asad 1385 (August 2006), a new Supreme Court was approved by the National Assem bly. The Supreme Court then adopted a new Code of Judicial Conduct, based on the interna tionally recognized Principles of Judicial Con duct, and established ethical standards. Donor activity in the justice sector has gener ally focused on building the capacity of the ju dicial system, including police training and court construction. Needs Assessment: the following needs have been identified at the national and provincial levels: Salary support: To improve performance, mitigate corruption and ensure profes sional qualification; Infrastructure and office equipment: Sub ject to survey of essential work to be targeted. Transportation: Subject to survey of essen tial work to be targeted; Operating costs: Need to be financed to improve performance of justice institu tions; Capacity building and training: Continuing professional development require ments; Information management and human re source management to be established; Codes of Ethics and oversight mechanisms to be established for all legal profes sionals; Financial management: Budgets are inade quate and budget execution rates are low; Public awareness: There is a need to de velop tools and instruments that will ensure access at all level of society. Challenges, Constraints, Weaknesses: Weak infrastructure; lack of trained staff; delays and backlogs of appeals; lack of information tech nology and capacity; uncompetitive salaries; poor education, vocational training, and public confidence; resource constraints; security con straints in certain parts of the country make service delivery difficult or impossible. Policy framework: sector strategy The Government’s vision for justice is of an Islamic society in which an impartial and inde pendent justice system guarantees the security of life, religion, property, family and reputa tion; with respect for liberty, equality before the law and access to justice for all. Sector Priority Policies and Goals: These are all detailed in the sector strategy and further elaborated in the NJP; however a brief sum mary of the three main policy reform goals is provided below: Integrity, performance and infrastructure: Administrative reform and restructur ing of justice institutions; legal educa tion; systematic records systems; en hancement of administrative capacity; eradication of corruption; promulga tion of ethics codes; engagement of public through complaint systems; ex pansion of justice services through in frastructural development; procure ment of transportation assets and equipment. Coordination and integration with other government institutions and civil soci ety: Improved legislation through en hanced capacity to draft legislation and parliamentary personnel; establish ment of a National Legal Training Cen tre for vocational education and voca tional excellence; increased opportuni ties for external stakeholders and civil society to contribute to legal policy de velopment in policy analysis and legis lative drafting; support the Provincial Justice Coordination Mechanism (PJCM), to improve the delivery of jus tice assistance in the provinces. Improved justice practices and processes: Investigation system established to de termine delays and lack of representa tion in the criminal justice system and improved case management; Sentenc ing Policy developed; Juvenile Justice Policy implemented; enhanced and Governance, Rule of Law and Human Rights 67 improved civil court case administra tion and jurisdictional structures in ma jor litigation categories; nationwide ac cess to legal information and represen tation; investigating policies for im proved links between formal and in formal justice sectors and oversight of the informal by the formal. Afghanistan National Development Strategy (ANDS) 68 Table 6.2. Key Objectives of the National Justice Program Public can rely on effectively organized and professionally staffed, transparent and accountable justice institutions. A.1. Justice institutions are structured, managed and administered according to their mandate and functions. A.2. Justice institutions are professionally staffed by men and women who are equally remunerated according to their competencies and qualifications. A.3. Justice institutions have established the organs necessary for implementation of the national justice program. A.4. Justice institutions and organizations have adopted and are enforcing codes of professional conduct and ethics. A.5. Justice institutions have developed transparent operating procedures. A.6. Justice institutions have adopted effective anti-corruption measures. Justice institutions have access to infrastructure, transportation, equipment, and supplies adequate to support effective delivery of justice services. B.1. Justice institutions, including the central prisons directorate, are provided with buildings necessary for fulfillment of their tasks. B.2. Justice institutions are provided with equipment and supplies necessary for their tasks. B.3. Justice institutions are provided with means of transport necessary for their tasks. Legal education and vocational training are adequate to provide justice professionals with sufficient know-how to perform their task. C.1. Universities provide legal education which equips graduates with the intellectual skills and substantive knowledge to perform well as justice professionals. C.2. Justice institutions equip new professionals with the practical and professional skills necessary to fulfill their duties. C.3. A system of continuing legal education for justice professionals, paying specific attention to women, is in place and operational. Statutes are clearly drafted, constitutional and the product of effective and consultative drafting processes. D.1. The taqnin has sufficient capacity and resources to review, amend or draft legislation. D.2. All laws in force have been reviewed for constitutionality. D.3. Capacity for legislative drafting has been enhanced throughout other government institutions including Parliament. D.4. System is in place to ensure consultation of stakeholders regarding proposed or pending legislation. Justice Institutions effectively perform their functions in a harmonized and integrated manner. E.1. Coordination and cooperation among justice sector institutions is enhanced, resulting in improved criminal and civil trials and case management. E.2. Adequate institutional organization structures capable of addressing cross cutting issues in rule of law are in place. E.3. Criminal justice is administered effectively, and in accordance with the law, the Constitution, and international stan dards. E.4. Civil justice is administered effectively, and in accordance with law, the Constitution, and international standards. E.5. Policies regarding introduction of administrative law structures are in place. E.6. Policies are in place to ensure that the corrections system operates in accordance with international standards. E.7. Enhance legal and policy framework related to juvenile offenders and children in conflict with the law. Citizens are more aware of their rights and are better able to enforce them. F.1. Practices and procedures governing trials and routine legal transactions, including registration of documents, have been streamlined and rationalized. F.2. Enhanced access to formal legal system for indigents, illiterates, women, and children. F.3. Enhanced monitoring of human rights enforcement throughout the government. F.4. Increased knowledge of laws, rights, and responsibilities through legal awareness campaigns. F.5. The role of traditional dispute resolution in the rule of law is defined, and decisions consistently meet international human rights standards. F.6. Begin the process of establishing a transitional justice system to record past human rights abuses and preserve the rights of victims consistent with the government’s action plan for peace, reconciliation and justice. Governance, Rule of Law and Human Rights 69 Integration of the PDPs: Seventeen out of the 34 PDPs cited security as the main obstacle to de velopment and stability, and cited it as the pri ority sector in their provinces. As a result, many of the projects requested by the people indicate the need for justice sector infrastruc ture and a law enforcement presence at the dis trict level. Sector Related Issues Role of the Private Sector: The justice sys tem lowers the cost of doing business and al lows firms to enter into commercial enforceable contracts. Businesses in the formal sector have a strong interest in promoting an efficient judi cial system Role of Civil Society: Civil society urgently requires a judicial system at both the national and provincial level that can be trusted to ad minister 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 coun try. The NJP outlines mechanisms to facilitate improved cooperation and coordination with donors, thereby improving the effectiveness of aid delivery. 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 Govern ment’s primary goal is to ensure that all Af ghans have equal opportunities to exercise their Islamic and religious beliefs and that Is lamic values will be embedded in the Afghan recovery and development. The religious af fairs strategy intends to establish a system which ensures that religious values are re flected with every aspect to Government policy and contribute to the overall development of the country. The sector strategy was developed after extensive consultations with religious in stitutions, scholars and religious leaders at both national and sub-national levels. With respect to this the Government will im prove religious infrastructures including mos ques, shrines and other holy places. The Gov ernment will also develop religious schools (madrassas) and will significantly strengthen the training of imams, preachers and religious teachers. The Government will provide train ing opportunities for Islamic teaching. In order to meet these objectives, the strategy requires the provision of religious services, poverty re duction and effective economic development of the country Contribution of the Sector Strategy Economic growth: Islam opposes criminal behavior and supports enforcement of laws that are consistent with Islamic teachings. There is a need to raise public awareness of the consequences of illegal activity, and the impor tance of Islamic values in strengthening Afghan society. Religion can provide needed support of the Government’s efforts to implement key reforms. Poverty reduction: The religion of Islam re quires all Muslims to support the poor and vulnerable in society (Zakat, one of the five pillars of Islam). It also promotes the idea of social solidarity and actively encourages char ity. With the establishment of the Zakat Ad ministration within the Government, as well as the possibility of a Zakat-based tax, donations can now be collected and redistributed in an organized manner among the neediest. 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 facilitating an end to the current conflict and encouraging national rec onciliation. 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 Afghanistan National Development Strategy (ANDS) 70 essential to building a strong free market econ omy in addition to being essential for any de mocracy. Current Situation in the Sector Achievements: A great deal of work has been done since the establishment of the transitional government of Afghanistan in terms of reli gious affairs, including: Afghanistan is an Islamic Republic; The Constitution is fully based on the prin ciples of Islam; The Constitution states in Article 2: “The sacred religion of Islam is the religion of the Islamic Republic of Afghanistan. Followers of other faiths shall be free within the bounds of law in the exer cise and performance of their religious rituals.” Hajj services have been improved and Min istry of Hajj and Endowment strength ened; Hundreds of new mosques and other holy places have been constructed or reha bilitated; Extorted properties have been restored to their owners; Islamic subjects have been included in the new curriculum of primary, secondary and higher education systems; Islamic Madrasas and Dar-Ul-Hefazs have been established and rehabilitated; The Department of the Islamic Sciences of the Science Academy has been rehabili tated; Islamic literature has been more widely disseminated through public and pri vate media, electronic, visual and au dio. Needs assessments: The rehabilitation and construction of religious schools is the most pressing need for the sector. Additionally there is a need to improve the Islamic female educa tion system and to hire an adequate number of imams. Challenges and Constraints Lack of qualified scholars and lack proper training for the scholars; Lack of a qualified cadre in religious edu cation; Weak coordination among the different re ligious government and non government institutions; Low level of professional capacity; Lack of adequate facilities and competent professionals, which hinders the effec tive implementation of programs; Uncertain central funding, obliging reli gious institutions to depend on private charities. A lack of adequate funding is one of the major constraints to realizing sector programs, minimizing the ability of the government institutions to im plement their projects. Security problems: Continued insecurity is a barrier to the implementation of the programs in some parts of the country. Policy Framework: Sector Strategy The vision for the sector is to provide compe tent religious services and raise religious awareness of the public in order to promote their participation in Government development programs. This will ultimately lead to poverty reduction and the development of Afghanistan. Sector Priority Policies: The government will focus on the following priorities: Improving infrastructure for religious af fairs(mosques, shrines, holy places, re ligious schools); Improving training and capacity of Imams, preachers, religious teachers and other scholars to raise public awareness and to teach; Finalizing overall cultural curriculum for primary and higher education; Strengthening Hajj arrangement systems for pilgrims; Supporting efforts of other government agencies to improve religious literacy. Expected outcomes: Governance, Rule of Law and Human Rights 71 Government activities will not contradict Islamic values; Religious infrastructure will be improved; Religious affairs sector will be financially sustainable; The religious education system will be im proved; Participation of Islamic scholars in raising awareness of key Government reforms will increase; The role of =religious institutions in pro grams for poverty reduction will be strengthened. Government priorities for Religious Affairs: Implement reforms in the education system and teaching methods in the public and private madrasas; Implement administrative reform pro grams in the Ministry of Hajj and En dowment and its provincial offices; Reform the Hajj and pilgrimage services systems; Reform and improve coordination of the Sharia faculties of Afghan Universities; Strengthen support for building and main taining mosques and other religious in stitutions; Improve self-sustainability of religious in stitutions by building shops and busi ness centers within the properties owned by mosques and other holy places and opening bank accounts for collecting donations; Establish Ulama Councils for settlement of local disputes and implementation of development programs in the commu nity; Establish a Zakat-related office within the ministry of Hajj and Endowment; Establish effective and transparent mecha nisms for collecting revenues from shrines and holy sites. CONCLUSION Good governance and adherence to the rule of law are much needed reforms that the Gov ernment of Afghanistan is committed to pursu ing. While the donor community can support reforms and provide technical assistance, these reforms have to be initiated by internal deci sions if improvements in governance are to be implemented. Without good governance and a strong social contract for the acceptance of the rule of law, the ANDS overall development strategy will fail. This is because the strategy has at its core the development of a private sec tor that will generate economic growth and demand for skilled labor. In this framework, the ANDS encourages the public sector to con centrate on the creation of a safe environment conducive to the smooth operation of a robust private sector. This means a greater focus by Government on governance issues rather than on production of goods and services that can be provided by more efficiently by the private sec tor. Governance and the rule of law will remain a primary concern of the Government, which has directed that a considerable proportion of available resources be devoted to strengthening the institutions responsible for delivering good governance. They include the National As sembly, the judicial system, the AGO, the po lice, and the Ministries that administer much of the legislation. In it’s the early stages, efforts to strengthen governance and the institutions that support governance have been concentrated at the central government level. Afghan “ownership” of this strategy requires that the Government seek the close cooperation of donors in capacity building and know-how transfer, yet retain ultimate responsibility. Only in that way, can a system evolve that allows the best aspects of a traditional governance system to co-exist with a universal system that recog nizes and supports principles of social diver sity, respect for human rights and the rule of law. 72 A fghanistan N ational D evelopm ent S trategy (A N D S ) Table 6.1. Cross cutting issues in the Governance, Rule of Law and Human Rights Pillar Anti-Corruption Gender Equality Counter-Narcotics Environment Regional Capacity Building By Jaddi 1392 (end-2013), the corruption in the judiciary and the government at all levels, especially in security, customs, civil administration and municipalities, will be significantly reduced. A monitor ing mechanism to track corruption in high places will be put in place by Jaddi 1387 (end-2008). By Jaddi 1387 (end 2008), cross-cutting electronic govern ment applications will be launched to reduce corruption and increase effi ciency. By Jaddi 1387 (end-2008), the Government will establish and imple ment a public complaints mechanism. Citizens have right of access to informa tion from Government offices in accor dance with Article 50 of the Constitu tion. This right will have no limits, un less it violates the rights of others. By Jaddi 1389 (end-2010), the legal frame work required for exercising this right provided under the constitution will be put in place, distributed to all judicial and legislative institutions, made avail able to the public and implemented. By Jaddi 1389 (end-2010), the Govern ment will increase the number of arrests and prosecutions of drug traffickers and corrupt officials, and improve its infor mation base concerning those involved in the drug trade, with a view to enhanc ing the selection system for national and sub-national public appointments. Pub lic officials elected and appointed to high positions will be required to declare their assets before taking office. The The Government will fully imple ment the Na tional Action Plan for Women in Afghanistan by Jaddi 1389 (end 2010). The Government will introduce legislation on affirmative ac tion, reserving a specific percent of seats for wom en in the elected district, munici pal and village councils as well as in the civil service. The set targets will be seen as a mini mum and not, over time, as a maximum. Affirmative ac tion on allocating seats for women will be linked to education re forms for women. Educating wom en will help break the gender bias and prepare By Jaddi 1389 (end 2010), the Government will increase the num ber of arrests and pros ecutions of drug traf fickers and corrupt officials, and will im prove its information base concerning those involved in the drugs trade, with a view to enhancing the selection system for national and sub-national public appointments. Public officials elected and appointed to high posi tions will be required to declare their assets be fore taking office and on a periodic basis dur ing their tenure in pub lic office. The Government will establish and support the existing Counter Narcotics units in key ministries and will es tablish coordination mechanisms for a coor dinated Government response. The National Assembly will organize training for its members on CN issues, in particular the National Environmental Gov ernance: The Government will establish the following rights of the public (individuals and their associations) with regard to the environment: 1. The right of everyone to receive environmental infor mation that is held by public authorities. 2. The right of both women and men to participate in en vironmental decision-making. ; 3. The right to review proce dures to challenge public de cisions that have been made without respecting the two aforementioned rights or en vironmental law in general. Local Environmental Govern ance: Natural resources will be managed through commu nity-based mechanisms and with the support of legitimate local governments. Natural Resource Manage ment-related interventions will be based on broad consul tations with local communi ties (to include marginalized groups like pastoralists or indigenous groups) and will reflect local values. These will LOGOTRI is the Network of Local Government Train ing and Research Institutes in Asia and the Pacific. Its members are both governmental, autonomous and private sector insti tutions and or ganizations in volved primarily in local government training and re search. The Inde pendent Director ate of Local Gov ernance (IDLG) will collaborate with the LOGOTRI with a view to or ganizing training and study tours of Afghan sub national govern ance policy makers and Afghan offi cials at LOGOTRI member institutions in Asia and the Pacific. The capacity of National Assembly Members will be upgraded with respect to the draftingand ratifica tion of legislation, review of and input to the national budget, and on issues related to women’s rights, national security, international rela tions, and inter-ethnic relations. The Government will strengthen the capacity of Provincial Councils, and support knowledge sharing and exchange among Provincial Councils. The Government will strengthen the elected sub-national representative bodies, enabling them to perform their roles and fulfill their responsibilities towards their constituent citizens. By end-1389 (20 March 2011), the Government will build institutional and administrative capabilities in provincial, district and, municipal administrations to manage basic service delivery through reformed organizational structures, stream lined management processes, the development of essential skills and improvements in the knowledge base of civil servants. A training policy for the entire pub lic sector workforce will be devel oped and implemented. Institu tional arrangements will be put in place to ensure that each member of the workforce receives organiza 73 G overnance, R ule of Law an d H u m an R igh ts Anti-Corruption Gender Equality Counter-Narcotics Environment Regional Capacity Building Government will establish within gov ernment and parliament a clear policy on anticorruption and implementation of UNCAC. Institutional arrangements within the Government to fight corrup tion will be rationalized and strength ened. The Government will fight corruption with resolve and commitment and im prove its capacity to do so. The actions contained in the Anti Corruption Road Map will remain priority actions for the Government in 1387 (2008) and beyond. The Government will take steps con tained in the report of Inter-Institutional Commission. women for more significant par ticipation in gov ernance. CN Law. Youth groups are im portant civil society organizations. Aware ness of CN issues will be incorporated into the programs devel oped for youth groups. Provincial level counter narcotic initiatives will be implemented with the cooperation of the Governors and the Provincial Council Members form an essential part of a process of poverty reduction, since improved productivity will directly increase rural livelihoods, food security and market participation. tion- and job-specific training at least once in two years. Women’s participation will be ensured. The aim of T & D policy shall be to: Provide job-related education, training, and development oppor tunities for all civil servants so that they may perform their jobs compe tently and happily. Economic and Social Development 75 CHAPTER 7 ECONOMIC AND SOCIAL DEVELOPMENT This chapter summarizes the sector strategies developed as part of the ANDS under Pillar 3: Economic and Social Development.35 The ANDS strategy depends upon achieving sus tained high rates of economic growth that will increasingly be based on private sector-led de velopment.36 A key component of the ANDS is the development of an enabling environment that encourages the private sector to play a cen tral 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 create an enabling environment for the private and non government sectors are included. PRIVATE SECTOR DEVELOPMENT The Government’s economic vision has been consistent since 1381 (2002)37, and remains the strategic objective of the private sector devel opment 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, 35 The full sector strategies are included in the Volume II of the ANDS. 36 See for example “A Policy for Private Sector Growth and De velopment” presented by the Government at the Enabling Envi ronment Conference, Jauza , 1386 (June 2007). 37 See generally, National Development Framework, 1380 OR 1381 (2002), ANDS Volume II, and Securing Afghanistan’s Future, Chapter 5 1382 OR 1383 (2004). We aim to “enable the private sector to lead Afghanistan’s development”.38 We will build a market-based system, driven by private sector growth,39 in which Gov ernment is the “policy maker and regula tor of the economy, not its competitor”.40 If the Government is to achieve its aim of significantly enhancing per capita GDP in the next five years,41 it must complete the foundations for socially responsible pri vate sector growth and encourage sus tained high levels of foreign and domestic private investment. The implementation of the private sector de velopment strategy will contribute directly to the achievement of a number of objectives set out in the Afghanistan Compact and the MDGs: Afghanistan Compact: Private Sector Devel opment and Trade: “All legislation, regu lations and procedures related to invest ment will be simplified and harmonized by end-1385 (2006) and implemented by end-1386 (2007). New business organiza tion laws will be tabled in the National Assembly by end-1385 (2006). The Gov ernment's strategy for divestment of 38 President Karzai, Opening Address at the ADF, Hamal, 1383April 2005, page 9. 39 Minister of Finance Anwar Ahady, The Budget as a Tool for Accelerating Economic Development and Poverty Reduction, ADF, Hamal 1384 (April 2005). Senior Economic Advisor to the President, Professor Ishaq Nadiri, The National Development Strategy & Key Challenges, Presentation at the Afghanistan Development Forum. Hamal 1384 (April 2005). 40 Senior Economic Advisor to the President, Professor Ishaq Nadiri, The National Development Strategy & Key Challenges, Presentation at the Afghanistan Development Forum.Hamal 1384 (April 2005). 41 Statement of Dr. M. M. Amin Farhang, Minister of Economy, at the ADF, Hamal 1384 (April 2005) Afghanistan National Development Strategy (ANDS) 76 state-owned enterprises will be imple mented by end-1388 (2009).” 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 in crease 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 la bor, 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 com mitment to good governance, develop ment and poverty reduction. Goal 8: In cooperation with the private sector, make available the benefits of new technologies — especially information and communi cations 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 develop ment and increase domestic and foreign in vestment 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 na tional resources and infrastructure; and (iii) strengthen efforts to promote investment from domestic sources, the Afghan diaspora and foreign investors. Component 1: Strengthening the ena bling environment The main objective of an improved enabling environment is to reduce the costs of doing business. This entails the elimination of exces sive or unnecessary impediments to business activity that raise costs, while improving the “soft” and “hard” infrastructures essential to efficient economic activity. This requires that the private sector have access to the 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 macroeco nomic stability and an environment subject to 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 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 institu tions, including the establishment of effective commercial courts, responsible for the imple mentation of commercial laws. The ANDS strategic priorities for promotion of private sector development include: A stable macroeconomic environment and supportive financial system: The Gov ernment will control inflation at low lev els similar to those achieved in recent years. The growth of a financial sector able to extend credit to viable firms will be supported through legal and regula tory reforms, including the implementa tion of secured transactions laws. Private sector investment: Attracting private investment is the responsibility of the en tire Government and will be an integral part of all projects and programs imple mented under the ANDS. This will re quire strengthening Government agen cies and Ministries, including AISA as the lead investment promotion agency. All Ministries have the mandate to ex pand opportunities for private business activity and to increase their contribution Economic and Social Development 77 to the growth and development of the economy. Donors will be encouraged to fulfill their commitments to increase the number OR volume of goods and ser vices sourced within the country. Legislative reform: Key commercial laws and amendments establishing the basic legal and regulatory framework will be en acted and implemented to encourage private sector involvement in social and economic development and consistent with the Afghan conditions. o The Government will introduce and implement the remaining commercial laws included in the Afghanistan Compact benchmark. o The Government will consult with rep resentatives 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 es tablish the authority of mediation and arbitration tribunals to resolve private private and private-public disputes, in cluding land issues. o The Government will ensure that no law will be implemented unless it has first been published in the newspapers, and made available electronically and in hard copy to the public. Regula tions, including import tariff rates, will be made readily available on the Minis try of Finance website. Administrative Reform: The Government will ensure that Ministries and agencies are able to competently administer com mercial laws and regulations in an unbi ased and predictable manner. These ac tions will include: o Investing in capacity development for National Assembly so that MPs are bet ter informed and supported in their role and understanding of proposed laws. o Ensuring the competency and trans parency of tribunals by establishing standards and building the capacity of arbitrators, mediators and lawyers. o Undertaking financial audits of state owned assets and corporations. o Implement ING effective programs to provide institutional strengthening and capacity development throughout the public sector. State owned enterprises: The Government will continue the program of privatiza tion 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) gener ate increased government revenue. Formalized private sector operations: The Government is encouraging firms to formalize their activities by introducing tax number identification and applying commercial laws and regulations. Con sideration is being given to innovative ef forts to channel some public vocational training funds through properly regis tered firms, in compliance with tax laws, to finance training for their employees in properly accredited vocational training programs. Improved private sector access to finance: The Government will implement a well defined strategy to expand the availabil ity and range of financial products and services, especially targeting small and medium enterprises. Priority actions in clude: o Passage and enactment of four key fi nancial laws: Secured Transactions, Mortgage, Leasing and Negotiable In struments Laws. o Establishment of an independent bank ing and business training institute as a joint commercial bank-DAB initiative. o Establishment of a credit information bureau to facilitate commercial and consumer lending. o Establishment of a financial tribunal to provide swift legal resolution of finan cial disputes. Maintaining a pro-trade environment: The Government remains committed to main taining trade policies with low barriers for imports and exports and a liberal for eign exchange system. The Govern ment’s trade policies will take into ac count the need to increase domestic Afghanistan National Development Strategy (ANDS) 78 revenues and support increased domestic production by the private sector. Pres sures 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 con sumers. 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 Gov ernment remains committed to WTO ac cession. Expanding trade with neighbor ing countries will help to establish Af ghanistan as an important ‘trading hub’ in the region. Firm-level technical assistance: The Gov ernment is determined to assist the pri vate sector in developing its competitiveness and substantially in creasing the volume of domestic produc tion. 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 be gun to emerge, some with demonstrated export potential, including production of dairy products, honey, cement, sun flower products, glass, sugar beet, olive oil, cashmere, flowers and floral essences. The Government will seek firm-level technical assistance to increase the ability of firms in these and other new indus tries to compete more effectively in po tential export markets. Trade Facilitation: The Government will in troduce trade facilitation measures to re duce the cost of moving goods within the country and across borders, including endeavoring to relax restrictions arising from transit agreements with neighbor ing countries. Institutional capacity to support the export of domestically pro duced goods and services will be in creased, including, for example, the tech nical resources necessary to establish that Afghan agricultural products meet sani tary and phyto-sanitary (SPS) require ments of importing countries and that in ternational product standards are met. The Government will reduce the burden of export documentation, processes will be further streamlined, and essential ser vices, including market information, will be provided to the exporters by the EPAA. NGOs and civil society: The strategy recog nizes the vital contribution that NGOs and other civil society organizations are making in implementing the social and economic goals of the ANDS. The Gov ernment will maintain an open and effec tive social dialogue with civil society and encourage its contributions to social and economic development. Component 2: Expand opportunities for the private investment in infra structure and natural resources devel opment The country requires enormous investment in infrastructure, including roads, power genera tion, water supply, and irrigation. A substan tial portion of these investments could be un dertaken profitably by private investors within an appropriate regulatory environment. Pri vate investment in the development of natural resources, particularly minerals, will become viable when suitable regulations are in place. The Government will establish a multi-sector regulatory authority following an ap proach similar to that used to develop the telecommunications industry. This regulatory system will establish appro priate 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 in frastructure projects, such as roads and bridges, will be developed based on in ternational best practices. The Government will encourage private pro vision of public services wherever it will be feasible, including areas such as health, education, municipal services, etc. Economic and Social Development 79 Opportunities to expand private investment often overlap sectors in which multiple Minis tries have responsibilities. This will require improved coordination and strengthening of the capacities of most Ministries and agencies. To be successful, the development and promo tion of private investment opportunities cannot be the responsibility of only one or two agen cies or Ministries, but must entail a concerted effort by the entire Government. Efforts to en courage private sector investment also require the understanding and cooperation of the do nor community. This aspect of the private sector development strategy is reflected in many of the sector strat egies set out below. In the energy sector, for example, it represents a major reform designed to attract private investment for development of energy resources. It is the basic foundation for development of the mining sector. It plays an important role with respect to efforts to make more efficient use of state owned land to stimulate commercial agriculture. The Gov ernment will seek to persuade medium and large scale agricultural producers and proces sors to invest in commercial agriculture in or der to increase employment and market oppor tunities 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 de velop a vibrant domestic private construction industry to participate in projects being imple mented by Government Ministries. Component 3: Concerted private sec tor 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 is a multitude of 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 responsibil ity for promoting increased investment will be a government-wide task and an integral part of all projects and programs undertaken as a part of the ANDS. The objective is to make potential investors aware of the opportunities available in Af ghanistan, to assure them that the Government recognizes the importance of increased private investment, and to work with potential inves tors to ensure that their investments will not fail due to unpredictable and unfavorable changes in the tax environment or policies to wards private investors. This needs the full support of the international community. Through focused efforts, donors can help create the conditions necessary for increased private investment in the country. Donors can also help by by making known in their own coun tries the importance the Afghan Government is placing on the need to expand private sector investment and operations within Afghanistan. ENERGY Role of the Sector in ANDS: Energy is critical to economic growth. The ANDS strategic vision and goal for the energy sector is: “An energy sector that provides driv ers of growth in the economy with long term reliable, affordable energy based on market based private sector investment and public sec tor oversight.” This strategy supports (1) com mercially and technically efficient energy de livery as a priority; (2) reformed sector govern ance that will safeguard consumers, workers and resources; (3) the establishment of a mar ket-based enabling environment where legiti mate 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 lim ited to projects, energy for industry and vehi cles. 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 management. As the Afghan energy sector moves from primarily state owned op erations to a more private market orientation, new institutional arrangements will be estab lished. The Afghanistan Compact benchmarks that specifically deal with the energy sector include: Afghanistan National Development Strategy (ANDS) 80 “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 1389 (2010), at least 75 percent of the costs will be recovered from users con nected to the national power grid,” a benchmark that the Government now in tends to exceed for all but the poorest members of society.42 These are ambi tious goals. Meeting these objectives will require a transformation of the sector similar to the one that restructured the telecommunications industry, with a re organization and commercialization of public sector activities and a greater role being played by the private sector. Current situation in the sector The energy sector suffered considerable dam age as a result of war and neglect. The country has never had high rates of electrification. To day it is estimated that 20 percent of the popu lation has access to public power (grid supplied) on certain days for a limited number of hours only. Nationally, seven grids distrib ute power, with supply coming from domestic hydro generation; imported power and thermal generation. Isolated diesel generation has dramatically increased since 1380-1381 (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 increase the availability of electricity and other energy resources and to carry out the planning necessary to make the transition to a more sus tainable and efficient private sector-led energy sector. A power sector master plan (1382 (2003 04)); a gas sector master plan (1383 (2004-05)), and a renewable energy plan (1384 (2006)) were developed and/or updated. Considerable in vestment in expanding domestic generation capacity has been undertaken, including the rehabilitation of the damaged power infrastruc ture. To a lesser extent, repairs of gas, coal and 42 The poorest members of society rarely have access to electric ity service. other energy infrastructures have taken place, while millions of dollars have been spent for diesel fuel and to support more than 1,700 small renewable energy projects. Since 1383 (2006), there has been an ongoing program for commercialization of operations in power op erations by the state owned power company, DABM. The Inter-Ministerial Commission for Energy (ICE) was established in 1383 (2006) to coordi nate Government policy in energy; to leverage donor resources; and integrate sector planning. Surveying and inspection 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 pre 1380-1381 (2002). Electricity capacity has almost doubled in the last six years, largely due to imported supply, which was non-existent prior to 1380 1381 (2002) (see Table 7.1). However, on a per capita basis, the electricity generating capacity is well below what it was in 1357 (1978). The present goal of electricity availability set for 1389 (2010) is below 40 kwh per capita (com pared to a present availability, in Tajikistan, for instance, of over 2,200 kwh per capita). Techni cal standards of operations remain antiquated and do not appropriately reflect the new tech nologies or modern safety measures. Economic and Social Development 81 Table 7.1. Electricity supply sources and operating capacity Year Hydro (MW) Thermal (MW) Imported (MW) Other: diesel, micro hydro & renewable (MW) Total supply (MW) 1357 (1978) 259 137 0 0 396 1381 (2002) 141 16 87 0 243 1386 (2007) 262 90 167 133 652 Despite efforts to date, the existing governance arrangements and policy framework for the sector are still insufficient to support a market based energy system. Obstacles to making the desired transition include: Dispersed institutional support: Seven Min istries include energy as part of their portfolio. Lack of regulatory framework: No legal or regulatory regime is in place to guide sector operations (although an energy law is under preparation). There are no legal professionals trained in commercial energy law or regulatory processes. No divestment or meaningful commerciali zation of state energy assets: Govern ment 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 budg etary units operate with considerable government support but 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 taxa tion applied to sector activities is, under present arrangements, a major drain on government resources. Inefficient and wasteful use of electricity: Under-priced electricity is used ineffi ciently. Appropriate cost recovery will provide incentives to cut down on this wasteful use. Limited opportunities for private participa tion: 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 sup port and monitor investments. Potential investors cite unclear policies and cor ruption as a barrier to investment. In a well developed market, the majority of services now provided by the 11 SOE SPELL OUT 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 poten tial given appropriate regulatory over sight, include independent power pro duction and oil and gas concessions. In the Provincial Development Plan consulta tions, a number of issues were frequently high lighted across a range of sectors and in a major ity of provinces, and therefore emerge as over arching development priorities. Access to elec tricity, both for domestic use through the ex tension of availability of electricity to more re mote villages, and for productive purposes such as factories and businesses, was men tioned in 80 percent of the PDPs. Policy framework: sector strategy Substantial new investment is required to in crease domestic generating capacity and ensure adequate supplies. A central thrust in the strategy will be increased investment in infra structure. The three key hydro power projects (described below) will substantially add to ge nerating capacity, but also support agricultural growth and improved management of water resources. Substantial additional private in vestment 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 invest ments will be established. Improved procure ment, accounting functions, contracting and reporting at the government level will be put in place. Afghanistan National Development Strategy (ANDS) 82 A new market-oriented paradigm will be de veloped, supported by significant institutional strengthening and capacity development. As the energy line Ministries shift over time from operating as production-based entities to be coming policy-making regulatory agencies, staff capacity and in-house functions will be reoriented to market practices. The key pro grams of the sector are: (i) efficient operation of infrastructure; (ii) market based sector govern ance; (iii) rural electrification and renewable energy; (iv) expansion of supplies, (for addi tional 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 pri ority to the implementation of four major infrastructure projects that will substan tially increase power supplies, but also contribute to expanded irrigation and ru ral development: (i) the Kokcha-e-Ulia Hydro Power Plant, which will generate a total of 1,900 MW and add 57,000 hec tares of irrigated agricultural land; (ii) the Baghdara Hydro Power Plant, which will generate 210 MW, benefit more than 105,000 families, and increase 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 rehabilita tion and upgrading of Kabul and other key infrastructure areas (i.e., distribution –lines, substations, meters); the devel opment of the North East Power System (NEPS), to be followed by the South East Power System (SEPS), Western and East ern Power Systems the development of the Sheberghan gas and oil fields; con struction of new transmission and related distribution for power imports; installa tion 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 Commis sion 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 pub lic information will be essential for im proved Government coordination in the energy sector. Related or duplicated en ergy functions at various Ministries will be consolidated, and appropriate line Ministry terms of references will be in troduced. It is essential that the donors themselves improve the way in which they engage with the energy sector. At present there are 25 donors engaged in the sector; in addition there are 15 differ ent US agencies. Afghan counterpart re sources are limited and stretched to the limit. Improved governance will mobilize investment, mitigate corrupt practices and improve the technical quality of en ergy supply. A viable legal and regula tory framework will be established that includes the development of market based power purchase and production sharing agreements. Legal reform and regulatory standards. Final ization of primary legislative and regula tory 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 finan cial standards for operation in place; these urgently need to be developed along with staff capacity to implement them. The Government is working with the international community to draft a revised Hydrocarbons Law and mining and hydrocarbons regulations). Drafting of regulation for hydrocarbons is under way in the strengthening of the survey ing and inspection functions. Greater fo cus on grid and off-grid regulation of electricity and on liquid fuels is also re quired. Commercialization and/or divestiture of state and “quasi-state” assets: The Gov ernment will assess its sector assets and develop a plan for liquidation, restruc turing and commercialization or sale. In particular the Government will provide more support for the corporatization and commercialization of national power op erations. Both commercialization of the Economic and Social Development 83 state power company DABM and an in crease in efficiency will require the intro duction of international accounting and procurement practices. Improve the enabling environment for pri vate 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 pri vate sector to finance and operate these assets will be important. In most in stances no local capacity is in place to support these market operations and pri vate investments. A market-friendly enabling environment to facilitate private investment must be developed that is both sufficiently flexible to entice private investment and highly effective in moni toring investments to safeguard Afghan resources, workers, consumers and the environment. The ANDS energy sector strategy calls for the establishment of a sector regulator, who will adopt a trans parent licensing regime and establish conditions that will attract private in vestment 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 to include 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) ex ploration and exploitation of coal, natural gas and oil; (v) installation and operation of rural energy services. Expanded Public Power Grid: The Govern ment is committed to improving energy access for people across the country. A high priority in this area is the rehabilita tion and expansion of grid-supplied power, including investment in new gen eration, distribution and transmission. The Government is also implementing a series of large and small infrastructure improvements, including generation, transmission and improved distribution of electricity throughout the country. Fu ture actions include: (i) rehabilitation and upgrading of Kabul and other key infra structure areas (i.e., distribution-lines, substations, meters); (ii) development of the North East Power System (NEPS); to be followed by the South East Power Sys tem (SEPS), Western and Eastern Power Systems; (iii) construction of new trans mission and related distribution for power imports. Installation of a dispatch and control system as well as a reactive power system will be underway by end 1387 (2008). These ongoing donor funded activities to expand the power gr ids will be adjusted to make them com patible with the move to a more market based system. Increase access to rural energy services: Mi cro-hydro, solar, waste and even small diesel power and energy generating sources will be promoted to improve ru ral energy access. Commercial operation of these services will be encouraged and technical standards will be established to ensure cost-recovery, sustainability and safety. High levels of cost recovery will avoid pre-empting potentially more effi cient provision 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 en courage the development of these activi ties, or at least not undermine their vi ability with subsidized public sector ac tivities. Increase Regional Cooperation and Trade in Energy Products: Afghanistan is geo graphically well positioned to import additional resources from neighboring countries. Afghanistan joined as a full member the Central Asia South Asia (CASA) 1300mw project in Month 1386 (November 2007). Power purchase agreements (PPA) are being finalized for regular power imports from neighboring countries and new PPAs are being nego tiated for increased power imports. Af ghanistan is also participating in ongoing planning for a Turkmenistan Afghanistan-Pakistan-India (TAPI) natu ral gas pipeline. A number of regional energy trade and import arrangements have commenced and will contribute to long-term energy security. Afghanistan National Development Strategy (ANDS) 84 Poverty Reduction Initiatives: The energy sector will provide essential power sup plies needed for private sector develop ment, job creation and poverty reduction. Investments in the sector will create di rect 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 lo cal 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 stan dards will be established to ensure cost recovery, sustainability and safety. A number of private firms are currently in volved in the development of off-grid power supplies based on wind or solar power and efforts will be made to en courage the development of these activi ties. Environmental Protection: The environ mental implications of the expansion of the energy sector will be fully accounted for. Some of hese will be positive, such as reduced pressure for deforestation, while others may be potentially negative, such as increased green house gas emis sions. There will be scope for using wind and solar energy, particularly in areas distant from regional grids, and the rela tive benefits of this type of energy should be recognized in policies to support their use. The energy sector strategy combines donor supported efforts to expand public sector op erations at the same time as it lays the ground work for much greater involvement by 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 of ANDS (for de tails refer to ANDS Volume II). Integration of the Provincial Devel opment Plans (PDPs) Access to electricity, both for domestic use through the extension of electricity to remote villages, and for factory and business use was cited in 80 percent of the Provincial Develop ment Plans. PDPs in eight provinces, princi pally in the center, south and southeast of the country report progress in access to electricity since 1384 (2005); provinces in the center and south, however, frequently mentioned the need for improvement. Little mention or under standing of non-electricity use of energy, i.e., for heating, fuel for small equipment, vehicle fuel, etc. was cited. 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 in vestment in the 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 for the wa ter sector is to manage and develop the coun try’s water resources so as to reduce poverty, increase sustainable economic and social de velopment, improve the quality of life for all Afghans and ensure an adequate supply of wa ter for future generations. There are significant water resources in Af ghanistan. Average annual precipitation is equivalent to about 165,000 million m³, yielding an annual surface runoff water volume of about 57,000 million m³. This amounts to ap proximately 2,280 m³/year per capita. This would be an adequate amount, except that pre cipitation is primarily in the form of snowfall and without adequate catchments systems the resulting snowmelt runs off in a matter of a few months; precipitation is also not evenly dis Economic and Social Development 85 tributed geographically. Supply therefore de pends on groundwater extraction that is not sustainable; an insignificant amount of surface water storage exists currently. Deep water drilling without adequate investment in re charge basins or storage structures degrades the aquifers on which most traditional irriga tion 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 Wa ter Management commit both the Government and the donors to the development of sustain able water resource management strategies covering irrigation and drinking water supply; irrigation investments will result in at least 30 percent of the water supply coming from large waterworks by end-1389 (2010). Other Com pact Benchmarks under Urban Development, Environment, Agriculture and Rural Develop ment 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 ur ban 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 irri gation, 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 1389 (2010). Millennium Development Goals: The MDGs state that: “Access to water and sanita tion, 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 1385 (2006).43 Target 10 of the MDGs is to halve by 1399 (2020) the proportion of people without sus tainable access to safe drinking water and en sure environmental sustainability. The sector strategy incorporates feedback and comments from the sub-national consultations. Access to clean drinking water has been identi fied 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 infrastruc ture, 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 in six provinces highlighted the need for access to safe drinking water in public institu tions such as schools. Current situation in the sector Given the importance of water resources, the Government has made improved water man agement a high priority. Steps are being taken to address shortcomings in governance as well as to meet 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 Secre tariat 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. 43 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. Afghanistan National Development Strategy (ANDS) 86 Steps have been undertaken to re-organize water resource management on the basis of an Integrated Water Resource Man agement System based on the five main river basins. Development will still be planned and implemented centrally, but in the future individual river basin or ganizations or authorities will be estab lished. Feasibility studies have been completed or are underway for small, medium and large water infrastructure projects. The rehabilitation and mod ernization of hydrological stations have been started. Research and modeling of the availability of allocation of safe drink ing water supplies in Kabul are being developed. Significant progress has been made in pro viding increased access to safe drinking water and sanitation. The Afghanistan Urban Water Supply and Sewerage Cor poration (AUWSSC) has been estab lished. Some 80 water supply and sanita tion projects have been implemented around the country. Research and as sessment of the underground water re sources available to Kabul is ongoing. The urban water supply systems will be transformed into quasi-public agencies. Two million urban residents (31 percent) have benefited from investments in wa ter supply; 12 percent have benefited from investment in sanitation in major cities between 1381 (2002) and 1386 (2007). About 35,000 water points, 59 networks. 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 activi ties in the country. Approximately a third of the provinces reported some im provement in access to clean drinking water in the course of the ANDS consul tative process. 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 receives water from engineered systems and large works, the remainder through traditional irrigation methods. Of some 2,100 reha bilitation projects, approximately 1,200 have been completed and placed back into commercial service. The Govern ment will continue to work with the mir abs44 that manage these systems. Despite some progress in establishing better governance in the sector and in rehabilitating existing assets, a lot more needs to be done. Prior to 1358 (1979), some 3.3 million hectares were cultivated under various irrigation meth ods, compared to the 1.8 million hectares now being irrigated. The remaining amount em ploys traditional irrigation methods. Out of 7.9 million hectares of arable land, 5.3 million hec tares 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, meteoro logical, geo-technical and water quality data. There is a shortage of the infrastructure and equipment needed to efficiently conserve and utilize seasonal run-off. Data on ground water resources is limited, at the same time as there are indications that un-regulated deep well drilling may be depleting aquifers essential to water supplies and traditional irrigation sys tems (Karezes and springs). Economic mecha nisms to regulate water use and investments for water supply, sanitary systems, irrigation, and hydropower generation are inadequate. Unclear delineation of responsibilities among Ministries complicates planning. Some donors are focused on emergency projects that are not integrated into the larger 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 wa ter supply master plan with good information on water balances, that is, supply versus de mand for water for drinking, irrigation, hydro power and environmental purposes is not yet available. There is a pressing need to enhance the ground water resource recharge capacity. 44 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. Economic and Social Development 87 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 Sec tor Strategy. Access to clean drinking water has been identified as a priority in the Provin cial Development Plan in all provinces. Par ticipants generally voiced concern that unsafe drinking water is a cause of disease, and the provision of safe drinking water is seen to be as much an issue of public health as of infrastruc ture, rural and urban development. In over a quarter of PDPs, the need for access to clean drinking water is specifically raised by women, who are often responsible for 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. Across the country around a third of the provinces spread report some improvement in access to clean drinking water since 1384 (2005). Policy framework: sector strategy For the immediate future, the Government will play the dominant role in setting policy priori ties and decisions pertaining to development and management of water resources at the na tional level. Acting through its operating enti ties, the Government, can influence the neces sary international water bodies. This extends to coverage provided by policy frameworks, appropriate legislation, and institutional struc tures under which water management can over time be devolved to the river basin and/or riv er sub-basin levels. Groundwater, on the other hand, seldom has aquifer boundaries coincid ing with river basins. Management of groundwater aquifers may necessitate collabo ration with special inter-basin entities estab lished for that purpose. (For additional details refer to ANDS Volume II). Towards an Integrated Water Re source Management System (IWRM) The water sector is extremely diverse. Respon sibility for supply management and use of wa ter is distributed among a number of line Min istries. The sector’s governance mechanisms (organizational structure, policies and legisla tion) are in the process of reformulation and implementation. Adoption and implementa tion of an effective IWRM program will take into consideration all activities and develop ment requirements influencing water re sources. This will include sociological and eco logical considerations, in addition to water supply, irrigation, hydroelectric power, sanita tion, land use, fisheries, and forestry. The pro gram 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 ba sins. 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, ag riculture, health, education, and power sectors, along with counter narcotics programs, private sector development programs) will contribute to sustainable development and poverty reduc tion. 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 me chanisms regulating water use and to attract investment to rehabilitate and construct irriga tion, water supply and sanitary systems, as well as hydropower generation. Essential leg islation and a new policy framework governing the water sector have been prepared. The sec tor is in the process of transitioning from a pro ject-by-project approach to a sector-wide ap proach, using an integrated water resources management (IWRM) system. Improved gov ernance 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-by project approach for continued investments in rehabilitation of existing systems. New pro Afghanistan National Development Strategy (ANDS) 88 jects need to be assessed relative to the returns from rehabilitation efforts and other sectors. Responsibility for a number of water related activities are distributed among a number of line Ministries and agencies. Each of these enti ties have prepared sector specific strategies fo cusing on their particular sector mandate, often underemphasizing water related programs and/or activities. Development of a water sec tor strategy therefore requires coordinating all relevant water sub-sector strategies being ad ministered 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) envi ronmental 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, en listing 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 wa ter sector. Under this policy framework, the Water Law of 1991 will be revised; water re sources 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 wa ter supply and sanitation policies and institu tional development will be implemented; ac cess to safe drinking water and improved drainage and sanitation systems will be estab lished; and key groundwater and hydropower development plans and policies will be estab lished. For the immediate future, the Government will play the dominant role in setting policy priori ties and decisions pertaining to the develop ment and management of water resources. This extends to policies, legislation, and institu tions under which water management can in time be devolved to the river basin and/or riv er sub-basin levels. (Management of ground water aquifers may sometime necessitate col laboration with special inter-basin entities es tablished for that purpose.) Ongoing and planned water sector projects have been struc tured into eight programs: (i) Institutional Set up and Capacity Building; (ii) National Water Resources Development; (iii) National River Basin Management; (iv) Irrigation Rehabilita tion; (v) Urban Water Supply and Sanitation; (vi) Rural Water Supply and Sanitation; (vii) Riverbank Protection; and (viii) Agriculture “Food Security for All.” (For details on all of these programs refer to ANDS volume II.) The highest priority programs are: Institutional Building and Capacity Devel opment Program: Activities in this pro gram focus on the institutional and hu man capacity development of water re sources management as well as on infra structure development at national, river basin and sub-basin levels. These activi ties have been combined into a compre hensive program to enhance cooperation between projects and avoid duplication of efforts. National Water Resources Development Program: Under the Water Law the Min istry of Energy and Water is responsible for the preparation of a national water resources development plan. This plan will cover the development of water re sources for the social, environmental and economic needs of the country as well as: (i) elaborate river basin development and management plans and foster Ministry and water users’ capacity for on-farm and off-farm water management; (ii) prepare for discussions on trans boundary water issues with some neighbor countries; (iii) support analyti cal capacity and research; (iv) enable pri vate investments in the water sector; and (v) properly plan and implement infra structure for rain and flood water har vesting, supplementary irrigation, groundwater recharge and soil stabiliza tion. As a first step in the development of this national development plan, a Mas ter Plan for the Kabul River Basin has been prepared. In addition, the Ministry has prepared a list of water resources de Economic and Social Development 89 velopment projects in the five river ba sins. Irrigation Rehabilitation Program: Several projects to address the immediate needs in irrigation infrastructure have been de veloped.45 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 emer gency irrigation rehabilitation program for the period 1387 (2008) to 1392 (2013) include the rehabilitation of the National Hydrological Stations to facilitate na tional hydrological surveys to aid in planning and building irrigation infra structure; and the rehabilitation of na tionwide small, medium and large tradi tional irrigation schemes, such as the Emergency Irrigation Rehabilitation Pro ject, a three year country-wide project for the rehabilitation of infrastructure and capacity building. 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 emer gency water infrastructure rehabilitation and income generation needs as well as the long term goal of sustainable development of insti tutions and creation of new multifunctional infrastructure. The development of the country’s water re sources will continue to be heavily influenced by programs and projects implemented by do nors. It is essential that these activities be effec tively coordinated and aligned with ANDS pri orities. SCWAM will undertake a leadership role among Government organizations in pro viding coordination with the international community. The ANDS water sector goals are achievable with the implementation of an effec tive 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. 45 See the discussion on hydro power projects for the energy sector. 