Afghan aid shortfall 'undermines peace'

Afghanistan is facing a £5 billion shortfall in promised aid, according to aid agencies.

The Agency Coordinating Body for Afghan Relief (ACBAR) said peace has been undermined by Western nations' failure to deliver promised aid.

It also feared as much as 40 per cent of funds that do reach the country return to the West in profits and salaries.

Afghanistan relies on international aid for 90 percent of its spending as it tries to rebuild state institutions shattered by nearly 30 years of war and at the same time fight off a renewed Taliban insurgency that killed 6,000 people last year.

The US military alone now spends some £50 million a day fighting Taliban insurgents in Afghanistan, but spending on aid by all donors since 2001 amounts to only £3.5 million a day.

The international community has pledged to spend some £12.5 billion on reconstruction and development in Afghanistan.

But, the report said: "just £7.5 billion in aid has so far been spent, of which it is estimated a staggering 40 percent has returned to donor countries in corporate profits and salaries".

While there are problems delivering development to Afghanistan due to poor security, government corruption and the ability of the country to absorb aid, major donors have fallen far behind on their pledges, ACBAR said.

The United States, by far the biggest donor, has paid out only half of the £5 billion it committed in aid to Afghanistan for the period 2002-2008.

The Asia Development Bank and India have only paid a third of their pledged assistance for the same period.

The UK has delivered £94.5 million less aid to Afghanistan than it has pledged, according to the report.

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