THE WORLD BANK GROUP
Public Disclosure Authorized
C O U N T R Y U P D A T E
South Asia Region (SAR) Afghanistan
INTRODUCTION
Public Disclosure Authorized Afghanistan has begun an enormous political, economic, and social transformation since it was suddenly catapulted onto the world stage just a little over a year ago. Progress to date has been encouraging, but tremendous challenges remain.
After 23 years of conflict, the Afghan people are working with a strong sense of urgency to restore peace and prosperity. They have installed a new national government, held a national assembly—the Loya Jirga, and elected a head of state. The government has prepared a national budget and development framework to guide the country’s reconstruction, and there are signs of economic recovery. Agricultural production has increased by an estimated 82 percent compared to 2001.
With international assistance, the government has undertaken a tremendous effort to eradicate polio and vaccinate against measles and TB. The numbers of students and teachers returning to school as a result of a donor-assisted Back-to-School Campaign Public Disclosure Authorized have far exceeded expectations, with 3 million students enrolled and another 1.5 million looking for schooling opportunities.
Afghanistan is far from being secure in these achievements, however. It still faces The World Bank and Partners daunting challenges, with most Afghan people still living in dire poverty. Only 23 percent of Afghans have access to safe water, 12 percent to adequate sanitation, and Afghanistan Work in Progress: just 6 percent to electricity. Despite increases in agricultural production, an estimated 7 million people remain vulnerable to hunger, and the risk of famine is still high. More Keeping lights on in Kabul than 70 percent of schools need repairs, as do most of the country’s primary roads. Life expectancy at birth in Afghanistan is 44 years (compared to 59 years for low- Training female teachers Creating jobs income countries worldwide). Connecting government to the internet The government also faces the enormous tasks of drafting a constitution, developing Keeping Salang Tunnel open all a sound financial and banking system, holding free and fair elections, and developing winter a professional national security architecture—all of this while the situation in the Public Disclosure Authorized Working with communities country remains highly volatile. Cleaning up Kabul Helping government manage WORLD BANK ASSISTANCE
resources In February 2002, the World Bank reopened its office in Kabul, where a country manager
and a permanent staff of around 20 are now stationed. The Bank has been working closely
The World Bank in Afghanistan: http://www.worldbank.org/af with the government and bilateral and multilateral development agencies to help ensure that international assistance is well coordinated and efficient. In doing so, it has stepped
primarily into areas where it has the most comparative advantage in providing financing
and technical assistance, including public administration; infrastructure development at the village and provincial levels, as well as in urban areas; and education. The Bank is also providing assistance in the national highways, health, and financial sectors and is supporting the government’s efforts to strengthen its administration and create the institutions and policies needed for sustainable growth. In addition, the World Bank is the administrator of the multilaterally supported Afghanistan Reconstruction Trust Fund, which is being used mainly to cover government recurring costs and salaries.
In the fiscal year ending June 30, 2002, the World Bank committed US$100 million in grants for four development projects, which the government has begun to implement. In addition, the Bank is administering a US$2 million grant from the Japan Social Development Fund for Afghanistan and a US$1.5 million grant from the World Bank Post Conflict Fund to finance a number of refugee education projects being implemented by NGOs and United Nations-affiliated agencies.
World Bank staff consults project team The World Bank has also focused on building government capacity to manage donor funds members from United Nations Habitat and with transparency and accountability and to outsource program implementation to NGOs, Kabul municipality the private sector, and communities. The World Bank has been an active advocate of the importance of channeling donor resources through the government. Channeling funds
through the government helps assure that investments are aligned with national priorities.
Equally important, it helps build the capacity and the legitimacy of the state, which are both critical to help achieve stability in Afghanistan.
STATUS OF OPERATIONS
Emergency Infrastructure Reconstruction Project - US$33 Million Grant