p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 10, October 2025 http://jist.publikasiindonesia.id/
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4706
Rural Industries and Their Role in the Development of Rural
Areas and Afghanistan's National Economy
Fayaz Gul Mazloum Yar
Senior Teaching Assistant at the University of Nangarahr
Email: [email protected]
*Correspondence
ABSTRACT
Keywords: rural
industries, economic
development,
Afghanistan, employment,
poverty.
This study explores the role of rural industries in addressing
these issues by examining their potential to improve
economic conditions in rural areas and their contribution to
the national economy. This study aims to examine the role
of rural industries in the development of rural areas and their
impact on Afghanistan's national economy. Additionally, it
seeks to identify the challenges and opportunities for
developing these industries and propose strategies for
improving their current state. In this study, I aim to address
the following questions: What role do rural industries play
in the economic development of rural areas in Afghanistan?
What are the major challenges to the development of rural
industries in Afghanistan? And how can the potential of rural
industries be harnessed to strengthen the national economy?
This review study utilizes both analytical and descriptive
approaches and relies on credible scientific sources and field
data. The information collected includes academic articles,
government reports, and statistical data related to rural
industries in Afghanistan. Data analysis is conducted
descriptively and analytically, focusing on the economic,
social, and environmental impacts of rural industries. The
findings indicate that the development of rural industries can
significantly improve the economy of Afghanistan's rural
areas. These industries, by creating employment
opportunities, increasing income, and reducing poverty, play
a key role in strengthening the national economy.
Introduction
One of the fundamental policies of the Afghan government in rural development is
diversifying the rural economy, preventing uncontrolled migration from rural areas to
urban centers, and reducing spatial inequalities between urban and rural areas. These
overarching goals are framed within various programs and plans and are being
implemented across the country, particularly in rural areas. A group of rural development
researchers has discussed rural industrialization as a cornerstone of future development
strategies, arguing that rural industrialization within the framework of a comprehensive
Vol. 5, No. 10, October 2025 http://jist.publikasiindonesia.id/
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4706
Rural Industries and Their Role in the Development of Rural
Areas and Afghanistan's National Economy
Fayaz Gul Mazloum Yar
Senior Teaching Assistant at the University of Nangarahr
Email: [email protected]
*Correspondence
ABSTRACT
Keywords: rural
industries, economic
development,
Afghanistan, employment,
poverty.
This study explores the role of rural industries in addressing
these issues by examining their potential to improve
economic conditions in rural areas and their contribution to
the national economy. This study aims to examine the role
of rural industries in the development of rural areas and their
impact on Afghanistan's national economy. Additionally, it
seeks to identify the challenges and opportunities for
developing these industries and propose strategies for
improving their current state. In this study, I aim to address
the following questions: What role do rural industries play
in the economic development of rural areas in Afghanistan?
What are the major challenges to the development of rural
industries in Afghanistan? And how can the potential of rural
industries be harnessed to strengthen the national economy?
This review study utilizes both analytical and descriptive
approaches and relies on credible scientific sources and field
data. The information collected includes academic articles,
government reports, and statistical data related to rural
industries in Afghanistan. Data analysis is conducted
descriptively and analytically, focusing on the economic,
social, and environmental impacts of rural industries. The
findings indicate that the development of rural industries can
significantly improve the economy of Afghanistan's rural
areas. These industries, by creating employment
opportunities, increasing income, and reducing poverty, play
a key role in strengthening the national economy.
Introduction
One of the fundamental policies of the Afghan government in rural development is
diversifying the rural economy, preventing uncontrolled migration from rural areas to
urban centers, and reducing spatial inequalities between urban and rural areas. These
overarching goals are framed within various programs and plans and are being
implemented across the country, particularly in rural areas. A group of rural development
researchers has discussed rural industrialization as a cornerstone of future development
strategies, arguing that rural industrialization within the framework of a comprehensive
Rural Industries and Their Role in the Development of Rural Areas and Afghanistan's
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4707
national plan, as well as the expansion of exports to balance trade payments, is essential
for achieving three main objectives: increasing per capita income, reducing
unemployment, and mitigating regional disparities.
In the past two decades, the establishment of industries in rural areas in the form
of industrial estates and zones has become a priority for policymakers. (Li et al., 2022).
Rural industries, due to their role in creating jobs, increasing income, and reducing
poverty in rural communities, especially in regions dominated by agricultural economies,
hold significant importance. The economic and social disparities between urban and rural
communities, including income differences and living standards, have prompted planners
to adopt new rural development strategies, particularly focusing on rural industrialization.
Therefore, attention should be given to diversifying the rural economy and enhancing its
efficiency through the creation of various economic activities, particularly by
industrializing rural areas. (Hand et al., 2023). One of the key strategies for improving
employment, raising income levels, and ultimately preventing rural migration to urban
areas is the industrialization of rural regions. Since rural industries complement the
agricultural and livestock sectors, this study initially discusses the importance of rural
industries and defines these industries, followed by an examination of their
characteristics. After classifying them, the study explores the methods of development
and support for these industries, as well as the challenges associated with their
establishment. (Ao et al., 2021).
The theory of rural industrialization, as a catalyst for job creation and income
generation, is considered a potential solution to the problem of rural poverty. According
to this perspective, rural industrialization and the expansion of non-agricultural activities
are crucial for improving welfare and providing essential goods and services to rural
households. The impact of industries in rural areas not only fosters a vibrant rural
economy but also has a multiplier effect, as experiences in several countries show.
Structural changes brought about by industrialization not only contribute valuable
economic benefits to rural areas but also lead to a self-sustaining economy. Thus,
industrialization can play a vital role in rural development by increasing rural production,
creating employment opportunities, meeting basic needs, and establishing linkages with
other economic sectors. (Han et al., 2023; Yar & Shaheedzooy, 2024).
The concept of rural industrial zones emerged in the late 19th century in
industrialized countries as a means to promote the planning and management of rural
industrial development. A simple definition of a rural industrial zone is a large area
divided among various simultaneous industries that share infrastructure and are located
close to one another. Rural industrial zones are designated areas for industrial activities
that are equipped with essential infrastructure such as roads, power, and other services to
facilitate the growth of rural industries. The reasons for establishing rural industrial zones
in many developing countries include promoting rural economic development by
accelerating economic growth, creating job opportunities in rural areas, decentralizing
industry, and ensuring the equitable distribution of the benefits of industrialization
(Voumik & Sultana, 2022). Rural industries play a crucial role in improving the economic
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4707
national plan, as well as the expansion of exports to balance trade payments, is essential
for achieving three main objectives: increasing per capita income, reducing
unemployment, and mitigating regional disparities.
In the past two decades, the establishment of industries in rural areas in the form
of industrial estates and zones has become a priority for policymakers. (Li et al., 2022).
Rural industries, due to their role in creating jobs, increasing income, and reducing
poverty in rural communities, especially in regions dominated by agricultural economies,
hold significant importance. The economic and social disparities between urban and rural
communities, including income differences and living standards, have prompted planners
to adopt new rural development strategies, particularly focusing on rural industrialization.
Therefore, attention should be given to diversifying the rural economy and enhancing its
efficiency through the creation of various economic activities, particularly by
industrializing rural areas. (Hand et al., 2023). One of the key strategies for improving
employment, raising income levels, and ultimately preventing rural migration to urban
areas is the industrialization of rural regions. Since rural industries complement the
agricultural and livestock sectors, this study initially discusses the importance of rural
industries and defines these industries, followed by an examination of their
characteristics. After classifying them, the study explores the methods of development
and support for these industries, as well as the challenges associated with their
establishment. (Ao et al., 2021).
