## _cr06195

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---

### PREFACE
- Purpose:
  - Summary Report of the Interim Afghanistan National Development Strategy (I-ANDS); part of a three-Volume I-ANDS:
    - Volume I: policy objectives, context, Government strategies and implementation steps.
    - Volume II: summary of proposed and ongoing sectoral programs and annual indicators (basis for consultations toward full ANDS).
    - Volume III: collation of strategic plans from government line ministries and commissions.
- Consultation and development:
  - Product of twelve-months of intensive consultations across Government and with ulama, private sector, civil society, NGOs, UN, donors, international community, senior Afghan policy makers, and ministries.
  - Process began early 1384 (2005) with MDG discussions; Oversight Committee met almost every week through 1384 (2005/6).
  - Sector consultation drafts prepared, translated, discussed and revised based on government and donor feedback; External Advisory Group of donors provided informal feedback.
- Leadership and oversight:
  - Presidential Oversight Committee chaired by Professor Ishaq Naderi; members included named senior advisors and ministers; Adib Farhadi led the working group.
  - Consultations and Compact negotiations facilitated by the United Nations.
- Linkage to Afghanistan Compact:
  - Compact benchmarks scrutinized by Government and donors; represent consensus policy priorities for I-ANDS.
- Objectives for Summary Report and next steps:
  - Living document to stimulate policy debate; to be reviewed and improved during development of full ANDS; intended as a consensus-building tool.

### PART ONE: VISION
- High-level vision:
  - Consolidate peace and stability through just, democratic processes and institutions; reduce poverty and achieve prosperity through broad based and equitable economic growth.
- Fifteen-year ambitions (MDGs by 1400 (2020)):
  - All children complete primary education.
  - Cut by more than half under-five mortality and maternal mortality.
  - Halt spread of tuberculosis, HIV/AIDs, malaria and ensure environmentally sustainable development.
  - Women to enjoy greater equity in education, political participation and justice.
- Three mutually reinforcing pillars ("Circle of Justice"):
  - Security: well trained, affordable, representative professional army and police; state monopoly on force.
  - Governance: stable Islamic constitutional democracy with checks and balances; government as policy maker, regulator and enabler.
  - Economy: liberal market economy without narcotics/other criminal activity; private sector-led growth, generate public revenues, reduce dependence on international aid.
- Priority investment areas:
  - Electricity, roads, irrigation; institutional and human capacity building; enabling private sector and protecting rights of the poor.
  - Targeted growth: rural development, management of state assets, mining and extractive industries, transit.
- Planning and review cadence:
  - Annual review of progress towards MDGs and I-ANDS benchmarks with adjustments in five-year fiscal framework and annual budget.

### PART TWO: RECENT HISTORY, ACHIEVEMENTS, CONTEXT
- Historical damage and recovery:
  - Conflict from Sawr 1357 (April 1978) until 14 Qaws 1380 (5 December 2001) killed over a million, orphaned/maimed/disabled over a million, and drove a third of the population into exile as refugees.
  - Interim Administration inaugurated 1 Jaddi 1380 (22 December, 2001); Presidential election 27 Mizan 1383 (19 October 2004); lower house and provincial councils elections 28 Sunbula 1384 (19 September 2005).
- Security sector progress:
  - Demobilized and disarmed about 62,000 combatants integrated into Ministry of Defense; DIAG launched to disarm and reintegrate about 100,000 former combatants from about 1,800 illegal armed groups.
  - ISAF (NATO) and OEF provided security assistance; PRTs assist in SSR.
- Legal and institutional reforms (selected laws and dates):
  - Banking Law of Afghanistan, 1383 (2004).
  - Private Investment Law, 1382 (2003).
  - Customs Code, 1384 (2005).
  - Public Finance and Expenditure Management Law, Revenue Law, Income Tax Law, Civil Service Law, Law on Organization and Jurisdiction of Courts, Juvenile Justice Code, Anti Narcotics Drugs Law, Law on Campaign against Money Laundering, Law on Campaign against Bribery and Corruption (various in 1383–1384).
- Macroeconomic and social progress to end-1384 (2005/6):
  - Real licit economy projected to have grown by an estimated 85% since start of Bonn Process.
  - Inflation fluctuated at slightly more that 10% per year.
  - Domestic revenue increased from 3.2% of GDP to 5.4% of GDP by 1384 (2005/6).
  - Licit trade deficit: 45% of non-drug GDP in 1383 (2004/5).
  - Counter-narcotics program reduced opium poppy cultivated area by 21% in 1383 (2004/5).
- Social services and infrastructure:
  - School enrollments more than quadrupled to over six million children, one-third girls.
  - Basic Package of Health Services expanded coverage.
  - Road repairs decreased travel times; ring road and other reconstructions underway.
  - Block grants to a third of villages via Community Development Councils (CDCs).
- Donor pledges (selected):
  - Tokyo conference 2 Dalwa 1380 (22 January 2002): US$5.2 billion pledged.
  - Berlin conference 11-12 Hamal 1383 (31 March-1 April 2004): US$8.2 billion over three years pledged.

### PART TWO: CURRENT CHALLENGES AND CONSTRAINTS — key statistics and constraints
- Security:
  - More than 1,800 illegal armed groups remain.
  - Security sector cost 17% of GDP in 1383 (2004/5).
- Governance and public finance:
  - Afghanistan mobilizes less public resources as percentage of GDP than any other government for which data are available.
  - Less than 25% of aid is channeled through Government channels.
- Economic and social indicators (preserved exactly):
  - Thirty-eight percent of rural households are short of food at least part of the year.
  - Literacy among Afghans aged 15-24: 34%; female literacy in this group: 18%.
  - Half of all school-age children do not attend school.
  - Life expectancy: forty-four and a half years.
  - Only 24% of water sources are safe for drinking.
  - Fewer than 1% of households have safe or sanitary toilet facilities.
  - Malaria is prevalent in 60% of the country.
  - Only 6% of the population has access to public electricity power grids.
- Illicit economy:
  - UNODC estimates value of opiates produced in 1383-84 (2004-5) was equivalent to 47% of the licit GDP.
  - Nearly four-fifths of the income went to traffickers, not farmers.
  - Over two million people (in a population of about 25 million) rely directly on the opium economy.
  - Cultivation covered 2.3% of Afghanistan's arable land (up to 10% of land in opium growing villages) in 1383 (2004/5) and provided regular employment for 8.7% of the population as a whole.
  - At approximately US$ 2.8 billion, total value of opiates produced in 1383 (2004/5) equaled an estimated 47% of Afghanistan's non-drug GDP; this contrasts with the Government's (core) budget of US$ 1.9 billion.

### PART THREE: DEVELOPMENT STRATEGY — OVERVIEW
- Three Pillars:
  - (1) Security; (2) Governance, Rule of Law, and Human Rights; (3) Economic and Social Development.
- Five crosscutting themes: gender, counter-narcotics, regional cooperation, anti-corruption, environmental protection.
- Strategic goal (economy):
  - Achieve pro-poor private sector-led equitable growth while progressively eliminating the criminal economy.
  - Required sustained real growth rate: 9% per year of licit GDP to provide tangible improvement while compensating for contraction caused by elimination of narcotics sector.

### SECURITY PRIORITIES — five-year benchmarks and programs
- Overall objective through Jaddi 1389 (end-2010): promote security and stability in all regions with support/coordination of ISAF, OEF and PRTs.
- Afghan National Army (ANA):
  - By Jaddi 1389 (end-2010): establish a nationally respected, professional, ethnically balanced ANA; support expansion towards a ceiling of 70,000 personnel.
- Afghan National Police (ANP) and Afghan Border Police (ABP):
  - By Jaddi 1389 (end-2010): fully constituted, professional, functional and ethnically balanced ANP and ABP with a combined force of up to 62,000.
- Disarmament:
  - All illegal armed groups to be disbanded by Jaddi 1386 (end-2007) in all provinces.
- Counter-narcotics and law enforcement:
  - By Jaddi 1389 (end-2010): strengthen central and provincial law enforcement resulting in:
    - a substantial annual increase in the amount of drugs seized or destroyed;
    - processing facilities dismantled;
    - effective measures, including targeted eradication as appropriate, contributing to elimination of poppy cultivation.
- Program highlights:
  - PROGRAM 1: NATIONAL DEFENSE (ANA).
  - PROGRAM 2: INTERNAL SECURITY AND LAW ENFORCEMENT (MoI, ANP).
  - PROGRAM 3: DISBANDMENT OF ILLEGAL ARMED GROUPS (DIAG).
  - PROGRAM 4: DE-MINING — reduce contaminated land area by 70% by Jaddi 1389 (end-2010); locate and destroy all stockpiled anti-personnel mines by Jaddi 1386 (end-2007); destroy unsafe/unserviceable/surplus ammunition by Jaddi 1389 (end-2010).

### COUNTER-NARCOTICS STRATEGY — objectives and key activities
- Strategic focus:
  - interdiction and law enforcement against traffickers and processors;
  - investing in licit livelihoods for those who depend economically on narcotics;
  - eradication used where licit livelihoods are available.
- Eight strategic activities:
  1. building strong institutions;
  2. enhancing law enforcement and interdiction;
  3. developing sustainable alternative livelihoods;
  4. strengthening criminal justice;
  5. reducing demand and increasing treatment;
  6. continuing eradication efforts;
  7. increasing public awareness;
  8. promoting international and regional cooperation.
- Quantitative estimate preserved:
  - The business of narcotics generated products with a market value at the Afghan border of US$ 2.8 billion domestically in 2004-05.

### GOVERNANCE, RULE OF LAW, HUMAN RIGHTS — selected five-year benchmarks
- Reduce land area contaminated by mines and unexploded ordnance by 70% by Jaddi 1389 (end-2010).
- All stockpiled anti-personnel mines located and destroyed by Jaddi 1386 (end-2007).
- Restructure and rationalize government machinery by Jaddi 1389 (end-2010); establish national appointments mechanism within 6 months, applied within 12 months, fully implemented within 24 months.
- Complete census enumeration by Jaddi 1387 (end-2008) and publish results.
- Institute merit-based appointments, vetting and performance reviews; annual reviews for senior staff starting by Jaddi 1386 (end-2007).
- Ratify the UN Convention Against Corruption by Jaddi 1385 (end-2006); adapt national legislation by Jaddi 1386 (end-2007); establish monitoring mechanism by Jaddi 1387 (end-2008).
- Fully implement National Action Plan for Women in Afghanistan and strengthen female participation by Jaddi 1389 (end-2010).
- Ensure functioning institutions of justice fully operational in each province by Jaddi 1389 (end-2010).

### HUMAN RIGHTS COMMITMENTS
- Strengthen Government capacity to comply with and report on human rights treaty obligations by Jaddi 1389 (end-2010).
- Security and law enforcement agencies to adopt corrective measures (codes of conduct) to prevent arbitrary arrest/detention, torture, extortion, illegal expropriation.
- Strengthen freedom of expression, include human rights awareness in curricula, support AIHRC in monitoring, investigation, protection and promotion of human rights.
- Complete implementation of the Action Plan on Peace, Justice and Reconciliation by Jaddi 1387 (end-2008).

### ECONOMIC & SOCIAL DEVELOPMENT — priority investments and targeted sectors
- Four priority public investment areas:
  1. Infrastructure: electricity, roads, irrigation.
  2. Institutional and human capacity building.
  3. Protecting rights of the poor and social protection.
  4. Creating enabling environment for public sector investment.
- Infrastructure specifics (selected targets):
  - Power: increase generating capacity; explore cross-border purchases and hydro-power; recover costs; rural electrification strategy to be formulated.
  - Roads: complete ring road and connections to neighboring countries by Jaddi 1387 (end-2008); fiscally sustainable road maintenance by Jaddi 1386 (end-2007).
  - Power access target by Jaddi 1389 (end-2010):
    - electricity will reach at least 65% of households and 90% of non-residential establishments in major urban areas, and at least 25% of households in rural areas;
    - at least 75% of the costs will be recovered from users connected to the national power grid.
- Four priority sources of growth:
  1. High-value agriculture, pastoralism, agro-processing and rural industries.
  2. Productive use of state assets (sale/lease of public land; privatization/liquidation of SOEs).
  3. Mining and extractive industries (attract FDI; promote processing over raw exports).
  4. Regional cooperation and transit trade (transit projects, energy trade, reduced travel times to seaports).
- Water and irrigation:
  - Sustainable water strategies by Jaddi 1385 (end-2006).
  - Irrigation investments to result in at least 30% of water coming from large waterworks by Jaddi 1389 (end-2010).
  - Urban water benchmarks by Jaddi 1389 (end-2010): 50% of households in Kabul and 30% of households in other major urban areas to have access to piped water.
- Health sector targets:
  - By Jaddi 1389 (end-2010): BPHS extended to cover at least 90% of the population.
  - By Jaddi 1389 (end-2010): maternal mortality reduced by 15%.
  - By Jaddi 1389 (end-2010): full immunization coverage for infants under-5 and their mortality rates reduced by 20%.
  - DOTS population coverage to 100% by Jaddi 1385 (end-2006); at least 70% of infectious TB cases detected and at least 85% of those cured.
  - Health workforce employment: approximately 8,500 employed by NGO grantees; Ministry of Public Health to directly employ 12,775 persons.
- Agriculture & rural development benchmarks:
  - By Jaddi 1389 (end-2010): institutional/regulatory framework established; public investment in agriculture will increase by 30 percent.
  - Access targets: safe drinking water extended to 90% of villages, sanitation to 50%; road connectivity to reach 40% of villages.
  - 47% of villages to benefit from small-scale irrigation; livelihoods of at least 15% of rural population supported through provision of 91 million labor days.
  - Community development: by end-1389, benefit 19 million people in over 38,000 villages via at least a further 14,000 CDCs.
  - Rural financial services: by Jaddi 1389 (end-2010), 800,000 households (22% of households) to benefit from improved access to financial services.

