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Promoting Inclusive and Sustainable Growth

 

ACTED lays the foundations to promoting inclusive and sustainable growth during its work in the rehabilitation and recovery phase. The first step is made when promoting household-level food security, restoring livelihoods, fostering self-reliance and income generation through a household economy approach. During the development phase, this approach is expanded. On the one hand, ACTED focuses on sustainable, climate-smart agriculture by taking an ecosystem approach to agriculture. ACTED promotes the efficient production of safe, high quality agricultural products, in a way that protects the natural environment and improves the social and economic conditions of farmers and local communities. On the other hand, ACTED focuses on private sector development, especially Small and Medium Enterprises (SMEs) and on rising productivity in the informal economy, particularly in urban and peri-urban contexts. ACTED supports these private sector actors to realize their growth potentials and strengthens institutions that can help increase private sector participation in the formal economy.

Inclusive growth which advances equitable opportunities for economic participants and promotes social justice is a key feature of ACTED’s approach. ACTED focuses in particular on youth, women and ethnic minorities. The inclusive growth approach takes a longer-term perspective, as the focus is on productive employment as a means of increasing the incomes of poor and excluded groups and raising their standards of living. Supporting social protection schemes and promoting access to quality education for marginalized and vulnerable children and youth are ACTED’s key activities to promote inclusiveness.

Core Area 3.1. Climate-Smart Agriculture

Rationale

Despite increasing urbanisation, over 70% of the world’s poor live in rural areas. Many of them are landless or smallholder farmers whose low productivity contributes to poverty, food shortages and hunger. Indeed, 805 million people or one in eight people in the world suffer chronic hunger, not having enough food for an active and healthy life. The vast majority of hungry people – 798 million of them – live in developing regions, where the prevalence of undernourishment is now estimated at over 14%. Around 25,000 people die from hunger each day. Hunger and malnutrition remain among the world's top public health challenges. Shocks related to climate change - increased frequency and intensity of hydrometeorological disasters -, and increasing competition for access to, and control over natural resources, especially land and water, further exacerbates food insecurity. The complex interaction between food, land, water, trade and energy, combined with price volatility, and the growing climate crisis means over the next decade the food system is under severe stress. Subsistence farmers, smallscale producers and cooperatives must be supported through the development of locally adapted climate smart-agricultural production systems that safeguard ecosystem services and their position in the value chain must be strengthened in order to strive and develop greater resilience.

Activities

Facilitating access to agricultural inputs, such as improved seeds, organic fertilizer, etc.;

  • Through extension services, promoting scalable climatesmart agricultural production systems and practices that sustainably increase yields and/or are more resource efficient;
  • Promoting dietary diversification and food fortification to address micronutrient deficiencies;
  • Supporting subsistence-based farmers to transform into market-based small-scale producers;
  • Facilitating farmers to develop their organizational capacity for better collective action vis-à-vis service providers and market actors, for example through support to cooperatives;
  • Supporting value chain approaches to help poor farmers to increase their production, capture market opportunities, obtain fair deals, and produce higher-quality products;
  • Developing agricultural markets, expanding trade and using mobile phone, radio, and other media channels, phones to provide real-time prices, so farmers can sell what they grow at a profit;
  • Helping farmers access capital, incl. in collaboration with OXUS;
  • Facilitating an enabling policy framework for pro-poor agriculture development (land reform, market access, subsidies).

Impact Statement and Indicators of Achievement

More people enjoy greater food and nutrition security through investments in sustainable food production systems, access to markets and increased resilience of their livelihoods.

  • Number of farmers and their household members benefiting from activities/services increasing their productivity in a climate-smart and resource-efficient manner;
  • Number of farming enterprises with increased profitability.

Core Area 3.2. Employment, Income and Financial Inclusion

Rationale

Worldwide, more than 200 million people – among them 75 million young people – are officially out of a job, leaving them economically and socially excluded. Between 25% - 35% of the labour force in many developing economies is also underemployed and hence without adequate income. Furthermore, over 620 million young people are not in school or training and not actively looking for work, risking a permanent exclusion from the labour market. Creating almost 90% of jobs in developing countries, the private sector is a driving force for poverty reduction. However, young jobseeker often do not match the skills required by the private sector. With one billion new job-seekers expected to enter the global labour market until 2020, mainly in urban centres, the problem of access to employment will become even more pertinent. Labour markets in developing countries are often highly segmented and informal with a low quality of employment: low earning, high levels of insecurity, limited chances for advancement, and a lack of social protection. Interventions to enhance productive, fair and inclusive employment opportunities need to focus on quality education, vocational training, support to the creation and growth of MSMEs, especially in employment-intensive sectors, and social protection schemes. Finally, an estimated 2.5 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions. Advances in technology and falling costs offer the chance to bring financial services to even poor and remote populations. For many developing countries, especially in Africa and South Asia, there continues to be a need for financial inclusion players who are committed to providing services to those at the bottom of the pyramid.

Activities

  • Promoting access to quality education for children and youth, incl. life skill development;
  • Supporting technical and vocational education and training (TVET) and apprenticeships with a specific emphasis on youth and women;
  • Stimulating entrepreneurship, incl. business advisory and financial services and advocating for an enabling business environment;
  • Promoting a safe and dignified work environment;
  • Value chain approaches, particularly in the informal sector in urban and peri-urban settings;
  • Facilitating access to affordable credit and financial services, incl. in partnership with OXUS;
  • Supporting social protection schemes such as safety-nets (pension, insurance), incl. policy formulation
  • Awareness raising and protection activities for potential economic migrants;
  • Supporting social business, for example community-based eco-tourism initiatives.

Impact Statement and Indicators of Achievement

The proportion of people living in extreme poverty is reduced and people are able to achieve greater security of income and earn more income.

  • Number of people provided with educational and/or skill development opportunities;
  • Number of people supported with income generation and/or wealth creation activities.