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Rural Development in Afghanistan: Overview

The document is a lecture note prepared by Dr. Hamidullah Younisi for a course on Rural Development at the Afghan Islamic International University. It covers various aspects of rural development, including its concepts, challenges, and strategies, particularly in the context of Afghanistan's rural economy. The course aims to equip students with knowledge about rural issues, development policies, and the role of rural organizations in enhancing the quality of life for rural populations.
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0% found this document useful (0 votes)
20 views47 pages

Rural Development in Afghanistan: Overview

The document is a lecture note prepared by Dr. Hamidullah Younisi for a course on Rural Development at the Afghan Islamic International University. It covers various aspects of rural development, including its concepts, challenges, and strategies, particularly in the context of Afghanistan's rural economy. The course aims to equip students with knowledge about rural issues, development policies, and the role of rural organizations in enhancing the quality of life for rural populations.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Ministry of Higher Education

Afghan Islamic International University

Agriculture Faculty

Agricultural Economics & Rural Development

Lecture note: Rural Development

Picture

Prepared by: Dr. Hamidullah Younisi

Year 2023

Contents
Chapter 1: Rural Development
 Introduction, Concepts, and Connotations of Rural Development
 Basic Elements of Rural Development
 Growth versus Development
 Rising Expectations and Development
 Globalization and Rural Development
 Development and Change
 Human Beings as the Cause and Consequence of Development
 Measures of Development
 Measures of Rural Development
 Measures of Income Distribution
 Concepts and Measures of Rural Poverty
Chapter 2: Afghan Rural Economy
 Size and Structure of the Rural Economy
 Characteristics of the Rural Sector
 The Role of the Agricultural Subsector
 The Role of the Non-agricultural Subsector
 Challenges and Opportunities of Rural Areas
 Development Policies in Afghanistan
 Strategies for Sustainable Development
 The Concepts of Sustainable Development Goals
 Indicators of Non-sustainable Development
 Afghanistan’s Strategies for Rural Development
 Elements of a New Strategy for Sustainable Development
Chapter 3: Paradigms of Rural Development
 Determinants of Rural Development
 Changes in Output and Natural Resources
 Human Resources, Capital, and Technology
 Organizational and Institutional Framework
 Relation between Rural Development and Its Determinants
 Rural Development Policies
 Freedom, Control, and Public Policy
 Goals of Rural Development Policy
Chapter 4: Policy Instruments of Rural Development
 A Conceptual Framework
 An Action System
 Policy Instruments
Chapter 5: Poverty and Unemployment Eradication Programs
 Poverty
 Cause of poverty
 Current Poverty Scenario and Trends Poverty and Unemployment Alleviation
Programs
 Social Welfare-oriented Programs in rural areas
 Equity-oriented and Growth-oriented Programs
 Equity-oriented Programs
 Growth-oriented Programs
 Rural Employment Scenario
Chapter 6: Planning for Rural Development
 Levels and Functions of Planning
 Decentralization of Planning
 Methodology of Micro-level Planning
 Methodology for the village and District-level Planning
Chapter 7: Rural Development Organization
 The Concept of Rural Organizations
 Importance of Rural Organization
 Characteristics of Rural Organizations
 Establishment and Development of Rural Organizations
 Management of Rural Organizations
 Community-Based Organizations
 Market Orientated Organizations
Chapter 8: Types of Rural Organizations in Afghanistan
 Voluntary / Non-Government Organization
 Shura
 Community/ Village Development Council
 Cooperative
 Association and Union
 Common Interest Group (CIG)
 Self-Help Group (SHG)
 Water Management Association (Merab System)
 Pasture Management Organizations
 Forest Management Organizations
Chapter 9: Implementation, Monitoring, and Evaluation of Rural Development
Projects
 Project Implementation
 Project Control
 Project Monitoring
 Project Evaluation
 Integration and Coordination
 People Participation in the Implementation of Project

Introduction
The course of Rural Development is a basic Agricultural Economics and Rural
Development [Link]. program. Most of the country's population lives in rural areas
and depends solely on agriculture. The country's development is only meaningful if
the rural masses can earn enough income to live a prosperous life. This course is
designed for students to get better knowledge about rural areas and development,
examine rural residents' challenges, and available opportunities to solve rural
problems. The course's main topics are the concept, philosophy, importance, and
objectives of rural development, main approaches and programs of rural
development, rural livelihood analysis, sustainable development, and rural
intuitions. Rural Development includes operations and innovations used to improve
living standards in remote rural areas and villages.

Course Objectives
After this course, the students will be able to:
 Describe the philosophy, concept, and principal of rural development
programs;
 Identify the key rural development programs;
 Analyze governmental plans and policies which are related to rural
development;
 Analyze rural livelihoods for rural poverty and hunger reduction;
 Identify rural organizations and their role in rural development.

Chapter one
Rural Development
Introduction
Rural development continues to be a high priority in both developed and developing
countries. Inadequate living standards in rural areas can threaten a nation’s food
supply. Rural residents are often the caretakers of a nation’s natural resources and
lack of development can lead to the destruction of those resources. Urban social
problems can be exacerbated by high levels of rural-to-urban migration. Uneven
development between rural and urban areas presents social and environmental
justice issues for officials and has the potential of generating social unrest as well.
Thus, rural development continues to be a critical policy arena because it extends to
so many issues that affect the quality of life for both urban and rural residents.
Rural development practitioners and policy makers face some common obstacles in
addressing these issues. Low population density and distance to markets are often
cited as major constraints to rural development because it is more difficult to provide
services and to access markets. These same factors also typically translate into the
lower political power of rural people. The small scale of rural communities’ limits
access to key resources, such as education, health care, cultural activities and
employment. Rural communities also tend to be dependent on single industries,
especially those in the extractive sector (for example, forestry, mining and fishing).
This dependency creates additional challenges to improving the quality of life in
rural communities because residents are vulnerable to major shifts in markets and
technology.

Concepts and Connotations of Rural Development


It is crucial when discussing rural issues to avoid stereotyping. Rural thus has
ambiguous meaning relative to social-historical location of the concept. Besides the
geographical nuance that refers to remote or isolated location, various other
perceptions can be detected; e.g., social, economic, cultural, political, demographic,
etc. frequently we encounter negative connotations to the rural condition. It is often
described as inferior to the urban; at best something fragile to be preserved protected,
restored or developed. The concept rural is crucial if sociological analysis is to result
in valid generalizations. In the past decade, increased attention has been given to
considering the minimum and essential criteria of rural society. Recent research has
found that some characteristics once advanced as attributes of rural society may also
be found in the city; close personal primary-group relations are one example. the
term rural refers empirically to populations living in areas of low density and to small
settlements, there are wide variations in the cutting point used operationally to
distinguish rural from urban. There is even less agreement on the qualitative
attributes that distinguish a rural from an urban community or society. Rural has
been defined in terms of one or more empirical attributes, as a constructed type with
qualitative attributes, and by the two in combination. The methodological and
theoretical problems in the definition of the concept rural are similar to those in the
definition of urban and in the use of constructed types in general.
The field of rural education as opposed to urban education is difficult to define
with exact precision for a number of reasons. Too often rural issues are approached
in bureaucratic way; e.g., with quantitative standards and statistics that do not
capture the social characteristics and cultural essence of the communities or human
condition dealt with. In this sense rural becomes like a hole. The more material we
remove, the larger the hole; the emptier! As numerous people leave a region, the
more "rural" it is proclaimed. Of course, quantitative data can be important to
perceive the rural condition, but probably more qualitative or intuitive insights into
the ways of life lived in areas shed clearer light on constrains and trends in the rural
condition at the end of the 20thcentury.
Rural: Is an area, where the people are engaged in primary industry in the
sense that they produce things directly for the first time in cooperation with nature.
A society or community can be classified as rural based on the criteria of lower
population density, less social differentiation, less social and spatial mobility, slow
rate of social change, etc. Agriculture would be the major occupation of rural area.
In many developing countries, rural areas are areas with
o Poor social, technical and physical infrastructure
o High illiteracy rates compared to urban areas
o Farming (subsistence farming) forms a major source of employment
o Low incomes
o Widespread poverty
o High out migration

Development: It refers to growth, evolution, stage of inducement or progress.


This progress or growth is gradual and had sequential phases. Always there is
increasing differentiation. It also refers to the over all movement towards greater
efficiency and complex situations.

Rural Development (RD): is a process which aims at improving the well-


being and self-realization of people living outside the urbanized area through
collective process.
According to Nwobi, (2007), rural development can be viewed as the
development of the moral, social, political and economic potentialities of rural
communities to enhance their self-reliance through the provision of appropriate
infrastructure such as pipe-borne water, electricity, good roads and small scale
industries, increase their political consciousness and participation, promote their
moral and social well-being which will result in tolerance, good discipline, justice,
fairness, kindness, love and peace.
Similarly, Okoye (1997) cited in Filani (2000) defined rural development as
the process of making life more satisfying and fulfilling for millions of people who
live in rural areas. Rural development provides rural dwellers with the opportunities
for gainful employment as well as the expansion of social services which could
enhance the welfare and security of rural people.
A further definition by Lele (1992) cited in filani (2000) is that rural
development is the improvement of the population living in the rural areas on a self-
sustaining basis, through transforming the socio-spatial structures of their productive
activities.
The aforementioned definitions have three important features of rural
development. These are:
a. Improving the living standard of the subsistence population which involves
the mobilization and allocation of resources so as to reach a desirable balance
overtime between the welfare and productive services available to rural
subsistence population.
b. Mass participation which requires that resources be allocated to low-income
regions and classes and that the productive services actually reach them, and
c. Making the process self-sustaining requires the development of appropriate
skills and implementing capacity and the presence of institutions at the local,
regional and national levels to ensure effective additional financial and human
resources for continued development of the subsistence sector.