The theory of rural industrialization, as a catalyst for job creation and income
generation, is considered a potential solution to the problem of rural poverty. According
to this perspective, rural industrialization and the expansion of non-agricultural activities
are crucial for improving welfare and providing essential goods and services to rural
households. The impact of industries in rural areas not only fosters a vibrant rural
economy but also has a multiplier effect, as experiences in several countries show.
Structural changes brought about by industrialization not only contribute valuable
economic benefits to rural areas but also lead to a self-sustaining economy. Thus,
industrialization can play a vital role in rural development by increasing rural production,
creating employment opportunities, meeting basic needs, and establishing linkages with
other economic sectors. (Han et al., 2023; Yar & Shaheedzooy, 2024).
The concept of rural industrial zones emerged in the late 19th century in
industrialized countries as a means to promote the planning and management of rural
industrial development. A simple definition of a rural industrial zone is a large area
divided among various simultaneous industries that share infrastructure and are located
close to one another. Rural industrial zones are designated areas for industrial activities
that are equipped with essential infrastructure such as roads, power, and other services to
facilitate the growth of rural industries. The reasons for establishing rural industrial zones
in many developing countries include promoting rural economic development by
accelerating economic growth, creating job opportunities in rural areas, decentralizing
industry, and ensuring the equitable distribution of the benefits of industrialization
(Voumik & Sultana, 2022). Rural industries play a crucial role in improving the economic
Fayaz Gul Mazloum Yar
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4708
conditions of rural communities and in promoting sustainable development. Afghanistan,
with a significant rural population and an economy reliant on agriculture and livestock,
possesses considerable potential for the development of rural industries. These industries,
which include local production, handicrafts, and the processing of agricultural and
livestock products, leverage local resources to create employment and raise incomes in
rural areas. They can help reduce rural-to-urban migration while also contributing to the
national economy by boosting production and exports (Aragie et al., 2018). However,
rural industries in Afghanistan face numerous challenges, including inadequate
infrastructure, limited access to domestic and international markets, insufficient
investment, and a lack of technical expertise. Addressing these challenges and identifying
practical solutions to strengthen and develop these industries can make a significant
impact on the economic well-being of rural populations and foster broader economic
growth in the country.
Objective of the Study: The objective of this study is to examine the role of rural
industries in the development of rural areas and their impact on Afghanistan's national
economy. The study also seeks to identify the challenges and opportunities in the
development of these industries and propose strategies to enhance the current state of
rural industries.
Method
This study adopts an analytical and descriptive approach, utilizing both primary and
secondary data. The data were collected from a wide range of academic articles,
government reports, and statistical databases. Field data were also gathered through
interviews and surveys with rural industry stakeholders across different provinces.
Descriptive analysis was applied to identify patterns and trends in rural industries' impact
on employment, income generation, and rural-to-urban migration.
1. Data Collection: The required data are gathered from reputable academic sources,
research articles, government reports, and statistics related to rural industries in
Afghanistan. These data include economic, social, and environmental information
concerning rural industries and their impact on rural communities.
2. Data Analysis: The collected data are analyzed through descriptive analytical methods.
This analysis focuses on identifying existing patterns and trends related to rural
industries and their influence on the economic and social development of rural areas.
3. Challenges and Opportunities Assessment: Based on the available data, the main
challenges hindering the development of rural industries in Afghanistan are identified
and discussed. Additionally, opportunities for strengthening these industries and their
role in enhancing the national economy are explored.
4. Recommendations: The findings of this research lead to suggestions for improving the
situation of rural industries and strengthening their role in Afghanistan’s economic and
social development. The results can assist policymakers and rural development
planners in formulating more effective strategies for creating and enhancing rural
industries.
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4708
conditions of rural communities and in promoting sustainable development. Afghanistan,
with a significant rural population and an economy reliant on agriculture and livestock,
possesses considerable potential for the development of rural industries. These industries,
which include local production, handicrafts, and the processing of agricultural and
livestock products, leverage local resources to create employment and raise incomes in
rural areas. They can help reduce rural-to-urban migration while also contributing to the
national economy by boosting production and exports (Aragie et al., 2018). However,
rural industries in Afghanistan face numerous challenges, including inadequate
infrastructure, limited access to domestic and international markets, insufficient
investment, and a lack of technical expertise. Addressing these challenges and identifying
practical solutions to strengthen and develop these industries can make a significant
impact on the economic well-being of rural populations and foster broader economic
growth in the country.
Objective of the Study: The objective of this study is to examine the role of rural
industries in the development of rural areas and their impact on Afghanistan's national
economy. The study also seeks to identify the challenges and opportunities in the
development of these industries and propose strategies to enhance the current state of
rural industries.
Method
This study adopts an analytical and descriptive approach, utilizing both primary and
secondary data. The data were collected from a wide range of academic articles,
government reports, and statistical databases. Field data were also gathered through
interviews and surveys with rural industry stakeholders across different provinces.
Descriptive analysis was applied to identify patterns and trends in rural industries' impact
on employment, income generation, and rural-to-urban migration.
1. Data Collection: The required data are gathered from reputable academic sources,
research articles, government reports, and statistics related to rural industries in
Afghanistan. These data include economic, social, and environmental information
concerning rural industries and their impact on rural communities.
2. Data Analysis: The collected data are analyzed through descriptive analytical methods.
This analysis focuses on identifying existing patterns and trends related to rural
industries and their influence on the economic and social development of rural areas.
3. Challenges and Opportunities Assessment: Based on the available data, the main
challenges hindering the development of rural industries in Afghanistan are identified
and discussed. Additionally, opportunities for strengthening these industries and their
role in enhancing the national economy are explored.
4. Recommendations: The findings of this research lead to suggestions for improving the
situation of rural industries and strengthening their role in Afghanistan’s economic and
social development. The results can assist policymakers and rural development
planners in formulating more effective strategies for creating and enhancing rural
industries.
Rural Industries and Their Role in the Development of Rural Areas and Afghanistan's
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4709
Results and Discussion
Table 1
Variables and Indicators
Variable Indicator Dimensio
n
Increase in
income
opportunities.
Creation of rural industries, increased private
sector investment, easier sale of livestock and
agricultural products, increased productivity
(through processing and added value)
Economic
Employment Creation of new job opportunities, employment for
the unemployed, job security
Investment in
infrastructure
Development of inter-village transportation
networks, roadside facilities, improvement of rural
services (water, electricity, gas), development of
service facilities (mechanics, electricity, etc.)
Cost of living Increased ability of households to cover living
expenses, improved housing affordability, better
purchasing power for residents
Migration Reduction in rural-urban migration, attraction of
non-locals to rural areas
Social
Participation
and
cooperation
Increased interest in working in rural industries,
creation of new local institutions, improved
cooperation with government agencies
Security and
social welfare
Reduction in crime, improved public safety,
increased social welfare
Physical
changes
Improved housing quality, new construction on the
outskirts, improved rural architecture
Physical
Access quality Improvement of village pathways, development of
road infrastructure
Environmental
degradation
Increased unplanned construction, damage to
natural beauty, destruction of vegetation due to
industry
Environm
ental
Pollution Increased water pollution, poor waste disposal, bad
odors from industries, noise pollution
Land resources Shortage of drinking water, increased pressure on
natural resources, uncontrolled construction,
reduction of arable land, changes in land use
Importance of Rural Industries
Rural industrialization, as a process that provides the means for diversifying the
rural economy, is an economic approach that, through job creation, income growth, and
more balanced income distribution, leads to an improvement in the living standards of
rural communities. Consequently, it paves the way for achieving sustainable rural
development. The establishment of industries has contributed to the economic, social, and
environmental reconstruction of rural areas. Alongside other economic and social sectors,
the industry must be recognized as the most important component of any comprehensive
rural development program (Hu et al., 2023; Yar & Shaheedzooy, 2024). The nature and
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4709
Results and Discussion
Table 1
Variables and Indicators
Variable Indicator Dimensio
n
Increase in
income
opportunities.
