OFFICE OF EDUCATION Initiating G2G in Afghanistan A G2G Case Study Version: February 2014 G2G Education Toolkit Case Study Afghanistan: Initiating G2G This case study traces the development and initiation of the first government-to-government (G2G) assistance activity by USAID Afghanistan in the education sector. USAID is committed to an agreement with the Government of Afghanistan and donors to increase on-budget assistance to 50 percent of total USG development assistance in the country. The USAID Afghanistan project, Basic Education, Literacy, Technical and Vocational Education and Training (BELT) was designed to meet this target. The initial activity, using G2G Cost Reimbursement to pay for the contracted printing of approved primary school textbooks, began in 2011. While it appeared initially to be a simple and straightforward activity, implementation within the politically-charged environment of a conflict state has proven more complex than anticipated. Information for the case study was gathered from an extensive review of relevant documents and interviews with USAID Afghanistan and other education staff. Education Office Economic Growth, Education and Environment February, 2014 G2G in Education: Case Study: Afghanistan Initiating G2G 2 FOREWORD Government-to-government Education Toolkit In line with the compelling policy guidance of USAID Forward, Agency Education Officers are currently exploring and developing new government-to-government (G2G) modalities in education projects. An immediate need exists for tools and training materials that will assist Education Teams as they design, implement, and monitor G2G activities to achieve USAID Strategy Goals in Education. Under the leadership of the Bureau for Economic Growth, Education and Environment’s (E3) Education Office, the G2G Education Toolkit has been developed to provide this support. The Toolkit includes a literature review; an analysis of lessons learned and best practice; an analytic framework and roadmap; operational tools; and case studies. Additionally, sample G2G operational documents from Missions currently undertaking government-to-government activities are available to guide field staff. The purpose of the G2G Education country case studies is to capture the lessons learned and effective practices through documentation of Missions’ operational steps in assessing, designing, implementing and evaluating education projects with G2G financing. G2G in Education: Case Study: Afghanistan Initiating G2G 3 Acronyms ARTF Afghanistan Reconstruction Trust Fund BELT Basic Education, Literacy and Technical-Vocational Education Training Project DAB Da Afghanistan Bank G2G Government-to-government assistance GIRoA Government of the Islamic Republic of Afghanistan IL Implementation Letter MOE Ministry of Education MOF Ministry of Finance MOPH Ministry of Public Health OAA Office of Assistance and Acquisitions [USAID] OBA On-budget Assistance OFM Office of Financial Management OSSD Office of Social Sector Development SOAG Strategic Objective Agreement G2G in Education: Case Study: Afghanistan Initiating G2G 4 Contents Acronyms ............................................................................................................................................4 Preface ................................................................................................................................................6 County context ..................................................................................................................................7 USAID Afghanistan and Government-to-government Assistance ...............................................8 USAID/Afghanistan Support for Education.....................................................................................9 The BELT Project ..............................................................................................................................9 The G2G Strategy in BELT: Start with Books ........................................................................... 10 Key elements of the Design: The First Implementation Letter ............................................... 10 What Happened? ‘If only we knew then what we know now!’ ........................................................ 14 Next steps for BELT Government-to-Government Activity....................................................... 15 Key Takeaways ................................................................................................................................. 16 Case Study Questions ...................................................................................................................... 18 Document Sources ........................................................................................................................... 19 Annexes .............................................................................................................................................20 Annex 1: BELT Textbook Procurement Project Description ................................................. 21 Annex 2: Implementation Letter #20-4 for Textbook Procurement, Nov. 16, 2011 ............ 28 Annex 3: Implementation Letter #41, Oct. 13, 2013 ............................................................... 31 List of Figures Figure 1: Framework for G2G Assistance: Afghanistan BELT Textbook Procurement ......... 17 G2G in Education: Case Study: Afghanistan Initiating G2G 5 There is a path to the top of even the highest mountain. Afghan Proverb Preface The E3 Office of Education Team sought a case study within an Education Goal 3 context in which USAID designed and initiated a project using government-to-government (G2G) assistance. The Mission in Afghanistan has a decade of experience in budgetary support to the Afghan Government both through a multi-lateral trust fund managed by the World Bank and through direct on-budget support to large projects in the health sector. In 2010, the Government of the Islamic Republic of Afghanistan (GIRoA) and leading donors signed an agreement committing agencies to provision of at least 50 percent of development aid through on-budget assistance. This has considerably increased pressure to develop G2G assistance across all sectors. In Education, USAID designed the Basic Education, Literacy, Technical and Vocational Education and Training (BELT) project to meet the 50 percent target. The initial G2G activity to pay for the contracted printing of approved primary school textbooks began in 2011. The use G2G Cost Reimbursement to pay vendors seemed initially to be a simple and straightforward activity. USAID determined that the Ministry of Education (MOE) had the necessary capacity to procure and contract out for the printing of textbooks. The strategy to start on-budget G2G assistance with the MOE through a relatively low-risk, easily-tracked activity appeared sound. Overlaid against the Afghanistan context, this case study illustrates the experience of managing the textbook procurement component of BELT project which ultimately has been more complex and problematic than anticipated. It underscores the importance of performing an initial examination of the larger institutional and system context and of developing relationships guided by strong communications and transparency. In an environment of high political stakes coupled with weak government systems, G2G assistance in the Afghanistan context puts an additional management burden on both Ministry of Education (MOE) and USAID technical staffs. This case study traces USAID Afghanistan’s experience with budgetary support since 2002. Thereafter, the Mission’s assistance to the education sector, the current education project (BELT) and the design of G2G assistance, and the Mission’s experience of implementing the G2G activity are described. The case concludes with a summary of key points and a set of questions that provide a useful guide for reflection and analysis for other Missions and education teams in the process of operationalizing G2G assistance. The case was developed based on an extensive review of documentation and interviews with the G2G in Education: Case Study: Afghanistan 6 USAID Afghanistan Education Team. Additionally, the study benefited from interviews with E3 Office of Education Team members, Suezan Lee and Steven Kowal, who are assisting the Mission to develop additional BELT components using G2G assistance. Key source documents, the BELT textbook procurement project description and two Textbook Printing Implementation Letters, are provided in Annexes 1, 2, and 3 respectively. County context Afghanistan is a country devastated by years of war and conflict during which the education system was largely destroyed. Under the period of Taliban control from 1997 to 2001, girls were officially forbidden to attend secular public schools. Since 2002 however over 4,000 new schools have been built and enrollment has increased from 700,000 boys (no girls were officially enrolled at the time) to 8.6 million students of which 39 percent are girls. The teacher workforce has also expanded exponentially from 20,000 male teachers in 2002 to over 180,000 in 2012 of which 31 percent are female. 1 These are remarkable achievements for a country still embroiled in internal conflict and are largely dependent on external financing of public sector programs. Yet the challenges ahead remain daunting. Forty-two percent of school age children remain out of school; girls living in rural areas remain a large proportion of these. The