Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

• Improving donor coordination and aideffectiveness:donor support as well as improveddonor coordination together withthe elimination of duplication in deliveringassistance to the poor will be essential tothe success of the ANDS poverty reductionstrategy.• Strengthening the capacity for data collectionand poverty analysis: institutional capacityfor data collection and povertyanalysis will need to improve in order tobetter inform policies for poverty reduction.The Government will actively mainstreamthe poverty focus throughout monitoringand data collection mechanisms.• Building partnership between the Governmentand NGOs: the role of NGOs indelivering services to the Afghan poor isrecognized. Strengthening the Government’spolicy making capacity needs to becombined with a strengthening of the partnershipwith NGOs in the area of servicedelivery.Implementation, monitoring and institutionalstrengtheningImplementation and monitoring of the ANDSpoverty reduction policies will be mainstreamedthrough the sector strategies. However,the evaluation of the overall ANDS sectorpolicies for poverty reduction will be evaluatedseparately to inform policy makers about theireffectiveness. The NRVA will remain the maintool for data collection on matters of poverty.However, the introduction of the householdbudget survey and strengthening of the CPIand national income data will also contribute tothis understanding. The forthcoming CensusSurvey will play an important role in enhancingthe understanding of poverty. The capacityof the CSO’s for data collection of key povertyand development indicators will need to bestrengthened. Moreover, the Government willcontinue to improve its own capacity to undertakepoverty analysis within the CSO and otherGovernment agencies.HIGH PRIORITY SECTORPOLICIES FOR POVERTYREDUCTIONSecurity, maintaining strong growthand macroeconomic stabilityMaintaining steady growth rates of between 7and 9 percent of the GDP (in real terms)through the promotion of the private sector isexpected to lead to a reduction in the nationalheadcount poverty rate of around 2 percent onan annual basis. Equitable growth distributionis the precondition for broad based povertyreduction. This will require higher (budget)expenditure in the critical sectors of health,education and social protection and higher levelsof public spending in the poorest provincesand remote areas where poverty levels arehigh.Maintaining macroeconomic stability includingprudent fiscal policies is critical to growth as ismaintaining price stability and single-digit inflationrates. Improving the security environmentwould significantly contribute to povertyreduction leading to increased economic activityand the preservation of human capital andhousehold assets. Moreover, it would decreaseinternal displacement and reduce pressure onimpoverished dwellers due to migrating impoverishedrural families to the cities.Generating employment and labormarket policiesGiven widespread low productivity employmentand the large number of jobless, employmentgeneration will be one of the mostimportant policies for poverty reduction. Animproved security and business environmentwill support stronger private sector growth,which will gradually become the main sourceof employment and the main instrument ofpoverty reduction. This requires expandingthe mining and oil and gas sector. The Government,supported by the donors, will increasepublic work activities and their presencein the poorest provinces. The National SolidarityProgram (NSP) will continue to play an importantrole in generating jobs and income forthe rural poor. Skills development programswill expand to help the unemployed obtain indemand qualifications. Moreover, public ad-34Afghanistan National Development Strategy (ANDS)