Ands) Final Report

Government of the Islamic Republic of Afghanistan

Ministry of Economy

Afghanistan National Development Strategy (ANDS) FINAL REPORT

June 2014

I General Directorate of Policy & Result Based Monitoring

Government of the Islamic Republic of Afghanistan

Ministry of Economy

Afghanistan National Development Strategy (ANDS)

FINAL REPORT

June 2014

General Directorate of Policy & Result Based Monitoring II

Foreword by the President

III

Foreword by the Minister of Economy

TABLE OF CONTENTS

Titles Pages Foreword by the President III Foreword by Minister of Economy IV Table of Contents V – VII Executive Summery 1 CHAPTER ONE 13 Macroeconomic Updates 13 . Real Sector 13 13 . Gross Domestic Products (GDP) 13 . Nominal GDP Growth Rate 14 . GDP per Capita 15 . GDP Composition Fiscal Sector 16 16 . Government Revenue 18 . Expenditure Monetary Sector 19 19 . Monetary Inflation . Currency Exchange Rate 19 20 . Foreign Currency Auction 20 . Commercial Banking 21 . Debts 22 . Foreign Direct Investment 22 . Currency In Circulation 23 . Trade Balance CHAPTER TWO 24 24 Details of the Report Security Sector 24 25-31 . Outcome 1 – Outcome 9 31 . Challenges

. Suggestions 31 Governance Sector 32 33-44 . Outcome 1 – Outcome 18 Justice Sector 45 45-51 . Outcome 1 – Outcome 9 Infrastructural Development & Natural Resources Sector 52 Energy Sub-sector 53 54-57 . Outcome 1 – Outcome 5 58 . Challenges 58 . Suggestions and Recommendations Water Resources Sub-sector 59 59-62 . Outcome 1 – Outcome 3 64 . Key findings across this sector 64 . Suggestions and Recommendations Transportation and Civil Aviation Sub-sector 65 65-72 . Outcome 1 – Outcome 8 73 . Challenges 73 . Recommendations Telecommunication and Information Technology Sub-sector 75 75-78 . Outcome 1 – Outcome 4 78 . Key findings 79 . Suggestions and Recommendations Urban Development Sub-sector 80 80-85 . Outcome 1 – Outcome 5 85 . Key findings 85 . Recommendations Mining Sub-sector 86 86-88 . Outcome 1 – Outcome 4 . Challenges 89 89 . Key findings 89 . Recommendations VI

Education Sector 90 91-105 . Outcome 1 – Outcome 9 105 . Main findings 106 . Challenges 106 . Recommendations Health and Nutrition Sector 107 108-110 . Outcome 1 – Outcome 3 111 . Key findings Agriculture and Rural Development Sector 112 113-125 . Outcome 1 – Outcome 6 . Main findings 125 126 . Suggestions and Recommendations Social Protection Sector 127 129-134 . Outcome 1 – Outcome 4 134 . Main outcomes of the social protection sector 134 . Recommendations Economic Growth and Private Sector Development 136 137-141 . Outcome 1 – Outcome 8 141 . Key findings of the sector 142 . Suggestions Recommendations Crosscutting Themes 143 . Capacity Building 143 147 . Gender Equality . Counter Narcotics 149 154 . Regional Cooperation 155 . Anti-Corruption 160 . Environment 164 References

VII

Executive Summary The Afghanistan National Development Strategy (ANDS) has been prepared and organized under the leadership of the Higher Oversight Committee including the Ministries of Foreign Affairs, Finance, Economic, Justice, Education, Commerce and Industry as well as National Security Adviser. The committee was appointed by H.E. the President and was chaired by the Senior Economic Advisor to the President. The Afghanistan National Development Strategy was approved by the Cabinet on 2nd Sawr in 1387 (21st April 2008). Thereafter, it was presented at the Paris conference on 13th Jawza 1387 (02 June 2008) and welcomed by the donor countries. The ANDS serves as the country’s first poverty reduction strategy paper. It is based on the Millennium Development Goals (MDGs) and organized under three pillars of: (1) security; (2) governance, rule of law and human rights; and (3) social and economic development. These three pillars divided into eight sectors and 17 subsectors and six cross cutting issues. In order to effectively implement the ANDS, the Afghan Government’s Ministries and public institutions, as well as Donor Countries, jointly aimed to sync projects and programs with the ANDS. To reflect people’s needs, particularly with regard to poverty reduction and welfare, the ANDS applies a bottom-up approach, taking into account all aspects of social and economic dimensions. Moreover, the ANDS is a product of extensive consultation at the national and subnational level. In total, around 17,000 different individuals (including Government officials, members of parliament, members of provincial councils, member of civil society organizations, representatives of the private sector, representatives of donor countries, and provincial reconstruction teams) participated in ANDS consultation meetings. Remarkably, 47 percent of the participants in the consultation processes were women. Overall, the ANDS consists of 86 expected outcomes that are measured by 276 development indicators. In total, it is estimated that more than 15.6 billion USD have been spent to achieve these outcomes over the five-year implementation period (2008-2013) of the ANDS. About 4.9 billion USD were invested through the government budget (on-budget), the remaining 10.7 billion have been spent outside the regular budget (off-budget). Leaving the security sector aside, at the beginning of the implementation period an amount of 35.9 billion USD were predicted to entirely realize the ANDS. Thus, the actual spending was only 44 percent of this estimated amount. As this report will present in detail, as of 2013 about 66 percent of the targeted outcomes formulated in the ANDS were achieved. While a higher percentage of targets have been accomplished in the health sector (88 percent), private sector development only achieved 45 percent of its targeted outcomes. The percentages of achievements in the other sector of ANDS are as follows: security 73 percent, governance 71 percent, infrastructure and natural resources 63 percent, education 71 percent, agriculture and rural development 69 percent, and social security 46 percent.

After highlighting some key findings across sectors, the executive summary will present core findings on each sector’s performance in relation to expected outcomes as named in the ANDS as well as related budget execution. It furthermore formulates related recommendations indicated by the findings.

The Report’s Key Findings in Macroeconomic Level:  The average economic growth rate for the ANDS implementation period (2008-2013) was predicted to be 8.1 percent but was surpassed at 8.5 percent. In 2008, the total value of GDP was about 10.8 billion USD, which increased to 21 billion USD in 2013. Facing population growth of 2.03 percent, Afghanistan’s future government will be challenged to ensure that gross domestic product growth keeps place with its population growth.

 Considering population growth, the per capita income increased from 426 USD in 2008 to 779 USD in 2013.

 The ANDS targeted to fully finance the operational budget through revenues by the end of its implementation. However, by 2013 domestic revenues met only 52 percent of the operation budget. Afghanistan generated 41.4 billion Afs (828 million USD) revenue in 2008, which increased to 99.4 billion Afs (1.9 billion USD) in 2012. The country’s revenue decreased from 1.9 billion USD in 2012 to 1.7 billion USD in 2013 due to changing the financial year from 12 month to 9 month. Despite significant growth in the revenue during the past five years, revenue forms only 9 percent of the GDP, which is comparatively low. It is suggested that within the next five years the domestic revenue should reach to at least 15 percent of the GDP.

 During the ANDS implementation period, total national debts increased from 2.1 billion USD in 2008 to 2.4 billion USD in 2013. The current debt stock equals 11 percent of our GDP, and per capita debt is estimated around 88 USD per Afghan.

 During the ANDS implementation period, inflation fluctuated. According to the Central Statistical Organization (CSO) and the Central Bank of Afghanistan, the inflation rate was 4.8 percent in 2008. In 2009 it decreased to -4.5 percent. Then, in 2010 it jumped up to 13.7 percent due to the floods in Pakistan which affected food prices in both countries. Thereafter, the inflation rate again decreased to 8.4 percent and 5.8 percent respectively for the years of 2011 and 2012. The key factors behind inflation were export, foreign reserve, and currency exchange policy, and to some extent increasing productivity of agriculture sector.

 The amount of money in circulation shows decent growth during the ANDS implementation period. The total amount of money in circulation increased from 76.8 billion Afs in 2008 to 143.9 billion Afs in 2013 indicating an improvement in both the currency stability and the economy.

 Considerable achievements can be reported for the banking sector. At present, there are 16 private banks and three public banks in Afghanistan. The total deposit in the banking sector increased from 1.3 billion USD in 2007 to 3.8 billion USD in 2012. Likewise, the total bank loans have increased from 1.35 billion USD in 2007 to 4.1 billion USD in 2012. The total asset of the mentioned banks has increased from 1.6 billion USD in 2007 to 4.7 billion USD in 2012. However, despite these achievements, there remain challenges. The Kabul Bank crisis was an alarming incident for all other private banks. Nearly one billion USD of public deposit in the Kabul Bank vanished due to corruption and mismanagement.

 Afghanistan trade deficits significantly increased during the ANDS implementation period. Starting off with 2.5 billion USD in 2008, it rose to 8.5 billion USD in 2012. The main reason for the trade deficit is the existence of international military troops, less attention to the private

and manufacturing sector, and ongoing security challenges. The current trade balance is not tolerable, therefore it is suggested that in the next 5 years development plan we have to focus more on improving our domestic products capacity, further enabling environment for domestic investment, implement export promotion and import substitution policies.  During the ANDS implementation period Afghanistan experienced a slight reduction in poverty. Baseline data shows 42 percent poverty in 2008. A decrease of two percent per year was targeted. According to NRVA 2011/2012 data revealed the poverty rate reduced to 36 percent, indicating a 6 percent decrease compare to the 10 percent reduction, which was targeted. Despite of having surpassed GDP growth rate targets (on average 8.5 percent during the ANDS implementation period), poverty reduction did not keep pace. Therefore, it is important that for the future we should focus more on better poverty reduction policies and implement targeted programs in order to reduce poverty. Considering high population growth rate, 36% of the population below poverty line is still a big challenge for future planning and investment. Key Finding and Recommendations across Sectors:  Despite challenges, an average of 66 percent of the outcomes targeted in the ANDS was achieved.  In total, it is estimated that more than 15.6 billion USD have been spent to achieve these outcomes over the five-year implementation period (2008-2013) of the ANDS. About 4.9 billion USD were invested through the government budget (on-budget), the remaining 10.7 billion have been spent outside the regular budget (off-budget). Off-budget spending was thus twice as much as on-budget spending.

 The significant difference between off- and on-budget executions indicates that the Afghan Government has played little role compared to international donors, when it comes to the ANDS implementation. The off-budget expenditure by the international community caused establishment of parallel structures for service delivery and made it hard to monitor and maintain the required accountability of the overall investment process across the country.

 The total approved national development budget (on budget) for the five-year ANDS implementation period (2008-2013) was 11.2 billion USD. The actual spending of only 4.9 billion USD shows that overall only 44 percent of the approved development budget has been executed by all budget entities. This indicates a crucial lack of capacity to perform development tasks within budgetary institutions.

 The planning process in the past decade was fragmented due to many factors and different institutions intervened in different periods. Generally, planning was not undertaken seriously, partially as it was perceived to be an aspect system of centralized economy, thus this report recommends that national planning should remain as a strong tool in the public and private sectors investment processes and should led by a specific government institution.  Despite mutual efforts by the government of Afghanistan and the international community toward accepted principles of the aid effectiveness, it still evaluated unsatisfactory.

I. Key Findings Security Sector:

 The ANDS mentions nine expected outcomes for the security sector and applies 17 indicators to measure their achievement. Within the sector 72.8 percent of the targets set have been achieved during the ANDS implementation period.  Overall, the total investment in the security sector as part of its development budget is estimated to be around 803 million USD for the ANDS implementation period. About 66.3 million USD have been spent through the Afghan development budget. Donors spent the remaining 737 million USD outside the development budget.  More than 70 percent of security sector outcomes were met with the exception of the outcomes that Afghan National Army, Afghan National Police and Afghan Border Police expenditures are fiscally sustainable.  To some extent, the security transition impacts the level of investment, revenue and economic growth. With the international security withdrawal, Afghanistan will take the lead of security operations and consequently the increased operation expenditure compared to the development budget will slightly affect our current economic growth.

 Lack of firm commitment to equip Afghan national army and police with required updated weapons. II. Key Findings Governance Sector:

 The ANDS planned 18 expected outcomes for the governance sector and applies 18 indicators to measure their achievements. About 71 percent of the targeted outcomes have been achieved during the ANDS implementation period.  Overall, the total investment in the governance sector was about 2.4 billion USD. About 132 million USD have been spent through the Afghan development budget. Donors spent about 2.2 billion USD outside the national budget – or 95% of the total investment - indicating a heavy imbalance between on- and off-budget spending.  The following planned outcomes had less than 50 percent achievement: corruption reduced enhanced availability of information to public and enforcement, census completed and results published, statistical baselines established, and single national identity document. The rest had better achievements. III. Key Findings Infrastructure and Natural Resource Sector: This sector is divided into the following six sub-sectors: energy, transport, water management, urban development, information and technology, and mining. Each of the sub-sectors will be treated separately, following an overview of general findings.

 Overall, the ANDS mentions 29 expected outcomes for the Infrastructure and Natural Resource Sector. To measure achievements on the outcomes 74 indicators were developed. Sector-wide,, 63 percent of the targets set through the outcomes have been achieved during the ANDS implementation period.  During the ANDS implementation period, around 4.1 billion USD was invested in the sector, which represents the highest spending in any one sector. About 2.1 billion USD was spent

through the national development budget, and donors spent the remaining 2 billion USD off- budget. 1. Key Findings Sub-Sector Energy:

 During the implementation period of the ANDS, responsible institutions achieved 63 percent of the targets set in the related ANDS outcomes.

 Visible achievements in this sector include the expanded public power grid and restructured energy sector governance and commercialize operations.

 Remaining challenges for the sector are to meet its other planned outcomes such as enhancing rural access to electricity and attracting private sector investment in energy. Achievements in these outcomes are less than 50 percent of the targets. Additional challenges for this sector are the lack of capable and credible foreign and domestic companies interested to implement the water and energy projects, and at the same time a low level of technical capacity. Recommendations Sub-Sector Energy:  More focus should be given to encourage private sector engagement and investment in energy sector and to promote an enabling environment for investment in renewable energy in the rural areas.

 Improve rural access to electricity.  Foster technical capacity building and developing coordination mechanism among the sector line ministries and institutions. 2. Key Findings Sub-Sector Water Resources:

 During the implementation period of the ANDS responsible institutions have achieved 68 percent of the targets set in the related ANDS outcomes.  Only 49 percent of the approved development budget for this sub-sector over the course of ANDS implementation period has been spent.

 Significant success is particularly found with regard to improved water sector legal and governance structures and institutions. Achievements with regards to other expected outcomes are also good, but the targets were set relatively lower; for instance, 30 percent of urban population should have access to piped water (with Kabul expected to have 50 percent by that time).

 A remaining challenge for the sub-sector is to improve water management for better irrigation and consumption because it met only its half of planned targets. Recommendations Sub-Sector Water Resources:  More focus should be given to increasing access to clean drinking water in the urban and rural areas. Current targets on accessing drinking water in rural and urban areas are relatively low; in the next 5 years plan targets need to be set a bit higher.

 Foster technical capacities of the responsible institutions in this sector to improve their development budget expenditure rate. 3. Key Findings Sub-Sector Transport and Civil Aviation:  During the implementation period of the ANDS responsible institutions have achieved 64 percent of the targets set for this sub-sector.

 Significant achievements were made with regard to road reconstruction and airport reconstruction. About 7,000 km of roads have been asphalted which connect most parts of the country and neighboring countries. Kabul, Mazar, Herat, and Kandahar International Airports almost meet ICAO standards. In addition, construction of more than 10 domestic airports is well underway.

 Within the sub-sector, there were fewer achievements in the expected outcome of lower road users’ cost. Around 50 percent of the outcomes of improved governance in the transport sector and improving business environment for private sector investment were achieved.

 Remaining challenges for the sub-sector are a lack of resources to maintain and operate the roads and a lack of governmental auditing of infrastructure projects, as well as delay in funding. Recommendations Sub-Sector Transport and Civil Aviation:

 Establish a trust fund for expansion, maintenance and operation of transit infrastructures.

 Focus on promoting an enabling environment to attract private sector investment in this sector. 4. Key Findings Sub-Sector Information and Communication Technology:

 During the implementation period of the ANDS responsible institutions have achieved 75 percent of the targets set for this sub-sector.

 About 65 percent of the approved budget for this sub-sector has been spent.  Significant achievements include improved information and technological coverage, along with expanded infrastructure. Moreover, the enabling environment for the private sector has been improved.  Remaining core challenges for the sub-sector are the creation and implementation of E- Afghanistan, as well as improving ICT literacy. Recommendations Sub-Sector Information and Communication Technology:  Foster the distribution of electronic Identity cards in order to improve electronic governance.

 Emphasize the improvement of internet services and national optical fiber expansion. 5. Key Findings Sub-Sector Urban Development:

 During the implementation period of the ANDS responsible institutions have achieved only 54 percent of the targets set for the sub-sector urban development.

 About 85 percent of the approved development budget for this sub-sector has been spent. This indicates better than average expenditure of the development budget in this sub- sector.

 Visible achievements in the sub-sector include improved institutional coordination of the sector, as well as strengthened institutional capacity to plan and manage urban development.

 Core challenges remain, including insufficient access to basic urban services, lack of affordable housing, and poor access to secure tenure and improved services to informal settlements. In these outcomes, the sub-sector achieved less than 50 percent of what were targeted. Recommendations Sub-Sector Urban Development

 More focus should be given to above mentioned underperforming outcomes such as: improved access to basic urban services, access to secure tenure, and improved services to informal settlements in the future plans. At the same time, for future planning and monitoring a sound urban development management information system is needed. 6. Key Findings Sub-Sector Mining:

 During the implantation period of the ANDS, the responsible institutions in this sector have achieved only 53 percent of the targets set for the sub-sector of mining.  Only 34 percent of the approved development budget for this sub-sector has been spent.

 Remarkable achievements include access to geophysical and geological information, and the introduction of a strong regulatory framework for the sub-sector.  Core challenges and shortcomings are seen in the area of attracting private sector investment and increasing public access to natural gas resources. Achievements in these two outcomes are much less than what were planned. Recommendations Sub-Sector Mining:

 Attract private sector investments.  Improve technical capacity of this sector’s institutions in order to increase its development budget expenditure rate. IV. Key Findings Education Sector:

 The ANDS mentions nine expected outcomes for the education sector and introduces 32 indicators to measure their achievement. About 71 percent of the targets set through the outcomes were achieved during the ANDS implementation period.  During the ANDS implementation period, around 1.45 billion USD was invested in the sector, of which 498 million USD was spent through the national development budget. Donors spent the remaining 949 million USD through off-budget.

 Visible achievements in the sector include improved education quality and access to higher and vocational education. Moreover, the overall literacy rate has remarkably improved.

 Core challenges and shortcomings in the sector remain, including the need to improved quality of vocational education, support a science academy, and improve sports facilities; the achievement of all of these outcomes was around 60 percent of the planned levels.

 Over the course of ANDS implementation, the budgetary institutions in this sector on average spent only 40 percent of their approved development budget. Off-budget expenditures were comparatively higher, at around 73 percent of what was committed. Recommendations Education Sector:  Increase universities absorption capacities compared to secondary school graduation rate.

 Further strengthen sector institutions’ capacity to spend their development budget and to shift development spending from off-budget to on-budget executions. During the ANDS period, off- budget expenditures were two times that of on-budget expenditures.

 Focus more on quality and credibility of vocational trainings and align it more to market needs. V. Key Findings Public Health Sector:

 The ANDS mentions three expected outcomes for the public health sector and introduces 13 indicators to measure their achievement. About 88 percent of the targets set through the outcomes were achieved during the ANDS implementation period, making health the most successful sector.  Throughout the ANDS implementation period 1.27 billion USD was invested in the sector. Some 426 million US dollars were spent through the national development budget, and the remaining 845 million US dollar was spent outside the development budget (off-budget).

 The key achievement of public health sector is perfect achievement of the targeted plan of effective reproductive and child health systems. Moreover, significant improvements have been made with regard to the other two outcomes of quality health care and increased access to health care services.  As in other sectors, the key challenge in the health sector is that the off-budget expenditure is more than two times that of the on-budget expenditure. Secondly, the three indicators set for effective reproductive and child health system cannot be assessed through Ministry of Public Health administrative data. They have to be assessed through national level surveys. VI. Key Findings Agriculture and Rural Development Sector:

 The ANDS names six expected outcomes for the agriculture and rural development sector and 78 indicators to measure their achievement. About 65 percent of the expected targets were achieved during the ANDS implementation period.

 During the ANDS implementation period around 3.26 billion USD were invested in the sector. About 1.3 million USD has been executed through the Afghan development budget. Donors spent the remaining 1.9 billion USD outside the national budget.

 Improvements are visible with regard to expected outcomes of strengthening local governance, increasing agriculture productivity and provision of disaster and emergency responses.

 A core challenge for the sector remains the expected outcomes of provision and maintenance of agriculture and rural infrastructures and promotion and facilitation of economic opportunities for small and medium enterprises. These expected outcomes achieved less than 50 percent of their targets. Recommendations Agriculture and Rural Development Sector:  The expected outcomes of “Promotion and facilitation of Economic opportunities for SMEs” and “Provision and Maintenance of Agriculture and rural infrastructures” progressed but require further attention through proper planning and investment.

 Shift investments from off- to on-budget spending to improve the sectors incorporation in the national development planning process and increase the level of investment in Ministry of Agriculture. In the agriculture and rural development Sector MAIL is receiving around one third of amount MRRD is receiving every year. VII. Key Findings Social Protection Sector:

 The ANDS names four expected outcomes for social protection sector and 22 indicators to measure their achievement. About 46 percent of the expected targets were achieved during the ANDS implementation period. However, it must be clearly stated that assessing the improvements in the sector was technically challenging. Of the 22 indicators 20 were lacking specific baseline data.  During the ANDS implementation period a total of 643 million USD was invested in the sector. About 57.8 million USD has been spent through the national development budget; the remaining amount of 585 million USD has been executed off-budget.  There are some achievements in “Improved old age protection”, “disaster preparedness and response” and “reduction of infant mortality” outcomes, but the average achievement compared to their planned targets measured around 50 percent.

 Core challenges for the sectors are a lack of adequate resources for investment in this sector through government channel (on-budget expenditure) and a weak coordination mechanism among national and international stakeholders in this important sector, as well as weak technical capacity of the government institutions in charge of this sector. Recommendations Social Protection Sector:  Create a management information system (MIS) to properly track and evaluate crucial indicators of social protection sector.

 Foster capacity building in responsible institution to spend fully their approved development budget and attract off budget expenses by developing sound joint management and coordination mechanisms and more important to attract and coordinate private sector investments in this sector. VIII. Key Findings Private Sector Development:

 The ANDS mentions eight expected outcomes for private sector development and introduces 22 indicators to measure their achievement. About 45 percent of the expected targets were achieved during the ANDS implementation period. However, it must be clearly stated that assessing the improvements in the sector was technically challenging. Of the 22 indicators 13 were lacking specific baseline data.

 During the ANDS implementation period a total of 1.29 billion USD was invested in the sector. About 304.6 million USD has been spent through the regular development budget; the remaining 984 million USD has been executed off-budget.

 The main achievements of the sector are the creation of legal framework for the trading sector, and simplification of regulations for business licenses and registration.

 Remaining challenges are the need to improve public private partnerships, increase access to finance for private sector, the utilization of land by the private sector, and promote the economic growth of provinces. Recommendations for Private Sector Development:  Under this sector, annual on-budget development investment of the Ministry of Commerce and Industry and the Afghanistan Investment Support Agency (AISA) were very low compare to other budgetary institutions. In order to fully achieve the expected outcomes of this sector, it is particularly important that the mentioned two institutions should increase their current level of investments in the upcoming years.

 Improve technical capacity within responsible institutions to foster planning and development, as well as budget expenditure.

CHAPTER ONE Macroeconomics Real Sector

1- Real GDP

Afghanistan’s growth rate, as measured by GDP, was projected to be 9%, 9%, 8%, 7.7% and 7% for the years 1387 (2008), 1388 (2009), 1389 (2010), 1390 (2011) and 1391 (2012) respectively with an approximated average growth rate of 8.1%.

The fact, however, is that Afghanistan´s GDP has fluctuated considerably. The general reason for this fluctuation is said to be the country’s economic dependency on agriculture sector, which is strongly dependent from climatic conditions. In the year 1387 (2008) the country experienced the lowest GDP growth rate (approximately 2.3%) during the period of the implementation of Afghanistan National Development Strategy (ANDS), potentially the result of bad weather conditions which affected the agriculture sector. In fact, growth in agriculture sector in that year (1387 -2008) was negative (-18 percent) which directly affected other sectors. Favorable weather in 1388 (2009) resulted in a considerable agricultural productivity, which raised GDP growth rate to 17.2%, the highest growth rate during the implementation of ANDS. In 1388 (2009), within the agriculture sector, grains experienced a growth rate of 80%, cereals 65.5% and fruits 75.2%. This growth in agriculture sector appears to be one factor behind the country’s GDP in that year. Another factor for the GDP growth for this year was the arrival of thirty thousand new foreign soldiers, which resulted in investment in the

infrastructure (mainly transportation) and services sectors. In 1389 (2010) however, CSO again reported a negative growth in agriculture sector due to weather which affected GDP. On average, the economic growth rate of the country during the years of implementation of ANDS was 8.5% which corresponds to the planned average growth rate for the same time. The real GDP amount for the year 1387 (2008) was 6.4 billion dollars which increased to 10.5 billion dollars in 1391(2012), an increase of 64%.

2- Nominal GDP

Nominal GDP for Afghanistan during the same years was planned to be 15.14% on average but the actual nominal GDP was reported to be 16.24%, or 1.1% higher than the planned target. This indicator increased steadily after 1388 (2009). For 1387 (2008), nominal GDP was expected to be 19.8%, but the actual nominal growth rate was only 4.3% due to the negative growth in the agriculture sector. In 1388 however, nominal GDP growth rate was reported to be 12.6% or higher than expected. For the years 1389-1391 the nominal GDP growth rate increased constantly.

3- GDP Per Capita

During the course of the implementation of the ANDS, GDP per capita increased considerably. Afghanistan’s GDP per capita was 426 dollars in 1387, and increased to 779 dollars in 1391, and increase of 45%. Although ANDS did not release any estimates for this indicator, its constant increase is also an indication of general improvement of the quality of life and reflects the countries strong domestic demand.

4- GDP Composition

The Central Statistics Organization of Afghanistan calculates the country’s GDP based on production methods from three sectors including agriculture, services and industry. Growth in agriculture sector is subject to weather conditions. Due to its climate, Afghanistan experiences drought approximately every 5 years, which causes fluctuations in country’s GDP and economic growth. The agriculture sector contribution to GDP during these years was on average 27.8%.

The second sector of GDP composition in Afghanistan is the service sector which consistently increased during the ANDS implementation period. Considerable growth in telecommunications, construction, logistics and transportation has attracted local and foreign investment.

The third largest sector, the industry sector, experienced relatively sluggish progress during the course of ANDS implementation. Its contribution to GDP slightly decreased over the period of ANDS implementation whiles the contribution of the services sector increased, increasing from 6% to 50.3%. Aid provided by donors and the international community has spurred a lot of the growth in the sector, making it vulnerable to changing levels of aid. As donors decrease funding to Afghanistan, it is expected that the service sector will also decrease as a proportion of GDP. However, as of yet, no credible analysis has been made to study the potential effect of decreased aid on the service sector. Such a study is therefore recommended.

Fiscal Sector:

1- Government Revenue

Government revenue has increased rapidly between the years 1387 to 1391. The revenue is composed of taxes, customs revenue, import tax, non-tax revenue, miscellaneous revenues and

Source: MoF Fiscal Reports 1388 -1392

social contribution. Taxes are the largest part of the country’s revenue, contributing more than 40% of the total. In 1387, the government earned more than 17 billion Afghanis from collecting taxes, which rose to 38.4 billion Afghanis in 1391, a 56% increase. During the implementation period of the ANDS, national revenue increased from 41.1 billion Afghanis to 99.4 billion Afghanis, an increase of 51. Three sources contribute 97% of the country’s revenue. Taxes contributed 41% of the total budget in 1387 (2008), 47% in 1388 (2009) 48% in 1389 (2010), 45% in 1390 (2011) and 47% in 1391 (2012). Revenue from taxes experienced minor fluctuations but had relatively strong growth. The second highest source of the country’s revenue was customs revenue, which has decreased during the ANDS implementation period.

This source made up to 35% of the total revenue in 1387 (2008) but dropped to 26% in 1391 (2012). The third source of the country’s revenue is non-tax revenue which makes up 21% – 22% of the total revenue of the country. Despite the fact that national revenue has increased, it still has failed to meet the amount required for the country’s operational budget. National revenue only financed 59% of the operational budget in 1387 (2008), 66% in 1388 (2009) 60% in 1389 (2010), 62% in 1390 (2011) and 52% in 1391 (2012). On average during the ANDS implementation period 60% of the operational budget of the country was financed by national revenue. The remaining 40% was financed by grants, which totalled 29 billion Afghanis in 1387 (2008) 32 billion Afghanis in 1388 (2009), 54 billion Afghanis in 1389 (2010), 60 billion Afghanis in 1390 (2011) and 81 billion Afghanis in 1391 (2012).

ANDS set a goal that by 1391 (2012), Afghanistan would finance its operational budget solely through national revenue. By 1391, however, national revenue financed only 52% of the operational budget. The shortfall can be explained by the fact that the the projected operational budget for 1391 (2012) was originally 100 billion Afghanis (2 billion USD) while the actual operational budget for 1391 (2012) was 169 billion Afghanis (more than 3 billion USD). The reasons for this difference are said to be the cost of transition of security responsibilities from International Security Forces to Afghan Security Forces and the increasing number of employees in education and governance sectors. National revenue was able to fund 98% of the targeted plans of ANDS, but the increase of security services to 51.8% of the operation budget and education to 14% resulted in the shortfall. During the years of 1388 (2009), 1389 (2010) and 1390 (2011), national revenue was more than originally expected. Based on the Annual Fiscal Report 1391 (2012) released by the Ministry of Finance, the GDP was reported to be more than 1 trillion Afghanis (1.0 billion USD) while total national revenue for the year 1391 (2012) was 88 billion Afghanis and for the same year, or about 8.5% of GDP. The country’s revenue in 1391 (2012) dropped relative to 1390 (2011) which was explained by two main reasons:

1) Due to a decision to alter the fiscal year, the year 1391 (2012) was shorter than the fiscal year 1390 (2011), since 1391 (2012) started on first of Jadi (20th December) instead of first of Hamal (20th March). 2) Better GDP growth in 1391 (2012). The national revenue for 1389 (2010) was more than 80 billion Afghanis, which represented 11% of the GDP for that year. Similarly, national revenue for 1388 (2009) represented 10% of the GDP and for 1387 (2008) was only makes 7% of the GDP in that year. On average, national revenue was only around 9.8% of the GDP, which is considered low in comparison with the countries in the region and the rest of the world.

2- Expenditure

The ANDS estimated that it would expend a total of 2,5 trillion Afghanis (50.1 billion USD) for its implementation. However, during the course of the ANDS implementation (2008-2012), 236

billion Afghanis (4.86 billion USD) were spent through the national budget system. Furthermore, of the 940 billion Afghanis (19.35 billion USD) commitment, only 519 billion Afghanis (10.7 billion USD) were actually spent off-budget, which is 55% of the total commitment for the same period.

(Sources: ANDS, qatia, DAD database 2008-2012)

The total committed and allocated amount (on- and off-budget) for the implementation of the ANDS was 1.5 trillion Afghanis. However, only 755 billion Afghanis (15.5 billion USD) were spent for the ANDS implementation period, making only 50.5% of the total committed amount. Monetary Sector

1- Inflation

As in all countries, fluctuations in macroeconomic indicators and the inflation rate can result in fluctuations in other areas of the economy. Fluctuation in inflation in Afghanistan is caused by many factors. Four of them are:

1. Imported inflation, 2. Inflation caused by high transportation costs for imported goods, 3. Inflation caused by rising cost of basic commodities and food in global markets, and 4. Inflation caused by the negative impacts of natural disasters in the countries that supply food and agricultural products for Afghanistan - for example, the 2010 flooding across Pakistan that destroyed a vast proportion of agricultural land and caused agricultural products scarcity in Afghanistan.

