68572
                       AFGHANISTAN: INTERIM STRATEGY NOTE

                                    CHAIR’S SUMMING UP

                                Meeting of the Executive Directors

                                           April 26, 2012



        The Executive Directors discussed the FY12-14 Joint Bank/IFC Interim Strategy Note (ISN)
for Afghanistan and agreed that its three pillars – building legitimacy and capacity of institutions,
equitable service delivery and inclusive growth and jobs – seemed appropriate (IDA/R2012-0075
[IFC/R2012-0074]). They took note of the selectivity and flexibility of the program developed with
the Government of Afghanistan, and appreciated the important efforts of Bank staff in a difficult
environment. Directors welcomed the progress made in Afghanistan, particularly in education,
health, rural development, mining, ICT and public financial management, while also noting the
importance of protecting these gains during this upcoming transition period. The Bank's analytical
work was also recognized as a critical complement to financing.
         Executive Directors appreciated that the ISN incorporates lessons from the WDR on
Conflict, Security and Development, particularly building strong governance and legitimate
institutions, maintaining continuity of support for basic services, and stimulating growth and jobs.
Directors also noted the positive role of the Afghanistan Reconstruction Trust Fund as a mechanism
to enhance aid effectiveness and donor collaboration, in addition to its critical role in financing
national programs and promoting reform. In this light, the importance of remaining on track with
the IMF’s program and channeling assistance through budgetary mechanisms, in line with progress
in public financial management, was highlighted.
        Given the uncertainty related to the upcoming transition period, Directors urged the Bank to
ensure that financial and staff resources are in place to support the Government in its efforts to
address corruption, strengthen institutional capacity, particularly at the sub-national level, and
protect and enhance the gains of women and girls. The importance of monitoring progress in these
areas was also highlighted. In terms of expanding sources of growth, regional linkages in the areas
of power, water, and trade were emphasized, as were sustainable developments in the areas of
agriculture, infrastructure, and natural resources.
        Directors recognized the efforts of the IFC and MIGA in a difficult environment, while
encouraging both institutions to look for ways to deepen their involvement in Afghanistan. In
noting this very uncertain environment, Directors also recognized that the depth and breadth of the
Bank Group’s overall program may need to be adjusted in light of unfolding events. Finally,
noting the substantial risks associated with the security situation, Directors looked forward to being
kept informed on the status of the program, given the number of important milestones in
Afghanistan’s transition expected over the course of the upcoming year.



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This summary is not an approved record.