Media Contacts:
In Washington: Erik Nora (202) 458-4735
E-mail: jnora@worldbank.org
In Kabul: Abdul Raouf Zia 93.702.80800
E-mail: azia@worldbank.org
February 2, 2006, London -- The World Bank announced a pledge of US$1.2 billion to Afghanistan at a major donor conference in London this week. This pledge helped bring to US$10.5 billion the total pledge Afghanistan received at this week’s high-level meeting in London.
The Afghanistan Compact agreed between the international donor community and the Government of Afghanistan in London this week, sets out, among a list of goals for the next five years, a commitment to avoid undermining national institution building. Conference participants showed strong support for increased use of government systems, like the budget, to channel their assistance to Afghanistan’s priorities. This ensures that Afghanistan has ownership of its development program and ensures value for money.
“To be effective, our finances must be provided to support programs and priorities of the government and must support the leadership of the Government of Afghanistan,” said Praful Patel, World Bank Vice President for South Asia. “Accountability for implementing development programs and providing services to Afghan citizens ultimately lies with the government and we, in the international community, must come together to help.”
Following the conference the 24 donors to the Afghanistan Reconstruction Trust Fund met to discuss details how to improve use of this mechanism that provides funds directly to the government’s budget to meet its own priorities. “The ARTF is the best example of how we can coordinate and pool resources to support the government. How do we do even better now and make sure the spirit of coordination infuses all our efforts?” posed Patel at the meeting.
The ARTF is administered by the World Bank with contributions so far from 24 donors totaling over US$1.3 billion. All funds from the ARTF are channeled through the government’s budget and are carefully monitored to ensure fiduciary standards are adhered to. It has proved a highly flexible instrument giving government some budget predictability and reducing multiple reporting requirements by pooling donors into one mechanism. The resources have been used both to fund recurrent government spending like the payment of teachers and health workers and to support 12 projects so far that are providing services and infrastructure in every province of the country.
“The 24 donors who have channeled some or all of their support to Afghanistan through the ARTF can be truly proud that some of the best development work is being accomplished through this instrument,” said Patel. “Not only is it critically keeping the wheels of government turning but its reaching the very ordinary and very poor citizens of Afghanistan in an uncomplicated way that delivers results directly.”
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