SPEAKERS       CONTENTS       INSERTS    
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26–441PDF
2006
AFGHANISTAN: PROGRESS REPORT

JOINT HEARING

BEFORE THE

SUBCOMMITTEE ON THE MIDDLE EAST
AND CENTRAL ASIA

AND THE

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

OF THE

COMMITTEE ON
INTERNATIONAL RELATIONS
HOUSE OF REPRESENTATIVES

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

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MARCH 9, 2006

Serial No. 109–153

Printed for the use of the Committee on International Relations

Available via the World Wide Web: http://www.house.gov/internationalrelations

COMMITTEE ON INTERNATIONAL RELATIONS

HENRY J. HYDE, Illinois, Chairman

JAMES A. LEACH, Iowa
CHRISTOPHER H. SMITH, New Jersey,
  Vice Chairman
DAN BURTON, Indiana
ELTON GALLEGLY, California
ILEANA ROS-LEHTINEN, Florida
DANA ROHRABACHER, California
EDWARD R. ROYCE, California
PETER T. KING, New York
STEVE CHABOT, Ohio
THOMAS G. TANCREDO, Colorado
RON PAUL, Texas
DARRELL ISSA, California
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JEFF FLAKE, Arizona
JO ANN DAVIS, Virginia
MARK GREEN, Wisconsin
JERRY WELLER, Illinois
MIKE PENCE, Indiana
THADDEUS G. McCOTTER, Michigan
KATHERINE HARRIS, Florida
JOE WILSON, South Carolina
JOHN BOOZMAN, Arkansas
J. GRESHAM BARRETT, South Carolina
CONNIE MACK, Florida
JEFF FORTENBERRY, Nebraska
MICHAEL McCAUL, Texas
TED POE, Texas

TOM LANTOS, California
HOWARD L. BERMAN, California
GARY L. ACKERMAN, New York
ENI F.H. FALEOMAVAEGA, American Samoa
DONALD M. PAYNE, New Jersey
SHERROD BROWN, Ohio
BRAD SHERMAN, California
ROBERT WEXLER, Florida
ELIOT L. ENGEL, New York
WILLIAM D. DELAHUNT, Massachusetts
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GREGORY W. MEEKS, New York
BARBARA LEE, California
JOSEPH CROWLEY, New York
EARL BLUMENAUER, Oregon
SHELLEY BERKLEY, Nevada
GRACE F. NAPOLITANO, California
ADAM B. SCHIFF, California
DIANE E. WATSON, California
ADAM SMITH, Washington
BETTY McCOLLUM, Minnesota
BEN CHANDLER, Kentucky
DENNIS A. CARDOZA, California
RUSS CARNAHAN, Missouri

THOMAS E. MOONEY, SR., Staff Director/General Counsel
ROBERT R. KING, Democratic Staff Director

Subcommittee on the Middle East and Central Asia
ILEANA ROS-LEHTINEN, Florida, Chair

STEVE CHABOT, Ohio, Vice Chair
THADDEUS G. McCOTTER, Michigan
JOHN BOOZMAN, Arkansas
CONNIE MACK, Florida
JEFF FORTENBERRY, Nebraska
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JO ANN DAVIS, Virginia
MIKE PENCE, Indiana
KATHERINE HARRIS, Florida
DARRELL ISSA, California

GARY L. ACKERMAN, New York
HOWARD L. BERMAN, California
JOSEPH CROWLEY, New York
SHELLEY BERKLEY, Nevada
ADAM B. SCHIFF, California
BEN CHANDLER, Kentucky
DENNIS A. CARDOZA, California
RUSS CARNAHAN, Missouri

YLEEM POBLETE, Subcommittee Staff Director
YEVGENY GUREVICH, Professional Staff Member
DAVID ADAMS, Democratic Professional Staff Member
LEE COHEN, Staff Associate

Subcommittee on Oversight and Investigations
DANA ROHRABACHER, California, Chairman
EDWARD R. ROYCE, California
JEFF FLAKE, Arizona, Vice Chairman
MARK GREEN, Wisconsin
MIKE PENCE, Indiana
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JOE WILSON, South Carolina

WILLIAM D. DELAHUNT, Massachusetts
HOWARD L. BERMAN, California
BETTY McCOLLUM, Minnesota
ADAM B. SCHIFF, California

GREGG RICKMAN, Subcommittee Staff Director
GREGORY MCCARTHY, Professional Staff Member
CLIFF STAMMERMAN, Democratic Professional Staff Member
EMILY ANDERSON, Staff Associate

C O N T E N T S

WITNESSES

    The Honorable Maureen E. Quinn, Coordinator for Afghanistan, Bureau of South and Central Asian Affairs, U.S. Department of State

    The Honorable James R. Kunder, Assistant Administrator, Bureau for Asia and the Near East, U.S. Agency for International Development

    Rear Admiral Robert T. Moeller, USN, Director, Plans and Policy, U.S. Central Command

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LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING

    The Honorable Maureen E. Quinn: Prepared statement

    The Honorable James R. Kunder: Prepared statement

    Rear Admiral Robert T. Moeller, USN: Prepared statement

AFGHANISTAN: PROGRESS REPORT

THURSDAY, MARCH 9, 2006

House of Representatives,
Subcommittee on the Middle East  
and Central Asia, and      
Subcommittee on Oversight and Investigations,
Committee on International Relations,
Washington, DC.

    The Subcommittee met, pursuant to notice, at 10:37 a.m. in room 2172, Rayburn House Office Building, Hon. Ileana Ros-Lehtinen (Chairwoman of the Subcommittee) presiding.

    Ms. ROS-LEHTINEN. Our joint hearing will come to order. I am so very pleased that Mr. Ackerman and I are holding this joint hearing of our Middle East and Central Asia Subcommittee with Congressman Rohrabacher's Oversight and Investigations Subcommittee. So thank you to all the staff, who have done a great job in this great meeting of the minds.
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    A few weeks ago, as all of us know, the President submitted to Congress a multi-billion dollar emergency supplemental request, which called for funding for a number of efforts in Afghanistan. It will be on the Floor next week, and it was marked up in the Appropriations Committee yesterday.

    This is in addition to the regular budgetary request for the next fiscal year. It is therefore incumbent upon us as the authorizing Committee to, 1) evaluate the status of developments across all priority areas, and 2), exert oversight over United States assistance programs to Afghanistan.

    As part of that effort, I recently led a congressional delegation to Afghanistan, where I was struck by the progress that the Afghan Government is making toward establishing a fully democratic society.

    It is difficult to imagine that a mere 5 years ago the Taliban regime was thriving in this nation, exporting terrorism, and calcifying archaic extremism. Today, media, cultural, business, and political leaders, are free to meet, to discuss, to demonstrate, and guide policies that are reforming their nation's economy, are opening up the political process, and liberating society from the fundamentalist laws which enslaved their nation.

    And to ensure that Afghanistan continues along this trajectory, the government is seeking to implement the Afghan Compact, a commitment to achieve specific goals relating to security, the rule of law, human rights, economic development, and narcotics trade, within 5 years.
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    Some of the critical benchmarks include systematic and far-reaching reform of judicial institutions, legal practices and laws. Secondly, rural development, including road development and sanitation, rapid expansion of fiscal infrastructure as a basis for economic growth and political stability, enhancement of government financial management, and domestic revenue collection, and implementation of the national action plan for women are also of high importance.

    And on this point, I would like to highlight an experience that I had during my trip to Afghanistan, because it clearly shows the progress of our efforts at capacity building.

    The members of our delegation witnessed the signing ceremony where USAID (United States Agency for International Development) transferred authority to the Afghan Ministry of Women's Affairs for the accelerated learning program. And it was a very emotional meeting. It was a momentous occasion to be with the women of Afghanistan in that ceremony.

    And this compact also includes efforts to address the counternarcotics problem, which has had such a destablizing impact on security and is an impediment to real and enduring progress.

    On this issue, our delegation conveyed our concerns to the Afghan tribal leaders concerning the ongoing narcotics trade, which supplies almost 90 percent of global opium and heroin. And we must not only address the involvement of some Afghan officials in the narcotics trade, but also urge our NATO (North Atlantic Treaty Organization) allies that are very present in that area to do more to address this problem. This is all tied into the economic and political reconstruction of Afghanistan, and we should not and we must not look at narcotrafficking, or the security situation, in a vacuum, devoid of other considerations.
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    And to achieve success on these fronts, we have got to follow up with a multi-dimensional strategy that integrates other aspects of the Afghan Compact. I look forward to hearing from our witnesses today on our plans to implement such an approach.

    Afghanistan was the first foreign front in our campaign to eradicate terrorism, and the success that we have had in fighting the Taliban and establishing the democratic government there is so undeniable. But our job is not complete.

    It will require sustained commitment from the international community, not just from the United States, but all donor nations. A fully democratic, stable, secure, and prosperous Afghanistan is necessary, just, and obtainable. And as such, we must ensure that our programs and our assistance are carefully crafted to ensure this positive outcome.

    And I would like to turn to if I might, Mr. Ackerman, to the Chairman of the Oversight and Investigations Subcommittee, Congressman Dana Rohrabacher. As I said, this is a joint hearing of our Middle East and Central Asia Subcommittee, along with the Subcommittee on Oversight and Investigations. Chairman Rohrabacher.

    Mr. ROHRABACHER. Well, thank you very much, Madam Chairman, and welcome to all of you. This is not just a hearing, but a hearing of great importance, because Afghanistan still remains a pivotal country to the future of the United States of America, and to the Western world.

    And so often in the past, this has been ignored or forgotten, and we have done that at our peril. During the Cold War, of course, when the Soviet Union saw Afghanistan as a weak point in, let us say, the line of defense against the expansion of Communism, we paid an awful price, and the Afghans paid an awful price, for that miscalculation on the part of the Soviets.
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    In fact, the Soviet invasion in Afghanistan led to a horrific cost of human life, but it also lent itself to the end of the Soviet Union, and the end of Soviet Communism. So we have gratitude and appreciation that we need to express to the people of Afghanistan, because after that horrific battle against the Soviet Union, the United States basically walked away from Afghanistan.

    And after a period of chaos and confusion, the United States acquiesced, if not partnered, with Pakistan and Saudi Arabia, in the creation of another monster, the Taliban. And here again our destinies were linked to that of the Afghan people and the Cold War.

    And as the Taliban took over Afghanistan, again with our acquiescence, I was one of the few people here at that time spreading the alarm that this would come back to hurt us, and it did in a big way.

    And let us note that after 9/11 that our greatest ally in the war against terrorism is often overlooked. Who was our greatest ally in the war against terrorism after 9/11? It was the people of Afghanistan.

    The people of Afghanistan—too many Americans make the mistake of saying that Americans liberated Afghanistan from the Taliban. We did not. There were maybe 200 troops in the country at that time. The people of Afghanistan, perhaps some of the most religious people in the world, threw off radical Islam, and joined with those people who had wanted to be friends of the Western world and the United States of America, and we defeated this evil force.

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    And that was pivotal to our success in the war against terrorism. Now it is up to us, just as after the war with the Soviets when we walked away, to learn from that mistake, and never consider walking away from the Afghan people again before we do our duty and help them rebuild their society so that they can have a prosperous and a secure future.

