Aga Khan Development Network (AKDN) in Syria

Aga Khan Development Network (AKDN) in Syria
The Aga Khan Development Network has made a long term commitment to working with the peoples and Government of Syria to support and contribute to the improvement of prospects for economic, social, and cultural development. Current priority areas include rural economic development, employment and enterprise development, enhancing the quality of social services, strengthening civil society organizations, and protecting cultural heritage including the development of sustainable tourism.
AKDN is piloting an integrated approach to addressing issues of social, economic and cultural development specific to the Syrian context. The aim is to develop a programme with the necessary critical mass to serve as a model for wider sector reform. AKDN will test models of public-private partnership that enhance quality in the provision of social services and augment the capacity of the public sector to work with private institutions to meet the needs of a growing population.
These efforts are undertaken within a Framework for Development Cooperation Agreement, between AKDN and the Government of Syria, which was ratified by the Syrian Parliament in 2002.
Economic Development Activities in Syria
Syria’s primary economic challenge is unemployment, which has been increasing at a rate faster than GDP growth. Economic policies based on the state’s responsibility to ensure full employment contrast with the increasing demands of a free market economy and attempts to deregulate. As a result, changes on the ground remain difficult despite the government’s commitment to expand foreign investment and increase the pace of economic liberalization.
One of the most difficult changes required to transform a state-run, command economy into a vibrant economic structure characterized by private enterprise, is to catalyze entrepreneurship by drawing on the creative potential of an educated labour force bolstered by enabling structures such as access to finance and business development services. To assist in building this human resource base, AKDN has initiated a credit and business advisory services programme in Hama, Lattakia, Aleppo, Tartous, Damascus, and Sweida, serving both rural and urban populations.
Building Institutions
A national Microfinance Institution, the first of its kind in Syria and the region, intended to scale up AKDN’s current microcredit programmes, is under discussion with the Syrian government. Given broad agreement about the critical role of credit and business advisory services in creating wealth and stimulating economic development, the AKDN is working closely with the Government to develop the necessary institutional and legal framework enabling the establishment of a microfinance institution within the country.
One of the sectors with significant potential for employment generation, and which is expected to benefit from credit and business advisory services, is cultural tourism. Syria has yet to capitalize on its rich and diverse history and vast cultural resource for tourism development. Building on its international experience in the leisure industry, especially as a key strategy for economic development, AKDN is exploring several opportunities to develop cultural assets in collaboration with the Syrian Ministries of Culture and Tourism and the Governorates of Damascus and Aleppo.
Microfinance
Microcredit enables communities to access funds to help them obtain a better quality of life and become self reliant. Microcredit programmes and institutions have become increasingly important in achieving poverty reduction and small enterprise development. Although, initially, the impact of microcredit is not easily seen, the programme encourages individuals to build their incomes while simultaneously helping the community through job creation and greater economic autonomy. AKAM began operations in the Provinces of Tartous, Lattakia, Hama and Aleppo with the expectation of expanding to other areas in Syria e.g Damascus and Sweida. The goal is to break barriers to credit and provide access to those who otherwise would be unable to obtain loans. The microfinance programme is community based and tailors its approach to the needs of individual communities. A key objective of AKAM in Syria is to achieve sustainability, meaning, full cost recovery, to ensure the longevity of the programme and viability of its projects.
Along with financal provision, AKAM offers business advisory services. The programme provides intensive training courses to community members for preparing business plans and other services as needed. Building these skills complements the development of fiscally sound businesses and small enterprises, ultimately fostering entrepreneurship and self reliance. AKAM contributes to the regeneration of the local economy by facilitating sustainable enterprise development. The Agency seeks to finance a variety of businesses, particularly those that have a beneficial impact on surrounding communities or spur job creation. AKAM also strives to enhance fiscal responsibility and business acumen amongst local entrepreneurs. In the long term, AKDN hopes that the activities of AKAM will help mitigate the impact of unemployment and will work with local producers to reach new markets inside and outside Syria .
AKAM reached self sustainability in early 2004. Eventually, AKAM will reach additional areas within Syria , as well as serve as a model for the rest of the region.
AKAM uses a participatory approach with the community, working with local people in all facets of a project’s activities. Potential borrowers are allowed to submit applications for either individual or group loans and can request one of two types of loans: agricultural (seasonal) or commercial (monthly installments). Within the last year, the programme has also provided mortgage finance and loans for health and educational purposes.
An Area Development Approach
The Aga Khan Agency for Microfinance is an important component of the integrated development approach of the Aga Khan Development Network and complements other development activities. In the District of Haffeh, AKAM collaborates with the Ministry of Health’s Healthy Village Programme by providing loans to Village Development Committees.
AKAM is also working with the Government and various Ministries as well as other NGOs and groups, such as the International Center for Agricultural Research in the Dry Areas (ICARDA) and the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), to ensure that the organizations complement each other and do not duplicate efforts. Within AKDN, AKAM is working with various agencies, in particular the Rural Support Programme, enabling local farmers to improve their productivity and adopt new and more efficient agricultural practices. Projects of the Network are complementary in nature and designed to improve the lives of people by increasing opportunities and encouraging self reliance.
AKDN agencies in the World:
AKA Aga Khan Academies
AKAM Aga Khan Agency for Microfinance
AKES Aga Khan Education Services
AKF Aga Khan Foundation
AKFED Aga Khan Fund for Economic Development
AKHS Aga Khan Health Services
AKPBS Aga Khan Planning and Building Services
AKTC Aga Khan Trust for Culture
AKU Aga Khan University
FOCUS Focus Humanitarian Assistance
UCA University of Central Asia


Source: http://www.akdn.org
Photo Credit : AK Foundation.