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 expec tancy increased as a result of greater ac cess to clean water. (For more detailed in formation 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 agri culture and rural development is to ensure the social, economic and political well-being of ru ral communities, especially poor and vulner able people, while stimulating the integration of rural communities within the national econ omy. This will require the transformation of agricultural production so that it is more pro ductive and commercially oriented and an ex pansion of off-farm employment opportunities to increase incomes among the rural popula tion. This sector strategy articulates a road map for the way forward for poverty reduction through economic regeneration. The central focus is on supporting the poorest and most vulnerable segments of rural society while 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 the estab lishment of a safe and secure environment. The Afghanistan Compact Benchmarks related to agriculture and rural development call for measurable improvements in: Afghanistan National Development Strategy (ANDS) 90 The institutional, regulatory and incentive framework necessary to increase produc tion and productivity will be established to create an enabling environment for le gal agriculture and agriculture-based ru ral industries. Public investment in agriculture. Particular consideration will be given to perennial horticulture, animal health, and food se curity through the institution of special ized support agencies and financial ser vice delivery mechanisms design to sup port farmers’ associations, brand national products, disseminate timely price and weather-related information and statis tics, provide strategic research and tech nical assistance, and secure access to irri gation and water management systems. [Compact benchmark 6.1] Assistance to and rehabilitation and integra tion of refugees and internally displaced persons. Assistance to chronically poor female-headed households, including improved em ployment rates. Other major Government goals relating to agri culture and rural development should be noted, including: Creation of the necessary policy and regula tory framework to support the estab lishment of micro, small and medium size rural enterprises; Creation of an enabling environment for sus tainable management and use of Af ghanistan’s natural resources; Access to safe drinking water will be ex tended to 90 percent of villages, and sani tation to 50 percent; Road connectivity will reach 40 percent of all villages. Forty-seven 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 popula tion, particularly in the most remote areas. The years of turmoil left much of the country’s agri culture and rural infrastructure in a serious state of disrepair and led to a significant reduc tion of cultivatable land and degradation of the environment. Between 1357 (1978) and 1383 (2004), agricultural production declined by an average of 3.5 percent a year; 50 percent of the livestock herd was lost between 1376 (1997) and 1383 (2004). Recent performance in the sector has been posi tive. Measurable progress has been achieved since 1382 (2003) in improving rural liveli hoods. Through a variety programs, almost 20,000 km of rural access roads (i.e., all weath er, village-to-village and village-to-district cen ter 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 sanita tion facilities have been provided. More than 336,000 households have benefited from im proved access to financial services. Some 18,000 CDCs have been established and are implementing community-led development projects. The contribution of agriculture to GDP in creased from 48 percent in 1385 (2006) to 53 percent in 1386 (2007), although the longer term 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 1386 (2007) compared to 3.7 million metric tons in 1381 (2002); 0.9 million metric tons of horticulture and industrial crops produced in 1386 (2007) compared to 0.4 mil lion metric tons in 1381 (2002); 3.2 million ani mals 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 coop eratives and farmers organizations have been created and strengthened; and 20,000 coopera tive members trained. However, many significant improvements are still to be made. With a few notable exceptions, all rural citizens are poor in relative and abso lute terms, lacking both physical and social as sets. Eighty percent of the Afghan population lives in rural areas;, most are engaged in agri Economic and Social Development 91 culture to some degree, although many are also heavily engaged in processing, trading or mar keting activities of agricultural products; 12-15 percent of the country’s total land area is suit able 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 seasonally limited or inaccessible roads (the average distance to the nearest road is 4.6 km); just 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 per cent 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 portends continued decline in per capita levels of agricultural re sources unless major investments are made in improved water management. Ongoing instability, widespread poverty and lack of governance resulted in a dramatic up surge in opium poppy cultivation, involving 3.3 million people (14 percent of the popula tion). Poppy production is now highly concen trated in five southern and eastern provinces, whereas production in the other 29 provinces has fallen and is half 1383 (2004) levels. Further, the unstable security situation coupled with capacity constraints presents major obsta cles 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 mon itor projects for quality assurance and financial control purposes. These constraints affect the pace, cost and quality of development activi ties. Most farmers are engaged in subsistence or near-subsistence agriculture, and many farm ing families lack food security because of risky livelihoods combined in many cases with chronic debt. Further, many rural households are involved in down-stream agricultural ac tivities, including processing, transporting and marketing. As a result, the country’s vulner ability to natural disasters and food shortages is high. The ability to engage in agricultural pursuits is central to improving the wellbeing of the rural poor. Limited coordination between Ministries and between the Government and the international community has impeded progress. Govern ment funds have been channeled through high ly centralized Ministries, with many national programs and donor-funded projects working independently of each other. The role of pro vincial administration units has been and re mains unclear, especially in the areas of eco nomic planning, budget execution and service delivery. Provincial governments have limited authority, budgetary resources or technical skills to facilitate development. Ministries that deliver services to the rural population are still struggling with the legal structures of past ad ministrations. While over-centralization of ad ministrative processes has impeded the timely and effective delivery of services to local com munities. 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 strong enabling environment for the rural economy and working to address the needs and articulated priorities of the rural popula tion. This long term effort requires a consid ered 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 re quires a considered and cohesive policy framework across Ministries and sectors. The following are its key components: Comprehensive and strategically cohesive poverty reduction programs. Public/Private sector responsibilities. Assurance of food security. The restoration and expansion of Afghani stan’s licit economy through the promo tion of livelihoods free from dependency on poppy cultivation. Land tenure security. Afghanistan National Development Strategy (ANDS) 92 Assistance to farmers to increase production and productivity. Environmental protection and assistance to communities to manage and protect Af ghanistan’s natural resource base for sus tainable growth. Improvements in agricultural and rural physical infrastructure and irrigation sys tems to provide services that 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 disas ters. The strategy focuses on five thematic areas of programming, loosely sequenced according to 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: Development of a comprehensive set of pro jects and programs—the Comprehensive Agriculture Rural Development Pro gram—designed to improve rural liveli hoods and reduce rural poverty. Support of commercialized agriculture, lead ing to an improvement in agricultural productivity throughout the rural econ omy. 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 seg ments of rural society. CARD represents the Government’s approach to providing diversi fied income sources, through income support, direct provision of assets, skills training and market opportunities, and is crucial to provid ing alternatives to narcotics. Interventions will be targeted and tailored to specific regions and groups. In implementing CARD, the Government will ensure that efforts to promote activity in the sector will stimulate and not displace sponta neous viable private sector development. The devolution of authority will be undertaken over a number of years to ensure the capacities at all existing levels of Government. The Gov ernment will work to reconcile the introduction of sub-national governance measures down to the village level, incorporating existing com munity organizations. In particular, the role between proposed Village Councils and the existing Community Development Councils set up under the National Solidarity Program will be clarified. Sub-national governance structures will also be strengthened in line with the new ly-formed Independent Directorate for Local Governance. The Government will work with NGOs, civil society and the international community on the prioritization of the sub-components of the overall CARD program in order to develop the funding requirements within a log frame ma trix, identifying what will be done by when. This will allow a cooperative effort by the in ternational community and the Government to reallocate resources towards those efforts that appear most effective in improving rural liveli hoods. Ongoing monitoring and evaluation will be essential to address identified con straints and successes and alter the programs as necessary. The principal program among the 15 programs of CARD is the National Solidarity Pro gram (NSP), the Government’s main commu nity development program. Implemented by the Community Development Councils (CDC), more than 50,000 projects benefit approxi mately two 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 local Economic and Social Development 93 ized small scale activities of importance to rural communities, such as roads, irrigation, water wells and schools. It is a successful and popu lar program used to empower these communi ties. It is a major contributor to meeting a number of the Compact benchmarks and is a successful example of country-wide Govern ment, donor and NGO coordination. It estab lishes the framework for future programs that will provide greater control to local communi ties, including the private sector, over devel opment funds. The other 14 programs of the CARD include: The National Food Security Program, which will promote and implement food secu rity opportunities at the household level, benefiting over 1.2 million households by 2010. This will decrease the malnour ishment rate from 57 percent to 35 per cent. A key component of this program is support to improve local governance in 38,000 villages. The National Area Based Development Program, which will aid all District De velopment Assemblies in developing dis trict level development plans that will in turn support comprehensive rural devel opment and regeneration. The Horticulture Program, which will sup port horticulture development and sup ply 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 improve live stock production by importing purebred sheep, establishing commercial dairy plants and poultry units for women farmers, and by increasing productivity and output. The National Rural Access Program will support rural road construction and re habilitation, providing all weather road access to 65 percent of villages by 1392 (2013). The Rural Water Supply and Sanitation Program will assure that by 1392 (2013) 98 percent of all 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 irriga tion infrastructure on an additional 105,000 hectares of newly irrigated land by 1397 (2018) and improve on farm wa ter use efficiency. The National Resource Program will estab lish National Resource Management committees and develop resource man agement plans for forests, rangeland, wildlife and desertification control. The National Surveillance System Project will assist MRRD and CSO in the devel opment of a national poverty, vulnerabil ity and food security surveillance system, enabling the government to provide credible and timely information to all government and non-government agen cies. 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 en terprises 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 es tablish a research and extension capabil ity; provide access to credit, support farmers organization and private sector market development through coopera tives, leading to agricultural growth and diversification. The Emergency Response System will pro vide a mechanism for humanitarian and disaster response that will provide emer gency assistance, assure access to areas affected by snow and disasters and pro tect vulnerable people and assets. The Capacity Building Program will provide the institutional and organizational ca pacity at the national, provincial and dis trict levels needed to successfully imple ment the other CARD programs. (See ANDS Volume Two and Appendix “Na Afghanistan National Development Strategy (ANDS) 94 tional 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 infrastruc ture, halting commercial activities. There has been limited recovery since 1381 (2002). This includes ongoing efforts to increase the interna tional community’s, procurement of agricul tural products from local producers. including ISAF, promoting large scale production and supply chain processes. The Agriculture and Rural Development Zones (ARDZ) program is the Government’s ap proach to expanding commercial activities and increasing agricultural productivity. This is necessary to increasing incomes and employ ment opportunities in rural areas and to devel oping potential agro-based export potential. The ARDZ recognizes that geographic priori ties have to be set in support of the develop ment of commercial agriculture. These geo graphic priorities will be used to target infra structure, utilities and other support by various Ministries. The Government will release pub licly 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 min eral resources and the competitive bidding for the rights to use the telecommunications spec trum. Further, the Government will continue to investigate, implement and monitor key steps necessary to increase financial and tech nical support so that private firms are able to expand operations. This will ensure that the process of transforming underutilized state land into commercially viable agro-processing enterprises will be as fast and efficient as pos sible. The Government’s objective is to largely rely on private investment and public sector sup port to transform agriculture in some well de fined zones where the conditions for growth are most favorable and high value added commercial agricultural activities can flourish. This requires the integration and upgrading of existing private and public sector networks and investing in essential infrastructure projects that will shorten trade distances, reduce costs and increase productivity, thereby 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 agricul tural zones into more remote rural areas. Ensure that rural development activities are national in scope and linked to the agri cultural growth zone plans. Mobilize private sector investment and op erations as the key element in the success of the agricultural growth zone initiative. To date, five distinct agricultural growth zones have been identified: A Northwestern Zone centered on the pri mary market town of Mazar-i-Sharif that includes 10 secondary market towns and is well positioned to take advantage of trade linkages with the Central Asian Republics. A Northeastern Zone centered on the pri mary market town of Kunduz that in cludes seven secondary market towns and which, with the new bridge at Shirk han, is well positioned for trade with Ta jikistan and, with good road connections to Urumqi, with China; A Central Zone centered on the primary market town of Kabul that includes thir teen secondary towns and which is linked with the important market center in Jalalabad and the regional market in Peshawar, Pakistan; A Southeastern Zone centered on the pri mary market town of Kandahar and which includes four secondary towns (one of which is the important agricul tural production town in Lashkargah) and which is linked to the regional mar ket in Quetta, Pakistan; and Economic and Social Development 95 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 be gun 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 to establish a program implementation plan. This unit will ensure that critical infrastructure, such as power, water, transportation links, telecom munications, financial services and vocational programs, is 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 expected Agriculture and Rural Develop ment outcomes are: Strengthened Local Governance: Function ing formal and informal local govern ance, including social and economic ac tivities implemented and maintained by communities that contribute to human capital development and improved live lihoods. Improved management of local natural resources, including clarifying the legal status of natural resources. Clarifying, roles of both communities and institutions in governance and man agement will help ensure food security, contribute to poverty alleviation and im prove 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 Pro ductivity: Public and private sector part nerships strengthen horticulture indus try. Increased livestock production and productivity will improve food security and incomes, leading to a reduction of il licit agriculture and a decline in livestock imports. Agriculture diversification through various value-added activities, research, extension, access to credit, mar ket development, the establishment and strengthening of farmers’ organizations, private sector development and trainings (See ANDS Volume Two for more de tails). Provision, and maintenance of Agriculture and Rural Infrastructure: Successful crop pro duction requires technical irrigation manage ment (e.g., availability of irrigation water sup ply, improved water efficiency and productiv ity, 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 irri gation management at basin and sub-basin lev els, 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 connec tivity 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 em ployment generation and help integrate Af ghanistan into the global economy. A high pri ority is to have in place an efficient and viable road transportation network for achieving eco nomic growth and poverty reduction, particu larly in rural areas. In the 1960s and 1970s, a large portion of the “ring road” and connecting roads to neighbor ing countries were constructed. This network was largely destroyed during three decades of war and political strife. Over the last six years, the Government has given high priority to the rehabilitation and extension of this system. Due to the significant impact of the road sys tem on economic activity and on poverty re duction, this will continue to be a high priority under the ANDS strategy. The Transport Sector Strategy will achieve the following targets established in the Afghani stan Compact: (i) Roads: Afghanistan will have Afghanistan National Development Strategy (ANDS) 96 a fully upgraded and maintained ring road, as well as roads connecting the ring road to neighboring countries by end-1387 (2008) and a fiscally sustainable system for road mainte nance; (ii) Air Transport: By end-1389 (2010), Kabul International Airport and Herat Airport will achieve full International Civil Aviation Organization compliance; Mazar-i-Sharif, Jala labad 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 competi tive with international market standards and rates. (iii) Regional Cooperation: By end-1389 (2010), Afghanistan and its neighbors will achieve lower transit times through Afghani stan by means of cooperative border manage ment and other multilateral or bilateral trade and transit agreements. Current situation in the sector Since 1380 (2001), significant achievements have been made in the transport sector as do nors contributed over $3.3 billion to rebuilding the transport system between 1381 (2002) and 1386 (2007). Some of the main achievements include: An estimated 12,200 kilometers of roads have been rehabilitated, improved or built, in cluding segments of the ring road sys tem, national highways, provincial roads and rural roads. Kabul International Airport has been ex panded 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, ex tensive rehabilitation and expansion. In Saratan 1386 (July 2007), trade and transit agreements with Uzbekistan and Turk menistan were reached. A transit agree ment is currently being drafted with Ta jikistan. These agreements will help re duce transit time for shippers moving goods trans-nationally. Automated customs and data systems (ASYCUDA) have been initiated that will reduce transit times and encourage pro mote trade, and aid in tracking customs collections. Much remains to be done to expand and im prove 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 rehabili tation urgently needs to be put into place and made operational. Roads that have been reconstructed will begin to deterio rate unless maintenance is done in a sys tematic way. Approximately 85 percent of the total 130,000 km road network (some 43,000 km of na tional, regional, urban and provincial roads and an estimated 87,000 km of ru ral 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 in frastructure 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 Trans port Association (IATA). While there has been private entry into the civil aviation sector and regional connections have ex panded, much must still be done to cre ate a truly “open skies” regulatory framework that both encourages new en try but maintains international standards for safety. The country has no internal rail links, but re lies on rail heads in neighboring coun tries for trade. The railhead transfer sta tions are inefficient, increasing the costs of rail transportation. Mines cannot be developed and potential resources can not be explored and utilized without having railway links to neighboring and regional countries. Transport sector Ministries and institutions are weak in human capacity and organi zation to carry out budgeting, procure ment and contract administration or to adequately manage transport-related as sets. The institutions lack the necessary regulatory and enforcement frameworks and personnel management systems. Economic and Social Development 97 There are overlapping ministerial re sponsibilities in the sector. There is a lack of coordination and communication within the transport sector governance institutions and with other sectors. (For details, refer to ANDS Volume II.) The Transport Sector Strategy incorporates feedback, proposed projects and comments that 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 prior ity to rehabilitate a badly damaged road sys tem. This includes: (i) completion of a fully upgraded and maintained ring road and con nector roads to neighboring countries; (ii) im proving 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.46 Bet ter rural roads will improve market access and opportunities for rural households. The actual allocation of resources among these three areas of planned activity will depend on the esti mated rates of return from analysis of concrete proposals put forward for funding by the in ternational community or by the Ministries in volved 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 as sure that projects are properly designed to ob tain the highest returns and have the greatest impact on poverty reduction goals. Careful consideration will be given to increasing em ployment opportunities, and to assure that the local resources or funds channeled through local communities are effectively used to main tain 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 Roads; (iii) Urban Transport; (iv) Civil Aviation; (v) Transport Sector Main 46 More detailed information on road construction projects can be found in the Transportation Sector Strategy and in the tenance (vi) Pubic Transport and (vii) Railway Program. (For further details refer to ANDS Volume II.) In addition to the indicated work on the road transportation system, many additional areas need to be addressed in order to increase re turns from an improved network and to im prove other aspects of the total transportation system. These include: Transportation Services and Trade Facilita tion: Improved transportation services, customs, and logistics management will require new investment and coordinated multilateral efforts, including work with the Economic Cooperation Trade Agree ment (ECOTA), the Central Asian Re gional Economic Cooperation (CAREC), and the Shanghai Cooperation Organiza tion. 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, in cluding establishing a new Civil Aviation Authority to promote air transport in a competitive environment. A regulatory framework will be introduced to encour age private investment under an “open skies” policy. Regional Transportation and Transit: Re gional 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 invest ments include the rail links that will be constructed under the agreement for de veloping the Aynak copper fields in Logar province and the energy transmis sion lines developed under transit ar rangements. Urban Road Networks: Under the urban sec tor strategy, much greater authority and responsibility is being given to munici Afghanistan National Development Strategy (ANDS) 98 palities. The development of the national and regional road networks will be coor dinated with municipal authorities with responsibilities for the urban road net works. Municipal transportation man agement will be strengthened to improve urban road quality, road network main tenance, road network planning, and transportation facilities and services. Railways: The Government will pursue the Afghanistan Railway Project, to include 1,824 km of rail links to connect Kabul in the East with Islam Qala in the West via Kandahar and Herat. The Government will also undertake feasibility studies to assess the economic viability of railway links with neighboring countries. Aviation: The Government will seek in vestment in a new international airport in the Kabul area to provide Afghanistan with a modern international airport and imple ment 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: The Government will use an integrated par ticipatory regional development ap proach in rural areas, combining im proved roads with agriculture, water, education, health, and counter-narcotics initiatives to ensure that the poor derive the benefit from roads. Someone will undertake transport development through investments in secondary and rural roads to significantly increase pro vincial and village access to the national road system. Expected Outcomes The key expected outcomes of the transport sector strategy are: An efficient and safe road transportation sys tem, through: o improved connectivity throughout Af ghanistan; o lower road user costs; o improved business environment for private sector, creating jobs and reduc ing poverty; o lower accident and fatality rates, measured by personal injuries per mil lion vehicle kilometers; and o reduced journey times due to less con gestion. A viable civil aviation sector that provides ef ficient 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 effi ciency. (For more detailed information refer to Appendixes 3, National Action Plan and 4, Monitoring Matrix.) Information and Communica tions Technology Role of the sector in ANDS The ANDS strategic vision and goal for the In formation and Communication Technology (ICT) sector is to make affordable communica tion services available in every district and vil lage of Afghanistan through an improved envi ronment 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 effec tiveness, efficiency and transparency of the public sector and the provision of social ser vices. All Afghans, men and women alike, will in time be able to access ICT to access informa tion and social services, foster the rebuilding process, increase employment, create a vibrant private sector, reduce poverty and support un derprivileged groups. Economic and Social Development 99 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 vil lages and rural areas should be able to com municate with Kabul, with one another, and with the rest of the world. ICT enables the kind of informal social and economic discourse necessary to strengthen 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-1389 (2010), a national tel ecommunications network will be in place, giving more than 80 percent of Afghans will have access to affordable telecommunications; more than $100 million dollars per year will be generated in public revenues. Current situation in the sector In 1381 (early 2003), Afghanistan had fewer than 15,000 functioning telephone lines, at 0.06 percent, one of the lowest telephone pene tration rates 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 de stroyed. Afghanistan did not have a function ing 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 Mizan 1381 (October 2002), which were immediately posted to one of the first Government websites. This initial broad policy statement was further refined and di vided into two separate policies— one for basic telecom infrastructure and regulatory princi ples, and a second for ICT applications and a vision for the Information Society. These poli cies have remained the basis for reforms under taken over the last five years. The basic princi ples have been given a statutory basis, in the form of the Telecom Law that was promul gated in Qaus 1384 (December 2005). The tele com infrastructure aspects are being imple mented by ATRA, which was established in Jawza 1385 (June 2006). The ICT applications aspects are being implemented via the ICT Council, which was established in Saur 1386 (May 2007). The transparent approach taken to the adop tion of the policies and the consistency of the vision from design to implementation has pro duced rapid results. The fact that most of the existing infrastructure was either antiquated or broken meant that the industry was free to es sentially start again with a clean slate. In 1382 (2003), the obvious choice for personal com munications was wireless. Accepted global standards meant that the equipment was reli able, cheap and could be deployed rapidly. In Saratan 1382 (July 2003), two nationwide mo bile (GSM) networks began operation, follow ing an international competitive tender. The licenses required commercial service to be of fered in Kabul within six months of the effec tive date, with nationwide service within 18 months. Pursuant to the original Telecom Pol icy, these first two licenses were provided a legal “duopoly” for three years. In Mizan 1384 (October 2005) and Saur 1385 (May 2006), two additional nationwide mobile (GSM) licenses were awarded, with identical terms and condi tions. There was immediate strong demand for mobile services, with over 5 million Afghans now having access. The 1382 (2003) ICT sector strategy has been the reference template for subsequent reform policies, procedures and activities. The Tele com Law was promulgated by President Karzai on 28 Qaus 1384 (18 December 2005). The law is compliant with the World Trade Organiza tion Basic Telecom Agreement framework re quirements in that it separates the three basic functions and assigns responsibilities to three independent sector elements, as follows: (i) Pol icy—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. Afghanistan National Development Strategy (ANDS) 100 Figure 7.2. Growth in phone use Despite considerable progress in expanding the use of mobile phones, much more needs to be done to in both the private and public sectors take advantage of the telecommunications rev olution. Impediments to the growth of ICT sector include: Lack of Security is an impediment to con struction and maintenance of ICT infra structure in remote areas. Lack of clear property rights adds to construction times. Government bureaucracy (length of time to make simple decisions) adds time and cost 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 im mediate impact of many internet applica tions, especially limiting the access of women to internet services. The numbers and skills within the 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 cov ered by 1389 (2010). A key component of this effort will be the completion of the Fiber Optic Cable and Copper Cable Network, allowing an expansion of high-speed data services and ex tending 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 1387(2008), and implementation of e Government, e-Commerce, e-Health (telemedi cine) Afghan citizens will be able to more fully participate in the information age by the end of 1389 (2010). For the next five years, MoCIT policies, working through ATRA will also de ploy satellite-based services to the less popu lated areas where personal mobile facilities are too costly. The current program is to reach at least 3,000 villages by 1389 (2010). Plans are also underway to issue new licenses for the provision of fixed wireless access for broad band internet. There will be a $100 million revenue contribu tion to Government revenue by 1389 (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 indus try. The key programs of the ICT sector are: (i) Enabling Environment; (ii) Infrastructure De velopment; (iii) E-Afghanistan; (iv) ICT Liter acy. (For details refer to volume II.) In addition to the investment in the cable network, the pol icy 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 com menced drafting the ICT Law, which will ad Y 1381 Y 1382 Y 1383 Y 1384 Y 1385 Y 1386 Economic and Social Development 101 dress infrastructure and services, including issues such as legal recognition of elec tronic/digital signatures and formation of elec tronic contracts (affecting transactions in both public and private sectors); content regulation; competition regulation; electronic evidence; data privacy protection; consumer protection and rights; domain name registration and regu lation; 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 in ternet service providers; cyber piracy and digi tal rights management; facilitation of e Government and cross border interoperability of e-commerce frameworks affecting trade. The sector priority policy is passage and im plementation of ICT legislation that will create an appropriate environment for further devel opment. MoCIT has commenced drafting the ICT Law. The telecom law addresses the tele com infrastructure and services, but not the content of the services. The ICT law will ad dress issues such as legal recognition of elec tronic/digital signatures and formation of elec tronic 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 regu lation, 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 in ternet service providers, cyber piracy and digi tal rights management, facilitation of e government and cross border interoperability works affecting trade. The ICT Council, through the MoCIT, will work to achieve the following: By end-1387 (2008), actions designed to pro mote transparency and citizen access to public information will be implemented. This will include adopting Rules and Procedures to require all Government in stitutions 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 sys tem inter-operability will be imple mented. This will involve adopting a full set of Rules and Procedures that will govern the competitive procurement and utilization of ICT by all Government in stitutions. An e-Government resource center will be established for the design and implementation of projects. MoCIT will promote private investment for Af ghan Telecom to reduce the financial burden on the Government, and adopt the legal instruments for private invest ment in the sector. Afghan Post offices will be modernized using ICT to ensure reliable collection and distribution of mail. The infrastructure of mobile net works will be adopted to enable mobile commerce, meaning the use of phones to transfer funds and conduct other finan cial transactions (pay utility bills and taxes, make retail purchases). MoCIT will submit draft ICT legislation govern ing 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 frame work for private ICT training centers will be drafted in cooperation with Ministry of Education. MoCIT will have estab lished an IT Training center in all provin cial capitals where security permits. By end-1388 (2009), further efforts will be made to reduce corruption by reviewing all Government services and making rec ommendations for the adoption of ICT to streamline and automate (for example, customs processing, procurement and li censing). An ICT Village will be established in Kabul, to 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-1389 (2010), the ICT sector will con tribute five billion Afs ($100 million) an nually to the treasury by broadening the tax base (attracting additional investors to the market, rather than over burdening the existing ones). ATRA will Afghanistan National Development Strategy (ANDS) 102 foster a transparent legal-regulatory re gime 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-1397 (2018), all pupils should be digi tally literate by the time they leave school. Digital literacy will be adopted as one of the basic skills of all young Af ghans. 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 Net work (DCN) infrastructure. MoCIT has also worked with National Assembly to reach all communities. The Ministry has furthermore conducted planning sessions by bringing to gether 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 financial support from the Telecom Development Fund (TDF) available 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 Na tional 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 in the process of being privatized (an 80 per cent share is to be sold), reflecting the Govern ment’s 1382 (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 special ized technical training and has launched a four year ICT bachelors program (the first class of 50 students have recently commenced studies). Since 1382 (2003), it has been 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 government institutions that have ICT activities and is open to all other institutions as they ac quire ICT infrastructure and applications. The ICT Council is chaired by the First Vice Presi dent and its total membership is fully inclusive of all interested parties, including the private sector, civil society organizations, and acade mia. 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 wher ever possible, will enhance the effectiveness and efficiency of the public sector. By mobiliz ing resources to build up the ICT sector within the public sector institutions, MoCIT will also be accelerating the development of private sec tor support capabilities 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 in vestment, $925 million as of the end of 2007. This is expected to reach $1.5 billion by end 1389 (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 Economic and Social Development 103 will be expanded. Government administration will be predictable and unbiased, in accord with all legislation. The role of the private sec tor will be increased. ICT access will be gener ally available in education institutions, includ ing many primary and secondary schools. (For detailed information regarding outcomes refer to action plan and M&E matrices. (For detailed 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 the ur ban development sector is to ensure increased access to improved services and affordable shelter while promoting sustainable economic development as part of the effort to reduce ur ban poverty through encouragement of private investment. The country’s urban areas will become hubs for economic growth with all ba sic infrastructure and services. Management of urban areas will be improved through the de volution of authority and responsibility to mu nicipalities in ways that improve urban infra structure and services, reduce urban poverty, allow urban residents to live safe, healthy and productive lives and cities to grow and pros per. Effective management of the rapid ur banization process will make a significant con tribution to the recovery of the country. Cities contribute to economic growth through high productivity, a result of economies of scale and agglomeration, and by providing opportunities for the accumulation of capital, investment, trade and production. Urban investments cre ate employment opportunities and urban jobs account for a disproportionate share of GDP. Urban growth can stimulate rural development through increased demand for food, as markets for rural products, by offering off-season em ployment for farmers, and by providing oppor tunities to move goods and services in the re gion. However, cities are often linked to in creased violence, crime and insecurity. Im proving the urban environment, and improv ing the livelihoods of the population will lead to improvements in security. The importance of effective management of the urban develop ment process has been recognized in the Af ghanistan Compact benchmarks: Urban Development: By the end of 1389 (2010), municipal governments will have strengthened capacity to manage urban development and to ensure that munici pal services are delivered effectively, effi ciently and transparently; in line with MDG, investments in water supply and sanitation will have ensured that 50 per cent of households in Kabul and 30 per cent of households in other major urban areas will have access to piped water. Energy: By end-1389 (2010), electricity will reach at least 65 percent of households and 90 percent of non-residential estab lishments 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 Goal most rele vant to the urban sector development is: Goal 7: By 1399 (2020), halve the proportion of citizens without access to safe drinking water and sanitation. Significantly im prove the lives of all slum-dwellers by the same date. Sustainable development to reverse the loss of environmental re sources 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: Water supply and sanitation: 2 million urban residents (31 percent of the total urban population) have benefited from invest ments in water supply and 12 percent from investment in sanitation in major cities between 1381 (2002) and 1386 (2007). Up to 1.4 million people (20 percent of the urban population) have benefited from rehabilitation of public works, with 250,000 (4 percent) benefiting from up graded 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 de Afghanistan National Development Strategy (ANDS) 104 velopment of new city housing for up to 3 million people north of Kabul. Addi tionally, new small settlements (satellite townships) have been planned for 1 mil lion people. Regional and city planning: Strategic devel opment plans are being prepared for seven regional cities, while a city devel opment plan for three major cities (Ma zar, Jalalalabad, Kabul) and existing Kabul plan is due for completion by end 1387 ((mid-2008). Urban policy: Initiatives include a compre hensive National Urban Program (NUP); a draft National Land Policy was submit ted in 1386 (2007) for approval to the Ministry of Justice. A draft of national building codes for construction has been developed. Institutional reforms within MoUD, KM & IDLG (established in 1386 (2007)) con tinue, along with investments in strengthening institutional capacity. Almost 5 percent of vulnerable families have been provided improved shelter in major cities. The private sector has made little contribution to the development of hous ing sector to date. Three conservation initiatives are under way in historic quarters of Kabul, Herat and Tashqurghan. The Afghan Urban Water Supply and Sanita tion Corporation has been established as a quasi-independent public entity. As of 1384 (2005) nearly a quarter of Afghani stan’s population lived in urban areas. By 1394 (2015) it is estimated that almost a third of Af ghans will be living in urban areas. Current needs include: Urban Poverty: In 1381 (2002), one-fifth of the urban population was living below the poverty line. The 1384 (2005) NRVA study found that 28 percent of urban households perceive themselves to be food insecure, 31 percent fall below the minimum level of dietary energy con sumption, 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 1385 (2006,) suggesting that 68.5 percent of the urban population is living without security of tenure. Water and Sanitary Conditions: In 1384(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 per cent rural as of 1381 (2002)). Few places in the world face such scarce and alarm ing water supply and sanitation coverage levels. The percentage of urban house holds using (i) traditional covered la trines; (ii) improved latrines, and (iii) flush toilets are about 67 percent, 15 per cent and 9 percent respectively. In Kabul city, 14 percent use a flush latrine; 2 per cent are covered by a sewage system. Roads: About 61 percent of urban dwellers access their homes by unpaved roads and about 25 percent by footpaths, including in Kabul. There are a number of challenges and con straints facing the Sector: Low coverage of basic services and inade quate public resources to meet growing needs. A rapid pace of urbanization partly due to re turning refugees and rural-urban mi grants, which leading to high population density. Widespread urban poverty and limited ac cess to productive employment. A high proportion of informal settlements and associated problems. Lack of capacity and coordination among ur ban sector institutions. Limited scale of private sector investment in urban enterprises, facilities or services. Lack of accurate data on which to base criti cal policy decisions. Land security and titling: Absence of proper land registration system, land grabbing, inadequate legal instruments and institu tions. Economic and Social Development 105 Lack of available financial funds due to lim ited interest of donors in the urban sec tor. The Urban Sector Strategy incorporates feed back, proposed projects and comments from the Sub National Consultations (SNCs) and is a response to the people’s needs and develop ment goals. Key urban infrastructure needs emerged from City Development Plan (CDPs) and PDP-related consultations as well as City Action Plans (CAPs) (based on the city profiles report) have been integrated into the strategy, reflecting the range of sub-national develop ment 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 policy that decentral izes decision making to the local level, encour ages participatory processes based on urban community councils or other neighborhood organizations, adopts a market-based approach that encourages private sector activity and es tablishes a regulatory framework focused nar rowly on environmental protection and the rationalization of land use. The main programs of the sector strategy are: (i) Urban Govern ance, Finance and Management; (ii) Land De velopment & Housing, and (iii) Urban Infra structure & Services. (for details of program refer to volume II). Urban Governance: The Ministry and Mu nicipalities will be restructured and work jointly to prepare city action strategies and structure plans for Kabul and the 34 major ur ban areas—with special attention paid to local area plans for fast growing areas— and to strengthen urban and municipal governance, finance and management. This involves the creation of an enabling environment in which stakeholders can participate in municipal elec tions and residents have a say in policy formu lation and the design of implementation activi ties. 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 ac counting and budgetary practices and linking the capital budget to the planning process. Ex isting revenue base and assets will be reviewed and action plans for revenue improvement plans developed to include widening revenue base, improved collection rates, user charges, co-financing or co-production with users, property or sales taxes, intergovernmental transfers, municipal borrowing, mobilization of local government resources through loan guar antees. Mechanisms will be developed to in crease local revenues in order to finance part of the costs of improved urban service. Public partnerships with the private sector and NGOs will be promoted to more efficiently provide urban services or meet urban needs. A draft Public Finance and Expenditure Management Law will be enacted. Urban Development and Land Manage ment: The Government will prepare a national spatial development plan to provide: (i) a framework for balanced urbanization, urban rural links, and greater regional coherence; (ii) a town planning policy, processes, laws, stan dards, and guidelines as well as development regulations; (iii) effective land management and information systems (a national settle ments plan will also be put in place); (iv) grad ually improve tenure security through im proved infrastructure and services; (v) clarify property rights by providing temporary certifi cates and addressing environmental and plan ning concerns; (vi) pass land management laws with the objective of preventing unlawful oc cupation of government and private land for economic (and political) gain, facilitating land registration and adjudication and enabling government acquisition of private land for public purposes; (vii) improve land manage ment through steps to register land titles; (viii) develop a system for settlement of land dis putes; (ix) develop a computerized (GIS) land management system; (x) conduct cadastral sur veys and reconcile cadastre with actual condi tions; (xi) link cadastre to a municipal property tax system and to land registration data; (xii) link 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 Afghanistan National Development Strategy (ANDS) 106 towns and cities and in all urban areas. Stan dards of servicing will be based on afforda bility 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; provide basic infrastructure and services relatively efficiently; permit progres sive development through provision of a sani tary core (known as an “embryo” housing unit). Sectoral agencies will consider other op tions for providing developable land including land-sharing, land readjustment, land pooling, and infill development. Land security will be improved through map ping and surveying of communities, tenure formalization, and land registration. If infor mal settlements are recognized and provided with tenure security, they become more willing to invest their own financial and other re sources in improving the community and their own houses. Moreover, they can use the title as collateral. Security of tenure may include both 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 regulariza tion 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 exam ine 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 agricul tural 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 cen ter will be undertaken primarily by the private sector. The extent of the Government’s direct role will generally be limited to planning, in vestment in some of the basic urban infrastruc ture and facilitating private commercial in vestment. This project will be largely self sustainable financially and become a center for new investment in private agro-based and ser vice 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 , i.e., the “people’s housing process”; (iii) support for research and development of appropriate building materials and technologies; (iv) upgrading of the skills of contractors and laborers; (v) support for entre preneurs to upgrade or set up building compo nent manufacturing units; (vi) support to pri vate 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 provided for the purchase, rehabilitation, and construction of new housing by integrating housing finance; stimulating private banks to increase mortgage lending to low-income households (through mortgage guarantees, for example); initiating community mortgage schemes; lowering mortgage interest rates; re ducing collateral and down payment require ments; introducing flexible repayment schemes. This will enhance the purchasing power of urban inhabitants, attract private in vestment in housing programs and lead to a system of affordable land and housing with assured cost recovery for the investors. Housing subsidy programs will be provided for very low income households, including both owners and renters. The following op tions will be examined: Direct loans to pur chase an existing or construct a new house; Government guarantees of loans made by pri vate sector lenders, thereby enabling house holds to purchase houses without a down payment; mutual self-help housing programs to make homes affordable to groups of house holds through a system of "sweat equity;" port able rent subsidies that give eligible house holds a choice about where to live, including market rate rental subsidies directly to the property owner, who then applies the subsidies to rents charged to low-income tenants. Urban Infrastructure and Services: A con certed effort will be made to improve infra structure including roads, footpaths, storm Economic and Social Development 107 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 re habilitation, 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 sani tation services, giving priority to rehabilitating existing areas to an adequate level of service before extending service to new areas. Exten sions to new areas will be done in connection with an approved plan for new settlement de velopment. Solid waste management will be improved through waste minimization (reduce, reuse, and recycle) and improved collection, transport, transfer, and disposal alternatives. Consideration will be given to privatization, community management, affordability and cost recovery. Urban transportation management will be improved through improvements to circulation and road networks. transportation facilities and services by function, type, capac ity, and condition. The most significant heri tage areas will be identified and a detailed in ventory of heritage assets will be undertaken. This will be done in coordination with NGOs already working on the preservation of heri tage areas. Conservation plans for each heri tage area will be developed and implemented through efforts to raise public awareness, eco nomic incentives to private owners, tourism development, legal protection, public invest ment, and outreach to international bodies. Key steps to improve and monitor progress with urban development will include the iden tification of indicators on which strategic, tacti cal, and operational decisions will be based; the establishment of GIS and databases to manage information; and the improvement of analytical routines and creation of web-based information systems. The priority focus will be on the estab lishment of land information and registration systems in municipalities. Afghanistan National Development Strategy (ANDS) 108 The following actions will be taken: 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 households 47: 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, sani tation, drainage and waste collection; 10 percent coverage of hygiene promo tion programs. Phased regularization of tenure for 50 per cent of households in informal settle ments, in parallel with upgrading of pub lic 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, cou pled with access to affordable finance. Improved urban environment with green ar eas and open spaces. (For detailed information, refer to Appendix 3 National Action Plan and 4-Monitoring Ma trix.) MINING Role of the sector in ANDS The ANDS strategic vision and goal of the min ing sector is to establish Afghanistan as an at tractive destination for investment in the explo ration and development of mineral resources. The intention is to encourage legitimate private investment in the sector so as to substantially increase Government revenues, improve em ployment opportunities and foster ancillary development centered on mining activity. Im plementation of the strategy will help to de velop effective market-based economic policies, 47 Note, these targets are also identified in the Water Sector Strat egy. promote and regulate sustainable development of minerals and ensure that the nation’s geo logical resources are progressively investigated and properly documented. This strategy sup ports large and small scale mining for immedi ate and sustainable economic gains. For min ing and minerals, the emphasis is on the explo ration, extraction and delivery to market; for hydrocarbons the emphasis is on exploration and exploitation. Experience during the period 1366-1379 (1987 2000) has demonstrated that the country can attract significant amounts of investment in this sector if issues such as: up-dating mineral pol icy and strategy; amending mining legislation (particularly with respect to 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. Can be addressed 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. Economic and Social Development 109 Table 7.3. Mining sector reform and its effect on economic growth Exploration (US$m) Production (US$m) Exports (US$m) Country Before Reform After Reform Before Reform After Reform Before Reform After Reform Argentina <3 150 340 1,310 70 700 Chile 15 250 2,400 7,500 2,300 6,900 Peru 10 200 2,000 3,900 1,900 3,600 Tanzania <1 35 53 350 53 350 The Afghanistan Compact Benchmark calls for an enabling regulatory environment for profit able extraction of Afghanistan's mineral and natural resources to be created and for the in vestment environment and infrastructure to be enhanced so as to attract significant domestic and foreign direct investment by 1389 (end 2010). Current Situation While geological studies of Afghanistan have been conducted over the last 50 years, 90 per cent of the territory of Afghanistan has not been systematically studied despite highly promising findings. A geological map of Af ghanistan has been prepared and over 400 min eral deposits have been identified. These in clude copper, coal and a number of small and medium deposits of gold, silver, platinum, zinc, nickel, emerald, lapis, ruby, kuznite, tourmaline, fluorite, chromite and salt, as well as radioactive elements and numerous deposits suitable for construction materials. The availability of oil and gas fields in Af ghanistan has been well known for almost 50 years. Russian equipment was used to explore the first fields. Subsequently, gas fields in Ya teem Taq, Khwaja Gogerdak, Khwaja Bolan, Zigdeli and Bayan of Ghor province as well as the outskirts of the Sheberghan district of Jow zjan 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 identi fied- 44.5 million tons with the extractable re serves of 14.5 million metric tons. During the past few years, five additional oil and gas fields have been identified. More work has been car ried out in the vicinity of Amu Darya, and Af ghan-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 evalua tion 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 work ers 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 (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) the Gho ri cement factory with a capacity of 100,000 tons per year; (iii) the Jabal Seraj cement factory with a maximum capacity of 30,000 tons per year; and (iv) Herat cement factory and Ghori 2 with capacities reaching 200,000 annually. In Saratan 1384 (July 2005) a Minerals Law was approved by the Government. In Qaus 1384 (December 2005), a Hydrocarbons Law was also approved. Regulations are being drafted which may be finalized during 1387 (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 im prove 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, em ployment, rural development and economic spin-offs. The major institutional strengthen ing 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 opera tion of private firms within the industry. It will Afghanistan National Development Strategy (ANDS) 110 also strengthen financial and budgetary proce dures 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. Se curity difficulties limit mining in some areas, principally in the South. Roads, energy and water are all lacking. The danger of unex ploded 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 success fully while Mineral Exploitation Enterprise and Afghan Gas are about to be privatized. This Sector Strategy incorporates feedback and comments from the Sub-National Consulta tions (SNCs). A key finding was the lack of in formation available to local communities on mine opportunities. A lack of market-based thinking and considerable expectation for the Government to provide sector support is also reflected in community comments. 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 marble and, precious and semi-precious stones in Anaba and Shotol dis tricts 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 de velopment through private firms engaged in a mix of large and small operations. The private sector will operate within a legislative and reg ulatory framework designed to facilitate in vestment and a competitive sector. While there will be some public sector activity, it will be required to operate under the same legislative and regulatory framework as the private sector. The focus will be on using Government pro jects or competitive bidding for exploration contracts to better determine the extent of natu ral resources in Afghanistan; on the establish ment of an improved, transparent and capable management system for the effective extraction of minerals and other natural resources; and the establishment of a regulatory environment that facilitates local and international invest ment 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 ef fectively and responsibly in accordance with the law. Mining legislation will be passed and implemented. Planned actions include explora tion and exploitation of mineral resources by the private sector or MoM; capacity building programs; successful implementation of the Aynak project; development of long term geo science projects; and a reconstruction program that includes 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 rais ing the production of mineral resources, oil, gas and underground water; and increase the pro duction of urea. The main programs of the sec tor are (i) implementing PRR; (ii) completion of legislative affairs;(iii) A comprehensive geo logical 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 exploi tation program of gas and oil fields by the gov ernment or private sector; (vi) capacity build ing; (vii) long term geo science research; (viii) a program of reconstruction to included equip ping the laboratory and technical section of the Ministry. (For details refer to ANDS Volume II.) Priority Projects: Top priority projects, in order of priority, are: Completing and implementing the hydrocar bons regulations by Ministry of Justice; Finalizing of the Afghanistan gas law (down stream); Completing the second round of PRR in the MoM; Providing background information and invit ing bids for exploration and exploitation of three blocks of oil and gas in the northern provinces.. Economic and Social Development 111 Expected outcomes Given the known mining resources available, implementation of this strategy will lead to considerable investment in small and large pro jects. Mining will play a major role in achiev ing the high rates of economic growth and in creased government revenues envisioned in the ANDS. Increased revenues will be derived from mining royalties, taxes and customs reve nues 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 opportuni ties for thousands of citizens in remote areas where alternative legal productive opportuni ties are few. Mining firms will increasingly enter into the formal part of the economy. They will operate within a legislative frame work that is accepted and impartially adminis tered 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, includ ing the construction of roads, bridges, hous ings, health clinics, mosques, playgrounds, schools and parks. (For detailed information see Appendixes 3 National Action Plan and 4 Monitoring Matrix.) HEALTH AND NUTRITION The ANDS strategic objective for this sector is to improve the health and nutrition of the peo ple of Afghanistan through quality health care and the promotion of healthy life styles. Af ghanistan ranks close to 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-1389 (2010) the Basic Package of Health Services will be extended to cover at least 90 percent of the population. By end-1389 (2010) maternal mortality will be reduced. By end-1389 (2010) full immunization cover age for infants under-5 for vaccine preventable diseases will be achieved and their mortality rates reduced by 20 percent. Between 1382 (2003) and 1394 (2015) reduce the under-five mortality rate by 50 per cent, and further reduce it to one third of the 1382 (2003) level by 1399 (2020). Between 1381 (2002) and 1394 (2015) reduce the maternal mortality ratio by 50 per cent, and further reduce it to 25 percent of the 1381 (2002) level by 1399 (2020). To have halted and begun the reverse the spread of HIV/AIDS by 1399 (2020). To have halted and begun to reverse the in cidence of malaria and other major dis eases by 1399 (2020). (For more details see Appendices I and II) Current Situation Afghanistan’s health indicators are near the bottom of international indices, and are far worse 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 malnutri tion and micronutrient deficiency diseases. (For more information see to Volume II of ANDS) 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 1382 (2003) to 82 percent in 1385 (2006). The percentage of people in Afghanistan who live within two hours walking distance of a primary health care facility was ap proximately 66 percent in 1385 (2006). Increased access to female health care workers. The percentage of primary health care facilities with at least one fe male doctor, nurse or midwife has in creased from 26 percent in 1383 (2004) to 81 percent in 1386 (2007). Increased use of reproductive health ser vices in rural areas. Between 1382 (2003) and 1385 (2006), use of modern family planning methods among married women in rural Afghanistan increased Afghanistan National Development Strategy (ANDS) 112 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 atten dants for assistance with delivery in creased from 6 percent to 19 percent. Increased coverage of child immunization in rural areas. Between 1382 (2003) and 1385 (2006), coverage of BCG vaccine among children 12-23 months of age to protect against tuberculosis increased from 57 percent to 70 percent and com pletion of the three dose oral polio vac cine increased from 30 percent to 70 per cent. The Afghan Compact High Level Bench mark 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 tar geted by 1389 (2010). With the infant mortality rate estimated by the 1385 (2006) Afghanistan Health Survey to be 129 per 1000 live births, a 22 percent re duction from the baseline level has al ready been achieved. The Afghan Compact High Level Bench mark for reduction of under-five mor tality has been reached ahead of sched ule. From a high baseline level of 257 under-five deaths per 1000 live births, a 20 percent reduction in under-five mor tality was targeted by 1389 (2010). With the under-five mortality rate estimated by the 1385 (2006) Afghanistan Health Survey to be 191 per 1000 live births, a 26 percent reduction from the baseline level has already been achieved. A number of challenges and constraints must be addressed if continued progress is to be made. These include: 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 infrastruc ture. Low levels of utilization for certain health services, especially preventive services. Variable levels of service quality. Insecurity, which makes program implemen tation, recruitment and retention of staff, expansion of service coverage and moni toring by the provincial and central lev els difficult. Lack of effective financial protection mecha nisms for poor households to receive the care they need without experiencing fi nancial 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 of the Health and Nutrition Sector. For that purpose, a new or ganizational chart and programmatic structure have been defined, enabling a comprehensive approach to health service delivery, with pri mary health care services, hospital services, disease control, nutrition and reproductive and child health integrated under the Health Care Services Provision General Directorate. The overarching priority of the MoPH has been to obtain nearly universal coverage of a standard Basic Package of Health Services (BPHS) through a “contracting” out initiative, creating strong linkages with the hospital sector through an effective referral mechanism. However, the MoPH will also be responsible for creating an enabling environment for ex pansion of the Health Care System beyond the provision of the BPHS. The MoPH will focus on the following areas: Conducting, monitoring and evaluating im plementation of health care services in order to ensure quality, equity and effi ciency in the health system. Coordinating the contributions of all national and international agencies involved in the Health and Nutrition Sector, uphold ing standards and tracking services to avoid duplication and gaps. Decentralization of appropriate responsibility and managerial autonomy to the provin cial level; Economic and Social Development 113 Increase the active participation of communi ties in the management of their local health care services by developing strong, active participatory links with shura (community committees) and by training and supporting community health workers; Developing legislation and regulations to fa cilitate growth and assure quality in the private sector provision or civil service provision of health care services. (For more information see volume II of ANDS) The Government will give high priority over the next five years to the following projects: CDC and Non-CDC Program Primary Health Care Program Hospital Care Program Reproductive Health and MCH Pro gram Policy and Planning Support Program Human Resource Development and Research Pharmaceutical Management Support Program The Health and Nutrition Strategy comprises eight core programs (Refer to Appendix I):– Four are 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 relate to the Institutional Development program (Policy and Planning Support Program; HRD and Research Program; Pharmaceutical Management Support Pro gram; and Administrative Program). In addi tion, 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 Strat egy. Health Care Services Programs: Primary Health Care and Hospital Care Programs: The MoPH will ensure the provision of a compre hensive referral network of secondary and ter tiary hospitals that provide, as a minimum, the Essential Package of Hospital Services and do so within An agreed framework that sets stan dards to improve clinical and managerial per formance. Pharmaceutical Management Support Program: MoPH will also act to ensure the accessibility, availability, safety, efficiency, ef fectiveness and affordability of medicines through several means, including establish ment of a drug quality control laboratory at the central level. MoPH will establish procurement, stocking and logistics systems using interna tional standards to facilitate international con tracting, bidding, stocking and transportation. MoPH will also establish, maintain and further develop a medical/health communications network using modern information and tech nology systems at both national and provincial levels. Disease Control and Nutrition Program: MoPH will establish and maintain a surveil lance system (Disease Early Warning System) to respond to epidemics, health emergencies and other risks to human health in a timely manner. This will require improved manage ment of integrated, cost-effective interventions for prevention, control and treatment of com municable diseases. The prevention and man agement of outbreaks will be further strength ened by increasing public awareness and em ployment of the Disease Early Warning System. A key action will be the development and insti tutionalization of a Comprehensive Health Preparedness Plan at the national and provin cial levels, with allocation of appropriate re sources 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 traf fic accidents. MoPH will also work to increase awareness and understanding of the potentially adverse health consequences of environmental factors, such as poor water supplies, lack of adequate sanitation facilities, inadequate rubbish dis posal 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 micronutrient deficiency diseases, through in tegrated and coordinated programming and promotion of food and nutrition security for all. By adopting a public nutrition approach it will be possible to address the underlying causes of malnutrition, including food insecu Afghanistan National Development Strategy (ANDS) 114 rity, 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. Par ticular attention will be given to post-traumatic counseling through the training of more com munity health care workers and psychologists and their placement in accessible community health facilities. People with temporary or permanent disabilities must have access to both general health services and specialized ser vices, so that disabilities can be detected and treated at an earlier stage. Reproductive and Child Health Program: High priority will be given to ensuring that development partners deliver the different components of reproduc tive health as an integrated package. This means increased access to and utilization of, quality reproductive health care services, in cluding antenatal care, intra-partum care, rou tine and emergency obstetric care and post par tum care, counseling and modern family plan ning services. In terms of children’s health, the focus will be on reducing child mortality, mor bidity and disabilities and improving child growth and development by the promotion of exclusive breast feeding, integrated manage ment of childhood illnesses, greater control of vaccine preventable diseases and attention to adolescent health issues through school health programs. (For more information refer to Vol ume II Institutional Development Programs: 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 provin cial 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 Moni toring and Evaluation Strategy, and translation of recommendations from research and practi cal experiences to policy formulation and health planning. MoPH will enhance coordination between the MoPH and partner organizations through for mal 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 donors, partners and the pri vate sector to coordinate the delivery of health care services by setting and distributing poli cies, 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. It will also further develop Provincial Public Health Coordination Committees within each province. MoPH will review and develop relevant legal and regulatory mechanisms, such as accredita tion 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 provi sion of services, carrying out its broader man date 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 en force relevant legal and regulatory instruments that govern health and health related work to safeguard the public and ensure service qual ity. MoPH will work to identify, encourage, coordinate, review, and in some cases conduct relevant, useful research that can assist evi dence-based decision making and the formula tion of new policies, strategies and plans. Human Resource Development, Research and Administration Programs: The MoPH will work closely with the Civil Service Com mission to implement 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, to strengthen the use of quality stan dards, and to promote frequent and supportive supervision. A Quality Assurance Committee has been established to promote improvements 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, in par ticular pharmacies and drug sellers. A com prehensive approach to human resource devel Economic and Social Development 115 opment will be developed to produce a well trained health workforce with the range of skills needed to deliver affordable, and quality health care services to all. A health care worker registration system and a national testing and certification examination process will be estab lished in collaboration with the Ministry of Higher Education. New standards for accredi tation of training institutes and programs will also be established. The proven model of the community midwife training program will be expanded 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 grad uation. (For more information refer to the Vol ume II and Appendix II, National Action Plan Matrix.) Health Care Financing: The MoPH will un dertake health advocacy to increase funds and resources to the health sector. The MoPH will ensure that spending is in line with priorities and coordinated across sectors; it will ensure transparency in the allocation of financial re sources and financial management, strengthen coordination of different sources of funding, and monitor different mechanisms of financing delivery of services to determine their cost efficiency and acceptability. MoPH will also coordinate closely with the Ministry of Finance on the National Development Budget, the de velopment of mechanisms to improve total public expenditure from internal and external resources, and the development of alternative health care financing. Efforts to facilitate pri vate sector growth in the health sector will in clude exploration of their potential costs or sav ings. 