More than 60 percent of Afghan government's operational budget and more than 90 percent of its development budget are funded by its international allies. This makes the economic stability of Afghanistan highly vulnerable especially at times when the international troops are withdrawing and foreign donations are expected to diminish. Majority of Afghanistan backers have no specific economy package for this country beyond 2014, albeit some countries have pledged to support Afghanistan beyond the troops' withdrawal date.
Putting the question of continuity of fund flow aside, the billions of dollars poured in Afghanistan in the last ten years have not proved to be efficacious for this country. Lack of transparency and accountability both by Afghan government and its international partners is deemed to be the main reason for little aid effectiveness.
The government of Afghanistan can not spend. The execution rate of various developmental and reconstruction projects are below 30 percent. But still it demands to the international community to channel all its funds through the government system. Already the Western backers have agreed to transfer 50 percent of their funds through Afghan government.
But that is based on the condition that Afghan government improves its execution rate. Still the government has a long way to go to bring the execution rate of development projects at a satisfactory level. And above all, the corruption is still deep rooted in government organizations. This hampers all the development in governments' financial system.
Over the last few years, the Afghan government and its Western backers have been pointing fingers at one another for not doing enough against corruption. Integrity Watch Afghanistan (IWA) has said the international aids to Afghanistan lack proper transparency and that the donor countries should present more information about their development programs and aids to the people of Afghanistan.
For the sake of making Afghanistan move towards economic stability it is very important both for the international community and Afghan government to improve their accountability and transparency. Corruption which has turned into a culture in Afghanistan should be fought with full will and sincerity to the Afghan nation.