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8/2/2019 L 14. Class Version. DEV 101. Lecture 14. Development Strategies. Major Achievements and Challenges. Fall 2010
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Lecture 14 (L 14)
Theme:
Development Strategies:Major Achievements andChallenges
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Development Strategies During the last decade Bangladesh’s economic and social
development achievements have been impressive:
GDP growth averaged 5% per annum Income poverty fel l from 59% to 50% Infant mortality halved Life expectancy increased from 56 to 65 years Annual export growth reached 11% Substantial employment generation taken place Income from remittances and peacekeeping equivalent to
50% of export earnings
All these have helped Bangladesh make a strong start inmeeting the Millennium Development Goals (MDGs)
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Development Strategies A Brief Historical Overview of Development
Strategies in Bangladesh:
Bangladesh has walked a long way to reach thisstage
It required various stages of development planningand strategies, formulation of policies and theirexecution
Five Year Plans (FYP) ADP (Annual Development Programme)
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Development Strategies Five Year Plans (FYP): Five Year Plans aimed at economic growth, resource mobilization,
public and private sector reform, infrastructural development,poverty alleviation, rural development, social upliftment, local
government development, etc.
First Five Year Plan (1955-60) Second Five Year Plan (1960-65) Third Five Year Plan (1965-70)
ADP (Annual Development Programme):
ADP was an organised list of projects in various sectors andallocations for them for one year out of a Five-Year Plan
Started since the First Five Year Plan (1955-60) of the provincial
government of East Pakistan
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Development Strategies Bangladesh Period:
Planning Cell under the Mujibnagar Government Planning Commission set up in 1972 Ministry of Planning Project Implementation Bureau (PIB) in January
1975 as a Division under the Ministry of Planning
ECNEC under the Ministry of Planning but chairedby the PM and co-chaired by the Finance Minister
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Development Strategies Five Year Plans:
First Five Year Plan (1973-1978): relief and rehabil itation/GDP target 5.5% / Actual 4.0%
Two Year Plan (1978-1980): completion of incomplete projectsGDP 5.6% / Actual 3.5% Second Five Year Plan (1980-1985): rural development/
GDP 5.4% / Actual 3.8% Third Five Year Plan (1985-1990): poverty alleviation & economic growth/
GDP 5.4% / Actual 4.15% Fourth Five Year Plan (1990-1995): poverty alleviation & economic growth/
GDP 5.0% / Actual ? Two Ad-hoc Plans (1995-97): poverty alleviation & economic growth/GDP ? / Actual ?
Fifth Five Year Plan (1997-2002) poverty alleviation & economic growth/GDP 7.0% / Actual ?
Sixth Five Year Plan (2002-2007) poverty alleviation & economic growth/GDP 7.0% / Actual ?
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Development Strategies PRSP (Poverty Reduction Strategy Papers):
What is it ?
Macroeconomic, structural and social policies and programs of acountry
To promote growth and reduce poverty Prepared by the government But done through a participatory process Civil society, domestic stakeholders l ike NGOs, community
organisations, trade unions etc. Foreign development partners like the World Bank and the IMF are
also involved A country needs a national PRSP to apply for debt relief, new
credits, loans and grants from the World Bank, IMF and donorcountries
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Development Strategies Why Needed?
PRSP provides a roadmap indicating the priorityactions to achieve poverty reduction
The national budget of a country allocates thefinance for it
International donors also support the PRSP and
add to the governmental budget PRSP is updated every three years with annual
progress reports Today, PRSP processes can be found in almost 70
countries worldwide
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Development Strategies
How does the PRSP process work?