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 part nerships 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 perform ance in delivery of health services and coordi nate 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 latter issues have been discussed in describ ing 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 vul nerable 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 essen tial in order to attract resources, and aware that in a post-conflict environment many well intentioned governmental and non governmental partners tend to impose and ar range 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, ma jor NGOs, ISAF, UN agencies, and other line Ministries meets regularly to review recent de velopments in the health sector and to contrib ute to making policies and suggesting pro grams for the future. (For more information refer to volume II. The Sub-national Consultation (SNC) process of the ANDS has successfully engaged admin istrators at the sub-national level. It has streng thened the sense of cohesion between the cen tral MoPH and provincial public health de partments. 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. Considerations take into account health indicators of mothers and children, utilization and availability of the health services in the area of concern, and availability of funds:48 Proposals that are on-going and/or to be im plemented with the current funds; 48 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, utili zation and availability of the health services in the area of con cern, availability of funds and so forth. By doing so, the propos als are categorized according to four criteria. Afghanistan National Development Strategy (ANDS) 116 Proposals that are included in the MoPH Construction Plan and to be imple mented when fund is available; Proposals that are considered in the HNSS timeframe and implemented when fund is available; and Proposals that have to be discussed in detail with the MoPH because they do not ad here to the evaluation criteria, colliding with the HNSS strategies and/or dupli cating 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 sec tor to create more dialogue and thus refine the route towards the accomplishment of the HNSS. Private Sector “For Profit” Health Care Provision: In addition to the contractual ar rangements with NGOs and Private Sector groups to provide MoPH service packages, me chanisms will be developed by which ‘for prof it’ private sector providers of medical and hos pital services can be supported by Government. This reflects the realization that while public funding for many social services such as educa tion and health is necessary, for private sector provision may be more efficient. In many countries, private sector provision has devel oped to cover the needs of a significant propor tion of the population seeking quality educa tion and health care. These “for profit” private sector providers have emerged despite not hav ing any access to public funding. As part of the ANDS, an effort will be made to foster compe tition between public sector providers, public sector contractors and “for profit’ private sector operations. Communities or individual con sumers 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 sys tem. Increased competition among 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 en able 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 key to long-term economic growth. Over the last six years the sector has experi enced a number of major achievements, nota bly in terms of enrollment rates. There are to day more than six million children, youths and adults receiving education. Communities have demonstrated their desire for a better future for their children by sending them to school in un precedented numbers. Tens of thousands of youths and adults, both female and male, at tend literacy classes and vocational training programs. Households are making large per sonal and financial sacrifices to provide an education for their children. However, much remains to be done. This strategy outlines the Government’s priorities for developing an edu cation sector capable of producing emerge lit erate, numerate and technologically proficient citizens. Access to education is enshrined in the consti tution, which states that: education “is the right of all citizens and offered free of charge in State institu tions….and that the State is obliged to de vise 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 edu Economic and Social Development 117 cation; and (iii) Skills Development, encom passing literacy and technical vocational educa tion/training. The Millennium Development Goal for the sec tor is that by 1399 (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 identified in the Afghanistan Compact has guided the de velopment of strategies for each of the sub sectors. The Afghanistan Compact benchmarks for the sector are: net enrollment in primary schools will be at least 60 percent for girls and 75 per cent for boys; a new curriculum will be opera tional 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 as sessing learning achievement will be in place; the total number of students enrolled in uni versities 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 the goal of ena bling at least 1.8 million Afghans to attain dem onstrated literacy by 1389 (2010), and ensuring that at least 60 percent of the literacy students are females, members of minority groups, no mads or persons with disabilities. Expected Outcomes: The agreed-upon edu cation system outcomes include: an increase in the literacy rate; improved quality of education, expansion in the capacity of the education sys tem to absorb more students (particularly fe male students); equal access to education for all; improvement in opportunities for and qual ity of 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 detailed information refer to Appendix 3 National Action Plan and Monitoring Matrix.) Sector Priority Policies: Priority short term policies over the next four years involve re training 70 percent of teachers in primary and secondary school and coping with increased demand for education by upping enrollments 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 education on a more sustainable basis so as to 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 educational system, one of the Government’s top social pri orities was to get children to return to school. Data from the sub-sector49 indicate unparal leled success, a clear reflection of the aspira tions of the people and of the social transforma tion taking place (Box 7.4). Box 7.4. Success in the education sector: Increased primary education The Back to School campaign launched in 1381 (2002) aimed to enroll 1.5 million children in primary and secondary grades. From under one million in 1380 (2001) the school population has grown to 5.7 million in 1386 (2007) and new enrollments into Grade 1 have averaged between 12-14 percent per annum over the last five years. Two million (or 35 percent) of the children enrolled are girls—a 35 percent increase over five years. In keeping with the exponential increase in enrollment, the number of schools has trebled to 9,062 in 1386 (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 whom 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. 49 School Surveys Summary Report, 1386 (February 2008), Min istry of Education, Islamic Republic of Afghanistan. Afghanistan National Development Strategy (ANDS) 118 In Higher Education, universities have re opened. There are now 52,200 students in insti tutions higher learning, taught by 2,713 lectur ers. Demand for higher education is currently four times greater than the available places. The next stage of rehabilitation involves im proving the quality of education in existing institutions and expanding the number of plac es available. Partnerships with foreign univer sities 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 sig nificant growth in the last five years. The Gov ernment established the National Skills Devel opment Program in 1384 (2005) as a national priority program. Technical/vocational educa tion at the secondary level through public insti tutions 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 sets are conducted by the non-government and the private sectors. Similarly, functional literacy training for youth and young adults is 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 1386 (2007), 75 percent of whom were female students. The achievements noted above are commend able 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 grow ing demand for access to quality and relevant education. The demand for education far outstrips the supply across the board in Afghanistan today. Only half of all school-age children50 are en 50 School age refers to children between 6-18 years of age; 6-13 years = primary school which is Grades 1-6; 14-18 years = sec ondary 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. Eighty 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 illiter ate people in Afghanistan. Based on recent national surveys51 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 projec tions developed specifically for this work, and literacy rates reported by the Afghan Institute for Rural Development, it is estimated that there are 11.2 million illiterate persons in the 51 NRVA 1384 (2005) and projected population projections spe cifically developed for this report. Economic and Social Development 119 country today, about half of whom are out-of school children above the age of thirteen. Other quality constraints revolve around teach ing spaces, teacher and trainer qualifications, skills and motivation, outdated curricula and poor teaching and learning materials. To this list can be added weak assessment and accredi tation systems. Only half the teachers em ployed in the primary and secondary sub sector meet the minimum qualification, which is set at Grade 12 for primary school teachers. Improvement is hampered by a shortage of high school graduates available and/or willing to train as teachers. There is also a major short age of qualified master trainers in the voca tional training. The primary school curriculum has been re viewed and revised and new textbooks devel oped; 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 devel opment, production and distribution of text books, teachers’ guides and learning materials will take an additional 12-18 months. Teacher training in the use and teaching of the new cur riculum still needs to be addressed. Libraries and laboratories are singularly lacking even in most urban schools and higher education insti tutions 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 inter ests of their students. Technical/vocational education and training are overloaded with academic subjects, have poor laboratory envi ronments for practical training, are short of teaching aids and lack adequate training mate rials. These programs provide limited expo sure to students on the practical application of their training. The relevance of education is a challenge that is still being defined in the sector today. Skills development is rarely linked to market rele vance and weak job linkages. No minimum qualification standards are imposed for course content or procedures for assessing techni cal/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 conse quently students entering formal higher secon dary or tertiary education do not possess the 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 aca demic training. Throughout the education sector there is a gen eral lack of engagement with the private sector of the kind that would generate competitive ness and encourage and enhance quality of the education services. Benefits to delivery of rele vant education services would be greatly en hanced through market linkages with the pri vate sector. Perhaps the most daunting challenge facing the sector today is that posed by terrorism. Educa tional institutions, students and teachers have become the soft targets through which terror ists 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 south ern provinces. Despite the bravery of commu nities 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 intimida tion. In 1386 (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 more than 200 others have been injured or maimed. (For de tailed information refer to Volume II.) Policy Framework: Sector Strategy Three dominant policy goals drive the educa tion sector strategy; equity, quality and rele vance: 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 Afghanistan National Development Strategy (ANDS) 120 the primary years boys are more than 10 times as likely to be enrolled. The shortage of girls’ schools and of female teachers, especially at post-primary levels, pose the greatest challenge to achieving higher participation rates and gen der equity in rural areas. Access to education for nomadic children, those with learning dis abilities, pre-school children and older children who have missed the first years of basic educa tion and now want to enter the system is also generally low. Equality of access to primary and secondary education will provide a firm base for equity in higher education. In order to improve and in crease access, the Government plans to pursue an aggressive building and equipment pro gram 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 ag gressive building program, efforts will be made to include improved security, comfort and hy giene in the building designs in order to im prove the physical learning environment. Im provement in equitable access to education will be indicated through increased net enrollment in the various sub-sectors, by gender and spe cial needs and in additional physical infrastruc ture and facilities that cater to all, including females, special needs and nomadic communi ties where needed. Quality: The quality of education in Afghani stan remains quite low. There are multiple rea sons for this, including teachers who lack a tho rough knowledge of either the subjects taught or effective teaching methods; a shortage of learning spaces, and learning materials. The classroom environment and the quality of edu cation 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 teaching methods do not deliver basic literacy and nu meracy nor do they develop critical thinking and analytical skills of students. Teachers ei ther do not know how to implement more stu dent-centered methods or are not motivated to change their teaching style. Although improving the pedagogical skills of teachers will help improve the quality of edu cation in Afghanistan, recent surveys indicate that the knowledge level of teachers is also ex tremely low. This indicates the need for a teacher training program that includes both subject-content training and pedagogical train ing. The quality of education will also be im proved by continual 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 rates of students progress ing through the system, the number 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 po verty reduction and economic growth it is im portant 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 rea sons. However, it is urgent now to leapfrog in time and adopt methodologies and content that suit both individual students and the people at large. The review and revision of curriculum to make Islamic education broad-based and encourage multiple career paths for graduates; the teach ing 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 at tempting to make education more relevant to present day Afghanistan. (For detailed infor mation refer to Volume II.) Strategic approaches The underlying principle of ensuring equal ac cess to education for all is to develop a strategy that is national in scope but local in focus and delivery. A variety of measures will be re quired to overcome access difficulties. These access difficulties can relate not only to geogra phy, but also to issues such as gender. Government will work towards strengthening partnerships, clarifying responsibility and transferring skills. The value and contribution of partners to the education sector will be en hanced through improved understanding and collaborative implementation. Economic and Social Development 121 A Government-led education sector needs an accountable and transparent system of educa tion financing and administration. The under pinning strategy that the Government will em ploy to achieve its policy goals, therefore, is the reform and restructuring of the management systems that deliver education services. At the primary and secondary school level, a major policy shift will 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 overall public administration reforms. Registration of all teaching professionals across the sector, implementation of public admini stration reform, teacher salaries and other in centives 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 com prehensive five-year strategic plan52 for the delivery of education services has been devel oped by the Ministry of Education to meet the medium-term benchmarks for primary and secondary education set in the Afghanistan Compact by 1389 (2010). Based on the over arching policy of attaining national and gender equity in access to quality education, including affirmative action initiatives, the Strategic Plan encompasses the National Education Program, which in turn is made up of two subsets of pri ority programs. The first set comprises service delivery programs; the second set comprises quality assurance and support programs. The service delivery programs are General Educa tion, Islamic Education, Technical/Vocational Education and Literacy,53 while quality of edu cation is assured through Teacher Education & Working Conditions, Curriculum Development 52 National Education Strategic Plan (1385-1389 (2006-2010), Ministry of Education, Islamic Republic of Afghanistan. 53 Outputs of these programs contribute to the development and delivery of the Skills Development sub-sector. & Learning Materials, Education Infrastructure Rehabilitation and Development, and Educa tion Administration Reform and Management. Each of these programs has a set of costed pro jects that are prioritized and sequenced for im plementation. (For details refer to Volume II.) Higher Education: The Higher Education strategy involves improving both quantity and quality to satisfy the demand for the market based economy with skilled professionals. This will involve an increase in capacity to accom modate more qualified students, together with improvements in the number and quality of lecturers and 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 uni versities, both domestic and foreign, so that there can be an exchange of lecturers. Imple mentation of this strategy has already com menced. Eleven cooperative partnerships be tween individual universities in the country with well qualified foreign universities are in various stages of finalization. In 1386 (2007) a Higher Education Law was passed by Cabinet. A Master’s course has been instituted as part of the objective to offer a greater variety of courses. The Ministry of Higher Education has begun to introduce ac creditation through the Academic Coordination Committee. This body, while still in the early stages, will also be involved in quality assur ance and control, an integral component of the accreditation procedures. This component of the strategy will be monitored by the structure established through a Memorandum of Under standing (MoU) signed with the World Bank on establishment of Afghanistan National Qua lification Authority. In its efforts to improve the quality of Higher Education, most funds available to the Ministry will be used to refur bish existing university campuses and carry out construction of buildings for libraries and laboratories. It is also important as part of the strategy to conduct a review of university funding so that universities have greater au tonomy in making expenditures (For detailed information refer to Volume II.) Skills Development and Training: Many of the courses delivered by mandated institutions suffer from the similar problems: lack of mod ern equipment that can be used by students to Afghanistan National Development Strategy (ANDS) 122 acquire trade-relevant skills and lack of ade quately trained and motivated staff. Issues that need to be addressed include the need to clear ly identify administrative responsibility for delivering and setting standards in the area of vocational education. There are problems of staff shortages, overbuilding, lack of standardi zation in training courses, and qualifications that are difficult for potential employers to ac cess. 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, a Na tional Vocational Education and Training Board (NVETB) that would manage, but not operate, all vocational training institutions. The NVETB would set minimum core compe tencies for courses, carry out accreditation, and inspect vocational institutions to ensure that they meet minimum standards. The Board would be responsible for calling tenders to op erate vocational training facilities owned by the state. Tenders to operate training centers that comply with NVETB standards could be ac cepted from both the public and private sec tors. The proposed approach would address the problems of lack of modern equipment for training in trade-relevant skills, lack of ade quately-trained and motivated staff, and lack of standardization in courses. It would provide for sustainability of the sector, which is cur rently lacking. Part of the strategy would in volve the development of an accreditation sys tem for NGO and private sector providers who provide the bulk of vocational training. By end-1387 (2008) there a plan to formalize exist ing apprenticeship arrangements and expand the system would be in place. The approach will ensure that a recognized qualification is provided to people undertaking apprentice ships who have achieved specified basic com petencies. Technical/vocational education, as part of the formal secondary education, is included under the National Education Strategic Plan, as is Lit eracy 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 pro ject management, accountancy and booking, and information and communication technol ogy. A nation-wide literacy and productive skills program is being launched with the aim of 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 interven tions under the leadership of the National Lit eracy Centre. Firm proposals have been agreed to by relevant institutions regarding the establishment of reg ulatory bodies to operate across the whole of the education spectrum with the goal of im proving educational standards. These include a Board of Secondary Education, a National Vocational Education and Training Board, the Islamic Education Board and the Higher Edu cation Board. The necessary legislation to estab lish these Boards and to implement the Af ghanistan National Qualifications Framework has been agreed by the Ministries. 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, and is chaired by the Vice-President. There are four Government members representing MoE, MoHE, MoL SAMD and MoF, two members representing the private sector and two members represent ing the donor community. A committee to monitor Capacity Utilization, headed by the Minister of Economy will also be established. This committee will monitor individual pro jects where there is potential for capacity utili zation issues to present implementation prob lems. The private sector will be represented on this Committee. (For detailed information refer to Volume II.) In some countries, heavy investments in higher education have resulted in low returns because of a shortage of jobs requiring high skills that results in unemployment rates for graduates unwilling to take jobs beneath their skill level. This is not expected to be a problem in Af ghanistan 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 in vestment and higher productivity. With in creased investment in many areas of the econ omy, there will be high demand for well qualified Afghans. There is an urgent need for qualified teachers, trainers, doctors, and professors, as well as for Economic and Social Development 123 highly-trained workers in every sector of the economy, from the Civil Service to the indus try, communications, energy, mining, aeronau tics, transport and trade. If the ANDS educa tional strategy is successful in addressing the shortcomings in the public education system and expanding the scope for private education, the expected growth of the economy will create extra demand for education and for jobs for those emerging rom the educational system. Care will need to be taken to ensure that cur rent, under-qualified employees in the public sector do not block the way of better qualified applicants, although existing employees should also be given the opportunity to develop the needed skills through in-house development programs and “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. Pro vided funds are available, along with a program to build sports complexes and strengthen sports through provincial sports departments and sports improve ment programs in the capital and the 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 Af ghanistan 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 ANDS priorities 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. One problem in the education sector has been direct provincial infrastructure aid by country do nors, such as construction of provincial agricul tural colleges, that is not sustainable because the recipients dos not have the funds to finance the running costs. (For detailed information refer to Volume III Provincial Development Plans.) Institutional Arrangements: Education ser vices 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, techni cal/vocational education and literacy. The Ministry of Higher Education is responsible for all tertiary education while the Ministry of La bor 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 de mocratic society, encouraging young people (male and female) to believe that they have a stable, prosperous and productive future in the country. Culture provides the social basis that makes it possible for creativity, innovation, human progress and a sense of well-being to flourish. In this sense, culture can be seen as a driving force for human devel opment, irrespective of economic growth and also as a means of leading a more ful filling intellectual, emotional, moral and spiritual life. The Afghanistan Constitution Article 47 articu lates that the state shall devise effective pro grams for fostering knowledge, culture, litera ture and arts. The state shall guarantee the copyrights of authors, inventors and discover ers, and shall encourage and protect scientific research in all fields, publicizing their results for effective use in accordance with the provi sions 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 Afghanistan National Development Strategy (ANDS) 124 The Afghanistan Compact Benchmarks targets comprehensive inventory of Afghan cultural treasures by end-1386 (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 arti facts by end-1389 (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 inde pendent television and radio stations serving 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 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 environ ment in which the caliber of public debate is high and lively. Both criticism and praise for public programs and figures are common and encourage the public’s involvement in Gov ernment actions and the development process. This debate filters down through society and is responsible for increased questioning and analysis of Government activities. 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 activi ties and programs and are critically important to increasing public awareness on the Govern ment and international community’s efforts. At the same time, local independent entertain ment programs have been developed and are highly popular. Regional television shows are also broadcast, meeting the needs of the Af ghan 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 com prehensive inventory to determine the extent of holdings. In Media, a large number of media outlets, tel evision, radio and newspapers have been started in the last six years. These stations pro duce 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 gov ernance, recovery, development and peace building. It is based on input from eight Minis tries and seven United Nations agencies. Challenges and constraints There is an urgent need to take action to pre vent the looting of valuable cultural arti facts and to encourage other countries to return them. The inability of the Ministry to reach as signed targets is due to the lack of re sources, 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 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 neither strong nor comprehensive. Most media infrastructure and equipment for print and broadcast media are out-of date or have been damaged or deliber ately 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 envi ronment in which a free, independent and responsible media can operate has been drafted. It will be passed through Parliament in 1387 (2008). Despite some setbacks, the Government is determined that the freedoms that have been intro duced will remain and will be protected by appropriate legislation. Policy framework: sector strategy Culture Economic and Social Development 125 The objective of this sub-sector to the ANDS will be to establish a system that documents and safeguards Afghanistan’s history and cul ture 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 muse ums. 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 estab lishment and expansion of museums as well as the protection of historical and heritage sites. (For detailed information refer to Volume II.) 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, independ ent 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 to be passed and leg islation to be administered transparently. Introduction of a country-wide coverage of public Afghan media (radio and televi sion). An increase in the number of hours of public broadcasting, and improved quality of programming. Introduction of measures to provide greater press freedom. Youth The contribution of this sub-sector to the ANDS will be to instill in young people a sense of con fidence in a stable, prosperous and productive future. In addition, a Joint National Youth Pro gram is now in the process of being imple mented. This program, produced with input from eight Ministries of the Government of Afghanistan and seven United Nations agen cies, 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 Govern ment to respond to the needs of the youth of the country. Promoting non-formal education, increasing awareness and developing skills (liter acy, leadership, strategic planning, con flict resolution, peace-building, etc.) in young people so as to provide a better quality of life and improved livelihood opportunities. Engaging youth in governance, development and social-political processes at local, dis trict, municipal, provincial and national level, ensuring the participation of young women and men in democracy and ad vocacy. Promoting voluntary efforts for peace and development and establishing a youth volunteer corps for the country. (For de tailed information refer to Volume II.) 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 Afghanistan National Development Strategy (ANDS) 126 Media legislation and its implementation as well as the implementation of the Joint Na tional 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 ef forts. The programs highlighted below form a key part of Government’s approach to alleviat ing 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 1380 (2001) progress has been achieved in number of areas: cash transfer benefits have been established (martyr’s fami lies and disabled) as the main instrument of social support for the victims of the war; regu lar support to orphanages has been provided from the Core Budget; the MoLSAMD has es tablished departments in all provinces and strengthened its capacity for targeting and co operating with the NGOs and the donors. In total, some 2.5 million people have been cov ered with some type of public arrangement for social protection. The pension system has been strength ened: Although highly dependent on budget transfers, the basic pension scheme for civil servants and military personal has been estab lished. The number of pensions paid has stead ily increased from around 10,000 to more than 50,000 in 1385 (2006). The MoLSAMD’s Pen sion Department receives technical assistance for further improvements and the MoF has in tensified its effort on collecting pension contri butions. 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 Situa tions has been established under the Presi dent’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 domestic revenues. A further constraint is limited coordination with in 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 a number of risks: Security and economic risks: 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 1385 (2006), landmines killed or injured an average of 61 people per month. The latest survey (NRVA 1386 (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 popula tions 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 a life expectancy of 43 years for women and 44 years for men. Unlike in most coun tries, the life expectancy of women is shorter than for men. Faced with natural disasters, many vulnerable families sold their 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 legisla tion prohibiting this practice, around 57 per cent of girls are married before the age of six teen. The early marriage of girls, and conse quent early pregnancy puts women at high risk. Widespread poverty and the absence 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. Economic and Social Development 127 Environmental risks and seasonality: Peo ple’s high dependence on natural resources has increased, with rising poverty resulting in seri ous devastation of the environment. Forests have been seriously depleted. This adversely affects soil stability and weakens flood protec tion. According to the NRVA 1384 (2005) the consumption of the poorest citizens is highest in summer and typically falls to critical levels in winter. Table 7.6. Reach of social protection programs Social protection program Number of recipients Martyrs’ families 224,850 Disabled 87,717 Orphans 10,500 Children enrolled in kindergartens 25,000 Pensioners 54,000 Public works 1,700,000 Microfinance 340,000 Total 2,442,067 A rough estimate shows that half of the Afghan population (12 million) requires public sup port. They are either poor or concentrated very close to the poverty line and are vulnerable to falling into poverty. In 1384 (2006) only around 2.5 million people benefited from social protec tion arrangements. Currently, social protection interventions cover several groups: (i) martyr’s families; (ii) disabled with war-related disabili ties; (iii) orphans and children enrolled in kin dergartens; (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 po verty line. Sector targets and expected results The strategy will aim to achieve the following targets in line with the Afghanistan Compact and MDGs: By end-1391/92 (2012/13) the spring national poverty headcount rate (42 percent) will decrease by 2 percent per year; by end 1389 (2010) the proportion of people who suffer from hunger will decrease by 5 percent per year; By end-1391/92 (2012/13) prevalence of un derweight children under five in urban and rural areas will decrease by 2 percent per year; by end-1391/92 (2012/13) the proportion of the population below minimum level of dietary energy con sumption (urban and rural areas) will decrease by 2 percent per year; By Hamal 1390 (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-1389 (2010) increased assistance will be provided to meet the special needs of all disabled people, including their inte gration into society through opportuni ties for education and gainful employ ment. By end-1389 (2010) skill development train ing will be provided for 150,000 unem ployed, of which women will comprise 35 percent and the disabled will comprise a minimum of 10 percent. By end-1391/92 (2012/13) the Government will employ 3 percent of disabled per sons within its administration. By end-1391/92 (2012/13) the Government will employ 20 percent of women within its administration. By end-1394 (2015) reduce gender disparity in access to justice by 50 percent, and completely by 2020. By end-1389 (2010) the number of treated drug users will increase by 20 percent. By 1391/92 (2012/13) pension reforms will be implemented. By end-1389 (2010) effective system of disas ter preparedness disaster response will be in place. Implementation of these strategic objectives and priority policies will lead to visible pro gress in implementation of the following major outcomes: (i) poverty and vulnerability reduc tion; (ii) improved social inclusion: (iii) lower infant and maternal mortality; (iv) reduction in harmful child labor; (v) reduction in drug de mand within the country; (vi) improved em ployment; (vii) reduction in vulnerability to natural disasters; (viii) improved aid effective ness. Afghanistan National Development Strategy (ANDS) 128 Policy framework: sector strategy Fiscally sound and well targeted social protec tion interventions are of critical importance for improving poverty outcomes. The Govern ment is committed to pursuing sustainable in terventions through social support, a pension system and improved disaster preparedness and response. Given the scarcity of donor and public funds, the focus will be on allocating adequate resources to the poorest areas, through nationwide targeted programs and transfers and by phasing out non-targeted sub sidies (such as energy subsidies) and building the planning and administrative capacity of the MoLSAMD (and other line Ministries) to de liver coordinated programs and improve social protection. The ANDS strategic objectives for the social protection sector are to decrease vulnerability of large numbers of Afghans and help the poor to climb out of poverty. A parallel goal is 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 dis abled. 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 equi table growth and increase mobilization of do mestic 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 im prove efficiency of the public arrangements for social risk management; (ii) to diversify market based arrangements; (iii) to strengthen infor mal arrangements; (iv) to improve targeting; (v) to strengthen the capacity and restructure the MoLSAMD; and (vi) to improve partner ship 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 an impediment to providing more substantial support to poor families with small children. Introduction of a Zakat-based 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. More generous support to poor families would help reduce the number of underweight children and infant mortality. Given this, the MoLSAMD will initiate a public debate about prospects and modalities for introduction of the Zakat-based tax. The population “at risk” includes: (i) chroni cally poor female headed households with small children; (ii) children “at risk” (orphans, street working children, children involved in begging and exploitative work; children in con flict with law; children with mothers in deten tion; children with severe disabilities); (iii) poor persons with disability; (iv) victims of violence, abuse and human trafficking of all ages; (v) extremely vulnerable individuals, including mentally ill persons and drug addicts, and (vi) the unemployed, underemployed and victims of natural disasters. The target group of “war survivors” includes: (i) martyr’s families from previous and ongoing conflicts; (ii) individuals with war related dis abilities, and (iii) civilian victims of the ongoing conflict. The civilian victims of the ongoing conflict in clude the following: (i) families who lost the breadwinner or other family members as result of military operations; (ii) families who lost their breadwinner or other family members as result of suicide bombings targeting interna tional or Government troops; (iii) families that lost the breadwinner or other family members as a result of military attack at the international or Government troops; (iv) individuals who became disabled as result of military opera tions; (e) individuals who became disabled as result of suicide or military attacks on interna Economic and Social Development 129 tional or Government troops; and (vi) families or individuals whose property was destroyed or damaged as result of military operations, suicide and military attacks on international and the Government troops. Social support to these groups will be coordinated with the sup port from the MoD and MoI. Implementation of this support will be through the National Social Protection Sector Program and will consist of: (i) public arrangements; (ii) market-based arrangements; (iii) informal ar rangements; and (iv) capacity building. Pre liminary costing of the program indicates that around $500 million will be required over 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 sys tems will include most of the existing public arrangements, such as: (i) direct cash pay ments; (ii) payments in kind; (iii) public works; (iv) skills development; (v) lump sum pay ments; (vi) support to orphanages; and (vii) land redistribution. Given their minimal im pact on the poor some arrangements, like sub sidies for fuel, pensions, and kindergartens, will gradually be eliminated. Support to or phanages 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 martyr’s families and to individuals with war-related disabilities will be integrated into the pension system and cease to be part of the social support system. However, this will occur only in the medium term and after completion of pension reforms. New direct cash transfers will be gradually in troduced for poor disabled individuals with non-war related disabilities. The inclusion of the poorest families with small children in the direct cash transfer program 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 increase children’s enrollment in schools (e.g., food for education) and training of teachers (e.g., food for training). According to the NRVA 1384 (2005) the poorest house holds have critically low consumption during winter, especially in Afghan Month (March). A new system of payments in kind will be intro duced for the poorest families with small chil dren for the winter period.. Parcels with basic food and non-food items will be distributed through the Afghan Red Crescent Society to support the poorest households in the most difficult period of year. Given the high inci dence of rural poverty the new program will provide free distribution of livestock, orchards and tools for farming to help the poor diversify their agriculture production. Both direct cash transfers and payments in kind will be made conditional: families will have to enroll their children in school and take them to regular health check-ups. Given the extent of unemployment, skills de velopment will remain one of the highest prior ity public arrangements in the social support system. Public works programs, such as NSP, NABDP and NRAP will continue to provide job opportunities for the poor. The new public work program to re-forest Afghanistan (i.e., “Greening of Afghanistan”) will supply addi tional jobs. 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 market-based arrange ments: In Afghanistan, market-based ar rangements for social protection are dominated by microfinance schemes. These will be further developed and strengthened. Efforts will be made to develop other market-based arrange ments as well, such as increasing financial market literacy and the introduction of com munity-based insurance schemes. Loss of women’s inheritance entitlements to male rela tives and denial of their property rights pre vents women from using collateral and limits their access to loans that would create new em ployment 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 continue to be a crucial informal arrange ment for survival among the poor. The Gov ernment will ensure that Afghan migrant workers are not subject to abuse in their host Afghanistan National Development Strategy (ANDS) 130 countries. In this regard, the Government will conclude international agreements with neigh boring and other countries to protect the rights of Afghanistan’s migrant workers. In order to guarantee adequate protection of the country’s most vulnerable citizens, the Government will: Integrate the cur rent direct cash transfers to martyr’s families and people with disabilities into the pension system. Develop projects for the distribution of live stock, orchards and tools for farming. Develop projects for the distribution of food parcels in winter. Develop a new public works program: the “Greening of Afghanistan.” Develop mechanisms for distributing direct cash entitlements to poor disabled indi viduals with non-war related disabilities and include rehabilitation of the disabled in the BHP in all provinces. Develop programs for community-based re habilitation of drug-addicts. In cooperation with NGOs implement pilot projects to support extremely vulnerable groups, to include options for reintegra tion 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 pre pare plans for capacity building and re structuring, including the establishment of the Child Secretariat within MoL SAMD. Strengthening the capacity and restruc turing MoLSAMD: Implementation of effec tive social protection reform will require sig nificant capacity building of the MoLSAMD. The main objectives will be to improve pol icy/strategy/elaboration of standards of care, monitoring, targeting and project prepara tion/implementation in partnership with NGOs in charge of service delivery; and to ef fect an increase in absorption capacity. En hanced roles for the private sector and NGOs in providing the services will support timely implementation of the projects. Finally, devel oping courses to enable university graduates to obtain qualification for social workers will be important for capacity building. Pension reform: The main objective of pen sion reform will be to improve old-age protec tion (especially for civil servants and military) and establish fiscally sustainable pension schemes. Priorities will include the enhance ment of fiscal sustainability by increasing col lection of the pension contributions, and build ing 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 per sonal). The system will remain a defined bene fit system based on a formula that will take into account age, years of service, and a specified accrual rate. The average benefit for an em ployee with 25 years of service will equal 50 percent of final pay after Pay and Grading re form. 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 Govern ment. Pension benefits will be increased in ab solute terms (as a result of Pay and Grading reform), but reduced as a percentage of last drawn pay of an employee. They will be au tomatically indexed for increases in cost of liv ing to preserve the value of pensions. Employ ees will be eligible for a pension at age 65 if they have 10 years of service and will be able to retire at age 55 if they have accumulated 25 years of service. In addition to regular pen sions, benefits will be provided to pre retirement and post-retirement war survivors. The existing direct cash transfers to martyr’s families and individuals with war related dis abilities will be integrated into the future pen sion system. Financing and transition: The pension sys tem will be self-financed from Government and employee contributions on wages (payroll tax). Direct budget subsidies will be gradually elim inated. 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 Gov ernment and employees will contribute 8 per cent of the payroll amount. The employee’s contribution will gradually increase while the Government’s will gradually be reduced. Em Economic and Social Development 131 ployees 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 com ponents 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 placed the cost at around $150 million, which will be covered principally through the Core Budget In support of implementation of pen sion reform, the Government will: Promulgate pension reform by decree. Conduct capacity building training for the staff and managers of the Pension De partment, and develop new IT system and processes. Modernize accounting and internal opera tional procedures in harmony with the IT system implementation and improve re cord keeping and processes. Improve collection of pension payroll taxes and establish a central database to store and process details on pensioners and their bank accounts. Introduce payments of pensions through banks in Kabul by end 1388 (mid-2009), and throughout the country by 1389 (end-2010), subject to availability of banking services. Strengthening the capacity of the Pension Department: Employees of the current pen sion department, including management, will be required to go through comprehensive train ing. 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 prepar edness 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 envi ronment. This objective will be achieved through implementation of the following prior ity policies: (i) to strengthen the capacity of ANDMA, not only for coordination and policy making, but also for implementation of pro grams and projects; (ii) to strengthen the capac ity of line Ministries for disaster preparedness and disaster response; (iii) to enhance the pro vincial and community mechanisms for disas ter preparedness and response; (iv) to improve coordination within the Government for disas ter 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 coordi nate the Government’s efforts and make policy. However, lack of responsibility for implemen tation of key projects for disaster prepared ness/response and over-reliance on the line Ministries is a weakness. Therefore, the exist ing legislation will be amended to reflect the need to strengthen the ANDMA’s role in im plementing key projects. It is important to stress that line Ministries will remain responsi ble for the implementation of most projects for disaster preparedness/response. Disaster preparedness will also be supported by the National Social Protection Sector Pro gram and will include: (i) finalization of risk vulnerability assessments and disaster prepar edness plans at the national and sub-national level; (ii) strengthening the capacity and the role of the ANDMA; (iii) establishing emer gency operation centers at the provincial level and regional warehouses; and (iv) moderniza tion of equipment. In support of the sub-sector strategy for disas ter preparedness, the Government will: Amend current legislation to reflect the lead ing role of the ANDMA in coordinating the national efforts implementing key programs and projects; Approve annual plans for disaster prepared ness, finalize disaster risk analyses and guidelines for disaster response, and de velop the provincial disaster manage ment plans. Develop standardized operating procedures for quick assessment, response and re Afghanistan National Development Strategy (ANDS) 132 porting, and for rapid mobilization of in ternational assistance. Establish Emergency Operation Centers at the provincial level, response centers and teams at the regional level and effective early warning systems; develop the com munity emergency response system and back-up communication system based on Codan. Construct 12 regional storage facilities for aid assistance and equipment and raise na tional awareness of disaster risks and vulnerabilities. Strengthening capacity and improving coordination: The ANDMA, and to a lesser extent the line Ministries, require strong capac ity building and equipment modernization. Having rescue equipment, management tools and operational centers available at the provin cial level will ensure a prompt response to dis asters. Strengthening disaster preparedness and response at the community level through CDCs will be required. Maintaining access to modern technology, such as with alarm sys tems, is important for reducing casualties and damages during disasters. Finally, given the existing legal ambiguities, the role of the ANDMA in leading and coordinating national efforts for disaster preparedness and response will need to be clearly defined; this will require adjustment of the current legislative frame work. REFUGEES, 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 and integration of refugees The planned and voluntary return of refugees and IDPs will contribute to economic growth, 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 involun tary returns generate a range of negative con sequences when they are managed as emergen cies. Situation in the sector More than five million Afghans have returned to their homes since 1381 (2002). Yet over three million Afghan refugees remain in Iran and Pakistan. Several hundred thousand others are living in former Soviet Union countries (CIS, CAR) and Europe. The majority of those who remain in Pakistan (2.1 million) and Iran (0.9 million) have been in exile for over 20 years.. The presence of these communities places strains on both the Afghan Government and the governments of neighbor ing countries. The desire of the neighboring countries to engineer large scale return is a challenge to the principle of voluntary repatria tion. Experience indicates that such pressures will not produce sustainable or humane out comes. This is particularly the case for ex tremely vulnerable individuals: unaccompa nied women, unaccompanied minors, the eld erly, the very poor, those in need of medical care and drug addicted individuals. Economic and social reintegration poses many constrains and challenges. Since 1384 (2005) repatriation of refugees has slowed considera bly. This is attributable to several factors: (i) the deterioration in the security situation; (ii) limited economic opportunities, including em ployment, upon return (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 pressures from the neighboring countries to stem the continuing trend of out-migration from Afghanistan. The most visible indication has been the deportation from Iran of over 350,000 unregistered Afghans. It is probable that high levels of mass and vol untary repatriation are over. The refugees’ long experience of exile, and discouraging con ditions in many areas of Afghanistan will make return even more difficult in future. Internal displacement remains a significant problem, characterized by facing the same con straints and challenges that face refugees: (i) ongoing conflict; (ii) natural disasters (drought, floods); and (iii) lack of livelihoods. There are approximately 160,000 internally displaced persons, mostly in southern Afghanistan. There is also evidence of secondary migration Economic and Social Development 133 of returnees from places of origin to cities and back to the neighboring countries. Many of those who return home face signifi cant hardships integrating into life in Afghani stan. Drug abuse and its repercussions are ag gravated by the large numbers of refugees re turning. These groups have often been ex posed to drugs during their stay abroad. The difficulties of economic and social reintegration place them at particular risk of drug abuse on their return. Ensuring that they do not con tribute to drug production or become drug uses requires viable and visible employment oppor tunities. The sector strategy provides policies for volun tary, planned and sustainable return of refu gees and IDPs that will promote internal stabil ity, economic development and poverty reduc tion. The strategic vision of the sector strategy is to provide safe, voluntary, gradual and sus tainable reintegration possibilities for all Af ghan refugees, returnees and IDPs who choose to return. This vision supports the right of all Afghans to return to their homes, repossess property and enjoy all constitutional and hu man rights. Greater attention to protection of the vulnerable groups among refugees and IDPs, including children and women is an im portant part of this vision. The main strategic objective of the sector is to transition out of an humanitarian emergency framework to a more comprehensive set of pol icy arrangements that will advance durable solutions for the remaining 3 million Afghans in the neighboring countries, for returnees, and for IDPs, and which will not rely solely on vol untary returns. The Government’s overall strategic goals and objectives are to: Support the safe, voluntary, and gradual re turn of refugees from Pakistan, Iran and elsewhere. Prepare and implement more visible and ef fective, sustainable reintegration pro grams and interventions. Improve social protection and disaster pre paredness. Strengthen the management of cross border movements and economic migration. Prepare plans to improve the response to in ternal displacement crisis. Give greater attention to the protection of the more vulnerable groups among refugees and IDPs, including children and women. Improve, through policy negotiation and co ordination, the possibility of gradual re turn for all Afghans who wish to repatri ate from Pakistan, Iran and other host countries; Strengthen the Government’s capacity to plan, manage, and assist the reintegra tion of returning Afghans and IDPs. Improve the Government’s capacity to plan for and respond to internal displacement. Improve the terms and conditions of stay for Afghans in neighboring countries. Make progress toward the implementation of bilateral agreements on temporary labor migration. Improve access to land for refugee and the IDP populations. The strategy will also support the implementa tion of the following Afghanistan Compact benchmarks: By end (1389 (2010), all refugees and inter nally displaced persons opting to return will be provided assistance for rehabilita tion and integration into their local communities; their integration will be supported by national development pro grams, particularly in key areas of return. Afghanistan, its neighbors and other coun tries in the region will reach agreements to enable Afghanistan to import skilled labor, and 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; the UN will track the ef fectiveness of measures aimed at the pro tection of human rights; the AIHRC will be supported in the fulfillment of its ob jectives with regard to monitoring, inves tigation, protection and promotion of human rights. Depending on the success of the implementa tion of the ANDS and specific sector programs, some broad scenarios for the return and reinte Afghanistan National Development Strategy (ANDS) 134 gration sector could be envisaged for the pe riod 1387-92 (2008-13). These assume that cur rent trends will be unlikely to deviate dramati cally (positively or negatively) from the present situation and that there will still be a substan tial number of Afghans remaining outside their country in 1392 (2013): Scenario One: Progress towards peace and security, political stability, economic and social development improves on current trend lines. There are no changes to cur rent legal and operational frameworks governing repatriation. Support for rein tegration through national programs benefits from increased and better tar geted investments. Afghans continue to enjoy international legal protection as refugees. Internal displacement contin ues as a consequence of localized conflict. Under these conditions, as many 800,000 to 1,000,000 Afghans might return home voluntarily and sustainably, predomi nantly to the west, north and central re gions 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 in creases as a result of new measures in troduced by the neighboring countries. Support for reintegration through na tional programs benefits from increased and better targeted investment and im proved response capabilities. The terms and conditions for registered Afghans to remain in the neighboring countries de teriorate. Conflict-induced internal dis placement persists, especially in southern Afghanistan. Under these conditions it may be envisaged that a projected overall figure of 600,000 – 800,000 voluntarily re turn or are forcibly returned. Scenario Three: Progress towards peace and security, political stability, economic and social development deteriorate. There are no changes to current legal and opera tional frameworks governing repatria tion. Support for reintegration through national programs benefits from in creased and better targeted investments but implementation is weak due to poor security. Afghans continue to enjoy a measure of international legal protection as refugees though less than before. In ternal displacement continues as a con sequence of localized conflict. Under these conditions, it may be envisaged that a projected figure of between 400,000 and 600,000 Afghans return home volun tarily and sustainably, predominantly to the west, north and central regions of the country. The Government will implement the following priority policies to achieve the sector objective: Prepare and implement more visible and ef fective reintegration programs and inter ventions and improve the mechanism for delivering immediate reintegration assis tance to returning refugees and IDPs. Improve social protection and disaster pre paredness. Address concerns of Afghans who prefer to remain in exile. Develop broader policy responses to popula tion movements. Retain the Tripartite Agreements as an im portant tool to ensure policy coordina tion and respect for refugee law and hu manitarian principles. Improve access to land for the refugee and IDP populations. Improve inter-ministerial coordination. Improve aid coordination and increase aid ef fectiveness. Specific activities the Government will under take are detailed below. Maintaining frameworks to manage repatriations Within the region, the principle legal and op erational framework governing voluntary repa triation is provided by the Tripartite Agree ments signed by Afghanistan, UNHCR, Iran and Pakistan. These agreements are serviced by regular meetings of Tripartite Commissions at both the Ministerial and the working level. The Tripartite Agreement with Iran was re newed for a further year in Month 1386 (Febru ary 2007); an extension of the agreement with Pakistan for three years was signed in Month Economic and Social Development 135 1386 (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 Agree ment and the Tripartite Commission. Specifically, the most important measures to be taken to support implementation of the strat egy are to: Fully reflect the principles of voluntary, dig nified and gradual return under the Tri partite agreements between countries of asylum, Afghanistan, and UNHCR. Discuss and agree to the annual return plan ning figures with the Governments of Pakistan and Iran within the Tri-Partite Commissions. Strengthen the management of cross border movements and economic migration. Promote policy guidelines for the protection of IDP The Government’s policy supports voluntary, planned and sustainable repatriation. At the same time, the Government is committed to increasing the overall rate of return. This re quires improving the livelihoods and welfare opportunities in the country, and increasing the attractiveness of the country to displaced per sons. The Government will work to address the con straints returnees face on returning, including limited economic opportunities (employment) and social services (health and education). The Government, with support from the inter national community, will develop a range of political and practical solutions to address the concerns of neighbors on the recent slowing of repatriation rates. This will help to reduce bi lateral tensions on this issue. The Tripartite Agreement is an important tool to ensure policy coordination and respect for refugee law and humanitarian principles. En suring the voluntary nature of return is criti cally important in improving sustainability and minimizing humanitarian distress. In view of the potential political and humanitarian conse quences 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 in volvement of a wider cross section of Govern ment Ministries. Provide housing, facilities and social services to returnees The Government will continue to provide housing, land plots and infrastructure to re turnees to encourage voluntary returns. Key programs and projects to support imple mentation of the strategy will be implemented by several line Ministries. These projects will support the reintegration of returnees by pro viding housing, public services and income generation opportunities. Distribution of land plots to solve the housing problem will remain an important public strategy. Public works programs will provide job opportunities to gether with skill development training. These projects will be developed, costed and inte grated into the National Budget by the end of 1387 (2008). Since 1381 (2002), over a million returnees have benefited from a rural housing program im plemented in all regions of the country. Ap proximately 170,000 houses have been built. Over 10,000 water points have been con structed in key returnee destinations. A Land Allocation Scheme was launched in 1384 (2005) to address the needs of landless returnees and IDPs for land for housing. These settlements have the necessary infrastructure, including schools, clinics, roads, mosques, po table water, parks and sanitation. Priority has been given to those who have al ready applied for land (those that returned be tween 1381 and 1385 (2002 and 2006)) and the most vulnerable (for example the disabled and widowed). Over 520,000 applications have been registered, approximately 100,000 benefi ciaries have been selected, 23,000 plots have been distributed and 5,500 families have moved into houses on site. The Government will also increase the provi sion of social services available to returnees, refugees and IDPs. These programs include: Afghanistan National Development Strategy (ANDS) 136 Providing legal aid and vocational training for Afghan refugees and support to the host communities in Pakistan. Improving primary and secondary health care for Afghan refugees in Mashhad and Zahedan, Iran. Enhancing emergency preparedness for IDPs to ensure that timely and necessary support is provided to minimize hardship and suffering. Providing public works programs which will provide job opportunities along with skill development training. Enhance Government capacity to en courage voluntary returns Ongoing efforts to increase Government capac ity to manage returns will continue. Specifi cally, the Government will work to: Improve internal Government coordination mechanisms, internal-ministerial coop eration and capacity for refugee and IDPs return, Enhance policy advice, data collection, analy sis, research, knowledge generation and advocacy. Provide policy advice to pro vincial authorities. Promote a national framework and policy guideline for the protection of IDPs and an IDP mapping exercise. Identify and implement programs and inter ventions to support voluntary refugee and IDPs return. Incorporate IDPs and returnees into devel opment and national programs and to provide for a national framework for their protection. Ensure greater access to land for the refugee and IDP population, Ensure that refugees and IDPs have greater access to microfinance loans. Improve the capacity of the Ministry for Refugees and Returnees. CONCLUSION The sector strategies summarized here identify the ANDS strategic objectives, principal output targets and the projects and programs that will be required to reach these goals. More detailed sector and Ministry strategies are presented in ANDS Volume II. The objective of the ANDS with respect to eco nomic and social development is to provide effective support for the mobilization of the country’s resources through the private sector, including efficiently providing the needed physical, legal and commercial infrastructure and institutional frameworks, while taking ac tion to meet the pressing needs of the poor and most vulnerable members of the society. This strategy recognizes the need to highlight the lessons learned over the past six years. These have been reflected in common themes that run throughout the ANDS. The ANDS provides a renewed emphasis on mobilizing private sector investment, both be cause of the limited resources available, and because of the much greater efficiency of pri vate sector operations compared to state owned enterprises, Ministry implementation efforts, or donor funded and implemented activities. This principle is reflected in most of the sector strat egies under this pillar. A model for these ef forts is what has been accomplished in the tele communications sector. For many reasons, it is easier to establish a good enabling environment and regulatory framework for telecommunica tions services than it is to attract private in vestment to the development of natural re sources, infrastructure and public utilities or educational and health care services. A num ber of the approaches set out in the ANDS are built on enabling private investment to play a greater role in sectors presently dominated by state operations (e.g., power, mining) or to car rying out pilot projects to test the potential for doing so (e.g., education and commercial agri culture utilizing state owned land). An attempt has been made to create more fo cused Ministries and government agencies based on well defined mandates, in line with their capabilities within the appropriate role of the public sector activities, and with mecha nisms in place to efficiently monitor and evalu ate their performance. In some cases, past at tempts to establish the role of Government in the economic and social development process, for state building purposes, left Ministries and Government agencies with very broad and un realistic mandates and objectives. Economic and Social Development 137 Efforts are also being made to devolve respon sibilities for narrower tasks to results-oriented departments or authorities, providing the man agers of these institutions with sufficient au thority to achieve results. Thus, responsibility for Urban Development is being devolved down to Municipalities, where municipal lead ers are expected to be more responsive to the needs of their cities and more accountable to their residents for municipal services. Similar devolution of both operational control and re sponsibility is at the heart of the National Soli darity Program’s efforts to enable Community Development Councils to implement projects to the benefit of their communities. Accord ingly, independent regulatory authorities will be established with well defined mandates to encourage private sector investment and put in place regulatory frameworks needed to assure effective competition. For example, river basin authorities will eventually be given greater au tonomy and responsibility for development of the five major river basins in the country; a Civ il Aviation Authority will be given greater re sponsibility for civil aviation development and safety. Various regulatory authorities are al ready being given a mandate to create the con ditions necessary for attracting private invest ment while maintaining a competitive market place. At the same time, provincial governors are being given greater responsibility to over see development activities in their provinces, to be coordinated by the Independent Department for Local Governance under the supervision of the President. 