Peace Hopes in Afghanistan Hit By Aid Shortfall

Afghanistan is being deprived of $10bn (£5bn) of promised aid, and 40% of the money that has been delivered went on corporate profits and consultancy fees, according to a hard-hitting report by aid agencies released today.

The failure of western donors to keep their promises, compounded by corruption and inefficiency, is undermining the prospects for peace in Afghanistan, it warns. Civil aid programs are a fraction of what is spent by America, Britain, and others on military operations there. Much of the money earmarked for aid is diverted to political or military purposes.

The report by Acbar, an alliance of international aid agencies working in the country, says the international community has pledged $25bn to Afghanistan since 2001 but only $15bn has been delivered. The US is the biggest donor but is also responsible for one of the biggest shortfalls. The US delivered half of the $10.4bn it committed between 2002 and 2008, according to the Afghan government, today's report says. Over the same period the European commission and Germany distributed less than two-thirds of their respective $1.7bn and $1.2bn commitments while the World Bank distributed just over half of the $1.6bn it committed. Britain pledged $1.45bn and distributed $1.3bn.

The report estimated that 40% of the aid money spent in Afghanistan has found its way back to rich donor countries through corporate profits, consultants' salaries and other costs, inflating the cost of projects. Some 90% of all public spending in Afghanistan comes from international aid. The huge shortfall hinders efforts to rebuild infrastructure damaged by war and the delivery of essential services, the report says.