FINANCING FOR DEVELOPMENT

PRIVATE SECTOR DEVELOPMENTISLAMIC REPUBLIC OF AFGANISTAN

ISLAMIC REPUBLIC OF AFGANISTAN

A landlocked country located within South Asia and Central Asia.[Population: app. 32 million, (42nd populous country in the world).Territory: 652,000 km2 (252,000 sq mi), (41st largest  country in the world).Climate: a continental climate with harsh winters in the central highlands, Despite having numerous rivers and reservoirs, large parts of the country are dry.GDP (PPP) in 2016:• Total : $65.295 billion[6]• Per capita: $1,994[6]

Current conditions

Economy: Afghanistan is an impoverished least developed country, one of the world's poorest because of decades of war and lack of foreign investment;

Health: The country has one of the highest maternal mortality rate in the world as well as the highest infant mortality rate in the world. A number of hospitals and clinics have been built over the last decade, with the most advanced treatments being available

Education: The literacy rate of the entire population has been very low but is now rising because more students go to schools.

INNOVATIVE FINANCIAL MECHANISN:

PPP TOP-DOWN SUPPORT1. National Strategy (a long-term period): Public-

Private Partnership (sector projects)

2. Legal framework: Tax Administration Development, Improvements in Investments and

banking system, etc.

3. Action Plans: Support SMEs, social programs, education and science projects,

infrastructure projects

INNOVATIVE FINANCIAL MECHANISN:

PPP BOTTOM-UP SUPPORT3. Action Plans: Support SMEs, social programs, education and science projects, infrastructure

projects

2. Access to financing: private banks, micro financial agencies, state banks,

loan institutions, grant foundations, etc.

1. Business planning, strategies: agribusiness, service sector: trade, tourism; manufacturing sector: textile, clothing and

footwear industry

INNOVATIVE FINANCIAL MECHANISN:

INTERNATIONAL SUPPORT of PPP

Public-Private

Partnership

Development Banks (infrastructure, industry)

Wealth, Pension and Insurance Funds (education,

social projects)

IMF, Donors, etc. (macroeconomic stability,

risk management)

Foreign Direct Investment (mining, trade)

FINANCING FOR DEVELOPMENT

Development can be sustainable and fruitful if1. Government provide long-term all-round support and stability;2. Private sector is inclusive, competitive and operates within the laws;3. Public-private projects in all sectors of economy;4. International cooperation and collaboration at all level of development

from state administration to a firm;5. International investments through FDI, Wealth and Pension Funds,

Voluntary Funds and others.