The stages of the PRSP process
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Development Strategies Interim Poverty Reduction Strategy Paper (I-PRSP)
titled ‘A National Strategy for Economic Growth,Poverty Reduction and Social Development, 2003’
‘Poverty Reduction Strategy Paper Status Report’,August 25, 2004 (PRSP I)
Poverty Reduction Strategy Paper, titled‘Bangladesh Unlocking the Potential’, October 2005(PRSP II)
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Development StrategiesTarget Setting on Major Goals against 2002 Benchmark
Indicators 1990 2002 Annual Progress 2015Annual Progress
Benchmark Over 1990-02 (%)Over 2002-15 (%)
Income-Poverty (%) 59(50) 50*(40) -1.5(-1.9) 25(20) -3.3(-3.3)
Extreme Poverty (%) 28 19* -3.2 9.5-3.3
Adult Literacy (%) 35 49.6 3.5 906.3
Primary Enrolment (%) 56 86.7 4.6 1001.2
Secondary Enrolment (%) 28 52.8 7.4 956.1
Infant Mortality Rate 94 53 -3.6 18-5.1
(per 000 live births)
Under-Five Mortality Rate 108 76 -2.5 25-5.2
(per 000 live births)Maternal Mortality Rate 554 390 -2.5 98
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Development Strategies Rural Development: Definition and Aims:
Planned change towards the improvement of the economic and social
l ifestyle and the well being of the rural people A planned change can be of two kinds:
rural institution-building advancement in technology
How this change can be achieved ? – The Aims: increased production
equitable distribution of scarce resources
Wider employment opportunities
empowerment - economic and polit ical power to the rural masses in
annin ecision-ma in im ementation rocess ene it s arin
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Development Strategies History of Rural Development Policies and Strategies:
V-AID Programme, 1953: Vil lage Agricultural and IndustrialDevelopment Programme by Pakistan Government
V-AID covered all major sectors of rural development like agriculture,primary education, health, sanitation, cooperatives, land reclamation,physical infrastructure, social and recreational activities, etc.
Comilla Cooperative Approach:
It was engineered in early 1960s by the Pakistan Academy of RuralDevelopment later renamed as Bangladesh Academy for RuralDevelopment (BARD)
The man behind this new model was Akhter Hameed Khan An integrated rural development approach was made and projects
taken accordingly
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Development Strategies The Comilla Model had four constituent elements :
Rural Works Programme (RWP) - build communication and drainage network
Thana Training and Development Centre (TTDC) - train vil lagers Thana Irrigation Programme (TIP) - provide irrigation facil it ies to farmers
Two-tier Cooperatives to promote cooperation among vil lagers
a. TCCA: Thana Central Co-operative Association at the thana level
b. KSS: Krisak Samabaya Samity at the vil lage l evel
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Development Strategies Rural Development: Bangladesh Experience:
Since birth Bangladesh has witnessed ceaseless experimentation
with varied rural development approaches In 1972, the government activated the Integrated Rural
Development Programme (IRDP) to replicate and expand the Comilla
Model in other parts of the country
The whole programme was later transformed into an institution
called Bangladesh Rural Development Board (BRDB)
The BRDB eventually became the largest government organisation
involved in rural development
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Development Strategies Experiments with various rural development
programmes:
Swanirvar (self-reliance) Movement, 1975 Comprehensive Vil lage Development Programme, 1975 Swanirvar Gram Sarkar, 1976 Upazila System, 1982 Small Farmers Development Programme, 1993 Vulnerable Group Development Project Thana Resource Development and Employment Project Rural Social Service Programme Community Development Programme Self-rel iance Programme for Rural Women, etc.