### SOCIAL PROTECTION, DISASTER RESPONSE, REFUGEES & VULNERABLE GROUPS
- Social protection poverty targets:
  - By Jaddi 1389 (end-2010): proportion of people living on less than US$1 a day will decrease by 3% per year.
  - By Jaddi 1389 (end-2010): proportion of people who suffer from hunger will decrease by 5% per year.
- Disaster preparedness:
  - By Jaddi 1389 (end-2010): an effective system of disaster preparedness and response will be in place.
  - By Jaddi 1389 (end-2010): number of female-headed households that are chronically poor reduced by 20%, and their employment rates increased by 20%.
- Refugees and returnees:
  - Full voluntary return and reintegration of all Afghan refugees is a priority; Tripartite Agreements with Pakistan and Iran expire during 1384/85 (2006) and will be renegotiated.
  - By Jaddi 1389 (end-2010): all refugees opting to return and internally displaced persons will be provided assistance for rehabilitation and integration.

### ECONOMIC GOVERNANCE & PRIVATE SECTOR DEVELOPMENT — fiscal and structural targets
- Medium Term Fiscal Framework (MTFF):
  - MTFF guides allocation of all budgetary resources from 1387 (2008/9).
  - Prepare a medium term expenditure framework for the 1388 (2009/10) budget and subsequent budgets.
- Revenue targets:
  - Afghanistan’s total domestic budgetary revenue, equivalent to 4.5% of estimated legal GDP in 1383 (2004/05), will steadily increase and reach 8% of GDP by 1389 (2010/11).
  - Ratio of revenue to estimated total recurrent expenditures projected to rise from 28% in 1383 (2004/05) to an estimated 58% in 1389.
- Public Finance Management (PFM):
  - By Jaddi 1386 (end-2007): improved transparent financial management at central and provincial levels with benchmarks agreed with the international community.
  - Increase share of external assistance channeled to Core Budget from 19.5% in 1384 (2004/5) to at least 50% by 1390 (2010/11).
- Investment climate and trade benchmarks:
  - Legislation, regulations and procedures related to investment simplified and harmonized by Jaddi 1385 (end-2006) and implemented by Jaddi 1386 (end-2007).
  - By Jaddi 1389 (end-2010): Afghanistan will gain accession to the WTO.
  - By Jaddi 1389 (end-2010): exports benefiting from preferential agreements with US, EU, Japan, Canada, and India will increase.
  - By Jaddi 1389 (end-2010): Government will reduce average import times by 20 days, and export times by 15 days.
- Financial services and markets:
  - Prudential regulations for banking and non-bank financial institutions by Jaddi 1386 (end-2007).
  - Banking supervision of Da Afghanistan Bank strengthened by Jaddi 1386 (end-2007).
  - Re-structuring of state-owned commercial banks complete by Jaddi 1386 (end-2007); liquidation of unlicensed state-owned banks by Jaddi 1385 (end-2006).

### RESOURCE REQUIREMENTS, AID EFFECTIVENESS, COORDINATION & MONITORING
- SAF-derived provisional costing:
  - SAF model estimated US$ 27.6 billion over seven years; two adjustments made; adjusted five-year mapped figure: US$19.829 billion.
  - Caveats: SAF under-estimated security sector costs; donor allocations have not always matched SAF priorities.
- Aid context and needs:
  - Over 90% of national development resources provided by international partners.
  - Afghanistan likely to require the US$4 billion per year (approximately) envisaged by SAF for the next five years to achieve I-ANDS and Compact goals.
- Principles for aid effectiveness:
  - Donors should base programs on I-ANDS and fund within national core budget to eliminate parallel systems.
  - Limit top-up payments Government cannot sustain; rationalize technical assistance; develop performance standards.
  - Donors to support anti-corruption, fiduciary management and capacity building.
- Coordination and monitoring arrangements:
  - Presidential Oversight Committee as high-level focal point.
  - Reformed Consultative Groups aligned with I-ANDS structure; temporary ANDS Working Group to support Oversight Committee evolving into a small support unit.
  - Joint Coordination and Monitoring Board (JCMB): co-chaired by senior Afghan Government official and Special Representative of the UN Secretary-General; small secretariat to work alongside I-ANDS support units; review Compact implementation and take corrective action.
  - Annual Afghanistan Development Forum to assess implementation and funding.

### CONSULTATION AND TIMELINE FOR FULL ANDS
- Consultations:
  - Full ANDS to be based on more comprehensive discussions in 1385 (2006/7) and beyond with line ministries, National Assembly, sub-national units, donors, UN agencies, NGOs, civil society, communities and private sector.
- Data and timelines:
  - 1385 (2006/7): focus on data collection and provincial/district/village consultations.
  - 1386 (2007/8): review data and complete full ANDS by Jaddi 1386 (end-December 2007).
  - Five-phase consultation process described with Phase One starting Months 1-3 (Policy Review & Costing) through Phase Five (final consultations and presentation).
  - Government will publish final ANDS by 10 Jaddi 1386 (end-December 2007).

### CONCLUSION — summary emphases
- National vision restated: consolidate peace and stability, reduce poverty, achieve prosperity through broad based equitable growth.
- Security: build legitimate monopoly on force; develop army, police, intelligence.
- Governance: nurture accountable constitutional state; strengthen public sector capacity.
- Economy: create prosperity, reduce poverty, eliminate narcotics via private sector-led growth; prioritize electricity, roads, irrigation, education, health, private sector promotion, social protection.
- International partnership: goals tied to UN and international community support; five-year Compact benchmarks require full political and financial support.
- Call for broad consultation and a 'Social Compact' to mobilize Afghan society and international partners to achieve objectives.

*Source: PREFACE, INTRODUCTION, PARTS I–III and CONCLUSION, I-ANDS Summary Report extracted from _cr06195*

### PREFACE

### _cr06195 - PREFACE

### Purpose of the document
- This is the Summary Report of the Interim Afghanistan National Development Strategy (I-ANDS).
- The Summary Report forms part of the I-ANDS, which comprises three Volumes.
  - Volume I lays out overall policy objectives; analyzes context and constraints; summarizes Government's key strategies and programs; and reviews specific steps towards implementation of the I-ANDS and development of the full ANDS.
  - Volume II contains a summary of Government's proposed and ongoing sectoral programs and annual indicators against which progress may be measured. While Volume II is not yet Government policy, it will form the basis for consultations towards the development of the full ANDS.
  - Volume III is a collation of strategic plans developed by government line ministries and commissions.

### Consultation and development process
- The I-ANDS is the product of twelve-months of intensive consultations within Government and with a wide array of stakeholders, including community and provincial representatives, the (learned religious leaders) ulama, the private sector, civil society, non-government organizations (NGOs), the United Nations, donors and other members of the international community, senior Afghan policy makers, and government ministries and departments.
- The I-ANDS process began in early 1384 (2005) with discussions of Afghanistan Millennium Development Goals (MDGs).
- Throughout 1384 (2005/6) the Oversight Committee met almost every week to develop and refine its core positions on the I-ANDS and to oversee the process as it moved forward.
- Following a presentation of the proposed I-ANDS structure and process in June 1384 (2005), a series of consultations were held with donors, NGOs, private sector and civil society representatives.
- For each of the eight sectors of the I-ANDS, a consultation draft was prepared, translated, and discussed with both government ministries and donor representatives.
- Based upon government and donor reaction to those drafts, the sector and program summaries in the I-ANDS were significantly revised.
- As the document was developed, an External Advisory Group of donors provided informal feedback on the I-ANDS.

### Leadership and oversight
- The I-ANDS process was led by a Presidential Oversight Committee, chaired by Professor Ishaq Naderi, Senior Economic Advisor to the President.
- Members included Hedayat Amin Arsala, Senior Advisor to the President and Minister of Commerce, Dr. Anwar-ul-Haq Ahady, Minister of Finance, Dr. Mir Mohammad Amin Farhang, Minister of Economy, Mohammad Haneef Atmar, Minister of Rural Rehabilitation and Development.
- Adib Farhadi, Director of Afghanistan Reconstruction and Development Services, led the I-ANDS working group.
- The consultation and Compact negotiation processes included intensive consultations facilitated by the United Nations and involved Government and donor representatives.

### Linkage to the Afghanistan Compact
- In the negotiation of the Afghanistan Compact, a series of intensive consultations took place between the international community and the Government of Afghanistan, facilitated by the United Nations.
- As a result of this process, each benchmark in the Compact has been scrutinized in depth by Government and donor representatives and now represents a consensus set of policy priorities for the I-ANDS.

### Objectives for the Summary Report and next steps
- The Summary Report aims to be a living document to stimulate policy debate within the Afghan government and with key partners.
- The Government hopes the document will be reviewed by a wide array of stakeholders throughout Afghanistan and beyond and will be significantly improved as the full ANDS is developed.
- Ultimately the ANDS is intended to serve as a consensus building tool on Afghanistan's national development priorities for many years to come.

*Source: PREFACE, _cr06195 - PREFACE*

### INTRODUCTION

### INTRODUCTION

### PART ONE: OUR VISION
- “Our vision for the Islamic Republic of Afghanistan is to consolidate peace and stability through just, democratic processes and institutions, and to reduce poverty and achieve prosperity through broad based and equitable economic growth.”
- Fifteen-year ambitions (all Afghans to live in dignity; achieve all Millennium Development Goals (MDGs) by 1400 (2020)):
  - All children, boys and girls alike, will complete their primary educations.
  - Cut by more than half the number of children dying before they reach five, and the number of mothers that die in childbirth.
  - Halt the spread of tuberculosis, HIV/AIDs, malaria and other diseases and ensure environmentally sustainable development.
  - Afghanistan's women will enjoy greater equity in education, political participation and justice.
- Three mutually reinforcing pillars ("Circle of Justice"):
  - Security: build a well trained, affordable, representative and professionalized national army and police force that provide security and uphold the law; state monopoly on the use of force to protect rights of all Afghans.
  - Governance: develop a stable and mature Islamic constitutional democracy with checks and balances among executive, parliamentary and judicial branches; government as policy maker, regulator and enabler of the private sector; cost-effective national and sub-national administration; justice system that equally protects rights of all Afghans.
  - Economy: build a liberal market economy in which all Afghans can participate productively without engaging in production or trafficking of narcotics or other criminal activities; create an enabling environment for private sector, generate public revenues to invest in public services, move beyond dependence on international aid to a private sector-led economy.

- Priority investment areas to enhance productivity and pro-poor growth:
  - Electricity, roads, irrigation.
  - Institutional and human capacity building.
  - Creating an enabling environment for private sector development and protecting rights of the poor.
  - Targeted growth areas: rural development (agriculture and rural industries), management of state assets, mining and extractive industries, and transit.
- Planning and review cadence:
  - Annual review of progress towards MDGs and I-ANDS benchmarks with adjustments in five-year fiscal framework and annual budget.
  - Figure described: Millennium Development Goals (15 Years) → National Development Strategy (5 Years) → Medium Term Fiscal Framework (5 Years) → 1385 Budget (1 Year).

### MOVING TOWARDS OUR VISION THROUGH THE AFGHANISTAN COMPACT
- Objective: achieve MDGs by 1400 (2020) through significant progress across security, political and economic spheres in the next five years, with international political and financial support.
- Afghanistan Compact of 1384 (2006) succeeds Bonn Agreement of 1380 (2001); Compact is a political commitment of Afghanistan and the international community to work towards 5-year high-level benchmarks.
- Implementation instruments:
  - I-ANDS and ANDS to implement Government obligations under the Afghanistan Compact.
  - I-ANDS and the Compact aligned with Afghanistan's MDGs to provide immediate, medium- and long-term goals.

