Addressing the obstacles for Afghan SMEs to employ women and support their economic empowerment - Commissioned by the ministry of Foreign Affairs
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Addressing the obstacles for Afghan SMEs to employ women and support their economic empowerment Commissioned by the ministry of Foreign Affairs
ADDRESSING
THE
OBSTACLES
FOR
AFGHAN
SMES
TO
EMPLOY
WOMEN
AND
SUPPORT
THEIR
ECONOMIC
EMPOWERMENT
Holly
A
Ritchie,
Consultant
for
Netherlands
Enterprise
Agency
Nairobi,
Oct
25
2016,
Final
Report
CONTENTS
ACRONYMS
AND
NOTES
....................................................................................................................
3
EXECUTIVE
SUMMARY
......................................................................................................................
4
I
INTRODUCTION
AND
OVERVIEW
OF
REPORT
.............................................................................
8
1.1
ECONOMIC
CONTEXT
OF
AFGHANISTAN
.................................................................................................................
9
1.2
GENDER
AND
BUSINESS
.........................................................................................................................................
10
1.3
CONSULTANCY
APPROACH
AND
METHODS
.........................................................................................................
11
1.4
REPORT
STRUCTURE
..............................................................................................................................................
12
II
GUIDELINES
FOR
AFGHAN
SMES
EMPLOYING
WOMEN
...........................................................
13
2.1
COUNTRY
CONTEXT
AND
TRENDS
.......................................................................................................................
13
2.1.1
A
resilient
but
war-‐embattled
country
.................................................................................
13
2.1.2
Economy
embedded
in
tradition
and
risk
...........................................................................
14
2.1.3
Post
2014:
political
uncertainty,
market
collapse
and
deterioration
in
security16
2.2
WOMEN
AND
WORK
..............................................................................................................................................
18
2.2.1
Traditional
cultural
practice
of
purdah
..............................................................................
19
2.2.2
Changing
attitudes
and
practices
in
women’s
economic
roles
..................................
20
2.2.3
Situation
post
2014
–
threatening
women’s
fragile
economic
gains?
....................
22
2.3
EMPLOYMENT
OF
WOMEN
IN
SMES
...................................................................................................................
24
2.3.1
Recruitment
of
women
................................................................................................................
25
2.3.2
Employment
arrangements
of
women
.................................................................................
27
2.3.3
Promoting
women’s
economic
empowerment
..................................................................
28
III
RECOMMENDATIONS
FOR
RVO
IN
AFGHANISTAN,
AND
INSIGHTS
FOR
FRAGILE
STATES
......
31
3.1
RECOMMENDATIONS
FOR
RVO
IN
SUPPORTING
SMES
AND
GENDER
IN
AFGHANISTAN
............................
31
3.2
KEY
INSIGHTS
FOR
SMES
AND
GENDER
IN
FRAGILE
SETTINGS
.......................................................................
32
REFERENCES,
AND
FURTHER
READING
........................................................................................................................
34
APPENDIX
1:
ASSIGNMENT
DETAILS/TOR
.......................................................................................................
36
APPENDIX
2:
BRIEF
PSI-‐FINANCED
SME
CASE
STUDIES
IN
AFGHANISTAN
................................................
39
A2.1
CASE
1:
KABUL
DAIRY
PROCESSING
PLANT
(PSIP11/AF/25)
................................................................
39
A2.2
CASE
2:
IMPROVEMENT
OF
DAIRY
&
BEEF
CATTLE
AFGHANISTAN (PSIP13/AF/23)
..........................
43
APPENDIX
3:
RESEARCH
RESPONDENTS/RELEVANT
ORGANIZATIONS
MET
IN
HOLLAND
AND
AFGHANISTAN
(JULY-‐AUG
2016)
.........................................................................................................................
51
APPENDIX
4:
TRADITION
OF
PURDAH
IN
AFGHANISTAN,
AND
ITS
VARIATIONS
...........................................
