Major donors failing Afghanistan due to $10bn aid shortfall

CIDA comes out looking good in a scathing new report on aid effectiveness in Afghanistan published by ACBAR, an alliance of national and international aid agencies working in that country. The report shows Western countries have delivered only US$15 billion of the US$25 billion in aid they promised since 2001.

• theUSonly delivered half of its US$10.4 billion commitment
• the EC andGermanyless than two-thirds of their pledges of US$1.7 billion and US$1.2 billion respectively, and
• the World Bank delivered just over half of its $1.6 billion commitment.

Canadacommitted $800 million and has delivered all but $50 million of it. TheUKpledged US$1.45 billion and distributed US$1.3 billion.

Canadaalso avoided the report's criticism of the high cost of aid delivered through private contractors and consultants, since most ofCanada's aid is delivered through multilateral institutions, NGOs or directly to the Afghan national government.

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The report estimates that corporate profits and expatriate consultant salaries eat up 40% of all aid monies. For example, a road between the centre ofKabuland the international airport built withUSaid cost over US$2.3 million per kilometer, at least four times the average cost of building a road inAfghanistan.

The report's author Matt Waldman, of the international aid agency Oxfam, said: 'The reconstruction ofAfghanistanrequires a sustained and substantial commitment of aid - but too much aof what is given is wasted, ineffective or uncoordinated.

The report also shows that spending on tackling poverty is a fraction of what is spent on military operations, and a disproportionate amount of aid is being used for military and political objectives -- following the troops -- rather than reducing poverty.

Waldman said: 'While theUSmilitary is currently spending US$100 million a day inAfghanistan, our research shows the volume of aid spent by all donors since 2001 is less than a tenth of that. Concentrating aid where troops are active is a short-sighted approach. If other provinces are neglected then insecurity could spread.

Thereport recommends:

• Genuine transparency by donors, including Canada, about what they are doing.
• Establishment of anindependent commission on aid effectiveness to measure how well each donor performs.
• Proper coordination of donors with the Afghan government and among themselves.

The report also recommends focusing aidon responding to needs identified by Afghans, building Afghan skills and capabilities, and benefiting more people in rural areas where the majority of Afghans live.

Notes to editors:

1. ACBAR the Agency Coordinating Body for Afghan Relief - consists of 94 agencies, including Oxfam International.
2. Most full-time expatriate consultants working for private companies inAfghanistancost $250,000 to $500,000 a year, including salary, allowances and associated costs.

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Media Contact: Lina Holguin: 819-923-0041