    If we do not, it will come back again to hurt the United States of America. The job that we are doing there is the subject of this hearing. So this hearing is vital, vital to an understanding of how we are doing in the war with radical Islam, or the war on terrorism, however you want to describe it.

    So I am looking forward to today, Madam Chairman, and thank you very much for holding this hearing, and let us commit ourselves, as we did during the Cold War, to victory over our enemies, and making a better world; and in this war against terrorism, victory over our enemies, and helping our allies, especially the people of Afghanistan, to make a better world for them and their families. Thank you very much.

    Ms. ROS-LEHTINEN. Amen, Dana. Thank you so much. And now I am pleased to recognize the two Ranking Members of the Middle East and Oversight and Investigations Subcommittees, starting with Mr. Ackerman, and then Mr. Delahunt. Gary.

    Mr. ACKERMAN. Thank you very much, Madam Chair. Let me thank both Subcommittee Chairs for their great work that they have been doing, especially in this area, and for having this hearing jointly.

    You, Madam Chair, my Chair, have worked so diligently on this and so many other issues in a series of hearings that we have had, and Chairman Rohrabacher, I think we all owe you a debt of gratitude, and recognize the hard dedicated work that you have done over a very long period of years on the issue of Afghanistan specifically.
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    I remember quite well when I chaired the Committee and you were a young Member on it, pounding away at this issue, and being a lonely voice through several Administrations, and being critical of policies, and raising those issues.

    So I am very pleased today, I have to say, that we are at this moment exercising our oversight responsibilities over the Administration. And I can only hope that the Subcommittees next turn our attention from an oversight point of view to Iraq, where the Special Inspector General has found tens of millions of dollars in waste, fraud, and abuse, in the reconstruction project.

    And with that country teetering on the brink of a full-scale civil war, I think that we must from a policy perspective examine what is going on—that investigation is also long overdue.

    Turning to the subject of today's hearing, I think one can fairly say that the political process in Afghanistan has been successful. Two elections, where the vast majority of Afghans risked death in order to vote, is both inspiring and a measure of how much they want the democratic process to work.

    But before we dig out the final mission accomplished banner, I think there is still some serious, important, and dangerous work yet to be done. Last week's testimony by Lieutenant General Maples, the Director of the Defense Intelligence Agency, states, ''insurgents now represent a greater threat to the expansion of the Afghan Government and its authority than at any point since late 2001.''
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    That is a very sobering reminder of just how far Afghanistan is from being a safe, secure, and stable nation, and more importantly, that the trajectory of the conflict is heading in the wrong direction.

    2005 was the deadliest year for United States troops in Afghanistan since the war began. Insurgents have regrouped, reorganized, and modified their tactics to go after soft targets instead of confronting coalition forces directly.

    Given the resurgence of the Taliban and its al-Qaeda allies, I think we should question whether expanding the role of NATO in Afghanistan at this point is wise. I believe that NATO still lacks the will and capacity to take the fight to the insurgents.

    I fear that they see themselves much more about stabilization and security, rather than counterinsurgency. That leaves a gap to be filled that I am not certain can or will be filled by the newly minted Afghan army.

    For example, coalition forces have recently been operating across the Pakistani border in an effort to root out insurgent bases there. Will NATO forces pursue the insurgents across the border? Will Afghan forces do that?

    Along with the renewed insurgency, there is the ever growing problem of drug trafficking, as the Chair points out. But both the United Nations and the United States estimate that narcotics trafficking is equal to almost 60 percent of Afghanistan's GDP (Gross Domestic Product).
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    As our witnesses, who I am anxious to hear, know, last year's international narcotics strategy report described Afghanistan as ''on the verge of becoming a narcotics state.''

    Since this is a clear source of funding for the insurgents and others who oppose the Government in Kabul, it is well past time for the international community and the Afghan Government to get on the same page regarding an effective way to combat a menace every bit as grave as the Taliban.

    All this obviously has an impact on the reconstruction in Afghanistan. The first order of business for governments is to provide law and order. That is the second order of business, and the third order of business as well.

    After that everything that governments should do can be undertaken. The deteriorating security environment in Afghanistan puts at risk everything else that we and the Afghans are trying to accomplish.

    Again, I thank both Chairs, and I look forward to hearing from our distinguished witnesses.

    Ms. ROS-LEHTINEN. Thank you so much. Mr. Delahunt.

    Mr. DELAHUNT. Yes, thank you. I will try to be brief, and I want to commend Chairman Rohrabacher for an earlier hearing. We began at 8 o'clock in the morning, but it was worth getting up for.
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    We had an impressive group of panelists. I noted that Mr. Kunder was here listening. I am sure that he was taking notes. It was a very, I think, unvarnished assessment of the realities that exist.

    It was clear that we have considerable challenges ahead of us. I think there was uniform opinion among the panelists that we are at a crossroads now, and a crossroads that will either allow Afghanistan to revert to a failed state, which would bring us back to the same conditions that existed prior to 9/11—or we can choose to again work in a multilateral fashion to secure improvement, with a recognition that it will take a long term, sustained commitment on the part of this Administration, succeeding Administrations, and this Congress, as well as future Congresses.

    In the testimony of one of the panelists, he makes the observation that some Afghan officials say the world thus far has put Afghanistan on life support, rather than investing in a cure.

    He suggested that we tally up the current conditions. Let me read some of them into the record, because these are our challenges:

''An ever more deadly insurgency, with sanctuaries in neighboring Pakistan, where leaders of al-Qaeda and the Taliban have found refuge. . . .''

We have to address with the Pakistani Government that tragic reality.

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''. . .  a corrupt and ineffective Administration, without resources, and a potentially dysfunctional Parliament; levels of poverty, hunger, ill-health, illiteracy, and gender inequality, that puts Afghanistan near the bottom of every global ranking.

  ''Levels of aid that have only recently expanded above a fraction of that accorded to other post-conflict countries. An economy, an Administration, heavily influenced by drug traffickers.''

    He concludes by saying that by making aid more effective, as agreed by the United States and other donors in London, is the key to addressing those challenges. I am sure that we all concur that the compact, which I have not had an opportunity to examine or analyze, is most likely a blueprint for where we are to be going, and I am sure, and I hope, that the Administration had considerable input.

    It was also mentioned that, in conversations with the Administration, that others, donors, Afghan officials, were told that the United States Congress can be problematic in terms of supporting aid or increasing aid, or increasing, or advocating for world multilateral financial institutions.

    Well, let me assure you, and I know that I am confident that I speak for Congresswoman McCollum, that is not the case, and you are all representatives of the Administration. We want to know what you need to make the blueprint of the compact a reality, because that appears to be the best possible scenario if we all hope to see a new reality in Afghanistan.

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    Let us know what you need, and I am confident that you will find a favorable response from the United States Congress. And I yield back.

    Ms. ROS-LEHTINEN. Thank you so much, and now I am pleased to yield time for his opening statement to Congressman Ed Royce of California, who is the Chair of the Subcommittee on Terrorism and Nonproliferation.

    Mr. ROYCE. Thank you very much. This Committee has had an opportunity to follow over the years the situation in Afghanistan, and we have certainly had some bright spots; the elimination of the Taliban and its regime, and that has given Afghans a chance to live in freedom.

    There has been a dramatic improvement in women's rights. One of the experiences that I certainly remember in Afghanistan is a little school that the Afghan-American community had helped fund for orphans, that managed to stay up in existence throughout the reign of the Taliban clandestinely.

    The headmaster and some of the teachers had, in fact, been caught and tortured for teaching the kids, but it was an operation when I was in Kabul. I had the address and I just wondered since we had been writing checks for a long time in the community, was it there?

    I went into the school and I found that in one of the classrooms that they were teaching math, and they were teaching different disciplines, but one of them was English-speaking, and so I had a chance to ask the students some questions.

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    And this one young man stood up, and I said, ''What do you want to be when you grow up?'' He said that he wanted to be a farmer. And then I asked for other hands, and one young woman raised her hand, and said, ''I want to be a physician,'' and she looked like she was about 9 years old.

    Now these are all orphans. She said I want to go to Kabul University, and train to become a physician. I said, ''Why do you want to do that?'' She said, ''I want to help my people.''

    Now, this was given the fact that we had seen Afghanistan transition from a country where most doctors were women, to one where no doctors were women, and having gone by the Kabul soccer field where women were in fact shot and killed there.

    And since it was a felony to teach your daughters, I do think that regardless of the challenges that it is worth our while to make sure that the resources are there, and that we are engaged there, because in this Committee, we heard testimony from Afghans some 3 or 4 years ago that warned us—4 or 5 years ago, that warned us that because of the terrorist training camps, we would face, and we would ultimately pay a price because of what they were engineering—and what the Taliban and what Osama bid Laden were engineering in preparing people to commit terror in this country. I remember in this Committee stating that we faced a real risk in terms of attacks in the United States given the preparations in Afghanistan.

    We have that responsibility now to see that Afghanistan is put back on a road that is going to be very, very difficult, given what the Taliban did to that society. Very troubling in all of this are reports that Afghanistan could be reverting to its former status as a failed state.
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    That government is still plagued by corruption. The economy is still largely based on drug trafficking. The agricultural sector frankly is heavily dominated by the poppy trade.

    So I am interested to hear from our witnesses just how much progress has been made in the country. I know that we still have a long way to go, but I am curious just how far off we are according to the Administration, and I will close by mentioning that I have long advocated having Afghan-Americans play a role in rebuilding Afghanistan.

    They understand that culture, and they have the skills, and the experience, and they are certainly motivated to help there. So I think their advice should be listened to as we work to stabilize Afghanistan. Thank you very much.

    Ms. ROS-LEHTINEN. Absolutely. Thank you, Congressman Royce. Thank you, Mr. Chairman. Ms. McCollum.

    Ms. MCCOLLUM. Thank you, Madam Chair, and it is with great interest that I look forward to hearing the reports from the panelists. I am concerned about not fulfilling what the expectations were for the Afghan people after they helped, as Mr. Rohrabacher said, rid themselves and helped the United States on the war on terrorism.

    The lack of clean potable water, the lack of electricity, the lack of access for maternal child health improvements, those are basic heart and mind statistics, and if we get that right, they will give us time to get other things right.
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    But if we don't get that right, and if people don't see improvement in that, if they don't see improvement in the economic structure, and if they don't see the politics really making a difference in their lives immediately, then we have not gained the strong foothold that we need in order to have a foundation to move forward on in Afghanistan.

    There are many challenges ahead of us, but what we need to have from this panel is clarity, and not anything cloaked in what we wish is going to happen, and what we think could happen, and what appears to be happening.

    We need to have clarity so that we can move forward together in a positive way with our other government partners, the World Bank, and other partners, in order to really have sustainable, long term, success in Afghanistan. Thank you, Madam Chair.

    Ms. ROS-LEHTINEN. Thank you so much, Ms. McCollum. We have two votes, but we would like to finish with the Members' opening statements. Mr. Fortenberry.

    Mr. FORTENBERRY. Thank you, Madam Chair, for holding this hearing, and in the interest of time, I will defer any statements.

