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8.a          What is Donor Financial Review (DFR) Report?

The Donor Financial Review (DFR) was a twice yearly exercise conducted to obtain and analyze data on donor assistance into Afghanistan. The subsequent Donor Financial Review Reports werepublished once in 2008 and twice in 2009 by AMD.  These reports were the essential documents of MoF for reporting on donor pledges, commitment, disbursement and aid influx to the country.  Since the majority of the donors’fundsarespent outside the Core Budget the primary focus of the DFR is to capture information about aid delivery through the donor-funded External Budget.

In 2010,the DFR and DFR Report wererenamed Development Cooperation Dialogues (DCD) and the Development Cooperation Report (DCR), respectively. The report was published in English, Dari and Pashtu languages.

8.c          What is the Paris Declaration Evaluation Report?

The Paris Declaration highlights the importance of independent evaluation of the implementation of the Declaration. The overall purpose of the Evaluation of the Paris Declaration on Aid Effectiveness is to provide information about the development impacts and effects of increased aid effectiveness.  

At the global level, the evaluation has been carried out in two phases in order to provide a proper basis for assessment. The first phase focused on the implementation of inputs and outputs associated with the Paris Declaration, while the second phase focused on the intended and unintended development outcomes and results attributed to the aid effectiveness agenda of the Paris Declaration. Both phases of the evaluation complement the Paris Declaration Joint Venture on Monitoring, by deepening understanding of the lessons emerging from the monitoring surveys of the 12 Indicators of Progress identified at the end of the Declaration.

Afghanistan successfully participated in Phase Two of the evaluation held in 2010, taking the lead to provide a country-level study of the evolution of aid effectiveness principles in Afghanistan. The OECD Secretariat will provide a Synthesis Report of all the participating countries in the evaluation, which will greatly contribute into the Fourth High Level Forum, scheduled to be held in Busan, Korea, at the end of 2011.

1.b          What are the National Priority Programs (NPPs)?

National Priority Programs refer to a set of 22 priority programs announced at the Kabul Conference of 2010. While ANDS provides an overall strategy, the NPPs represent a prioritization and further focusing of the ANDS including specific deliverables and costings. In addition, there are over 10 NPPs that existed before and continue to operate, such as the National Solidarity Program. The new NPPs are currently being finalized and will significantly advance the ability of Government to direct resources into areas that will have the greatest national impact. 

The Afghanistan National Development Strategy (ANDS) was developed by the government and endorsed by donors in 2008. The present ANDS is a successor to the Interim-ANDS which was developed for the period 2002 to 2008. The ANDS also serves as the country’s Poverty Reduction Strategy Paper (PRSP) and is a policy for Security, Governance, Economic Growth and Poverty Reduction.

The overriding objective of the ANDS is to substantially reduce poverty, improve the lives of the Afghan people, and create the foundation for a secure and stable country. This requires building a strong, rapidly expanding economy able to generate employment opportunities and increasing incomes essential for poverty reduction. The ANDS establishes the Government’s strategy and defines the policies, programs and projects for the period of five years and the means for effectively implementing, monitoring and evaluating these actions. The goals included in the ANDS are fully consistent with the commitments in previous strategies and agreements and build on the considerable progress that has been achieved since 1380 (2001).

While the focus of the ANDS is on a five year cycle, it will continue to adjust to changing circumstances; it is intended to be a living document and strategy.Please see ANDS website for more information: http://www.ands.gov.af/

9.a             What istheInternational Monetary Fund (IMF) and what is itsrelevance toaid to Afghanistan?          

The IMF was created in July 1945, originally with 45 members, with a goal to stabilize exchange rates and assist the reconstruction of the world's international payment system. Countries contributed to a pool which could be borrowed from, on a temporary basis, by countries with payment imbalances. The IMF helped the world stabilize the economic system. The IMF works to improve the economies of its member countries and describes itself as "an organization of 187 countries (as of July 2010), working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty".  It also offers highly leveragedloans, mainly to poorer countries. Its headquarters are in Washington, D.C.United States. The IMF is relevant to Afghanistan because having agreements and an IMF program will give confidence to donors about the government’s fiscal and monetary policies. Currently some donor funding is being withheld due to the lack of a program. Reforms requested by IMF help to improve government performance through providing time-bound benchmarks by which the government must implement reforms. This in turn leads to greater accountability of the government to its citizens.