Policy Design and Implementation in Developing Countries Spring 2013 Afghanistan National Development Strategy (ands) From Planning to coordination and implementation m. hassan soroosh y. July 05, 2013 Policy Design and Implementation in Developing Countries Spring 2013

Initial Steps in Development Planning The Bonn Conference on Afghanistan (December 2001) Laying down the foundations for the post-Taliban reconstruction and agreeing on provisional arrangements. The Bonn Agreement and the Beginning of the Bonn Process The Tokyo Conference on Afghanistan (January 2002 ) The Tokyo Conference was the first step to identify post-conflict key priority areas for reconstruction (preliminary joint needs assessment)and to mobilize aid. The Afghan Interim Administration started moving towards national development planning and national budget. The Berlin Conference on Afghanistan (31 Mar-01Apr 2004) The Berlin Conference was an opportunity for raising of more reconstruction funds in accordance with a better needs assessment. Following the Conference, the Afghan government with support from the international community, began a more serious planning process for longer-term reconstruction.

Key efforts in 2005 1) Adoption of the Afghan MDGs As a late comer, Afghanistan adopted MDGs in 2005. Setting MDG targets for 2020 instead of 2015. Adding “ Enhance Security” as the ninth goal to the list of MDGs in light of the increasing importance of security for the country.

Key efforts in 2005 2) Preparation of the Interim National Development Strategy The Presidential Oversight Committee The Consultation Process Line ministries National Assembly Community and provincial representatives Religious leaders Private sector Civil society NGOs UN and Donors Senior Economic Advisor to the President (Chair) Minister of Foreign Affairs National Security Advisor Minister of Commerce Minister of Finance Minister of Economy Minister of Rural Rehabilitation

Structure of the Interim ANDS

Key efforts in 2005 3) Development of a New Framework for Cooperation Throughout 2005, the Afghan government, in consultation with the international community, developed a framework for cooperation between Afghanistan and the international community that included the mutual commitments. The new framework for cooperation, called “ the Afghanistan Compact”, outlined the principles of cooperation in various areas of security, governance and economic development. End of the Bonn Process

London Conference on Afghanistan (31 Jan- 1 Feb 2006) -Adoption of the Interim ANDS - Adoption of the Afghanistan Compact as a political agreement between the Afghan government and the international community. - Creation of the Joint Coordination and Monitoring Board (JCMB) for the overall strategic coordination of the implementation of the Afghanistan Compact, co-chaired by the Senior Economic Advisor to the President and the Special Representative of the UN Secretary-General for Afghanistan.

Towards Full ANDS A broader and more extensive consultation process was conducted with stakeholders and players from (i) national; (ii) sub-national; (iii) international; and (iv) private sector, civil society, religious and traditional communities. Over17,000 people (47 % women) were directly consulted in the process. The consultation process was designed to reflect the structures of Government at national, provincial and district levels . An ANDS Secretariat was established to manage the day to day preparation of the ANDS. The Presidential Oversight Committee with a slight change in its composition continued overseeing the economic, policy and strategic direction for the development of the ANDS. Within the framework of the various Consultative and Technical Working Groups, each Ministry and Agency developed its individual strategy, coordinated within the sector wide approach underpinning the ANDS. JCMB coordinated the efforts of all partners in the process.

Structure of the ANDS Consultation Process

Sub-National Consultation The sub-national consultation process of the ANDS represented the first significant dialogue between the central Government and the provinces; designed to strengthen centre-periphery relations. As a result of the sub-national consultation proces,18,500 village based development plans were formulated, leading to 345 district development plans, which were finally consolidated into 34 Provincial Development Plans (PDPs). These PDPs identified needs and key development priorities for each province. Both the national (top-down) and sub-national (bottom-up) processes were developed into the sector strategies. In total, 80 priority projects were identified for each province. Efforts were made to prioritize and sequence the PDPs and the relevant projects and to integrate the PDPs into ANDS.

Prioritization by provinces and sectors

ANDS Structure Capacity Building Gender Equity Counter Narcotics Security Governance Social and Economic Development PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 PILLAR 5 PILLAR 6 PILLAR 7 PILLAR 8 Security Good Governance Infrastructure & Nat. Resources Education & Culture Health & Nutrition Agriculture & Rural Develop. Social Protection Econmic. Gov & Private Sector Sectors Security Justice Energy Education Health & Nutrition Agric. & Rural Development Social Protection Private Sector Development Governance, Pub. Admin, HR Transportation Culture, Media, Youth Refugees & IDPs Trade Religious Affairs Water Management ICT Urban Development Mining Cross-Cutting Issues Capacity Building Gender Equity Counter Narcotics Regional Cooperation Anti Corruption Environment

The Paris Conference on Afghanistan (June 2008) Adoption of the first Afghanistan National Development Strategy (ANDS) as an MDGs- based plan and as Afghanistan’s Poverty Reduction Strategy Paper (PRSP).

