SIXTH FIVE YEAR PLAN

FY2011-FY2015

Accelerating Growth and Reducing Poverty

Part-2
Sectoral Strategies, Programmes and Policies

General Economics Division

Planning Commission
Ministry of Planning
Government of the People’s Republic of Bangladesh
Cover Designed by
General Economics Division (GED),
Planning Commission
Government of the People’s Republic of Bangladesh

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 Contents
Page
Contents……………………………………………………………………………………………………………...iii
List of Tables ............................................................................................................................................................. vi
List of Figures............................................................................................................................................................ ix
List of Boxes .............................................................................................................................................................. ix
List of Annex ............................................................................................................................................................. ix
ABBREVIATIONS .................................................................................................................................................... x
CHAPTER 1: STRATEGY FOR RAISING FARM PRODUCTIVITY AND AGRICULTURAL GROWTH 1
INTRODUCTION ......................................................................................................................................... 1
PERFORMANCE OF AGRICULTURE SECTOR ................................................................................... 2
KEY CHALLENGES .................................................................................................................................... 4
CROP SECTOR ............................................................................................................................................ 5
FORESTRY…………………………………………………………………………………………………20
NON–CROP SECTOR: LIVESTOCK ...................................................................................................... 21
FISHERIES SUB-SECTOR ....................................................................................................................... 29
FOOD SECURITY AND MANAGEMENT ............................................................................................. 33
WATER RESOURCES ............................................................................................................................... 36
RURAL DEVELOPMENT ......................................................................................................................... 41
MASTER PLAN FOR AGRICULTURE DEVELOPMENT IN THE SOUTHERN DELTA OF
BANGLADESH…………………………………………………………………………………………….47
DEVELOPMENT RESOURCE ALLOCATIONS FOR AGRICULTURE, WATER RESOURCES
AND RURAL DEVELOPMENT ............................................................................................................... 47

CHAPTER 2: DIVERSIFYING EXPORTS AND DEVELOPING A DYNAMIC MANUFACTURING

SECTOR ................................................................................................................................................................... 49
OVERALL MANUFACTURING PERFORMANCE, STRATEGIES AND POLICIES ..................... 49
SPECIFIC LARGE AND MEDIUM SCALE MANUFACTURING ACTIVITIES ............................. 85
SMALL AND MEDIUM ENTERPRISES (SMEs) ................................................................................ 109
DEVELOPMENT RESOURCE ALLOCATIONS IN THE SIXTH PLAN......................................... 123
CHAPTER 3: ENERGY DEVELOPMENT PLAN TO SUPPORT HIGHER GROWTH AND
EMPLOYMENT .................................................................................................................................................... 126
BACKGROUND AND STRATEGIC CONTEXT ................................................................................. 126
ENERGY STRATEGY IN THE SIXTH PLAN ..................................................................................... 127
POWER SECTOR ..................................................................................................................................... 131
PRIMARY ENERGY SECTOR .............................................................................................................. 146
RENEWABLE ENERGY ......................................................................................................................... 155
DEVELOPMENT RESOURCE ALLOCATION IN POWER AND PRIMARY ENERGY SECTOR
DURING THE SIXTH PLAN .................................................................................................................. 156
CHAPTER 4: EFFICIENT TRANSPORT SERVICES TO REDUCE COST AND IMPROVE WELFARE
................................................................................................................................................................................. 158
BACKGROUND AND DEVELOPMENT CONTEXT.......................................................................... 158
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 TRANSPORT SECTOR OBJECTIVES, STRATEGIES, AND POLICIES IN THE SIXTH PLAN160
ROADS AND HIGHWAYS DEPARTMENT......................................................................................... 161
BANGLADESH ROAD TRANSPORT AUTHORITY (BRTA) ......................................................... 173
BANGLADESH ROAD TRANSPORT CORPORATION .................................................................... 176
LOCAL GOVERNMENT ENGINEERING DEPARTMENT .............................................................. 177
BANGLADESH BRIDGE AUTHORITY ............................................................................................... 180
DHAKA CITY TRANSPORT .................................................................................................................. 182
BANGLADESH RAILWAY..................................................................................................................... 185
INLAND WATER TRANSPORT ............................................................................................................ 191
PORTS AND SHIPPING .......................................................................................................................... 194
AIR TRANSPORT AND TOURISM ....................................................................................................... 202
DEVELOPMENT RESOURCE ALLOCATION FOR TRANSPORT SECTOR IN THE SIXTH
FIVE YEAR PLAN ................................................................................................................................... 206
CHAPTER 5: MANAGING THE URBAN TRANSITION ............................................................................... 209
INTRODUCTION ..................................................................................................................................... 209
THE URBANIZATION CHALLENGE IN BANGLADESH ................................................................ 210
URBAN POVERTY IN BANGLDESH ................................................................................................... 216
POLICY AND REGULATORY FRAMEWORK IN THE URBAN SECTOR ................................... 217
INSTITUTIONAL FRAMEWORK FOR URBAN GOVERNANCE AND MANAGEMENT .......... 219
A REVIEW OF PAST POLICIES AND PROGRAMS FOR MANAGEMENT OF URBANIZATION
..................................................................................................................................................................... 220
URBANIZATION STRATEGY UNDER THE SIXTH PLAN ............................................................. 227
SUB-SECTORAL GOALS, TARGETS, STRATEGIES AND PROGRAMS FOR THE SIXTH PLAN
..................................................................................................................................................................... 230
ALLOCATION OF DEVELOPMENT RESOURCES FOR THE URBAN SECTOR IN THE SIXTH
PLAN .......................................................................................................................................................... 241
CHAPTER 6: BOOSTING THE KNOWLEDGE ECONOMY FOR HIGHER PRODUCTIVITY ............. 244
OVERVIEW .............................................................................................................................................. 244
DEVELOPMENTS IN SCIENCE AND TECHNOLOGY .................................................................... 248
INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ................................................ 270
STRENGTHENING THE SUPPLY SIDE OF ICT ............................................................................... 285
STRATEGY FOR KNOWLEDGE DISSEMINATION ........................................................................ 289
RESOURCE ALLOCATION FOR KNOWLEDGE MANAGEMENT IN THE SIXTH PLAN ....... 289
CHAPTER 7: EDUCATION, TRAINING, SPORTS, CULTURE AND RELIGION .................................... 296
INTRODUCTION ..................................................................................................................................... 296
OVERALL PERFORMANCE OF THE EDUCATION SECTOR....................................................... 297
MAJOR CHALLENGES IN THE EDUCATION SECTOR ................................................................ 298
SFYP GOALS AND OBJECTIVES FOR EDUCATION SECTOR .................................................... 299
SFYP EDUCATION SECTOR STRATEGIES AND POLICIES......................................................... 303
EDUCATION SUB-SECTORAL PERFORMANCE AND STRATEGIES......................................... 311
PRIMARY AND EARLY CHILDHOOD EDUCATION ...................................................................... 311
NON-FORMAL EDUCATION AND ADULT LITERACY.................................................................. 317
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 SECONDARY EDUCATION................................................................................................................... 320
HIGHER EDUCATION ........................................................................................................................... 324
ISSUES RELATED TO TRAINING ....................................................................................................... 327
SPORTS...................................................................................................................................................... 332
CULTURE.................................................................................................................................................. 333
RELIGIOUS AFFAIRS ............................................................................................................................ 337
ALLOCATION OF DEVELOPMENT RESOURCES IN THE SIXTH PLAN .................................. 341
CHAPTER 8: HEALTH, POPULATION AND NUTRITION SECTOR DEVELOPMENT PROGRAMS 344
PAST PROGRESS AND CHALLENGES IN THE HPN SECTOR ..................................................... 344
GOALS, OBJECTIVES AND TARGETS FOR HPN IN THE SFYP .................................................. 351
HEALTH SECTOR STRATEGIES AND POLICIES IN THE SFYP ................................................. 355
POPULATION PLANNING AND WELFARE ...................................................................................... 386
NUTRITION ISSUES AND MANAGEMENT IN THE SIXTH PLAN ............................................... 391
INSTITUTIONAL ARRANGEMENTS FOR MONITORING PROGRESS WITH
IMPLEMENTATION OF HPN PROGRAMS IN THE SIXTH PLAN ............................................... 397
ALLOCATION OF DEVELOPMENT RESOURCES FOR HEALTH SECTOR IN THE SIXTH
PLAN .......................................................................................................................................................... 398
CHAPTER 9: REACHING OUT THE POOR AND THE VULNERABLE POPULATION ........................ 399
INTRODUCTION ..................................................................................................................................... 399
STRATEGIES FOR POVERTY ALLEVIATION IN SFYP ................................................................ 401
STRENGTHENING THE PARTICIPATION OF THE POOR IN GROWTH ACTIVITIES ......... 406
SOCIAL PROTECTION PROGRAMS FOR THE POOR AND VULNERABLE ............................. 417
PARTICIPATION, SOCIAL INCLUSION AND EMPOWERMENT ................................................ 422
DEVELOPMENT RESOURCE ALLOCATION FOR SOCIAL PROTECTION DURING THE
SIXTH PLAN ............................................................................................................................................. 433
CHAPTER 10: ENVIRONMENT, CLIMATE CHANGE AND DISASTER RISK MANAGEMENT ........ 439
SECTORAL OVERVIEW ........................................................................................................................ 439
SUB SECTORAL STRATEGIES UNDER THE SFYP ......................................................................... 458
MANAGING CLIMATE CHANGE ........................................................................................................ 465
DISASTER MANAGEMENT .................................................................................................................. 475
DEVELOPMENT RESOURCE ALLOCATION FOR ENVIRONMENT, CLIMATE CHANGE AND
DISASTER MANAGEMENT IN THE SFYP ........................................................................................ 484

