Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

CHAPTER 9AID EFFECTIVENESS AND COORDINATIONThe Government will continue to maintain theprinciples of the Paris Declaration as the cornerstoneof the ANDS. Since 2001, Afghanistanhas received more than $15 billion in OfficialDevelopment Assistance (ODA), not includingoff-budget security spending which is not formallyreported as part of the OECD DAC aidreporting system. Current estimates for totalassistance, ODA and security-related expenditures,are $40 to $50 billion. This chapter laysout the Government’s approach to increasedeffectiveness and efficiency as a vital element inthe successful implementation of the AfghanistanCompact and ANDS. Moreover, and inspite of considerable gains in recent years, theGovernment remains concerned about the urgentneed to strengthen the aid deliveryframework (management, coordination, mobilization,and effectiveness) to improve results,particularly at the sub-national level. The Governmentis aware that donor funds are limited.The main principle of the Government’s aideffectiveness policy is to ensure that donors’funds will be spent in the most productive wayand in line with the ANDS priorities.The other core principles relevant to this strategyinclude: Afghanistazation (ownership);alignment; coordination and harmonization;managing for results; and mutual accountability.PARIS DECLARATION ANDAFGHANISTAN COMPACTAfghanistan and the international communityagreed on the Afghanistan Compact andsigned the Paris Declaration on Aid Effectivenessin 2006 to improve the delivery and impactof external assistance. The Government’said strategy is in line with the major principlesof the Paris Declaration whereby (i) partnercountries own and exercise leadership overtheir development policies (ii) donors aligntheir overall support on partner countries' nationaldevelopment strategies (iii) donor actionsare more harmonized, transparent andcollectively effective (iv) resource managementand decision-making are more results-oriented;and (v) donors and partners are accountable fordevelopment results. In addition to this theGovernment’s aid effectiveness policies are alsoin line with the Afghanistan Compact, MDGsand ANDS poverty reduction targets.The effectiveness of aid can be measuredagainst progress towards the attainment ofMDG, Compact and ANDS poverty reductionand development targets. Much has beenachieved over the course of the past six years,but a great deal more needs to be done. Afghanistan’scurrent heavy reliance on aid is areflection of the extent of the devastation followingyears of turmoil.CURRENT SITUATION:ASSESSMENT OF AIDEFFECTIVENESSThe effectiveness of aid can be measuredagainst attainment of MDG, Compact andANDS poverty reduction targets. While muchhas undoubtedly been achieved over the courseof the past six years, lack of services, high povertyincidence and a lack of security in someparts of the country continue to underminereconstruction and development efforts. Afghanistan’scurrent reliance on aid can be attributedto the fact that most of Afghanistan’sinstitutions, infrastructure and human capacitywere destroyed or depleted during the threedecade-longwar. Despite this and since 2001there has been noticeable progress in improvingthe peoples’ lives: the average per capitaincome almost double from 2001 to 2007 fromUS$147 to US$289, Afghanistan averted majorhumanitarian catastrophe in 2001; 6.0 million156Afghanistan National Development Strategy (ANDS)