Rural development therefore should be a sustained increase in total


transformation and modernization of the socio-economic environment of the rural
areas. It should be a widely participatory process of directed change in a society,
intended to bring about the social and material advancement for the majority of the
people through gaining greater control over their environment.
The following deductions can be made from all the definitions and concept of
rural development:
a. It is a process whereby concerted efforts are made in order to facilitate
significant increases in rural resource productivity with the central objective
of enhancing rural income and increasing employment opportunities in rural
communities for ruralites to remain in the area.
b. It is an integrated approach to food production, provision of physical, social
and institutional infrastructures with an ultimate goal of bringing about
qualitative changes which culminate in improved standard of living of rural
populations.
c. It is as a systematic and integrated process, designed to improve the socio-
economic and cultural life of rural dwellers that are characterized by peasant
and subsistence agriculture increased production and processing of export
crops especially trees with a view to broadening the revenue base of state, and
d. It is an effort to improve the living standards of farmers and the rural populace
in general.

Basic Elements of Rural Development


Whatever the geographic location, culture and historical stage of development
of a society, there are at least three basic elements which are considered to constitute
the ‘true’ meaning of rural development. They are as follows (Box 1.1) (Todaro
1995: 16–18):
a. Basic Necessities of Life: People have certain basic needs, without which it
would be impossible (or very difficult) for them to survive. The basic
necessities include food, clothes, shelter, basic literacy, primary health care,
and security of life and property. When any one or all of them are absent or in
critically short supply, we may state that a condition of ‘absolute
underdevelopment’ exists. Provision of basic necessities of life to everybody
is the primary responsibility of all economies, whether they are capitalist,
socialist or mixed. In this sense, we may claim that economic growth
(increased per capita availability of basic necessities) is a necessary condition
for improvement of the ‘quality of life’ of rural people, which is rural
development.
b. Self-respect: Every person and every nation seek some sort of self-respect,
dignity or honor. Absence or denial of self-respect indicates lack of
development.
c. Freedom: In this context, freedom refers to political or ideological freedom,
economic freedom and freedom from social servitude. As long as a society is
bound by the servitude of men to nature, ignorance, other men, institutions
and dogmatic beliefs, it cannot claim to have achieved the goal of
‘development’. Servitude in any form reflects a state of underdevelopment.

The new economic view of development considers reduction or elimination


of poverty, inequality and unemployment as an important index of development.
Seers (1969: 3) succinctly addressed the basic question of the meaning of
development when he wrote:
The questions to ask about a country’s development are therefore: What has
been happening to poverty? What has been happening to unemployment? What has
been happening to inequality? If all three of these have declined from high levels,
then, beyond doubt, this has been a period of development of the country concerned.
If one or two of these central problems have been growing worse, especially if all
three have, it would be strange to call the result ‘development’ even if per capita
income doubled.
The scope and Importance of Rural Development

Growth versus Development


While economic growth is an essential component of development, it is not
the only one, as development is not a purely economic phenomenon. In the ultimate
sense, it must encompass more than the material and financial aspects of people’s
lives. Development should, therefore, be perceived as a multidimensional process,
involving the reorganization and reorientation of both economic and social systems.
In addition to improvements in the level and distribution of incomes and output, it
also involves radical changes in institutional, social and administrative structures,
and values and ethos of individuals and communities. Finally, although development
is usually defined in a national context, its widespread realization may necessitate
fundamental modifications of the international economic, social and political
systems as well.

Difference between Growth and Development

Rising Expectations and Development


The common man in Afghan, as also in other developing countries, expects a
higher standard of living for himself, his family, his community and his nation.
Particular expectations, of course, differ from person to person and from region to
region, but the expectation of a marked improvement in material conditions of life
is general throughout the world. People want and expect to have better diet, clothes,
houses, education, a secured life and freedom from servitude. This is the revolution
of expectations that has swept over the third world countries.
There are many explanations for this phenomenon. First, the demonstration
effect of the rural elite, urban rich and foreign tourists engaging in ostentatious
consumption of exotic and luxurious goods has distorted the consumption and utility
functions of the poor. Second, radio, television and advertising have exposed the
masses to modern gadgets and lifestyles, and have thus aroused their expectations.
Third, local and national politicians have assured the rural poor of the modern
amenities of life, if they would vote for them. Fourth, the central governments have
declared time and again that the eradication of poverty is their major policy goal.
Through these media, the common man has first learned about the new products,
gadgets and services; then, come to want them and, now, to demand them.
The economies of most developing countries (including India) cannot
possibly fulfil these expectations in the immediate future and there is bound to be a
collision between rising expectations and economic reality. The outcome will vary
from country to country, but it will certainly involve disillusionment, demoralisation,
agitations and political upheavals, violence and several other antisocial activities
such as thefts, murders, smuggling and trafficking in narcotics. It is this that makes
rapid agricultural and economic development a national imperative in India to bridge
the gap between rising expectations and economic reality.

 Globalization and Rural Development

Development and Change


Development is both a cause and a consequence of change. There is a two-
way relationship between them, that is, development influences and is influenced by
change. The change implies a physical, technological, economic, social, cultural,
attitudinal, organizational or political change. Whereas all manifestations of
development can be traced to some change somewhere, sometimes not all changes
lead to development. A change may be either for better (development) or for worse
(retrogression). In the context of rural development, a ‘change’ may be considered
to be an instrument which can be used to promote rural development. In India, the
introduction of technological changes in the mid-1960s (new high-yielding varieties
of crops, fertilisers, improved farm machinery and pesticides) led to the so-called
Green Revolution in agriculture. Similarly, technological innovations such as
modern milk processing and feed processing plants, artificial insemination of dairy
animals and organisational innovations such as the Anand-pattern dairy cooperatives
introduced in India on a large scale in the early 1970s under the Operation Flood
(OF) programme, contributed significantly to the modernisation and development of
the dairy industry of the country. Elsewhere, such as in Taiwan and the People’s
Republic of China (PRC), agricultural development was largely a result of
institutional reforms, especially land reforms and technological advances. Karl Marx
was one of the great advocates of revolutionary (socio-economic) change as an
instrument of development.
A change may occur naturally or autonomously, or may be induced. A
development manager may accelerate the pace of development by both inducing a
desirable change in a given system and by properly directing the autonomous
change. It is important that the likely impacts of a contemplated change on various
segments of the society be carefully evaluated ex ante (before the change is
introduced).

Human Beings as the Cause and Consequence of Development


Human beings are both the cause and consequence of development. It is the
human factor that is the pivot of the process of development. Though the study of a
human being is basic to the study of development, it cannot be of a human being in
isolation but rather of human beings in relation to their fellows, or of humans in
society and in their environment.
It is the creation of conditions, both material and spiritual that enables the
human being as an individual—and human beings as a species—to be at his best.
Those who control a human being’s livelihood, control a human being. A person’s
freedom is illusory when he depends upon others for the right to work and the right
to eat. Equally, a nation is not independent if its economic resources are controlled
by another nation. Political independence is meaningless if a nation does not control
the means by which its citizens can earn their living.
In other words, human development follows from economic development,
only if the latter is achieved on the basis of equality and human dignity of all those
involved. Human dignity cannot be given to a human being by the kindness of others.
Indeed, it can be destroyed by kindness which emanates from an act of charity, for
human dignity involves equality, freedom and relations of mutual respect among
humans; it depends on responsibility and on a conscious participation in the life of
the society in which a human being lives and works.

Measures of Development and Rural Development


Measuring development refers to the use of various human economic
indicators, development indices, correlations, and statistics in order to compare the
level of social and economic freedom between countries.
Development is measured by considering the social and economic factors that
affect the standard of living of people in a country. For example, real GDP per capita,
literacy rates, access to safe water, and political stability and security.

Economic development indicators are used to measure the well-being of


people by considering factors that influence the standard of living in an economy.

There are a few developmental measures. They are:

 HDI - Human Development Index.


 HPI - Human Poverty Index.
 Multidimensional Poverty Index.
 GPI - Genuine Progress Indicator.

Just as there are indicators to measure and quantify economic growth, the
same is true for economic development.

Before 1990 the development means GDP and per capital income. So, for
many details a country’s levels of development was measured only in terms of its
economic growth. The below table clearly shows that Human Development Index
(HDI) changed this.
Rank Country GDP per Capita HDI Rank
1 Qatar 134620 37
2 Luxembourg 108810 21
3 Singapore 103720 9
4 Brunei 83780 39
5 Ireland 82440 4
6 Norway 76740 1
7 UAE 70570 34
8 Kuwait 67970 56
9 Switzerland 65741 2
10 US 64770 13

The HDI was created to emphasize that expanding human choices should be
the ultimate criteria for assessing development results. HDI ranges from 0 to 1. 1
being most developed and zero being least developed country.

Origin of HDI
A Pakistani economist Dr. Mahbub-ul-haq created the Human Development
Index in 1990. He said in true sense development is all about enlarging people’s
choice in order to lead long, healthy lives with dignity.
The UN Development Programme has been using this concept to publish its
annual Human Development Report Since 1990.
Dimension Index
1. Life Expectancy: A key element in calculating the HDI is life expectancy at
birth. The life expectancy factor helps to determine how long the average
citizen lives how healthy he/she can remain during her/his life and how much
she/he can contribute in her/his working life. The HDI measures life
expectancy from 20 to 85 years.
2. Education Index: In this, it is considered that what is the expected years of
schooling and mean years of schooling. The HDI measures 18 years as
expected years of schooling and 15 years as mean years of schooling.
3. Gross National Income per capita: the gross national income per capita, or
GNI, measures the annual income of the average citizen based on purchasing
power parity, or ppp. The GNI index uses a minimum income of 100$ and a
maximum of 75000 $.

