Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

Increasing the volume and concessionalityof donor assistanceSignificant investments are required to achievethe MDGs and benchmarks, leading to the effectiveimplementation of the ANDS. Theamount of money pledged per head for Afghanistan’sreconstruction is still low in comparisonto pledges made previously for otherpost-conflict countries such as Bosnia and Herzegovina.Thus there is a need for more appropriatelevels of aid reflecting the needs ofAfghanistan.Even though Afghanistan received debt reliefunder the Paris Club initiative, the challengewill be ensuring that Afghanistan’s externaldebt will be maintained at sustainable levels byreaching the completion point for the HeavilyIndebted Poor Countries (HIPC). Despite thisthe majority of all future donor aid should bedelivered in the form of grants with very limitedamount of lending which should continueto be under favorable concessional terms.In order to increase investment, while maintainingdebt at sustainable levels, the Governmentneeds to mobilize significant additionalresources. At the same time, it is also importantto address the Government’s absorptivecapacity constraints through well coordinatedand executed TA/Capacity Building programs.If these constraints are not simultaneously addressed,it will be futile to seek increases in thelevel of development assistance, even thoughthe development needs of Afghanistan remainslarge. In parallel with this the Government willimplement reforms that will lead to higher mobilizationof domestic revenues in order to ensurefiscal sustainability in the long run anddecrease aid dependence.Improving the management of thetechnical assistance (TA)Afghanistan is a large recipient of technicalassistance. Over the ANDS period, the Governmentwill ensure that technical assistancewill be demand-driven and aimed at buildingGovernment capacity. In addition, it will ensurethat it is delivered in a coordinated manner.All technical assistance channeled outsidethe Core Budget should have capacity buildingcomponents and require Afghan counterparts.Technical Assistance also must focus on developingsystems and procedures the local staffcan utilize to perform their daily duties. Furthermore,each TA should have an exit strategy.All terms of reference for TA must recognizethis as the ultimate objective of such assistance.The Government will develop a policyfor dealing with the TA to ensure higher coordinationand delivery of assistance in line withthe Government priorities and improved effectiveness.The selection process needs to favorforeign advisers that have proven record incapacity building. Finally, international advisersshould always encourage local ownershipand despite the weak capacity, should avoidbeing involved in decision making processes.Improved communication with thegeneral publicThe perception of aid effectiveness has beenhampered because of a failure to meet the public’sexpectations and meet the high demandfor resources. The Government will improvecommunication in order to better manage expectationsof the public and provide transparentinformation about aid delivery.Ensuring proper coverage of maintenancecostsA number of development projects already sufferfrom lack of planning in terms of maintenancecost. This has already become a highrisk for project sustainability and aid effectiveness.Both the Government and donors willimprove planning to ensure that requiredmaintenance cost funding will be included inproject implementation.IMPLEMENTATION ANDMONITORINGThe MoF is the leading government institutionfor aid effectiveness issues. The Aid CoordinationUnit (ACU), within the Budget Department,is responsible for most issues surroundingthe delivery and monitoring of externalassistance. The Government’s aid policies layout preferred aid modalities on the delivery ofdevelopment assistance, how it views the roleof the other stakeholders such as the nongovernmentalorganizations (NGOs) and theprovincial reconstruction teams (PRTs) in theaid delivery process, its external debt policyAid Effectiveness and Coordination 161