Columbia International Affairs Online: Policy Briefs

CIAO DATE: 12/2014

How to Spur Afghan Reforms: The Limits and Benefits of Incentives

Trent Ruder

November 2014

United States Institute of Peace

Abstract

Although not a magic bullet, incentive programming can help shape dialogue with the new Afghan administration. What are incentive programs? How do issues such as stakeholder participation, Afghan capacity and consequences of success or failure affect policy decisions for incentive programs? In addressing these questions, this PeaceBrief points the way to more effective incentive programming. Donors have increasingly sought to condition assistance funds for Afghanistan, particularly as a result of inadequate reforms during the Karzai administration. Since its negotiation in 2012, the Tokyo Mutual Accountability Framework has been the basis of most donor incentive decisions on Afghanistan. Donors need to consider who benefits from incentives, how resources and requests align, Afghanistan’s capacity to implement reform and the consequences of success or failure. Donors should both temper their expectations and minimize the linkage between highly politicized issues and incentive programs. Incentive programming is not a magic bullet, but it can help shape dialogue with the new Afghan administration.