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Speech by
Liqun Jin
Vice President - Operations 1
Asian Development Bank

Paris, 12 June 2008

Excellencies, Distinguished Co-Chairs and Delegates –

At gatherings such as this, among friends and development partners, we are encouraged to be frank, open, and constructive. My comments today should be interpreted in this light.

As outlined in President Karzai’s opening remarks, over the past seven years Afghanistan has made remarkable progress despite a daunting set of development challenges. The Government and people of Afghanistan have established a solid momentum of change and development that deserves the further support of the international community.

The Afghanistan National Development Strategy clearly outlines the scope of Afghanistan’s security, governance, and development needs, as well as a reasonable estimate of the financial resources required to address them. And, indeed, the needs are great – Afghanistan remains the poorest country in the entire Asia and Pacific region.

Given the time, resources and effort devoted to the preparation of the strategy, ADB would have liked to have seen a crispier document. Although it presents a comprehensive catalogue of needs, with some attention to priority and sequencing, the Afghanistan National Development Strategy in some ways is less strategic than either the Interim Afghanistan National Development Strategy or its predecessor document, Securing Afghanistan’s Future. Further, the new strategy frequently refers to private sector-led growth and the need for employment creation. But the specific action plans on how to deliver this strategic vision are yet to be defined.

Mr. Chairmen -

ADB credits the Government for its steadfast pursuit of macro-economic stability. At the same time, progress towards other aspects of the reform program is pending. Privatization of state-owned enterprises has not taken place at the pace envisaged. We do not yet have a solid mechanism to ensure the maintenance of investments in new roads, energy, and irrigation infrastructure. Kabul, other urban centres, and in fact virtually all of Afghanistan remain woefully starved of electrical power. ADB would have preferred to see a clearer strategic approach and resolve to address widespread and institutionalized corruption Regional cooperation should have been seen as an active means to accelerate Afghanistan’s development. We also encourage a more proactive action plan to address the problems of opium poppy production and trafficking.

I also would like to openly address the matter of coordination. Too many recent donor meetings have been empty “talk shops” that have resulted in little frank discussion, no decisions, and no follow-up action. ADB thus welcomes Mr. Kai Ede’s plans to reform the Joint Coordination Management Board, and to move forward on an “integrated approach” that will better, and more holistically, address Afghanistan’s security, governance, economic and social development needs.

Mr. Chairmen –

While expressing some concerns, I am nevertheless pleased to reconfirm our continued support for Afghanistan.ADB’s own strategy is clear and simple: we will build roads, develop power and energy supplies and rehabilitate irrigation facilities. Unlike others, we clustered our assistance through the budget. We have approved over $1 billion in projects. We stand to do another $1.3 billion over the next five years.

Finally, I would urge that we seize upon Afghanistan’s strategic location as the link between Central Asia and South Asia. For more than two millennia, Afghanistan has been an important corridor in Eurasia, linking the different peoples and cultures of Europe, Central Asia, East Asia and South Asia. The development of transport corridors from Central Asia to the warm water ports in the south will enhance trade and development and benefit the economies of Afghanistan and its neighbors. Central Asia to South Asia energy trade presents another potential opportunity for Afghanistan. ADB will continue to provide support for the Central Asia Regional Economic Cooperation Program or CAREC to advance the regional agenda.

Allow me to conclude by emphasizing ADB’s unwavering commitment to support Afghanistan’s further reconstruction and development, and to work in partnership with the Government and other development partners to maximize our joint efforts to provide the people of Afghanistan with a better future.

Thank you.