Revitalizing Afghanistan’s Ministry of Finance

Revitalizing Afghanistan’s Ministry of Finance

Wednesday, March 24, 2021

By: William Byrd, Ph.D.

Revitalizing Afghanistan’s badly damaged Ministry of Finance is critical for the state’s survival today and will be equally important during a peace process or under any interim or power-sharing arrangement. Without curbs on political interference and corruption at the ministry, Afghanistan will be hard pressed to ensure that aid pledges made at November’s Geneva international conference materialize.

Type: Analysis

EnvironmentDemocracy & GovernanceEconomics

Afghanistan Aid Conference Yields Mixed Results

Afghanistan Aid Conference Yields Mixed Results

Wednesday, December 2, 2020

By: William Byrd, Ph.D.

The quadrennial international donor conference for Afghanistan, held virtually late last month from Geneva, was largely shaped by the pitfalls and roadblocks forecast months ago when the event was publicly announced. Delays in the peace process, worsening violence, and unveiling of plans for further U.S. troop reductions left the meeting’s potential unmet. Yet amid the unsatisfying results, some hopeful rays broke through. In particular, the size and duration of aid pledges provided at least something to build on.

Type: Analysis

EnvironmentPeace ProcessesEconomics

Afghanistan Donor Conference 2020: Pitfalls and Possibilities

Afghanistan Donor Conference 2020: Pitfalls and Possibilities

Wednesday, October 7, 2020

By: William Byrd, Ph.D.

When Afghan officials and international donors meet next month to consider future aid commitments to Afghanistan, they will face a changed situation from their last gathering four years ago. Then, the focus was on tying financial assistance to government reform in the midst of ongoing war with the Taliban; peace was barely on the agenda. Now, peace talks between the Taliban and the government have begun, and a new Afghan administration is still taking shape with an agreement that resolved the disputed 2019 presidential election. Meanwhile, fighting and casualties remain at unsustainable levels and the country is reckoning with the COVID-19 pandemic and its consequences.

Type: Analysis

EnvironmentDemocracy & GovernanceEconomics

Dismembering Afghanistan’s Ministry of Finance

Dismembering Afghanistan’s Ministry of Finance

Tuesday, March 31, 2020

By: William Byrd, Ph.D.

In Afghanistan, where corruption and ineffective government have hampered efforts to build a functioning state, the Ministry of Finance has been a standout performer. Competently run since as early as 2002, the ministry collects substantial revenue, manages aid inflows, pays public employees, funds key public services and has won the confidence of donors. Now, all that is threatened. The Afghan government is eviscerating the ministry—carving out key constituent parts, putting them directly under the presidential palace, and gravely weakening one of the country’s most effective institutions. It’s a move that’s bad for Afghanistan’s governance and financial viability. It will harm the country’s development and jeopardizes the sustainability of peace if an agreement is reached with the Taliban.

Type: Analysis

EnvironmentEconomics

An Essential for Afghan Peace: Funding the Government

An Essential for Afghan Peace: Funding the Government

Monday, March 2, 2020

By: William Byrd, Ph.D.

A critical ingredient for the current efforts to bring stability and peace in Afghanistan is the Afghan state’s ability to pay for more of its own operations. Despite optimistic new reports from the Afghan government, its actual revenues stagnated last year. With international donors still funding around half of Afghan government expenses, urgent improvements are needed in the way the government collects and measures its revenues. These changes are vital to persuade donors to sustain funding when their current assistance pledges expire in just 10 months—and to help strengthen the government in prospective negotiations with the Taliban.

Type: Analysis

EnvironmentEconomics

A Rift Over Afghan Aid Imperils Prospects for Peace

A Rift Over Afghan Aid Imperils Prospects for Peace

Monday, September 16, 2019

By: William Byrd, Ph.D.

As the United States has pursued peace talks with the Taliban, international discussions continue on the economic aid that will be vital to stabilizing Afghanistan under any peace deal. Yet the Afghan government has been mostly absent from this dialogue, an exclusion exemplified this week by a meeting of the country’s main donors to strategize on aid—with Afghan officials left out. The government’s marginalization, in large part self-inflicted, is a danger to the stabilization and development of Afghanistan. In the interests of Afghans, stability in the region and U.S. hopes for a sustainable peace, this rift in the dialogue on aid needs to be repaired.

Type: Analysis

EnvironmentEconomics

Afghan Government Revenue, Critical for Peace, Grows in 2019

Afghan Government Revenue, Critical for Peace, Grows in 2019

Thursday, August 15, 2019

By: William Byrd, Ph.D.;  M. Khalid Payenda

An Afghanistan peace deal, currently under discussion between the Taliban and U.S., will depend in the long term on more than political and military agreements. A sustained peace will also require that the Afghan government can generate growing revenue to help pay its soldiers, deliver services and reduce its dependence on...

Type: Analysis

EnvironmentEconomics

Afghanistan Cannot Afford Another Government Breakdown

Afghanistan Cannot Afford Another Government Breakdown

Wednesday, May 8, 2019

By: William Byrd, Ph.D.

Afghanistan is on uncertain terrain this year. Along with scheduled presidential and other elections and a nascent peace process, the possibility of withdrawal of international troops, worsening security, and an economic downturn loom heavily over the country. In this critical moment, government failure would make peace and political stability even harder to achieve let alone sustain. How can basic government functioning be maintained during this challenging period?

Type: Analysis

Democracy & GovernanceEnvironmentEconomics

Can Afghanistan Reap a Peace Dividend if Taliban Talks Succeed?

Can Afghanistan Reap a Peace Dividend if Taliban Talks Succeed?

Thursday, March 28, 2019

By: William Byrd, Ph.D.

In recent months there has been a flurry of movement in the Afghan peace process, leading to talk of a “peace dividend” that would boost the country’s economy and incentivize and sustain peace. For example, the November 2018 Geneva international conference on Afghanistan called for donors and development and regional partners to develop a post-settlement economic action plan. But what would a peace dividend look like in war-torn Afghanistan? In the short run, could it help incentivize the insurgency and state actors to agree and adhere to a peace agreement? And in the longer term, could it help sustain peace and lead to a more prosperous and stable Afghanistan?

Type: Analysis

EnvironmentPeace ProcessesEconomics

Can Technology Help Afghanistan Avoid the Resource Curse?

Can Technology Help Afghanistan Avoid the Resource Curse?

Wednesday, February 13, 2019

By: William Byrd, Ph.D.;  Richard Brittan

Afghanistan’s mineral wealth, roughly estimated at upwards of $1 trillion, is sometimes seen as the country’s potential savior—with prospects to generate large government revenues, exports, and some jobs. On the other hand, international and Afghan experience amply demonstrates the downside risks associated with mineral exploitation—macroeconomic and fiscal distortions; waste, corruption, and poor governance; environmental degradation; and the risk of financing or fomenting violent conflict, thereby undermining peacebuilding. The so-called “resource curse” is not destiny, however, and some countries have managed to avoid it, though Afghanistan faces much greater challenges than most when it comes to beneficially developing its mining sector.

Type: Analysis

EnvironmentEconomics