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 List of Tables
Table 1.1: Growth Performances of Agriculture Sub-Sectors .................................................................................. 2
Table 1.2: SFYP Targets of Water Sector .............................................................................................................. 39
Table 1.3: Development Resource Allocation for Agriculture, Water Resources & Rural Development in the
Sixth Plan ............................................................................................................................................................... 48
Table 1.4: Development Resource Allocation for Agriculture, Water Resources & Rural Development in the
Sixth Plan ............................................................................................................................................................... 48
Table 2.1: The Structure of Bangladesh Manufacturing Sector, FY1975-FY2010 ................................................ 50
Table 2.2: Export Performance of Major Commodities (in millions of USD) ....................................................... 52
Table 2.3: Shift in the Structure of Employment, 2005/6-09 ................................................................................. 53
Table 2.4: Investment Climate in Doing Business 2010 ........................................................................................ 56
Table 2.5: Projection of Sectoral Growth and shares in GDP ................................................................................ 61
Table 2.6: Manufacturing Growth Projection for SFYP......................................................................................... 61
Table 2.7: Fiscal Incentives for EPZ Firms ............................................................................................................ 75
Table 2.8: Non-Fiscal Incentives for EPZs ............................................................................................................ 75
Table 2.9: Import Duty Concessions ...................................................................................................................... 77
Table 2.10: Corporate Tax Structure in Bangladesh .............................................................................................. 80
Table 2.11: Growth of the RMG sector .................................................................................................................. 86
Table 2.12: Bangladesh RMG Exports to EU and US (in million USD) ............................................................... 87
Table 2.13: Regional Product Concentration of LEI .............................................................................................. 96
Table 2.14: Export of Light Engineering Products (million US$) ......................................................................... 96
Table 2.15: Summary of Key Manufacturing Sub-sectors ................................................................................... 108
Table 2.16: Total Non-Farm Enterprises in Bangladesh, 2003 ............................................................................ 110
Table 2.17: Contribution of Large & Medium scale and Small Scale Industries to GDP (%) ............................. 110
Table 2.18: Value Addition by Small Industry and its Growth ............................................................................ 111
Table 2.19: Gross Value Added Relative to Value of Gross Output in Six Sectors ............................................. 112
Table 2.20: Material Cost as Percentage of Total Cost ........................................................................................ 113
Table 2.21: Employment per Firm across Four Size Classes in Six Sectors ........................................................ 113
Table 2.22: Percentage of Revenue from Domestic Sales .................................................................................... 113
Table 2.23: Percentage of Revenue from Export.................................................................................................. 114
Table 2.24: Average Number of Machines in Use across Six Sectors, 2007 ....................................................... 114
Table 2.25: Capital-Labor Ratio across Six Sectors ............................................................................................ 114
Table 2.26: Labor Productivity per Worker ......................................................................................................... 114
Table 2.27: Policy Suggestions by Survey Respondents (percentage of firms in an industry) ............................ 118
Table 2.28: SME Loan Disbursement Target set by Bangladesh Bank ................................................................ 120
Table 2.29: Allocation of Development Resources Manufacturing in the Sixth Plan .......................................... 123
Table 2.30: Allocation of Development Resources for Manufacturing in the Sixth Plan .................................... 124
Table 3.1: Hydro-Power Potential in Northeast South Asian Countries .............................................................. 128
Table 3.2: Per Capita Electricity Consumption 2009 (Kwh) ................................................................................ 132
Table 3.3: Present Power Generation Capacity in Bangladesh (FY10) ................................................................ 133
Table 3.4: Electricity Generation Capacity by Public and Private Sectors (FY2010) .......................................... 133
Table 3.5: Primary Energy Use in Power Generation ......................................................................................... 134
Table 3.6: List of Projects that will be implemented by 2011 .............................................................................. 135
Table 3.7: List of Projects that will be implemented by 2012 .............................................................................. 136
Table 3.8: List of Projects that will be implemented by 2013 .............................................................................. 137
Table 3.9: List of Projects that will be implemented by 2014 .............................................................................. 139
Table 3.10: List of Projects that will be implemented by 2015 ............................................................................ 140
Table 3.11: Progress with Rural Electrification Up to June 2010 ........................................................................ 142
Table 3.12: Planned Important Transmission Projects ......................................................................................... 142
Table 3.13: Year wise Power Generation during the Sixth Plan .......................................................................... 143
Table 3.14: Power Supply-Demand Balance in the Sixth Plan ............................................................................ 144
Table 3.15: Sector-specific Projected Demand for Gas during the Sixth Plan ..................................................... 148
Table 3.16: Short Term Plan completed by December 2010 ................................................................................ 150
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Table 3.17: Medium Term Plan to be completed by June 2013 ........................................................................... 151
Table 3.18: Program to be completed by 2015 ..................................................................................................... 152
Table 3.19: Coal Reserves of Five Coal Mines .................................................................................................... 154
Table 3.20: Development Resource Allocation for Energy in the Sixth Plan ...................................................... 157
Table 3.21: Development Resource Allocation for Energy in the Sixth Plan ...................................................... 157
Table 4.1: Mechanized Surface Transport Output and the Share of Road Transport in Carriage of passenger and
Freight Traffic in Selected Years ......................................................................................................................... 162
Table 4.2: Progress with Paved Road Development under RHD, 1947-2009 ...................................................... 163
Table 4.3: Road Network under RHD by Category and Status of Construction (Kilometers) ............................. 163
Table 4.4: Allocation and Expenditure of Fund under RHD in Different Plan Periods ....................................... 164
Table 4.5: RHD Physical Targets for the SFYP ................................................................................................... 168
Table 4.6: Status of Rural Roads .......................................................................................................................... 179
Table 4.7: CPA Traffic Projection........................................................................................................................ 196
Table 4.8: Summary of Total Investment Requirement for Major Transport Projects during the Period 2008/09-
2020/21 ................................................................................................................................................................. 207
Table 4.10: Development Resource Allocation for Transport Sector in the Sixth Plan ....................................... 208
Table 5.1: Growth of Urban Population in Bangladesh ....................................................................................... 210
Table 5.2: Number of Urban Centers by Census Year and Size Classes .............................................................. 213
Table 5.3: Poverty Head Count Ratio by Divisions, 2005-2010 ......................................................................... 216
Table 5.4: Hierarchy of Urban Local Governments ............................................................................................. 220
Table 5.5: Housing Sector Performance ............................................................................................................... 223
Table 5.6: Allocation and Expenditure under PPWS&H Sector in Municipalities during ................................... 225
Table 5.7: Physical Targets and Achievements of PPWS&H Sector in Municipalities during 2002-09.............. 225
Table 5.8: Allocation and Expenditure of Six City Corporations under ADP Allocation and Block Grants during
2002-2009 ............................................................................................................................................................ 226
Table 5.9: Achievements of Development Activities of the Six City Corporations under ADP and Block Grants
during the Period from 2002 to 2009 ................................................................................................................... 226
Table 5.10: Water Supply- Target Coverage at the end of SFYP* ....................................................................... 236
Table 5.11: Sanitation- Target Coverage at the end of SFYP .............................................................................. 237
Table 5.12: Development Resource Allocation for the Urban Sector in the Sixth Plan ....................................... 242
Table 5.13: Development Resource Allocation for the Urban Sector in the Sixth Plan ....................................... 242
Table 6.1: Growth of ICT Sector-wise companies in Bangladesh........................................................................ 273
Table 6.2: Development Resource Allocations for Knowledge Economy in the Sixth Plan ................................ 290
Table 6.3: Development Resource Allocations for Knowledge Economy in the Sixth Plan ................................ 290
Table 7.1: Indicators of Performance of Primary and Mass Education ................................................................ 301
Table 7.2: Indicators of Performance of Secondary and Higher Education (SFYP: 2011-2015) ......................... 302
Table 7.3: Allocation of Development Resources for Education, Religious Affairs, Sports and Culture, and Labor
and Manpower in the Sixth Plan .......................................................................................................................... 341
Table 7.4: Allocation of Development Expenditure for Education, Religious Affairs, Sports and Culture, and
Labor and Manpower in the Sixth Plan ................................................................................................................ 343
Table 8.1: International Comparison of Health spending in Bangladesh, 2006 ................................................... 349
Table 8.2: HPN Targets for the Sixth Plan ........................................................................................................... 353
Table 8.3: Percentage of Women who Received ANC from a Medically Trained Provider ................................ 359
Table 8.4: Percentage of Delivery Assisted by Medically Trained Provider........................................................ 362
Table 8.5: Problems Faced by Households Due to Health Expenditure: by Income Groups ............................... 380
Table 8.6: Type of Problems Faced by Households due to Expenditures Incurred for Treatment Purposes........ 380
Table 8.7: Trends in Current Fertility Rates ......................................................................................................... 387
Table 8.8: Development Expenditure Allocation of Health Sector in the Sixth Plan ........................................... 398
Table 8.9: Development Expenditure Allocation of Health Sector in the Sixth Plan ........................................... 398
Table 9.1: Headcount Poverty Rate (%) ............................................................................................................... 399
Table 9.2: Distribution of Poverty by Divisions ................................................................................................... 400
Table 9.3: Poverty Rate and Occupation 2005 ..................................................................................................... 406
Table 9.4: Land Ownership and Poverty in Rural Bangladesh............................................................................. 407
Table 9.5: Targeted Agricultural and specialized Credit Program through Public Sector Banks and Cooperatives
.............................................................................................................................................................................. 412
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Table 9.6: Bangladesh Micro Finance –Operational Outreach............................................................................. 413
Table 9.7: Financial outreach of the MFIs, 2003-08 ............................................................................................ 413
Table 9.8: Trend in Number of Employment Abroad and Amount Remittances ................................................. 415
Table 9.9: The Main Types of Social Protection Programs in Bangladesh .......................................................... 419
Table 9.10: Trends in Old Age Allowance Program ............................................................................................ 421
Table 9.11: Development Resource Allocation for Social Protection under the Sixth Plan................................. 433
Table 9.12: Development Resource Allocation for Social Protection under the Sixth Plan................................. 433
Table 10.1: Sixth Plan Benchmark and Proposed Target Programs ..................................................................... 473
Table 10.2: Development Resource Allocation for Environment and Disaster Management in the Sixth Plan ... 484
Table 10.3: Development Resource Allocation for Environment and Disaster Management in the Sixth Plan ... 485

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 List of Figures
Figure 1.1: Trends in Rice (Paddy) Yield in Bangladesh: FY 1971/72-FY2008/09................................. 6
Figure 2.1: FDI Investments in Bangladesh ........................................................................................... 76
Figure 3.1: Sources of Energy Annual Energy Supply 2009 ................................................................ 146
Figure 3.2: Current Sectoral use of Gas in percent (2009) ................................................................... 147
Figure 3.3: Sector wise annual average growth rate of use of gas, 1991-2010..................................... 148
Figure 5.1: World’s Fastest Growing Megacity.................................................................................... 211
Figure 5.2: Dhaka’s Share of Bangladesh’s Total Population .............................................................. 212
Figure 6.1: Overall KEI 1995 Vs Most Recent..................................................................................... 245
Figure 6.2: Comparison of KEI component parts for World Regions with South Asian Countries (most
recent in top line, compared to 1995 bottom line for each group) ........................................................ 246
Figure 6.3: Value of Bangladesh Software Exports (US$ m) ............................................................... 274
Figure 6.4: Composition of the IT Sector in Bangladesh ..................................................................... 274
Figure 8.1: Utilization of Health facilities by Age and Gender ............................................................ 378
Figure 8.2: Percent of Household Income spent on treatment by Income ............................................ 381
Figure 9.1: Poverty headcount ratio at $1.25 a day (PPP) (% of population) in 2005 .......................... 400
Figure 9.2: Trend in Total Transfers ..................................................................................................... 421
Figure 9.3: Poverty Incidence and SSNP Recipient by Divisions ........................................................ 422

List of Boxes
Box 2.1: Additional incentives to export oriented and export linkage industries ................................... 79
Box 2.2: Product Lines of LEI ................................................................................................................ 95
Box 6.1. Converting Post Offices into Development Centers .............................................................. 289

