Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

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public services and (vii) improved humanrights.Developing Priority Policies: Increasing aideffectiveness is a joint effort between Government,donors and agencies involved in the implementationof programs and projects. TheGovernment will implement reforms that willlead to higher transparency and absorptioncapacities. Donors will be expected to undertakemeasures to improve aid delivery in linewith the Paris Declaration.Building Greater Ownership: The Governmenthas demonstrated a genuine commitmentto lead the development process and make aidmore effective by establishing the AfghanistanCompact and signing the Paris Declaration in2006. Afghanistan’s long-term developmentvision as set out in the ANDS, identifies andarticulates national priorities in the mediumterm. All assistance should be aligned withANDS priorities as presented in the sectorstrategies. To this end, the Ministry of Financewill monitor the Government’s total aid portfolioand it will, in collaboration with line ministries,encourage donors to channel their resourcesin a manner that is consistent with theprinciples of Islam, the Government’s Aid Policyand the ANDS priorities.Improving Public Finance Management:Although the tax system does not directly relateto aid effectiveness, its further strengtheningwill increase domestic revenues and theGovernment’s potential to allocate more resourcesto fund recurrent costs of donorfundedprojects. The tax system is in the processof being strengthened. Institutional capacityfor efficient tax collection will improve taxadministration at all levels. The Government’sdomestic revenue collection has significantlyimproved to the point where today it covers asmuch as 64 percent of recurrent expenditures.Even though the Government is putting inplace increasingly effective public financialmanagement systems, it still faces major challenges.The Government seeks cooperationfrom its development partners to channel morefunds through the Core Budget, an importantstep for enhancing financial management systems.The capacity to implement the DevelopmentBudget more efficiently will improve,resulting in a higher donor contribution to theoverall Core Budget. The Government’s targetis for 75 percent of aid to be channeled throughthe core budget.Major public administration reforms being implementedor planned—such as the introductionof a merit-based civil service system, andprofessional management of government ministriesand departments, or the creation of amore formalized budget, procurement, andaudit processes and agencies—had their rootsin the desire of the Government to avoid earlierabuses of graft and political patronage.Equally important will be the Government’saccountability to the Afghan people with regardto the expenditure of aid money, whichwill be supported by the ongoing efforts of theMoF to develop the Public Expenditure FinancialAccountability (PEFA) framework.This process will be strengthened by: (i) deepeningthe linkages between the ANDS, MTFF,MTB and in the future with the MTEF; (ii) enhancingthe ‘budget literacy’ of citizens andcivil society organizations through engagementin budget processes; (iii) support to civil societyorganizations and downward accountability inthe context of decentralized service delivery;(iv) assessing the experience gained under theNational Solidarity Program and the NationalRural Access Program and disseminating theselessons; (v) regular reporting to National Assemblyand other public entities in how budgetaryresources (core and external) are beingspent; (vi) better communication with the publicusing the ANDS framework on plans, aidreceived, disbursed, outcomes and impact and(vi) supporting civil society organizations andnon-governmental organizations to ensure thatlocal governments are held accountable on howaid money is being spent to improve the people’swelfare.Curbing Corruption: The drug trade, porousborders, and informal markets have led to increasedcorruption in public institutions. TheGovernment is conscious of the fact that corruptionand aid effectiveness are inversely correlatedand is therefore committed to significantlyreducing corruption. Some mitigatingmeasures to improve anti-corruption in thearea of aid delivery will be as follows: (i) increasepublicly available information aboutdonor aid provision at the national and provinciallevels; (ii) harmonization of donor supportaround the Government’s anti-corruptionstrategy as prescribed in the ANDS; (iii) in-158Afghanistan National Development Strategy (ANDS)
