Urban Livelihoods in Afghanistan - the Afghanistan Research and ...

Urban Livelihoods in Afghanistan2. The Political Economy of Afghan Urban Livelihoods2.1 BackgroundIn 2001, Afghanistan emerged from 22 yearsof war to face increased economic, politicaland social challenges. In the wake of aprotracted drought (1999-2001) and a decadeof relentless political violence through yearsof civil war and Taliban oppression, thepredominantly rural economy was severelyweakened. Livelihoods were devastated bythe decimation of livestock and agriculturalproduction. Falling incomes, loss of assetsand the ravages of war saw over 5 millionpeople displaced as refugees in neighbouringcountries. As a recent World Bank reportsuggests, “Afghanistan was essentially leftout of the last 25 years of global development,with virtually no increase in per capita incomeduring this period and an average lifeexpectancy of only 43 years.” 4 Indeed,Afghanistan remains one of the world’spoorest countries, with an average per capitaGDP of US$300 per annum (including opium).It has persistently poor social indicators anda gender gap only exceeded by Niger. 5.........From this disheartening base the economyhas recovered fairly well, although at adeclining rate. 6 To a significant degree,economic growth has been associated withthe cessation of drought and war, as well asthe benefits of reconstruction, such as thebooming construction industry. Sustainingthe targeted nine percent growth rate willrequire higher agricultural yields, lessdependence on the poppy economy anddiversification of economic activities withthe growth of other sectors.Cities play a crucial role in stimulating thenational economy through local economicdevelopment and the facilitation of regionaland international trade. At present manyeconomic opportunities — and relatedlivelihood opportunities — are confined tothe informal economy. While it provides poorurban families with an immediate means oflivelihood, operating in this unregulatedinformal economy also means no job security,earning income from temporary work thatdo not always translate into sustainablelivelihoods. Moreover, when income isirregular, there is less capacity to affordbasic services, much less own a home or savemoney for the future.For internally displaced persons (IDPs),resources are even more limited. As refugeesforced to live a transient life across ruralurbanand regional and national boundaries,it is much more difficult for them to establishlinks with social networks. As a result, theylose an important safety net, given thataccess to employment, housing and loansdepends on knowing people with influenceand who are widely connected within acommunity. Opportunities that do arise as aresult of growing political stability andreconstruction do not usually extend to thosewho are unconnected and vulnerable.IDPs and refugees, who returned after thecessation of hostilities in 2001, found littleto support a living in the countryside. Insearch of adequate income, many familiesmade their way to Afghanistan’s national andprovincial capitals. Even those who remainedin the rural areas diversified their livelihoodsby sending some household members to townsand cities. This intensified competition forurban livelihood opportunities. While accuratestatistics remain unavailable, it is generally4 World Bank (2004), Afghanistan: State Building, Sustaining Growth and Reducing Poverty, A Country Economic Report,Poverty Reduction and Economic Management Sector Unit, South Asia Region, Report No. 29551-AF, 9 Sept 2004, p. xvi.5 UNDP (2003), Human Development Report: Millennium Development Goals: A Compact among Nations to end HumanPoverty, New York: UNDP.6 GDP growth rates were 25-30 percent in 2002-03, 15-20 percent in 2003-04 and estimated at 8 percent in 2004-05. SeeUNDP (2004), Afghanistan National Human Development Report: Security with a Human Face. Kabul: UNDP; and GoA (2005),Afghanistan Statistical Yearbook 2005. Kabul: GoA.Afghanistan Research and Evaluation Unit 9