    Ms. ROS-LEHTINEN. Thank you so much. Mr. Issa.

    Mr. ISAA. I will pass.

    Ms. ROS-LEHTINEN. Thank you. Mr. Chandler.
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    Mr. CHANDLER. I yield.

    Ms. ROS-LEHTINEN. Thank you. Mr. Chabot.

    Mr. CHABOT. I will pass.

    Ms. ROS-LEHTINEN. Thank you. Mr. Cardoza.

    Mr. CARDOZA. I pass.

    Ms. ROS-LEHTINEN. Thank you. Then let me just introduce the panelists and then we will adjourn for a little bit and come right back to hear your testimony. We will be hearing from the Honorable James Kunder, the Assistant Administrator for Asia and the Near East, at the United States Agency for International Development, USAID, where he manages the Agency's Middle East and Asia programs.

    Previously from January to May 2002, he was the Director for Relief and Reconstruction in Afghanistan. Mr. Kunder has extensive government and private sector experience in international development.

    Then Rear Admiral Robert Moeller, who serves as the Director of Plans and Policy at the United States Central Command. Previously, he served as Commander, Cruiser Destroyer Group I, Ronald Reagan Strike Group. From May 2001 through August 2003, he served as Deputy Chief of Staff for Operations, Plans, Policy, and Training, and as Director of Operations, Joint Task Force, for the Commander, United States Pacific Fleet. He is a decorated officer, having received numerous accommodations for his distinguished service to our Nation.
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    And then Principal Deputy Assistant Secretary Thomas Schweich. Effective November 28, 2005, Mr. Schweich became the Principal Deputy Assistant Secretary for the Bureau of International Narcotics and Law Enforcement Affairs, and in this capacity, he plays a key role in the management of an annual budget of $2.5 billion, and more than 4,000 people around the world.

    His bureau is responsible for the international drug intradiction and eradication; police, judge, and prosecutor training; fighting cybercrime, money laundering, and international organized crime syndicates, and negotiating international crime conventions, among many other activities. Tom is the author of several books and numerous articles on law, business, economic history, and personal finance.

    And then we have Ambassador Maureen Quinn. Ambassador Quinn is a career member of the Senior Foreign Service, and joined the State Department's Bureau of South Asian Affairs as Coordinator for Afghanistan in August 2004.

    Ambassador Quinn previously served as Ambassador of the United States for the State of Qatar from 2001 to 2004. At the United States Embassy in Morocco from 1998 to 2001, she served first as Deputy Chief of Mission, and then as Charge L'Affairs.

    Ambassador Quinn was a Deputy Executive Secretary in the Department of State from 1997 to 1998; Executive Assistant and Special Assistant to the Under Secretary of Economic Business and Agricultural Affairs from 1994 to 1997; and Economic Counselor at the United States Embassy in Panama in 1991 to 1994.

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    We will consider your testimony as part of the record, without objection, and when we come back, we look forward to hearing from you. So the Subcommittees are temporarily adjourned.

    [Recess.]

    Ms. ROS-LEHTINEN. The joint hearing will start, and we will hear testimony from the Honorable James Kunder, Assistant Administrator, Bureau of Asia and the Near East for USAID. Thank you so much.

    Mr. KUNDER. Thank you, Madam Chairman. I will be glad to go in whatever order the Chair wants. I had assumed that Ambassador Quinn, who is the Interagency Coordinator, and has sort of the capstone testimony, would go first.

    Ms. ROS-LEHTINEN. That would be the right thing to do wouldn't it?

    Mr. KUNDER. Yes, Madam, from my own perspective.

    Ms. ROS-LEHTINEN. What a gentleman. Ambassador Quinn, who is the Coordinator for Afghanistan, Bureau of South and Central Asian Affairs, United States Department of State. Thank you so much, Madam Ambassador.

STATEMENT OF THE HONORABLE MAUREEN E. QUINN, COORDINATOR FOR AFGHANISTAN, BUREAU OF SOUTH AND CENTRAL ASIAN AFFAIRS, U.S. DEPARTMENT OF STATE
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    Ms. QUINN. Well, thank you. Madam Chair, and Mr. Ackerman, and Members of the Subcommittees, thank you for this opportunity to speak today about our progress in helping the nation of Afghanistan become a secure, thriving, and stable democracy.

    Afghanistan's success in the implementation of the political process outlined in the Bonn Agreement from 2001 to 2005, and the establishment of a constitutional, representative, and effective government are noteworthy achievements.

    Afghanistan's progress to date demonstrates that the sacrifices of the Afghan people, the commitment of the new leaders of Afghanistan, and the contributions of the United States and the international community, are advancing us toward our goals.

    In late January 2006, the international community renewed its security, political, and financial commitments to Afghanistan by launching with the Government of Afghanistan the Afghanistan Compact.

    At the London conference, the Government of Afghanistan also launched its interim National Development Strategy, and its updated National Drug Control Strategy. These three documents commit the Government of Afghanistan to reconstruction of the country and improving the lives of the Afghan people, while aggressively fighting the narcotics problem.

    We worked in close collaboration with the Afghan Government and other partners to develop the compact. In London, Secretary Rice announced that since the last donor conference in Berlin, the United States had committed $5.9 billion in reconstruction and security assistance to Afghanistan.
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    The Secretary also announced the Administration's $1.1 billion budget request for Afghan reconstruction for Fiscal Year 2007. These significant sums, alongside other examples of United States-Afghan cooperation, such as our strategic partnership, reflect our long-term commitment.

    The international community strongly supports these efforts as well. In London, the international community pledged multi-year commitments of over $10.5 billion. The Afghanistan Compact states that genuine security remains a fundamental prerequisite for achieving stability and development in Afghanistan.

    In the last few months, we have seen an increase in the use of improvised explosive devices and suicide bombs. While we expect that violence may increase further, we are ready to face these challenges. As Afghanistan succeeds in strengthening its democracy, its institution of governance, and its security forces, Afghanistan will create a secure environment and be a major positive influence on the region.

    Afghanistan stands with us and our coalition partners in the war on terrorism. One of those significant security challenges in Afghanistan is the illicit narcotics trade. President Karzai and the Afghan Government have recognized the gravity of this challenge, as demonstrated by the National Drug Control Strategy, and the new Afghan anti-narcotics law that was enacted in December 2005.

    The United States is supporting the Government of Afghanistan's efforts to eradicate opium poppy cultivation. We are also working with the international community to pursue opportunities for cooperation in areas such as trade, border management, and regional infrastructure integration, which can help stifle the drug trade, and promote sustainable economic development across borders.
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    We cannot ignore the importance of the regional context. Afghanistan's future economic growth and prosperity is contingent on successfully integrating with its neighbors. Today, the men and women of Afghanistan are governing their own country, and charting their course to the future.

    The National Assembly has just finished forming legislative Committees and refining procedural rules. The Government of Afghanistan, with the cooperation and assistance from the United States and other partners, is rebuilding and reforming permanent justice institutions, and expanding civil and criminal capabilities of the Afghan judicial system.

    The challenge of strengthening a legal economy, with opportunities for all Afghan people, should not be underestimated. Good governance begins with a transparent legal framework. A transparent set of laws that are equitably implemented is also one of the best weapons against corruption.

    The United States supports the development of a vibrant private sector as an engine of growth for Afghanistan. Afghanistan has already made great strides in this area. As a result of reforms and sensible economic policies, the IMF (International Monetary Fund) estimates real Afghan GDP growth of 13.6 percent from 2005 to 2006, while Afghan exports are expected to increase from an estimated $300 million last year, to approximately $500 million this year.

    The accomplishments in Afghanistan can be directly attributed to strong United States and international support, to the courageous and determined Afghan people. Our many achievements aside, Afghanistan has more work ahead.
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    This includes taking the next steps necessary to create a sustainable secure environment, strengthen democratic institutions, educate its people, respect and enforce the rule of law and human rights, and develop relations further with its neighbors.

    We thank Congress for its support on Afghanistan. With your future support, the United States will follow through on its commitment to building a secure and democratic Afghanistan, and I would be glad to take your questions. Thank you.

    [The prepared statement of Ms. Quinn follows:]

PREPARED STATEMENT OF THE HONORABLE MAUREEN E. QUINN, COORDINATOR FOR AFGHANISTAN, BUREAU OF SOUTH AND CENTRAL ASIAN AFFAIRS, U.S. DEPARTMENT OF STATE

    Madam Chairman, Mr. Chairman, Members of the Committees, I would like to thank you for this opportunity to speak today about our progress in helping the nation of Afghanistan become a secure, thriving and stable democracy.

    The Department of State is working with Afghan leaders and our partners in the international community to establish an Afghan government that is moderate and democratic, represents the responsible political elements in the country and formed through the participation of the Afghan people, capable of effectively controlling and governing its territory and borders, capable of implementing policies to stimulate economic and social development, and willing to contribute to a continuing partnership with the coalition in the global war against terrorism. We are contributing to the development of an Afghan society that is supported by vigorous and enlightened civil institutions, that respects the rights of all citizens, including minorities and women, and that has a thriving, legal private-sector economy. The United States is working to ensure that Afghanistan is never again a haven for terrorists, a major source of narcotics, a source of instability in the region or a major violator of human rights.
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    Afghanistan's success in the implementation of the political process outlined in the Bonn Agreement from 2001 to 2005 and the establishment of a constitutional, representative and effective government that embodies the aspirations of all Afghans are noteworthy achievements. Afghanistan's progress to date demonstrates that the sacrifices of the Afghan people, the commitment of the new leaders of Afghanistan, and the contributions of the United States and the international community are advancing us toward our goals.

    In late January 2006, the international community renewed its security, political and financial commitments to Afghanistan by launching, with the Government of Afghanistan (GOA), the Afghanistan Compact. At the London Conference, the Government of Afghanistan also launched its Interim-Afghan National Development Strategy (I–ANDS) and its updated National Drug Control Strategy. These three documents commit the Government of Afghanistan to reconstructing the country and improving the lives of the Afghan people while aggressively fighting the narcotics problem. We worked in close collaboration with the Afghan Government and other international partners to develop the Afghanistan Compact.

    In London, Secretary Rice announced that since the last donor conference in Berlin, the United States had committed $5.9 billion in reconstruction and security assistance to Afghanistan. The Secretary also announced the Administration's $1.1 billion budget request for Afghanistan in FY 2007. These significant sums, alongside other examples of US-Afghan cooperation, such as our Strategic Partnership Agreement, are reflective of the long-term commitment the United States attaches to Afghanistan's future development. The U.S. has a direct national security interest in ensuring that Afghanistan is never again allowed to return to its former status as a sanctuary for terrorism, and the Afghanistan Compact is a blueprint designed to keep the country on the path to stability and self-sufficiency.
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    The international community strongly supports these efforts as well. In London, the international community pledged multi-year commitments of over $10.5 billion over the five-year (March 2006–March 2011) Afghan National Development Strategy (ANDS).

