National Five-Year Economic Development Plan for Afghanistan

National Five-Year Economic Development Plan 2018/19 – 2022/23

Table of Contents

1.0  Macroeconomy and Poverty Development Central Themes

1.1 Access to Education, Illiteracy, and Gender Equality

1.2 Foreign Aid and Partnerships for Development

1.3 Strategic Public Investments: Protecting Rights of the Poor

2.0 Economic Development Strategies

2.1 Eliminating the Criminalized Economy

2.2 Anti-Corruption Strategies

 2.2.1 Public Sector Management

2.2.2 Public Accountability Systems

3.0 Priority Sectors of Economic Development: Growth, Employment and Investment Strategies

3.1 Infrastructure and Natural Resources

3.1.1 National Roads and Road Transport, Trade and Transit

3.1.2 Infrastructure Development Strategies: Water

3.1.3 Infrastructure Development Strategies: Power

3.1.4 Natural Resources and Mining

3.2.1 Agriculture and Rural Enterprise Development

3.3 Economic Governance and Private Sector Development

3.3.1 Growth and Employment Through Business Freedom and Public Finance Management

3.3.3 Strengthening Investment Climate

3.3.4 Sources of Growth and Employment Creation: State-Owned Enterprises

3.4 Strategic Public Investments

3.4.1 Institutional and Human Capacity Development

1.0  Macroeconomy and Poverty Development: Central Themes

1.1 Access to Education, Illiteracy, and Gender Equality

Among Afghans aged 15-24 years, the most educated cohort of the population, 58.2% are literate and only 37.8% of women are literate.^[1] The Government aims to increase the literacy of both men and women to 70% in all provinces by 2022 focusing on closing the educational disparity between males and females by relieving the pressure on girls to only be taught by female teachers, and training and allowing more women to teach. Political commitment and leadership is vital to concretely improve the rights of women and to curb violence against women.^[2] In order to secure long-term viability, the University Support and Workforce Development Programme in partnership with three U.S. universities and Afghan universities and businesses will develop seven new undergraduate degrees.^[3] These programs will produce university graduates who are trained to gain entry into the private sector upon graduation within the country.

1.2 Foreign Aid and Partnerships for Development

Currently, only 5% of the Government’s GDP is raised through internal revenue, calling to action the use of various economic development strategies that will be further detailed in chapters 2 and 3.^[4] A fundamental issue lays in the inefficient disbursement of foreign aid among the Afghan population with nearly three quarters of aid delivered and controlled outside of channels controlled by government budget which inflates costs, creates delays, and ultimately fails to build Afghanistan’s national capacity. In addition the amount of disbursement of aid recorded measures only the amount transferred by donors to implementing organization which once again are subject to costs of external channels.^[5] Thus, this value is inaccurate in reporting the actual amount of aid that is actually spent in Afghanistan, skewing the government’s ability to properly project and plan the use of aid. Economic development strategies along with efficient use of foreign aid and partnerships will allow the government to raise internal revenue to 15% of GDP by 2023.

1.3 Strategic Public Investments: Protecting Rights of the Poor

The Government plans to implement a system for registration of land rights to curb the prevalent issue of land grabs and insecurity in fixed capital. Through protection and formalization of land rights, we will effectively  unlock a source of credit for investment and growth in formal financial institutions and transform these unproductive savings in land and housing into living capital.^[6] Integration of vulnerable groups into economic growth is a significant point of growth for the Afghan economy as much of the population is not contributing to bringing the economy to operating at maximum capacity. Social protection programs that detail measures to protect the rights of the poor, including property rights, will help guarantee equitable access to public goods, such as irrigation water and electric power thus increasing opportunities for productivity and opening access to various economic activities previously unattainable.

