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Governance and State Effectiveness

2019 Incentive Program Development Policy Operation

Our Goal

The development objectives of the 2019 Incentive Program Development Policy Operation for Afghanistan are: (i) strengthening the policy framework to support state effectiveness, private investment, and social inclusion; and (ii) improving the policy and institutional framework for public financial management.

How We Deliver

The operation seeks to support policy continuity and macroeconomic stability through this period of heightened uncertainty. Policy reforms supported by the operation are intended to help manage risks through: (i) maintaining momentum on core reforms to support self‐reliance and economic development; (ii) ensuring continued availability of resources for core government functions through revenue and expenditure reforms; and (iii) supporting increased transparency in revenue performance and cash management to enhance accountability to citizens, inform policy dialogue with development partners, and provide early warning to government and the international community in the case of economic disruption. 

The operation is co-financed with $100 million IDA grant.


The operation is expected to lead to:

  1. Increased use of electronic money systems, including for the payment of taxes
  2. Application of improved processes for appointment of civil servants and an increase in the number of female civil servants
  3. Expansion of credit registry coverage; iv) reduced time and cost to acquire an electricity connection
  4. Progress towards implementing an administrative system for land management
  5. Clear institutional responsibility for management of irrigation systems
  6. Application of economic and gender analysis in selection of development projects
  7. Tax administration and policy improvements
  8. Increased fiscal transparency on revenues and cash management.