The International Conference on Reconstruction Assistance to Afghanistan
(Outline and Evaluation)

24 January 2002

1. Date and Venue; 21-22 January 2002, New Takanawa Prince Hotel

2. Attending Countries and Organizations

• Co-Chairs:
  Japan, the United States of America, the European Union (EU) and the Kingdom of Saudi Arabia
• The Interim Authority in Afghanistan:
  Chairman of the Afghan Interim Administration Hamid Karzai, Vice Chairman and Minister of Planning Ustad Haji Mohammad Mohaqqeq, Vice Chairman and Finance Minister Hedayat Amin Arsala, Minister for Foreign Affairs Abdullah Abdullah, Minister of Health Suhaila Seddiqi (female), Minister for Reconstruction Amin Farhang (six ministers in attendance)
• Participating Countries; Sixty-one countries including the Co-Chairs and Afghanistan:
  Major Attendants: Secretary of State Colin Powell of the United States, Secretary of the Treasury Paul O'Neil of the United States, Director-General Andrew S. Natsios of the US Agency for International Development (USAID), Minister of Finance and National and Economy Ibrahim bin Abdul-Aziz Al-Assaf of Saudi Arabia, Commissioner for External Relations of the EC Christopher Patten of the EU, Secretary of State for Foreign Affairs Miguel Nadal of the Kingdom of Spain (Co-Chair), Minister of Foreign Affairs Kamal Kharrazi of the Islamic Republic of Iran, Finance Minister Shaukat Aziz of the Islamic Republic of Pakistan, Special Envoy of the Government of the People's Republic of China Wang Xue Xian, Minister for Cooperation and Francophonie Charles Josselin of the French Republic, Federal Minister for Economic Cooperation and Development Heidemarie Wieczorek-Zeul of the Federal Republic of Germany, Minister for Foreign Affairs and Trade Han Seung Soo of the Republic of Korea, Secretary of State for International Development Clare Short of the United Kingdom
• International Organizations; Twenty-one Organizations excluding the EU:
  United Nations (UN)(Secretary-General Kofi Annan; Special Representative of the UN Secretary-General Lakhdar Brahim; Under-Secretary General, Office of the Coordination of Humanitarian Affairs Kenzo Oshima), United Nations High Commissioner for Refugees Ruud Lubbers, Executive Director Carol Bellamy of United Nations Children's Fund (UNICEF), Administrator Mark Malloch Brown of the United Nations Development Programme (UNDP), Director-General Jacques Diouf of the Food And Agriculture Organization (FAO), President James Wolfensohn of the World Bank, President Tadao Chino of the Asian Development Bank (ADB), Secretary-General Abdelouahed Belkeziz of Organization of the Islamic Conference (IOC)

3. Schedule Outline

21 January (Monday)
9:00 - Opening Session
Morning Speeches by Prime Minister Junichiro Koizumi, Secretary-General Annan, Chairman Kharzai, and representatives of each of the Co-Chairs Report on the Assessment on Reconstruction Needs conducted by the World Bank, ADB and UNDP
Afternoon General Discussion

22 January (Tuesday)
11:30 - Closing Session (Announcement of Co-Chairs Summary of Conclusions)
14:00 - Joint press conference
(Note: On 20 January the NGO Meeting on Reconstruction Assistance to Afghanistan was held and from 20 January to 22 January experts meetings was held to discuss demobilization, military and police training, mine-clearing, anti-drug measures and alternative crop cultivation)