53
APPENDIX
5:
EXPERIENCE
OF
CARD
F
IN
DAIRY
SECTOR
IN
AFGHANISTAN:
FROM
SUPPORT
TO
STANDARDIZED
FEED
AND
ANIMAL
HEALTH
TO
MILK
COLLECTION
IN
BALKH
..................................................
55
APPENDIX
6:
CONSULTANT
BACKGROUND
.........................................................................................................
57
ACRONYMS
AND
NOTES
ACRONYMS
ACCI
Afghanistan
Chamber
of
Commerce
and
Industry
AISA
Afghanistan
Investment
Support
Agency
(independent)
AWBF
Afghan
Women’s
Business
Federation
BDS
Business
Development
Services
CDC
Community
Development
Council
(elected
village
council
/
government)
FAO
UN
Food
and
Agriculture
Organisation
FEA
Female
Extension
Agent
(under
HLP)
GIZ
German
Government
International
Cooperation
HLP
(National)
Horticulture
and
Livestock
Project
(Government/WB
Funded)
ILO
International
Labour
Organisation
MAIL
Ministry
of
Agriculture,
Irrigation
and
Livestock
MOWA
Ministry
of
Women’s
Affairs
NGO
Non-‐governmental
Organisation
PSI
Private
Sector
Investment
(programme
of
RVO)
SHG
Self
Help
Groups
(group
involved
with
savings
and
credit)
SME
Small
and
Medium
Enterprises
USAID
United
States
Agency
for
International
Development
WB
World
Bank
USEFUL
NOTES
Glossary
of
local
terms
jerib
A
measurement
of
land.
1
jerib
is
approximately
1/5
ha
or
1⁄2
an
acre.
maharam
A
male
relative
(or
a
woman’s
husband)
that
can
accompany
a
woman
outside
of
the
household.
mullah
A
local
religious
representative
(male),
often
with
authority
over
a
local
mosque.
Pashtun
The
most
populous
ethnic
group
in
Afghanistan,
representing
about
50
per
cent
of
all
Afghans
(CPAU
2007).
Pashtunwali
The
tribal
honour
code
used
to
regulate
Pashtun
society,
with
a
strong
emphasis
on
control
and
protection
of
women.
purdah
The
practice
among
women
in
certain
Muslim
and
Hindu
societies
of
living
in
a
separate
room
or
behind
a
curtain,
or
of
dressing
in
all-‐enveloping
clothes,
in
order
to
stay
out
of
the
sight
of
men
or
strangers.
shura
A
traditional
village
council/gathering
in
Afghanistan
assembled
as
required,
no
firm
membership.
Tajik
The
second
most
populous
ethnic
group
in
Afghanistan,
predominantly
living
in
the
north
of
the
country,
possibly
representing
25-‐30
per
cent
of
the
population.
Guidelines
to
Address
the
Obstacles
for
Afghan
SMEs
to
Employ
Women,
Ritchie,
Oct
2016
3
EXECUTIVE
SUMMARY
This
report
looks
at
gender
and
employment
in
SMEs
in
the
fragile
context
of
Afghanistan.
In
fragile
states,
RVO
has
implemented
a
Private
Sector
Investment
programme
(PSI):
to
support
‘technology
and
knowledge
transfer’,
often
between
Dutch
and
local
businesses.
In
Afghanistan,
RVO
has
supported
a
total
of
21
PSI
joint
ventures,
with
10
projects
still
on-‐going
in
2016.
A
major
barrier
for
Afghan
business
is
women’s
employment
-‐
a
key
area
for
RVO
-‐
with
all
of
the
PSIs
encountering
various
‘obstacles’
/
persisting
gender
related
issues.
The
main
purpose
of
the
assignment
was
to
better
understand
obstacles
to
employ
women,
as
encountered
by
two
PSI
financed
Joint
Ventures
in
Afghanistan
and
to
suggest
a
strategy
for
removing
these
obstacles.