According to the CSO and Da Afghanistan Bank, inflation in 1387 (2008) was 4.8%, which in 1388 (2009) sank to -4.5% but rose in 1389 (2010) to 18.2%, due to the floods in Pakistan. Inflation decreased thereafter: 13.7% to 8.4 in 1390 (2011) and 5.8% in 1391 (2012). There are a number of justifications for this drop such as opening of new trade corridors, increase in the number of basic commodity (mainly food) suppliers for Afghanistan, the policy of US dollars auctions in market to keep the Afghan currency stabilized, and, to some extent, self-sufficiency of the Afghan government. Da Afghanistan Bank has projected inflation to remain around 5% for the coming years.

2- Exchange Rate

The exchange rate in Afghanistan is expressed as Afghanis against US dollars. The rates for other currencies are determined based on this rate. Da Afghanistan Bank reports the average annual exchange rate based on monetary and fiscal policies. Since Afghanistan is a consuming and importing country, the stability of the national currency is ensured by auctions of US dollars on the Afghan markets. Based on Da Afghanistan Bank’s report, Afghani exchange rates against

the dollar decreased considerably from 1386 (2007) to 1392 (2013). The main reason was said to to other countries. On the other hand, the anticipated withdrawal of foreign troops and the

endless debates and speculations in the media about this issue and its relation with the country’s economic situation also caused the local currency to lose value.

3- Auctions of Foreign Currencies

To ensure stability of the national currency, Da Afghanistan Bank’s monetary policy currently consists of selling and buying foreign currencies, mainly US dollars, in the local markets. Besides ensuring stability of the national currency, the method is also used to control the prices. Auctioning of dollars is carried out twice a week. The money is sold to commercial banks and as well as licensed money dealers. The amount sold differs from week to week. In 1386 (2007), Da Afghanistan Bank sold $957 million USD in order to retrieve Afghanis from circulation. Similarly, 2 billion USD were sold in 1388 (2009) and 2.5 billion USD in 1391 (2012), averaging 76 million USD monthly. Buying foreign currency in the local market in order to promote and circulate national currency is one of Da Afghanistan Bank’s monetary policy tools. However, there is no detailed data on the amount and frequency of purchasing foreign currencies from the markets. The third monetary policy tool practiced by Afghanistan government is the management of the reserves. Da Afghanistan Bank changes these reserve requirements from time to time based on market demands and circumstances. The government also requires the commercial banks to increase the amount of their reserves in accordance with market demands.

4- Commercial Banking:

After the toppling of the Taliban regime, the transitional government supported and actively encouraged investment in the private sector, which was an impetus for this sector to thrive over the past decade as never before. Like many other sectors, investment in commercial

banking was considerable. According to Afghanistan Chamber of Commerce and Industries, currently there are 16 private banks actively operating in the country along with 3 public banks. The total banking deposits in 1386 (2007) was 1.3 billion USD while in 1391 (2012), it went up to 3.8 billion USD. The total debts of the private banks in 1386 (2007) were $1.35 billion USD while in 1391 (2012), debts totalled 4.1 billion USD. Assets of these banks increased from 1.6 billion USD in 1386 (2007) to 4.7 billion USD in 1391 (2012). Likewise, gross debts of the mentioned banks increased slightly from 826 million USD in 1386 (2007) to 843 million USD in 1391 (2012). Although the scale of the deposits shows an improvement, the Afghanistan banking system has faced numerous challenges in the past decade. Two years ago, the Kabul Bank scandal and collapse as the largest private bank in Afghanistan was an alert for private banks in the country. Almost one billion USD of public deposits in the bank went missing in a corruption scandal that involved the managers of the bank. Currently, the government is in the process of preparing a banking program for the next decade based on the experience of the past decade of banking and in consultation with investors and bankers. According to Da Afghanistan Bank reports, the banking system in Afghanistan is facing on-going challenges with banking supervision. After the Kabul Bank scandal and the experience that was gained from, the government has undertaken amendments in banking laws and regulations to ensure more active and more secure commercial banking.

5- External Debts:

Generally, the debts of the Islamic Republic of Afghanistan are mainly for two types of developmental projects: 1) Debts without administrative fees (e.g. Saudi Arabia Development Fund). Under such debts, just principal repayments are made 2) Debt with administrative fees and commitment charges (e.g.

Asian Development Bank, Islamic Development Bank and World Bank). These debts are repaid bi-annually according to the terms and conditions mentioned in the agreement. If the debtor could not use the amount of the loan in a specific time period then the debtor pays a certain fee, which is called a commitment charge, and all World Bank loans include commitment charges for unused debt amount. These charges are the same in all countries and fortunately these charges were nearly zero during the last few years.

Islamic Republic of Afghanistan became a member of the International Monetary fund (IMF) in 1955 and pays the membership fees quarterly. The government of Afghanistan has signed separate agreements with Asian Development Bank, Islamic Development Bank, World Bank and International Monetary Fund. In total, there are 9 agreed World Bank loans with a total committed amount of 432.84 million USD, of which the net amount owed is 415.36 million USD. A total of 415 million USD was already spent on development projects by the end of 1391 (2012) and the remaining 17 million USD was not disbursed during the years of the ANDS implementation.

The Asian Development Bank has the largest debt agreement with the government of Afghanistan, with 14 loans and a total committed amount of 758.62 million USD, of which the net amount owed is 681.63 million USD). To date there is just one IMF loan from 2006 which equals 248.61 million USD, of which amount 131.77 million USD is disbursed. With the Islamic Development Bank Afghanistan has 4 loans with a total committed amount of 68.03 million USD, of which the net amount owed, 24 million USD, is already invested in Afghanistan. Afghanistan has agreed to 2 loans with the Saudi Arabic Development Fund with a total commitment of 80.89 million USD, of which the amount of 46 million already invested in the development projects.

Previous debts amount to 21.9 million USD from Kuwait Fund for Development, 54.04 million USD from Bulgaria, 194 million USD from OPEC Fund for International Development and 9.9 million USD from Iran.

During the past decade, a number of countries exempted Afghanistan from repaying its debts. The largest debt exempted was that of Afghanistan’s Soviet era debt by the current Russian Federation, which was 10.3 billion USD. From 1381 (2002) to 1391 (2012), a total amount of

12.38 billion USD debts of Afghanistan was exempted by the loan providers. According to Da Afghanistan Bank and Ministry of Finance, Afghanistan debts increased during the years of the ANDS implementation. In 1387 (2008), Afghanistan’s debts from other countries and international organizations were around 2.15 billion USD while in 1391 (2012) this amount totalled 2.4 billion USD. Currently, per capita debt is approximately 88 USD. It should be noted that in comparison with other countries the debt rate is quite modest and the long-term loans are almost free of charges.

6- Foreign Direct Investment:

After the collapse of the Taliban regime, local and foreign investors were attracted to invest in Afghanistan. During the implementation of ANDS, the total amount of foreign investment in Afghanistan increased to 562 million USD, with an average foreign direct investment of US$100 million annually, however it was less than expected. Foreign direct investment has the potential to bring new products, technologies, management systems and jobs without requiring limited Afghan capital and savings.

7- Currency in Circulation:

One of the main challenges of the currency circulation in Afghanistan is the active use of neighboring countries’ currencies. Currently, the Pakistani currency is actively being used instead of the national currency in Jalalabad, Kunar, Nooristan, parts of Logar, Khust, Paktia, Paktika, Kandahar and Helmand. Similarly, the Iranian currency is used in Nimroz as it shares border with Iran. This has affected the value of the national currency. According to Da Afghanistan Bank, currently 143.9 billion Afghanis are in circulation in the Afghan market. This amount was 76.8 billion Afghanis in 1387 (2008) when ANDS implementation started. In 1388

(2009), Da Afghanistan Bank sold 2.06 billion USD in the local markets that reduced Afghanis to 48.6 billion Afghanis that caused a 4.8% deflation in the country. During the same year, Da Afghanistan Bank sold dollars in order to collect Afghanis from local currency markets. This resulted in reduction of prices during that year. During the subsequent years however, the circulation of Afghanis in the local markets increased constantly and this was mainly due to economic growth and market demand for local currency and as well as circulation of Afghanis in areas where previously Pakistani and Iranian currencies were in use.

8- Trade Balance:

Afghanistan’s exported items are predominantly agricultural products including fruits (fresh and dried), medicinal plants, spices, seeds, cotton, wool, animal intestine, hide, carpets and rugs. The total of the country’s exported items decreased from 1387 (2008) to 1390 (2011), but began to rise again in 1392 (2013).

Imports include a wide range of commodities such as machinery, petroleum products, chemical materials, construction materials, food products, papers, cigarettes, drinks, textiles and apparels, tools, medicine and other basic necessities. The trade balance of the country has been largely negative since 1387 (2008). In 1387 (2008) the trade balance was 2.5 billion USD, and increased to 8.5 billion USD by 1391 (2012), a 6.0 billion USD increase. The main reasons for the large difference between the imports and exports of Afghanistan are the presence of the foreign troops, investment in developmental projects, lack of local industrial products, and security challenges.

CHAPTER TWO

SECURITY SECTOR Security in all parts of the country is essential for economic growth and poverty reduction. The ANDS long-term strategic vision for the Security sector is to ensure security of state, persons and assets through the provision of an integrated and sustainable national security infrastructure and law and order policy. The National Security Policy will be implemented through the Security Sector Reform (SSR) program. This will strengthen and improve coordination among the Afghan National Security Forces (ANSF), ISAF/NATO, CSTC-A.

The institutions within this sector include Ministry of Defense, Ministry of Interior Affairs, Ministry of Foreign Affairs, National Security Council, presidential Guard and National Directorate of Security. The approved development budget in the past five years for this sector was 135 million USD of which only 66.3 million were spent by those institutions in the same period. The budget spending over the course of five years by all the institutions within this sector sums up to 49% at average.

According to Donors Assistance Database (DAD) system for the entire five years period totally Million of 6047 USD were committed through external budget which was only 737 Million USD

spent through this sector, which the total expenditure from the total amount of commitment is about (12%).

Security in 1387 1388 1389 1390 1391 total million USD Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis External 3422 123 2091 256 104 161 414 141 16 56 6047 737 Budget

Considering the above information total spending in security sector (on budget and off budget) for the entire five years was 803 million USD.

According to the ANDS there were at total nine expected outcomes planned for this sector. In the analysis to determine the percentage of progress made in correspondence to the planned outcomes, the following main challenges were encountered:

1. Some of the baseline indexes did not have defined baselines values and targets which made it technically difficult to assess progress percentage.

2. The implementing institutions in this sector have not provided sufficient information in some cases that has negatively impacted the assessment task, and

3. The confidentiality of some information pertaining to the security sector also hindered a comprehensive assessment

Despite the challenges mentioned above, the progress made within the seven out of nine outcomes reveals that during the ANDS implementation period the sector has achieved 3.86% of its targeted goals on an average base. In the following the progress percentage for every planned outcome is illustrated:

Expected Indicator Baselines Targets Outcomes Effectively Index on progress of establishing Under Assessment, 13 Enhanced coordination coordinated joint coordination centers for the Coordination centers amongst security sector security sector ANA and ANP proposed ministry/departments (2013)

First Outcome: “Effectively coordinated security sector” is the first outcome that is measured by establishing joint coordination centers for the ANA and ANP. Based on the assessments whilst appointing the baselines for 2009 index, there existed around 13 coordination centers

and the improvement in coordination among security institutions by 2013 was defined as a goal. The achievements in this area indicates that the following 40 units were successfully established: Field coordination centers and mid-level commands, education and training, recruitment, ground forces command, logistics, procurement, intelligence, medics and radio. The specified goal for this outcome is a 100% achieved based on the reports from security sector and in consideration to the index.

Expected Outcomes Indicator Baselines Targets Number of recruited ANA personnel 64, 996 (Apr 2008) 80,000(end 2009) % completion of PAR process in MoD 80% (Apr 2008) 100% (end 2009) Index on progress of Under Assessment TBD ANA operationally equipping the ANA with technical and capable of performing administrative support those missions and Index on progress of Under Assessment TBD tasks assigned equipping the ANA by Land and Air Force Index on equipping the Under Assessment TBD ANA training centers % of ANA personnel trained 77% (2008) 100% (2013)

Second Outcome: was the “ANA operationally capable of performing those mission and tasks assigned”. There are six indexes specified to measures the percentage of progress for this outcome:

1. Number of recruited ANA personnel: the baseline for this index in 2008 was to recruit 64,996 new personnel and by the end of 2009 the number should have reached 80,000. The numbers in the report from Ministry of Defense indicate that the ANA now has 195,000 personnel. Corresponding to the goal set for 2009, this objective is a 100% complete and achieved. The mentioned personnel include ground forces, air force, infantry, mortar division and around 10,000 Special Forces. The share of Special Forces in operations during 2013 was considerably high.

2. Percent of completion of the PAR process in MoD: in 2008 the administrative reform process (PAR) was implemented 80% and by the end of 2009 it should have completed and reached a 100%. The reports from MoD indicates a 100% implementation of PAR

but the newly introduced system for Pay and Grading requires more time for implementation, and as of now the progress in this area is 20%.

3. Index on progress of equipping the ANA with technical and administrative support: in the ANDS no baseline was appointed for this index, which makes an evaluation technically difficult. As for equipping the ANA with arms, transportation and armored personnel carriers, there has been a progress of 77%.

4. Index on equipping the ANA by Land and Air Force: within this index, one ground forces corps and two aerial corps have been added to ANA. When the ANDS was written, the baseline for this index was under evaluation and no expected target was specified. Hence, assessing the progress in this area is technically difficult. However, there have been considerable achievements in this area.

5. Index on equipping the ANA training Centers: in reference to enabling the ANA, only one infantry and two aerial corps were established. As for expanding the Kabul Central Division there has been an increase in three different categories in the numbers of brigades from 17 to 36, Battalions from 82 to 230 and 32 Garrisons. The baseline for this index was not specified and there were no goals set. Thus, assessing the percentage in progress is difficult, yet all the named progresses are important milestones in the ANA development.

6. Percent of ANA personnel trained: the baseline for this index was 77% in 2008 and by 2013 it should have reached a 100%. The progress in training and education for ANA in correspondence with the quality and quantity criteria is 100%.

Conclusion: considering six indexes above, two of which do not have baselines for assessment which as mentioned before cannot be reviewed; indicates a 74% progress at an average level.

Expected Outcomes Indicator Baselines Targets

ANA Expenditure is % of ANA expenditure funded 21% (2008) (core budget) TBD fiscally sustainable from Government Revenue

Third Outcome: the third outcome names “ANA Expenditure is fiscally sustainable”. This outcome is measured by percent of ANA expenditure funded from Government Revenue. In 2008, around 21% of

security sector expenditures were financed through domestic revenues, but there were no specific figures for this index in the years ahead. Therefore, parallel to the increase in domestic income, there was a considerable increase in the numbers of ANA personnel. In 2012, 19.8% of the total public spending went to the ANA, where this figure for the years preceding was 16.6% at average.

In 2013 only 6.72% of the ANA expenditures were financed from domestic revenues, which indicate a considerable reduction as compared to the base year. The expenditures for ANA has increased in correspondence to the increase in the number of personnel, this is within the “Stability in financing the expenditures for ANA” program.

The ANP expenditures financed from domestic revenues was 20% in 2011, 16% in 2012 and 22% in 2013. The main goal was to increase the share of ANA and ANP spending out of government revenues from 21% in 2008, but there has not been any considerable progress. On an average level ANA and ANP funding through revenues makes only 19.5%. The main reason for this shortcoming is the increase in the number of personnel in both ANA and ANP and the transition of security responsibilities from NATO to Afghan forces.

Considering the rate of access to internet in particular in remote provinces and districts, the Police is able to report on a timely manner and with minimum costs. A big part of Police compounds have access to internet. Furthermore, internet has facilitated a transparent salary and payroll system for the Police personnel. Yet, due to absence of tools to measure these achievements, specifying the percentage of progress in stabilizing the finances to ANA and ANP is difficult. All in all the progress made by both MoI and MoD in this field is satisfactory.

Expected Outcome Indicator Baselines Targets

ANP operationally capable # of recruited ANP personnel 80,426 (Apr 2008) 82,000 (end 2008) of performing those % completion of PAR process in 60% (Apr 2008) 100% (end 2009) missions and tasks MoI assigned and crime rates % of ANP received logistical 85% (Apr 2008) 100% (2010) reduced support

% of ANP personnel trained 55% (Apr 2008) 100% (2010)

Fourth Outcome: the fourth expected outcome names “is the ANP operationally capable of performing those missions and tasks assigned and crime rates reduced”. There are three indexes to measure the progress made for this outcome:

1. Number of recruited ANP personnel: the ceiling of recruitment in 2008 was set for 80,000 personnel and the number had to reach to 92,000 by the end of 2010. In 2012 the ceiling increased to 157,000. On the basis of the reports, between 2007 and 2012 a total number of 121,357 eligible volunteers joined the Police forces, 1,120 civilian staff and 1,612 public servants were also recruited via competitive processes. The number of National Police personnel has doubled in comparison to the Tashkil ceiling in 2009, which indicates an important milestone for the transition of security responsibilities from NATO to Afghan forces. Currently, police forces, in addition to their defined duties, are actively participating in controlling the borders, fighting terrorism, and eradicating the poppy cultivation, processing and smuggling. These achievements indicate that 100% of the objectives for 2009 and around 80% for 2012 are completed.

2. Percentage completion of PAR process in MoI: the baseline for this index was 60% and by the end of 2009 it was supposed to be implemented a 100%. The independent commission of administrative and civil services reform initially launched the PRR at the MoI, aiming to give a formation to Tashkil structure and strengthen an organization with clear job descriptions in different but fundamental areas of the ministry. Subsequently the PAR followed by the new pay and grading systems was implemented and facilitated an in-depth review of the administrative system, their organizational structure and job descriptions. The implementation of the new system prepared the ground for recruiting capable cadres at the MoI. Therefore, the PAR and PRR programs are a 100% implemented, the new system of pay and grading is implemented 85%, and likely to be fully implemented by the end of 2014.

3. Percentage of ANP received logistic support: reportedly MoI units are 95% equipped with logistical support.

4. Percentage of ANP personnel trained: around 185,590 Police personnel are trained at training centers, special and professional courses. They include personnel from Public Protection Force, General Directorate of Prison and ALP. The number constitutes 85% of the entire Police Tashkil.

Conclusion: considering the percentage in the progress made in each index, this outcome at an average level has achieved 86% of its planned objectives.

Expected Outcomes Indicator Baselines Targets

Operational border posts are able to Index on equipping the border Under 100% protect national sovereignty posts Assessment (2013)

Fifth Outcome: the fifth expected outcome of the sector names “operational border posts are able to protect national sovereignty”; this outcome is measured through an index named “equipping the border posts. There are a total of 308 border posts with necessary installations, 491 mud built posts, 12 thanas, 146 buildings and 19 health centers. The baseline for this index was under review during the drafting of the ANDS, hence the objective was to reach a 100% of the objectives. Considering relevant reports, this index as of the moment is 85% complete.

Expected Outcomes Indicator Baselines Targets

ANP and ABP Expenditures are % of ANP and ABP expenditure 8.9% (2008) (core TBD fiscally sustainable funded from Government Revenue budget)

The Sixth Outcome: the sixth expected outcome names “ANP and ABP Expenditures are fiscally sustainable”. This outcome is measured by “percent of ANP and ABP expenditure funded from Government Revenue”. According to the reports provided by the Ministry of Finance the ANP fall only second to ANA in having the biggest share from the ordinary budget in the government, it increased to 21.7% of the budget in 2013. In the annual report of the Ministry of Finance, more than 18% of public expenditure belongs to MoI, but there are no accurate figures as to the percentage of police expenditure from domestic revenues. In 2011 the police expenditure share from the total government budget was 20%, 16% in 2012 and 22% in 2013. The main goal as security sector reports indicate was to increase the share of ANA and ANP spending’s in 2008 from 21% in the government budget, but there has not been any considerable progress. As a result the two mentioned institutions’ share from domestic income is 19.5% at an average level. The main reason cited for this shortcoming is the increase in the number of personnel in both ANA and ANP and the security responsibilities transition from NATO to the Afghan forces.

Expected Outcomes Indicator Baselines Targets

Reduced level of deaths and # square 128,478,929 Clearance of 540 million square casualties caused by UXOs, reduce meters cleared square meters of meters before end 2010 the number of affected of UXOs land communities and increased safety

precautions

The Seventh Outcome: the seventh outcome names “reduced level of deaths and casualties caused by UXOs, reduce the number of affected communities and increased safety precautions”. This outcome is

measured by the number of square meters cleared of UXOs. The baseline for 2008 was to demine 128 million m2 and by 2010 and a total area of 540 million m2.

The millennium development goals report for Afghanistan in 2012 prepared by the General Directorate of Policy, Monitoring and Evaluation in the Ministry of Economy suggested that ”Afghanistan has had considerable achievements in clearing the areas from explosives, yet it is unable to meet the deadline by Ottawa Resolution to declare Afghanistan free of unexploded ordinances by 2013”. Therefore, based on the agreement between Afghanistan and the UN this deadline for Afghanistan is extended until 2023.

Afghanistan since 2008 was able to clear 21,000 sites from explosives that equals and area of 1,857 million km2 and it is almost double to the goal set. There was also a considerable reduction in fatalities caused by unexploded devices in recent years. The number of fatalities including injuries in 2005 was 100 persons per month; in 2013 this number was only to 30 incidents per month. Therefore, the progress made within this index, indicates a 100% completion of the objectives.

Expected Outcomes Indicator Baselines Targets

Enhanced public trust on government # of districts cleared 21 Districts complied 51 Districts ability to deliver justice and security as from IAGs so far targeted IAGs are disbanded and reintegrated

The Eight Outcome: the eight outcome names “enhanced public trust on government ability to deliver justice and security as IAGs are disbanded and reintegrated”. This outcome is measured by clearing 51 districts from illegal arms. In 2013 23,344 types of different arms were collected from illegal armed groups and handed over to DIAG program. DIAG was designed for 51 districts but was implemented in 100 districts. There are a total of 365 districts across the country and implementing the DIAG program in a 100 only is not a considerable outcome that amounts to only 27% of districts.

A survey conducted by the EUPOL in collaboration with the MoI indicates that people trusted the police more each year compared to preceding years. 85% responded about better behavior and professional attitude by the Police in performing their duties. 81% of those surveyed recognized the important role of Police in improving the security, while 75% said Police had considerable ability in arresting the criminals. The survey indicates that people trust and believe in Police honesty, capability and performance.

Expected Outcomes Indicator Baselines Targets

Eventual eradication of # ha of poppy 193,000 ha By 2013, the area under poppy Poppy Production and cultivated cultivation will be reduced by half

crack down on drug compared to 2007 levels land area trafficking

The Ninth Outcome: the ninth outcome names “eventual eradication of poppy production and crack down on drug trafficking”. This outcome is measured by the hectar of poppy cultivated land area. The police has been able to eradicate poppy farms equal to 66,985 hectares, and 344 processing laboratories and destroyed 2,251 tons of drugs.

The Police was able to implement around 70% of the objectives in fighting drugs in particular in provinces with lower levels of security and a high volume of drugs smuggling. According to the report prepared jointly by the Ministry of Anti-Narcotics and UNODC, in 2012 there were no poppy cultivation at all in 12 provinces; furthermore, the income from drug related activities reduced by 3% in GDP. The income of poppy cultivation in 2012 from one hectare reduced to 4,600 USD from 10,700 the preceding year.

Sectoral Challenges:

1. Lack of a coordinated and strong regional strategy to tackle the issue of terrorism and the existence of safe terror havens outside Afghanistan

2. Lack of strong will to provide the ANSF with necessary military equipment and arms

3. Lack of figures and data (baselines and objectives) to better analyse and assess the progresses made

Suggestions:

1. Achieving a common definition of terrorism as a global threat and therefore, mobilizing forces and will to fight it

2. Drawing the support and trust of International partners in providing the ANSF with necessary military equipment and supporting the air force

3. Equipping the ANSF with modern technology that is in correspondence with today’s needs and improving the communications between the capital and provinces

GOVERNANCE SECTOR

Improving governance is essential to meet the Government’s national vision and the establishment of a stable and functioning society. The Government’s guiding principles for improving governance are openness, participation, accountability, effectiveness, efficiency, coherence, equity, inclusiveness, justice and rule of law applied at all levels of the government.

The strategic view behind establishing good governance is to ensure security and social justice in Afghanistan that is able to meet the Millennium Development Goals in the coming 15 years, where women have are represented equally in education, employment, political participation and having access to justice.

The institutions responsible for governance sector are the President’s Office, National Council (both houses), The Supreme Court, Ministry of Justice, AAO, Ministry of Hajj and Endowment, Attorney General’s Office, Government Ministry in Parliamentary Affairs, Civil Services and Administrative Reform Independent Commission, Independent Directorate of Local Governance, High Office of Anti-Corruption, Independent Elections Commission, Central Statistics Office, General Directorate of Cartography and Geodesy, and Human Rights Independent Commission.

The named budgetary institutions of the sector have had an actual approved developmental budget of 386 Million USD in the past five years, of which they only spent 132 Million USD. The average spending by this sector in the previous five years is 34%.

According to DAD data a total of 2303 million USD were committed as external budget during the five years ANDS implementation period. About 2210 Million USD of the money was spent in the sector, which equals a share of 96%.

Governance in 1387 1388 1389 1390 1391 total million USD Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis External Budget 307 205 813 467 498 626 365 563 320 349 2303 2210

Considering the above information total spending in governance sector for the entire five years reach to 2342 million USD which only 5.6% through national budget and 94.4% through external budget.

For the entire sector, a total of 18 expected outcomes are specified in the ANDS,. On an average base 66.5% of these goals are achieved. The progress percentage and their respective indexes are explained in the following:

Expected Outcomes Indicators Baselines Targets Empowered National Index on the progress of Under assessment Empowered National Assembly Assembly empowering the National to fulfill effectively its Assembly. constitutionally mandated roles by (2013)

The First Outcome: the first outcome reads “Empowered National Assembly” the progress of which is measured by the “Index on the progress of empowering the National Assembly”. The National Assembly consists of the Upper and the Lower Houses and is elected directly by the people. The following achievements can be observed:

• Legislative: improved quality of the legislative process by creating Committee Support Teams for eight targeted committees, eventually expanding support to all committees in both houses. a publicly available “Online Bill Tracker” was introduced, which is operated by the parliament, to improve legislative research capacity for parliamentarians, staff, and the general public.

• Budget and Oversight: mechanisms to improve provincial input to the budget review process and supported seven pre-budget workshops between parliamentarians, provincial council representatives, and other ministry officials were developed. The capacity of the commissions to review and analyze the national budget and the consolidated expenditure and revenue report of the Government (Qatia report) was improved. The Wolesi Jirga was supported to create a budget sub-committee focused on public accounts review. Investigatory oversight visits to provinces to monitor budget execution as well as executive performance were introduced.

• Institutional Development: the Afghanistan Parliamentary Institute (API) was launched, which is now nationally accredited as a higher learning institute. Trainings on the legislative process, committee procedures, legislative research, budget process, oversight, representation, report writing, English and Information Technology were conducted. APAP trained more than 3500 parliamentarians, staff members, civil society members, and journalists. The capacity of commission assistants in developing work plans, drafting meeting agendas, drafting bill summaries and analyzing the budget was improved.

• Constituent Outreach: worked with Parliament to negotiate and sign a memorandum of understanding (MOU) with civil society organizations (CSOs) allowing for CSO support and participation in

parliamentary processes. Designed, produced, and broadcast over 200 national interactive radio roundtables, informational spots, radio newsletters, and radio documentaries to promote public knowledge of Parliament. Helped Parliament organize key discussion forums on women’s issues, the national budget, and the appointment of women’s representatives to the Supreme Court.

According to the above findings, the progress within this index is approximately 80%.

Expected Outcomes Indicators Baselines Targets Reformed Public Index on the progress of Under assessment Reformed Public Administration reforming Public Administration. Administration (2013)

The Second Outcome: the second outcome of the sector names “Reformed Public Administration” which is measured by the Index on the progress of reforming Public Administration. The achievements made in this area are processes re-engineering completed in 244 processes in different institutions, building legal and juridical basis and Human Resources regulations, guidance, rules and regulations in different fields such as Civil Servants Law, pension and retirement, ethics code, civil services grading, in- service training, education and scholarships abroad.

The reforms further include reforming the organizational structures that covered 297,082 employees including 82% school teachers and recruitment in 360,000 posts. The second round of (PAR) included 90% of the ministries except the Ministries of Defense and Foreign Affairs, Presidential Office, Administrative Affairs Office and the Municipality. The pay and grading system was introduced to the institutions as well. The pay system implementation started in 11 municipalities in 2013.

According to the above findings the progress in this indicator estimates around 82%.

Expected Outcomes Indicators Baselines Targets Trained and Capable Index on the progress of Under By Jaddi 1392 (end-2013), a training Public Sector building capacity of Public Assessment policy for the entire public sector Workforce Sector Workforce. workforce shall be put in place to ensure that each member of the workforce gets trained

The Third Outcome: the third outcome of the sector reads “Trained and Capable Public Sector Workforce” and is measured through the index on the progress of building capacity of Public Sector Workforce. The objective of this index is to make sure every civil services employee have training once every two years and that a training policy for civil services employees is introduced by the end of 2013. The achievements in this area are as follows:

The Performance Evaluation Process is implemented in the ministries and directorates. The process in a periodic manner covered 121,704 low and high rank employees in the capital and provinces. Each year 60% of civil services employees are evaluated. Participation code for trainers and trainees was prepared and printed. Courses such as: English Language & Computer, Management (HR, Finance, Procurement, Project Management, Strategy and Planning), were conducted for 78,584 civil services employees.

The number of civil services employees’ reaches 149,594 and it doesn’t include teachers. As mentioned above, each civil servant has to participate in training once in two years, considering the total number above; it gives 74,797 employees trained per year. Thus, the progress within this index is approximately 75%.

Expected Outcomes Indicators Baselines Targets Merit Based Implementing systems, Under in furtherance of the work of the Appointments and mechanisms and Assessment Civil Service Commission, merit- Performance-based procedures to implement based appointments, vetting Reviews merit based appointments procedures and performance-based and performance-based reviews will be undertaken for civil reviews. service positions at all levels of government

The Fourth Outcome: the fourth outcome of the sector names “Merit Based Appointments and Performance-based Reviews”. The index to measure the outcome is “the progress of implementing systems, mechanisms and procedures to implement merit based appointments and performance-based reviews.” There is no specific baseline for this index but institutionalizing it by the end of 2011 was set as the target.

In a first step the existence of statutes and regulations are ought to be reviewed and subsequently the status of the implementation; the number of recruitment does not seem to be relevant because it could only be a peripheral index. Due to the fact that the statute of civil servants is practically implementable and the recruitments are taking place on that basis in all governmental institutions, this index is a 100% complete.

