This report takes a close look at how the U.S. is spending civilian aid dollars in Afghanistan to make sure we are pursuing the most effective strategy in support of our national security objectives. We spend more on aid to Afghanistan than any other country and the environment in which the State Dept. and U.S. Agency for International Development(USAID) operate is difficult and dangerous. With the upcomingtransition to an Afghan security lead in 2014 and the increasedresponsibilities our civilians will absorb from the military, we havea critical planning window right now to make any necessary changes to support a successful transition. Contents of this report: Why Foreign Assistance to Afghanistan Matters; President Obama's Foreign Assistance Strategy for Afghanistan; Using Development Dollars to Support the U.S. Counterinsurgency Strategy (COIN); The Challenges of Spending U.S. Aid Dollars; Case Studies; Recommendations; Academic Literature Review: Development and Counterinsurgency; Appendixes. Tables. This is a print on demand report.