An Alternative Funding Theory – a Metatheory – for Afghanistan

Abstract

The World Bank ceased operation after the Taliban takeover of Kabul, where posed sanctions by the United States made significant difficulties in processing international transactions due to the Central Bank’s restrictions on capital outflows. Unavailability of the fund and physical cash for running of health projects pushes the country into significant health and humanitarian crises. According to a contract between Global Fund and NGOs, the UNDP intended to transfer 80% of the fund in the first week of the month; however, NGOs could receive only 10% of the contract price and withdraw approximately 1.5% of the contract price in three weeks. The paper used a scoping review method to review all past and possible theories in the funding of the Afghanistan health system. The study considers a metatheory that involves funding mechanisms and theories, and feasible practices in the contexts of Afghanistan. We have found some main approaches in the humanitarian support projects since 1996. They are cash-based theory in all transactions in the absence of banking system, cash-based and banking theory during the transition and Islamic republic government, banking theory in the very last period through Afghanistan Reconstruction Trust Fund, and back to cash-based and hawala system under the current Taliban regime. The scoping review proposes using both banking and cash-based approaches. The theory suggests that donors transfer a certain amount of funds through bank transfer to the NGO, where NGOs also use transfers to procure necessary supplies and services. Meanwhile, it suggests that donors deposit (in cash) a certain amount of funds to the NGO to allow procurement at the provincial levels where local markets require money in exchange for their goods and services.