Additionally, the intrinsic law and performance review statute is implemented. In terms of quantity this index is completely implemented but regarding to the quality, the implementation is around 80%. This breakdown further supports the figures above; the number of positions are 149,594 (in civil services lower ranks), around 120,000 workers and 170,000 teachers are hired via competitive recruitment; 352,175 out of 408,594 workers are hired via competitive recruitment which is 86%. Therefore, the implementation rate for this index is 80%

Expected Indicators Baselines Targets Outcomes Corruption Introducing systems, mechanisms Under the corruption in the judiciary and Reduced and procedures to reduce and Assessment the government at all levels especially monitor corruption at different levels in security, customs, civil in the government and the judiciary. administration and municipalities will be significantly reduced

The Fifth Outcome: the fifth outcome of the sector names “Corruption Reduced” and is measured by the Index on the progress of introducing systems, mechanisms and procedures to reduce and monitor corruption at different levels in the government and the judiciary. There is no baseline for this index but the target was to mitigate corruption in judiciary and throughout the government in particular in security sector, customs, local governance and municipalities. Yet, Afghanistan ranks only 175th out of 177 countries in the in global corruption index 2013, and hits rock bottom along with states as North Korea and Somalia. In the 2011 report Afghanistan ranked above North Korea, Somalia and Myanmar only. The report entails the direct effects of corruption on people’s daily life, and as of 2010 one out seven Afghans had to pay bribes to get a work done. At average the bribe that people had to pay was almost three times the amount of salary an ordinary Afghan receives per month. Despite the establishment of oversight and anti-corruption mechanisms and institutions, corruption still remains rampant. The lack of reward and punishment discipline, weak law enforcement, power brokers’ influence and interference and preferential treatments are the main reasons that hamper anti- corruption activities. Therefore, in the light of above, this outcome has not met its objectives, which not only affects domestic progress but also risks the support from donors beyond 2014.

However, major achievements included the following:

1. The establishment of oversight and anti-corruption mechanisms, rules and institutions,

2. Mechanism for anti-corruption complaining hearing boxes.

3. Monitoring mechanism for corruption cases.

4. Mechanism of simplification in government agencies.

5. Developed a one year strategic plan for anti-corruption agency.

6. Developed strategic implementation procedures for government and private sector.

Finally the anti-corruption administration has not provided specific information regarding the percentage reduction in the level of corruption in government agencies, and it is difficult to estimate to calculate the percentage of the progress about the above outcome.

Expected Outcomes Indicators Baselines Targets

Enhanced Availability Index on the progress on Under The legal framework required for of Information to enhanced availability of Assessment exercise of this right provided under Public and the constitution will be put in place, Information to Public and Enforcement distributed to all judicial and Enforcement. legislative institutions, and made available to the public and, implemented.

The Sixth Outcome: the sixth outcome of the sector reads “enhanced availability of information to public and enforcement” and is measured by the “index on the progress on enhanced availability of Information to Public and Enforcement”. There is no baseline specified for this outcome. The objective was to create legal framework by the end of 2010 and share it with judiciary and legislative institutions to pave the way for people to have access to information. The achievements in this area include but are not limited to building standard IT systems in 13 provinces to ease the fast and safe access to information between the capital and provinces, information sharing, launching 34 provincial websites for performance updates, safe internet connection, systems controlling measures from the Capital, video conference facilities for deputy ministers, general directors and provincial governors, creating electronic web-based database for municipalities in the provinces, and creating systems to collect and organize security, economic and social updates. As the outcome does not have a baseline and the main objective was to create legal frameworks, the progress in this area is estimated to be 50%. Expected Outcomes Indicators Baselines Targets Improved Index on the progress of Under By Jaddi 1389 (end-2010) In line with Participation of putting plans, systems and Assessment Afghanistan’s MDGs,female participation in Women in mechanisms in place for all Afghan governance institutions,including improved participation of elected and appointed bodies and the civil Governance women in governance. service, will be strengthened by providing a specific percent reservation of seats by enacting a law of affirmative

The Seventh Outcome: the seventh outcome names “improved participation of women in governance” and is measured by the index on the progress of putting plans, systems and mechanisms in place for improved participation of women in governance. The specified objective for this outcome was to meet the Millennium Development Goals in strengthening the participation of women in all sectors including in electoral based institutions and civil services by enforcing the positive discrimination law by the end of 2010. The Ministry of Women Affairs has launched numerous programs to enhance and strengthen women participation in all walks of life including gender equality initiatives. It is worth noting that the gender equality debate within the Afghan cultural context is one of the most complexes. Since its establishment the Afghan government has strived to meet the objectives of this outcome but the multi-layer challenges in this area still remain large and a serious hindrance. Despite all, the participation of women in socio-economic and politics is substantial, examples are participation of women in National Assembly, provincial councils, cabinet, civil society, social and economic organizations. The figures provided by the Ministry of Women Affairs indicate an increase in the participation of women since 2002 in different areas of the society. In the Constitution Loya Jirga 20% of the seats

belonged to women, 12% in Emergency Loya Jirga, 25% in the Peace Jirga, and 18% in 2nd Peace Jirga and 32% in 2nd Bonn Conference. Additionally, women participation rate in Presidential, national assembly and provincial councils was 40%. 27% of the lower house and 22% in the upper house are women. According to the Administrative Reform and Civil Services Commission reports validated by the Central Statistics Office, women participation in government has increased by 22%. The following is a breakdown of women participation in different sectors: Women participation numbers 9% in the legal and judiciary sector, 9% in decision making positions, 5% in the security sector, 24% in the health sector, 19% in higher education both as students and as lecturers, 38% in primary and secondary education, 30% school teachers, 26% as teachers in girls primary schools, 34% in girls secondary schools and 30% in girls lycees, 16% increase in literacy rate, 15% in private higher education institutions as students and 7% as lecturers, 27% in private schools, and 30% in agriculture sector. Additionally, more than 200,000 women participated in development programs in the provinces. Furthermore, women are represented by 32% in civil society institutions, 35% at local councils, and a substantive increase in women participation in entrepreneurships and SMEs and there are a total of 760 businesses run by women, which is quite high compared to many countries with similar contexts as Afghanistan. The equality in recruitment between men and women in government institutions are in most cases encouraging and giving preference to women to participate. But, in many sectors such as mines and industries, construction and rural development women participation is still very low. Education and training is at the center of government efforts to encourage women and marginalized groups in participating in socio-economic activities. This task has proved to be difficult in remote areas where cultural dimension plays a greater role, for example, families are not convinced enough to send their girls to schools. The ministry of women affairs has taken and approved many initiatives to promote gender equality, examples are: the policy to tackle poverty among poor women, street beggars and women without caretakers, improving access to justice for imprisoned women, increasing girls participation in schools, preparing the draft to sustain girls education, the policy to encourage women in economics activities, the policy for women participation in private sector, and preparing the draft for preventing costly weddings. However, there are challenges that seriously hamper progress in the area. Violence against women, which happens in many forms including underage marriages, family adversaries, not putting on trial the perpetrators of violence against women, low awareness from women rights in Islamic context and existence of malign customs and practices are some to name. Therefore, in the light of above progresses made, the objectives of this index achieved, measure about 90%. Expected Outcomes Indicators Baselines Targets Nation Prepared for Index on the progress of Under Assessment By Jaddi 1389 (end-2010), an Disaster Management putting plans, systems and effective system of disaster mechanisms in place at all preparedness and response will levels for Disaster be in place. Management.

Eighth Outcome: the eight expected outcome of the sector reads “Nation Prepared for Disaster Management” which is measured by the “Index on the progress of putting plans, systems and mechanisms in place at all levels for Disaster Management”. The objective of this outcome was to establish an effective respond system to disasters by the end of 2010. As of the moment there is an

effective system within the Office of Disaster Response established that is active in supplying necessary and emergency help to those in need. Therefore, the objectives of this outcome are 100% achieved. Expected Outcomes Indicators Baselines Targets Strong and Capable Index on the progress of Under Assessment The Afghanistan Independent Independent Election creating a strong and Electoral Commission will have Commission holding capable Independent the high integrity, capacity and regular national and Election Commission resources to undertake elections sub national Elections holding regular national in an increasingly fiscally as and sub national Elections sustainable manner by Jaddi 1388 as mandated by the (ending -2009), with the mandated by the Constitution. government of Afghanistan Constitution contributing to the extent possible to the cost of future election from its own resources

The Ninth Outcome: the ninth expected outcome of the sector reads “Strong and Capable Independent Election Commission holding regular national and sub national Elections as mandated by the Constitution”. The index to measure this outcome is on the progress of creating a strong and capable Independent Election Commission holding regular national and sub national Elections as mandated by the Constitution. The baseline in regard to the IEC was under review and the goal by the end of 2009 was to provide the IEC with competent staff, necessary systems and processes to ensure holding legitimate elections across Afghanistan. The second index to measure this outcome was to equip the IEC with necessary resources, capacity and preparedness to hold elections as mandated by the constitution. The IEC was able to hold four elections that included the first presidential and provincial council’s election, first Parliamentary elections, second presidential and provincial council’s elections and the second parliamentary elections. But, IEC was not able to hold any elections at district level, therefore, MRRD with support from IDLG created village and district councils in 34 provinces. Considering the progresses and achievements made by the IEC, this outcome is 80% completed but still is dependent on foreign donors for financing. Expected Outcomes Indicators Baselines Targets Single National Index on the progress of Under Assessment By Jaddi 1392 (end-2013), civil Identity Document providing single national registry with a single national identity to all citizens in identity document will be the country. established

The Tenth Outcome: the tenth expected outcome of the sector names “Single National Identity Document” and is measured by an index on the progress of providing single national identity to all citizens in the country. The baseline is under review and the objective by the end of 2013 was to create a registration system to accommodate the single national identity document. The National Assembly recently ratified the population registration law and the ministries of interior and IT & Communication have prepared an according database. The project costs 120 million USD and will be financed by the voluntary budget from the Ministry of Finance. The electronic ID cards for all Afghan citizens will be distributed in the coming two years. Therefore, considering the objectives set for this index in the given period of time, this outcome is about 90% achieved.

Expected Outcomes Indicators Baselines Targets Census Completed and Index on the progress of Under Assessment Census enumeration fully Results Published Census operations and completed during summer of publishing of results 2008 in all districts. Publishing the full results of census in 2010

The Eleventh Outcome: is the eleventh outcome names “Census Completed and Results Published” and is measured by an index on the progress of census operations and publishing of results. The baseline is under review and the goal was to start collecting census in all districts by the summer of 2008 and to publish the results by 2010. Despite the commitment of financial aid by the international community to support the process, the surveying of the population did not start due to bad security conditions. The sampling was only carried out in Bamyan province and has just started in Kabul. So far, the methodology and planning to collect the census has only been figured out to a certain extent. Thus, the progress achieved towards this index is around 10%. Expected Outcomes Indicators Baselines Targets Statistical Baselines Index on the progress of Under Assessment By Jaddi 1392 (end-2013), Established and building statistical Reliable statistical baselines will capacity in the country be established for all quantitative the Statistical Capacity and establishing statistical benchmarks and statistical Built baselines. capacity built to track progress against them.

The Twelfth Outcome: the twelfth outcome of the sector reads “Statistical Baselines Established and the Statistical Capacity Built” and is measured by an index on the progress of building statistical capacity in the country and establishing statistical baselines. The goal for this index was to create a credible statistical foundation by the end of 2013. The progress achieved towards this index is around 50%.

Expected Outcomes Indicators Baselines Targets Mapping of Villages Index on the progress of Under Assessment By Jaddi 1388 (end-2009), and Gozars and mapping and reviewing Government will carry out reviewing their the boundaries of Villages political and administrative boundaries and Gozars. mapping of the country with villages and gozars as basic units and, the political and administrative maps will be made available at all levels for the purpose of elections,socio- economic planning and implementation of sub-national governance policy.

The Thirteenth Outcome: the thirteenth outcome reads “Mapping of Villages and Gozars and reviewing their boundaries” an is measured by an index on the progress of mapping and reviewing the boundaries of Villages and Gozars. Completing the urban mapping and verifying the boundaries in 5 cities, signing MoU with CSO and with Geodesy and Cartography Directorates to further support and strengthen the process, are the achievements in the past five years in this area. (The Geodesy and Cartography Directorate should be inquired for information and figures regarding this index). Therefore this index is achieved 100%

Expected Outcomes Indicators Baselines Targets Modern Land Index on the progress of Under Assessment A community based process for Administration System establishing a modern registration of land in all land administration administrative units and the Established system including registration of titles will be settlement of land started for all urban areas and disputes. rural areas by Jaddi 1387 (end- 2008) A fair system for settlement of land disputes will be in place by Jaddi 1386 (end- 2007).

The Fourteenth Outcome: the fourteenth outcome names “Modern Land Administration System Established “and is measure by the index on the progress of establishing a modern land administration system including settlement of land disputes. For this indicator there is no baseline. The land administration has conducted the following activities in the last five years.

1. Created a standardized computer based system (G.I.S-T.R.G- G.R.M( 2. The property directorate is working under the land administration of MAIL. 3. Kochi has accessed to land 4. Monitoring and evaluation mechanism and audit procedure during the contract. 5. Review of modern land law. 6. Training and workshop for capacity building in all over the country. 7. Some procedures structure for land disputes (lease procedure, rent procedure, and check off procedure, survey procedure ….) The land Administration achieved this indicator 100%.

Expected Outcomes Indicators Baselines Targets Sub National Index on the progress of By end-1389 (20 March 2011), Governance Policy putting in place legal, the Government will ensure policy, institutions and Formulation and implementation Developed other systems and of sub-national governance policy procedures for and, its legal and regulatory strengthening the sub- framework. This will be done national governance. through a national dialogue on sub-national governance and , with technical support of international community.

The Fifteenth Outcome: the fifteenth outcome reads “Sub National Governance Policy Developed” that is measured by the index on the progress of putting in place legal, policy, institutions and other systems and procedures for strengthening the sub-national governance. The expected goal for this index was to prepare the local governance policy draft and legal frameworks by March 2011. According to reports the local governance policy is ratified by the Ministerial Council. The implementation and prioritization frameworks are developed and currently implemented. Furthermore, the provincial council’s law is adjusted by the Ministerial Council and was sent to the Parliament for ratification. The law was most

recently ratified. The new regulations for municipalities and local governance are also developed and are currently under review by the Minister’s Council. The goals specified for this index were achieved by the end of 2013 while it was supposed to be carried out by 2011; therefore, the progress in this area is estimated at 80%.

Expected Outcomes Indicators Baselines Targets Government Offices Index on the progress of Under By end -13922 (20 March 2013), all the physically equipped to providing basic facilities assessment councils and offices including fulfill their role and amenities to all municipalities will have basic facilities government offices. and amenities including adequate built up space, computers, communication

facility and furniture. The key officials at national and subnational level will have adequate means of mobility to make connection with the communities they are serving

The Sixteenth Outcome: the sixteenth expected outcome in this sector reads “Government Offices physically equipped to fulfill their role” and is measured by the index on the progress of providing basic facilities and amenities to all government offices. There is no baseline for this index, but the goal was to provide all government office including councils and municipalities with appropriate facilities by the end of 2013. The achievements in this area are: rebuilding the Ministry of Justice’s physical infrastructures including separate facilities for female, building 10 administrative buildings in provinces by the end of 2013, building 86 complexes and buildings at district level in different provinces, building 11 residential buildings for provincial governors, building a conference hall in Wardak province, providing (Client/Server Domain Environment) for 13 provinces, purchasing computers and printers for 13 provincial councils, and creating electronic databases for provincial municipalities. As there is no baseline for this index, it is difficult to determine the scale of progress in this area. But considering the achievements made, achievements towards this index are around 70%. Expected Outcomes Indicators Baselines Targets Free Flow of Index on the progress of By end-1389 (20 March 2011), all Information from all development of a the district centers of the country the comprehensive MIS for will have internet facility to free flow of information facilitate the flow of information District Centers from all the District between the districts, Centers municipalities, provinces and, the center i.e. Kabul.

The Seventeenth Outcome: the seventeenth expected outcome of the sector reads “Free Flow of Information from all the District Centers” that is measured Index on the progress of development of a comprehensive MIS for free flow of information from all the District Centers. There is no baseline for this index but the goal was to provide all the district centers with communication facilities such as Internet by March 2011. There have not been any substantial achievements in this area and only 18 districts out of 364 have access to Internet. Detailed plans to create standard internet connection for all districts are developed, after the implementation at provincial level it will go down to districts. Therefore, the progresses in this area are at 5%.

Expected Outcomes Indicators Baselines Targets Human Rights Index on the progress of By Jaddi 1389 (end-2010), the Realized, Protected, putting in place legal, Government's capacity to comply Promoted and policy, institutional and with and report on its human Extended other systems in place to rights treaty obligations will be realize, protect, promote strengthened and extend human rights in the country.

The Eighteenth Outcome: the eighteenth outcome of the sector reads “Human Rights Realized, Protected, Promoted and Extended” which is measured by the Index on the progress of putting in place legal, policy, institutional and other systems in place to realize, protect, promote and extend human rights in the country. Increasing the government capacities in realizing and acting in accordance to Human Rights’ principles and reporting was the goal for this index by 2010. Please refer for further information to IHRC website the progress of this indicator is estimated 80% Governance Sector Conclusion: considering of all the achievements described above, the progress in the sector is estimated at 75%.

INFRASTRUCTURE DEVELOPMENT AND NATURAL RESOURCES The budgetary institutions within this sector include: Ministry of Public Works, Ministry of Transport and Civil Aviation, Ministry of Communication & Information Technology, Ministry of Water and Energy, Ministry of Urban Development, Directorate of Cartography and Geodesy, Kabul Municipality, Da Afghanistan Breshna Sherkat, New Kabul Independent Board, and Water Supply and Canalisation. In the past five years the total approved budget for this sector was 4,798 Million USD of which only 2,068 Million USD was spent. Over the past five years, the average spending in the sector was 43%. Based on DAD system the total committed fund for the past five years was (3749) million USD out of which only (2036) million USD were spent. The average spending in this sector is 54%. Security in 1387 1388 1389 1390 1391 total million USD Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis External 765 513 710 269 380 409 1017 665 877 180 3749 2036 Budget

For the entire five years total amount of 4104 million USD (internal budget +external budget) were invested in this sector. About 50.3% was taken from the internal budget and 49.7% was taken from the external budget. Energy Sub-sector:

Energy is critical to economic growth. The ANDS strategic vision and goal for the energy sector is: “An energy sector that provides drivers of growth in the economy with long term reliable, affordable energy based on market-based private sector investment and public sector oversight.” The strategy supports (1) commercially and technically efficient energy delivery as a priority; (2) reformed sector governance that will safeguard consumers, workers and resources; (3) the establishment of a market-based enabling environment where legitimate private investment will be facilitated; (4) the diversification of energy resources for long term low cost energy, energy security and clean energy; (5) identifying and supporting inter-sectoral supporting linkages, including comprehensive system-based planning not limited to projects, energy for industry and In the past five years the total budget was 525.2 million USD out of which the Ministry of Energy and Water had 392 Million USD budget and Da Afghanistan Breshna Sherkat had a budget of 91 Million USD.

Entities/ ministries 1387 1388 1389 1390 1391 total MoEW - 16 153.53 132.4 90.4 392.4 Da Breshna Sharkat - - - 72.3 59.2 132.8 Total 0 16 153.53 204.7 149.6 525.2

The progress scale towards each outcome and respective indexes are detailed in what follows:

Expected Indicator Baseline Targets Outcomes

An enabling Index on the progress of creating an enabling TBD Enabling Environment for environment for environment for private sector investment in Private Sector by 2009 private sector energy sector. investment in energy sector created

The First Outcome: The first outcome reads “An enabling environment for private sector investment in energy sector created” and is measured by the index on the progress of creating an enabling environment for private sector investment in energy sector. In the strategic document for the energy sector is no baseline specified, but facilitating an environment where private sector investments can take place by 2009 was set as a goal. The energy services law was drafted but it is not yet approved. The final draft of the energy services law in coordination with the Ministry of Justice was processed in 2013 and by a Presidential decree the issuance of temporary permits for private sector by the Ministry of Energy and Water was granted. Changing the Breshna firm to Da Afghanistan Breshna Sherkat was a first but vital step in ensuring a sustainable and reliable energy distribution without the interference of government institutions. The change also helped Breshna Sherkat to recruit competent cadres, re-engineer processes and review the distribution networks. Breshna Sherkat submit its performance reports to the firm’s Directorate Board. Therefore, the expected objectives for this index have been achieved at about 40%. The energy services law is in legislative process and awaits presidential ratification. Expected Indicator Baseline Targets Outcomes

Expanded public % of households electrified in urban areas 30% 65% (2011) power grid % of households electrified in rural areas. 10% 25% (2011) % of non-residential consumers provided 35% 90% (2011) electricity. Index on the progress of expanding public power TBD TBD grid.

The Second Outcome: The second expected outcome of the sector reads “Expanded public power grid”. Achievements towards the outcomes are measured through the following four indexes:

1. % of households electrified in urban areas: in 2008, the baseline for this index was 30% and the goals were 65% by 2011. In the current year according to data by CSO and Breshna Sherkat the access rate to electricity is at 79,8%. Meaning that 750,000 households have access to electricity which is around 4,85 million urban population. Assuming that each household has seven members at average, it means that 4,850,000 have access to electricity. CSO estimate the urban population at 6.0742 million people. The goal by 2011 was to make electricity power accessible to 65% of urban population and the figures presented by Breshna Sherkat indicate this index has achieved 100% of its goals. 2. % of households electrified in rural areas. The baseline for this index in 2008 was 10% and the goal set was an increased to 25% by 2011. Based on the figures in 2013 an estimated 3.15 million rural population has had access to electricity. CSO estimate the total rural population at

19.43 million, which means 16.2% of rural areas have access to electricity. The progress in this index is 50%

3. % of non-residential consumers provided electricity. The baseline for this in index in 2008 was 30%, and the goal set was to reach 90% by 2011. Achievements and progresses proportionate to the planned objectives. The progress in this indicator is 100%

4. Index on the progress of expanding public power grid: there is no baseline specified for this index but the progresses made in this area compared to the status in between 2006 and 2011 should be explained by Breshna Sherkat. Expected Outcomes Indicator Baseline Targets

Increased Access to Index on the progress of increasing access to 6% A strategy for the Rural Energy Services rural energy development and use of renewable energies will be developed by March 2008

The Third Outcome: The third expected outcome of the sector reads “Increased Access to Rural Energy Services” and is measured by the index on the progress of increasing access to rural energy. The baseline for this index was access to rural energy by 6% and there was not specific target set. Based on MoEW report the progress regarding this index is about 50%. Expected Outcomes Indicator Baseline Targets

Promotion of Private Index on the progress of promotion of private TBD TBD sector sector in energy sector

The Fourth Outcome: The fourth expected outcome of the sector reads “promotion of Private sector” and is measured through the index on the progress of promotion of private sector in energy sector: Re- organization of Breshna Sherkat as a first step has facilitated energy distribution without the interference by other governmental institutions, it has further facilitated smooth performance in Breshna and prevents loss. Reformation of power grids, re-organizing the firm and recruiting competent staff have had positive impacts and the performances are carried independent from the Ministry of Energy & Water and Ministry of Finance. Breshna Sherkat presents its performance reports to the Board of Directors. Breshna Sherkat is moving towards self-sufficiency and wants to stop receiving subsidy from government. Achieving this goal depends on increasing its revenues, delivering quality services and reducing the losses. There have been substantial achievements in this area but in the strategic document for energy sector, no baseline was specified for this outcome. Therefore, assessing the progress is technically difficult and assumed at about 50%. Expected Indicator Baseline Targets Outcomes

Restructured Index on the progress of restructuring energy 60% Energy sector governance Energy Sector sector governance and commercialized restructuring and Governance and operations commercialized Commercialized operations by 2010

operations % of recovery of cost of supply 60% 75% of the costs will be recovered from users by March 2011

The Fifth Outcome: The fifth outcome reads “Restructured Energy Sector Governance and Commercialized operations.” The achievement of the expected outcome is measured by the two following indexes:

1. On the progress of restructuring energy sector governance and commercialized operations: the baseline for this index was to change the corporative status (legal identity) of BreshnaSherkat to Da Afghanistan BreshnaSherkat, and 2010 was set as the starting point for re- establishment of commercial activities.

2. % of recovery of cost of supply: the baseline for this index in 2008 was 60% and it was supposed to reach to 75% by March 2011.

Core Challenges:  Lack of an interest by foreign and domestic companies in investing in the projects by Ministry of Energy and Water, the companies who have received contracts by the ministry do not meet the required technical capacity and capability.  Bad security situation in the fields where projects are to be implemented  In sufficient funding for infrastructural projects  Lack of review to renew the energy sector goals and objectives  Energy services law is not yet ratified Recommendations:  Ministry of Energy and Water should create project management units  Follow up by the minister himself on project progress  Conducting technical and guiding workshops for contractors

Water Resources Sector Sector Vision The strategic vision and goal for the water sector is to improve the livelihoods of the Afghan people of present and future generations by providing:  better access to safe drinking water,  enhanced household food security,  protection from the negative effects of droughts and floods,  sustainable development and management of water resources,  mechanisms for facilitating more effective user participation,  support to poverty reduction and private sector development,  Effective services for efficient water use in all sectors so as to facilitate economic growth and social development. The responsible institutions for achieving the goals of this sector are: the Ministry of Energy and Water (MOEW), MRRD, the Ministry of Agriculture, Irrigation and Husbandry. Over the ANDS implementation period, the approved budget of the sector years was 623Million USD, out of which 303 Million USD was spent through MOEW. The average spending of budget in the by the Water sector in the MOEW is 48.64%.

In summary, there were three outcomes expected to achieve in this sector. The average progress in the past five years in the Water Sector is around 60% to 70% and details are as follows:

Expected Outcomes Indicator Baseline Targets Improved water sector Index on the progress of putting in place Partially good Improved water legal and governance improved water sector legal and (improving) sector governance by structures and governance structures and institutions 2013 institutions in place in place.

The First Outcome: the first expected outcome of the sector names “Improved water sector legal and governance structures and institutions in place.” The index to measure the progress in this regard is “the progress of putting in place improved water sector legal and governance structures and institutions in place.” The goal was to improve the management in water sector by 2013. The reports by MOEW indicate the following achievements: 1. Legal aspect: the Water Law is reviewed and on that basis the relevant institutions have implemented the new regulations.

2. Structural aspect: The organizational structures in core directorates at the ministry are reformed and sub/river bank management in consideration of river bank principles is developed. 90% of the personnel are recruited as per the requirement of Tashkel and via pay and grading system. Worth mentioning that Afghanistan is divided to 5 river and 36 sub-river zones.

3. The Water Law is ratified and is implemented, the organizational structure at national level was reviewed and changes implemented

4. The Water High Council and the Technical Secretariat is strengthened

5. Establishing and strengthening 116 water councils to participate in water management

In summary, around 90% of the goals pertaining to this index is achieved.

Expected Indicator Baseline Targets Outcomes Index on the progress Strategies 70% Sustainable water resource Sustainable water of developing and completed management strategies and plans resources implementing Feasibilities studies for covering irrigation and drinking water management sustainable water large projects are supply will be developed by end- strategies and resources management continue 2008, and irrigation investments will plans covering strategies and plans result in at least 30% of water coming irrigation and covering irrigation and from large waterworks by March, drinking water drinking water. 2011. supply developed and implemented. % of water coming 10% TBD from large waterworks.

The Second Outcome: The second outcome reads “Sustainable water resources management strategies and plans covering irrigation and drinking water supply developed and implemented.” The progress towards this outcome is measured by two indexes explained below:

1. The progress index on the progress of developing and implementing sustainable water resources management strategies and plans covering irrigation and drinking water: the baseline for this index in 2008 was about 70% and by 2011 30% huge water resources were to be created. According to MOEW reports, the following progresses towards this index are made:

Water resources’ national strategies and policies are prepared in collaboration with relevant stakeholders and are legally processed. Plans to utilize water resources for different purposes and according to national priorities are drafted and submitted to the Water High Council

Furthermore, collecting and analyzing data on hydrological, hydro-geological and metrological, snow and glaciers survey to specify the annual water capacity is conducted. Additionally, water flooding and drought alarm systems, rebuilding dams, canals and maintaining them are regularly, are implemented. Other achievements in this area include: river bank management involving relevant stakeholders, water consumer councils, issuing permits to utilize surface and underground water resources according to the law, research to assess the volume of underground water resources, protection systems, and

bacteriology research, are achieved. In summary, this index is 90% complete in meeting the specified goals.

2. Percent of water coming from large waterworks: the baseline for this indicator is 10% of water coming from large waterworks. No specific target has been set. Based on MoEW reporting. the progress towards this indicator is estimated 70%

In summary, there were two indicators to measure the achievements towards this outcome. The average progresses in these two indicators are around 80%.

Expected Indicator Baseline Targets Outcomes Water resources Index on the improvement of water 25-30% Improved water resources for irrigation and drinking water resources for drinking for irrigation purposes. and irrigation purpose by and Drinking 2013 purposes # of Hydrometric stations, snow gauges 7 out of 234 2011 and metostation installed and equipped improved % of lands irrigated through rehabilitated 1.8 Million Ha Additional 450,000 ha and new water works (2013) % of sites where 90% of tail-enders TBD TBD receive enough water on time # of sites reserved as suitable drinking Based on recent By 2013 sites reserved as water resource surveys 20 % of suitable drinking water the sites have resource been reserved % of beneficiaries, by gender, whose TBD TBD technical knowledge and skills for managing irrigation assets have increased considerably % of households in other urban areas 15-18% 30% by end of 2011 except Kabul have access to piped water % of households in Kabul have access to 18-21% 50% (2010) piped water # of water points available for rural 10119 since TBD households establishing WatSaN department

The Third Outcome: The third expected outcome for the sector reads “Water resources for irrigation and drinking purposes improved.” To assess the scale of progress on the outcome, the following nine indexes were specified.

1. The improvement of water resources for irrigation and drinking water purposes: the baseline for this index was estimated at 25 to 30% and no specified goals were targeted. MOEW reports indicate the following progresses in the area:

a. Rebuilding irrigation systems in Balkh province, reinforcement walls along the Amu river in Takhar and Kunduz provinces, and completing the clean drinking water projects in Andkhoy, Khan Charbagh, Qoramqol and Qorghan districts

b. Rebuilding the national hydrology stations across the country to research on water resources, collect data for planning to prevent the loss of water, predicting drought and water flooding and meeting the demands from other national economy sectors. These implementation of these programs are estimated at 70%

c. The technical and economic feasibility studies for the following dams are complete and a number of them are at the designing stage: shah aros dam on ShakarDara river in Kabul province, Almar dam in Faryab province, Machlgo dam in Paktya province, Pashdan in Herat province, Shahtoot in Kabul province, Farah Road in Farah province, Kama and Gambery in Nangarhar province, Gulbahar in Panjsher province, Kilagai in Baghlan province, Lower Kokcha in Takhar province. Additionally, a number of dams are studied by the Indian company, CES that include: KheshtPul, Sultan Ibrahim, Farza, ChashmaKhoy, Hassan Taal, Samangan, Ghora, AlaSai, Shahrestan yak (waras), Shahrestan du (Kakrak), Abroyaan, Sokhtog, Nalej, ZardAlo, Zard Sang, Zahoo, Kosin and LawasMillan dams. These projects will enhance the capacity within relevant institutions to prevent the loss of river waters by flowing out of the country.

In the light of above achievements, the progress percentage in this index is estimated at about 50%

2. Number of Hydrometric stations, snow gauges and metostation installed and equipped: the baseline for this index in 2008 was to build 65 stations out of 174 as initially planned, but there were no goals and objectives specified. According to the information by MOEW the number of hydrology and metrology stations built across the country is 127 and 56 respectively. Due to security hindrances, the stations are not built in some provinces. The progress in this area is estimated 70%.

3. Percent of lands irrigated through rehabilitated and new water works: according to the baseline for this index around 1.8% million hectare land was irrigated by the new irrigation canals, the

target was to increase it 450,000 hectares by 2013. Irrigation conditions have improved according to the plans by implementing the construction projects in dams and canals. The progress in this area is 88%.

4. Percent of sites where 90% of tail-enders receive enough water on time: there is no baseline and targets specified for this index but according to the information provided by MOEW, 20% of such lands have sustainable irrigation and it will be maintained until 2013.

5. Number of sites reserved as suitable drinking water resource: there is no baseline and target specified for this index. Report by MOEW indicate the identification of 133 sites across the country with capacity to build dams, a number of them are either under feasibility study, design or construction; and the work is ongoing in this area. Implementation of this index is estimated around 50%.

6. Percent of beneficiaries, by gender, whose technical knowledge and skills for managing irrigation assets have increased considerably: it has no baseline and goals, and MOEW does not have any data related to this index.