The
report
presents
brief
practical
guidelines
for
SMEs,
partner
organizations
and
financing
organizations
to
facilitate
women’s
employment
and
economc
empowerment.
In
view
of
this,
the
report
then
offers
key
insights
and
recommendations
for
financing
institutions
(such
as
RVO)
in
Afghanistan
and
beyond.
Adding
value
to
existing
studies,
the
report
provides
an
indepth
understanding
of
the
evolving
cultural
position
of
women
in
Afghanistan,
and
their
involvement
in
employment
and
paid
labour
in
a
changing
and
volatile
context,
with
a
particular
review
of
two
RVO-‐funded
PSI
case
studies
outlined
in
TOR
MAT16AF01
(Case
1:
Dairy
production
near
Kabul
and
Case
2:
Artificial
insemination
business,
Mazar-‐e-‐Sharif).
The
short
assignment
drew
on
desk
research1
as
well
as
a
one
week
field
mission
to
Afghanistan.
Various
representatives
of
government,
NGOs
and
coordinating
agencies,
donors,
and
local
SMEs
were
met
in
both
Kabul
and
Mazar.
! Guidelines
for
Afghan
SMEs
employing
women
/
key
findings
For
Afghan
SMEs
and
international
organizations
alike,
it
is
critical
to
appreciate
the
evolving
social,
political
and
economic
landscape
of
Afghanistan.
Such
dynamics
shape
the
nature
of
Afghan
markets,
actor
behaviour
and
trends
related
to
women
and
work.
For
SMEs,
it
is
also
important
to
understand
evolving
norms
and
best
practices
related
to
women’s
recruitment,
employment
arrangements,
and
economic
empowerment.
The
following
summarises
trends
in
the
Afghan
context
and
business,
women
and
work,
and
practical
recommendations
for
SMEs
related
to
women’s
employment.
I
COUNTRY
CONTEXT
AND
BUSINESS
TRENDS
Afghanistan
remains
one
of
the
most
challenging
places
to
do
business
in
the
world
with
persisting
conflict,
uncertain
political
dynamics,
and
risky
and
exclusive
markets.
In
2016,
the
economic
situation
was
shown
to
be
particularly
fragile,
with
a
further
deterioration
in
country
security,
and
political
and
economic
uncertainty,
although
the
World
Bank
hinted
at
economic
optimism,
if
reforms
can
be
instituted
and
stability
can
be
regained.
2
1.1. Afghanistan
is
characterized
by
risk
and
informality,
with
strong
gender
related
biases.
Business
is
still
largely
done
through
‘who
you
know’
and
people
are
not
hired
on
merit.
Non-‐elite
newcomers
and
marginalised
groups
such
as
women
struggle
to
participate.
1.2. In
2016,
Afghanistan’s
economic
situation
was
deemed
extremely
fragile,
with
the
major
withdrawal
of
donor
aid
in
2014,
the
subsequent
collapse
of
the
aid/military
contract
1
Notably, the consultant has extensive experience in the context (2004-2014), and completed her PhD examining
women and enterprise in Afghanistan (Ritchie 2016).
2
In October 2016, a new international conference was held on Afghanistan in Brussels, with fresh pledges of support
until 2020 (13.6 Billion Euros), offering renewed hope for confidence building in markets and beyond.
Guidelines
to
Address
the
Obstacles
for
Afghan
SMEs
to
Employ
Women,
Ritchie,
Oct
2016
4
economy,
and
political
uncertainty
and
insecurity.
This
has
inhibited
new
business
development
and
growth.
1.3. With
the
economic
downturn
and
reduction
in
funding,
many
businesses
have
now
closed,
particularly
new
women’s
businesses.
A
decline
in
the
availability
of
jobs
and
growing
insecurity
has
led
to
increases
in
criminal
activity
and
migration
in
2015.
