The World Bank Group announced a new approach to aid Afghanistan, involving the allocation of approximately $300 million through the International Development Association (IDA) fund, intended for the world’s poorest nations. This funding will be channeled via UN agencies and other international organizations, ensuring that the Taliban does not control the funds. This initiative aims to support vital services like food, water, healthcare, education, and job opportunities in Afghanistan.
This move marks the first instance of World Bank funds being directed to Afghanistan since the Taliban’s takeover in August 2021. During this period, the Afghanistan Reconstruction Trust Fund has allocated $1.5 billion in donor aid through partner organizations, aiding nearly 25 million Afghans.
The IDA typically disburses grants and highly concessional loans to the world’s most impoverished countries, with donor nations replenishing its resources every few years. The current replenishment cycle, ending in 2025, totals $93 billion. World Bank President Ajay Banga has called for a record new amount in the next cycle to meet the increasing demand for funding.
The new strategy for Afghanistan focuses on broadly delivering essential services, including job creation through microfinance for income-generating activities and encouraging private sector involvement in aid delivery. The World Bank continues to emphasize the importance of focusing on women, ensuring that project activities are conducted by and for women, despite the Taliban’s policies that deprive women of their rights, such as education. The available $300 million funding is set to continue until June 30, 2025, covering the remainder of the current fiscal year and the entirety of the next fiscal year.
The U.S. has significantly contributed to humanitarian aid in Afghanistan, especially following the Taliban’s takeover in August 2021. The U.S. Agency for International Development (USAID) and the U.S. Department of State have collectively provided more than $1.1 billion in humanitarian assistance since then. This aid aims to address the needs of vulnerable Afghans both within the country and those who have fled to neighboring countries, amidst challenges such as conflict, economic collapse, and natural disasters.
Prior to the recent crisis, the U.S. had already been a major donor, with significant investments in security, civilian assistance, including specific funds aimed at supporting Afghan women and girls, and humanitarian aid. The assistance has covered various sectors, aiming to prevent Afghanistan from being a terrorist haven, maintain stability, promote economic growth, and support social gains, among other objectives.
Despite these efforts, challenges in aid delivery and effectiveness persist, exacerbated by the complexities of governance and development in Afghanistan, as well as by the changing political landscape. The flow of aid and its management have faced issues such as waste, corruption, and difficulties in measuring the overall impact. The situation is further complicated by the Taliban’s inability to establish effective governance and manage aid distribution, alongside international reluctance to provide aid directly to a Taliban-led government.