2.0 Economic Development Strategies

2.1 Eliminating the Criminalized Economy

The government will focus on building licit GDP growth or eliminating the illicit economy which consists largely of the counter-narcotics industry. A key factor in transforming the Afghan economy is the development of counter narcotics policies to prevent further conflict and subsequently build national security. Additional benefits of these policies include but are not limited to expanding opportunities, reducing poverty, and breaking down the power of those working in illicit sectors. Currently, the majority of wealth accumulated by drugs is dispersed among corrupt officials, illicit power holders, and drug traffickers.^[7] Moreover, farmers and labourers also rely heavily on the narcotics economy despite low incomes as opportunities for licit livelihoods are extremely limited. By 2020, the government will have developed opportunities for licit growth and work experience to ensure that the poor are not crippled by the adverse effects of these policies.^[8] Counter-narcotics policies will eventually lead to eradication of opium crops, shifting economic activities towards import substitutes and export goods, thus increasing the fiscal capacity of the government and balancing trade and payments. After the implementation of counter-narcotics policies, gradually eliminating a large portion of Afghanistan’s business activity, the total economy will face a large contraction. In order to effectively offset this lost income, the licit economy will have to grow significantly in addition to the government’s 3% annual growth rate target, resulting in a estimated neccessary 9% real growth rate per year in licit GDP.^[9] Reflecting on current reports of Afghanistan’s projected growth rate, further analysis will be required after the implementation of these policies to develop a time frame that would require a more realistic and sustainable growth rate in order to lay a sustainable path for growth and reduction of poverty.

Fig. 1. Projected Annual GDP Growth of Afghanistan from 2018 to 2020, “Afghanistan .” Afghanistan | Data, The World Bank, data.worldbank.org/country/afghanistan.

2.2 Anti-Corruption Strategies

2.2.1 Public Sector Management

Building on the elimination of eliminating the illicit economy, the government will introduce increasingly transparent and merit-based appointment systems to fight corruption. By combatting the influence of drug traffickers in administration early on through the appointment of honest and law abiding senior officials, and civil servants, we actively increase the state’s ability to combat corruption. Active investigations into officials working in illicit institutions will lead into fundamental growth in the licit economy. Furthermore, we aim to spark active economic growth through simplification of rules and procedures and effective institutional frameworks.^[10] The development of ethical standard and implementation of enforceable legislative frameworks will are vital in realizing this goal.

2.2.2 Public Accountability Systems

The public systems require extensive reform to strengthen and enforce policies that are currently insufficient in providing public services including donor funded projects. The audit system is integral in the growth of this sector which encapsulates public finance systems, tax, and customs systems. In all aspects including this, the government, working with the audit system, aims to increase transparency and accountability in order to ensure proper and efficient use of services. New tax policies enforced by improved tax administration and penalization legislations will provide the basis for continuous growth as will more developed training programs for tax and customs administrators.^[11] The audit office will expand activities to all major provinces by 2022 to ensure that reporting mechanisms and the roles of the central audit system are utilized throughout the country, ensuring licit economic activity.

3.0 Priority Sectors of Economic Development

3.1 Infrastructure and Natural Resources

3.1.1 National Roads and Road Transport, Trade and Transit

Afghanistan’s infrastructure has been a block in travel and commerce for decades, inviting USAID and other foreign organizations to aid in the reconstruction of roads. More than 2000 kilometers of road have been invested in by USAID in order to increase economic productivity and facilitate trade.^[12] The government will also work closely with the Afghanistan Chamber of Commerce and Industries contact local companies to reconstruct Afghanistan’s infrastructure. This will allow for domestic investment and increases in employment opportunities throughout Afghanistan’s population as a precursor for the economic activity that will be brought through the new connections made between cities, commercial, industrial, and mining centers.^[13] New road systems will also allow Afghanistan to initiate its role as an international link between neighboring countries, opening opportunities for increased government revenue through tolls which will be facilitated through toll stations throughout transit routes. In the future, these tolls will be able to contribute to the financial support of road maintenance systems.^[14] Moreover, Provincial and rural access roads will allow for integration of rural citizens who contribute products of rural industries, such as agriculture, to domestic and foreign markets.