List of Annex
Annex Table 2.1 : Cross-Country Comparison of Manufacturing Performance ................................ 125
Annex Figure 2.1 : Structure of the Bangladeshi Economy, 1973-2008 .............................................. 125
Annex Table 5.1 : Indicative Costs for Proposed Programs/Projects .................................................. 243
Annex Table 5.2 : Indicative Costs for Proposed Programs/Projects .................................................. 243
Anne 6.1x : Targets and Strategies: Connecting Citizens .......................................................... 291
Annex Table 9.13: Social Safety Net Programmes............................................................................... 416

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ABBREVIATIONS
AEZ - Agro-Ecological Zone
AIS - Agricultural Information Services
AMC- Alternate Medical Care
APP- Alternative Private Providers
APSCL - Ashuganj Power Station Company Limited
AQMP- Air Quality Management Project
ATIs - Agricultural Training Institutes
BADC - Bangladesh Agricultural Development Corporation
BAEC - Bangladesh Atomic Energy Commission
BANSDOC - Bangladesh National Scientific and Technical Documentation Centre
BAPA- Bangladesh Paribesh Andolon
BARI - Bangladesh Agricultural Research Institute
BARC - Bangladesh Agriculture Research Council
BAS - Bangladesh Academy of Science
BASIS - Bangladesh Association of Software and Information Services
BCC - Bangladesh Computer Council
BCCSAP- Bangladesh Climate Change Strategy and Action Plan
BCSIR - Bangladesh Council for Scientific and Industrial Research
BPDB - Bangladesh Power Development Board
BDCC - Buyer-Driven Commodity Chains
BELA- Bangladesh Environmental Lawyers' Association
BEPZA - Bangladesh Export Processing Zones Authority
BHWDB - Bangladesh Haors and Wetland Development Board
BIMSTEC - Bangladesh India Myanmar Sri Lanka Thailand Economic Cooperation
BIWTA - Bangladesh Inland Water Transport Authority
BIWTC- Bangladesh Inland Water Transport Corporation
BJMA - Bangladesh Jute Mills Association
BMA- Bangladesh Medical Association
BMD- Bangladesh Meteorological Department
BMDA - Barind Multipurpose Development Authority
BMDC- Bangladesh Medical and Dental Council
BMET- Bureau of Manpower, Employment and Training
BOO - Build, Own and Operate
BOT - Build, Own and Transfer
BNC- Bangladesh Nursing Council
BPC- Bangladesh Pharmacy Council
BPPA- Bangladesh Private Practitioners Association
BPC - Bangladesh Parjatan Corporation
BRMSS - Bangladesh Road Materials and Standards Study
BRDB- Bangladesh Rural Development Board
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BRTA - Bangladesh Road Transport Authority
BRRI - Bangladesh Rice Research Institute
BRWT- Buddha Religious Welfare Trust
BSCIC - Bngladesh Tourism Board
BTEB- The Bangladesh Technical Education Board
BTILS - BIMSTEC Transport Infrastructure and Logistics Study
BTN - Bangladesh Telecentre network
BWDB - Bangladesh Water Development Board
CAAB - Civil Aviation Authority
CAMS- Continuous Air-quality Monitoring Stations
CASE - Air and Sustainable Environment
CBAs - Collective Bargaining Agents
CCA - Controller of Certifying Authority
CDA - Chittagong Development Authority
CDM- Clean Development Mechanism
CDMP- Comprehensive Disaster Management Program
CDS - Coastal Development Strategy
CDS - Central Depository System
CEA- Country Environmental Analysis
CeC - Community e-Centre
CEGIS - Center for Environmental and Geographic Information Services
CERDI - Central Extension Resources Development Institute
CFW- Cash for Work
CIC - Community Information Centers
CMS - Central Monitoring and Management System
CPA - Chittagong Port Authority
CSD- Centre for Sustainable Development
CSBA- Community Skilled Birth Attendants
CSR - Corporate Social Responsibility
CZPo-2005 - Coastal Zone Policy
DAE - Department of Agriculture Extension
DAM - Department of Agricultural Marketing
DESCO - Dhaka Electric Supply Company
DGHS- Directorate General of Health Services
DGFP- the Directorate General of Family Planning
DLS - Department of Livestock Services
DMC- Disaster Management Committees
DNS - Directorate of Nursing Services
DoF - Department of Fisheries
DPHE - Department of public Health Engineering
DPP- Development Project Proposal
DSHE- Directorate of Secondary and Higher Education
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DTC - District Technical Committee
DTE - Directorate of Technical Education
DTCB - Dhaka Transport Coordination Board
DUTP - Dhaka Urban Transport Project
DYD- Department of Youth Development
EBA - Everything But Arms
ECA- Environment Conservation Act
ECA- Ecologically Critically Area
ECNEC- Executive Committee of the National Economic Council
EEF - Equity and Entrepreneurship Fund
EGCB - Electricity Generation Company of Bangladesh
ESP- Essential Services Packages
EPZs - Export processing zones
FAP 17 - Flood Action Plan 17
FCD - Flood Control and Drainage
FCDI - Flood Control, Drainage and Irrigation
FBCCI - Federation of Bangladesh Chambers of Commerce and Industry
FDI - Foreign Direct Investment
FERI - Foundation of Education Research and Education
FMD - Foot-and-Mouth Disease
FFW - Food for Work
FMRP - Financial Management Reform Program
FRB - Feeder Road type-B
FTA - Free Trade Agreement
GATS - General Agreement on Trade in Services
GC - Growth Centers
GHG- Green House Gas
GPWM- Guidelines for Participatory Water Management
GR- Gratuitous Relief
GSP - Generalized System of Preferences
GTI - Graduate Training Institute
HBB - Herring Bone Bond
HBRI - House Building Research Institute
HCFC- Hydro chlorofluorocarbons
HCR - Head Count Rate
HED- Health Engineering Department
H5N1- Highly pathogenic avian flu
HNP- Health, Nutrition and Population
HOBC- High Octane Blending Compound
HRWT- Hindu Religious Welfare Trust
HTP - High Tech Park
HVDC - High Voltage Double Circuit
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HYV - High Yielding Variety
IAT - Institute of Appropriate Technology
ICAO - International Civil Aviation Organization
ICG - International Consultancy Group
ICT - Information and Communications Technology
ICZM - Integrated Coastal Zone Management
IDDP - Intensive Dairy Development Program
IEDCR- Institute of Epidemiology, Disease Control and Research
IGA - Inter-Government Agreement
ILS - Instrumental Landing System
IMED- Implementation Monitoring and Evaluation Division
IMT - Intermittent Modes of Transport
IMMTP - Integrated Multi-Modal Transport Study
INVIL - Information Network Village
IPM - Integrated Pest Management
IPHN- Institute of Public Health and Nutrition
IPPs - Independent Power Producers
IPTV - Internet Protocol TV
IT - Information Technology
ITEC - Independent Textbook Evaluation Committee
IUCN- International Union for the Conservation of Nature
IUU - Illegal, Unreported and Unregulated
IWM - Institute of Water Modelling
IWRM - Integrated Water Recourse Management
IWT - Inland Water Transport
JBD - Jamuna Bridge Division
JMBA - Jamuna Multipurpose Bridge Authority
JRC - Joint Rivers Commission
KAM - Knowledge Assessment Methodology
KDA - Khulna Development Authority
KEI - Knowledge Economy Index
KOICA - Korea International cooperation Agency
LAPM- Long Acting and Permanent Method
LCC - Leaf Color Chart
LEI - Light Engineering Industry
LGI - Local Government Institutions
LMIS- Logistics Management Information System
LOB- Line of Business
MAMS- Mobile Air-quality Monitoring Stations
MARP- Maroondah Addictions Recovery Project
MCWC- Mother and Child Welfare Center
MDG- Millennium Development Goal
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MFA - Multifibre Arrangement
MFI - Microfinance Institutions
MIDAS - Micro Industries Development Assistance and Services
MMCFD - Millions of Cubic Feet Daily
MMR- Measles, Mumps and Rubella
MNH- Maternal and Neonatal Health
MOHPW - Ministry of Housing and Public Works
MOH- Ministry of Health
MOE- Ministry of Environment MoI - Ministry of Information
MOLGRD - Ministry of Local Government and Rural Development
MoSICT - Ministry of Science and Information and Communication Technology
MS- Motor Spirit
MSE - Micro and Small Enterprises
MTBF - Medium Term Budgetary Framework
MVO - Motor Vehicle Ordinance
NAEP - New Agricultural Extension Policy
NARS - National Agricultural Research System
NAWASIC - National Water Supply & Sanitation Information Centre
NCA - Non-Crop Agriculture
NCS- National Conservation Strategy
NCST - National Council for Science and Technology
NFE - Non-Formal Education
NGN - Next Generation Network
NHA - National Housing Authority
NIB - National Institute of Biotechnology
NIPORT- National Institute of Population Research and Training
NLTP - National Land Transport Policy
NMST- National Museum of Science and Technology
NNS- National Nutrition Service
NPA II - Second National Plan of Action
NPWA- National Policy for Women’s Advancement
NSDC- National Skill Development Council
NSTP - National Science and Technology Policy
NTCC - National Technical Co-ordination Committee
NTP - National Telecommunications Policy
NWMP- National Water Management Plan
NWPGC - North West Power Generation Company
NWRD - National Water Resources Database
NWPo- National Water Policy
ODC - Over Dimensional Cargo
OECD - Organisation for Economic Co-operation and Development
OMS - Open Market Sales
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OPEX - Operational Expenditure
PC - Privatization Commission
PDBF- Palli Daridra Bimachan Foundation
PDCC- Producer-driven commodity chains
PESP- Primary Education Stipend Programme
PFDS- Public Food Distribution System
PKI - Public Key Infrastructure
PKSF- Palli Karma-Sahayak Foundation
PMMU- Program Management and Monitoring Unit
PSIG - Private Sector Investment Guideline
PWD- Public Works Division
QR - Quantitative Restrictions
R&D - Research & Development
RACON - Radar Transponder Beacon
RAM - Road Asset Management
RAMS - Road & Bridge Asset Management System
RDA - Rajshahi Development Authority
RDA- Rural Development Academy
REB - Rural Electrification Board
RHD - Roads and Highways Department
RMG - Ready Made Garments
RMP - Road Master Plan
RNFA- Rural Non-Farm Activities
ROB - Roads Over Bridges
ROIP - Road Overlay and Improvement Project
ROSC - Reaching Out-of-school Children
RR - Rural Roads
RRI - River Reserceh Institute
RTC - Regional Technical Committee
SASEC - South Asian Sub-regional Economic Cooperation
SBA - School based assessment
SCITI - Small and Cottage Industries Training Institute
SEC - Securities and Exchange Commission
SEDA - Sustainable Energy Development Authority
SESIP - Secondary Education Sector Improvement Project
SEZ - Special Economic Zones
SDF - Sector Development Framework
SICT - Support to ICT Task Force Project
SLIP - School-Level Improvement Plans
SMF- State Medical Faculty
SOE - State-Owned Enterprises
SP - Service Provider
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SPARSO - Bangladesh Space Research and Remote Sensing Organization
SPS - Sanitary and Phytosanitary
SRDI - Soil Resource Development Institute
SRI - System of Rice Intensification
SRMT - Regional Multi Modal Transport Study
SRMTS - SAARC Regional Multimodal Transport Study
SSWR - Small Scale Water Resources
STD- Sexually Transmitted Disease
STEP - Support to Training and Employment Program for Women
STP - Strategic Transport Plan
SWAp- Sector-Wide Approach TAR -Trans Asian Railway
TBIs - Technology Business Incubators
TBT - Technical Barriers to Trade
TFYP - Third Five Year Plan
TB- Tuberculosis
TBA- Traditional Birth Attendants
TIC - Technology Innovation Centre
TQI - Teaching Quality Improvement
TRIMS - Trade-related Investment Measures
TRIPS - Trade-Related Aspects of Intellectual Property Rights
UDD - Urban Development Directorate
UNCRD- United Nations Centre for Regional Development
UET - University of Engeneering and Technology
UHC- Upazila Health Complex
UPCs - Union Parishad Complexes
UPHC- Urban Primary Health Care
URCs - Upazila Resource Centers
USG - Urea Super Granules
VAT - Value Added Tax
VAW- Violence against Women
VCT- Voluntary Counseling and Testing
VDP- Village Development Party
VGD - Vulnerable Development program
VIC - Vehicle Inspection Center
VTE - Vocational and Technical Education
WARPO - Water Resources Planning Organization
WID- Women in Development
WIPO - World Intellectual Property Organization
WMIP- Water Management Improvement Project
WSS - Water Supply and Sanitation
WZPDC - West Zone Power Distribution Company

