On borrowed time – the limits of informal credit for livelihood security

Within Afghanistan’s deeply socially embedded economy, informal credit is a key mechanism through which markets operate and through which the distributional economy provides access to land, labour and income for rural households. This study undertakes an in-depth examination of informal credit practices in two villages in Herat that differ in size and economy, exploring how credit operates. In particular, it looks at the ways in which credit is used and negotiated, its interaction with livelihood churning, how credit mechanisms are gendered and the extent to which social relations are underpinned by informal credit.
Full report is available.

AREU’s report was launched during an event on 1 July 2019. A number of high-ranking government officials, national and international organizations and civil society organizations representatives participated in this event and discussed in details the findings of the paper. The event was composed of a presentation by Mr. Tom Shaw and Ihsanullah Ghafoori, the authors of the paper, followed by a panel discussion.