The continuing construction of the Trans-Afghan Pipeline (TAP), which will carry natural gas from Turkmenistan’s Davlatabad field through western and southern Afghanistan to neighbouring countries such as Pakistan and India, will also produce transit revenues currently estimated at US$ 50 million per year.^[15] In addition to the government’s work with the Afghanistan Chamber of Commerce and Industries, these infrastructural advancements would prove to be a great driving force in the short term economy. The planned roads and pipelines will generate employment, valuable work experience, and provide revenue for the government as citizens are employed for construction and border management and security.

3.1.2 Infrastructure Development Strategies: Water

By the end of 2022, the Government of Afghanistan will enhance access to irrigable land and drinking water to at least 40% of households and 90% of non-residential establishments in urban areas. Using international norms as as a basis, Afghanistan’s government will rehabilitate, sustainably develop and utilize water resources and irrigation infrastructure to provide equitable access to these resources by 2022. We will establish a river basin management system as a vital part in water purification and retention. The management of this river basin will eventually provide the opportunity for hydropower production and regulation of flooding which may prove vital in the fertility of agricultural practices.^[16]Again expanding on the opportunity for equal access of rural communities, financial aid and expertise may be given to these communities in order to kickstart investment in irrigation and water resource management.^[17] Along with completing existing large scale irrigation systems and undertaking new ones in rural communities, these operations will improve both water quality and quantity in rural and urban areas.

3.1.3 Infrastructure Development Strategies: Power

A plan for the rehabilitation of existing power infrastructure and rural distribution of energy will be developed by mid-2020 in order to increase the capacity of Afghanistan’s service and productive sectors and to provide electrical service to the majority of Afghan households. A large barrier to economic activity is the lack of basic resources available to the majority of citizens such as water and electric power. Private sector activity is hoped to rapidly grow as cheap and uninterrupted power is made increasingly accessible. The Ministry of Energy & Water (MoEW) will rapidly expand in the coming years in order to provide electric service to all citizens through affordable prices and fiscally disciplined use of investments. Before the government and foreign investors begin to make progress on these plans for long-term sustainability of power and water resources, we will create effectively billed and collected market based tariff rates that will contribute to the country’s internal revenue. Throughout the next five year term, we will continue to explore local technological solutions including renewable sources such as hydropower from the planned river basin systems that may prove financially stable, effective in the delivery of power, and affordable for citizens.^[18]

3.1.4 Natural Resources and Mining

In order to maximize revenues and sustainably accelerate the commercialization of minerals and gas, the Government of Afghanistan will work with the Ministry of Mines and Industry (MoMI) and the National Environment Protection Agency (NEPA) to manage natural, mineral, oil and gas resources while ensuring environmental responsibility in order to protect from adverse effects affecting future generations.^[19] State owned enterprises will be privatized to ensure that the industry is financially sustainable and exploitation of the mining, energy, airlines, and telecommunications sectors are maximizing potential of attracting international investment over the next five years.^[20]  With an estimated reserve of coal, copper, iron ore, gold, natural gas, oil and gemstones, worth up to US$253 million per year as predicted by Securing Afghanistan’s Future (SAF), the country is far from reaching maximum economic potential.^[21] For this to occur, investments of US$100 million and US$360 million would have to be made in the public and private sectors respectively. Royalties and other taxes generated could be valued at up to US$18 million in addition to a trade surplus of US$ 66 million. With additional employment from the multiplier effect of the ambitiously planned government spending, the mining sector hold the potential to create 7500 jobs.^[22]

3.2 Agriculture and Rural Development

3.2.1 Agriculture and Rural Enterprise Development

Built on the goal to eliminate the criminalized economy is our plan to promote licit farming production through investments in the agricultural sector and sustainable use of natural resources. Engines of economic growth for the coming five year period and onward also include the facilitation and promotion of the development of rural non-farm enterprises. Similar to the protection of land rights as outlined in section 1.3, this will be done by developing a land titling and registry system that will keep and reinforce records of ownership thereby improving distribution of land and access to stable fixed capital investments. In order to develop and maintain a standard of quality for products of the agricultural industry, the government will develop regulations and standards much like those developed in international economies through associations such as the Dairy Farmers of Canada. A process for the inspection and certification of farmers will be put in place by end-2019 to create a system that connects farmers with national markets including quotas as price controls. This will help stabilize the agricultural industry as they grow throughout this five year period.^[23]