xvi
 CHAPTER 1: STRATEGY FOR RAISING FARM
PRODUCTIVITY AND AGRICULTURAL
GROWTH
INTRODUCTION

Although the share of agriculture in gross domestic product (GDP) has declined from over half
at the time of independence to around one fifth currently, it remains the predominant sector in
terms of employment and livelihood, with about half of Bangladesh’s workforce engaged in it
as the principal occupation. Agriculture is the principal source of food and nutrition. Therefore
the level of farm production and prices are a key determinant of poverty and human welfare.
Agriculture also contributes significantly to export earnings of Bangladesh and agricultural
output is used as an important source of raw materials of many industries. Therefore, the
importance of agriculture sector in generating employment, alleviating poverty and fostering
growth is needless to mention.

Agricultural growth has accelerated from less than 2.0% per year during the first two decades
after independence to around 3.0% during the last decade. Despite such a steady growth in
agriculture as well as in food production, Bangladesh has been facing persistent challenges in
achieving food security. This is mainly due to natural disasters and fluctuations in food prices
from the influence of volatile international market for basic food items. Sudden increase of
price of staple food such as rice and flour erode the purchasing capacity of the poor people.
Access to food will continue to depend on comprehensive economic development including
faster growth in industry and service sector of the economy. But since almost half of the labor
force still depend on the agricultural sector for employment, growth of this sector and
favorable terms of trade for agricultural commodities are crucial for increasing incomes of the
low-income people and to expand their capacity for accessing food. A rapid agricultural
growth will sustain high growth of the economy with better capacity to reduce poverty through
enhancing rural wages, creating synergies for diversifying the rural economy, and enabling the
supply of low-cost food to improve nutritional status and food security of the people.

Encouraging agricultural growth requires various policies ranging from applying new
technology and extension services to providing credit to small farmers. The past growth in
agriculture was helped by the new HYV (High yielding variety) technology, particularly in
rice, in which both the state and the market played important roles. The Government would
continue its pro-active role in delivering key public goods in agriculture, particularly in
improving the ability of farmers to adopt new technology and providing appropriate mix of
incentives to pursue profitable operations. Efforts would be made to ensure preservation of
indigenous knowledge with respect to seeds, plants and herbs, where tapping the traditional
1
knowledge base of both rural men and woman would be important. Particular attention would
be given to develop and adopt technologies and improved agricultural practices in ecologically
vulnerable areas such as saline prone areas and flood and drought prone locations. In
recognition to women’s various contributions in farm productivity (fisheries, livestock, poultry
etc.) and agricultural growth (pre and post harvesting, field crop production) special measures
would be taken to increase women’s participation in these sectors.
Bangladesh has made significant progress in food grain and especially rice production but
ensuring food security of the people of Bangladesh remains a daunting challenge. The
National Food Policy and its Plan of Action identify the objectives to be fulfilled so as to
ensure food security, extending the concept of food security well beyond that of food
availability. In this context, agriculture contributes to food security by making enough varied
and nutritious food available and by providing employment thus ensuring economic access to
food. “The 2011 Country Investment Plan (CIP): A roadmap towards investments in
agriculture, food security and nutrition” has been formulated within the context of the SFYP to
help focus Government, DP and non-Government interventions on priority areas.

PERFORMANCE OF AGRICULTURE SECTOR

Agriculture sector is comprised of four sub sectors, e.g. crops, forestry, livestock and fisheries
with crop sub sector being the predominant one. In spite of the gradual decline of the relative
importance of crop sector in agriculture and in national economy, it still has remained the most
important sector of agriculture. More importantly, the crop sector provides staple food such as
rice and wheat, and other daily necessities like pulses, oil, sugar, vegetables, spices, and fruits.

Table 1.1: Growth Performances of Agriculture Sub-Sectors

FY80-90 FY91-00 FY00-05 FY05-09 FY10 FY11(P)
(Growth as % Change)
Agriculture(A+B) 2.5 2.8 3.3 4.2 5.2 5.0
A. Agriculture and Forestry 2.6 1.5 3.6 4.2 5.6 4.8
i) Crops & horticulture 2.7 1.1 3.2 4.0 6.1 5.0
ii) Animal farming 2.1 2.5 4.5 4.4 3.4 3.5
iii) Forest and related services 2.7 3.5 4.7 5.4 5.2 5.4
B. Fishing 2.3 8.1 2.6 4.1 4.1 5.4
(Share as % of GDP)
Agriculture(A+B) 31.2 26.7 23.9 21.4 20.3 20.0
A. Agriculture and Forestry 26.5 21.4 18.5 16.6 15.8 15.5
i) Crops & horticulture 20.2 16.1 13.7 12.0 11.4 11.2
ii) Animal farming 4.0 3.4 3.0 2.9 2.7 2.6
iii) Forest and related services 2.2 2.0 1.9 1.8 1.7 1.7
B. Fishing 4.8 5.3 5.4 4.8 4.5 4.4
Source: Bangladesh Bureau of Statistics

2
Non-crop agriculture (livestock, fisheries and forestry) also plays a significant role in terms of
employment generation and contribution to GDP. Although livestock accounts for only 3 per
cent of total GDP, it employs about 20 per cent of rural labor force. Fisheries sub-sector
contributes about 5 percent of total GDP and employs about 13 per cent of rural labor force.
Livestock sub-sector contributes output for both production and consumption. However there
exists a gap between requirement of livestock products and their current levels of production
and, this gap is expected to widen further due to increase in per capita income and change in
food consumption pattern.

Fisheries sector contributes 4.4 per cent of total GDP and 22 per cent of agricultural GDP. The
small-scale open water capture fisheries which was dominant in the 1970s has given way to
close water culture fisheries, which is now playing an important role in the development of the
sub-sector.

Forestry sector contributes about 1.8% of the total GDP. Forests also play an important role in
protecting watersheds, irrigation and hydraulic structure and also in keeping the rivers and
ports navigable and protect coastal areas from natural calamities. The role of forest in
protecting the environment from pollution and its contribution towards bio-diversity is
immense. In addition, the participatory social forestry contributes towards rural poverty
reduction. For example, in the last three years, out of total sale proceeds of timber and fuel-
wood about 308 million taka has been distributed to 23,561 participants.

Bangladesh has achieved remarkable progress in agriculture since her independence in 1971.
Within crop sub-sector, food grain, particularly rice crop dominated country’s agricultural
scenario in terms of both cropped area and production, claiming a share of 74 per cent and 54
per cent respectively in 1996/97. There has, however, been shift in the composition of
agriculture over the past few years as indicated by gradual decline in the share of crop
agriculture and increase in the share of non-crop agriculture (NCA).

In crop agriculture, Bangladesh has made steady progress in the post-independence period.
The cropping intensity increased from 148 to 181 percent. Food grain production although
increased substantially over the years, following the introduction of high yielding varieties
(HYV) and application of modern inputs like fertilizers and pesticides; but its dependence on
weather results in fluctuations in production. Wide fluctuations in production leads to large
instability in food grain prices having serious implications for household food security and
also for the welfare of the people.

For over a decade, a wide range of policy reforms have been implemented. Few of these are
privatization of input distribution, input and food subsidy, import liberalization and a
broadening of the scope of private investment in agriculture. In recent years, the coverage of
policy reforms in the agriculture sector has substantially expanded to include minor irrigation
equipment, agricultural machinery, seeds and agricultural trade.

3
KEY CHALLENGES

The myriad of existing policies are generally compatible in terms of their avowed goals of
rapid poverty reduction, increasing productivity and profitability of farming, creating income
and employment opportunities, especially for the rural population. The major thrusts of these
policies are largely consistent with the MDGs as well as the strategies and future policy
priorities of agriculture and rural development policy matrix suggested in the previous plan
documents. However, there are some generic areas of concerns. Those are as follows:

Dominance of cereal food production: The National Agriculture Policy, 1999, National
Agriculture Policy Plan of Action 2004, APB and other major crop sector policy documents
mainly focus on food production, especially rice production, giving lesser attention to non-
cereal crops i.e. vegetables, fruits and flowers. As one would expect, policy prescriptions for
input distribution and input levels, extension services, credit delivery and output marketing are
directed to major cereal food crop, rice and not much to wheat.

Inadequate progress with diversification and commercialization: The policy documents

mention diversification and commercialization of agriculture as a common objective, but very
little understanding is given with respect to relative profitability of competing crops, physical
and location specific conditions for non-crop enterprise, supply chain of high value products
and provision for processing, storage and marketing activities.

Lack of modernization of soil and water tests: Soil tests for proper fertilizer use and water
quality tests for fish culture are crucially important interventions. The concerned policies
mention these casually to imply that the government should do these, but there does not seem
to be much understanding of the recent trends that the private sector has already taken up soil
tests (with Catalyst support) and water test by as business ventures, for example by an NGO,
Shushilon.

Lack of modern form of production-contract farming and value chain: The policies being
reviewed conceive agriculture as individualistic production system, although this is becoming
economically and technically unfeasible for increasingly large number of small and marginal
farmers due to rapid decline in average farm size. Increase in number of farms vis-à-vis rapid
loss of cultivable land is recognized in the documents, but there are no reflections on or
contemplation about the emerging new forms of farming e.g. contract farming by the private
sector for high value products like poultry, vegetables, aromatic rice, milk and so on.

Absence of farm and non-farm linkages: The most conspicuous shortcoming of all the
policy documents is their silence over the growing non-farm sector development. Even the
most recent policy documents, e.g. APB, avoid any analysis of linking the growth of farm
productivity with development of non-farm activities.

