By Kathryn McConnell
Washington File Staff Writer

Washington -- At the first major conference on Afghanistan's reconstruction, the United States, other countries and international financial institutions pledged more than $1,800 million for the coming year, according to U.S. Under Secretary of State Alan Larson.

Speaking to reporters in Washington January 25 about the international conference held in Tokyo January 21-22, Larson said the commitment exceeds the amount that the World Bank, Asian Development Bank and U.N. Development Program (UNDP) estimated was needed to meet the country's first-year needs. He said five-year pledges total $4,500 million.

The United States took the lead in getting maximum commitments from other countries, Larson said.

The meeting of donors and representatives of Afghanistan's interim government was the first major event attended by the new Afghan administration and was "one of the most successful events of this kind," Larson said. The meeting was co-chaired by the United States, Japan, the European Union (EU) and Saudi Arabia.

Larson said Chairman Hamid Karzai, the interim Afghan leader, made a "very, very strong showing" at the meeting and made a "strong commitment to running an accountable administration." He said a team from the International Monetary Fund (IMF) is working with the interim authority to establish an accountable system for disbursing donated funds. Karzai also wants the country to become economically self-reliant, Larson said.

Karzai emphasized the "traditional entrepreneurial character of the Afghan people" and their desire to "be standing on their own two feet" as quickly as possible, Larson said.

Larson said the United States is quickly trying to unfreeze assets that could be made available to the interim government. He said $193 million worth of gold and $24.9 million in cash is already being made available to the Central Bank of Afghanistan through the Federal Reserve Bank of New York.

In addition, he said, there is another $25 million in Afghan Central Bank funds being held in other accounts, $23 million in overflight fees that has been held in escrow and $1.3 million belonging to Ariana Afghan Airlines available to Afghanistan's government.

Larson said each donor will decide the types of projects it will fund in consultation with the interim Afghan government. He said U.S. Agency for International Development Director Andrew Natsios is currently in Afghanistan looking at sectors needing assistance.

He said a small amount of donor money will be used to cover the new Afghan government's start-up costs. Most funds will be spent on "high-impact, job-creating projects," in agriculture, education and health care, and on de-mining and anti-drug activities, he added. Aggressive de-mining is already under way, he said.

The private sector also will have a role in rebuilding the country, Larson said. Ultimately, the Afghan government wants a "private sector-driven economy with a large role for foreign investors and foreign businesses," he said.

Karzai wants foreign investors involved in Afghanistan at the "earliest possible moment," he said.

In the week before the conference, the U.S. Overseas Private Investment Corporation (OPIC) drew together a group of Afghan Americans, including some with businesses, to begin talking about investing in the country.

For the first year, Larson said, most of Afghanistan's revenue aside from foreign assistance will come from customs duties.