### PART TWO: ANALYSIS OF CONTEXT — RECENT HISTORY AND ACHIEVEMENTS
- Historical damage to state legitimacy and capacity:
  - By 1 Jaddi 1380 (22 December 2001) state legitimacy had been damaged by military coups, armed commanders capturing parts of the state, persecution, killings, arrests, and hostage-taking by international terrorists.
  - From Sawr 1357 (April 1978) until 14 Qaws 1380 (5 December 2001) conflict killed over a million Afghans, orphaned/maimed/disabled over a million, drove a third of the population into exile as refugees.
  - Much agricultural land and pasture mined; basic infrastructure destroyed or unmaintained; education and health facilities crumbled; licit agricultural production fell by half.
  - Hyperinflation resulted from printing worthless money to fund militias.
- Bonn Process and state rebuilding:
  - Interim Administration inaugurated 1 Jaddi, 1380 (22 December, 2001); Bonn requirements met (Emergency Loya Jirga, drafting/adoption of constitution, national elections).
  - Presidential election: 27 Mizan 1383 (19 October 2004).
  - Elections to lower house and provincial councils: 28 Sunbula 1384 (19 September 2005).
- Security sector reform and disarmament:
  - Demobilized and disarmed about 62,000 combatants integrated into the Ministry of Defense and secured heavy weapons.
  - Launched Disbandment of Illegal Armed Groups (DIAG) to disarm and reintegrate about 100,000 former combatants who are members of about 1,800 such groups.
  - ISAF (now commanded by NATO) and Operation Enduring Freedom (OEF) provided security assistance; Provincial Reconstruction Teams (PRTs) assist in SSR.
- Legal and institutional reforms (examples with dates):
  - Banking Law of Afghanistan, 1383 (2004).
  - Private Investment Law, 1382 (2003).
  - Customs Code, 1384 (2005).
  - Public Finance and Expenditure Management Law, 1384 (2005); Revenue Law, 1384 (2005); Income Tax Law, 1384 (2005).
  - Civil Service Law, 1384 (2005); Law on the Organization and Jurisdiction of Courts, 1384 (2005); Juvenile Justice Code, 1384 (2005).
  - Anti Narcotics Drugs Law, 1383 (2004); Law on Campaign against Money Laundering, 1383 (2004); Law on Campaign against Bribery and Corruption, 1383 (2004).
- Macroeconomic and social progress to end of 1384 (2005/6):
  - Real licit economy projected to have grown by an estimated 85% since start of Bonn Process.
  - Inflation has fluctuated at slightly more that 10% per year.
  - Domestic revenue increased from 3.2% of GDP to 5.4% of GDP by 1384 (2005/6).
  - Licit trade deficit: 45% of non-drug GDP in 1383 (2004/5).
  - Counter-narcotics program reduced area cultivated in opium poppy by 21% in 1383 (2004/5).
- Social services and infrastructure:
  - School enrollments more than quadrupled to over six million children, one-third of whom are girls.
  - Coverage of a Basic Package of Health Services expanded to most of the country.
  - Repaired roads decreased travel time between major cities and key borders; reconstruction includes ring road, provincial and rural roads, electricity to urban centers, irrigation, bridges.
  - Block grants to a third of the country's villages via Community Development Councils (CDCs).
- Donor conferences and pledges:
  - Tokyo donor conference 2 Dalwa 1380 (22 January 2002): donors pledged US$5.2 billion.
  - Berlin conference 11-12 Hamal 1383 (31 March-1 April 2004): donors pledged US$8.2 billion over three years.
  - Regional and bilateral initiatives: Declaration of Good Neighborly Relations 1381 (2002); Dubai declaration 1382 (2003); Berlin counter-narcotics cooperation declaration 1383 (2004); Bishkek conference 1383 (2004); ministerial conference on Regional Economic Cooperation 13-14 Qaws 1384 (4-5 December, 2005).

### PART TWO: CURRENT CHALLENGES AND CONSTRAINTS
- Security constraints:
  - More than 1,800 illegal armed groups continue to exist across the country.
  - Security sector fiscal burden: security sector cost 17% of GDP in 1383 (2004/5).
  - Key constraints: porous borders; ability of illegal armed groups and terrorists to exercise force; shortage of managerial capability and skilled personnel in ANA and ANP; fiscal sustainability of the security sector; size of the illicit economy funding opposition to security plans.
- Governance, human rights and rule of law constraints:
  - Afghanistan mobilizes less public resources than any other government in the world as a percentage of GDP.
  - Civil service decimated; legal and regulatory framework nascent or absent; enforcement capacity compromised.
  - Weak sub-national administration inhibits coordination and accountability; many sub-national structures influenced by illicit power holders.
  - Less than 25% of aid is channeled through Government channels, constraining Government capacity to lead development; unpredictability of donor funding and insufficient managerial skills impede project progress.
- Economic and social development constraints with exact statistics:
  - Thirty-eight percent of rural households are short of food at least part of the year.
  - Malnutrition widespread.
  - Literacy among Afghans aged 15-24: 34%; female literacy in this group: 18%.
  - Half of all school-age children do not attend school.
  - Life expectancy: forty-four and a half years.
  - Maternal mortality: among the highest in the world; in Badakhshan province one in three women can expect to die from complications of pregnancy or childbirth.
  - Only 24% of water sources are safe for drinking.
  - Fewer than 1% of households have safe or sanitary toilet facilities.
  - Malaria is prevalent in 60% of the country and is spreading.
  - Afghanistan among 22 countries with the highest rates of tuberculosis.
  - Drug addiction, injection, and hence HIV/AIDS are spreading rapidly.
  - Forest cover has been cut in half.
  - Only 6% of the population has access to public electricity power grids.
- Illicit economy and its scale:
  - UNODC estimates value of opiates produced in 1383-84 (2004-5) was equivalent to 47% of the licit GDP.
  - Nearly four-fifths of the income went to traffickers, not farmers.
  - Over two million people (in a population of about 25 million) rely directly on the opium economy.
  - Licit economy dominated by subsistence farming; most licit economy informal and hard to tax.
  - Imports outstrip licit exports (net of re-exports) by a factor of eight to one.
  - Weak state and drug industry growth have led to criminalization of much of the economy; control over arms and money enables power holders to seize land, levy tributes, and control access to credit and markets; poor lack effective rights to land or assets.
- Human capital and competitiveness:
  - Millions lack health and education services; relevant productive skills not being transferred quickly enough.
  - High real exchange rate subsidizes consumption of imports and makes Afghanistan's exports uncompetitive; creates incentives for capital flight to neighboring countries.

### PART THREE: DEVELOPMENT STRATEGY AND PROGRAMS — SECURITY PRIORITIES (INTRODUCTION)
- Government strategy: create an enabling environment for equitable economic growth by targeting priority investments across three pillars: (1) security, (2) governance, rule of law and human rights, and (3) economic and social development.
- Security role and objective:
  - Provide security with direct support of the international community.
  - Establish legitimate monopoly on force and law enforcement to provide a secure environment for rights, freedom of movement for people, commodities and ideas, and social and economic development.
- The security strategy contains specified priorities (detailed priorities follow in the full document).

*Source: _cr06195 - INTRODUCTION*

### 1.   Through Jaddi 1389 (end-2010), with the support of and in close coordination with the

### Through Jaddi 1389 (end-2010), with the support of and in close coordination with the Afghan Government, NATO-led International Security Assistance Force (ISAF), Operation Enduring Freedom (OEF) and their respective Provincial Reconstruction Teams (PRTs) will promote security and stability in all regions of Afghanistan, including by strengthening Afghan capabilities.

### Afghan National Army (ANA)
- By Jaddi 1389 (end-2010): the Government will establish a nationally respected, professional, ethnically balanced Afghan National Army that is democratically accountable, organized, trained and equipped to meet the security needs of the country and increasingly funded from Government revenue, commensurate with the nation's economic capacity.
- Support will continue to be provided to Afghanistan in expanding the ANA towards a ceiling of 70,000 personnel articulated in the Bonn talks.
- The pace of expansion is to be adjusted on the basis of periodic joint quality assessments by the Afghan Government and the international community against agreed criteria which take into account prevailing conditions.

### Afghan National Police (ANP) and Afghan Border Police
- By Jaddi 1389 (end-2010), a fully constituted, professional, functional and ethnically balanced Afghan National Police and Afghan Border Police with a combined force of up to 62,000 will be able to meet the security needs of the country effectively and will be increasingly fiscally sustainable.

### Disarmament of Illegal Armed Groups
- All illegal armed groups will be disbanded by Jaddi 1386 (end-2007) in all provinces.

### Counter-narcotics and Law Enforcement Capacity
- By Jaddi 1389 (end-2010), the Government will strengthen its law enforcement capacity at both central and provincial levels, resulting in:
  - a substantial annual increase in the amount of drugs seized or destroyed; and
  - processing facilities dismantled; and
  - effective measures, including targeted eradication as appropriate, that contribute to the elimination of poppy cultivation.

### Regional Cooperation on Drug Trafficking
- By Jaddi 1389 (end-2010), the Government and neighboring and regional governments will work together to increase coordination and mutual sharing of intelligence, with the goal of:
  - an increase in the seizure and destruction of drugs being smuggled across Afghanistan's borders; and
  - effective action against drug traffickers.

*Content extracted from the provided IMF source text.*

### 7.   By Jaddi 1389 (end-2010), in line with Afghanistan's Millennium Development Goals

### 7.   By Jaddi 1389 (end-2010), in line with Afghanistan's Millennium Development Goals

### Governance, Rule of Law, and Human Rights — Key Priorities and Benchmarks
- By Jaddi 1389 (end-2010), reduce land area contaminated by mines and unexploded ordnance by 70%.
- All stockpiled anti-personnel mines will be located and destroyed by Jaddi 1386 (end-2007).
- By Jaddi 1389 (end-2010), all unsafe, unserviceable, and surplus ammunition will be destroyed.
- Government aim: enhance governance by establishing and strengthening government institutions at the central and sub-national levels to achieve measurable improvements in service delivery and protection of rights for all Afghans.
- Reform the justice system to provide access to formal justice and judicial supervision of informal dispute resolution mechanisms.
- Strengthen protection of human rights for all, especially women and children, and assure redress for violations.

- Identified key priorities (select highlights with exact timing and commitments):
  - 1. By Jaddi 1389 (end-2010): restructure and rationalize government machinery (including the number of ministries) to ensure a fiscally sustainable public administration; strengthen the Civil Service Commission; reform civil service functions to reflect core functions and responsibilities.
  - 2. Establish a clear and transparent national appointments mechanism within 6 months, applied within 12 months, and fully implemented within 24 months for all senior-level appointments to the central government and the judiciary, and for provincial governors, chiefs of police, district administrators and provincial heads of security.
  - 3. By Jaddi 1385 (end-2006), undertake a review of the number of administrative units and their boundaries to contribute to fiscal sustainability.
  - 4. By Jaddi 1389 (end-2010), institute merit-based appointments, vetting procedures and performance-based reviews across civil service, judiciary and police; annual performance-based reviews for all senior staff (Grade 2 and above) starting by Jaddi 1386 (end-2007).
  - 5. Ratify the UN Convention Against Corruption by Jaddi 1385 (end-2006); adapt national legislation by Jaddi 1386 (end-2007); establish a monitoring mechanism by Jaddi 1387 (end-2008).
  - 6. Complete census enumeration by Jaddi 1387 (end-2008) and publish complete results; establish reliable statistical baselines for all quantitative benchmarks by the first quarter of 1386 (mid-2007).
  - 7. Provide the National Assembly with technical and administrative support by the first quarter of 1385 (mid-2006).
  - 8. Ensure the Afghanistan Independent Electoral Commission has high integrity, capacity and resources to undertake elections in an increasingly fiscally sustainable manner by Jaddi 1387 (end-2008); establish a permanent civil and voter registry with a single national identity document by Jaddi 1388 (end-2009).
  - 9. By Jaddi 1389 (end-2010): fully implement the National Action Plan for Women in Afghanistan; strengthen female participation in all Afghan governance institutions in line with Afghanistan's MDGs.
  - 10. By Jaddi 1389 (end-2010), put in place the legal framework required under the constitution (civil, criminal, commercial laws), distribute to judicial and legislative institutions and make available to the public.
  - 11. By Jaddi 1389 (end-2010), ensure functioning institutions of justice are fully operational in each province; reduce average time to resolve contract disputes as much as possible.
  - 12. Initiate review and reform of oversight procedures relating to corruption, lack of due process and miscarriage of justice by Jaddi 1385 (end-2006) and fully implement by Jaddi 1389 (end-2010); strengthen professionalism, credibility and integrity of key justice institutions by Jaddi 1389 (end-2010).
  - 13. By Jaddi 1389 (end-2010), rehabilitate justice infrastructure; provide prisons with separate facilities for women and juveniles.
  - 14. Start land registration process for major urban areas by Jaddi 1385 (end-2006) and for all other areas by Jaddi 1387 (end-2008); fair land dispute settlement system by Jaddi 1386 (end-2007); rural land registration under way by Jaddi 1386 (end-2007).
  - 15. By Jaddi 1389 (end-2010), increase arrests and prosecutions of traffickers and corrupt officials and improve information base concerning those involved in the drugs trade.
  - 16. By Jaddi 1389 (end-2010): strengthen Government capacity to comply with and report on human rights treaty obligations; adopt corrective measures (including codes of conduct and procedures) to prevent arbitrary arrest and detention, torture, extortion and illegal expropriation of property; strengthen freedom of expression including freedom of media; include human rights awareness in education curricula; carry out human rights monitoring by Government and independently by the AIHRC; support the AIHRC in monitoring, investigation, protection and promotion of human rights.
  - 17. Complete implementation of the Action Plan on Peace, Justice and Reconciliation by Jaddi 1387 (end-2008).

### Economic and Social Development — Strategic Goal and Macroeconomic Target
- Goal: address poverty through private sector-led equitable economic growth while progressively eliminating the criminal economy.
- Estimate: need a sustained real growth rate of 9% per year of licit GDP to provide people with a tangible sense of improvement while compensating for the contraction caused by elimination of the narcotics sector.
- Counter-narcotics strategy: implement a pro-poor counter-narcotics program targeting traffickers and corrupt officials while helping the poor to produce licit livelihoods; promote licit exports and import substitution to address macroeconomic effects of eliminating the narcotics sector.
- Government commitment: remove any members of Government involved in illegal drug-related activities.

### Priority Investments to Enable Growth — Four investment areas
- Priority public investments identified:
  1. Infrastructure, particularly electricity, roads, and water.
  2. Institutional and human capacity building.
  3. Protecting the rights of the poor, with focus on social protection for the most vulnerable.
  4. Creating an enabling environment for public sector investment.

