Team Infidel
Forum Spin Doctor
Financial Times
May 15, 2008 By Jon Boone, Kabul
Afghanistan is set to ask the international community at a conference in Paris next month for $50.1 billion to finance its reconstruction over the next five years.
The hefty price tag of the Afghanistan National Development Strategy – more than double the per year funding demands of a similar 2004 masterplan – has raised eyebrows among diplomats and development experts who have questioned whether the Afghan government has the ability to oversee such a large spending spree.
The largest portion of cash – $14bn – is earmarked to revamp decrepit infrastructure, including airports, an urban development project on the fringe of Kabul and construction of a functioning railway.
Another $14.2bn is planned for building up Afghanistan’s security services to combat the Taliban insurgency, which is currently tackled with international military assistance.
Large amounts of cash are also to be spent on agriculture and rural development, which could receive $4.5bn under the plan.
Ishaq Nadiri, an Afghan-US economist who heads the ANDS, said it would be crucial to rebuild the farming base of a country that was once famous for its dried fruits.
He said a private sector-led revival of the agricultural sector could help to address Afghanistan’s chronic trade deficit – the country exports $500m of goods for every $2.5bn imported.
Prof Nadiri conceded that he might not receive everything he asks for.
“We hope to get it all, but we may not,” he said. “You know pledges are one thing and donations are another.”
A successful meeting in Paris is seen as crucial to the country’s future and the political aspirations of Hamid Karzai, the president, who is likely to put himself forward for re-election next year.
“He wants to be able to come back from Paris with lots of cash and a plan, as proof to his people that he can get the resources Afghanistan needs,” a western diplomat in Kabul said.
Donors have expressed amazement that the proposed budget has been raised by almost 20 per cent in the past few weeks.
The ANDS added an extra $9bn to the plan after Mr Karzai demanded that more projects were added.
May 15, 2008 By Jon Boone, Kabul
Afghanistan is set to ask the international community at a conference in Paris next month for $50.1 billion to finance its reconstruction over the next five years.
The hefty price tag of the Afghanistan National Development Strategy – more than double the per year funding demands of a similar 2004 masterplan – has raised eyebrows among diplomats and development experts who have questioned whether the Afghan government has the ability to oversee such a large spending spree.
The largest portion of cash – $14bn – is earmarked to revamp decrepit infrastructure, including airports, an urban development project on the fringe of Kabul and construction of a functioning railway.
Another $14.2bn is planned for building up Afghanistan’s security services to combat the Taliban insurgency, which is currently tackled with international military assistance.
Large amounts of cash are also to be spent on agriculture and rural development, which could receive $4.5bn under the plan.
Ishaq Nadiri, an Afghan-US economist who heads the ANDS, said it would be crucial to rebuild the farming base of a country that was once famous for its dried fruits.
He said a private sector-led revival of the agricultural sector could help to address Afghanistan’s chronic trade deficit – the country exports $500m of goods for every $2.5bn imported.
Prof Nadiri conceded that he might not receive everything he asks for.
“We hope to get it all, but we may not,” he said. “You know pledges are one thing and donations are another.”
A successful meeting in Paris is seen as crucial to the country’s future and the political aspirations of Hamid Karzai, the president, who is likely to put himself forward for re-election next year.
“He wants to be able to come back from Paris with lots of cash and a plan, as proof to his people that he can get the resources Afghanistan needs,” a western diplomat in Kabul said.
Donors have expressed amazement that the proposed budget has been raised by almost 20 per cent in the past few weeks.
The ANDS added an extra $9bn to the plan after Mr Karzai demanded that more projects were added.