    Major new pledges from other donors include: UK ($885 million), Japan ($450 million), Asian Development Bank ($1 billion), and World Bank ($1.2 billion). Germany, the Netherlands, Spain, France, Norway, Sweden, Switzerland, Australia, South Korea, New Zealand, China, Turkey, India and Pakistan also made significant new financial pledges. These commitments, which exceeded the amounts pledged at the last donor gathering in Berlin two years ago, signal a deep commitment and a robust expression of international confidence toward Afghanistan's future.

    Improving aid coordination, effectiveness and efficiency by both the Government of Afghanistan and the international community is also an area of renewed emphasis as we move forward. Through the Afghanistan Compact, Afghanistan, with the underlying support of the international community, has a blueprint outlining benchmarks and timelines for progress in security, governance, economic and social development and counternarcotics. The Compact establishes a Joint Monitoring and Coordination Board that strengthens the coordinating role of the UN and aims to improve coordination and accelerate civilian assistance.

SECURITY

    As the Afghanistan Compact states: ''Genuine security remains a fundamental prerequisite for achieving stability and development in Afghanistan.'' In the last few months we have seen an increase in violence, particularly the use of improvised explosive devices and suicide bombs. While these incidents are alarming and we are concerned that the violence may increase further, we are ready to face these challenges. As Afghanistan succeeds in strengthening its democracy, its institutions of governance and its security forces, Afghanistan will create a secure environment and be a major positive influence on the region. Afghanistan stands with us and our coalition partners in the war on terrorism.
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    The Government of Afghanistan has committed to ambitious, but in our view achievable, security targets in the Afghanistan Compact, including continued growth of the Afghan National Army and Police, the disbandment of illegally armed groups, and increased law enforcement capacity in counternarcotics. The Afghan National Army (ANA) is steadily coalescing into a national defense force and an important tool for President Karzai in his efforts to extend the reach of the national government and curb the power of local warlords and commanders. At about 26,500 strong, the ANA is an ethnically balanced force from all areas of Afghanistan. The force has successfully deployed to quell factional fighting in the north and the west, and has won praise for its capabilities fighting alongside Operation Enduring Freedom (OEF) troops against insurgents in the east and the south.

    Operation Enduring Freedom, a multinational coalition military operation, continues to counter terrorism and bring security to Afghanistan in collaboration with Afghan forces. OEF involves troops from over 19 nations.

    National, border, and highway police are being trained by the U.S. and Germany to provide day-to-day security throughout the provinces and in Kabul. Over 60,000 have now completed at least basic training programs, and thousands more have gone through more advanced training courses in areas such as firearms, crowd control, criminal investigative skills, and domestic violence. Afghanistan and the international community are also commited to enhancing border security, which was highlighted in Doha, Qatar last week. Improved border security will reduce the illegal flow of people, arms, and narcotics. It will also increase the flow of customs revenues for the national government.

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    NATO leads the U.N.-mandated International Security Assistance Force (ISAF). By fall 2006, ISAF is expected to assume responsibility for security in southern Afghanistan. ISAF currently assists in maintaining security in Kabul, and operates nine Provincial Reconstruction Teams (PRTs) in the north and west: Konduz (German-led), Feyzabad (German-led), Mazar-e-Sharif (UK-led), Maimana (Norway-led), Herat (Italy-led), Farah (US-led), Qaleh-ye-Now (Spanish-led), Chaghcharan (Lithuanian-led) and Baghlan (Dutch-led). ISAF currently numbers about 8,500 troops from 36 NATO and non-NATO troop contributing nations.

    The formal Disarmament, Demobilization, and Reintegration (DDR) process disarmed and demobilized more than 63,000 former combatants. In addition, about 97% of known heavy weapons have been collected and secured. Afghanistan, with international community support, embarked on the Disbandment of Illegal Armed Groups (DIAG) program in spring 2005. DIAG builds on the DDR process by seeking the disbandment of the remaining illegal armed groups. In addition, the Taliban reconciliation program, launched by President Karzai, continues throughout the country, offering amnesty and reintegration into society for Taliban fighters who have not committed serious crimes. Similarly, several key warlords have chosen to pursue political careers, including becoming members of the parliament, or have been weakened by President Karzai's increasingly assertive moves to marginalize them.

COUNTERNARCOTICS

    One of the most significant challenges to progress in Afghanistan is the illicit narcotics trade. As a political challenge, it undermines Afghanistan's growing democratic institutions, fueling corruption and criminal and anti-government activities. As an economic challenge, it diverts agricultural land and labor from more beneficial uses and undercuts the prospects for developing more sustainable livelihoods. As a social challenge, it sows the seeds of addiction, disease, and discord.
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    President Karzai and the Afghan Government have recognized the gravity of these challenges, as demonstrated by the National Drug Control Strategy presented at the London Conference and the new Afghan Anti-Narcotics Law that was enacted in December 2005. U.S. Department of Justice senior federal prosecutors worked with Afghan criminal law experts and coalition partners to draft this comprehensive counter-narcotics legislation that builds upon the former criminal law and adds a new regulatory structure for licit and illicit drugs, defines new crimes and a revised sentencing structure, authorizes the use of modern investigative techniques, and confirms the use of the 1988 UN Convention against Narcotics and Psychotropic Substances as an appropriate instrument for extraditions. A few months prior to passage of the legislation, the Government of Afghanistan applied the 1988 Convention as the basis for the extradition of major Afghan trafficker Haji Baz Mohammad to the United States. In addition, President Karzai signed a decree mandating that a Central Narcotics Tribunal have national jurisdiction over all significant narcotics cases. These cases are now being transferred to Kabul for adjudication. The Department of Justice prosecutors, along with our coalition partners, are providing advice and assistance to Afghan prosecutors and investigators working on these cases. The United States strongly welcomed these developments, and was also encouraged by the significant decline in opium poppy cultivation in 2005.

    We are working hard with our Afghan partners to improve interdiction and law enforcement capacity. DEA, working with the Counternarcotics Police of Afghanistan (CNPA), seized 42.9 metric tons of opium and 5.5 metric tons of heroin in 2005. They also shut down 247 clandestine conversion labs and arrested or detained 32 individuals on charges related to these seizures. An additional 100-plus metric tons of opium and 30 metric tons of heroin were destroyed during operations of the Afghan Special Narcotics Force (ASNF), a group trained by the UK within the CNPA that has conducted some joint operations with the National Interdiction Unit (NIU). In addition, the NIU and DEA are targeting the command and control structures of the highest level narcotics traffickers. Just a few months ago the GOA extradited its first heroin drug kingpin to the United States. The U.S. is also working on elimination and eradication programs which seek to reduce the level of poppy cultivation by convincing farmers not to plant poppy and by eradicating crops that have been planted. These programs have been substantially redesigned in 2005–2006. The U.S. and UK are deploying new Poppy Elimination Program (PEP) teams, which combine international advisors and employees of the Afghan Ministry of Counternarcotics, to the seven major poppy producing provinces (Kandahar, Nangarhar, Uruzgan, Farah, Badakhshan, Helmand, and Balkh). PEP teams will work with provincial officials to discourage poppy cultivation, monitor and assess levels of cultivation, conduct early eradication at the provincial level, and call in eradication teams when necessary. In order to provide Afghan farmers with opportunities outside of poppy cultivation, the U.S. has contributed $321 million to support alternative livelihoods programs that support immediate needs and promote long-term rural development. These programs have generated more than 4.5 million workdays of employment for nearly 200,000 Afghans and have repaired 6,200 kilometers of irrigation canals benefiting 290,000 hectares of agricultural land.
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    The U.S. is supporting the Government of Afghanistan's efforts to eradicate opium poppy so that valuable agricultural land is not diverted to illegal crops. We welcome reports that governor-led eradication programs have already begun this season, and we encourage redoubled efforts by officials at all levels to ensure that Afghan soil yields produce that benefits both the Afghan people and their neighbors. We are also working with the international community to pursue opportunities for cooperation in areas such as trade, border management, and regional infrastructure integration, which can help stifle the drug trade and promote sustainable economic development across borders.

GOVERNANCE AND RULE OF LAW

    Today, the men and women of Afghanistan are governing their own country and charting their own course to the future. The United States strongly supports the newly inaugurated Afghan National Assembly, Afghanistan's first elected legislature since 1969 and an institution which is absolutely central to the establishment of democracy, stability and independence for Afghanistan.

    The Assembly has just finished forming legislative committees and refining procedural rules. Thus far, the tone of the National Assembly's debates are largely constructive, with members open to debate and to new ideas. The Assembly's first challenges as it gets down to business include votes on the executive decrees promulgated by President Karzai before the Assembly was seated, a vote of confidence on President Karzai's cabinet and consideration of the Afghan budget for the coming year.

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    The United States is providing training for Parliamentarians and their staff in media and constituency services, public finance, ethics, administration, executive branch oversight, computer literacy, and other areas vital for legislators. The United States is also sponsoring programs to facilitate dialogue between the national government and leaders at the provincial level. We are designing workshops in financial management, information collection and planning for the Provincial Councils.

    Democratic governance is the cornerstone to political progress in Afghanistan. The Government of Afghanistan, with cooperation and assistance from the United States and other partners, is rebuilding and reforming permanent justice institutions, expanding civil and criminal capabilities of the Afghan judicial system, and supporting public demand for the rule of law.

    Our civil law program: provided for construction or rehabilitation of 27 judicial buildings in 18 provinces with eight more under construction; provided court administration training; improved the capacity of the Ministry of Justice to draft laws; assisted the Supreme Court with computerization of personnel records, improvements in personnel and court organization, rehabilitation of Court premises, and technical assistance to enable the Court to manage judicial training; investigated the customary/shura system in order to inform programming decisions; and developed public service campaigns to educate the public about the constitution, their rights under it, and the court system.

    The challenge of strengthening a legal economy with opportunities for all Afghan people should not be underestimated. Good governance begins with a transparent legal framework, where all entrepreneurs—men and women—can compete in a flourishing private sector. A transparent set of laws that are equitably implemented is also one of the best weapons against corruption.
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    Democracy, good governance and human rights reinforce each other. The Afghanistan Compact lays out a blueprint of measures in these areas that responds to the demands of the people and lays the ground work for justice, security, and opportunity. The Compact starts with strong measures for public administration reform, an area where the United States plans to expand its assistance over the next few years. The Compact outlines measures to promote human rights, especially women's rights, and calls for the implementation of the Transitional Justice Action Plan for Afghanistan adopted by the Afghan Cabinet in December 2005.

    We are also supporting an emerging independent media—32 independent radio stations have been established and are broadcasting programs to 52% of the Afghan population. Forty thousand radios have been distributed to hard-to-reach populations including rural women. Our programs provided training to almost 2,000 media professionals. An example of the impact that this program is having is Salaam Watandar, a national radio production unit, which is now generating 75% of its operating expense from incoming revenue. Salaam Watandar supported the September 2005 parliamentary and provincial elections by providing nationwide, 24-hour radio coverage with accurate, fair and unbiased reporting. Many projects have focused on women, such as the development of Women's Resource Centers in 17 provincial capitals, where 8,200 women are being taught to read and write, of which 300 have qualified to date for further training as community healthcare workers or midwives.