Creation of rural industries, increased private
sector investment, easier sale of livestock and
agricultural products, increased productivity
(through processing and added value)
Economic
Employment Creation of new job opportunities, employment for
the unemployed, job security
Investment in
infrastructure
Development of inter-village transportation
networks, roadside facilities, improvement of rural
services (water, electricity, gas), development of
service facilities (mechanics, electricity, etc.)
Cost of living Increased ability of households to cover living
expenses, improved housing affordability, better
purchasing power for residents
Migration Reduction in rural-urban migration, attraction of
non-locals to rural areas
Social
Participation
and
cooperation
Increased interest in working in rural industries,
creation of new local institutions, improved
cooperation with government agencies
Security and
social welfare
Reduction in crime, improved public safety,
increased social welfare
Physical
changes
Improved housing quality, new construction on the
outskirts, improved rural architecture
Physical
Access quality Improvement of village pathways, development of
road infrastructure
Environmental
degradation
Increased unplanned construction, damage to
natural beauty, destruction of vegetation due to
industry
Environm
ental
Pollution Increased water pollution, poor waste disposal, bad
odors from industries, noise pollution
Land resources Shortage of drinking water, increased pressure on
natural resources, uncontrolled construction,
reduction of arable land, changes in land use
Importance of Rural Industries
Rural industrialization, as a process that provides the means for diversifying the
rural economy, is an economic approach that, through job creation, income growth, and
more balanced income distribution, leads to an improvement in the living standards of
rural communities. Consequently, it paves the way for achieving sustainable rural
development. The establishment of industries has contributed to the economic, social, and
environmental reconstruction of rural areas. Alongside other economic and social sectors,
the industry must be recognized as the most important component of any comprehensive
rural development program (Hu et al., 2023; Yar & Shaheedzooy, 2024). The nature and
Fayaz Gul Mazloum Yar
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4710
pattern of industrialization—whether in small-scale and handicraft industries or large-
scale industries—depend on raw materials and human resources at the local and regional
levels. Industrialization and the optimal planning of industries in rural areas act as a
catalyst for sustainable development and are considered the final solution to rural poverty,
and unemployment, and a relief factor for deprived rural areas (Woodhill et al., 2022).
Small and medium-sized industries play a very important role in creating employment for
low-skilled workers and even low-income rural women. Moreover, due to their reliance
on local resources and labor-intensive nature, small industries, given the abundance of
labor and the need for simple technologies, are considered the most appropriate industrial
option. Therefore, considering their employment-generating capacity and the widespread
unemployment in these areas, rural industries are one of the main pillars of development
(Hu et al., 2023). the establishment and development of industries in rural areas are
important for the following reasons:
1. Job creation for surplus labor in agriculture
2. Support for agriculture and increased income for agricultural workers
3. Conversion of agricultural products into necessary goods and services, preventing the
excessive outflow of foreign currency
4. Reliance of rural industries on domestic resources and the optimal use of the potentials
in these areas
5. Contribution to national industrial production and moving toward economic
independence
6. Creation of a new quality of life to foster human growth and development
7. Promoting rural growth and development, creating balance and equity between urban
and rural areas
8. Expansion of decentralization policies in industrial activities between urban and rural
areas
9. Fair distribution of income between urban and rural areas, helping achieve social
justice
10. Diversification of the rural economy by activating the industrial sector, which
increases rural income beyond agriculture and attracts labor into the services and
distribution sectors
11. Reduction of excessive rural-to-urban migration, creating incentives for reverse
migration, or at least stabilizing rural settlement (Liu et al., 2020; Wang et al., 2024)
Rural Industries in Developing Countries
In most developing countries, creating employment has been recognized as a
primary goal of rural industrialization. This may be because rural areas in these countries
are often much more backward than urban areas and face severe problems of
unemployment and underemployment. Since large, capital-intensive industries located in
major urban centers absorb only a small fraction of the rapidly growing labor force, and
subsistence agriculture cannot support even the current rural population, policies and
programs for rural industrialization have been devised to create non-agricultural
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4710
pattern of industrialization—whether in small-scale and handicraft industries or large-
scale industries—depend on raw materials and human resources at the local and regional
levels. Industrialization and the optimal planning of industries in rural areas act as a
catalyst for sustainable development and are considered the final solution to rural poverty,
and unemployment, and a relief factor for deprived rural areas (Woodhill et al., 2022).
Small and medium-sized industries play a very important role in creating employment for
low-skilled workers and even low-income rural women. Moreover, due to their reliance
on local resources and labor-intensive nature, small industries, given the abundance of
labor and the need for simple technologies, are considered the most appropriate industrial
option. Therefore, considering their employment-generating capacity and the widespread
unemployment in these areas, rural industries are one of the main pillars of development
(Hu et al., 2023). the establishment and development of industries in rural areas are
important for the following reasons:
1. Job creation for surplus labor in agriculture
2. Support for agriculture and increased income for agricultural workers
3. Conversion of agricultural products into necessary goods and services, preventing the
excessive outflow of foreign currency
4. Reliance of rural industries on domestic resources and the optimal use of the potentials
in these areas
5. Contribution to national industrial production and moving toward economic
independence
6. Creation of a new quality of life to foster human growth and development
7. Promoting rural growth and development, creating balance and equity between urban
and rural areas
8. Expansion of decentralization policies in industrial activities between urban and rural
areas
9. Fair distribution of income between urban and rural areas, helping achieve social
justice
10. Diversification of the rural economy by activating the industrial sector, which
increases rural income beyond agriculture and attracts labor into the services and
distribution sectors
11. Reduction of excessive rural-to-urban migration, creating incentives for reverse
migration, or at least stabilizing rural settlement (Liu et al., 2020; Wang et al., 2024)
Rural Industries in Developing Countries
In most developing countries, creating employment has been recognized as a
primary goal of rural industrialization. This may be because rural areas in these countries
are often much more backward than urban areas and face severe problems of
unemployment and underemployment. Since large, capital-intensive industries located in
major urban centers absorb only a small fraction of the rapidly growing labor force, and
subsistence agriculture cannot support even the current rural population, policies and
programs for rural industrialization have been devised to create non-agricultural
Rural Industries and Their Role in the Development of Rural Areas and Afghanistan's
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4711
employment in rural areas (Xiao et al., 2022). Another reason for emphasizing rural
industrialization in most developing countries is to diversify the rural economy and, in
turn, help modernize agriculture and raise the income levels of the people. The traditional
rural industries are closely linked with agriculture, using rural products as raw materials
and selling their goods mainly in rural areas. Moreover, creating a strong and vibrant rural
industry can foster close links between rural and urban areas, by acting as subcontractors
for larger urban industries. This can reduce the gap between rural and urban areas, not
only in terms of income and benefits but also in technology (Deng et al., 2023). Rural
industries do not weaken urban industries but play a complementary role that strengthens
them. Compared to large industries, rural industries have clear advantages in rural areas,
providing essential opportunities for establishing a basic industrial foundation in these
areas. Another key role of rural industries is to reduce spatial inequalities in socio-
economic development. Developing countries have mostly inherited a dual economic
structure from the colonial period, which remains largely unchanged. This duality is most
evident in the spatial distribution of resources, with a rural-urban divide that favors urban
areas. Rural industrialization can be a key tool for transforming rural areas and reducing
the widening gap between rural and urban regions (Fu et al., 2024). The rural-urban divide
is a major driver of rural-to-urban migration. While migration is not inherently
undesirable as a mechanism for balancing the labor market, in many cases, migration to
urban areas in developing countries occurs out of desperation and poverty. People leave
rural areas because there is nothing to tie them to the land. In many cases, the result of
this migration is the transfer of poverty and unemployment from rural areas to urban
centers. Rural industrialization can partially halt this unhealthy trend (Chen et al., 2022).
