Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

larger and more efficient private sector. TheAfghan ‘ownership’ of the strategy requiresthat the Government seeks donors close cooperationin capacity building and know-howtransfer, so that a system can evolve that allowsthe best parts of the functional traditional governancesystem to co-exist with a universalsystem that recognizes and supports principlesof social diversity, respect for human rightsand the rule of law.The successful implementation of the ANDSstrategies for social and economic developmentis expected to contribute substantially to thelong term transformation of Afghanistan. Atthe center of these strategies is the creation ofconditions for accelerated private sector development.The Afghan private sector is nowquite weak after years of isolation and an almosttotal lack of investment. The limited foreigninvestment that has taken place has beenlargely in the telecommunications industry.The Government is taking steps to establish anenabling environment, based on sound marketorientedpolicies and an adherence to the ruleof law. There is great potential to attract privateinvestment in the critical areas of infrastructureand natural resource development –including power generation, commercial agricultureand agro-based industry, developmentof water resources, and mining. To realize thisenormous potential, the Government is developingthe legal and regulatory structures requiredto enable private investment to operateprofitably.Given the devastated condition of much of thecountry’s ‘hard’ and ‘soft’ infrastructures, hugepublic investments, particularly in agriculture,energy and water resources development, andtransportation infrastructures will be necessaryto create conditions in which the private sectorcan be competitive and successful. With donorassistance, considerable investment in essentialinfrastructure is currently being undertaken,particularly in roads, power, commercial agriculture,healthcare, and education and vocationalskills. The Government intends to undertakepublic investment in infrastructure inways that complement private investment inthese areas or using public-private partnershiparrangements whenever feasible.It will take many years for a large competitiveprivate sector to emerge in Afghanistan. Animmediate goal of the ANDS is to put thepieces in place for this process to realizequickly and effectively. It is expected that infive years substantial progress will at least bemade towards providing reliable access to electricityand water; the ability to efficientlytransport goods throughout the country and tomarkets in neighboring countries; the implementationof major investments in commercialagriculture and minerals development to beunderway; and for all Afghan businesses tooperate formally with reliable legal protections.The central objective of the ANDS is the reductionin poverty. Afghanistan is afflicted withextreme poverty for a large part of its population.As much as 42 percent of the populationlives below the poverty line, while a significantnumber of people live precariously, whereeven relatively small increases in the cost ofliving will have the potential to greatly increasethe numbers living in absolute poverty. Andtoday, like much of the rest of the world, theAfghan people are facing substantial increasesin the prices for food and fuel, which are havinga disproportionate impact on the poor. TheGovernment puts heavy emphasis on increasingemployment as the most effective meansfor reducing poverty. Unemployment and under-employmentare high – the unemploymentrate is estimated to be near 40 percent. It isrecognized that a high proportion of thegrowth in employment must come through thegrowth of a robust private sector.The Government and people of Afghanistanremain grateful to the international communityfor their considerable and timely assistance inovercoming the enormous security and developmentchallenges. The ANDS addresses thequestions of the amounts and distribution ofaid that will be required in the coming fiveyears and the most effective modes of delivery.The Government expects that donors will aligntheir support to reflect the priorities establishedin the ANDS. The successful implementationof the ANDS under the Integrated Approachwill require greater coordination and increasedresponsiveness on the part of the Governmentand donors. Achieving alignment between thecountry’s priorities and aid programs, and effectivelyadjusting priorities and programs asconditions change require a continued strongpartnership between Afghanistan and the internationalcommunity embodied in the JCMB.Monitoring Framework 189