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Development Strategies Achievements in rural development programmes:
During the last two decades or so, Bangladesh has made commendable progress in
selected fields of development, especially in agriculture, human resources
development, and community focused health services
The achievements also include
a remarkable increase in rice production and development of High Yielding Variety of rice
expansion of agricultural extension and institutional networks
wide coverage of immunization programmes
primary education programmes and reduction in illiteracy rate
reduction in the population growth
some development in communicational infrastructure building and
finally, a considerable degree of women’s involvement in income generating activities through
awareness building and mobilising efforts
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Development Strategies Industries marked by notable development included automobiles
(assembly), oil refinery, insulators and sanitary wares, telephoneequipment, electrical goods, televisions (assembly), cigarette, andvegetable oil, etc
But in the overall performance of the industry sector the Ready MadeGarments (RMG) industry has started playing the most dominant rolein the industrial production and export
Consequently it has become Bangladesh’s prime export earner makingthree-quarters of all registered exports by 2006 replacing thereby juteand jute goods as top export items
It has also become an important employer by employing in 3,000
factories around 1.5 million workers overwhelmingly women
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Development Strategies
But given the fact that the export base itself is narrow, the industrial sector
of the country is too heavily dependent on one export item only – the RMG
The performance of the industrial sector so remains vulnerable tounfavourable changes in the external sector or unexpected polit ical crisis
internationally to adverse developments
So a more diversified and modern industrial and export base is needed
Hindrances to the industrial growth include slow pace of privatization,
problems of industrial finance, infrastructural bottlenecks, particularly those
relating to transportation, port facil it ies and power supply, lack of skil led
workers, deficient technology, the law and order situation, corruption and
bureaucratic red-tapism etc are some of the main factors that are holding
back the development of the sector
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Development Strategies
Development Strategies: Agriculture Policies:
General Features:
Crops:
Nearly 100 different kinds of crops are presently grown in Bangladesh
Rice is the principal one which grows in all the three crop growing seasons of the year
Rice covers about 79% of the total cropped area (about 13.4 million hector)
High yielding varieties cover more than 50 percent of the total rice area
Other important crops are wheat, jute, potato, oilseeds, pulses, tobacco, cotton, sugarcane, fruits,
vegetables
Agriculture Labour Force:
According to Bangladesh Bureau of Statistics in 1995/96 63.2% (34.5 out of 56.0 million) labour force of
Bangladesh were engaged in agriculture
18% of them were paid day-labourers
82% comprised the cultivators themselves and unpaid family workers
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Development Strategies
Agricultural Policies: Early Phase:
East Pakistan Agricultural Development Corporation (now
BADC)
East Pakistan Agricultural Bank (Now BKB) established in
early 1960's
Subsidies to inputs (seed, ferti l iser, pesticide, agrimachinery, etc)
Comilla Model boosted agricultural production through
‘seed-water-ferti l iser technology’
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Development Strategies
Green Revolution:
Began in the early 1960s and continued up to the 1970s (first used in 1968by former USAID Director Will iam Gaud)
Sponsored by international funding agencies and USA it aimed mainly at
developments in agricultural production. It emphasized three areas:
hybrid or high-yielding varieties of seeds of wheat, rice and corn (maize)
pest control by use of heavy doses of pesticides or chemical ferti l izers
mechanization of agriculture l ike dril l ing of thousands of wells for controlled
irrigation
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Development Strategies
Green Revolution nearly doubled wheat production in Pakistan in
five years from 4.6 million tons in 1965 (a record at the time) to 8.4
million tons in 1970
International Rice Research Institute (IRRI founded in 1960)
developed high-yielding varieties for rice named IR8, which doubled
yields and became known as "miracle rice" and so served as the
catalyst of the Green Revolution
IRRI varieties soon became important rice varieties in East Pakistan
The Green Revolution is generally considered to have averted
famine in India and Pakistan
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Development Strategies
Agricultural Policies: Bangladesh Period:
Bangladesh government continued the subsidy policy to farmers during the
first few years
But later shifted to laissez-faire economy and curtailed the monopoly of
BADC
Price subsidy for all fert i l izers was 68% in 1973/74 but decreased to 47% in
1979/80 and was fully withdrawn after 1980