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4711
employment in rural areas (Xiao et al., 2022). Another reason for emphasizing rural
industrialization in most developing countries is to diversify the rural economy and, in
turn, help modernize agriculture and raise the income levels of the people. The traditional
rural industries are closely linked with agriculture, using rural products as raw materials
and selling their goods mainly in rural areas. Moreover, creating a strong and vibrant rural
industry can foster close links between rural and urban areas, by acting as subcontractors
for larger urban industries. This can reduce the gap between rural and urban areas, not
only in terms of income and benefits but also in technology (Deng et al., 2023). Rural
industries do not weaken urban industries but play a complementary role that strengthens
them. Compared to large industries, rural industries have clear advantages in rural areas,
providing essential opportunities for establishing a basic industrial foundation in these
areas. Another key role of rural industries is to reduce spatial inequalities in socio-
economic development. Developing countries have mostly inherited a dual economic
structure from the colonial period, which remains largely unchanged. This duality is most
evident in the spatial distribution of resources, with a rural-urban divide that favors urban
areas. Rural industrialization can be a key tool for transforming rural areas and reducing
the widening gap between rural and urban regions (Fu et al., 2024). The rural-urban divide
is a major driver of rural-to-urban migration. While migration is not inherently
undesirable as a mechanism for balancing the labor market, in many cases, migration to
urban areas in developing countries occurs out of desperation and poverty. People leave
rural areas because there is nothing to tie them to the land. In many cases, the result of
this migration is the transfer of poverty and unemployment from rural areas to urban
centers. Rural industrialization can partially halt this unhealthy trend (Chen et al., 2022).
Fayaz Gul Mazloum Yar
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4712
Figure 1
Rural Industries and Their Role in the Development of Rural Areas
Experiences in Developing Countries
The experience of some developing countries in expanding rural industries has
shown success in the overall rural development process. Seventy years ago, Mahatma
Gandhi in India saw the extensive development of cities as a clear danger, believing that
the industrial growth of cities would eventually destroy villages. He, along with other
thinkers like Julius Nyerere in Tanzania and Mao Zedong in China, advocated models of
industrial development that relied on local capabilities and raw materials. Although this
idea was, for some time, overshadowed by the theory of large-scale industrial
development, it has recently regained recognition among researchers and scholars.
(Devaraj & Patel, 2020). The renowned sociologist Paul Harrison emphasizes that
focusing on rural development is a key part of comprehensive and sustainable
development, not only because rural areas are the source of urban problems such as
crippling migration but also because they offer surplus labor and seasonal unemployment
that can be addressed through the redevelopment of traditional technologies. Many
development experts suggest that wherever local raw materials are available, they should
be utilized on-site, and large-scale industries should not replace small, appropriate
technologies unless necessary. Each small, self-sufficient rural community—whether a
village or nomadic group—should be able to meet its basic needs, such as food and
building materials, as part of the primary development model (Yar & Hajinejad, 2023).
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4712
Figure 1
Rural Industries and Their Role in the Development of Rural Areas
Experiences in Developing Countries
The experience of some developing countries in expanding rural industries has
shown success in the overall rural development process. Seventy years ago, Mahatma
Gandhi in India saw the extensive development of cities as a clear danger, believing that
the industrial growth of cities would eventually destroy villages. He, along with other
thinkers like Julius Nyerere in Tanzania and Mao Zedong in China, advocated models of
industrial development that relied on local capabilities and raw materials. Although this
idea was, for some time, overshadowed by the theory of large-scale industrial
development, it has recently regained recognition among researchers and scholars.
(Devaraj & Patel, 2020). The renowned sociologist Paul Harrison emphasizes that
focusing on rural development is a key part of comprehensive and sustainable
development, not only because rural areas are the source of urban problems such as
crippling migration but also because they offer surplus labor and seasonal unemployment
that can be addressed through the redevelopment of traditional technologies. Many
development experts suggest that wherever local raw materials are available, they should
be utilized on-site, and large-scale industries should not replace small, appropriate
technologies unless necessary. Each small, self-sufficient rural community—whether a
village or nomadic group—should be able to meet its basic needs, such as food and
building materials, as part of the primary development model (Yar & Hajinejad, 2023).
Rural Industries and Their Role in the Development of Rural Areas and Afghanistan's
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4713
India’s Experience: In 1961, India’s Prime Minister Jawaharlal Nehru invited Ernst
Schumacher, a renowned industrial expert and then the economic advisor to the National
Coal Board of Britain, to tour India and provide expert advice on addressing rural areas
and non-agricultural activities. Schumacher's recommendations laid the groundwork for
further industrial development in India's rural areas. The outcome of this journey led to
the development of the "Intermediate Technology" theory, which provided a foundation
for a new industrial revolution that preserved human relationships. Schumacher believed
efforts should be made to identify and introduce non-agricultural activities in rural areas
capable of employing part of the surplus rural population. (Han et al., 2022). Intermediate
Technology is designed to bridge the gap between large, complex modern machinery and
small, simple traditional tools. This technology not only aligns with the social and cultural
fabric of each region but also adapts well to the economic conditions of developing
countries. At the time, the key question was: What would be the most appropriate
technology for rural areas in India? It was evident that a labor-intensive and efficient
technology, suitable for densely populated villages, would be the best option. Based on
the indices Schumacher provided, given the geopolitical and traditional cultural
conditions, only Intermediate Technology could meet this challenge. Later, a
development conference based on Schumacher's ideas was held, and his views on rural
development in India gained special recognition. Implementation of his proposed plans
began. (Snyder & Jeffrey, 2022). It is important to note that the concept of appropriate
technology was not Schumacher’s invention; it can be credited to Mahatma Gandhi,
whom Schumacher once referred to as the greatest economist of the century. Schumacher
studied within the framework of Gandhi's ideas but approached them more scientifically
and practically. (Yar & Hajinejad, 2023).
In Indonesia, the "Provincial Development Program" (PDP) was designed in the
mid-1970s and initiated in 1979. This program, operating in 10 of the country's 27
provinces, covered over 50% of the population and had three main objectives:
1. Developing planning capacity at the rural levels.
2. Focusing on the creation of small-scale rural industries, allowing residents to actively
participate in planning and execution.
3. Ensuring that the primary beneficiaries of the program are poor rural inhabitants (Liu
et al., 2020; Wang et al., 2024).
At its current stage, the PDP has a budget of $60 million, with $20 million provided
by the Indonesian government. The remaining $40 million was sourced from three
international aid agencies: USAID, which contributed $32 million in grants and loans for
programs in eight provinces; the International Development Association (IDA); and
Germany, both of which supported program implementation in one province each (Katz
et al., 2014). Each province under the program was allocated $6 million over four years.
