07/25/2002

Natsios Announces Economic Governance Project for Afghanistan

Says USAID committed to Afghanistan for the long-term

Washington -- If the private sector economy does not start moving to create jobs and employ people in Afghanistan, then the entire reconstruction effort will fail, Andrew Natsios, administrator of the United States Agency for International Development (USAID), told attendees at the Afghanistan-American Summit held at Georgetown University on July 25.

In order to aid the success of the private sector in Afghanistan, USAID has proposed sending fifty-two U.S. financial experts to Afghanistan over a period of three years to help set up the economic governance system of the private sector economy, Natsios said. He added that similar projects have been successful in Jordan and several countries recovering from civil war.

“We are very committed to this,” he said.

Natsios said that the USAID would be in Afghanistan for a very long time, emphasizing that his agency does not set up projects for only a couple of years; it sets up projects for a decade or more. On July 24, Natsios repeated statements by President Bush and Secretary of State Powell that the United States and the U.S. Agency for International Development are in Afghanistan "for the long haul."

The main thrust of the economic governance project, Natsios said, will focus on creating a safer, more inviting atmosphere in Afghanistan for investors and businessmen by setting up a coherent commercial regulatory system. He said that it is “very important that a system be set up that deals with commercial laws and an investment framework.”

Afghan President Hamid Karzai has already approved the proposal, Natsios said. He said U.S. experts will focus on training tax collectors and customs agents to increase collection of tax revenues. They will also deal with budget planning and implementation, rationalizing the trade and tariff regime, setting up a regulatory framework, and establishing commercial law, and finally, U.S. experts will look at the possibility of privatizing several state-owned enterprises such as banks, he said.

Natsios emphasized that a vibrant private sector is a vital component of the reconstruction efforts in Afghanistan and that USAID can help set up a more attractive business environment to returning Afghan businessmen as well as foreign investors.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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