The
high-‐risk
context
leads
SMEs
to
pursue
‘coping’
rather
than
‘pro-‐growth’
strategies.
1.4. Highlighting
regional
differences,
Afghanistan
is
divided
into
5
economic
zones
attached
to
key
cities:
Kabul,
Mazar,
Kandahar,
Jalalabad
and
Heart.
Variations
in
sub-‐culture,
foreign
ties
and
resources
influences
local
business
character,
status
and
potential.
II
WOMEN
AND
WORK
IN
AFGHANISTAN
Conservative
and
fragile
settings
(where
the
state
is
weak/absent)
such
as
Afghanistan
represent
particularly
challenging
contexts
for
women
and
business.
Over
2014-‐2016,
mixed
environmental
dynamics
have
increased
public
conservatism/nervousness
around
women’s
public
roles
and
engagement
in
work.
2.1. Traditional
cultural
practices
such
as
purdah
constrain
women’s
movement
outside
of
the
domestic
sphere,
and
public
relations.
Variations
in
purdah
may
be
shaped
by
ethnicity/region,
age,
marital
status,
and
wealth.
2.2. In
the
past
fifteen
years,
aid
and
reconstruction,
evolving
media
(TV
and
radio)
and
women’s
political
participation
have
opened
up
ideas
around
women’s
economic
rights,
and
attitudes
related
to
women’s
work,
with
more
women
in
jobs.
2.3. Whilst
there
is
still
a
strong
preference
by
the
public
for
women
to
work
in
more
female-‐
oriented
professions
such
as
teaching,
or
home-‐based
handicrafts,
urban
women
have
now
broached
new
private
sector
employment
e.g.
media,
telecommunications.
2.4. Women-‐run
businesses
remain
predominantly
in
the
urban
areas
in
the
middle
and
upper
classes,
typically
with
existing
business
families
(or
those
with
high-‐level
connections).
Yet
for
these
‘empowered’
women,
travel
can
still
pose
a
problem.
2.5. For
women
outside
of
the
elite,
support
for
vocational
training,
enterprise
and
micro
finance
have
been
instrumental
in
business
participation.
Local
attitudes
can
be
gradually
overcome,
particularly
with
strong
relations,
and
education
and
(progressive)
religious
messages.
Women’s
new
economic
norms
can
unleash
liberal
social
attitudes.
2.6. In
mid
2016,
women’s
economic
gains
appear
to
be
threatened,
with
contextual
uncertainty,
rising
insecurity
and
a
reduction
in
donor
support.
This
has
increased
public
conservatism
around
women
and
work.
Yet
simultaneously,
there
appeared
to
be
strong
support
for
women’s
employment
within
the
business
sector
itself.
2.7. Deterioration
in
the
context
has
led
to
increased
pressures
by
families
on
women
and
work-‐related
restrictions,
including
both
permission
to
work
(out
of
the
house),
as
well
as
conditions
on
participation
in
work
(e.g.
location,
type
and
duration
of
work).
For
lower
class
women
however,
despite
increased
insecurity,
the
dire
economic
situation
has
propelled
them
to
seek
work,
particularly
with
male
migration.
2.8. Urban
women
highlight
3
major
barriers
to
women
in
work:
• Availability
of
suitable
jobs
(i.e.
in
acceptable
sectors,
near
to
family
home),
• Local
security
situation
(leading
to
families
clamping
down
on
movement)
• Openness
of
family/community
(i.e.
conservative
attitudes)
Guidelines
to
Address
the
Obstacles
for
Afghan
SMEs
to
Employ
Women,
Ritchie,
Oct
2016
5
III
EMPLOYMENT
OF
WOMEN
IN
SMES
3.1
Recruitment
procedures
(Urban)
women
are
increasingly
involved
in
business
and
firms,
although
recruitment
procedures
differ
for
skilled
versus
low-‐skilled
positions,
influencing
levels
of
formality.