One-sixth of this amount was earmarked for foreign consultants and training programs
for Indonesian workers. The rest was spent on designing and implementing small-scale
projects in areas such as rural credit, rural industries, education, and social development
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4713
India’s Experience: In 1961, India’s Prime Minister Jawaharlal Nehru invited Ernst
Schumacher, a renowned industrial expert and then the economic advisor to the National
Coal Board of Britain, to tour India and provide expert advice on addressing rural areas
and non-agricultural activities. Schumacher's recommendations laid the groundwork for
further industrial development in India's rural areas. The outcome of this journey led to
the development of the "Intermediate Technology" theory, which provided a foundation
for a new industrial revolution that preserved human relationships. Schumacher believed
efforts should be made to identify and introduce non-agricultural activities in rural areas
capable of employing part of the surplus rural population. (Han et al., 2022). Intermediate
Technology is designed to bridge the gap between large, complex modern machinery and
small, simple traditional tools. This technology not only aligns with the social and cultural
fabric of each region but also adapts well to the economic conditions of developing
countries. At the time, the key question was: What would be the most appropriate
technology for rural areas in India? It was evident that a labor-intensive and efficient
technology, suitable for densely populated villages, would be the best option. Based on
the indices Schumacher provided, given the geopolitical and traditional cultural
conditions, only Intermediate Technology could meet this challenge. Later, a
development conference based on Schumacher's ideas was held, and his views on rural
development in India gained special recognition. Implementation of his proposed plans
began. (Snyder & Jeffrey, 2022). It is important to note that the concept of appropriate
technology was not Schumacher’s invention; it can be credited to Mahatma Gandhi,
whom Schumacher once referred to as the greatest economist of the century. Schumacher
studied within the framework of Gandhi's ideas but approached them more scientifically
and practically. (Yar & Hajinejad, 2023).
In Indonesia, the "Provincial Development Program" (PDP) was designed in the
mid-1970s and initiated in 1979. This program, operating in 10 of the country's 27
provinces, covered over 50% of the population and had three main objectives:
1. Developing planning capacity at the rural levels.
2. Focusing on the creation of small-scale rural industries, allowing residents to actively
participate in planning and execution.
3. Ensuring that the primary beneficiaries of the program are poor rural inhabitants (Liu
et al., 2020; Wang et al., 2024).
At its current stage, the PDP has a budget of $60 million, with $20 million provided
by the Indonesian government. The remaining $40 million was sourced from three
international aid agencies: USAID, which contributed $32 million in grants and loans for
programs in eight provinces; the International Development Association (IDA); and
Germany, both of which supported program implementation in one province each (Katz
et al., 2014). Each province under the program was allocated $6 million over four years.
One-sixth of this amount was earmarked for foreign consultants and training programs
for Indonesian workers. The rest was spent on designing and implementing small-scale
projects in areas such as rural credit, rural industries, education, and social development
Fayaz Gul Mazloum Yar
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4714
programs. The main criteria for selecting projects were that they should target poor
farmers and yield quick returns within 12 months, so their positive impacts could be
quickly observed. Special attention was given to ensuring that local authorities and rural
populations were directly involved in the decision-making, establishment, and evaluation
of the projects. By 1991, 244 projects had been implemented in four of the ten provinces
under the program. The PDP reports indicated that each year, all projects were evaluated
by the provincial planning and budgeting offices, and USAID closely monitored the eight
provinces it financially supported. Projects deemed successful in these evaluations
received funding for an additional year, and some were even recognized as models for
other areas. In the best cases, these projects entered a credit phase, where farmers could
obtain loans to apply the techniques they had learned in the previous year (Zhao & Yao,
2022). Although the exact percentage of successful projects was not disclosed, part of the
PDP was evaluated by USAID, and a group of Indonesian researchers and administrative
officials also reviewed the program. The overall conclusion was that the PDP generally
demonstrated the Indonesian government's capacity to implement rural development
initiatives (Hedt-Gauthier et al., 2017).
In Thailand, starting in 1979, a certain percentage of the national budget was
allocated to provincial governments to enable rural councils (known as "Tambons") to
identify and implement small-scale, job-creating industrial projects. (Gupta et al., 2017).
In Kenya, David Leonard, in a study on the organizational structure of agricultural
development programs, concluded that the key element in rural organization is
communication. The era of focusing solely on agricultural development without attention
to other sectors has ended. Agricultural development must be accompanied by the
provision of small-scale technology, financial resources, and the determination of growth
dynamics through pricing and control. The central government alone cannot design and
implement regional development programs. The establishment of industries in rural areas
and the degree of progress ultimately depend on the creativity and cooperation of
individual local leaders, and regional organizations, and the integration of these with
public participation. (Gruzieva et al., 2022).
Rural Industries in Afghanistan
Rural industries in Afghanistan are recognized as one of the key pillars of the
country's economy, playing a significant role in the development of rural areas and the
national economy. These industries include a wide range of activities such as agriculture,
livestock, handicrafts, and processing industries. Given the existing potential in rural
areas, rural industries can contribute to job creation, poverty reduction, and strengthening
of the local economy (Yar & Nasih, 2024). One of the main advantages of rural industries
is job creation. In many areas, unemployment is a serious issue, and rural industries can
help improve the economic situation of families by creating new jobs. Moreover, these
industries lead to increased household income and improved living standards for rural
residents. In addition, rural industries help preserve local culture and identity.
Handicrafts, such as carpets and pottery, not only generate income but also reflect the rich
art and culture of the Afghan people. Furthermore, processing agricultural products, such
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4714
programs. The main criteria for selecting projects were that they should target poor
farmers and yield quick returns within 12 months, so their positive impacts could be
quickly observed. Special attention was given to ensuring that local authorities and rural
populations were directly involved in the decision-making, establishment, and evaluation
of the projects. By 1991, 244 projects had been implemented in four of the ten provinces
under the program. The PDP reports indicated that each year, all projects were evaluated
by the provincial planning and budgeting offices, and USAID closely monitored the eight
provinces it financially supported. Projects deemed successful in these evaluations
received funding for an additional year, and some were even recognized as models for
other areas. In the best cases, these projects entered a credit phase, where farmers could
obtain loans to apply the techniques they had learned in the previous year (Zhao & Yao,
2022). Although the exact percentage of successful projects was not disclosed, part of the
PDP was evaluated by USAID, and a group of Indonesian researchers and administrative
officials also reviewed the program. The overall conclusion was that the PDP generally
demonstrated the Indonesian government's capacity to implement rural development
initiatives (Hedt-Gauthier et al., 2017).
In Thailand, starting in 1979, a certain percentage of the national budget was
allocated to provincial governments to enable rural councils (known as "Tambons") to
identify and implement small-scale, job-creating industrial projects. (Gupta et al., 2017).
In Kenya, David Leonard, in a study on the organizational structure of agricultural
development programs, concluded that the key element in rural organization is
communication. The era of focusing solely on agricultural development without attention
to other sectors has ended. Agricultural development must be accompanied by the
provision of small-scale technology, financial resources, and the determination of growth
dynamics through pricing and control. The central government alone cannot design and
implement regional development programs. The establishment of industries in rural areas
and the degree of progress ultimately depend on the creativity and cooperation of
individual local leaders, and regional organizations, and the integration of these with
public participation. (Gruzieva et al., 2022).
