1st Edition

The Failure of Public Finance Management in Afghanistan Lessons for Other Conflict-Affected States

By Mohammad Qadam Shah Copyright 2026
208 Pages 21 B/W Illustrations
by Routledge

208 Pages 21 B/W Illustrations
by Routledge

In rebuilding conflict-affected states, a major portion of foreign aid focuses on reforming public finance management systems and supporting annual budgets. However, how budgets are allocated and how reforms take shape in practice remain critical questions. This book analyzes the politics of reform and budget allocation in the most expensive liberal state-building effort in history:... Read more

CHAPTER ONE

State Building and Public Finance Reform in Conflict-Affected States

 

CHAPTER TWO

The Origins of Afghanistan’s Fiscal Capacity (1747-2001)

 

CHAPTER THREE

Enduring Centralization: Public Finance Reforms and the Struggle for Decentralization in Afghanistan (2001–2021)

 

CHAPTER FOUR

Deconcentrated Planning and Budgeting in Action: Evaluating Afghanistan’s PDPG and PBP Performance (2016-2019)

 

CHAPTER FIVE

Unveiling Informal Dynamics: The Politics and Strategies Behind Afghanistan’s Discretionary Development Budget Allocation

 

CHAPTER SIX

Informal Dynamics in Action: The Tale of Four Afghan Provinces

 

CHAPTER SEVEN 

The Taliban’s Return to Power in 2021: Governance, Humanitarian Aid, and Public Finance

 

CHAPTER EIGHT

Lessons for Other Conflict-Affected States

Biography

Mohammad Qadam Shah is Assistant Professor of Global Development at Seattle Pacific University, USA.

This book offers a critical examination of Afghanistan’s public finance system, illustrating how political motives, rather than technical reforms, dictated the distribution of public funds. By employing a historical institutional approach and drawing on extensive fieldwork, the author reveals how centralized planning persisted despite numerous attempts at reform, shedding light on the complex dynamics that shaped Afghanistan’s state-building process. This insightful analysis is essential for anyone studying the intersection of politics, aid, and governance in conflict-affected states.

Scott FritzenPresident, Fulbright University Vietnam

Mohammad Qadam Shah’s The Failure of Public Finance Management in Afghanistan is essential reading for anyone interested in public finance reform under challenging conditions. This book offers a meticulously researched explanation of why the reconstruction effort in Afghanistan from 2001 until 2021 ultimately failed to prevent the Taliban’s return to power. Qadam Shah’s book emphasizes that the main reasons for the failures of post-conflict reconstruction lie in timeless questions about public administration and the perils of centralized public administration. It is an impassioned and thoughtful call to devote more attention to getting public administration reform "right" to promote peace and prosperity in conflict-affected states.

Ilia Murtazashvili, Professor, Graduate School of Public and International Affairs; Associate Director, Center for Governance and Markets, Campbell Visiting Fellow at the Hoover Institution, Stanford University