Reconstruction Assistance in Afghanistan: Goals, Priorities, and Issues for Congress

Publication Date: February 2003

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Economics

Type:

Coverage: Afghanistan

Abstract:

Afghanistan has taken the first step toward reconstruction. According to many observers, the most serious challenge facing Afghans and Afghanistan today remains the lack of security. Most experts agree on the need for substantial, long-term reconstruction with international support, but questions are raised about the funds required, the priorities, and the coordination necessary for this process. This report examines U.S. foreign aid to Afghanistan in the context of the international effort and explores the major issues for Congress.

As a result of decades of violent conflict, Afghanistan is in great need of substantial reconstruction, from roads and schools to a broad range of development projects encompassing the whole country. Decades of civil war and proxy regional wars have created four intertwining and competing economies in Afghanistan revolving around war, drugs, agriculture, and humanitarian aid that drive conflicting incentives for Afghans and their neighbors. Effective reconstruction assistance could reconfigure these economies and provide incentives for viable economic growth.

The international recovery and reconstruction effort in Afghanistan is immense and complicated, with the Afghan government, numerous U.N. agencies, bilateral donors, many international organizations, and countless non-governmental organizations (NGOs) working to help Afghanistan. The international community and the Afghan government have sought to establish coordinating institutions and a common set of goals in order to utilize donor funds most effectively. Officially, international assistance is coordinated through the United Nations Assistance Mission in Afghanistan (UNAMA), though there are other coordinating institutions tied to the Afghan government.

Donor countries have committed $1.7 billion and, from that, disbursed $1.5 billion. Key areas of concern include whether the funding levels to Afghanistan are adequate and how much is being used for reconstruction. Some have argued that the majority of FY2002 funds --as much as 70% -- went towards humanitarian aid.

The next major donor conference for Afghanistan will take place in March 2003. Some of the major reconstruction programs are government capacity building, women's programs, employment generation, road construction, agricultural rehabilitation, urban reconstruction, energy, education, health, communications, and media. There is concern about creating enough momentum behind reconstruction initiatives in the short term and sustaining international focus on Afghanistan in the long term, particularly in light of a possible war in Iraq. This report will be updated as events warrant.