In addition to the above mentioned issues, some other constraints in this sector are:
• Absence of demanding technologies to co-opt with climate change,
4
• Unstable market price of agricultural products, which is a barrier for farmers to select
crops for cultivation in the following season/year,
• Very little stress to agro-based industrialization,
• Depletion of soil health/soil fertility,
• Unusual depletion of underground water table,
• Unwise development of infrastructures (dams, roads etc) blocking drainage,
• Non-zonal based cultivation and lack of development of market chain,
• Overlapping of irrigation units with less command area, causing huge loss of underground
water and resulting in depletion of ground water table.
• Overdose of chemical fertilizer by the farmer is a threat to soil health.

CROP SECTOR

Performance of Crop Sector

Rice, the dominant staple food occupies over three fourths of cropped area of the country. The
other major crops are jute, wheat, potato, different types of pulses, chilies and onions and
vegetables, sugarcane, tobacco and tea. In recent years, the cropped area under boro rice,
wheat, maize, potato and vegetable has increased.

Since independence, rice production has tripled from 11 million tonne (milled rice) to about 32
million tonne. Growth in rice production was 2.8% per year in the 1980s, and 3.5% per year
since 1990/91. Most of this growth has occurred since late 1980s, through adoption of
improved rice varieties supported by rapid expansion of ground water irrigation (Figure 1.1).
Over 80 percent of the increase in rice production during the last two decades has come from
the expansion of irrigated boro rice in the dry season, with reallocation of land from low-
yielding rain fed aus rice. Over three-fourths of the rice area is now cropped with improved
varieties developed by Bangladesh Rice Research Institute (BRRI) and Bangladesh Institute of
Nuclear Agriculture (BINA) in collaboration with international research centers.

5
 Figure 1.1: Trends in Rice (Paddy) Yield in Bangladesh: FY 1971/72-FY2008/09

Source: Bangladesh Bureau of Statistics

Wheat, the minor food staple also had a respectable growth till the late 1990s, but has recently
given way to maize. This shift has occurred mainly due to favorable agro-ecological
environment for maize that gives higher productivity and a stable and expanding market for
maize as feed for the expanding poultry sector. The production of maize was negligible till the
end of 1990s, but has grown very fast in the current decade and has now overtaken that of
wheat. Since maize is used as poultry feed, the substitution of wheat by maize has had a
negative impact on the supply of staple food for people and has put more pressure on rice to
meet the growing demand.

Over the last two decades significant progress has also been achieved in the production of
potato and vegetables. The major problem faced by potato and vegetable production is the
volatility in prices leading to large year to year fluctuations in production. It will be difficult to
sustain the growth of production of these high-value and labor- intensive crops unless
investment is made in the processing and storage to stagger marketing of the crops throughout
the year to match the demand that remains stable across the season. In addition, it is also
important to exploit international market for the surplus after meeting domestic demands.
Penetration in the world market for vegetables is however difficult due to phyto-sanitary
regulations and concerns regarding food safety. The production of other crops including
pulses, oilseeds, jute and sugarcane has either remained stagnant or has declined over time.
The production of oilseeds and jute has picked up in recent years due to favorable markets and
due to some progress made in recent years in the development of higher yielding varieties, and
identification of favorable agro-ecological niche for these crops.

Major drivers of crop production have been development and diffusion of improved crop
varieties, and more effective water management, particularly expansion of irrigation
6
infrastructure (mostly shallow tube well based groundwater irrigation). In addition to the
modern varieties of different crops, developed in the national agricultural research systems, a
few Indian varieties have also moved into Bangladesh through farmer to farmer exchange.
Farmers have also started growing hybrid rice, the seed of which is imported from China. In
recent years some private sector farms have started producing seeds of hybrid rice and maize
within the country through contract farming. Gradual adoption of these improved varieties by
replacing low-yielding traditional varieties have contributed to increase in yield, reduction in
per unit cost of production, and increased profitability in farming. The technological progress
has been supported by public and private investment for the infrastructure for irrigation; flood
control and drainage, because the optimum exploitation of the yield potential of improved
varieties depend on good water control. The area irrigated has expanded rapidly since 1989
with the liberalization in the import of diesel engines and reduction in import duties and
withdrawal of restrictions on standardization of irrigation equipment. This has facilitated the
cultivation of dry season irrigated rice farming known as boro rice.

Sector Specific Challenges

Dependence on imports: Despite the progress made over the last two decades, Bangladesh is
yet to achieve self-sufficiency in food production as it is a net importer of both rice and wheat.
It is also a net importer of pulses, edible oils, spices, fruits, sugar, milk and milk products. The
import bill on account of food has grown at more than 10 percent in the current decade, and
now accounts for over one-fifth of the export earnings of the country. The volatility of prices
in the world market for these basic necessities that is transmitted in the domestic market affect
the food security of the low-income households. The SFYP would emphasize for import
substitution of these crops looking at their competitive edge through promotion of crop
diversification.

Food intake and nutritional imbalance: The availability and access to food are major
elements of food security. The per capita intake of rice has increased over time and reached
the level of 477 gm per person per day for rural area and 389 gm for urban area. The intake of
potato and vegetables has also increased over time and has reached almost 250 gm per person
per day, close to the recommended norm for achieving balance nutrition. The level of
consumption of cereals and vegetables has increased over time and the gap in consumption for
the poor and non-poor has narrowed down. However substantial gap remains between the
consumption level of quality food items such as pulses, oils, fish and livestock products and
level of intake has remained substantially below the level recommended by nutritionists for
achieving balance nutrition. In addition, price of pulses, oils, fish and meat has increased at a
much higher rate than that of rice, indicating growing demand-supply imbalance for non-
cereal food items. The Sixth Plan would emphasize for faster growth of non-cereal food
products to address the issue of unbalanced diet of the poor.

Volatility of prices of food items: In recent years, the volatility of prices has increased which
is a major concern for poor consumers. Several studies have predicted that volatility in food
7
prices in the international market is likely to continue indicating that more reliance on
international market for food commodities will have negative consequences on the food
security situation in Bangladesh. Therefore, the Sixth Plan emphasizes at reducing the
dependence on the world market for basic necessities such as rice, pulses, oils and sugar to
overcome nutritional imbalance and to reduce volatility in prices of these commodities in the
domestic market.

Growth of population and rapid urbanization: In order to meet the demand for food for the
growing population, production of cereal must increase by over 300,000 tonnes per year. The
expected growth of urbanization requires marketed surplus to increase at a fast rate to feed the
urban population. The generation of this marketed surplus will depend on sustaining high
levels of profitability in farming and maintaining a favorable terms of trade for agriculture.
The population growth will be the main driver of the increase in demand for rice. But the
demand for other food items continues to increase much faster than the growth of population
due to strong income growth induced demand (high income elasticity) of non-cereal food
items and recent acceleration in the growth of per capita income (over 4.5 percent per year)
which is expected to accelerate further in future, In addition, diversification of diet in favor of
non-rice food items associated with urbanization and income growth is also playing important
role for this increase in demand.. Increasing the supply of food to match the demand from
domestic production will however be difficult due to several factors:

Decreased Crop Area: The natural resources, land and water and soil fertility, available for
agricultural production has however been declining. It is reported that cultivated land has been
declining by almost one percent per year due to its demand for increased habitation, industrial
and commercial establishment, transport infrastructure, river erosion, and intrusion of saline
water in the coastal areas. Therefore the land available for crop production has been declining
and the trend will continue. The increase in crop yield will have to be targeted at a faster rate
that the required growth in supply.

According to the Department of Agriculture Extension (DAE) per hector production of rice is
about 7 tonne in the research field whereas at the farmer’s field it is less than 4 tonne. In this
context, if the gap of yield of rice could be minimized, total production of rice will be
increased without expanding cultivable area.

Decreased Soil Fertility: Soil fertility has declined due to high cropping intensity, unbalanced
or over use of chemical fertilizers and less or no use of organic matter. The exploitation of
ground water for irrigation for dry season rice farming (boro) has gone beyond the capacity of
annual recharge of aquifers, with adverse effects on the supply of safe drinking water. The
irrigated area has expanded to over 5.5 million ha out of 8.0 million ha of cultivated land, and
over three-fourths of the area is irrigated with ground water, mostly by privately installed
shallow tube wells. The arsenic contamination of drinking water in large parts of the country is
often blamed to exploitation of ground water for irrigation with shallow tube wells. For
sustainable development the dependence on ground water for further expansion of irrigation
8
infrastructure must be reduced. The SFYP would emphasize for surface water irrigation which
will need massive public sector investment.

Detrimental Effect of Climate Change: Bangladesh is projected to be most seriously affected

by climate change and sea level rise. The land available for crop farming in the large coastal
belt is going to be gradually reduced due to inundation from sea water and intrusion of saline
water inwards. The risk in rain fed rice farming will further increase due to erratic monsoons
and increased incidence of floods and droughts. Due to high risks farmers will continue to use
inputs at sub-optimal levels in crop farming in the monsoon season. The high risk will be a
constraint to adoption of improved crop varieties that are input-intensive.

Fragmented Land Structure: The agrarian structure of Bangladesh is dominated by small and
tenant farmers and scattered holdings. Despite rapid rural urban migration, the number of farm
households is expected to increase and the size of farm is getting smaller. The farms with
holdings of over 3.0 ha were only 300,000 in 1996 (out of 11.8 million farms); their number
has further declined to 171,000 by 2005. The medium and large farms are investing the surplus
for non-farm activities, leaving farming to agricultural laborers and marginal farmers. As a
result the tenancy market has been expanding. The area under tenant farming has increased
from 23% of the cultivated land in 1996 to 38% in 2005 which is the main factor behind the
vast increase in the number of marginal farmers.

Farmers continue to face large fluctuations in farm gate prices. The price of most farm produce
remains low at harvest that helps market intermediaries and large farmers to mobilize most of
the farm surplus. The rapid migration to urban areas and oversees and an inactive land market
lead to increasing concentration of land in the hand of the absentee landowners. The large and
middle farmers are increasingly leaving farm in favor of non-farm activities in rural and urban
areas and getting the land cultivated by agricultural laborers and marginal landowners with
unviable tiny holdings. The exploitative rental arrangements, the inability to mobilize savings
and credit to finance working capital needs, and lack of information and knowledge may act as
constraints to adoption of improved technologies and investment in agricultural enterprises. In
addition, the market for imported food grain has also become unreliable with governments in
exporting countries imposing export bans to protect the interest of their own people. The
prices of the food items in the world market fluctuate widely making the domestic market
highly volatile in case of heavy dependence on imports. Sudden increase in prices emanating
from the connectivity with the world market imposes hardship on low-income consumers.

Constraints to raising productivity: Future growth and raising productivity in crop

agriculture could come from three main sources: (i) use of additional inputs (land, fertilizer,
irrigation water); (ii) productivity gains resulting from technical change or removing market
distortions; and (iii) shift to higher- value crops. In this context the challenges are as follows:

Sustained Growth Through The Use of Additional Inputs Seems Limited: Additional land
could be brought under crops through increases in actual area cropped (conversion of non-crop
9
or non- agricultural land and restoration of degraded land) and increases in cropping intensity.
But rather than bringing more land under crops in the future some contraction is an active
possibility. In terms of cropping intensity, the present rate of 1.8 compares favorably with
other Asian countries, including India (Punjab) at 1.78 and Pakistan at 1.25 though it is below
Vietnam and Java, Indonesia.

