Japan Social Development Fund The Japan Social Development Fund (JSDF) is funded by the Government of Japan and administered by the World Bank. Special Window for Afghanistan March 2007 The World Bank THE GOVERNMENT OF JAPAN The Japan Social JSDF in Afghanistan Development Fund In March 2002, the Government of Japan agreed with the The Japan Social Development Fund (JSDF) was established World Bank to set up a special window within the JSDF to by the Government of Japan and the World Bank in June support activities in Afghanistan under a three year pro- 2000 as a mechanism for providing direct assistance to the gram of assistance. Activities have supported the country’s poorest and most vulnerable groups in eligible member reconstruction and transition toward political, economic countries of the World Bank Group, while fostering long- and social stability. The special window has provided sup- term social development. JSDF grants target initiatives that port for both project and capacity building grants with a provide rapid results in poverty alleviation and foster the total value to date of US$ 50 million (JP¥ 5,890 million). The direct participation of NGOs, community groups and civil grants have been in the area of rural access and employ- society. ment, community development, micro-entrepreneurship The main purposes of the JSDF are to and finance and healthcare. National Solidarity Program (i) support innovative programs which directly respond to the needs of the poorest and most vulnerable groups in The National Solidarity Program (NSP) is the largest ever society; effort to empower and develop the historically neglected (ii) provide rapid and demonstrable benefits which can be rural areas by giving grants to locally elected bodies to build sustained, to the poorest and most vulnerable groups; small scale infrastructure of the people’s own choosing. and This is the only government program to have reached all (iii) build capacity, participation and empowerment of civil the country’s 34 provinces, touching the lives of 13 million society, local communities and NGOs. villagers. It has achieved this despite working in extremely difficult terrain under uncertain security conditions, often in remote communities with high levels of illiteracy. The Table 1: JSDF active and closed projects Project name Signed Grant Value US$m Closed Projects NGO Support Program 7/17/02 2.00 Capacity Building for National Solidarity Program 11/27/02 1.48 Health Sector Emergency Reconstruction & Development 4/3/03 0.50     $3.98 Active Projects Creating Future Potential micro-Entrepreneurs 9/6/03 2.80 First Microfinance Bank of Afghanistan 11/18/03 0.70 National Emergency Employment Program for Rural Access 8/28/04 19.60 Emergency National Solidarity Program 4/10/05 25.90 $49.00 program is now being extended to cover a further 4,000 Since its inception in 2002 under the JSDF-financed Emer- communities across the country. gency Community Empowerment Project, the National Ru- ral Access Program has rehabilitated about 8,000 km of rural The National Solidarity Program has roads throughout the country to an all-weather standard and touched the lives of 2 out of 3 rural has connected over 3,000 villages to town centers. The rural people road network is estimated at 30,000 km and the rehabilita- ª 20,000 communities have consultative local governance tion works, to-date, have returned more than 25 percent of institutions the network to maintainable condition. The program also ª Many rural communities have benefited from small provided around 13 million labor-days of employment. infrastructure projects of their choosing JSDF has allocated $19.6 million to the DDR & RLS ª 28% of the population now has access to drinking water (Disarmament, De-mobilization and Reintegration & Rural and improved sanitation Livelihoods Support) component of the program. JSDF ª 25% have better roads to access markets and services funding has been used to target ex-combatants and rural ª 18% have better irrigation systems poor—two particularly disadvantaged beneficiary groups ª 16% now have access to power that stand to benefit greatly from employment opportuni- ª 11% of children study in reconstructed schools ties, skills training and rural access. So far 2,188 ex-officers, ª The program employed some 4,000 Afghan nation- ex-soldiers, ex-combatants, and rural poor have received als; skills of 600,000 local council members have been training in construction supervision, construction manage- developed ment, and craft skills. JSDF has made three contributions to NSP with a cu- Health Sector Emergency Reconstruction & Development mulative total of $29 million. A JSDF grant in 2002 for the NGO Support Program helped pioneer the approach taken The Health Sector Emergency Reconstruction and Develop- under this successful program. Since then, JSDF funds have ment Project is helping to expand delivery of high-impact supported the piloting of the approach, capacity-building basic health services and ensure equitable access, particular- for communities and implementing partners and the scale ly for women and children in underserved rural areas. It has up of the