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Link Rural Non-farm Sector
with Export Markets

(From page-1)

Two papers were presented at the dialogue. The paper entitled Rural Non-farm Economy in Bangladesh: Characteristics and Issues for Development was presented by Mr. M.A. Sattar Mandal, Professor, Bangladesh Agricultural University, Mymensinh which he prepared jointly with Dr. M. Asaduzzaman, Research Director, Bangladesh Institute of Development Studies. The other paper entitled Rural Non-farm Economy in Bangladesh: A View from Household Surveys was presented by Dr. Mahabub Hossain, Head, Social Sciences Division, International Rice Research Institute, Manila, Philippines.
In his presentation, Professor M. A. Sattar Mandal noted that increased rural non-farm activities have had positive impact on the reduction of rural poverty, especially hardcore poverty. Income from RNF activities contribute to a more equitable distribution of resources as these create work opportunities for the large masses of unskilled labour and vulnerable groups. He noted that these activities reduce rural-urban migration and benefits women and working children. Presenting the keynote paper, Dr. Mahabub Hossain pointed out that the transition from agriculture to a non-farm based rural economy is being reinforced by an improvement in human capital, development of the rural transport network, expansion of rural electrification, and to some extent by the expansion of credit provided by the NGOs. Nevertheless, according to Dr. Hossain the challenges confronting the policymakers are to devise and implement programmes and projects that facilitate the distribution of non-farm employment in favor of land-poor households.
In his speech, the Chief Guest of the session, Industries Minister Mr. M.K. Anwar, MP, underscored the need for establishing linkages between the RNF sector and the export markets. "Considering the unlikelihood of expansion in cultivable land, future growth in


Dr. Mahabub Hossain and Professor M.A. Sattar Mandal making keynote presentation


Bangladesh's economy largely depends on the expansion of the RNF activities," the Minister added.
Emphasising on the graduation of rural peasants from subsistence level to a relatively better off level, former Agriculture Minister Begum Matia Chowdhury mentioned that easy access of the farmers to microcredit facilities is a critical factor in this regard. The former Minister also highlighted the contribution of the rural women in the post-harvest management process.
The session chair, Professor Rehman Sobhan, recommended for expansion of credit portfolios in the formal banking and NGO channels so that the RNF sector did not shrink due to financial constraints.
Among other participants, former Finance Minister Mr. M. Syeduzzaman, former Advisor to the Caretaker Government Mr. Abdul Muyeed Chowdhury, Industries Secretary Mr. Al-Ameen Chowdhury, Prof. Moazzem Hossein, former Secretary Dr. Taufiq E. Elahi Chowdhury, Member of the Planning Commission Professor Momtaz Uddin Ahmed, Economists Dr. Sajjad Zohir and Dr. Hossain Zillur Rahman took part in the open-floor discussion.

Competitiveness Rooted in the
Microeconomic Fundamentals

CPD ED points out
   

Organised crime and people's diminishing confidence in political leadership have blunted the competitive edge of the enterprises in Bangladesh. On the other hand, a large number of companies have been paying extra-money or bribes in connection with permits, public utilities, taxes and loan applications.
Such were the findings of the successive CPD surveys conducted on the leading companies of Bangladesh having more than Tk. 10 crore in assets in 2001 and 2002 with a

view to assessing the state of the competitiveness environment in the country. The surveys were carried out in collaboration with the Centre for International Development, Harvard University in preparation for the Global Competitiveness Reports (GCR 2001 and GCR 2002) of the World Economic Forum, Geneva. The survey was conducted on 56 companies in 2001 and 71 companies in 2002 having more than Tk. 10 crore in assets. Around 50 per cent of the companies under survey were manufacturing enterprises.

(Cont. Page-4)

CPD Quarterly
July-September 2002