Despite the efforts to develop subnational systems, very little progress has been registered in a highly centralized environment and weak capacity. The current conflict situation has significantly affected decentralization reforms.

The Bank’s Interim Strategy emphasizes two broad, overlapping objectives of developing the capacity of the State and delivering results that support state-building in Afghanistan. Developing the capacity of the State includes specific attention to developing both human (education, civil service, etc) and financial (public finance management, revenue generation, etc) capacity. Providing tangible benefits to the population will continue to require a two-pronged approach that institutionalizes processes to contract out service delivery and also builds state capacity to deliver (as appropriate), a fundamental component of longer term sustainability.

Analytical Studies on Afghanistan