- Infrastructure specifics:
  - Electric power: increase generating capacity, especially through domestic and cross-border hydro-power projects; recover costs of power supply; explore lower-cost technological solutions including non-conventional and renewable energy sources; explore small and medium dams for urban and semi-urban hydro-power.
  - Transmission lines to purchase power from neighboring countries until generating capacity increases.
  - Rural electrification: formulate a comprehensive rural electrification strategy during development of the full ANDS; assure equitable access to power.
  - Roads: continue investment in the ring road and roads connecting Afghanistan to neighboring countries over the next five years; develop trunk and rural access roads; explore feasibility of railroads to connect to regional rail networks.
  - Irrigation and water: prioritize investment in water management and irrigation systems — about 90% of water is currently wasted because of outdated systems; establish integrated water management in major river basins including cross-border management; establish market research and extension programs to support high-value agriculture and rural industries.

- Institutional and human capacity building:
  - Integrate capacity building into all development plans for public and private sectors and for individuals.
  - Offer on-the-job training, special courses, and intensive study abroad for government servants.
  - Establish vocational and on-the-job skills building programs; upgrade higher-education system toward managerial and professional skills required.
  - Build private sector capacity to bid on international contracts, raise capital through formal institutions, purchase and use insurance, calculate costs and benefits of investments, develop business plans, and package and market goods according to international standards.

- Protecting rights and social protection:
  - Ensure access to the Basic Package of Health Services: current cost US$ 3.50 per capita; Government aims to increase this to US$ 5.80 per capita to cover reasonable recurrent hospital expenditures.
  - Initiate country-wide process of land registration and establish a fair system for settlement of land disputes.
  - Protect property rights to unlock savings held in land and housing as collateral for formal financial institutions.
  - Provide social protection for the poor and vulnerable, especially in rural areas, including rights to basic services, land, and freedom from physical harm and human trafficking.

- Enabling environment for entrepreneurship and private investment:
  - Fight corruption and streamline regulatory and tax policy.
  - Ensure macroeconomic stability and provide regulatory framework to promote financial services and attract investment.
  - Make it easy and profitable to set up, invest in and run profitable businesses in Afghanistan.

### Four Priority Sources of Growth — Targeted sectors
- 1. High-value Agriculture, Pastoralism, Agro-processing and Rural Industries:
  - Agriculture is the largest sector of the licit economy and employs most of the poor.
  - Promote improvements in market access, power supply, cold storage, quality control and standards to improve productivity and expand high-value crops.
  - Promote processing of agricultural products for export and industries with import substitution potential.

- 2. Productive use of State Assets:
  - Generate government revenues through (i) sale of public land for housing, (ii) rural and urban housing schemes, and (iii) privatization of state owned enterprises.
  - Undertake a survey of all urban and peri-urban land owned by Government; prioritize development of serviced land and sell or lease lots through open competitive bidding.
  - Use revenue from sale/lease of public land, with international assistance and low-cost loans, to provide infrastructure and incentives for private sector low-cost housing.
  - Consider allocation of state-owned agricultural land to poor cultivators based on land survey results.
  - Assess state owned enterprises (SOEs) against criteria to determine whether to retain, liquidate, or privatize; strengthen management, oversight and transparency for retained SOEs; place proceeds from sale/liquidation of SOEs in a fund to support economic development.

- 3. Mining and Extractive Industries:
  - Afghanistan has reserves of iron, copper, coal, hydrocarbons, quarry materials and gemstones not formally developed.
  - To attract foreign direct investment, address regulatory, fiscal and institutional deficiencies; exercise greater control over local strongmen; invest in roads, energy and water systems; secure skilled labor; and remove landmines and unexploded ordnance in relevant areas.
  - Promote processing of minerals rather than exporting raw materials.

- 4. Regional Cooperation, Transit trade in Energy and Goods:
  - Transit projects (example: Trans-Afghan Pipeline) can generate income from rents and tolls.
  - Other potential projects: sale of hydropower by Tajikistan to Pakistan, construction of oil and gas pipelines across Afghanistan.
  - Improvements in road network and border management could bring all Central Asian capitals within 36 hours of a seaport.
  - Establishing transit corridors requires road improvements, rail heads or railroads, security along transit corridors and better border management.

- Balancing investments across these four areas is essential to allocate resources appropriately between urban and rural sectors; promote agricultural development while supporting rural industries and productive activities in small towns and regional cities.

### Strategic Framework and Crosscutting Themes
- Three interrelated Pillars: (1) Security; (2) Governance, Rule of Law, and Human Rights; and (3) Economic and Social Development.
- Five crosscutting themes to be mainstreamed: gender, counter-narcotics, regional cooperation, anti-corruption, and environmental protection.

- Gender equity — context, constraints, and benchmarks:
  - Constitution guarantees non-discrimination and equality; women reserved an average of two seats per province in lower house (currently equivalent to 27%) and one-sixth of seats in upper house.
  - Women represented 44% of voters registered for the presidential elections.
  - Afghanistan's women have one of the lowest indicators in the world according to the Gender Development Index (GDI).
  - Constraints: gender gaps in health, education, access to resources, economic opportunities, justice and political participation; lack of gender-responsive mainstreaming across Government; pervasive obstacles to education for girls and women; violence against women and girls; discriminatory inheritance and property laws; poor representation in leadership.
  - Government measures: develop a 10-year National Plan of Action for Women; each ministry to establish a unit to monitor implementation; build capacity for gender analysis, gender budgeting and gender-sensitive policy making; national advocacy campaign; improve women's access to health and reproductive services; remove gender disparities in education; facilitate women's economic empowerment; provide targeted social protection for vulnerable women; improve women's political participation.
  - Five-year Strategic Benchmark: By Jaddi 1389 (end-2010): the National Action Plan for Women in Afghanistan will be fully implemented; in line with Afghanistan's MDGs, female participation in all governance institutions, including elected and appointed bodies and civil service, will be strengthened.

- Counter-narcotics — context and scale (exact figures preserved):
  - Between 1381 (2002/3) and 1383 (2004/5) opium production in Afghanistan rose from 3,400 MT to 4,200 MT, before decreasing marginally in 1384 (2005/6).
  - According to UNODC, Afghanistan produced approximately 87% of illicit opium worldwide in 1383 (2004/5).
  - At approximately US$ 2.8 billion, the total value of opiates produced in Afghanistan in 1383 (2004/5) equaled an estimated 47% of Afghanistan's non-drug GDP.
  - This value contrasts with the Government's (core) budget of US$ 1.9 billion.
  - Cultivation covered only 2.3% of Afghanistan's arable land (up to 10% of land in opium growing villages) in 1383 (2004/5) and provided regular employment for 8.7% of the population as a whole.
  - Counter-narcotics aim: secure a sustainable decrease in poppy cultivation, drug production, consumption of illicit drugs and trafficking, with a view to complete and sustainable elimination of narcotics from Afghanistan to pave the way for pro-poor, private sector-led economic growth.

*Italic: IMF country report content unit _cr06195 - 7.   By Jaddi 1389 (end-2010), in line with Afghanistan's Millennium Development Goals*

### 1.   By  Jaddi  1389  (end-2010),  the  Government  will  strengthen  its  law  enforcement

### _cr06195 - 1.   By  Jaddi  1389  (end-2010),  the  Government  will  strengthen  its  law  enforcement

### Counter-narcotics: objectives and benchmarks
- By Jaddi 1389 (end-2010), the Government will strengthen law enforcement capacity at both central and provincial levels, resulting in:
  - a substantial annual increase in the amount of drugs seized or destroyed;
  - processing facilities dismantled;
  - effective measures, including targeted eradication, as appropriate, that contribute to the elimination of poppy cultivation.
- By Jaddi 1389 (end-2010), the Government and neighboring and regional governments will work together to increase coordination and mutual sharing of intelligence, with the goal of an increase in the seizure and destruction of drugs being smuggled across Afghanistan's borders, and effective action against drug traffickers.
- By Jaddi 1389 (end-2010), the Government will increase the number of arrests and prosecutions of traffickers and corrupt officials, and will improve its information base concerning those involved in the drugs trade, with a view to enhancing the selection system for national and sub-national public appointments.
- By Jaddi 1389 (end-2010), the Government will design and implement programs to achieve a sustained annual reduction in the amount of land under poppy and other drug cultivation, by the strengthening and diversification of licit livelihoods and other counter-narcotics measures, as part of the Government's overall goal of a decrease in the absolute and relative size of the drug economy, in line with the Government's MDG target.
- By Jaddi 1389 (end-2010), the Government will implement programs to reduce the demand for narcotics, and provide improved treatment for drug users.
- Counter-narcotics strategy focus:
  - interdiction and law enforcement against traffickers and processors;
  - investing in licit livelihoods for those who depend economically on narcotics;
  - eradication used when and where licit livelihoods are available.
- Eight strategic activities include: (1) building strong institutions; (2) enhancing law enforcement and interdiction; (3) developing sustainable alternative livelihoods; (4) strengthening criminal justice; (5) reducing demand for narcotics and increasing treatment of drug addicts; (6) continuing eradication efforts; (7) increasing public awareness; and (8) promoting international and regional cooperation.
- Contextual observations:
  - Opium growing has become the principal livelihood in several rural areas and determines access to land and credit; it provides demand and financing that generates much urban economic activity.
  - Illicit revenues and parallel power structures generated by the drug trade distort the economy and undermine the elected government.
  - The drug economy's characteristics (short planting-to-harvest cycle; resilience; easy storage and transport; high cash value; year-round trade) make it a competitive source of returns in the absence of significant development and rule of law.
  - Cash incomes from drug trafficking finance bribes that have corrupted significant portions of the administration.
- Quantitative estimate cited:
  - The business of narcotics generated products with a market value at the Afghan border of US$ 2.8 billion domestically in 2004-05.

### Regional cooperation: objectives and constraints
- Five-year strategic benchmarks:
  - By 1389 (end-2010): Afghanistan and its neighbours will achieve lower transit times through Afghanistan by means of cooperative border management and other multi-lateral or bilateral trade and transit agreements;
  - Afghanistan will increase the amount of electricity available through bilateral power purchase;
  - Afghanistan, its neighbours and countries in the region will reach agreements to enable Afghanistan to import skilled labour and to enable Afghans to seek work in the region and send remittances home.
- Context:
  - Since 1380 (2001/2), regional cooperation importance has increased for reconstruction, economic development, and security.
  - Political and economic progress marked by declarations and agreements; Afghanistan now enjoys official relations with most countries.
  - Regional cooperation recognized as necessary to reduce trade costs and to cooperate on security issues, including border management and efforts against trafficking.
- Constraints that must be overcome:
  - managing the destabilizing impact of geopolitical and regional dynamics, drug and human trafficking, and money laundering;
  - restrictive trade policies of neighbors and outdated trade and transit agreements that lack monitoring mechanisms;
  - lack of institutional and human resources to initiate or coordinate regional initiatives or to facilitate private-public partnerships;
  - lack of information for the private sector about opportunities for trade and investment at the regional level;
  - lack of effective civil aviation links, and weak road infrastructure.
- Government actions:
  - (1) build institutional and human capacities for regional cooperation;
  - (2) strengthen political cooperation and honor membership commitments in regional and international organizations;
  - (3) pursue trade liberalization with a view to joining the World Trade Organization (WTO);
  - (4) develop effective policies and programs for trade facilitation, in particular modernizing customs codes, procedures and infrastructure and improving transport and border infrastructure;
  - (5) develop trade in electricity and energy; seeking opportunities for power purchasing agreements with neighbors;
  - (6) strengthen cross-border cooperation focusing on interdiction and law enforcement;
  - (7) encourage active participation of the private sector in regional cooperation.

### Anti-corruption: strategy, constraints, and benchmarks
- Five-year strategic benchmark:
  - The UN Convention against Corruption will be ratified by Jaddi 1385 (end-2006), national legislation adapted accordingly by Jaddi 1386 (end-2007) and a monitoring mechanism to oversee implementation will be in place by Jaddi 1387 (end-2008).
- Context and constraints:
  - Corruption undermines accountability, erodes public trust, reduces legitimacy of state institutions, and is a means for illegal armed groups to maintain hold on provincial and district power structures.
  - Sale of judicial access and favorable decisions to the highest bidder undermines security and basic rights, especially for the poor, women, and children.
  - The burgeoning illegal narcotics trade finances corruption; the narcotics trade's market value at the Afghan border in 1383 (2004/5) was estimated at 47% of non-drug GDP.
  - Reliable information on corruption is unavailable; unreformed public administration creates incentives and opportunities for corruption; legal and regulatory framework is embryonic.
  - External oversight bodies such as the Auditor General and National Assembly are new; central Government has limited oversight over sub-national administration.
  - Continued reliance on foreign aid makes Government vulnerable to misuse and poor fiscal management; insufficient regulation enables abuse of non-governmental organization status; public sector involvement in the opium economy destabilizes the state; media and other accountability institutions are still emerging.
- Anti-corruption strategy components:
  - (1) strengthen public sector management;
  - (2) strengthen public accountability systems;
  - (3) strengthen the legal framework and judicial system;
  - (4) control corruption within counter-narcotics institutions.
- Additional action:
  - conduct research for reliable data and valid measurements of corruption.