Example: India in 2017


Life expectancy at birth 68.8 years
Expected years of schooling 12.3 years
Mean years of schooling 6.4 years
GNI per Capita (PPP) 6353
HDI Value 0.64

Dimension Index Calculation


1. Life expectancy Index: The HDI measures life expectancy from 20 to 85
years. Life expectancy in India is 68.8 years. The following formula is used
for calculating of HDI.
Actual Value − Minimum Value
𝐶𝑜𝑚𝑝𝑜𝑛𝑒𝑛𝑡 𝑖𝑛𝑑𝑒𝑥 =
Maximum Value − Minimum Value
68.8−20 48.8
Life Expectancy index = = = 0.751
85−20 65

2. Education Index: Expected years of schooling in India = 12.3 years (range


for HDI is 0 to 18 years).
Mean years of schooling in India = 6.4 years (range for HDI is 0 to 15 year)
12.3−0
Expected years of schooling = 18−0 = 0.683
6.4−0
Mean years of schooling = = 0.427
15−0
0.683+0.427
Education Index = = 0.555
2

3. GNI Index: GNI per capita in India (PPP) = 6353$ (range for HDI is 100$ to
75000$)
log(6353)−log(100) 1.803
GNI Index = = = 0.627
log(75000)−log(100) 2.875

3 3
HDI √𝐿𝐼 ∗ 𝐸𝐼 ∗ 𝐺𝐼 = √0.751 ∗ 0.555 ∗ 0.627 = 0.64

HDI of India in 2017 was 0.64

Concepts and Measures of Rural Poverty (this title will cover in chapter 5 )
Chapter 2: Afghan Rural Economy
Introduction
In Afghanistan, a low-income country with a GDP of US$19.1 billion and GNI
per capita of US$540 in 2019 (World Bank, 2020), international aid continues to
finance 75 per cent of public expenditures. The post-conflict reconstruction process,
financed largely by foreign aid, shifted the economy away from agriculture and
towards the services sector. Currently, the services sector accounts for 50 per cent of
GDP, followed by agriculture, which contributes about 25 per cent. Agriculture
remains the foundation of Afghanistan’s economy and employs 40 per cent of the
national labour force. Almost 70 per cent of the rural population depends mostly on
agriculture. The crops are mainly rainfed, which makes agricultural output and GDP
growth highly volatile and weather-dependent. Crop agriculture is constrained by
poor irrigation, and irrigated land is particularly limited in the north of the country.
Livestock products, which contribute more than 50 per cent of agricultural GDP,
have fluctuated widely owing to precipitation levels and droughts. Rangeland is
overgrazed, and nomadic and semi-sedentary shepherds are experiencing high
livestock mortality rates.

Size and Structure of the Rural Economy


An economy may be conceptualized as a collection of economic, social,
institutional, legal and technological arrangements through which individuals in
society seek to increase their material and spiritual well-being. The two elementary
functions of an economy are consumption and production. Consumption is
considered as the prime pump of an economy. The classical dictum that ‘the
consumer is sovereign’ is based on the consumer power embodied in his demand,
which is one of the crucial requirements for the existence of any business enterprise
or, for that matter, any economic activity, including production.
Economy of a country like Afghanistan can be thought of as comprising two
main sectors, namely, the rural sector and the non-rural sector. The rural sector is, in
turn, composed of two main subsectors, that is, the agricultural subsector and the
non-agricultural subsector. The agricultural subsector comprises agriculture and
allied economic activities, such as animal husbandry and dairying, fisheries, poultry
and forestry. The non-agricultural subsector consists of economic activities relating
to small scale village industries, rural craft, business and services. Industry here
refers to cottage and village industries, handloom, handicrafts, and so on. Business
refers to micro-enterprises, trading of general goods, small shops, petty traders, and
so on, whereas services refer to transport, communications, banking, input supply,
marketing of farm and non-farm produce, and so on. The main stakeholders of the
rural sector include farmers, agricultural and nonagricultural labourers, traders,
moneylenders and those engaged in providing such services as transport,
communications, processing, banking, and education and extension.

The size of the rural sector could be measured in terms of the size of rural
population, livestock population, extent of land resources, water resources, forest
resources and fisheries, quantum of production inputs used and the output produced.

Human Population: The total population of Afghanistan in 2021 was


estimated at 34.3 million people, of which 51.0 percent were men and 49.0 percent
were women. The population distribution between urban and rural areas shows that
24.2 million (70.6%) people live in rural areas and 8.6 million (25%) people live in
urban areas. In addition, about 1.5 million (4.4%) people are nomadic. Also,
approximately 70% of the rural population is mainly dependent on agriculture.

Livestock Population: In 2018, 74.8% of the Afghan population lived in rural


areas, being mainly dependent on animal husbandry and farming for their daily
needs. Livestock raising is common practice in Afghanistan, where around 45% of
the geographical area consists of rangeland. Livestock provide the farmers with a
range of animal products for subsistence use and can also be an important source of
income. The Afghan livestock population presently consists of 22 million sheep, 10
million goats, and 3.7 million cattle (ALCS 2016-2017).

Land Resources: Agricultural land accounts for 58 percent of the total land
area, but only 12 percent is useable farmland, with the balance pasture land, which
supports the country's large nomadic and semi- nomadic population and its livestock.
Forests make up 1.3 percent of the country's total land area.

Classification of land in Afghanistan (000 hectares)


No. Areas 1397 1398 1399
The total geographical area
65223 65223 65223
(1+2+3)
1-1 Agricultural land 9610 9610 9610
1 Forest 1800 1800 1781
1-2 Uncultivated land 5494 4450 3995
1-3 Non-Irrigated lands 368 1077 1341
1-4 Irrigated lands 1949 2283 2493
1-4-1 Permanent plants area 216 222 265
2 Permanent pasture area 30000 30000 30262
3 Other lands 25613 25613 25351
Water Resources: Afghanistan is able to store 75 billion cubic meters (BCM)
of potential water resources of which 55 BCM is surface water and 20 BCM is
groundwater. The annual volume of water used for irrigation is estimated to be 20
BCM, which is 99 per cent of all water used. Total groundwater extraction amounts
to some 3 BCM of fresh water annually. As of 2019, only about 67% of the
country's population has access to drinking water. This number is expected to
steadily increase in the future, especially in Kabul after the Shah-wa-
Arus and Shahtoot dams are completed. A number of other smaller dams are being
built in other parts of the country.
Access to an improved water source does not mean that the water is safe to
drink. For example, protected shallow wells in urban areas are often contaminated
with bacteria. Piped water supply can also be contaminated. Many households
without access to an improved source take water from streams and rivers, open wells
and unprotected springs, all of which are also often polluted. In rural areas women
and girls walk long distances to fetch water.
In Afghanistan, the water availability for irrigation purposes is mainly a
function of effective rainfall and surface as well as groundwater resources - which
depend in turn on the amount and distribution (time and space) of precipitation.
Therefore, considering variations in precipitation as the most decisive parameter,
Afghanistan can be divided into 6 climatic zones. The general features of these
climatic zones are given in Table 2.
Table 2. General features of 6 climatic zones of Afghanistan

There is a strong relationship between the amount of precipitation, length of


growing season and altitude. At greater altitudes, precipitation is high and the
growing seasons are shorter due to frost hazard. In the mountainous zone of the
country (zones 1-4) where precipitation is sufficient, the availability of agricultural
land (due to frost) is a limiting factor. In the flat areas (zones 5-6), growing seasons
are sufficiently long even for double cropping but the limiting factors are effective
rainfall and irrigation water availability.
Forest resources: Afghanistan’s forest area comprises 2.1 percent of total
land area. Forest types include evergreen coniferous forests covering approximately
1.3 m hectares of land, the largest collections of which are located in Dewagal Valley,
Kunar, Nuristan, Paktia, Khost and Paktica Provinces. Evergreen fleecy leaf forests
are found extensively throughout the country. Broad leaved deciduous forests and
other broad-leaved forests are found scattered throughout the country. Man-made
forests, mostly poplar and willow, comprise 70,000 hectares of land.
Forests provide households with wood for fuel and construction, land for
cultivation and grazing livestock, and forest products such as nuts, tubers, fodder
and fibers. Timber is in high demand on the international market and in neighboring
Pakistan. Although commercial timber harvesting is illegal in Afghanistan, a
systematic smuggling industry exists. Poverty, insecurity, lack of alternative fuel and
a lack of Special Forces to protect Afghan forests are among the main reasons for
the illegal cutting of forests in the country and smuggling them abroad. Additionally,
wild pistachio forests, once common in northern Afghanistan and a key source of
income along the “pistachio belt” that runs from Badakhshan in northeast
Afghanistan to Kunduz in the north and Herat in the west have been in decline.

Characteristics of the Rural Sector:


Some Salient Characteristics of Afghanistan’s Rural Sector as follows:
1. Excessive dependence on nature
2. Preponderance of small uneconomic land and livestock holdings
3. Low capital–labour ratio
4. Low factor productivity
5. Long gestation and low rate of turnover
6. High incidence of poverty
7. Preponderance of illiterate and unskilled workforce
8. Lack of basic infrastructure

1. Excessive dependence on nature

Agricultural production, being biological in nature, depends more on weather


and other climatic factors than non-agricultural production.