4. Outline

• Primary Focus of the Conference
  Held with the attendance of Ministerial-Level participants, this conference was a venue for many nations to issue a political message to the international community on reconstruction assistance to Afghanistan. Furthermore, Chairman Kharzai and others announced a vision and policies for achieving the reconstruction and development of Afghanistan.
• Vision for Reconstruction
  In regard to the processes and objectives laid out in the Bonn Agreement, which aims to ensure peace, establish representative systems and achieve stability, as well as eradicating terrorism and the cultivation and trafficking of illicit drugs, an agreement was reached that assistance will be provided to Afghanistan under the condition that all of the factions in Afghanistan positively contribute to the process.
• The Afghan Interim Authority identified the following several key priority areas for the reconstruction of their country:
  (1) Enhancement of administrative capacity, with emphasis on the payment of salaries and the establishment of the government administration; (2) Education, especially for girls; (3) Health and Public Health; (4) Infrastructure development, in particular, roads, electricity and telecommunications; (5) Reconstruction of the economic system, in particular, the currency system;(6) Agriculture and rural development, including food security, water resources management and revitalizing the irrigation system. Along with these priority areas, the AIA stressed its commitment to transparency, efficiency and accountability. (This was a point that was strongly requested by the donors) Moreover, the AIA also emphasized the importance of community building, which underlies all sectors in Afghanistan. The importance of mine-clearing and assistance to war victims and the disabled was also stressed.
• The AIA recognized that it holds primary responsibility
  for reconstruction. The international community concurred and expressed its determination to provide support and closely co-ordinate with the AIA and the people of Afghanistan as they conduct reconstruction efforts.
• Pledges and Contributions
  
  For 2002 More than US$1.8 billion
  Cumulative total More than US$4.5 billion
  (some countries announced pledges and commitments for fixed periods spanning several years)
  Major pledges Japan: up to US$500 million over 2.5
  years. (with up to US$250 million in 2002)
  United States: approximately US$290 million in 2002.
  Saudi Arabia: approximately US$220 million over 3 years.
  EU (EC and member states): approximately US$500 million in 2002.
  Furthermore, the EC alone pledged 1 billion euro over 5 years.
• Trust fund
  Management of the United Nations Afghanistan Interim Authority Fund World Bank Allocation of expenditures; Decisions about allocation of expenditures will be the responsibility of the World Bank, UNDP, ADB and Islamic Development Bank in close co-operation with the government of Afghanistan and in consultation with the Special Representative of the Secretary General.
• Implementation Group (IG)
  The Implementation Group (IG) will ensure strategic coherence and coordination among the AIA, donors and Non-Governmental Organizations (NGOs). The AIA will chair the IG. The World Bank, UNDP, ADB, Islamic Development Bank, and the Afghan Support Group (ASG) Chair will serve as vice-chairs of the IG. The IG will be held at least quarterly in Kabul in order to conduct coordination among the AIA and donors. The AIA Vice Chairman and Finance Minister Amin-Arsala chaired the first meeting of the IG on the margins of the Conference and indicated that the next meeting will be held in Kabul in March.
• Code of Conduct
  The Conference noted the UNDP proposal for a Code of Conduct to avoid distortionary wage and rent inflation caused by the international presence, and urged the IG to work further on the proposal.
• Follow-up
  The next Afghan Reconstruction Steering Group (ARSG) meeting will be held by the middle of the year.

5. Significance

1) Importance Within Japan's Diplomatic Policies
The fact that after many years of providing humanitarian assistance to Afghanistan and being involved in the process of reconciliation Japan proposed the holding of a Ministerial-Level conference on reconstruction assistance at an appropriate time, and successfully concluded that conference has opened a new dimension in Japan's diplomacy and contributed to enhancing Japan's presence in the international community.

2) Japan-United States Coordination
Since the holding in November 2001 of the Senior Officials Meeting on Reconstruction Assistance to Afghanistan, Japan and the United States have maintained close contact and the Japan-US coordination played a major role in ensuring the success of the conference. Furthermore, by involving the United States at an early stage Japan succeeded in securing a positive commitment from the United States at high levels.

3) Relevance to the Situation in Afghanistan
Considering that less than one month has passed since the establishment of the Afghan Interim Authority and a stable public order is yet to be established in Afghanistan, it is indeed timely that the international community has now taken initiative for reconstruction in order to support the political process in Afghanistan. This will most certainly contribute to stabilizing the situation in Afghanistan in the future.