ABSTRACT

An evaluation looked at the results of World Bank assistance in Afghanistan from 2002 to 2011. This chapter focuses on one key area of support: building the capacity of the state and its accountability to citizens. There were two main dimensions to this assistance. First, the World Bank supported core financial systems. The results include a relatively strong framework of public financial management, including improvements in budgeting and spending efficiency at line ministries. However, challenges remain, including weak capacity for processing procurement and implementation delays due to security issues. Second, the World Bank helped build and improve core administrative and judicial institutions at the national and subnational levels. Results include adopting new laws and regulations, more transparent recruitment and pay and grading reforms. However, corruption is rampant, and there is little evidence of improved administrative performance except by a “second civil service” of contracted specialists paid with unsustainable donor funds.

The chapter draws on a few subsequent assessments of more recent World Bank support to get a sense of the progress and sustainability of these reforms since 2012. However, much more intensive study would be needed to get a full update on the present situation and the emerging risks.