### Environment: context, constraints, and actions
- Five-year strategic benchmark:
  - In line with Afghanistan's MDGs, environmental regulatory frameworks and management services will be established for the protection of air and water quality, waste management and pollution control, and natural resource policies will be developed and implementation started at all levels of government, as well as at the community level, by 1386 (end-2007).
- Context:
  - Afghanistan remains highly vulnerable to environmental damage; up to 80% of Afghans remain dependent on natural resources for income and sustenance.
  - Marginalized groups and those farming only small rain-fed plots suffer most from environmental degradation.
  - Habitats for animals and plants are disappearing, placing increasing strains on food sources.
  - Afghanistan's forest cover has been cut in half since 1357 (1978) due to demand for timber and lack of energy alternatives to firewood.
  - Depletion of forests and vegetation through illegal harvesting, widespread grazing, and dry land cultivation increases soil and riverbank erosion and draws down the water table.
  - Pollution and poor sanitation are depleting clean water resources; reduction of the water table is decreasing land productivity and increasing risks of floods and mudslides.
- Constraints:
  - government lacks ability to integrate sustainable development approaches into the national development framework;
  - environmental legislation and regulatory framework are underdeveloped and unenforceable;
  - public awareness of environmental and natural resource issues is limited;
  - insecurity facilitates unsustainable exploitation of and inequitable access to natural resources.
- Government actions:
  - (1) clarify responsibilities in the environmental arena and strengthen the capacity of National Environmental Protection Agency;
  - (2) develop and implement a legal and regulatory framework that ensures sustainable use of natural resources;
  - (3) build environment and natural resource management capacity within line ministries;
  - (4) initiate community-based management of natural resources;
  - (5) introduce environmental education and vocational training;
  - (6) promote regional cooperation on environmental and natural resource management.

### Security: National Security Policy, constraints, and sectoral strategies
- Government's overall aim:
  - establish a legitimate monopoly on force and law enforcement that provides a secure environment for the fulfillment of the rights of all Afghans, ensuring freedom of movement for people, commodities and ideas, and social and economic development.
- Context and constraints:
  - Afghanistan's geo-strategic position, Islamic government and partnership with the international community make Afghanistan an essential contributor to global and regional security, but threats to national and personal security remain major impediments to growth and poverty reduction despite gains since 1381 (2002/3).
  - Terrorism persists in southern and eastern regions; terrorists enjoy safe havens outside Afghanistan and have become more effective and lethal.
  - Government and UNAMA counted about 1,800 illegal armed groups tied to local power holders; these armed groups are present in all areas.
  - Terrorism and illegal armed groups are funded by the drug trade and other criminal activities.
  - Creating new effective security forces will take time; few Afghans are familiar with the discipline required to form a genuine security force operating according to the rule of law.
  - Imported models of security forces impose costs Afghanistan may not be able to sustain.
  - Afghanistan lacks control of its borders, which are regularly crossed by terrorists, drug traffickers, and other criminals who are often better armed and equipped than the Afghan police.
  - Limited investment in winning the war on terror and establishing the rule of law; warlords and drug barons have ruled by force for much of the past 25 years making reintroduction of a justice system difficult.
  - The drug economy produced narcotics whose value at the border in 1383 (2004/5) was estimated at 47% of non-drug GDP, providing anti-government forces with financial resources to resist the government.
  - Concern that public sector wage and operating costs for the security sector (particularly the ANA and ANP) will remain beyond the capacity of government to sustain given limited domestic revenues and competing claims from other sectors.
  - The sector will require continued and substantial support from the international Community for many years to come, covering both recurrent (wage and operations and maintenance) and capital costs.
  - Lack of qualified women within both services; administrative and civil service reforms have not been effective for the Ministry of Interior and Ministry of Justice.
  - Severe shortfall in available capital and human resources, particularly managerial capability.
  - Absence of civilian oversight of the security sector by the National Assembly has historically undermined accountability.
  - Provincial Reconstruction Teams (PRTs) have been effective at promoting security but suffer coordination weaknesses, prevalence of parallel command structures, and misalignment of reconstruction activities with community strategic needs; PRT resources often fall outside national budget and central government policy steerage.
- National Security Policy structure:
  - identifies two strategic areas central to achieving the government's security vision:
    - the National Security Strategy (covers all operational security activities);
    - the National Security Sector Reform Strategy (designed to build capacity of the Afghan security sector to manage its own security environment without external assistance).
  - Policy portrayed as: current situation (Part 1) → necessary strategies (Part 2) → transition to steady state security (Part 3).
- National Security Coordination:
  - The National Security Council (NSC) is the highest level security body, operates at cabinet level, is chaired by the President, and is charged with direction and coordination of all security ministries and security related policies.
  - NSC has established two strategic-level coordinating committees at the principals level with international representation: the SSR Coordination Committee (SSRCC) and the Security Coordination Forum (SCF).
  - SSRCC and SCF will be provided secretarial support by the Office of the National Security Council (ONSC) and are supported by a Deputies Committee (DC) to monitor inter-agency process and identify unresolved policy issues for the Principals Committees.
- Key sectoral programs addressing security constraints:
  - (1) national defense;
  - (2) internal security and law enforcement;
  - (3) disbandment of illegal armed groups;
  - (4) de-mining.

*Italic: IMF content unit _cr06195 - 1.   By  Jaddi  1389  (end-2010),  the  Government  will  strengthen  its  law  enforcement*

### PART 1

### PART 1 — CURRENT SITUATION

### Security sector objectives, organization, and programs
- Overall objective: promote security and stability in all regions of Afghanistan, including by strengthening Afghan capabilities, with support and close cooperation from the NATO-led International Security Assistance Force (ISAF), Operation Enduring Freedom (OEF) and their respective Provincial Reconstruction Teams (PRTs) through Jaddi 1389 (end-2010).
- Afghan National Police (ANP) and Afghan Border Police (ABP):
  - Target: a fully constituted, professional, functional and ethnically balanced ANP and ABP with a combined force of up to 62,000 by Jaddi 1389 (end-2010), able to meet the security needs of the country effectively and increasingly fiscally sustainable.
- Afghan National Army (ANA):
  - Target: a nationally respected, professional, ethnically balanced ANA that is democratically accountable, organized, trained and equipped to meet security needs and increasingly funded from Government revenue.
  - Expansion: support will continue to be provided to Afghanistan in expanding the ANA towards a ceiling of 70,000 personnel articulated in the Bonn talks; the pace of expansion is to be adjusted on the basis of periodic joint quality assessments by the Afghan Government and the international community against agreed criteria.
- Ministry of Defense (MOD) reorganization:
  - MOD reorganized under the authority of the Minister of Defense into an Executive Ministerial Office supported by two headquarters: the Headquarters of the Ministry of Defense (policy) and the Headquarters General Staff (operations).
  - The Executive Office of the Headquarters will receive, process, and coordinate formal staff actions between Headquarters, Ministry of Defense and Headquarters, General Staff; informal sharing of information within each headquarters is encouraged.
- MOD operational role: the ANA will assist the ANP and ABP for internal security operations and on the Afghan border.

Programs (security):
- PROGRAM 1: NATIONAL DEFENSE — build an ANA representative of the population, nationally oriented, well trained and equipped, professional, loyal to the constitution and increasingly fiscally sustainable.
- PROGRAM 2: INTERNAL SECURITY AND LAW ENFORCEMENT — Ministry of Interior (including ANP) aims to develop a professional, competent, well-trained, human rights-respecting, ethnically balanced police force that over the years will become fiscally sustainable and to emplacement good governance processes from national to district levels.
  - MoI prime policies enumerated include: (1) reinforcing the rule of law; (2) reinforcing the rule of law; (3) investigating corruption and crime; (4) fighting against illegal drugs; (5) disbanding illegally armed groups; (6) protecting human rights and gender equality; (7) combating sectarianism to establish a national police force; and (8) increasing the trust of the Afghan people in the ANA and the police and educate the public about the tasks and purpose of the ANP and the rights of the citizen in relation to the police.
- PROGRAM 3: DISBANDMENT OF ILLEGAL ARMED GROUPS (DIAG) — the purpose of DIAG is to disband illegally constituted groups that threaten human security and the rule of law to create a secure and stable environment for Afghan and international investment.
  - Government's Five-year Strategic Benchmark: All illegal armed groups will be disbanded by Jaddi 1386 (end-2007) in all provinces.
- PROGRAM 4: DE-MINING — Afghanistan party to the Antipersonnel Mine Ban Treaty as of Hut 10, 1381 (March 1, 2003); a Mine Action Program included in Public Investment Program 1384-1387 (2005/6 - 2008/9).
  - Benchmarks:
    - By Jaddi 1389 (end-2010), in line with Afghanistan’s Millennium Development Goals (MDGs) and Ottawa Convention obligations, the land area contaminated by mines and unexploded ordnance will be reduced by 70%.
    - All stockpiled anti-personnel mines will be located and destroyed by Jaddi 1386 (end-2007).
    - By Jaddi 1389 (end-2010) all unsafe, unserviceable, and surplus ammunition will be destroyed.

### Governance, rule of law, and human rights — context and constraints
- Context:
  - Significant progress in governance, justice and human rights protection since 2001.
  - New Constitution requires structures of governance that are Islamic, accountable, transparent and effective.
  - Principal institutions of the three Constitutional branches established with formation of both houses of the National Assembly and appointment of a new Supreme Court.
  - The Constitution gives the National Assembly significant powers to complement and balance the executive and judicial branches and links national policy-making to the people.
- Constraints (verbatim key points):
  - "The state does not yet have the capacity or resources to govern effectively."
  - "It mobilizes less domestic resources as a percentage of GDP than any other state in the world for which data are available."
  - Lacks trained people; management systems for people, information, money; and communications.
  - Uneven commitment to, ownership of, and leadership for public administration reform across government.
  - Justice sector is weak; corruption is pervasive in procurement, public works, service delivery, tax collection, and policing.
  - Illicit power holders mobilize resources from narcotics and other illicit sectors enabling private armed groups or bribes far exceeding official salaries.
  - Aid channeling issues: "Less than 25% of aid goes through the national budget," creating parallel delivery structures and pay scales that undermine government legitimacy and reduce public service capacity.
  - Public sees little connection between tax compliance and service delivery, undermining fiscal capacity building.
  - Insecurity and lack of trust in justice institutions: only an estimated 10% of legal matters are handled by state justice services.
  - Religious scholarship decline and centers of religious knowledge in disrepair.
  - Pervasive culture of impunity due to lack of an independent judiciary and professional law enforcement.

### Sectoral strategies, programs, and five-year strategic benchmarks (governance and justice)
- Program focus areas: (1) empowering the National Assembly; (2) justice and the rule of law; (3) religious affairs; (4) public administration reform; and (5) human rights, including women's rights.
- PROGRAM 1: EMPOWERING THE NATIONAL ASSEMBLY
  - Government actions: oversight of donor initiatives, establish physical and communications facilities; Secretariat to support development of functional directorates, draft principal responsibilities, develop regulations for operations, record keeping and security; archive previous parliamentary regulations and documents; facilitate training of National Assembly members and staff.
  - Benchmarks:
    - The National Assembly will be provided with technical and administrative support by the first quarter of 1385 (mid-2006) to fulfill effectively its constitutionally mandated roles.
    - The Afghanistan Independent Electoral Commission will have the high integrity, capacity and resources to undertake elections in an increasingly fiscally sustainable manner by Jaddi 1387 (end-2008), with the Government contributing to the cost of future elections as much as possible from its own resources.
    - A permanent civil and voter registry with a single national identity document will be established by Jaddi 1388 (end-2009).
- PROGRAM 2: JUSTICE & THE RULE OF LAW — Government will establish a sustainable, affordable system of justice available and acceptable to all Afghans in conformity with international standards.
  - Benchmarks:
    - By Jaddi 1389 (end-2010), the legal framework required under the Constitution, including civil, criminal, and commercial law, will be put in place, distributed to all judicial and legislative institutions, and made available to the public.
    - Functioning institutions of justice will be fully operational in each province of Afghanistan. The average time to resolve contract disputes will be reduced as much as possible.
    - A review and reform of oversight procedures relating to corruption, lack of due process and miscarriage of justice will be initiated by Jaddi 1385 (end-2006) and fully implemented by Jaddi 1389 (end-2010); reforms will strengthen the professionalism, credibility and integrity of key institutions of the justice system (the Ministry of Justice, the Judiciary, the Attorney-General's office, the Ministry of Interior and the National Directorate of Security).
    - Justice infrastructure will be rehabilitated; and prisons will have separate facilities for women and juveniles.
  - Program strategies: continue reform of basic legal framework; strengthen professional skills and administrative reforms; meet minimum infrastructure requirements via multi-purpose facilities; regularize roles of formal and informal justice mechanisms; increase public awareness and transparency.
- PROGRAM 3: RELIGIOUS AFFAIRS
  - Program Strategy: ensure equal participation of Afghans in religious life; consult Islamic teachings and scholarship on national development policy, governance institutions, and legal framework; protect Islamic institutions and improve religious infrastructure.
  - Actions include expanding and supporting madrassas, training mullahs and religious teachers, finalizing country-wide academic syllabus for Islamic studies, revitalizing advanced Islamic scholarship, strengthening Hajj management, and coordinating religious and general education policies with the Ministry of Education.
  - Benchmarks:
    - By Jaddi 1389 (end-2010), religious institutions and scholars, both men and women, will participate in structured ways on issues of national development policy.
    - By Jaddi 1389 (end-2010), concrete measures will be put in place to ensure the status and participation of women in Islamic activities, both locally and internationally.
- PROGRAM 4: PUBLIC ADMINISTRATION REFORM
  - Program Strategy: improve coordination between decision-making bodies; reform ministry structure; simplify administrative procedures; strengthen IARCSC role; phase out donor salary supplementation; adopt merit-based recruitment promoting gender equity and ethnic diversity; establish skills development program for civil servants; better manage international technical assistance to ensure skills transfer.
  - Five-year Strategic Benchmarks (verbatim):
    1. Government machinery (including the number of ministries) will be restructured and rationalized to ensure a fiscally sustainable public administration; the Civil Service will be strengthened; and civil service functions will be reformed to reflect core functions and responsibilities.
    2. A clear and transparent national appointments mechanism will be established within 6 months, applied within 12 months, and fully implemented within 24 months for all senior level appointments to the central government and the judiciary, as well as for provincial governors, chiefs of police, district administrators and provincial heads of security.
    3. By Jaddi 1385 (end-2006) a review of the number of administrative units and their boundaries will be undertaken with the aim of contributing to fiscal sustainability.
    4. Merit-based appointments, vetting procedures and performance-based reviews will be undertaken for civil service positions at all levels of government, including central government, the judiciary and police and to provide requisite support to build the capacity of the civil service to function effectively. Annual performance-based reviews will be undertaken for all senior staff (Grade 2 and above) starting by Jaddi 1386 (end-2007).
    5. The census enumeration will be completed by Jaddi 1387 (end-2008) and the complete results published.
    6. Reliable statistical baselines will be established for all quantitative benchmarks by the first quarter of 1386 (mid-2007) and statistical capacity built to track progress against them.
- PROGRAM 5: HUMAN RIGHTS, INCLUDING WOMEN'S RIGHTS
  - Program Strategy: Government will work with AIHRC and international donor community to develop and strengthen capacities to protect and promote human rights, including awareness training for civil servants; Ministry of Foreign Affairs to develop capacity to report to treaty bodies on implementation of international legal instruments signed and ratified by Afghanistan.

