The government of Afghanistan has an
opportunity in the coming months to turn the country around.
It is now opportune to improve security, governance, and
development. Unprecedented international military support,
political attention and aid are available to Afghanistan.
The government is inheriting years of good economic
performance, notable progress on social outcomes, and
continuing strong support from the international community.
Gross domestic product (GDP) has grown at an average of 12
percent in the last five years with moderate inflation and a
stable Afghani. The National Solidarity Program is spurring
community-driven rural development in nearly all districts
of the country and the large opium economy is in retreat.
Significant progress has been achieved in basic education
and health. Gender indicators are improving. The government
and its development partners have an obligation to seize
this opportunity for all Afghans. All donors made an
explicit commitment at the London Conference in January 2010
to progressively cede leadership to the Afghan people. The
donors agreed to route half of their development aid through
the national budget from the current one-fifth in the next
two years, as local capacity to execute development programs
improves. Further, donors aim to work together to improve
aid effectiveness by better alignment with Afghan
priorities, minimize opportunities for corruption and
improve aid predictability. This overview summarizes the
view of the World Bank on priority development issues and
policy actions. It is intended to be a useful reference for
the government as it prepares for the Kabul conference. The
issues and policy options proposed are consistent with the
ands and the Bank's interim strategy note of May 2009.
It synthesizes the key findings and analyses of the detailed
policy notes which draw upon the World Bank's past and
ongoing work in Afghanistan, as well as wider experiences,
including those from other countries experiencing conflict.