3.1.1. In
Kabul,
up
to
2/3
of
working
age
women
are
interested
to
engage
in
(external)
work.
Young,
and
young
married
women
still
face
pressures
to
remain
home
however.
3.1.2. From
the
SME’s
perspective,
women
are
often
perceived
as
better
(mid
level
and
lower
level)
workers
than
men,
with
more
diligence
in
their
work,
and
attention
to
detail.
3.1.3. For
mid-‐higher
skilled
positions,
formal
advertisement
approaches
are
pursued.
To
ensure
commitment
and
loyalty
in
an
uncertain
environment,
SMEs
find
that
it
is
critical
to
promote
flexible
working
arrangements,
and
competitive
work
packages.
3.1.4. For
lower
level
positions
such
as
low-‐skilled
factory
work,
women
tend
to
be
identified
informally
through
coordinating
with
local
communities.
3.1.5. There
is
an
increasing
interest
by
(unskilled,
poorer)
women
in
urban
areas
in
factory
work,
although
such
jobs
are
difficult
to
find
and
are
not
commonly
advertised.
Such
work
(for
women)
may
also
be
perceived
as
shameful
by
local
families.
3.2
Employment
arrangements
Employment
arrangements
differ
for
skilled
versus
low-‐skilled
positions,
and
may
also
be
related
to
local
levels
of
conservatism.
3.2.1. Certain
norms
are
emerging
related
to
arrangements
of
women
at
work
that
are
culturally
acceptable,
with
regional
/
ethnic
variations.
3.2.2. In
office
work,
women
typically
work
side-‐by-‐side
with
men.
It
is
worth
noting
that
for
unmarried
women,
families
are
often
strict
on
their
working
hours.
3.2.3.
At
the
low/unskilled
factory
level,
more
conservatism
is
generally
seen,
and
stricter
family
allowances
on
women’s
participation
(often
from
less
educated
families).
SMEs
tend
to
forge
close
relations
with
local
communities
that
supply
female
staff
to
ensure
their
trust,
and
maintain
complete
segregation
of
female
labourers
on-‐site.
3.2.4. Outreach
work
remains
more
challenging
for
women.
For
community
and
extension
work,
some
NGOs
and
government
offices
have
managed
this
by
employing
older
widowed
women,
teams
of
women,
or
married
couples.
3.2.5. With
ongoing
instability,
and
increased
public
’nervousness’,
it
is
critical
to
ensure
that
women’s
place
of
work
is
convenient
and
safe,
activities
are
transparent
(and
culturally
acceptable),
and
time
restrictions
respected.
3.3
Economic
empowerment
Women’s
economic
empowerment
is
affected
by
both
participation
in
productive
and
safe
employment
(within
firms),
as
well
as
in
access
to
banking
and
finance,
permitting
women’s
economic
independence.
For
SMEs
interested
in
women’s
further
empowerment,
it
is
crucial
to
consider
their
careful
role
in
this
as
employers,
but
also
as
‘social’
entrepreneurs.
3.3.1. Women’s
economic
participation
and
empowerment
is
greatly
affected
by
the
company
policy
and
corporate
environment
that
allows
women
to
engage
productively,
fairly
and
safely.
SMEs
may
have
developed
basic
internal
CSR
guidelines,
Guidelines
to
Address
the
Obstacles
for
Afghan
SMEs
to
Employ
Women,
Ritchie,
Oct
2016
6
but
these
require
further
development
in
the
addition
of
specific
gender
policies.
3.3.2. For
SMEs,
promoting
gender
awareness
and
support
can
also
be
boosted
through
annual
gender
workshops,
and
team
building;
and
as
appropriate,
appointing
a
gender
focal
point
amongst
the
staff
that
can
raise
critical
issues
to
the
management.
