alternative livelihoods in afganistan what role can rural credit play?
TRANSCRIPT
What are: Sustainable Alternative Livelihoods?
• Livelihood: Capabilities, assets and activities for a means of living.
• Sustainable : essential resources and support services must be available to maintain the livelihood.
• Alternative livelihoods – replacing economic dependence on illicit narcotics with alternative legal activities.
Human Capital
Natural Capital
Physical Capital
Social Capital
Financial Capital
Some terminology
Livelihood ‘Assets’ at the centre
Vulnerability Context
• Shocks• Trends• Seasons
Livelihood ‘Assets’
Human
Social
Physical
Financial
Natural
Livelihood Strategies
Policies, Institutions &
Processes• Structures
- Government- Private Sector
• Processes- Laws- Policies- Culture- Institutions
Livelihood Outcomes
•+ Sustainable use of resources• + Income• + Well-being• - Reduced vulnerability• + Food security
[DFID’s] SL Framework
Presentation © theIDLgroup 2004
Features of a ‘Sustainable Livelihoods Approach’
• People centred
• Holistic – multiple strategies across sectors
• Builds on strengths and opportunities
• Dynamic
• Evidence base for policy
• Emphasises sustainability
Policies, Institutions, Processes
• Security and good governance• Policies to facilitate improved livelihoods• Laws and regulations that are enforced• Institutions that respond to people’s needs• Access to resources, information and
services
• Enabling people to improve livelihoods
Some Sources of Livelihood in Afghanistan
• Agriculture
• Employment
• Small business
• Trade
• Migration
• Combination of activities
Approach to AL development
• Understanding local economy and incentive structures
• Testing in the field
• Training and building support services
• Promotion and up-scaling• Monitoring and Evaluation
Evaluating Alternative Livelihood options
• How will the programme effect different groups (including women)?
• Is there a market for a new crop/ product?• What are the risks? • Will it create perverse incentives?• Is the programme socially, culturally, politically
appropriate and sustainable?• What support services need to be sustained?• What is the impact on access to land and water?
Rural Finance in Livelihoods
• Strengthens asset base (financial capital)• Increases resilience – lessens vulnerability• Opportunities for investment:
– Asset building– Income generation
• Supports social commitments • Supports seasonal subsistence
Support needed for rural finance
• Related to ‘Policies, Institutions, Processes’
• Enabling policies to promote investment and income generation
• Sustainable institutions with capacity
• Standards and regulatory framework
Conclusions
• Rural finance one component of improving rural livelihoods – but may not work without other support services.
• Finance is a means, not an end• Developing rural finance for alternative
livelihoods entails understanding current role of opium in livelihoods in general and in sourcing credit.