Statement at the Ministerial Conference on Reconstruction Assistance to Afghanistan
by
Tadao Chino
President
Asian Development Bank
21 January 2002
Tokyo, Japan
Excellencies, Distinguished Co-Chairs and Delegates,
It gives me great pleasure to present the Preliminary Needs Assessment for Afghanistan's Recovery and Reconstruction. This Needs Assessment was a collaborative undertaking by the United Nations Development Programme, World Bank, and ADB and was finalized last week in Manila after two months of intense work and numerous consultations.
As you know, the coordinated effort that went into this preliminary exercise will be followed by a more detailed needs assessment. Sector teams will visit Kabul and other areas of Afghanistan to conduct site visits and participate in more detailed consultations with the Interim Administration, Afghan civil society and NGOs, international assistance agencies, and other stakeholders.
ADB is honored to play a crucial role in this important undertaking. Afghanistan is one of the founding members of ADB and we are glad that the day draws near when ADB can once again work with Afghan people for the country's development. Many of ADB's developing member countries have experienced similar hardships in their efforts at rehabilitating and reconstructing their own countries. We have much to share with the Afghan people. It is our responsibility to help the Afghan people to realize their full potential.
The Preliminary Needs Assessment outlines a development approach that will serve to guide investments in the rehabilitation and reconstruction of Afghanistan. I would like to highlight the four components of this approach, since they provide important parameters for our future initiatives and activities.
First, the reconstruction process should be led by Afghan men and women in all stages, from planning to implementation. This approach is essential to ensure the necessary ownership of and commitment to the rehabilitation process. In particular, women have long suffered from social exclusion in Afghanistan and now must be involved in every stage. As we have found in other post-conflict countries, women will undoubtedly make many valuable contributions to the reconstruction efforts, and sustainable social development.
Second, appropriate policy and institutional frameworks must be in place to support investments in rehabilitation and reconstruction. In particular, effective reconstruction is impossible without good governance. Transparency, participation, accountability and the rule of law provide the basis for good governance. In many respects, we are at the beginning of the long road to developing the policies and institutions from the national level to local towns and communities.
Third, substantial institutional support is needed for local communities and emerging government institutions to ensure their effectiveness and sustainability. This type of support will involve substantial training and capacity building, and is an area where we will need to draw upon the experience and expertise of bilateral agencies as well as NGOs and community-based organizations. Developing adequate institutional capacity will be a long-term process, but it is also a process that needs to begin immediately.
Fourth, it is essential that investments in rehabilitation and reconstruction promote human entitlements and social inclusion. In the context of Afghanistan, it is particularly important to emphasize support for and the protection of vulnerable groups. Afghanistan is faced with the complex challenge of responding to the basic needs of women and children, returning refugees, internally displaced people, and the disabled. Beyond the provision of basic needs, it is essential that vulnerable groups in Afghan society be provided with means and opportunities to help themselves. Hence, the promotion of employment and sustainable livelihoods ranks high among the development priorities for Afghanistan.
Given this development approach for Afghanistan, I will now focus on ADB's sectoral priorities and how immediate investments in these sectors will contribute to Afghanistan's recovery and development. ADB's past involvement in Afghanistan focused on projects in agriculture, irrigation, transport, and energy. As many of you know, ADB's overarching objective is poverty reduction. Our assistance to Afghanistan, as well as to all of our developing member countries, will be aimed therefore first and foremost at reducing the incidence of poverty.
With more than 80 percent of Afghanistan's population dependent on agriculture for their livelihood, agriculture and rural development will be a priority sector for rehabilitation. Agriculture is the largest source of economic output in Afghanistan, but has been depressed by more than two decades of war and three consecutive years of drought. To rehabilitate agriculture, demining must be accelerated to provide security to the farmers and reliance on poppy cultivation must be eliminated. In the coming season, it will be essential to focus on the recovery of traditional food crops, coupled with the provision of targeted employment programs for returning refugees. To contribute to these objectives, our first priority will be to focus on the rehabilitation of irrigation systems.
Infrastructure is another priority sector for rehabilitation. The devastation of infrastructure after more than two decades of conflict creates a serious constraint to the future development of Afghanistan. Our first priority in infrastructure would be the rehabilitation of the road system, critical for a landlocked country. Roads are needed to achieve humanitarian assistance objectives in the near term as well as to rebuild the economy by linking rural areas to markets. Road rehabilitation will be undertaken using labor intensive approaches to generate maximum employment opportunities for local communities.
The restoration of the education and health sectors is also essential to reintegrate the disadvantaged groups and to create the capacity needed to support recovery and reconstruction. Our first priority in the social sector will be the rehabilitation of the education system, which is now in a state of virtual collapse. ADB's immediate focus will be on the rebuilding of basic education including non-formal education.
Funding requirements to support the recovery and reconstruction of Afghanistan are significant. ADB is fully committed to doing all it can to secure necessary resources. Based on our preliminary assessment, ADB is considering assistance in the order of $500 million over 2.5 years. Such assistance will be provided in the form of highly concessional loans from the Asian Development Fund, as well as grant assistance. Specific arrangements will need to be determined in close consultation with ADB's shareholders.
In closing, I wish to thank the Steering Group for having entrusted us with the task of identifying Afghanistan's reconstruction needs and priorities. This task would not have been possible without the contributions from the Afghan Interim Administration and the cooperation of Afghan NGOs. I welcome the excellent cooperation among the UNDP, World Bank, and ADB on preparation of the preliminary needs assessment together with our Afghan counterparts and other development partners. I am sure such cooperation will be further enhanced in undertaking the comprehensive needs assessment and as we initiate assistance projects and programs in Afghanistan.
Thank you.
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