3.3.3. Beyond
the
office,
for
women’s
broader
economic
empowerment
(as
both
business
owners
and
as
employees),
‘financial
inclusion’
is
critical
for
their
economic
independence,
including
access
to
bank
accounts,
savings
and
to
credit.
In
employment,
women’s
economic
empowerment
may
ultimately
also
include
gaining
stronger
‘income
control’.
! Recommendations
for
RVO:
SMEs
and
gender
in
Afghanistan
In
light
of
the
major
findings
from
this
report,
the
following
describes
a
few
brief
recommendations
for
RVO
in
supporting
SMEs
in
Afghanistan,
and
in
promoting
women’s
inclusion
and
economic
empowerment:
• RVO
should
support
SME
‘survival’
in
turbulent
times,
with
expansion
as
appropriate.
• RVO
should
appreciate
regional
variations
to
support
relevant
business
development
(in
view
of
opportunities
and
constraints)
within
different
parts
of
Afghanistan.
• RVO
should
coordinate
with
the
Afghanistan
Chamber
of
Commence
and
Industry
(ACCI),
to
support
SME
business
networking
and
(further)
investment
support;
and
to
influence
government
policies,
particularly
related
to
gender.
• RVO
should
promote
exchange,
and
company
own
support
to
women’s
productive
and
safe
employment,
and
economic
empowerment
within
SMEs
(financial
literacy,
access).
• (In
addition
to
gender)
RVO
should
consider
future
part-‐investment
in
‘BOP’
impact
(products/services
that
support
the
needs
and
well-‐being
of
the
poor).
! Insights
for
business
and
gender
in
fragile
states
The
research
offers
some
brief
insights
that
may
be
useful
for
RVO
working
with
SMEs
and
gender
in
other
fragile
settings:
• Fragile
states
remain
extremely
difficult
to
do
business,
and
Dutch/local
partnerships
should
remain
cautious:
develop
businesses
appropriately,
ensure
strong
local
ties,
and
appreciate
local
variations
in
context
/
ethnic
groups.
• Staff
hiring
and
retention
for
SMEs
is
challenging
due
to
the
fickleness
of
the
market.
Joint
ventures
should
be
encouraged:
to
offer
competitive
packages,
to
build
a
strong
team
environment,
and
to
ensure
flexibility
with
staff
needs
(particularly
female
staff).
• For
women
in
conservative
Islamic
contexts,
participation
in
external
work
can
be
challenging.
Local
relationship
building
is
critical.
Local
attitudes
can
be
gradually
overcome,
particularly
through
education,
and
(progressive)
religious
messages
(by
local
people).
Factory
work
may
be
sensitive
/
shameful.
• SMEs
need
to
support
safe
and
productive
employment
of
women
through
internal
policies
and
structures,
and
good
community
relations;
and
over
time,
economic
empowerment
through
access
to
banking.
• Increased
public
nervousness
from
local
volatility
can
lead
to
a
clamp
down
on
women’s
work
influencing
choice
of
work,
location
and
conditions
of
work.
Guidelines
to
Address
the
Obstacles
for
Afghan
SMEs
to
Employ
Women,
Ritchie,
Oct
2016
7
I
INTRODUCTION
AND
OVERVIEW
OF
REPORT
Under
the
auspices
of
the
Netherlands
Ministry
of
Economic
Affairs,
the
Netherlands
Enterprise
Agency
(RVO)
works
with
entrepreneurs
around
the
world
to
encourage
and
promote
sustainable,
agrarian,
innovative
and
international
business.
The
overall
goal
of
RVO
is
to
improve
economic
opportunities
for
(Dutch
and
non-‐Dutch)
entrepreneurs
and
to
strengthen
their
position
in
the
market
towards
sustainable
and
innovative
business.
RVO
provides
both
financial
and
technical
support
in
helping
with
grants,
finding
business
partners,
boosting
know-‐how,
and
aiding
in
compliance
with
relevant
laws
and
regulations.
