The main issue facing postconflict societies is how to construct a politically stable and democratic state, a state that has the institutions and legitimacy to remain viable in the long run. In Afghanistan, over two decades of civil conflict were brought to an end in December 2001 with the Bonn Agreement. This agreement laid the framework for building a functioning and democratic government. Seven years later, democracy in Afghanistan is at a critical juncture. Significant progress has been made in some areas but it is threatened by the failure of central government institutions to deliver the basic services of a functioning state. Weak institutions have led to a deterioration of security and have undermined the process of state-building. The conclusion of this case study of Afghanistan is that the creation of institutions is being pushed by international donors keen to adhere to a timetable, without ensuring that these institutions have the financial, human, and physical resources to function effectively. Unless concerted and coordinated actions are undertaken by the donor community as well as the Afghan state to ensure the quality of the institutions, the democratic state-building effort in Afghanistan will be derailed.