January 16, 2008 - As part of regular meetings with major partners in rebuilding Afghanistan, Alastair McKechnie, World Bank Country Director for Afghanistan, recently visited Canada. He said the visit provided a good opportunity to meet with a broad range of people: Canadian government officials, parliamentarians, civil society, academics, and private sector, all of whom are interested in Afghanistan and in exchanging views on development issues. This visit also highlighted the World Bank’s close relationship with the Canadian International Development Agency (CIDA) in working to identify priorities for Afghanistan’s development.
Terming Canada's contribution as very important, McKechnie said, “Canada is the largest contributor to the Afghanistan Reconstruction Trust Fund (ARTF), which is administrated by the World Bank, in this fiscal year.”
In the development area, McKechnie said, “Afghanistan has been very successful story. The economy has been growing at double digits since 2001 and is one of the fastest growing economies in the world.”
Talking about ongoing controversy surrounding Canada’s role in Afghanistan, McKechnie said, “Most of this controversy is about the presence of Canadian troops in Afghanistan and sharing the military burden within NATO.”
Very often countries look at Afghanistan through a particular lens, especially the countries that have troops in the ground. If a country is engaged militarily as Canada in Southern Afghanistan, McKechnie said, “The positive story of development taking place in the rest of the country and also in the south is often overlooked.”
Speaking about the creation of the Independent Panel on Canada’s Future Role in Afghanistan by Canada’s Prime Minister, McKechnie welcoming the initiative said, “All of us involved in development are continually reassessing what we are doing in the development field and adjusting our programs as we learn more about what works and what does not work in Afghanistan.” He noted that the debate in Canada is not about whether the country should remain involved in Afghanistan, but rather, in what capacity.
Commentary on Canada's role in Afghanistan's development
Alastair McKechnie, World Bank Country Director for Afghanistan, talks about the Canada's key role in Afghanistan's development.
Alastair McKechnie, Afghanistan Country Director
- What was the purpose of your recent visit to Canada? (37s) wmv
- How would you assess the importance of Canada’s contributions to Afghanistan? (47s) wmv
- Can you discuss about the impact of Afghanistan Reconstruction Trust Fund, and in particular on the Canadian participation? (1m:26s) wmv
- Prime Minister Harper recently created an Independent Panel to study the role of Canada in Afghanistan. What would be expected outcome of this and will the debate affect the Canadian involvement in Afghanistan? (1m:14s) wmv
- Can you talk about a few projects in Afghanistan supported jointly by Canada and the World Bank? (1m:09s) wmv
- Does the World Bank currently work with the Canadian International Development Agency (CIDA)? (27s) wmv
- During you recent visit to Canada, you hailed Afghanistan as a success story? Can you briefly explain? (1m:25s) wmv
- How do you see IDA's role in South Asia? (1m:21s) wmv
Canada is the largest contributor in this fiscal year (2007-2008) to the World Bank-administered Afghanistan Reconstruction Trust Fund (ARTF). Since the ARTF’s inception in 2002, Canada has contributed US$412.2 million (18.8 percent of the total) making it the second largest contributor to the trust fund after the United Kingdom. Canada's assistance to Afghanistan is delivered through the Canadian International Development Agency (CIDA). The funds support projects through the World Bank-administrated trust fund, the ARTF.
Canada’s approach to rebuilding Afghanistan has been to help Afghans help themselves. This approach enables local ownership and accountability while ensuring that assistance remains responsive to Afghan needs. Canada's assistance program emphasizes the following areas:
The National Solidarity Program (NSP) is the most effective national flagship program, supported by International Development Association of the World Bank. This year Canada contributed US$52 million via the ARTF for NSP, which is working in every province to deliver block grants directly to communities. The grants are used for local infrastructure projects, selected by the communities themselves through an open process.
Canada is the largest and most important contributor to the successful microfinance program, which provides financial services, including small loans to poor Afghans who would normally be denied such access. This support has enabled many to start or expand businesses or purchase seed and fertilizers, providing poor Afghans with sources of income. The program is rapidly scaling up outreach across the country through microfinance institutions that are becoming sustainable Afghan companies. Canada's commitment to ARTF for this program is US$71 million, accounting for about 60 percent of total funding since 2002.
Canada has co-financed, through ARTF, IDA’s education program, this year contributing US$30 million. The program finances community-led school construction.
Afghanistan Reconstruction Trust Fund (ARTF)
The multilateral Afghanistan Reconstruction Trust Fund (ARTF) was set up in May 2002 to provide support to Afghanistan in two areas. First, it provides for the recurrent costs of the government: the salaries of teachers, health workers, civilian staff in ministries and provinces, operations and maintenance expenditures, and bulk purchases of essential goods for the government. Second, it supports investment projects, capacity building, feasibility studies, technical assistance, and the return of expatriate Afghans.
The ARTF is administered by the World Bank under the supervision of a management committee comprising the Asian Development Bank, the Islamic Development Bank, the United Nations Development Program, and the World Bank. Government representatives (mainly from the Ministry of Finance) also participate in the monthly management committee meetings as observers. A monitoring agent has been recruited to assist in ensuring proper fiduciary management for the recurrent cost financing done under ARTF.
As of December 21, 2007, 28 donors have pledged US$2.4 billion to ARTF, of which almost US$2.2 billion had been paid-in to the Trust. Over US$1.3 billion had been disbursed to the Government of Afghanistan to help cover recurrent costs and US$600 million had been made available for investment projects.
Beneficiary Voices
- Mullah Abdul Rahman, a village elder from the Guzara district of Herat, remembers when there was no drinking water in the village. Not anymore. (Read More »)
- Improved irrigation revives agriculture in Kapisa and Panjshir provinces. Malik Sher Agha, after many years conflict, has now returned to farm his 2 hectares of land in Kapisa. He grows wheat, maize, barely, and vegetables. (Read More »)
- Reforms Reaching Rural Afghanistan: A quarter of seats in the Provincial Councils are held by women. (Read More »)
Additional Resources
- National Public Consultation Conference The conference is part of the National Solidarity Program (NSP), a project that empowers the grassroots of Afghan society by the establishment of local governance bodies in villages across the country. (Read More »)
- Watch National Solidarity Program at work This program has reached all the country’s 34 provinces, touching the lives of 13 million villagers. (Read More »)
- 4th Afghanistan Development Forum The fourth Afghanistan Development Forum (ADF) convened in Kabul on April 29-30, 2007. The Afghanistan government presented priority strategies to the international community and together they assessed development outcome and future needs. (Read More »)
- South Asia: Development Data A wide range of social and economic measures on South Asia, including links to the World Bank's most important online development databases. (Read More »)
- South Asia: Analysis and Research Compilation of all the World Bank's publications on South Asia, with 'search' options and links to analysis and research on other South Asian countries. (Read More »)
- World Bank Program in South Asia Launching pad to all information on World Bank activities in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. (Read More »)
RSS