In
fragile
states
(where
the
state
is
weak
or
absent),
RVO
has
specifically
implemented
a
Private
Sector
Investment
programme
(PSI)
that
has
aimed
to
support
‘technology
and
knowledge
transfer’,
often
between
Dutch
and
local
businesses,
with
‘positive
spin-‐off
effects’
for
local
economies
(Hoffmann
and
Lange
2016).
Globally,
RVO
has
supported
approximately
1200
PSI
joint
ventures.
In
Afghanistan,
RVO
has
supported
a
total
of
21
PSI
joint
ventures,
with
10
projects
still
on-‐going
in
2016.
In
addition
to
negotiating
a
turbulent
and
challenging
market
context,
a
major
barrier
for
Afghan
business
and
PSI
joint
ventures
is
women’s
employment.
From
RVO
experience,
whilst
several
SMEs
financed
by
PSI
have
successfully
employed
women
in
Afghanistan,
all
have
encountered
various
‘obstacles’.
Potential
female
employees
have
often
struggled
to
gain
initial
permission
from
their
husband
or
parents
to
work.
Some
Map
of
Afghanistan,
and
location
of
Cases
entrepreneurs
have
managed
to
convince
them
that
their
female
family
members
would
be
safe
and
respected
in
segregated
areas
of
the
company.
Yet
two
of
the
SMEs
are
currently
still
experiencing
gender-‐based
challenges
in
Afghanistan:
Case
1:
a
Dairy
Production
business
near
Kabul,
and
Case
2:
Improvement
of
Beef
and
Cattle
(artificial
insemination
business)
in
Balkh
(see
map
inset).
This
report
looks
at
gender
and
employment
in
SMEs
in
Afghanistan.
Taking
a
focus
on
socio-‐economic
dynamics,
this
short
assignment
aimed
to
contribute
to
better
understanding
and
addressing
obstacles
for
women’s
employment
in
SMEs,
and
to
support
their
economic
empowerment
(see
Appendix
1,
TOR
MAT16AF01).
Adding
value
to
existing
reports
(e.g.
GTZ,
2016;
Ritchie,
2012;
Ganesh,
2012),
the
report
provides
both
an
up-‐to-‐date
and
nuanced
analysis
of
contextual
trends
and
dynamics
(2014-‐2016),
and
practical
and
straightforward
guidelines
and
recommendations
for
SMEs,
partner
organizations
and
financing
organizations
to
facilitate
women’s
employment.
The
report
looks
closely
at
the
(evolving)
cultural
position
of
women
in
Afghanistan
as
regards
to
them
being
involved
in
employment
and
paid
labour,
and
draws
together
key
insights
and
recommendations
for
SMEs
and
financing
institutions
(such
as
RVO).
Particular
gender
issues
encountered
by
the
two
RVO
PSI
financed
Joint
Ventures
in
Afghanistan
are
presented
in
Appendix
2.
This
discussion
provides
an
overview
of
each
of
the
businesses
and
reflections
on
gender
constraints,
and
suggests
some
potential
strategies
for
removing
these
obstacles.
Guidelines
to
Address
the
Obstacles
for
Afghan
SMEs
to
Employ
Women,
Ritchie,
Oct
2016
8
3
1.1 ECONOMIC CONTEXT OF AFGHANISTAN
Taking
a
brief
look
at
the
economic
situation,
contrary
to
expectations,
over
the
2000s,
Afghanistan
had
a
fairly
vibrant
economy,
if
fragile
and
turbulent.
After
many
years
of
war,
instability
appeared
to
be
(almost)
‘institutionalized’,
with
persisting
conflict
having
a
limited
impact
on
the
general
prevalence
of
enterprise
activity
(Ciarli,
Parto
&
Savona,
2009).
From
2002-‐2014,
Afghanistan’s
economy
grew
rapidly,
based
largely
on
the
military/aid
contracting
economy.
