Conflict-affected

Although there have been some economic gains in recent years, most Afghans continue to struggle financially, and an estimated 90 percent of Afghan families rely on informal employment to support themselves. Young people from poor families are generally unable to afford costs associated with formal schooling, which places them at a disadvantage when seeking to enter the workforce. In response, the Afghanistan Secure Futures (ASF) project has engaged youth apprentices and informal sector small enterprises, in order to improve economic opportunities for vulnerable children and youth apprenticed in small workshops in the construction trade. The activity was implemented by MEDA (Mennonite Economic Development Associates) under the STRIVE program managed by FHI 360, with funding from USAID’s Displaced Children and Orphans Fund (DCOF).

Download the PDF to find out how ASF generated new learning in an under-served arena of development: the role of non-formal education and apprenticeships in alleviating poverty.

A significant body of knowledge exists on the relationship between poverty and conflict. Research has shown that low per capita income and slow economic growth drastically increase the chances that a country will experience violence. Driven in part by these findings, donors and their partners are implementing increasing numbers of economic development programs in conflict and post-conflict environments, based on the assumption that these will contribute to both poverty reduction and conflict management.

To test this assumption, Mercy Corps implemented the USAID-funded Evaluation and Assessment of Poverty and Conflict Interventions (EAPC) research project. Over the 18 month life of the project, Mercy Corps worked with its field teams in Ethiopia, Indonesia, and Uganda to 1) develop indicators and data collection tools, 2) field test these indicators and tools, and 3) begin to assess several theories of change that inform Mercy Corps’ programs.

Drawing on the World Bank's Moving Out of Poverty dataset, this investigation explores the life stories of 125 women who have lived through violent political conflict in four countries: Colombia, Indonesia, the Philippines, and Sri Lanka.  Two key findings emerged. First, the women living in communities directly affected by violent political conflict rated more highly on empowerment measures than the women living in communities that did not experience conflict. Second, once the violence drew to a close, the set of conflict-affected communities that experienced the most rapid recovery and poverty reduction were also characterized by more empowered women than the set of conflict-affected communities with lower rates of poverty reduction.

The life stories reveal that conflict and recovery, while bringing great suffering, also presented new opportunities for many women as traditional local structures, livelihoods, and gender norms were disrupted. During periods of violence, many women helped their households cope by diversifying and intensifying their economic activities. In the aftermath, they often continued to play more active economic roles as they struggled to recover and rebuild. In some cases, effective post-conflict reconstruction and development interventions created new opportunities for women to improve their livelihoods, access finance, join new groups, and, more rarely, become politically  engaged. In these ways, women often gained more independence and contributed actively to the recovery of their families and communities. The communities with both extensive poverty reduction and women's empowerment were characterized by reasonable levels of local security , access to active markets, and local governance that was adequate enough to attract and make good use of post-conflict aid.  The report presents broad recommendations for interventions that take advantage of a window for programming interventions that build on these positive but time-limited forces.

This document explores the existing literature for lessons, tools and insights on the development and implementation of economic recovery and growth programs in conflict-affected environments. The paper examines the causes and impacts of conflict through the lens of economic growth, including the constraints and opportunities created by conflict for each element of the value chain framework. This is followed by an analysis of the implications for design and implementation of value chain-based interventions in conflict-affected environments. Preliminary conclusions are drawn concerning how the value chain approach can contribute to the sustainable rebuilding of market systems in conflict-affected situations. Several tools are identified for development.

In most developed economies, consumers take for granted the ability to engage in banking transactions performed electronically, such as transferring money between accounts or checking balances by telephone or online, and paying for goods and services using credit and debit cards. In Palestine, however, the ability to securely use plastic rather than cash to safely and conveniently buy everything from groceries to airline tickets is far from the norm. Although access to bank accounts is widespread, a variety of technological, regulatory, cultural, and political barriers impede the growth of E-banking, including a restrictive legal framework, ATMs and other point-of-service services that are not interoperable, and insufficient information on the creditworthiness of potential customers.

In light of such challenges, the ESAF program, an Associate Award under the FIELD-Support LWA is exploring a package of near-term interventions focused on issues the Palestinian Monetary Authority (PMA) and industry stakeholders have control over, and which can yield “quick wins” in order to spur further reform. This "ESAF Brief," part of the ESAF Knowledge Series, explores the challenges and opportunities in E-banking in Palestine.

See also:

• ESAF Report: Assessing Opportunities For Increasing Acceptance Of Electronic Money In Palestine
• ESAF Report: The Future of Financial Inclusion through E-banking Models in Palestine