Customer Store Interviews by Institute for Money, Technology and Financial Inclusion / CC BY
One of the primary roots of conflict is poverty. Not having a reliable source of income leads to hunger and desperation, and provides ample reason for many people to take up arms and fight. This truth was underscored by a report from the World Economic Forum last year that ranked unemployment as the second most pressing issue facing the world. In the context of Afghanistan, McKinsey has highlighted the potential of employment for creating stability in the coming years.
Despite the great strides that have been made in Afghanistan in the past decade in terms of women’s rights, education, and healthcare, a great deal of work remains to be done. Afghanistan continues to struggle with hunger, with about a third of Afghan people dealing with food insecurity. Some of the problem stems from the fact that Afghanistan is largely fed by expensive imports. Historically, this was not the case. Northern Afghanistan was once known for its fertile farmland.
Poverty and hunger quickly drive people to violence unless another option exists. For Afghanistan, one such option is microbusiness. For a long time, investors and philanthropists have overlooked microbusiness as something on too small of a scale to make a real difference. However, entrepreneurs form the backbone of communities. They provide jobs, drive up standards of living, and create security.
Microbusiness is an important stepping-stone toward a better future for many communities in Afghanistan. While microbusiness may not be an end in itself, it is a means to achieve greater wealth. When a farmer creates a small business, he can offer jobs to 10 or so people in the surrounding community. With a steady income, these individuals can pool their money to create another enterprise and add new jobs to the market. Microbusinesses thus provide sustainable, self-perpetuating sources of income that can lift entire communities out of poverty and curtail violence.