The move is also considered an important factor upon which the US relied when developing key components of the US South Asia Policy.
The decree was signed by Ghani in Kabul during the meeting of Bilateral Compact Executive Committee, known as Compact. It is an initiative to demonstrate the government's commitment to creating a peaceful, stable, and prosperous society.
"The development of the compact and its ultimate implementation was an important consideration in the development of the administration's new South Asia strategy," State Department Spokesperson Heather Nauert told reporters at her daily news conference.
The Afghan Chief Executive Abdullah Abdullah highlighted the fact earlier this week, when he said that nation building is a job for the Afghans themselves and not the United States or other countries.
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According to State Department Spokesperson, the compact represents the Afghan Government's commitment to key reforms aimed at improving security and creating a more peaceful, stable, and prosperous society.
"The implementation of the new commitments, which include benchmarks in four key areas - governance, security, peace and reconciliation, and economics - they carry with them the opportunities to improve the delivery of government services, stem official corruption, and prepare for secure national elections in 2018.
"The benchmarks are tied to global standards of good governance put forward by the World Bank and other leading institutions," Nauert said.
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