2. Preponderance of small uneconomic land and livestock holdings

The land and livestock: holdings are not only small in size but also widely
scattered all over the countryside. Landholdings are also fragmented, particularly in
those states where consolidation of landholdings has not yet been done. The process
of subdivision and fragmentation of landholdings continues unabated generation
after generation under the existing land inheritance laws. The small and fragmented
landholdings are a great obstacle to economical use of farm labour and machinery.
Afghanistan has so little arable and cultivated land that, as a result, the average
farm size for all crops is about four acres (LA Times, 2003). In comparison, the
average American farm is 444 acres (USDA, 2022). The difference in size is because
the United States has a lot more space than Afghanistan and because the amount of
arable land in Afghanistan is much smaller than in the US. The smaller farm size in
Afghanistan leads to a level of inefficiency that larger farms do not have. Small
farms are split among many farmers, resulting in differences in farm practices. For
example, one farmer may use sustainable farm practices, like crop rotation, to
produce more food more reliably, while another might plant the same crop for
several years in a row which leads to soil depletion.

3. Low capital–labour ratio

Afghanistan’s rural sector is starved of capital and overcrowded with human


labour. Consequently, the amount of capital available per worker, that is, the capital–
labour ratio is low and this is one of the main reasons of low productivity in the
sector. To improve this ratio, it is necessary to step up both public and private
investment in the sector, and to facilitate through appropriate policies the absorption
of surplus workers in the non-agricultural sector. After a declining trend for a few
years, now both public and private investments in agriculture have been increasing
at both.

4. Low factor productivity

Low crop yields have been the bane of Afghanistan’s rural sector since long
time. As mentioned in the preceding section, the low factor productivity is mainly
due to inadequate capital in the form of production inputs, raw materials, and
improved machinery and equipment available per worker/unit of enterprise. For
example, the low average crop yields in Afghanistan as compared to those in
developed countries like the USA, Egypt and China are due to low inputs of
fertilisers and plant protection chemicals. Similarly, the low average milk yield per
milch animal in Afghanistan is due mainly to the low quantity of concentrated feed
and the poor quality of fodder fed to the animals. What is required to improve the
resource productivity in Afghanistan’s rural sector is to close the technology gap and
reduce the redundant labour force.

5. Long gestation and low rate of turnover


It takes a relatively longer period of time for investment in agricultural
enterprises to yield benefi ts than in many non-agricultural enterprises. For example,
it takes three to four months for most crops to mature, four to six years to raise a
young buffalo calf to a stage when she starts yielding milk and fi ve to 10 years
before fruit saplings start bearing fruits. Besides, the annual fl ow of net returns from
investment in most agricultural enterprises is also low. This results in a low rate of
turnover or, alternatively, it takes longer to recover the investment made.

6. High incidence of poverty

The shape and composition of multidimensional of poverty varies widely


across the country. The urban poverty rate is 18%, whereas the rural rate is 61%. It
is estimated that 89% of the Kuchi population live in multidimensional poverty.
Stark differences are found across provinces too. While 15% of the population in
Kabul are affected by multidimensional poverty, the poverty rate reaches 80% in
Nooristan and 86% in Badghis. Considering the size of the population in each
province, Herat and Nangarhar are home to the highest number of poor people.

7. Preponderance of illiterate and unskilled workforce

Although the average literacy rate in the country as a whole is low, in rural
areas it is lower. The higher level of illiteracy and the lack of skills among the
majority of rural people are serious constraints on their socio-economic
development.
Lack of education, livelihoods and access to basic services contribute to
Afghan poverty. 75.6% of poor people are illiterate. Poor people face higher
unemployment (8%) and underemployment (41%) and are more likely to work in
agriculture (43.6%) or in the informal sector (84.3%). Poor people are also less likely
to have access to electricity (63.8 %), safe drinking water (40.3%), and sanitation
(2.8%).

8. Lack of basic infrastructure

Afghanistan villages miserably lack in such basic infrastructure as schools,


health care centres, transport and communication, drinking water facilities, and
electricity for domestic and agricultural purposes. It has been established through
empirical studies that basic infrastructure is an important determinant of
development. As a matter of fact, the ‘growth centre’ theory of development is based
on this premise. Although in many states, good progress has been made recently
under the National Soldarity Programme (NSP), Rural Water Supply & Sanitation
(Ru WATSAN), National Area Based Development Programme (NABDP),
Microfinance Investment Support Facility for Afghanistan (MISFA) and other
programmes to provide the bare minimum infrastructure, there are thousands of
people living in remote tribal and hilly areas where not much has been done.

The Role of the Agricultural Subsector


The rural sector constitutes the basic foundation of Afghanistan’s economy.
No programme of national development can ever succeed unless it is built upon this
foundation. The rural sector in general, and its agricultural subsector, in particular,
contributes to the growth and development of Afghanistan’s economy.
Investing in agriculture in Afghanistan is critical as the sector accounts for a
quarter of the national economy, and plays an important role in the livelihoods of the
approximately 76% of the population and nearly 90% of the poor living in rural
areas, and the 50% of all households in the country deriving at least part of their
income from agriculture.
More than 75% of Afghanistan’s population, and nearly 90% of those living
in poverty, live in rural areas. With a 25% contribution to GDP and about half of all
households receiving income from it, agriculture has great potential to be, along with
mining and the services sectors, one of the main drivers of economic growth while
reducing unemployment. Due to the country’s high population growth rate,
agriculture will need to grow by at least 6% per year if rural incomes are to increase
and population standards of living significantly improve. This is nearly twice as fast
as its average growth rate over the past decade, and achieving it will be challenging
and require game-changing policies and investments. However, this would be
possible given that, fortunately, Afghanistan has many catch-up opportunities —
from revamping rural institutions, to re-building infrastructure and updating
technology, that greatly suffered during the years of conflict— that offer the
possibility of faster agricultural growth.

The Role of the Non-agricultural Subsector


In most developing countries—including Afghanistan—the rural labour force
has been growing rapidly but employment opportunities have been dwindling. As
the land available for expansion of agriculture becomes increasingly scarce,
opportunities for non-farm employment must expand, if deepening rural poverty is
to be avoided. Given the expected growth and composition of large-scale urban
industries, they are unlikely to be able to absorb the rising tide of workers migrating
from the countryside to the cities. Looking towards the twenty-first century, we must
slow the process of the urban spread, with its high social and environmental costs,
such as congestion, pollution, skyrocketing land costs, growing violence. Expansion
of the rural non-agricultural sector, with its emphasis on labour intensive and small-
scale enterprises, widens income opportunities for the poor, including small farmers,
the landless and women, enabling them to even out extreme fluctuations in their
incomes.
The linkages between the rural non-agricultural and agricultural subsectors
are critical for rural development. The growth in farm income provides an expanding
market for consumption goods and agricultural inputs produced by the non-
agricultural subsector, while agricultural raw materials are processed in the rural
non-agricultural subsector. The relative strengths of the consumption and production
linkages depend on the pace and pattern of growth in agricultural income, and the
production technology used in agriculture. The higher the per capita income growth,
the higher is the share of non-food consumption in rural expenditure and, hence, the
greater is the stimulus to the growth of the rural non-agricultural subsector. The share
of locally produced consumption goods (as against imports from urban areas or
abroad) in consumption expenditure depends on the distribution of income in
agriculture. It is higher among the medium or small farmers than among the rich.
Lack of adequate infrastructure is a major impediment to the development of
industries in the rural areas. Electricity, transport, communications and availability
of ancillary and allied services, such as suppliers of raw materials and other inputs,
semi-skilled and skilled labourers to attend to the problems of machinery, marketing
and credit support agencies, and so on, are essential for the growth of industries. In
their absence, production activities of tiny units tend to concentrate around the
peripheries of urban centers.

The Challenges and Opportunities of Rural Development

Challenges in Rural Development:

1. Limited access to basic amenities:


Rural areas often lack access to quality healthcare, education, clean water, and
sanitation facilities. Insufficient infrastructure and limited resources pose significant
challenges to the development of these essential services.

2. Poverty and unemployment:


Rural areas are particularly susceptible to poverty and unemployment due to
limited job opportunities, lack of skill development programs, and inadequate access
to credit and capital. Eradicating poverty and creating sustainable livelihoods are
essential goals for rural development.
3. Agricultural productivity and sustainability:
Agriculture is the backbone of rural economies, but challenges such as
fragmented landholdings, outdated farming techniques, lack of irrigation facilities,
and climate change impact productivity and sustainability. Promoting modern
agricultural practices and ensuring farmers have access to resources and technology
are vital for rural development.
4. Connectivity and digital divide:
Poor road connectivity, limited internet access, and inadequate
telecommunication infrastructure hinder rural development. Bridging the digital
divide and providing reliable connectivity can unlock opportunities for education,
entrepreneurship, and e-governance in rural areas.

Opportunities for Rural Development:


1. Sustainable and inclusive development:
Emphasizing sustainable and inclusive development practices in rural areas
can promote economic growth, environmental conservation, and social equity.
Encouraging entrepreneurship, promoting renewable energy, and supporting
women’s empowerment are vital components of sustainable rural development.
2. Skill development and vocational training:
Equipping rural communities with market-relevant skills and vocational
training can enhance employability and create self-employment opportunities. Skill
development initiatives can help bridge the rural-urban divide and contribute to the
overall development of the region.
3. Infrastructure development:
Investing in rural infrastructure, including roads, electricity, healthcare
centers, schools, and irrigation facilities, can improve the quality of life and attract
investment. Infrastructure development projects contribute to economic growth and
create employment opportunities.