*Source: _cr06195 - PART 1*

### 1.   By Jaddi 1389 (end-2010): the Government's capacity to comply with and report on

### _cr06195 - 1.   By Jaddi 1389 (end-2010): the Government's capacity to comply with and report on

### Human rights commitments and institutional strengthening
- Government capacity will be strengthened to comply with and report on its human rights treaty obligations by Jaddi 1389 (end-2010).
- Security and law enforcement agencies will adopt corrective measures including codes of conduct and procedures aimed at preventing:
  - arbitrary arrest and detention,
  - torture,
  - extortion,
  - illegal expropriation of property,
  with a view to the elimination of these practices.
- The exercise of freedom of expression, including freedom of media, will be strengthened.
- Human rights awareness will be included in education curricula, and promoted among:
  - legislators,
  - judicial personnel and other Government agencies,
  - communities and the public.
- Human rights monitoring:
  - will be carried out by the Government and independently by the Afghan Independent Human Rights Commission (AIHRC),
  - the UN will track the effectiveness of measures aimed at the protection of human rights.
- The AIHRC will be supported in fulfilling objectives regarding monitoring, investigation, protection and promotion of human rights.

### Peace, justice and reconciliation
- The implementation of the Action Plan on Peace, Justice and Reconciliation will be completed by Jaddi 1387 (end-2008).

### Rights of women, children, and disabled people
- Government will continue to promote and protect women's rights through:
  - harmonizing the women's provisions in the major policy frameworks of the country,
  - improving access to justice,
  - raising awareness on child marriage, domestic violence, and women's employment.
- To strengthen protection of children's rights, Government will:
  - introduce laws and policies to protect children,
  - establish preventative measures against sexual abuse of children,
  - strengthen measures to counter child-trafficking.
- To promote and protect disabled people's rights, Government will:
  - work towards removal of barriers to full participation in society,
  - conduct advocacy and increase awareness of special needs,
  - promote hiring of disabled people in the work force.

### Economic and social development: overarching goal and context
- Overall economic goal: achieve “pro-poor growth” through high growth rates that directly impact those living in poverty.
- Required growth target: sustained real growth rate of 9% per year of licit GDP to compensate for economic contraction from elimination of the narcotics sector.
- Government role: deliver public goods, set policy and regulatory framework, enforce the law, contract and monitor interventions rather than directly providing services where possible.
- Five sectors of strategy:
  - infrastructure and natural resources,
  - education,
  - health,
  - agriculture and rural development,
  - social protection and economic governance and private sector development.
- Rationale: functioning infrastructure is essential to pro-poor growth, accelerating agricultural productivity, increasing trade efficiencies, supporting entrepreneurship, and attracting capital.

### Infrastructure priorities and constraints
- Identified critical infrastructure programs: national roads and road transport; air transport; energy and water; telecommunications; natural resources and mining; urban development and housing.
- Constraints and baselines:
  - Afghanistan is landlocked with one of the longest distances to a seaport, over 2,000 km, over harsh terrain.
  - Only six percent of the Afghan population has access to public electricity, concentrated in economically prosperous cities such as Kabul.
  - Tele-density: 1.6 telephones per 1,000 people, in 1382 (2003/2004).
  - Kabul population growth: grew by 50% from 1381 (2002/3) to 1383 (2004/5).
  - Air transport cannot respond adequately to international and domestic demand.
  - Road system described as one of the worst in the world; no rail system.
- Government responses:
  - accelerate project implementation,
  - complete pre-feasibility and feasibility studies,
  - provide technical assistance for all major programs through the National Program/Project Support Office (NAPSO),
  - factor Environmental Impact Assessments into all road projects,
  - outsource all functions possible to reap efficiencies,
  - reform Ministry of Public Works into a streamlined, modern bureaucracy with in-house capacity building.

### Program 1: National roads and road transport — strategic benchmarks
- Government's Five-year Strategic Benchmark: Afghanistan will have a fully upgraded and maintained ring road, as well as roads connecting the ring road to neighboring countries by Jaddi 1387 (end-2008), and a fiscally sustainable system for road maintenance by Jaddi 1386 (end-2007).
- Road maintenance system to include tools and weigh stations.

### Program 2: Air transport — strategic benchmarks
- By Jaddi 1389 (end-2010):
  - Kabul International Airport and Herat Airport will achieve full International Civil Aviation Organization compliance;
  - Mazar-i-Sharif, Jalalabad and Kandahar will be upgraded with runway repairs, air navigation, fire and rescue and communications equipment;
  - seven other domestic airports will be upgraded to facilitate domestic air transportation;
  - air transport services and costs will be increasingly competitive with international market standards and rates.
- Institutional actions:
  - implement far-reaching institutional reforms to the independent Civil Aviation Authority (CAA) and Ministry of Transport;
  - balance long-term capacity building with shorter-term capacity support via focused expatriate professional input and training to ensure ICAO compliance.

### Program 3: Power and water — strategic benchmarks
- By Jaddi 1389 (end-2010):
  - electricity will reach at least 65% of households and 90% of non-residential establishments in major urban areas, and at least 25% of households in rural areas;
  - at least 75% of the costs will be recovered from users connected to the national power grid.
- By Jaddi 1386 (end-2007):
  - a strategy for the development and the use of renewable energies will be developed.

*Source: Excerpt from the I-ANDS Summary Report (Part Three) provided in the content unit.*

### 2.   Sustainable water resource management strategies and plans, covering irrigation and

### 2.   Sustainable water resource management strategies and plans, covering irrigation and drinking water supply

### Major objectives and timelines
- Sustainable water resource management strategies and plans covering irrigation and drinking water supply will be developed by Jaddi 1385 (end-2006).
- Irrigation investments will result in at least 30% of water coming from large waterworks by Jaddi 1389 (end-2010).
- The Government will implement a comprehensive analysis of water supply and demand forecasts over the years to come (timing referenced within the full ANDS).

### Program strategy: power, water, and institutional goals
- Overcome current bottleneck in power supplies by:
  - First, cross-border power purchases.
  - Then, rehabilitation and establishment of major hydro-power schemes, some in cooperation with neighboring countries.
- Assure that power reaches rural areas and slums to support small enterprise development.
- The Ministry of Energy and Water will evolve into a fiscally disciplined institution that:
  - Effectively engages in cost recovery.
  - Provides reliable low cost electric service to all Afghan citizens.
  - Operates in an environmentally responsible manner, consistent with sound business practices.
- In water management, the strategy will:
  - Rehabilitate, sustainably develop, and utilize water resources and irrigation infrastructure in accordance with international environmental norms and equitable access for all Afghans.
  - Establish a river basin management system to collect data for planning, development and management of water resources at a local level.
  - Develop multipurpose water management infrastructure to enable water conservation, power generation, and resource protection.
  - Promote irrigation, integrated water resource management and broader communications access to market based information to increase productivity and market integration in synergy with community-level investments.
- For both power and water, enhancing capacity to maintain infrastructure and manage services is identified as essential.

### Institutional and regulatory measures
- Establish a river basin management system for local-level planning, development and management of water resources.
- Strengthen the Ministry of Energy and Water as a fiscally disciplined institution with cost recovery and reliable service obligations.
- Coordinate water management with international environmental norms and equitable access principles.

### Linkages with other programs and sectoral objectives
- Multipurpose water management infrastructure is linked to power generation and resource protection objectives.
- Irrigation and integrated water resource management are coordinated with communications access to market-based information to support productivity and market integration.
- Urban development benchmarks (related to water supply and sanitation):
  - By Jaddi 1389 (end-2010): investment in water supply and sanitation will ensure that 50% of households in Kabul and 30% of households in other major urban areas will have access to piped water.

### Key numeric targets and benchmarks (preserved exactly)
- Development of sustainable water resource management strategies and plans by Jaddi 1385 (end-2006).
- At least 30% of water from large waterworks by Jaddi 1389 (end-2010) as a result of irrigation investments.
- By Jaddi 1389 (end-2010): investment in water supply and sanitation will ensure that 50% of households in Kabul and 30% of households in other major urban areas will have access to piped water.

*Source: I-ANDS SUMMARY REPORT (excerpt)._cr06195 - 2.   Sustainable water resource management strategies and plans, covering irrigation and drinking water supply*

### 2.   By Jaddi 1389 (end-2010), the media will be protected as independent, pluralistic and

### 2. By Jaddi 1389 (end-2010), the media will be protected as independent, pluralistic and accessible to Afghan women and men throughout the country, thereby promoting an open and democratic society.

### Media and public access
- By Jaddi 1389 (end-2010), the media will be protected as independent, pluralistic and accessible to Afghan women and men throughout the country, thereby promoting an open and democratic society.
- Ports will be promoted, with special emphasis on creating access for children, women and the disabled.

### Health status and priorities
- The health status of the Afghan population, particularly women and children, remains among the worst in the world.
- Under-five mortality rate in 1381/82 (2003) was 230 deaths per thousand live births.
- The average Afghan woman has 6.8 children during her reproductive life, compared with the South Asian average of 3.3.
- High maternal mortality ratio (MMR) reflects the low status of women, poor infrastructure, and a barely functioning curative health care system.
- Central health objectives: reducing child mortality, improving maternal health, combating tuberculosis, malaria, HIV/AIDS and other diseases as part of Afghanistan's efforts to achieve the MDGs.

### Program Strategy: Basic Package of Health Services (BPHS)
- The BPHS will form the core of service delivery in all primary health care facilities and promote redistribution of health services by providing equitable access, especially in underserved areas.
- The BPHS is offered as four standard types: outreach by community health workers; outpatient care at basic health centers; inpatient services at comprehensive health centers; and district hospitals.
- The package focuses on conditions that affect women and children, provides basic services at low cost, and aims to provide health services to all Afghans, especially the poor and those in remote and rural areas.

### Government's Five-year Strategic Benchmarks (Health)
- Program 1: EXTENDING THE BASIC PACKAGE OF HEALTH SERVICES
  - By Jaddi 1389 (end-2010), the Basic Package of Health Services will be extended to cover at least 90% of the population.
  - By Jaddi 1389 (end-2010), maternal mortality will be reduced by 15%.
  - By Jaddi 1389 (end-2010), full immunization coverage for infants under-5 for vaccine preventable diseases will be achieved and their mortality rates reduced by 20%.
- Program 2: EXTENDING THE ESSENTIAL PACKAGE OF HOSPITAL SERVICES
  - By Jaddi 1389 (end-2010), the EPHS will be implemented in 50% of provincial and regional hospitals.
  - Community boards will be established in 50% of all provincial and regional hospitals.
  - The proportion of district and provincial hospitals providing good quality emergency obstetric care will be increased to 80%.
- Program 3: NATIONAL COMMUNICABLE/NON-COMMUNICABLE DISEASES CONTROL
  - Low prevalence of HIV positive cases (<0.5%) in the population will be maintained.
  - Malaria morbidity will be reduced by 50% and malaria mortality will be reduced by 80%.
  - Direct Observed Treatment-Short Course (DOTS) population coverage to 100% by Jaddi 1385 (end-2006).
  - At least 70% of infectious TB cases will be detected and at least 85% of those cases will be cured.

### Health sector human resources
- By Jaddi 1389 (end-2010), suitably qualified, appropriately skilled, balanced and motivated staff for the health sector will be equitably deployed throughout Afghanistan to deliver the BPHS and EPHS.
- Health workforce employment mechanisms:
  - Approximately 8,500 will be employed by NGO grantees to provide community health services utilizing a contracting mechanism.
  - The Ministry of Public Health will directly employ 12,775 persons utilizing a transparent competitive process as part of PAR.
- Institutional measures:
  - Ministry of Public Health has established a Human Resources Department at General Directorate level, a system of National Health Worker Registration, a Human Resources Database, and a National Testing and Certification Examination Process.
  - Upgraded pre-service Nursing and Midwifery programs and standards for accreditation of training institutes and programs.
  - Continuing education and retesting will increasingly be required for health workers.

### Constraints (Health)
- Low status of women, poor infrastructure, and a barely functioning curative health care system.
- Special logistical and input requirements mean some diseases must be managed outside the BPHS and EPHS structure.
- Implementation of EPHS requires successful and transparent completion of the PRR process, homogeneous staffing patterns, standardized systems for supplies and equipment, training, monitoring, and supportive supervision.

