In Dari | In Pashto Contacts:
In Kabul: Abdul Raouf Zia (93) 702 80800
Azia@worldbank.org
In Washington: Erik Nora (202) 458 4735
enora@worldbank.org Kabul, June 3, 2008 ─ World Bank Managing Director Ngozi Okonjo-Iweala today concluded a three-day visit to Afghanistan, in which she reconfirmed the World Bank’s long-term commitment to building a prosperous and stable nation. During her visit, Okonjo-Iweala met with President Hamid Karzai, cabinet ministers, and representatives of the donor community. The discussions focused on preparations for the June 12 Paris Conference. In addition, Okonjo-Iweala visited rural areas in Bamiyan province to see first-hand how local communities are coming together to define priorities and build essential local infrastructure with the support of the government. “Only Afghans can develop Afghanistan. They must therefore rise to the challenge and tackle the difficult issues of building institutions, fighting corruption and improving service delivery to ordinary citizens. The international community should support Afghanistan and its development and recognize that the process will require their long term engagement,” said Okonjo-Iweala. "In conflict and post-conflict countries, where capacity and institutions are weak, building or re-building both infrastructure and institutions are key ingredients to success. But to be done correctly it will take time,” she added. Okonjo-Iweala noted that much had been achieved in Afghanistan in a relatively short time. Almost 85 percent of Afghans had access to basic health services and over 6 million children were now in school. The first priority now was to build on projects that were delivering results for citizens. She added that enormous challenges remained to improve the quality of service delivery and that progress would require significant improvements in government capacity, a deepening of public administrative reforms and an aggressive attack on corruption. “Government must be – and be seen – to be accountable for service delivery.” she said. At the upcoming Paris Conference, the Afghan Government is expected to present its five year National Development Strategy (ANDS). The ANDS is a comprehensive strategy which provides a development vision for the country. It is based on an extensive consultation process, which included some 17,000 representatives of government, civil society, the private sector, and general public, at the national, provincial, and local levels. Okonjo-Iweala said the strategy document illustrated the considerable progress Afghanistan had made in many respects since the fall of the Taliban regime in 2001. There were still daunting challenges though to the country’s ambitious efforts to improve security, build an effective and accountable state, and embark on sustained economic development and poverty reduction. “The strategy is ambitious – and rightly so,” she said. “However, its realization will rely on a partnership of trust with the international community and on a clear sense of priorities. A pre-requisite for that partnership is determined action to tackle corruption, raise more revenue and establish a level playing field for the private sector.” The Managing Director visited several World Bank-financed programs, including communities involved in the National Solidarity Program (NSP): “This program is important not just for the infrastructure it builds, but for laying the foundation for a sustainable form of inclusive local governance and poverty alleviation at the level of the community itself,” said Okonjo-Iweala.
She also heard from a number of microfinance borrowers about how they used their credit to set up a business. “It gives us encouragement that our intervention helps the poorest families make a living,” she told a group of female microfinance borrowers. “I understand that helping you establish a business not only provides critical income for your families, but helps you become a productive player beyond your own home in the wider economy.”
Recently the World Bank committed a US$30 million grant to help improve sustainability of microfinance sector in Afghanistan. Access to microfinance services has reached over 436,000 Afghans in 23 provinces. Sixty five percent of borrowers are women. In Bamiyan Province, there are currently about 3,622 active borrowers. Okonjo-Iweala said that judging by the number of clients the sector has reached since inception in 2003, it was clear the microfinance program had already demonstrated its ability to reduce poverty and create economic opportunities and employment for poor people in most parts of Afghanistan. Since resumption of operations in Afghanistan in April 2002, the World Bank has financed 37 projects, committing around US$1.66 billion of which US$1.2 billion is grant and US$436.4 credit (interest-free loan). By the end of the current fiscal year 2008 (July 2007 – June 2008), the World Bank commitment will be US$255 million in grants. The World Bank funded projects mostly support rural livelihoods, rebuilding infrastructure, education and basic health services. For more information on the Bank’s work in Afghanistan, please visit http://www.worldbank.org.af |
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