Afghanistan’s Strategies for Rural Development


The MRRD needs to review and unify its structures and developmental plans
for achieving the policies of Islamic Republic of Afghanistan and International
Communities to be able to provide efficient and effective services for the welfare of
rural people. In order to institutionalize the systems and structures, regulate service
delivery and cost reduction, the MRRD plans to adapt its formation structure to
national and strategic goals and priorities by implementing reform processes.

Theoretical Framework
Vision:
Powerful and prosperous rural areas with a moving economy
Mission:
Reducing poverty through empowering rural people, strengthening socio-
economic opportunity, and coordinating and paving the ground for development in
rural areas.
General goals:
• Reducing poverty through providing basic services and developing
sustainable economic in rural areas.
• Strengthening local institutions as implementing agencies for advising and
sustainable developing.

Core values:
• Rural communities are the centre of attention for MRRD.
• The MRRD is committed to preserving the past, present and future
investments to ensure sustainable and balanced development.
• The MRRD is committed to balanced, fair and sustainable development.
• The MRRD carries out their activities considering the norms and values of
the society, with utmost honesty, transparency and accountability.
• The MRRD believes in collaboration and coordination in order to reduce
the difference between the urban and rural areas.
• Protection of the environment and effective use of natural resources are the
vital values of the MRRD.
• The MRRD believes in peace and conflict resolution through providing
basic services.
• The MRRD believes in strengthening trust between people and
government through providing basic services in the rural areas.
• The MRRD values the role and active presence of women in rural
development.

Strategic areas:
1. Sustainable development of infrastructure (road and irrigation)
2. Sustainable water-supply and sanitation in rural areas
3. Renewable energy and sustainable rural development
4. Developing small and medium size investments in rural areas
5. Strengthening local governance
6. Developing governance and effective service delivery

Strategic Areas of the MRRD


The basis of strategic plan:
The MRRD has developed its strategic plan based on the 6th, 10th and 13th
article of the constitution and the related rules and regulations. The global
sustainable development goals and the national priority programs are also considered
through an advisory process taking into consideration the government and
international policies, central and provincial directorates, and other programs. The
MRRD struggles to coordinate its affairs in the light of this strategy, and provide
better and effective services in the coming years.

Strategic area 1: sustainable infrastructure development (road and small


irrigation
systems)
1.1. Goals:
• Access to basic services centers through building transportation
infrastructures
• Increasing agricultural products through constructing small irrigation
structures

The MRRD has built and reconstructed various infrastructures to improve the
socio-economic situation in the rural areas. Building such infrastructure are still
needed for the rural areas. The farmers are negatively affected by the lack of
communication, and limited access to basic services and markets. The lack of proper
irrigation infrastructures, irrigation canals, natural disasters and the lack of other
necessary welfare investments also adversely affect the farmers. Although the
infrastructures built by the MRRD has decreased the level of poverty and
vulnerability in the rural areas, but paying attention to the needs and requirements in
these areas, the infrastructures and services are not sufficient. Thus, there is need for
further investments in larger infrastructures in district and province level. This is
achieved by creating councils and clusters through citizen’s charter national
program. The MRRD will continue to build roads, bridges, supportive walls,
irrigation canals, education, health and many other similar infrastructures. The
MRRD will also try to consider balance in providing infrastructures that cover larger
number of people in districts and provinces.

1.2. Coordinating Norms and Standards:


The MRRD is considering to establish a standard norm for all the
infrastructural projects such as roads, bridges, small dams, water supply and energy
projects. This is done in a close collaboration with the MOPU and MOI to provide
better stability against natural and environmental disasters.

1.3. Crosscutting issues:


1.3.1 Protection of Environment:
Constructing rural infrastructures and planting trees in roadsides will reduce
pollution and protect the environment, and it is a part of the primary plans of MRRD.
In addition, the social problems are also solved through environmental sectors. In
this sector the current focus is on the existing roads with the same path which have
low quality (the roads that are already built but are in a very bad conditions), this
will have minimum effect on social and environmental situation. The activities of
this section will also be according to the environmental laws, regulations and the
(environmental and social) safety policy of the World Bank.

1.3.2 Counter narcotics:


Creating job opportunities and employment through reconstruction,
maintenance and building small irrigation systems indirectly help to reduce the
illegal cultivation of opium in the rural areas by creating opportunity for cultivation
of other agricultural products.

Strategic area 2: sustainable water-supply and sanitation in rural areas


2.1. Goals:
Increasing access to water-supply services, sanitation and education for the
betterment of life standards in the rural areas.
The MRRD has constructed infrastructures such as water-supply networks,
digging deep and semi-deep wells, that ensures socio-economic development in the
villages and prevents child mortality specially infants of below age five. And still
people in the rural areas face problems such as lack of potable water and sanitation,
where drought, environmental and natural disasters contribute to this cause.
Considering the continuous requirement for water-supply infrastructures, the
access to these ser vices especially drinking water in the rural areas is limited and
insufficient. The MRRD will try to attract investments on construction of sanitation,
and small and medium water supply infrastructures in the rural areas as it is also
mentioned in the CCNPP.
By launching the people-led sanitation process about ten thousand rural
communities will be cleaned off from human waste by the help of CCNPP, partner
organizations and the organizations that are funded by UNICEF. Following this
process, about six hundred thousand toilets (about 10% of this number is newly
installed toilets, and the rest is modified toilets) will be installed through the CLTS
program.

2.2. Safe Management of Services:


The 2013 DACAAR survey is used for determination of safety level in
drinking water. In the mentioned survey about 4000 drinking water resources in the
city and rural areas were tested for the level of ([Link]) bacteria. The results of this
survey indicates that only 40% of the overall water resources in Afghanistan is in
line with the bacteriological standards (CFU/100ml <1) for drinking water.
Therefore, the water supply directorate is proposing a test method for water supply
immunity which will be implemented on Bamyan and Parwan provinces. This
method will be applied to all the projects implemented by this sector if the test results
are satisfactory.
The implementation plan for target number one and two of the sixth global
sustainable goal is a part of this strategic area.

2.3. Crosscutting issues:


2.3.1. Empowering women:
One of the principles of water-supply and sanitation policy in rural areas is
the inclusion of women in water management affairs, decision making and
implementation of it.

2.3.2. Protection of Environment:


The WASH program focuses on the following programs for protection of
environment:
• The effects of all the water-supply, sanitation and education projects on
environment will be identified, monitored and supported.
• A new mechanism for reducing the environmental dangers will be
developed and in case if any environmental danger is identified, proper
cautionary steps will be taken to protect the environment.
• Technical skills will be developed in district councils for proper
management of solid and liquid waste to prevent the drinking water from
getting infected
• Water resource management with practical mechanism for (Watershed
Management), mechanism for collecting rain water, artificial nourishment
of underground water, and maintaining water-supply and sanitation
systems will be coordinated with the sectorial Ministries.
• The human waste recycling is considered to be implemented for reducing
health and environmental dangers
• Using solar pumps in the water systems. It is seriously considered to
replace Diesel with solar energy in the pumping systems that results in the
reduction of fossil energy as it is also in the interest of climate change and
environment.

In addition, the environmental awareness programs, water quality control


regulation and other national and international laws for protection of environment
will be considered.

2.3.3. Fighting corruption:


Participation of the district development council members in the affairs such
as planning, contracts, implementation, monitoring and maintenance of water-
supply and sanitations projects decreases corruption, and will help to implement the
projects transparently.

2.3.4. Counter narcotics:


Implementing water-supply, sanitation and health-education projects, in
addition to ensuring health and promoting life standards, will pave the ground for
job finding and work that will attract people towards public projects.

Strategic area 3: developing sustainable renewable energy:


This program is developed with the help of MRRD and UNDP to create
renewable energy from solar, wind, water, biomass and biogas resources for the rural
people that do not have access to the grid power.
The MRRD is determined to provide renewable energy in the form of heat or
electricity for 200 regions. As a result of these efforts about 19500 families will be
benefitted from the health, economic and social benefits of renewable energy in the
rural areas.
In addition, it will provide energy for productive goals and economic activities
(small and medium ventures) that will help improve the level of welfare in the rural
areas.

3.1. Goals:
Access to sustainable renewable energy for the rural social and economic
development for better movement of this process, public and private sectors will also
be included in this process, and the governmental agencies, civil society institutions
and public and private sector will be supported for capacity development through
specific capacity building guidelines. In addition, capacity building for the national
teacher training institutes and human resource development for renewable energy is
considered. It is worth mentioning that the MRRD will create a specific legal
framework through Afghanistan renewable energy program for monitoring, quality
control and protection of environment to ensure sustainable development of
renewable energy in the rural areas. This program will be focused on solar, wind,
water, biomass and biogas energies.

3.2. Producing solar energy:


By having (300) sunny days in a year, Afghanistan has a capacity for (222000)
MW (NREP) energy per year. Persuading and supporting the use of solar energy for
power production, irrigation and heating water will help achieve log-term strategic
goals. The government should consider a strategy that will be economically viable
in contrast to use of other technologies. The MRRD will design and implement a
plan that will improve the use of solar energy for heating water and irrigation. The
government will also make sure that quality products are distributed to people by
explaining the required standards for cooking and heating water.

3.3. Producing Micro hydroelectric energy:


Considering the master plan, Afghanistan has an estimated capacity for
producing 23000 MW of hydroelectric energy. In addition, small and big
hydroelectric energy systems will be installed in potential areas, in line with the
policies of the government, and norms and standards of the MoEW.
3.4. Producing wind energy:
Afghanistan has a capacity for producing 67000 MW (NREP) electricity
through wind turbines. Supporting the production of wind energy, the aim of this
strategy is identifying, studying and using the resources from MoEW for finding the
wind regions and implementing projects in the rural areas.

