In ‘fragile settings’, markets are normatively constructed as core instruments and engines, that drive peace-building, growth and development. In the (post-)war economy of Afghanistan, for example, new opium-substitution crops such as saffron are cast as the silver bullet to not only ‘cleanse’ rural commodity markets of violence, but also to provide livelihoods for all. And in post-conflict situations around the world, facilitating the incorporation of young people (and particularly young men) into the labour market is seen as an absolutely essential first step in peace-building and recovery, their otherwise disconnectedness viewed as a major security threat. In this panel, a range of case studies – covering a variety of contexts and sectors – consider both the potential and the limits of markets as ‘vehicles for recovery’, pushing past the normative view of their instrumental value towards a more nuanced appreciation of the way in which markets actually work for the poor in such settings.

Chair: Mr Richard Mallett, SLRC-ODI

This panel is part of a recovering from conflict conference sub-stream convened by The Secure Livelihoods Research Consortium (SLRC) in collaboration with the Sustainable Development Policy Institute (SDPI). SLRC is a six-year global research programme exploring livelihoods, basic services and social protection in conflict-affected situations. Funded by UK Aid from the UK government (DFID), Irish Aid and the European Commission (EC), SLRC was established in 2011 with the aim of strengthening the evidence base and informing policy and practice around livelihoods and services in conflict. SLRC’s research focuses on eight conflict-affected countries: Afghanistan; Democratic Republic of the Congo (DRC); Nepal; Pakistan; South Sudan; Sri Lanka; Uganda; and Sierra Leone. The Sustainable Development Policy Institute (SDPI) is a partner institution and the Overseas Development Institute (ODI) is the lead institution. www.securelivelihoods.org

Networks of access in Afghan rural commodity markets

Dr Giulia Minoia, SLRC Afghanistan

After 15 years from the NATO intervention the growth scenario for Afghanistan is modest, vulnerable to political, security and climate shocks. The government and the international community however still forecast agriculture will be a pillar for development and a driver for economic growth. 

SLRC case studies on agricultural commodities - the onion trade in Nangarhar and the saffron production in Herat - highlighted rural markets are in Afghanistan highly informal and socially regulated. Social dimensions such as class, ethnicity and gender provide access to networks of trust that govern market opportunities and rents. Moreover the rentier economy has been offering to powerful actors official appointments and tailored institutions that could enable the distribution of resources to their entourage and give shape to new business ventures.

While findings from case studies highlighted that in Afghan markets institutions are personalised policies and programmes focus on technical solutions, such as the introduction of value chain models, that are still far from addressing the unwritten rules that govern the marketplace. A realistic governance of the marketplace may require reforms and policies to engage with the existing elites, in order to expand benefits from rents and networks to a wider range of Afghans. 

Swat fruit markets and recovery in FATA

Dr Abid Suleri, SLRC Pakistan and SDPI

Markets in crisis in Pakistan, Mali and South Sudan

Ms Irina Mosel, HPG - ODI

Market opportunities and market relations change during crises (including as a result of aid), both in obvious ways (e.g. increasing food prices during a drought or conflict) and more indirectly, as crises can transform the social and power relations which determine the market conditions that different people face. Understanding how crises affect markets and market relations is critical to understanding livelihoods and humanitarian outcomes. The Humanitarian Policy Group (HPG) at ODI has just completed a two-year project, exploring a wide range of questions related to the intersection of markets, crises and humanitarian action. Through field research in Pakistan (Sindh), Mali and South Sudan, the project sought to investigate how markets and businesses adapt during crises and how people derive resilience, or become vulnerable, as a result of market activity during crises. The project also looked at how humanitarian aid affects markets in crises and what effect this has on different households’ vulnerability. Findings from the different case studies highlight how markets cannot be understood in isolation, but how aid actors need to understand wider market systems, networks and trade relationships as well as institutional factors when engaging with markets. Broader political economy issues were also often found to be at the root of key problems facing traders, but these issues remain poorly understood by aid agencies. This presentation will draw out some of the key findings from HPGs markets work across different countries, and make linkages to some of SLRC’s markets work in Pakistan’s Swat valley.

Inter-Generational Hereditary Entrepreneurship: Family and Caste Capitalism in the Textiles Sector in Pakistan

Foqia Sadiq Khan*

This paper applies the concept of caste capitalism to Pakistan’s textiles sector and makes an attempt to link it to the rule of law debate. It is mainly based on textile manufacturers’ narration of their family stories and perceptions. The paper builds a narrative around family and caste as social institutions through which accumulation takes place. It also links family and caste capitalism to state policies.

Though this paper looks at four case studies, they have been chosen from a pool of 40 developed through 64 key informant interviews of the textile manufacturers, representatives of textiles’ association, employees and stakeholders. The paper also looks at literature on social and caste networks, including the work of Harriss-White. Other than Harriss-White’s pioneering work, some other key authors on social networks are also reviewed.

The study has found that the textiles sector is dominated by family and caste capitalism; and that social institutions play a preponderant role in accumulation. Just like Marwaris in India, two trading castes Memons and Chiniotis have dominated the textiles manufacturing since Pakistan’s creation. Most key informant interviewees had a single phrase to describe this: ‘business is in their blood’.