Contribution of Small-Scale Agroforestry to Local Economic Development and Livelihood Resilience: Evidence from Khyber Pakhtunkhwa Province (KPK), Pakistan

Agroforestry plays a vital role in enhancing environmental sustainability, improving local economies, and reducing poverty through livelihood resilience. Several researchers have studied the importance of agroforestry, but little attention has been paid to livelihood resilience and local economic development in developing countries. This study aims to find the role of small-scale agroforestry in local economic development in the Shangla and Swat districts of Khyber Pakhtunkhwa (KPK) Province, Pakistan. In this study, a total of 350 quantitative household surveys, 12 qualitative household case studies, and interviews of experts are used. The ordinary least squares (OLS), linear regression model, household income, wealth index, and five capitals of sustainable livelihood approach (SLA) were used to measure livelihood resilience. Results show several significant findings which may apply on a larger scale and in other cities of Pakistan or other countries. First, it directly shows the association between agroforestry, resilience-building, and local economic development. Second, financial capital can be improved through agroforestry, which can improve other capital assets. Third, small-scale agroforestry brings non-financial benefits such as environmental sustainability, improved living standards, reduced soil erosion, and provided shade. Fourth, irrigation plays a vital role in building livelihood resilience and promoting agroforestry. Lastly, on-farm diversity can be improved through agroforestry. This research discusses several practical implications along with recommendations for future research.