Monday, September 13, 2010

Foreign aid in Afghanistan

This article details foreign aid to Afghanistan over 2001-2009.

Donors spent US$36 billion in Afghanistan in 2001-2009 out of a total of $62 billion pledged in grants and loans, according to the DFR.

Among the dozens of donors, Sweden came out top in terms of covering the gap between commitment and action - translating 90 percent of its pledges into concrete funding, followed by the UK and the USA, while the Asian Development Bank ranked last at 60 percent.

The USA has been the single largest donor to Afghanistan over the past eight years, disbursing US$23.417 billion.

Over the past five years per capita donor aid has been $1,241 - far less than the amount spent in Iraq and Bosnia, according to the DFR, despite Afghanistan having some of the worst poverty and vulnerability indicators in the world.

Half of this is spent by foreign militaries:
President Hamid Karzai’s government has been pilloried over allegations of endemic corruption, ineptitude and the mismanagement of aid, but it disbursed only 23 percent of foreign grants (about $8 billion).

Over $29 billion (77 percent of the total disbursed aid) was directly spent by donors with little or no government input; more than $15 of the $29 billion was disbursed directly by foreign military channels, according to the DFR.

This includes the Commanders Emergency Response Programme - where senior officers in the field have access to cash for tactical spending - and the Provincial Reconstruction Funds, which "aims to win ‘hearts and minds’,” said Oxfam’s Jackson.

So over half of the aid is spent on security:
Over half of the total disbursed assistance in 2002-2009 (about $19 billion) was spent on the security sector, particularly on strengthening the police and army, the DFR figures show.

Health received 6 percent, education and culture 9 percent and agriculture and rural development got 18 percent of the total $36 billion aid.

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