Rural Industries in Afghanistan
Rural industries in Afghanistan are recognized as one of the key pillars of the
country's economy, playing a significant role in the development of rural areas and the
national economy. These industries include a wide range of activities such as agriculture,
livestock, handicrafts, and processing industries. Given the existing potential in rural
areas, rural industries can contribute to job creation, poverty reduction, and strengthening
of the local economy (Yar & Nasih, 2024). One of the main advantages of rural industries
is job creation. In many areas, unemployment is a serious issue, and rural industries can
help improve the economic situation of families by creating new jobs. Moreover, these
industries lead to increased household income and improved living standards for rural
residents. In addition, rural industries help preserve local culture and identity.
Handicrafts, such as carpets and pottery, not only generate income but also reflect the rich
art and culture of the Afghan people. Furthermore, processing agricultural products, such
Rural Industries and Their Role in the Development of Rural Areas and Afghanistan's
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4715
as making jams and pickles, helps reduce waste and increase the added value of these
products. However, rural industries also face challenges. The lack of infrastructure,
limited market access, and the need for education and empowerment are among the
barriers to the development of these industries. To overcome these challenges, investment
in infrastructure, creating facilities for market access, and holding training courses to
enhance skills are essential (Atanyan et al., 2022). Rural industries can serve as an
effective solution for the sustainable development of villages and the improvement of
Afghanistan's national economy. With the necessary support and investment in this area,
development goals and improved living conditions in rural areas can be achieved (Huang
et al., 2022). There are examples of successful rural industries in Afghanistan, whose
positive impact on the economy and society is visible:
1. Agriculture and Horticulture
Apricots and Dried Fruits: Afghanistan is known as one of the largest producers of
apricots and dried fruits in the region. Local farmers process these products and export
them to international markets, earning significant income.
2. Handicrafts
Carpet Weaving: Afghan carpets are famous for their quality and unique designs.
Many families are engaged in carpet weaving, and this industry not only generates income
but also preserves local culture and art.
3. Dairy Production
Dairy Products: Some villages have established small dairy production workshops,
such as making yogurt and cheese, which have found their way to local and even
international markets.
4. Processing Industries
Small Factories: The establishment of small factories for processing agricultural
products, such as producing jams, pickles, and juices, has helped improve farmers'
incomes and reduce waste.
5. Local Projects
Development Programs: Some non-governmental and international organizations
have implemented projects to strengthen rural industries, which have contributed to skill
enhancement and market access (Yar & Yasouri, 2024; YAR et al., 2024).
These examples show that with appropriate support and investment in rural industries,
sustainable development, and economic improvement in Afghanistan can be achieved.
Rural Industries and Their Role in National Economic Independence
Rural industries in Afghanistan play a vital role in the country's economic
independence. These industries encompass a variety of activities such as agriculture,
livestock farming, handicrafts, and processing industries. They are considered the
backbone of the rural and national economy. Given Afghanistan's rich natural resources
and youthful labor force, rural industries can help produce local goods and services,
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4715
as making jams and pickles, helps reduce waste and increase the added value of these
products. However, rural industries also face challenges. The lack of infrastructure,
limited market access, and the need for education and empowerment are among the
barriers to the development of these industries. To overcome these challenges, investment
in infrastructure, creating facilities for market access, and holding training courses to
enhance skills are essential (Atanyan et al., 2022). Rural industries can serve as an
effective solution for the sustainable development of villages and the improvement of
Afghanistan's national economy. With the necessary support and investment in this area,
development goals and improved living conditions in rural areas can be achieved (Huang
et al., 2022). There are examples of successful rural industries in Afghanistan, whose
positive impact on the economy and society is visible:
1. Agriculture and Horticulture
Apricots and Dried Fruits: Afghanistan is known as one of the largest producers of
apricots and dried fruits in the region. Local farmers process these products and export
them to international markets, earning significant income.
2. Handicrafts
Carpet Weaving: Afghan carpets are famous for their quality and unique designs.
Many families are engaged in carpet weaving, and this industry not only generates income
but also preserves local culture and art.
3. Dairy Production
Dairy Products: Some villages have established small dairy production workshops,
such as making yogurt and cheese, which have found their way to local and even
international markets.
4. Processing Industries
Small Factories: The establishment of small factories for processing agricultural
products, such as producing jams, pickles, and juices, has helped improve farmers'
incomes and reduce waste.
5. Local Projects
Development Programs: Some non-governmental and international organizations
have implemented projects to strengthen rural industries, which have contributed to skill
enhancement and market access (Yar & Yasouri, 2024; YAR et al., 2024).
These examples show that with appropriate support and investment in rural industries,
sustainable development, and economic improvement in Afghanistan can be achieved.
Rural Industries and Their Role in National Economic Independence
Rural industries in Afghanistan play a vital role in the country's economic
independence. These industries encompass a variety of activities such as agriculture,
livestock farming, handicrafts, and processing industries. They are considered the
backbone of the rural and national economy. Given Afghanistan's rich natural resources
and youthful labor force, rural industries can help produce local goods and services,
Fayaz Gul Mazloum Yar
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4716
reducing dependence on imports. One of the crucial aspects of economic independence is
the creation of sustainable employment (Wang et al., 2019).
Rural industries can generate new job opportunities, reducing unemployment and
improving household livelihoods. This, in turn, can lead to poverty reduction and an
enhanced quality of life in rural areas. As income increases and basic needs are met,
families can achieve economic self-reliance. Additionally, producing local goods can
strengthen domestic markets. Increased consumption of locally produced items decreases
demand for imported goods, which helps strengthen the national economy and fosters
greater self-sufficiency. Moreover, rural industries can preserve and promote local culture
and national identity, as handmade and locally produced goods reflect the cultural
heritage and skills of the people. However, to achieve these goals, investment in
infrastructure, workforce education, and access to local and international markets are
essential.
Challenges such as lack of capital, inadequate infrastructure, and limited access to
modern technologies also need to be addressed. With the necessary support and proper
planning, rural industries can act as a driving force for Afghanistan's national economic
independence and contribute to sustainable development in the country. Currently,
agriculture remains the primary activity of Afghanistan’s rural communities. However,
due to the lack of water resources management, agricultural development is constrained
until modern water extraction technologies are implemented. Meanwhile, the increasing
population in rural areas is such that the available resources and activities cannot sustain
the excess population. Therefore, rural development efforts must retain this workforce
within the community, requiring the provision of adequate facilities. (Yar & Yasouri,
2024; YAR et al., 2024). Rural development is currently caught in a cyclical process. On
one hand, the expansion of industrial activities in rural areas is limited due to a lack of
sufficient services and facilities. On the other hand, agricultural production and the
development of this sector are dependent on retaining rural populations. Introducing non-
agricultural activities, such as industry, can help control migration. To achieve national
independence, policies must focus on import substitution and increasing industrial and
mineral exports. In the long term, the agricultural sector will face challenges due to
limited water and land resources and widespread erosion. Moreover, excessive growth in
the services sector is not advisable due to its inflationary effects. Therefore, the expansion
and development of industries and mining are essential for attracting new labor and
creating employment opportunities. (Zhao et al., 2022).
Afghanistan's industrial development in recent years has not only been
uncoordinated but has also led to increased dependence on foreign countries. The
structural changes needed for development, particularly in intermediary and capital goods
industries, have not been achieved due to a reliance on short-term import-substitution
strategies. Investment in exploration, human capital development, and infrastructure is
necessary for these industries to thrive. In the early stages of industrial development, the
focus should be on producing goods domestically at a lower cost than importing them.
The small scale and adaptability of rural industries make them a suitable platform for
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4716
reducing dependence on imports. One of the crucial aspects of economic independence is
the creation of sustainable employment (Wang et al., 2019).
