21 January 2002

Report Says Afghanistan Needs $5,000 Million For 30 Months

Afghanistan needs $5,000 million over the next 30 months, according to a preliminary needs assessment released January 21 in Tokyo.

The assessment was prepared jointly by the World Bank, U.N. Development Program and Asian Development Bank (ADB), according to a World Bank press release of the same day.

World Bank President James Wolfensohn urged early donor support to pay government workers, according to the release. "Early support is crucial to making sure that the new authorities can establish the basic framework of government," he said.

He added that donors should be prepared to assist over the long term.

Wolfensohn said he will ask the Bank's shareholders to approve $500 million in concessional loans and $50 million to $70 million in grants over the next 2-1/2 years.

(Note: In the following text "billion" equals 1,000 million.)

Following is the text of the World Bank press release:

Afghanistan: World Bank Proposes $500 Million Offers an additional $50-70 million immediate grant assistance

Tokyo, January 21, 2001 -- Addressing the International Conference on Reconstruction Assistance to Afghanistan, World Bank President James D. Wolfensohn said that he would propose to the World Bank's shareholders $500 million in concessional assistance to Afghanistan over the next thirty months, with immediate action to provide an additional $50-70 million in grants.

Stressing the importance of an early peace dividend, Wolfensohn said "It is imperative that the Afghan authorities and the international community show quick and tangible benefits to the Afghan people. The fight against poverty is central to long term peace and stability. The Afghan people need and deserve our immediate help."

At the conference, the World Bank, the Asian Development Bank and the United Nations Development Program presented a preliminary Needs Assessment for Afghanistan's Reconstruction. The Assessment calls for $5 billion from the international community for the first two and a half years, with an overall figure of $15 billion over 10 years.

Mr. Wolfensohn called on donors to step up to the challenge of giving hope and opportunity to the many millions of Afghans who are living below the poverty line. Especially important, he said, was investment in areas such as demining and infrastructure, education and health, access to clean water, energy and communications. Currently one in four Afghan children die before the age of five; and only 3 percent of girls and 38 percent of boys are enrolled in school. Less than 23 percent of the population has access to safe water, and only 12 percent to adequate sanitation.

Wolfensohn stressed the importance of early donor support to pay teachers, health workers, and other government personnel, whose participation in the government is central to reconstruction. The Afghanistan Interim Authority plans to rehire many of the civil servants who were employed before the Taliban -- about 43 percent of whom are women.

"Early support is crucial to making sure that the new authorities can establish the basic framework of government," he said. "But we must also not forget the longer-term needs. Reconstruction is not about a quick fix. Donors must be prepared to stay and help for the long haul. Even when the spotlight of television has gone."