International Community Must Rethink Aid Strategy for Afghanistan

The humanitarian crisis in Afghanistan has worsened amidst a reduction in aid funding and the Taliban’s takeover of the country. The United Nation’s World Food Program has warned that it urgently needs $93 million to help 13 million people in April, and $800 million for the next six months. The Taliban’s discriminatory policies towards women and girls, including a ban on female education and women working in NGOs, have further exacerbated the crisis. In addition, donor fatigue and competing global crises make it difficult to continue providing massive aid packages to Afghanistan.

The Need for a New Approach to International Aid in Afghanistan

Humanitarian aid is critical for responding to natural disasters and short-term emergencies, but it cannot resolve a prolonged economic crisis such as the one in Afghanistan. The current humanitarian aid situation in Afghanistan is unsustainable and inefficient in the long term and does not exploit new technologies or the potential of the Afghan private sector. A new approach to aid is required that encompasses more than just the core humanitarian objective of saving lives.

Strategies for Improving Aid Delivery

To improve aid delivery in Afghanistan, coordination between aid organizations and the World Bank can improve through strategic rethinking that requires a proactive World Bank stance and ARTF donors’ authorization. In addition, scaling up e-money transfers for aid delivery requires substantial investments into safeguards against terrorism financing and money laundering risks by major aid donors and large UN agencies. Private sector workarounds to international financial transaction restrictions can be supported through further development of “tankhaa” system which allows NGOs to pay their employees’ salaries using accumulated sale proceeds from a major Afghan company. Encouraging foreign banks to lessen reluctance regarding Afghan-related financial transactions through managing sensible thresholds could support local businesses.

Maximizing the Effectiveness of Humanitarian Aid

To maximize humanitarian aid effectiveness in Afghanistan, risks and benefits of different delivery mechanisms should be assessed. Risks of using cash vs. digital currency transfers need to be weighed and analyzed, and risks of relying on Afghan private businesses to deliver aid must also be reviewed. The scope of prioritization should include both humanitarian activities and basic development programs (humanitarian-plus). Additionally, cost-effectiveness and cost-benefit criteria should be used to prioritize where humanitarian aid is allocated. Total aid to Afghanistan should be assessed rather than using isolated funding sources.

Decreasing International Aid Requires Change

With the decreasing international aid to Afghanistan, William Byrd, a USIP expert, proposed changes such as coordinating aid efforts and utilizing the Afghan Trust Fund in Switzerland. According to Byrd, humanitarian aid is not well-positioned to respond to a prolonged economic crisis such as Afghanistan’s crisis. Instead, the international community should make greater use of the Afghan private sector in delivering aid to reduce associated costs and provide economic support. Byrd suggests gradually decreasing humanitarian aid while increasing long-term economic stability for the country.

“Do No Harm” Practices Must Be Incorporated into Aid Planning and Deployment

Risk management and “do no harm” practices must be incorporated into all humanitarian planning and deployment in Afghanistan. Donors and aid organizations need to plan for a predictable, gradually declining glide path for humanitarian aid delivery to minimize further damage to the Afghan economy and avoid abrupt aid cutoffs or sharp declines. Fungibility of funds needs consideration when deploying aid.

The current situation in Afghanistan requires a rethinking of traditional methods of delivering humanitarian aid. With appropriate coordination between international organizations and in-country actors, a collaborative approach that includes local businesses can better stabilize the economy while effectively meeting the essential needs of the Afghan population.

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