AFGHANISTAN INDUSTRIAL DEVELOPMENT

CONTRACTOR (CHECCI CORPORATION) PROVIDED ADVICE & ASSISTANCE TO VARIOUS GOA AGENCIES CHARGED WITH PROMOTING PRIVATE INDUSTRY. THESE INCLUDED THE INVESTMENT COMMITTEE WITHIN THE MINISTRY OF COMMERCE,THE SECRETARIAT OF THE INVESTMENT ADVISORY CENTER (ICA) & THE INDUSTRIAL DEVLPMNT BANK OF AFGHANISTAN (IDBA). OF PARTICULAR IMPORTANCE AMONG CHECCI ACTIVITIES WERE A 2-YR EFFORT UNDERTAKEN BY 1 MEMBER TO MODIFY THE CUSTOM"S TARIFF TO MAKE IT MORE FAVORABLE TO DOMESTIC INDUSTRIES AND THE DRAFTING OF DETAILED INVESTMENT REGULATIONS, ANOTHER MAJOR EFFORT WAS INITIATION OF EXTENSIVE AGRI-BUSINESS RESEARCH AIMED AT DEVELOPING A POLICY ENCOURAGING AGRI-BUSINESS DEVELOPMENT, THE CHECCI TEAM WAS HEAVILY INVOLVED IN THE CREATION OF THE IDBA. ALSO 1 TEAM MEMBER"S WORK AS CHIEF ADVISOR ON PETROLEUM MATTERS ATTRACTED PRIVATE FOREIGN ENTERPRISE IN EXPLORATION OF OIL IN THE SOUTHERN PART OF THE COUNTRY, CHECCI TRNG EFFORTS WERE DIRECTED BOTH AT PERSONNEL WORKING IN THE GOVT"S INDUS DEVEL PROG AND TOWARD PRIVATE INVESTORS & THEIR EMPLOYEES. BOTH ON-JOB & FORMAL TRNG METHODS WERE USED. ONLY A VERY LIMITED AMT OF PARTICIPANT TRNG WAS SCHEDULED BECAUSE OF LACK OF QUALIFIED STAFF. OVERALL,THE INVESTMENT PROG HAS BEEN SUCCESSFUL. ABOUT 100 INDUS ESTABLISHMENTS ARE OPERATING WITH A TOTAL INVESTMENT OF APPROX AFS 1,200,000 (CURRENTLY $20 MILL). FUTURE EFFORTS SHOULD CONCENTRATE ON COMPLETION OF INVESTMENT & TARIFF REGULATIONS. OTHER AREAS REQUIRING FURTHER TECH ASSISTANCE ARE PROJ SELECTION,DAY-TO-DAY INDUSTRIAL PROMOTION,RESEARCH & STAFF TRNG. THE NEW INVESTMENT LAW & TAX LEGISLATION HAS CREATED A FISCAL SITUATION WHICH WILL BE LESS ADVANTAGEOUS. REPORT CONCLUDES THAT POLICY DEVLPMNT IS THE ROUTE TO LONG-TERM SUCCESS & RECOMMENDS THAT ALL OPPORTUNITIES TO DISCUSS OR FORMULATE BROAD OVERALL POLICIES BE EXPLOITED. US EXPERTS SHOULD TAKE NOTE OF THE DAY-TO-DAY ADMINISTRATIVE HEADACHES WHICH TRY THE PATIENCE OF THE LOCAL STAFF AND USE THE OPPORTUNITY TO INTRODUCE LOW-LEVEL POLICY RECOMMENDATIONS. IMPLEMENTATION OF SUCH RECOMMENDATIONS WILL DEMONSTRATE THE EFFICIENCY OF DECISION-BY-POLICY OVER ENDLESS HARD-FOUGHT AD HOC DECISIONS.