Afg Strengthening Institutions DPG

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The Strengthening Institutions Development Policy Grant (DPG) Program supports the implementation of the Government of Afghanistan (GoA) medium-term development strategy within the context of a satisfactory macroeconomic framework. The DPG will be a stand-alone operation in response to an increased level of uncertainty in Afghanistan that could impact the Government's commitment to a multi-year reform program. Presidential elections are planned for August 2009, to be followed by parliamentary elections in 2010. The DPG will follow broadly the core development objectives of the Programmatic Support for Institution Building (PSIB) series: (i) improve fiscal policy and planning, and public financial management, and (ii) strengthen public administration reform, including sub-national administration. The DPG will continue supporting these two objectives, while adding a third one: (iii) increase transparency and accountability in the management of public finances. This objective contributes to the Government's efforts to address weak governance and corruption. The purpose of the DPG is to secure sound macroeconomic management and fiduciary standards for all resources channeled through the Afghan core budget including funds from the World Bank and the Afghanistan Reconstruction Trust Fund (ARTF). The DPG is aiming at providing synergies to other parts of the Afghanistan portfolio, including investment projects, analytical work, and the ARTF administration.