    Our commitment to a democratic Afghanistan is firm. The success of the Afghan people in laying the groundwork for a stable, constitutional and democratic government will have lasting implications for Afghanistan, for the region and for the United States.

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ECONOMIC AND SOCIAL DEVELOPMENT

    Afghanistan has made progress in developing and managing its financial resources and reconstruction funds. The USG will continue to encourage and assist the Government of Afghanistan to increase its domestic revenues, especially through improved border management and customs collection.

    The U.S. supports the development of a vibrant private sector as an engine for growth in Afghanistan. A strong, growing private sector is needed to provide jobs, a sustainable source of government revenues, and a legitimate alternative to the narcotics economy. The Afghan government's commitment, set out in the interim Afghan National Development Strategy, to fight corruption, streamline regulatory and tax policy, maintain a stable macroeconomic environment, and develop a regulatory framework to support business and investment sets exactly the right agenda for attracting much needed private sector investment and spurring economic growth.

    Afghanistan has already made great strides in this area. For example, the World Bank's new report ''Doing Business in 2006'' states that over the past year, Afghanistan has reduced the number of steps to start a business from 28 to one, and the time to complete that process from 90 days to seven.

    The Government has established a relatively stable currency, worked to control inflation, and steadily advanced sound economic policy with new laws, development of the banking sector, customs and tax reform, and increasing government fiscal accountability. As a result of these reforms and sensible economic policies, the IMF estimates real Afghan GDP growth of 13.6% from 2005 to 2006, while Afghan exports are expected to increase from an estimated $300 million last year to approximately $500 million this year. Active sectors include construction, telecom, hotels/services, and new growth in agriculture.
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    Secretary Rice launched the ''Businesses Building Bridges'' (BBB) initiative in London which will partner high-profile U.S. business leaders with Afghanistan's private sector. The ''Businesses Building Bridges'' initiative will demonstrate the private sector commitment through training for Afghan entrepreneurs by the U.S. Trade and Development Agency (via a $500,000 grant) and attract future foreign investment by helping to improve the Afghan investment climate and enhance commercial and economic linkages.

    The Afghan government wants to ensure that international assistance resources are used in the most equitable and efficient manner throughout the country, and therefore wants to increase its role in managing these resources. We will work with the Afghan Government on mechanisms to ensure accountability, and are prepared to provide capacity building assistance to those ministries taking more control of project implementation.

    With U.S. leadership, the international community is rebuilding war-torn Afghanistan piece-by-piece. In total the USG has reconstructed 1,195 km of secondary as well as national and provincial roads and 635 km of regional highway, for a sum of 1,830 km of roads nationwide.

    Lack of infrastructure is also a real obstacle to economic growth. The U.S. is devoting significant resources to this issue, including by working with other donors on power transmission grids in the north and south. Refurbishment of two hydro-power units at Kajakai dam is also underway. The goals for infrastructure development set out in the interim Afghan National Development Strategy are ambitious, but important. Realistically, the costs of these infrastructure investments will exceed the ability of the Afghan government to finance for some time to come. Afghanistan will require donor involvement for at least several more years and expanded private sector investment in infrastructure.
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    Afghanistan has some of the lowest levels of literacy and worst health and mortality indicators in the world. In the interim Afghan National Development Strategy, the Afghan Government has set some ambitious goals for improvement in these areas. The Afghan strategy for education involves simultaneously improving the quality and expanding access to primary, secondary and higher education, while developing new vocational education programs. Teacher training is a limiting factor that merits particular attention. We have built or refurbished 477 schools and 454 clinics nationwide. Nearly 170,000 students are currently enrolled in school under the Accelerated Learning program and over 75,000 teachers have received initial or supplemental training under the same program. The U.S. Government has printed and distributed over 48.5 million textbooks throughout the countryside.

    The health strategy has four main components: extending the basic health care package; improving access to hospitals; fighting communicable diseases; and developing the nation's healthcare workforce. In collaboration with the Ministry of Public Health (MoPH), USAID provides health services by working through community-based volunteer health workers at all levels in the health care system—from basic health centers at the village level to provincial hospitals. Over 7 million people in 14 provinces now have better access to quality health services. Approximately 70% of patients served are women and children. The U.S. has also supplied $1.8 million worth of essential drugs since 2003. We also continue to work with the MoPH to develop and advance policies and guidelines in diverse health areas such as basic health services, pharmaceutical standards, and emergency obstetrics care. In addition, the USG helps the MoPH to develop and maintain essential public health management systems.

    We cannot ignore the importance of the regional context. Afghanistan's future economic growth and prosperity is contingent on successfully integrating with its neighbors. This means developing cross-border energy sources, regional trade zones, and transport links that extend from Central Asian centers to the warm water ports of Karachi and Gwadar. Afghanistan has already taken a number of steps to improve cooperation with its neighbors, including hosting a Regional Economic Conference this past December. We are encouraging Afghanistan's Central and South Asian neighbors to look for the mutual advantages that improving regional integration can bring.
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    Of note, in February 2006, the United States, Germany and Russia each made separate public statements regarding their intention to seek, through the Paris Club process, cancellation of all outstanding bilateral debt with Afghanistan accumulated prior to 2001, thereby removing a major impediment to the normalization of Afghanistan's economic relations with the rest of the world. Seeking debt relief through the Paris Club mechanism will also trigger debt cancellation from the multilateral institutions, and enable Afghanistan to move ahead on comparable debt relief agreements with its remaining bilateral creditors.

STRATEGIC PARTNERSHIP

    On May 23, 2005, President Bush and President Karzai signed a joint declaration of the United States-Afghanistan Strategic Partnership. The strategic partnership's primary goal is to strengthen U.S.-Afghan ties to help ensure Afghanistan's long-term security, democracy, and prosperity. The Strategic Partnership, by providing specific elements for regular high-level exchanges and cooperation in the areas of rule of law, democracy, prosperity and security, illustrates in a very public fashion our continuing commitment to and support for the process of economic and political reconstruction of a viable, stable, moderate Islamic state in Afghanistan, and for the elected Afghan authorities who share that goal.

    The first U.S.—Afghanistan consultation on Strategic Partnership will take place March 20–21 when there will be an opportunity for substantive discussion in three working groups focusing on Democracy and Governance, Prosperity, and Security.

CONCLUSION
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    The accomplishments in Afghanistan can be directly attributed to strong U.S. and international leadership and support to the courageous and determined Afghan people. At the end of this fiscal year our cumulative assistance will top $10.3 billion. This assistance has helped Afghanistan reinforce its newfound stability while engendering much goodwill among the population who see the U.S. commitment to their country as more than just rhetoric. The London Conference on Afghanistan also demonstrated that the international community is maintaining its political, security and financial commitments to Afghanistan.

    Our many achievements aside, Afghanistan has more work ahead. This includes taking the next steps necessary to create a sustainable secure environment, strengthen democratic institutions, educate its people, respect and enforce the rule of law and human rights, and develop relations with its neighbors.

    We thank Congress for its past support on Afghanistan. With your future support, the United States will follow through on building security forces, strengthening democratic institutions, and reconstructing Afghanistan so that it is never again a haven for terrorists or a source of instability or oppression of its citizens. I would be glad to take your questions.

    Ms. ROS-LEHTINEN. Wow, well timed. Thank you so much. You are so right, Mr. Kunder, to go to Ambassador Quinn. She has set the bar. Now, who is next so that I can be correct? I would say you, sir?

    Mr. ACKERMAN. Timing is everything.
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    Ms. ROS-LEHTINEN. Timing is everything.

    Mr. ACKERMAN. It does not matter what you say.

    Ms. ROS-LEHTINEN. Mr. Kunder, you would be the right one. Would I be making the correct assumption?

    Mr. KUNDER. Whatever order the Co-Chairs want.

    Ms. ROS-LEHTINEN. All right. Good. Thank you. The Honorable James Kunder, Assistant Administrator, Bureau for Asia and Near East, USAID.

STATEMENT OF THE HONORABLE JAMES R. KUNDER, ASSISTANT ADMINISTRATOR, BUREAU FOR ASIA AND THE NEAR EAST, U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

    Mr. KUNDER. Thank you to both Co-Chairs for hosting the hearing. We very much appreciated the strong support of this Committee, which was made manifest early on in the passage of the Afghan Freedom Support Act, which codified and I think gave a boost to all of us working on Afghanistan at this time.

    And as Mr. Delahunt said, I was one of those who got up with the chickens this morning to sit in on Mr. Rohrabacher's earlier hearing, which was a very, very useful panel of experts.
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    Yesterday was International Women's Day, and we celebrated that in Afghanistan with the graduation of 30 Afghan midwives, to join the 340 who had previously been trained under United States Government programs, and who are a part of the several thousand we will be training in the next couple of years.

    I mention that because the title of the hearing is Afghanistan: Progress Report, and I think that event is a good metaphor for how I would view the overall progress in Afghanistan. That is to say that we are making steady, important progress.

    We have done some very good things in the last couple of years, and we have a very long way to go. In the few brief minutes that I have here, I have got about 15 slides that I will go through very quickly that I am told are cued up behind us on the big screen, but you have a copy of this in front of you as well.

    So, page number two talks about the major road and power projects in Afghanistan. As you can see from looking at the slide, the blue line indicates that those are the projects that we are currently working on from Kabul to Kandahar, and Kandahar to Herat.

    And very significant progress has been made in road construction and power generation, but the needs are still immense. As some of the earlier witnesses said, a very small percentage of the Afghan population is actually on a power grid, and we have not yet been able to link all of the provincial capitals into the so-called ring road or beltway that goes around Afghanistan.

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    And so on the road and power projects areas, we have made some significant measurable progress, but there is a very long way to go. Slide or page three shows the kind of terrain that we are working in. This is a river bed, a dry river bed on the Kandahar to Herat portion of the highway.

    It is dry now, but during the spring floods, it will all be covered in water as the water rushes down from the Hindu Kush mountains into the plains of southwestern Afghanistan. So this is very tough terrain, but I noted on this slide that 75 percent of the individuals working on that road are Afghans, because a recurring theme is that we are bringing the Afghans along and increasing Afghan capacity.

    Page four indicates more progress on the so-called ring road, the paving of the Kandahur to Herat portion of the road. And again, just some indication of the difficulty, the asphalt that is being used here is being hauled a truckload at a time over the Kyber Pass from Pakistan because of the lack of production facilities within Afghanistan itself. And so again the logistics issues are immense.

    Page five. I know a number of the Members of the Subcommittees are interested in school and health clinic construction. This is also part of the progress report indicated by the blue circles where we are doing school construction.

    Ms. ROS-LEHTINEN. Ms. McCollum had been especially interested in that. So we will share that with her.

    Mr. KUNDER. Yes, Madam. And the pink circles indicate where we are building health clinics. And again it is the same kind of progress report. A lot of work is being done, and it is reaching out into some of the most isolated portions of the country, but also a great, great deal more work needs to be done.
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    As indicated earlier, the infant mortality and maternal mortality, and literacy rates, in Afghanistan are among the absolute poorest in the world.

    Slide number six shows typical examples of reconstruction of schools. The Janqal-e-areq school at the top was a deteriorated school that we have now rehabilitated. The Bibi-Fatah School in Konduz in the north was a school that was destroyed in the 23 years of fighting, and has now been rebuilt.

