Wastage and leakages of aid in Afghanistan

Excerpts from this blog-post:

Since the ousting of the Taliban regime in late 2001, donors have spent some US$13 billion on various rebuilding and development activities in the country, of which only 12 percent has been channelled through the government, the country’s Finance Ministry said.

Speaking in the wake of Afghanistan’s Development Forum (ADF) held on 29-30 April in Kabul aimed at assessing development outcomes and the country’s future needs, Finance Minister Anwar-ul-Haq Ahady said: “We are accountable for only US$3.7 billion of the US$12.8 billion of aid money that has been spent in the country in the last five years: the rest has been spent by donors themselves,” said Ahady.

Foreign aid bypassing government systems

Some Afghan legislators have criticized the way aid money has been distributed through a cascade of foreign subcontractors which, they say, siphons off international funding to one of the world’s least developed countries.

Mustafa Kazimi, chairman of the economy committee of the Afghan parliament’s lower house, said: “Out of every US dollar spent by donors on Afghanistan ’s reconstruction 80 cents finds its way out of the country”.

“We have about 60 donors,” said Ishaq Nadiri, senior economic adviser to Afghan President Hamid Karzai. “There is a need for the international aid money to be rationalised and made more meaningful to the citizens of Afghanistan”.

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