138 A fghanistan N ational D evelopm ent S trategy (A N D S ) Table 13.0.1. Cross Cutting Issues in Social and Economic Development Pillar Sector Anti Corruption Gender Counter Narcotics Environment Regional Cooperation Capacity Development Energy A high priority on improved sector gov ernance and the devel opment of improved procurement, tender and contracting proc esses will mitigate cor ruption. By promoting in creased private sector participation, interna tional operating stan dards and government as sector regulator, a new paradigm for sec tor operations can im prove transparency, service quality and compliance with the law. Improved local energy can reduce traditional women’s household burdens through efficient stoves, water pumping and agro processing that will also improve the health of women and other house hold residents(i.e., young children, older relatives). Improved supply of power can have an im mediate impact on local communities by increas ing employment and drawing labor from poppy productions. Energy as a business— power generation, sup ply and fuel supply— can provide alternative employment to those without options for em ployment in many communities. Improved sector govern ance includes environ mental regulation as well as meaningful measures for enforcement of stan dards. Emphasis on energy effi ciency, renewable energy, and improved cooking fuels will have measur able impact on improved environmental condi tions. The current energy law provides for environ mental protections that are now being developed. Regional coopera tion in the trade and transmission of energy products plays an important part in the expan sion of power supplies in Af ghanistan. Improved technical, commercial and regulatory skills are essential in all en ergy sub-sectors. This strategy supports (1) the development of vocational train ing for power and energy sector workers to become familiar with installation, health and safety and monitoring of op erations; (2) improved university and other academic training to instill project finance, project management, legal skills and overall commercial capacity; (3) pro fessional training for Government offi cials to implement important regulatory and oversight functions; (4) commercial skills to manage and operate the sector. Transport The strategy provides a framework to improve governance in the Transportation Minis try. This includes ex panding merit-based selection and perform ance based contracts for key staff. Penalties for corrupt practices are also specified. Government Trans port agencies will increase female participation through additional training and new opportunities Greater consulta tion with women. Also implement the National Action Plan for the Women of Afghanistan. Support enforcement activities of the MoI and police against narcotics smuggling. Checkpoints for narcotics smuggling will be built into border customs clearance sta tions, truck pull-offs for permanent and roving weigh stations, and ur ban bypasses. Civil air ports will be secured against narcotics smug gling. Environmental impact assessments and man agement plans will be prepared and imple mented in accordance with Afghan Law for all works. Better quality roads improve the effi ciency of vehicles, reduc ing per km fuel usage. Fuel and other petroleum products must be clean in order to meet Afghan environmental standards. Improved trans portation links will significantly improve Afghani stan’s links with regional and in ternational mar kets. This will strengthen Af ghanistan’s posi tion with a num ber of trading groups, including SAARC, CAREC, SCO and ECOTA A Transportation Training Institute will be established to boost capacity of sector Ministries and institutions. This will help strengthen the planning capacity of staff for all transport modes for feasibility studies and infrastructure planning. Capacity will be increased so that Minis try staff are able to conduct drivers’ li censing tests, vehicle safety inspections and enforce traffic flow regulations. Ca pacity will also be increased in the Civil Aviation Authority in order to take over control of civilian airspace from interna tional forces 139 E conom ic and Social D evelopm ent Sector Anti Corruption Gender Counter Narcotics Environment Regional Cooperation Capacity Development Water Resource Management Adoption of a River Basin ad ministrative struc ture should de centralize tradi tional mecha nisms which have been prone to foster corruption. Access to clean water and im proved sanitation facilities will im prove health in households, there by benefiting all household mem bers but particu larly women who often are caretakers and who face threats to health during child birth. Implementing strong water strategy programs having extensive user participation should infuse effective anti narcotics sentiments into the populace. Control of water allocations could be sued to discourage the poppy cultivation and encourage production of other high value crops. Environment Law establishes a framework for the conservation and productive use of natural resources, including water, granting enforcement and per mitting rights to the govern ment to be implemented through NEPA. Water sector strategy programs and the sector’s institutional structure will be used to sup port environmental policies, regulations and laws. Since water resources require the rationaliza tion of use by different countries, regional cooperation is re quired for effective management of water resources shared by different countries. It is an important factor in developing effective management of sev eral key river basins. Water sector capacity building programs are essentially targeted at the three principal develop ment components: Insti tutional, organizational, and individual. And, each component is fur ther sub-divided amongst various relevant sub sectors comprising water resources man agement, rural and urban water supply, and irriga tion. Information and Communications Technology (ICT) E-Governance and other E Enabled services will reduce the scope for corrup tion because it provides better records and more information Mobile and Elec tronic commerce will make it possi ble for women to work at home and be commercially viable without of fending cultural sensitivities. Better communications will improve enforcement and detection Telephone services and the in ternet reduce the need for phys ical travel. It reduces congestion costs and pollution from vehicle emissions. Better communica tions assists regional cooperation. Communications are at the forefront of skills development. Effective communication encour ages computer literacy which is a key capacity constraint in Afghani stan. Because it is based on English, it encourages key language skills. Urban Development More effective scrutiny of tender ing for public sec tor projects Monitoring of sources of finance for private urban development, Women will bene fit from improved living conditions as a result of upgrad ing. Improved living conditions could enhance levels of Contributions could be made to demand-reduction through sustainable em ployment and vocational training. Introduction of an environ mental focus in planning proc esses and new regulatory frameworks, to cover wa ter/waste management, pollu tion control, etc. Enforcement of environmental impact assessments for all ur Focus on the specific situation of frontier cities, including Herat, Mazar, Jalalabad. Take account of the potential for regional business in develop ment of new cities. The strategy includes a strong focus on reform and strengthening of key urban institutions, both at the central and re gional level, as a precon dition of effective urban governance. 140 A fghanistan N ational D evelopm ent S trategy (A N D S ) Sector Anti Corruption Gender Counter Narcotics Environment Regional Cooperation Capacity Development where appropri ate. female education. Women could en joy access to hous ing finance and economic devel opment initiatives. Roles and respon sibilities of female professionals in government will be enhanced. ban projects. There could be RC for urban planning. Mining There will be im proved sector governance aimed at increased le gitimate private investment. Reforms include improved tender and contracting functions of Gov ernment, and drafting of fun damental legal and regulatory documents, as well asthe estab lishment of legal, financial and monitoring insti tutions. There have been virtually no wom en entering the sector in recent years. A targeted initiative for “Women in Min ing” to improve female employ ment will be sup ported. Mining will be an alterna tive source of employment in some poppy growing regions in the South. Inspectorate and Cadastre to be established at the Ministry Mines. This includes environmental inspection and regulation. Regulations will be specifically drafted that address environ mental requirements for public and private investment. There is already con siderable cross-border trade in this sector. Opportunities to for malize these arrange ments and enhance government revenues exist. Government will con sider opportunities to work with cross-border countries where im proved transport (i.e., select light rail) and infrastructure may have mutual benefit. The Ministry proposes capacity building for its staff members. Capacity building will be required to implement the hydrocarbon and mineral legislation, and bidding and tendering processes, including ten der evaluation. 141 E conom ic and Social D evelopm ent Sector Anti Corruption Gender Counter Narcotics Environment Regional Cooperation Capacity Development Education This issue has been addressed with institu tional strengthening programs in all Minis tries. There are also improved accounting procedures and sup port with procurement that will lower the probability of corrup tion. The strategy re duces barriers for women to enter the education sector both as students and teaching staff. There will be spe cific counter nar cotics programs introduced into primary and sec ondary school cur ricula. In addition an anti narcotics message will be built into the sports program Environmental is sues will be incorpo rated into the pri mary and secondary curriculum The education system is regionally dispersed. The primary and secondary strategy has a component to support remote and disad vantage communities. The universities in Kabul and in the provinces are to be considerably upgraded, and each university will be supported by a recognized external university. Lack of capacity development in the past has resulted in a failure to spend allocated funds. An inter-ministerial committee with the education Ministries and Ministry of Finance has been es tablished to solve this problem. Capacity building projects have been included in MoE ad MoHE. Culture, Media and Youth There will be institu tional strengthening program at the Minis try. As part of this, an in ternal audit department and a computing de partment will be estab lished and there will be a review of security procedures. Legal and diplomatic efforts to retrieve miss ing artifacts will also be made Gender will be a core issue covered in all state owned media. The Ministry will work closely with the Ministry of Counter Narcotics and seek advice from them about the incorporation of an anti drugs message in all forms of media. The National Youth Program, through all its components will promote a drug-free society. Preservation and rehabilitation of his torical sites and arti facts makes an im portant contribution to the environment. Under the Youth Program, youth will be encouraged to become involved in environmental pro grams Tourism, culture and media can be further developed through an effective and fruitful cooperation with regional partners. Regional cooperation can also support and ensure the efforts of MoIC by strength ening the legal framework and the enforcement of the law in relation to archaeo logical sites to stop illicit traffic at the borders, and awareness-raising at both the national and the interna tional level. The major capacity weakness is the lack of qualified staff at the Ministry. The Ministry requires a computer department with trained staff ,software and hardware, an inter nal audit department with ac countancy skills, and officials with legal skills to deal with draft ing legislation and retrieval of artifacts 142 A fghanistan N ational D evelopm ent S trategy (A N D S ) Sector Anti Corruption Gender Counter Narcotics Environment Regional Cooperation Capacity Development Agriculture and Rural Development All programs within the Sector Strategy emphasize account ability and transpar ency. Local governance pro grams reduce corrup tion, since the act of community ownership and participation promotes a sense of obligation and ac countability, which is continually reinforced through all functions of project manage ment. The focus on com munity level devel opment promotes gender mainstream ing and gender balanced develop ment. Strategy is designed to ensure that women have community representation and to promote gender sensitive develop ment planning, im plementation and monitoring of all pro jects. Involvement in in come-producing ac tivities. Skills development and other capacity building programs will contribute fur ther to both women’s empowerment and increasing household income levels. The Sector Strategy focuses on providing viable income generating alterna tives by raising the profitability of licit crops, promoting market linkages and creating off-farm employment. Rural communities are closely knit. Those communities isolated from gov ernment are more prone to grow poppy and other illicit crops. Those benefit ing from integrated rural development programs are less likely to grow poppy. Improved govern ance can influence entrenched attitudes and is therefore vital to the enabling envi ronment to tackle drugs production. The Government will provide ca pacity develop ment to assist communities to be able to manage their natural re sources and im plement projects based on sustain able use. Government is currently devel oping the regula tory environment in such areas as environmental impact assess ments, protected areas manage ment and compli ance and en forcement. Strategy is to develop insti tutional linkages in the areas of collaborative research, technology transfers and training/skills enhance ment, and the exchange of scientific information with regard to Afghanistan’s dis aster preparedness program. AREDP will require a high level of regional interaction, particularly in the area of current imports and poten tial future exports. Afghanistan’s membership in the South Asian Associa tion for Regional Co operation (SAARC) will implement a Regional Food Security Reserve and pro posed Regional Food Bank The Center on Integrated Rural Development for Asia and the Pacific (CIRDAP) is a regional intergovernmen tal autonomous organization established for the promo tion of integrated rural de velopment in the region. Capacity development is an inte gral part of the ARD Sector Strat egy. In addition to internal capac ity building and institutional re form both at the central and local levels, every program intervention in agriculture and rural develop ment has a significant capacity development component. 143 E conom ic and Social D evelopm ent Sector Anti Corruption Gender Counter Narcotics Environment Regional Cooperation Capacity Development Health & Nutri tion Strategic actions re lated to anti corruption include: Establish Health Ser vice Ombudsmen unit as a fully autonomous entity. Promote public awareness campaign related to the Health Service Ombudsmen.. Raise professional standards in key MoPH entities. Promote Civil Service Commission Code of Conduct. Establish permanent MoPH transparency working group. The Basic Package of Health Services is aimed at women and children. The MoPH has placed emphasis on having fe male health staff em ployed at every health facility. Increased number of qualified female health workers at local facilities. Increase awareness of gender and health and rights, raising women’s decision-making role in relation to health seeking practices. Ensure that women have equal employment op portunities within the Sector. Monitor equity issues. The MoPH is the line Government of Afghanistan agency with primary re sponsibility for de livery of treatment and rehabilitation services to drug users throughout Afghanistan and implementation of HIV prevention programs. Strategic actions related to counter narcotics include the implementation of the National Drug Control Strat egy and of the Counter-Narcotics Implementation Plan. Environmental health, including water and sanitation, indoor and outdoor air quality and proper housing is an important pillar of public health. Strategic actions re lated to the environ ment include the en forcement of existing laws, by-laws and reg ulations; strengthening human resource exper tise in the field of envi ronmental protection; raising awareness of environmental issues with the public; formu lating a National Envi ronmental Action Plan for Afghanistan; and monitoring progress toward the achieve ment of a clean and safe environment. Afghanistan is fully com mitted to the implementa tion of International Health Regulations 2005 (1384), through which the MoPH is responsible for detecting, reporting and responding to all public health emer gencies of international concern. Afghanistan has increas ingly become a full partici pant in health activities in the South Asia region and its role in international or ganizations, including WHO and UNICEF, has strengthened over the past few years. Strategic actions include implementing the Kabul Declaration on Regional Collaboration in Health and fostering a stronger partnership with Iran and Pakistan that will provide a platform for dialogue and ensure joint actions for ad dressing critical cross border health issues. The strategy provides a framework for increasing the capacity of staff in the sector to better deliver health and nutrition ser vices. Strategic actions include undertaking a Training Needs Assessment of MoPH staff; building the core skills of MoPH staff in English, report writing, basic computer skills, basic management and introduc tory public health; estab lishing different levels of training courses suited to the Afghan situation; im proving the coordination between MoPH and its partners in the implementa tion and revision of the MoPH training plan, and determining unmet training needs based on the job de scription of the employees. 144 A fghanistan N ational D evelopm ent S trategy (A N D S ) Sector Anti-Corruption Gender Equality Counter-Narcotics Environment Regional Cooperation Capacity Building Social Protection To improve management of the direct cash transfers and eliminate irregularities. to ensure that distribution of the land plots will be free of corruption To introduce benefits for chronically poor female headed households, victims of violence and other cate gories of women “at risk.” To improve legislation to ensure women’s rights to inherit. To improve “Food for Scholl” programs to increase primary school enrolment of girls. To introduce free legal ad vise benefit for women “at risk” and improve women’s access to justice To improve treat ment of drug ad dicts. To improve rehabili tation of drug addicts and their access to education, skill de velopment and job opportunities. To contribute to re duction in domestic drug demand and poppy cultivation by improving the social support system To prepare and implement new public work pro gram (Greening of Afghanistan) to reduce de forestation of the country and miti gate environment risk. To support implementa tion of the SAARC’s Social Protection Chart. To establish the Na tional Coordination Committee in line with the SAARC’s recom mendations. To improve MoLSAMD’s capacity for vulnerability analysis, targeting and project preparation and implementa tion. To improve the capacity of the Pension Department for implementation of the pension reform. To improve ANDMA’s capacity for coordinating the disaster preparedness process within the Government, with sub-national level and with donors and humanitarian agencies. To modernize ANDAMA’s equipment. and build regional warehouses 145 E conom ic and Social D evelopm ent Private Sector Development Removal of nui sance procedures, licenses and taxes will reduce cor ruption. Making admini stration more pre dictable so that laws are followed and administra tive discretion is reduced will also help. . Economic growth will pro vide a strong base for increas ing demand for female labor and increasing their role in all as pects of the eco nomic life of the country. Also programs that will provide women with greater access to training and credit facilities and will encour age the women owned and op erated busi nesses. Increased de mand for labor and increased investment op portunities in legal private sec tor activity pro vides an alterna tive to the in comes they are now making in the illicit narcot ics trade. Increased formalization of firms increases the likelihood that envi ronmental regulations are adhered to. Efforts at developing closer regional coopera tion with neighboring countries will help ex pand markets for the pri vate sector and contribute to the success of the pri vate sector development strategy. Open domestic markets with a strong private sec tor will further increase integration as trade, transport, communication and other links are made with neighboring coun tries. Government, donors, the private sector and NGOs will provide addi tional support to increase the skills of the Afghan workforce. This will help assist both government and the private sector. Sector Anti- Corruption Gender Counter Narcotics Environment Regional Cooperation Capacity Development Refugee, Returnee & IDP’s In the design of reintegration pro gram components such as land allo cation, shelter and housing, attention will be paid to anti-corruption measures by pro viding full trans parency on bene ficiary selection processes. Special attention will be paid to protect children, women and the elderly during the return proc ess. To improve re habilitation and reintegration into society large number of drug users will be among the re turnees. Environmental issues will merit greater focus, especially in view of the additional strains on urban and municipal infrastructure and services occasioned by possible return of further 3 million persons which will put additional pressure on natural resources; As the refugee return increases, the Government will need to pay particular attention to the potential for conflicts over land and access to natural resources (land, pasture, water, forests) especially in ethni cally mixed provinces The Government will aim to conclude and imple ment regional and bilat eral agreement on popu lation movements and migration. Plan to better communi cate to the neighboring countries the Government policies and programs for repatriation of the refu gees. The capacity for Inter-ministerial cooperation will need to be im proved. The refugee return is not responsibility of MoRR only. Capacity for program preparation and implementation will also need to be improved, especially for im mediate response to IDPs crisis. The draw down of funds from Min istry of Finance has been slow. A program/project implementation unit (PIU) has been established within MORR to assist with the Land Allocation Scheme. Afghanistan National Development Strategy (ANDS) 146 CHAPTER 8 CROSS-CUTTING ISSUES The ANDS has pursued a proactive policy with regard to the treatment of cross-cutting issues. The Government views cross-cutting issues as being of equal significance to the sector strate gies themselves. The development vision of the ANDS cannot be met without addressing the presence of large scale illegal narcotics ac tivities, high levels of corruption, gender ine quality, limited public and private capacities, a degraded environment and weak regional co operation. 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) envi ronmental management. The strategic objec tives 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 prosper ity, and ensure that restore Afghanistan’s cen tral role as a land bridge between Central Asia and South Asia, and the Middle East and the Far East, the most direct way for the country to benefit from increased trade and export oppor tunities. The reestablishment of trade allows for the re connection of Central Asia with South Asia, and the development of potentially important trade links with China, 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 already expanded with the com pletion of a bridge at the border with Tajiki stan. Anticipated outcomes of the strategy include: Enhanced regional cooperation provides Af ghanistan an opportunity to connect land locked and energy-rich Central Asia with the warm water ports of energy-deficient South Asia. As a result of this expanded trade Afghanistan would be able to meet part of its own energy needs. 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, enhancing the flow of goods, services, in vestment, and technology. Regional cooperation facilitates harmonization of standards and regulations to enhance cross border initiatives, such as greater re gional trade and investment, the exploita tion of hydro-power, hydrocarbons, infra structure development, and social devel opment. Improved border management and customs cooperation at the 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 migra tion. Cross-Cutting Issues 147 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 1381 (2002), Afghanistan has signed at least 21 agreements in trade, transit, transport and in vestment with countries and organization in the region. The Kabul Conference on Good Neighborly Relations (Qaus 1381 (December 2002), the Regional Economic Cooperation Conference held in Kabul (Qaus 1384 (Decem ber 2005), and subsequent follow up confer ences in New Delhi and the more recent Pak Afghan Regional Peace Jirga, held in Kabul in Asad 1386 (August 2007), are all important re gional initiatives. Improving bilateral, regional and international trade relationships benefits all countries in volved. Likewise, improving security benefits all countries. Part of the Government’s effort will be to work with regional partners on im plementing practical project based activities. This includes an emphasis on increasing the transfer of knowledge with regional partners. Increasing the human interaction between Af ghanistan and its neighbors, at the government, diplomatic, social and local level will lead to improved relationships. The Government is implementing a multi faceted Pro-active Regional Diplomacy Pro gram (PRDP). The PRDP will encompass secu rity, political, economic and social aspects. Under the PRDP, the Government, through relevant Ministries, will commit the necessary human and technical resources towards re gional cooperation capacity building programs, including the mobilization of Afghan Missions in the regional countries Improving security, governance, justice and the rule of law will 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 eco nomic, social, and cultural relations between the two countries. It identifies the implementa tion of infrastructure, economic and social sec tor projects in the in the Southeast as a key part of bringing security to the country. There is still some tension in the region but the Gov ernment gives the highest priority to the devel opment of projects to strengthen regional coop eration. In security, the Government will seek better intelligence sharing and cooperation in counter terrorism measures. Since late 1381 (2002), the Government has fol lowed a policy of joining effective regional groupings. Afghanistan is now the only coun try enjoying membership or affiliation in all the major regional economic groupings of the sur rounding region. In addition to the Govern ment’s ongoing efforts to join the World Trade Organization (WTO), it is also actively pursu ing the expansion of bilateral and regional trade agreements with the countries of the re gion. While Afghanistan already has in place bilateral trade agreements with India and Paki stan, the two largest members of the South Asia Association for Regional Cooperation (SAARC), there is considerable scope to in crease trade with South Asia now that Af ghanistan has become a full member of SAARC (as of Hamal 1386 (April 2007)). Since Aqrab 1384 (November 2005), Afghanistan has served on the Contact Group of the Shanghai Coopera tion Organization (SCO). In Hamal 1382 (April 2003), Afghanistan became a Partner of the Or ganization 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 in Saur 1384 (May 2005). Afghanistan is a signatory to a number of re gional consultative processes that focus on de veloping frameworks to manage migration. The Government continues to make all possible efforts to integrate politically, socially and eco nomically with its regional neighbors. COUNTER NARCOTICS Background and context The continuing expansion of the narcotics in dustry represents the single greatest threat to Afghanistan’s stability. The narcotics trade is inextricably linked to insecurity and terrorist activities, and undermines Government efforts at reform. According to the United Nations Of fice on Drugs and Crime (UNODC) Afghani stan Opium Survey 1386 (2007), the cultivation of poppy in the country broke all records in that year and the trend is likely to continue in Afghanistan National Development Strategy (ANDS) 148 1387 (2008). The number of domestic drug us ers in Afghanistan has also increased signifi cantly and illicit drugs and the corruption sur rounding 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 prov inces, poppy production has been cut in half over the past four years. In 1385 (2006) the Government adopted the National Drug Control Strategy (NDCS), which remains the overall strategy for Counter narcot ics (CN) activities. The Government is moving immediately to accelerate and improve its 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 im plementation based on the Provincial De velopment 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 ac tivities; and, Mainstreaming CN into all government poli cies. As a core crosscutting issue in the ANDS, Counter Narcotics will be the responsibility of all sectors with the MCN taking the leadership role. The goal is to ensure a rapid and sustain able decrease in cultivation, production, traf ficking and consumption of illicit drugs with a view to complete and sustainable elimination of narcotics. This will be accomplished by pro viding a conducive development environment and opportunities at the same time as direct action is taken against those involved in the sector. Progress will be measured against four priorities set out in NDCS: (i) to disrupt the drug trade; (ii) to strengthen and diversify legal rural livelihoods; (iii) to reduce the demand for illicit drugs and expand the treatment of drug users; and (iv) to strengthen state institutions at the center and in the provinces. Implementation framework The implementation of the strategy will rely on a provincial-based approach to counter narcotics, which will assign the provinces re sponsibility for developing counter narcotics action-plans aligned with the Provincial Devel opment Plans (PDPs). Governors will be con sulted in the process of developing local CN implementation plans that will ultimately be consolidated and prioritized into a national implementation plan. The governors will co ordinate the local planning process involving line departments, international organizations, districts, and communities. At the national level, the Ministry of Counter Narcotics, in con junction with provincial governors, line-min istries, the IDLG, and ANDS will help identify provincial CN priorities. They will also support the design of comprehensive provincial counter narcotics plans in line with Provincial Devel opment Plans (PDPs). The Government will increase its eradication efforts. The JCMB has established a goal of eradicating 50,000 ha of the opium cultivation in 1387 (2008). A robust system of eradication will be introduced together with strategies tied to reductions in the level of corruption and im proved access of the eradication teams to less secure areas. Targeting will be made more ac curate through mechanisms to monitor and evaluate the availability of alternative devel opment. 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 im plementing counter narcotics activities. Pro vincial-based planning will identify further roles for line ministries and other organiza tions. NDCS Chapter 3 also specifies the minis tries 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 interna tional 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 interna tional community will be asked to provide sus Cross-Cutting Issues 149 tained CN technical assistance to Afghan coun terparts. The new NDCS implementation plan will in clude a commitment by the international com munity to fund and support efforts to: Integrate CN into operations of ISAF/NATO (this is suggested but will be required to be dealt with in a bilateral manner in consid eration of the individual partner’s capacity and sensitivity. Provide adequate financing of CNTF and ad just alternative development programs to the priorities of PDPs, subject to reform and improved functioning. Increase funding of the Good Performance Ini tiative. Create markets for Afghan products through trade preferences and investment in infra structure for export. Arrest and prosecute international drug dealers and traffickers. Procure supplies and services for international military forces and organizations in Af ghanistan from Afghan sources, as envis aged in the “Afghan First” policy. Improve intelligence sharing on counter narcotics activities. Provide large scale assistance to follow up eradication and reduction in cultivation. Establish/institute production and market de velopment programs for cash crops in cer tain areas. Reduce global demand for illicit drugs. ANTI-CORRUPTION Background and context Corruption, the misuse of public office for pri vate gain, undermines the authority and ac countability of the Government, lessening pub lic 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 in dexes, “Worldwide Governance Indicators, 1996-2006” published by the World Bank Insti tute in 1386 (2007), Afghanistan is close to the bottom among the 212 countries in terms of its ability to control corruption, ranking in the lowest percentile alongside Bangladesh, Soma lia and Zimbabwe. The Government is fully committed to control ling corruption, promoting transparency and accountability through establishing new and effective preventative mechanisms and imple menting 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 encourage economic and social development based upon the rule of law, impartiality in po litical decision-making, the proper manage ment of public resources, the provision of effi cient administrative systems and the active en gagement 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 anti corruption commitment and leadership; (ii) raising awareness of corruption and evaluating the effectiveness of anti-corruption measures; (iii) incorporating anti-corruption within all Government reforms and national develop ment; (iv) improving anti-corruption enforce ment by strengthening the legal framework for anti-corruption and building a system of insti tutions 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 pri marily by the three inter-dependent areas of public administration: Improving Public Sector Management: aimed at the creation and consolidation of a moti vated, knowledgeable, skilled, efficient and effective public service sector. Strengthening Public Accountability: aimed at increasing the transparency and account ability of procedures and controls for the Afghanistan National Development Strategy (ANDS) 150 management of public resources, thereby deterring corrupt practices, or increasing the likelihood of their detection and gener ating systemic improvement to prevent their future reoccurrence. Reinforcing the Legal Framework and Judi cial System: aimed at ensuring the com prehensiveness and robustness of the legal and regulatory framework in order to sup port activities and measures of Afghani stan’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 develop ment sector strategies 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 arrange ments to combat corruption concluded by UNDP’s Accountability and Transparency pro ject. However the key partners for anti corruption will be the ministries and agencies with responsibilities for delivering the Gov ernment’s reform agenda, comprising: The IARCSC, responsible for the Govern ment-wide PAR program, directed at im proving public service management and public service delivery by addressing ad ministrative structures and systems. 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 legisla tive framework and improving the effi ciency and effectiveness of the justice and rule of law sector. The AGO, the GIAAC, and Ministry of Interior, responsible for policing anti-corruption measures and investigation of corrupt practices in the public and private sectors. The AIHRC and the National Assembly repre sentative oversight bodies, such as the Na tional 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 anti corruption 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 their 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. These commitments are embodied in the Constitu tion, Afghanistan MDGs, Afghanistan Com pact, 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 condi tion in which women and men fully enjoy their rights, equally contribute to and enjoy the benefits of development and neither is pre vented 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, includ ing 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 min istries and government agencies on gender mainstreaming.54 This strategy targets three main outcomes: A significant number of Government entities embracing and implementing gender eq uity efforts, as indicated by gender sensi tive policies, strategies, budgets and pro grams; increased expenditures on gender equity; and increasing number of ministries 54 Constraints and challenges have been addressed in detail in sector strategy paper as well as the NAPWA. Cross-Cutting Issues 151 with functional gender equity-promoting mechanisms and technically capable pro fessionals. Measurable improvements in women’s status as evidenced by reduced illiteracy; higher net enrollment ratio; control over income; equal wages for equal work; lower mater nal 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. Greater social acceptance of gender equality as manifested in support for women’s partici pation in public affairs, increased apprecia tion of the value of women’s and girls’ education, increasing number of influential men and institutions promoting gender equity; and participation of women in pol icy discussions. Implementation framework The implementation of strategy for gender eq uity is a shared responsibility among govern ment 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 mecha nisms for gender equity; and (iii) support women’s shuras. ANDS consultative and working groups will be provided with capacity to pursue gender mainstreaming. Gender ca pacities of sector professionals will be strength ened and Gender Studies Institutes will be es tablished 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 Afghan staff. A technical support program for women managers in the civil ser vice will also be created. Local chief executives are mandated to ensure that the gender equity theme is incorporated into the local develop ment plan and the overall work of the local government. Pilot programs on gender main streaming will be developed in selected prov inces. 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 all their dealings with local groups. The NGO Coordination Council will be strengthened as the major link between Government and the NGO community on the subject of gender equity. NGOs will be encour aged to target women as project participants and beneficiaries and to increase the participa tion of women in the management of their or ganizations. An advocacy and public commu nication strategy aimed at transforming nega tive perceptions and attitudes toward women will be implemented nationwide and targeted at all players in the society. Non-traditional, culturally-sensitive forms of mass communica tion will be explored for remote and tribal communities to address cultural obstacles to women’s education, leadership and participa tion 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 moni tored by the Oversight Committee and the JCMB. The gender indicators and statistical framework of MoWA will be expanded to in clude indicators on the performance of Gov ernment 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 de scription of its chiefs. Provide training on gender sensitive monitor ing and reporting. Adopt gender sensitive indicators. Collect and process sex disaggregated data. Highlight gender achievements in ministry and sector reports. Surveys that will set the baseline data for monitoring will be con ducted. Afghanistan National Development Strategy (ANDS) 152 The baseline statistics on women and men in Afghanistan will be updated annually and dis seminated to strategic users. NRVA data collec tion process will be further strengthened to support greater gender desegregation. Evalua tion will be undertaken periodically to take stock of achievements, correct gaps and adjust strategies as necessary. A mid-term evaluation will be conducted in 1387 (2008) and another in 1390 (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 techni cal and financial support will remain underuti lized or poorly utilized unless adequate sys temic capacities are built. Years of strife and outmoded methods of governance and man agement absent accountability or transparency, has weakened the public sector, particularly at provincial and district levels. There are, how ever, indications that the capacity of the public sector has been increasing over time. In 1383 (2004), ministries were able to spend roughly 31 percent of their development budget alloca tions. By 1385 2006 this c figure had risen to 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 as to whether the effectiveness of these expenditures has also increased. There are indicators that lack of ca pacity remains a serious problem within the public sector. The Government, through spe cific 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 rest with the Inter-ministerial Commission for Capacity Development (ICCD), which 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 cross-sectoral purposes. The Government encourages donors to engage qualified Afghan expatriates whenever possi ble and to make greater use of technical experts from the region. Such workers bring greater understanding of the historic and cultural envi ronment in which development activities are being implemented. Development projects that focus on capacity building should increasingly be designed to build on regional human re source capacity. The Government also recog nizes that increasing reliance on building managerial capacity in both the public and pri vate sectors will be necessary to effectively im plement the goals of the ANDS. Implementation framework To effectively implement such extensive and intensive capacity development programs in all areas will require a well-structured institu tional mechanism, which must be built and constantly strengthened. The institutional ar rangements for capacity development, in addi tion to the ICCD, include the Capacity Devel opment Working Group (CDWGs), Independ ent Administrative Reforms and Civil Service Commission (IARCSC) and the Reform Imple mentation 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 de velopment 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 can move ahead on pay and grading reform, This process requires clari fying roles and responsibilities, 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, coordi nate programs and initiatives to meet those needs, and monitor and evaluate the impact. The ICCD will monitor the progress of the ca pacity 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 explanations for their underperfor mance and recommendations for bringing per formance back on target. Persistent under performance will result in a major redesign or closing/discontinuation of the project. Cross-Cutting Issues 153 Under the auspices of Inter-ministerial Com mission on Capacity Development (ICCD) the Independent Administrative Reform and Civil Service Commission (IARCSC) will be empow ered to encourage the Reform Information Management Units (RIMUs) to work together along the lines of the ANDS/sectoral group ings, 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’ assis tance, will provide training on capacity needs assessments, capacity development activities and monitoring and evaluation. To that end, the IARCSC will: Reach agreement on specific terms of reference for RIMU. Identify any short-term technical assistance requirements. Conduct capacity assessments with RIMUs, establish and implement training pro grams. Empower and train RIMUs in capacity assess ment, capacity development, monitoring and evaluation. Reach agreement on reporting protocol through capacity development unit to In ter-ministerial capacity development com mittee. 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 capac ity development, program implementation mechanism and priority sectors have been agreed upon, there will be a need to set up a number of training projects. These will include core public sector training, financial manage ment training, procurement training, policy formulation, project development and man agement, 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 different skills and knowledge, Technical assistance from the region, given the many qualified people fully familiar with regional issues, Experienced managers trained for a variety of managerial positions. ENVIRONMENT Background and context The National Environment Strategy recognizes the need to give greater attention to environ mental protections as development occurs. In Month 1384 (May 2005), an independent Na tional Environmental Protection Agency was established, being elevated from a department previously established in the Ministry of Irriga tion, Water Resources and Environment. The ANDS focuses on developing National Envi ronment Protection Agency’s (NEPA) capacity to perform its regulatory, coordination and pol icy-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. The main goals are to: (i) secure a clean and healthy envi ronment; (ii) attain sustainable economic and social development while protecting the natu ral resource base and the environment of the country; and (iii) ensure effective management of the country’s environment through partici pation of all stakeholders. The strategy elabo rates priority program areas for environmental management based on thematic strategies that include: restoration and sustainable use of rangelands and forests; conservation of biodi versity; agreement to, and signing and en forcement of multilateral environmental agreements (MEAs); preservation of natural and cultural heritage sites; encouragement of community-based natural resource manage ment, prevention and abatement of pollution; urban environmental management, and envi ronmental education and awareness. Implementation framework Strengthening EIA awareness and the institu tional capacity of NEPA and the line ministries will be given priority. Short term and long Afghanistan National Development Strategy (ANDS) 154 term outcomes linked to the thematic objectives (e.g. conservation of biodiversity, abatement of pollution, environmental awareness, etc.) will also be prioritized based on assessment of the expected environmental, social, and health im pacts and the institutional, economic and po litical constraints. Strategic coordination of the ANDS is to take place on a sector-by-sector basis through inter ministerial and Consultative Group (CG) mechanisms. Under the CG mechanism, the environment features as a cross-cutting issue, but is also a sectoral issue in its own right. En vironment must be mainstreamed across all sectors and in each program area through the development of policy benchmarks to ensure that Government, donors and implementing agencies follow established norms with respect to the incorporation of environmental consid erations into the design and implementation of projects, and that they provide adequate over sight and monitoring of the environmental im pact of economic and social development pro jects. There is a defined institutional arrangement for implementation and monitoring of environ ment themes. Groups engaged in the imple mentation of the ANDS will play a crucial role in ensuring that issues encountered in the im plementation of programs and ministe rial/sectoral strategies are effectively ad dressed. Their assessment must be frank, iden tifying the problems encountered in the im plementation of these activities. This will allow the Government to more effectively address issues and meet its obligation to report to the Oversight Committee (OSC) and the JCMB on its progress in fulfilling these objectives. CONCLUSION The ANDS consolidates critical crosscutting issues and integrates them into sector strate gies. 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 vola tile region and improving the prospects for economic growth and development in Af ghanistan. A key objective in the regional co operation strategy is to remove barriers to in vestment and trade so that regional investors will be better able to do business in Afghani stan and Afghan firms will have greater access to regional markets. The elimination of the narcotics industry is es sential for increasing security, improving gov ernance and strengthening the formal economy of the country. The large amount of money derived from narcotics supports terrorism and creates opportunities for corruption in public institutions. Narcotics produced in Afghani stan 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 essen tial so that the country is able to make use of a major human resource that has long been sig nificantly under-utilized, Afghan women. Re moving barriers that prevent women from full participation in all aspects of public and private life requires comprehensive efforts by the Gov ernment, donors and throughout the private sector. Developing the capacity of the Afghan people to effectively govern their country and to en gage in productive employment is essential if poverty is to be substantially reduced. The Government has established mechanisms to ensure that the enormous resources being de voted to developing capacity in the public and private sectors are utilized in the most effective ways possible. Achieving these goals require a long term vi sion. All of the cross-cutting issues will have significant impacts on core national objectives as poverty reduction, economic growth, peo ple’s participation in the development process, human rights, reduction of social vulnerability, an enhanced role for civil society, effective pub lic administrative reforms, the development of a sound legal system and expanded financial opportunities. PART III AID EFFECTIVENESS AND COORDINATION Aid Effectiveness and Coordination 157 CHAPTER 9 AID EFFECTIVENESS AND COORDINATION The Government will continue to maintain the principles of the Paris Declaration as the cor nerstone of the ANDS. Since 1380 (2001), Af ghanistan has received more than $15 billion in Official Development Assistance (ODA), not including off-budget security spending which is not formally reported as part of the OECD DAC aid reporting system. Current estimates for total assistance, ODA and security-related expenditures are $40 to $50 billion. This chap ter lays out the Government’s approach to in creased effectiveness and efficiency as a vital element in the successful implementation of the Afghanistan Compact and ANDS. Moreover, and in spite of considerable gains in recent years, the Government remains concerned about the urgent need to strengthen the aid delivery framework (management, coordina tion, mobilization, and effectiveness) to im prove results, particularly at the sub-national level. The Government is aware that donor funds are limited. The main principle of the Government’s aid effectiveness policy is to en sure that donors’ funds will be spent in the most productive way and in line with the ANDS priorities. The other core principles relevant to this strat egy include: Afghanistazation (ownership); alignment; coordination and harmonization; managing for results; and mutual accountabil ity. PARIS DECLARATION AND AFGHANISTAN COMPACT Afghanistan and the international community agreed on the Afghanistan Compact and signed the Paris Declaration on Aid Effective ness in 1385 (2006) to improve the delivery and impact of external assistance. The Govern ment’s aid strategy is in line with the major principles of the Paris Declaration whereby (i) partner countries own and exercise leadership over their development policies; (ii) donors align their overall support with partner coun tries' national development strategies; (iii) do nor actions are more harmonized, transparent and collectively effective; (iv) resource man agement and decision-making are more results oriented; and (v) donors and partners are ac countable for development results. In addition to this the Government’s aid effectiveness poli cies are also in line with the Afghanistan Com pact, MDGs and ANDS poverty reduction tar gets. CURRENT SITUATION: ASSESSMENT OF AID EFFECTIVENESS The effectiveness of aid can be measured against attainment of MDG, Compact and ANDS poverty reduction targets. While much has undoubtedly been achieved over the course of the past six years, lack of services, high pov erty incidence and a lack of security in some parts of the country continue to undermine reconstruction and development efforts. Af ghanistan’s current reliance on aid can be at tributed to the fact that most of Afghanistan’s institutions, infrastructure and human capacity were destroyed or depleted during the three decade-long war. Despite this and since 1380 (2001), there has been noticeable progress in improving the peoples’ lives: the average per capita income almost doubled from 1380 (2001) to 1386 (2007), from US$147 to US$289, 6 mil lion children have enrolled in primary and sec ondary education, of which 35% are female; the basic package of health services is now at 87% national coverage, with immunization at 80% coverage; more than 5 million Afghans have returned home; more than 12,200 km of roads have been rehabilitated or rebuilt, including the ring road; and in urban areas especially, pro Afghanistan National Development Strategy (ANDS)158 fessional opportunities for women are begin ning to increase. AID EFFECTIVENESS STRATEGY FRAMEWORK Experience in other countries has shown that external aid has in many cases, contributed to economic growth, private sector development, and poverty reduction. The Government is strongly committed to making aid more effec tive by working with donors to achieve the benchmarks set out in the Paris Declaration and the Afghanistan Compact. The Govern ment will continue to work to deepen the own ership and successful implementation of the ANDS. This will require the full cooperation and assistance of the donor community. The motivation behind this commitment is simple: the realization that making aid more effective by reducing overlap, duplication and the ad ministrative costs will have a significant im pact on increasing the benefits of aid in the long term. The Government will continue to provide strong political backing for economic reforms through its support of the conditions attached to programs and projects by donors. This will be strongly supported by the Government where institutions and policies are weak and the policy environment is distorted. The Gov ernment encourages program and project de signs that focus on creating and transmitting knowledge and building capacity. Over the ANDS period, post evaluation of all develop ment projects will be undertaken, and will pro vide valuable information on the lessons learned as well as improve the future design of development programs and projects. The Gov ernment’s aid policies will be based on the fol lowing principles: Maintaining Macroeconomic Stability: Sus tainable growth and poverty reduction both require a sound and stable macroeco nomic framework. The Government will continue to improve its overall macroeco nomic framework by identifying and re moving structural rigidities and market distortions to permit higher levels of eco nomic growth. A Performance/Results-based Approach: with improved monitoring , coordination and evaluation of development programs and projects by both the Government and the international community is vital in ensur ing development goals are met. Good Governance: Good governance provides the broad setting for development and the quality of that governance will have a pro found effect on development success and aid effectiveness. Building Capacity: Enhanced capacity in both the public and private sectors is critical to sustainable development. Past aid pro gramming often failed because it focused on resource transfers by donors but did not provide enough support for local capacity development to sustain these investments after donors had withdrawn support. Engaging Civil Society: Participatory proc esses, particularly those that engage civil society, are essential to establishing clear, locally-owned priorities ensuring that aid is demand-driven, has maximum impact, and meets the needs of the poorest and most marginalized people in society. Aid Effectiveness Objectives: Key objec tives are to increase aid effectiveness, maximize the impact of international assistance and achieve the following objectives: (i) improved security and stability; (ii) reduced poverty; (iii) an enhanced environment for private sector development; (iv) further democratization of Afghan society in accordance with Islamic val ues; and (v) increased social inclusion and equality. For the Government, aid is one of most important tools in implementing the ANDS. Expected Outcomes: The Government’s aid effectiveness policies will achieve the following outcomes: (i) improved security and poverty reduction; (ii) higher participation of the pri vate sector in the GDP and employment; (iii) higher school enrolment and literacy; (iv) greater social inclusion; (v) lower infant and maternal mortality; (vi) improved access to a higher quality of public services, and (vii) im proved human rights. Developing Priority Policies: Increasing aid effectiveness is a joint effort by Government, donors and agencies involved in the implemen tation of programs and projects. The Govern ment will implement reforms that will lead to greater transparency and absorption capacities. Aid Effectiveness and Coordination 159 Donors will be expected to undertake measures to improve aid delivery in line with the Paris Declaration. Building Greater Ownership: The Govern ment has demonstrated a genuine commitment to lead the development process and make aid more effective by establishing the Afghanistan Compact and signing the Paris Declaration in 1385 (2006). Afghanistan’s long-term devel opment vision, as set out in the ANDS, identi fies and articulates national priorities in the medium term. All assistance should be aligned with ANDS priorities as presented in the sector strategies. To this end, the Ministry of Finance will monitor the Government’s total aid portfo lio and it will, in collaboration with line minis tries, encourage donors to channel their re sources in a manner that is consistent with the principles of Islam, the Government’s Aid Pol icy and the ANDS priorities. Improving Public Finance Management: Although the tax system does not directly re late to aid effectiveness, its further strengthen ing will increase domestic revenues and the Government’s potential to allocate more re sources to fund recurrent costs of donor funded projects. The tax system is in the proc ess of being strengthened. Institutional capac ity for efficient tax collection will improve tax administration at all levels. The Government’s domestic revenue collection has significantly improved, to the point where today it covers as much as 64 percent of recurrent expenditures. Even though the Government is putting in place increasingly effective public financial management systems, it still faces major chal lenges. The Government seeks cooperation from its development partners to channel more funds through the Core Budget, an important step for enhancing financial management sys tems. The capacity to implement the Devel opment Budget more efficiently will improve, resulting in a higher donor contribution to the overall Core Budget. The Government’s target is for 75 percent of aid to be channeled through the core budget. Major public administration reforms being im plemented or planned—such as the introduc tion of a merit-based civil service system, and professional management of government min istries and departments, or the creation of a more formalized budget, procurement, and audit processes and agencies—had their roots in the desire of the Government to avoid earlier abuses of graft and political patronage. Equally important will be the Government’s accountability to the Afghan people with re gard to the expenditure of aid money, which will be supported by the ongoing efforts of the MoF to develop the Public Expenditure Finan cial Accountability (PEFA) framework. This process will be strengthened by: (i) deep ening the linkages between the ANDS, MTFF, MTB and in the future, with the MTEF; (ii) en hancing the “budget literacy” of citizens and civil society organizations through engagement in budget processes; (iii) support to civil society organizations and downward accountability in the context of decentralized service delivery; (iv) assessing the experience gained under the National Solidarity Program and the National Rural Access Program and disseminating these lessons; (v) regular reporting to National As sembly and other public entities in how budg etary resources (core and external) are being spent; (vi) better communication with the pub lic using the ANDS framework on plans, aid received, disbursed, outcomes and impact, and (vi) supporting civil society organizations and non-governmental organizations to ensure that local governments are held accountable on how aid money is being spent to improve the peo ple’s welfare. Curbing Corruption: The drug trade, porous borders, and informal markets have led to in creased corruption in public institutions. The Government is conscious of the fact that cor ruption and aid effectiveness are inversely cor related and is therefore committed to signifi cantly reducing corruption. Some of the meas ures designed to improve anti-corruption in the area of aid delivery include: (i) increase pub licly available information about donor aid provision at the national and provincial levels; (ii) harmonization of donor support around the Government’s anti-corruption strategy as pre scribed in the ANDS; (iii) increase donor sup port for preventive action based on corruption vulnerability assessments of specific processes and actions by government departments and agencies, and (iv) eliminate the narcotics indus try in a manner that provides alternative sources of income to the farmers. The Government has also passed the Public Finance Management Law, Procurement Law, Afghanistan National Development Strategy (ANDS)160 and the Auditing and Accounting Law, and will ensure that these laws and regulations are implemented and enforced diligently. As cor ruption is one of the main causes of ineffective aid delivery, the Government will address this issue in an affirmative manner to win the trust, confidence and continued support of the donor community. Improve information on aid flows and predictability: Incomplete Official Develop ment Assistance (ODA) reporting to the Gov ernment, including reporting on the activities of Provincial Reconstruction Teams (PRTs), civil society organizations and the international NGOs has limited transparency and hindered the Government’s ability to monitor and man age external assistance. This information is critical to planning and budgeting processes as well as to the execution of the development budget. The MoF expects that the ongoing Paris Declaration Survey will improve informa tion about the aid flows. Additionally, a lack of multi-year commitments by development partners has made it difficult for the Government to plan for the medium to long-term allocation of resources to national priorities. Consequently, it has been difficult to obtain a complete picture of external assistance to Afghanistan. The conduct of the Financial Reviews and the implementation of the Harmonized Reporting Format since Mizan 1386 (October 2007) will enable the Government to access comprehen sive and coordinated information on aid flows as well as highlight the problems and issues