    Slide number seven addresses the USAID portion of the counternarcotics program. We are focusing on alternative livelihoods. That is to say giving Afghan farmers some options of what they can grow as a substitute for poppy.

    The difficulties, which I have testified to this Committee before about, are enormous, because depending on the world prices for wheat and poppy, the return on investment for a farmer for poppy can be 10 to 30 times what it is for wheat, the primary grain product.

    So the critical issue is to get other high value products, like almonds, or grapes, in production on those lands so that farmers have an economic incentive. Now, as we have shown with a little pyramid slide there, alternative livelihoods is but one part of the counternarcotics effort, and I know that Tom Schweich will be telling you more about that later.

    Slide eight gives some examples of the kinds of alternative livelihoods work that we are doing. In the upper left is a picture of Afghans receiving cash for work in order to rebuild irrigation canals.
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    So we are trying to get a twofer with the taxpayers dollars. We are hiring people in the short term, paying them a salary so that they can be employed, and don't feel that they have to go into the poppy economy, and also by digging and by rehabilitating these irrigation canals, we are opening up opportunities to do other types of livelihood.

    And in the lower right is a field that has been irrigated, and an Afghan farmer standing in front of it, and this happens to be grape vines, where we do think we have an alternative to poppy.

    Slide number nine is just a quick snapshot of a woman's income generating project in Nangarhar, where again if we are able to set up the marketing chains and establish rural credit, we can create a market for high value products, and in this case by women, that will compete with poppy.

    Slide number 10 gives you five different snapshots of a progress in Afghanistan. In the upper left, these are cumulative numbers, cumulative numbers between 2003 and 2006 of kilometers of road being paved, and the trend line is obviously up.

    In the middle of the top, cumulative number of schools and clinics constructed, and the trend line is up. The third one over, millions of dollars of cash for work under the alternative livelihoods program, and the trend line is up.

    Now we move to the bottom two, and on the left is cumulative casualties among not USAID employees, but among our contractor and grantee partners. These are people who are working with us. They are Afghans, or Americans, or third-country nationals, working in health care programs, education programs, and so forth.
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    Again, these are cumulative numbers, but we have had 40 individuals killed, and almost that number injured, since Fiscal Year 2003. In the lower right is the cumulative casualties of the USAID funded security personnel. These are primarily Afghan guards who have been killed or wounded primarily protecting infrastructure projects in the countryside.

    And I wanted to do two things by this slide. One is to show you that again cumulatively that we have pushed these projects into the most isolated rural areas, and those who resist human progress have pushed back.

    We are taking casualties, but also I wanted to highlight that it is the Afghans themselves who are primarily the casualties, and who are primarily responsible. As several Members, including Mr. Rohrabacher, have said, for the reconstruction effort.

    Slide number 11 is just some snapshots of the kind of security incidents we are facing. In the upper left, is a burned school building, and in the lower left is a vehicle of one of our contractors that hit an IED, an improved explosive device, on the Kandahar to Herat Highway. So these are the kind of day to day incidents that occur.

    But as I say in slide number 12, despite the threats and intimidations, these programs are continuing. The trend lines are up in incidents, security incidents, but the trend lines are also up in progress in all of these program areas.

    This slide illustrates our program to reach 170,000 students who were denied education during the Taliban period, primarily girls. Slide number 13 is an overall pie chart of how we are spending the taxpayers' dollars in Afghanistan.
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    As somebody said during the earlier hearing, this is a classic case after 23 years of warfare, where everything needs to be fixed at once. Hence, we are in a broad array of program areas in Afghanistan.

    We are trying to balance showing immediate success by building schools, clinics, roads, and visible projects with the need to build the foundation for long term economic growth.

    So we are working on economic policy reform, and getting an investment law written to encourage private sector investment in Afghanistan. It is a complex array of programs, which I am more than glad to go into in more detail later.

    Slide number 14, and I apologize, is a little bit complex, but I have tried to illustrate the fact that there is a clear cut timeline of what is happening in Afghanistan, and a clear cut strategic plan.

    The bottom, the blue areas indicate what we have been doing in the first couple of years, and that is a broad array of visible projects in humanitarian assistance and infrastructure reconstruction, social services, and so forth, including support of the Bonn process.

    So we had those successful elections, and those successful constitutional processes. Where we are now is in a reconstruction and capacity building phase. We have in each of these four pillars, stabilizing the environment for development; coming up with a thriving licit economy, that is to say, a non-poppy economy; democratic governance, with broad citizen participation; and a better educated and healthy population.
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    We have indicators in each of these areas against which we measure our progress in Afghanistan, and the goal of course in the long term is the green area at the top, which is the Afghanistan Government, and as they have outlined in their own compact, has their own vision of taking over the bulk of this kind of work, and the international community can play a supportive role, but not the lead role.

    Finally, on slide 15, I have listed, and I won't take the Subcommittees' time, but some of what we consider to be the milestones, the successful things on the progress report over the last couple of years.

    Let me just close, Mr. Chairman, and Madam Chairman, by saying that I was honored to open the AID mission in Afghanistan in January 2002. I recall quite clearly my first day on the job, and we got one of the old beat up Embassy vehicles that had not been destroyed by the Taliban, and drove into downtown Kabul to take a look at the city.

    I went first to the Ministry of Education, and at that time, it was a bombed out building, where the then Minister of Education—and by the way an Afghan-American, who had come from California to help his home nation—was sitting huddled over a kerosene heater, with no electricity, no computer, no staff, no payroll, no way of communicating with the outside world.

    If someone had told me at that time that we would be as far along as we are today, frankly I would have disbelieved them. I would have been too skeptical. So I am not here to tell you that everything is going swimmingly. It is a tough slog as those casualty figures indicate.
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    But our progress report, to respond to the Subcommittees' questions, is that there has been very, very substantial progress made in the last 4 years, primarily because of the Afghans themselves, and I would be glad to answer any questions that you have.

    [The prepared statement of Mr. Kunder follows:]

PREPARED STATEMENT OF THE HONORABLE JAMES R. KUNDER, ASSISTANT ADMINISTRATOR, BUREAU FOR ASIA AND THE NEAR EAST, U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

    Madame Chair, Mr. Chairman, Members of the Committees, I would like to thank the committees for this opportunity to speak today about USAID's progress in helping the people of Afghanistan improve their economic circumstances, health and education and live in a thriving democracy. In today's testimony, I will describe the significant challenges of working in Afghanistan and highlight how USAID's programs have contributed, and will continue to contribute, to the achievement of U.S. foreign policy goals in the country and to the improvement of the lives of the people of Afghanistan.

    There are three stages in the transition strategy for Afghanistan. The first stage was from 2002–2005, the current stage is focusing on stabilization and building systems. USAID assumes that the final stage—the normal development process will start from 2008. But, first let me set the stage.

AFGHANISTAN IN JANUARY 2002

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    I had the honor of being the first USAID official on the ground in Afghanistan after the fall of the Taliban, in January 2002. I have personally witnessed how the U.S. Government reconstruction program has been instrumental in helping the people of Afghanistan move towards creating a stable and productive state.

    According to our Military, after the first week of the war against the Taliban, there were few targets left to bomb. Afghanistan had virtually been decimated after 23 years of warfare. Driving through the streets of Kabul, I saw that huge sections of the city were nothing more than rubble, and I rarely saw women walking in the streets. Much of Afghanistan's population lived in refugee camps in Pakistan, Iran, and a lucky few, mostly the better educated and professionals, had made homes in the West.

    I am happy to report that things have measurably improved in the last four years. Today, in Kabul and other major cities throughout the country, the economy is growing quickly: cell phones are everywhere, there are free radio and television stations, and more and more women are making their own choices about their lives.

    However, because Afghanistan was so devastated by decades of war, despite the considerable progress to date, much remains to be done. Afghanistan has the highest maternal mortality in the world—one woman dies in child birth for every 1,700 babies born. One in four of those babies will not survive to celebrate her fifth birthday. Afghanistan is working to meet many of the Millennium Development Goals by the 2015 deadline. The human indices are among the worst in the world, some of which are listed below:

 Ranks 173 of 178 countries on the 2004 UNDP Human Development Index.(see footnote 1)
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 Average income is $300 per person, and this includes income from poppy production.

 71% of Afghans over 15 cannot read or write (91% of all rural women are illiterate).

 Three out of five girls do not go to school.

 Life expectancy is 45 years.

 Most of the existing infrastructure has been destroyed, and in some remote areas, it was never developed.

    Historically, the vast majority of Afghans have not had access to electricity or safe water. In some remote mountainous villages, the nearest paved road is a two-week walk away. And when USAID first arrived in Kabul, much of the population had been severely traumatized after years of war. Most Afghans did not remember a time when conflict was not a major part of their lives.

U.S. ASSISTANCE PROGRAM IN AFGHANISTAN

    USAID's program is fundamental to achieving the U.S. Government's objective to assist Afghanistan in becoming a stable, productive state. We are working in several key sectors: sustainable economic growth, agriculture and rural development, infrastructure rehabilitation, health, education democratization and the rule of law.

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    USAID's initial strategy in Afghanistan focused on getting people back to some sense of normalcy by providing emergency relief and basic services. We needed to get food on tables and jobs for people. We needed to tackle the collapsed social service sector. Since agriculture is the mainstay of about 70 percent of the population, we put much emphasis on the development of rural livelihoods. Children—especially girls—had not been to public schools in at least six years, so it was vital to get the education system back up and running and to provide the means for those who had missed schooling altogether to catch up. As mentioned before, Afghanistan has unconscionable health indicators, and we had to work to set things right, especially when women and children were dying at such alarming rates. In response to these incredible needs, we focused our funds on agriculture, education and health.

    In December 2001, in Bonn, Germany, Hamid Karzai had just been named the head of the Afghan Transitional Authority. The country had to be put on a path of democratic stabilization, and USAID supported this process by funding and helping with the logistics for the Emergency Loya Jirga held the following June and then to implement the rest of the Bonn accords. These actions were augmented by a series of ''transition initiatives'', designed to show the people of Afghanistan that there were concrete dividends that would come from a new government. These included rebuilding destroyed schools, market centers and other small-scale, quick impact projects, and the development of an independent media, including radio and television stations.

    After the fall of the Taliban, Afghanistan had five different currencies in circulation. As a first step in creating the environment for the development of an economy, USAID helped unify these currencies into one, country-wide new unit, and launched a program to help the Ministry of Finance and the Central Bank with monetary and fiscal policy.

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    In addition to the lack of a viable currency, the total lack of physical infrastructure presented a serious impediment to economic growth. A country cannot develop without a functioning transportation network and electricity. Subsequently, both President Bush and President Karzai decided that Afghanistan needed a major road project. Therefore, USAID began an ambitious plan to rebuild the highway connecting Kabul with Kandahar and Herat as well as nine provincial roads. When finished, 14 provincial capitals will be connected to a critical trade route. Because only seven percent of Afghans have access to electricity, USAID began to rehabilitate the Kajaki Dam, the premier source of hydroelectricity for southern Afghanistan, so that region could have access to a good, consistent supply of electricity.

