Diagnostic Report: Harakat Afghanistan Investment Climate Programme
This report highlights issues that need to be addressed to enable better engagement and ownership for Business Environment Reform
Abstract
The UK Department for International Development (DFID) and the Board of Harakat commissioned Business Environment Reform Facility (BERF) to carry out a diagnostic review of the business environment (BE) in Afghanistan, following the approval of the Afghanistan Investment Climate Programme’s (AICP) Business Case for funding in June 2016. Consultations carried out during this assignment highlights 3 issues that need to be addressed to enable better engagement and ownership for BER:
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Lack of ownership of Key Performance Indicators (KPIs) by prospective government ministries and agencies.
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Lack of inter-ministerial (including the High Economic Council) and private sector engagement:
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Lack of donor coordination among multilateral development agencies (such as the World Bank and Asian Development Bank) and bilateral donors and contractors.
The key BER constraints identified in this review are:
- Lack of private sector representation and protection to do business;
- Regulatory environment for business is fragmented and complex to follow;
- Legal and regulatory frameworks for PPPs are not properly implemented;
- Capacity is weak within government to identify, plan, and monitor PPPs;
- Complicated processes for business start-ups; and
- Legal and regulatory frameworks for business law are weak and in some cases non-existent.
This research is part of the Business Environment for Economic Development programme
Citation
Tuckett, T (2017) Diagnostic Report: Harakat Afghanistan Investment Climate Programme, Business Environment Reform Facility
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