Political Perspectives - The Compact for Afghanistan

I congratulate our hosts, the Government of the United Kingdom and the Government of the Islamic Republic of Afghanistan, and the Conference co-chairs, Prime Minister Blair, President Karzai and Secretary-General Annan for bringing us all together for this important event.

The progress in reconstructing a secure, economically viable and democratic state in Afghanistan since the fall of the Taliban has been extraordinary . But Afghanistan is one of world's poorest countries and its people suffer some of the world's worst development indices, comparable to sub-Saharan Africa. In addition, issues of governance, weak Government institutions and a pervasive narcotics trade, create a most complex and difficult development environment. That is what makes Afghanistan such a major development challenge. To overcome these challenges it will require a resolute and determined effort by the Government of Afghanistan backed by the international community. Nation building of the scale required in Afghanistan will take time.

Australia therefore welcomes the Government of Afghanistan's blue print for the coming five years. The Afghanistan Compact is a key strategic document. Together with the National Development Strategy, the Compact will importantly serve to guide the efforts of donors and provide a basis for monitoring the Afghan Government's progress towards the agreed benchmarks. The realisation of the Compact, with its specific benchmarks in the areas of security, governance and economic and social development, as well as counter-narcotics, will advance the vision of a secure, stable, viable and democratic Afghanistan.

The violence has increased in the south of the country in recent months and I join the UN Security Council in condemning the violence and the deadly and indiscriminate tactics used, horrifically illustrated by the 14-16 January terrorist attacks which killed and injured scores of Afghans, as well as members of the international community.

However, the longer term and wider perspective shows that those who seek to prevent the emergence of a stable, viable state in Afghanistan are failing to achieve their objective.

Australia recognises the ongoing need for international assistance to guarantee the security that is vital to the successful reconstruction of Afghanistan. We have therefore increased our military deployments over recent months by adding 110 support staff to our Special Forces Task Group deployment.

Australia also recognises that alongside stability, reconstruction must occur, especially in those communities which have borne the brunt of recent conflict, such as troubled areas in south Afghanistan. That is why Australia has also signalled a willingness to consider the deployment of further military personnel as a contribution to a Provincial Reconstruction Team. The details and a decision on this additional deployment will be taken once NATO has formalised its plans for the International Assistance Force Stage III expansion into southern Afghanistan.

In addition to Australia's ongoing security support, I am pleased to announce a new pledge for reconstruction and development assistance comprising an indicative planning figure of $150 million to be provided over 5 years. This new pledge includes a commitment of $55 million through to end June 2007, with the remainder subject to the performance of the Government of Afghanistan against the benchmarks contained in the Compact signed today.

This new pledge of $150 million is in addition to the $110 million pledged by Australia at the 2004 Berlin Conference, which has been disbursed in full. Australia will look to support priorities that accord with the National Development Strategy, including delivery of essential services - particularly those that benefit women and children, raise literacy levels and improve food security and licit rural livelihoods.

The period ahead of rebuilding Afghanistan will be testing and will require difficult choices. Strong ownership and leadership by the Government of Afghanistan will be important in taking forward this broad and difficult agenda, as will be the support of the international community. Australia remains firm in its commitment to the Government of Afghanistan to playing its part. Australia will work with the international community to achieve the political, economic and security related goals necessary for a secure, economically viable and democratic Afghanistan.