Following removal of restrictions on irrigation, on pump imports and on marketing of

fertilizers and crops, 206000 new hectares were added annually between 1978-92, more than
double the expansion of the previous five years. Current estimates suggest that during the next
two decades, 150,000 – 200,000 new hectares per year could be brought under irrigation,
making it a major source of prospective agricultural growth.

Productivity enhancing infrastructure includes markets, roads, utilities (e.g. water, electricity)
and communications. Investments in these can improve efficiency by cutting intermediation
and transaction costs, leading to lower input prices and cheaper technology.

Productivity gain can come from two sources – technical change and correction of market
distortions. Technical progress resulting in improved seeds (HYV) was responsible for
doubling yields per acre during the 1970s. Whereas 50% of cropped area today is under HYV,
with current rates of conversion, almost all suitable land is expected to come under HYV
within the next decade or so. But agricultural research has been a neglected area largely the
result of “brain drain” of trained professionals to research centers overseas. This trend needs to
be reversed by creating an appropriate environment and providing the right incentives.

After the reforms of the 1980s, Bangladesh’s agricultural economy is relatively free of market
distortions from intrusive public interventions. Today, trade protection of agricultural products
is minimal though there remains an anti-agriculture bias in existing industrial protection
policies. Domestic producer prices of rice and wheat have been closely related to world prices.
Understandably in a country with high internal transport costs, prices have long fluctuated
between import and export parity prices.

Prospects of Diversification to High- Value Crops

Bangladesh given a receptive market and the right policy environment could have a
comparative advantage in certain high-value crops, including traditional fruits and vegetables.
The future of non-rice crops will depend on the removal of a number of constraints that
currently inhibit their expansion, including comparatively less attention given to development
of appropriate technology for non-rice crops and inadequacies of market infrastructure and
services. Food processing e.g., pineapple canning, mushroom growing and dried food
production also has considerable potential, provided quality control can be imposed. To ensure
that their production and export potential are fully realized, the government needs to continue
its current commitment to investing in manufacturing and infrastructure.

10
Jute is the major fibre crop of the country. Potential exists for the fibre to increase its
contribution to the economy through productivity increases and diversification. The share of
raw jute and jute goods in the total exports of the country has been increasing with increased
world demand for nature fibre. In this situation, special measures will be taken during the Plan
period to encourage farmers to further intensify jute production in order to satisfy domestic
and increased export demand. To enable jute to compete with synthetics, emphasis will be
given to related agricultural and technological research efforts.
In addition to the above mentioned issues, there exists several other challenges in crop sub-
sector: (a) adultered agricultural inputs marketing by unscrupulous traders, (b) abrupt
depletion of soil organic matter, (c) insufficient discharge of underground irrigation water at
the peak demand hours of boro crop due to depletion of ground water table, (d) intrusions of
saline water at the ground water table, (e) insolvency of disaster victimized farmers to invest
in crop production, (f) weak-matching of explored technologies with climate change, (g)
scarcity of seasonal farm labors sometimes even at high wages, (h) flash flood and drainage
problem, (i) low quality of agricultural inputs (seeds, feeds, fingerlings, breeds, broods,
fertilizers and pesticides), (j) degradation of land (salinity, erosion, water logging etc.), (k)
farm gate price support for the producers etc.
SFYP Targets and Objectives for Crop Sub-Sector
Building on past progress, the core objectives of the Sixth Plan are:

• To attain self-sufficiency in food grain production along with increased production of

other nutritional crops;
• To increase productivity and real income of farming families in rural areas on a
sustainable basis;
• To ensure equal wage for equal work for women-men labor at agriculture;
• To encourage export of agricultural commodities, particularly vegetables and fruits
keeping in view domestic production and need;
• To promote adoption of modern agricultural practices in drought, submergence and saline
prone areas;
• To encourage research on adaptation to climate change, proper use of genetically
modified technology in agriculture.
• To gradually shift the main HYV, irrigation-fed Boro rice production to the Southern
areas and to utilize new salinity, submergence, and other Stress tolerant varieties and also
to utilize abundant surface water for irrigation;
• To utilize the irrigated north-eastern uplands to grow more high value cash crops like
wheat, maize, corn etc. and horticulture products;
• To emphasize on yield gap reduction and also to emphasize on maximization of yield in
Aus and Aman crops with similar care as the Boro cultivation for ensuring self-
sufficiency in food grain;
• To strengthen farming system/cropping system/whole farm approach based technology
transfer;
11
• To increase production of jute, measures have to be taken to improve jute variety and
retting system to obtain quality fibres;
• To include oil crops and spices for increased production;
• To encourage research and extension for the promotion of pulse crop;
• To bring coastal and hilly areas under intensive cultivation;
• To ensure sustained agricultural growth more efficient and balanced utilization of land,
water and other resources;
• To encourage comparatively large farm to graduate into commercial farming;
• To promote the use of modern technologies with the help of ICT;
• To form cooperatives and to construct special growth center only for the actual growers to
ensure fair price;
• To strengthen agricultural mechanization for enhancing production;
• To develop crop zoning market based agriculture on the basis of AEZ.
• To restore germplasm specially for minor fruits;
• To ensure quality seed at farmer’s level through the development of community based
seed production, storage, and dissemination system;
• To strengthen decentralized knowledge based extension system.

SFYP Policies and Strategies for the Crop Sub-sector

For achieving the targets of the Sixth Plan, following strategies and policies should be
adopted:
• Achieving self-sufficiency in the production of rice, as we can no longer depend on the
world market for meeting our needs. Studies show that we have comparative advantage in
rice production on the import parity basis. In addition to rice, increased production of
wheat will also be given priority. For increasing crop production food inter-cropping will
be emphasized.
• Diversification in food production must address the challenge of achieving balanced
nutrition. To achieve this objective we must adopt system-based rather than crop based
planning for crop sector development. We must also use the rich information on agro-
ecological zoning for identifying areas suitable for different crops and also use it for area
based approach to development.
• For crop intensification, the coastal zone, the Sylhet region and the char areas must receive
priority in crop sector development plans.
• The short winter season, November to February, should be kept for the production of non-
rice crops, as this season is ecologically favorable for growing the high-profit non-rice
crops. The remaining period could be used for growing two/three rice crops, special
emphasis on Aus paddy for meeting our rice needs. It will require development of shorter-
maturity drought- and submergence-tolerant rice varieties. This strategy will also help
reducing dependence on expensive ground water irrigation.

12
• For further increase in productivity of land we must continue to focus on expansion and
efficiency of R&D system. We must exploit the potential of hybrid rice technology for
achieving 20 percent increase in yield and should further explore shifting the yield
potential for the favorable ecosystem where technological progress has reached the
plateau. In addition, we need to develop and deploy stress tolerant varieties (salt-tolerance,
submergence tolerance, and drought tolerance for rice, and heat tolerance for wheat).
• Further potential for increase in yield through reducing yield gap for existing technologies
must be explored. There are possibility of substantial increase in yield through use of
better quality seeds, efficient management of seed bed, and the adoption of the System of
Rice Intensification (SRI) that includes use of young seedlings, one seedling per hill, larger
spacing, wet and dry irrigation system, use of compost and farm yard manure, direct
seeding etc. The plan also emphasizes the use of technologies like Urea Super Granules
(USG) and Leaf Color Chart (LCC). Agricultural Information Services (AIS) will be used
to communicate weather forecasting information for agricultural producers.
• To meet up scarcity of quality jute seeds BADC should undertake seed production
programmes like rice and wheat.
• Appropriate land reforms such as (i) ceiling of rents for the fixed rent system, (ii)
distribution of Khas land among landless and non-viable marginal farmers where ever
feasible, (iii) imposition of restriction on conversion of prime agricultural land for non-
agricultural uses, (iv) hourly rental system for irrigation equipment instead of crop-share
based or season-based fixed irrigation charge, and (v) computerization of records of
landownership and land transfer, etc must be attempted.
• The information and communication technology could help information dissemination
among farmers Weather forecasts could be made available on a regular basis through T.V.,
radio, community radio, agricultural information and communication center, and cell
phone systems. Bangladesh Space Research and Remote Sensing Organization (SPARSO)
can play a vital role in this regard.
• The reliability of official data on area under different crops is often questioned. In order to
get reliable data for policy making, a project for accurate estimation of area under different
crops either through satellite imagery or through plot-to plot enumeration may be
undertaken during the Sixth Plan period.
• In the existing agricultural marketing system of Bangladesh there are many middlemen
active in different stages of marketing chain. As a result, on one hand the producer does
not receive fair price for their agriculture product, on the other the consumer also has to
pay extra price. In order to ensure fair price for both the growers and final consumers
through a competitive market environment, it is necessary to reduce the number of
middlemen from the marketing chain. In this context, formation of cooperative for the
growers and construction of special growth center only for the actual growers could be a
way out of this problem.

13
• In order to meet the growing demand of additional food for the increasing people of the
country emphasis should be given in utilizing the unutilized hoar land of the north-east
part of Bangladesh.
• Strategy, policy and action should be formulated to convert the single crop land into
double crop land, double crop land to triple crop land.
• Policies in favor of continuation of subsidization to agricultural inputs e.g. electricity,
diesel, fertilizer etc should be emphasized.
• Strategies should be directed towards massive use of USG rather than spilled urea and to
encourage use of non-urea (use of balanced fertilizer).
• The plan emphasizes on the importance of farm mechanization.
• Policies to construct new food storage facilities to handle 2.8 to 3.3 million tonnes of food
grains annually will be emphasized. In addition, food storage capacity per unit of land will
be increased by adopting new technologies like constructing vertical silos and bulk
storage.
• The plan considers the importance of land reclamation in coastal areas and reclamation of
cultivable land in water logging areas and emphasizes on the intensive cultivation of saline
tolerant varieties particularly in Rabi season and will take necessary steps in this context.
In addition, the plan also emphasizes policy strategy on protecting agricultural land from
inundation, river erosion and other productive purposes.
• It is important to ensure increased use of quality seeds for all crops and stop trading of
adulterated inputs.
• Fragmented land structure is a hindrance to mechanization of agriculture in Bangladesh.
On the other hand, mechanization would generate surplus labor released from agriculture,
which would need employment elsewhere. Policies to engage such laborers will be taken
into account.
• Special support for cultivation to the disaster victimized small and marginal farmers;
• To ensure equal wage for equal work for women-men labour at agriculture
• Measures to encourage surface irrigation e.g. dredging of rivers, canals, sluice gate etc.
will be taken.
• In order to maintain soil fertility use of organic fertilizer will be popularized.
• In order to meet the demand for additional food for the increasing people, emphasis will be
given to utilize the unutilized haor land of the North-Eastern part of Bangladesh.
• The plan emphasizes on the policy of formation of cooperative for the growers and
construction of special growth centers so that the growers get fair price. Men and women
growers have equal access to these centers and equal opportunity related to market access.