that impede project implementation, and im provements in aid management. Reducing High Transaction Costs and Parallel Funding Mechanisms: Even though significant progress has been made in terms of aligning external resources and priori ties of the ANDS a number of challenges still remain. For instance, a significant proportion of external resources provided are still being routed directly to projects by donors. Funds channeled through the Core Budget, by means of pooled funding modalities, including the Afghanistan Reconstruction Trust Fund (ARTF), Law and Order Trust Fund for Af ghanistan (LOTFA) and Counter Narcotics Trust Fund (CNFT) will be fully integrated into national planning and resource accountability systems across the different layers of Govern ment. Funds disbursed through the external budget often have high transaction costs, particularly those funds disbursed to stand alone projects. As highlighted in the Afghan Economic Impact study, the greatest local economic impact is obtained when resources are provided directly to the Government (local impact around 85 percent) compared to funds provided to inter national companies (less than 20 percent) to carry out projects. Where funds are disbursed through the external budget their economic impact is maximized when spending is on lo cally procured goods and services. To manage its own resource allocation in an effective manner and ensure maximum align ment with national priorities, the Government will require that information on all activities financed under parallel funding mechanisms be communicated to the MoF in a timely man ner. Donors who are implementing parallel funds are encouraged to show flexibility in aligning their projects with ANDS sector strategies and having definite time-lines for eventually bringing such assistance on-budget. Prior to the allocation of resources for parallel funding, there should be consultation with the Government through existing consultation mechanisms (CGs, WGs, Aid Effectiveness CG and JCMB). This will help improve aid coordi nation, management, mobilization and effec tiveness. The Government’s aid policy calls for the reduction of parallel funding mechanisms through the gradual integration of these mechanisms within the Government’s budget and a policy of “no pinching of Government staff” by other stakeholders. Reducing Tied Aid: A significant proportion of aid provided to Afghanistan is still tied to donor countries. That is, many donors procure imported goods, mostly from their own coun tries, and import their own labor force to Af ghanistan rather than hire local workers to work on their projects. According to the 1385 (2006) Baseline Survey of the Paris Declaration on Aid Effectiveness, 56 percent of aid is “tied” in Afghanistan. This indicates that a large per centage of aid is effectively spent on technical assistance from donor countries, and is not necessarily consistent with or aligned to the ANDS. Rebuilding Afghanistan, creating jobs, Aid Effectiveness and Coordination 161 and reducing poverty requires strong local economies and “untied” aid. One of the main reasons for the slow revival of the economy is the conditions attached to donor funding. In order to help Afghanistan achieve its develop ment goals, the local impact of aid must be in creased. The Government would like to en courage donors to use more locally produced goods as well as local implementing agencies to promote greater private sector development and employment. Simplifying Aid Management Procedures and Introducing More Flexible Condi tionality: Both the Government and donors should aim to further simplify their processes and procedures for implementation of pro grams and projects to avoid unnecessary de lays. Simplification of processes and proce dures, albeit with safeguards in place to mini mize corruption which would enable the Gov ernment to manage the development process more smoothly and allow donors to allocate more resources to the reconstruction of Af ghanistan. Excessive conditionality attached to foreign assistance should be avoided at all costs. At the same time, simplified processes and procedures must ensure that there is no corresponding increase in fiduciary risk. Safe guards for donor funds have often involved special implementation arrangements that by pass mainstream Government systems. How ever, the fiduciary security derived from sepa rate controls and “ring-fencing” of aid funds has limits. Earmarking of funds is not a guar antee against fungiblility; separate controls do not address (and may worsen) the underlying weaknesses of public finance management, while the costs of complying with such safe guards may reduce the value of aid received. Improving Inter-Government Coopera tion: Inter-Government coordination is an im portant precondition for increasing the impact of international assistance. The ANDS will provide the basis for improved inter-ministerial cooperation. Based on the sector strategies. inter-ministerial committees will be established to support implementation of the ANDS. Gov ernment agencies will be responsible for im plementation of the ANDS and arbitrary prior ity setting by ministries outside of the agreed upon ANDS service delivery framework will be heavily discouraged., Central CGs will work closely with provincial coordination offices to enhance co-ordination between national and sub-national priorities. Improving donor coordination: The ANDS sets the framework for improving donor coor dination in line with the Paris Declaration, which recommends greater alignment between ODA and the ANDS. Based on this, the Gov ernment will strongly recommend to donors that their programs and the development of their Country Assistance Strategies and Joint Donors Response (JDR) be harmonized with ANDS priorities to reduce the risk of duplica tion and poor alignment and increase coordina tion and harmonization. The donor implementing agencies (NGOs) will need to increase their cooperation with line ministries to ensure that future donor-funded programs and projects support implementation of the ANDS. The JCMB, CGs and the WGs will remain the primary mechanisms for Gov ernment-donor dialogue and consultation. Future Government /donor cooperation needs to be based on the principle of mutual account ability. Furthermore, benchmarks will be de veloped to measure progress against commit ments on both sides. For its part, the Govern ment remains committed to: (i) improving ex isting coordination mechanisms; (ii) increasing collection of domestic revenues, and (iii) in creasing absorption capacity, allowing for higher migration of the donor resources from the External to the Core Budgets (especially in dealing with large sums of external funds). In return, the Government expects that the donor external funding will be in line with the ANDS priorities. Increasing the Volume and Conces sionality of Donor Assistance Significant investments are required to achieve the MDGs and benchmarks, and the effective implementation of the ANDS. The amount of money pledged per head for Afghanistan’s re construction is still low in comparison to pledges made previously to other post-conflict countries, such as Bosnia and Herzegovina. More appropriate levels of aid, accurately re flecting the needs of Afghanistan, are need. Even though Afghanistan received debt relief under the Paris Club initiative, the challenge Afghanistan National Development Strategy (ANDS)162 will be to ensure that Afghanistan’s external debt will reach the completion point for Heav ily Indebted Poor Countries (HIPC). Despite this, the majority of all future donor aid should be delivered in the form of grants, with a very limited amount of lending under favorable concessional terms. In order to increase investment while keeping debt at sustainable levels, the Government needs to mobilize significant additional re sources. At the same time, it is also important to address the Government’s absorption limits through well coordinated and executed TA/Capacity Building programs. If these lim its are not simultaneously addressed, it will be futile to seek increases in the level of develop ment assistance, even though the development needs of Afghanistan remains large. In parallel with this the Government will implement re forms that will lead to higher mobilization of domestic revenues in order to ensure fiscal sus tainability in the long run and decrease aid de pendence. Improving the Management of Tech nical Assistance (TA) Afghanistan is a large recipient of technical assistance. Over the ANDS period, the Gov ernment will ensure that technical assistance will be demand-driven and aimed at building Government capacity. In addition, it will en sure that it is delivered in a coordinated man ner. All technical assistance channeled outside the Core Budget should have capacity building components and require Afghan counterparts. Technical Assistance must focus on developing systems and procedures that local staff can util ize to perform their daily duties. Each TA should have an exit strategy as well. All terms of reference for TA must recognize this as the ultimate objective of such assistance. The Gov ernment will develop a policy for dealing with the TA to ensure higher coordination and de livery of assistance in line with Government priorities and improved effectiveness. The se lection process needs to favor foreign advisers that have proven records in capacity building. Finally, international advisers should always encourage local ownership and despite the weak capacity, should avoid being involved in decision making processes. Improved Communication with the General Public The perception of aid effectiveness has been hampered because of a failure to meet the pub lic’s expectations and the high demand for re sources. The Government will improve com munication in order to better manage expecta tions and provide transparent information about aid delivery. Ensuring Proper Coverage of Mainte nance Costs A number of development projects already suf fer from lack of planning for maintenance costs. This has damaged both project sustainability and aid effectiveness. Both the Government and donors will improve planning to ensure that maintenance cost funding is included in project implementation. IMPLEMENTATION AND MONITORING The MoF is the leading government institution for aid effectiveness issues. The Aid Coordina tion Unit (ACU), within the Budget Depart ment, is responsible for most issues surround ing the delivery and monitoring of external assistance. The Government’s aid policies lay out preferred modalities for the delivery of de velopment assistance; how it views the role of other stakeholders, such as NGOs and provin cial reconstruction teams (PRTs) in the aid de livery process; its external debt policy, and how it proposes to enhance its partnership with all donors. Preferred Aid Modalities The Government prefers core budget support (direct budget support). This modality gives the Government greater ownership and enables it to more effectively allocate resources based on needs and priorities. Direct budget support also strengthens the Government’s financial management systems by providing hands-on experience to those involved in managing and monitoring the core budget. More aid in the form of budget support would also simplify administration and reduce overheads. The Government is aware that an External Budget, as well as PRTs’ budget lines will con Aid Effectiveness and Coordination 163 tinue to exist; however, it will seek to transfer more funds to the Core Budget. In addition, the Government expects that future implemen tation of the programs and projects from the donor-funded External Budget and the PRTs budget lines will be strictly in line with the ANDS priorities. Channeling aid through already established trust funds (ARTF, LOFTA, CNTF) would be the second preferred option as this would per mit the Government to access these funds on an as-needed basis. The Government also prefers to see a progressive decline in non discretionary budget support, which distorts the allocation of Government spending across sectors and weakens the Government’s role in determining its financing priorities. Ffor this to happen, continuous progress will need to be made in fighting corruption and implementing public administration reforms. Finally, the Government prefers that donor funds be pooled rather than earmarked for individual projects. Pooling of donor funds also signifi cantly reduces the duplication of effort and leads to better coordination, management, and effectiveness of aid, especially with respect to technical assistance grants. The Government will not support provision of assistance in the form of donor preferred and designed projects based on needs assessment performed solely by donors with little or no consultation with the Government. The ap proval of the ANDS provides the framework for priority aid delivery for Government minis tries and agencies and donors. Improving Cooperation with Civil So ciety Organizations (CSOs) Both local and international CSOs active in Af ghanistan play crucial and diverse roles in de livering development assistance to the Afghan public. Generally, the CSOs mobilize public support and voluntary contributions for aid; they often have strong links with community groups and often work in areas where govern ment-to-government aid is not possible. Given their important contribution to the improve ment of the welfare of rural and remote com munities, the Government will ensure that it adopts a supportive approach vis-à-vis the work of the CSOs. The Government however, will encourage CSOs to align their assistance with ANDS priorities and conduct their busi ness according to the NGO Law and other rele vant legislation covering CSOs. The NGOs and the CSOs will be required to improve their reporting systems and provide accurate and timely information on their de velopment activities through the Harmonized Reporting Form. However, the Government remains committed to improving the reporting mechanism by introducing greater simplicity and increasing compliance as well as removing unnecessary barriers to their effective opera tion. Improving Cooperation with Provin cial Reconstruction Teams (PRTs) The Government recognizes the important role that the PRTs play in supporting the sub national governments. Given this, the Gov ernment would encourage the PRTs to assist in the implementation of priority projects through the Provincial Development Plans (PDPs), in line with national priorities (ANDS). In order to avoid duplication, all PRTs will need to re port their activities to the Government through the Harmonized Reporting Form. Securing Debt Relief under the HIPC Initiative Since receiving debt relief under the Paris Club negotiations, Afghanistan has become eligible for additional debt relief under the HIPC. The Government will continue with the implemen tation of the PRGF. Moreover, the successful implementation of the ANDS will be one of the main drivers in achieving HIPC requirements and securing debt relief. Enhancing strategic partnership The Government’s aid policy aims to strengthen its partnership with donors by en couraging information sharing and policy dia logue at both sectoral and program levels. In addition, the Government’s policy will encour age the launching of joint analytical projects between the Government and donors. That is, the Government will develop agreements—in the form of Memoranda of Understanding— with all donors in which rights, mutual obliga tions and accountabilities are clearly identified. Afghanistan National Development Strategy (ANDS)164 The following lessons learned will be imple mented across all consultative structures and platforms to ensure an effective dialogue: All CG Working Groups will remain focused on results, with time-bound action plans and clearly defined targets and milestones. Government and donors will improve their representation to ensure that only repre sentatives with adequate technical exper tise will take part in consultations. The efficiency of the Consultative Group meet ings will be maximized. The ministries and agencies chairing the meetings will estab lish secretariats that include the participa tion of technical people from the leading donor agencies. Helping the Government achieve development objectives and implementing the ANDS will be main priorities for donors replacing a donor-driven policy agenda. Where necessary, joint Government/Donor sub-groups should be formed on specific issues to improve efficiency. CONCLUSION The Government and the people of Afghani stan are grateful to the international commu nity for its timely and much needed assistance. For Afghanistan to shift from recovery-related growth to long-term sustainable development, additional, continued and efficient donor sup port will be required. Of course, building a more prosperous Afghanistan is a task shared by the people, the Government and the interna tional community. This joint effort should be viewed in the context of the common benefits that will accrue to the Afghan people and the international community, beginning with a re duction in the threat posed by terrorism and drugs. With proper support, Afghanistan will emerge as a stable and growing economy in the region, cooperating with its neighbors for mu tual prosperity, and finally at peace with its self, the region and the world. The successful implementation of the ANDS continues to depend on securing the required levels of the donor assistance. It has been widely acknowledged that achievement of the Afghanistan MDGs cannot be accomplished with current levels of international support. At the same time, it is known that success depends on the Government and donors’ ability to in crease aid effectiveness and efficiency. Gov ernment policies based on the ANDS provide a good framework for achieving this goal. How ever, both the Government and donors will have to do more to improve aid delivery mechanisms and efficiency if we are to bring more tangible changes to the life of ordinary Afghans. The Government is accountable to the Afghan people and the National Assembly on how aid is spent. The Government is com mitted to do its part to ensure the successful implementation of the Paris Declaration and their support of the Government’s policies and strategies PART IV IMPLEMENTATION AND MONITORING Implementation Framework 167 CHAPTER 10 IMPLEMENTATION FRAMEWORK The implementation framework for the ANDS is based on an integrated approach that will be structured to address the three interdependent pillars of (i) security: (ii) governance, rule of law and human rights; and (iii) economic and social development, and five cross-cutting is sues. Stabilizing conditions in Afghanistan will require continuing security operations in com bination with the implementation of the rule of law and credible sub-national governance. It will require universal access to delivery of ba sic services, in particular education, road infra structure and health, throughout the country. Figure 10.1 Implementation cycle Implementation of the ANDS will be based on an integrated approach to these challenges, uniting Government, the international commu nity, civil society and the private sector in sup port of common goals, shared policies and joint programs. The integrated approach takes as its point of departure the requirement that all ac tors not only accept a shared vision of devel opment and stabilization, as expressed in the Afghanistan Compact and the ANDS, but also to jointly plan and deliver on this vision. This process must conform to the National Budget approval process and the national programs that are at its core. In practical terms, any iden tified national priority (e.g. CNTF, food and agriculture, governance) should be given pol icy attention by the Oversight Committee prior to obtaining overall approval and direction from the Cabinet. This process would then lead to the development of a national program, which would be introduced both to the Na tional Assembly and to donors as part of the national budget process. An integrated approach makes it easier for the Government to meet challenges in a dynamic political context with multiple stakeholders, internal and external risks, and evolving secu rity challenges. A major key to success is to ensure effective coordination with the interna tional community. However, the functioning of these institutions needs to be improved and their capacity further developed. This chapter outlines: (i) lessons learned; (ii) the principles of an integrated approach; (iii) budget man agement; (iv) the necessary institutional framework arrangements; (iv) the coordination framework; and (v) integrating conflict man agement into sector strategies. LESSONS LEARNED DURING THE INTERIM ANDS The country’s development efforts in recent years have highlighted the following con straints on effective implementation: Fiscal Sustainability: Government revenue is not sustainable, with recurrent financing needs met by contributions by donors. Lack of Capacity: The capacity of Government, private sector and civil society remains weak. Low Aid Volume and Low Disbursement: Despite generous pledges, Afghanistan has not Afghanistan National Development Strategy (ANDS) 168 received the same per capita commitment as other post-conflict states. Weak Aid Coordination and Effectiveness: Despite the Afghanistan Compact and JCMB, the external budget has remained dominant, limiting coordination. Enhancing Provincial Equity and Poverty Targeting: Unequal provincial development and a failure to target vulnerability using NRVA data remain endemic. Private Sector Capacities: Inadequate attention has been given by the Government and donors alike to the enabling environment for private sector growth. Donor Alignment: Despite sector strategies and national programs, donor efforts have re mained fragmented, and there has been poor coordination and reporting as well as pro grammatic and provincial biases. Conflict Sensitivity: Development programs to date have not ensured conflict sensitivity has been mainstreamed into all development pro grams. Management of Complexity: Both the Gov ernment and donors are faced with complex policy and delivery challenges that require a concerted and coordinated effort. IMPLEMENTATION FRAMEWORK AND INTEGRATED APPROACH The Government will integrate the national budgetary process, legislative agenda and pro gram delivery simultaneously. This will re quire development partners and donors to align their efforts with ANDS priorities and activities through joint planning and evalua tion. The Government will concentrate on inte grating and delivering donor-supported pro grams that achieve the ANDS goals of: (i) sta bility; (ii) delivery of basic services and infra structure; and (iii) enabling a vibrant national economy. This integration will require a strengthening of Government machinery both at the centre (OAA, NSC, Ministry of Finance, IARCSC and JCMB Secretariat) and at the sub-national level (through the Ministry of Interior, MCN, IDLG and Ministry of Economy). This new capacity will itself require a program approach. The sector strategies and the implementation framework are premised on the application of the following principles: Enhance the Medium Term Budget Frame work, maintain fiscal sustainability, adopt sector-wide approaches and build upon Provincial Development Planning. Strengthen links between Kabul and the prov inces and support the resolution of con flicts. Target basic and essential services and social protection through national programs. Enhance budget prioritization, sequencing, aid effectiveness and provincial equity. Enhance private sector engagement to improve competitiveness. Focus on productive infrastructure develop ment. Improve security through governance, rule of law and regional cooperation. Meet PRGF and HIPC requirements. Improve government and civil society capacity through a human capital strategy. Enhance poverty and economic growth through diagnostic monitoring and impact evaluation. The proposed implementation and coordina tion framework outlined below balances the need for coordination between the Government and donors as well as for provincial based for mulation and execution capacities to enhance service delivery. This will require improved coordination between the Government and various stakeholders. IMPLEMENTATION PLAN AND THE ANDS IMPLEMENTATION CYCLE Implementation Mechanism The ANDS sector strategies will be imple mented through national programs that will generate results at the local level, and be syn Implementation Framework 169 chronized with national and provincial budget ing and legislative and evaluation cycles. The main instruments for the implementation will be the Budget and private sector. The medium term budget expenditures of the Core Budget will support implementation of the national programs that will be aligned with the ANDS priorities. This will be reflected in the Medium Term Financial Framework (MTFF). Based on the Paris Declaration, the donors will be asked to implement programs and projects from the External and the PRT budgets in line with the ANDS. The existing JCMB coordination mechanism will be used to ensure this. The ongoing activities of the MoF to cost sector strategies and develop the pro gram and provincial budgeting will enhance the process of implementation of the ANDS through the Government and donor funded budgets. Apart from the budget, the private sector is expected to play an important role in the im plementation of the ANDS, contributing to job creation, infrastructure development and reve nue mobilization. The private sector contribu tion to the country’s development was one of the criteria for the Government’s expenditure prioritization framework (see Table 10.5). It is expected that the private sector will play a leading role in the implementation of ANDS priorities in a number of sectors, such as: ICT, mining and natural resources, agriculture, pri vate sector development and others. Together these processes comprise the inte grated ANDS implementation process. To sup port this process, institutions will be strength ened and capacities built within the central Government and at the sub-national level. High priority will also be given to skill devel opment programs to meet the needs of the pri vate sector and increase employment. This se quencing of priorities is illustrated in Figure 10.2. Figure 10.2. Sequencing of priorities for an integrated approach IMPLEMENTATION CYCLE Following the approval of the Government, the ANDS will be submitted to the World Bank and International Monetary Fund and pre sented to the international community, outlin ing the ANDS funding requirements. Because the Budget is the central tool for im plementing the ANDS, all line ministries and agencies will develop and align their national programs and projects with the ANDS Sector Strategies, which will then be costed and priori tized against the fiscal framework. Based on the costing and prioritization of sector strategies, the Public Investment Program (PIP) will enable the full integration of the ANDS into the Medium-Term Fiscal Framework and the Budget and its presentation to the National Assembly. This will be accomplished by Jaddi 1387 (end-2008). The first ANDS Progress Report will be pre pared by end-1387 (March 2009). Following the Government’s approval of the Progress Report, it will be presented to the World Bank and IMF (within the context of reaching the HIPC com pletion point). This review process will also be used to continually strengthen and adjust pol Afghanistan National Development Strategy (ANDS) 170 icy and program delivery throughout the pe riod of implementation. Based on progress and evaluation reports the ANDS Review/Update will be completed by mid-1389 (September 2010). This will allow for policy correction and adjustments following the completion of the period envisaged for the implementation of the Afghanistan Compact. The implementation of the ANDS is summa rized in Figure 10.3. Figure 10.3. ANDS Implementation Cycle ROLE OF THE NATIONAL BUDGET AND THE MTFF The Budget is the funding mechanism through which ANDS policy will be implemented. High levels of insecurity have meant that the costs of many development and reconstruction activi ties have been dramatically increased. This has led to fragmentation of the policy development process, lower levels of aid effectiveness and a failure to effectively utilize the national budg etary process as an effective tool for coordina tion and prioritization. Strengthening the role of the Budget as the in strument of national policy is critical to the im plementation of the ANDS. An integrated ap proach will rely on the Budget as its principal vehicle for delivering stabilization and devel opment results. All public expenditures aimed at enhancing economic growth and reducing poverty are formulated and executed through the budget formulation and execution process, as outlined in Figure 10.4 below.55 55 The Budget is currently divided into two major components; the Core Budget, controlled by the Government; and, the External Budget, which includes Provincial Reconstruction Team Civil and Military Cooperation funds, provided and controlled by each donor individually. The Core Budget includes both Operational and Development components, 60% of which is donor provided and the remaining 40% of which comes from National revenues. The Government is committed to getting to the stage where the total Budget is Core, and is funded from nationally generated revenues, but acknowledges that it will take some time to accom plish this goal. The near-term objectives therefore are to gain Core Operational Budget self sufficiency as soon as possible, and in the mean time to move as much External Budget into the Core Budget Management Framework as practicable. Implementation Framework 171 By committing to funding national programs according to ANDS priorities, the international community will ensure that its assistance is leveraged to bring stability to the Government planning cycle. The integrated approach to planning and implementation will ensure that priorities and potential synergies (across na tional programs as well as across the pub lic/private sector divide) are identified at the planning stage and utilized to develop context specific approaches. The integrated approach will also set the conditions for external budget funds to be more easily aligned with the ANDS; if the capacity to design and deliver national programs is successfully increased, the proportion of assistance delivered through the external budget will begin to decline. Figure 10.4. Annual Budget Formulations and Execution Process A forward-looking partnership between Af ghanistan and the international community is needed to ensure that external aid is managed in line with the ANDS and recommendations of the Paris Declaration. The implementation of the ANDS will depend upon the donors to im plement more programs and projects through the Core Budget. As mentioned, effective im plementation will require that those programs and projects funded through the External Budgets and the PRTs be aligned with ANDS priorities. This approach will also require: (i) enhanced Government ownership of the devel opment process; (ii) more effective public ex penditure management; (iii) an increased focus on outcomes and service delivery; (iv) greater harmonization between Government and do nor policies, and (v) more mutual accountabil ity between the Government and the interna tional community. The Government’s current approach is based on programmatic budgeting. This will help ensure that the Budget is: realistic; based on sector strategies; has measured and unambigu ous budget management guidelines that reflect improved Government capacities; involves key stakeholders (including sub-national bodies based on provincial development plans); is transparent, with relevant, accurate and timely information provided to decision makers, in cluding the National Assembly and the public at large; is accountable through internal and external audits. Control of on-Budget resources is being strengthened through fundamental reforms of the Public Finance Management (PFM) system, including procurement, accounting, reporting, auditing, and other systems of accountability. The ANDS presents the strategic orientation Afghanistan National Development Strategy (ANDS) 172 within which future resource utilization will be determined. Specific emphases will include: Strengthening Aggregate Fiscal Discipline: Government will aim to: (i) increase the reve nue to GDP ratio; (ii) reduce the ratio of operat ing expenditures to revenues, and (iii) make progress according to fiscal targets established through the MTFF. Enhancing Resource Allocation and Utiliza tion Based on Strategic Priorities: Currently, the Ministry of Finance uses program budget ing in key sectors and ministries. This activity will expand to include all ministries, which will significantly support the integrated approach. Budgetary proposals will be examined on the basis of their alignment to the ANDS policies. Criteria specific to the following elements will need to be met: Rationale: Does this project require public sec tor finance? Does the project directly ad dress poverty reduction, economic growth or contribute to easing tensions in the communities? Does the project address cross-cutting issues such as gender? Cost-effectiveness: Have multi-year cost im plications (sustainability) and the least-cost alternative been identified, including through competitive bidding? Benefit-cost: Have the benefits (including eco nomic, social and environmental) been quantified and do they exceed the costs? Is the rate of return on expenses sufficient to justify expenditure? Risk mitigation: Do project management ca pacities exist to allow successful project implementation within the time frames? Have risks been identified and are they ac ceptable? Supporting Greater Efficiency and Effective ness in the Delivery of Services: The Govern ment will expedite the procurement of services, labor and supplies. Implement Sector Wide Approaches and Na tional Programs56: The success of these sec 56 In particular, a well-defined and operational PRS is a prerequi site for the development for the proposed Sector Wide Ap proaches (SWAPs). SWAPs involve all stakeholders (including Government, donors and NGOs) committing to using their re sources in the sector only through the Sector Investment Program toral frameworks will depend on an appropri ate enabling legal frameworks, institutional capacity, infrastructure, human resources, technical assistance, finance, baseline data and data management systems, risk management strategies, and standard audit and PFM proce dures. Further Integrate Existing Trust Funds and PRTs into the Budgetary Process: Efforts will continue to incorporate the Afghan Reconstruc tion Trust Fund (ARTF), Law and Order Trust Fund (LOTFA) and the Counter Narcotics Trust Fund (CNTF) into the budgetary process. This will ensure that these trust funds contrib ute to the effectiveness of sector wide ap proaches. To the maximum extent possible, appropriations will be made through the treas ury system. Integrate Budgetary Processes with Cabinet level Policy-making and Legislative Planning: The linkages among policy-making, planning and budgeting will be strengthened to promote more results-based performance management. Medium-term expenditure priorities will re ceive expedited treatment in the cabinet policy making and legislative processes. Program and provincial budgeting will provide multi-year budget proposals which integrate recurrent and capital expenditures. These processes will also integrate the Provincial Development Plans (PDPs) and address any provincial or regional imbalances. Tracking of Poverty-related Spending: Evalu ating the effects of public spending on poverty reduction will be enhanced by tracking of pov erty related spending within the framework of the future monitoring mechanism. The JCMB Secretariat will take lead on this in cooperation with the MoF, CSO and line ministries. ROLE OF THE MTFF The three year Medium Term Fiscal Frame work (MTFF) will continue to provide the re source framework. The MTFF allows the Gov ernment to put in place an affordable, realistic (SIP). SWAPs are considered by Government to be a tool for donor co-ordination, to reduce the administrative burden of the individual project approach to donor funding and ensure that there is a unified strategy for the sector, with no overlapping or contradictory activities by different actors. Implementation Framework 173 and sustainable medium-term fiscal framework to ensure: (i) transparency in setting fiscal ob jectives; (ii) stability in fiscal policy-making process, and (iii) efficiency in design and im plementation of fiscal policies. The MTFF will be an essential planning tool to implement ANDS and evaluate the impacts of its policies. Through the MTFF the ANDS pri orities will be considered in yearly budgeting: within the limits of the capacity, the MTFF will ensure that the ANDS implementation will be coordinated with the Budget preparations. Based on this, the MoF plans to embark on the process of developing the Medium-Term Ex penditure Framework (MTEF) to strengthen the Government’s capacity for expenditure planning. ROLE OF THE CONTROL AND AUDIT OFFICE (CAO) The role of the Control and Audit Office (CAO) will be strengthened to provide oversight of the expenditure functions of core spending minis tries. However, given the CAO’s current weak capacity, the MoF will assume these responsi bilities in the short term. BUDGET MANAGEMENT FRAMEWORK, PRIORITI ZATION AND FUNDING REQUIREMENTS FOR THE IMPLEMENTATION OF THE ANDS The Medium Term Fiscal Framework and sec tor wide programming and costing will: (i) strengthen realistic resource projections; (ii) NEED VERB sectoral prioritization; (iii) sup port fiscal sustainability, and (iv) develop budget ceilings for all budget entities. Table 10.5 (below) provides a high level sectoral overview of projected costs for the period 1386 to 1391 (2007-2012). As mentioned, the implementation of the ANDS will be aligned with the Government’s commitments to the PRGF and HIPC. The Gov ernment expenditure prioritization framework will ensure that proper resource allocation will be made to support implementation of these commitments and, if necessary, appropriate adjustments will be made. Table 10.5. Projected Operating and Development Spending (US$ m) 1387-1391 (2008-2012)57 Sector 1387 US$m 1388 US$m 1389 US$m 1390 US$m 1391 US$m Total US$m Security 3219 2585 2679 2790 2906 14179 Infrastructure and Natural Resources 1781 3093 3681 4180 4451 17185 Agriculture and Rural Development 829 921 916 909 912 4486 Education and Culture 742 893 980 1077 1181 4872 Good Governance, Rule of Law and Hu man Rights 374 558 640 685 728 2985 Health and Nutrition 325 465 530 563 595 2478 Economic Governance & PSD 237 215 230 244 260 1186 Social Protection 192 359 394 421 449 1815 Others 205 198 185 170 157 915 Total 7,903 9,286 10,236 11,038 11,637 50,100 57 Source: Ministry of Finance, Month 1387 (April 2008) Afghanistan National Development Strategy (ANDS) 174 The total estimated cost of the ANDS over the next five years (1387-1391/2008-2012) is $50.1 billion. Of this amount the Government will contribute $6.8 billion; external assistance is expected to be $43.2 billion. NATIONAL IMPLEMENTATION STRUCTURES At the national level, the following structures link policy, planning, budgeting and monitor ing of the ANDS: To facilitate coordination, 17 Inter-Ministerial Committees (IMCs) will be established, each responsible for overseeing the implementation of an ANDS sector strategy. The membership of these bodies will include the Ministers from those Ministries with responsibility in the par ticular sector. The IMCs will report regularly to the President and Cabinet and to the JCMB through the Oversight Committee. The IMCs will be coordinated by the ANDS Oversight Committee and supported by the JCMB Secre tariat. The line ministries and other Government agencies will be responsible for the implemen tation of the ANDS (program and projects) with support from the Ministry of Finance, In dependent Administrative Reform and Civil Service Commission (IARCSC) and interna tional partners. The National Assembly will be responsible for legislating an enabling environment for secu rity, economic growth and poverty reduction. Parliamentarians and committees are already actively engaged in the formulation of the ANDS. As the highest level decision-making body, The Council of Ministers, headed by the President,, will oversee progress and provide overall pol icy guidance and direction under existing legis lation. The ANDS Oversight Committee, a high-level body comprised of senior ministers, will over see the implementation of the ANDS and re port directly to the President and the Cabinet on its progress.58 MoF will ensure that the programs and projects of the line Ministries will be costed and priori tized against the fiscal framework, and se quenced and integrated into the MTFF and the Budget. SUB-NATIONAL IMPLEMENTATION STRUCTURES At the sub-national level, the following struc tures are to be established to enhance the link between policy making, planning, and imple mentation of the PDPs, budgeting and monitor ing: The Independent Department for Local Gov ernance (IDLG), under the President’s Office, will be responsible for the overall coordination of local governance; all provincial governors will report to it on the progress of the imple mentation of the ANDS. At the provincial level, the Provincial Councils, Provincial Development Committees and Pro vincial Governors will be directly involved in the implementation of the ANDS. The provin cial departments of the line ministries will be responsible for implementation of the sub national projects. At district and community levels the District and Community Develop ment Councils (DDCs, CDCs) will continue to play key role in implementation of the com munity level projects under the overall leader ship of the Wuluswal, the district administra tor. 58 This mechanism has been very effective for formulation of Millennium Development Goals (MDGs) for Afghanistan, devel opment of Afghanistan Compact and Interim Afghanistan Na tional Development Strategy (I-ANDS), prioritization of various programs and projects, and approval of policies and decisions. The effectiveness of this mechanism is supplemented by the fact that the Senior Economic Advisor to the President is also a co chair of the Joint Coordination and Monitoring Board (JCMB), which is mainly responsible for coordination between the gGov ernment and the international community. The members of the Oversight Committee are also members of JCMB. This mecha nism will be a very important implementation mechanism for ANDS because of its past experience, criticality and positioning. Implementation Framework 175 COORDINATION STRUCTURES The Government and the international com munity have established the Joint Coordination and Monitoring Board (JCMB), with responsi bility for overall strategic coordination and monitoring of the implementation of the Af ghanistan Compact. Consultative Groups (CGs) will continue to play an important role in coordinating the ef forts of the Government and donors in imple menting development programs and projects. The CGs will be an important forum for im proving aid coordination, policy and imple mentation dialogue, and ensuring alignment of donor programs with the ANDS. Each CG is co-chaired by the Minister of Finance and a relevant member of the Oversight Committee. Line Ministry representatives and other repre sentatives selected by the co-chairs are respon sible for the substantive work of the CGs, as sisted by the Secretariat. Working Groups (WGs) have been established for each sector, and where necessary are sup ported by sub-working groups. They will re main the key forum through which line Minis tries and international partners can develop programs, align efforts and monitor results. The Policy Action Group (PAG) will provide overall direction to key Afghan and interna tional actors to ensure that the interdependence of security, governance and development ob jectives guide operations and programs in or der to achieve basic delivery of services, de velopment programs and private sector-led growth, especially in conflict affected areas. At the sub-national level, the Provincial Devel opment Committees (PDCs), chaired by the Governors, will ensure coordination within the provincial administration and with donors, PRTs and civil society. INTEGRATING CONFLICT MANAGEMENT INTO SECTOR STRATEGIES There are deep concerns about the feasibility of initiating development and reconstruction pro grams due to the ongoing conflict in some provinces, as well as increasing attacks coun trywide. This insecurity is preventing the im plementation of development projects in sev eral areas of the country. The impact of conflict and violence on development efforts will be more comprehensively addressed in the im plementation of the programs and projects. The conflict evaluation mechanism will be estab lished within the existing monitoring struc tures, ensuring conflict and risks are built into aid and development programs. However, a proper diagnosis will be part of program and project preparations. The Central Monitoring and Reporting System (CMRS)59 will conduct specific assessment and analysis with the goal of integrating conflict awareness and sensitivity into all areas of de velopment assistance to ensure that develop ment programs will neither erode stability nor increase conflict. Finally, conflict awareness and peace-promoting initiatives will be incor porated into reconstruction and development assistance, and special attention will be paid to ensure that development programs do not dis turb cultural values or beliefs. CONCLUSION Implementation of the ANDS under the Inte grated Approach will require synchronization of budgetary, cabinet, legislative, program and stabilization cycles. In particular, it will require measures to further strengthen the capacity of state bodies responsible for these processes (Of fice of Administrative Affairs, Ministry of Par liamentary Affairs, Ministry of Finance, IARCSC, IDLG, NSC) as well as Inter Ministerial Committees, and those responsible for program delivery (line Ministries, provin cial and district administrations). It will re quire strengthened coordination and alignment by international partners under the overall au thority of the JCMB, delivered through CGs, WGs and the PAG. The implementation framework conceived in this strategy requires ongoing evaluation and monitoring, and an enhanced risk management mechanism, as there are significant risks to sta bility that may yet undermine the underlying assumptions. The main threat to successful implementation of the ANDS will continue to 59 See text in the Monitoring Framework for information on the CMRS Afghanistan National Development Strategy (ANDS) 176 be security. Domestic and donor resource mo bilization remains an extremely demanding challenge, which will not yield reliable long term predictability for the budget process for some time to come. Implementation of donor commitments will be highly dependent on im plementation of the ANDS reforms. There is also a risk that domestic support for the ANDS will weaken; should that occur, further consul tative processes will be undertaken to over come it. In the long term, these risks can only be mitigated not completely eliminated. The Integrated Approach reflects a recognition that building on achievements to date will re quire an unprecedented number of actors to come together to support institutional struc tures in order to overcome complex challenges. By focusing on agreed-upon programs and building coherence and synergy among activi ties at the local level, stability can be achieved in all parts of Afghanistan and a genuine na tional development process begun. In the framework of such a strategy, the Integrated Approach in ANDS implementation aims to bring visible improvements to the lives of all Afghans. Monitoring Framework 177 CHAPTER 11 MONITORING FRAMEWORK The ANDS, as the country’s spell out first (PRSP), consists of three phases: formulation, implementation and monitoring and evalua tion. The second two phases (see Figure 11.1 below) run parallel to one another, allowing actions and measures taken to be monitored, thereby providing an indication of their effi ciency and effectiveness in meeting poverty reduction and development targets. The Gov ernment has already begun establishing a Cen tral Monitoring and Reporting System (CMRS) to fulfill both internal and PRSP reporting func tions. While the CMRS will take some time to establish, this chapter outlines the core ap proach that has been adopted to measure de velopment outcomes and impacts in line with ANDS priorities, Compact benchmarks and the MDGs. As the ANDS has an increasingly pro vincial focus, with public spending linked to provincial development plans, an effective sys tem for monitoring and evaluating develop ment activities will need to be established in both the provinces and by the Government in Kabul. Figure 11.1. Formulation, Implementation and Monitoring and Evaluation Process The Afghanistan Compact benchmarks and the MDGs have been integrated into the ANDS Sector Strategies. The JCMB Secretariat, as the body responsible for high-level co-ordination, together with the line Ministries, will play a key role in high-level, strategic monitoring of the implementation of the Afghanistan Com pact and the MDGs. It will be important to distinguish between two levels of monitoring and oversight: (a) in put/output or program monitoring of the im plementation of the ANDS, and (b) out come/impact monitoring for high level Gov ernment institutions (OSC, Cabinet) and the JCMB to ensure that the strategic priorities of the ANDS are met. ANDS MONITORING AND EVALUATION PRINCIPLES In developing a responsive, manageable and outcome oriented monitoring and evaluation system, the Government commits to: Establishing a centralized and eventually pro vincial based monitoring and reporting system. Adopting a comprehensive approach to pov erty measurement and economic diagnostic work through determination of baselines and benchmarks. Adopting evidence-based systems for monitor ing and evaluating policy and implementa tion. Afghanistan National Development Strategy (ANDS) 178 Increasing not only measuring inputs and processes, but outcomes, performance and development and poverty impacts (positive and negative). Strengthening the management of knowledge and information access around the M&E system. Increasingly, over the course of the ANDS, seeking to strengthen linkages between the M&E system and the provincial planning process. Maintaining transparency and accountability and encouraging support from NGOs, the Central Statistics Office and citizens in the provision of data and analysis of findings; Building the core institutional capacities needed to sustain M&E processes, both within the CMRS, as well as the CSO, NRVA and line ministry systems. Setting service delivery benchmarks that will utilize accepted international, specific, measurable, and realistic outcome indica tors for poverty measurement. Integrating the M&E system across the entire national budget cycle, to support the set ting of long term and annual performance targets. INSTITUTIONAL STRUCTURE The institutional structure for monitoring will include a number of Government, donor and non-Government institutions, of which the JCMB, line ministries and the CSO will play the most important roles. The Role of the ANDS Oversight Committee The OSC will remain the key high-level gov ernment body coordinating and monitoring implementation of the ANDS. It will approve bi-annual and annual progress on ANDS im plementation reports as well as the reports prepared for the Cabinet and the JCMB. The OSC makes up the Government part of the JCMB. The role of the JCMB The JCMB is the strategic level coordination mechanism between the Government and the international community. It will focus on re solving strategic problems arising from the im plementation, coordination and monitoring not only of the Afghanistan Compact but of the entire ANDS. Co-chaired by the Government and the United Nations, it will provide: (i) high level oversight, ensuring an integrated ap proach to delivery of the Compact and ANDS; (ii) directions to address any obstacles or bot tlenecks surrounding implementation, coordi nation and monitoring of the ANDS; and (iii) report on the implementation of the Afghani stan Compact and ANDS to the President, Na tional Assembly, the UN Secretary General, the international community and the public. The Role of the JCMB Secretariat The JCMB Secretariat will provide policy and strategy analysis/assessment, monitoring and evaluation reports to JCMB on the overall im plementation of ANDS and Afghanistan Com pact Benchmarks, as well as support for the standing committees. The Secretariat will strengthen its capacity to provide independent analysis in support of the JCMB’s oversight and problem solving role. The capacity of the JCMB Secretariat must be significantly strengthened to perform these tasks. The Role of the Central Monitoring and Reporting System (CMRS) The CMRS will be developed within the JCMB Secretariat and Ministry of Economy as the Government’s central machinery for support of the monitoring and reporting process. Along side the CSO, it will serve as the hub for all na tional monitoring, with a particular focus on monitoring and evaluating the impact of the Compact and the ANDS. It will not function in isolation but will bring together information from the CSO, sectoral ministries, consumer price indices, the NRVA, Afghanistan Financial Monitoring Information System, Afghanistan Country Stability Picture (for ISAF), Afghani stan Information Management Service, Donor Assistance Database and GeoBase, and the Pro ject and Activity Tracking system of USAID/Afghanistan. The CMRS will focus on data analysis and re porting of outputs, outcomes and impacts. There will be no conflict between the roles of the CMRS and the CSO, as they will operate at Monitoring Framework 179 opposite ends of the data systems. While the CSO will concentrate on data collection through, including surveys, the CMRS will be collating the filtered data produced by the CSO and will facilitate various monitoring processes and disseminate information. They will in fact complement each other. Finally, the CMRS will be responsible for gathering information on the extent to which programs include strategies for reducing the impact of conflict, and to main stream this into programs based on criteria to be developed within the JCMB Secretariat in cooperation with the Government and line ministries. The Role of the Central Statistics Office (CSO) The CSO will remain the main provider of pri mary and secondary information in relation to national statistics. The CSO is currently com piling statistics on national accounts, prices, external trade, population and demographics for monitoring economic, financial, and struc tural policies. The capacity of the CSO will be strengthened so that a meaningful statistical system can be put in place to provide useful data on various macro-economic processes and important sectors. To this end, it is necessary to strengthen the collection of operational data in various sectors through respective agencies. The CSO will coordinate data collection sys tems in various ministries and organizations. The Role of NRVA and Other Surveys One of the most important data-capturing exer cises has been the NRVA surveys, from which the current poverty line has been calculated. Three surveys have already been conducted and provide critical information on poverty and other important sectors. The role of these surveys will be expanded s to meet the imme diate data needs of additional sectors. Multi purpose household surveys will be conducted under the supervision and guidance of the CSO. The NRVA and future household budget surveys will serve as the key source for moni toring critical poverty and social outcome indi cators and for completion of reports on the poverty situation (see Appendix III). The Role of the Line Ministries Line departments will continue to collect sector relevant information to monitor the output and sectoral outcome of national spending through the ANDS. The CMRS and CSO will work closely with line ministries to standardize methodological approaches to monitoring Na tional Programs. The Ministry of Economy will be responsible for the wider inter-ministerial coordination. The Role of Provincial Offices The line ministries will strengthen their pro vincial offices to collect disaggregated data on all indicators to monitor progress on individual projects at the provincial, district and village levels. The provincial offices and institutions of sub-national governance will utilize moni toring, support and reporting mechanisms to feed data to the line ministries to assist in pro vincial budgeting, planning and monitoring of the overall implementation of the ANDS. The Governor will report to the Provincial Councils on the progress of implementation of the sub national ANDS priorities and other parts of the PDPs. The Role of the National Budget The Budget remains the central tool of Gov ernment policy. The close day-to-day working relationship between the MoF (AFMIS), the various budget entities, the CMRS and CSO will provide vital information in setting and costing sectoral priorities and targets to be funded through the medium-term budget framework. Annual targets will be reported against the agreed sectoral baselines and the Budget hearing sessions will increasingly move towards reportage of Budget outcomes, not just financial and input reporting. The Role of Donors, IFIs and the UN The Government will continue to request sup port from international partners in: (i) develop ing analyses of the main obstacles to more rapid growth and poverty reduction; (ii) dis cussing the quality, coverage and timeliness of key data, including possible final and interme diate indicators; (iii) assessing the main policy issues confronting the Government in the mac roeconomic, structural, and social areas, given the core objectives of promoting growth and Afghanistan National Development Strategy (ANDS) 180 reducing poverty; (iv) assessing the current “resource envelope” and, within this, the pos sible scale of expenditures for poverty reduc tion; and (v) discussing current levels and the nature of external assistance, and prospects for increased aid over the medium-term. The role of NGOs and Civil Society Independent monitoring and reporting by NGOs, CSOs, the media and other civilian bod ies will be a vital part of the overall monitoring and reporting system. Their participation will be encouraged and actively supported. They will play an important role in the external monitoring of the ANDS implementation, which will be carried out in continuing consul tations with NGOs and the civil society, sub national representatives and the international community. MONITORING AND EVALUATION REPORTING For the purposes of the Compact and the ANDS, the JCMB Secretariat will provide ad hoc, periodic impact evaluation reports to the Government, the public and international part ners. The JCMB Secretariat will produce and the Government will approve annual progress reports on ANDS implementation, to serve as the basis for reporting. The Annual ANDS re port will be presented to the Board of Directors of the WB and the IMF. This report will indi cate to what extent outside views are sought and incorporated into the report, particularly of the IMF, World Bank and UN. Based on annual progress and evaluation re ports every two years, a full update of the ANDS/PRSP, developed with broad participa tion, will be submitted/presented as an impact evaluation. This update, which will be publicly disseminated, will provide an opportunity for all stakeholders to assess progress on imple mentation and adjust policies to achieve higher efficiency. In order to evaluate the effects of the ANDS on poverty reduction, the JCMB Secretariat will produce reports on the poverty situation every three years, timed to coincide with the comple tion of the NRVA surveys, which will continue to be the most important instruments for the collection of poverty related data and the Secre tariat will produce annual MDG progress re ports. Finally, public expenditure reviews will be conducted and integrated into the ANDS moni toring process. In line with the Budget cycle, ad hoc and periodic sectoral monitoring and reporting will be conducted. INDICATORS FOR MONITORING The measurement and analysis of poverty, ine quality, and vulnerability are crucial for vari ous reasons: The Government has developed poverty and vulnerability surveys largely based on income and consumption data, disag gregated by province, household, agro economic zone, gender and household size, among other factors. Against these a new pov erty line has been developed. The process of data collection and analysis has led to a far deeper understanding of the causes of poverty, and these constraints are being addressed within the various sector strategies. Figure 11.2 outlines the overall poverty monitoring and strategy design process undertaken in formu lating and implementing the ANDS. The CMRS will play a pivotal role in providing in formation to decision-makers as part of this process. Monitoring Framework 181 Figure 11.2. ANDS Poverty Monitoring and Strategy Design Process In establishing an effective monitoring and evaluation systems for the ANDS, based on relevant national statistics (CSO/NRVA), the Government has already determined the fol lowing: (i) goals, indicators and targets; (ii) levels of data desegregation including by province and gender; (iii) appropriate targets, for example, set in the MDGs, Compact and ANDS sector strategies; (iv) data requirements to meet the minimum standards of a PRSP; and (v) the frequency of data collection and moni toring. In developing the ANDS, the sectoral strategies and the provincial development plans, the Government has established a core set of moni toring and evaluation indicators for monitoring outcomes and impact for security, law and or der and human rights, governance, social and economic development and poverty programs. In addition to standard sector strategies such as education and health, social protection and welfare programs have also been developed, within which the needs of particularly vulner able groups can be targeted. Appendix III out lines the main indicators to be used in measur ing the progress of the ANDS on reducing pov erty and improving economic development. Monitoring matrices have been developed within all sector strategies, providing impor tant outcomes, indicators, targets and baselines (where available). The various sectoral strate gies outline targets for each reporting period on an annual and three-yearly basis. Data requirements to feed into the input, out put, outcome and impact assessment process are gradually being established. Sources of data include Government administrative re cords, donor project status reports, ministry MIS systems data, CSO household listings, NRVA and other forms of data (i.e. AIMS, AFMIS), sector specific survey data, IMF En terprise Survey results, consumer price infor mation, budget and expenditure data, the ACSP database and existing databases (e.g., AFMIS, DAD, DevInfo, GeoBase.). Indicators for the cross-cutting issues of regional coopera tion, counter-narcotics, corruption, capacity building, gender and the environment have been mainstreamed across the sectoral strate gies. However, due to weak statistical data, base lines for a number of key development and poverty indicators are yet to be established. This is going to be an important priority for the first two years of implementation of the ANDS. Strengthening of the CSO and the capacity of the line ministries will be essential for estab lishing clear baselines. These efforts will in clude mapping intermediate indicators with final outcomes. In cases where actual indica tors are difficult to measure or cannot be pro vided with sufficient frequency, proxy indica tors will be used. Since early development stages will not yield measurable outcomes in the short run, a series of process indicators are used in order to measure immediate results. These indicators are part of the overall monitoring framework that identifies progress on key milestones for both the Compact and the ANDS. The indica tors are measured in an index format com posed of multiple components to ensure strict monitoring of the reform process. For example, they are built into the ANDS Action Plan to improve legislation, institutional building and policy making. Afghanistan National Development Strategy (ANDS) 182 Finally, working together with the MoF and the line ministries, the JCMB Secretariat will ensure that budgets will be aligned with the indicators and costing priorities. The Government is aware that this will require a significant capac ity upgrade. MONITORING AND EVALUATION FRAMEWORK Based on the development of the sector strate gies, initial Sector Monitoring and Evaluation Frameworks have been prepared to identify needs with regard to existing and planned policies, and to developing programs/projects and indicators. These Frameworks have estab lished: (i) the milestones in implementation of the M&E plans; (ii) activities required to build on existing monitoring structures, and (iii) re porting requirements for the multilateral agen cies on the progress of the implementation of the ANDS. The monitoring and evaluation plan will also identify data requirements and additional surveys, where required, to establish sectoral baselines. The M&E plans will fur thermore be developed and monitored to cap ture progress on the achievement of bench marks. An exercise to adjust the Compact benchmarks to the Government’s implementa tion capacity has already been addressed at JCMB meetings. CONCLUSION The ANDS monitoring and evaluation system being developed will track the progress of im plementation of the ANDS towards the achievement of its objectives in poverty reduc tion and development. It also provides valu able inputs for further policy-streamlining, planning and implementation fine-tuning. The monitoring and evaluation institutions, espe cially the JCMB and CMRS, and capacity cre ated in the country will produce a strengthened and sustainable development process. The availability of relevant information produced by this system will promote constructive public debate on the challenges, solutions and pro gress in poverty reduction and economic de velopment. The central role that the CMRS will eventually play within the implementation framework of the PRSP will enable the devel opment of a poverty monitoring and analysis system, based on accepted international crite ria. Given the existing weak capacity in the Government, it is important to stress that the strengthening of the monitoring framework will require a staged approach that will even tually develop into a more sophisticated moni toring and evaluation system. Monitoring Framework 183 Table 13.1. Monitoring and Evaluation Indicators ANDS Monitoring and Evaluation Indicators No. Indicators Collection Frequency Data Source Responsible Agency Poverty and Hunger 1 Proportion of population below national poverty line (Na tional/Prov/Urb/Rur/Kuchi) 3-years NRVA CSO 2 Poverty gap ratio [incidence x depth of poverty] 3-years NRVA CSO 3 Share of poorest quintile in national consumption 3-years NRVA CSO 4 Proportion of population below minimum level of dietary energy consumption (National/Prov/Urb/Rur/Kuchi) 3-years NRVA CSO Economic Indicators 5 GDP (US$ billions) Annual National Accounts DAB 6 Gross domestic investment/GDP Annual National Accounts DAB 7 Exports of goods and services/GDP Quarterly National Accounts DAB 8 Gross domestic savings/GDP Quarterly National Accounts DAB 9 Gross national savings/GDP Quarterly National Accounts DAB 10 Current account balance/GDP. Quarterly National Accounts DAB 11 Interest payments/GDP Quarterly National Accounts DAB 12 Budget balance Quarterly National Accounts MoF 13 Revenue/GDP Quarterly National Accounts MoF 14 Public Expenditure/GDP Quarterly National Accounts MoF 15 Total debt/GDP Annual National Accounts DAB 16 Gross national reserves Annual National Accounts DAB 17 Total debt service/exports Quarterly National Accounts DAB 18 Present value of debt/GDP Annual National Accounts DAB 19 Present value of debt/exports Annual National Accounts DAB Other Social Indicators 20 Population (millions) Annual National Survey CSO 21 Labor force (%) 3-years National Survey CSO 22 Urban/Rural/Kuchi population (% of total population) Annual National Survey CSO 23 Life expectancy at birth (years) Annual National Survey CSO Governance 24 Index on progress of empowering the National Assembly. Six Months Admin Data OoP 25 Index on progress of Reforming Public Administration. Annual Admin Data IARCSC 26 Index on progress of building capacity of Public Sector Work force. Annual Admin Data IARCSC 27 Index on progress of Implementing systems, mechanisms and procedures to implement merit based appointments and per formance-based reviews. Six Months Admin Data IARCSC 28 Index on progress of introducing systems, mechanisms and procedures to reduce and monitor corruption at different levels in the government and the judiciary. Six Months Admin Data IARCSC 29 Index on progress of putting plans, systems and mechanisms in place for improved participation of women in governance. Annual Admin Data IARCSC 30 Index on progress of creating a strong and capable Independ ent Election Commission to hold regular Elections as man dated by the Constitution. Six Months Admin Data OoP 31 Index on progress of putting in place legal, policy, institutions and other systems and procedures for strengthening the sub national governance. Annual Admin Data IDLG 32 Index on progress of putting in place legal, policy, institu tional and other systems in place to realize, protect, promote and extend human rights in the country. Six Months Admin Data MoJ, MoFA Justice 33 Index on progress of putting in place legal framework and systems so that Criminal and Civil justice is administered effectively, and in accordance with law, the Constitution, and international standards. Six Months Admin Data MoJ Afghanistan National Development Strategy (ANDS) 184 ANDS Monitoring and Evaluation Indicators No. Indicators Collection Frequency Data Source Responsible Agency 34 Index on progress of making justice institutions transparent and accountable. Six Months Admin Data MoJ 35 # of functioning and adequately resourced, judicial institu tions in each province Six Months Admin Data MoJ Religious Affairs 36 Index on the progress of enhancing the impact of religious affairs for socio-economic development Six Months Admin Data MoHRA Energy 37 Index on progress of putting in place an enabling environ ment for private sector investment in energy sector. Six Months Admin Data MoEW 38 % of households electrified (National/Urban/Rural) 3-years NRVA CSO 39 Index on progress of expanding public power grid (Na tional/Urban/Rural) Six Months Admin Data MoEW 40 Index on progress of increasing access to rural energy Six Months Admin Data MoEW 41 Index on Progress of restructuring energy sector governance and commercialized operations Six Months Admin Data MoEW Transport 42 Index on progress of putting in place institutional mecha nisms for better governance of the Transport Sector. Six Months Admin Data MoT 43 Index on progress of enabling legislations and regulations for efficient working of the transport sector and various players therein. Six Months Admin Data MoT 44 % of target Km of ring road or roads to the neighboring coun tries fully upgraded and rehabilitated. Annual Admin Data MoPW 45 % of all villages connected by all-weather roads Annual Admin Data MRRD, MoPW 46 Index on the progress of the process of completion of Interna tional Civil Aviation Organization (ICAO) compliance for Kabul and Herat Airports. Six Months Admin Data MoT Urban Development 47 Index on the progress of providing improved to basic services by urban household Six Months Admin Data MoUDH 48 Index on the progress of providing increased availability of affordable shelter Six Months Admin Data MoUDH 49 % completion of city development plans for 34 provinces Six Months Admin Data MoUDH Water Resources 50 Index on the progress of putting in place improved water sector legal and governance structures and institutions in place Six Months Admin Data MoEW 51 Index on the progress of developing and implementing sus tainable water resources management strategies and plans covering irrigation and drinking water Six Months Admin Data MoEW 52 # of Hydrometric stations installed and equipped Annual Admin Data MoEW Information and Communication Technologies (ICT) 53 Index on the progress of creation of E-Afghanistan Six Months Admin Data MoCIT 54 % increase in annual revenue generated from the ICT Sector Annual Admin Data MoF 55 % of population access to mobile phones 3-years NRVA CSO 56 number of internet users 3-years NRVA CSO Mining 57 Index on progress of creation of enabling and regulatory en vironment for increased investment in mining sector Six Months Admin Data MoM, MoCI 58 % of increase in revenue generated from mining sector Six Months National Accounts DAB Education 59 Literacy rate of population (National/Urban/Rural) 5-years MoE Survey MoE 60 Net enrolment ratio in primary education (Na tional/Urban/Rural) Annual MoE Survey MoE 61 Attendance Rate (National/Urban/Rural) Annual MoE Survey MoE Monitoring Framework 185 ANDS Monitoring and Evaluation Indicators No. Indicators Collection Frequency Data Source Responsible Agency 62 Proportion of pupils starting grade 1 who reach grade 5 (Na tional/Urban/Rural) Annual MoE Survey MoE 63 Literacy rate of 15-24 year-olds (National/Urban/Rural) 5-years MoE Survey MoE 64 Index of improving quality of education including higher and vocational education Six Months Admin Data MoE, MoHE Media and Culture 65 Index on progress of protecting and preserving Afghan cul ture and heritage Six Months Admin Data MoC 66 Index on progress of promoting independent and free media Six Months Admin Data MoC Health 67 Under-five mortality rate (National/Urban/Rural) 3-years NRVA CSO 68 Infant mortality rate (National/Urban/Rural) 3-years NRVA CSO 69 Proportion of 1 year-old children immunized against measles (National/Urban/Rural) 3-years NRVA CSO 70 Prevalence of underweight children under-five years of age (National/Urban/Rural) 3-years MoPH Survey MoPH 71 Maternal mortality ratio (National/Urban/Rural) 3-years MoPH Survey MoPH 72 Proportion of births attended by skilled health personnel (Na tional/Urban/Rural) 3-years NRVA CSO 73 Condom use rate of the contraceptive prevalence rate (Na tional/Urban/Rural) 3-years NRVA CSO 74 % of population within two hours walking distance from PHC services (National/Urban/Rural) 3-years NRVA CSO 75 % of population access to clean water (Na tional/Urban/Rural) 3-years NRVA CSO 76 % of children under 1 year receiving three doses of DPT vac cine 3-years NRVA CSO 77 % of children under 1 year received measles antigen. 