The government will continue to work alongside rural people in order to bring their current livelihoods into the formal economy and benefit fully from government programs, financial services, and other business services. They will also benefit from increased access to institutions such as credit unions as we focus on the expansion of credit and financial institutions into rural areas. Vocational training in skills needed to develop businesses, trade, and marketing will be accessible by rural communities to facilitate the development of skills and experience in various sectors which will integrate the rural population into the active workforce.^[24] In order to ultimately contribute to the global supply chain, early stages of building rural enterprises will require connections to both domestic and global markets. Afghanistan’s rural export sectors, through increasing standard of quality will create opportunities to access the needed information of international standards, storage, packaging and transport goals. These goals will contribute to economic growth through strengthened exports and increased employment in rural areas. They will also result in subsequent investments in industries such as the processing of agricultural products or import substitution.^[25]

3.3 Economic Governance and Private Sector Development

3.3.1 Growth and Employment Through Business Freedom and Public Finance Management

In order to increase the competitiveness of Afghanistan’s’ economy,  the government aims to promote entrepreneurship and private sector investment in order to stimulate business activity. Currently, business freedom in Afghanistan faces a roadblock as establishing businesses and obtaining licenses remain problematic. The government will streamline regulatory and tax policies in order to simplify the process of participating in businesses and to lower the risks currently associated with entrepreneurship. Stimulating efficient and production-oriented business activity that is labor intensive is key in restructuring to become an economy that is export focused to end the pattern of trade deficits.^[26] Recently, reasons for the ongoing deficit have historically been attributed to the lack of government support for domestic production with an average government spending to GDP ratio of 11.11% from 2012-2017 as well as stiff rules towards global outreach and marketing which we aim to rectify through the goals set out in this five year plan.^[27]

The government will create an adequate level of control over public finances as customs and tax administration is reformed to reduce the complexity of procedures, thereby easing the process of starting a business. In order to evaluate the effectiveness of Afghanistan’s Public Finance Management (PFM), a set of performance indicators will continue to be used as shown in Table 1.0. We aim to see an increase in ranking of PFM indicators to at least 3 in all sections by 2021. The Government will continue to work to convince donors to maintain the share of total external assistance to Afghanistan that goes to the Core Budget at 55% as it has fluctuated between 40-59% between 2015 and 2018.^[28]

Fig. 2. Afghanistan’s Public Finance Management Performance Indicators,  “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

3.3.2 Strengthening Investment Climate

The Government of Afghanistan will focus on creating legitimate taxes that contribute to domestic revenue rather than illicit taxes in the form of bribes that are used to facilitate business growth. This works hand in hand with the government’s goal to eradicate the illicit economy and corruption of people in power. By regulating the tax climate through new administration and bilateral tax agreements with major trading countries, this will streamline the taxation process and assist the growth of the private sector with significant results shown by 2022. The private sector will be further supported through the infrastructure improvements that were outlined in chapter 3.1, as well as the establishment of land titling and registration systems.^[29]

3.3.3 Sources of Growth and Employment Creation: State-Owned Enterprises

State Owned Enterprises (SOEs) will be assessed nationally for privatization or liquidation. In order to provide the maximum amount of support for the private sector, any SOEs that provide services that could be delivered through the market will be liquidated. Those that do not significantly contribute to the economy will also be liquidated. After assessment and liquidation of SOEs, the revenue raised will be put in a separate fund to promote private economic development projects. Organizations with large political roles will be further assessed for possible privatization as they hold a vast range of economic opportunities, especially in the transport and mining sectors.^[30]

