Switzerland donates to Afghan reconstruction fund

Afghan interim leader, Karzai, has called on countries to cancel Afghanistan's debt Keystone

Switzerland has joined a group of nations that have pledged $3 billion for the reconstruction of Afghanistan.

At a conference in Tokyo on the rebuilding of war-torn Afghanistan, Switzerland said it would donate SFr30 million ($18.5 million) over 2002 and 2003 – mainly for humanitarian work and reconstruction.

More than 60 countries are attending the two-day conference in Tokyo.

Initial donations were pledged by delegates and by 20 international organisations gathered in the Japanese capital, Tokyo, on Monday for two days of talks on the financing of war-torn Afghanistan.

The United States has pledged $296 million for 2002, while Japan has offered $500 million, which is to be spread over the next two and half years. The EU has also agreed to put up $487 million, with European Commission saying it aimed to provide a total of €1 billion ($885 million) over the next five years.

In addition to funding 20 per cent of the EU donation, Britain is giving $288 million over the next five years. Germany is also pledging a further $283 million over the next four years.

Managing a fund

The creation of a special fund for the country is also under discussion, which would be jointly managed by the World Bank, the Asian Development Bank, and the United Nations Development Programme (UNDP).

The World Bank has proposed contributing $500 million over the next 30 months, with an added $50-70 million in immediate grants. The funding is still subject to the approval of Bank’s member country shareholders.

The World Bank and the United Nations Development Programme (UNDP) has said that at least $15 billion would be needed over the next ten years to rebuild Afghanistan.

The Afghan delegation in Tokyo said it was “satisfied” with the initial donations, despite the interim government in Kabul having cited a figure of between $35-45 billion over the next ten years for reconstruction costs.

The head of the interim administration, Hamid Karzai, has also called on the international community to cancel the debt accrued by former regimes in Kabul and to reintegrate the country in international financial institutions as rapidly as possible.

Karzai also admitted that there were “legitimate questions” over whether the impoverished nation could absorb the sudden influx of funds.

swissinfo