14
Specific Strategies under Crop Sub-sector

Agricultural Inputs -- Seeds: At present, BADC, as per seed policy 1993, concentrates its
efforts on the production of HYV seeds of paddy, wheat, potato and jute in the seed farms and
also uses farmers to multiply seed on contract basis. Production program of all other crops
beyond foundation seed will be done by contract growers. With the introduction of seed
policy, emphasis has been given to private seed grower’s development. However, the public
sector will conduct basic scientific research, support or conduct breeding work for self-
pollinated and minor crops for greater suitability to divergent agro-ecological zone. Public
sector will also carry out program for training and support services for private research and
development, variety testing and registration, plant material inspection and maintaining
germplasm, supporting seed associations and promotion of farmer or community-based seed
program. The concerned agencies under the MOA will be further strengthened in order to
ensure quality of seed at all stages of its production — breeder, foundation and certified seed.
Emphasis will be given on creating facilities and infrastructure support for hybrid seed
research, marketing and development. Farmers will be given training and technical assistance
to extend improved methods of seed production, testing and storage.

Protection of Plant: Actual plant protection activities are in the private hands. However, the
public sector programs are confined to qualitative and quantitative aspects of plant protection:
pest’s surveillance, monitoring and early warning against pest attacks, advisory service to
farmers, traders and others dealing with pesticides and quality control of pesticides marketed
by the private sector. In the Sixth Plan period, the integrated pest management (IPM) program
will be intensified and expanded in order to safeguard crops from pest and combat
environmental degradation due to pesticide uses. Agricultural extension workers are
responsible for providing advice to the farmers on appropriate plant protection measures.
Within the extension services, the plan will emphasize on controlling maximum residual limit
and marketing of adultered fertilizer and pesticides. Collaboration among the local
government representatives, extension workers and the NGOs will be sought to expand IPM
program. Farmers will be given training in the use of different pesticides through
demonstration.

Mechanization of Agriculture: There is a serious dearth of animal draft power to cater for the
growing needs of an expanding modern agriculture. The available animal draft power is
inefficient and unreliable. As against this, agriculture mechanization can help in improving
productivity, reducing cost of production, increasing efficiency, increasing input use (water,
seed, fertilizer, labor) and achieving timeliness of crop production operations. Agricultural
mechanization is also required for quick turn-over time and high input use. There is a need for
continuous development of more efficient and less costly equipment so that farmers can
benefit. Since agriculture is still the mainstay of the economy, promotion and development of
agro-related metal working industries to provide support to agricultural production is a major
concern. Selective mechanization based on traditional devices conducive to productivity will
be adopted. In the context of market economy, emphasis will be given to the collaborative role
15
of public and private sectors in technology development and its diffusion. An appropriate
policy framework for sustainable development of farm machinery manufacturing will be
pursued in the Sixth Plan period.

Rural Infrastructure: Empirical evidence from Bangladesh and other countries suggests the
critical role of rural infrastructure for farm productivity, both crops and non-crops.
Bangladesh has made substantial progress in improving irrigation facilities. Progress has also
been made in improving the availability of electricity in the rural areas and also strengthening
farm-to-market rural roads. Yet, there is a huge unfinished agenda. Accordingly, the Sixth
Plan will put strong emphasis in further developing the rural infrastructure.

Agricultural Prices and Marketing: Prices of agricultural produce are determined by market
forces. The main effort will be to improve the efficiency of agricultural marketing to reduce
market distortions and the cost of marketing, and to ensure that farmers get proper price for
their produce. Regarding rice, the policy approach will be to broadly align domestic prices
with international prices on a long-term trend basis.

With a more intensive system of crop production and increasing emphasis on diversification,
marketing problems, particularly with perishable crops, have already been multiplied and are
likely to multiply further unless necessary steps are taken. Marketing costs are already high
because of inadequate infrastructure, high price risks and the lack of credit to traders for
marketing activities. Among the vast number of primary and secondary markets in the country
(about 10,000), the Department of Agricultural Marketing (DAM) is responsible for fixing
market charges in 800 markets only. The market centers are under the control of the Ministry
of Land which owns the land and collects marketing fees from sellers. The DAM, during the
Sixth Plan period, will be strengthened to provide improved marketing services with a view to
ensuring fair returns to the growers for their produces and adequate supply to the consumers at
reasonable prices through the improvement of market conditions, reduction of marketing costs,
regulation of market practices and market promotion for agricultural crops. Wholesale market
development, promotion of agro-processing industries, market management, creation of MIS
in DAM, classification, grading and standardization of agricultural products, improvement of
storage facilities, particularly for marginal and small farmers, setting up an Agricultural Price
Commission to make price forecast, production estimate and to make recommendations on the
economics of productions and marketing are some of the specific programs that will be
undertaken during the Sixth Plan for ensuring fair price, quality of agricultural products and
increased production with stable price. The thrust will be to improve the efficiency of
agricultural marketing to reduce market distortions and cost of marketing, and to ensure that
farmers get proper price for their produce.

Modernization and mechanization of food storage system along with modern weighing and
bagging, conveyors for aeration, adequate drying system, entoleters etc. is needed in order to
enhance efficient handling and distribution of food grain, and increase shelf life and maintain
quality. It may also call for storage of fortified foods and storage of multiple grains. In
16
addition, it is important to enhance the use of ICT along with customized software to ensure
traceability of stocks, to know the exact supply/delivery of PFDS and quick sharing of data on
transactions.

Agro-processing: Bangladesh experiences seasonal surpluses in several agricultural

commodities of perishable nature. Development of agro-processing facilities can prevent post-
harvest losses and enhance farmers’ income. The agro-processing industries are at present in
their nascent stage of development. Most of the technologies and facilities for handling,
storage, processing and packaging of farm products and by-products are substandard and
outdated as they cater primarily to the domestic market. There exists considerable under-
utilization of capacity as well. The scope for privatization of support services such as research
and extension is likely to remain limited. However, agricultural research institutes like BARI
and BRRI will carry out research on technology development for agro-processing. Meanwhile,
some technologies are already available with these institutes for the development and growth
of agro-processing industries in the country. Nevertheless, some specialized extension
activities could be delegated to the private sector such as those related to fruits and vegetables
enterprises.

This process of supporting agro-business will be continued and strengthened during the Sixth
Plan period. In this regard, the establishment of HORTEX, a private board for horticulture
promotion, is an important institutional development. In addition, the SFYP emphasizes the
importance of capacity building of government agencies and will take necessary steps in this
regard.

Agricultural Research: Autonomous research institutes like BRRI, BARI, BJRI, BINA, BSRI
and government organizations like SRDI were established with specific mandates for
agricultural research in order to make the research system more service oriented and dynamic.
National Agricultural Research System (NARS) with all the agriculture related research
institutes under the coordinated leadership of Bangladesh Agriculture Research Council
(BARC) has been established.

The research system needs to re-examine its focus and re-order its priorities, avoid
fragmenting and duplicating its efforts, orient its approach from commodity based to farming
system or integrated production system and strengthen its planning, program monitoring and
co-ordination. The research system should also strengthen its linkages with extension in the
Plan period. Agro-ecological zone-based research will be undertaken. The criteria for
evaluation of research programs towards rates of adoption of research output by end- users and
the system of accountability of individual research institution, research administration and
personnel will be reviewed and made consistent with actual needs. Problem-solving researches
will be given priority. Criteria for identification and selection of contract research programs by
the private sector and NGOs will also be developed in response to the changing environment
at farm level. In the same way, priority list will be evaluated annually to accommodate

17
changed circumstances. Keeping in view these objectives and strategies, the following
tentative research priority areas have been identified:

• Increase of yield per unit land;

• Improvement of quality of food grain and other agricultural produces with more digestible
protein;
• Increase in efficiency in water use in rice cultivation;
• Integrated plant nutrients system and sustainable soil management (soil quality/soil
health);
• Post-harvest technology, preservation and relevant agricultural machinery;
• Higher photosynthetic efficiency;
• Nitrogen fixation by non-legumes;
• Technologies for maximum use of commodities and their by-products for value addition;
• Fruits and vegetables for off-season production including preservation, storability and
tolerance to transportation damage;
• Environmental issues and IPM;
• Development of varieties tolerant to stresses (e.g. drought, salinity, water logging);
• Development of hybrid technology for vegetables, maize and sunflowers;
• Management of soil and plant nutrients with balanced use of organic nutrients;
• Management of on-farm water resources in both irrigated and rain-fed agriculture;
• Conservation of soil, plant and genetic resources;
• Assessing the environmental impacts of declining ground water level;
• Research on tillage operation to reduce turn-around time, multiple cropping and relay
cropping;
• Rainfed technology with major thrusts on development of crop cultivation and
management practices (e.g. zero/minimum tillage, relay cropping, appropriate planting
schedule and use of fertilizers including micro-nutrients);
• Post-harvest handling and storage, primary, secondary and tertiary processing of farm
products and by-products, including pulses, oilseeds, potato, vegetables and fruits;
• Development and pilot testing of different scales of producers-processors agro-business
schemes, including contract growing schemes;
• Management of hill agriculture in the eastern and south eastern parts of the country, to
harness the agriculture in largely mono-cropped Barind tract, characterized by drought,
low organic matter and sub-surface heavy clay through identification of suitable crops
varieties and soil/water management and agronomic practices; management of coastal
saline soils;
• Genetic modification and tissue culture;
• Bio-technology research;
• Increase production of cereals and other crops by the development of new improved
varieties;
• Climate change mitigation/adaptive research;
18
• Location specific varietals development;
• Germplasm collection and their utilization in crop improvement;
• Development of short duration, heat tolerant cereals, vegetables, pulses and oilseed
varieties;
• Improvement of soil health by organic farming;
• Farming system research;
• Strengthening nuclear agricultural research for varietals development for agro-ecologically
constrained areas.

In order to support continuous Research and Development (R & D), budget provision during
the Plan period will be raised to 1% from current level of 0.6% of GDP.

Agricultural Extension: Transfer of technologies and diversification and intensification of crop

production program through appropriate extension services are of crucial importance. The
extension services must be able to render required technical advice and management support at
the appropriate time and place. Currently, the extension service draws its strength from
research findings as well as from farmer’s innovation. On the one hand, it acquires up-to-date
findings from research and transfers them to the farmers, and on the other hand, it brings
feedback in the shape of farmers’ problems to the concern of research for possible solution and
again takes back the results to the farmers for their field adoption. Strengthening of these three
way linkages among research, extension and farmers community is vital for the development
of a strong and effective new agricultural extension policy (NAEP). The Regional Technical
Committee (RTC) and District Technical Committee (DTC) have been replaced by 18
Agricultural Technical Committees (ATC), each covering 2-6 districts in similar agro-
ecological zone (AEZ). The composition of National Technical Co-ordination Committee
(NTCC) has been amended to include representatives from NGOs and farming community.
Agricultural extension together with nutritional awareness program will receive about 8 per
cent of the agricultural development Plan outlay.

