World Bank Managing Director Graeme Wheeler today concluded a two-day visit to Afghanistan by highlighting the country’s achievements under extraordinarily difficult circumstances, but also noting that strong actions are needed by the government to address the significant risks to development that the country faces from increased insecurity, narcotics production and corruption.
During his visit Mr. Wheeler met with President Hamid Karzai, cabinet ministers, and senior Afghan officials. He also met with representatives of the private sector, students, and members of the donor community. The discussions focused on private sector development, public administration reform, community empowerment, and aid coordination.
“Returning here after one year, I am again deeply impressed by how far Afghanistan has come in delivering development benefits for its people. More girls are at school than at any time in Afghanistan’s history, child mortality has been reduced substantially, and the government’s national community development program is bringing development to over 18,000 communities through every province in the country. I am concerned, however, that increased insecurity, drug production, and corruption are putting at risk further advances in state-building and other areas critical for growth and employment generation” said Mr. Wheeler.
He went on to say that “over the past year there was a 24 percent increase in security incidents, production of opium increased by 34 percent, and Afghanistan’s ranking on the Transparency International’s corruption perception index slipped to 172 out of 180 countries.”
Mr. Wheeler urged the government to take strong measures to confront these challenges, including improving Afghanistan’s business environment and reforming public administration to reduce red tape and streamline processes within Ministries.
Building a secure, prosperous Afghanistan is a challenge of great complexity and depth. Tackling the challenges of widespread poverty, rebuilding institutions destroyed by two decades of war, and overcoming problems of security, narcotics, and corruption will require intensified efforts by Afghanistan and its partners for many years.
The Government of Afghanistan is already making important inroads. It has strengthened the budget process and improved public financial management and procurement. International firms have been
engaged to help the government ensure transparency and accountability. At the local level, communities are overseeing spending on schools and village infrastructure. These are necessary steps to overcome corruption and ensure the effective delivery of public services. An assessment of Afghanistan’s public financial management system based on international standards has been positive. Accordingly, donors including the World Bank have increased their support channeled through Afghanistan’s national budget.
Mr. Wheeler expressed the readiness of the World Bank Group to support efforts led by the government to overcome the challenges it faces. “We will stand behind government led efforts to protect the very real gains the country has made, to eliminate impediments holding back private investment, to improve governance, and to strengthen public administration. All of these are critical for the country’s economic development and poverty reduction” said Mr. Wheeler.