7. Percent of households in other urban areas except Kabul have access to piped water: the baseline for this index in 2008 was between 15 – 18%, and the goal was to reach 30% by the end of 2011. MOEW does not have specific data related to this index.

8. Percent of households in Kabul have access to piped water: the baseline for this index in 2008 was between 18-21% and the goal was to reach to 50% by the end of 2010. There is no specific data available for this index the progress in this index is estimated around 10% improvement.

9. Number of water points available for rural households: there is no baseline, goal and data available. Based on NRVA 2012 data, access to water in urban area reached to 71% at rural households around 39.4% .the progress in this index is 60%.

Transport and Civil Aviation Sector The ANDS strategic vision and goal for the transportation sector is to “facilitate the progress of national development goals and reduce poverty”. The responsible budgetary institutions within this sector include: Ministry of Public Works, Ministry of Transport and Civil Aviation, and the NRAP program at MRRD to build connecting roads between villages and district centers, Ministry of Urban Development, and Municipalities.

In the past five years, the total approved budget for this sector was 188 Million USD out of which only 75 million USD were spent. This equals an average spending of 40%. The achievements in the Transportation sector specify in eight outcomes and are measured through 21 indexes. The average progress in this sector is estimated at 60%. The progresses are detailed below:

Expected Indicators Baseline Targets Outcomes

Improved % of target 3263 Km of 2236 km has been Fully upgraded and connectivity regional highways or roads rehabilitated maintained ring road 2009. through to the neighboring outAfghanistan countries and to the 40 % of all villages to be foreign % of all villages connected Target has achieved 65% connected by all-weather destinations by all-weather roads (Out of 38,000 villages roads to the national road within the region. Having updated transport Outdated policies and Improved and updated policies/regulation and regulations which need to be transport management by improved transport improved 2011 management % of all roads in 15-20 % roads are in good 70% of all roads in municipalities (i.e. cities) condition with some municipalities (i.e., cities) improved to a good improved services are improved standard % of roads in maintainable out of 2236 km of Fiscally sustainable system condition that receive rehabilitated regional for roads maintenance by regular maintenance highways, 1024 km receives End 2008 regular maintenance Index on the progress of 40% A fiscally sustainable road putting a fiscally maintenance system by End sustainable road 2008. maintenance system in place by End 2008 and its coverage Improved sidewalks and 15-20 % roads are in good Improved sidewalks and shoulders (km) (along with condition with some shoulders by 2010 improved and connected improved services drainage system)

The First Outcome: the first outcome reads “improved connectivity throughout Afghanistan and to the foreign destinations within the region.” This outcome is measured through the following seven indexes:

1. Rebuild and construction of 3,263 km highway and ring road: the baseline for this index in 2009 was building 2,236 km roads and by the end of 2010 building all the ring roads and roads that connect Afghanistan with neighboring countries was the goal. The achievements in the past five

years in this area are building 7,342 km roads that include 1,011 km highway, 857 km regional highway, 2,210 km ring roads, 3,073 km provincial roads and 191 km urban roads. Some parts of the ring road is not built yet due to bad security conditions but at average in the past five years more than a thousand km road have been built annually. Thus, the implementation of this index is estimated 100%.

2. Percent of all villages connected by all-weather roads: the baseline for this index in 2008 was to connect 9,954 out of 36,000 villages to rural roads, and the goal by 2010 was to achieve the index by 40%. The information from MRRD shows that by 2013 an estimated 6,691 villages were connected to the district centers, which is around 37% of the planned outcome. Looking at the figures of roads/km built from 2008 (7,161 km) to 2013 (20,700 km), it indicates not only reaching the goal of building 19,000 km by the end of 2013, but an additional of 8,861 km road building. As the measurement index is the number of villages connected to the district centers not the number of km, therefore, despite exceeding the goal the index has had a progress of 37%.

3. Having updated transport policies/regulation and improved transport management. Although there was no baseline specified for this index, the goal by 2011 was to improve and strengthen the transport management. There are some achievements in this area namely ratification of civil aviation law, establishing the civil aviation independent management and signing MoUs with international airlines. In regard to road transportation, the road transport law is reviewed, MoU on transport and transit is signed with Iran, Tajikistan, Turkmenistan, Turkey, Uzbekistan and Pakistan and gaining membership in TIR and IRU. In air transport department MoUs have been signed with the following countries: Germany, Russia, England, UAE, Saudi Arabia, Qatar, Oman, Iran, India, China, Turkmenistan, and Tajikistan. Additionally, membership in the following regional organizations was gained: ECO, SAARC, and TRACECA & CAREC. Considering the above achievements the progress in this index is estimated at 85%.

4. Percent of all roads in municipalities (i.e. cities) improved to a good standard; bus stops in cities and parking sites for Lorries. The baseline for this index in 2008 was providing urban roads with better services and conditions at 15-20% and by the end of 2011 70% of the urban roads were to be targeted and provided with similar services. The achievements in this area in the past five years include building 467 km asphalted road and 383 km graveled road in all the provinces excluding Kabul. In Kabul the municipality has asphalted 400 km roads. Therefore, in the past five years 867 km roads were asphalted by municipalities. The progress in this index is 75%.

5. Percent of roads in maintainable condition that receive regular maintenance: in 2008 the baseline for this index was to maintain 860 km road from 2,236 km and the goal was to establish a stable finance system for road maintenance by 2009. The achievements in this area include daily maintenance of 6,036 km asphalted road and 12,167 km graveled road. Additionally, another 100 km road is under periodic maintenance. But there is no information available on the establishment of stable finance system for maintenance. The progress is around 40% for this index.

6. Creating a stable road maintenance system by March 2008: the baseline for this index in 2007 was 40% and the target was to create a stable finance system for maintenance by the end of 2008. The ministry of Public Works has successfully established a road maintenance fund, the income source is 1 AFS additional tax per liter of oil imported to the country. The fund now has a budget of 60 Million USD and there are plans in the future to tax motor oil and motor parts imported. The progress towards this index is thus 80%.

7. Improved sidewalks with advanced waste management: according to the baseline in 2008 only about 15 – 20% of the roads had sidewalks and the target was to build and improve all the sidewalks by 2010. According to the information by Kabul municipality around 129 km sidewalk with three meters width is built. There is no information available from provincial municipalities, but the achievements are estimated equal to that of Kabul. The progress in this index is estimated 40%.

In summary, around 62% of the above mentioned outcome is realized at average in the past five years.

Expected Indicators Baseline Targets Outcomes

Lower road user Index on the rationalization of 0% Lower road user fees by costs road user costs. 75% by end 2008.

The Second Outcome: The second expected outcome reads “Lower road user costs.” There is only one index to measure this outcome: the rationalization of road user costs. There is no baseline specified for rationalizing the depreciation cost but the goal was to reduce the road tax by 75% at the end of 2008. The achievements in this area by the Ministry of Public Work are estimated 30%.

Expected Indicators Baseline `Targets Outcomes

Less journey Index on the improvement of TBD Less journey time by end time lost due to Public Transport Provision and 2012 congestion roads in urban areas and inter- provinces.

The Third Outcome: the third outcome reads “less journey time lost due to congestion this outcome is also measured by only one index, which names “improved conditions of roads in urban areas and provinces for public transportation”. It has no baseline but there has been substantial progresses made in reducing journey times in highways and inter-city routes. The progress is estimated at 70% in this area.

Expected Outcomes Indicators Baseline Targets

Improved Index on the progress of Inter-Ministerial Working Governance of Road Governance in the putting institutional Group established. TOR Transport sector Transport Sector mechanisms in place for under review progressively improved by better governance of the by 2013 Transport Sector.

The Fourth Outcome: The fourth expected outcome of the sector names “Improved Governance in the Transport Sector.” Achievements towards the outcome are measured by “implementing the environmental law on transport sector”. It has no baseline but reducing and protecting environment from pollution was the target by 2009. The following achievements have been made:

 Substantive attention has been paid to travel by air. International flights from four international airport in Afghanistan is an example (Kabul, Mazar, Herat and Kandahar airports)

 The following airports are open for regional air traffic: Nemroz, Farah, Helmand, Uruzgan, Ghazni, Kunduz, Faizabad, Maimana, Qala-e-naw, Chaghcharan, Khost, Bamyan and Daikundi. East Horizon airline has flights to all the provinces across the country.

 For emergency humanitarian supplies, Darwaz short runway airport is built

 The establishment of private airlines have helped in offering quality services for passengers

The progress in this area is estimated at 50%.

Expected Indicators Baseline Targets Outcomes

Progress of the process of 40% Kabul Kabul International Airport and completion of International 0% Heart Herat Airport are in compliance

Civil Aviation Organization with the International Civil (ICAO) compliance for Kabul Aviation Organization’s (ICAO) and Herat Airports.

Progress of the process of up 50% (KDH) Mazar-i-Sharif, Jalalabad and gradation of Kandhar, 0% (JBD) Kandahar will be upgraded with

Jalalabad and Mazar-e-Sharif 10% (MZR) runway repairs, air navigation, Airports with runway repairs, fire and rescue, and air navigation, fire and rescue and communication equipment. Index on the progress of the 50% Qalainaw Seven other domestic airports process of up gradation of 7 30% Maimana will be upgraded to facilitate airports to facilitate domestic domestic air transportation by Increased air transportation. March 2011. domestic and international # of International airports 0 2 (End 2010) passengers and constructed /rehabilitated freight traffic by # of domestic airports The feasibility studies 10 (2013) air. constructed/rehabilitated for the 10 domestic airports have been done. Air travel price index For have Airport Air transport services and costs comparable to international services cost will be increasingly competitive standards. comparable with with international market international standards and rates by March standards ,ICAO 2011.

The Fifth Outcome: the fifth expected outcome reads “increased domestic and international passengers and freight traffic by air.” The following five indexes are to measure the progress toward these outcomes:

1. Progress of the process of completion of International Civil Aviation Organization (ICAO) compliance for Kabul and Herat Airports: the baseline was 40% for Kabul Airport and 0% for Herat Airport in 2008. The goal was to upgrade those two airports by 2011 to the ICAO standards. According to the information, Kabul airport meets ICAO standards by 96% and Herat airport by 75%. The percentages are as of 2012, thus the progress is 85%.

2. Progress of the process of up gradation of Kandhar, Jalalabad and Mazar-e-Sharif Airports with runway repairs, air navigation, fire and rescue and communication equipment. Rebuilding the airstrips, aviation system, firefighting and rescue, and radio operations. According to the baseline, Kandahar airport is improved a 100% and building a new terminal is the Ministry’s development programs. Mazar airport including building the new terminal is a 100% complete, while Jalalabad airport is complete at 80% and is currently in use by NATO. The progress scope by the end of 2012 is therefore, 93%.

3. Index on the progress of the process of up gradation of seven airports to facilitate domestic air transportation. According to the baseline and specified goals, the following progresses are reported as of the end of 2012: the construction work of Qala-e-naw, Maimana, Faizabad and Chaghcharan airports are a 100% complete and ready for operation. ISAF has built an airport in Zabul province, which is equipped 80% according to the Ministry of Transport and Civil Aviation criteria and standard, and it will soon be handed over to the Ministry for further construction works. The project was among the development projects of the ministry in 2013. The construction works at the airports of Lashkargh and Tarin Kot are also fully (100%) complete. In the light of the above achievements, the progress within this index was 95% by the end of 2012.

4. Number of domestic airports constructed/rehabilitated: the goal was to finish the construction of the ten airports by the end of 2013. The achievements are as follows:

a. Kunduz airport: fencing structures are renewed, the airstrip at 2,000 meters length and 45 meter wide is built, VHF and HF equipment and a 88 kw generator are installed.

b. Bamyan airport: the initial phase which includes, soil testing, airstrip and taxi area, are complete

c. Nemroz airport: the fencing structure are 100% completed, the construction work on runway, taxi area and ramp is 30% complete.

d. Ghazni airport: the fencing structure work is complete by 100% and the construction of runway, taxiway, and ramp in gravel form is complete by 90%

e. Daikundi airport: the first phase which was extending the length of the airstrip is complete

f. Bamyan airport (Shiberto): the fencing structure is complete a 100% and the contract worth 36,000 USD for soil testing, taxiway and ramp is awarded

g. Khost airport: fencing structure is complete, the runway, taxiway and ramp construction is at 10% complete

h. Darwaz district airport: the construction work is complete by 80%

i. Farah airport: reconstruction of the existing buildings and building a new building for aerology is complete by 80%. The second phase of the project that includes building the runway, taxiway and ramp is approved by the special procurement committee of the ministry of finance.

j. Paktika airport: the Sharana airport in Paktika province will soon be handed over to ministry of transportation and civil aviation from NATO

In summary, the initial phase of construction in Bamyan, Zaranj, Ghazni and Daikundi airports is fully completed, which is 20% of the overall targeted objective. The initial works pertaining to procurement for Ghazni and Darwazaiports are underway (5% progress). In the light of above achievements, the overall progress towards the index is 25%. Lengthy procurement processes and low working capacity of contractors added by bad security conditions are the reasons for slow progress in this index.

5. Air travel price index comparable to international standards. The baseline for this index was to draft the tariffs plan for aviation services and by March 2011 adjust it to the international standard. The reports indicate the entry of numerous domestic and international airlines in the Afghan aviation sector. There are four domestic airlines (Ariana, Kam air, Safi and East horizon) and 11 international airlines (Turkish, Air Arabia, Fly Dubai, Asman Air, Mahan Air, Air India, Azarbaijan Airline, Spice jet, Gulf airline, PIA and Emirates) operating within the aviation sector. Sound competition between airlines has resulted in a substantial reduction in flight fares and as a result passengers increased. The progress within this index is therefore, 100%.

Considering the achievements made with regard to the fifth outcome, the progress is about 80%.

Expected Outcomes Indicators Baseline Targets

Improved progress of Institutional 5% Improved governance in governance of civil reform programs and a civil aviation sector by end aviation sector. reduction in the 2011 requirement of ISAF to use air facilities (Create a new Civil Aviation Authority (CAA), Progress of massive capacity To enhance capacity of the By end-2013, transport building programs in the civil Ministry, a training sector capacity will be aviation sector. programme has been enhanced finalized to the tune of 640000. ADB is funding the project.40 students will be trained under the programme.

The Sixth Outcome: the sixth outcome reads “improved governance of civil aviation sector.” There are the following two indexes to measure the progresses:

1. Progress of Institutional reform programs and a reduction in the requirement of ISAF to use air facilities (Create a new Civil Aviation Authority (CAA). The baseline for this index was 5%

in 2008 and improving the governance in civil aviation by the end of 2011 was the target. The achievements include the full (100%) implementation of administrative reform and a 30% transition of air control from the NATO to Afghanistan. At average the progress in this index is 65%.

2. Progress of massive capacity building programs in the civil aviation sector: the goal for this index was to increase and build the capacity of transportation sector. According to the information, the aviation institute is reopened, 200 trainees are sent abroad for training, radar system in Kabul airport is placed, and a simulator system is set in aviation institute. Additionally, 14 private airlines are registered and actively operating. The quality of services at airports was improved too. In the light of above achievements the progress in this index is 100%. Considering the progress on the two above indexes, achievements regarding the sixth outcome number 80%.

Expected Indicators Baseline Targets Outcomes

Improved Progress of putting institutional Inter-Ministerial Governance of Road Governance in the mechanisms in place for better Working Group Transport sector Transport Sector governance of the Transport established. TOR under progressively improved Sector. review

The Seventh Outcome: The seventh expected outcome of the sector names “improved Governance in the Transport Sector.” The progress toward this outcome is measured by the index of progress of putting institutional mechanisms in place for better governance of the Transport Sector. Improving the road transportation by 2013 was the goal. The achievements in this area include: signing transit agreements with Iran, Tajikistan, Turkmenistan, Turkey, Uzbekistan and Pakistan. The progress in this index is measured at about 50%.

Expected Indicators Baseline Targets Outcomes

Business Progress of passing enabling TBD Improved business environment for legislations and enabling environment for private private sector regulations for efficient working sector by 2012 development of the transport sector improved to create % increase in amount of taxes TBD TBD jobs and reduce and duties collected through poverty cross border trade

The Eight Outcomes: the eighth outcome names “business environment for private sector development improved to create jobs and reduce poverty.” There are two indexes to measure the progress within this outcome:

1. Progress of passing enabling legislations and enabling regulations for efficient working of the transport sector: there is no baseline for this index but the goal by the end of 2012 was to improve the environment for private sector participation in the sector. The achievements include: sound competitive environment in domestic and international services, agreement with European and Gulf region countries to establish air corridors. Additionally, agreements were signed in road transportation, reopening of civil aviation institute, capacity building for human resources to take over the air control form NATO, setting up radar system in Kabul airport and simulator system in aviation institute, registering 14 private airlines, ensuring sound competition in transport sector, and improved quality of services in the airports are the achievements. Therefore, the progress in this index is 80%.

2. Percent increase in amount of taxes and duties collected through cross border trade: there is no baseline and objectives set for this index, but estimating from custom revenues the baseline for this index in 2008 was 828 million USD, increased to 1.6 billion USD by 2012. Technically the progress in this index is around 32%.

Considering the achievements of the above two indexes, the progress in the eight outcomes is 56% at average.

Challenges in the way of implementing the planned objectives  The funding by the government to the ministry of Public Works for road maintenance is not sufficient. It is necessary to asphalt the roads once every four years which is a costly work. It is also necessary to establish a fund for roads specifically and for maintenance purposes.

 Lack of vocational schools to enhance professional skills pertaining to transportation infrastructure and lack of an interest by private sector to train their own personnel which has resulted in low working productivity for local contractors in comparison to their foreign counterparts

 Approval of infrastructural projects by the government while the technical and feasibility studies are not comprehensive, low capacity of construction and consultancies.

 Lengthy processes and procedures in technical and financial works while working with donor communities

Recommendations:  All the financial and economic aid for development purposes should be channeled through Afghan government

 The donors should share the list and specifications of the development projects with Afghanistan prior to feasibility or design phases

 Bureaucracy and lengthy procurement processes should be shortened, a successful experience from a developing country could help in this case to implement a unified procurement system

 To have a balanced growth of transportation sector in all provinces, the security officials in coordination with provincial officials must appoint their experienced and committed personnel to oversee the security dimension of development projects

 Increasing the pay for staff (in development projects) and enhancing the working environment (simplifying the procurement law)

 Establishing a fund for road maintenance

 Improved environment for private sector to participate in road maintenance

 Coming to an understanding with international donors to go in line with the priorities of Ministry of Public Works’ projects, and facilitating a monitoring role for the ministry on project implementation

Communication and Information Technology Sector The ANDS strategic vision and goal for the Information and Communication Technology (ICT) sector is to make affordable communication services available in every district and village of Afghanistan through an improved environment for private sector investment. The only institution within this sector is the Ministry of Communication and Information Technology. In the past five years the total approved budget in this sector was 196 million USD of which only was 127 million spent. Given the volume of investments in this sector and the objectives set by the ministry in contrast to ANDS goals, there were 4 outcomes and 14 indexes planned in general. In each outcome the achievements are 60% at average.

Expected Indicators Baseline Targets Outcomes

E- Index on the progress of creation of E- E-Government E-Afghanistan created by Afghanistan Afghanistan policies, strategies 2013 and pilot projects

Expected Indicators Baseline Targets Outcomes

created are already launched. # of government offices having official 15 All Government Offices web presence (2013) # of provincial government offices having 3 All Prov. Government official web presence Offices (2013) # of government offices having Chief 0 All Government Offices Information Officer (CIO) (2013) # of government offices connected 20 All Government Offices through the fiber optic (2013) The First Outcome: the first outcome names “E-Afghanistan created”. To measure the progress with regard to this outcome, the following five indexes apply:

1. Progress in “E-Afghanistan created”: the complete achievement of this index was the goal by the end of 2013. According to the information the achievements in this index include: electronic identification cards (tazkera), Afghanistan National Information Center, electronic circulation of files, and establishment of three electronic services centers. The electronic IDs and electronic circulation of files are the two main components of this index which are not yet finalized, therefore, the progress in this index is around 40%.

2. Number of governmental Institutions with official websites: the baseline for this index was 15 institutions in 2009 and the goal was to have all governmental institutions with websites in 2013. In the past five years, 25 ministries, 82 other governmental institutions, Universities, and Vocational Institutes have launched their websites. Therefore, the index is by 90% complete.

3. Number of provincial offices with website: in 2008, the baseline for this index indicated three provinces, the goal was for all provincial office to have websites in 2013. The achievements in this area indicate all 34 provincial institutions to have access to Internet and having an official website. Therefore, this index is 80% complete.

4. Number of government institutions with information department: according to this index the plan was to have all governmental institutions with a Tashkel for information department by 2013. However, achievements in the past five years in this area are very limited and only eight government institutions have information departments. Therefore the progress in this index is only around 30%.

5. Number of government institutions connected to Optic Fiber: the baseline for this index was 20 institutions in 2008. The set target was that by 2013 all the institutions are connected to optic fiber. The achievements in this index include the connection of 23 government institutions, international organizations, municipalities, banks, private telecommunication companies, ISAF forces, customs, and airports, to optic fiber. Therefore, the mentioned index is not implemented in the given timeframe and the progress is estimated around 25%.

In summary, the first outcome in this sector is achieved by 53%. The main reasons for little progress are the lengthy process of electronic IDs and the shortcoming in expansion of optic fiber across the country.

Expected Indicators Baseline Targets Outcomes

Enabling Progress of putting legal At present telecom law, An Enabling Environment by Environment enabling environment independent regulator ATRA and 2013 for the ICT Sector in open telecom market is the place. guarantor of the enabling environment. progress of building Ministry of Communications and IT ICT Sector institutions will institutions for the ICT and National ICT Council are the be built (2013) Sector. existing.

The Second Outcome: the second outcome reads “enabling environment”. There are two indexes to measure the progress of this outcome: (1) strengthening the legal framework, and (2) establishing information technology institutions. The progress within each index is as follows:

1. Progress of putting legal enabling environment for the ICT Sector in place. The achievements in this area include: communication services regulation is prepared, decrease in communication and Internet costs by 80 and 20% respectively. Therefore, the progress in this index is around 50%.

2. Progress of building institutions for the ICT Sector: the goal was to build IT institutions by 2013. The achievements are: establishing ICT council and APRA organization, and of ICT village is ready to go for procurement process. The progress in this index is therefore, around 70%.

Based on the progresses of first and second outcomes (50 and 70% respectively), this goal is achieved by 65%.

Expected Indicators Baseline Targets Outcomes

ICT Literacy Index on the progress of establishment of 15 Improved ICT Literacy, 34 improved ICT centers in 34 Provincial capitals provinces 2013

The Third Outcome: the third outcome reads “ICT literacy improved”. This outcome is measured by “establishment of ICT literacy centers in 34 provinces”. In 2008 the baseline for this index was 15 training centers and the goal by 2013 was the expansion of these centers across the country. The achievements include: conducting (CISCO) courses in six provinces as well as computer training and internet browsing courses in 29 provinces. The progress is at 50%.

Expected Indicators Baseline Targets Outcomes

Improved ICT Progress of putting in place improved GCN, DCN, VCN, By end-2010, a national coverage and infrastructure for the ICT Sector. CCN, OFC and telecommunications network Infrastructure NDC projects to be put in place so that more than 80% of Afghans will have access. % of Afghans having access to 70% 80% (2010) affordable telecommunications % increase in annual revenue USD 75 million More than US$ 100 million generated from the ICT Sector dollars per year are generated % of population access to mobile 20% Increased Access to mobile phones phones number of internet users 500,000 Increased Access to internet # of Post Offices connected to a well- 44 Increased number of post functioning communication network offices connected and equipped

The Fourth Outcome: the fourth expected outcome of the sector reads “improved ICT coverage and infrastructure”. This outcome is measured by six indexes as detailed below:

1. Progress of putting in place improved infrastructure for the ICT Sector: the goal of this index was to have 80% of Afghans having access to stable communication facilities by 2011. According to reports, around 86% of Afghans have access to either mobile phones or land lines that is around 19.77 million Afghans. Therefore, the progress in this index is 67%.

2. Percent of Afghans having access to affordable telecommunications: the baseline for this index in 2008 was set 70%. The goal was making communication accessible to 80% of Afghans until 2011. The percentage of access to communication in 2011 is reported at 86%, therefore, in the light of defined goals in 2010 and achievements made in 2012, the progress in this index is 90%.

3. Percent increase in annual revenue generated from the ICT Sector: the baseline for this index in 2008 was 75 million USD and the goal by 2011 was to increase the revenues more than 100

million USD. The reports indicate 89 million USD revenues, annually which is less than the defined goal. Therefore, the progress in this index is 89%.

4. Percent of population access to mobile phones: the baseline for this index by 2008 was 2% and there was not any specified goal. The figures indicate 80% of population having access to mobile phones, therefore, the progress in 86%.

5. Number of Internet users: the baseline for this index in 2008 was around 500,000 but with no specified goal. Now the Internet users in Afghanistan are estimated at 5 million people that make 20% of the entire population. This index is implemented by 50%.

6. Number of Post Offices connected to a well-functioning communication network and equipped: the baseline for this index in 2008 was 44 post offices but had no specified goal. Now, according to the Ministry the number of post offices has increased to 65, therefore, implemented by 50%. The progress in this outcome is 72% at average.

In summary, given the achievements in the defined outcomes (53%, 65%, 50% and 72%), the progress in this sector is estimated to be 60%.

Urban Development Sector: The ANDS strategic vision and goal for the urban development sector is to ensure increased access to improved services and affordable shelter while promoting sustainable economic development as part of the effort to reduce urban poverty through encouragement of private investment.

To realize this mentioned goals, the following institutions put efforts together: Ministry of Urban Development, Kabul municipality, Provincial municipalities (Municipalities directorate in IDLG) and Water supply and Sanitation Corporation. In the past five years these institutions total approved budget was 187 Million USD of which only 158 million USD was spent. In total, there were five outcomes expected for this sector and the progress scope indicates 54% achievements of the goals. The details of outcomes implementation is as follows:

Expected Indicators Baseline Targets Outcomes

Access to progress of providing access to secured 0% The registration of titles will be secure tenure tenure and improved services and public started for all major urban areas and improved facilities for inhabitants of informal and a fair system for settlement of services and settlements land disputes will be in place. public % of informal settlements having access to 10-15 % 50 % by 2013 facilities for basic services inhabitants of

informal settlements

The First Outcome: the first outcome names “access to secure tenure and improved services and public facilities for inhabitants of informal settlements”. The progress toward this outcome is measured by two indexes: 1. Progress of providing access to secured tenure and improved services and public facilities for inhabitants of informal settlements. The baseline for this index was zero. The goal was to start registering properties and create a transparent system to resolve land disputes. Based on the information provided by the directorate of municipalities at IDLG, a total of 518,607 property documents are registered and tax books distributed, 67,580 informal properties are included. The project was implemented within these programs: UN settlement program, Afghanistan local governance program, UNDP, and land reform program in Afghanistan. Furthermore, 4 large scale projects under shelter for urban population program were implemented in four zones across the country. The total budget of which was 1,866,985 USD. The progress within this index is 40% compared to the defined goals.

2. % of informal settlements having access to basic services: in 2008 between 10-15% inhabitants of informal settlements had access to basic services. The goal was to increase this figure to 50% by 2013, but according to the latest numbers, only 40% inhabitants of informal settlements have access to basic services. In total, 33,055,462 USD have been invested in this index the progress of this indicator is 40% Expected Indicators Baseline Targets Outcomes

Improved Progress of improving institutional In principals all the key Improved institutional institutional arrangements for coordination and institutions have agreed coordination by end coordination and monitoring of key urban indicators. upon on but details and 2008 monitoring of key actions have been to urban indicators prepared

The Second Outcome: Improved institutional coordination and monitoring of key urban indicators The progress scale in this index is measured by “progress of improving institutional arrangements for coordination and monitoring of key urban indicators.” By the end of 2008, the defined goal for this index was to improve institutional coordination. The achievements in this area include establishing Consultative Board, and local councils. The institutional coordination centers are established in 31 provinces to monitor and coordinate urban related activities and a total of 462 projects are implemented through local councils. The total investment in this index amounts to 23,000,000 USD. The progress scale towards this index thus estimates at 73%.

Expected Indicator Baseline Targets Outcomes

Progress of providing Due to capacity limitation By March 2011, Municipal improved to basic services within municipalities; the Governments will have

by urban households. urban services delivering are strengthened capacity to very low and aren't sufficient manage urban and efficient % of investment in urban 10-15 % urban roads are 70% by 2013 road networks improved with some improved services. % of households having 18-21 % h/h has access to safe in line with MDG investment in access to safe water supply piped water water supply and sanitation will in Kabul. ensure that 50% of households Increased (h/h) in Kabul will have access to access for piped water by March 2011 urban households % of households having 15-18% h/h has access to safe 30% of households (h/h) in to basic access to piped water piped water other major urban areas will services supply in other major urban have access to piped water”; by areas except Kabul. March 2011 % of households having 5-8% h/h have access to 50 % by March 2011 access to sanitation improved sanitation facilities in Kabul. % of households having 10-12% h/h have access to 30% by March 2011 access to sanitation improved sanitation facilities in other major urban areas except Kabul. Proportion of open green less than 5% 30% By 2013 spaces per developed urban area

The Third Outcome: The third expected outcome names “Increased access for urban households to basic services.” The progress toward this outcome is measured by the seven indexes below: 1. Progress of providing improved to basic services by urban households: until the baseline year 2008, the quality and volume of services in urban areas were very limited and inefficient due to low capacities at municipalities. The goal by March 2011 for municipalities was to enhance their capacities and capabilities to deliver efficient and transparent services in urban areas. As a result with the exception of Kabul, the construction work of public toilets, drainages, protecting walls, small and large bridges and sidewalks are underway in all provinces. A total of 125 projects related to this area are implemented, the cost of which was 46,277,647 USD. The progress scale in this index is around 40%.

2. Percent of investment in urban road networks: in 2008 only around 10 – 15% of urban roads were usable and had sub-roads. The goal was to increase urban road to 70% until 2013. A total of 85 projects to improve the urban road have been implemented in the past five years, 467 km roads are asphalted and another 383 km road is graveled, Kabul is not included. The total cost of this index as of now is 146,503,293 USD and the progress scale is at 75%. According to the information by Kabul municipality, 400 km roads (6-7 m wide) are asphalted in Kabul in the past five years. The total urban roads asphalted or graveled in the past five years reach 867 km which is around 70% of the defined goals.

3. Percent of households having access to safe water supply in Kabul: by 2008 only 18-21% of people had access to clean drinking water, the goal was to increase access to clean drinking water by 50% until 2013, but until the end of 2012 only 31% had access. Progress in this index is not substantial.

4. Percent of households having access to piped water supply in other major urban areas except Kabul: N/A

5. Percent of households having access to sanitation facilities in Kabul: the baseline for this index in 2008 was between 5-8% and the goal was to increase it by 50% until March 2011. By the end of 2012 only 8% of people across the country had access to sanitation.

6. Percent of households having access to sanitation facilities in other major urban areas except Kabul: the baseline for this index in 2008 was between 10-12% and the goal was to increase to 30% by March 2011. But, by the end of 2012 only 8% of the entire population had access to sanitation; therefore, the progress in this area is very low and estimated at 5%.

7. Proportion of open green spaces per developed urban area: the ratio of green areas and open spaces in urban areas was specified less than 50% as the baseline and the goal by 2013 was to reduce it by 30%. What are the progresses in this area?

In summary, given the achievements in this outcome is estimated to be 44%.

Expected Indicator Baseline Targets Outcomes

Progress of providing increased less than 5% 60% by 2013 availability of affordable shelter.

