Urban Governance A good foundation is in place for a comprehensive urban reconstruction programme based on the principles of social inclusion, accountability, equity, and transparency. Urban development is a government priority. The Government has recognised the central role of cities in national development, and has articulated a clear, albeit preliminary, vision for the urban sector in the National Development Framework: “In urban management our aim is to invest in a balanced urban development programme across the country to create viable cities that are hubs of economic activity, and organically linked to rural areas.” An Urban Reconstruction Plan has been prepared. The Ministry of Urban Development and Housing (MUDH), with support from UN-HABITAT, has prepared a comprehensive national urban development programme focused on providing housing, services and employment for tens of thousands of people. The Plan is an attempt to facilitate discussions on existing and emerging urban needs and ways and means to address them within the context of the National Development Framework. Urban Management Consultative Group (CG) Established. The Government has established the Urban Management Consultative Group (CG), which includes the Ministry of Urban Development & Housing, UN-HABITAT, donors and related agencies. Its aim is to provide support to the MUDH in four priority areas: policy development, programme development, budgeting and monitoring and evaluation, with a view to enhancing Government-donor interaction and coordination of efforts. The Government has designated UN-HABITAT as its Focal Point for the Consultative Group. Urban Sector Budget for 2003-2004 approved. It is noteworthy that the Government has been able to prepare urban development budgets from the very first year of its formation. The budget preparation involves interested donors and government agencies who come together to deliberate on needs, priorities and the estimation of resources. The preparation also gives the Ministry an opportunity to think through issues and to reconcile immediate needs with longer-term priorities. Strategic projects underway. Several priority projects have already secured funding and are being implemented. The World Bank, Germany, Japan, the International Committee of the Red Cross (ICRC) and CARE, for example, are funding or implementing urban water supply and sanitation projects. The European Union is funding several projects aimed at building municipal capacity to address issues such as solid waste, drainage and sanitation. Italy has sent an urban planner to the Ministry of Urban Development and Housing. The Aga Khan Development Network is implementing several urban cultural heritage conservation projects. Inclusive urban management UN-HABITAT is working with civil society, local authorities, and the government to make urban development broad-based and inclusive. At the national level, UN-HABITAT has supported the Government in preparing an urban housing policy and continues to serve as the Secretariat to the Urban Management Consultative Group. At the local government level, UN-HABITAT has been working with the municipalities of Kabul, Kandahar, Jalalabad, Herat, and Mazar-i-Sharif, strengthening their management capacity through project implementation in the range of US$ 15 million. These projects cover the immediate needs of the urban population with a longer-term perspective in mind such as creating temporary jobs, improving small-scale city infrastructure, shelter reconstruction, and municipal capacity strengthening. At the community level, UN-HABITAT ensures that community representatives are involved in all its activities, be they urban or rural.