3.5. Producing biomass energy:


The energy sector in Afghanistan mostly relies to mass energy (burning wood,
coal, fodder plants, and animal wastes) and a part of the rural energy needs will be
supplied by it.
The goal of this system is to maintain a sustainable mass energy supply and
its use, this will have an appreciable impact on the income of people in rural areas.

3.6. Investments and coordination on energy and power supply for the rural
areas:
Access to energy and power is vital for economic development in the rural
areas, because the lack of it will hinder the economic growth and create obstacles on
the way of small and medium size ventures. The MRRD focuses on investment and
planning regarding the use of renewable energy and will achieve this goal with the
help of the private sector. The MRRD will collaborate with the MoEW to jointly
identify the priorities and work to compensate the unimplemented activities in the
rural areas.

3.7. Crosscutting Issues:


3.7.1. Empowering women:
The sustainable energy is a factor for promoting gender equality that will
create remarkable changes in the life of human beings (men and women). Supporting
the role of women in the use of energy and improving their health condition, this
strategic area will focus on the following issues:
• The socio-economic effects of this program will support economic
activities such as production, education, health and other services for
women through providing sustainable energy.
• The women will be supported by the new heat energy systems such as
Tandors (local instruments for cooking bread), heaters and modified stoves
that are more efficient.
• Renewable energy will be supplied for the productive economic activities
in the rural areas such as livestock, chicken farms and household crafts that
women have a remarkable role in them.
• The energy supply methods that could support women in their economic
activities in the rural areas will be selected
• The MRRD will increase the share of women up to 30% in the programs
and capacity building programs will be implemented for sustainable
leadership of women in the developmental programs.

3.7.2. Protection of environment:


• The rural sustainable energy program will comply with the norms and
national standards of protection of environment in producing renewable
energy.
• A complete list of requirements will be created for all the energy
instruments in coordination with the national norm and standard authority.
A monitoring system will also be developed for checking local systems in
the laboratory of the Kabul University.
• guideline for protection of environment and operation of energy providing
services will be developed by the MRRD in close coordination with the
environment protection authority.

Strategic area 4: developing industry, and small and medium size rural
ventures:
4.1. Aim:
Increasing sustainable employment and long-term welfare opportunities
through providing and using existing economic facilities.
The MRRD as the leading authority for rural development plays a central role
in the betterment of rural welfare, sustainable employment, increasing income and
decreasing poverty.
The general impression is that agriculture and livestock represent a major
economic sector for employment in rural areas, but the current achieved employment
cannot guarantee a steady and sufficient income to meet all the requirements of
people in the rural areas. In addition, a number of necessary commodities that can
be easily produced in the country are imported from outside the country; this has
hindered the development of all the related industrial activities in the country. The
survey that was conducted to study all the small and medium size ventures, indicates
that two reasons are hindering the development of private sector in the industry, such
as: lack of developmental and technical services for income generating employment,
and lack of financial resources in the rural areas of the country.
In addition, the lack of technical assistance, financial resource and lack of
access to market, low capacity of Business production marketing, lack of access to
day technology, lack of expert workers, production standardization, low capacity in
Businesses management are factor which prevent Businesses growth in country.
Considering these requirements, the MRRD will increase its services for
development of rural investments and creating opportunities for economic
development (e.g., connecting districts to the markets) in the rural areas.
These services should be balanced and synchronized with other
developmental and agricultural programs so that the effects of them will be sensible
and satisfactory. For example, the MRRD will support the agricultural and non-
agricultural ventures, so that beside the land owner the people who do not own land
will also be benefitted. Providing these services will completely support the
activities of the Ministry of agriculture, irrigation and livestock that is focusing on
the quality of agricultural products and its output.

4.2. Improving coordination for economic development:


The MRRD has coordinated in its work area for development of infrastructure
and investments in various fields such as (energy, connectivity, water-supply and
irrigation), and will support any practical innovation for development of
entrepreneurship. In addition to coordinating between the infrastructure
development and industry, the MRRD will also develop mechanisms and
frameworks for facilitating mutual understanding between financial and technical
service providers (government and non-government). The MRRD will also
strengthen the relationship between the programs and ventures that can improve the
effect of these measures such as, national skill development program, innovation for
ensuring financial credit of the rural areas and coordinated facilities for small and
medium size ventures.

4.3. Paving the path for establishment of effective local institutions:


The experience of village development councils implemented by (NSP), has
proved the importance of creating focused local economic development institutions
and expanding them, besides planning and implementing infrastructural projects.
The aim of such institutions is identifying employment opportunities, creating
education opportunities, supporting services, sharing capital and responsibilities,
collecting savings, addressing the problems and the use of potential existing facilities
in the area for providing access to financial support. The saving groups, production
groups, loan and savings unions are among the service groups which provide
technical and financial services and are supported by the MRRD.
For example, the Economic Empowerment Program for rural women will
create institutions to create non-farm employment opportunities for the poorest
people in rural areas. Through the creation of producer groups, the unions of
producers, and the creation of an interface or link between small and medium
enterprises in urban areas and small and medium enterprises in rural areas, the
problem of unemployment will be eliminated. This will provide stable sources of
income for rural people and make them more productive.

4.4. Paving the ground for repayable loans, including Islamic loans in rural
areas:
The MRRD will coordinate with the Small Investments for the Rural of
Afghanistan Authority (SIRA) for increasing the capacity of the Ministry employees
and partners regarding small loans and Islamic loans. Therefore, the (SIRA) and loan
granting authorities can count on the presence and experience of MRRD in the rural
areas, and launch and develop their products that match the requirements in the rural
areas.
In order to increase loan grants in the rural areas and achieve the (SIRA) goals,
MRRD struggles to maintain a stable access to loans in the rural areas through
facilitating and supporting the local administrations, providing financial education
and connecting the loan and saving unions (that are considered to perform as village
banks in the long-run) with loan granting authorities. The MRRD supports the
Islamic loans and will improve the performance of loan granting unions in the rural
areas by using the Islamic loan models. The MRRD will also collaborate with its
partners and (SIRA) for increasing small investments in order to increase products
and income in rural areas.
In addition to small-scale investment in Afghanistan, programs such as the
Women’s Economic Empowerment Program will mobilize institutions at the level
of villages and districts as small groups of savings, including an average of ten
members, so these groups can save money based on Weekly savings and use it to
meet the urgent needs of group members or to invest in generating productive
activities.
The loan and savings unions of the village will be built to act as a village bank,
and will generate loans from savings groups for business activities based on Islamic
principles, it will be not only an option or a financial source for small and modest
businesses., but will help non-farm activities and job creation in the villages.

4.5. Providing development services for business and ventures:


As the access to loan services are important, providing development services
for ventures and businesses are also really important. These services include useful
information about market based on analyzing the values, market study, work-plan
for the venture, financial management, book keeping and developing the products
and supplying it to national, regional and international markets. The MRRD will
provide appropriate services and marketing support for small and medium industries
that have the capacity for direct or indirect employment and completes all the prior
requirements of the market for production and raw materials. For starting this task,
development services and education should be offered free of cost. The MRRD plans
to gradually create and support private sectors for providing development services.
In addition, the MRRD will create support authorities for addressing the needs of
local entrepreneurs all over the country and invest on the capacity of them.

4.6. Ensuring the economic situation in coordination with other sectors:


As an example, considering the peace and development framework of
Afghanistan for the next five years (600) MW of solar, wind and gas energy will be
produced, the MRRD will provide renewable energy and transportation
infrastructure for economic and productive goals, that will create the economic
situation for improvement and income generation.
4.7. Establishing local markets (district level)
The MRRD in coordination with relative administrations will establish
markets in the rural or district areas after analyzing and precise study. This will
provide timely access for producers, and small and medium ventures that will result
in the commodities to reach the market on time, packed and shipped to other national
and international destinations.

4.8. Technical and professional education:


The MRRD considers to launch and institutionalize technical and professional
education for effective social and economic development. In this regard, the Rural
Development Institute of Afghanistan in coordination with relative organizations
will develop the curriculum, norms and standards of technical and professional
education, policies and educational modules. The (RDI) will create educational
curriculum administration in its structure for this purpose; in addition, for the better
implementation of educative modules in the provinces, an administration for
technical and professional education will also be created. The RDI is responsible to
institutionalize the educational policies and manage its procedures.

4.9. Our village our pride


4.9.1. Empowering women:
Creating employment and persuading women to take part in productive
activities, in addition to strengthen the role of women in the family and community,
will contribute to changing the mindset of women through working together in the
productive chain and meeting other rural women. This will empower them to have
an active role in the community and improve their economic activities. This will lead
to independence and empowering of women in the community.

4.9.2. Protection of environment:


A specific guideline for protection of environment and reducing the
destructive effects of small and medium size industrial activities will be created,
meanwhile the environmental framework of the World Bank and the enacted rules
and regulations of Afghanistan will also be considered.

4.9.3. Counter narcotics:


Employment and income generating opportunities are created through legal
investments and ventures in the rural areas. Increase in the value of agricultural and
non-agricultural products will increase the economic benefit of the products and
provide enough income in legal ways. Obviously, this will be implemented by
creating mechanisms and supporting potential facilities that are not dependent to
narcotics, and eventually cause indirect reduction of narcotics in the related areas.

