Afghanistans international partners, among them seventy donor governments, gather in London on Tuesday and Wednesday to renew their support for the strategic but destitute Central Asian country, reports the World Bank press review Friday
The January 31-February 1 conference will push the process to a new level, maintaining pressure on donors while reassuring Afghanistan that its “special relationship with the international community will remain strong,” according to UN Secretary General Kofi Annan.
The conference will see the Afghan government and its donors – who fund more than 90 percent of the countrys budget – sign a five-year development plan called the Afghanistan Compact.
In the compact, the government and its donors will pledge to work together to build a “prosperous and stable” Afghanistan by tackling an increasingly deadly insurgency, building the capacity of the government and human rights, and rooting out poverty.
The document outlines certain ambitious targets for the next five years, such as building the army to number up to 70.000 soldiers, linking 40 percent of villages with roads, and getting electricity to 65 percent of urban households and 25 percent of rural ones.
A key theme is Afghanistans battle with opium cultivation, which exploded since the removal of the Taliban to make up 87 percent of the worlds total.
The countrys development strategy, from which the compact is drawn, should allow reconstruction work “to go ahead in a manner that is more efficient and transparent,” said Jean Mazurelle, country director for the World Bank. – Even if we do not meet all our objectives, this will create dynamism, he said.
This year donors are expected to commit 4,5 billion US dollar in aid to Afghanistan.
About two-thirds of this will come from the United States and the rest from the World Bank (300 million dollar), the European Community and Britain (200 million each) and Japan (between 150 and 200 million). Germany, India and Canada are expected to each contribute 100 million dollar each, followed by other countries, notably from Europe.
Afghanistans economy is growing, despite the insurgency in the south and east. The IMF said last month Afghanistans economy was set to grow 14 percent in 2005-06, although that was likely to slow to 10 percent by year-end.
Good weather boosted agriculture last year. Construction also remains buoyant while inflationary pressures have eased, the IMF said.
The Kabul government meanwhile says it is aiming for 10 percent growth annually over the next five years and has drawn up a plan – known as the Interim National Development Strategy – that sets out a range of development targets.
A major problem is public revenue. Afghanistan has one of the lowest ratios of gross domestic product to domestic revenue earned, about 4,5 percent, Haq said.
The UN is recommending a two-pronged development strategy – investment in infrastructure to take advantage of the countrys position at the cross-roads of Asia and the Middle East – and broad-based rural development.
Kilde: www.worldbank.org