British PM Outlines UK’s Afghanistan Role
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Mr Speaker, the third priority is reconstruction and development – always at its most challenging where poverty is combined with insecurity and insurgency but a strong long-term commitment to which is vital for the Afghan Government in taking responsibility for the future of their country.
So I can announce to the House today that, in total, Britain will make available £450 million pounds in development and stabilisation assistance for Afghanistan between 2009 and 2012, covering both short and long term priorities.
When I was in Afghanistan and met local business leaders, President Karzai and I agreed a comprehensive plan – to be taken forward jointly by the Afghan and British governments and the Aga Khan Development Network – to attract private sector investment into the country and stimulate new businesses. A new Growth Fund, starting with an initial £30 million pounds from Britain, will kick-start the development of a basic legal and regulatory framework, build government capacity to involve the private sector in providing public services, and pilot business training programmes. This will be led by a council of Ministers, business representatives and other experts, who will build contacts with the private sector inside Afghanistan and abroad, advise the government on how to increase investment and economic growth, and monitor the progress being made.
Britain is also providing an additional £10 million pounds for small loans, that will be of special help particularly to women, to start up or expand businesses – and 70 per cent of the initial applicants have so far been women.
Our long term objective is to support Afghanistan’s own National Development Strategy by channelling our aid through the Afghan Government – the best route to achieving sustainable progress and the best value for money —- and doing so on a long term basis, helping the Afghans plan ahead and with good governance focus on their own priorities: economic growth, health and education, and rural livelihoods.
But we also recognise the need for short term, high impact stabilisation projects – better roads, more reliable power supplies, clean water and sanitation – which make an immediate difference to the lives of ordinary Afghans and show them the benefits of improved security and governance. Part of the £450 million pounds I announce today will help fund Britain’s new cross-government Stabilisation Unit which has Afghanistan as its first priority — and with a global budget of £260 million pounds over the next three years will drive forward reconstruction projects and provide expert civilian support to rebuild basic services.
Ismailimail 