Coordination and Implementation of ANDS The transformation of the Presidential Oversight Committee into the Government Coordination Committee (GCC) charged with overseeing and facilitating progress in the implementation of the ANDS, reporting regularly to the President, the Cabinet and to the JCMB. The establishment of the Inter-Ministerial Committees (IMCs) to coordinate the work of different ministries at the sector level and to also help provide a base for cooperation and coordination between the government and donors. The establishment of new ANDS Units at the Ministries of Finance and Economy to facilitate progress towards the goals of the ANDS and to support the GCC and the IMCs in their management and oversight roles. The expansion of JCMB structure through creating three Standing Committees, corresponding to three ANDS Pillars namely security; governance; and economic and social development. Together, the IMCs and Standing Committees have replaced the Consultative Groups that existed earlier.

ANDS Coordination, Monitoring and Reporting Structure

An Example of IMC Structure (the Water IMC)

Donor Coordination and Aid Management Structure Following the Paris Conference (2008) the donors and the government agreed to reorganize their approach to consultations and aid coordination. The new coordination structure is based on periodic JCMB meetings, Standing Committees and the IMCs.

The Kabul Process and the Cluster Approach ANDS Prioritization and Implementation Plan Presidential Inaugural Speech (November 2009) Outlining clear priorities for stabilizing and developing Afghanistan and emphasizing the need for greater Afghan leadership and ownership. London Conference on Afghanistan (January 2010) Introducing cluster approach as a plan for more coherent and better coordinated development. Kabul Conference on Afghanistan (July 2010) Presenting the concept notes of the National Priority Programs(NPPs) Greater emphasis on Afghan leadership and ownership including through increased budget support and alignment. The Bonn Conference on Afghanistan (December 2011) Endorsing Afghan Government’s economic transition strategy. Reaffirming commitment to Afghan ownership.

Over 20 National Priority Programs under 6 clusters Establishment of 6 Clusters: Governance : 6 NPPs Economic and Infrastructure Development: 6 NPPs Agriculture and Rural Development: 4 NPPs Human Resource Development: 6 NPPs Private Sector Development: 1 NPP Peace and Security: 2 NPPs The Cluster Approach To enhance government leadership in the development process, To ensure high quality of inter- ministerial and official level coordination towards setting program priorities. To identify programming linkages between different clusters.

The Tokyo Conference on Afghanistan (July 2012) preparing for the Transformation Decade (2015-2024) Moving towards a self-reliant economy - Presenting the prioritized growth and development strategy serving as a plan for gradual shift from aid-dependency to self-reliance throughout the transformation decade. - Greater reliance on domestic human and resource potential. - Strengthening capacity development and improving budget execution. Lunching a new aid management policy to address issues related to declining aid including fiscal management, government capacity and donor behavior.

Tokyo Mutual Accountability Framework (TMAF) An important outcome of the Tokyo Conference (2012) A mechanism to monitor and review the progress on development and governance goals, jointly by the international community and the Afghan government on a regular basis (The first TMAF meeting was held in Kabul on Wednesday, July 03, 2013). These goals include the commitment of the government to strengthen governance, gradually reduce Afghanistan’s reliance on donor financing, manage aid resources effectively and transparently, and to achieve sustained economic growth and inclusive development. Mutual commitments to adhere , among other things, to the global principles of aid effectiveness. The commitment of the international community to sustain its financial support to Afghanistan through the transformation decade and to align their commitments behind NPPs.

Structure of the Prioritized Strategy (as presented to the Tokyo Conference 2012)

Conclusion (1) As a highly aid-dependent country, Afghanistan has experienced direct involvement of the donor community in development planning and management in the country in the past 11 years mainly through the international conferences on Afghanistan and the relevant established mechanisms that have set the direction of development planning process in the country. The Afghan government has been able to improve its capacity in designing and prioritizing development programs. Particularly the latest NPPs have been developed and prioritized with a greater involvement of domestic capacity and have been chosen based on their contribution to sustainable economic growth, revenue generation, job creation and human development. While, after 11 years, Afghanistan has a clear vision and a defined development strategy with prioritized development programs, challenges still exist in coordination and implementation of the programs.

Conclusion (2) In order to bring better coordination both at intra-government level as well as between the Afghan government and the international community, the IMCs and the JCMB Standing Committees need to be further strengthened. While the Afghan government is committed to gradually reduce its dependency on aid, however, in order to implement NPPs, continued international aid is needed throughout the transformation decade. The TMAF is a good mechanism to improve aid effectiveness and aid predictability in the years to come, but experiences in the past 11 years in Afghanistan show that such mechanisms can work only with a clear action plan and a continued follow-up mechanism supported by both the Afghan government and the international community.

An additional slide on the International Aid to Afghanistan International Aid since 2002