Promoting Economic Recovery in Pakistan After the October 2005 earthquake that killed more than 74,000 people, USAID designed a recovery strategy to deal with short-term humanitarian needs and the long-term economic and livelihoods recovery that would be necessary. The Improving Livelihoods and Enterprise Development Program (I-LED) is a $28 million initiative implemented by CNFA to assist communities in North West Frontier Province (NWFP) and Azad Jamu and Kashmir (AJK), the regions most affected by the disaster. While I-LED was originally intended to last only three years, the program was extended for an additional 14 months, wrapping up in September 2010.
In addition to the high death toll and untold human suffering, the earthquake devastated these regions’ agricultural economy and damaged more than 80 percent of their infrastructure. Women were particularly affected as the earthquake destroyed income generating activities traditionally associated with women such as vegetable gardening and raising poultry. In response to the economic destruction resulting from the quake, I-LED has directly generated increased incomes and employment and improved economic linkages for the earthquake-affected populations by developing sectors with potential for economic competitiveness.
Reconstruction of Existing Livelihoods
Through a participatory community engagement process, I-LED has helped rural farming communities restore productive assets lost in the earthquake and rebuild critical agricultural infrastructure. The program focused on empowering women to participate in income-generating activities as well, from poultry production to dairy farming to kitchen gardens. These efforts have provided employment opportunities to more than 72,000 individuals and directly benefited more than 26,000 households.
Value Chain Development
I-LED’s value chain activities revitalized agricultural production by introducing sustainable production practices and value-adding activities. Through matching grants backed by technical assistance and training, CNFA’s value chain strategy generated new employment and income opportunities, improved competitiveness of products and services and increased access to markets. Specifically, I-LED’s development of agricultural and tourism value chains has resulted in the creation and support of 3,082 new and existing enterprises that are providing full-time equivalent employment to more than 4,914 individuals. Grant recipients have invested a total of $2.5 million of their own funds towards I-LED’s matching share of $5.25 million.
Local Economic Development (LED)
The Local Economic Development (LED) component of the project has strengthened the capacity of enterprises established by Value Chain grants. By organizing producers and processors into clusters and associations, LED activities have created opportunities for innovative marketing, improved access to production inputs and expanded group advocacy opportunities. CNFA has helped to create associations in the tourism, dairy, poultry, vegetable, fruits and potato sectors. Thirty two business associations were also formed and cultivated, through which members were equipped with necessary knowledge that enabled them to access an array of microcredit products and alternative financing options to run and expand their businesses.
Business Management and Technical Training
Finally, training on technical, organizational and business management skills was a central force in both the value chain and the LED components of the I-LED project. After the Livelihoods component was implemented, 432 formal trainings were delivered to the grantees and beneficiaries. Value chain and LED staff developed needs’ assessments, made curricula and supporting materials and delivered trainings in the business startup process, production, value addition, marketing and business management. As business associations matured, they also became training venues. Organizational trainings focused on formation of associations, objective setting, creation of bylaws, group dynamics and electoral processes, group decision making and group finances.
Accomplishments:
- 1,957 business associations and societies created during the program
- 432 trainings held in various agricultural and tourism sectors reaching 18,282 individuals
- 493 I-LED-supported enterprises accessing formal finance
- Over 72,000 employment opportunities provided and over 26,000 households benefiting from I-LED services
Related Links
Program Overview: Improving Livelihoods and Enterprise Development
Pakistan Association Chips Away at Poverty
Pakistan Woman Uses CNFA Grant to Create a Thriving Business
Updated 6/2009
