According to many observers, themost serious challenge facing Afghans and Afghanistan today remains the lack of security. Most observers agreeon the need for substantial, long-term reconstruction and the need for international support, butquestions are raised about the funds required, the priorities, and the coordination necessary for thisprocess. This report examines U.S. foreign aid to Afghanistan in the context of the internationaleffort and explores the major issues for Congress. As a result of decades of violent conflict, Afghanistan is in great need of substantial reconstruction, from roads and schools to a broad range of development projects encompassing thewhole country. According to USAID, the decades of civil war and proxy regional war have createdfour intertwining and competing economies in Afghanistan. Effective reconstruction assistance could reconfigure these economies, reduce the war and drug economies, and provide incentives for viable economic growth. Humanitarian Assistance. (10)
According to the Afghan government, the United Nations, and international NGOs, the lack of security remains the most serious challenge. (16)

		Reconstruction Goals

The international recovery and reconstruction effort in Afghanistan is immense and complicated, with the Afghan government, numerous U.N. agencies, bilateral donors, manyinternational organizations, and countless NGOs working to help Afghanistan. The internationalcommunity and the Afghan government have sought to establish a common set of goals in order toutilize donor funds most effectively. New Coordinating Institutions. (34)

	Funding

		International and U.S. Funding Levels

Areas of concern include whether the funding levels to Afghanistan are adequate and whether funding is being used for reconstruction. Donor countries have committed $1.7 billion and, from that, disbursed $1.5 billion. Reconstruction Programs

Government Capacity Building. (62)
Women's Programs. (70)
Road Construction. Agricultural Rehabilitation. Urban Reconstruction. Energy. Education. Health. Communications and Media. Funding

In March 2003, the next major donor conference for Afghanistan will take place.
Afghanistan has taken the first step toward reconstruction. According to many observers, the most serious challenge facing Afghans and Afghanistan today remains the lack of security. Mostexperts agree on the need for substantial, long-term reconstruction with international support, butquestions are raised about the funds required, the priorities, and the coordination necessary for thisprocess. This report examines U.S. foreign aid to Afghanistan in the context of the internationaleffort and explores the major issues for Congress.
As a result of decades of violent conflict, Afghanistan is in great need of substantial reconstruction, from roads and schools to a broad range of development projects encompassing thewhole country. Decades of civil war and proxy regional wars have created four intertwining andcompeting economies in Afghanistan revolving around war, drugs, agriculture, and humanitarian aidthat drive conflicting incentives for Afghans and their neighbors. Effective reconstruction assistancecould reconfigure these economies and provide incentives for viable economic growth.
The international recovery and reconstruction effort in Afghanistan is immense and complicated, with the Afghan government, numerous U.N. agencies, bilateral donors, manyinternational organizations, and countless non-governmental organizations (NGOs) working to helpAfghanistan. The international community and the Afghan government have sought to establishcoordinating institutions and a common set of goals in order to utilize donor funds most effectively. Officially, international assistance is coordinated through the United Nations Assistance Mission inAfghanistan (UNAMA), though there are other coordinating institutions tied to the Afghangovernment.
Donor countries have committed $1.7 billion and, from that, disbursed $1.5 billion. Key areas of concern include whether the funding levels to Afghanistan are adequate and how much is beingused for reconstruction. Some have argued that the majority of FY2002 funds-as much as 70%-went towards humanitarian aid.
The next major donor conference for Afghanistan will take place in March 2003. Some of the major reconstruction programs are government capacity building, women's programs, employmentgeneration, road construction, agricultural rehabilitation, urban reconstruction, energy, education,health, communications, and media. There is concern about creating enough momentum behindreconstruction initiatives in the short term and sustaining international focus on Afghanistan in thelong term, particularly in light of a possible war in Iraq. This report will be updated as eventswarrant.