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EU announces €1.4b in new development aid package for Afghanistan

October 11, 2014
The European Commission announced this Friday new development funding of €1.4 billion to support growth and social stability in Afghanistan. The new aid package will be spent until 2020 and will focus on social stability, such as rural development and agriculture, health, and strengthening democracy in the country.
European Commissioner for Development, Andris Piebalgs, and the National Economic Adviser to President Ghani, Hazrat Omar Zakhilwal, signed the development programme (known as Multiannual Indicative Programme) on Friday in Washington, in the margins of the annual meeting of the World Bank and the International Monetary Fund.
“This agreement is evidence of the EU’s continued long-term commitment to Afghanistan. Our support is based on lessons learnt through our cooperation with the country and draws on the priorities signalled out by the national authorities. In short, the money will go where it is most needed and could be most effective,” Commissioner Piebalgs said.
According to the European Commission, the majority of EU funding will be channelled using the major trust funds, particularly the Afghanistan Reconstruction Trust Fund (ARTF) administered by the World Bank, and the Law and Order Trust Fund (LOTFA) administered by United Nations Development Programme.
The agricultural and rural development will receive €337 million, €274 million will e spent on health sector, €319 million on professionalization f the police corps and application of the rule of law and €163 million will be spent on enhancement of the accountability of the state to its citizens through greater democratisation, for instance trough improved parliamentary, media and civil society scrutiny.
The commission has said €300 million will be used as an incentive component; to be paid based on the achievement of certain results and progress agreed upon – in line with the 2012 Tokyo Mutual Accountability Framework (TMAF).