% of urban residents having 0% TBD Increased access to affordable finance availability of affordable shelter %of urban residents having The process is underway to 50% by 2013

access to housing subsidy implement mortgage system % completion of city 20% 90% by 2013 development plans for 34 provinces

The Fourth Outcome: the fourth expected outcome for the sector names “Increased availability of affordable shelter.” The progress scale of this outcome is measured by four indexes that are detailed below:

1. Progress in increased availability of affordable shelter: less than 50% of population had access to affordable shelter by 2008. The goal was to increase this index at 60%. According to the available information, less than 20% of people had access to affordable shelter by 2013. The progress in this index in comparison to the defined goals is estimated at 30%. But, considering the fact about the baseline and percentage of people with access to affordable shelter, there has been a substantial decrease in this index (access reduced to 20% from 50%), the main reasons cited are increased prices on property and lower rate of investment by government. Therefore, the progress is only around 10% in this index. What is the view of the ministry of urban development regarding?

2. Percent of urban residents having access to affordable finance. (The ministry of urban development has not provided any information regarding, despite repeated inquiries).

3. Percent5 of urban residents having access to housing subsidy. (The ministry of urban development has not provided any information regarding, despite repeated inquiries).

4. Percent completion of city development plans for 34 provinces: in total there are 28 urban development plans developed in coordination with ministry of urban development. Additionally, five grand cities master plans are completed. The baseline for this index in 2008 was 20% and was supposed to reach to 90% by the end of 2013.

In summary, given the achievements in this outcome is estimated to be 50%.

Expected Indicator Baseline Targets Outcomes

Strengthened Progress of building The process is under By 2013 Sustainable water resource institutional strengthened way has been management strategies and plans capacity to plan institutional capacity to recently initiated covering drinking water supply will be and manage plan and manage urban developed along with improved urban development. sanitation. Municipalities will be development operating under updated laws and policies and effectively and

transparently delivering urban services, with better customer service system

The Fifth Outcome: the fifth outcome names “strengthened institutional capacity to plan and manage urban development.” The progress scale toward this outcome is measured by “progress of building strengthened institutional capacity to plan and manage urban development”. The goal of this index was to create effective policies and delivering quality urban services utilizing a better system until 2013. The achievements in this area are estimated 60%.

Mining Sector The ANDS strategic vision and goal of the mining sector is to establish Afghanistan as an attractive destination for investment in the exploration and development of mineral resources. The intention is to encourage legitimate private investment in the sector so as to substantially increase government revenues, improve employment opportunities and foster ancillary development centered on mining activity. The Ministry of Mines (MoM) is the implementing institution in this sector.

In total, in the past five years 205 million USD budget was approved which was only 70 million USD was spent by this sector. The average spending is 34%.

The outcomes are detailed below:

Expected Indicator Baseline Targets Outcomes

Strong Approval of Gas Law Minerals and Creating enabling regulatory , Mineral Regulations Hydrocarbons law has environment including legal framework in and Hydrocarbons Regulations been passed one for increased investment place in mining sector (2013)

The First Outcome: the first expected outcome of the sector reads “Strong regulatory framework in place.” The index to measure this outcome includes “approval of Gas law, mineral regulations and hydrocarbons regulations.” The baselines are the progress in two above-mentioned items. The goal for this baseline is to “facilitate improved legal framework for private investments” which is not bound by any timeframe, thus making the progress assessment difficult. The main achievements in this area are: Mining law is drafted and passed by the cabinet council and currently under review by the National Assembly (the work for Pashtu translation is underway in ministry of justice), Petroleum and gas laws are under work in ministry of justice, regulations related to mining will be prepared once the mining law is passed, and the work on coal law is under work for the first time. In the light of progresses made within the legislative framework, the realization of this outcome is 80% complete according to the ministry of mines.

Expected Indicator Baseline Targets Outcomes

Increased Increase in net revenue of In current year (1386)net Increase net revenue of Private ministry of Mines revenue of ministry of mines is ministry of mines after seven Sector US$ 32 million years to US$ 1 billion Investment in mining sector

The Second Outcome: The second outcome reads “Increased Private Sector Investment in mining sector”. The index to measure this outcome is “increased in net revenues of ministry of mines”. The net revenue of MIM in 2008 was 32 million USD while reaching to 1 billion USD by 2014 was set as the target. The progress in this area is substantive. The MIM revenues in 2010 were 47M USD, 100 M USD in 2010, 90M USD in 2011 and 33 M USD in the first 8 months of 2012. The goal to reach the revenues to 1 billion USD was not realized as it was not more than 100 M annually; therefore, the progress in this outcome is 10%.

Expected Indicator Baseline Targets Outcomes

Geophysical Survey of Minerals and Surveys conducted in this regard Survey of 5% area of and Hydrocarbons cover only 10% and 4% of country's natural geological country's total hydrocarbons and resources ( minerals and information minerals respectively hydrocarbons) available

The Third Outcome: the third expected outcome of the sector names “Geophysical and geological information available”. The index to measure achievements toward this outcome reads “Survey of Minerals and Hydrocarbons”. There is no baseline and goal defined for this outcome therefore making the assessment technically challenging. The achievements in the area in past five years include: surveying of non-oil minerals by Afghanistan Geology Office with support from their US counterpart since October 2007. The key areas with substantive work carried out during 2009/2010 include Badakhshan Gold Mine, Balkhab Copper Mine, Panjsher Emerald Mine, and silver and steel mines. 24 mines with non-oil resources are identified for investment in Afghanistan. The areas under regular surveys are: Khanshencarbonate, Chaigi Hills, Balkhab Copper, Hajigak Steel, Cobalt and Copper in northern Ainak, and copper and gold in Kundelan and copper mine in DosarShaida.

Those areas identified have the potential to enhance the mineral extraction in the future. Some of those areas identified are very important as the latest surveys in 2009 and 2010 by US Geological Survey further supported the findings of Russian surveys related to existence of huge mineral resources. The above-mentioned areas are priority projects. The surveys conducted by Afghan and US Geological Survey Offices during 2009 to 2011 were designed to explore the utilization of those minerals for

domestic industrial needs. This assessment was done for marble and cement mines. The JabalSaraj and Pul-Khumri cement companies are assessed and plans to develop marble and phosphorite mines are designed. Therefore, this outcome has meet 100% its planned goals according to MoM.

Expected Indicator Baseline Targets Outcomes

Increased Renovation of Shaberghan Currently consumers of Afghan gas Increasing gas consumers access to Gas gas network and extension is less than 1% of total population to 5% of total population resources of Mazar-e-sharif gas pipeline and its network

The Fourth Outcome: The fourth outcome names “Increased access to Gas resources.” The index to measure achievements toward this outcome is “Renovation of Shaberghan gas network and extension of Mazar-e-sharif gas pipeline and its network”. The baseline for this index in 2008 was 1% access to gas and the goal was to increase it to 5% until 2013.

The main achievements in making natural gas accessible to the public in the past five years include: eight gas sites in Jarqadoq and YatemTaq for reconstruction purposes have been bidden for, once reconstructed and fixed those gas site have the capacity to increase production from 450,000 m3 to 1 Million m3 in a day. The plan is to finish the construction work by the end of the current fiscal year. It will further help renew the gas distribution network and also supply gas for Mazar industrial park. The CNG gas production will also increase from 18,000 m3 in a day. Mazar’s gas pipeline is out of use as of the moment due to no gas supply and wrecked pipeline, but the pipeline from Sheberghan to Mazar electricity complex is active and regularly under maintenance.

To conclude: the gas pipeline in Sheberghan is not yet renewed, only three out of eight gas sites are currently in use, Mazar’s gas pipeline is out of use due to lacking maintenance, and access to natural gas for 5% of people in the given timeframe is not achieved, therefore, the progress in this index is around 20%.

In summary, the progress scale in all four indexes in the Mining sector indicates 52% achievement of the defined goals at average in the past five years.

Challenges in the way of implementing the defined goals 1. The Ministry of Mines and Petroleum have had little control over deliverables. Obviously, an institution that does not have control over something it has promised to deliver, will fail. Therefore, it is important to assess the control span over what an institution commits to deliver.

2. Multiple goals lead to disorientation. The MIM has multiple priorities, in cases it helps it to achieve cross cutting issues, but it also could result in sporadic and inefficient outcome, as is the case with MIM. The priorities that MIM is currently working on include: obtaining priority programs, Tokyo mutual accountability framework, commitments to World Bank & IMF, bilateral commitments with different donors and non-governmental institutions.

Recommendations 1. In order to keep the focus and efficiency, the ministry must have plans flexible enough to accommodate new parameters as they appear.

EDUCATION SECTOR The ANDS strategic vision for this sector is that regardless of gender, ethnicity, socio-economic status or religious affiliation, all Afghans will have equal access to quality education to enable them to develop their knowledge and skills and thereby maximize their potential. An education sector that engenders a healthy workforce with relevant skills and knowledge is key to long-term economic growth.

The budgetary institutions of this sector include: Ministry of Education, Ministry of Higher Education, Ministry of Culture and Information, Science Academy, and the General Directorate of Sports. The total approved budget for this sector in the past five years was 1261 Million USD, of which only 498 Million USD were spent by the above mentioned institutions. The average spending in this sector in the past five years is 40%. Considering DAD system total committed fund for this sector 1305 million USD of which 949 million USD was spent, the average spending is 72%.

Education 2007 2009 2010 2011 2012 total in million USD Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis External 279 168 229 161 317 206 434 282 46 132 1305 949 Budget

In total, in the past five years the amount invested is 1447 million in this sector both external and internal budget.

Considering the amount invested, this sector has 9 expected outcomes measured by the 32 indicators. Based on average the implementations of the expected outcomes are estimated at 71%. The details are as below: Expected Indicators Baseline Targets Outcomes

Improved Progress of putting (% TBD) EMIS is completed, NIMA, NCB quality of systems, institutions, are on going, Education Law's education procedures and legal draft is completed, framework in place for improving the quality of education. Process of designing and Started in 1387 (% TBD) 70% of teachers pass conducting competency competency test ( minimum of test for teachers including 40% women) principals. No. of competent teachers 54,093 male (2002) At least 140,000 competent (male and female). 20,508 female (2002) EMIS teachers Increase Female teachers by 50% No. of competent Under Assessment 26,000 school principals principals (male and female) Primary Student/Teacher 43 (2002) TBD ratio Government Expenditure $12.1 (2002) TBD per student Index on the progress of Started in 1387 Competency Test for students designing and conducting prepared and implemented. competency test for students. Index on the progress of 1-6 Class Book developed New curriculum for primary and preparation and and 7-12 Class under secondary schools prepared and implementation of new developing implemented. curriculum for primary and secondary schools. Progress on establishment On progress and WB is Established separate body of separate body supporting this part responsible for standards and responsible for standards accreditation of all primary and and accreditation of all secondary schools. primary and secondary schools.

The First Outcome: improved quality of education. The level of progress in this outcome is measured by 9 indicators.

The quality of education is improved in the recent years as educated teachers have increased and more teachers received professional trainings. The educational facilities have also improved and the current situation is convincing for children to enroll. The new educational curriculum is developed and books for all classes including teacher training guides distributed. As a result the number of active students in schools including in Islamic Secondary education, have increased to 8.8 million.

The Ministry of Education has specified 9 indexes to measure the progress of the first outcome:

1. Progress of putting systems, institutions, procedures and legal framework in place for improving the quality of education: the ministry of education has taken necessary steps and actions in correspondence to ANDS mandate to improve the education quality in particular in basic education which is free and compulsory. The actions include developing IT system, approving education law and renewing the regulation on establishing private educational centers.

2. IT system for Education: The IT system facilitates decision making within the ministry, in 2007 the first survey of schools and educational centers was conducted and the data entered to the system for further processing and sharing with different stakeholders. Furthermore, the data was extensively used in policy making, improving the programs and management, the examples are drafting Second National Education Strategic Plan (2012-2015) and mid-term national education plan (2012-2014).

a. Education Law Approved and Implemented: the education law of Islamic Republic of Afghanistan was ratified by the President and published in Official Gazette in 2008. The education law has 11 chapters and 52 articles which entails the responsibilities of the Ministry of Education and the overall framework of education. In addition, it contains guidelines on children’s rights and access to education. It also instructs on establishing, enhancing and standardizing the educational centers across the country. This law is implementable at National, Provincial, District and Schools levels.

b. Private educational institutes’ regulation prepared and in implementation: this regulation is prepared in 5 chapters and 44 articles; the President signed it subsequent to the ministerial cabinet approval and was published in the official gazette in 2006. The regulation was implemented after ratification and after five years considering the changes occurred in delivering education services by private sector, it was amended and re-published in the official gazette. The new regulation contains 4 chapters and 57

articles that entails the establishment, enhancement and dissolving of private educational institutes. The new regulation puts emphasis on standardizing the system, pupils’ personal development, certain educational level for school teachers and executive boards, and the frequent monitoring by the ministry of education.

In addition to the preparation of new rules and regulations, the ministry of education has developed some policies that are part of the ministry’s plans or in separate documents. The policies aim at rationalizing and making the needs of the communities and that of the society at whole form the foundation for educational system. Some of those policies include: establishment of local schools, overall access to education, and pre-school education. Based on the policy, the out of school children that are above school age or those who live in remote areas with no access to schools, are provided with mobile and quick local and literacy classes.

The progress assessment in this index is technically difficult because in the ANDS there is no baseline and timeframe specified for it, but according to the information at hand the progress is estimated at 90% for this index.

3. Process of designing and conducting competency test for teachers including principals. According to ANDS goals 70% of teachers were supposed to take the capability assessment exam by 2013. By 2012 more than 95% teachers and school boards toke the assessment in multiple stages. The timeframe was 4 years but the ministry of education was able to implement it two years. Based on the information from general directorate of teacher training around 98% (1,751,051 teachers and 41,000 educational staff) took the assessment successfully. The capabilities for teachers are defined in 4 areas 1) professional skill in teaching the subject 2) student’s personal development 3) progress management, and 4) improved teaching process, continuous and participatory education. The teachers passing the assessment are considered having the 4 defined capabilities. After the capabilities assessment exam was conducted, teacher’s income are improved within the pay and grading system.

The progress in this index is 98%, more than the defined baseline (70%). Therefore, it is implemented and the progress is scale is more than 100%

4. No. of competent teachers (male and female). more than 39% teachers have completed the 14th grade. A professional teacher is the one who have completed minimum the 14th grade. Currently more than 19,000 teachers have either bachelor or a master’s degree and 52,000 are graduated from 14th grade. still, more than 100,000 teachers either have a 12th grade education or lower than that, therefore, they take short-term”1, 2, 3” course to obtain the

necessary capabilities for teaching. Most of the teachers with a 12th grade education have taken short-term teacher training courses and are appointed to teach primary school (1-3 grades) because at this level it is not necessary to have in-depth knowledge of the subject. But, rather the knowledge of primary education principles, pedagogy and child psychology is required at this level. The Ministry of education in the past years have established 42 teacher training centers in both the capital city and provinces followed by 174 support centers at district level. Due to bad security conditions and skilled human resources in some remote districts, the teachers are mostly recruited with a 12th grade education. At total there are 95,000 teachers with 12th grade education of which 24,000 are females and are engaged in general education program at the capital and provincial level.

The achievements in this area are substantive as the goal was to conduct the capability assessment exam for 140,000 teachers while the ministry was able to implement the program for 175,000 teachers, therefore, the progress scale in this index is 100%.

5. Number of professional principals (male & female): by the end of 2012 most of the school principals skilled and professional. The school principals are also ought to be graduated from 14th grade and must have short-term teaching and administrative trainings. The principals have received general management and school quality improvement trainings as result of which the management is better than the past decade. The school principals are recruited within pay and grading system and their salaries are determined on the basis of their skills, capabilities and achievements.

The goal for this baseline was to include 26,000 school principals and staff in the program, but it is implemented for 14,475. The challenge in this area is the information from base year which is doesn’t exist, but despite that, there has been good progress in this index which is around 56%.

6. Primary Student/Teacher ratio: in 2002 the student-teacher ratio in primary education was 43:1 and there has not been any improvement in this area in the past years. The main challenge for lack of improvement is high enrollment rates, insufficient positions for teachers and not creating new positions on the basis of needs at the ministry and local level.

Therefore, there is no substantive progress in this index, based on the information provided by the ministry of education; more efforts are required in this area. As there was no goal appointed for this index, assessing the progress scale is therefore technically difficult. Despite that the progress in this index is estimated at 50%.

7. Government Expenditure per student: the government cost per student has increased considerably in contrast to the base year. In 2007 the cost per student was estimated at 12.1 USD which was increased to 58 USD by 2012. This index had an ascending curve in particular in 2011 which was 75 USD and in 2012 around 68 USD. In the first two years from the base year the costs were higher than the subsequent two years. In 2012 the fiscal year was 9 months, therefore, the budget was lower which resulted in a descending curve. But in the subsequent years in particular in 2011 and 2012 the growth in the budget was not as rapid as the enrollment rates as a result of which the cost per student reduced. It is usual in other countries to calculate the cost per student in the ordinary budget, if calculated in this Approach; the cost per student would further decrease.

There was no goal appointed for this index, therefore, assessing the progress scale is technically difficult. But considering the unprecedented increase in the cost per student from 12 USD to 60 USD on average indicates a 70% progress.

8. Preparing and implementing the assessment for students’ achievements: the students’ educational progress assessment is prepared and currently in implementation. This scheme is based on education quality enhancement program. The designing and implementing partner in this program is (Australian Association of Education and Training Research). Some capacity building programs for the staff in this program is also currently underway. The training program for staff is designed to make them learn the experiences of other countries in enhancing the education quality and students’ progress assessment and help build a similar system for Afghanistan education system. The program is currently in pilot testing phase. The ministry of education has pilot tested the program with close collaboration from NGOs and donor organizations the results of which indicate good progress for students. Currently the schools exam system is improved, previously one teacher would prepare the exam questions for a specific subject but now the exam questions are prepared at school level by a responsible committee. The statistics indicate that more than 90% of students successfully pass the exams. In 2012 the total graduation rate from 12th grade was 186,976 across the country of which 55,785 students enrolled in higher and semi-higher governmental and private educational institutes afterwards.

Based on the information by the ministry of education, this index is in pilot testing. As there was no goal appointed for this index, assessing the progress scale is technically difficult, but despite that the progress is estimated at 50% for this index.

9. Preparing the new curriculum for primary and secondary school: the single educational curriculum is in implementation across the country. In the previous years the ministry of education in a first step prepared the overall framework for the new curriculum in a consultative process and in a second step developed the material for each school period, class and subject. Some of the school books distributed earlier at schools, were revised and re-published. More than 218 million school books are published and distributed in the previous years. The new school books are prepared according to the new developments and discoveries in science, Afghan cultural and socio-economic contexts. Subjects such as the danger of drug abuse, patriotism, human rights, civil education and etc… are paid particular attention to. In addition, to facilitate the education and promote local languages, the books are prepared and taught in other languages other than Pashtu and Dari. The languages include: Uzbeki, Turkmini, Pashaee, Noristani, Sheghnani, Gujree and Wakhani languages. There are also plans to prepare and publish school books in more local languages.

Despite the information provided by the ministry of education is not in statistical fashion or order, the progress in this index can still be assessed at 100%.

10. Independent standardizing and Evaluation Unit, primary and secondary schools: this unit is not yet established but the draft law is prepared and sent to the parliament for approval. However, there are currently different units within the ministry of education performing the evaluation task such as the general directorate of educational evaluation. Additionally, the general directorate of planning and evaluation assesses the schools against some norms to establish or promote the existing schools. Furthermore, the directorate of scientific council and standards board that reviews and develops new standards is strengthened within the ministry of education. As mentioned earlier there is no specific unit in charge for overall evaluation and standardizing but the different offices active in the area have substantive achievements. There was no baseline and goal specified for this index to assess the progress scale but it can estimate at 30%.

In summary, by counting all the achievements made in 9 indexes of the first outcome in education sector which aims at improving the education quality, the progress scale is estimated at 65%.

Expected Indicators Baseline Targets Outcomes

Literacy rates Adult Literacy rate 28% (2000) TBD improved Total enrolment level (millions) 5.9 million enrolled at schools 7.7 m children

(2007) enrolled (2010)

% of boys and girls enrolled. 35% and 35% respectively Enrolment Rates (Boys 75%, Girls 60%) (2010) No. of illiterates in the country 11.2 million illiterate (2007) Separate program for (male and female) non-formal education in place Primary Completion Rate 32.3% (2005) TBD (Percentage of all children that completed primary schooling)

The Second Outcome: Literacy rates improved: The ministry of education has facilitated literacy courses for people above the age of 15 to enhance their potentials and help them take an active role in the wider community. To assess the progress scale in this outcome there are a total of 5 indexes specified, detailed below:

1. Adult Literacy rate: the literacy rate among the elderly people in Afghanistan has increased. Based on the ANDS the literacy rate in 2000 was at 26%. As a result of the ministry of education efforts to provide the opportunity and the capacity for education, the literacy rate by 2012 was estimated at 36% in the country (45% male & 22 %). The ministry of education has further facilitated overall education to increase literacy across the country. In this regard two programs (LIFE & ELA) were implemented in association with developing partners across the country. The programs has covered and delivered educational services to 2,454,495 (49% females) since 2008.

There have been good achievements in this area as the literacy rate increased by 10% from 2000 to 36% by 2012. As there is no goal specified for this index in ANDS outcomes, the technical assessment of the progress becomes difficult, but it can be estimated at 50%.

2. Enrollment rate (in million): the baseline for this index in 2007 was around 5.9 million and the goal was to reach to 7.7 million enrollments. Based on the available information the enrollment in 2012 was 8.6 million. There has been a 2.7 million increase in enrollment from the base year until 2012. At average it 0.54% per year increase. Therefore, the progress scale in this index is 97% for 2010.

3. % of boys and girls enrolled. There has been increase in both girls and boys enrollment. The baseline in ANDS was 35% boys and 35% girls in 2007; the goal was to increase this ratio to 75% boys and 60% girls by 2010. We mentioned earlier that the enrollment rate in 2012 was 8.6

million of which 61% were boys and 39% girls. Therefore, the ratio in enrollment is 79% for boys and 55% for girls. The overall progress in this index for the past five years is 100%.

4. The illiteracy rate in the country (both men and women): the total number of illiterate people in 2007 across the country was estimated at 11.2 million where as a result of the efforts by the ministry of education the number was reduced to 9.8 million by 2012. As mentioned in the first index, the programs implemented by the ministry of education across the country helped literate lots of people. The progress scale in this index is around 50%.

5. Children with completed primary school education: according to the ANDS the rate of completing primary education in 2007 was 32.2%, it is increased to 76% by 2013. The increase in this index is an indication of the improvement in education quality and system in the past 7 years. Afghanistan educational systems is designed for 3 periods or phases which includes: primary education (grades 1-6), secondary education (grades 7-9) and lycees education (grades 10-12).

According to the information by the ministry of education, this index in the baseline year (2007) was 32.3% but it has increased to 76% by 2013 which indicates a 42.5% progress. But as many other indexes, there was no goal defined for this one too. Overall the progress scale in this index is estimated at 80%.

In summary, considering the achievements in all the five indexes, the progress is estimated at 75.4% for the second outcome.

Expected Indicators Baseline Targets Outcomes

Equal Percentage of children 55% 75% of school-age children to be opportunity having access to schools within reach of a school with for all significantly reduced gender and provincial disparity Total number of learning 7,027 (2002) TBD spaces (formal/informal) ratio of boys and girls 70% boys (2002) 50% each enrolled 30% girls (2002) No. of new school 692, 1386 At least 90% schools and buildings constructed buildings have male and female with basic amenities for facilities by 1389 both male and female progress of providing establishment of (1,200 new Established and constructed new equal opportunity for all schools and 1,200 CBS)and schools, recruitment of teachers, for education construction of 692 new especially female teachers. schools, recruitment of

149,000 teachers (40,000 Female)

The Third Outcome: Equal opportunity for all. There are five indexes to assess the progress in this outcome. They are detailed below:

1. Percentage of Children having access to school: in 2007 around 55% children had access to education and the goal was to make education accessible for 75% by the end of 2012. The enrollment has increased in 2012 to 64% (52% girl & 74% boys). Currently 61% of pupils in general education are boys and 39% girls. These figures indicate the gender equity index at 0.64 and hence lower access rate to education for girls.

The information by the ministry of education shows a 85% progress in this index by the end of 2012.

2. Total number of learning spaces (formal/informal): The numbers of schools have almost doubled in contrast to the base year. According to the ANDS the number of schools in 2002 was around 7027 across the country and a vast number of children did not have access to schools in different communities. Subsequent to the introduction of specific norms for establishing and upgrading the schools, the ministry of education was able to increase the number of schools to 14,475 of which 6,411 are primary, 3999 secondary and 4065 are lycees. Around 4,237 are boys’ school, 2,267 are girls’ school and 7,971 are utilized mixed for both girls and boys.

The ministry of education with strict consideration of equity and justness in education development has allocated necessary educational resources for all provinces, districts and villages. Despite all the efforts, more than 50% schools do not have proper buildings or have leased private compounds.

As many other indexes, there was no specific goal defined here thus making the technical assessment a difficult task. But considering the increase in school numbers from 6,326 in 2002 to 14,475 in 2012, this progress scale in for this index can be estimated at 70%.

3. Ratio of boys and girls enrolled: according to the ANDS the enrollment rates in 2002 for boys and girls were 70% and 30% respectively. The statistical report by the ministry of education indicate that girls enrollment by 2012 was 39% of overall enrollment in schools. The ministry of education has adopted different strategies to increase girls enrollment including upgrading girls schools, dispatching female teachers in rural areas, conducting local and rapid classes, building new school compounds, providing food incentives, and providing stationary and financial aid.

As indicated in ANDS, the enrollment for boys and girls in 2002 were 70% & 30% respectively, in 2012 it has reached to 61% and 39%. The progress made does not meet the goal defined by ANDS as the total progress scale is estimated at 50%.

4. No. of new school buildings constructed with basic amenities for both male and female: the baseline for this index in 2007 was 692 schools. The ministry of education increased that number to 7,000 schools by 2012. These schools provide necessary learning environment both for boys and girls. Additionally, the ministry has tried to implement the pervasive education principles in schools and therefore has established a special section within the ministry to develop and implement guidelines. These guidelines help the ministry at different levels, including providing education for children with special needs and providing training for school teachers.

As indicated in ANDS, the total number of schools with basic requirements in 2002 was 692, which increased to 7,000 by 2012. The goal for 2010 was to have a 90% increase in this index, and considering the achievements the progress is around 50%

5. Progress of providing equal opportunity for all education:, the ministry of education has recruited and dispatched female teachers to rural areas within the “global partnership for education” program. The actions further include upgrading the girls’ schools. To convince children and their parents to allow the children participate in an education is a continuous effort by the ministry. Furthermore, every school now has a council which are established via social mobility program, the children parents have membership in these councils that oversees the development and implementation of improvement plans for the schools. Additionally, the social mobility workers train the school council members in different areas, and carries out awareness programs to increase girls’ enrollment rates.

The progress scale for this index is not calculated, but there are some substantive achievements in the area. As indicated in the baseline the number of teachers have increased from 149,000 in 2007 (40,000 female teachers) to 198,000 (61,000 females teachers). The index does not have any specified goal, but overall progress is estimated at 50%.

In summary, the objectives of the third outcome considering the progresses made in the indexes, is achieved by 61%.

Expected Indicators Baseline Targets Outcomes

Improved Progress of putting in place To be determined Improved quality of academic quality of policies, institutions and systems teaching and research by 2012 academic for improving quality of teaching and academic teaching and research. research No. of faculty members To be determined Capacity building of faculty benefited from such programs members through partnership programs No. of degree or PG courses To be determined New Curriculum for all courses in where curriculum has been place by 2009 revised No. of faculty members To be determined 3000 new faculty members to be appointed (male and female) recruited from the region by 2010

The Fourth Outcome: Improved quality of academic teaching and research. There are a total of four indexes specified for this outcome, each detailed below:

1. Progress of putting in place policies, institutions and systems for improving quality of academic teaching and research. There is no baseline specified to this index but the goal was to improve the teaching and research quality by 2013. In summary the achievements in this area include: establishing the research commission at the ministry of higher education, establishing 12 research committees at the capital and provincial universities, conducting research method courses for university lecturers, implementing 11 research project at university, developing the concept for academic research policy at four universities, and recruiting 3,555 staff from the region by 2013. The ministry of higher education has focused on achieving quality rather than quantity. Though there is no baseline, the ministry was able to achieve the goal a 100%

2. No. of faculty members benefited from such programs: as mentioned earlier, 12 research committees are established in 12 Universities across the country. The ministry of higher education has provided the education opportunity abroad in MSc and PhD programs for 1,235 lecturers. The goal is achieve by a 100%.

There is no baseline and timeframe specified to achieve in this index, therefore making the progress assessment technically difficult. But given the information provided by the ministry of higher education, the goal of this index is a 100% achieved.

3. No. of degree or PG courses where curriculum has been revised: 52 curriculums are reviewed and revised. The achievements are in accordance to the plan but due to absence of a baseline, figures to indicate the change can’t be presented.

No. of faculty members appointed (male and female). The progress in this index is more than that planned therefore it is achieved by 100%.

Expected Indicators Baseline Targets Outcomes

Improved No. of students enrolled in the 52200 enrolled male 100,000 students enrolled in access to universities (male and female). and female (2007) universities by 2010 higher No. of new facilities constructed at 7 facilities constructed Construct 41 new facilities at education universities across the country. universities across the country. No. of new dormitories 2 Female dormitories Construction of 24 new constructed for males. No. of new constructed dormitories (12 for women and 12 dormitories constructed for for men) females. Index on the progress of improving TBD TBD the quality of higher education.

The Fifth Outcome: Improved access to higher education. There are four indexes to assess the progress in this outcome against, each detailed below:

1. Number of students enrolled at Universities: In 1386 the number of students enrolled at University (Male & Female) was 52200 where 100,000 were targeted by 2010. According to reports in 1392 around 250,000 students (Male& Female enrolled for the entrance exam of higher studies. From the total, 57000 have enrolled in the public University and 30,000 more have enrolled in the private University while 80,000 students enrolled in vocational and Diploma programs. The achievements in these indicators are estimated 100 percent.

2. No. of new facilities constructed at universities across the country: The baseline in 2007 was only 7 facility structure. The expected outcome for these indicators was targeted 41 new building facilities for universities. Given the data by the Ministry of higher education during the year 1388 and 1389 around 139 and 147 respectively New building facilities for University have been constructed and this number has increased to 154 in year 2011 and 165 in 2012. Therefore, looking at the data these indicators have been achieved by 100 percent. No. of new dormitories constructed for males. No. of new dormitories constructed for females. The goal was to build 24 new dorms (12 for male students and 12 for female students). Based on the information by the ministry of higher education, more than 24 new dormitories have been constructed where 8 dorms have been constructed for female and the remaining is on rent building, hence, the progress scale in this index in 2013 was more than planned. Therefore, the progress in this index is a 90%.

3. Index on the progress of improving the quality of higher education. The national committee for educational curriculum in academic program development directorate has reviewed and renewed 50 educational curriculums at four universities in the capital. Further, the soft copies of curriculums have been broadcasted and will be applied from 2013 on words across the universities.

All the Universities academic curriculum have been reviewed by the academic committee of ministry of higher education and thus, the progress of this outcome is estimated to be 80%.

Expected Indicators Baseline Targets Outcomes

Improved Progress of improving the To be Quality of vocational Education will quality of quality of vocational education. determined considerably be improved by (2012) vocational education

The Sixth Outcome: Improved quality of vocational education. This outcome is measured by “improving the quality of vocational trainings”. There was no baseline specified for this outcome but the goal was the improvement in vocational trainings by 2013.

The law to improve the vocational trainings quality was drafted and sent to the parliament which is not yet approved. Based on given information, the progress can be estimated at 50%.

Expected Indicators Baseline Targets Outcomes

Improved Index on the progress of To be determined Improved access to vocational access to improving access to vocational education will be available (2012) vocational education. education No. of persons trained through To be determined The NSDP will provide training to NSDP (male and female)) 150,000 unemployed Afghan women and men through competitive bidding procedures

The Seventh Outcome: Improved access to vocational trainings. There are two indexes specified to measure the progress made in this outcome, detailed below:

1. Improving access to vocational trainings: there is no baseline for this index but the goal was to improve access to vocational trainings by the end of 2013. Access to vocational trainings has increased considerably. The number of schools for vocational trainings has increase, on the other hand the capacity of existing schools are upgraded to enroll more students, the quality of

training and curriculum have improved too. There were 28 institutes in 2007, in 2012 there were 50 which indicate a 44% increase. The progress in this index is estimated 50%.