3-years NRVA CSO 78 TB case detection rate 3-years MoPH Survey MoPH 79 Malaria incidence 3-years MoPH Survey MoPH 80 HIV prevalence 3-years MoPH Survey MoPH Agriculture and Rural Development 81 Index on the progress of facilitating economic regeneration Six Months Admin Data MRRD, MAIL 82 Index on progress of Strengthened Local Governance Six Months Admin Data MRRD, IDLG 83 Index on progress of Reduced Poppy cultivation through Alternative Livelihoods Six Months Admin Data MRRD, MAIL 84 Index on the progress of increasing agriculture production and productivity. Six Months Admin Data MRRD, MAIL 85 Index on the progress of improving agriculture and rural infrastructure Six Months Admin Data MRRD, MAIL Social Protection 86 Index on progress of a social protection system for vulnerable sections of society Six Months Admin Data MoLSA 87 Percentage of poor female headed households (Na tional/Urban/Rural) 3-years NRVA CSO 88 Number of employed poor women who are heads of their households (National/Urban/Rural) 3-years NRVA CSO 89 Percentage of poor persons with disability (Na tional/Urban/Rural) 3-years NRVA CSO Refugees and Internally Displaced Persons 90 Index on progress of strengthening government’s capacity to manage and assist refugees and displaced persons Six Months Admin Data MoRR Private Sector Development 91 Index on progress of development of enabling legal and regu latory framework for private sector and trade Six Months Admin Data MoCI Afghanistan National Development Strategy (ANDS) 186 ANDS Monitoring and Evaluation Indicators No. Indicators Collection Frequency Data Source Responsible Agency 92 Nominal value of the annual actual investment of the private sector Annual Admin Data DAB 93 Number of registered company to AISA Annual Admin Data AISA Gender 94 Ratios of girls to boys in primary, secondary and tertiary edu cation Annual Ministry Data MoE, MoHE 95 Ratio of literate women to men, 15-24 years old 3-years NRVA CSO 96 Share of women in wage employment in the non-agricultural sector 3-years NRVA CSO Environment Sustainability 97 Proportion of population with sustainable access to an im proved water source (National/Urban/Rural) 3-years NRVA CSO 98 Proportion of population with access to improved sanitation (National/Urban/Rural) 3-years NRVA CSO 99 Proportion of households with access to secure tenure (Ur ban) 3-years NRVA CSO Conclusion 187 CHAPTER 12 CONCLUSION Significant gains have been made in reconstruc tion and development efforts over the course of the past six years. Nevertheless, at the begin ning of the state building process in 1381 (2002), both Afghanistan and the international community severely underestimated the extent of the calamity this country has gone through, and the time and resources that would be re quired to redress it. While the challenges fac ing Afghanistan have evolved in nature, they have not necessarily changed in magnitude. Deteriorating security over the past two years has altered the path of development that the country has been pursuing since 1381 (2002), thus substantially changing the assumptions on which the Afghanistan Compact was based. In many respects, the progress that has been made during these years has been achieved in the face of newly emerging problems and chal lenges. Despite that, the majority of the people of Afghanistan continue to believe that the country is on the path from extreme poverty towards a better life for themselves and their children. Sustaining the nascent Afghan democracy will require the emergence of a prosperous Af ghanistan. Success will require the emergence of a productive private sector that plays a ma jor role in most areas of the economy, with public sector resources primarily focused on providing the needed physical, commercial and legal infrastructure and ensuring that the re sults of development benefit all citizens. The ANDS represents an important milestone in the rebuilding and development of Afghani stan and serves as the country’s Poverty Reduc tion Strategy Paper (PRSP). Through the ANDS, the Government is firmly committed to continuing state building efforts. It includes a realistic and comprehensive assessment of the enormous constraints and challenges facing the country. The ANDS sets out the projects, pro grams and policies that will address the secu rity, governance, rule of law, human rights, and social and economic development issues in an integrated approach. The primary goal of the ANDS is to establish a framework through which the Government and the international community can work to gether to substantially reduce poverty on a foundation of sustained private sector-led eco nomic growth. This requires simultaneous pro gress on improving security, strengthening governance, increasing the effectiveness of so cial service delivery and taking the necessary action to ensure that the private sector can in vest and operate competitively. Achieving substantial progress in all of these areas is a complex task that will require commitment and coordination by all parts of the Government and the donor community. As such, the ANDS will help to coordinate and guide the joint ac tivities of the Government and donors. The development of the ANDS has been a genuinely Afghan “owned” exercise, based on a broad consultative process that engaged the donor community and stakeholders at national, provincial and grassroots levels to help define national and local priorities. This enabled men and women from all provinces to express their priorities and to participate in defining national development objectives.. The voices of the poor have informed the policy framework, the poverty profile, and the orientation of the sec toral strategies that form the foundation of the ANDS. Important insights have been gained in security and conflict management, regional cooperation, counter-narcotics, anti-corruption, gender, the environment, and capacity devel opment. Within the Government, the ANDS was developed based on strategies prepared by all Ministries and on broader sector strategies that were discussed extensively in Ministries, in Inter-Ministerial Committees, and with do Afghanistan National Development Strategy (ANDS) 188 nors, NGOs, and the private sector. This inclu sive participatory process will be maintained throughout the life of the ANDS. The effectiveness of the ANDS will depend crucially on building a strong economic foun dation that will support long term, broad-based economic growth, with the private sector being its driving engine. With the policies undertaken during the last five years, per capita income nearly doubled. To achieve the poverty reduc tion goals of the ANDS comparable levels of economic growth will be needed in the coming years. This will require a supportive environ ment for social and economic development, which in turn depends on the continued main tenance of sound and stable macroeconomic policies to enable the private sector to establish itself as a vigorous engine of growth, operate efficiently and create employment. A key strategic objective of the ANDS is to es tablish a secure economic environment in which it will be possible to attract sufficient levels of private sector investments to encour age the employment of human, financial and natural resources in the most productive ways possible. A critical element in achieving this objective will be to substantially increase in vestment in human capacity development and in the creation of a skilled workforce in order to expand employment opportunities and in crease incomes. The ability to implement the projects and pro grams included in the ANDS depends upon the resources that will be available. Average eco nomic growth is projected at an 8.1 percent rate for 1387-1391 (2008-2012). A key assumption underlying this ambitious goal is an increased private sector role in the economy. To reach these goals the Government will maintain strong macroeconomic management character ized by fiscal sustainability, prudent monetary policies, and the avoidance of short-term ad hoc measures. 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 realizing the country’s development needs. Security will remain the Government’s highest priority, while public expenditure pro grams for investments in energy, water and irrigation, transportation infrastructure, agri culture, agro-based industry, and rural devel opment will remain high priorities, an ac knowledgment of the high importance of these sectors for the development of the private sec tor and for long term and sustainable employ ment growth. In the coming years the Gov ernment will also devote progressively more resources to education, governance, health, and social protection. In the near future, security will remain the country’s highest priority. The Government is fully committed to successfully: (i) implement ing an integrated and comprehensive national security policy and strategy; (ii) building a ro bust security sector reform program; (iii) strengthening civil and military operations; (iv) expanding the role of security forces in counter-narcotics activities; and (v) strengthen ing the civilian components of security entities. While international assistance is vitally neces sary at the present time, the Government is planning and looking forward to taking on an increasing share of the responsibility for secu rity-related activities in Afghanistan. This re quires sufficient resources to enhance the capa bilities of the country’s armed forces, including the ANA, ANP and NSD, which is only possi ble through joint efforts and long-term com mitments of the international community to Afghanistan. The Government is also committed to the re forms necessary to ensure good governance and adherence to the rule of law. While the donor community can provide support and technical assistance, these reforms have to be initiated and driven by an internal commitment to improved governance. Without good gov ernance and widespread acceptance of the rule of law, the development strategy based on pri vate sector led growth will fail. The public sec tor will concentrate on the creation of a secure and strong enabling environment necessary for the emergence of a robust private sector. This means a much greater focus by Government on governance issues than involvement in the production of goods and services that can be provided by a significantly larger and more efficient private sector. Afghan “ownership” of the strategy requires that the Government seek donors’ close cooperation in capacity building and know-how transfer, so that a system can evolve that allows the best parts of the func tional traditional governance system to coexist Conclusion 189 with a universal system that recognizes and supports principles of social diversity, respect for human rights and the rule of law. The successful implementation of the ANDS strategies for social and economic development is expected to contribute substantially to the long term transformation of Afghanistan. At the center of these strategies is the creation of conditions for accelerated private sector devel opment. The Afghan private sector is now quite weak after years of isolation and an al most total lack of investment. The limited for eign investment that has taken place has been largely in the telecommunications industry. The Government is taking steps to establish an enabling environment, based on sound market oriented policies and an adherence to the rule of law. There is great potential to attract pri vate investment in the critical areas of infra structure and natural resource development, including power generation, commercial agri culture and agro-based industry, development of water resources, and mining. To realize this enormous potential, the Government is devel oping the legal and regulatory structures re quired to enable private investment to operate profitably. Given the devastated condition of much of the country’s “hard” and “soft” infrastructures, huge public investment, particularly in agricul ture, energy and water resources development, and transportation infrastructures, will be nec essary to create conditions under which the private sector can be competitive and success ful. With donor assistance, considerable in vestment in essential infrastructure is currently being undertaken, particularly in roads, power, commercial agriculture, healthcare, and educa tion and vocational skills. The Government in tends to undertake public investment in infra structure in ways that complement private in vestment in these areas or, when feasible, through the use of public-private partnership arrangements. It will take many years for a large competitive private sector to emerge in Afghanistan. It is expected that in five years substantial progress will have been made toward: (i) providing reli able access to electricity and water; (ii) guaran teeing the efficient transport of goods through out the country and to markets in neighboring countries; (iii) implementing major investments in commercial agriculture and minerals devel opment, and ensuring that all Afghan busi nesses operate with reliable legal protections. The central objective of the ANDS is poverty reduction. As much as 42 percent of the popu lation lives below the poverty line, while a sig nificant number of people live precariously close to it so that even relatively small increases in the cost of living can potentially tip many more into absolute poverty. Today, like much of the rest of the world, the Afghan people face substantial increases in the prices of food and fuel, which have a disproportionate impact on the poor. The Government puts heavy empha sis on increasing employment as the most effec tive means for reducing poverty. Unemploy ment and under-employment are high, with the national unemployment or underemploy ment rate currently estimated to be near 40 percent. It is clear that much of the needed growth in employment must come through the growth of a robust private sector. The Government and the people of Afghani stan remain grateful to the international com munity for their considerable and timely assis tance in overcoming the enormous security and development challenges. The ANDS addresses the questions of the amount and distribution of aid that will be required in the coming five years and the most effective modes of delivery. The Government expects that donors will align their support to reflect the priorities established in the ANDS. The successful implementation of the ANDS under the Integrated Approach will require greater coordination and increased responsiveness on the part of the Government and donors. Achieving alignment between the country’s priorities and aid programs, and ef fectively adjusting priorities and programs as conditions change require a continued strong partnership between Afghanistan and the in ternational community, as embodied in the JCMB. Afghanistan faces extremely difficult chal lenges that will take many years to fully over come. The successful transformation of Af ghanistan to a secure and developing country is vital not only for the Afghan people, but for neighboring countries in a volatile region and for the entire world. The ANDS represents an important step towards achieving the objec tives shared by the country and its interna tional partners. APPENDICES Conclusion 191 192 A fghanistan N ational D evelopm ent S trategy (A N D S ) APPENDIX I National Action Plan (2009 – 2013) PILLAR: SECURITY SECTOR: SECURITY Expected Outcomes Policy Actions and Activities Category Timeframe Responsible Agency Effectively coordinated security sector Monitor and coordinate security issues between ministries and departments and establish 13 coordination centers Institution Develop ment 2008 - 2013 NSC, MoD, MoI, NDS, MCN, MoFA Recruit additional personnel to reach the newly agreed 80,000 army ceiling with additional 6000 staff of mentors, trainers etc Institution Building ongoing - end 2009 MoD Revise Operations and tactical structures and new weaponry to be provided then accordingly Institution Building 2007 - 2013 MoD Equip the ANA with technical and administrative support Institution Building 2008 - 2013 MoD Equip the ANA by Land and Air force Development 2008 - 2013 MoD Establish new ANA training centers Development 2008 - 2013 MoD Equip existing ANA training centers/Academies Development 2008 - 2013 MoD Reform and capacity building of the ANA to a sustainable level Development 2008 - 2013 MoD Strengthen logistical support to the Army in regional and provincial battalions Institution Building 2008 - 2013 MoD Establish computerized system in MoD to strengthen human resource, financial and program management Institution Building 2008 - 2013 MoD Extensive training schemes to equip national units to fight terrorism and anti gov ernment elements Development 2008 - 2013 MoD Focus on conflict prevention programs in areas where anti government activities are ripe Development 2008 - 2013 MoD ANA operationally capable of performing those missions and tasks assigned Information campaigns about the benefits of peaceful processes Development 2008 - 2013 MoD ANA expenditures are fiscally sustainable Develop a ‘Right-financing’ approach to the security sector Institution Building 2008 - 2013 MoD Recruit Personnel to reach the Benchmark of 82,000 Institution Building ongoing - End 2010 MoI Equip the Police with technical and administrative support Institution Building 2008 - 2013 MoI Reform and capacity building of the ANP and ABP to a sustainable level Development 2008 - 2013 MoI ANP operationally capable of performing those missions and tasks assigned and crime rates reduced Strengthen logistical support to ANP and ABP in regional and provincial centers Institution Building 2008 - 2013 MoI 193 A peendcies PILLAR: SECURITY SECTOR: SECURITY Expected Outcomes Policy Actions and Activities Category Timeframe Responsible Agency Construct new Stations and Substations for Police in Provinces Institution Building 2008 - 2013 MoI Establish/Equip Fire Brigade Departments Institution Building 2008 - 2013 MoI Restore Traffic signals structure in Urban areas and highways Development 2008 - 2013 MoI Establish/Equip Health care centers/facilities for Police in center and provinces Development 2008 - 2013 MoI Extensive training schemes to equip national units to fight terrorism and anti gov ernment elements Institution Building 2008 - 2013 MoI Focus on conflict prevention programs in areas where anti government activities are ripe Development 2008 - 2013 MoI Information campaigns about the benefits of peaceful processes Development 2008 - 2013 MoI Conduct training to increase the capacity of Afghan National Police forces to en force the law against poppy cultivation and drug trafficking Institution Building 2008 - 2013 MoI MoI reform to support the transformation of police Institution Building 2008 - 2013 MoI Establish computerized system in MoI to strengthen human resource, financial and program management Institution Building 2008 - 2013 MoI Reform, train and equip the Border Police Institution Building 2008 - 2013 MoI Operational border posts able to protect national sovereignty, levy and collect custom duties and process those collections to the central government. Establish/Rehabilitate and equip Border Posts Institution Building 2008 - 2013 MoI Develop a ‘Right-financing’ approach to the security sector Institution Building 2008 - 2013 MoI ANP and ABP expenditures are fiscally sustainable Improve revenues and finance security sector spending; this includes licenses to private security companies Institution Building 2008 - 2013 MoI 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) Development 2008-2013 MoFA Reduced level of deaths and casu alties caused by UXOs, reduce the number of affected communities and increased safety precautions All unsafe unserviceable and surplus ammunition will be destroyed Development 2008-2013 MoFA, MoI Enhanced public trust on govern ment ability to deliver justice and security as IAGs are disbanded and reintegrated DIAG plans need to be instated and properly implemented Development ongoing - (by end of 2011) DDR/DIAG, MoD Eventual eradication of Poppy Production and crack down on Coordinate and target poppy eradication, in particluar where the beneficiaries are supporting anti government activities Institution Building 2008 - 2013 MCN, MoD, MoI 194 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: SECURITY SECTOR: SECURITY Expected Outcomes Policy Actions and Activities Category Timeframe Responsible Agency Conduct training to increase the capacity of Afghan Security forces to enforce the law against poppy cultivation and drug trafficking Institution Building 2008 - 2013 MCN, MoI Cooperate and coordinate with neighboring countries with intelligence sharing, particular with regard to drug smuggling across borders. Institution Building 2008 - 2013 MCN, MoI drug trafficking Conduct effective information campaigns against poppy production and drug trad ing. Development 2008 - 2013 MCN, MoI PILLAR: GOOD GOVERNANCE SECTOR: GOVERNANCE AND HUMAN RIGHTS Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency Technical and Administrative Support Training Institutional Development Jaddi 1392 (end-2013) Meshrano Jirga, Wolosi Jirga Empowered National As sembly Capacity Building Institutional Development Jaddi 1392 (end-2013) Meshrano Jirga, Wolosi Jirga Public Administration Reform Institutional Development Jaddi 1392 (end-2013) IARCSC Oversee/Implement/Monitor Training and Capacity Building of Public Sector Workforce Institutional Development Jaddi 1392 (end-2013) IARCSC Appoint civil servants based on Merit Institutional Development Jaddi 1392 (end-2013) IARCSC Reformed Public Admini stration Oversee/Implement/Monitor Performance-based Reviews Institutional Development Jaddi 1389 (end-2010) IARCSC Take effective measures to Reduce Corruption Institutional Development Jaddi 1392 (end-2013) GIAAC, President's Office, other Ministries Monitor Corruption at high places of Government Institutional Development Jaddi 1387 (end-2008) GIAAC, President's Office, other Ministries Launch E-Government Applications Institutional Development Jaddi 1387 (end-2008) President's Office, MoICT Implement Public Complaints Mechanism Institutional Development Jaddi 1387 (end-2008) President's office, GIAAC, MoJ etc Mid-term plans formulated and implemented Development/ Gender Cross Cutting Issues Jaddi 1387 (end-2008) Inter-ministerial Consulta tive group Credible institutional infrastructure established Institutional Development Jaddi 1387 (end-2008) All relevant ministries Corruption Reduced Enhance Research & Data management Capacity Development/ AC Cross Cutting Issues Jaddi 1387 (end-2008) IARCSC, all ministries 195 A peendcies PILLAR: GOOD GOVERNANCE SECTOR: GOVERNANCE AND HUMAN RIGHTS Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency Public sector reforms instituted incorporating anti-corruption issues Institutional/ AC Cross Cut ting Issues Jaddi 1387 (end-2008) IARCSC, all Ministries and Agencies Regulations and monitoring mechanism for the private sector development developed and implemented Institutional/ AC Cross Cut ting Issues Jaddi 1387 (end-2008) Consultative group Implement Public awareness programs on anti-corruption issues Development/ AC Cross Cutting Issues Jaddi 1387 (end-2008) All Ministries and Agencies along with their sub national units Right to Information Available to People Legislation Jaddi 1389 (end-2010) IDLG, GIAAC, OoP, MoJ, Cabinet, National Assembly Enforce Sanctions against those involved in the drugs trade Institutional Development Jaddi 1389 (end-2010) MoI (Police), MCN, AGO, IARCSC Enhanced Availability of Information to Public and Enforcement Productivity Commission advising the Cabinet Institutional Development Jaddi 1389 (end-2010) GIAAC, MoJ, Cabinet, Na tional Assembly Implement National Action Plan for Women Institutional Development Jaddi 1389 (end-2010) MoWA, All other ministries & Agencies Affirmative action available to women Legislation Jaddi 1389 (end-2010) MoJ, Cabinet, National As sembly, Office of President Piloting of a Regional Leadership Institute for Women in 2 areas Institutional Development/ Gender Cross Cutting Issues Jaddi 1387 (end-2010) IARCSC Capacity Building Program for Women in Government at the level of Na tional Assembly, provincial council and women laid off by the PRR processes Capacity Building for Ministries and LGUs on Gender Sensitive Budgeting Development/ Gender Cross Cutting Issues Jaddi 1389 (end-2010) IARCSC Establishment of Women’s Councils at the District Level Institutional Development/ Gender Cross Cutting Issues Jaddi 1389 (end-2010) IDLG Improved Participation of Women in Governance Gender awareness raising of senior officials of government Development/ Gender Cross Cutting Issues Jaddi 1389 (end-2010) IARCSC Nation Prepared for Disaster Management Establish an effective system of disaster preparedness and response Institutional Development Jaddi 1389 (end-2010) ANDMA, IDLG Independent Election Commission Capable to fulfill its Role Institutional Development Jaddi 1388 (end-2009) Election Commision, IDLG, Police Permanent Voters Registry Available Institutional Development Jaddi 1388 (end-2009) Election Commision, IDLG, MoI Strong and Capable Inde pendent Election Commis sion holding regular national and sub national Elections as mandated by the Constitution Sub National Elections Regularly held Institutional Development in the year 1389 (2010) Election Commision, IDLG, 196 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: GOOD GOVERNANCE SECTOR: GOVERNANCE AND HUMAN RIGHTS Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency and 1392 (2013) Police Single National Identity Document Establish civil registry with a single national identity document Institutional Development Jaddi 1392 (end-2013) MoI, IDLG Census Completed and Results Published Institutional Development Jaddi 1387 (end-2008) CSO Census and Statistical Base line Data available for use of the nation Statistical Baselines Established and the Statistical Capacity Built Jaddi 1392 (end-2013) CSO, MoF Village and Gozar Boundaries Reviewed Institutional Development Jaddi 1387 (end-2008) AGCHO, IDLG, MUD, MRRD Villages and Gozars Mapped Mapping of Villages and Gozars Institutional Development Jaddi 1388 (end-2009) AGCHO, IDLG, MUD, MRRD Modern Land Administration System Establish Modern Land Administration System Institutional Development Jaddi 1387 (end-2008) SC, MUD, MAIL, MoJ, AGCHO Established and A fair Sys tem for Settlement of Land Disputes Available Establish A fair System for Settlement of Land Disputes Jaddi 1386 (end-2007) SC, MUD, MAIL, MoJ, AGCHO, IDLG Develop Sub National Governance Policy Legislation end-1389 (20 March 2011) IDLG, MoJ, OoP, National Assembly Ensure Peoples’ Participation in Sub National Governance Institutional Development end-1389 (20 March 2011) IDLG, Election Commis sion, Prov. Councils, MoJ Empower Provincial Councils Institutional Development end-1389 (20 March 2011) IDLG, MoJ, Offfice of President, National Assem bly Law on District Councils, Municipal Councils, and Village Councils Legislation The President, IDLG Regular Elections of District Councils, Municipal Councils, Mayors and Vil lage Councils Institutional Development Election Commision, Prov. Councils Empowered District Councils, Municipal Councils, Elected Mayors and Vil lage Councils Institutional Development Office of President, IDLG Capacity built, the structures reformed, the processes streamlined in the prov inces, districts and municipalities Institutional Development end-1389 (20 March 2011) IDLG, IARCSC Reform Sub National Public Administration Institutional Development end-1389 (20 March 2011) IDLG, IARCSC, Office of President Government Connected to People and Increased reach of the Government by strengthening sub-national governance Instutionalize Provincial Planning and Provincial Budgeting Institutional Development end-1389 (20 March 2011) IDLG, MoF, All ministries 197 A peendcies PILLAR: GOOD GOVERNANCE SECTOR: GOVERNANCE AND HUMAN RIGHTS Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency Empower Municipalities Institutional Development Jaddi 1392 (end-2013) IDLG, KM, MoF, IARCSC Facility and Amenities to the Government Offices Reviewed Development Jaddi 1387 (end-2008) All ministries and agencies Government Offices physi cally equipped to fulfill their Role Basic Facility and Amenities Provided to all Government Offices Development end-1392 (20 March 2013) All ministries and agencies, MoF Free Flow of Information from all the District Centers Free Flow of Information from all the District Centers Institutional Development end-1389 (20 March 2011) Ministries, MoICT, IDLG, Office of President Communication with the Government made Easy Communication with the Government made Easy through the websites Institutional Development end-1389 (20 March 2011) All the Ministries and Agen cies, MoICT Youth Involved in Govern ance Provide Definite Mechanisms for youth involvement Institutional Development end-1389 (20 March 2011) IDLG, Dept of Youth Human Rights Realized, Protected, Promoted and Extended Institutional Development Jaddi 1389 (end-2010) IDLG, National Assembly, MoI, MoJ, MoUD, MoCI, MoWA, MoD, MoLSAMD, MoRR, MoE, AIHRC, and all relevant Human Rights Realized, Protected, Promoted and Extended Action Plan on Peace, Justice and Reconciliation Implemented Institutional Development Jaddi 1387 (end-2008) AIHRC, Office of President, NA, SC, MoJ, IARCSC, others PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies Analyze and develop recommendations regarding justice institutions’ record-keeping practices in order to improve accuracy and irretrievability and to avoid redundant proc esses Institution Building By year 2 SC,MoJ,AGO Analyze and make recommendations for improving existing remuneration and human resources systems in justice insti tutions. Institution Building By year 1 SC,MoJ,AGO Public can rely on effec tively organized and profes sionally staffed justice insti tutions Support development and introduction of institution specific remuneration and human resources schemes, such as pay and grading and performance evaluation measures Institution Building By Year 2 Program Oversight Committee 198 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies Justice institutions to establish links with universities for recruiting candidates (e.g., job fairs and short internships). Institution Building Year 3 and on MoJ, AOG, SC, MoHE Survey, develop and implement recommendations to im prove existing career development practices in each institu tion with particular attention to complying with gender benchmarks. Institution Building Year 3 and on SC,MoJ,AGO, MoWA, MoHE Develop institutional capacity to train professionals Institution Building Year 2 and on SC,MoJ,AGO, ICCD Analyze and, in consultation with stakeholders, develop recommendations for improving the organizational, man agement and administrative structures of justice institutions to enable them to fulfill their respective mandates and func tions at headquarters and at provincial and district level offices Development By year 2 SC,MoJ,AGO Implement recommendations Development Year 3 and on SC,MoJ,AGO Implement security measure for Judges safety Development By end year 4 SC, MoJ, MoI Public information system improved Development Year 2 on MoJ Enhanced awareness of public in general and women in particular of women's legal rights Development Year 2 on MoWA Public demands Sexual Harassment and grievance handling laws/policy to be enacted Year 2 on Justice institutions construct, acquire or make functional on a priority basis infrastructure necessary to expand delivery of justice services throughout provincial and district areas outside of regional centers. Development Year 3 and on Assess and priorities equipment and supply needs of justice institutions and establish effective and accountable pro curement systems. Development By end year 2 SC,MoJ,AGO Provide equipment and supplies in accordance with needs assessment. Development Year 2 and on SC,MoJ,AGO Conduct comprehensive inventory of all transportation assets, indicating condition and expected lifespan. Development By end year 2 SC,MoJ,AGO Survey existing asset management capacity and make rec ommendations for improvement Development By end year 1 SC,MoJ,AGO Justice institutions acquire and maintain transportation as- Development Year 3 and on SC,MoJ,AGO 199 A peendcies PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies sets sufficient to fulfill their tasks. Increased and improved facilities to deal with female of fenders Institution Building Year 2 on MoJ Create and launch agreed core subject curriculum for Sharia, law and political science faculties. Development By end Year 2 SC,MoJ,AGO Create and launch agreed core subject curriculum for Sharia, law and political science faculties. Development SC,MoJ,AGO Survey and make recommendations for enhancement of legal research facilities, including a feasibility study of the establishment of an advanced legal research institute. Development Year 3 to 4 SC,MoJ,AGO Create stakeholder consultations to develop policy and planning mechanisms for enhancing legal research capacity. Development Year3 to 4 SC,MoJ,AGO Law and Sharia faculties establish links with foreign legal educational institutions to enhance research capacity, in cluding foreign study programs for both students and staff. Development Year 2 and on MoHE, MoFA Universities identify and enhance infrastructure so as to accommodate female students and staff Development By year 2 MHE, MoJ Universities develop and implement policies to raise per centage of female students and staff to at least 30 percent Development By end year 2 MHE, MoJ Justice institutions, in coordination with the Independent National Legal Training Center, develop appropriate voca tional training courses for justice professionals, paying specific attention to the needs of female professionals. Development By end year 2 INLTC Legal education and voca tional training are adequate to provide justice profes sionals with sufficient know how to perform their task Justice institutions, in coordination with the Independent National Legal Training Center, develop and implement specialized programs for continuing legal education, paying specific attention to the needs of female professionals. Development Year 3 and on SC,MoJ,AGO, INLTC Perform comprehensive needs assessment of Taqnin and make recommendations for technical assistance and capac ity building Institution Building By end Year 1 MoJ, National Assembly Provide technical assistance and capacity building for Taqnin in line with recommendations. Institution Building Year 2 and on MoJ Statutes are clearly drafted, constitutional and the prod uct of effective and consulta tive drafting processes Establish a working body to promote greater cooperation and enhance the efficiency of the legislative drafting proc Institution Building Year 2 and on MoJ, National Assembly 200 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies ess. An indexed compilation of all laws in force is assembled and updated regularly. Development By end Year 3 and on MoJ Taqnin conducts a review of the constitutionality of all laws in force, and recommends amendments to ensure constitu tionality. Development By end Year 3 and on SC,MoJ,AGO, MoI Unconstitutional laws are amended to ensure constitutional ity Development Year 3 and on National Assembly, MoJ, AOG Assess capacity of government institutions and entities to draft laws and make recommendations for enhancing that capacity Development By end year 2 MoJ Implement recommendations for enhancing legislative drafting capacity in justice institutions. Development commencing year 3 MoJ Establish a Taqnin working group to make recommenda tions for inclusion of civil society stakeholders in legislative deliberations. Development Year 2 MoJ Implement recommendations Development Year 3 and on MoJ Develop and implement procedures to safeguard and further the role and function of defense attorneys in criminal inves tigations and trials Legislation Year 1 and on AGO, MoJ Update and implement court regulations in order to facili tate filing and tracking of civil and criminal cases (includ ing AGO Information System). Legislation By end Year 4 SC, AGO Create and establish the Program Oversight Committee, together with requisite administrative and logistical support Institution Building By commencement Year 1 SC, MoJ, AGO Create and establish the Program Implementation Unit Institution Building By commencement Year 1 Oversight Committee Design and administer a baseline survey of legal system performance Institution Building By end Year 1 MoJ Improve information sharing between justice institutions, and coordinate information management and interfacing. Institution Building Year 3 and on SC, MoJ, AGO Justice institutions effec tively perform their func tions in a harmonized and interlinked manner Develop, establish, and implement measures and mecha nisms to improve police prosecutor coordination in criminal matters; and addressing the cross-cutting issues Institution Building Year 1 and on AGO, MoI, MoJ 201 A peendcies PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies Introduce effective “one-stop” complaints system covering all justice institutions. Institution Building Year 2 and on SC,MoJ,AGO Enhance capacity of police and prosecutors to conduct pro active criminal investigations. Institution Building Year 2 and on AGO, MoI Enhance capacity for managing corruption issues. Institution Building Year 2 on SC, MoJ, AGO, MoI Train judges, lawyers and prosecutors in trial practices and trial management. Institution Building Year 2 and on SC,MoJ,AGO Assessment of information interfacing needs of AGO, MoI, MoJ, courts, and other specialized agencies. Institution Building By end Year 1 SC,MoJ,AGO Assessment and improvement of paper-based case file and case tracking systems. Institution Building By end Year 1 SC,MoJ,AGO Evaluate the viability of converting paper-based file sys tems to combined paper and electronic file systems Institution Building Year 2 and 3 Program Oversight Committee Justice institutions develop plans and implement coordina tion mechanisms for specialized units addressing cross cutting issues Institution Building Year 2 and on Program Oversight Committee Recruit qualified professionals with specialized knowledge of cross-cutting issues Institution Building Year 2 and on Program Oversight Committee Justice mitigation measures are developed Institution Building MoJ Build capacity of judges, prosecutors, and investigators by training on cross-cutting issues. Institution Building Year 2 and on Program Oversight Committee Assess the needs of the justice institutions and citizens for legal materials. Development By end Year 1 MoJ Compile and distribute legal materials in response to needs and establish system for routine updating of legal resources. Development By end Year 3 MoJ Develop and distribute judicial and procedural manuals for legal professionals, including judges, prosecutors and de fense advocates. Development From Year 2 on MoJ Survey and standardize routine legal documents (e.g., bonds, title deeds, marriage certificates and certificates of the courts) and the existing systems for registering, index ing and retrieving them. Development By Year 4 and on MoJ Citizens are more aware of their rights and justice insti tutions are better able to enforce them. Distribute forms to relevant justice facilities nationwide and Development By Year 4 and on MoJ 202 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies train staff to use them and make them available to the pub lic for standardized nominal fees. Pilot an electronic storage and retrieval system for legal registration documents Development Year 2 to 3 SC,MoJ,AGO Design legal awareness programs paying particular atten tion to: • Successes and lessons learned from previous campaigns • Human rights and Islamic values • The rights of women and children • The needs of illiterate persons • Transitional justice • The roles of each justice institution in promoting access to justice for all. Development Years 1 - 3 MoJ Implement legal awareness programs, in coordination with activities expanding formal justice systems to provinces. Development Commence end Year 2 on MoJ, IDLG Conduct baseline survey legal aid service provision Development Commence end Year 2 on MoJ Consider options and costs of various models for legal aid delivery, and draw up recommendations for a legal aid sys tem. Development By Year 2 MoJ Implement legal aid recommendations Development Year 2 and on MoJ Conduct needs assessment and survey of obstacles to access to and use of formal legal system. Development By end Year 1 MoJ Draw up recommendations to increase access to and use of formal legal system Development By end Year 1 MoJ Survey of legal gateways to justice services. Development By end Year 1 MoJ Consider options and costs of various models for improving access to formal system, and draw up recommendations Development By end Year 1 MoJ Implement recommendations to improve access Development Year 2 and on SC,MoJ,AGO Generate public awareness about corruption and anti corruption issues Development Year 2 on SC,MoJ,AGO strengthened institutional response to stop violence against women Institution Building Year 2 on SC,MoJ,AGO improved capacity of the provincial govt to address and deal with VAW Development Year 3 and on SC, SGO, MoJ 203 A peendcies PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies Review existing civil justice processes and practices, in cluding enforcement of judgments, and develop recommen dations based on the findings. Institution Building Year 2 MoJ, AOG,, SC Civil justice is administered effectively, and in accor dance with law, the Constitu tion, and international stan dards Public demands Sexual Harassment and grievance handling laws/policy to be enacted Legislation Year 2 and on National Assembly, MoJ, AOG Strengthen the legal framework so as to improve respon siveness to the needs of juvenile offenders and children in conflict with the law Legislation From Year 2 on MoJ Strengthen the legal and institutional framework for chil dren accompanying their parents in prison. Legislation From Year 2 on MoJ Develop and implement policy recommendations for im proving sentencing, detention, and conditions of prisoners. Legislation From Year 2 on MoJ Promote practices within the justice institutions that are supportive of the rights of victims, witnesses, the accused, and those convicted of crimes Institution Building From Year 2 on SC,MoJ,AGO Family Response Units, staffed by all female police offi cers, are functional in all provinces, and are effectively linked with Special Victims Units in the AGO. Institution Building Starting Year 2 and on SC,MoJ,AGO Develop and implement training programs for corrections officials incorporating recommendations based on analysis. Institution Building By end year 4 MoJ Rationalize and update civil justice process and practices, including enforcement of judgments, in accordance with the developed recommendations Institution Building Starting Year 3 PAR (MoJ) Review and analyze existing assistance, programs and ac tivities for juvenile offenders and children in conflict with the law. Development By Year 1 MoJ, MOLSA Develop information campaigns to enhance the public’s knowledge of the rights of victims, witnesses, and the ac cused in the criminal justice system Development Starting Year 2 and on MoJ, MOLSA Procedural code is amended to address specific needs of witnesses, including women and other vulnerable groups Development By Year 3 MoJ, MOLSA Establish a system to record past human rights abuses and to preserve the rights of victims Development Year 2 and on MoJ, MOLSA Criminal justice is adminis tered effectively, and in ac cordance with law, the Con stitution, and international norms and standards Carry out a baseline survey of prosecution efficiency and Development By end year 1 SC 204 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: GOOD GOVERNANCE SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Policy Actions and Activities category Time frame Responsible Agencies number of criminal complaints proceeding to trial. Develop a program for prioritizing prosecution resources according to seriousness of the offense. Development By end year 2 AGO Review and analyze existing assistance, programs and ac tivities relating to sentencing practices, detention practices, and prisoner conditioners. Development By Year 2 MoJ Regulatory reforms, procedures and protocols established Institution Building Year 2 and on MoJ Counter Narcotic Laws implemented Legislation Year 2 and on MCN, AGO, SC, MoI Develop, finalize and disseminate codes of ethics for pro fessionals in justice institutions. Institution Building By end Year 1 SC,MoJ,AGO Performance evaluation with special focus on corruption incorporated as part of the system transparency and ac countability Institution Building Year 2 and on SC,MoJ,AGO Train justice professionals on ethics code. Institution Building Year 2 on SC,MoJ,AGO Design and establish dedicated and effective institutional units and procedures to advice on and enforce codes of ethics. Institution Building Year 2 and on SC,MoJ,AGO Improve the professional and ethic standards of attorneys at law through an Independent Bar Association. Institution Building Year 2 and on SC Develop and standardize informational materials on the mission, the function and the operating procedures of each justice institution and make it available to the public. Institution Building By end year 3 MoJ Establish a dedicated office within each justice institution and organization capable of acting as a focal point for pub lic inquiries. Institution Building By end Year 3 SC,MoJ,AGO 3 Justice institutions participate in a commissioned study of the feasibility of introducing administrative law structures and procedures to enhance accountability of government institutions Institution Building Year 4 and on MoJ Justice institutions are trans parent and accountable Implement the activities related to operations of the justice sector contained in the National Anti Corruption Strategy. Institution Year 2 and on SC,MoJ,AGO 205 A peendcies Pillar: Good Governance Sector: Religious Affairs Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency The educational curriculum and academic activities of the Sharia faculties to be coor dinated Institution Building End of 1389 Ministry of Higher Education Scientific and cultural relations of the Sharia faculties to be established with similar organizations and Islamic countries. Development End of 1389 Ministry of Higher Education The Islamic science section of the science academy and research center of the Islamic science would be empowered in term of cadre and budget Development End of 1392 Science Academy and Ministry of Haj and Endowment Equipped building for Islamic studies section of science academy and Islamic studies research center will be constructed Development End of 1392 Science Academy and Ministry of Haj and Endowment All madrasas shall be registered by ministry of education and follow similar curricu lum till end of 1388 Institution Building End of 1389 Ministry of Education The revision in Islamic subject of the schools curriculum will be made based on the Islamic realities, nation’s interests and sound education of the young generation Development End of 1389 Ministry of Education Compile and publish textbooks required by religious schools based on new curriculum Development End of 1392 Ministry of Education Establish 34 religious schools and Darul Hifaz at national and sub national levels Development End of 1389 Ministry of Education Establish 100 religious schools and Darul Hifaz in the districts of the country Development End of 1392 Ministry of Education Construct and equip Bebi Bebi Aisha girls’ religious school in Kabul City Development End of 1389 Ministry of Education 4 girls’ madrasas will be established in Mazar-e-sharif, Herat, Kandahar, Jalalabad Development End of 1392 Ministry of Education Establish university of Islamic studies at Masters and PhD levels Development End of 1392 Ministry of Higher Education Strengthen educational religious institutions Establish a university specifically for girls Development End of 1392 Ministry of Higher Education Compile and publish works of research projects of science academy and center of research for Islamic studies. Development End of 1392 اscience academy and Islamic studies research center Draft and implement campaigning program of clerics and preachers with regards to anti-corruption. Development End of 1392 Ministry of Haj, Civil Service commission, GIAAC Draft and implement campaigning program of clerics and preachers with regards to counter-narcotics. Development 5 years Ministry of Haj and Endowment, Ministry of Counter Narcotics Draft and implement campaign programs of clerics and preachers concerning the Is lamic rights of women; religious value of literacy; elections; forced marriages and violence that are condemned by Islam and other social issues. Development End of 1390 Ministry of Haj, MoWA and concerned agencies Draft and implement campaign program of clerics and preachers concerning the en couragement of people to environment protection including practical programs for mosques, Husnias and Khanaqas Development 2 years Ministry of Haj, NEPA and concerned agen cies Enhance religious aware ness Launching programs and incentive competitions among scholars, the youth and women concerning Islamic issues such as on characteristics of prophet of Islam P.B.U.H., recitation of Holy Koran and other issues relating Islam at national, regional and global level Development End of 1392 Ministry of Haj, Ministry of Information and Culture, Science Academy 206 A fghanistan N ational D evelopm ent S trategy (A N D S ) Pillar: Good Governance Sector: Religious Affairs Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency Convention of seminars, workshops and conference on important Islamic issues for enhancing the awareness of people Development End of 1392 Ministry of Haj, Ministry of Information and Culture, Science Academy Establish a grand religious library in Kabul Development End of 1392 Ministry of Information and Culture and Ministry of Haj Compile, translate and publish religious guidance books in Dari and Pashto Development End of 1392 Ministry of Information and Culture and Ministry of Haj Translate and publish Islamic books (Tafseer, Hadith, Fiqa, and Theology) Development End of 1392 Ministry of Information and Culture and Ministry of Haj Quality and quantity improvement of magazines such as Payam-e-Haq and Irshad Islam Development End of 1392 Ministry of Information and Culture and Ministry of Haj , Science Academy Transformation of Irshad Islam magazine to a news paper Development End of 1392 Ministry of Information and Culture and Ministry of Haj , Science Academy Establish a quality newsletter concerning the closeness of Islamic sects Development End of 1389 Ministry of Information and Culture and Ministry of Haj Publish an Islamic encyclopedia containing the role of Afghanistan in Islamic culture and studies Development End of 1392 Science Academy and other agencies Training program for Mullahs, preachers Institution Building End of 1392 Ministry of Haj and Endowment Convene seminars and workshops for religious scholars. Institution Building End of 1389 Ministry of Haj and Endowment Seminars and workshops will be convened for religious scholars. Institution Building End of 1392 Ministry of Haj and Endowment Compile and publish pamphlets on rights of women and children; harms of narcotics, bribery and corruption and other related social issues. Development End of 1392 MCN, MoWA, other agencies with coopera tion from Ministry of Haj Establish a center for training preachers Development End of 1390 Ministry of Haj and Endowment Ensure the access of scholars to new technological studies (including computer and internet) Institution Building End of 1392 Ministry of Telecommunications, Ministry of Haj Enhance capacity of reli gious scholars Establish library at congregational mosques of the capital and provinces Development End of 1392 Ministry of Haj, Ministry of Information and Culture Statistics of all Islamic scholars, clerics; Sikhs and Hindus will be provided for better service delivery. Development End of 1389 Ministry of Haj and Endowment Prepare a typical design for mosques and Husnias of important cities and townships containing library, ablution site, toilets and other required places and submitting these designs for agencies and people that are interested in construction of mosques. Development End of 1388 Ministry of Haj, Urban development and Municipality Establish departments of Hajj and Endowment at all provinces Development End of 1392 Ministry of Haj and Endowment Religious service delivery and infrastructures Construct mosques, Husnias, Khanaqas, and Jamat Khanas Development End of 1392 Ministry of Haj and Endowment 207 A peendcies Pillar: Good Governance Sector: Religious Affairs Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency Rehabailitate mosques, Husnias, Khanaqas, Jamat Khanas Development End of 1392 Ministry of Haj and Endowment Establish operational centers of Hajj, Umra pilgrimage in Kabul and other zones Development End of 1392 Ministry of Haj and Endowment Construct female Fate ha khana Development End of 1392 Ministry of Haj, with cooperation of munici palities, MoWA Construct congregational mosques for women to conduct congregational prayers Development End of 1392 Ministry of Haj and Ministry of Women’s affairs Construct a building for Ministry of Hajj and Endowment which is in accordance with Islamic architecture, well-equipped and one that meets all needs of related offices. Institution Building End of 1392 Ministry of Haj and Endowment Rehabilitate the endowed properties Development End of 1392 Ministry of Haj and Endowment Recover and return endowed assets that are in the control of irresponsible people to Ministry of Hajj and Endowment Development End of 1392 Ministry of Haj and related agencies Establish an empowered, independent facility in Kabul that is authorized for deliver ing Fatwas concerning Islamic issues Institution Building End of 1392 Supreme court, Ministry of Haj Implement administrative reform program in Ministry of Hajj and Endowment (na tional and sub national levels) Institution Building End of 1389 Civil Service Commission and Ministry of Haj Draft and implement campaigning program for religious scholars and preachers con cerning anti-corruption Development End of 1389 Ministry of Haj, Civil Service Commission, GIAAC Anti-corruption and elimi nating immorality Establish administrative units and prepare specific programs for preventing unaccept able social acts that are against Islamic values through campaigns in all mass media and Minabers Institution Building End of 1392 Ministry of Haj, Ministry of Information and Culture Establishment of Cooperation committees of scholars for local dispute settlement and implementation of reconstruction programs in all districts. Institution Building End of 1392 Ministry of Interior Affairs and governors of all provinces Participation of scholars in social affairs Mosques , Husainias, and Takia Khanas will be used for the purpose of pre-school education for under age school children including girls and boys with the combination of state kindergarten programs and traditional education at mosques Development End of 1392 Ministries of Labor and Social affairs, Edu cation and Haj Establishment of mechanism for salary grading and payroll of scholars, preachers and other mosque and Takayas’ servants. Institution Building End of 1392 Ministry of Haj and Endowment, ministry of finance and justice. Signing a contract with traders and private sector for building shops and business cen ters where mosques and other holy sights are located. Institution Building End of 1392 Ministry of Haj and Endowment and relevant Municipalities. Program ticket selling will be launched for pilgrims of important shrines Development End of 1390 Ministry of Haj and endowment. A Bank account will be Established for Ministry of Hajj and Endowment for collec tion of financial assistance delivered by people Institution Building 1 end of 11392 Ministry of Haj and Endowment and general banking department Poverty reduction and self reliance of religious insti tutions Establishment of A state agency for collecting and distributing zakat and related ser vices. Institution Building End of 1392 The general directorate of Haj and endow ment affairs managenment. Regional Cooperation Keeping contacts with Islamic countries through formal and legal means for securing their material and moral assistance; strengthen relations with Islamic countries organi Development End of 1392 Ministry of Foreign Affairs and Ministry of Haj and Endowment 208 A fghanistan N ational D evelopm ent S trategy (A N D S ) Pillar: Good Governance Sector: Religious Affairs Objectives or Outcomes Policy Actions or Activities Category Timeframe Responsible Agency zation; establish relations of Ministry of Hajj and Endowment with similar entities in other Islamic countries. Conferences on important Islamic issues will be convened by Ministry of Information and Culture; Hajj and Endowment at international or regional level. Institution Building End of 1392 Ministry of Information and Culture, MOFA, Ministry of Haj, Science Academy Opportunities will be provided for religious scholar delegation to visit different sects including Sunnis and Shias in neighboring and Islamic countries and similar delega tion will be asked to visit Afghanistan Development End of 1392 Ministry of Foreign Affairs, Ministry of Haj Establishment and strengthening of permanent branches at Saudi Arabia for arranging Hajj and Umra pilgrimage Institution Building End of 1392 MoFA, Ministry of Haj An authorized body for coordinating governmental programs between governmental and nongovernmental organizations will be established Institution Building End of 1392 ANDS, OAA, MOF Coordination between religious institutions An administrative unit will be established in the Ministry of Information and culture and other line agencies prepare specific programs for preventing unacceptable social acts that are against Islamic values which puts national interest in danger. Institution Building 2 years Ministry of Information and Culture, Minis try of Haj, with cooperation of Science Acad emy PILLAR: ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Objectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agency Enact the required laws (Corporations, Partnerships, Commercial Arbitration, Commercial Mediation, Contracts, Agency, Standards, Copyrights, Trade marks, and Patents) to complete and update the basic legal and regulatory framework governing private sector activity in social and economic develop ment. Government, business and the international community to make a stronger effort in lobbying National Assembly regarding the urgency of enact ing laws. Legislation Mid-1389 Cabinet, DAB and National Assembly Invest in capacity building for National Assembly so that MPs are better in formed and supported in their role and understanding of the rationale, use and content of proposed laws. Institution Building Mid-1388 National Assembly and donors Establish the principle and formalize and standardize processes to consult with the private sector (business and civil society) in a meaningful and timely man ner during the process of drafting policies and laws. Legislation End-1386 Cabinet, DAB and National Assembly The legal framework for the business sector is improved Establish the principle that no law can be implemented unless it has been ga zetted, published in the newspapers, and made available electronically and in hard copies at no cost. Explore the option of using the Afghanistan National Legislation End-1386 Ministry of Justice, Ministry of Finance, ANDS 209 A peendcies PILLAR: ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Objectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agency Development Strategy (ANDS) website as an interim solution for publishing laws after their enactment. Publish the tariff structures on the Ministry of Fi nance website. Amend the tariff legislation to facilitate ROZ (Reconstruction Opportunity Zone) trade along the border with Pakistan legislation/ RC Cross Cutting Issues MoCI, MoJ, MoFA, MoF Endorse the authority of mediation and arbitration tribunals to resolve private private and private-public disputes, including land issues. Institution Building Mid-1389 MoJ Ensure the competency and transparency of tribunals by establishing standards and building the capacity of arbitrators, mediators and lawyers. Institution Building Mid-1389 MoJ Undertake financial audits of State Owned Enterprises Other Measures Mid-1388 MoCI, MoF Privatize and corporative state owned assets Other Measures Mid-1389 MoCI, MoF Implement an adequate insurance law. Legislation Mid-1389 MoF, DAB, FIs Encourage the development of an appropriately regulated private insurance sector. Other Measures Mid-1388 MoF, DAB, FIs Work with donors to create risk management tools for domestic and foreign investors, appropriate to the specific risks of investing in Afghanistan. Other Measures End-1389 AISA/MIGA Lay out a concrete strategy with time-bound actions to significantly expand the outreach and range of financial products and services, especially targeting small and medium enterprises. Other Measures Mid-1388 DAB, Afghanistan Bankers' Association, Microfinance Investment Enact an appropriate legal framework including passage of four financial laws: Secured Transactions, Mortgage, Leasing and Negotiable Instruments. Legislation End-1388 DAB, Ministry of Justice Build capacity in the financial sector by establishing an independent banking and business training institute as a joint commercial bank – DAB initiative. Institution Building Mid-1388 DAB together with Afghanistan Bankers' Association Establish a credit information bureau to facilitate commercial and consumer lending. Institution Building End-1388 DAB, Afghanistan Bankers' Association Establish a financial tribunal to provide swift legal decisions on financial dis putes. Institution Building End-1388 DAB, Ministry of Justice Expand provision of donor and private sector micro and SME finance Other Measures End-1388 MoF, MoCI, DAB, Afg Bank ers' Association Establish an office in DAB in conjunction with Ministry of Interior to provide security for cash in transit between banks and bank branches in Kabul. Institution Building Mid-1389 DAB in cooperation with Min istry of Interior Private sector access to fi nance is increased Increase the offering of financial services in rural areas through the further development of effective and sustainable delivery mechanisms with special Other Measures Mid-1389 Ministry of Agriculture, DAB, MISFA 210 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Objectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agency consideration to women. Implement the agreed upon privatization strategies in Bank-e-Milli and Pash tany Bank, including the placement of professional management and board to restructure the banks free of government interference. Institution Building Mid-1387 Ministry of Finance and DAB Ensure the evolving legal framework to permit and encourage power genera tion and distribution by the private sector, including through the establishment of Public-Private Partnerships (PPPs). Legislation Mid-1387 Ministry of Energy and Water Accelerate the execution of priority power generation initiatives: (a) Sheberghan natural gas generation project; (b) the high voltage transmission line from Tajikistan. Other Measures End-1386 Ministry of Energy and Water Improve distribution system, beginning with Kabul, including through out sourcing of billing and collections and by providing information to the private sector on opportunities to invest in electricity supply. Other Measures Mid-1387 Ministry of Energy and Water, DABM Corporatize DABM (national electricity company) with qualified management team selected through transparent process. Institution Building Mid-1387 Ministry of Energy and Water, DABM Launch pilot initiatives in non-grid small and medium-scale provision in smaller cities and in community-based rural power, including micro-hydro power. Other Measures Mid-1387 Ministry of Energy and Water Negotiate competitive terms for reliable power supply from Central Asia. Other Measures Mid-1387 Ministry of Energy and Water Establish a liaison mechanism for joint forums with Busi ness/Trade/Employers’ association. Institution Building/ RC Cross Cutting Issues MoCI, AISA The government uses Public Private Partnerships to ex pand infrastructure Trade Facilitation Zones (TFZ) in key areas of Afghanistan that will connect district and provisional level production to regional and international markets by providing the basic infrastructure for processing, packaging and storage. Other Measures/ RC Cross Cutting Issues MoCI, others Draft legislation based on the recommendations of the land policy that com prises legal frameworks for land registration; land adjudication, including community-based systems; and the formalization of informal land holdings, including legislation for adverse possession. Legislation End-1387 Ministry of Justice, Ministry of Agriculture Implement improved simplified procedures for transfer of privately owned land. Other Measures End-1387 Ministry of Justice, Office of the President Clarify and simplify the procedures associated with the transfer of publicly owned and privately-owned land. Institution Building Mid-1387 Ministry of Justice Surplus land is used by the private sector to increase economic activity Permit foreign investors to obtain access to land through 90-year leases. Other Measures Mid-1387 Ministry of Justice 211 A peendcies PILLAR: ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Objectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agency Extend the duration of leases for government land and ensure that they are either wholly or partly transferable. Other Measures Mid-1387 Ministry of Justice Develop a strategy for industrial parks, including the creation of an industrial park development department as an independent authority. Other Measures End-1387 Ministry of Commerce and Industry, AISA Consolidate the registration of private sector entities and the issuance of tax identification numbers into a single platform, extending the service to smaller businesses. Institution Building End-1387 Ministry of Commerce and Industry Remove licensing requirements except for reasons of health, safety, environ mental protection, land use and access to natural resources. Other Measures Mid-1387 Ministry of Commerce and Industry Make necessary business licenses more effective by re-engineering and streamlining them Institution Building 12 months Ministry of Commerce and Industry Adopt the principles of regulatory best practice (RBP) to ensure that new regu lations are appropriate and minimize compliance cost Legislation 18 months Ministry of Commerce and Industry, Ministry of Justice Minimize compliance costs for SMEs by introducing appropriate administra tive and reporting exemptions for SMEs Other Measures 12 months Ministry of Finance Publish comprehensive information on licensing requirements and procedures Other Measures 12 months Ministry of Commerce and Industry Educate private sector stakeholders’ (investors, employers, employees and consumers) to increase awareness and understanding of their legal and regula tory rights and responsibilities. Other Measures 12 months Ministry of Commerce and Industry Establish and enforce “one-stop collection points” for tax