INTRODUCTION
On July 9, 2008, the Group of Eight nations (G8) urged the Government of Afghanistan to take more responsibility for security, governance, and reconstruction and pledged to increase assistance to that country's army and police. In a statement issued by the Chairman at the end of a three-day summit in northern Japan, the G8 also underscored its commitment to support presidential and parliamentary elections and agreed to strengthen assistance to the Afghan-Pakistan border region.
On August 3, 2008, South Asian leaders concluded a two-day summit in the Sri Lankan capital of Colombo, stressing joint efforts to deal with the scourge of terrorism that hampered economic development of a region home to the largest rural population in the world. In a declaration issued at the end of the 15th South Asian Association for Regional Cooperation (SAARC) Summit, the eight-member grouping underlined collective action to battle terrorism in all its forms and manifestations. They recognized the menace was threatening the peace, stability, and security of South Asia. The participants from Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka urged collective efforts to accelerate economic growth and social progress for the benefit of their people.
According to the United Nations Office on Drugs and Crime (UNODC) Afghanistan Opium Survey 2008, the opium harvest has dropped by 19 percent since 2007 and has fallen beneath 2006 levels as well. More than half of Afghanistan's provinces have now been declared poppy free — that is, 18 of 34 provinces grow few or no poppies, up from 13 poppy-free provinces last year. For more information, please visit http://www.unodc.org/afg/index.html.
WORLD BANK SUPPORT
Since April 2002, the World Bank has committed over US$1.69 billion for 41 development and emergency reconstruction projects and three budget support operations in Afghanistan. This support comprises over US$1.25 billion in grants and US$436.4 million in no-interest loans -known as "credits." Currently, the Bank has 30 active projects in Afghanistan with net commitments of over US$1.15 billion. So far a number of Bank-financed projects have been completed which include education rehabilitation, emergency public works, infrastructure reconstruction, emergency transport rehabilitation projects, and the first phase of public administration project as well as three budget support operations.
The Afghanistan Reconstruction Trust Fund (ARTF) is administered by the World Bank on behalf of 28 donors and managed in conjunction with the Asian Development Bank, Islamic Development Bank, United Nations Assistance Mission for Afghanistan, and the United Nations Development Program. It is the main mechanism for providing coordinated funding support to Afghanistan's recurrent budget and investments, in line with the agreed budget priorities of the government. As of August 21, 2008, 28 donors had pledged over US$3 billion to ARTF, of which US$2.6 billion has been received. More than US$1.5 billion has been disbursed to the Government of Afghanistan to help cover recurrent costs, such as civil servant worker salaries, and US$952 million had been made available for investment projects.
The Japan Social Development Fund (JSDF), administered by the World Bank, has provided a special window for Afghanistan which operates in a harmonized manner to support the national programs of the government. As of September 2008, Japanese contributions to the ongoing JSDF projects reached US$23.1 million.
The World Bank has provided advice to help the government manage donor funds effectively and in a transparent way. The World Bank also supports the government by providing analytical work on the economy, public administration, gender, poverty, the opium economy, and public finance management (PFM). The Bank has actively supported key reforms, particularly in the fiscal and public administration spheres, and through its budget support operations. It has advocated building capacity and legitimacy of the State and channeling donor resources through the government to ensure investments are aligned with national priorities. To this end, the World Bank works closely with other multilateral and bilateral agencies across a number of sectors where aid coordination and government ownership are most critical.
On September 16, 2008, ARTF donors and the Afghan Government met to discuss an independent evaluation of the Afghanistan Reconstruction Trust Fund (ARTF). The evaluation has found that the ARTF has played a vital role in supporting the Afghan Government to bring development to people throughout the country and also to strengthen its management of public finances. The report, produced by Norwegian firm Scanteam, an independent research company, sets out a strategic vision for the future of the ARTF, which donors have now agreed to extend until 2020. The independent evaluation and minutes of the meeting is available at http://www.worldbank.org/artf.
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