crease donor support for preventive actionbased on corruption vulnerability assessmentsof specific processes and actions practiced bygovernment departments and agencies and (iv)eliminate the narcotics industry in a mannerthat provides alternative sources of income tothe farmers.The Government has also passed the PublicFinance Management, Procurement, and Auditingand Accounting Laws and will ensurethat these laws and regulations are implementedand enforced diligently. As corruptionand other rent seeking activities are one of themain causes of ineffective aid delivery, theGovernment will address this issue in an affirmativemanner to win the trust, confidenceand continued support of the donor community.Improve information on aid flows andpredictability: Incomplete reporting of OfficialDevelopment Assistance (ODA), includingreporting on the activities of Provincial ReconstructionTeams (PRTs), civil society organizationsand the international NGOs to the Governmenthas limited transparency and hinderedthe ability of the Government to monitorand manage external assistance. This informationis critical to planning and budgeting processesas well as the execution of the developmentbudget. The MoF expects that the ongoingParis Declaration Survey will improve informationabout the aid flows.Additionally, a lack of multi-year commitmentsby development partners has made it difficultfor the Government to plan for the medium tolong-term allocation of resources to nationalpriorities. Consequently, it has been difficult toobtain a complete picture of external assistanceto Afghanistan.The conduct of the Financial Reviews and theimplementation of the Harmonized ReportingFormat since October 2007 will enable the Governmentto access comprehensive and coordinatedinformation on aid flows as well as highlightthe problems and issues impeding projectimplementation, improving aid management.Reducing High Transaction Costs andParallel Funding Mechanisms: Eventhough significant progress has been made interms of aligning external resources and prioritiesof the ANDS a number of challenges stillremain. For instance, a significant proportionof external resources provided are still beingrouted directly to projects by donors. Fundschanneled through the Core Budget, by meansof pooled funding modalities, including theAfghanistan Reconstruction Trust Fund(ARTF), Law and Order Trust Fund for Afghanistan(LOTFA) and Counter NarcoticsTrust Fund (CNFT) will be fully integrated intonational planning and resource accountabilitysystems across the different layers of Government.Funds disbursed through the external budgetoften have high transaction costs, particularlythose funds disbursed to stand alone projects.As highlighted in the Afghan Economic Impactstudy, the greatest local economic impact isobtained when resources are provided directlyto the Government (local impact around 85percent) compared to funds provided to internationalcompanies (less than 20 percent) tocarry out projects. Where funds are disbursedthrough the external budget their economicimpact is maximized when spending is on locallyprocured goods and services.To manage its own resource allocation in aneffective manner in the annual budget processand ensure maximum alignment with nationalpriorities, the Government will require thatinformation on all activities financed underparallel funding mechanisms is communicatedto the MoF in a timely manner. Donors whoare implementing parallel funds are encouragedto show flexibility in aligning their projectswith sector strategies of ANDS and havingdefinite time-lines for eventually bringing suchassistance on-budget.Prior to the allocation of resources for parallelfunding, there should be consultation with theGovernment through existing consultationmechanisms (CGs, WGs, Aid Effectiveness CGand JCMB). This will help improve aid coordination,management, mobilization and effectiveness.The Government’s aid policy calls forthe reduction of parallel funding mechanismsthrough the gradual integration of thesemechanisms with the Government’s budgetand a “no pinching of staff” policy from Governmentagencies by other stakeholders.Reducing Tied Aid: A significant proportionof aid provided to Afghanistan is still tied.That is, many donors procure imported goods,Aid Effectiveness and Coordination 159
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In the name of Allah, the most Merc
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Executive SummaryI. INTRODUCTIONAfg
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Executive Summarydeveloping capacit
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2. The Afghan National Police (ANP)
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Afghanistan National Development St
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Afghanistan National Development St
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Executive SummaryWater Resources Ma
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Executive Summarystrengthen the ref
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Executive Summaryfor Capacity Devel
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Executive SummaryOver the past five
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Executive SummaryA key priority of
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Executive SummarySustaining the nas
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Islamic Republic of AfghanistanAfgh
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Map of AfghanistaniiiAfghanistan Na
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Map of Afghanistan ................