But later BADC was allowed to distribute ferti l izer through select dealers
and fixed its price also
Also policy of l ift ing restrictions and taxes (fully and partially) from import
of irrigation machinery proved very conducive to the expansion of irrigation
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Development Strategies
Other policies included
Disbursement of micro-credit
rescheduling of agricultural loans of indebted farmers
remission of land taxes for holdings up to 25 bighas
crop diversification programmes
special programmes for disaster-stricken farmers
Results of these pol icy measures:
Improvement of the food situation in Bangladesh
Food grain production increased to 24.3 mill ion tons in 1999/2000
This matched the annual consumption requirement of the population
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Development Strategies
National Agriculture Policy, 1999:
Announced in April 1999
Attain self-reliance in crop production
Develop crop agriculture
Crop diversification
Improve the nutritional status in the country Improve seed distribution programme of BADC
Private sector to take part in the production, import and marketing
of seeds
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Development Strategies
Private sector to continue distribution of ferti l izers
Public sector also to import ferti l izers, if necessary
Promote appropriate technology to increase irrigated area
and reduce irrigation cost
Mechanization of agriculture and credit facil it ies for the
purpose
Integrated Pest Management (IPM) for environment-friendly
and sustainable agriculture and chemical pesticide harmful
to the environment would be discouraged and eventually
banned
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Development Strategies
Agricultural Credit:
Attempt to mobilise more resources as agricultural credit to meetthe increasing need of farmers
Specialised banks like Bangladesh Krishi Bank, Rajshahi Krishi
Unnayan Bank, Bangladesh Cooperative Bank, commercial banks like
Sonali, Janata, Agrani and Rupali Banks, and Bangladesh Rural
Development Board (BRDB) were used to meet the needs of farmers
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Development Strategies
Food Security:
In its simplest form, food security means that all people have enough to eat at all
times to be healthy and active, and do not have to fear that the situation will change
in the future
Three fundamental pil lars in achieving food security are
food availabil ity: sufficient food must be grown to ensure that everyone can be
adequately fed
access to food: economic and physical that food is available at all marketplaces
food util ization: bring together both the quality of food and other complementary
factors such as safe water to ensure adequate nutritional outcomes of every individual
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Development Strategies
Bangladesh has long been trying to achieve food security and
succeeded
Rice production increased Almost three times as much rice per land unit is produced as in the
1950s• 1990 : 2,000 kg per hectare• 2005 : 2,400 kg per hectare
In total volume:• 1970s : 12 million tons• 2000 : 23 million tons Gained self-sufficiency in food-production for the first time in 2000
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Development Strategies
0
50
100
150
200
250
300
350
I n L a k h M e t r i c T o n
FY 05 FY 06 FY 07 FY 08
Production TargetNet Domestic Production
Food Grain Production
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Development Strategies
Main three rice crops are high-yielding rice varieties:
autumn rice aman
winter rice bo r o
summer rice au s
Rice boom has prevented mass starvation
But has it finally ensured food to all three times a day ?
Has it succeeded to raise the standards of the riceproducers ?
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Development Strategies
Export oriented Entrepreneurialism inBangladesh:
Stellar performance of the garments industry(RMG):
Took off in the 1980s Exporting garment items mostly to USA
(43.24% /1998-99 ) and European Union(52.38% /1998-99 )
Producing textiles for world market after alapse of two centuries
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Development Strategies
Its contribution to Women Empowerment:
The expansion of the RMG industry has caused noticeable
social changes in the l ives of its female workers Importantly it has brought more than 1.5 mill ion women into
labour force The economic empowerment of these working girls/women
has changed their status in the family
It has changed the tradit ional patriarchal hegemony of thefathers, brothers and husbands Most working women/girls can now chose when and where
to get married or become mothers The number of early marriages and divorces is decreasing;
so is the birth rate
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Development Strategies
The working girls tend to send their l i tt le bothers andsisters to school, as a result, the l iteracy rate is increasing
They can also participate in family decision-making RMG industry has also produced a group of entrepreneurs
who have created a strong private sector and of them asizeable number is female
Many women hold top executive positions in RMG industry Sti l l no better opportunities for women to earn the
equivalent of $ 20 per month BGMEA is the organisation of the garments owners and
