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2. Beyond the Market: Can the AREDP transfor
- Author:
- Adam Pain and Paula Kantor
- Publication Date:
- 02-2011
- Content Type:
- Policy Brief
- Institution:
- Afghanistan Research and Evaluation Unit (AREU)
- Abstract:
- The recently-launched Afghanistan Rural Enterprise Development Program (AREDP) was set up as a mechanism to promote rural employment and reduce poverty through market-led growth. However, the limitations of both agriculture and opportunities away from the farm as a path to prosperity raise serious questions about the AREDP’s ability to achieve its goals. This paper paper draws on the results of AREU's Afghanistan Livelihood Trajectories study to examine these issues. The general decline in household livelihood security it observed suggests that the vision of an agriculturally-led economic transformation has borne little fruit over the course of the past decade. In the few households that prospered, livelihood improvement was often closely tied to engagement with urban economies and links to patronage networks. For the majority that did not, rural diversification was primarily a coping strategy to mitigate agricultural failure, rising food prices and income loss from the opium ban. While the AREDP may boost market-driven agriculture in already productive areas with good access to markets, it is unlikely to achieve the kind of generalised transformation of Afghanistan’s rural economy that it hopes for. If it is to achieve its stated goal of reducing poverty, the programme must do more to test its underlying assumptions regarding community solidarity and market competition, as well as taking greater account of local and regional contexts. It must understand that poverty alleviation is not simply a secondary product of market development, but an end in itself.
- Topic:
- Security, Agriculture, Development, Rural, and Community
- Political Geography:
- Afghanistan and Middle East
3. Finding the Money: Informal Credit Practices in Rural Afghanistan
- Author:
- Floortje Klijin and Adam Pain
- Publication Date:
- 06-2007
- Content Type:
- Research Paper
- Institution:
- Afghanistan Research and Evaluation Unit (AREU)
- Abstract:
- It is widely believed that there is a strong demand for credit in Afghanistan and that much of this demand is unmet, justifying a major programme in microcredit provision. But there is very little understanding of the extent and the workings of informal credit systems, particularly outside opium poppy growing areas. Is there such an absence of credit available to poor rural households as is assumed? Do microfinance and informal credit respond to the same needs? Is informal credit simply the same thing as formal credit, except that it takes place outside formal institutions? And if there is more informal credit available than is believed, what does this mean for the development and role of formal credit systems? These key questions informed a detailed anthropological study of informal credit practices in three contrasting villages in Herat, Ghor and Kapisa. Drawing from a detailed presentation of eight households case studies, and amplified with addition case material, a number of key conclusions can be drawn from the findings.
- Topic:
- Development, Economics, Monetary Policy, Microcredit, Rural, Money, Demand, and Credit
- Political Geography:
- Afghanistan and South Asia