THE ENABLING ENVIRONMENT
“Our experience…is that sustainable development
is only possible when the community is engaged at the grassroots
level and is given the ways and the means to take responsibility
for its own future. This means building the capacity of civil
society institutions as well as tapping into the wellspring
of individual initiative that has been part of the vigorous
Afghan spirit for centuries. It is therefore critical that
the Government of Afghanistan creates the appropriate legal
and fiscal framework, the regulatory conditions and the stable
democratic institutions – in other words, the enabling
environment – that encourages and supports the confidence
and growth of private initiative, and also facilitates the
development of public-private partnerships.
It is my firm belief that if the enabling conditions are in
place, private initiative and the organisations of civil society
can work successfully, with governments, toward achievement
of our common vision for Afghanistan.”
Excerpt from a speech of His
Highness The Aga Khan on the occasion of the Conference on
Afghanistan, London, United Kingdom, 31 January 2006
THE STAKES IN AFGHANISTAN
“Afghanistan emerged in late 2001 as a state
that had been devastated like no other in modern history.
The extent of destruction of our physical, institutional,
human and social capital left us and our international partners
with a staggering task: to build a pluralist Islamic state
governed by the rule of law, in which all Afghans have the
opportunity to live in peace, fulfil their economic potential
and participate politically as full citizens.
Five years later, we have yet to achieve this vision, and
we have jointly underestimated the depth of our challenges
and the length of time required. As a consequence, we have
failed to invest adequately in our security, our economic
recovery and our political stability. Since we agreed on the
Afghanistan Compact in London a year ago, we are facing greater
challenges in insecurity, narcotics, and corruption, while
the persistent challenges of poverty and unemployment remain
with us. This year, as the Afghan people suffer through another
harsh winter, they are looking towards all of us for support.
They are asking whether this new year will deliver real change
in their lives, or return them to the despair of conflict
and poverty that they know so well.”
Position Paper presented by
the Government of Afghanistan at the Joint Coordination and
Monitoring Board meeting, Berlin, Germany, 30-31 January 2007
THE CHALLENGE
An effective and functioning state apparatus is essential
for Afghanistan to develop. But experience demonstrates that
it is not sufficient to rely exclusively on any state to implement
a complex development agenda. Afghanistan’s growth,
and some would argue survival, requires private initiative
(both for-profit business and non-profit civil society) to
make full and effective use of the country’s human potential,
generate material resources, and develop a vibrant and robust
socio-economic base. Afghanistan can secure its destiny as
a modern Islamic state by basing development and growth on
a solid foundation of ethics and values, respecting the country’s
rich pluralistic heritage, and promoting a diverse, sustainable,
and engaged civil society.
In order for private initiative to play its role in development,
it needs an enabling environment, characterised by political
stability; confidence in the future; mutual trust, understanding,
dialogue and collaboration amongst stakeholders; rule of law;
protection of the rights of citizens; a diversity of stable
democratic institutions; and a streamlined legal, fiscal,
regulatory and administrative framework governing all spheres
of private initiative, which is predictably, consistently
and impartially applied.
THE DIALOGUE
To dialogue on how best to enable private initiative to contribute
to and accelerate Afghanistan’s social, economic, and
cultural development, the Enabling Environment Conference
will bring together leaders, decision-makers and creative
thinkers from the Afghan Government and National Assembly,
the international community, private for-profit businesses
and non-profit civil society, development agencies and subject
experts. The Conference will provide a forum for open discussion
and creative problem-solving, drawing on Afghan and relevant
regional and international experience.
The Conference sessions will take place in June 2007 in Kabul,
Afghanistan. On the first day the Conference will be inaugurated
and plenary discussions and smaller workshops will be held,
covering the main themes of the Conference. On the second
day, a plenary panel discussion will take place followed by
the closing session, during which the Conference’s recommendations
will be delivered.
THE ISSUES
Through a year-long preparatory process involving a review
of work undertaken by a wide range of actors, analyses of
background papers and case studies commissioned for the Conference,
extensive interviews conducted with subject experts, and a
series of round-table discussions held across Afghanistan
and with the diaspora abroad, the following questions have
emerged as topics of discussion:
 How can the supply of power, a serious infrastructure problem in Afghanistan, be substantially increased using private initiative and/or public-private partnerships?
