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FINANCING FOR TRANSITION IN AFGHANISTAN

FINANCING FOR TRANSITION IN AFGHANISTAN. UNDG/ECHA Transition Workshop Marrakech 28 February 2006. No disconnect between national and UN priorities. Presence of integrated UN mission: United Nations Assistance Mission in Afghanistan (UNAMA)

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FINANCING FOR TRANSITION IN AFGHANISTAN

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  1. FINANCING FOR TRANSITION IN AFGHANISTAN UNDG/ECHA Transition Workshop Marrakech 28 February 2006

  2. No disconnect between national and UN priorities • Presence of integrated UN mission: United Nations Assistance Mission in Afghanistan (UNAMA) • UNAMA is mandated to assist national authorities in state building • National priorities = UN priorities

  3. Overview • Between 2002 and March 2005, total aid flow to Afghanistan slightly over US$ 10 billion • Resources mobilised through appeals (ITAP, TAPA, drought appeal) and donor conferences (Tokyo 2002, Berlin 2004) • Out of the overall assistance committed, roughly 10% came to the Treasury through Multi Donor Trust Funds

  4. 4 + 4 Multi Donor Trust Funds • Afghanistan Interim Authority Fund (2002) • Afghanistan Reconstruction Trust Fund (2002 – present) • Law and Order Trust Fund (2002 – present) • Counter Narcotics Trust Fund (2005 – present) • 4 Trust Funds for Joint Government and UN Programmes

  5. Afghan Interim Authority Fund (AIAF) • UNDP-BCPR set up AIAF as sub-fund • Emergency fund for budget support of Interim Authority (January to July 2002): US$ 73 million • Post-Emergency Loya Jirga, new Transitional Administration supported through Afghanistan Reconstruction Trust Fund (ARTF)

  6. Afghanistan Reconstruction Trust Fund (ARTF) • Established in 2002 as mechanism for transfer of donor funds to Afghanistan • Government of Afghanistan not member of ARTF Board, but only recently became observer • World Bank agrees with Government in advance on use of funds

  7. Law and Order Trust Fund for Afghanistan (LOTFA) • Set up in 2002 • Covers payment of police salaries, allowances and benefits; procurement of non-lethal equipment, fuel & maintenance;rehabilitation of facilities; training and institutional development. • De facto mostly used on salaries/allowances/benefits

  8. Counter Narcotics Trust Fund • Set up in late 2005 to support Government’s counter narcotics strategy • Managed by UNDP

  9. Joint Programming Trust Funds • UN programmes do not benefit from ARTF, LOTFA and CNTF funding • Four joint programmes implemented jointly by UN Country Team and Government in support of national priorities • Three multi donor trust funds set up in UNICEF and one in WFP

  10. Some thoughts about Multi Donor Trust Funds • Trust Funds are Government’s second preferred funding method: recent debate about aid effectiveness • Prevailing insecurity: bilateral donors channel their funds through multilateral agencies rather than setting up their own structures in Afghanistan • To be effective, multi donor trust funds require a sufficient level of staffing

  11. For discussion • Is this a viable sequencing model of financing for transition? • Does it allow for money to get quickly to the people who need it? • Is the UN best placed to manage a multi donor trust fund just because it has mechanism to disburse quickly in place?

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