3.4 Strategic Public Investments

3.4.1 Institutional and Human Capacity Development

The ultimate goal of developing institutional capacity is the creation of effective institutions oriented toward the provision of services, manufacturing, and investment. Education, skills development, and health will be prioritized in the coming years in order to grow and maintain an efficient work force. Citizens will learn through training programs, how to raise capital through formal institutions, calculate costs and benefits of investments, develop business plans and market goods at international standards.^[31] As education is reformed, it will shift towards developing analysis and higher level thinking skills to match international standards allowing Afghanistan to move towards the knowledge-based global economy. We aim to see an increase in literacy and numeracy rates through a comprehensive plan to provide direction for the development of curriculum for training and higher level education.^[32] The less educated will have vocational and on-the-job skills training to fill the demand for work in trades industries such as construction. The fair distribution of educational opportunities and facilities between the genders will also be emphasized to further integrate the female population into the workforce. Moreover, a focus will be put on the overall health of the nation in order to enhance the productive capacity of entire families. This will be achieved through the distribution of health care throughout the country, aiming to ensure that 90% of Afghans have access to Basic Package of Health Services by 2022. ^[33]

Works Cited

• “Afghanistan.” World Food Programme, World Food Programme, www1.wfp.org/countries/afghanistan.
• “Afghanistan – Inflation Rate from 2012 to 2022 | Statistic.” Statista, www.statista.com/statistics/262062/inflation-rate-in-afghanistan/.
• “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.
• “Afghanistan Youth Literacy Rate, 1970-2017.” Knoema, Knoema, knoema.com/atlas/Afghanistan/topics/Education/Literacy/Youth-literacy-rate.
• “Afghanistan: Growing the Economy.” U.S. Department of State, U.S. Department of State, 27 Jan. 2006, 2001-2009.state.gov/p/sca/rls/fs/2006/60024.htm.
• “Afghanistan .” Afghanistan | Data, The World Bank, data.worldbank.org/country/afghanistan.
• “Afghanistan’s Control and Audit Office Requires Operational and Budgetary Independence, Enhanced Authority, and Focused International Assistance to Effectively Prevent and Detect Corruption.” Office of the Special Inspector General for Afghanistan Reconstruction, 9 Apr. 2010.
• Bjelica, Jelena, and Thomas Ruttig. “The State of Aid and Poverty in 2018: A New Look at Aid Effectiveness in Afghanistan.” Afghanistan Analysts Network, 17 May 2017, www.afghanistan-analysts.org/the-state-of-aid-and-poverty-in-2018-a-new-look-at-aid-effectiveness-in-afghanistan/.
• Byrd, Bill, and Kate Clark. “Economy & Development.” Afghanistan Analysts Network, 5 Dec. 2017, www.afghanistan-analysts.org/the-2018-afghan-national-budget-confronting-hard-realities-by-accelerating-reforms/.
• “Chapter 9. Institutional Reforms and Capacity Development.”
• “Economy and Trade.” Family Stucture and Marriage – Norwegian Afghanistan Committee, Norwegian Afghanistan Committee, www.afghanistan.no/English/Afghanistan/Economy_and_trade/index.html.
• “Education | Afghanistan.” U.S. Agency for International Development, USAID, www.usaid.gov/afghanistan/education.
• Felbab-Brown, Vanda. “High and Low Politics in Afghanistan: The Terrorism-Drugs Nexus and What Can Be Done about It.” Brookings.edu, The Brookings Institution, 28 July 2016, www.brookings.edu/articles/high-and-low-politics-in-afghanistan-the-terrorism-drugs-nexus-and-what-can-be-done-about-it/.
• Harris, Bryant. “USAID Unveils Five-Year Plan in Afghanistan.” AID, Inter Press Service, www.ipsnews.net/2014/02/usaid-unveils-five-year-plan-afghanistan/.
• “How Afghanistan Is Rebuilding Itself.” Council on Foreign Relations, Council on Foreign Relations, 9 Sept. 2011, www.cfr.org/interview/how-afghanistan-rebuilding-itself.
• Kenton, Will. “Bilateral Tax Agreement.” Investopedia, Investopedia, 31 May 2018, www.investopedia.com/terms/b/bilateral-tax-agreement.asp.
• “Projects & Operations.” Projects : DRC Urban Water Supply Project Additional Financing and Restructuring | The World Bank, The World Bank, projects.worldbank.org/P110407/af-rural-enterprise-development-program?lang=en.
• “Revenue Management and Distribution.” Natural Resource Governance Institute, Mar. 2015.
• “The Economic Impacts of Road Tolls.” Transport & Environment, Apr. 2017.
• “Transitional Islamic State of Afghanistan Mining as a Source of Growth.” The World Bank, Mar. 2004.

