Country Report Afghanistan January 2011

Outlook for 2011-12: Policy trends

Both the Afghan government and the international donors and agencies that provide it with financial and security support will focus on economic development in 2011-12. Recent meetings between Afghanistan and its donors have emphasised the provision of basic services, such as electricity and education. There is likely to be a growing emphasis on the need to move Afghanistan's public finances on to a more sustainable long-term path. The government continues to make slow but measurable progress in the area of economic reform. Land registration-a major impediment to business, owing to delays and competing claims-and privatisation efforts are also likely to see only slow progress. The IMF will continue to provide support for policies aimed at containing non-security recurrent spending.

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