Reforming Aid Practices: Reinforcing the State Building Process in Afghanistan

Abstract

Afghanistan requires aid for the foreseeable future. The total estimated public expenditure, including security, for the next five years (2017-2021) is US $60 billion. But on average there is 74 % financing gap annually. The Afghan government expects to fill this gap through foreign aid. Afghanistan thus urgently needs to use aid more effectively to put the country on a path to self-reliance by strengthening the state capacity and economy. This requires the reforms of aid practices, improvement in the quality of governance, and investment in programs with long time horizons. Show more