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World Bank support Afghans with development challenges

World Bank committed to support Afghans with development challenges
     


World Bank President sees success in power of community leadership

Kabul,  24  July  2008 ─ The World Bank is committed to supporting Afghanistan’s
efforts  to  overcome  poverty,  promote  economic  and  social development, and
strengthen  governance  and anti-corruption measures amid a challenging security
situation, World Bank Group President Robert B. Zoellick said here today.

Concluding  a  three-day visit to Afghanistan Mr. Zoellick not only met with the
country’s  leadership  but also village leaders whose development efforts in the
poorest  rural  areas  are  demonstrating  the  power  of  local  governance and
community entrepreneurship.

“Creating  a  better  tomorrow  for  the  Afghan  people will take a real coming
together to address the challenges of building institutions, fighting corruption
and  improving  service  delivery  to  citizens,”  said Mr. Zoellick. “We in the
international  community  can help, but Afghan leadership is critical to getting
ahead of these fundamental issues holding development back.”

Mr.  Zoellick  noted  that much had been achieved in Afghanistan in a relatively
short  time and there was much to be learned from these successes.  On Wednesday
he  visited  rural  projects  in  Bamiyan,  one  of the poorest provinces in the
country.  He met villagers who had used their funds for a micro-hydro project to
generate  electricity,  others  who  decided  to  pool  their funding to build a
school.

“What  I  heard  from  rural people was really an extraordinary demonstration of
community governance in action,” said Mr. Zoellick. “Communities, men and women,
have  come  together  in  collective  ?  and  effective  ? decisions about their
development.  They  are  a  real  lesson to the big governance challenges facing
Afghanistan today, and a real hope.”

Microfinance  borrowers  told the World Bank Group president how they used their
credit to create businesses. Among them was a woman who opened a tailor shop and
employed  five  other  women; another had started a mobile-phone business. “This
shows  the  people  of  Afghanistan  are entrepreneurial and can achieve amazing
things,”  Mr. Zoellick said. Access to microfinance services has reached 450,000
Afghans since its inception in 2003.

Mr.  Zoellick  said  he  appreciated  the  government’s  recent  drafting  of an
anti-corruption  law, which envisages an anti-corruption body reporting directly
to  the president, a special prosecutor and a special court. He said there was a
“strong  need  for  concrete  action  against  corruption  and for ensuring that
reforms reach all areas of the public sector, otherwise government’s credibility
and  legitimacy  might  be  at  risk.”  Afghanistan  has  slipped  sharply  in
Transparency  International’s  corruption  index  from  117 out of 159 countries
surveyed in 2005, to 172 out of 180 countries in 2007.

Mr.  Zoellick  also  announced support to Afghanistan from the Bank’s new Global
Food  Crisis  Response  Program,  which  will  give  US$8  million  for  the
rehabilitation  of  around 500 small, traditional irrigation schemes critical to
the recovery of the country’s agriculture.

The  additional funding for community irrigation would bring to nearly 6,000 the
number of small irrigation schemes supported by the Bank since 2002. In addition
the  Bank  has  also  funded  nearly  US$100  million  for the rehabilitation of
medium-size  irrigation  systems.  But  Afghanistan  will still need significant
support  in  the  current  food crisis. Mr. Zoellick said the Bank’s support was
aimed  at the medium-term investments needed to increase food security over time
but  that  the  institution  was  working  closely  with  Afghanistan’s  other
development partners and relief agencies to address immediate shortfalls.

In  Kabul,  Mr.  Zoellick  met  President  Hamid  Karzai,  cabinet  ministers,
representatives of the donor community and private sector.  The World Bank Group
president  reaffirmed  his institution’s long-term commitment to Afghanistan and
support  for  its  new five-year plan to reduce poverty and promote economic and
social development, as discussed at the donor conference on the country’s future
in Paris last month.

Since  the resumption of operations in Afghanistan in April 2002, the World Bank
Group  has  financed  41  projects,  committing  around US$1.69 billion of which
US$1.25  billion  is  grant and US$436.4 credit (interest-free loan).  The World
Bank    funded  projects  mostly  support  rural  livelihoods,  rebuilding
infrastructure, education and basic health services. The World Bank also manages
the  US$2.5  billion Afghanistan Reconstruction Trust Fund. Since 2002, the IFC,
the  World Bank Group’s private sector arm, has provided US$50 million of equity
financing  while  its  Multilateral  Investment  Guarantee Agency has guaranteed
US$80 million of investment.