### Agriculture and rural development: context and objectives
- Agriculture constitutes over 50% of the licit Afghan economy and provides employment to nearly two-thirds of the workforce.
- Only 12% or 7.9 million hectares of the country's total land area is classified as arable.
- Nearly 75% of the arable area is concentrated in the north, northeast, and western regions.
- Of the total arable area, not more than half is actually cultivated annually, mainly because of water availability.
- Total cereal production increased by 82% in 1380/81 (2002) and by a further 50% in 1381/82 (2003).
- Decades of war led to substantial underinvestment in rural areas and destruction of rural infrastructure; production of fruits, vegetables and livestock products has increased since 1380 (2001/02) but will take longer to reach pre-conflict levels.

### Government's goal and program strategy (Agriculture and Rural Development)
- Goal: achieve pro-poor growth in rural areas by enhancing licit agricultural productivity, creating incentives for non-farm investment, developing rural infrastructure, and supporting access to skills development and financial services.
- To overcome constraints, the Government will engage in investment programs in:
  1. agriculture;
  2. rural infrastructure including irrigation water management;
  3. community development;
  4. rural financial services; and
  5. rural enterprise development.
- Actions:
  - Increase investments in agricultural sector (including horticulture and livestock) and promote agri-businesses and rural non-farm enterprises.
  - Develop land titling and registry system to keep appropriate records of ownership.
  - Improve food diversity, real incomes and food security.
  - Train farmers in participatory methods and agro-economic survey techniques; rehabilitate regional research and extension centers.
  - Put in place laws and regulations for quality standards, inspection and certification.
  - Develop rural credit institution built on a network of farmers' associations.
  - Rehabilitate traditional and formal irrigation systems; facilitate community-based management of irrigation; encourage Water Users' Associations; promote water harvesting and watershed management; improve information systems on water availability; promote efficient land and water use practices; undertake integrated water resources management via the river basin approach.
  - Promote targeted infrastructure, vocational training, and good local governance through community-led institutions; priority investments include drinking water, sanitation, small-scale irrigation, roads and structures, schools, clinics, village electrification, mills and community centers.

### Government's Five-year Strategic Benchmarks (Agriculture & Rural Development)
- Program 1: AGRICULTURE
  - By Jaddi 1389 (end-2010), the necessary institutional, regulatory and incentive framework to increase production and productivity will be established to create an enabling environment for legal agriculture and agriculture-based rural industries.
  - Public investment in agriculture will increase by 30 percent.
  - Particular consideration will be given to perennial horticulture, animal health and food security by instituting specialized support agencies and financial service delivery mechanisms, supporting farmers' associations, branding national products, disseminating timely price and weather-related information and statistics, providing strategic research and technical assistance, and securing access to irrigation and water management systems.
- Program 2: RURAL INFRASTRUCTURE INCLUDING IRRIGATION WATER MANAGEMENT
  - The efficiency of irrigation water management, participatory decision-making and institutional reform, and environmental management will be increased and more equitable distribution of benefits across irrigation systems and across different agro-environments will be ensured.
  - Access to safe drinking water will be extended to 90% of villages, and sanitation to 50%; and road connectivity will reach 40% of all villages, increasing access to markets, employment and social services.
  - 47% of villages will benefit from small-scale irrigation; and livelihoods of at least 15% of the rural population will be supported through the provision of 91 million labor days.
- Program 3: COMMUNITY DEVELOPMENT
  - By End 1389 (end-2010), rural development will be enhanced comprehensively for the benefit of 19 million people in over 38,000 villages; this will be achieved through the election of at least a further 14,000 voluntary community development councils in all remaining villages, promoting local governance, and community empowerment and rural enterprises.
- Program 4: RURAL FINANCIAL SERVICES
  - By Jaddi 1389 (end-2010), a total of 800,000 households (22% of all Afghanistan's households) will benefit from improved access to financial services.
- Program 5: RURAL ENTERPRISE DEVELOPMENT
  - By Jaddi 1389 (end-2010), a policy and regulatory framework will be developed to support the establishment of small and medium rural enterprises, and institutional support will be established. These programs are to be facilitated through provincial institutions established in all 34 provinces to facilitate new entrepreneurial initiatives by rural communities and organizations.

### Social protection: context, objectives and programs
- Goal: increase the capacities, opportunities and security of extremely poor and vulnerable Afghans through a process of economic empowerment to reduce poverty and increase self-reliance.
- Government's Five-year Strategic Benchmark (poverty and hunger)
  - By Jaddi 1389 (end-2010), in line with Afghanistan's MDGs, the proportion of people living on less than US$1 a day will decrease by 3% per year.
  - By Jaddi 1389 (end-2010), the proportion of people who suffer from hunger will decrease by 5% per year.
- Program Strategy:
  - Develop appropriate policy and regulatory framework and institutional facilities to enable rural communities to bring existing farm and non-farm livelihoods into the formal sector.
  - Facilitate skills and vocational training, institutional linkages, access to financial services and access to national markets.
  - Provide skills development and vocational training through the NSP; NABDP will identify and promote potential local and regional rural industries and enterprises.
  - Social protection policies and interventions will provide support to the critically poor and help vulnerable Afghan groups better manage risks; targeted investments required for those below the poverty line, those not benefiting from community-based and self-help groups, and groups in remote areas.
- Programs to enable social protection:
  1. humanitarian and disaster response;
  2. support to vulnerable women;
  3. support to unemployed youth and demobilized soldiers;
  4. supporting the disabled; and
  5. supporting refugees and displaced persons.
- Constraints:
  - Two decades of civil war have strained traditional informal systems of support and increased the number of dependents in society, creating an urgent need to extend protection to those outside existing social networks.

*I-ANDS SUMMARY REPORT — extracted content from the provided PDF content unit.*

### 2.   By Jaddi 1389 (end-2010), An effective system of disaster preparedness and response

### 2.   By Jaddi 1389 (end-2010), An effective system of disaster preparedness and response will be in place.

### Disaster preparedness and response — Program Strategy
- Establish a national disaster preparedness and response capacity to deal with slow and quick-onset disasters from natural or man-made causes.
- Consider a national food security reserve to support pre-positioning of food and other emergency aid.
- Develop self-targeting procedures to minimize errors of exclusion in food aid.
- Focus on employment-generation capacities through public works as a means of effective utilization and targeting of food aid.
- Use communication and dissemination as key tools in preparedness; ensure disaster information, particularly early warning information, is universally disseminated at the shura, district, provincial and national levels.

### Benchmarks and targets
- By Jaddi 1389 (end-2010), the number of female-headed households that are chronically poor will be reduced by 20%, and their employment rates will be increased by 20%.

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### Gender equality, vulnerable groups, refugees, and reintegration

### Gender mainstreaming — Program Strategy
- Gender mainstreaming is the government's main strategy for attaining gender equality goals.
- Promote women's advancement as a shared obligation across government sectors, institutions, and individuals.
- Institutionalize affirmative steps to ensure women's participation at all levels of policy and decision-making and create opportunities to develop leadership capacities.
- Establish local political advocates to champion implementation.
- Government's Five-year Strategic Benchmark: By Jaddi 1389 (end-2010), employment opportunities for youth and demobilized soldiers will be increased through special programs.

### Programs for vulnerable women, youth, demobilized soldiers, and the disabled
- PROGRAM 2: SUPPORT TO VULNERABLE WOMEN
  - Program Strategy: Promote capacity building, knowledge enhancement, and participation of youth in reconstruction and rehabilitation.
  - Set up a centre for employment of youth and juveniles; support scientific, cultural, and arts rights of young innovators.
  - Develop a national youth development policy and enhance coordination among government departments, civil foundations/NGOs, and international organizations.

- PROGRAM 3: SUPPORT TO UNEMPLOYED YOUTH AND DEMOBILIZED SOLDIERS
  - Government will coordinate programs addressing problems faced by young people within key national programs.

- PROGRAM 4: SUPPORT TO THE DISABLED
  - Program Strategy: Create a barrier-free society based on participation, integration and equalization of opportunities as defined by the United Nations.
  - Prioritize enabling disabled people to take charge of their lives by removing barriers to full participation.
  - By Jaddi 1389 (end-2010), increased assistance will be provided to meet the special needs of all disabled people, including their integration in society through opportunities for education and gainful employment.

### Refugees and returnees
- PROGRAM 5: REFUGEES AND RETURNEES
  - The full voluntary return and reintegration of all Afghan refugees is a priority.
  - Current Tripartite Agreements on voluntary repatriation with Pakistan and Iran will expire during the course of 1384/85 (2006); Government will negotiate their extension under mutually acceptable terms and conditions.
  - Future planning of camp closures and consolidation will be based on mapping and analysis of camps and settlements with clear assessment criteria (e.g., security, prospects for return, potential for self-reliance).
  - All camp closures, consolidation, and evictions should respect the voluntary character of return.
  - By Jaddi 1389 (end-2010), all refugees opting to return and internally displaced persons will be provided assistance for rehabilitation and integration in their local communities; integration will be supported by national development programs, particularly in key areas of return.

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### Sector Eight: Economic Governance & Private Sector Development — Goals and Context
- Goal: Improve management and accountability of public expenditures to increase effective utilization of resources through the budget; create conditions for a dynamic, competitive private sector to contribute to economic growth, employment creation and poverty reduction.
- Context: Significant progress in macroeconomic stability; private sector growth largely driven by international reconstruction and large-scale imports; telecommunications an exception. Exports often re-exports to Pakistan or Iran; imports largely financed by international aid and the drug economy.
- Constraints: Need to strengthen public finance management systems and absorption capacity; unpredictable external budget support undermines medium term fiscal framework and fiscal discipline; large informal economy limits government revenues, constrains long-term growth and formal sector development.

### Overarching strategy to overcome constraints
- Implement investment programs in:
  1. Putting in place a Medium Term Fiscal Framework.
  2. Enhancing revenue collection.
  3. Enhancing public finance management.
  4. Improving the investment climate.
  5. Facilitating trade.
  6. Strengthening financial services and markets.

---

### Program 1: Putting in place a Medium Term Fiscal Framework (MTFF)
- Government's Five-year Strategic Benchmark:
  - The MTFF guides allocation of all budgetary resources from 1387 (2008/9).
  - Government will prepare a medium term expenditure framework for the 1388 (2009/10) budget and subsequent budgets.
- Strategy:
  - Move towards a rolling five-year MTFF, supported by an annual national budget that is:
    - (i) fully consistent with the policy orientation of the I-ANDS;
    - (ii) fiscally sustainable;
    - (iii) comprehensive and integrated (recurrent and capital spending; core and external budgets);
    - (iv) disciplined (limiting spending to resources available);
    - (v) realistic and predictable (revenue and expenditure forecasts over the medium term);
    - (vi) cost efficient in execution, through effective procurement;
    - (vii) increasingly focused on budgetary outcomes and performances;
    - (viii) transparent and accountable (confirmed by audit).

---

### Program 2: Enhancing revenue collection
- Government's Five-year Strategic Benchmarks:
  - Afghanistan’s total domestic budgetary revenue, equivalent to 4.5% of estimated legal GDP in 1383 (2004/05), will steadily increase and reach 8% of GDP by 1389 (2010/11).
  - The ratio of revenue to estimated total recurrent expenditures, including estimated recurrent expenditures in the core and external development budgets, is projected to rise from 28% in 1383 (2004/05) to an estimated 58% in 1389, resulting in a continuing need for (1) external assistance to the Core Budget and (2) increasing cost-effectiveness of assistance that funds recurrent expenditure through the external development budget.
- Strategy:
  - Current domestic revenue collection amounts to about 5.4% as a percentage of official GDP and covers some 50% of the current operating budget.
  - To enhance revenues, focus on:
    1. The largest potential taxpayers for greatest returns over the next five years.
    2. Reducing complexity and streamlining procedures to reduce compliance costs for tax and customs; implement new regulations and procedures supporting enacted customs and tax legislation.
    3. Maintaining strong levels of non-tax revenue through licensing of government natural resources (bandwidth, airspace, minerals, gas).
    4. Continuing reform of the Mustoufiat offices (Provincial offices of the MoF), including reorganization along functional lines reporting to the Treasury and General Presidency of Revenue.
    5. Strengthening customs collection and enforcement through enforcement of the new customs code, simplifying the tariff regime, modernizing customs administration, and improving border controls.

---

### Program 3: Enhancing Public Finance Management (PFM)
- Government's Five-year Strategic Benchmark:
  - By Jaddi 1386 (end-2007), ensure improved transparent financial management at central and provincial levels through establishing and meeting benchmarks for financial management agreed with and monitored by the international community, including those in the anticipated Poverty Reduction Growth Facility (PRGF).
  - Convince donors to increase the share of total external assistance to Afghanistan that goes to the Core Budget from 19.5% in 1384 (2004/5), to at least 50% by 1390 (2010/11).
- Program Strategy:
  - Improve PFM systems as a prerequisite to direct budget support from donors.
  - PFM systems must be: (i) affordable; (ii) allocate funding according to I-ANDS priorities; (iii) sustainable; (iv) efficient (value for money and service delivery); (v) transparent and accountable.
  - Specific actions:
    - Improve Afghanistan Reconstruction Fund (ARTF) eligibility ratio.
    - Adopt an action plan to strengthen PFM through Cabinet, including expanding functionalities and coverage of AFMIS.
    - Reform expenditure processing and accounting regulations per the PFEM Law.
    - Implement an annual internal audit plan under the MoF for the whole of government.
    - Strengthen external and internal audit capacities at central, provincial and district levels.
    - Upgrade electronic financial management systems for efficient cash management, timely payments and disbursements, and accurate financial accounting.
    - Enhance transparency in reporting to decision-makers and the public via the national assembly.