Strategic area 5: strengthening local governance:


In perspective of the MRRD, local governance is strengthening people and
local institutions for participating in economic and social decisions in the rural areas.
The MRRD has developed and planned the CCNPP that is an innovative, inter-
ministerial and multi-sectorial program by the government of Afghanistan that
provides socio-economic infrastructural services for the covered areas. This program
is created owing to the fourteen years of experience in NSP and other developmental
programs to provide services through supporting local development councils for the
next ten years.
The MRRD is determined to support the solidarity of people through
providing basic services considering developmental priorities.
According to the program manual, development councils are responsible for
planning, budgeting, implementing, monitoring, and reporting in the covered areas.
This process will remarkably increase the sense of ownership in the people. The
CCNPP promotes widespread development in all the levels, and raises the voice of
the vulnerable parts of the society like refugees, displaced and poor.

5.1. Goals:
• Empowering the localities for providing socio-economic infrastructural
services in all the nation
• Reducing poverty and strengthening relationship between people and
government through implementing developmental activities led by local
councils

Local development councils are national mechanism for providing long-term


services for the partners of the Ministry. This will facilitate development processes
and increase the efficiency of expenditure by active participation and help the
coordination process.
The presence of representatives and their capacity building for addressing the
needs of people increases their reputation among people and pushes the local
institutions to discuss their problems and disputes with the local authorities.
Therefore, the development councils are the basis for answering and decision-
making mechanisms and policies that holds the relationship between people and
government. The MRRD is looking forward to the elected representatives of people
to be directly accountable to their electoral constituencies and help change the
formation of local power to a more accountable regime for protection of public
property.

5.2. Supporting the role of local development councils in the rural areas:
The MRRD is working with other partners with the experience of holding
elections in the rural areas, to make sure that the district and village development
councils are in line with the pre-defined norms in the constitution.
In addition, the MRRD will increase the role of development councils by
educating them in the area of governance, conflict resolution, investments,
mobilization of rural people and the role of the councils as accountable leaders. This
process will help the people to understand their legal and social responsibilities in
the long-run. This program is effective in building trust and stability, and is designed
for accountability and transparency in the CCNPP.

5.3. Enhancing the role of local development councils as development agencies:


The MRRD is determined to create and mobilize 14200 village development
councils and divide them into different clusters in order to select and implement
bigger projects. The MRRD will increase the capacity of District Councils (DCs)
through educating them about join planning and implementation. The DCs are
encouraged and mobilized to be supported by local institutions, and if possible, to
run even without a budget allocation within the Ministry and continue to address the
needs of people whom they represent.
5.4. Development plan of local council/ cluster:
The main goal of creating a plan is to agree on a shared vision in long-term
and create strategies and activities within a specified time frame for achieving the
specified goals. The development plan for councils/ clusters will be developed by
the local people with the help of social workers and engineers, after completing a
series of tasks like, social and economic analysis, determining the resources and
mapping. These practices will help us consider the requirements of women and
problems of the vulnerable and marginalized people.

5.5. Response to accidents and social safety:


The continuous occurrence of natural and unnatural accidents have always
lead to casualties and financial losses. This has caused a lot of people to get
displaced, caused poverty and instability in the villages. The MRRD approaches the
natural disasters as a major part of its operation and struggles to provide necessary
services in coordination with national anti-disaster committee by surveying,
researching and identifying the vulnerable areas in the country. In addition, the
Ministry will address the marginalized people such as refugees and displaced,
disabled, women who are responsible for a family, elders and Nomads through
CCNPP by providing effective services to meet their urgent needs.

5.6. Health and educational infrastructures:


This priority includes schools, clinics, social centers and etc. that are built in
coordination with related authorities (MoE, MoPH and IDLG). As we all know, a
large number of children and teenagers of our country are studying under the direct
rays of sun and without a shelter1. The MRRD is focusing to build relatively cheaper
structures, so at least the children and youth could continue their education inside a
shelter, and be protected from heat and cold.

5.7. Transferring the responsibilities of partner organizations to social workers:


In the past one decade, the Afghanistan’s government has relied on the non-
governmental organizations for providing services and building capacity in the
villages. This method is expensive and the chances of its continuation is low due to
the lack of financial opportunities. In addition, the services provided by the non-
governmental organizations in the rural areas, has questioned the reputation of
government in the villages and most people think the government is incapable of
providing services to its people.
The responsibility of providing services by the government, increase the
capacity of the government and will result in continuation and stability in the long-
run. In addition to this, the cost associated with the services being provided by the
private sector is much higher than the government. The social workers (men and
women) that are currently operating under the Development Directorate of this
Ministry will take the responsibility of the partner organization in the next three
years, and the partner organizations will take the responsibility for capacity building
of the mentioned social workers. Currently 128 social worker are jointly working
with the partner organizations.
The MRRD is planning to increase the number of social workers and they will
be merged with the Directorate of Development under the social safety sector in the
CCNPP.

5.8. Crosscutting Issues:


5.8.1. Counter narcotics:
Counter narcotics is one of the principles of CCNPP led by the MRRD and all
the partners are determined to prevent the cultivation, trading and other uses of
narcotics. This program will educate people about the disadvantages of narcotics,
persuades them for cultivating other alternative crops and if necessary, provides the
water resources.

5.8.2. Protection of environment:


The major role of environment and social protection department in CCNPP is
preventing or minimizing the harmful effects of the developmental projects and
maximizing its positive social and environmental effects. This will also make sure
that the activities are in line with the environment protection polices of the World
Bank, UN environment agency, and environment laws and regulations. This will
have long-term impacts on adopting the climate change. In addition, necessary
education about the benefits of environment and the harms of polluting the
environment will be given to people through village councils.

Strategic area 6: developing administration and effective delivery of services:


The MRRD needs to bring some necessary changes to administration for
improving the quality of services and its continuous delivery, to prepare it as an
effective administration in the long-run. Institutionalizing and effective structural
reforms are some of the steps that can improve the operations and capabilities of the
MRRD towards achieving its strategic goals. The MRRD is planning to strengthen
the technical, legal and service sectors such as Rural Development Institute, Policy
and Plan, Finance, Audit, Procurement, Engineering services, monitoring and
evaluation, HR and other support departments, in order to provide effective and
efficient services such as surveying, researches, management trainings, professional
trainings, planning, technical surveys and design.
The Ministry is trying to study the implemented activities and identify the
urgent needs of people in the rural areas, as this will ensure balance and equality in
the process of implementing the projects.

6.1. Goals:
Goal 1:
Strengthening and institutionalizing structural formations by creating and
enhancing systems, effective work procedures and building capacity and technical
support
The MRRD is planning to modify some of its activities and synchronize it
with new strategic areas.

6.2. Reform process:


Goals:
• Reducing administrative costs
• Eliminating parallel units and work interference
• Stabilizing and preserving the cadres
• Ensuring social justice through balanced development

For the better implementation of the strategic plans, and better implementation
of international and governmental policies the MRRD needs to unify the parallel
programs, and reform and unify all its developmental projects in one or two major
programs. This ministry has started the reform process for all of its central and
provincial departments to create and enhance systems, build capacity and technical
support, for effective and continuous delivery of services. The reform process is
complimentary to CBR and other capacity building processes.
The office of reform acts under the leadership of the MRRD based on a
verified plan through senior technical committees in collaboration with the
directorates and programs.

6.3. Monitoring and evaluation:


The monitoring and evaluation system in this Ministry operates both through
monitoring sections of the concerning programs and the directorate of monitoring
and evaluation in a dispersed manner. The MRRD plans to create a single monitoring
and evaluation mechanism based on the modern systems, to ensure the better quality
of work and provide on-time reports of quality and quantity of the projects.

6.4. Managing the information system:


The MRRD is considering to develop a single information bank to be used by
all the departments,
in addition, the MRRD will implement the following:
• Enhancing a single and integrated (MIS) system
• Improving (MIS) to a (Knowledgebase)
• Strengthening the reporting process through the development of (MIS)
• Institutionalizing the MIS/GIS systems for decision making, planning,
monitoring and evaluation

Goal 2:
Effective service delivery standards through surveys, professional and
vocational training, promoting technology in rural areas and disseminating
information.
The MRRD is responsible to conduct a survey about effective service delivery
and research about the requirements and priorities of people in the villages through
the Rural Development Institute as an academic, research and educational
institution.

6.5. Research and survey:


The Rural Development Institute will take necessary statistics, analyze the
data and provide new and specific suggestions for the implementation of plans and
sectorial policies. In addition, it develops a baseline for analyzing and calculating
the achievements, results and the effects of developmental projects and other
activities of the MRRD.

6.6. Education, professional and vocational training:


Strengthening the human capital with respect to the strategic areas and
activities of the MRRD can pave the ground for the betterment of life standards in
the rural areas and enhance their participation. This Ministry provides long and
short-term vocational and professional training, fellowships and scholarships in
order to build the capacity of employees and council members. The Rural
Development Institute is responsible for managing and organizing vocational and
professional trainings (inside or outside the country) and the HR Directorate is
responsible for conducting managerial trainings.

6.7. Rural technological park:


The MRRD will take necessary action for promoting the life standards in the
rural areas through promoting the use of technology, considering the local and social
situation in the next five years.
6.8. Raising the Awareness:
The MRRD has used different methods for raising the awareness of people
and concerning authorities. This will lead to maximum participation of people in the
implementation of projects, as a result of which the plans and programs can be easily
implemented in the rural areas.

Goal 3:
Creating and supporting responsive and comprehensive policies to reduce
poverty in rural areas As the existing statistics show that the major number of
population comprises of rural people, thus, it is really important to develop
comprehensive rural development policies for supporting the rural people.
Considering the fact that the MRRD must expand its area of services, the
MRRD will try to shift its focus from short-term projects to good governance,
sustainable economic development and sustainable administrations. This shift will
provide a chance to develop comprehensive policies and strategies for addressing
the complex phenomenon of poverty in the rural areas.
The MRRD, in coordination with the partner agencies, will take the leadership
of national rural development policy that will provide a framework for all the
developmental activities in the rural areas.

