1. Mahbubul Islam Khan

2.  Economy has been growing at a rate of around 6% per annum  Economy underwent remarkable structural transformation  Agriculture’s share in GDP declined to around 20% despite agriculture grew at 3% per annum during the past decade.  Significant reduction in incidence of poverty (head count ratio)  Poverty (head count ratio) fell from 56.7% in 1991-92 to 31.5% (HIES 2010) 2

3. 3  Bangladesh still remains a low income country with a per capita income of USD 1,044 in FY 2012-13 (almost double in India, substantially high in Pakistan)  Most (around 78%) labor force is engaged in informal low productivity and low income jobs.  Bangladesh is most vulnerable to climate change, nearly a quarter of Bangladesh is less than seven feet above the sea level.  Agriculture is susceptible to large scale natural disasters such as floods and cyclones

4. 4  Agriculture employs almost 50% of labor force, low labor productivity in agriculture.  Extreme scarcity of land and declining land man ratio.  Still more than 40 million people live below poverty line.  Sustainable poverty reduction calls for creation of productive employment and income generation for the poor.

5. 5  Physical location  Linkages (raw material and labor)  Examples are Brick making, charcoal making, small bakeries, Blacksmith and metal workers  Carpentry workshops, Handicraft products (sewing, basket weaving, cloth making etc.)  Batik, tie and dye, processing (milling, jams, pickles, honey).

6. 6  Growth in agricultural production can’t absorb growing labor force  Non-farm income is important (agricultural income is insufficient, seasonality of agricultural wage employment)  Rural non-farm sector provides employment supplementation  Prevents/moderate out migration and helps control urban congestion and pollution

7. 7  Can potentially benefit disadvantaged populations, marginalized physically or socially (women, indigenous people)  Can potentially address regional differences in development  Reduce less capital and generate more employment per unit of capital

8. 8  Financial Services  Credit  Insurance  Non-Financial Services  Training on book keeping, business plan preparation  Production–oriented technical skills training

9. 9  Technological support to improve product design and quality  Facilitating access to markets (local, national and export markets)  Rural infrastructure development

10. 10  Economy-wide macro-economic policy (e.g. allocation of budgetary resources, domestic terms of trade between agriculture and non-agriculture)  Sectoral policies, projects and programs (e.g. reform of banking regulations, reform of collateral regulations that impair the ability of small firms to access institutional loans), business cluster development  Making the playing field equal for small rural and large urban enterprises

11. 11  All institutional actors (public and private) need to work in harmony rather than in isolation  Subcontracting between urban and rural enterprises (manufacturing or trading companies outsource to rural enterprises)

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16. Thank You 16