World Bank Welcomes Aid Effectiveness In Afghanistan

Washington, DC (AHN) - The World Bank on Wednesday welcomed a report released by the Agency Coordinating Body for Afghan Relief (ACBAR) and commended its focus on aid effectiveness and the need to channel aid through the government of Afghanistan.

The World Bank (WB) has for many years urged donor countries to direct more of their aid through government channels to help ensure fiscal sustainability and support the country's long-term development.

"To build a state and be accountable to its people, the government needs to have a say over resource allocation. This is why the World Bank channels all its funds through the government budget," said Mariam Sherman, World Bank Country Manager for Afghanistan.

With this responsibility the government must also develop its ability to use funds efficiently and transparently. Afghanistan has shown substantial improvement in its management of public funds.

The WB also endorsed the report's call to maintain the volume of aid to Afghanistan and its focus on the quality of aid and its impact on the poorest.

It is fully up to date on its pledges to Afghanistan. At the January 2006 London Conference on Afghanistan, the WB pledged US$1.2 billion to Afghanistan for five years ($240 million per year).

In Fiscal Year 2007, the WB exceeded this pledge by approving projects totaling $316 million and is on schedule to finance projects worth $247 million in the current fiscal year (FY08).