Money and conditions

The International Conference on Afghanistan has come to an end in Brussels, Belgium after two days with a busy working agenda. Just like the previous conference, the “stick and carrot” policy was commonly applied by most of the partners of Afghanistan, which required Kabul to push ahead with reforms, restart the peace process, and make more efforts to tackle corruption in order to receive aid for national reconstruction.

Afghan policemen keep watch in the downtown of Kunduz city, Afghanistan October 3, 2016. (Photo: Reuters)
Afghan policemen keep watch in the downtown of Kunduz city, Afghanistan October 3, 2016. (Photo: Reuters)

The Conference was co-chaired by the EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Federica Mogherini and the Commissioner for International Co-operation and Development, Neven Mimica, on behalf of the European Union, and, on behalf of the Islamic Republic of Afghanistan, by the Minister of Foreign Affairs, Salahuddin Rabbani, and the Minister of Finance, Eklil Ahmad Hakimi. The Conference was held under the patronage of the President of the European Council, Donald Tusk, and the President of the Islamic Republic of Afghanistan, Ashraf Ghani.

The event attracted the participation of representatives from over 100 countries and international organisations, including decisive donors and partners of Afghanistan such as the US, Japan, Germany, China, Russia, India, Pakistan, Iran, the International Monetary Fund (IMF) and the World Bank (WB), among others.

The Conference adopted a Joint Statement renewing the Partnership for Peace and Development, which reflects the breadth of the international community’s engagement in Afghanistan over the next four years. This includes both political and financial support, which will amount to EUR13.6 billion (about US$15.2 billion) for the period 2017-2020, and will be accompanied by continued and accountable reforms on the ground.

The European Union and its Member States are together the largest donors, expecting to provide up to EUR5 billion, including all funding sources, of this overall figure. This represents a continuation of the European Union's high level of commitment to Afghanistan. The amount pledged is only slightly less than the US$4billion a year that the international community promised at the last Afghanistan conference in Tokyo in 2012.

This year’s conference took place in the context of the wave of violence caused by the Taliban and other rebel and extremist groups, including the so-called Islamic State (IS). Over the past 15 years, since a U.S.-led coalition ousted the Taliban, though the international community has pumped about a US$500 billion aid into the country as an effort to improve the situation, the results achieved have been minimal.

Despite all the money that’s been poured in, it remains one of the poorest countries on earth, with 80% of its budget financed by aid. Still approximately 39% of the Afghan population lives on less than $1.35 a day, two thirds of the population is illiterate, 39% of the population is unemployed, while corruption still remains rife. Due to the escalating violence and instability, about 1.2 million people are living like refugees in their own country and three million people have fled to other countries.

The economy is also experiencing dark days. According to the IMF, the rate of economic growth of this country was declining sharply, from an average of 10% during the 2002-2012 period, to 1.3% in 2014, and only 1.5% in 2015.

Afghan President Ashraf Ghani acknowledged that no money would be forthcoming if the government does not crackdown on corruption and crime, and take the upper-hand against the insurgents. Specifically, Germany, one of the main donors to Afghanistan, will provide EUR1.7 billion (US$1.9 billion) in help for Afghanistan over the next four years, but Kabul must do more to combat corruption, protect human rights and work for democratic and economic progress.

Prior to the conference, the EU threatened to reduce aid that provides 40% of Afghanistan’s GDP unless the ‘difficult’ Kabul government agrees to the mass removal of tens of thousands of failed asylum migrants. There is also clear pressure on the authorities in Kabul to do more to stop people fleeing and take back those who leave.

According to the head of the International Organisation for Migration, William Lacy Swing, around 6,000 people are flooding back into Afghanistan from Pakistan and Iran every day, and that any increased returns from Europe would put additional pressure on the country's fragile institutions.

Pledged efforts to help restart the peace process were stalled for nearly 40 years in Afghanistan. In addition to improving the economic autonomy for the country, the Brussels Conference on Afghanistan emphasised the need for Afghanistan to strengthen regional cooperation and connections, which is considered a key factor to help the country achieve sustainable economic growth and stability. A peaceful Afghanistan will contribute to defusing the immigration crisis in Europe, eliminating shelters for hostile groups against the West, bolstering the fight against drugs, and bringing security and stability to the region.