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Current situation: assessment of ai
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ACACBARADBADCAfCERTAFMISAGOAIHRCAIS
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Glossary of Afghan TermsAmu DaryaBa
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percent of the seats in the Nationa
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capacity limitations throughout the
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dress the security, governance, and
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PART IPROCESS, GOALSAND POLICYDIREC
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of the country’s 34 provinces are
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pertise, ability to manage risk and
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A Transport Sector Inter-Ministeria
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sion of service coverage and monito
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The regional cooperation initiative
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CHAPTER 2THE PARTICIPATORY PROCESS
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Figure 2.2. ANDS timeline 1385 - 13
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tation of projects. The PDPs develo
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Figure 2.3. Proportional representa
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• In the North East and Central H
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season being covered. To overcome t
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Consumption DisparityConsumption in
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correlated with higher involvement
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• Improving donor coordination an
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sickness or loss of a working famil
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CHAPTER 4MACROECONOMIC FRAMEWORKHig
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age points - from 42 percent of the
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Figure 4.4. Size of foreign assista
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ooooIncrease interdiction efforts a
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Consistent with the growth strategy
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policy, it will remain vigilant aga
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In the short term, the Government w
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groups and neutralizing armed eleme
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threats are deterred, contained or
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Significant steps have been taken s
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Table 5.1. Integration of the Cross
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Current Situation in the SectorAfgh
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Justice system between government a
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Table 6.2. Key Objectives of the Na
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Current Situation in the SectorAchi
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Table 6.1. Cross cutting issues in
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CHAPTER 7ECONOMIC AND SOCIAL DEVELO
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commitments to increase the goods a
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investment opportunities cannot be
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Despite progress and efforts to dat
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tor regulator, which will adopt a t
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percent of households in Kabul and
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icy priorities and decisions pertai
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at the same time rehabilitating and
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Further, the unstable security situ
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ilitation that will provide all wea
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• Increased Agricultural Producti
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the poverty reduction goals. Carefu
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separate policies - one for basic t
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tions designed to promote Governmen
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• Urban Development: By the end o
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financing or co-production with use
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• Strengthened municipal capacity
Page 165 and 166: This Sector Strategy incorporates f
Page 167 and 168: high baseline level of 165 infant d
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Page 175 and 176: the primary level. In rural areas,
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Page 183 and 184: • By end-2012/13 the Government w
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Page 187 and 188: policy making. However, lack of the
Page 189 and 190: countries through policy negotiatio
Page 191 and 192: Provide housing, facilities and soc
Page 193 and 194: Table 13.0.1. Cross Cutting Issues
Page 195 and 196: SectorAnti-CorruptionGendering fina
Page 197 and 198: SectorAnti-CorruptionGenderCounter-
Page 199 and 200: SectorSocialProtectionAnti‐Corrup
Page 202 and 203: CHAPTER 8CROSS-CUTTING ISSUESThe AN
Page 204 and 205: COUNTER NARCOTICSBackground and con
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Page 208 and 209: activities on gender. The Governmen
Page 210 and 211: Resources and Environment. The orga
Page 212: PART IIIAID EFFECTIVENESSANDCOORDIN
Page 215: children have enrolled in primary a
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Page 224 and 225: CHAPTER 10IMPLEMENTATION FRAMEWORKT
Page 226 and 227: lation and execution capacities to
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Page 230 and 231: ROLE OF THE MTFFThe three year Medi
Page 232 and 233: Consultative Groups (CGs) will cont
Page 235 and 236: CHAPTER 11MONITORING FRAMEWORKThe A
Page 237 and 238: (for ISAF), Afghanistan Information
Page 239 and 240: Figure 11.2. ANDS Poverty Monitorin
Page 241 and 242: Table 13.1. Monitoring and Evaluati
Page 243 and 244: ANDS Monitoring and Evaluation Indi
Page 245 and 246: CHAPTER 12CONCLUSIONWhile significa
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Page 252 and 253: PILLAR : SECURITYSECTOR : SECURITYE
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Page 258 and 259: PILLAR : GOOD GOVERNANCESECTOR : JU
Page 264 and 265: PILLAR : ECONOMIC GOVERNANCE AND PR
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PILLAR : ECONOMIC GOVERNANCE AND PR
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PILLAR : ECONOMIC GOVERNANCE AND PR
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PILLAR : INFRASTRUCTURESECTOR : ENE
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PILLAR : INFRASTRUCTURESECTOR : ENE
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PILLAR : INFRASTRUCTURESECTOR : TRA
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PILLAR : INFRASTRUCTURESECTOR : URB
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PILLAR : INFRASTRUCTURESECTOR : MIN
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PILLAR : INFRASTRUCTURESECTOR : WAT
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PILLAR : INFRASTRUCTURESECTOR : INF
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PILLAR : EDUCATION AND CULTURESECTO
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PILLAR : AGRICULTURE AND RURAL DEVE
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PILLAR: SOCIAL PROTECTION & REFUGEE
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APPENDIX IIMonitoring MatrixPILLAR:
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PILLAR: GOVERNANCE, RULE OF LAW AND
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PILLAR: GOVERNANCE, RULE OF LAW AND
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PILLAR: INFRASTRUCTURESECTOR: TRANS
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PILLAR: INFRASTRUCTURESECTOR: TRANS
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vincial capitalsImproved ICT covera
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PILLAR: EDUCATIONSECTOR: EDUCATION
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services able throughout Afghanista
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PILLAR: AGRICULTURE & RURAL DEVELOP
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PILLAR: SOCIAL PROTECTIONSECTOR: RE
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G:Islamic Republic of AfghanistanAf
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