Rural industries can generate new job opportunities, reducing unemployment and
improving household livelihoods. This, in turn, can lead to poverty reduction and an
enhanced quality of life in rural areas. As income increases and basic needs are met,
families can achieve economic self-reliance. Additionally, producing local goods can
strengthen domestic markets. Increased consumption of locally produced items decreases
demand for imported goods, which helps strengthen the national economy and fosters
greater self-sufficiency. Moreover, rural industries can preserve and promote local culture
and national identity, as handmade and locally produced goods reflect the cultural
heritage and skills of the people. However, to achieve these goals, investment in
infrastructure, workforce education, and access to local and international markets are
essential.
Challenges such as lack of capital, inadequate infrastructure, and limited access to
modern technologies also need to be addressed. With the necessary support and proper
planning, rural industries can act as a driving force for Afghanistan's national economic
independence and contribute to sustainable development in the country. Currently,
agriculture remains the primary activity of Afghanistan’s rural communities. However,
due to the lack of water resources management, agricultural development is constrained
until modern water extraction technologies are implemented. Meanwhile, the increasing
population in rural areas is such that the available resources and activities cannot sustain
the excess population. Therefore, rural development efforts must retain this workforce
within the community, requiring the provision of adequate facilities. (Yar & Yasouri,
2024; YAR et al., 2024). Rural development is currently caught in a cyclical process. On
one hand, the expansion of industrial activities in rural areas is limited due to a lack of
sufficient services and facilities. On the other hand, agricultural production and the
development of this sector are dependent on retaining rural populations. Introducing non-
agricultural activities, such as industry, can help control migration. To achieve national
independence, policies must focus on import substitution and increasing industrial and
mineral exports. In the long term, the agricultural sector will face challenges due to
limited water and land resources and widespread erosion. Moreover, excessive growth in
the services sector is not advisable due to its inflationary effects. Therefore, the expansion
and development of industries and mining are essential for attracting new labor and
creating employment opportunities. (Zhao et al., 2022).
Afghanistan's industrial development in recent years has not only been
uncoordinated but has also led to increased dependence on foreign countries. The
structural changes needed for development, particularly in intermediary and capital goods
industries, have not been achieved due to a reliance on short-term import-substitution
strategies. Investment in exploration, human capital development, and infrastructure is
necessary for these industries to thrive. In the early stages of industrial development, the
focus should be on producing goods domestically at a lower cost than importing them.
The small scale and adaptability of rural industries make them a suitable platform for
Rural Industries and Their Role in the Development of Rural Areas and Afghanistan's
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4717
developing Afghanistan’s underprivileged regions and achieving a balance between
urban and rural communities (Rahmani et al., 2021). The establishment of suitable rural
industries, when accompanied by proper planning, can significantly accelerate national
development, with key benefits including:
1. Reducing the overpopulation of large cities.
2. Strengthening cultural and familial foundations.
3. Reducing crime and social unrest in the country.
4. Lowering per capita service and welfare costs.
5. Maximizing the use of existing infrastructure such as water, electricity, roads, and
educational centers to create and develop production and industrial units
6. Fostering economic, cultural, and technical links between urban and rural areas, aiding
the transition of rural economies from subsistence farming to modern, dynamic
agriculture, aligned with global agricultural trends (Yar & Yasouri, 2024; YAR et al.,
2024).
7. Providing opportunities for the development of industrial and creative talents among
rural youth and improving access to infrastructure for rural populations and small
towns.
8. Creating national integration through better population distribution and optimal
geographical selection for rural industries.
Rural Industries and Social Justice
In the past, some economists believed that the prosperity and advancement of
societies could be achieved through economic growth, which could be easily attained by
rapid industrialization, especially in a few large urban centers. They assumed that the
benefits of industrialization would naturally spread across the entire national territory.
While these theories may have been effective during the industrialization of European
societies, they have shown limited success in developing countries, where economies
often rely on a single product and are closely tied to the global capitalist system. The
experience of many Asian countries, as well as Afghanistan, confirms that economic
growth alone cannot guarantee the welfare and progress of a society. Welfare and
progress depend on economic development that addresses imbalances between different
regions and communities. Economic development ultimately means that resources and
income are distributed equitably between urban, rural, and nomadic communities.
(Ahmed et al., 2022).
The gap between urban and rural communities has been widening. Those who
remained in the villages either had strong ties to their land and homes or had access to
minimal living standards that kept them from leaving. Now, as discussions about
preserving and revitalizing rural communities gain prominence and their importance
alongside urban communities becomes more evident, rural industries play a critical role.
Migration, and its root causes, primarily stem from agricultural instability, surplus labor,
and declining rural incomes. Moreover, the lack of adequate conditions and opportunities
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4717
developing Afghanistan’s underprivileged regions and achieving a balance between
urban and rural communities (Rahmani et al., 2021). The establishment of suitable rural
industries, when accompanied by proper planning, can significantly accelerate national
development, with key benefits including:
1. Reducing the overpopulation of large cities.
2. Strengthening cultural and familial foundations.
3. Reducing crime and social unrest in the country.
4. Lowering per capita service and welfare costs.
5. Maximizing the use of existing infrastructure such as water, electricity, roads, and
educational centers to create and develop production and industrial units
6. Fostering economic, cultural, and technical links between urban and rural areas, aiding
the transition of rural economies from subsistence farming to modern, dynamic
agriculture, aligned with global agricultural trends (Yar & Yasouri, 2024; YAR et al.,
2024).
7. Providing opportunities for the development of industrial and creative talents among
rural youth and improving access to infrastructure for rural populations and small
towns.
8. Creating national integration through better population distribution and optimal
geographical selection for rural industries.
Rural Industries and Social Justice
In the past, some economists believed that the prosperity and advancement of
societies could be achieved through economic growth, which could be easily attained by
rapid industrialization, especially in a few large urban centers. They assumed that the
benefits of industrialization would naturally spread across the entire national territory.
While these theories may have been effective during the industrialization of European
societies, they have shown limited success in developing countries, where economies
often rely on a single product and are closely tied to the global capitalist system. The
experience of many Asian countries, as well as Afghanistan, confirms that economic
growth alone cannot guarantee the welfare and progress of a society. Welfare and
progress depend on economic development that addresses imbalances between different
regions and communities. Economic development ultimately means that resources and
income are distributed equitably between urban, rural, and nomadic communities.
(Ahmed et al., 2022).
The gap between urban and rural communities has been widening. Those who
remained in the villages either had strong ties to their land and homes or had access to
minimal living standards that kept them from leaving. Now, as discussions about
preserving and revitalizing rural communities gain prominence and their importance
alongside urban communities becomes more evident, rural industries play a critical role.
Migration, and its root causes, primarily stem from agricultural instability, surplus labor,
and declining rural incomes. Moreover, the lack of adequate conditions and opportunities
Fayaz Gul Mazloum Yar
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4718
to absorb skilled and educated rural workers is another factor highlighting the need for
rural industries to address these challenges (Yar et al., 2022).
Advantages of Establishing Rural Industries
1. Preserving and Storing Agricultural Products: This is particularly important as many
agricultural products lose their economic value due to a lack of scientific preservation
methods in rural areas. The annual wastage of such products leads to significant
financial losses for both the country and the farmers. This loss discourages the
cultivation of certain crops to avoid financial harm. Middlemen often take advantage
of this situation by using their financial resources to quickly transport these products
to markets, preventing spoilage. They pre-purchase products at low prices from
farmers. Packaging industries and the creation of cold storage facilities are among the
ways to preserve agricultural products (Chen, 2020).
