President Karzai's Opening Address at
the Afghanistan Development Forum
Released by Office of the Spokesperson to the President
04/04/2005
Excellencies,
Distinguished guests,
May I extend a warm welcome to the participants
in this year's Afghanistan Development Forum, the third to take
place since the historic Bonn Agreement, and the first to be
hosted by Afghanistan's newly elected Government. I thank the
team of organisers, including the various ministries of our
Government, and their colleagues from international institutions.
Ladies and gentlemen,
For more than two decades, a combination of factional
conflict, interference from abroad, and neglect from the international
community had reduced Afghanistan to a failed State, a haven
for international terrorism, and a centre for poppy cultivation
and drug production. When we began three years ago the task
of rebuilding a country that had suffered more destruction than
any other in the 20th century, we were aware all too well that
the journey was going to be long and arduous. Nonetheless, we
took heart in our people's determination, as well as in the
wholehearted support from the international community.
Over the last three years, in partnership with
the international community, we have made significant progress.
Security, a precondition for our accomplishments in other areas,
has greatly improved. As part of the international coalition
against terrorism, we have fought and diminished terrorist forces
in Afghanistan. The training and development of the Afghan National
Army and the National Police is progressing smoothly. The collection
of heavy weapons is almost complete; about 45,000 former combatants
have been disarmed; and illegal armed militias around the country
are being decommissioned.
Over the last three years, some 3.8 million Afghan
refugees returned home. Two Loya Jirgas were convened; Afghanistan's
new Constitution was adopted; our first Presidential election
was held with a popular turnout of men and women across the
country. As our independent election commission recently announced,
our parliamentary elections will be held in September this year.
Today in Afghanistan, democracy is taking roots; our media is
free and a growing sense of freedom after decades of suppression
is evident.
Afghanistan's economic growth was 29 percent,
16 percent and 8 percent successively over the last three years.
This growth was facilitated, among other things, by fiscal reforms,
including the introduction of a new currency, institutional
reform, and improving the regulatory framework for investment
and private sector growth. The Afghanistan Investment Support
Agency (AISA), created almost two years ago, has proven itself
a valuable asset to prospective investors exploring opportunities
in Afghanistan. Employment has risen, as has the average labour
wage. Our trade, especially with our neighbouring countries,
has grown substantially. For example, the value of trade with
Pakistan, which stood at under 50 million dollars three years
ago, is currently around one billion dollars.
We have improved and expanded the delivery of
health, education and other services to the population. Through
the National Solidarity Programme, the government has reached
7,500 villages, covering over a quarter of our population, including
for the first time very remote areas of the country. Over 6
million children throughout the country received polio vaccinations
last year. A Basic Package of Health Services has been extended
to over half of the country. School enrollment has risen to
the highest in history of Afghanistan. Today, close to six million
children are attending classes at more than 7,000 schools across
the country. Enrolment in higher education institutions also
increased from 4,000 in 2001 to 40,000 today, of which 19 percent
are women.
We have prioritised the rebuilding of infrastructure
and institutions. Roads are being rebuilt throughout Afghanistan.
In addition to the primary roads, consisting of Afghanistan's
national ring-road, and roads connecting us to our neighbouring
countries, over 2,500 km of secondary or provincial roads are
also being rebuilt. The communication sector has made considerable
progress, with Afghanistan being the largest and the fastest
growing market for the mobile phone industry in the region.
Since creating the infrastructure for power generation within
Afghanistan requires more time, we have responded to needs of
our people by importing electricity from our neighbouring countries.
Despite these accomplishments, the challenges
still facing Afghanistan are immense. Human development indicators
for Afghanistan remain among the worst in the world. Poppy cultivation
is threatening Afghanistan's potential to prosper through a
legitimate economy. We have expanded education and health services,
but improving the quality of these services remains a substantial
challenge. The job market in Afghanistan has grown substantially,
but much of the market for skilled and semi-skilled labour has
been filled by labour imported from abroad. The scale of foreign
investment has remained very small, largely hampered by the
absence of infrastructure, such as roads and electricity, and
a lingering legacy of corruption and red-tape.
Ladies and gentlemen,
In my election manifesto, I presented to the Afghan
people my vision of a stable, democratic and prosperous Afghanistan,
and gave a promise that I will lead Afghanistan towards that
vision. I promised that, over the next five years, Afghanistan's
income per capita will rise from today's $200, to at least $500;
that the present level of poverty will be reduced by half, and
that education, health and clean drinking water will be made
available to a much greater number of Afghanistan's citizens.
Today, we are keenly aware of our people's expectations, and
our responsibility towards them.
In pursuing a more aggressive agenda for economic
growth, we must accelerate the process of rebuilding Afghanistan
by focusing primarily on two spheres: First, rebuilding the
infrastructure, and second, developing human and institutional
capacity. Over the next few months, my government will update
and improve its National Development Strategy in collaboration
with our partners in the international community. In the meantime,
in the context of the above two priority spheres, allow me to
outline a number of specific focus areas:
First: In the Sphere of Rebuilding the Infrastructure:
1. We need to expedite and accelerate building
of the physical infrastructure of the country that will provide
the foundation for economic activity. Roads will continue to
be a priority. However, now that our major roads are either
being, or planned to be, rebuilt, our emphasis will shift to
an equally vital field: water and electricity. We need to focus
on energy generation and transmission, as well as irrigation
and management of water to ensure that scarce water resources
are used more productively.
2. In order to strengthen the economic base of
the country, fight poppy cultivation and enhance rural livelihoods,
we will continue to focus on developing rural infrastructure.
Our rural development programmes will continue to grow, and
will be complemented by a national agricultural programme, aimed
at increasing agricultural productivity, and a programme of
providing alternative livelihoods to the poppy affected communities.