payment and other government revenue collection in every district centre. Institution Building Mid-1387 Ministry of Finance Continue to eliminate nuisance taxes and reform the tax system to make it simpler, fairer, more competitive and easier to comply with Institution Building 12 months Ministry of Finance Reform and revitalize the High Commission on Investment (HCI). Ensure that AISA is an effective secretariat; ensure that it meets regularly (starting in the next 14 days); focus it on policy issues; introduce increased private sector representation; improve member selection process to focus on competence and experience; extend access to SMEs throughout the country. Report results of HCI reform to the private sector. Institution Building End-1386 High Commission on Invest ment; AISA Apply customs regulations consistently across the country and commit to achieving an average time for importing and exporting goods in line with best practice in the region (reduced by at least half of current levels). Institution Building End-1387 Ministry of Finance Regulations, taxes and li censes are streamlined and better enforced Examine the merits of outsourcing custom services Other Measures Mid-1388 Ministry of Finance 212 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Objectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agency Revise, clarify and update the legal framework governing civil society organi zations, including the NGO Law and Social Organizations Law, to cover civil society more comprehensively, easing the establishment / registration of CSOs and ensuring adequate (not burdensome) oversight. Legislation End-1387 Ministry of Economy, Ministry of Justice with Civil Society stakeholders Develop self-regulatory mechanisms with clearly defined quality standards or a “code of conduct” to ensure that civil society organizations are well man aged, accountable and their activities are well conceived, effective and attuned to the needs of Afghans, with governance models drawn from international best practice. Legislation Mid-1387 Civil Society with the en dorsement of the Ministry of Economy Civil society groups are able to operate effectively to aid in the development process. Establish independent certification bodies for civil society organizations that are recognized by Government, the private sector, donor agencies and civil society while introducing the associated capacity building services required to achieve certification. Institution Building End 1387 Civil Society with the en dorsement of the Ministry of Economy Facilitate private sector involvement to offer short-cycle certificate-level edu cation for school leavers to rapidly develop the skills of young people and adults that are crucial to economic development. Other Measures End-1386 Civil Society with Business Establish the modality for public-private partnerships in the provision of edu cation from basic education through to tertiary levels, including provision of professional and vocational education. Other Measures Mid-1387 Ministry of Education Computerize all HRM and project activities in MoCI to strengthen Human Resource and Program Management Institution Building/ AC Cross Cutting Issues MoCI Establish a coherent national policy framework to guide professional and vo cational education, linked to the overall higher education strategy that will ensure coordination, assign clear accountability and set world-class standards (including the process for licensing, certification and accreditation). Other Measures End-1387 MoEC, MoE, MoHE, MoLSA, Business Community, Civil Society Border Management Initiative to focus on the establishment of effective and efficient Border Crossing Points/Facilities at each Border Control Zone of Afghanistan. Other Measures/ RC Cross Cutting Issues Ongoing MoCI Consider quickly piloting specific market-based vocational and professional training initiatives through coalition of Government, industry groups and train ing institutions with special consideration to women. Institution Building Mid-1387 MoEC, MoE, MoHE, MoLSA, MoWA, Business Community, Civil Society Create incentives for private sector to invest in education specific to skills training, mentoring and on-the-job training. Other Measures End-1387 Ministry of Economy, Ministry of Finance Economic activity increases in response to increased human capacity and skill sets and business services Conceptualization of Private Sector Employment Strategy for Women that will yield to pro-women employment strategies in the private sector Other Measures/ Gender Cross Cutting Issues MoCI, MoWA 213 A peendcies PILLAR: ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Objectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agency Invest urgently in vocational and professional education to meet current needs, while simultaneously making parallel investments in reform of basic and higher education systems that will yield longer term results. Other Measures Mid-1387 Ministry of Labor and Social Affairs, Ministry of Education, Ministry of Economy Strengthen chambers of commerce and business membership organizations Institution Building Immediate Ministry of Commerce and Industry Co-ordinate public and private sector approaches to increasing access to essen tial business services Other Measures Mid-1388 Ministry of Commerce and Industry Increase access to information on current business development services Other Measures Mid 1387 Ministry of Commerce and Industry Support the establishment of accounting, auditing and other professional asso ciations and the adoption of related professional standards Institution Building Mid-1388 Ministry of Commerce and Industry Create the legal framework for and ensure the rapid development of the Af ghanistan National Standards Authority (ANSA) Legislation Immediate ANSA Increased and more effective competition Establish a consumer protection agency to define, communicate and protect consumer rights Institution Building End-1389 ANSA Identify and implement three pilot projects to test new approaches in areas such as power, water supply, transportation infrastructure and social develop ment. Other Measures Mid-1387 MoEW, MRRD, MoT, MOLSA Catalogue best practices drawn from across ministries (especially of Ministry of Health) of genuine partnerships between public and private sectors. Atten tion on increased women participation Other Measures Mid-1387 MoPH, MoE, MoLSA Public-Private Partnerships are used to aid social and economic development Develop programs of public-private partnership that would improve health, education, drug demand reduction Other Measures/ CN Cross Cutting Issues End-1387 MoPH, MoE, MoLSA, MCN Develop a formalization strategy grounded in an understanding of the incen tives and disincentives facing business, which reduces entry costs to, and op erating costs within, the formal sector and increases the benefits of formaliza tion Other Measures End-1387 MoCI, MoF Effectively communicate the nature and benefits of operating in the formal economy Other Measures Mid-1388 Ministry of Labor, Ministry of Commerce and Industry Increased levels of formal ization The new Afghanistan Pakistan Transit Agreement (APTA), the revised version of Afghan Trade and Transit Agreement (ATTA) signed with Pakistan in 1965 Other Measures/ RC Cross Cutting Issues MoCI, MoFA, MoF Increased provincial eco nomic growth Work with provincial public sector institutions to increase the consistency of application of commercial laws and regulations Institution Building End-1389 Ministry of Commerce and Industry 214 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Objectives or Outcomes Policy Action or Activities Category Timeframe Responsible Agency Develop and implement economic growth strategies for provinces, based on private sector development Other Measures Mid 1388 Ministry of Commerce and Industry Create the necessary legal and fiscal incentives that actively encourage indi vidual and corporate support for social and economic development. Legislation Mid-1387 Ministry of Finance Improve the legal framework governing corporate social responsibility (CSR) and philanthropy including creating a Foundation law; revising NGO law to allow CSOs to generate (non-commercial) revenue to ensure self sustainability; creating tax deductions for giving; and developing new mecha nisms for private giving such as Zakat funds, a Diaspora fund and community foundations. Legislation End-1387 Ministry of Finance, Ministry of Justice, Ministry of Econ omy Form a business donor's group to share best practices in corporate social re sponsibility and philanthropy to create more flexibility, risk-taking and imagi native practices in approaches to corporate giving, including lending good business practices to civil society. Institution Building Mid-1387 Business community Civil society helps drive economic and social devel opment Increase trust and credibility of the civil society sector by establishing a sys tem to vet CSOs through standards that the businesses would work with, pub licizing CSO successes, and educating businesses to increase understanding of the concept of CSR. Other Measures End-1387 Ministry of Economy; Civil Society Create a Council for the Private Sector, reporting on progress against this ma trix to the President. Institution Building Immediate Office of the President Develop a list of the private sector's most urgent priorities that would support an enabling environment, developed through a process of sub-national consul tation and engagement with the private sector to be presented to the Govern ment within three to six months. Other Measures Immediate Business community The Private Sector and Trade sector strategy is imple mented Establish a system of stocktaking at six-month intervals to monitor implemen tation of the Conference Road Map, with public dissemination of results. Institution Building Mid-1387 Proposed Council for the Pri vate Sector, Conference Steer ing Committee PILLAR: INFRASTRUCTURE SECTOR: ENERGY Outcomes Policy Actions or Activities Category Time frame Responsible Agency An enabling environment for private sector investment in Issuance of tenders for exploration and exploitation in northern country nota bly for power Development 2008 MoM MEW MoF 215 A peendcies PILLAR: INFRASTRUCTURE SECTOR: ENERGY Outcomes Policy Actions or Activities Category Time frame Responsible Agency Develop private sector opportunities to take on long-term production, trans port, supply of CNG Development 2009-2010 MoM, MEW Outsourcing operations at DABM (audit, billing) Development 2007-2009 MEW Implement Private distribution projects Development 2008 MEW, MoM Private sector promotion in renewable energy Development Immediately MRRD, MEW, AISA Divestiture of the Liquid Fuels Enterprise Development Program not in place MoF Assess and revitalize oil refinery Development MoCI, MoM Development of Sheberghan Gas Fields and Power Plant Development 2008 MoM Promotion of regional cooperation to facilitate various projects under the energy sector Institution Building / RC Cross Cutting Issues 2008-2010 MEW, MoFA To mainstream into all administrative reform programs measures required to address the systems and incentives promoting anti-corruption within the public administration system and Development Activities. Institution Building/ AC Cross Cutting Issues 2008-2009 MEW, MoM To maintain the highest level of transparency, accountability and integrity in the relationship between the public and private sector. Institution Building/ AC Cross Cutting Issues 2008-2009 MEW Gender mainstreaming in the policies in the energy sector. Development / Gender Cross Cutting Issues Continue MEW, MoWA Encouragement to Community Based Natural Resource Management for meeting energy needs of the people. Institution Building / Env. Cross Cutting Is sues TBD MoM, MEW Awareness generation of policy makers on the environmental issues so that they are taken care of in all projects in the energy sector. Institution Building / Env. Cross Cutting Is sues Continue MEW, MoM energy sector created Leveraging available donor assistance, pilot CNG for public vehicles (i.e., buses) and taxis; conversion of engines, fitting gas pump stations. Development No action at this time. MEW, MoCI, MoM Procure spare parts and fuel for thermal generation Development 2008 MEW Repair existing transmission and distribution systems including rehabilitating and/or upgrading substations and distribution networks Development 2008-2010 MEW Install meters for cross border transmission Development 2008-2010 MEW Repair existing thermal plants Development 2008-2009 MEW Expanded public power grid Starting National Energy Conservation Program (NECP) Development 2009 MEW 216 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: INFRASTRUCTURE SECTOR: ENERGY Outcomes Policy Actions or Activities Category Time frame Responsible Agency Implement ICE technical assistance (ADB) Development Commenced, ongoing through 2009 MEW MoM MoCI MoF MRRD MoE Take appropriate measures to reduce electricity loss Development 2008-2010 DABM MEW MoF Promotion of energy efficiency Development 2008 MEW DABM Kabul distribution procurement Development Commence work Febru ary 2008 MEW MoF DABM/S Completion of NEPS transmission Development Oct 08-Mar 09 MEW MoF Complete Turkmen assessment Development . March 2008 DABM/S Assessments of South, East and West Transmission needs Development 2008-2009 Procurement for meters Development Partially conducted now under distribution ten der; more needed. MEW MoF DABM Installation of Dispatch and Control System Development End 2009 MEW DABM Motion detectors Development 2008 commence and ongoing DABM/S Line inspections (regular protocols) Development Jul-05 MEW Health & Safety protocols Development 2008 MEW,MoM Operation & Maintenance protocols Development Priority to providing energy in areas having substantial narcotics cultivation to promote economic activity to generate alternate livelihoods Development/ CN Cross Cutting Issues Continue MEW Link rural energy with micro and small finance programs Development Commencing 2008 MRRD Develop a comprehensive and appropriate rural energy program Development TBD MEW Public awareness on rural energy opportunities, benefits, funding Development 2009 MEW, MRRD Assessment of priority areas based on income-generation opportunities Development 2008 MEW, MRRD Increased Access to Rural Energy Services Special attention to gender issues in providing energy for rural areas. Development TBD MEW, MRRD, MoWA Private Sector promotion in close as formalization of existing operator rights; tender for new rights (i.e., to support power generation) Legislation End 2008 MoM MEW MoF Private power generation policy Legislation End 2008 DABM/S Promotion of Private sector In collaboration with National Regulation Utility Commission (NURC), de velop Rural-remote Energy Policy Legislation 2008 MRRD, MEW 217 A peendcies PILLAR: INFRASTRUCTURE SECTOR: ENERGY Outcomes Policy Actions or Activities Category Time frame Responsible Agency Power Purchase Agreements for Power Imports Legislation 2008 MEW Revise 2 laws and 2 regulations related to Hydrocarbons, minerals and Market Cadastre & Inspectorate Legislation End 2008 MoM Corporatization and ongoing commercialization of DABS Legislation March 2008 MEW, MoF Power tariff reform Legislation Assess in 2008 MoJ, MEW Establishment of viable ICE working groups Institution Building Feb 2008 MoE MEW Improved GoA, Donor & NGO Coordination Institution Building 2008 Energy Sector Ministries and Institutions Build Afghan capacity to operate and maintain system Institution Building 2009 Energy Sector Ministries and Institutions Needs Assessment and Data Base Institution Building 2009 Energy Sector Ministries and Institutions Establish Project Management Unit Institution Building Jun-05 MEW Establish Pricing regime for natural gas Institution Building End 2008 MoM, MoF Define Government roles in clearly defining TORs for MRRD and MEW on rural energy aspects Institution Building Apr 2008 MRRD MEW Development of basic technical standards based on MRRD materials Institution Building Immediately MRRD Annual audit of all operations Institution Building Power – March 2008; others TBD MoM,MEW Restructured Energy Sector Governance and Commer cialized operations Develop and implement the organizational structure and staffing plan for Ru ral Livelihoods and Energy Department (RLED) Institution Building 2008 MRRD, MEW PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Policy Actions and Activities Category Time frame Responsible Agencies ROAD TRANSPORT Massive road rehabilitation, improvement and maintenance programs. (Ring Roads/Regional highways) Development/ RC Cross Cutting Issues March 2009 MPW Improved connectivity through out Afghanistan and to the foreign destinations within the region. Massive road rehabilitation, improvement and maintenance programs. (Prior ity: 5,335 km) Development End of 2010 MRRD, MPW 218 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Policy Actions and Activities Category Time frame Responsible Agencies (National Highways/Provincial Roads) Massive road rehabilitation, improvement and maintenance programs (with its entire infrastructure including drainage, walkways and street lighting system for urban roads). (Rural Roads and Urban Roads) (Priority: 6,290km Rural roads) Development End of 2010 MRRD, MPW, MoUD, Mu nicipalities The road and air infrastructure will be built and maintained to a higher quality, giving road users lower costs. Whereas, the Feasibility Study of the railway links will be done. Development March 2009 MPW, MRRD Rationalize road user fees (one fee) and use funds to establish a road fund that manages all road improvement programs. Institution Building End 2009 MPW, MoF Lower road user fees by 75% by end 2008. Development End 2008 MPW, MoTCA, MoF, MoFA, MoCI Lower road user costs Subsidy to private bus operators to implement the policy on promoting equita ble access to transportation Development/ Gender Cross Cutting Issues End 2008 MoTCA Massive road rehabilitation, improvement and maintenance programs (with its entire infrastructure including drainage, walkways and street lighting system for urban roads). (Urban Roads) Development End 2010 MUD, Provinical Municipali ties, MPW, MRRD Less journey time lost due to congestion Improve Public Transport Provision in Urban and inter-provincial (34 prov inces) (with having bus and truck terminals in all the provincial centers) Development 2010 MoTCA. MPW, KM, MoUD, Provincial Municipalities Improved air quality. Pass enabling legislation so that the environmental law has regulations that can be enforced Legislation By end-2008 Transport sector line ministries and institutions CIVIL AVIATION Massive reconstruction program (Kabul Int'l Airport, Herat in compliance with ICAO and IATA requirements) Development By March 2011 MoTCA Massive reconstruction program (Mazar-i-Sharif, Jalalabad, Kandahar airports) Development By March 2011 MoTCA Increased domestic and in ternational passengers and freight traffic. Massive reconstruction program (Seven Other Domestic airports) Development By March 2011 MoTCA All stakeholders are well informed about the viability of air transport systems. More air transport service providers enter the Afghan market—requires an enabling environment for businesses Legislation By March 2011 MoTCA 219 A peendcies PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Policy Actions and Activities Category Time frame Responsible Agencies Institutional reform programs and a reduction in the requirement of ISAF to use air facilities (Create a new Civil Aviation Authority (CAA), and restore control of Afghan airspace to the Civil Aviation Authority.) Institution Building By end 2009 MoTCA, MoF Improved governance of civil aviation sector. Massive capacity building programs End 2008 MoTCA OVERALL TRANSPORT SECTOR Improved governance struc ture of the structure Capacity building specially in the areas of project monitoring and contract management • Completing the regulatory framework- developing the regulatory framework for the implementation of the Procurement law, developing roads standards and codes, land acquisition; • Establishing an effective external scrutiny system; • Conducting VCA and developing mitigation plans in the sector; • Targeted anti corruption training for the responsible anti-corruption agencies to effectively investigate and report on corruption; • Developing code of conducts and enforcement mechanisms • Increasing wages of the civil service Institution Building/ AC Cross Cutting Issues End 2010 MoTCA After a study of international standards, adopt a set of standards that are com patible with Afghanistan’s neighbors. Institution Building End 2008 MPW, MRRD, KM, MoUD, IDLG Establish a Transport Sector Inter-ministerial Working Group to determine the lines of authority between the transportation-related governance institutions and the roles and responsibilities of each institution. Institution Building End 2008 MPW, MoTCA, MRRD, MoUD, MoF, IDLG, MoI, KM Create an inter-ministerial costing committee to work with the Ministry of Finance to cost out annually programs that take five to fifteen years to imple ment Institution Building End 2008 MPW, MoTCA, MRRD, KM, MoI, IDLG, MoF Institute a substantial capacity building program, including a road safety pro gram. (Improve the MoI’s capacity to conduct drivers’ licensing tests, vehicle safety inspections and enforce traffic flow regulations.) Institution Building End 2008 MoI Develop the Traffic Management Bureau form the MoI to the Provinces and Municipalities through the new Independent Directorate of Local Governance Institution Building End 2009 MoI, IDLG Institutional reforms put in place to simplify governance of the sector, includ ing devolution of authority to the Provinces and Municipalities. Institution Building End of 2010 Transport sector line ministries and institutions Cost savings will be realized by the governing institutions and thus there will be Government budget savings. Institution Building 2009 Transport sector line ministries and institutions Improved connectivity through out Afghanistan and to the foreign destinations within the region. Put in place systems to improve transparency in all functions of the govern ment in the transport sector Institution Building 2010 Transport sector line ministries and institutions 220 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Policy Actions and Activities Category Time frame Responsible Agencies Give more autonomy to local communities and the Provincial Governments to determine how and when rural roads are improved, as well as provincial roads Institution Building End 2009 MRRD, IDLG Improve coordination between transport sector governance institutions, the MoI and ISAF so that the transport sector can better develop in conflict affected areas of the country as soon as possible Institution Building Transport sector line ministries and institutions Increase public sector salaries in tandem with increases in capacity Institution Building End 2008 GoA and Transport sector line ministries and institutions Annual assessment of data collected and databases maintained and updated in all planning departments, including municipalities, mapping progress against the goal of “best practices” data collection and databases for transport sector planning, with necessary funding mechanisms and capacity building programs in place and operational Institution Building 2009 Transport sector line ministries and institutions Strengthening the planning capacity of ministry staff for road transport, air ports, and rail functions so that the ministry staff can perform feasibility stud ies, Master planning, and multi-modal planning, as well as asset management planning, to international standards Institution Building 2010 Transport sector line ministries and institutions Pass legislation and enabling regulations to allow transport sector governing institutions to competitively engage and manage private contractors, private contract supervision engineers to maintain roads, airports and other transport infrastructure, also regulations that protect the normal market rights of those contractors. Legislation 2013 Office of the President, the National Assembly, MoTCA, MPW, MoI, MoF, MRRD, IDLG and MoUD Pass required legislation and enabling regulations so that the Mortgage law is passed and enforced. Legislation End 2008 Office of the President, the National Assembly, MoUD, MoJ, and MoF Pass any required legislation and enabling regulations so that private and pub lic sector rights are protected in contract law, enforcement, and penalties for violation. Legislation End 2008 Office of the President, the National Assembly, MoCI, MoJ and MoF Reform laws relating to determining "fair market value" of lands purchased for transport sector improvements Legislation 2010 MPW, MoF, MRRD, MoUD, IDLG,Office of President, National Assembly, MoJ Develop and put in place an axle-load limit violation fees and an enforcement system Legislation End 2008 MPW, MoF Business environment for private sector development improved to create jobs and reduce poverty. Pass any required legislation and enabling regulations so that private sector insurance, auditing, and bonding industries can develop, and foreign insurance firms can operate in Afghanistan, protecting rights of the companies and the Legislation End 2008 Office of the President, the National Assembly, MoCI, MoJ and MoF 221 A peendcies PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Policy Actions and Activities Category Time frame Responsible Agencies public, with penalties for violations. Improved trade, transit documentation procedures Legislation/ RC Cross Cutting Issues End 2009 National Assembly, MoTCA Introduce and checks and balances for illicit transpiration of human and com modities like precursors, drugs, etc. Legislation and Devel opment/ CN Cross Cut ting Issues Mid 2009 National Assembly, MoTCA. MCN, MoI, MoJ PILLAR: INFRASTRUCTURE SECTOR: URBAN DEVELOPMENT Outcomes Policy Actions or Activities Category Time frame Responsible Agency Access to secure tenure and improved services and pub lic facilities for inhabitants of informal settlements Review of relevant legislation to facilitate regularization, followed by program of investments in basic infrastructure and public facilities with drawing from best practices in the region Legislation/ RC Cross Cutting Issues End 2013 KM/IDLG/MUD Improved institutional coor dination and monitoring of key urban indicators Institutional reform and enforcement of administrative processes; introduction of effective systems of monitoring and evaluation for the implementation phase for transparent urban development processes Institution Building Mid 2009 KM/IDLG/MUD Investments in piped water systems and drainage networks (improved sanita tion), Development March 2011 KM/IDLG/MUD Urban Property registration and mapping in major municipalities Development End 2009 IDLG, MoUD Feasibility studies for building new roads Development End 2008 IDLG, MoUD, MPW Implementation of Traffic Management Strategies Development 2009 MoUD, IDLG, KM, MoI Increase reconstruction of asphalt roads in major and secondary cities Development 2010 IDLG, MoUD, KM, MPW Rehabilitation of existing damaged roads Development 2009 IDLG, MoUD, KM, MPW Increased and inclusive ac cess for urban households to basic services Design and build (asphalted) new roads Development 2010 IDLG, MoUD, KM, MPW Investments by public and private sector in land and housing development, coupled with development of systems of housing finance Development End 2013 KM/IDLG/MUD Most needy households receive a housing subsidy Development 2009 KM/IDLG/MUD Increased availability of affordable shelter City Development Plans for 40 major municipalities Development 2010 MoUD, KM, IDLG 222 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: INFRASTRUCTURE SECTOR: URBAN DEVELOPMENT Outcomes Policy Actions or Activities Category Time frame Responsible Agency Regional Development Plans for all 8 zones of the country Development 2010 MoUD, IDLG, Detailed development plans for major 10 cities Development 2010 MoUD, IDLG, Provide land tenure to the inhabitants in informal settlements Development 2009 MoUD, KM, IDLG Upgrade the basic infrastructure and urban services in the informal area Development 2010 MoUD, KM, IDLG Establish Dehsabz New City and turn Kabul into a business hub of the sur rounding regions Development 2007 - 2025 DCDA Review and update policies, regulations and implementation plans that will consider crosscutting issues gender, environment, ant-corruption and counter narcotics. Legislation/ Cross Cut ting Issues End 2009 KM/IDLG/MUD Comprehensive and gender sensitive reform of institutions, review and update of relevant legislations, policies and administrative processes Institution Building/ Gender Cross Cutting Issues End 2009 KM/IDLG/MUD, MoWA Institutional Reform Action Plans in 34 municipalities/ministerial departments Institution Building End 2009 KM/IDLG/MUD Computerize HRM/Finance and program activities to strengthen Human Re source, Financial and Program Management Institution Building/AC Cross Cutting Issues MUD, KM Improved financial management in 30 major municipalities Institution Building End 2009 KM/IDLG/MUD Property tax implementation Institution Building IDLG, KM Preparation of economic data base for revenue administration Institution Building MoUD, IDLG, KM Establish Uni- urban Data collection unit (encourage disaggregated data col lection) Institution Building/ Gender Cross Cutting Issues MoUD, IDLG, KM Training and capacity building of the key staff in the process of monitoring and evaluation and re-planning Institution Building End 2009 KM/IDLG/MUD Strengthened institutional capacity to plan and manage urban development in a sys tematic and transparent manner Capacity building of technical and managerial staff of provincial municipali ties Institution Building IDLG, Management Plans and Implementation of management plans initiated for protected areas and national parks, including game reserves, wetlands and bird sanctuaries Development/ Environ ment Cross Cutting Is sues MUD, KM, NEPA Ensure environment sustainability of all urban development programs Development/ Environ ment Cross Cutting Is sues MUD, IDLG, KM, NEPA Improved environment friendly programs and poli cies Develop national settlement and regional strategic plans and through them Institution Building/ RC End 2009 MUD, IDLG, 223 A peendcies PILLAR: INFRASTRUCTURE SECTOR: URBAN DEVELOPMENT Outcomes Policy Actions or Activities Category Time frame Responsible Agency provide a framework for balanced urbanization and greater regional coher ence, from which the border cities of Afghanistan and neighboring countries shall benefit. Cross Cutting Issues PILLAR: INFRASTRUCTURE SECTOR: MINES AND NATURAL RESOURCES Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency Planning exploration activities, mapping, survey of minerals, oil and gas, col lection of geophysical and geological information Development Continued MoM Geophysical and geological information available Conducting geological research studies Development Continued MoM Master plan on underground water development Development End 2014 MoM, other line ministries Manual for underground water management Development End 2008 MoM Rehabilitation of the Hydrological and Geo-engineering research sections Development End 2010 MoM Issuance of permit to Private Sector who work on underground water Development TBD MoM Rehabilitation and establishment of new Hydrological Stations for collection of the necessary information and figures Development Continued MoM Increased access to water resources Enhancement of working relationships with related line ministries for water Development Continued MoM Design and implementation of Mineral policy Legislation 2008-2013 MoM Preparation of Gas Law and Manual Legislation End 2009 MoM Analysis study of loss and damages in mines extraction Development Continued MoM Categorizing oil and gas fields to gas blocks for better management Development Continued MoM Leasing of oil and gas blocks to privates sector for research and study Development Continued MoM Increased Private Sector Investment in mining sector Establishment of new organizational structure for gas and oil management Institution Building End 2008 MoM Public access to natural gas Design of plan for gas pipeline grid to provinces Development Continued MoM PRR Implementation Institution Building End 2009 MoM Capacity building of Survey and Geological staff Institution Building Continued MoM Strong regulatory framework in place Equipping labs of GSD Institution Building First Phase will be done by 2008 and then Con tinued MoM 224 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: INFRASTRUCTURE SECTOR: MINES AND NATURAL RESOURCES Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency Standardizing working a capacity of Geology staff Institution Building Continued MoM Coordination with different countries in raising capacity of the public sector Institution Building Continued MoM Introduction of measures to ensure environmental concerns taken care of. Institution Building/ Env. Cross Cutting Issues Continued MoM Conservation of Biodiversity in implementing mining projects Development/ Env. Cross Cutting Issues Continued MoM Promotion of regional cooperation to facilitate various projects under the mining sector Development/ RC Cross Cutting Issues Continued MoM To mainstream into all administrative reform programs measures required to address the systems and incentives promoting anti-corruption within the public administration system and Development Activities. Institution Building / AC Cross Cutting Issues Continued MoM To maintain the highest level of transparency, accountability and integrity in the relationship between the public and private sector. Institution Building / AC Cross Cutting Issues Continued MoM Gender mainstreaming in the policies in the mining sector. Development/ Gender Cross Cutting Issues 2008-2013 MoM Priority to areas having substantial narcotics cultivation to promote economic activity to generate alternate livelihoods Development/ CN Cross Cutting Issues 2008-2010 MoM PILLAR: INFRASTRUCTURE SECTOR: WATER RESOURCES Expected Outcomes Policy Action Category Time frame Responsible Agencies Assess, identify, draft, review, debate, resolve, finalize water law and supple mentary regulations Legislation 2008-2009 MEW, MAIL., MoM, MoUD, MRRD, NEPA, MoPH Conduct appropriate studies, identify specific pilot programs, experimentation, and customize river basin institutional structures. Institution Building by 2010 MEW, MAIL,MRRD, MoM, MoUD, NEPA Establishment of institutions for hydrometric network in the country Institution Building by 2010 MEW National urban and rural water supply institutions in place Institution Building by 2011 MoUD, MRRD Training of staff from various sector ministries on integrated water resources management Institution Building Continue MEW, MAIL., MoM, MoUD, MRRD, NEPA, MoPH Improved water sector legal and governance structures and institutions in place Establishment of organization and capacity building of River Basin Agencies and Sub-agencies (RBA/ SBA) and River Basin and Sub-basin Councils Institution Building 2008-2009 MEW 225 A peendcies PILLAR: INFRASTRUCTURE SECTOR: WATER RESOURCES Expected Outcomes Policy Action Category Time frame Responsible Agencies (RBC/SBC) Training of SCWAM Technical Secretariat staff Institution Building Continue MEW, MAIL., MoM, MoUD, MRRD, NEPA, MoPH Gathering of data socio-economics, geology/groundwater, environment, hydro logical, meteorological and others for project development Institution Building by end 2010 MEW, MAIL., MoM, MoUD, MRRD, NEPA, MoPH Development of curriculum in water resources management at local universi ties/technical colleges Institution Building by end 2009 MEW, MAIL, MoHE, MRRD, MoM Assessment studies for project Institution Building Continue MEW,MAIL, MRRD, MoUD, NEPA, MoPH Institute training in HEC RAS and other appropriate modeling techniques Institution Building 2010 MEW, MAIL., MoM, MoUD, MRRD Assignment of staff/personnel to consultancy contracts for training Institution Building end 2009 MEW, MAIL, MRRD,MoUD, MoM Gender discrepancies in various laws systematically uncovered Legislation/ Gender Cross Cutting Issues 2008-2009 National Assembly, MoUD, MoJ Regional water issues dialogues initiated Legislation/ RC Cross Cutting Issues TBD MoFA, MEW, MAIL, SCWAM Initiate appropriate inventory studies, water resources planning studies and basin master plans Development end 2010 MEW, MAIL., MoM, MoUD, MRRD, NEPA Complete master plan investigations Development 2010 MEW, MAIL, MRRD,MoUD, MoM, SCWAM,NEPA Identify, study, design, procure and implement projects Development Continue MEW, MAIL, MRRD,MoUD, MoM,NEPA Sustainable water resources management strategies and plans covering irrigation and drinking water supply devel oped and implemented. Identify, prioritize, and implement rehabilitation program Development Continue MEW, MAIL, MRRD,MoUD, MoM,NEPA Enhance achievement tracking procedures and augment NSP resources Development by 2010 MRRD WUA implementation programming Development Continue MEW, MAIL, MRRD, MoUD Strengthen required resources and monitor programs Development Continue MEW, MAIL,MoUD, MRRD, NEPA Water resources for irriga tion and Drinking purposes improved. Improve existing drinking water supply systems and build new systems in villages and cities, including Kabul Development by 2010 MoUD, MRRD, MoM, MEW 226 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: INFRASTRUCTURE SECTOR: WATER RESOURCES Expected Outcomes Policy Action Category Time frame Responsible Agencies Rehabilitation of National Hydro-meteorological network Development by 2010 MEW Development of technical plans, management plans, and implementation strategies for Amu Darya River Basin, Northern River Basin, Western River Basin, Helmand River basin, and Kabul River Basins, Development by 2011 MEW Rehabilitation of all small, medium, and large traditional irrigation schemes and strengthen water users association Development Continue MEW, MAIL, MRRD Provision of access to water and sanitation facilities to rural people Development Continue MRRD Undertake riverbank protection and erosion control works and implement long-term flood control program Development Continue MEW Community based natural resource management established Development/ Env. Cross Cutting Issues Continue MEW, NEPA, MRRD, MAIL Water resources for irrigation utilized for non-poppy farming Development/ CN Cross Cutting Issues by 2010 MEW, MCN, MAIL, MRRD PILLAR: INFRASTRUCTURE SECTOR: INFORMATION & COMMUNICATION TECHNOLOGY Expected Outcomes Policy Actions or Activities Category Time frame Responsible Agencies Internet Exchange point Development 2008-2010 MoCIT ICT Village Development 2008-2010 MoCIT E-Government Development 2008-2013 MoCIT National Internet Registry of Afghanistan (NIRA) Development 2008-2011 MoCIT Afghanistan Cyber Emergency Response Team (AfCERT) Development 2008-2011 MoCIT E-Afghanistan created National Identity Management Initiative (NIMI) Development 2008-2013 MoCIT Development of policies, laws, regulations procedures and other normative acts to accelerate the role of telecom services to citizens Legislation 2008-2010 MoCIT Establish Telecom Development Fund (TDF) Legislation 2008-2013 MoCIT Drafting the ICT Law Legislation 2008-2009 MoCIT Develop CIO (Chief Information Officer) culture in government organizations Institution Building 2008-2009 MoCIT Enabling Environment Movement of the government institution to a modern level of services to the Institution Building 2008-2013 MoCIT 227 A peendcies PILLAR: INFRASTRUCTURE SECTOR: INFORMATION & COMMUNICATION TECHNOLOGY Expected Outcomes Policy Actions or Activities Category Time frame Responsible Agencies citizens Developing Curriculum and Regulatory Framework for ICT Training Centers in the Private Sector Institution Building 2008-2011 MoCIT Develop rules and regulations to require all government institutions to publish documents on their official websites (as a supplement to the Official Gazette) Institution Building end 2008 MoCIT Adopt a full set of Rules and Procedures that will govern the competitive pro curement and utilization of ICT by all government institutions Institution Building end 2008 MoCIT Reduce corruption by reviewing all government services and making recom mendations for the adoption of ICT to streamline and automate (for example, customs processing, procurement and licensing Institution Building end 2009 MoCIT Pilot home based ICT related work for women Development/ Gender Cross Cutting Issues 3nd 2008 MoCIT ICT Literacy improved Establishment of ICT centers in 34 Provincial capitals Development 2008-2011 MoCIT Optical fiber backbone Development End 2008 MoCIT Government online (web presence) Development 2008-2013 MoCIT E-government Resource Centre Development 2008-2013 MoCIT Copper Cable Network Development 2008-2013 MoCIT Expansion of District Communication Network (DCN) Development 2008-2013 MoCIT Expansion of Microwave System Development 2008-2013 MoCIT Village Communications Network (VCN) Development 2008-2013 MoCIT Modernization of Postal Services Development 2008-2013 MoCIT National Data Centre (The electronic data of the government will be securely hosted and will be available to all entities upon request and level of access) Development 2008-2013 MoCIT Improved ICT coverage and Infrastructure The National Data Centre will have information on crosscutting issues like anti-corruption, counter narcotics, and environment. Development/ Cross Cutting Issues 2008-2013 MoCIT PILLAR: HEALTH AND NUTRITION SECTOR: HEALTH AND NUTRITION Expected Outcomes Policy Actions or Activities Category Time frame Responsible Agency 228 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: HEALTH AND NUTRITION SECTOR: HEALTH AND NUTRITION Expected Outcomes Policy Actions or Activities Category Time frame Responsible Agency Develop an effective organization and management system to coordinate all services of NHCS Institution Building 2008 - 2013 MoPH Strengthen HRD unit to oversee the HR and R&D issues, Computerize all HRM activities to strengthen Human resource management Institution Building/ AC Cross Cutting Issues 2009 - 2013 MoPH Develop a suitable regulatory framework to encourage private sector invest ment Legislation 2009 - 2013 MoPH Strengthen policy and planning support unit in the Ministry Legislation 2008 - 2013 MoPH Effective monitoring and reporting of quality of services provided by different agencies Institution Building 2008 - 2013 MoPH Establishment of a quality support program Institution Building 2008 - 2013 MoPH Making service delivery performance based through incentives and contract monitoring and exploring options for implementing results based financing of health service delivery in Afghanistan. Institution Building 2009 - 2013 MoPH Increased quality of health care services To mainstream into all administrative reform programs measures required to address the systems and incentives promoting anti-corruption within the public administration system and Development Activities. Institution Building/ Cross Cutting Issues 2008 - 2013 MoPH Implement the Primary Health Care Program Development Ongoing MoPH Develop a comprehensive referral system integrated with BPHS to improve the service delivery level Development 2008 - 2013 MoPH Harmonize the system of procurement and disbursement of essential medicines Institution Building 2008 - 2013 MoPH Develop a comprehensive care system for communicable diseases like TB, HIV and malaria Development Ongoing-2013 MoPH Establish and maintain required number of Health Facilities providing diagnos tic and treatment TB services Development Ongoing-2013 MoPH Establish number of Health Facilities providing diagnostic and treatment Ma laria services Development Ongoing-2013 MoPH Establishing effective surveillance system and Volunteer Confidential Counsel ing and Testing Center for HIV cases in each province Development 2008 - 2013 MoPH Awareness generation against ills of drug usage and environmental issues af fecting health Development/ CN Env. Cross Cutting Issues Ongoing-2013 MoPH Increased access to health care services Establishing centers for treatment and rehabilitation of Drugs users. Development/ CN Cross Cutting Issues Ongoing-2013 MoPH 229 A peendcies PILLAR: HEALTH AND NUTRITION SECTOR: HEALTH AND NUTRITION Expected Outcomes Policy Actions or Activities Category Time frame Responsible Agency Promotion of regional cooperation to make health facilities available to the people of Afghanistan if such facilities are not available in the country. Development/ RC Cross Cutting Issues Ongoing-2013 MoPH Develop an integrated reproductive and child health care system with the sup port of development partners Development Ongoing-2013 MoPH, MoE, MoWA, MoHE Develop effective immunization coverage system with adequate doses of DPT vaCross Cutting Issuesne & Hepatitis, measles and polio in all provinces Development Ongoing-2013 MoPH Effective Reproductive and Child health system A Special Cell be created to take care and promote all gender issues especially health of females and mothers Development/ Gender Cross Cutting Issues Ongoing-2013 MoPH PILLAR: EDUCATION AND CULTURE SECTOR: EDUCATION Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency PRIMARY AND SECONDRY EDUCATION Approval of laws for setting up of Independent Boards for secondary educa tion, vocational education and for national standards of accreditation and regu latory framework for quality assurance of education services Legislation 1386 MoE Develop policies to encourage the non-government sector to offer services Legislation 1386 MoE Establish School Advisory and Support Councils (SASC) in all schools Institution Building 1385-1389 MoE Establish Independent Boards for secondary education, NESA and National Institute of Management and Administration Institution Building 1387-1389 MoE Establish a National Institute of Curriculum Development incorporating na tional standards benchmarks Institution Building 1387-1389 MoE Strengthen institutional and staff capacities in curriculum development with special focus on gender, counter-narcotics, environment and anti-corruption. Institution Building/ Cross Cutting Issues 1387-1389 MoE Create a sustainable, transparent and accountable financial management system at central, provincial and district level Institution Building 1386-89 MoE Create a computerized HRM system to strengthen human resource manage ment Institution Building/ AC Cross Cutting Issues 1387-1388 MoE Improved quality of educa tion Monitor the activities of sector administrative units to confirm adherence to ethical standards, professional service and staff integrity, based upon relevant laws, codes of conduct and standardized procedures and protocols Institution Building/ AC Cross Cutting Issues 1387 MoE 230 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: EDUCATION AND CULTURE SECTOR: EDUCATION Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency Implement PRR and Pay and Grading of all approved positions within the min istry including teaching staff Institution Building PRR1385-1386 Ap proved position 1387 1389 MoE Build a national partnership program of literacy and non-formal education Institution Building 1387 MoE Increase the number of female primary and secondary teachers including re training all female teachers who were separated from service during the PRR process and re-employing them. Development / Gender Cross Cutting Issues 1389 MoE, MoWA Establish/strengthen teacher training colleges in all provinces Development / Gender Cross Cutting Issues 1386-1389 MoE, MoWA Train 17,000 teachers and 3,500 mullahs in the delivery of literacy courses with at least 30% of them being female teachers. Development 1386-89 MoE Improve the quality of primary and secondary teaching (training teachers, school principals) Development 1387-1389 MoE Improve teaching material and new curricula for secondary schools Development 1386-1389 MoE Student Competency tests prepared and implement testing Development 1387-1389 MoE Adopt an enabling policy to implement the Constitutional provision of compul sory education up to intermediate level Legislation / Gender Cross Cutting Issues 1387 MoE Reduce dropout level by … Development 1389 MoE Adopt a system to follow up female drop outs and provide incentives to return them to school Institution Building / Gender Cross Cutting Issues 1387-1389 MoE; MoWA Increase enrolment rates at primary and secondary school Development 1386-1389 MoE Implement parent-oriented campaign to promote support to girls' enrolment Development/ Gender Cross Cutting Issues 1386-89 MoE; MoWA Conduct review class for girls who graduate from secondary schools to prepare for college entrance examinations Development/ Gender Cross Cutting Issues 1386-89 MoE Literacy rate increased Have a program of remedial education to address literacy rates Development 1387-1389 MoE Construction and School Rehabilitation Development 1389 MoE Construct dormitories and pro-women facilities, especially in the secondary level schools Development/ Gender Cross Cutting Issues 1386-89 MoE Equal opportunity for all Produce new textbooks and teacher guides Development 1386-89 231 A peendcies PILLAR: EDUCATION AND CULTURE SECTOR: EDUCATION Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency Establish National Institute of Management and Administration at MoE /TVET Department. Operation of the Institute to be contracted out Development 1387 MoE Disaggregate by sex all human related statistics Institution Building/ Gender Cross Cutting Issues 1386-89 MoE HIGHER EDUCATION Policies that require new university professors and lecturers to be hired on the basis of academic merit and gender balance. Legislation 1386-1389 MoHE; MoWA Upgraded qualifications of faculty through university partnership programs Institution Building Already commenced. This is a continuing program (1386-1389) MoHE Recruit foreign residing Afghan and regional Professors through regional agreements Institution Building/ RC Cross Cutting Issues TBD MoHE, MoFA Institutional strengthening at MoHE Institution Building Commence 1389- con tinuing MoHE Create a computerized HRM system to strengthen human resource manage ment Institution Building/ AC Cross Cutting Issues TBD MoHE Monitor the activities of sector administrative units to confirm adherence to ethical standards, professional service and staff integrity, based upon relevant laws, codes of conduct and standardized procedures and protocols Institution Building/ AC Cross Cutting Issues TBD MoHE Investigate possible funding models that would provide greater autonomy Institution Building 1386-1389 MoHE A reorganized and streamlined recruitment and hiring process (PRR) at the MoHE within its departments and at the 19 institutions of higher learning Institution Building 1385-88 MoHE Adopt strategy to hire more women professionals; re-train female teachers who were dismissed during the PRR process and re-employ them Institution Building/ Gender Cross Cutting Issues 1385-89 MoHE; MoWA Establish a separate body responsible for standards and accreditation all degree granting institutions and professional programs, public and private, in Afghani stan. Institution Building 1387-TBD it is a conti noued Programe MoHE Monitor standards and ensure consistency between institutions Institution Building 1387 MoHE Revised and approved curricula and related teaching materials; training for professors and lecturers in use of these Institution Building 1388 MoHE Improved quality of aca demic teaching and research Identify and evaluate existing research capacity in higher education institutions Institution Building/ AC TBD MoHE 232 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: EDUCATION AND CULTURE SECTOR: EDUCATION Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency and non-governmental organizations in Afghanistan. Cross Cutting Issues Rehabilitate existing universities and build new library and laboratory facilities at existing universities. Development 1381-1389 MoHE Construction of 24 new dormitories 12 for men and 12 for women Development 1385-1389 MoHE Recruit 3000 new professors, including qualified Afghan professors from the region (India, Pakistan, Tajikistan, and Iran). Development 1387-1389 MoHE Increased number of research centers at higher education institutions. Development 1389 MoHE New MA programs at departments of languages and literature at Kabul Univer sity, and new programs for the faculties of social science, law, economics, geology, engineering, agriculture, and Islamic law. Development Already Commenced MoHE Strengthen security in the campus Institution Building / Gender Cross Cutting Issues 1386-89 MoHE Conduct review class for girls to prepare them for college entrance examina tions Institution Building / Gender Cross Cutting Issues 1386-89 MoHE Improved access to Higher Education Disaggregate by sex all human related statistics Institution Building / Gender Cross Cutting Issues 1386-89 MoHE VOCATIONAL EDUCATION Proposal to formalize existing apprenticeship arrangements and expand the system. Ensure that a recognized qualification is provided to people undertak ing apprenticeships who have achieved specified basic competencies. Legislation 1387 NSDP Expand the capacity and improve the quality of Vocational Education and Skill Development Institution Building 1389 NSDP Improve the capacity of the national VET system to manage and deliver mar ket-driven skills training and linkages to micro-credit and business develop ment support services is planned to have increased. Institution Building 1389 MoL/NSDP Within the next 12 months, establish an independent National Vocational Edu cation and Training Authority with the responsibility for managing and co coordinating national VET policy will be established. Teaching and operation of individual VET institutions to be contracted out. Institution Building 1387-TBD it is a contin ued Program NSDP Improved quality of voca tional education Target the most vulnerable women and youth in the selection of training and Institution Building/ Gender Cross Cutting 1386-89 NSDP 233 A peendcies PILLAR: EDUCATION AND CULTURE SECTOR: EDUCATION Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency provision of employment opportunities Issues Develop an accessible, regional network of TVET schools and training centers, including 17 new schools and a school for those with special needs Development 1387-1388 MoE/TVET Dept Establishment of job-placement centers in all 34 provinces Development 1387-1389 (2010) The NSDP will procure the services of a variety of training providers (pri vate/public) for the provision of training to 150,000 unemployed Afghan women and men through competitive bidding procedures Development 1385-1389 (2010) MoL/NSDP Improved access to voca tional education Disaggregate by sex all human related statistics Institution Building/ Gender Cross Cutting Issues 1386-89 MoL/NSDP SPORTS Delegate the overall authority to coordinating sports services in the country to the Olympic Committee Legislation 1389 MoE/NOC Build capacity of professional staff of the National Olympic Committee for quality programming of administration and service delivery Institution Building 1389 MoE/NOC Approach countries and foreign sporting agencies with facilities for advanced athletes to allow Afghan sports people to train and compete in foreign countries Development 1387 MoE/NOC Adopt and implement a strategy to realize the benchmark of increasing women's access, leadership and participation in sports Institution Building/ Gender Cross Cutting Issues 1386-89 MoE/NOC; MoWA Improve Infrastructure (build sports complexes and strengthen sports through provincial sports departments, sports improvement programs in capital and provinces) Development 1389 MoE/NOC Improved sports facilities Sex-disaggregate all human related statistics Institution Building/ Gender Cross Cutting Issues 1386-89 MoE/NOC;MoWA SCIENCE ACADEMY Establish advisory committees consisting of academy members and MoE and MoHE officials. To advise on training and curriculum issues. Institution Building 1388 Science Academy Complete Encyclopedia Project Institution Building 1386-1389 Science Academy Consider publication of an academic journal edited by the academy Institution Building 1389 Science Academy Enhanced contribution of the Academy in Science Construct a 7-story building for use by the academy (note: this building could also be used for higher education teaching and seminars) Institution Building 1385-1389 Science Academy 234 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: EDUCATION AND CULTURE SECTOR: EDUCATION Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency Rehabilitate the Centre for Literature and Language at the academy Institution Building 1385-1389 Science Academy Provide laboratory facilities for the academy Institution Building 1387-1389 Science Academy PILLAR: EDUCATION AND CULTURE SECTOR: MEDIA AND CULTURE Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency Rehabilitation of Kabul theater, Ministry complex, 20 historical monuments, building for MoIC provinces Dept. libraries in provinces, music institute in Kabul construction of museum in Nangarhar, Bamyan etc… Development 2010 MoIC Comprehensive inventory of Afghan cultural treasures Development 2007 MoIC Measures to be taken to revive the Afghan cultural heritage, to stop the illegal removal of cultural material and to restore damaged monuments and artifacts Legislation 2010 MoIC Registration, conservation and restoration of sites and monuments Development 2010 MoIC Afghanistan’s cultural Heri tage Protected and Preserved The MoIC will continue registration and conservation of monuments, repair and preservation of museum, archeology items and historical monuments Development Continue MoIC Pass Media Law Legislation 2008 MoIC Inventory of intangible cultural heritage (music) Development 2008 MoIC Take appropriate measures to promote Live Culture (Music, Cinema and Arts) Development 2013 MoIC Development of a truly editorially independent public service broadcasting of a high standard educational radio-TV production centre Development 2010 MoIC Renovation of the existing Radio Studios (National) equipments Development 1385 MoIC Free and independent media Sensitizing media about the issues related to gender, anti-corruption, counter narcotics, environment and regional cooperation Development/ Cross Cutting Issues 2010 MoIC (Youth Affairs Deputy Ministry) 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 oppor tunities. Development 2010 MoIC (Youth Affairs Deputy Ministry) Empowerment of Youth Engaging youth in governance, development and social-political processes at local, district, municipal, provincial and national level, ensuring the participa tion of young women and men in democracy and advocacy. Development 2010 MoIC (Youth Affairs Deputy Ministry) 235 A peendcies PILLAR: EDUCATION AND CULTURE SECTOR: MEDIA AND CULTURE Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agency Promoting voluntary efforts for peace and development and establishing a youth volunteer corps for Afghanistan and also in the fields of gender, anti corruption, counter-narcotics, environment and regional cooperation. Development 2010 MoIC (Youth Affairs Deputy Ministry) Sensitizing youth about the issues related to gender, anti-corruption, counter narcotics, environment and regional cooperation. Development/ Cross Cutting Issues 2010 MoIC (Youth Affairs Deputy Ministry) PILLAR: AGRICULTURE AND RURAL DEVELOPMENT SECTOR: AGRICULTURE AND RURAL DEVELOPMENT Expected Outcomes Policy Actions or Activities Category Timeframe Responsible Agency Review of the legal framework governing ARD sector, including governmental institutional reforms Legislation/ Policy/Plan 1387 - 1389 MAIL, MRRD, MCN and IDLG Develop 5 years action plan which quantifies all 8 functions of ARD zones including budget requirements, roles and responsibilities and appropriate M&E systems Legislation/ Policy/Plan 1387 - 1388 CARD Inter-ministerial Committee To mainstream into all administrative reform programs measures required to address the systems and incentives promoting anti-corruption within the public administration system and Development Activities. Legislation/ Policy/Plan / AC Cross Cutting Is sues 1387 - 1389 MAIL, MRRD Improved service delivery within the Agriculture & Rural Development sector To maintain the highest level of transparency, accountability and integrity in the relationship between the public and private sector. Legislation/ Policy/Plan / AC Cross Cutting Is sues 1387 - 1391 MAIL, MRRD Align ARD Programs to promote sustainable growth and distribute wealth through CRD Legislation/ Policy/Plan 1387 - 1391 MAIL, MRRD and MCN Poverty Reduced in line with MDG targets Develop and implement poverty baseline and survey database in addition to NRVA Legislation/ Policy/Plan 1387 - 1391 MAIL, MRRD and MCN Review and update legislation concerning sub-national governance formal and informal structures, roles and responsibilities Legislation/ Policy/Plan 1387-1389 MRRD, IDLG, MAIL Improved Local Governance Formulate and implement policy imperatives requiring all development actors to carry out their activities through the established sub-national structures Legislation/ Policy/Plan 1387-1389 MRRD, IDLG, MAIL Review, revise and formulate land use and government owned land for lease Legislation/ Policy/Plan 1387-1389 MAIL Increased Agriculture Pro duction and Productivity Review, revise and formulate Natural Resources laws (wetlands, forests, range lands, arid lands ,watershed) Legislation/ Policy/Plan 1387-1391 MAIL 236 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: AGRICULTURE AND RURAL DEVELOPMENT SECTOR: AGRICULTURE AND RURAL DEVELOPMENT Expected Outcomes Policy Actions or Activities Category Timeframe Responsible Agency Review, revise and formulate Food laws and regulations (Quality and Safety, CODEX standards, quarantine) Legislation/ Policy/Plan 1387-1390 MAIL Review, revise and formulate laws and regulations on Livestock and Horticul ture Legislation/ Policy/Plan 1387-1390 MAIL Review, revise and formulate laws and regulation on Pesticides Use, plant and animal protection Legislation/ Policy/Plan 1387-1390 MAIL Review, revise and formulate laws and regulations on agricultural imports and exports Legislation/ Policy/Plan 1387-1391 MAIL Formulation of laws on concerning forests, food safety and control, strategic food reserves, agricultural imports, horticulture and improved seeds. Legislation/ Policy/Plan 1387-1390 MAIL Restoration and Sustainable Use of Rangelands and forests, conservation of bio-diversity, and encouragement to Community Based Natural Resource Man agement Other Measures / Env. Cross Cutting Issues 1387 - 1391 MAIL Special focus on gender in polices and plans and their implementation Legislation / Policy/Plan / Gen der Cross Cutting Issues 1387 - 1391 MAIL, MRRD Develop and implement policy on infrastructure investment and maintenance Legislation/ Policy/Plan 1387-1389 MRRD, MAIL Develop and implement sub-sector policies on rural roads, water, irrigation and rural energy Legislation/ Policy/Plan 1387-1389 MRRD, MAIL Devise and implement appropriate labor-intensive approach and technologies for investment and maintenance of infrastructure Legislation/ Policy/Plan 1387-1389 MRRD, MAIL Review, revise and formulate laws and regulations on Water Management and utilization Legislation/ Policy/Plan 1387-1389 MAIL, MRRD, MoE&W Establish standards including social and environmental safeguards Legislation/ Policy/Plan 1387-1389 MRRD, MAIL Improved agriculture and rural infrastructure Enhance public and private sectors capacities to effectively and efficiently manage and deliver infrastructure programs Institution Building 1387-1391 MRRD, MAIL Review current and formulate new policies, legal and regulatory for establish ing, stimulating and sustaining rural enterprises and credit Legislation/ Policy/Plan 1387-1389 MRRD, MAIL Establish rural enterprise support services network Institution Building 1387-1389 MRRD, MAIL Establish Agriculture and Rural Development Zones Institution Building 1387-1389 CARD Inter-ministerial Committee Facilitated Economic Re generation Develop national and international markets for agriculture and non-agriculture Other Measures 1387-1391 MRRD, MAIL, MoCom 237 A peendcies PILLAR: AGRICULTURE AND RURAL DEVELOPMENT SECTOR: AGRICULTURE AND RURAL DEVELOPMENT Expected Outcomes Policy Actions or Activities Category Timeframe Responsible Agency produce and products Promote regional cooperation to help generate economic growth through tech nologies, exchange of knowledge etc. Other Measures / RC Cross Cutting Issues 1387 - 1391 MAIL, MRRD, MoFA Strengthen line ministries capacities at national and sub-national levels Institution Building 1387-1389 MRRD, MAIL, MCN, IDLG Improved service delivery within the sector Establish an Executive Management Unit with presidential authority and clear mandate to implement CARD Institution Building 1387 CARD Inter-ministerial Committee Develop mechanism to ensure integration and linkage of local level planning with the national ARD investment planning Institution Building 1387-1388 MRRD, IDLG, MoEc Continue capacity development of the sub-national governance structures to enable them to play a greater role in the development process Institution Building 1387-1391 MRRD, IDLG Strengthen the sub-national governance structures through sustainable financial mechanisms Other Measures 1387-1389 MRRD, MAIL, IDLG Continue the establishment of the local governance informal and formal struc tures and village and district levels Other Measures 1387-1389 MRRD, MAIL Improved Local Governance Sensitization of functionaries of local governance on gender, environmental, counter-narcotics and anti-corruption issues Legislation / Policy/Plan / Cross Cutting Issues 1387 - 1389 MRRD Support the establishment of disaster early warning system Institution Building 1387-1389 MAIL, MRRD, IDLG Institution Building 1387-1389 MAIL, MRRD Establish and operationalise a system for mitigation, preparedness and response to natural disasters and plant/animal diseases and epidemics Institution Building 1387-1389 MAIL, MRRD Improved disaster and emer gency preparedness Special focus to gender issues in polices and plans and their implementation Legislation / Policy/Plan / Gender Cross Cutting Issues 1387 - 1388 MAIL, MRRD Design and implement programs to strengthen and diversify licit livelihood Institution Building 1387-1391 MRRD, MAIL, MCN Mainstream CN strategy in ARD programs and projects Other Measures / CN Cross Cutting Issues 1387-1391 MRRD, MAIL, MCN Interventions for promoting legal agriculture livelihood options through inputs like seeds, irrigation, fertilizers, credit and crop insurance Other Measures/ CN Cross Cutting Issues 1387 - 1391 MAIL, MCN Training for self employment and micro enterprise and development of micro credit facilities Institution Building/ CN Cross Cutting Issues 1387 - 1391 MAIL, MCN Reduced poppy cultivation through Alternative Liveli hood Development of private sector especially promotion of small and medium en terprise Other Measures/ CN Cross Cutting Issues 1387 - 1391 MAIL, MCN 238 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: SOCIAL PROTECTION Expected Outcomes Policy Action Category Time frame Responsible Agency A) SOCIAL PROTECTION Initiate and complete the public debate about establishment of the Afghanistan Welfare Fund and introduction of the Zakat-based tax Other Measures by mid-2008 MoLSAMD, MoF, MoHaj Introduce the Zakat-based tax in line with the recommendations from the pub lic debate and consultations that will take place in 2008 Legislation by mid-2009 MoF, MoHaj, GoA Approve the new National Law on Rights and Privileges of the Persons with Disability Legislation by mid-2008 National Assembly Ratifying the UN Convention for the Rights of Persons with Disabilities Legislation by mid-2009 MoLSAMD, MoFA, MoJ, National Assembly Develop and circulate the National Disability Terms Book Legislation by mid-2008 MoLSAMD Develop and circulate National Disability Referral Guide other Measures by end-2008 MoLSAMD Improve labor market regulations to eliminate employer’s abuses and to de crease informal economy Legislation by mid-2009 MoLSAMD, GoA, National Assembly Develop the policy and criteria for providing comprehensive support to the female headed chronically poor households with small children Other Measures/ Gender Cross Cutting Issues TBD MoLSAMD In cooperation with the NGOs develop the programs for reunifying the orphans with their living parent/parents. Other Measures TBD MoLSAMD Develop and approve policy and standards for establishing day care center within orphanages and by the NGOs Other Measures by end - 2009 MoLSAMD In cooperation with the NGOs develop the network of day care centers throughout the country Institution Building by end-2009 MoLSAMD Provide support to the Afghan Red Crescent Society for building the new shel ters/marastoons Institution Building continuously MoLSAMD, ARCS Develop the project and criteria for free distribution of the livestock, orchards and tools for farming Other Measures by end-2008 MoLSAMD, MAIL In cooperation with the NGOs develop the programs for reunifying the orphans with their living parent/parents. Other Measures by mid-2008 MoLSAMD Develop and approve policy and standards for establishing day care center within orphanages and by the NGOs Other Measures by mid-2009 MoLSAMD, MoJ Poverty and vulnerability reduction In cooperation with the NGOs develop the policy and standards for dealing with the children in conflict with law and with children who live with mothers in detention Other Measures by-mid 2009 MoLSAMD 239 A peendcies PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: SOCIAL PROTECTION Expected Outcomes Policy Action Category Time frame Responsible Agency In cooperation with the NGOs implement the pilot project for supporting the children that are living with mothers in detention and for children in conflict with law Other Measures by end-2009 MoLSAMD, MoJ Ensure that the most vulnerable groups will be priority for participation in the public work programs Other Measures continuously respective line ministries Implement awareness campaigns to increase the financial market literacy of the poor and issues, laws and regulations against corruption Other Measures/ AC Cross Cutting Issues continuously MoF Change the NSDP terms of references to introduce the most vulnerable catego ries as priority group for receiving the skill development trainings Other Measures Ongoing MoLSAMD Cost, reprioritize and integrate The ANDS Social Protection Strategy into the Core Budget Other Measures by end-2008 MoLSAMD, MoF Reach the agreement with the ISAF/NATO on long term direct support to civil ian victims of conflict Other Measures by mid-2008 Government, ISAF/NATO Develop the project and criteria for free distribution of the parcels with food and non-food items in winter period (winterization) Other Measures by end-2008 ANDMA, ARCS Approve poverty-targeted criteria for channeling social protection Other Measures Ongoing MoLSAMD Conclude international agreements with the neighboring and other countries to regulate the rights of the Afghanistan’s migrant workers Other Measures by end-2009 MoFA, MoLSAMD Develop the policy and criteria for supporting the civilian victims of conflict