2. Number of trainees under the National Education Strategic Plan (male & female): This index does not have a baseline but the goal was to train 150,000 students (male & female).As indicated above, the number of vocational institutions has increased from 28 in year 2008 to 50 in the year 1392S. Further, the numbers of students have increased from 37,000 to 137,000 which indicate 72% increase in enrolling capacity, 21% are female and 79% are male students. In 2007 only 12% were female and 88% were male students. The progress in this index is 91%.

Considering the above two indicators the average progress is estimated 70%

Expected Indicators Baseline Targets Outcomes

Improved Progress to provide improved To be determined Sport facilities will be improved sports sports facilities. in all provinces of Afghanistan facilities (2012)

The Eight Outcomes: improved sports facilities. The progress in this outcome is measured by “enhanced and improved sporting facilities”. There is no baseline for this index but the goal was to improve the conditions by 2013. The National Olympic directorate during 2008 -2012 have important and achievements, building sports stadium, gymnasiums, sports complex across the center and provinces. Further , the directorate of comiiute enabled to implement its national annual planning and has good improvements regarding sports facilities across the country. 26 gymnasiums, 42 new stadiums across the country have been constructed or currently in progress . its important to be noted that private sector has a key role as 8 sports stadium have been build by the private sectore which shows 31 % of their rolls. Further, we had big achievmentms on the international level such as south Asian champaionship and significant progress in cricket. Based on the achievents and Committee report shows progress in this index is around 60s%

Expected Indicators Baseline Targets Outcomes

Enhanced Index on the progress to provide To be By 2009 make the Academy contribution enhanced contribution of the determined competent enough to promote the of the Academy in Science. cause of science Academy in Science

The Ninth Outcome: Enhanced contribution of the Science Academy The index to measure the progress in this outcome is “facilitating and improving collaborations in Science Academy”. There is no baseline

for this outcome but the goal was to strengthen the science academy by 2009. The science academy have not provided any information regarding.

Challenges:  Despite the efforts by the ministry of education, there are still 3.8 million school age children out of schools. Additionally the student-teacher ratio is higher than the education norms which are a serious hindrance for education quality.

 The education quality is deemed the most important element but in the absence of physical infrastructure and lack of necessary equipment on one hand and low educational level of some of the teachers on the other hand, makes it difficult to deliver quality education.

 The vocational trainings require more resources as to prepare the workforce in accordance to the needs of the labor market. Lack of financial aid in this area is hindering to implement the plans in action.

HEALTH AND NUTRATION The ANDS strategic objective for this sector is to improve the health and nutrition of the people of Afghanistan through quality health care and the promotion of healthy life styles. In the light of this vision the overall objective of this sector is to work closely with development partners and communities to improve the health and nutrition of Afghan people, with primary focus on women and children and underprivileged areas. The Ministry of Public Health has defined five national goals to achieve the strategic vision:

1. Reducing maternal and infant mortality

2. Reducing under-five mortality

3. Reducing the risks of epidemic outbreak

4. Reducing malnutrition, and

5. Expansion of health care system

The only budgetary institution in this sector is the Ministry of Public Health. During the ANDS implementation period 2008-2013 the total

approved development budget in this sector was 763 million USD of which 426 million USD were spent by the ministry of public health. The average budget expenditure over these five years is 56%.

Based on DAD system total committed fund for this sector was 1213 million USD of which only 845 million was spent. The average expenditure is 69%.

health in 1387 1388 1389 1390 1391 total million USD Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis

External 351 201 303 167 131 103 372 219 56 155 1213 845 Budget

In total, for the entire five years total amount of 1271 million USD were spent of which 33.5% was through internal budget and 58% external budget.

Considering the amount invested and the outcomes achieved in the health sector, the progress is estimated at 66.4%. The Ministry of Public Health has built 13 indexes to measure the progress towards the three outcomes as detailed below:

Expected Indicators Baseline Targets Outcomes

Functional regulatory framework Number of functional public and Under Assessment for quality health services in place private hospitals set up by 2013 Increased Functional organization structure quality of No. of provinces where organized Under Assessment for quality health services in place health care structure is in place by 2013 services Increased quality of health care progress of putting in place Under Assessment services will be available quality health care services throughout Afghanistan by 2013

The First Outcome: The first expected outcome of the sector reads “Increased quality of health care services.” There are four indices to measure the progress for this outcome:

1. Number of functional public and private hospitals set up: the baseline for this index in 2007 indicates 1,420 public and 190 private health care facilities. The goal was to create an overall framework for delivering health care services until 2013. According to the information by the ministry, the achievements are 50% in public and 30% in private health care services. In 2013 there were a total of 2,135 public and 230 private clinics active in the country. The policy for specifying and setting the health care clinics, health care services, medical staff, and medicine, medical and non-medical equipment was created as well. At average the progress in this index is 50%. 92

2. Number of provinces where organized structure is in place: the Ministry of Public Health has prepared a standardized map for health care facilities and has implemented it in all the provinces. Currently all 34 provinces have compounds and buildings for health care services. According to the ministry, this index is achieved by 100%.

3. Progress of putting in place quality health care services: the appointed goal was to improve the quality of health care services across the country by 2012. In the baseline year (2007) the index was 17%. The ministry was able to reach the goal in the given timeframe and according to the information it provided; the progress in this index is a 100%.

Therefore, the average progress rate considering the achievements in the indices is estimated at 80%. Expected Indicators Baseline Targets Outcomes

ii) 66% - of % of population within two hours population with 90% of population with access walking distance from PHC services nearby access to to PHC services (2010) PHCs (2006) No. of health facilities, district, provincial and regional hospitals Comprehensive referral equipped with standard package of Under Assessment system integrated with BPHS & defined clinical and diagnostic EPHS in place by 2013 Increased services access to Increase of 12% from the health care % of TB cases detected and treated 68% (2006) services baseline % of Malaria cases detected and Reduction by 60% from To be assessed using preventive treatment baseline % of children under 1 year having Achieve and sustain above received measles antigen, DPT & 77%(2006) 90% national coverage (2013). hepatitis dosage and polio drops % of children under 1 year received Achieve above 90% coverage 35% (2000) measles antigen. by 2010.

The Second Outcome: The second outcome reads “Increased access to health care services.” The progress scale towards this outcome is measured by following six indices:

1. Percent of population within two hours walking distance from PHC services: the Ministry of Public Health has increased access to health care services from 26% to 85% which indicates a 59% increase. The appointed goal for this index in 2010 was 90%, thus the progress is estimated at 90%.

2. Number of health facilities, district, provincial and regional hospitals equipped with standard package of defined clinical and diagnostic services: the baseline for this index was 1,420 health care centers and the appointed goals was to “create an inclusive health care package and hospital package program by 2013”. By 2013 there were at total 2,390 health care centers across Afghanistan. The goal of creating a functioning system is achieved and establishing targeted number of health care centers also progressed therefore, the progress scale in this index is a 100%.

3. Percent of TB cases detected and treated: the baseline for this index in 2006 was 68% and the goal was to increase that baseline to 80% by 2012. There has been a decrease but the reasons for overall reduction in tuberculosis cases are 1) changes in WHO’s estimates, and 2) increase in population; while the tuberculosis cases recorded in 2006 were 25,675 it reached to 29, 500 cases in 2012. Therefore, there is an increase compared to the base year being 2006. Given the statistics above, the progress in index is 50%.

4. Percent of Malaria cases detected and using preventive treatment: the appointed goal for this index was to reduce the Malaria cases by 60%. In 2008 a total of 81,574 cases were recorded. In 2012 there were 54,840 cases, which indicate a 33% decrease. The decrease in the fatal Pf type Malaria was 72% (4,355 in 2008 compared to 1,231 cases in 2012). There was also 31% decrease in Pv type Malaria (77,219 cases in 2008 compared to 53,609 recorded in 2012). Thus, the progress in the 4th index is 47%.

5. Percent of children under 1 year having received measles antigen, DPT & hepatitis dosage and polio drops: the appointed goal for this index to reach 90%. The ministry of Public Health has surpassed the goal of 90% meaning that the achievements by 2013 were at 92%. According to the Ministry the progress for this index is therefore 100%.

6. Percent of children less than 12 months received measles antigen: the appointed goal for this index was 90% and the Ministry of Public Health has been able to meet 85% of the goal. Therefore, according to the information by the Ministry the progress in this index is 95%.

In summary, considering the achievements in all the indices for the second outcome, the progress scale at average is 80% compared to the appointed goals.

Expected Indicators Baseline Targets Outcomes

Reduce by 50% between 2002 Effective Maternal mortality ratio 1600 deaths Reproductive /100,000 live births and 2013

and Child (2000) health system Under 5 mortality rate in the 257 deaths/1000 live Reduce by 50% between 2003 country (%) births (2000) and 2013 Reduce infant mortality rate by Infant mortality rate (IMR) in the 165 deaths per 1000 30% by 2013 from the baseline country (%) live births(2000) of 2000 The Third Outcome: Effective Reproductive and Child health system: the progress toward this outcome is measured with the three indices detailed below:

1. Maternal mortality ratio: the baseline for this index in 2002 was 1600 mortalities in each 100,000 births and the goal was to reduce it by 50% in 2013. Fortunately, the achievements in the area indicate a decrease as the mortality rate from 1600 in 2002 fell to 327 in each 100,000 births. The decrease in this index has been 80%, which means a 30% surpass of the appointed goal. Therefore, the progress in the index is a 100%.

2. Under 5 mortality rate in the country (%): the baseline for this index was 257 mortality in 2002 in each 1,000 children under the age of 5. The appointed goal was to reduce that figure by 50% between 2002 and 2013. There have been substantive achievements in this area as the mortality rate dropped to 97 in each 1,000 children under the age of 5 from 257. Therefore, making the progress scale more than the appointed goal to 100%.

3. Infant mortality rate (IMR) in the country (%): the baseline for this index in 2002 was 165 mortalities in each 1,000 children under 12 months of age. The appointed goal was to reduce that baseline by 50% in 2013. The achievements in this index are substantive. As the figures from the ministry indicates the mortality rate among this age segment has dropped to 77 from 165, which is 3% more than the appointed goal of 50%. Therefore, the progress scale in this index is 100%.

In summary, considering the progresses made in the indices, the progress scale in the third outcome is a 100%.

AGRICULTURE AND RURAL DEVELOPMENT Sector’s vision: The ANDS long-term strategic vision for agriculture and rural development is to ensure the social, economic and political wellbeing of rural communities, specially poor and vulnerable people, while stimulating the integration of rural communities within the national economy.

The institutions within this sector are the Ministries of Agriculture, Irrigation and Husbandry, MRRD and Counter Narcotics. The total actual approved budget for this sector in the past five years was 2932 million USD of which the mentioned institutions spent only 1309 million USD in the same period. The average budget execution in this sector is 44.6%

According to DAD system total committed fund (external budget) for the entire five years were 1320.5 million USD which was only spent (1093.9) million USD the average spending of this sector is 83% of the total committed fund.

ARD Sector 1387 1388 1389 1390 1391 total in million USD Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis External 842 207 457 386 382 628 235 382 158 248 2170 1850 Budget For the entire five years period a total Million of 3259 USD was invested through ARD sector which of 1303.6 Million USD around 40 percent through the national budget system and 1955.4 Million USD around 60 % through donor channels.

To achieve the goals of this sector, there were 6 expected outcomes, five of which are analyzed and points to a 72% achievement against the planned goals. The progress toward each outcome is detailed below:

1. Strengthened Local Governance Indicators Baseline Targets 24,000 by the end of # CDCs established 16,502 (2007) 2010

24,000 by the end of # CDPs completed 16,263 (2007) 2010 # of rural population benefited from financed CDPs 10.8 million (2007) 19m by the end of 2010 (Total value) of expenditure controlled by CDCs $400m (2007) $600m by end of 2010 # of rural population benefited from livelihood/human 1.8m by the end of 792,996 (2007) capital development projects 2010 # DDAs Established 256 (2007) 360 by the end of 2008 # DDPs incorporated into provincial plans # (2007) 360 by the end of 2008 2000 communities 32,000 communities # of communities aware of NR legal framework (2008) (2010) 20 communities 270 communities # of communities implementing NR management plans implementing implementing plans plans # Of provinces that have designed and implemented NR 34provinces (2018) 3 provinces (2008) systems for forests, rangelands and wildlife.

First Outcome: Strengthened local governance. The basis for this outcome is to manage both formal and informal activities pertaining to local governance including effective socio-economic activities by the respective communities and to develop their human resources capacities to uplift the livelihood of the people. There are a total of 9 indicators to measure the progress in this outcome each detailed below:

1. # CPDs Completed: National Solidarity Program has been identified as the first program of rural development and democratic governance in rural part of Afghanistan. It is via the NSP that the CDPs are deemed as the most important element in local governance. The MRRD was able to establish 15136 CDPs between 2008 and 2013, while the goal was to establish 24,000; therefore, this index is achieved by 63%.

2. # CDPs completed: the MRRD has completed 14860 (CDPs) between 2008 and 2013, while the appointed goal was to implement 24,000 (CDPs). Therefore, the progress in this index is 61%.

3. # Of rural population benefited from projects of CDPs: the baseline for this index in 2007 was around 10.8 million beneficiaries and the goal was to extend the services of CDPs to (23.7 million people by 2010. According to the information by the MRRD, the total number of beneficiaries between 2008 and 2013 were 19 million people. The progress against the appointed goal of 2010 is estimated at 80%.

4. Total value of expenditure controlled by CDCs: the baseline for this index in 2007 was to have CDPs by 2010 spend 600 million USD. According to the MRRD the CDPs total spending between 2008 and 2012 reaches to 690 million USD hence the difference between the year 2007 and 2010 is about 333 million USD. The progress in this Indicator is 89%.

5. # of rural population benefited from livelihood/human capital development projects: according to the ANDS the number of beneficiaries in 2008 from food security program was more than 790,000 and the goal was to reach 1.8 million beneficiaries by the end of 2011. The figures from the past five years indicate that 3.1 million people benefited the program which is 1.3 million less than the appointed goal, therefore, the progress in this index is 27%,

This shows that 100% of goal has already been achieved.

6. # DDAs established: the baseline for this index in 2008 indicates the establishment of 256 district Assemblies. The goal by the end of 2009 was to create 360 district Assemblies. According to the information provided by (NABDP) at MRRD, they were able to create 388 District Assemblies in the past five years. Therefore, the goal of this index is a 100% achieved.

7. # DDPs incorporated into provincial plans: combining 360 district level plans with provincial ones was an appointed goal for this index. By the end of 2013 there were 388 district level plans combined with that of the Provincial; therefore, indicating 100% progress against to the appointed goal has already been attained.

8. # of communities implementing NR management plans: in 2008 the baseline for this index was 20 communities, the goal was to reach to 270 communities . The achievements in this area indicate that 252 Communities are covered in the past five years; therefore, making the progress at 94%.

9. # Of provinces that have designed and implemented NR systems for forests, rangelands and wildlife: in 2009 the baseline for this index was 3 provinces and the goal is to include all 34 provinces by 2018. The ministry of agriculture was able to cover 25 provinces in the past five years by allocating sufficient resources. Given the pace of progress in this area, the ministry will be able to implement the goal before 2018. Therefore , making the progress at 100 %

In summary, by considering the achievements made in the 9 indices, the first outcome being “strengthening local governance” is achieved by 87%

Indicators Baseline Targets # of farmers trained in new 16,400 farmers trained ( 2008) 64,400 farmers trained ( 2010) technologies # of new farmers with vineyard 1,000 farmers use vineyard trellis 4,000 farmers use vineyard trellis trellis (2008) (2010) # business farms established 100 farms (2008) 3100 farms (2010) # saplings provided to farmers 500,000 saplings (2008) 1.5 million saplings (2010)

Increase in litres average cattle 900 litres per cattle lactation ( 2008) 1,500 litres per cattle lactation lactation (2012) # of backyard egg production 60 eggs per annum per hen (2008) 100 eggs per annum per hen (2012) per hen Small ruminant 6 month old 14 kilos (2008) 18 kg (2012) carcass weight # commercial poultry farms 200 farms (2008) 500 farms (2012) $ livestock import $458M livestock imports (2008) $229 livestock imports (2012) % of Kuchi and non-Kuchi herds 30% herds provided with services. 50% herd provided with services covered by health services. (2008) (2010) # ongoing research and 100 research and experiments for 370 research and experiments for experiments for value added value added agri products (2008) value added agri products agriculture products. # of districts covered by 98 districts (2008) 250 districts (2010) extension services to farmers Policy docs/legal framework for Drafts completed Farmers Credit System laws and farmers credit regulations enacted into law (2010) Implementing rules and Drafts completed Implementing rules and regulations regulations for market operational. (2010) development # of farmers cooperatives 1,313 coops (2008) 5,500 coops (2012) established, strengthened and operating as enterprises $ private sector investments $ n/a $ n/a Seven Centres of Excellence Centres operational and providing 3 systems in place (2010) established research results 5,300 Cooperatives established Cooperatives operational and Upgraded education system by 2013 increased production and upgraded and implemented productivity achieved Institutional, organisation and systems in place (2008) 100% RIMU completion HR systems in place Agriculture education system Existing system reviewed and upgraded and implemented evaluated (2008) % RIMU implementation 30% RIMU progress nationwide

The Second Outcome: Increased Agriculture production and productivity. There are a total of 21 indices to measure the progress of this outcome.

1. Number of farmers trained in new agricultural technology: in 2009 the baseline for this index was 16,400 farmers the appointed goal was to reach the program to 64,400 farmers. The ministry of agriculture was able to train only 1,297 farmers in horticulture and 1,500 in other

branches of agriculture. Therefore, the total number of farmers trained in new technology is 2,800 which is around 5% of the appointed goal.

2. Number of farmers having orchards: in 2009 the baseline for this index was a 1,000 farmers and the goal was to reach to 4,000 by 2011. The achievements include delivering the services to 1,700 farmers; therefore, the progress scale in this index is around 43%.

3. Number of agricultural farms created: in 2009 the baseline was a hundred agricultural farms and the appointed goal by 2013 was to create 3,100 farms. In the past five years a total of 45 farms were created via CARD-F project in the ministry, therefore the progress is less than 1%. According to the ministry of agriculture the reason for low progress in this index is lack of a proper information flow system to compile project reports implemented by the ministry.

4. Plants distributed to farmers: according to the information from ANDS the total number of plants placed in 2009 was 500,000 and the goal was to distribute 5.1 million plants across the country by 2013. The achievements in the area include distribution of 2.2 million plants to the farmers, therefore, the progress is a 100%.

The progress scale for the remaining indices is detailed in the following table: Indicators Baseline Targets Achievements (%) Increase in litres average 900 litres per cattle lactation ( 2008) 1,500 litres per cattle 100 cattle lactation lactation (2012) # of backyard egg 60 eggs per annum per hen (2008) 100 eggs per annum 100 production per hen per hen (2012) Small ruminant 6 month 14 kilos (2008) 18 kg (2012) 100 old carcass weight # commercial poultry 200 farms (2008) 500 farms (2012) 100 farms $ livestock import $458M livestock imports (2008) $229 livestock imports 100 (2012) % of Kuchi and non-Kuchi 30% herds provided with services. 50% herd provided 100 herds covered by health (2008) with services (2010) services. # ongoing research and 100 research and experiments for 370 research and 100 experiments for value value added agri products (2008) experiments for value added agriculture added agri products products. # of districts covered by 98 districts (2008) 250 districts (2010) 100 extension services to farmers Policy docs/legal Drafts completed Farmers Credit System 100

100

framework for farmers laws and regulations credit enacted into law (2010) Implementing rules and Drafts completed Implementing rules 100 regulations for market and regulations development operational. (2010) # of farmers cooperatives 1,313 coops (2008) 5,500 coops (2012) 100 established, strengthened and operating as enterprises $ private sector $ n/a $ n/a 100 investments Seven Centres of Centres operational and providing 3 systems in place 100 Excellence established research results (2010) 5,300 Cooperatives Cooperatives operational and Upgraded education 100 established by 2013 increased production and system upgraded and productivity achieved implemented Institutional, organisation systems in place (2008) 100% RIMU 100 and HR systems in place completion Agriculture education Existing system reviewed and 100 system upgraded and evaluated (2008) implemented % RIMU implementation 30% RIMU progress 100 nationwide Given the achievements detailed above, the measured progress of the second outcome in this sector is 85%. Indicator Baseline Target

106,000 hectares irrigated # of increased irrigated areas 4500 hectares irrigated (2010)

# hectares with new water efficiency 1,000 hectares are water 71,000 hectares are water techniques ( 2008) efficient (2008) efficient (2010)

# hectares with new mgt techniques 1400 hectares (2008) 60,000 hectares (2010)

# hectares with supplemental irrigation 1000 hectares (2008) 30,000 hectares (2010)

# of MAIL staff and mirabs trained 1200 trained (2008) 120,000 trained (2010)

# decentralised irrigation schemes implemented 1 scheme (2008) 25 schemes (2010)

% of rural population that have access to safe 32% (2007) 98% by the end of 2013 drinking water

% of rural population have access improved 3% (2007) 52% by the end of 2013

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sanitation facilities

19, 000 km by the end of Km of rural roads constructed and rehabilitated 13,500 km (2007) 2013

# Villages connected by road to the district 4743 (2007) 23,000 by the end of 2013 centers or major service centers.

% of rural population receiving income through participation in short-term employment 15% (2007) 25% by the end of 2013 generation activities (non-agrarian)

# of labour days generated 24.5m (2007) 101m by the end of 2013

# of villages benefiting from different sources of 7665 (2007) 14,000 by the end of 2013 electricity

% of villages that will benefit from new/ 36% (2007) 65% by the end of 2013 rehabilitated small scale irrigation schemes

# (hectares) of New irrigated areas increase 1.5 ha (2007) 1.95 ha by the end of 2013

Improved water efficiency in existing irrigation 25% (2006) 50% by the end of 2013

Third Outcome: Provision and maintenance of Agriculture and Rural Infrastructure: To measure the progress of this outcome, 16 indices were specified:

1. Number of increased irrigated areas: in 2009 the baseline for this index was 4,500 hectares under irrigation and the goal was to reach to 450,000 hectares. According to the information received currently there are 39,6000 hectares irrigated, which indicates an 88% progress compared to the appointed goal.

2. Number of hectares with new water efficiency techniques: in 2009 the baseline was around 1,000 hectares and the goal by 2013 was to increase that number to 71,000 hectares. The achievement in this area is 23,060 hectares, which indicates only a 33% progress.

3. Number of hectares with new MGT techniques: the baseline for this index in 2009 was 1,400 hectares and the goal by 2010 was to cover 60,000 hectares of land. According to the information, 28,700 hectares of land are currently managed with new management system. Therefore, the progress is 48%.

4. Number of hectares with supplemental irrigation: in 2009 the baseline for this index was around 1,000 hectares equipped with irrigation system. The goal by 2010 was to reach 30,000

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hectares. In 2013 around 13,344 hectares of land had access to irrigation system. Therefore, the progress in this index is less than 45%.

5. Number of MAIL staff and mirabs trained: the baseline for this index in 2009 was 1200 and the goal by 2010 was to train 120,000staff and Mirabs. But according to the information provided only 500 have received such training which is less than 1% progress compared to the appointed goal. The reason for low progress is cited the unrealistic goal of 120 thousand.

6. Number of decentralized irrigation schemes implemented: the baseline for this index in 2008 was only one acheme and the goal by the end of 2010 was to have 25schemes. The achievements in this area by the end of 2012 indicate the implementation of 78 schemes , therefore, exceeding the appointed goa progress shows 100% achievement

7. Percent of rural population that has access to safe drinking water: the baseline for this index in 2008 was around 32% and by the end of 2013 the goal was to increase access to clean drinking water to 98%. According to the information by the ministry in the past five years, only 37% people had access to clean drinking water, which indicates only a 7.8% progress compared to the baseline. The overall progress is estimated 38%.

8. Percent of rural population having access to improved sanitation facilities: the baseline for this index in 2008 was 2.3% and the goal was to reach to 52% by the end of 2013. According to the MRRD the achievement in this area is very limited. The progress can be estimated at 10%.

9. Km of rural roads constructed and rehabilitated: the baseline for this index in 2008 was 13,500 km of road and the appointed goal was to build 19,000 km of road by the end of 2013. The achievement in this area exceeds the appointed goal as in the past five years a total of 21168 km of road was either newly built or reconstructed.

10. Number of villages connected to district centers or major service centers: the baseline for this index was 4,743 and the appointed goal was to reach to 23,000 by the end of 2013. According to MRRD only 2612 villages are newly connected to district centers, which are 11% of the appointed goal.

11. Percent of rural population receiving income through participation in short-term employment generation activities (non-agrarian): the baseline was 15% and the goal was to reach 25% by the end of 2013. According to MRRD only 3% of rural population is involved in short-term income generating activities. Note: if the total number of working days counts 31 million and the short-term employment is defined for a period of one week, then there is employment for 4.5

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million rural households. While the total rural population is estimated at 19 million, the figure above will give 34% of rural short-term employment.

12. Number of labor days generated: the baseline was 25.5 million working days and the goal was to create 101 million working days by the end of 2013. According to the information 31 million working days are created which compared to the appointed goal indicates a 31% progress.

13. Number of villages benefiting from different sources of electricity: the baseline for this index in 2008 was 2,038 villages benefiting from the program, but there were no goals defined which makes the assessment technically challenging. According to the information provided, currently 5487 villages have access to electricity power via different sources. NSP estimates the total number of villages at 39,000. Therefore, only 14% of villages have access to electricity power.

14. Percent of villages that will benefit from new/ rehabilitated small scale irrigation schemes: according to the baseline 36% villages were benefiting the program and the goal by 2013 was to increase that to 65%. The achievements indicate a 34% compared to target.

15. Number of new irrigated area increased : the baseline was 1.5 million hectares in 2007 and by the end of 2013 the goal was to reach 1.92 million hectares of land. The information provided indicates a 100% achievement of the goal.

16. Improved water efficiency in existing irrigation the baseline in 2006 for this index was 25% and the goal was to reach to 50% by the end of 2013. The achievements in this area include 85% progress in over all irrigation system and 40% progress in improving the efficiency in existing irrigation system. The overall progress scale in this index is 100%.

In summary, considering the achievements made in the 16 indices compared to the appointed goals, the progress in this outcome is 50%.

Indicators Baseline Targets

Protocols for collaboration and coordination between Protocols agreed and ministries involved in early warning and preparedness n/a implemented by 2008 system against floods and other natural disasters

# of accurately and timely provision of information on most vulnerable households living in specific provinces n/a # by the end of 2013 and districts by FEWSNET, and appropriate analysis of NRVA data.

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# household protected from hazards 7,000 (2007) 30,000 by the end of 2013

6,000 km km of roads cleared of snow 30,000 by the end of 2013 (2006)

Metric tons of food stuff distributed # (2007) 780,040 MT by the end of 2013

# of FFW labour days generated # (2007) # by the end of 2013

# of accurately completed and confirmed Disease n/a # by the end of 2013 Reports submitted

# of outbreak investigations carried out by PVO and VFUs n/a # by the end of 2013

Fourth Outcome: The fourth expected outcome of the sector reads “Provision of Disaster and Emergency Preparedness.” The following indices measure achievements toward this outcome:

1. Protocols for collaboration and coordination between ministries involved in early warning and preparedness system against floods and other natural disasters: Afghanistan is facing serious risks of natural disasters as more than 70% of settlements are vulnerable before earthquakes, drought, flooding, land sliding, avalanches and extreme cold weathers. There were no baseline and goal appointed for this index, yet according to the information provided by the ministry of agriculture there have been protocols for collaboration signed between different ministries to respond quickly in emergency situations. Therefore, the progress in this index is 100%.

2. # of accurately and timely provision of information on most vulnerable households living in specific provinces and districts by FEWSNET, and appropriate analysis of NRVA data.): the ministry of agriculture in collaboration with other relevant ministries and stakeholders have developed a system which regularly produces four types or reports (weekly, monthly & etc… on a need basis). There is now baseline and goal for this index but the ministry of agriculture indicates the progress in this index at 100%.

3. # Household protected from hazards: the baseline for this index in 2008 was 7,000 households and the goal by 2013 was to extend the protection coverage to 30,000 households. According to the information by the ministry of agriculture, a total of 12271 households are protected from hazards. Therefore, the progress in this index exceeds the appointed goal and is more than 40%.

4. km of roads cleared of snow): the baseline for this index in 2008 was 6,000 km road and the goal was to reach 30,000 km by 2013. Information provided by the ministry of agriculture indicates that over the past five years around 6792 km of roads was cleaned of snow which is

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22% of the appointed goal. It is worth noting that the figures are only provided by the ministry of agriculture and despite many inquiries the ministry of public works and National disaster response agency did not provide any information regarding, while the Salang pass, Tera pass and other highways are regularly serviced during winters by the ministry of public works. Therefore, the progress for this index is estimated at 50%.

5. Metric tons of food stuff distributed there are different sectors involved in food distribution including state and international agencies. The baseline was not specified in 2008 but the goal was to distribute 78,000 metric ton wheat over the course of five years. According to the information provided by the ministry of agriculture, over the past five years 75,000 metric ton wheat was distributed across the country and an additional 250,000 metric ton food was distributed by the MRRD. Therefore, the goal is achieved by 50%, and if the figures from natural disaster response agency existed the progress scale would be even higher.

6. # of FFW labor days generated: there are no baseline and any goal for this index that makes the technical assessment challenging. But according to the MRRD in the past five years a total of 39 million working days for food were created, therefore, the progress is 100%.

In summary, the fourth outcome as mentioned earlier has 9 indices. There were no information received for three indices but considering the achievements in the other six indices, the progress scale for fourth outcome is estimated 85%

Indicators Baseline Targets

# of relevant laws approved N/A - N/A -

# of key legislation and regulatory areas left unattended N/A N/A -

% of micro/SME benefiting from improved access to financial N/A 20% by the end of 2013 services

# of branches (banks and MFI) in rural areas; total lending to agro- N/A - N/A business, total lending to other rural enterprises

# of agro-businesses established N/A 136,584 by the end of 2013

# of informal enterprise groups of men and/or women N/A - N/A

8 Regional Offices servicing 28 # Business Development Services established N/A provinces by end of 2013

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Fifth Outcome: Promoted and Facilitated Economic Regeneration. To measure the progress in this outcome, 7 indices are specified each detailed below:

1. # of relevant laws approved: there are no baseline and goal specified for this index in the ANDS but the information provided by the ministry of agriculture indicates the approval and implementation of 7 laws and 8 regulations. It is estimated that 70% of the target has been attained in this indicator.

2. # of key legislation and regulatory areas left unattended: there are no baseline and goal for this index as well, but the information by the ministry of agriculture indicate the preparation of 11 laws regarding the water governance over the past five years. We can say that 70% of the selected target has been achieved .

3. % of micro/SME benefiting from improved access to financial services: this index did not have any baseline but the goal was to increase the status quo by 20%. According to the information, around 483 SMEs are established and active in this sector. The progress is estimated 80%.

4. # of branches (banks and MFI) in rural areas according to MRRD the goal for this index was to create 8,500 Women Saving Funds, of which 6627 are created. Additionally, 1200 Women Investment Groups were planned and 830 created. The progress scale in this index is 70%.

5. # of rural households receiving services from formal financial institutions: the baseline for this index in 2008 was 219 thousand households and the goal was to extend this service by 2013 to 800 thousand households. According to the report by MISFA, the number of active customers reach to 365 thousand households receiving services from financial institutions which is 46% progress for the index.

6. # of agro-businesses established: according to the ministry of agriculture this task fall under the AoR of AISA where despite many inquiries no information was provided. The ministry of agriculture was able to establish more than 92 agricultural businesses.