exporters of Bangladesh The labourers have their trade unions or CBAs to bargain
with the owners and the government
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Development Strategies
Problems:
Highly dependent on imported raw materials and accessories Conditions in the factories are appall ing Very low wages Long working hours Health risks in hazardous working condition Life security
Child labour Underdeveloped infrastructures l ike poor power supply,
transportation and communication, inadequate portfacil it ies, etc
Increasing competition with powerful suppliers outside Polit ical unrest
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Development Strategies
RMG Sector
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Development Strategies
Export of Human Resources:
Labour migration: General Facts:
Labour migration to Britain during the British colonial rule asservice personnel and attendants
From mid-70s Bangladeshi labour migration to ME began This later was expanded to South-East Asia, Europe and North
America
Manpower export viewed as a mechanism of reduc ing unemployment Also regarded a means of earning foreign exchange In 1975 only 765 Bangladeshis went abroad for employment which
became 6,087 in 1976 Ten years later in 1986 it became 68,628 and rose to 268,182 in
1999
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Development Strategies
Why do Bangladeshis migrate ?:
Unemployment
Lack of job opportunity
Poverty particularly in the rural areas
Better opportunities
Political pressure
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Development Strategies
Official Institutions and Policies:
1. Government Ministries: a) Ministry of Labour and Employment (until 2001)
b) Ministry of Expatriates’ Welfare and Overseas (from Dec
2001) to create overseas employment opportunities
to address problems experienced by expatriates and to ensure their welfare
2. Government Agencies:
a) Bureau of Manpower, Employment and Training (BMET)
o Created in 1976 as the executing agency of the Ministry for processing labour
migration
o Responsible for a wide range of functions as control and regulation of recruiting
agents, analysis of labour market, registration of job seekers, training programmes,
resolving legal disputes, etc
b) Bangladesh Overseas Employment Services Limited (BOESL)
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Development Strategies
Official Institutions and Policies:
3. Private recruiting agents and their local and international intermediaries:
Active since 1981 and work under license from the government
On their own they collect information, obtain permission from BMET, recruit workersand execute the procedures involved in their deployment
Organized (Dec 1984) under Bangladesh Association of International Recruiting
Agencies (BAIRA)
By 2002, it had a membership of around 700 agencies
4. Potential migrants and their families: About 55-60% of recruitment is conducted through individual initiatives and social
networks
Usually, persons already deployed in the host countries arrange them
Here migrants pay less than paid to the formal recruiting agents and risk of fraudulent
practices is also considered to be less
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Development Strategies
Bangladeshi migrants and immigrants
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Development Strategies
Number and Volume of Remittances:
Of the Bangladeshis leaving for employment abroad in 1990:
About 65% were unskilled or semi-skilled workers 6% construction labour
6% vehicle drivers
8% technicians
5% catering workers an
10% professionals including engineers, doctors and teachers
But this composition shifted towards an increased share of workers
and in 1997, about 90% of them were workers
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Development Strategies
Foreign remittance situation in Bangladesh:
In 1976, remittances or money sent by Bangladeshis working abroad
reached Tk 760 mill ion
In 2010 it reached the $ 10 bil l ion mark o r about 700 bil l ion taka
According to a Bangladesh Bank estimate:
1980 : $ 0.2 bil l ion Early 1990s: $ 1 bil l ion 2006 : $ 5 bil l ion (around $ 40 per inhabitant or four times the
amount of foreign aid per inhabitant) 2008 : $ 8 bil l ion nearly 2010 : $ 10 bil l ion mark expected
8/2/2019 L 14. Class Version. DEV 101. Lecture 14. Development Strategies. Major Achievements and Challenges. Fall 2010
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Development Strategies
Three kinds of Bangladeshi migrantssending remittances :
overseas labour migrants
middle-class educational and job
migrants unauthorized labour migrants to
neighbouring countries
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Development Strategies
0
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FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08
U S
D O l l a r ( I n B i l l i o n )
Remittance Flow: Bangladesh
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Development Strategies
Impact of Migration and Remittances:
Vast amounts of money remitted throughnon-official channels bypassing bankingsystem
Economy so is now remittance-dependentrather than aid-dependent
Migration develops new forms of businessand entrepreneurship, transfer oftechnology, and exchange of culture
It creates domestic employment also
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