^[1] “Afghanistan Youth Literacy Rate, 1970-2017.” Knoema, Knoema, knoema.com/atlas/Afghanistan/topics/Education/Literacy/Youth-literacy-rate.

^[2] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[3] Harris, Bryant. “USAID Unveils Five-Year Plan in Afghanistan.” AID, Inter Press Service, www.ipsnews.net/2014/02/usaid-unveils-five-year-plan-afghanistan/.

^[4]“Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[5] “Afghanistan.” World Food Programme, World Food Programme, www1.wfp.org/countries/afghanistan.

^[6] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[7] “Economy and Trade.” Family Stucture and Marriage – Norwegian Afghanistan Committee, Norwegian Afghanistan Committee, www.afghanistan.no/English/Afghanistan/Economy_and_trade/index.html.

^[8] Felbab-Brown, Vanda. “High and Low Politics in Afghanistan: The Terrorism-Drugs Nexus and What Can Be Done about It.” Brookings.edu, The Brookings Institution, 28 July 2016, www.brookings.edu/articles/high-and-low-politics-in-afghanistan-the-terrorism-drugs-nexus-and-what-can-be-done-about-it/.

^[9] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[10] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[11]“Afghanistan’s Control and Audit Office Requires Operational and Budgetary Independence, Enhanced Authority, and Focused International Assistance to Effectively Prevent and Detect Corruption.” Office of the Special Inspector General for Afghanistan Reconstruction, 9 Apr. 2010.

^[12] https://www.usaid.gov/afghanistan/infrastructure

^[13]  “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[14] “The Economic Impacts of Road Tolls.” Transport & Environment, Apr. 2017.

^[15] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[16] https://wwf.panda.org/our_work/water/rivers/irbm/river_basin_approach/

^[17] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[18] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[19] “Revenue Management and Distribution.” Natural Resource Governance Institute, Mar. 2015.

^[20] “How Afghanistan Is Rebuilding Itself.” Council on Foreign Relations, Council on Foreign Relations, 9 Sept. 2011, www.cfr.org/interview/how-afghanistan-rebuilding-itself.

^[21] “Transitional Islamic State of Afghanistan Mining as a Source of Growth.” The World Bank, Mar. 2004.

^[22] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[23] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[24]  “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[25] “Projects & Operations.” Projects : DRC Urban Water Supply Project Additional Financing and Restructuring | The World Bank, The World Bank, projects.worldbank.org/P110407/af-rural-enterprise-development-program?lang=en.

^[26] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.

^[27] “Afghanistan – Inflation Rate from 2012 to 2022 | Statistic.” Statista, www.statista.com/statistics/262062/inflation-rate-in-afghanistan/.

^[28] Bjelica, Jelena, and Thomas Ruttig. “The State of Aid and Poverty in 2018: A New Look at Aid Effectiveness in Afghanistan.” Afghanistan Analysts Network, 17 May 2017, www.afghanistan-analysts.org/the-state-of-aid-and-poverty-in-2018-a-new-look-at-aid-effectiveness-in-afghanistan/.

^[29] Kenton, Will. “Bilateral Tax Agreement.” Investopedia, Investopedia, 31 May 2018, www.investopedia.com/terms/b/bilateral-tax-agreement.asp.

^[30] “Afghanistan: Growing the Economy.” U.S. Department of State, U.S. Department of State, 27 Jan. 2006, 2001-2009.state.gov/p/sca/rls/fs/2006/60024.htm.

^[31] “Chapter 9. Institutional Reforms and Capacity Development.”

^[32] “Education | Afghanistan.” U.S. Agency for International Development, USAID, www.usaid.gov/afghanistan/education.

^[33] “Afghanistan National Development Strategy: An Interim Strategy for Security, Governance, Economic Growth & Poverty Reduction.” Islamic Republic of Afghanistan.