---

### Program 4: Strengthening the investment climate
- Government's Five-year Strategic Benchmark:
  - All legislation, regulations and procedures related to investment will be simplified and harmonized by Jaddi 1385 (end-2006) and implemented by Jaddi 1386 (end-2007).
  - New business organization laws will be tabled in the National Assembly by Jaddi 1385 (end-2006).
  - Government's strategy for divestment of State-Owned Enterprises will be implemented by Jaddi 1385 (end-2009).
- Program Strategy:
  - Improve access to key productive factors: land, skilled labor, and finance.
  - Prioritize investments in energy, roads, airports and border facilities; invest in short- and medium-term human capital development to align education and skills with market requirements.
  - Make the regulatory system predictable, transparent and simple; reform labor policies to support private sector concerns.
  - Improve land titling and strengthen commercial courts to protect property rights and enforce contracts.
  - Develop strategies to improve conditions for key industries (import-substituting activities, traditional exports, construction, infrastructure, utilities, trade-related services).
  - Liquidate and/or privatize SOEs that provide services better delivered by the market.

---

### Program 5: Trade
- Program Strategy:
  - Establish an open and transparent business environment, systematically addressing trade and investment barriers.
  - Streamline transit and customs procedures and documents to harmonize with trading partners.
  - Pursue general trade liberalization and steps to accede to the WTO.
  - Revise existing transit agreements and negotiate new transit agreements; strengthen capacity to implement and monitor agreements.
  - Encourage private sector engagement in trade facilitation.
  - Modernize customs: improve operational efficiency, curb corruption, move towards full computerization, develop transparent procedures, improve border infrastructure and provide equipment such as port handling and scanners.

- Government's Five-year Strategic Benchmarks:
  1. By Jaddi 1389 (end-2010), Afghanistan will gain accession to the WTO.
  2. By Jaddi 1389 (end-2010), exports benefiting from preferential agreements with US, EU, Japan, Canada, and India will increase.

*Source: _cr06195 - 2.   By Jaddi 1389 (end-2010), An effective system of disaster preparedness and response*

### 3.   By Jaddi 1389 (end-2010), Government will reduce average import times by 20

### 3.   By Jaddi 1389 (end-2010), Government will reduce average import times by 20 days, and export times by 15 days.

### Program 6: Financial Services and Markets
- Government Five-year Strategic Benchmarks:
  - Internationally accepted prudential regulations will be developed for all core sectors of banking and non-bank financial institutions by Jaddi 1386 (end-2007).
  - The banking supervision function of Da Afghanistan Bank will be further strengthened by Jaddi 1386 (end-2007).
  - Re-structuring of state-owned commercial banks will be complete by Jaddi 1386 (end-2007).
  - State-owned banks that have not been re-licensed are liquidated by Jaddi 1385 (end-2006).
- Commitments and focus areas:
  - Continue to improve the legal, regulatory and policy framework for the financial sector while strengthening human capacity and institutions for implementation.
  - Privatize the state-owned commercial and development banks.
  - Enhance access to financial services, particularly in rural areas; expand microfinance with emphasis on access for the poor and women.
  - Develop financial sector infrastructure, including domestic and international payment systems.
  - Create an enabling environment for non-bank financial institutions and markets (insurance, leasing, mortgage financing).
  - Strengthen financial supervision for formal and informal financial sectors.
- Indicators of progress on banking sector reform:
  - (i) Adoption and implementation by the MoF of a plan for the resolution of the re-licensed state-owned commercial banks (to include dates for appointment of management teams and re-capitalization and incorporation plans).
  - (ii) Adoption of a specific asset management strategy (including liquidation procedures, asset disposal, and resource utilization) for the unlicensed banks.
  - (iii) Issuance of regulations for the registration/licensing and supervision of insurance and other non-banking financial institutions.

### Budget Management and I-ANDS Resource Requirements
- Strategic aim:
  - Strengthen the central role of the national budget as the instrument of government policy making.
- Short- to medium-term focus:
  - Improve financial management and accountability.
  - Engage in aggressive revenue mobilization to limit dependency on foreign aid to fund the operating budget.
  - Fund wage bill by 1389 (2010/11) and the full recurrent budget by 1393 (2014/5).
- Fiscal management principles:
  - Support for revenue collection must be complemented by aggregate fiscal discipline in setting expenditure levels, with implications for staffing establishments and pay and grading structures.
- Budget characteristics Government seeks:
  - Realistic; grounded in sound sector strategies; based on measured and unambiguous budget management guidelines; increasingly involving provinces and districts in budget formulation and execution (based on a review of functional assignments to be conducted in 1385 (2006)); transparent; timely information to decision-makers; accountable through government internal and external audits.

### Mapping the SAF Costing to the I-ANDS Framework (Resource needs)
- SAF-derived provisional costing:
  - The SAF model estimated that US$ 27.6 billion dollars would need to be committed over seven years.
  - Two adjustments to SAF figures were made: (1) SAF under-estimated security sector costs; (2) figures for the operating budget and domestic revenue in SAF were adjusted based on the MTFF.
  - The adjusted five-year mapped figure provided: US$19.829 billion.
- Caveats on the US$19.829 billion figure:
  - Donors did not always allocate resources according to SAF priorities (e.g., SAF estimated at least 50% of external funding should go towards major and rural infrastructure but a significantly lower percentage was actually spent in this sector).
  - SAF estimates did not always accurately estimate needs.
  - Cost of service delivery has often deviated from SAF's estimates.
- Government expectations and actions:
  - As absorption capacity increases and multi-year projects mature, expenditures will increase; donors must maintain external pledges at least at SAF levels and convert pledges into commitments and disbursements without undue delays.
  - Government will strengthen capacity to prepare project documentation and manage project implementation with cost effectiveness, transparency and accountability.
- Prioritization within I-ANDS:
  - If costs of meeting all policy framework targets exceed available resources, Government will prioritize and sequence investments based on growth and poverty reduction criteria.
  - Costing of service delivery benchmarks will assess investment and recurrent costs based on international and national experience.
  - Annual targets will be set in the full ANDS; many will be monitored annually (draft targets presented in Volume II of the I-ANDS).

### Enhancing Aid Effectiveness
- Current context:
  - Over 90% of all national development resources are currently provided by international cooperation partners.
  - Afghanistan is almost certainly going to require the US$4 billion per year (approximately) envisaged by SAF for the next five years if the goals in the I-ANDS and the Afghanistan Compact are to be achieved.
- Principles for donor alignment and aid quality:
  - Donors should base programs on the I-ANDS and fund them within the framework of the national core budget to eliminate parallel delivery systems and enhance cost effectiveness.
  - Donors should limit use of top-up payments that Government cannot sustain, rationalize technical assistance, and develop performance standards for aid delivery.
  - Donors should help build Government capacity by supporting anti-corruption measures, improved fiduciary management, and capacity building.
- Government commitments:
  - Strengthen institutional capacities in aid coordination through the national budget and management of data and information for policy making.
  - Progressive development of capacity will strengthen state governance and justify increased international assistance through Government channels.
  - Expectation that as current donor-funded programs conclude, new donor programs and funding will align with I-ANDS strategic priorities over time.

### Coordination and Monitoring
- I-ANDS monitoring purpose:
  - Standardize indicators that track progress towards Afghanistan's key development goals; allow uniform, regular reporting to Government, National Assembly, donors, and civil society.
  - Ensure policy coherence and complementarity of implementation across pillars and sectors.
- Institutional arrangements:
  - High level focal point: Presidential Oversight Committee.
  - Consultative Groups (CGs) will be reformed to align with I-ANDS structure; will coordinate implementation of I-ANDS programs within sectoral purview and assist in national budget preparation.
  - A temporary ANDS Working Group will support the Oversight Committee during development of the ANDS and then evolve into a small support unit for the Oversight Committee.
  - CGs will work with sectoral ministries and collate data on annual indicators for the support unit.
  - Information and analysis from sub-national monitoring and coordination mechanisms (Community and Provincial Development Councils, NGOs, Provincial Reconstruction Teams, private sector, civil society and research units) will contribute.
- Joint Coordination and Monitoring Board (JCMB):
  - Will monitor firm political, security and financial commitments of the Afghanistan Compact (joint commitment by Government and International Community).
  - JCMB will be co-chaired by a senior Afghan Government official appointed by the President and by the Special Representative of the UN Secretary-General for Afghanistan.
  - The Board will have a small secretariat to work alongside the I-ANDS Working Group and, after the full ANDS is prepared, alongside the OSC support unit.
  - The Board will review implementation of the Afghanistan Compact and take corrective action as appropriate.
- Annual Afghanistan Development Forum:
  - Will bring together government and international cooperation partners and relevant stakeholders to assess implementation of the I-ANDS and benchmarks for the Compact, ensuring adequate funding and coordination.

### Consultations towards the Development of the Full ANDS
- Broad consultation commitments:
  - Preparation of I-ANDS involved substantial consultation over a one-year period; Government will widen consultations to prepare the full ANDS.
  - Full ANDS to be based on more comprehensive discussions in 1385 (2006/7) and beyond with line ministries, National Assembly, sub-national administrative units, donors, UN agencies, NGOs, civil society, communities and private sector.
- Data and timeline commitments:
  - In 1385 (2006/7), focus on data collection and initiation of comprehensive consultation at provincial, district and village levels.
  - In 1386 (2007/8), review resulting data with stakeholders and complete the full ANDS by Jaddi 1386 (end-December 2007).
- Five-phase consultation process:
  - Phase One (Months 1-3): Policy Review & Costing — review policies and programs reflected and proposed in I-ANDS Volumes I and II and full costing of those programs.
  - Phase Two (Months 4-6): Initiation of data assembly and integration.
  - Phase Three (Months 7-12): Data research and consultations with CDCs, the National Assembly and Sub-national administrations, and budgetary review.
  - Phase Four (Months 13-18): Data Assembly, review and finalization of the 1386 budget.
  - Phase Five (Months 19-23): Final consultations and presentation of the ANDS.
- Outputs and process:
  - Full ANDS will begin with a review of I-ANDS Volumes I and II and a full costing.
  - Government will present a draft ANDS for the years 1387-1391 (2008/9-2012/13) for discussion, incorporate recommendations, and publish the final ANDS by 10 Jaddi 1386 (end-December 2007).

*Source: _cr06195 - 3.   By Jaddi 1389 (end-2010), Government will reduce average import times by 20*

### CONCLUSION

### CONCLUSION

### National context and vision
- Since 1380 (2001), Afghanistan has emerged from conflict and "stands today as a beacon of hope."
- Vision: consolidate peace and stability through just, democratic processes and institutions, and reduce poverty and achieve prosperity through broad based and equitable economic growth.
- The Government must "plan with vision, lead with strength, and invest with wisdom."
- Recognition of international partnership and generosity, with the caution that such generosity "cannot last forever" and the acknowledgment of "the costs of premature disengagement from Afghanistan."
- Renewed partnership with the international community through this strategy and the Afghanistan Compact; work begun in Bonn more than four years ago remains to be completed.

### Security strategy
- Aim: deliver a state that has the legitimate monopoly on the use of force and uses its power to protect the national and human rights of all Afghans.
- Priorities:
  - Ensure all security branches work together.
  - Build a national army, police force and intelligence services capable of providing security and upholding the law.

### Governance strategy
- Aim: nurture a stable constitutional, democratic unitary state where Government is accountable to the people.
- Strengthen public sector capacity at national and sub-national levels to deliver services.

### Economic and social strategy
- Aim: create prosperity, reduce poverty, and eliminate narcotics from Afghanistan by creating an enabling environment for legal and equitable, private sector led growth.
- Priority investments: electricity, roads, irrigation, education, health, private sector promotion, and social protection.
- Expected targeted economic growth sources: agriculture, mining, the use of state assets and transit trade.

### International support, goals, and timeframes
- Strategy supported by international community through a set of commitments.
- The achievement of Afghanistan's 15-year Millennium Developments Goals will be supported by the United Nations and the international community.
- In the next five years, aim to move towards those goals by achieving the benchmarks in the Afghanistan Compact with full political and financial support of the international community.
- The strategy requires alignment of Government and international community funding and strategies behind the stated priorities of the I-ANDS.

### Consultation, participation, and social compact
- The strategy is presented to the people of Afghanistan for consultation: "Only through this consultation can we ensure this strategy is the right one for Afghanistan. As the prophet Muhammad (peace be upon him) has said, “My community will never agree upon an error.”"
- Invitation to:
  - Elected representatives, men and women who have sacrificed, learned and spiritual leaders, elders, mothers, scholars, intellectuals, those living in the land and refugees, civil society representatives, businessmen and traders, civil servants, technocrats, farmers, artisans, artists, authors, and all others to study, discuss, join hands, and offer ideas to improve and implement the plan.
  - International friends of Afghanistan to participate in this effort.
- Call for a 'Social Compact' of a joint vision and strategy to achieve goals; the full ANDS will help formulate such a Social Compact to complement the 'Afghanistan Compact'.

### Moral appeal and closing
- Renewed request for sacrifices from the Afghan people, this time to "work together for a better future for themselves and their children."
- Final exhortation: "Let us all join hands to pursue this noble effort in earnest."

*Produced by the Government of the Islamic Republic of Afghanistan*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06195.pdf_