Other Measures by mid-2008 MoLSAMD, ISAF/NATO Increased employment Establish the institutional framework for accrediting service providers for skills development training and for issuing the certificates Institution Building by end-2008 MoLSAMD. MoE, GoA Develop the project for establishing community based insurance scheme Institution Building by end-2008 MoLSAMD, MoF Develop the new public work program (Greening of Afghanistan) to support re-foresting Other Measures by end-2008 MAIL Develop the Policy and criteria for supporting the victims of natural disasters Other Measures by mid-2008 Presidents’ Office, ANDMA Poverty reduction and im proved natural disaster pre paredness/response Establish, on a pilot basis, the Crop Insurance Scheme at least in two provinces Institution Building by mid 2009 MoF, MoLSAMD Poverty and vulnerability reduction and capacity strengthening Establish the Afghanistan Welfare Fund in line with recommendations from the consultations that will take place in 2008 Institution Building by mid-2009 MoLSAMD Redesign the NSP and the NRAP to ensure their presence in remote and poor est provinces Other Measures by end-2008 MRRD, MOPW, MoLSAMD Poverty and vulnerability reduction, improved em ployment Improve the communication campaigns to better inform the poor about oppor- Other Measures continuously respective line ministries 240 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: SOCIAL PROTECTION Expected Outcomes Policy Action Category Time frame Responsible Agency tunities to participate in the public work program Complete the Labor Market Study to ensure that NSDP will meet the needs for skills of the labor market Other Measures by mid-2009 MoLSAMD, NSDP Vocational trainings for widows, chronically poor and disabled women Other Measures/ Gender Cross Cutting Issues Ongoing MoWA, MoLSAMD Conduct the functional review of the MoLSAMD Other Measures by end- 2008 MoLSAMD Prepare the Plan for capacity building and restructuring of the MoLSAMD Other Measures by end-2008 MoLSAMD Develop a Proxy Means Test (PMT) based on non-income variables Other Measures by end-2008 MoLSAMD Establish the data base and computerize all HRM and project information for the beneficiaries of the social protection Other Measures/ AC Cross Cutting Issues by end-2009 MoLSAMD Conduct the comprehensive survey to collect data on number of martyr’s fami lies and individuals with war related disability, and on their socio-economic situation Other Measures by end-2009 MoLSAMD Capacity building Conduct the survey to collect data about the female headed chronically poor households with small children Other Measures/ Gender Cross Cutting Issues by end-2008 MoWA, MoLSAMD Develop the program for evening classes and skill development training for street working children Other Measures by mid-2009 MoLSAMD, MoE Adjust the National Action Plan on Disability with the ANDS Social Protection Sector Strategy Other Measures by mid-2009 MoLSAMD Conduct the survey to collect data on poor persons with disability Other Measures by mid-2009 MoLSAMD Develop the criteria and mechanisms for distributing direct cash entitlements to the poor disabled individuals with the non-war related disability Other Measures by end-2008 MoLSAMD Develop and approve the policy and standards for establishing the community based rehabilitation centers by the NGOs to support integration of disabled, drug users and other vulnerable groups Other Measures by mid-2009 MoLSAMD, MCN Include rehabilitation of disabled in the BHP in all provinces Other Measures by end-2009 MoPH Develop the policy and criteria for supporting the victims of violence to in clude the program for reintegration into families, schools and society, as well as developing the criteria for establishing the NGOs-run shelters for women “at risk” and vulnerable children Other Measures by mid-2008 MoLSAMD Improved social inclusion Develop and approve the guidance for providing the free legal advice and me diation services (for reintegration into families) to all vulnerable groups Other Measures by mid-2009 MoLSAMD, MoJ 241 A peendcies PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: SOCIAL PROTECTION Expected Outcomes Policy Action Category Time frame Responsible Agency Develop and approve the policy, program and criteria for community based rehabilitation of drug-addicts and their reintegration into society Other Measures by mid-2009 MoLSAMD in cooperation with MoPH, MCN, MoI, and NGOs In cooperation with NGOs implement the pilot project to support extremely vulnerable groups (homeless, mentally imperiled, elders without family sup port) to include options for reintegration into families Other Measures by end-2009 MoLSAMD Women's capacity building, and establishment of economic centers for better economic opportunities Other Measures/ Gender Cross Cutting Issues TBD MoWA, MoLSAMD Develop the project to support the poor Kuchi Other Measures/ Gender Cross Cutting Issues by mid-2009 MoLSAMD, MoE, MoPH Regulate rights of the Kuchi and other population to use traditional summer pastures Other Measures by-mid 2008 GoA Eliminate all existing misuses and irregularities in distributing the direct cash transfers Other Measures continuously MoLSAMD Implement the new schedule for payments of the direct cash transfers (twice a year) in order to decrease cost of collecting the payments for vulnerable mar tyr’s families and individuals with war related disability who are living in re mote areas Other Measures by mid-2009 MoLSAMD Develop the strategy for privatization of kindergartens Other Measures by mid-2008 MoLSAMD, MoF Gradually privatize kindergartens Other Measures by end-2012 MoLSAMD, MoCI Conduct the survey and collect data on civilian victims of conflict Other Measures by-mid-2009 MoLSAMD, MoI, MoD Map the NGOs activities in social protection sector Other Measures by mid-2009 MOSAMD Develop the standards for the NGOs involvement in implementation of the social protection projects and set up recognized and publish referral system Other Measures by end-2008 MoLSAMD Ensure that social protection programs of line ministries will be in line with the SAARC Social Chapter Other Measures continuously MoLSAMD Establish the qualitative baseline indicators for monitoring of the Social Protec tion Sector Strategy Other Measures by end-2008 CSO, line ministries Improved social protection system Prepare and disseminate regular progress and evaluation report on implementa tion of the Social Protection Sector Strategy Other Measures continuously ANDS,.MoLSAMD, ANDMA Decreased domestic drug demand Implement Drug Prevention Awareness Campaign through media, schools and religious leaders Other Measures continuously MoE, MCN, MoRA 242 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: SOCIAL PROTECTION Expected Outcomes Policy Action Category Time frame Responsible Agency Improved aid coordination system Develop the database of all Government and donor-funded projects in the area of social protection. Other Measures by mid-2009 MoLSAMD Reduction in harmful child labor Implement the awareness campaign against harmful child labor Other Measures continuously MoLSAMD B) PENSION REFORM Promulgate the pension reform by the Government decree Legislation by mid-2008 MoLSAMD Modernize accounting as well as internal operational procedures of the Pension Department Institution Building by end-2012 MoLSAMD Develop the new IT system and processes of the Pension Department Other Measures 2008-2012 MoLSAMD Improve collection of the pension contributions (payroll taxes) Other Measures continuously MoF Establish a central database to store and process the details on pensioners and their bank accounts Other Measures by end-2012 MoLSAMD Improved old age protection Introduce payments of pensions through banks Other Measures by end-2012 MoLSAMD Improve the capacity of the Pension Department of MoLSAMD Institution Building continuously MoLSAMD Improve record keeping and processes of the Pension Department and mini mize any corrupt practices Other Measures/ AC Cross Cutting Issues by end-2012 MoLSAMD Capacity building Conduct the capacity building and training for the staff and managers of the Pension Department Other Measures by end-2010 MoLSAMD C) DISASTER PREPAREDNESS Adjust the legislation to clearly reflect the leading role of the ANDMA in co ordinating the national efforts for disaster preparedness and response but also for implementing of key programs and projects. Legislation by end-2008 GoA, ANDMA Establish a coordination network of NGO's which are working in the field of disaster risk reduction by creating department of NGO in ANDMA structure by end-2008 ANDMA Establish academic consultation network with academy of science, faculty of Engineering and Polytechnic University for designing, prevention & mitigation projects by end-2008 ANDMA Establish Emergency Operation Centers (EOCs) at the provincial level Institution Building by end-2009 ANDMA, Governors Establish response centers and teams at the regional level Institution Building by end-2009 ANDMA Establish community emergency response system Institution Building by end-2010 ANDMA Improved disaster prepared ness /response Establish effective early warning system Institution Building by end-2009 ANDMA 243 A peendcies PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: SOCIAL PROTECTION Expected Outcomes Policy Action Category Time frame Responsible Agency Develop back-up communication system based on Codan Institution Building by end-2008 ANDMA Establish ANDMA’s offices along with the operational centers Institution Building by end-2009 ANDMA Construct 12 regional storages for aid assistance and equipment Institution Building by end-2009 ANDMA Approve regular annual plans for disaster preparedness and response Other Measures continuously GoA Complete collecting information related to risks and vulnerabilities at the na tional and sub-national level and finalizes disaster risk analysis Other Measures by end-2009 ANDMA Develop a guideline for disaster preparedness and response planning Other Measures by end-2008 ANDMA Develop Standardized Operational Procedures(SPO) for quick assessment and response, reporting, and for rapid mobilization of international assistance Other Measures by end-2008 ANDMA, line ministries Develop and operationalize the provincial disaster management plans Other Measures by end-2009 ANDMA, Governors Improve public awareness activities and raise national awareness about disaster risks and vulnerabilities Other Measures continuously ANDMA Integrate disaster risk reduction in national and sub-national policies and plans’ – responsible all line ministries Other Measures by end-2010 ANDMA & All Ministries PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: REFUGEES AND INTERNALLY DISPLACES PERSONS Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agencies Identify bottlenecks (political, security, economic, social and legal) facing re turnees (refugees and IDPs) and promote sustainable solutions for them with special focus on chronically poor women, disabled and widows. (dispute settle ment mechanisms land tenure, pasture management, rehabilitated livestock, productive infrastructure, vocational skills, shelters and etc Legislation/ Gender Cross Cutting Issues 2008 – 2013 MoRR, MoFA Civil registry law with regards to the Kuchis implemented in close cooperation with Ministry of Interior, Border and Tribal Affairs Legislation 2008 – 2013 MoRR, MoFA Tri-partite agreements are concluded between countries of asylum, Afghanistan, and UNHCR, fully reflecting the principles of voluntary, dignified and gradual return, continue to guide the conduct of the voluntary repatriation operation. Legislation 2008 – 2013 MoRR, MoFA Tripartite Commissions are convened as the key policy arena within which deci sions on the conduct of voluntary repatriation operations are taken Other Measures 2008 – 2013 MoRR, MoFA Refugees and Internally Dis placed Persons (IDPs) return voluntarily according to agreed principles and proce dures Annual return planning figures, taking into account Afghanistan’s absorption Other Measures 2008 – 2013 MoRR, MoFA 244 A fghanistan N ational D evelopm ent S trategy (A N D S ) PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: REFUGEES AND INTERNALLY DISPLACES PERSONS Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agencies capacities are discussed and agreed upon in Tri-Partite Commissions, especially with the Governments of Pakistan and Iran. Monitor border movements, interview returnees and document violations of articles of agreements, due attention to be given to counter narcotics issues Other Measures/ CN Cross Cutting Issues 2008 – 2013 MoRR, MoFA, MCN, MoI Ensure continued donor support for initial reintegration assistance in critical areas like housing, water/sanitation, and financial support Other Measures 2008 – 2013 MoRR, MoFA, MRRD Continued emphasis on social protection (e.g. establishment of referral systems, centers, networks for vulnerable groups and individuals with focus on women) Other Measures 2008 – 2013 MoRR, MoFA, MoLSAMD, MRRD, MD, UNHCR, ILO, IOM and partners Implement programs for improved employment opportunities, skill develop ment, basic literacy and numeracy, access to health care Other measures 2008-2013 MoRR, MRRD, MoUD, MoE, MoPH, MolSA Policies adjusted to make provisions for returning refugees and IDPs in national programs Legislation 2008-2009 MoRR, MoFA, MRRD, UNHCR Enhance capacity to prepare and reach out information to Afghans either in or outside of the country. Institution Building 2008 – 2013 MoRR, MoFA Computerize all HRM and project activities to strengthen Human Resource and Project Management Institution Building/ AC Cross Cutting Issues 2008-10 MoRR Strengthened public management capacity to develop policy and negotiate agreements and strengthen ant-corruption measures Institution Building/ AC Cross Cutting Issues 2008-10 Management and implementation of Land Allocation Scheme is improved and supported to increase number of sites (5-10) in key returnee provinces. Land allocation and registration monitored for anti-corrupt practices Institution Building/ AC Cross Cutting Issues 2008 – 2013 MoRR, MoFA Reforms to the structure, organization and work processes of the Ministry and provincial Departments of Refugees and Repatriation are completed. Insitution building 2008-210 MoRR, Civil Service Commis sion Capacity building and technical assistance Institution Building 2008-2013 MoRR, Civil Service Commis sion Enhance communications and interactions between Kabul and provinces Institution Building 2008-2010 MoRR, Civil Service commis sion Data collection, analysis (disaggregated by gender) and knowledge generation Institution Building/ Gender Cross Cutting Issues 2008-2010 MoRR Policy advice to provincial authorities, Institution Building 2008-2013 MoRR, MoFA, UNHCR Government’s capacity to manage and support return and reintegration prgrammes is strengthened Coordination of interventions and material assistance support. Institution Building TBD 245 A peendcies PILLAR: SOCIAL PROTECTION & REFUGEES SECTOR: REFUGEES AND INTERNALLY DISPLACES PERSONS Objectives or Outcomes Policy Actions or Activities Category Time frame Responsible Agencies Improved internal coordination mechanisms by establishing joint committee (ministries and related agencies) for policy and operational planning and devel opment on land Allocation program Other Measures TBD MoRR, MRRD, MHUD, MoLSA Data on Afghans in neighboring countries (Iran and Pakistan) is analyzed and Afghanistan’s absorption capacity is assessed Analysis to be gender and children sensitive Other Measures/ Gender Cross Cutting Issues 2008-2009 MoRR, UNHCR Budget allocations to sectors and provinces takes account of population expan sion as a result of returns Other Measures 2007-2010 MoRR, MoF National initiatives addressing returnee needs (both Male and Female) and local host communities developed and enhanced in housing, area-based and commu nity development programs with particular emphasis on employment, liveli hoods, and skill development. Other Measures By end-first half of 2009 MoRR, MoUD, MoFA, MRRD, MoE, MoPH Monitoring and evaluation mechanisms for tracking the reintegration process are established Other Measures By end of 2009 MoRR, ANDMA, MRRD, pro vincial authorities Research and analysis to support policy advocacy Other Measures By end of 2013 MoRR, MoFA Negotiations with neighboring countries led by Ministry of Foreign Affairs and Ministry of Refugees and Repatriation for more predictable and clearer legal status and renewable documentation Other Measures 2009-2013 MoFA, MoRR, MoLSA Improved terms of stay and conditions for Afghans in neighboring countries Identification of program interventions to support policy objectives Other Measures Research and analysis to support policy and public advocacy (Labor migration flows identified and quantified, cross border commuting assessed) Other Measures TBD MoRR, MolSAMD, MoFA, MoI Negotiations with neighboring countries led by Ministry of foreign Affairs and Ministry of Labor and Social Affairs (Agreements with neighboring and coun tries in the region that accept laborers) Other Measures End of 2013 MoRR, MoFA, MoLSA Strengthened public management capacity to develop policy and negotiate agreements Other Measures End of 2013 MoRR, MoFA, MoLSAMD, MRRD, MD, UNHCR, ILO, IOM and partners International conference on "Return and reintegration in Afghanistan" Other Measures 2008 MoRR, MoFA, MoLSAMD, MRRD, MD, UNHCR, ILO, IOM and partners Tripartite commissions with Pakistan and Iran meet four times a year Other Measures 2008-20013 MoRR, MoFA UNHCR Bilateral agreements on tem porary labor migration pro gress Tripartite agreement renewed with Iran on Annual basis and signed with Paki stan for three years Other Measures 2008 MoRR, UNHCR APPENDIX II Monitoring Matrix PILLAR: SECURITY SECTOR: SECURITY Expected Outcomes Indicators Baselines Targets Effectively coordinated security sector Index on progress of establishing joint coordination centers for the ANA and ANP Under Assessment, 13 Coordination centers proposed Ehanced coordination amongst security setor ministry/ departments (2013) # of recruited ANA personnel 64, 996 (Apr 2008) 80,000 (end 2009) % completion of PAR process in MoD 80% (Apr 2008) 100% (end 2009) Index on progress of equipping the ANA with technical and administrative support Under Assessment TBD Index on progress of equipping the ANA by Land and Air Force Under Assessment TBD Index on equipping the ANA training centers Under Assessment TBD ANA operationally capable of performing those missions and tasks assigned % of ANA personnel trained 77% (2008) 100% (2013) ANA expenditures are fiscally sustainable % of ANA expenditure funded from Government Revenue 21% (2008) (core budget) TBD # of recruited ANP personnel 80,426 (Apr 2008) 82,000 (end 2008) % completion of PAR process in MoI 60% (Apr 2008) 100% (end 2009) % of ANP received logistical support 85% (Apr 2008) 100% (2010) ANP operationally capable of performing those missions and tasks assigned and crime rates reduced % of ANP personnel trained 55% (Apr 2008) 100% (2010) Operational border posts able to protect national sover eignty Index on equipping the border posts Under Assessment 100% (2013) ANP and ABP expenditures are fiscally sustainable % of ANP and ABP expenditure funded from Government Revenue 8.9% (2008) (core budget) TBD Reduced level of deaths and casualties caused by UXOs, reduce the number of affected communities and increased safety precaustions # square meters cleared of UXOs 128,478,929 square meters of land Clearance of 540 million square meters before end 2010 Enhanced public trust on government ability to deliver justice and security as IAGs are disbanded and reintegrated # of districts cleared from IAGs 21 Districts complied so far 51 Districts targeted 247 A peendcies Eventual eradication of Poppy Production and crack down on drug trafficking # ha of poppy cultivated land area 193,000 ha By 2013, the area under poppy cul tivation will be reduced by half compared to 2007 levels PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTS SECTOR: GOVERNANCE Expected Outcomes Indicators Baseline Targets Empowered National As sembly Index on the progress of empowering the National As sembly. Under Assessment Empowered National Assembly to fulfill effectively its constitutionally man dated roles (2013) Reformed Public Administra tion Index on the progress of reforming Public Administra tion. Under Assessment Reformed Public Administration (2013) Trained and Capable Public Sector Workforce Index on the progress of building capacity of Public Sec tor Workforce. Under Assessment By Jaddi 1392 (end-2013), a training policy for the entire public sector work force shall be developed and implemented. Institutional arrangements shall be put in place to ensure that each member of the workforce gets trained at least once in two years in organization specific and job specific training along with the generic training. Merit Based Appointments and Performance-based Re views Index on the progress of implementing systems, mecha nisms and procedures to implement merit based ap pointments and performance-based reviews. Under Assessment By March 2011, in furtherance of the work of the Civil Service Commission, merit-based appointments, vetting procedures and performance-based re views will be undertaken for civil service positions at all levels of govern ment Corruption Reduced Index on the progress of introducing systems, mecha nisms and procedures to reduce and monitor corruption at different levels in the government and the judiciary. Under Assessment By Jaddi 1392 (end-2013), the corruption in the judiciary and the government at all levels especially in security, customs, civil administration and munici palities will be significantly reduced. Enhanced Availability of Information to Public and Enforcement Index on the progress on enhanced availability of Infor mation to Public and Enforcement. Under Assessment By Jaddi 1389 (end-2010), the legal framework required for exercise of this right provided under the constitution will be put in place, distributed to all judicial and legislative institutions, and made available to the public and, implemented. Improved Participation of Women in Governance Index on the progress of putting plans, systems and mechanisms in place for improved participation of women in governance. Under Assessment By Jaddi 1389 (end-2010) In line with Afghanistan’s MDGs, female participa tion in all Afghan governance institutions, including elected and appointed bodies and the civil service, will be strengthened by providing a specific per cent reservation of seats by enacting a law of affirmative action. Nation Prepared for Disaster Management Index on the progress of putting plans, systems and mechanisms in place at all levels for Disaster Manage ment. Under Assessment By Jaddi 1389 (end-2010), an effective system of disaster preparedness and response will be in place. PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTS SECTOR: GOVERNANCE Expected Outcomes Indicators Baseline Targets Strong and Capable Inde pendent Election Commis sion holding regular national and sub national Elections as mandated by the Constitu tion Index on the progress of creating a strong and capable Independent Election Commission holding regular na tional and sub national Elections as mandated by the Constitution. Under Assessment The Afghanistan Independent Electoral Commission will have the high integ rity, capacity and resources to undertake elections in an increasingly fiscally sustainable manner by Jaddi 1388 (end-2009), with the Government of Af ghanistan contributing to the extent possible to the cost of future elections from its own resources. Single National Identity Document Index on the progress of providing single national iden tity to all citizens in the country. Under Assessment By Jaddi 1392 (end-2013), civil registry with a single national identity docu ment will be established Census Completed and Re sults Published Index on the progress of Census operations and publish ing of results. Under Assessment Census enumeration fully completed during summer of 2008 in all districts. Publishing the full results of census in 2010 Statistical Baselines Estab lished and the Statistical Ca pacity Built Index on the progress of building statistical capacity in the country and establishing statistical baselines. Under Assessment By Jaddi 1392 (end-2013), Reliable statistical baselines will be established for all quantitative benchmarks and statistical capacity built to track progress against them. Mapping of Villages and Go zars and reviewing their boundaries Index on the progress of mapping and reviewing the boundaries of Villages and Gozars. Under Assessment By Jaddi 1388 (end-2009), Government will carry out political and adminis trative mapping of the country with villages and gozars as basic units and, the political and administrative maps will be made available at all levels for the purpose of elections, socio- economic planning and implementation of sub-national governance policy. Modern Land Administration System Established Index on the progress of establishing a modern land ad ministration system including settlement of land dis putes. Under Assessment A community based process for registration of land in all administrative units and the registration of titles will be started for all urban areas and rural areas by Jaddi 1387 (end-2008). A fair system for settlement of land disputes will be in place by Jaddi 1386 (end-2007). Sub National Governance Policy Developed Index on the progress of putting in place legal, policy, institutions and other systems and procedures for strengthening the sub-national governance. Under Assessment By end-1389 (20 March 2011), the Government will ensure formulation and implementation of sub-national governance policy and, its legal and regula tory framework. This will be done through a national dialogue on sub national governance and, with technical support of international community. Government Offices physi cally equipped to fulfill their Role Index on the progress of providing basic facilities and amenities to all government offices. Under Assessment By end-1392 (20 March 2013), all the councils and offices including munici palities will have basic facilities and amenities including adequate built up space, computers, communication facility and furniture. The key officials at national and sub national level will have adequate means of mobility to make connection with the communities they are serving 249 A peendcies PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTS SECTOR: GOVERNANCE Expected Outcomes Indicators Baseline Targets Free Flow of Information from all the District Centers Index on the progress of development of a comprehen sive MIS for free flow of information from all the District Centers Under Assessment By end-1389 (20 March 2011), all the district centers of the country will have internet facility to facilitate the flow of information between the districts, municipalities, provinces and, the centre i.e. Kabul. Human Rights Realized, Pro tected, Promoted and Ex tended Index on the progress of putting in place legal, policy, institutional and other systems in place to realize, pro tect, promote and extend human rights in the country. Under Assessment By Jaddi 1389 (end-2010), the Government's capacity to comply with and report on its human rights treaty obligations will be strengthened PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTS SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Indicators Baseline Targets Index on the progress of putting in place systems so that public can rely on effectively organized and profession ally staffed justice institutions. Under Assessment by end 2010 (1391), reforms will strengthen the professionalism, credibility and in tegrity of key institutions of the justice system (the Ministry of Justice, the Judiciary, the Attorney-General’s Office, the Ministry of the Interior and the National Director ate of Security) Public can rely on effectively organ ized and professionally staffed jus tice institutions # of oversight and disciplinary mechanism developed and implemented by AGO, MoJ and Supreme Court Under Assessment TBD Index on the progress of providing Justice institutions access to infrastructure, transportation, equipment, and supplies adequate to support effective delivery of justice services Under Assessment By the end of 2010 (1391), justice institutions will be fully functional and operational in each province of Afghanistan, and the average time to resolve contract disputes will be reduced as much as possible # of functioning and adequately resourced, judicial institutions in each province Under Assessment TBD # of functional prisons (Detention Centers, DC) 33 Provincial DC 184 District DC TBD Justice institutions have access to infrastructure, transportation, equip ment, and supplies adequate to sup port effective delivery of justice services # of Adequate detention and correction facilities for women 2 (Kabul, Herat) 18 Provinces with no facilities TBD Legal education and vocational train ing are adequate to provide justice professionals with sufficient know how to perform their task Index on the progress of improving legal education and vocational training to provide justice professionals with sufficient know-how to perform their task Under Assessment By end-2013 the Justice Institutions will Have recruited and promoted justice profes sionals on merit, based on established policies and procedures, including meeting the target of 30% of the professional staff being female PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTS SECTOR: JUSTICE AND THE RULE OF LAW Expected Outcomes Indicators Baseline Targets Statutes are clearly drafted, constitu tional and the product of effective and consultative drafting processes Index on the progress of making Statues clearly drafted, constitutional and the product of effective and consulta tive drafting processes. Under Assessment TBD Index on Progress of enacting and implementing new criminal procedure Under Assessment By 2009 (1388), the new criminal procedure code will be enacted and published, and for its implementation training with written commentary will be provided to all legal professionals, as well as community legal education for citizens Justice institutions effectively per form their functions in a harmonized and interlinked manner Index on the progress of putting in place systems so that Justice institutions effectively perform their functions in a harmonized and interlinked manner. Under Assessment By end-2013 the Justice Institutions will have mapped in detail the processes linking all justice institutions, and have streamlined them to improve information systems and business processes, with the aim of reducing delays in processing of cases, adminis trative costs and vulnerability to corruption Citizens are more aware of their rights and justice institutions are better able to enforce them. Index on the progress of making citizens more aware of their rights and justice institutions being better able to enforce them. Under Assessment By end-2013, the Justice Institutions will encourage press coverage of justice pro ceedings, public attendance at those proceedings, and general public understanding of the process at each stage of such proceedings. The justice institutions should encour age and participate in the development of outreach programs within civil society in cluding curriculum for public education at all levels Criminal and Civil justice is admin istered effectively, and in accordance with law, the Constitution, and inter national standards Index on the progress of putting in place systems so that Criminal and Civil justice is administered effectively, and in accordance with law, the Constitution, and inter national standards. Under Assessment By end-2013, the Justice Institutions will have established an easily accessible and functioning public complaints system in at least eight major provincial capitals with clear processes for handling complaints Justice institutions are transparent and accountable Index on the progress of making justice institutions transparent and accountable. Under Assessment By end-2013, the Justice Institutions will have determined their vulnerabilities to corruption and established policies and procedures to eliminate such vulnerabilities PILLAR: GOVERNANCE, RULE OF LAW AND HUMAN RIGHTS SECTOR: RELIGIOUS AFFAIRS Expected Outcomes Indicators Baselines Targets Strengthen educational religious institutions Index on progress of Scientific and cultural relations of the Sharia faculties # of equipped islamic studies departments % progress on Madrasa registration by Ministry of Hajj & Religious Affairs Index on progress of curriculum revision based on Islamic values Enhance religious awareness # of campaign programs Index on progress of Grand Religious Library 251 A peendcies # of Religious books, guidelines published Index on porgess of publishing an Islamic Encyclopedia Enhance capacity of religious scholars # of training programs for religious scholars # of trained regligious scholars Religious service delivery and infrastructures Statistics on Regligious Scholars in the country # of properly equipped Hajj and Endowment departments in each province # of Mosques # of congregational facilities for women Anti-corruption and eliminating immorality Index on progress of eliminating corruption morality programs Participation of scholars in social affairs Index on progress of coordination of scholars in social affairs Poverty reduction and self reliance of religious in stitutions % of increase in collection of Zakat and public donations Regional Cooperation Index on progress of regional cooperation in religious affairs Coordination between religious institutions Index on progress of coordination amongst religious institutions PILLAR: INFRASTRUCTURE SECTOR: ENERGY Expected Outcomes Indicator Baseline Targets An enabling environment for private sector in vestment in energy sector created Index on the progress of creating an enabling environment for private sector invest ment in energy sector. TBD Enabling Environment for Private Sector by 2009 % of households electrified in urban areas 30% 65% (2011) % of households electrified in rural areas. 10% 25% (2011) % of non-residential consumers provided electricity. 35% 90% (2011) Expanded public power grid Index on the progress of expanding public power grid. TBD TBD Increased Access to Rural Energy Services Index on the progress of increasing access to rural energy 6% A strategy for the development and use of renew-able energies will be developed by March 2008 Promotion of Private sector Index on the progress of promotion of private sector in energy sector TBD TBD Index on the progress of restructuring energy sector governance and commercialized operations 60% Energy sector governance restructuring and commercialized operations by 2010 Restructured Energy Sector Governance and Commercialized operations % of recovery of cost of supply 60% 75% of the costs will be recovered from users by March 2011 PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Indicators Baseline Targets ROAD TRANSPORT % of target 3263 Km of regional highways or roads to the neighboring countries fully upgraded and rehabilitated. 2236 km has been rehabilitated Fully upgraded and maintained ring road and roads to neighboring countries by March 2009. % of all villages connected by all-weather roads Target has achieved 65% (Out of 38,000 villages 9,954 villages have access to rural roads) 40 % of all villages to be connected by all-weather roads to the national road system by the end of 2010. Having updated transport policies/regulation and improved transport management system to enforce and implement the states law and regulations related to the transport sector. Outdated policies and regulations which need to be improved / Although that some management improvement have been in place Improved and updated transport management by 2011 % of all roads in municipalities (i.e. cities) improved to a good standard (with having bus and truck terminals in all the provincial centers). 15-20 % roads are in good condition with some improved services 70% of all roads in municipalities (i.e., cities) are im proved to a good standard by the end of 2011. % of roads in maintainable condition that receive regular maintenance out of 2236 km of rehabilitated regional highways, 860 km receives regular mainte nance Fiscally sustainable system for roads maintenance by June 2008 Index on the progress of putting a fiscally sustainable road maintenance system in place by March 2008 and its cover age 40% A fiscally sustainable road maintenance system by June 2008. Improved connectivity through out Afghanistan and to the foreign desti nations within the region. Improved sidewalks and shoulders (km) (along with im proved and connected drainage system) 15-20 % roads are in good condition with some improved services Improved sidewalks and shoulders by 2010 Lower road user costs Index on the rationalization of road user costs. 0% Lower road user fees by 75% by end 2008. Less journey time lost due to conges tion Index on the improvement of Public Transport Provision and roads in urban areas and inter-provinces. TBD Less journey time by end 2012 Improved air quality. Index on the progress of the process of enforcing the envi-ronmental law in transport sector. TBD Environmental protection from air pollution by End of 2009 CIVIL AVIATION Index on the progress of the process of completion of In ternational Civil Aviation Organization (ICAO) compli ance for Kabul and Herat Airports. 40% Kabul 0% Heart Kabul International Airport and Herat Airport are in compliance with the International Civil Aviation Or ganization’s (ICAO) and the International Air Trans port Association’s (IATA’s) requirements by March 2011. Increased domestic and international passengers and freight traffic by air. Index on the progress of the process of up gradation of Kandhar, Jalalabad and Mazar-e-Sharif Airports with run 50% (KDH) 10% (JBD) Mazar-i-Sharif, Jalalabad and Kandahar will be up graded with runway repairs, air navigation, fire and 253 A peendcies PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Indicators Baseline Targets way repairs, air navigation, fire and rescue and communi cation equipment. 0% (MZR) rescue, and communications equipment by March 2011. Index on the progress of the process of up gradation of 7 airports to facilitate domestic air transportation. 50% Qalainaw 30% Maimana 0% Faizabad 0% Chaghcharan 0% Zaranj 0% Lashkar Gah 0% Tarin Kowt Seven other domestic airports will be upgraded to fa cilitate domestic air transportation by March 2011. # of International airports constructed /rehabilitated 0 2 (End 2010) # of domestic airports constructed/rehabilitated The feasibility studies for the 10 domestic airports have been done. 10 (2013) Air travel price index comparable to international stan dards. For have Airport services cost comparable with international standards ,ICAO person nel is developing a tariff plan for various component of airport services on the basis of the Airport master Planning study report of 2004. Air transport services and costs will be increasingly competitive with international market standards and rates by March 2011. Index on the progress of Institutional reform programs and a reduction in the requirement of ISAF to use air facilities (Create a new Civil Aviation Authority (CAA), and restore control of Afghan airspace to the Civil Aviation Authority.) 5% Improved governance in civil aviation sector by end 2011 Improved governance of civil avia tion sector. Index on the progress of massive capacity building pro grams in the civil aviation sector. To enhance capacity of the Ministry, a train ing program has been finalized to the tune of 640000. ADB is funding the project.40 stu dents will be trained under the program. All the programs will be conducted in 2008. 30 Fire Fighter have been trained in Oman and another 17 other personnel will be trained in 2008. Under the Transition Plan also for key functions such as ATC, CNS and Fire Fighting on the job trainings will be provided by ICAO experts. The identifica tion & the number of the beneficiaries will be finalized by March 2008. Further 200 students was sent to FAA academy in U.S.A and 20 others will be sent by end of 2008. By end-2013, transport sector capacity will be en hanced PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Indicators Baseline Targets OVERALL TRANSPORT SECTOR Improved Governance in the Trans port Sector Index on the progress of putting institutional mechanisms in place for better governance of the Transport Sector. Inter-Ministerial Working Group estab lished. TOR under review Governance of Road Transport sector progressively improved by by 2013 Index on the progress of passing enabling legislations and enabling regulations for efficient working of the transport sector and various players therein. TBD Improved business environment for private sector by 2012 Business environment for private sector development improved to create jobs and reduce poverty. % increase in amount of taxes and duties collected through cross border trade TBD TBD Index on the progress of providing access to secured tenure and improved services and public facilities for inhabitants of informal settlements 0% The registration of titles will be started for all major urban areas and a fair system for settlement of land disputes will be in place. % of informal settlements having access to basic services 10-15 % 50 % by 2013 Access to secure tenure and im proved services and public facilities for inhabitants of informal settle ments % of informal settlements have access to secure tenure 0% 90% by 2013 Improved institutional coordination and monitoring of key urban indica tors Index on the progress of improving institutional arrange ments for coordination and monitoring of key urban indica tors. In principals all the key institutions have agreed upon on but details and actions have been to prepared Improved institutional coordination by end 2008 Index on the progress of providing improved to basic ser vices by urban households. Due to capacity limitation within munici palities; the urban services delivering are very low and aren't sufficient and efficient By March 2011, Municipal Governments will have strengthened capacity to manage urban development and to ensure that municipal services are delivered effectively, efficiently and transparently; % of investment in urban road networks 10-15 % urban roads are improved with some improved services. 70% by 2013 % of households having access to safe water supply in Kabul. 18-21 % h/h has access to safe piped water in line with MDG investment in water supply and sani tation will ensure that 50% of households (h/h) in Ka bul will have access to piped water by March 2011 % of households having access to piped water supply in other major urban areas except Kabul. 15-18% h/h has access to safe piped water 30% of households (h/h) in other major urban areas will have access to piped water”; by March 2011 % of households having access to sanitation facilities in Kabul. 5-8% h/h have access to improved sanitation 50 % by March 2011 % of households having access to sanitation facilities in other major urban areas except Kabul. 10-12% h/h have access to improved sanita tion 30% by March 2011 Increased access for urban house holds to basic services Proportion of open green spaces per developed urban area less than 5% 30% By 2013 Increased availability of affordable Index on the progress of providing increased availability of less than 5% 60% by 2013 255 A peendcies PILLAR: INFRASTRUCTURE SECTOR: TRANSPORT Expected Outcomes Indicators Baseline Targets affordable shelter. % of urban residents having access to affordable finance 0% TBD % of urban residents having access to housing subsidy The process is underway to implement mort-gage system 50% by 2013 shelter % completion of city development plans for 34 provinces 20% 90% by 2013 Strengthened institutional capacity to plan and manage urban develop ment Index on the progress of building strengthened institutional capacity to plan and manage urban development. The process is under way has been recently initiated by 2013 Sustainable water resource management strategies and plans covering drinking water supply will be developed along with improved sanitation. Municipalities will be operating under updated laws and polices and effectively and transparently delivering urban services, with better customer service system PILLAR: INFRASTRUCTURE SECTOR: WATER RESOURCES Expected Outcomes Indicator Baseline Targets Improved water sector legal and govern ance structures and institutions in place Index on the progress of putting in place improved water sector legal and governance structures and institutions in place. Partially good (improving) Improved water sector governance by 2013 Index on the progress of developing and implementing sustainable water resources management strategies and plans covering irrigation and drinking water. Strategies 70% completed Feasibilities studies for large projects are continue Sustainable water resource management strategies and plans covering irrigation and drinking water supply will be developed by end-2008, and irriga tion investments will result in at least 30% of wa ter coming from large waterworks by March, 2011. Sustainable water resources management strategies and plans covering irrigation and drinking water supply developed and im plemented. % of water coming from large waterworks. 10% TBD Index on the improvement of water resources for irrigation and drink ing water purposes. 25-30% Improved water resources for drinking and irriga tion purpose by 2013 # of Hydrometric stations installed and equipped 3 out of 177 TBD % of lands irrigated through rehabilitated and new water works 1.8 Million Ha Additional 450,000 ha (2013) % of sites where 90% of tail-enders receive enough water on time TBD TBD Water resources for irrigation and Drinking purposes improved # of sites reserved as suitable drinking water resource Based on recent surveys 20 % of the sites have been reserved By 2013 sites reserved as suitable drinking water resource PILLAR: INFRASTRUCTURE SECTOR: WATER RESOURCES Expected Outcomes Indicator Baseline Targets % of beneficiaries, by gender, whose technical knowledge and skills for managing irrigation assets have increased considerably TBD TBD % of households in other urban areas except Kabul have access to piped water 15-18% 30% by end of 2011 % of households in Kabul have access to piped water 18-21% 50% (2010) # of water points available for rural households TBD TBD PILLAR: INFRASTRUCTURE SECTOR: INFORMATION AND COMMUNICATION TECHNOLOGY Expected Outcomes Indicators Baseline Targets Index on the progress of creation of E-Afghanistan E-Government policies, strategies and pilot projects are already launched. E-Afghanistan created by 2013 # of government offices having official web presence 15 All Government Offices (2013) # of provincial government offices having official web presence 3 All Prov. Government Offices (2013) # of government offices having Chief Information Officer (CIO) 0 All Government Offices (2013) E-Afghanistan created # of government offices connected through the fiber optic 20 All Government Offices (2013) Index on the progress of putting legal enabling environment for the ICT Sector in place. At present telecom law, An independent regula tor ATRA and open telecom market is the guar antor of the enabling environment. Enabling Environment by 2013 Enabling Environment Index on the progress of building institutions for the ICT Sector. Ministry of Communications and IT and Na-tional ICT Council are the existing. ICT Sector institutions will be built (2013) ICT Literacy improved Index on the progress of establishment of ICT centers in 34 Pro-vincial capitals 15 Improved ICT Literacy, 34 provinces 2013 Index on the progress of putting in place improved infrastructure for the ICT Sector. GCN, DCN, VCN, CCN, OFC and NDC pro jects are brought, implemented at present. By end-2010, a national telecommunications network to be put in place so that more than 80% of Afghans will have access to affordable telecommunications. % of Afghans having access to affordable telecommunications 70% 80% (2010) % increase in annual revenue generated from the ICT Sector US$ 75 million More than US$ 100 million dollars per year are gener-ated in public revenues by end 2010 Improved ICT coverage and Infrastructure % of population access to mobile phones 20% Increased Access to mobile phones 257 A peendcies number of internet users 500,000 Increased Access to internet # of Post Offices connected to a well-functioning communication network and equipped 44 Increased number of post offices connected PILLAR: INFRASTRUCTURE SECTOR: MINES AND NATURAL RESOURCES Expected Outcomes Indicator Baseline Targets Strong regulatory framework in place Approval of Gas Law Approval of Mineral Regulations Approval of Hydrocarbons Regulations Minerals and Hydrocarbons law has been passed Creating enabling environment including legal one for increased investment in mining sector (2013) Increased Private Sector In vestment in mining sector Increase in net revenue of ministry of Mines In current year (1386)net revenue of ministry of mines is US$ 32 million Increase net revenue of ministry of mines after seven years to US$ 1 billion Geophysical and geological information available Survey of Minerals and Hydrocarbons Surveys conducted in this regard cover only 10% and 4% of country's total hydrocarbons and minerals respectively Survey of 5% area of country's natural resources (minerals and hydrocarbons) Increased access to Gas re sources Renovation of Shaberghan gas network and extension of Mazar-e-sharif gas pipeline and its network Currently consumers of Afghan gas is less than 1% of total population Increasing gas consumers to 5% of total popula-tion Increased access to water re sources Increased access to safe drinking water Partial study of water in Kabul river basin has been done, but the water studied do not fulfill the need of Kabul population. Recently assessment study in Kabul river basin has been started through research and Geo engineering enterprises with support of JICA and USGS Availability of under ground water with quality and quantity PILLAR: EDUCATION SECTOR: EDUCATION AND MEDIA, CULTURE AND YOUTH Expected Outcomes Indicators Baseline Targets PRIMARY AND SECONDRY EDUCATION Index on the progress of putting systems, institutions, procedures and legal framework in place for improving the quality of educa tion. Started in 1386 and will con tinued till 1389 (% TBD) EMIS is completed, NIMA, NCB are on going, Education Law's draft is completed, Law for private Schools are completed. Improved quality of education Index on the process of designing and conducting competency test for teachers including principals. Started in 1387 (% TBD) 70% of teachers pass competency test (minimum of 40% women) PILLAR: EDUCATION SECTOR: EDUCATION AND MEDIA, CULTURE AND YOUTH Expected Outcomes Indicators Baseline Targets No. of competent teachers (male and female). 54,093 male (2002) 20,508 female (2002) EMIS At least 140,000 competent teachers Increase Female teachers by 50% No. of competent principals (male and female) Under Assessment 26,000 school principals Primary Student/Teacher ratio 43 (2002) TBD Government Expenditure per student $12.1 (2002) TBD Index on the progress of designing and conducting competency test for students. Started in 1387 Competency Test for students prepared and implemented. Index on the progress of preparation and implementation of new curriculum for primary and secondary schools. 1-6 Class Book developed and 7-12 Class under developing New curriculum for primary and secondary schools pre pared and implemented. Index on the progress of establishment of separate body responsi ble for standards and accreditation of all primary and secondary schools. On progress and WB is sup porting this part Established separate body responsible for standards and accreditation of all primary and secondary schools. Adult Literacy rate 28% (2000) TBD Total enrolment level (millions) 5.9 million enrolled at schools (1386) 7.7 m children enrolled (1389) % of boys and girls enrolled. 35% and 35% respectively Enrolment Rates (Boys 75%, Girls 60%) (1389) No. of illiterates in the country (male and female) 11.2 million illiterate (1386) Separate program for non-formal education in place Literacy rates improved Primary Completion Rate (Percentage of all children that com pleted primary schooling) 32.3% (2005) TBD Percentage of children having access to schools 55% 75% of school-age children to be within reach of a school with significantly reduced gender and provincial disparity Total number of learning spaces (formal/informal) 7,027 (2002) TBD ratio of boys and girls enrolled 70% boys (2002) 30% girls (2002) 50% each No. of new school buildings constructed with basic amenities for both male and female 692 1386 At least 90% schools and buildings have male and female facilities by 1389 Equal opportunity for all Index on the progress of providing equal opportunity for all for education establishment of (1,200 new schools and 1,200 CBS)and construction of 692 new schools, recruitment of 149,000 teachers (40,000 Female) Established and constructed new schools, recruitment of teachers, especially female teachers. HIGHER EDUCATION 259 A peendcies PILLAR: EDUCATION SECTOR: EDUCATION AND MEDIA, CULTURE AND YOUTH Expected Outcomes Indicators Baseline Targets Index on the progress of putting in place policies, institutions and systems for improving quality of academic teaching and research. To be determined Improved quality of academic teaching and research by 2013 No. of faculty members benefited from such programs To be determined Capacity building of faculty members through partnership programs No. of degree or PG courses where curriculum has been revised To be determined New Curriculum for all courses in place by 1388 Improved quality of academic teaching and research No. of faculty members appointed (male and female) To be determined 3000 new faculty members to be recruited from the region by 1389 No. of students enrolled in the universities (male and female). 52200 enrolled male and fe-male (1386) 100,000 students enrolled in universities by 1389 No. of new facilities constructed at universities across the country. 7 facilities constructed Construct 41 new facilities at universities across the coun-try. No. of new dormitories constructed for males. No. of new dormitories constructed for females. 2 Female dormitories con structed Construction of 24 new dormitories (12 for women and 12 for men) Improved access to higher educa tion Index on the progress of improving the quality of higher education. VOCATIONAL EDUCATION Improved quality of vocational education Index on the progress of improving the quality of vocational edu cation. To be determined Quality of vocational Education will considerably be improved (2013) Index on the progress of improving access to vocational education. To be determined Improved access to vocational education will be available (2013) Improved access to vocational education No. of persons trained through NSDP (male and female)) To be determined The NSDP will provide training to 150,000 unemployed Afghan women and men through competitive bidding procedures SPORTS Improved sports facilities Index on the progress to provide improved sports facilities. To be determined Sport facilities will be improved in all provinces of Af-ghanistan (2013) SCIENCE ACADEMY Enhanced contribution of the Academy in Science Index on the progress to provide enhanced contribution of the Academy in Science. To be determined By 1388 make the Academy competent enough to pro mote the cause of science PILLAR: EDUCATION SECTOR: MEDIA, CULTURE AND YOUTH Expected Outcomes Indicators Baseline Targets % completion of cultural heritage inventory/registration (1385) 41000 artifacts registered Inventory of Afghan cultural artifacts prepared by 2010 # of rehabilitated historical monuments (up to 1386) 1271 archeological sites All historical monuments rehabilitated and protected by 2010 # of rehabilitated/constructed museums 4 Reconstructed TBD Afghanistan’s cultural Heritage Protected and Preserved Index on progress of taking measures to revive the Afghan cultural heritage, to stop the illegal removal TBD Measures will be taken to revive the Afghan cultural heri tage, to stop the illegal removal of cultural material and to restore damaged monuments and artifacts by end-2010 Free and independent media Index on progress of creating an environment for free and independent media Media law is drafted, needs amendments Media Law to be passed and implemented by 2008 # of youths registered as volunteer corps for welfare activi ties like rural health care campaigns etc. TBD TBD # of youth clubs registered 60 LYC (Local Youth Councils) established in 60 Villages of 6 Provinces TBD Empowerment of Youth Index on the progress of providing legal, policy, institu tional and systemic framework for empowerment of youth. 34925 both Male and female re ceived training Legal and Institutional framework for youth empowerment will be in place (2013) PILLAR: HEALTH SECTOR: HEALTH & NUTRITION Expected Outcomes Indicators Baseline Targets Number of functional public and private hospitals set up Under Assessment Functional regulatory framework for quality health services in place by 2013 No. of provinces where organized structure is in place Under Assessment Functional organization structure for quality health services in place by 2013 Index on the progress of putting in place quality health care services Under Assessment Increased quality of health care services will be avail able throughout Afghanistan by 2013 Increased quality of health care services Overall score on the Balanced Scorecard TBD TBD % of population within two hours walking distance from PHC services ii) 66% - of population with nearby access to PHCs (2006) 90% of population with access to PHC services (2010) Increased access to health care ser vices No. of health facilities, district, provincial and regional hospitals equipped with standard package of defined clini cal and diagnostic services Under Assessment Comprehensive referral system integrated with BPHS & EPHS in place by 2013 261 A peendcies % of TB cases detected and treated 68% (2006) Increase of 12% from the baseline % of Malaria cases detected and using preventive treatment To be assessed Reduction by 60% from baseline % of children under 1 year having received measles anti gen, DPT & hepatitis dosage and polio drops 77%(2006) Achieve and sustain above 90% national coverage (2013). % of children under 1 year received measles antigen. 35% (2000) Achieve above 90% coverage by 2010. Maternal mortality ratio 1600 deaths /100,000 live births (2000) Reduce by 50% between 2002 and 2013 Under 5 mortality rate in the country (%) 257 deaths/1000 live births (2000) Reduce by 50% between 2003 and 2013 Effective Reproductive and Child health system Infant mortality rate (IMR) in the country (%) 165 deaths per 1000 live births(2000) Reduce infant mortality rate by 30% by 2013 from the baseline of 2000 PILLAR: AGRICULTURE & RURAL DEVELOPMENT SECTOR: AGRICULTURE & RURAL DEVELOPMENT Expected Outcomes Indicators Baseline Targets Improved service delivery within the Agriculture & Ru ral Development sector Index on the progress of improving service delivery within the sector. To be Assessed Service Delivery will be improved within the Agriculture and Rural Development sector (2013) Index on the progress of aligning ARD Programs to promote sustainable growth and distribute wealth through CRD TBD ARD programs will be aligned to promote sustainable growth (2013) # of provinces, districts, villages covered by NFSP 10 provinces, 20 dis tricts, 200 villages (2008) 34 Provinces (2013) # household beneficiaries covered by NFSP 20,000 households (2008) To be Assessed Poverty Reduced in line with MDG targets % reduction in malnourished population 57% reduction of population malnour ished. (2008) TBD Index on the progress of strengthening local governance. TBD Local Governance will be strengthened (2013) # CDCs established 16,502 (2007) TBD # CDPs completed 16,263 (2007) TBD # DDAs Established 256 (2007) TBD Improved Local Governance # DDPs incorporated into provincial plans # (2007) TBD Increased Agriculture Produc tion and Productivity Im Index on the progress of increasing agriculture production and productiv ity. TBD Increased Agriculture Productivity (2013) PILLAR: AGRICULTURE & RURAL DEVELOPMENT SECTOR: AGRICULTURE & RURAL DEVELOPMENT Expected Outcomes Indicators Baseline Targets # of increased irrigated areas 4500 hectares irri-gated (2008) TBD # hectares with new water efficiency techniques (2008) 1,000 hectares are water efficient (2008) TBD proved agriculture and rural infrastructure # hectares with new mgt techniques 1400 hectares (2008) TBD Index on the progress of improving agriculture and rural infrastructure. TBD Improved Agriculture and Rural Infrastructure (2013) # of increased irrigated areas 4500 hectares irri-gated (2008) TBD % of villages having access to drinking water 100% (2013) # hectares with new water efficiency techniques 1,000 hectares are water efficient (2008) TBD # hectares with new management techniques 1400 hectares (2008) TBD % of rural population have access improved sanitation facilities 3% (2007) 70% (2013) Km of rural roads constructed and rehabilitated 13,500 km (2007) To be assessed # Villages connected by road to the district centers or major service cen ters. 4743 (2007) 56% of all villages (2013) % of rural population receiving income through participation in short term employment generation activities (non-agrarian) 15% (2007) TBD # of labor days generated 24.5m (2007) 110m (2013) # of villages benefiting from different sources of electricity 7665 (2007) TBD % of villages that will benefit from new/ rehabilitated small scale irriga tion schemes 36% (2007) 68% (2013) # (hectares) of New irrigated areas increase 1.5 ha (2007) TBD Improved water efficiency in existing irrigation 25% (2006) TBD Index on the progress of facilitating economic regeneration. TBD By end-2010, a policy and regulatory framework will be devel oped to support the establishment of small and medium rural en terprises, and institutional support will be established in all 34 provinces to facilitate new entrepreneurial initiatives by rural communities and organisations Facilitated Economic Regen eration # of rural households receiving services from formal financial institu tions 219,000 (2007) 950,000 (2013) 263 A peendcies PILLAR: AGRICULTURE & RURAL DEVELOPMENT SECTOR: AGRICULTURE & RURAL DEVELOPMENT Expected Outcomes Indicators Baseline Targets # of agri and non-agri-businesses established TBD TBD # of poor and vulnerable rural households supported through economic regeneration activities TBD TBD Reduced poppy cultivation through Alternative Liveli hood Index on the progress of reducing poppy cultivation through alternative livelihoods. TBD By end-2010, decrease in the absolute and relative size of the drug economy in line with the Government's Millennium Development Goal target PILLAR: SOCIAL PROTECTION SECTOR: SOCIAL PROTECTION Expected Outcomes Indicators Baseline Targets Percentage of people living on less than US$1 a day TBD By end-2011 and in line with the MDGs the proportion of people living on less than US$1 a day will decrease by 3 percent per year. Percentage of people living below the poverty line (based on Spring data) 42% (2007) By end-2012/13 the proportion of the people living below the poverty line will decline by 2 percent on annual basis (based on Spring poverty data) Percentage of people who suffer from hunger TBD By end-2010 proportion of people who suffer from hunger will decrease by 5 percent Percentage of population below the minimum level of dietary energy consumption 45% By end-2012/13 the proportion of the population below the mini mum level of dietary energy consumption will decrease by 2 per cent on annual basis Percentage of poor female headed households TBD By end-2010 number of female headed households that are chronically poor will be reduced by 20 percent and their employ ment rate will increase by 20 percent Percentage of employed females that on the head of the poor households TBD TBD Number of persons with disabilities received micro credit TBD Number of persons with disabilities received pension TBD Number of people received training TBD Poverty and Vulnerability Reduction Number Persons with Disabilities received Inclusive and Exclusive Education Services TBD 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, skill develop ment and gainful employment PILLAR: SOCIAL PROTECTION SECTOR: SOCIAL PROTECTION Expected Outcomes Indicators Baseline Targets Number of Persons with Disabilities received Physical Rehabilitation Services TBD Number of Persons with Disability received other services TBD Reduction in infant mortality Percentage of underweight children in urban and rural; areas TBD By end-2012/13 prevalence of underweight children in rural and urban areas will decrease by 2 percent on annual basis Number of disabled that have gone trough skill develop ment program TBD By end-2010 provide training for 150 000 people of which women should be 35 percent and disabled 10 percent Number of women that have gone through skill develop ment program TBD TBD Percentage of disabled in the public administration TBD By end-2012/13 the Government will employ at least 3 percent of disabled and 30 percent of women within its administration Percentage of women in the public administration TBD TBD Improved Social Inclusion Number of treated drug users TBD By end-2010 number of treated drug users will increase by 20 percent Improved old age protection Percentage of collected pension contribution of total pen-sion payments 2% By 2012/13 implement the pension reform and increase collec tion of the pension contributions Number of the people affected by the natural disaster TBD By end-2010 an effective system of disaster preparedness and response will be in place Improved disaster preparedness and response Monetary value of the destroyed assets as result of natural disaster TBD TBD PILLAR: SOCIAL PROTECTION SECTOR: REFUGEES & IDPS Expected Outcomes Indicators Baselines Targets Refugees and Internally Dis placed Persons (IDPs) return voluntarily according to agreed principles and procedures # of returnees (male, female) 3 million refugees (Pakistan 2.1 mil lion, Iran 900,000), 140,000 IDPs (estimated) Scenario One Present trend lines improve permitting 800,000 – 1 mill returns Scenario Two Current trends continue permitting 600,000-800,000 returns Scenario Three Current trends deteriorate permitting 400,000-600,000 returns Government’s capacity to manage The index on the progress of the process of No measurable indicators currently By 2010, the first phase of reform within the Ministry of Refugees and Re 265 A peendcies PILLAR: SOCIAL PROTECTION SECTOR: REFUGEES & IDPS Expected Outcomes Indicators Baselines Targets and support return and reintegra tion programs is strengthened strengthening government’s capacity to manage and assist them available, existing capabilities are varied but generally extremely limited countrywide patriation should have been completed and inter-ministerial mechanisms for reintegration assistance should have been established and operating TPA signed with Iran Feb 2007 for one year Agreement with Iran to be renewed annually during the period 2008-2013 Improved terms of stay and con ditions for Afghans in neighbor ing countries # of tri-partite agreements signed TPA signed with Pakistan in Aug 2007 for three years Agreement with Pakistan to be extended from 2009-2103 Bilateral agreements on tempo rary labor migration progress # of Bilateral Agreements Currently there are no bilateral agreements covering temporary labor migration Agreement reached with Iran on temporary labor migration by 2013, Agreement reached with Pakistan on management of cross border move ments by 2013 PILLAR: ECONOMIC GOVERNANCE & PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Expected Outcomes Indicators Baselines Targets The legal framework for the busi ness sector is developed Index on the progress of putting in place the legal, regulatory and facilitat ing framework for the business sector. 10 draft commercial laws 4 laws passed by mid-1387 Additional 6 laws passed by end-1388 Index on the progress of providing increased access of finance to private sector. TBD Number of providers increases by 25% by end-1389 % increase in private sector investment TBD TBD Private sector access to finance is increased % of GDP increase as investment levels increases TBD TBD Public-Private Partnerships Index on the progress of putting in place an enabling environment for Public-Private Partnerships. number of projects undertaken with PPP PPPs underway at the end of 1386 Number of PPPs increases by 100% by end 1390 Surplus land is used by the private sector to increase economic activity Index on the progress of creating enabling environment for use of surplus land by the private sector to increase economic activity. Area of unused government land at the end of 1386 Area of additional government land used by the private sector increases by minimum 100ha per year Index on the progress of putting in place legal, regulatory and facilitating framework for registration and regulation of private sector. TBD TBD % increase in firms formalizing their operations 80% of economic activity is in the informal sector 60% of economic activity is in the informal sector by the end of 1390 Regulations are streamlined and better enforced % increase in tax revenue from the increased number of formalized firms % of tax revenue from businesses TBD Civil society groups are able to op Index on the progress of putting necessary legal, regulatory and facilitat- TBD TBD PILLAR: ECONOMIC GOVERNANCE & PRIVATE SECTOR DEVELOPMENT SECTOR: PRIVATE SECTOR DEVELOPMENT AND TRADE Expected Outcomes Indicators Baselines Targets ing frameworks in place so that civil society groups are able to operate effectively to aid in the development process. erate effectively to aid in the devel opment process. Number of NGOs and Civil Society organizations registered TBD TBD Economic activity increases in re sponse to increased human capacity and skill sets Number of people employed in the private sector Data for formal sector employment at the end of 1386 Increase in formal sector employment of 10% per annum in absolute numbers Increase in number of courses by 50% by the end of 1389 Increased provincial economic growth Index on the progress of promoting increased provincial economic growth. TBD TBD Increased and more effective com petition Index on the progress of putting in place a legal framework to facilitate increased and more effective competition TBD TBD The Private Sector Development and Trade sector strategy is implemented Index on the progress of implementation of the Private Sector Develop ment and Trade Sector Strategies. 2008 World Bank data in Doing Business data Indicators Afghanistan improves its overall Doing Business ranking by a minimum of five places each year 60% of economic activity is in the informal sector by the end of 1390 267 A peen dcies Islamic Republic of Afghanistan Afghanistan National Development Strategy Secretariat Gul Khana Palace, (Sedarat) Kabul, Afghanistan www.ands.gov.af