6.9. Strengthen policy-making and strategic activities:


The MRRD is planning to create a department that will be responsible for
managing the process of policy-making and strategic activities. This department will
be evaluated by the committee for policy and strategy review, which reviews the
relevance and quality of the policies and strategies with respect to the national goals.

6.10. Reconciling the policies of stakeholders in line with the needs of rural
people:
Most of the achievements of the MRRD depend on the quality of the policies
in the various organizations operating under the jurisdictions of MRRD. Thus, the
MRRD is planning to identify the shortcomings in the policies and help the
organizations in creation, and reform of their new policies. This Ministry is an active
partner of other Ministries in the rural development issues. The MRRD will try to
create coordination between local development councils and partner organizations
to deliver effective services in the village level.

6.11. Strengthening planning through a comprehensive and inclusive


mechanism:
The MRRD will create a comprehensive and inclusive plan which will reflect
the basic priorities of rural people and farmers. This process will be organized
through rehabilitation and development directorates in collaboration with district
development councils, sectorial departments and provincial development councils,
using bottom-up planning method.

6.12. Facilitating the process of including local plans to other administration’s


plans:
The MRRD helps other partner organizations and ministries in identifying and
including the priorities of rural people into the developmental plans of other
organizations, and implementing them.

6.13. Crosscutting Issues:


6.13.1. Protection of environment:
Most of people in the rural areas are directly dependent on environment and
natural resources for their source of income. The MRRD struggles to consider the
sustainable protection of environment and the global sustainable development goals
in all of its activities.
The MRRD will create and enhance the environment protection framework
through its working programs; in addition, the MRRD will consider all the
environmental issues in planning and implementing its activities.
The MRRD will implement all the guidelines, procedures and laws of the
protection of environment, and also promote the adaptive technologies.

6.13.2. Fighting against accidents:


The continuous occurrences of natural and unnatural accidents have always
led to casualties and financial losses. This has caused a lot of people to get displaced,
caused poverty and instability in the villages. The MRRD approaches the natural
disasters as a major part of its operation and struggles to provide necessary services
in coordination with national anti-disaster committee by surveying, researching and
identifying the vulnerable areas in the country. In addition, the Ministry will invest
to alleviate the condition of people in the accident-prone areas.
This ministry will include environmental issues in its national programs and
reduce the disastrous effects by innovation and necessary action in national and
provincial level.

6.13.3. Fighting corruption:


This Ministry is determined to use the planning system, project management,
and use electronic governance in procurement, finance and HR sectors, to minimize
corruption and institutionalize transparency and accountability. By implementing the
reform process, all the procedures, policies and methods will be simplified according
to the national priorities. In addition, the enhancement and support for standardizing
the internal control process for both projects and support department will continue
as per the needs. Trainings and capacity building programs will be conducted
regularly during the job and a constant coordination will be maintained with judicial
organs.

6.13.4. Balanced development:


As per the 6th article of the national constitution (the government is
responsible for providing the welfare of community based on the social justice,
respecting human dignity, supporting human rights, realization of democracy,
ensuring national unity, equality between people and tribes, and balanced
development in all the areas of the country). Balanced development in the rural areas
is a factor in the growth and prosperity of the country’s economy and enhances the
trust between people and government. Unequal distribution of national capital in the
past has widened the gap between the citizens and increased distrust for government
among people. By considering the previous investments through implementing
projects in the rural areas, basic priorities of people in the villages and budgetary
capabilities; the MRRD struggles to ensure access to basic services for all people
and social justice through institutionalizing balanced development.
Chapter 3: Paradigms of Rural Development

Introduction:
There are several paradigms or models of development in vogue at present
and also many perspectives or viewpoints. A theory is expected to perform two major
functions, namely, explanation and prediction, of a phenomenon. There is no
universally acceptable model or theory of rural development, which can explain the
existing phenomenon of rural development and predict its future course. What we
have is a set of hypotheses and propositions that constitute higher level
generalisations in the fi eld of development. To the extent that rural development is
a subset of development, the hypotheses of development apply to rural development
as well. Many such hypotheses emphasise both eco nomic and non-economic
determinants of development, that is, they are quite comprehensive. Another
characteristic of some of the hypotheses propounded by development theorists is that
they are not fully operational, in the sense that it is very difficult to test them, that is,
they are refractory. This chapter is devoted to a critical review of some of the
contemporary paradigms of development and examines their relevance to rural
development in the Indian context.
We begin with an examination of what the great thinkers of the past,
particularly the Classical economists, contributed to the subject. We can, then, in the
light of subsequent experience, determine in what respects they were right or wrong.
In this manner, we can free ourselves (at least partially), from the confines of our
own times, and can better equip ourselves for an objective analysis of the complex
process of development.
The economists of the late eighteenth and early nineteenth centuries were
primarily concerned with the conditions for economic growth. This was the period
of the Industrial Revolution in Europe. The Classical economists—including Adam
Smith, David Ricardo, Thomas Robert Malthus, John Stuart Mill and Karl Marx—
lived through the period of take-off into sustained growth. The observations of these
economists regarding the nature and causes of economic growth are, therefore, of
considerable interest. We shall now present some basic ideas of the Classical school
of thought, which may still be relevant. An interesting element of the arguments of
the Classical economists was the concept of circularity that characterised the
interrelationship between technology, investment and profit. The circularity was
inherent in their assertion that the level of technology depends on the level of
investment, investment depends on profits, and profits depend partly on the level of
techno logy. This circularity was no accident or oversight. It was precisely what the
Classicists wished to stress, that is, in economic development, nothing succeeds like
success and nothing fails like failure. In the circular argument, we already have a
clue to the difference in the performance of developed and developing countries.
The Classical economists did not focus their attention on development or rural
development per se. They perhaps assumed that economic growth would naturally
lead to development. It was towards the end of World War II around 1945 that
development became an important fi eld of study and attracted several scholars.
Most of the initial writings on the subject dwelt on explaining the meaning of
development, identifying factors affecting development and exploring
interrelationships among the factors. Two distinct schools of thought emerged in the
1950s, namely, the Capitalist School and the Marxist School; and two distinct
theories corresponding to them, namely, the ‘Modernisation Theory’ of the Capitalist
School and the ‘Dependency Theory’ of the Marxist School.

THE MODERNISATION THEORY


The dominant arguments of the Capitalist School are embodied in what is
known as the Modernisation Theory or the ‘Free World’ model of development. The
Modernisation Theory was the justification for the US hegemony in the context of
the Cold War. Scholars who contributed to the growth and development of this theory
comprised economists, sociologists, historians and anthropologists, and the
determinants of development identified by them included both economic and non-
economic factors. The essence of the theory was the transfer of Western technology
and rationality, without changing class structure as a means of development, and
removal of all social and ideological obstacles to such a process (Alavi and Shanin
1982: 2).
The Modernisation Theory was based on several assumptions, some of which
are briefly stated here (Barnett 1988: 26; McKay 1990: 55):
1. Application of Western science and technology in order to increase
production is essential for achieving development.
2. The process of development can be delineated into a series of stages, and
all societies pass through those stages.
3. In the process of development, traditional social and political insti tutions
are replaced by modern ones.
4. Traditional feudal forms of political power will be replaced by democratic
forms of governance.

In a nutshell, the Modernisation Theory presented the ‘American way of life’


as the epitome of modernity. It envisages that development can be achieved only
through industrialisation and urbanisation, along with technological transformation
of agriculture—an insight validated by the experience of the newly industrialised
countries of East Asia and Southeast Asia.
In the context of rural development, the Modernisation Theory offers quite a
few useful insights, such as the inevitability of the use of modern technology for
increasing agricultural production and the need for replacing traditional feudal
institutions by new democratic ones for a shift towards greater scientific temper, and
secular values and norms. How ever, the theory has lost much of its appeal due to its
failure to predict and explain many economic phenomena, such as the faltering of
the post-World War II boom in the 1960s, worldwide depression in the 1970s and
the shift in the terms of international trade in the favour of developed countries. The
theory also did not foresee the adverse environmental impacts of the capitalist/free
market model of development and its unsustainability. In the face of these
weaknesses and criticisms, the theory has taken a few new directions, such as
International Keynesianism, with its emphasis on the establishment of a New
International Economic Order and the Guarantee of Basic Needs and Structural
Adjustments Programmes. However, these new initiatives do not directly address the
problems of rural development and, to that extent, are not relevant.

The financial (currency and stock market) turmoil in the East Asian countries
has proved that the free-market economy model, or the capitalist path, cannot
guarantee stable and sustainable economic development characterised by fast
improving living standards. From Japan and South Korea to Malaysia and Indonesia,
mounting bankruptcies, growing unemployment and rising inflation, had
engendered not only the loss of eco nomic self-confidence, but also threatened the
region’s political and military stability.
There is yet another reason for the failure of the Modernisation Theory to be
relevant in the context of developing countries like India, and that is the non-
existence or ineffective implementation of rules and controls aimed at preventing
private companies or groups from dominating their domestic markets. In the free
market oriented Western democracies, such rules and controls are effectively
implemented and, hence, they tend to even out the distribution of income and wealth.
In the absence of strict control and regulation of the activities of private enterprises
in developing countries, including India, not all the intended benefits from free
markets accrue to society.

 Determinants of Rural Development


 Changes in Output and Natural Resources
 Human Resources, Capital, and Technology
 Organizational and Institutional Framework
 Relation between Rural Development and Its Determinants
 Rural Development Policies
 Freedom, Control, and Public Policy
 Goals of Rural Development Policy

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