    The future for Afghanistan does not look encouraging unless Afghans can develop relevant skills to generate economic growth and find employment. Most Afghans, particularly the younger generations, have been denied this opportunity. Therefore, one of the fundamental tenets of USAID's program is, wherever possible, to train and transfer skills to Afghans. This will allow Afghans to participate in their country's development and will lead to greater sustainability.

    USAID has made a substantial effort to engage Afghan contractors in the implementation of its projects. While this helps to develop capacity, the process is slow, and some Afghan institutions and implementers still lack the know-how and the capability to perform at acceptable standards. USAID currently employs 193,978 on just the alternative livelihoods projects. Overall, 16 percent ($450M) of USAID current awards are going to Afghan contractors. In any given reporting period, roughly 75 percent of the employees working on the Kandahar-Herat Highway are Afghans.

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    Having Afghan construction workers alongside the expatriate crews is critical to ensuring the future maintenance of new infrastructure and enhancing valuable skills for future reconstruction. However, there is also another, equally important, benefit to employing Afghans in the reconstruction of the so called ''Ring Road.'' As proven in one section of the Kandahar to Herat Highway, having Afghans rebuild the road helps to prevent insurgency in the area. Insurgents have consistently targeted road reconstruction teams because their movements and work patterns are predictable. In an effort to curb these attacks on the Kandahar to Herat Highway, a local subcontractor was hired to better involve the surrounding population. The subcontractor, whose workforce consisted entirely of previously unemployed former insurgents, was hired to perform much of the earthworks on one section of the highway. Not only has there been no major local political opposition to the project, the contractor is now performing at 15 percent better than expected rate of delivery. The workers have graduated from earthworks and excavation to working on bridges, paving, and drainage and are now being trained on project management and quality management programs.

    As I mentioned before, USAID is currently in the second stage of its long-term strategy and will be implementing this second stage of its reconstruction assistance program from 2006 to 2008. I would now like to discuss our priorities.

PRIORITY AREAS FOR RECONSTRUCTION AND USAID'S LONG–TERM STRATEGY

    USAID recently completed a long-term strategy which identifies four key areas for continued assistance: the improved environment for development; a thriving licit economy led by the private sector; democratic governance with broad citizen participation, and a better educated and healthier population.
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 The Improved Environment for Development: We intend to establish a platform for sustainable economic growth for the Afghan people. This strategy builds on our current programs, yet explicitly empowers the private sector as a key player and driver of Afghanistan's future. USAID will set the stage for sustainable economic growth by bolstering the justice system and providing means for conflict resolution, legitimizing local governance structures, and providing employment opportunities in the short- and long-term.

 A Thriving Licit Economy Led by The Private Sector: USAID will expand the licit economy through continued investment in physical infrastructure—roads and power—essential to the development of even the most basic industries. Growth in the agricultural sector, which provides a livelihood for the majority of Afghans, combined with other employment opportunities, has to happen to give impoverished farmers a valid income generating alternative to poppy cultivation.

    In December 2004, USAID launched its Alternative Livelihoods Program (ALP) to provide these alternatives. The program is a key element in the joint counter-narcotics strategy of both the U.S. Government and the Government of Afghanistan and is designed to accelerate economic growth in Afghanistan's principal poppy-producing provinces. The program principally targets core poppy-producing areas in southern (Helmand and Kandahar Provinces), eastern (Nangarhar and Laghman Provinces) and northern (Badakhshan and Takhar Provinces) Afghanistan but includes activities in other provinces where poppy cultivation is expanding or where there has been a concerted effort to eliminate narcotics production. ALP is a decentralized activity that relies on cooperation with government entities across the country and in many remote areas. Therefore, a key cross-cutting objective of ALP is to train local government officials in planning regional economic development, facilitating the growth of local businesses and effectively administering the public good.
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 Democratic System with Broad Citizen Participation: This guarantees the rule of law through the electoral process will promote good governance and make it easier to prosecute offenders ultimately restoring the country to the tranquility it enjoyed in the 1960s.

 A Better Educated and Healthier Population: This will be achieved through continued investments in social services to create an educated and healthy workforce, which will be able to participate fully in the country's economy and democratic government. Through sustained efforts in education, we will make vital, heavy investments in the health of mothers and children—the future work force of Afghanistan.

SUCCESSES, FAILURES AND CHALLENGES OF USAID'S RECONSTRUCTION PROGRAM

    USAID has had measurable success in Afghanistan in responding to the country's needs. USAID provided textbooks to school children in time for the start of the first school year after the fall of the Taliban; built the road linking Kabul to Kandahar in record time; assisted with the currency conversion; and supported the implementation of the Bonn Process, including the Emergency Loya Jirga, the Constitutional Loya Jirga, presidential and parliamentary elections and the seating of parliament. I am pleased to announce that yesterday, on International Women's Day, 30 additional midwives graduated from USAID-funded training, joining 337 alumnae of the program.

    To date, USAID has built 477 schools accommodating nearly 300,000 students and 454 clinics serving 340,000 patients per month. By the end of 2006, USAID anticipates completing more than 600 schools and 600 clinics. This is a phenomenal number, averaging 19 schools and clinics per month since construction first started in April 2002. These buildings, constructed to high quality standards, are designed to withstand harsh environmental conditions, repair easily with local materials and expertise, and maintain cultural appropriateness. They are also earthquake-resistant, something which we take seriously since Afghanistan is in an earthquake zone. Initial reports showed that 18,000 schoolchildren died or were seriously injured in the October 2005 Pakistan earthquake because their schools collapsed onto them.
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    Our presence on the provincial reconstruction teams (PRTs) has allowed us to build closer relations with local officials and community leaders to better understand local needs and development goals. Since the Coalition and the International Security Assistance Force (ISAF) militaries staffing a PRT are able to offer the necessary protection for our staff, PRTs have been a useful platform for USAID to monitor our programs throughout the country and ensure that aid is being delivered to the right people.

    In addition to developing local connections and monitoring USAID's national programs, on each PRT, USAID has contributed to the province's local needs and development goals through the Quick Impact Program (QIP). QIP is the USAID funding mechanism that allows our field program officers on the PRTs to undertake specific development projects in their provinces. The field officers select appropriate projects and activities in consultation with the military on the PRTs, while ensuring local leadership. The primary purposes of QIP projects are to extend the reach and influence of government throughout the provinces and to create a climate of improved freedom and economic activity. Projects implemented through QIP include tertiary roads, bridges, water supply, irrigation, government administrative buildings, schools, clinics, micro-power generation and training courses for women.

    PRTs are a vital part of Afghanistan's reconstruction, and as the majority of them shift from Coalition to ISAF control, it is important that USAID continues to work with each of the current ISAF member states (Germany, United Kingdom, Norway, Italy, Lithuania, Netherlands, Spain, and—as of next week—Sweden) that lead NATO PRTs, as well as the nations that are expected to contribute by fall 2006, when ISAF is scheduled to assume responsibility for security in the south.
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    In addition, USAID coordinates closely with the Department of Defense, the Department of Agriculture, and the Department of State to ensure that activities in development, diplomacy and defense complement and strengthen U.S. foreign policy goals, with the ultimate goal of extending the reach and legitimacy of the emerging government of Afghanistan. This inter-agency approach has been one of the most successful aspects of the PRTs.

    A consistent challenge to working in Afghanistan is managing the expectations of the Afghan people, the government and the media. Because of decades of insecurity, destruction, and corruption, the state was incapable of the most basic functions by the time the Taliban fell. The country has been trampled by foreign invasions and fragmented by international as well as internal politics. The result was massive poverty, a state devoid of institutions to govern and serve the people, and the dominance of a drug economy that hindered revenue and state building as well as legitimate economic growth.

    An important fact to remember is that development takes time. Comparing statistics from similar countries shows us that:

 It took Bangladesh 17 years to increase adult literacy by 9%, from 32% in 1985 to 41% in 2002.

 It took India 44 years to decrease the infant mortality rate from 242 deaths per 1,000 births down to 85 (a 65% decrease).

 It took Morocco 43 years to increase its GDP from $2B to $44B.
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    USAID has only been engaged in Afghanistan for just four years, and change takes time, despite the expectation of many that reconstruction and development should happen at lightning speed.

    One of the issues discussed at the recent London Conference was the perception that donor programs, such as USAID's, are expensive and that these funds would be better used by giving them directly to the Afghan government. Based on our assessments and observation of the Government of Afghanistan, we believe that at the present time, and given current systems in place at the Afghan ministries, funds passed through ministries for development would sometimes not reach the target populations, delivery would be slow and it would be very challenging to account for these funds in a way that would satisfy U.S. taxpayers. We are committed to working with the Government to make sure that its employees develop the management and financial skills needed to implement development activities and to account for the resources used, be they domestic or from international donors. However we recognize that this will be a long process, and we will not pass funds directly through the government until such capacity is improved.

    We cannot talk about progress in Afghanistan without acknowledging that a major obstacle to getting our work completed on schedule is the security situation. Our staff faces real dangers every day, such as rocket attacks, banditry and kidnappings. We take necessary precautions to ensure their safety. Increasingly, our contractors are being targeted, and a number of them have been killed, making it more difficult for USAID to recruit appropriately qualified staff. The ancillary costs to provide security have also risen substantially.

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    We continue to implement our projects despite security threats by extremists who attempt to disrupt services and destabilize the country. Building schools and roads or educating girls is a challenge in an insecure environment. For example, USAID has built 477 schools and another 251 are currently under construction, but construction crews at 53 of our schools experienced violence. In January, a headmaster was shot in Helmand; 200 schools in Kandahar and 165 in Helmand closed for security reasons, and a high school teacher was beheaded in Zabul in January. Extremists have burned girls' schools and have injured or killed personnel with roadside improvised explosive devices.

    February was a particularly deadly month—over a 14-day period, 24 violent incidents and 37 deaths were reported in the open media. Since 2002, 114 USAID-funded workers were killed, 130 seriously injured or disabled, and another 33 staff were killed in accidents.

    I want to take this opportunity to recognize and thank our American and international staff on USAID projects who have given up the comfort and safety of their homes to help rebuild Afghanistan, and also acknowledge the major contributions of the Afghan staff working alongside us. Without them, we would have no success story.