7. # Business Development Services established: the ministry of agriculture has adopted different strategies to increase the business development services, and therefore establishing 19 such service centers across different provinces. The progress scale in this index is 67%.

In summary, the fifth outcome “economic regeneration” is achieved by 55%.

Sixth Outcome Reduced poverty for the poor and Extreme Poor: the national food security program, nutrition situation and household food security has improved the households conditions. There are

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three indices specified to measure the progress in this outcome, but the ministry of agriculture has not provided any information regarding.

SOCIAL PROTECTION SECTOR Improving social protection is vital to reduce poverty and increase the livelihood of the people, particularly of the poor and most vulnerable. The overall objective of social protection sector of Afghanistan is to ensure social justice across the country on the basis of Islamic values and Afghan traditions.

Sectoral Vision: by considering the constitution of the Islamic Republic of Afghanistan, the basic role in the field of strategy for social protection is in the framework of Afghanistan national development strategy. The preliminary policies are in the following sectors: 1) social protection, 2) correcting pension plan system reforming the pension fund, and 3) readiness and competing against the events of a) supporting the economic growth, b) improving the security, c) mitigating getting approval of poverty reduction, and d) improving the integration of isolated communities to ensure equality among all.

Sectoral Goals: 1) creating an effective social protection system in the country to include isolated and deprived communities, 2) necessary facilities for skills development, 3) employment opportunities and welfare of the laborforce, 4) improved services to the Martyr’s and disabled’s families, 5) and changing the ministries and directories into modern organs and agencies that would be sufficint anf effective and able to manage the key fields of work, social activities, mertyers and disables and in such a way to be the mean of Afghanistan’s reconstruction, social development and take part in the economy of Afghanistan as well.

The responsible institutions within this sector are: the Ministry of Labor and Social Affairs, Ministry of Disabled and Martyrs, National Agency for competing to Natural Events, Ministry of Women Affairs, Ministry of Refugees and Returnees, and The Directorate for Nads (local and seasonal migrants) Affairs.

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Over the ANDS implementation period, the total approved budget of this sector was 114.6 million USD out of which only 57.8 million USD were spent by the institutions mentioned above. On an average base, the percentage of budget spent in this sector over the course of the five years is 50%.

On the basis of available information from the DAD, balance of commitments from external budget in this sector reach to 789 million dollars out of which 585 million dollars were spent by donors.

Social 1387 1388 1389 1390 1391 total Protection in million Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis USD

External 491 14 461 401 416 411 491 414 401 411 919 111 Budget

Taking internal budget and external budget spending together, the invested amount were 643 million dollars. Merely 9% were spent by budgetary institutions; the remaining 91% were spent through external actors. Considering various sectors the balance of external budget in this sector is higher than that of internal budget. By considering the budget spent in this sector during the last five years, the estimated average percentage in this sector due to planned and approved outcomes is in the interval of (46%).

The estimated percentage of progress on every outcome and respective indicators are listed bellow:

Expected Indicators Baseline Targets Outcomes

Percentage of people living on less than TBD The proportion of people living on less US$1 a day than US$1 a day will decrease by 3

percent per year. Percentage of people living below the 42% the proportion of the people living below poverty line (based on Spring data) the poverty line will decline by 2 percent on annual basis

Percentage of people who suffer from TBD proportion of people who suffer from hunger hunger will Poverty and decrease by 5 percent Vulnerability Percentage of population below the 45% proportion of the population below the Reduction minimum level of dietary energy minimum consumption level of dietary energy consumption will decrease by 2 percent on annual basis Percentage of poor female headed TBD number of female headed households households that are chronically poor will be reduced by 20 percent and their employment rate will

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increase by 20 percent Percentage of employed females that TBD TBD on the head of the poor households Number of persons with disabilities TBD received micro credit

Number of persons with disabilities TBD By end-2010 increased assistance will be received pension provided to meet the special needs of all Number of people received training TBD disabled people, including their integration into society through Number Persons with Disabilities TBD opportunities for education, skill received Inclusive and Exclusive development and gainful employment Education Services Number of Persons with Disabilities TBD received Physical Rehabilitation Services Number of Persons with Disability TBD received other services

The First Outcome: the first expected outcome o the sector names “reduction of poverty and vulnerability.” Achievements toward this outcome are measured through 12 indicators, as detailed below:

1. Percentage of people living on less than US$ 1 a day: the basic source for poverty measurement is Afghanistan’s house by house national survey (NRVA) which is performed and managed by the Central Statistical Organization. In the survey poverty evaluation and measurement is performed on the basis of valuable methodologies and basic needs used by other developing countries as well. It should be mentioned that this method measures the average energy needed for a single individual. The minimum amount of energy needed in Afghanistan is estimated to be 2100 calories on the basis of which the food poverty line is approved and subsequently the spend value of nonfood from one group by 10 percent above and below is specified and approved from the line of food poverty based. On this way, the poverty measurement in Afghanistan take place on the basis of valued and basic needs not on the basis of spending one dollar daily. Based on this indicator “a percentage of people living daily by spending less than one American dollar” are not measured and evaluated.

2. Percent of people living below the poverty line (based on spring data). Data as of 2007 suggest the baseline poverty rate to be 42%. Although poverty in Afghanistan remaines a crucial challenge, a considerable improvement for poverty reduction can be observed. According to NRVA 2011/12 survey data, the poverty rate has reduced from to 36% in 2012. In the ANDS the sector of social

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protection estimates an annual decrease of 2% for the poverty line. Considering the baseline data, about 60% of the targeted poverty reduction has been achieved.

3. Percentage of people suffering from hunger. This indicator is evaluated together with indicator 4. The baseline for this indicator is approved to be in the interval of 45%. The planned target for social protection is estimated to be 2% annually. NRVA Data as of 2011/2012 shows that the people living under the small rate of food energy has decreased from 45% in 2007 to 30.1% in 2011/12.This means a 15 % reduction, and a 100% achievement of the indicator.

4. Percentage of poor female headed households: At the time of analyzing this indicator no baseline data was specified. However, 20% reduction in the female headed households and 20% increase in work opportunities for unemployed females have been targeted. Since relevant ministries have not shared and analyses and data the progress of this indicator is not measurable.

5. Number of persons with disabilities received micro credit: For all the following six indicators relevant to disables no baseline data has been specified. Only one target has been set which is not very specific: “Providing more and progressive help and assistances for alleviating the special needs of disables until 2013.” Thus, from a technical perspective, it is not possible to measure the progress toward this indicator. Considering the report Prepared by the Ministry of Work and Social Affairs, Martyred and Disabled 2,542 people benefited from small loans program. On the basis of the National Disability Survey in Afghanistan 800,000 disabled are estimated. Based on this 2542 disabled benefited from micro loans are covering only 0.3% of all disabled, wich is not a considerable outcome or achievement. Considering that there was no baseline for this indicator, its difficult to determine the percentage for this indicator but estimate it to be about 10 % .

6. Number of persons with disabilities received pension: there is no base line specified for this indicator. However, the report prepared by the Ministry of Work and Social Affairs says that “the numbers of people with disabilities that are under social insurance and has gotten the right of disability are 108,481 disabled in the capital and provinces”. Since the number of disabled are estimated to be 800,000, 13.5% of them benefit from a social insurance program. Thus, the progress with regard to the indicator is estimated to be 20%. .

7. Number of people received training: there are no baseline data available for this indicator. However, observable outcomes in this regard are 1,148 individuals with disability who have received trainings that include higher education abroad, trainings, short and long-term courses

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are intended out of country. The percentage of disabled persons studying was not made available from the relevant ministry. However, the estimated percentage of achievement can be estimated to be 30%.

8. Number of disabled persons who received inclusive and exclusive education services: In 2011 548 and in 2012 174 individuals disabled of from martyr families were selected by the Ministry of Work Social Affairs, Martyrs and Disabled to acquire higher education. The achievements towards this indicator are estimated to be 30%. .

9. Number of Persons with Disabilities received Physical Rehabilitation Services: About 75259 disabled individuals benefited from physiotherapy. The number of disabled persons is estimated to be 800,000. Thus only 9.5% of all disabled benefited from physiotherapy. Though responsible ministries provided no information, progression towards this indicator is estimated to be 70%.

10. Number of Persons with Disability received other services. A total number of 18,830 disabled individuals have received welfare services that include artificial body parts. Since there is no baseline data available, it is technically challenging to evaluate this indicator. However, considering the above information, progress towards achieving the indicator is estimated to be 50%.

Expected Indicators Baseline Targets Outcomes

Reduction in Percentage of underweight children TBD By end-2012/13 prevalence of infant mortality in urban and rural areas underweight children in rural and urban areas will decrease by 2 percent on annual basis

The Second Outcome: The second outcome names “reducing infant mortality” and is measured by the following indicator: "Percentage of underweight children in urban and rural areas". There is no baseline data available for this indicator. The goal set for this index was to reduce the underweight children rate 2% annually, in both urban and rural areas, until 2013. Since relevant institutions did not provide necessary data, it is not possible to measure the indicator’s achievement.

Expected Indicators Baseline Targets Outcomes

Improved Number of disabled that have gone TBD By end-2010 provide training for 150 000 Social through skill development program people of which women should be 35 Inclusion percent and disabled 10 percent Number of women that have gone TBD TBD through skill development program

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Percentage of disabled in the public TBD By end-2012/13 the Government will administration employ at least 3 percent of disabled and 30 percent of women within its administration Percentage of women in the public TBD TBD administration Number of treated drug users TBD By end-2010 number of treated drug users will increase by 20 percent Percentage of collected pension 2% By 2012/13 implement the pension contribution of total pension payments reform and increase collection of the pension contributions

Third Outcome: the third expected outcome of the sector reads "Improved Social Inclusion." The outcome is measured through the following six indicators:

1. Number of disabled that have received a skill development program: there was no baseline specified for the indicator. However, learning opportunities were provided for 150,000 individuals out of which 35% were female, 10% were disabled,. By 2013, 75,053 were considered in the skills development program. About 7050 were disabled. Thus, based on the planned target of 150,000, 50% of planned are brought under learning, but the 10% specified target for disables are completely achieved. 2. Number of women that have gone through skill development program: no baseline exists for this indicator. Since no data was provided by responsible institutions no progression is estimated for this indicator.

3. Percentage of disabled in the governmental administrations: the goal for this indicator was that by the end of 2011 at minimum 3% disables and 30% women would be hired in the governmental organizations. Reportedly, 1.5 % disabled have been recruited in governmental organizations so based on this 50% of planned target for disables has been achieved.

4. Percentage of women in the governmental administration: no baseline exists for this indicator. However, the goal for state agencies was to recruit 3% disables and 30% women by the end of 2012 and 2013. Based on the statistical yearbook of 2012 21.4% of government employees were female. Thus about 70% of the indicator has been achieved.

5. Number of treated drug users: There are no specific achievements toward this indicator. The goal was to increase the treatment by 20% for individuals abusing drugs until 2010. However, responsible institutions did not provide figures perimeter for drug users treated.

6. Percentage of collected pension contribution of total pension payments: there is no baseline for this indicator. However, in 2011 the pension system was reformed and collecting the pension fees has increased. In 2009 it was 55%, in 2010 132%, in 2011 269% % and in 2012 165%. As

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there is no baseline, it is difficult to measure improvement towards the indicator. However, progress is expected to be 50%

Taking the above findings, the total achievement towards the third expected outcome of the sector is estimated to be 42%.

Expected Indicators Baseline Targets Outcomes

Improved Number of the people affected by the TBD By end-2010 an effective system of disaster natural disaster disaster preparedness and response will preparedness be in place and response Monetary value of the destroyed TBD TBD assets as result of natural disaster

The Fourth Outcome: the fourth outcome of the sector names "Improved disaster preparedness and response.” Achievements toward the outcome are measured through the following two indexes:

1. Number of the people affected by the natural disaster: the goal was to create an effective respond and preparedness system to natural disasters by 2010. Since responsible institutions were not able to promote more than vague data, it is difficult to asses the achievements towards the indicator.

2. Monetary value of the destroyed assets as result of natural disaster: there is no specific baseline or goal for the indicator. Thus, measuring progress is technically impossible. The national anti-natural disasters have not provided information in this regard but approximately for this indicator we can estimate that 50% planned targets are achieved.

Challenges

 Untimely approval of development budget which hinders the project implementation

 The ministries of Economy and Finance do not approve the proposed projects

 Lack of coordination among the national and international bodies

 Lack of expert personnel in development projects

 Lack of regular monitoring by ANDS from project implementation

 Social protection should have been included in NPP1, currently which is not

Recommendations and solutions to improve the 5 years development plan

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 Timely approval and availability of developmental budget for the implementation of development projects

 The approval of the Ministry’s proposed projects by the Ministries of Fiance and Economy

 Strengthening coordination among different but relevant agencies

 Enhancing the human resource capacity to implement and analyze the projects

 Including the social protection pillar in NPP1

Additionally, the kindergartens were supposed to be privatized according to the ANDS, but the ministry of labor and social works…

ECONOMIC GOVERNANCE AND PRIVATE SECTOR DEVELOPMENT The strategic vision in ANDS for developing the private sector is to create and sustain an enabling environment where the private sector can thrive and help the economy grow, and reduce poverty in a market oriented system that is led by the private sector. Rather than being a competitor, the government will largely remain in a policy maker and regulator role.

The budgetary institutions within this sector include the Ministry of Finance, the Ministry of Commerce and Industries, the Ministry of Economy, Control and Audit Agency, Central Statistics Office, Afghanistan National Standard Agency, and AISA.

Over the ANDS implementation period, the total approved budget for this sector was 758 million USD out of which 304 million USD has been spent. The average budget spending over the course of five years in this sector is 40%.

The DAD system total committed fund (external budget) for the past five years was 1120 million USD out of which 984 million USD has been spent by the executive agencies.

1387 1388 1389 1390 1391 total Economic growth and PSD Com. Dis Com. Dis. Com. Dis Com. Dis. Com. Dis Com Dis

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in million USD External Budget 487 123 306 153 145 284 65 269 117 155 1120 984

In the past five years, the total invested fund for this sector was 697.4 million USD. Only 44% came from the internal b u d g e t , the remaining 56% c a m e f r o m external budget.

It is noteworthy that the Ministry of Finance was the biggest recipient of the development budget for this sector, while the Ministry of Commerce and Industries and AISA (both directly working towards private sector development) had a budget of less than two million USD budget.

The private sector development has eight expected outcomes. Twelve indices were created measure the progresses made. The outcomes towards the respective indices are explained below:

Expected Indicators Baselines Targets Outcomes

The Private Sector Doing Business 2008 World Bank Afghanistan improves its overall Doing Business Development Indicators data in Doing ranking by a minimum of five places each year 60% and Trade prepared by the Business data of economic activity is in the informal sector by the sector World Bank Indicators end of 1390 strategy is implemented

The First Outcome: the first outcome names “the Private Sector Development and Trade sector strategy is implemented.” The index to measure achievements toward the outcome names “all legislation, regulations and procedures related to investment will be simplified and harmonized.” Preparing ten commercial legislations in 2008 was the baseline and the goal was to prepare four legislations by mid- 2008 and an additional six legislations by the end of 2009.

Expected Indicators Baselines Targets Outcomes

Private Progress of providing increased access of finance TBD Number of providers increases sector to private sector; number of providers. by 25% by end-1389 access to % increase in private sector investment TBD TBD finance is increased % of GDP increase as investment levels increases TBD TBD

The Second Outcome: the second outcome reads “private sector access to finance is increased.” To measure the progress of this outcome, there are the following three indices specified:

1. Progress of providing increased access of finance to private sector; number of providers: in 2008, the baseline for this index was to allocate 10 million USD for private sector development

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in particular for carpet weaving. The goal was to increase that sum by 25% by the end of 2010. The 10 million USD were approved by the Ministerial Cabinet to be given in loans for carpet weavers, which is currently in implementation. In addition, the project “new markets for Afghanistan” is currently implementatied. It aims to help private sector growth. The main objective of this project is to provide technical assistance for 750 companies in four major commercial hubs by 2016: Kabul, Herat, Mazar-e-Sharif and Nangarhar. The progress scale in this index is estimated to be 25%.

2. Percent increase in private sector investment. There was no baseline and goal specified for this index in the ANDS. However, according to the information from the Ministry of Commerce and Industries, the goal was to increase Afghan products in both national and international market by 20%. Additionally, the Ministry has reported the “new markets for Afghanistan” project under this index as well. While there is no information available regarding the increase in domestic products the progress in this index is estimated at 10%.

3. Percent of GDP increase as investment levels increases. There was no baseline and goal specified for this index.

Expected Indicators Baselines Targets Outcomes

Public- Progress in putting in place an enabling TBD Number of PPPs increases Private environment for Public-Private Partnerships. by 100% by end-1390 Partnerships number of projects undertaken with PPP

The Third Outcome: the third expected outcome of this sector reads “Public-Private Partnerships”. Despite continuous contacts to AISA, no information was obtained in this regard.

Expected Indicators Baselines Targets Outcomes

Surplus land is Progress of creating enabling Area of unused Area of additional used by the environment for use of surplus land by government land at government land used private sector to the private sector to increase economic the end of 1386 by the private sector increase activity. increases by minimum economic 100ha per year activity

The Fourth Outcome: the fourth outcome names “Surplus land is used by the private sector to increase economic activity.” To measure progress toward this outcome the following index was specified: “progress of creating enabling environment for use of surplus land by the private sector to increase

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economic activity.” The goal set was to make accessible around 20 hectares of land for private sector annually. Despite continuous contacts to AISA, no information was obtained in this regard.

Expected Indicators Baselines Targets Outcomes

Regulations Reduction in number of business Number of business Number of licenses are licenses and steps in licensing licenses and steps in reduced to reduce to 5 streamlined processes licensing process at end- and better 1386 enforced % increase in firms formalizing their 80% of economic activity 60% of economic activity operations is in the informal sector is in the informal sector % increase in tax revenue from the % of tax revenue from TBD increased number of formalized firms businesses

The Fifth Outcome: the fifth outcome names “regulations are streamlined and better enforced.” The progress in this outcome is measured by three following indices:

1. Reduction in number of business licenses and steps in licensing processes, regulations and procedures related to private sector. There were no baseline or goals specified for this index during the designing phase of expected outcomes. Despite continuous contacts to AISA, no information was obtained in this regard.

2. Percent of increase in firms formalizing their operations: the baseline for informal investments was 80% in 2008 and the goal was to reduce it to 60%. Despite continuous contacts to AISA, no information was obtained in this regard.

3. Percent of increase in tax revenue from the increased number of formalized firms: there is no baseline or goal specified for this index. Despite continuous contacts to AISA, no information was obtained in this regard.

Expected Indicators Baselines Targets Outcomes

Increased Increased provincial economic growth Contribution of provinces to TBD provincial measured through national accounts. growth at end of 1387 economic growth

The Sixth Outcome: The sixth outcome is “Increased provincial economic growth”. Progress toward this outcome is measured by “increased provincial economic growth measured through national accounts.” No specific data are available for this indicator as of now.

Expected Indicators Baselines Targets

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Outcomes

Increased and Establishment of legal framework to facilitate TBD National Competition more effective increased and more effective competition; Policy developed and competition development and promulgation of National promulgated by end- Competition Policy 1391

The Seventh Outcome: The seventh expected outcome of the sector names “increased and more effective competition.” The index to measure progress toward this outcome is “establishment of legal framework to facilitate increased and more effective competition; development and promulgation of National Competition Policy”. There is no baseline or goal specified for this index.

Expected Outcomes Indicators Baselines Targets

The Private Sector Doing Business Indicators 60% of economic activity Development and Trade World Bank data in Doing prepared by the World is in the informal sector sector strategy is Business data Indicators Bank by the end of 1390 implemented

The Eighth Outcomes: the eighth and last expected outcome of the sector names “Private Sector Development and Trade sector strategy is implemented.” The index to measure the progress toward this outcome is “the progress scale in implementing the private sector and trade development strategy”. The baseline for this index in 2008 was to conduct commercial activities via banks and the goal was to reduce by 60% the informal economy by the end of 2011. According to the annual reports of the commercial activities of the World Bank (Doing Business Reports from 2009 to 2013), from among 183 countries, Afghanistan was ranked 168 in 2009, 160 in 2010, 154 in 2011, 167 in 2012 and finally 168 in 2013 in the list of ease of doing business around the globe. As it can be noticed, the country made a 14 step progress (from 168 to 154) in its ranking from 2009 to 2011, but unfortunately, dropped backed to its previous ranking during the subsequent years. Considering this, achievements of the goals of ease of doing business can roughly be estimated at around 50%.

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CHAPTER THREE Cross cutting themes: I. Capacity Building

The vision of the capacity development strategy is to develop capacity at all levels with a coordinated approach to effectively manage funds and aid flows, cutting down on duplication and ensuring that capacity development needs are met in time and in incremental but sustainable manner. In order to affect that change the government of Afghanistan prioritized outcomes and impact requirements.

According to the strategy principles all capacity development projects should meet the following criteria: projects should be demand driven and must have clear goals with expected benefits, the resource required for projects must be available, and projects need to have appropriate monitoring and evaluation assessment.

In order to improve Afghanistan’s capacities as well as the impact and effectiveness of capacity development projects and programs, the Afghan government has approved the National Capacity Development Policy in 2007, which reflects principles of capacity development enshrined in the Capacity Development Sector Strategy as expressed in the ANDS. The strategy is guided by the vision to develop capacity at all levels with a coordinated approach to effectively manage and ensuring that capacity development needs are met in time and in an incremental but sustainable manner. More concretely, the strategy takes the Afghan government and the international community in charge to adopt to the following principles and meet respective criteria when setting up capacity development projects and programs:

 Capacity development projects and programs must be demand driven;  Programs must be developed from an organizational capacity needs assessment;  Projects must have clear defined program goals and measurable outcomes/ impact/ performance measures, contributing to national priorities;  Projects must demonstrate that the expected benefits exceed the costs of implementation  Resources required for projects must be available;  Projects must set explicit selection criteria to ensure that the most appropriate institution or people are selected;  Projects must incorporate regular monitoring and evaluation assessments;

The national priorities for capacity building are, applying technology to improve the efficiency of government and non- governmental organization, an affordable institutional framework for the security sector, increasing the role of politics and democracy, sound financial management, effective institutions, the role of education in overall good of society, pro-growth economic and development of civil society to work together in improving the lives of people. On the implementation framework the government identified a number of priority area for immediate attention:

 Security, good governance and rule of law  The private sector development  Agriculture and rural development

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 Education and higher education  Health and public health  Land, infrastructure and natural resources.

For the implementation framework of given priorities a capacity development working group where ministries and agencies associated undertake capacity needs assessment to ensure that priority needs are matched with provision. Further, reform implementation management units (RIMU) have been established primarily to restructure ministries so that they could have move ahead on pay and grading reform.

Indeed, measuring Capacity Development performance of a state is somewhat challenging since it is a broad area, which takes place on certain different levels in the public sector. One proxy to do so is to look on the execution of development budget. Although not perfect, the extent to which Line Ministries are able to spend their development budget allocations is indicative for the level of available capacity. After all, a lack of capacity means that despite resources being provided in the budget, Ministries cannot achieve the objectives they have been set because of their lack of administrative and technical skills. This results in spending of resources that do not achieve the desired outcome, or, alternatively, simply an inability to spend allocated resources. Thus to assess the improvement of Capacity Development in Afghanistan during the ANDS period the following table shows the percentage of budget implemented by ANDS sectors for the years 2008-2013.

Sector Development Budget Development Budget Spent Percent Approved (2008-2013) (2008-2013) age

Security 131,000,000 USD 65,000,000 USD 49.6%

Governance 373,000,000 USD 127,000,000 USD 34.05%

Infrastructural Development and 4,603,000,000 USD 2,006,000,000 USD 43.5% Natural Resources

Water Resources 622,888,000 USD 302,978,000 USD 48.6%

Education 1,221,000,000 USD 482,000,000 USD 39.4%

Health and Nutrition 739,000,000 USD 412,000,000 USD 55.7%

Agriculture and Rural Development 2,846,000,000 USD 1,276,000,000 USD 44.8%

Social Protection 111,000,000 USD 56,000,000 USD 50.4%

Economic Growth and Private Sector 733,000,000 USD 298,000,000 USD 40.6% Development

TOTAL 11,379,888,000 5,024,978,000

The above table shows underperformance with regard to the spending of development budget. Spending only around 45 percent of the development budget on average, ministries and other respective government agency can certainly improve budget flows. One explanation for underperforming might be the lack of administrative and technical skills. This indicates that there is still need for capacity development, and that current programs can be improved.

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For the public sector, there are three key functions that require immediate attention. (i) financial management (budgeting accounting, source of funding and sustainability of funding. (ii). Human resource management (staff recruitment, placement, personal data, support, training, development, manpower planning. (iii). Resource management (transport, procurement, logistics).

For better public services delivery the Independent Administrative Reform and Civil Service Commission (IARCSC) was established in 1382 (2002) after the Bonn Agreement and based on Article 50 of the Constitution of the Islamic Republic of Afghanistan. The IARCSC is mandated of establishing a modern, responsive, democratic, gender sensitive, transparent and accountable public administration enabled to manage public resources efficiently and effectively for improved service delivery in fair and equitable manner. The IARCSC comprises of two Independent Boards. These are Independent Appointments board and Independent Appeals Board. It has four General Directorates. These are: General Directorate of Administrative Reform Secretariat; General Directorate of Civil Service Management; General Directorate of Civil Service Institute; and General Directorate Programs Design and Management.

The objectives set for the private sector development are: business development with product and processing, better access to government and donor contracts and focusing on AISA to become an investment promotion agency. The potential leading agency is the ministry of commerce and industry, ministry of economy, chamber of commerce and private sector.

Security: To improve the capacity of security sector, the Afghanistan National development strategy set 9 outcomes such as effective coordination in security sector, capability of ANA for conducting operations and missions, completion of administrative reforms at Ministry of Defense, equipping the ANA with technical and administrative support, and equipping the ANA training centers. According to the ANDS final evaluation report significant progress have been made in this sector. Despite many challenges the progress made within the 7 out of 9 planned outcomes, which reveal that in the past five years 86 percent of its target has been achieved.

Governance: there are a total of 18 goals specified in the ANDS for this sector and percent of its goal have been achieved. The indicators set for Governance includes National assembly empowerment, public sector reform, training and capacity building of public sector employees, merit based recruitment, anti-corruption, enhancing public information availability, women participation; strengthen the independent elections commission, and land reform.

Infrastructure development: energy , water resource , transportation and civil aviation , communication and information technology , urban development, mining , makes major sector for infrastructure development where more than four billion budget approved, however only 43. 5 percent of the development budget has been spent. Although there seems to be significant improvement in communication and information technology, transportation and civil aviation. However, due to lack of capacity major part of the development project has remained unspent. However, only 43.5 percent of development budget have be spent on infrastructure. This reveals low level of capacity in the institutions, and security challenges in some part of the country.

Education: education sector is one of the success story for Afghanistan. In the last five years the quality of education has improved , education law approved , private educational institutions regulations prepared , professional teacher male female has increased , a new curriculum for primary and secondary education is in implementation across the country, and , total number of school has almost doubled , as well as teaching and academic research quality has improved. However, major part of the development budget has remained unspent due to security concerns. 122

Health, Agriculture development and social protection:

According to the information by the ministry of Health, public and private health care facilities have been achieved by 50 and 30 percent respectively. Infrastructure improved; currently 34 provinces have compound and building for health care services, people access to health center with less than 2 hours walk indicator have been achieved, 31 percent decrease in Malaria cases, indulges have significantly trained.

The ANDS long term strategic vision for agriculture and rural development is to ensure the social, economic and political well-Being of rural communities, special poor and vulnerable people , while stimulating the integration of rural communities within the national economy.

72 percent achievements against the planned goals have been attained. Strengthening local governance, improving the capacity for agriculture production, improving and maintaining rural agriculture infrastructure, fighting disaster and emergency condition, and economic regeneration as well as alleviation of poverty are important goals set by ANDS.

Achievement in the Agriculture development is village development council work jointly with NSP. The MRRD was able to establish 14,399 local development councils in past five years. 1297 farmers in horticulture and 1500 in other branches of agriculture received training in new agriculture technology. A total of 45 farms were created by CARD-F, 5.1 million plants across the country have been distributed, 396000 hectares of land came under irrigation land, 500 agriculture ministry staff have been trained .

Social protection and Economic Growth: the sectorial vision for social protection as defined by Afghan constitution the role of social protection and obliges the government to take necessary measures to support the most vulnerable. Achievement in this regard follows as 2,542 people have benefited the small loans program, 548 individual with form of disability have entered higher education where 174 of them studying abroad . A total of 59,752 individuals with disability have received physiotherapy, 41,578 women received the training, and the reform in the pension fund for 2012- 2013 has been implemented.

The strategic vision in ANDS for developing the private sector is to create an sustain an enabling environment where private sector can thrive and help the economy grow and reduce poverty in a market economy that is led by the private sector. Achievements in this regard are increasing private sector investment, public – private sector partnership, simplification of investment regulations, and implementing the private sector and trade development strategy.

II. Gender Equity

Strategic Vision:

The Gender Equity Cross Cutting Strategy aims for a peaceful and progressive Afghanistan where women and men enjoy security, equal rights and opportunities in all spheres of life equally. In more specific terms, this strategy envisions that by 2013 a significant number of government instrumentalities would have embraced gender equity and deliberately addressed women’s development needs and current difficulties in their respective sector areas of operation.

Goals:

1. Short Term

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 To reach the 13 gender-specific benchmarks of the AC/IANDS, including the 5-year priorities of NAPWA  To realize the gender commitments that are mainstreamed in each of the ANDS sectors, and  To develop basic institutional capacities of ministries and government agencies that are responsible for implementing activities to reach the first two goals

2. Mid Term  To eliminate all forms of discrimination against women, build women’s human capital, and strengthen their leadership and participation in all spheres of life.

3. Long Term  The ultimate goal of this cross-cutting issue is gender equality, a condition where women and men fully enjoy their rights, equally contribute to and enjoy benefits of development and neither is prevented from pursuing what is fair, good and necessary to live a full and satisfying life (NAPWA).

Gender equality is mainstreamed throughout all eight pillars of the ANDS. Additionally, it is also mainstreamed through cross cutting issues of the ANDS.

Monitoring (Expected Outcomes and Achievement):

Only a limited number of outcomes in the gender crosscutting issues are related to gender issues, which are discussed in the following:

The first expected outcome for this sector is “Improved Participation of Women in Governance” and the target for this outcome is “By the end of 2010, in line with Afghanistan’s MDGs, female participation in all Afghan governance institutions, including elected and appointed bodies and the civil service, will be strengthened by providing a specific percent reservation of seats by enacting a law of affirmative action.”

Even though it is progressing with slow pace, women participation in all governance institutions has improved over the last decade. The ratio of girls to boys in primary education has increased from less than 0.59 in 2007 to more than 0.71 in 2013. Similar, this ratio has increased from 0.42 in 2008 to 0.57 in 2012 in secondary education. Likewise, the number has increased in higher learning or tertiary education as well, as it was 0.23 in 2008 and increased to 0.36 in 2012. Similar, 25% of seats are reserved for women in Afghan National Assembly.

The second expected outcome for this sector is “Single National Identity Document” and the target for this outcome is that “by the end of 2013, civil registry with a single national identity document will be established”. According to the Ministry of Interior Affairs and Ministry of Information Technology and Telecommunication, a single national electronic identity card has been prepared. The project is ready for implementation but it is delayed due to certain issues about the citizen’s particulars in the national identity.

“Improved access to water resources” is one of the expected outcomes for this sector with a target of “Availability of underground water with quality and quantity”. A complete and comprehensive study of quality and quantity of Afghanistan’s underground waters is not carried out yet, but as of 2012, it is reported by NRVA 2011/2012 that overall 45.5 percent of the general population have access to an

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improved drinking water sources. The population percentage, however, varies across different categories such as urban, rural and Kuchis. For instance, 70.9 percent of urban population, 39.4 percent of rural population and 21 percent of Kuchis have access to an improved potable water source.