How can obstacles to increased economic activity in rural areas (where 80% of Afghans live) be overcome, including exploring how to build transportation, communication and other essential infrastructure; develop markets and opportunities for trade; and stimulate the formation and growth of small and medium-sized enterprises?
How can significant new or expanded access to credit and other financial services be provided?
How can limitations in human capacity (availability, knowledge, competence, and experience), which constrain both government’s and the private sector’s ability to function effectively, be overcome?
How can government, the private for-profit sector and non-profit civil society, collectively and individually, address gaps in legal, regulatory, and fiscal frameworks governing the private sector, streamline and clarify procedures, promote predictability and consistency in decision-making, improve the disposition towards the private sector, and address concerns about governance and corruption?
Regarding the role of civil society in a country’s development, what international and Afghan experience can be drawn on to promote the contribution civil society makes in Afghanistan?
How can public-private partnerships – in both economic and social development – be promoted, sustained and made effective?
How can an enabling environment be created to encourage active engagement by business in development through, for example, social responsibility and philanthropic activity?
What
are the urgent priorities that require immediate attention
and must be fast-tracked, to create an enabling environment
for private initiative in Afghanistan?
THE WAY FORWARD
The Conference outcomes will have
little meaning without purposeful and energetic follow-through
in the days and months after the Conference. The follow-up
mechanisms must be pragmatic and action-oriented. Conditions
for success include continued commitment and active engagement
from senior Government and National Assembly officials, meaningful
consultation of the private for-profit sector and non-profit
civil society in identifying impediments and designing solutions,
and support – technical, financial and other –
from the international community. Specifically, the Conference
will conclude with a declaration, including a post-conference
road map and an oversight mechanism to ensure implementation
of recommendations.
DOWNLOADABLE RESOURCES
| Round
Table Consultations |
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A
series of roundtable consultations were held across
Afghanistan and overseas with the Afghan private
sector and diaspora communities. They were organised
by the Aga Khan Development Network and the Afghanistan
Investment Support Agency (AISA).
There were six
events held in Kabul, Jalalabad, Herat and
Mazar
e-Shariff (small- and medium-sized enterprises);
with the Foundation for Culture and Civil Society
(domestic civil society organisations); with the
Government of Afghanistan (Afghan businesses in
Kabul); and with the Afghan Ministry of Foreign
Affairs (Afghan Diaspora in Toronto and Hamburg).
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| Summary
Report |
| دری I English |
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| Summary
of Discussions |
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The
Enabling Environment Conference brought together
leaders and decision-makers from the Afghan Government
and National Assembly, the international community,
Afghan and international private for-profit businesses
and non-profit civil society, development agencies
and subject experts. With participation exceeding
300, it succeeded in providing a forum for open
discussion and creative problem-solving, drawing
on Afghan and relevant regional and international
experiences.
The "Summary of Discussions" provides
the highlights of speeches, discussions and roundtables
held over the two days of the conference.
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| Summary
of Discussions |
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Conference
Statement and Roadmap |
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The
Conference on the Enabling Environment for
Effective Private Sector Contribution to
Development in Afghanistan took place in
Kabul on the 4th and 5th of June, 2007.
It focused on creating the conditions necessary
to significantly increase the contribution
of
the private sector – defined as both for-profit
business and not-for profit civil society
– to social, economic, and cultural development
in Afghanistan’s urban and rural areas.
At the conclusion of the conference, parties
agreed to the conference statement, which
includes a series of recommendations, and
a roadmap for actions ranging from legal
and fiscal frameworks to human resources
and public-private partnerships.
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| Statement
and Roadmap |
| دری I English |
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A
Policy for Private Sector Growth and
Development |
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Paper
by the Islamic Republic of Afghanistan
Afghanistan National Development
Strategy (ANDS)
"The Government’s primary goal
in encouraging the accelerated growth
and development of the private sector
is to substantially increase employment
and to raise incomes, especially of
the poor."
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| Policy
Paper |
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| Media Resources
and Online Press Kit |
The creation of an enabling
environment is expected to move Afghanistan from a climate
of fragility to one of confidence in the future, leading
to economic development and job creation, social progress
and improved quality of life of the Afghan people and
a vibrant and engaged civil society.
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