During
this
period,
real
GDP
growth
was
measured
at
9%
(World
Bank,
2012).
Unemployment
was
estimated
at
just
8%,
although
underemployment
was
still
high
at
48%.
Approximately
6–10%
of
the
working
population
participated
in
aid-‐related
job
opportunities
(but
most
of
these
were
short-‐term
in
nature).
Yet
despite
significant
growth
of
the
economy,
with
little,
or
weak
government
regulation,
markets
remained
largely
informal,
and
still
dominated
by
traditional
players
or
the
new
business/political
elite,
with
gender-‐prescribed
roles.
A
great
deal
of
aid
effort
was
channelled
into
enterprise
development
by
donors
including
USAID,
GIZ
and
the
Dutch
government
to
promote
economic
growth,
and
to
broaden
market
participation,
with
varying
degrees
of
success,
particularly
related
to
Box
1.1:
Fragile
country
mood
and
women
and
entrepreneurship
(Ritchie,
2012a;
Ritchie
dynamics
2016a).
(Asia
Foundation
Survey
2 015)
§ Decreasing
country
optimism.
Only
36.7%
of
respondents
nationwide
Post
2014
say
their
country
is
moving
in
the
With
the
reduction
in
military/aid
contracting
and
right
direction,
the
lowest
level
in
political
upheaval
in
2014,
the
economy
plummeted
the
past
10
years.
Optimism
is
and
GDP
growth
fell
to
a
low
of
1.3%.
In
2016,
the
lowest
in
the
Central/Kabul
(27.8%).
Reasons
for
pessimism
include
World
Bank
described
both
the
fragile
security
primarily
insecurity,
followed
by
situation
and
political
uncertainty
as
continuing
to
unemployment,
and
corruption.
‘undermine
private
sector
confidence
and
affect
§ Migration.
Increasing
from
2014,
economic
activity
in
Afghanistan’ 4 .
The
economic
39.9%
of
Afghans
say
that
would
downturn
was
mirrored
by
findings
from
the
Asia
leave
the
country
if
given
the
opportunity,
with
Afghans
most
Foundation
Survey.
In
2015,
more
than
half
of
likely
to
say
yes
in
the
Central/Kabul
respondents
(55.4%)
stated
that
employment
(47.4%)
opportunities
for
their
household
were
worse
this
year
§ Fear
for
personal
safety.
More
than
compared
to
the
previous
year,
with
Kabul
city
most
two-‐thirds
(67.4%)
of
Afghans
report
affected
(73.6%
reporting
worsened
job
that
they
always,
often,
or
sometimes
fear
for
their
personal
opportunities),
where
the
number
of
higher-‐wage
jobs
safety,
the
highest
percentage
in
a
has
markedly
decreased
(as
well
as
in
local
districts
decade.
surrounding,
supplying,
or
contracting
from
foreign
military
installations),
in
addition
to
Balkh,
Parwan,
and
Panjshir
provinces.5
After
services,
the
agricultural
sector
stands
as
the
second
largest
contributor
to
GDP
growth
in
Afghanistan
and
major
area
of
employment.
The
World
Bank
estimates
that
45%
of
the
poor
depend
on
agriculture
for
their
livelihood,
yet
both
limited
GDP
growth
and
a
fall
in
agriculture
production
(2%
drop
in
2015)
has
put
a
pressure
on
poverty
(estimated
at
40%). 6
At
present,
the
drop
in
the
economy
and
deterioration
in
security
has
led
to
3
This builds on Ritchie (2012, 2016). An expanded version of this section appears in the guidelines in Chapter 2.
4
http://www.worldbank.org/en/country/afghanistan/overview
5
Asia Foundation Survey, 2015.
6
http://www.worldbank.org/en/country/afghanistan/overview
Guidelines
to
Address
the
Obstacles
for
Afghan
SMEs
to
Employ
Women,
Ritchie,
Oct
2016
9
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