Another expected outcome for this sector is that “Citizens are more aware of their rights and justice institutions are better able to enforce them.” The target for this indicator is that “By the end of 2013, justice institutions will encourage press coverage of justice proceedings, public attendance at those proceedings, and general public understanding of the process at each stage of such proceedings.” Pertaining to this indicator, press and media coverage of justice proceedings are still not practiced in the country, but public attendance is allowed during justice proceedings. There is not exact survey about the general public’s understanding of the processes of the justice proceedings, but it is expected to be low.

Pertaining to education, an expected outcome for this sector is “literacy rate improved” with targets of improvement in school enrollment, improvement in enrollment rates of both male and female students and improvement in literacy rate. In 2012, the Ministry of Education reported, that more than eight million students are currently enrolled in the schools of the country and enrolment rates of students has increased dramatically in the past decade. According to NRVA 2011/12 data, the net attendance ratio of boys for primary education and secondary education has increased from 60% in 2007/08 to 64% 2001/12. Likewise, girls’ net attendance ratio has increased from 42% to 48% over the same course of time and the improvement for both sexes during this time for this indicator has increased from 52% to 57%. Similarly, there has been improvement in both sexes for secondary education as well. For instance, this ratio for boys in secondary education has improved from 22% in 2007/08 to 42% in 2011/12, and for girls during the same period of time, it has increased from 10% to 23%, making the improvement between both sexes to 33% in 2011/12 up from 16% in 2007/08. Furthermore, literacy rate has shown continuous improvement over the past decade by gender and residence in all over Afghanistan. As of 2012, adult (the proportion of population aged 15 years old and above) literacy rate in Afghanistan is 31.4%, out of which 45.4% among male and 17.0% among female of the same age definition. The Gender Parity Index for this indicator is reported to be 0.37. Likewise, the literacy rate among youths (the proportion of population aged 15-24 years old) is said to be 47.0% nationwide. This indicator among male is 61.9% and 32.1% among female and gender Parity Index for this indicator is reported to be 0.52.

“Improved access to higher education” is another expected outcome for this sector for which the target is “100,000 students enrolled in universities by 1389 (2010)”. According to CSO data, in 2008 a total number of 61,375 students were studying in public universities from which 49,159 were male and 12,216 were female, alongside roughly 30,000 students in private universities and private higher learning institutions. According to the latest CSO figures (2012/13), a total number of 160,781 students are studying in both public and private universities from which 132,068 (82%) students are male and 28,713 (18%) are female students. Government share of students are 101,315 from which 82,100 (81%) are male and 19,215 (19%) are female. Likewise, private sector share of students are 59,466 with sex segregation of 49,968 (84%) male students and 9,498 (16%) female students

Another expected outcome for this sector is “Improved sport facilities” with a target of “sport facilities will be improved in all provinces of Afghanistan by 2013”. According to National Olympic Committee, as of 2013, there are 42 football stadiums and/or grounds, 26 gymnasiums and around 10 recreational parks for sports. Similarly, 9 gymnasiums and 8 stadiums are renovated. It is important to mention that private sector has played an important role in this area. The gyms and stadiums are used by both sexes. National Stadium and the new football playground built for Afghan Premier League are also used by sexes. Both Afghan male and female national football teams are using the same venues and pitches for

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their practice, matches and etc. Similarly, private gyms and sport complexes are for everyone as they are rental. Whoever pays the rent and book it, can use it, irrespective of gender or any other issue.

An important expected outcome for this sector is “Effective reproductive and child health system” with target to improve maternal mortality ratio, under 5 mortality rate and infant mortality rate in Afghanistan by the end of 2013. One of the success stories of the government in the past decade was dramatic improvement in health indicators. For instance, material mortality ratio was reduced from a shocking number of 1600 deaths in every 100,000 births in 2003 to 325 death in every 100,000 births in 2013. Likewise, Under Five mortality ratio and infant mortality rate was reduced from 257 and 165 in 2003 to 102 and 74 in 2013 respectively.

Challenges: There are number of challenge concerning gender equality in Afghanistan. Insufficient political will and support, insecurity, inadequate technical and financial resources, social and institutional resistance and inadequate commitment, ownership and internalization of responsibilities are some of the common challenges that hinder the process of mainstreaming of gender equity in crosscutting issues. However, commitments for gender equity in the policy lever are strong and a lot of policy documents have been signed and adopted, but implementation still remains an enormous challenge. III. Counter Narcotics

Strategic vision

The strategic vision of Counter Narcotics is, to secure a sustainable decrease in cultivation, production, trafficking and consumption of illicit drugs with a view to complete and sustainable elimination, and providing development environment and opportunities. In order to achieve this strategic vision, the cross-cutting team identified three key priority policies and objectives. The counter narcotics strategy will address the narcotic problem across all sectors; play a leadership role by MCN and ensure progress against four priorities set out in NDCS.

The Afghanistan National Development strategy recognizes the narcotics situation in Afghanistan as nothing short of an emergency for the country, the region, and the world. The ANDS targeted to achieve the following outcomes:

a. Reduced poppy cultivation and dependency on the opium economy b. Improved security environment and protection provided c. Provincial institutions providing sustainable support to the poorer and vulnerable sections of the society established d. Improved security and deterrence thereby displaced illegal elements and reduced insurgency e. Improved livelihoods of poorer sectors of society and reduced poverty.

Mainstreaming Counter Narcotics:

Narcotic usage and trafficking is a major challenge to Afghanistan’s economy and development. All sectors and crosscutting strategies will work toward countering it. The following indicates the expected outcomes: to reduce opium demand, provide alternative livelihood, eradication actions, increase public awareness, implement law enforcement and criminal justice, institution building as well as regional and international cooperation. To pursue the above changes and to reach desired outcomes, the counter

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narcotic strategy becomes core part of the MCN ministerial coordination in-order to achieve the following issues.

 Awareness generation against harms of drug usage, Preventive legal action for reducing availability of drugs and establishing centers for treatment and rehabilitation. The output for these activities are demand to be reduced in the short time and bring the outcomes of a healthy society due to reduced drag usage, treatment and rehabilitation.

Information about drug prevention, drug use and its negative effect are communicated within the country through a range of channels. MCN leads the coordination on drug prevention intervention with other relevant ministries. The main drug prevention activities include awareness programs in drug treatment centers, school based awareness programs, mosque-based awareness programs, youth associations and vocational trainings. During 2012 an estimated 1,848,532 individuals benefited from such awareness interventions. In 2012, an estimated 102 treatment centers were providing a range of services, up from 43 centers in 2009. The 2012 drug demand reduction policy of MCN sets target to increase drug prevention and treatment capacity by 30% for heroin and opium users between 2012 and 2016.

 Intervention for promoting legal agriculture livelihood options through inputs like seeds, irrigation, fertilizers, credit and crop insurance, further training for self-employment and micro enterprise and development of micro credit facilities. Moreover, development of private sector especially promotion of small and medium enterprise, preventive law enforcement and criminal justice as well as developing safety net/insurance etc. the output for this activity is alternative livelihoods available accepted within the short-medium term timeframe to reach the outcomes of higher incidence of non-poppy related livelihood.

According to the Afghanistan Drug report 2012, There have been substantial investment and interventions aimed at improving rural livelihoods. For instance, the MRRD has been a major player in this regard, spending over US $ 1 billion on development projects since 2002. In terms of alternative crops, vegetable earn considerably more gross income than do cereals, white wheat, Maize and cotton are the least valuable crops in terms of gross income earned per hectare. Saffron does have a very high gross income potential – the total yield of saffron products from a single hectare value almost four times as much as the gross income from a hectare of opium poppy. Also, access to off-farm income can be a decisive factor in growing poppy: some area such as Nangarhar, have better access to off-farm income than others, such as Hilmand.

Following the introduction of the food zone program, in autumn 2008 the Hilmand poppy cultivation level dropped by 33% to 69,833 hectares in 2009. When expressed as the share of total cultivation in Afghanistan, Hilmand contributed as much as 66% to total cultivation level in 2008, but only 48% in 2011 and 49% in 2012. Inside the food zone, farmers rely less on poppy and more on wheat for their income than farmers outside the food zone.

Based on the Afghanistan opium winter Risk Assessment 2012, there is a statistically significant association between lack of agricultural assistance and poppy cultivation. Villages which cultivated opium in 2012 did not received agriculture assistance in 2011. This indicates that provision of agriculture assistance could have positive effect on the decision to grow or not to grow opium. According to the mapping for alternative livelihoods project 2005, the total committed funding for alternative livelihood

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for 2005-2006 has been estimated at $ US 490 million while for the next ten years, a total of $US 1.2 billion has been allocated do date for alternative livelihood activities. The main donors of bilateral alternative livelihood project are USAID, DFID and EC. In addition to their bilateral projects, all three donors also provide contribution to the National programs. The funding of the National programs is mainly provided through the Afghanistan Reconstruction Trust Fund (ARTF). The amount is spent through NSP, NEEP/NRAP, MISFA, and NABDP.

 Targeted campaigns for public and other stockholders including government officials, implementation of targeted poppy eradication, capacity building, monitoring and impact assessment, developing incentive for farmers and rural poor to rejoin or stay in the licit economy, drag demand reduction. The outputs for these activities are poppy crops eradication and public awareness to be done in the short term with building the capacity to conduct targeted and verified eradication, economy’s dependency on poppy cultivation, drag usage and trade reduced due to public awareness.

Eradication levels have varied over the years but in 2012, eradication increased markedly by 154% compared to the previous year, with 9,672 hectares eradicated. The government ban was among the top two reasons cited by respondents in the 2011 and 2012 and annual opium surveys for not cultivating poppy. Since eradication is closely associated with government bans on poppy, it can be assumed that government bans and respective enforcement do influence farmer’s decisions not to cultivate poppy. However, eradication can be responsible for insecurity and loss of government support. Furthermore, eradication needs to be coupled with development assistance in order to maximize its impact and better influence farmer decisions to cultivate licit crops instead of poppy. Thus, interventions designed to provide broader alternative development opportunities are a necessary complement to eradication strategies.

In 2012, the total farm-gate value of the opium produced from poppy cultivation in Afghanistan was US$ 717 million corresponding to four percent of the country’s GDP. This represents a significant share for an illicit economy. In terms of export value of opiates as a proportion of the overall GDP, this was 13.5 percent in 2011 having declined from 50 percent in 2003. This is due to the reduction in the scale of the opium economy, but is rather a reflection of the increase of Afghanistan’s GDP from US$ 4.49 billion in 2003 to US$ 19.18 billion in 2011.

 Strengthening and coordination of ANP, CNPA and BP, establishing of drug regulation committee, coordination of customs, border police, CNPA and ANP, criminal justice task force- increased capacity and performance of CJTF, prisons- establishing fully functioning high and medium security CN prisons. The outputs of these activities are CN law enforced and criminal justice meted in the medium time to get strong and functioning legal system ensuring reduced illegal drug economy.

In 2012, 95% of total opium cultivation in Afghanistan took place in southern and western regions. This indicates the link between opium cultivation and lack of security. The anti-government elements and drug traders are very active in the western region where Badghis, Farah and Nimroz provinces are known to contain organized criminal networks.

Achievements in this regard are reported to be significant. According to the ANDS evaluation report, the police has been able to eradicate 66,985 hectares poppy farms of land, in addition, 344 opium

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processing laboratories and 2,251 tons of drugs has been destroyed. The Afghan police implemented 70% of the targets enlisted over fighting against poppy production and trafficking. According to a UNODC report, in 2012 there was no poppy cultivation took place in 12 provinces. Furthermore, the income received from drug related activities reduced by 3% in GDP. The income of poppy cultivation in 2012 from per hectares reduced to $4,600 a significant change from $10,700 in 2011.

The total area under poppy cultivation in Afghanistan in 2011 was estimated at 131,000 hectares, a 7% i ncrease compared to 2010. 95% of total cultivation took place in nine provinces in the Southern and We stern regions, which include the most insecure provinces in the country. This confirms the link between i nsecurity and opium cultivation observed since 2007. Potential opium production in 2011 was estimated at 5,800 metric tons. A 61% increase compared to 2010, when opium yields were much reduced due to plant diseases.

 Organize regular meeting for international cooperation, organize regular regional cooperation meeting, design and finalize bilateral, regional and international agreement cooperation, and development of drug liaison officers and border liaison offers. The output for these activities is cooperating nation states toward CN in the long term to reduced processing and trading in drugs.

Geographically speaking, heroin is being seized mainly in the western and southern provinces of Hirat, Nimroz and Hilmand. Morphine seizures are also occurring mainly in the southern provinces of Kandahar and Hilmand. Additionally, the largest amounts of precursors seized and the largest percentage of labs destroyed (68%) were also in the southern provinces. Precursors are not 24 produced in Afghanistan but rather originate from outside the country further highlighting the need for greater regional and international cooperation.

The Regional Program for Promoting Counter Narcotics Efforts in Afghanistan and Neighbouring Countries (2011-2014) is a strategic framework for UNODC's engagement in the West and Central Asia region, launched in December 2011. It aims to enhance counter-narcotics capacities across the region through better coordination and facilitation of regional cooperation, as well as better allocation of the required resources and provision of technical assistance for regional cooperation by the international community to the countries of the region.

The Regional Program is introduced as an umbrella over the ongoing assistance at the country and sub- regional level, providing additional value through the creation of a dedicated facility to support regional cooperation initiatives and the maximization of coherence and development of synergies in UNODC's work across the region. It focuses on cross-border and regional activities and does not supersede the Country Program or national projects, which represent the foundations of UNODC's work in the region. The Regional Program is composed of the following four Sub-programs:

1. Regional Law Enforcement Cooperation 2. International/Regional Cooperation in Legal Matter 3. Prevention and Treatment of Addiction among Vulnerable Groups 4. Trends and Impacts (as a cross-cutting function).

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Challenges and Recommendation:

The narcotic situation in Afghanistan is an important issue and nothing short of an emergency, not only for Afghanistan but for the whole region and even the world. Afghanistan’s narcotic economy threatens all the major goals of Afghan Democracy. Narcotics and insurgency have become mutually supporting enterprises, and narcotics has corrupted many government officials and paralyzed many institutions.

The policy for counter narcotic cannot be one of unbridled aggression but will require a strategic approach, where the issue is not whether elimination of narcotic needs to be gradual or rapid, but what has least negative social impact and will be sustainable. Strong measures are required to be implemented quickly to counter narcotics menace.

Opium production has to be treated as a criminal activity undertaken for the meanest level of profiteering. The increase of poppy cultivation in recent years shows that many Afghan farmers, indeed entire districts, are now growing poppy that did not do so only three years ago; and many have stopped growing poppy that were doing so earlier. Poverty was not the determining factor in these decisions.

The United Nation office on Drugs and Crimes has concluded that poverty is not the major driving factor behind poppy production, as it is mostly assumed. The poorest people in Afghanistan live in the north, which has either significantly reduced or ceased poppy production. By contrast, the wealthier southern provinces have significantly increased poppy production. However, the relationship between poverty and counter narcotics is not as simple as it appears.

There may be a short term impoverishing impact if crops are destroyed, because the most affected will be those who are involved in the cultivation: the labor, small farmers and their families. The distraction of crops might have an impact on the lives of women and their relationship within the family. No single activity, program or sector can individually tackle the narcotic problem in Afghanistan. Long-term economic development will certainly ensure a solution to the opium problem; but the solution will have to arrive well before the long-term benefits of economic development can be realized.

On the implementation side, the National Drug strategy (NDCS) will continue to provide the overreaching strategy recommending that all line ministries will play an active role in managing the counter narcotics aims and objectives. The first prerequisite for counter narcotics action, especially for enforcement and interdiction, is political commitment.

The counter narcotic crosscutting theme in ANDS not only provides options for alternative livelihoods but also opportunities for improved security, rule of law and social support, which together will offer hope to the poorer sections of the society. Poverty will also be tackled with credit and marketing support through the government national priority programs that are linked in the NDCS implementation plan.

Opium poppy cultivation and the drug trade heavily influence the Afghan economy. Trade in opiates acc ounts for 16 percent of Afghanistan’s GDP and approximately 191,000 households, or 5% of population, are involved in opium cultivation. In many of the major production areas, some farmers may not be dependent on opium or cannabis crops but cho ose (or are coerced) to grow it.

IV. Environment

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The National Environment Strategy (NES) aims to improve the quality of life of people of Afghanistan through conservation, protection and improvement of the country’s environment. The following goals were set towards this aim:

 Secure a clean and healthy environment for the people of Afghanistan.

 Attain sustainable economic and social development while protecting the natural resource base and the environment of the country.  Ensure effective management of the country’s environment through participation of all stakeholders.

The strategic vision and goals of the NES originates from the application of four priority programs to build NEPA’s capacity and ability to conduct its mandate. From there, the Strategy elaborates priority program areas for environmental management based on thematic strategies.

Mainstreaming Environment in Other Cross Cutting Sectors of ANDS:

Environmental agendas are mainstreamed through number priority areas and initiatives across other sectors of ANDS, which are explained as follow:

A. Training and Capacity Building

To provide accurate environmental information, technical assistance and effective dissemination of information the National Environment Protection Agency (NEPA) requires on-going and comprehensive training and capacity building programs to develop staff skills in administration, management and NEPA’s programmatic areas such as legal and regulatory frameworks, enforcement, environmental impact analysis, environmental policy and information, outreach and communication, environmental education and awareness and multi-lateral environmental agreements.

B. Legal and Regulatory Frameworks

With the promulgation of the Environment Law and impending issuance of the Environmental Impact Assessment (EIA) policy and regulations, and with further regulatory instruments and a national environmental policy in the pipeline, NEPA is poised to begin educating institutions about the components of these legal instruments and their overall application, to develop the processes and systems required for implementation, and, ultimately, to begin adequately enforcing the framework.

These activities are central to attain the environment benchmark named in the I-ANDS. NEPA will start working with relevant government authorities to develop air quality, water quality, waste management and pollution control regulations following international standards for such “brown” environmental issues. The establishment of these regulations will help mainstream the government of Afghanistan’s standards for environmental quality. Similarly, further “green” or environmental protection regulations will establish the government’s standards for its natural resources including forests and areas of environmental significance such as national parks.

C. Environmental Education, Awareness and Outreach

Public participation is a key feature in the Environment Law and the EIA regulations, and will similarly feature as a component for further environmental laws and regulations. As a coordinating body, NEPA’s

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role includes helping to inform stakeholders, including the Afghan public and government, of their rights and responsibilities under the legal and regulatory framework.

Thus, NEPA will initiate a public awareness campaign in both urban and rural areas to disseminate messages about Afghanistan’s environment, the government’s priorities regarding its use and protection and the government’s commitment and willingness to help improve the lives of Afghans through a rehabilitated environment.

NEPA will also work with the Ministry of Education and Kabul University to develop supplemental, formal environmental materials to teach Afghan students about the relevance and importance of the environment to their daily lives and to begin building a cohort of Afghan professionals with the knowledge and ability to further environmental management in Afghanistan. NEPA will also utilize non- formal education platforms such as mullahs, Islamic scholars, community-based schools, women’s programs, literacy and vocational programs to incorporate environmental information and education materials.

Finally, NEPA will help establish environmental focal points in key government authorities, such as the Ministry of Agriculture, Irrigation and Livestock, the Ministry of Public Health, the Ministry of Education, the Ministry of Women’s Affairs and municipalities to provide timely and relevant environmental information.

D. Environmental Information and Policy

Sound environment policy decision-making and a reliable policy analysis process depends on the quality of scientific information collected from reliable environmental monitoring systems.

Capacity building in the area of environmental information analysis and the scientific base for policy formulation a the key towards the sustainable use of environment resources and sustainable development of the country. The absence of environmental policies and environmental monitoring will affect the development of the environment sector unless a comprehensive program is established. With stakeholder consultation, NEPA will develop and issue a National Environmental Policy, establish a regular environmental monitoring system and associated database and produce a biennial State of the Environment report to document changes in Afghanistan’s environment and inform the status of environmental governance and management.

NEPA will strengthen its coordination role through regular meetings of the Committee for Environmental Coordination (CEC) and the annual National Environmental Advisory Council (NEAC). These coordination bodies were established under the Environment Law to encourage cooperative environmental governance under the direction of NEPA. The purpose of the CEC is to promote the integration and coordination of environmental issues within national and subnational levels of the government. All relevant ministries and sub-national authorities are represented on the Committee while relevant international donors and partners and national NGOs are afforded observer status. The NEAC comprised of representatives of different levels of Afghan society such as governors, Islamic scholars, tribal elders and Provincial, District and Village Council Chairs, will advise NEPA on financial and regulatory matters, as well as environmental matters that are of respectively national and local public importance.

Monitoring (Priorities and Objectives):

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The first priority area for environment crosscutting issues is “Restoration and Sustainable Use of Rangelands”. Approximately, 45% of Afghanistan territory is recognized as rangelands alongside slightly more than 2% of forests and 12% of arable land, but the total area used for grazing of livestock can be as high as 85% of Afghanistan total land. Some initiatives such as Green Afghanistan Initiative are measure taken up to increase and restore greenery across Afghanistan.

The second priority area for this crosscutting issue is “Restoration and Sustainable Use of Forests”. Over the past few decades, more than half of Afghanistan’s forests were cut down illegally. They were either used as fuel wood, or smuggled outside Afghanistan as timber. However, attempts to revive Afghanistan forests are currently underway. Uncontrolled chopping of jungles is curbed and, a number of ‘tree planting’ projects by Afghan government as well as the international community in Afghanistan have been carried out. As an example, one particular ‘tree planting’ campaign sponsored by USAID planted more than 1.2 million saplings of eucalyptus, poplar, shisham, and lucina in eastern Afghanistan in 2009. Similarly, Ministry of Rural Rehabilitation and Development (MRRD) reported planting of at least 14,182 new saplings in 2012. As of 2012, NEPA reported that proportion of land covered by forests in Afghanistan is 2%.

For “Conservation of Biodiversity”, Afghanistan’s government has developed a Biodiversity Strategy and Action Plan as a policy measure, which is currently at an implementation stage. At present, NEPA is working on the assessment and development of scientific and administrative tools regarding protection of the endangered species, which make up to 3% of total indigenous species in Afghanistan. NEPA has also identified 138 species of animals and plants as protected and harvestable species that are prone to extinction and has enlisted them as (Red List) at the national and international level. In 2010, Wildlife Management and Hunting Law was drafted and it is in the pipeline with the Ministry of Justice for further processing. A Presidential Decree regarding the protection of Red Listed species is also issued.

“Accession to/ Signing and Enforcement of MEAs” is one of the other priority areas in environment crosscutting issues. As of 2012, National Environmental Protection Agency (NEPA) has developed 18 sets of laws, regulations, guidelines and procedures. Moreover, Afghanistan is party to around 9 Multilateral Environmental Agreement (MEA) and 3 environmental protocols. The official process of Conventions on Migratory Species (CMS) and Nagoya Protocol have been finalized and proposed to council of minister for approval.

“Preservation of Natural and Cultural Heritage” is also a priority area for environmental crosscutting issues where Afghanistan’s government has taken several initiatives. The Afghan government has managed to enlist the 800 years old Jam Minaret as a UNESCO heritage site and is currently campaigning for certain other cultural heritages to be enlisted by the UNESCO as protected area. Restoration of ancient Citadel of Herat in western Afghanistan and Kabul ancient city restoration are major tasks taken by the Afghan government and the international society for preservation of natural and cultural heritage. Furthermore,

“Encouragement of Community Based Natural Resource Management”

The measures that are taken for “Prevention and Abatement of Pollution” as priority area is adding Thursdays to weekend in Kabul province to reduce air pollution caused by vehicles and transportation. Besides, the government has introduced restrictions on bakeries, bathhouses, brick ovens and other carbon dioxide producing firms.

“Urban Environmental Management”

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As long as “Environmental Education and Awareness” is concerned, NEPA has attempted to develop environmental curriculum and has incorporated and environmental subject into education curricula of the Islamic Republic of Afghanistan in both schools and higher education syllabus. Besides, there have also been attempts to create environmental awareness through mass media and public billboards.

V. Regional Cooperation

Promoting regional cooperation is a vital principle of cooperation in the Afghanistan Compact and an important cross-cutting theme in the ANDS, which includes the Regional Cooperation Sector Strategy. The strategy’s overall goal is to contribute to regional stability and prosperity, and to enhance the conditions for Afghanistan to resume its central role as a land bridge between Central Asia and South Asia, and the Middle East and the Far East, as the best way of getting advantage from increased trade and export opportunities. It advocates the centrality of Afghanistan to regional growth, stability and prosperity and seeks the support of international community in adopting the necessary policies and practical steps to achieve this goal. In order to achieve these long-term goals, the strategy formulates more immediate outcomes to be achieved during the ANDS period (2008- 2013) as follows:

 Enhanced regional cooperation where Afghanistan bridges land locked energy rich Central Asia with Iranian ports and energy deficit South Asia  Afghanistan becomes a transit country that realizes substantial revenue through transit fees, as well as enhanced economic activity.  Afghanistan will facilitate liberalization of its economy, removing impediments and lower trade barriers towards a freer and enhanced flow of goods, services, investment, and technology.  Harmonization of standards and regulations to enhance cross border initiatives like trade and investment for equitable exploitation of common resources of hydropower or hydrocarbons, infrastructure development, and social development.  Improving women’s access to wider political and economical participation at national and regional levels as well as protection against different forms of exploitation and abuse  Regulating migration through proper institutional mechanism and meaningful regional dialogue

Results in line with expected outcomes and overall goals are mixed. On the one hand, there have been significant achievements with regard to regional trade and transit-agreements. Amongst others, Afghanistan re-joined the International Road Transport Union and reactivated the TIR- System in October 2013, certainly facilitating trans-border flows of goods on both imports and exports with neighboring countries. Moreover, with regard to road transportation, MoU on transport and transit have been signed with Iran, Tajikistan, Turkmenistan, Turkey, Uzbekistan and Pakistan. The WTO accession process has been progressing rather promising, the Ministry of Commerce and Industries expects Afghanistan to become a WTO-member by 2015, and the presidents of Afghanistan and Pakistan signed the Transit Trade Agreement (APTTA). Meetings within the RECCA framework take place on a regular basis and additionally, memberships in the following regional organizations were gained: ECO, SAARC, TRACECA & CAREC.

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However, despite the above achievements there is still plenty of room for improvement when it comes to regional cooperation. With regard to regional trade, high infrastructure costs, and costs arising from the lack of proper legal and regulatory systems, restrictive trade policies, poor border management, and the absence of effective transport facilitation, remain major impediments. They include inadequately harmonized trade and customs procedures, lack of transparency, high levels of corruption, a large informal or illegal sector, a weak private sector, and the absence of vital services such as trade finance, banking, insurance, bonding, and telecommunication facilities. Additionally, cross border activities (e.g. transit, trade, and joint infrastructure and social development) are hampered through legacies reflective of historic and geopolitical factors. Most importantly, these are regional insecurity, terrorism and narcotics trafficking and production.

Overall Strategy for Regional Cooperation Sector

Strategic Vision and goals:

The Afghan Government’s goal is to contribute to regional stability and prosperity, and to enhance the conditions for Afghanistan to take up again its central role as a land bridge between Central Asia and South Asia, and the Middle East and Far East, as the best way of benefitting from increased trade and export opportunities.

Sub-sector Strategies

1. Trade and Transit

The Government is committed to pursue trade liberalization and expansion, with the aim to join the World Trade Organization (WTO) in the long term. The Government is also committed to strengthen, revise, and implement existing agreements and to negotiate new effective bilateral and regional transit agreements.

Further goals are, development of effective policies and programs for trade facilitation, streamline border crossing formalities, reduce delays in transit time, upgrade existing trans-shipment facilities at the border points in order to recognize their management as a joint public-private venture.

The trade modernization is also one of the key strategic objectives of regional cooperation strategy. The Government of Afghanistan is committed to modernizing its customs codes, procedures and infrastructure.

2. Power Purchase

To develop electricity trade, water and energy. The Afghanistan Compact states that by the end of 2010 Afghanistan will increase the amount of electricity available through bilateral power purchase agreements with neighbors. The Government will encourage the private sector to play an important role in the development of power sector and to create a legal and regulatory framework to that extent.

3. Exchange of Labor

The Afghanistan Compact states that by the end-2010 Afghanistan, its neighbors and countries in the region will reach agreements to enable Afghanistan to import skilled labor, and to enable Afghans to seek work in the region and send remittances home.

4. Private Sector

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The regional cooperation strategy proposes to encourage the active participation of the private sector in regional cooperation.

5. Counter Narcotics

The Afghanistan Compact states that by the 20th March 2011, 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 smuggle across Afghanistan’s borders and effective action against drug traffickers.

6. Border Management

The regional cooperation strategy proposed that Afghanistan Government ought to work for strengthening cross-border cooperation focusing on interdiction and law enforcement.

7. Gender

The Government of Afghanistan will assess each activity to be undertaken in the field of regional cooperation from the perspective of gender equality, the empowerment of women and the protection against abuse.

Mainstreaming of Regional Cooperation

Policy action

i. Afghanistan view of the region The Government should take practical steps to publicize the inner and outer regions of Afghanistan and its pivotal role in Eurasian connectivity. These steps to include: (1) Holding an international conference on defining the region of Afghanistan (2) promote those regional infrastructure of Afghanistan which help the connectivity of Eurasia.

ii. Advocating the centrality of Afghanistan to economic growth of the region

Afghanistan’s development shall remain a central factor in assuring the growth, stability and prosperity of the region. So, practical steps must be taken.

iii. Pro-active Regional Diplomacy

Afghanistan Government should use its effort to have a multi-pronged pro-active Regional Diplomacy Program (PRDP). The PRDP to primary promote (1) regional confidence building (2) meaningful dialogue and engagement and (3) capacity building.

iv. Development of Main Axis

The strategy focuses to strengthening the RC Economic and development portfolios in the government.

v. Working through Regional Organizations

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The role of Afghanistan needs in the RC organizations has to be established.

vi. Migration and refugees. The priority of the strategy is to prioritize to rehabilitate refugees. vii. Regional cooperation as cross-cutting theme. Plan of action identifying potential opportunities for RC in priority sectors. viii. Capacity Building. The Government has to set up inter-ministerial commission for RC

Monitoring and Evaluation

The overarching objective of monitoring and evaluation should be to sustain the growth process and lower the incidence of poverty in Afghanistan in the most efficient, cost effective and sustainable and gender sensitive way. The JCMB has in a mechanism in place to realize this goal. This mechanism facilitates discussion, policy-making, and implementation monitoring among line ministries, inter- ministerial groups, and international partners. Both the ANDS’s eight sectors and its five crosscutting groups are organized to monitor the implementation process.

Needs for Monitoring and Evaluation Framework

Monitoring and evaluation is essential for producing consistent information that will ensure implementation of regional cooperation projects across a number of executing agencies in collaboration with regional countries. The main objectives of the monitoring and evaluation framework are:

(1) Monitor and evaluate the performance of regional cooperation development results achieved in the area of policy advice, capacity development and knowledge management within the core result areas that the strategy has focuses on as well as the scope and range of strategic partnerships developed;

(2) Monitor the achievement of intended benchmarks and goals, highlighting key results of outputs and outcomes. Methodology In order to consider the achievement of benchmarks through defined goals, outputs, and outcomes, the programs of regional cooperation will be operationalized in terms of concrete indicators to be used in monitoring, starting from baseline data on these indicators. Matrix for Monitoring Regional Cooperation Benchmarks

Energy Increase intra-regional Energy Increase in import of electricity Trade with 2007 levels

Trade Facilitation Increase in trade inflows by I. Growth in Afghanistan lowering transaction times trade with regional countries II. Growth in customs revenue III. Reduction in average time taken at border crossings Transport Goals Improve connectivity

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Labor Migration Agreement to import skilled I. Agreements to enable manpower, agreements to skilled manpower from enable Afghans to seek jobs in the regional countries to neighboring countries work in Afghanistan II. Agreements to enable afghans to seek suitable employment III. opportunities in the region

VI. Anti-Corruption: (is under translation)

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