BUDGET REQUESTS FOR AFGHANISTAN RECONSTRUCTION

    I would now like to provide the Committee with an introduction to the power sector request in the Administration's fiscal year 2006 supplemental submission for Afghanistan, as well as a brief overview of the USAID-implemented components of the fiscal year 2007 President's Budget request for Afghanistan. First, in addition to urgent requirements for debt relief, assistance for returning refugees and Embassy and USAID mission security costs and operations, the request for fiscal year 2006 supplemental funds reflects the importance of the power sector to U.S. efforts to rebuild and stabilize Afghanistan. Currently, as I said earlier, only 7 percent of Afghanistan's population has access to electricity, and even existing electricity supplies are unreliable. Moreover, the United States is devoting millions of dollars every year—$55 million in fiscal year 2005 alone—to supply diesel fuel for thermal power plants in Afghanistan's major cities, a very inefficient way to provide power and one that is only viable in the short-term.
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    In order to increase the supply and reliability of electricity for the Afghan people and reduce U.S. diesel fuel expenditures, we have requested $32 million in fiscal year 2006 supplemental funding to improve Afghanistan's power sector through two important activities. The first is a broad-based technical assistance program to restructure Afghanistan's power sector, facilitate power purchase agreements with the Central Asian Republics, and complete the engineering and design of a major power transmission line between Turkmenistan and northern Afghanistan. Supplemental funds are also being requested to provide technical assistance and training for the installation of an important diesel fuel generator in Kabul that will replace a power generation unit that failed in early February. In addition to the above $32 million, we have requested $16 million to pay for critical security costs for the USAID Mission. This request for additional operating expenses is being made in response to an unpredictable security environment and the need to ensure uninterrupted security for USAID personnel operating in Afghanistan.

    USAID's fiscal year 2007 request is consistent with the priorities and the strategy I articulated earlier and was developed in close consultation with the Department of State and the Government of Afghanistan. The total Development Assistance, Child Survival and Health, and Economic Support Funds request of $802.8 million demonstrates the continued U.S. commitment to rebuild Afghanistan's economy through infrastructure rehabilitation, agricultural assistance and private sector support. USAID will also provide alternative livelihoods activities as part of a broader, multilateral program to combat narcotics production. Furthermore, we will continue to provide basic health services and train Afghan health workers; expand educational opportunities, literacy, and basic skills through education programs; build the foundations for a democratic society, notably through the training of new parliamentarians; and support local stabilization and reconstruction efforts through Provincial Reconstruction Teams. Throughout our entire portfolio, we will focus on building the capacity of Afghans within both the public and private sectors and continue to provide significant assistance to Afghan women and girls. Both the level and allocation of the fiscal year 2007 request are consistent with U.S. Government goals and strategies in Afghanistan, and are aligned with the Afghanistan Compact recently announced in London.
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    Ms. ROS-LEHTINEN. Thank you so much. And now we are pleased to hear from Rear Admiral Moeller, who I had the pleasure of seeing in the region not too long ago.

STATEMENT OF REAR ADMIRAL ROBERT T. MOELLER, USN, DIRECTOR, PLANS AND POLICY, U.S. CENTRAL COMMAND

    Rear Admiral MOELLER. Chairwoman Ros-Lehtinen, and Congressman Ackerman, and Chairman Rohrabacher, thank you very, very much for this opportunity to appear before this Committee today.

    And on behalf of General Abizaid, it is certainly a pleasure to have this opportunity. I look forward to our discussion today. We just arrived in Washington last night, and in fact, earlier this week, having visited both Afghanistan and Pakistan for current updates on the situation there. It was very, very informative, and useful visits as always.

    There are approximately 20,000 United States and 4,500 coalition forces from 19 nations deployed in Afghanistan as part of Operation Enduring Freedom. These forces are commanded by Combined Forces Command-Afghanistan, headquartered in Kabul, which assures unity of effort with the United States Ambassador in Kabul, and the NATO International Security Assistance Force (ISAF), also headquartered in Kabul.

    NATO's ISAF contributes approximately 8,500 troops, from 21 nations, over 150 of whom are American. ISAF troops are stationed in Kabul to provide security, conduct security and stability operations in northern and western Afghanistan, and are deploying to southern Afghanistan to take over from United States Operation Enduring Freedom forces.
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    My testimony today will focus upon the overall security situation in Afghanistan, and the issues and regions of concern, and an assessment of the continued threat of Taliban forces, and options to deal with them; an overview of increased NATO and individual nation participation in operations in Afghanistan; and a discussion of the integrated approach incorporating political and economic components in achieving long term security goals.

    We have made significant progress in Afghanistan, and we must continue to work to promote stability, and thwart any burgeoning insurgency. Consistent with CENTCOM's (Central Command) primary goal of defeating al-Qaeda and its allies, CFC-Alpha (Combined Forces Command) maintains an intensive focus on any indications that al-Qaeda is attempting to reestablish a safehaven in Afghanistan.

    Al-Qaeda's senior leaders operate in Pakistan's rugged and isolated, Federally Administered Tribal Area (FATA), that borders eastern Afghanistan. In addition to al-Qaeda, three insurgent groups, all with al-Qaeda links, constitute the main enemy threat in Afghanistan.

    First is the Taliban, and second the Haqqani Tribal Network; and third is the Hezb-i-Islami Gulbuddin, the HIG group. The Taliban are the largest and the most active group, operating primarily in the southern and eastern provinces in Kabul.

    Its core supporters are almost entirely Pashtun, and seek its return to power. The Taliban has demonstrated resilience after defeats. They appeared tactically stronger on the battlefields this year, and they demonstrate an increased willingness to use suicide bomber and IED tactics.
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    While the Taliban remain very unpopular in most parts of the country, pockets of hardcore support remain. Taliban activities remain clearly linked to al-Qaeda funding, direction, and ideological thinking.

    The Taliban do not have the capability to exercise control over large areas of Afghanistan, but they are disruptive to reconstruction and reconciliation efforts. It is increasingly clear that Taliban leaders are also using Pakistan's FATA to organize, plan, and rest.

    Pakistani efforts to deny this safehaven, while considerable, have yet to shut down this area to Taliban and al-Qaeda use.

    The Haqqani Tribal Network, which has ties to the Taliban, operates primarily in eastern Afghanistan and the FATA region of Pakistan. Haqqani goals are limited primarily to obtaining autonomy in eastern Afghanistan and the FATA region.

    Although the most tactically proficient of the enemy we face in Afghanistan, they present a limited strategic threat. The HIG, while remaining dangerous, similarly presents only a limited strategic threat.

    It operates primarily in eastern Afghanistan, and is heavily involved in illicit activities, such as narcotics and smuggling, resembling more of a mafia-like organization than an insurgent movement with national goals.

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    Nevertheless, given its historical links with al-Qaeda, it can help facilitate al-Qaeda operations in Kabul and eastern Afghanistan if it finds that doing so enhances its interests.

    Some HIG operatives may be considering political reconciliation. Keeping our eyes on the target of making al-Qaeda irrelevant and preventing a return of the Taliban in Afghanistan, CFC-Alpha will continue to focus on killing and capturing terrorists, and neutralizing the insurgency, providing the shield behind which economic and political progress can move forward, and legitimate government institutions can form and take root, and training and building capable Afghan security forces.

    Our goal, which we share with the people of Afghanistan, is a country at peace with its neighbors, and an ally in the broader war against terror; with a representative government and security forces sufficient to maintain domestic order and deny Afghanistan as a safehaven for terrorists.

    During the past year, CFC-Alpha continued aggressive offensive military operations to kill and capture terrorists and insurgents, and shut down the sanctuaries in which they operate.

    These efforts take time, rarely producing major breakthroughs, but incremental progress in this important area continues. United States and coalition forces dominate the battle space, and are increasingly involving Afghan National Army units in military operations.

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    Training, building, and mentoring the Afghan National Army (ANA) remains a central pillar of our strategy to stabilize Afghanistan. Given the state of the ANA, our focus has been on quality building from the ground up, and not on quantity.

    There has been steady progress. The Afghan army now numbers over 26,000 trained and equipped troops. Most importantly, in terms of progress, the citizens of Afghanistan are beginning to view the ANA as a truly national institution that is both trusted and respected.

    Although the development of an effective Afghan National Army is proceeding on schedule, the Afghan National Police (ANP) force requires considerable work. In conjunction with our coalition partners, building a professional and competent ANP remains a top CFC-Alpha priority.

    Over 59,000 police have been trained. Ultimately, police will provide the security backbone against any insurgency and criminal activity. Afghanistan is intensely tribal and lacks modern infrastructure.

    Loyal and competent police are essential to the spreading of the rule of law and good governance. A long hard road is ahead to make Afghan police what the nation needs.

    2006 is a pivotal year as NATO expands the mission of ISAF to include the total land area of Afghanistan.

    Stage three of the ISAF transition is scheduled for the summer of 2006, when Regional Command South transfers to NATO command. CENTCOM continues to work closely with NATO to enable its command and control structures, and ensure a successful NATO transition in Afghanistan.
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    Having NATO, an organization consisting of 26 of the world's most powerful countries, committed to Afghanistan's future is good for Afghanistan. NATO ISAF is already a major contributor to Afghanistan's security. Deepening international commitment to Afghanistan's future will do much to assist the emerging Afghan Government, and diminish al-Qaeda's attractiveness to people in Central and South Asia.

    The political and economic situation in Afghanistan is improving, but opium production and the resulting trafficking in opium and its derivatives, still accounts for roughly one-third of Afghanistan's GDP.

    Ms. ROS-LEHTINEN. Admiral, if we could ask you to wrap it up. Thank you.

    Rear Admiral MOELLER. Yes, Madam. Let me just conclude then very quickly by saying that success in Afghanistan not only requires military commitment, but it also requires economic revival and reconstruction of key infrastructure.

    And certainly all of that effort is ongoing, and one from a Central Command perspective through our involvement in Provincial Reconstruction Teams, as well as other activities around the country, we will work very, very closely to support, and I look forward to your questions.

    [The prepared statement of Rear Admiral Moeller follows:]

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PREPARED STATEMENT OF REAR ADMIRAL ROBERT T. MOELLER, USN, DIRECTOR, PLANS AND POLICY, U.S. CENTRAL COMMAND

    Chairwoman Ros-Lehtinen, Congressman Ackerman, Chairman Rohrabacher, Congressman Delahunt and members of the Committees:

    There are approximately 20,000 U.S. and 4,500 Coalition forces from nineteen nations deployed in Afghanistan as part of Operation Enduring Freedom (OEF). These forces are commanded by Combined Forces Command—Afghanistan (CFC–A), headquartered in Kabul, which assures unity of effort with the U.S. Ambassador in Kabul and the NATO International Security Assistance Force (ISAF), also headquartered in Kabul. NATO's ISAF contributes approximately 8,500 troops from twenty-one nations, over 150 of whom are American. ISAF troops are stationed in Kabul to provide security, conduct security and stability operations in northern and western Afghanistan, and are deploying to southern Afghanistan to take over from US OEF forces.

    My testimony today will focus upon the overall security situation in Afghanistan, and the issues and regions of concern; an assessment of the continued threat of Taliban forces and options to deal with them; an overview of increased NATO and individual nation participation in operations in Afghanistan and; a discussion of the integrated approach incorporating political and economic components in achieving long-term security goals.

    We have made significant progress in Afghanistan and we must continue to work to promote stability and thwart any burgeoning insurgency. Consistent with CENTCOM's primary goal of defeating al Qaida and its allies, CFC–A maintains an intense focus on any indications that al Qaida is attempting to reestablish a safe haven in Afghanistan. Al Qaida senior leaders operate in Pakistan's rugged and isolated Federally Administered Tribal Area (FATA) that borders eastern Afghanistan. In addition to al Qaida, three insurgent groups—all with al Qaida links—constitute the main enemy threat in Afghanistan: (1) the Taliban, (2) Haqqani Tribal Network, and (3)