Agriculture and rural development
Seventy per cent of the Afghan population is dependent on agriculture for their livelihoods. But this work is affected by seasonal and chronic unemployment and many Afghans are forced to find work in the illegal economy as a better source of revenue.
Agriculture and rural development remains the most promising growth sector. Agriculture has a high multiplier impact on developing countries’ economies and contributes to environmental protection. The needs of the sector are huge in terms of financing as well as in terms of re-organising intervention logic. The EU has emerged as the leader of this sector. More than its funding levels, this leadership has been built on the ability to coordinate donors and communicating on their behalf with all cluster ministries in order to frame a national policy approach. Outside agriculture, existing rural development programmes aiming at developing secondary transport infrastructure critical to linking up rural communities, fostering off-farm employment through rural enterprises and consolidating local governance institutions have strong conceptual complementarities.
The emergent link with local governance institutions is partially the outcome of strong EU policy dialogue with both the Ministry of Rural Development and the Independent Directorate for Local Governance. Considering the poor state of Afghan rural communities and the potential of the agricultural sector, the absorption capacity of the sector is huge – and since a substantial part of the population lives in rural areas, the impact will be broad and significant. In terms of poverty reduction and stabilisation of growth, agriculture and rural development should therefore remain a priority for the government. This is confirmed by the fact that the government has indicated its desire that ARTF expands its support to this sector, a process which has been largely facilitated by the EU.
The European Union works in rural areas throughout the country helping to tackle food insecurity, supporting agricultural development, animal husbandry, water management and environmental conservation. Almost all EU agriculture and rural development related projects have been aimed at rehabilitating the economic and social fabric of Afghan society. As one example among many, one major irrigation dam repaired by the European Union on the Khanabad river now provides irrigation to 35 000 ha of land, increasing the food production for a population of some 50 000 people.