2. Creating Intermediate and Processing Industries: With the development of rural
industries, agricultural and livestock products can be transformed into intermediate
and processed goods that are used in the production of other products. Examples
include cotton ginning, tea processing, wool spinning, wheat milling, and more
3. Cost Savings in Transporting Products: The cost of transporting finished goods is
cheaper due to their smaller volume and easier transportability compared to raw
agricultural materials. For instance, transporting sugar beets required to produce 100
tons of sugar is far more expensive than transporting the finished sugar.
4. Lower Production Costs: Producing goods in rural areas, due to the availability of
cheap labor and the simplicity of rural industries, results in significantly lower costs
compared to production in urban factories. Urban workers, many of whom are rural
migrants, tend to earn higher wages due to their loss of agricultural income and the
higher cost of living in cities. Additionally, urban factories face higher fixed costs such
as depreciation, maintenance, and overhead expenses
5. Rural Industries Create Employment: Due to the seasonal nature of their work, farmers
are often idle during certain times of the year. Rural industries can absorb this idle
workforce, especially those who live far from industrial hubs, providing them with
productive employment opportunities (Chinery et al., 2020).
6. Preventing and Controlling Migration to Cities: One of the main causes of rural-to-
urban migration is the inadequacy of rural incomes, often less than half of what urban
residents earn. Other factors include seasonal unemployment and the lack of proper
living conditions in villages. If rural industries are effectively established, they can
generate additional income for farmers and their families, improving their overall
livelihoods. The introduction of industry into rural areas will, in the long run, lead to
the development of amenities like healthcare and other services, further reducing the
incentive for rural residents to migrate to cities (Chen, 2020). In conclusion, the
establishment of rural industries, if properly executed, can significantly contribute to
solving issues such as unemployment, income inequality, and migration, while
promoting social justice through the equitable distribution of resources and
opportunities across rural and urban communities.
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4718
to absorb skilled and educated rural workers is another factor highlighting the need for
rural industries to address these challenges (Yar et al., 2022).
Advantages of Establishing Rural Industries
1. Preserving and Storing Agricultural Products: This is particularly important as many
agricultural products lose their economic value due to a lack of scientific preservation
methods in rural areas. The annual wastage of such products leads to significant
financial losses for both the country and the farmers. This loss discourages the
cultivation of certain crops to avoid financial harm. Middlemen often take advantage
of this situation by using their financial resources to quickly transport these products
to markets, preventing spoilage. They pre-purchase products at low prices from
farmers. Packaging industries and the creation of cold storage facilities are among the
ways to preserve agricultural products (Chen, 2020).
2. Creating Intermediate and Processing Industries: With the development of rural
industries, agricultural and livestock products can be transformed into intermediate
and processed goods that are used in the production of other products. Examples
include cotton ginning, tea processing, wool spinning, wheat milling, and more
3. Cost Savings in Transporting Products: The cost of transporting finished goods is
cheaper due to their smaller volume and easier transportability compared to raw
agricultural materials. For instance, transporting sugar beets required to produce 100
tons of sugar is far more expensive than transporting the finished sugar.
4. Lower Production Costs: Producing goods in rural areas, due to the availability of
cheap labor and the simplicity of rural industries, results in significantly lower costs
compared to production in urban factories. Urban workers, many of whom are rural
migrants, tend to earn higher wages due to their loss of agricultural income and the
higher cost of living in cities. Additionally, urban factories face higher fixed costs such
as depreciation, maintenance, and overhead expenses
5. Rural Industries Create Employment: Due to the seasonal nature of their work, farmers
are often idle during certain times of the year. Rural industries can absorb this idle
workforce, especially those who live far from industrial hubs, providing them with
productive employment opportunities (Chinery et al., 2020).
6. Preventing and Controlling Migration to Cities: One of the main causes of rural-to-
urban migration is the inadequacy of rural incomes, often less than half of what urban
residents earn. Other factors include seasonal unemployment and the lack of proper
living conditions in villages. If rural industries are effectively established, they can
generate additional income for farmers and their families, improving their overall
livelihoods. The introduction of industry into rural areas will, in the long run, lead to
the development of amenities like healthcare and other services, further reducing the
incentive for rural residents to migrate to cities (Chen, 2020). In conclusion, the
establishment of rural industries, if properly executed, can significantly contribute to
solving issues such as unemployment, income inequality, and migration, while
promoting social justice through the equitable distribution of resources and
opportunities across rural and urban communities.
Rural Industries and Their Role in the Development of Rural Areas and Afghanistan's
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4719
Conclusion
The development of rural industries in Afghanistan offers a promising solution to
the country’s economic challenges. By creating employment opportunities, increasing
income, and reducing rural-to-urban migration, these industries can significantly
contribute to both rural and national economic development. However, addressing the
challenges of inadequate infrastructure, investment, and market access is essential for
realizing this potential. Future policies should focus on building strong infrastructure,
fostering skills development, and providing financial support to rural entrepreneurs to
ensure the sustainability and growth of rural industries in Afghanistan.
Rural industries represent one of the most important sectors of the economy, with
significant potential to diversify the rural economy, create job opportunities, address
unemployment, promote fairer income distribution, and reduce the income gap and
welfare disparity between urban and rural areas. Given the crucial role rural industries
play in the development of rural areas, this study evaluated their impact on various
dimensions of development in Afghanistan.
This research examined the role of rural industries in the economic and social
development of villages and their influence on Afghanistan’s national economy. The
findings indicate that rural industries can act as an effective tool to improve the
livelihoods of rural populations. Considering Afghanistan’s high dependence on
agriculture and livestock, the development of rural industries can lead to increased value
addition, job creation, and poverty reduction.
Rural industries, particularly in the areas of local production, handicrafts, and agricultural
processing, hold significant potential for boosting income and strengthening the national
economy. However, multiple challenges—such as inadequate infrastructure, limited
access to domestic and international markets, and a lack of technical knowledge—hinder
the full utilization of these capacities.
National Economy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4719
Conclusion
The development of rural industries in Afghanistan offers a promising solution to
the country’s economic challenges. By creating employment opportunities, increasing
income, and reducing rural-to-urban migration, these industries can significantly
contribute to both rural and national economic development. However, addressing the
challenges of inadequate infrastructure, investment, and market access is essential for
realizing this potential. Future policies should focus on building strong infrastructure,
fostering skills development, and providing financial support to rural entrepreneurs to
ensure the sustainability and growth of rural industries in Afghanistan.
Rural industries represent one of the most important sectors of the economy, with
significant potential to diversify the rural economy, create job opportunities, address
unemployment, promote fairer income distribution, and reduce the income gap and
welfare disparity between urban and rural areas. Given the crucial role rural industries
play in the development of rural areas, this study evaluated their impact on various
dimensions of development in Afghanistan.
This research examined the role of rural industries in the economic and social
development of villages and their influence on Afghanistan’s national economy. The
findings indicate that rural industries can act as an effective tool to improve the
livelihoods of rural populations. Considering Afghanistan’s high dependence on
agriculture and livestock, the development of rural industries can lead to increased value
addition, job creation, and poverty reduction.
Rural industries, particularly in the areas of local production, handicrafts, and agricultural
processing, hold significant potential for boosting income and strengthening the national
economy. However, multiple challenges—such as inadequate infrastructure, limited
access to domestic and international markets, and a lack of technical knowledge—hinder
the full utilization of these capacities.
Fayaz Gul Mazloum Yar
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4720
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Impact on new craftsmen's capacity through the development of target markets in
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Entrepreneurship in Afghanistan. Journal of Entrepreneurial and Business
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