To capture the competitive advantage of our agricultural output
and commercialise the agriculture sector, we must speedily lay
the foundation for a strong agribusiness.
3. To enhance Afghanistan's potential as a trade
and transit route in the region, it is vital that we improve
our transport capacity, including the aviation industry, and
our telecommunications facilities.
4. Housing in urban areas of the country is totally
inadequate. We will continue to address this need. The implementation
of our plans will lead to a substantial increase in economic
activity and growth of the overall economy.
5. To ensure that adequate attention and resources
are secured in a timely and efficient manner for priority projects,
we will work with donors to establish a National Programme Support
Office. The NPSO will provide responsible Ministries with the
necessary expertise to follow up on priority projects.
Second: In the Sphere of Human and Institutional
Capacity Building:
1. We need to invest further in the development
of our human capital. Our people are our greatest asset, and
must become able to engage in modern economic activity. We need
to continue to invest heavily in education and health and improve
the quality of these services. At present our institutional
efficiency is hampered by human capacity constraints, which
we must overcome by utilising Afghan expatriates and employing
international expertise when necessary. However, our main focus
should be on training our present and future labour force using
a variety of experiential and university-based education methods.
We also need to develop the managerial skills needed to plan,
organise and execute economic activities.
2. We will intensify our work to reform and strengthen
institutional capacity of the state. We must draw on international
best practice to reshape our public institutions and to meet
the needs of economic development. The creation of the Civil
Service Reform Commission has been an important achievement,
but more work is required to reform the administration, as well
as the judiciary. Combating corruption, nepotism and red-tape
will continue to be our priority. These are the factors that
hinder foreign investment and growth of a vibrant private sector.
We also need to strengthen our administration at the provincial,
district and village levels so that the government works coherently
to serve the needs of our people.
3. We will adopt pro -active policies to diversify
the Afghan economy and strengthen the private sector as the
engine of economic growth. We will continue to improve the regulatory
framework, improving the already existing legislation for promoting
investment security, and substantially simplifying the government
procedures.
4. Generating domestic revenue is crucial. Over
the past couple of years, we have achieved our domestic revenue
generation targets, but we must do more. With increased trade
and continued taxation reform we can ensure that, over time,
we will generate sufficient revenue to meet the operating expenses
of government.
5. And last but not least, we will remain focused
on developing the capabilities of the Afghan National Army and
our police force to ensure that our people live in safety and
peace. We will complete the existing programmes such as Disarmament,
Demobilisation and Reintegration and the expansion of government's
effective presence in the provinces. In the coming six months,
we will concentrate on providing a safe, secure and conducive
environment for parliamentary elections to be held in September.
These priorities do not exhaust the list of what
needs to be done in Afghanistan, but they do represent the best
reasons why Afghanistan needs to continue on the path we have
chosen. Our priorities must also be seen in the context of Afghanistan's
place in the region, and the essential contribution that Afghanistan's
economic development will make to this region. Afghanistan's
unique position as the crossroads of southern and central Asia
can be exploited to trigger better economic relations across
the region. We facilitate trade among our northern, eastern
and western neighbours, acting both as a transit country as
well as a participant in areas where we can develop a competitive
advantage.
Let me also emphasise that our strategy for economic
growth and political stability will continue to be informed
and complemented by the fight against narcotics. The recent
report about the reduction in poppy cultivation following our
pronouncements shows that Afghans have decided to eradicate
the cultivation of poppy, but the Afghan people must be helped
in practical ways. My government and I are committed to a total
eradication of illicit poppy cultivation and drug production
in Afghanistan. However, we all must recognise that the poppy-based
economy represents nearly half of the real economy in this country.
To prevent a new humanitarian crisis, it is imperative that
measures to eradicate poppy production are accompanied by measures
to offer alternative livelihoods and economic opportunities
to farmers and rural communities.
Ladies and gentlemen,
Today's forum is an excellent opportunity for
us in the Government, together with our partners in the international
community who have supported us wholeheartedly over the past
three years, to review our priorities for taking forward the
task of Afghanistan's reconstruction and development. I hope
that this forum will also enable us to move towards addressing
these priorities, by building on our existing accomplishments,
learning our lessons from our successes and failures, and continuing
to work together.
Today, I thank the international community once
more for its support to Afghanistan, and request them to invest
even further in accelerating Afghanistan's reconstruction and
development. The Afghan people and the international community
have collaborated successfully in the past three years to establish
the basis of an open and democratic society. We must now work
together to overcome chronic poverty, and build Afghanistan
into a stable and thriving economy in the region. We must also
definitely ensure that the economic benefits of an open and
democratic society with a market-based economy reach all Afghans.
I also encourage our partners in the international
community to work with us in making the development process
more accountable to the Afghan people, and in making sure that
the hard-earned money paid by tax-payers in their own countries
is not wasted. Together, we need to develop a clear and robust
process for monitoring and follow up of reconstruction programmes
aimed at ensuring effectiveness and minimising wastage. It is
our strategy to enable the private sector to lead Afghanistan's
development. However, the Afghan Government, as the ultimate
body accountable to the Afghan people, must also be better informed
about, and play its due role in steering the development process.
The Government must become the anchor for a more integrated,
transparent and accountable development effort.
Afghanistan's success, ladies and gentlemen, is
owed primarily to two factors: the Afghan people's determination,
and the international community's support. Today, Afghanistan
illustrates how best can international cooperation be utilised
to fight a global challenge, such as terrorism, and help rebuild
a nation once devastated by foreign interference and violence.
If we recall where we were three years ago, our accomplishments
to date are truly significant. Together we have steered Afghanistan
rather successfully through a tortuous journey over the last
three years. Today we celebrate together not the end of our
journey, but a very good beginning.
Thank you.