program. contributed to ensuring that 82 percent of the population The NSP builds on lessons learned from the JSDF funded has access to primary health care. Independent evaluation NGO Support Program of $2 million, which for the first indicates that the quality of care had improved significantly time ever in Afghanistan established an operational part- and the number of patients served has more than tripled. nership between NGOs and the government. The percentage of women receiving prenatal care has in- creased from 5% in 2003 to 78% in 2006.The project has also National Emergency Employment helped ensure the Ministry of Public Health’s stewardship Program & Rural Access over the sector through a greater role in healthcare financ- The Government of Afghanistan (GoA) attaches a high ing, the coordination of partners, and oversight of NGOs. priority to improving rural accessibility and has been JSDF provided support to the start-up at a critical stage in promoting the reconstruction of rural access infrastructure its development. The objectives of the grant were to: (i) im- since 2002. This effort was part of the government’s social prove the delivery of basic health services such as immuni- protection agenda and aimed to create employment while zation, maternal care, and family planning, in under served also rehabilitating rural roads. areas of the country by strengthening the ability of the Min- istry of Public Health to work systematically with NGO’s; targets, remained profitable, and successfully expanded (ii) establish and manage performance based partnership access to finance through the growth of its microfinance agreements; and (iii) enhance the institutional capacity of portfolio. FMBA has disbursed a total of 13,581 loans the MOPH by improving communication between the Min- worth $19.6 million. Today, 18 percent of FMBA’s clients istry of Public Health’s central and provincial offices. are women; FMBA will increase its group lending activities, The grant financed the first four consultants who became which are expected to reach more women entrepreneurs. the core of the Grants and Contract Management Unit of In this way, the grant has supported an increasingly the ministry which is responsible for ensuring effective competitive sector. There are currently 13 licensed microfi- implementation. The grant also financed an international nance institutions in the country, including FMBA, of which consultant who helped establish the framework in which the BRAC Afghanistan, the largest Afghan MFI, and FINCA are contracts with the NGOs were established. It also supported considered to be FMBA’s largest competitors. With the en- Provincial Health Directors workshops and increased the try and development of more microfinance institutions and connectivity available to ministry staff working in the field. banks lending to small businesses over the last few years, The grant’s impact has been an improvement in the capac- Afghanistan has demonstrated great potential for further ity of the ministry and improvement of the communications development in the financial sector and hence increased between the central ministry and its provincial offices. private sector development. Creating Future Potential Micro- About the donor and the Bank Entrepreneurs The Government of Japan is the sole contributor to the With JSDF support the Ministry of Labor and Social Affairs JSDF. The World Bank Group and grant beneficiaries contracted three Afghan NGOs to provide vocational train- express their appreciation to the Government and ing for out of school youth in computer literacy, carpentry, people of Japan for their generosity and commitment electrical works, welding, plumbing, hair-dressing in four to a shared vision of poverty reduction and effective provinces. The program is working with boys and girls aged development assistance. between 12 and 28 years. Construction of the four youth The World Bank’s primary focus is to help the poorest centers in Faryab, Kandahar, Kabul, and Mazar has been people through its development assistance. The Bank completed. Over 16,680 young boys and girls are being works in more than 100 developing countries, bringing trained in vocational skills by the ministry and by the NGOs. finance and technical expertise to help countries reduce First Microfinance Bank of poverty and achieve sustainable and equitable growth. Afghanistan (FMBA) Within client countries, the Bank works with public and private sector agencies and non-government organiza- FMBA was the first licensed microfinance institution after tions to formulate and deliver assistance strategies. the fall of the Taliban. JSDF funds have helped support the initial capacity building of FMBA to enable it to provide Contact: financial services to the poor and underserved. With the grant funds FMBA was able to install a management infor- The World Bank mation system and train its staff on administering banking 1818 H Street, N.W. operations including the use of MIS. Washington D.C 20433 USA Access to finance has increased for the underserved: www.worldbank.org/jsdf Since the start of operations, FMBA has exceeded initial email: jsdf@worldbank.org