The following will be constituents of strategies to develop extension services:

• Development of qualitative demonstration, field days, agricultural exhibition;

• Decentralized and farming system approach to extension system;
• Non-commodity approach, i.e., irrigation technology, seed technology, on-farm water
management technology and uses, IPM;
• Strengthening of field level activities through proper delegation of authority from
headquarters to field level;
• Priority to marginal and small farmers;
• Development and promotion of environmentally sound farming practices and specially for
distressed areas involving local government bodies, especially union and Upazila
Parishads in the process
• Mechanized agriculture.

19
• Community seed production, storage and distribution.
• MIS (ICT) based knowledge management system.
• Ensuring soil health.
• Business development initiative in agriculture especially capacity building of extension
personnel.
• Recruit more women agriculture worker and increase their participation and involvement
in the modern technology innovation in agriculture sector as well as social forestry.

• Protection of women and children from health hazards during tobacco production

Agricultural and Rural Training: In addition to higher education at agricultural colleges and
the university, several other training institutions teach and train personnel who serve
agricultural sector. These institutions are Central Extension Resources Development Institute
(CERDI) at Joydebpur, Graduate Training Institute (GTI) attached to Agricultural University
at Mymensingh and 12 Agricultural Training Institutes (ATIs) located throughout the country;
although the training facilities vary considerably among institutes, they are generally
inadequate and need support for overall improvement. The curricula equally emphasize both
academic and field trainings. During the Sixth Plan period, two ATIs will be established to
meet the growing needs of extension personnel including women extension agents. Besides,
Academy for Rural Development at Comilla and that at Bogra will train agriculture personnel
of the Ministry of Local Government, Rural Development and Co-operatives in addition to
pursuing their training program for model farmers and managers of village co-operative
societies on various aspects of agricultural development. To make the agricultural extension
service efficient and effective, the training and communication support of extension system
needs to be reorganized, strengthened and improved. The ATIs and CERDI will emphasize the
qualitative aspects of training in agricultural management, instruction in the production of
training materials, training of trainers and of extension agents. Training institutes will be given
responsibilities for extension work in the nearby villages of their locations with the objective
of achieving better organized extension work in the rural communities which will, in turn,
result in an improvement in the quality of training. In support of the agricultural extension
services, agricultural information service will concentrate on the systematic planning of multi-
media communication activities to assist crop production and on taking initiatives in other
relevant areas and fields. On regional basis, women farmers will be imparted training on
cultivation including modern technology innovation in agriculture sector as well as organic
manure production.

In order to reduce ‘yield gap’ government will try to reduce ‘information gap’. Modern ICT
tools would be used for agricultural information dissemination besides regional printing
facilities development and establishment of community radio would be encouraged for
reaching agro-ecologically constrained areas.

Rural communication system would be an umbrella for enhancing rural development services
in a very appropriate manner, combination of previous system with modern system for
20
achieving proper socioeconomic development, people’s participation, ensuring food security,
narrow down rural and urban divide and ultimately building up the digital Bangladesh by
2021.
FORESTRY
Bangladesh is a densely populated country having 14.757 million hectares of land where forest
area is 2.52 million hectares (2007) representing 13% surface area of the country. But
Bangladesh is not on track to achieve the MDG target of 20% tree cover with density greater
than 70% by 2015. The forest is an integral part of our environment that maintains the
ecological balance by controlling soil erosion, water and air quality. It also contributes to our
national economy by providing timber, fuel wood, food like honey, wax, medicine, fodder,
industrial raw materials etc. Poverty reduction through social forestry is now a success story
within forestry sector of Bangladesh. About 0.335 million rural poor are now engaged as
participants of the social forestry programme.This sector is contributing 1.7% (2010) of the
nation’s GDP1.

Public commons: Public commons including natural resources such as land, wetlands, forests,
grasslands, grazing land, reed land, khas land, peat land, rivers, estuaries and the open seas
may be one of the most important safety nets available to the poor particularly in the rural
areas, provided these are managed in a sustainable manner. In order to increase access to
natural resources for the rural poor, participatory social forestry for degraded and encroached
forestland and co-management for PAs have been introduced by the Forest Department. It
will continue to allow better access of the poor to the public commons.

National forest assessment: National forest assessment and periodic forest inventory will be
conducted using MIS and GIS to generate quality and reliable data for future planning and
better management. Technical support for developing GIS and training of remote sensing
specialists in the Forest Department will be considered in future interventions.

Aforestation: Building forest resources through aforestation will be emphasized. Efforts will
be made to establish climate change resilient aforestation in the denuded hill forests and
coastal land by accretion.

NON–CROP SECTOR: LIVESTOCK

Performance of Livestock Sector

Livestock sector plays a significant role in Bangladesh economy. Cattle and buffaloes are used
for draft power, rural road transport, and threshing purposes. Moreover, livestock provides
animal protein through milk, meat, and eggs for human consumption, and dung as fuel and
manure. Although livestock sub-sector contributes about 3 per cent of total GDP, it employs
about 20 per cent of rural labor force. The development of livestock sub-sector has, therefore,

1
Detailed discussion of Forestry sector is also contained in chapter 10.
21
been considered as an important element for generating income and employment, especially in
rural areas.

There exists a wide gap between total requirement of livestock products such as milk, meat,
and eggs and their current levels of production. Moreover, the gaps between requirement and
production are expected to widen due to population growth and more importantly, to rapid
increase in per capita income. As income rises, the demand for livestock and poultry products
increases rapidly since the income elasticity of these products is quite high: 2.16 for milk, 2.45
for meat, and 1.40 for eggs. This requires urgent and rapid development of livestock sub-
sector in general and growth of livestock products in particular, in the future.

However, there are bright prospects for developing the livestock sub-sector given that the sub-
sector currently has extremely low per-bird and per-animal production of meat, milk, and eggs
as it is constrained by disease, poor genetic stock, shortage of land for pasture, and inadequate
feed supplies. Production of this sector is dominated by smallholder farmers who are mostly
unfamiliar with basic animal nutrition, the nutrient value of different feed sources, disease
control, and breed selection. Hence, output can be increased relatively fast by introducing
modern methods of production through wider dissemination of relevant information to the
farmers and building a supportive infrastructure for this sub-sector.

The growth of livestock population has been most rapid for poultry (chicken/ducks) and least
for cattle/buffaloes over the 1983/84-2005 period. In fact, the number of cattle/buffaloes
increased by only 2.57 million (mostly during 1996-2005 period) over the 22 year period. This
has led to a decline of cattle/buffaloes per holding and per capita by 37.5 and 30.8 per cent
respectively over the period. The number of chicken/ducks, on the other hand, increased
significantly (by 52.96 million between 1983/84 and 1996, and by 55.12 million between 1996
and 2005) thereby registering per holding and per capita increase of 38.8 and 64.8 per cent
respectively over the period. The differential growth of livestock and poultry largely reflects
the scarcity of grazing land and the scavenging nature of chickens/ducks as well as recent
growth spurt of commercial poultry relative to cattle/buffaloes.

During the current decade (2000/01-2008/09 period), poultry population registered a

satisfactory growth (over 5 per cent) followed by goats/sheep (around 4 per cent). The growth
of cattle/buffaloes, especially cattle, however, is most disappointing, registering a growth of
only 0.5 per cent over this period. This has led to a per capita decline in the number of bovine
animals, especially cattle in the country. Due to robust growth of poultry, however, the
livestock population registered an overall growth of 4.6 per cent, thereby leading to an
increase in the number of livestock per capita over the period.

Current and Future Challenges in Livestock Sub-sector

The major problems constraining the development of livestock sub-sector in Bangladesh are:
lack of feed, incidence of disease, and poor genetic stock. These problems, however, are
intertwined. The lack of high-quality feed tends to keep both animals and birds in weak
22
conditions, which, in turn, make them more susceptible to disease. Diseases increase mortality
and make animal production less profitable than it would otherwise be. This, in turn, reduces
requirements for feed production. Poor genetic potential reduces feed use efficiency which
increases feed requirement.

Feed and fodder: The shortage of quality feed and fodder has been identified as the most
important constraint to livestock development in the country. The problem is becoming more
acute as a result of dwindling grazing land due to expansion of crop cultivation in general and
more intensive cereal production (with short-stemmed HYV rice plants replacing traditional
longer stemmed varieties) in particular, and human habitat expansion. Rice straw has been the
principal component of feed for cattle and buffaloes, accounting for 80 per cent of total dry
roughage, followed by maize. Maize is, however the preferred feed choice in most part of the
world because of its high nutrient value relative to its price. The demand for maize as feed
ingredient is growing fast in the country with the establishment of new poultry, dairy and fish
farms. Poultry farms with an average capacity of 5,000 birds or less use imported maize of
only one-fourth of their requirements. The feed mills, on the other hand, use imported maize
amounting to two-thirds of their grain requirements. Poultry and dairy industries are, thus,
dependent on imported maize despite high potentials of domestic production.

The number of poultry farms has been growing over the last two decades. Most of these are
layer farms. Poultry farms use mixed food grains, maize, and wheat, along with manufactured
feeds popularly known as ready feeds. Mixed feeds are prepared by farm owners themselves,
following the prescriptions from the Department of Livestock Services (DLS) under the
Ministry of Fisheries and Livestock and the feed mills. In making feeds, households or small
farms seem to be at a disadvantage due to lack of proper technical knowledge and price
information. Poultry farms are dependent on imports mostly for feed ingredients and
occasionally for chicks. There are, however, no clear rules and regulations regarding their
imports and quality control.

There is hardly any disagreement that the main reason behind current feed shortage is the
growing scarcity of grazing land; in particular, very little area of land is devoted to fodder
cultivation in the country. With programs to improve the productive capacity of the indigenous
livestock, there will be an increase in demand for feed as the improved animals and birds will
require better nutrition. Thus, the problem of feed shortage will become more acute unless the
supply of feed and fodder resources is increased.

Potential varieties of fodder and feeds were developed by BLRI having tested in different
AEZs. Extension activities for transferring germplasm of these to farmers as a regular
extension work of the DLS will be strengthened further. Feed technologies developed by
BLRI (UMS, Fresh and Wet Straw, Maize stover, Banana pseudostem processing and
preservation technologies) will be extended to farmers and also utilizing crop by-products
effectively to reduce demad supply gaps of cattle feeds.

23
Animal disease: Climatic conditions in Bangladesh make diseases more prevalent along with
other factors such as high animal densities, poor animal nutrition, and lack of veterinary
services. A shortage of vaccines further complicates the problems. Among different animal
diseases, Foot-and-Mouth Disease (FMD) in cattle causes heavy losses to farmers in
Bangladesh. It appears mostly in endemic proportions and sometimes in epidemic form. In
case of chicken, Newcastle disease causes heavy losses in the form of mortality. Gumboro has
also been identified as a fatal disease of chicken. Highly pathogenic avian flu (H5N1 strain)
has recently emerged as a major threat for poultry development in the country.

The major factor hindering any headway in prevention and control of diseases is the
unavailability of vaccine and sera in required quantities. In fact, during the mid-90s the supply
of vaccine and sera against different diseases were less than one-third of total requirement in
the country. Since the cost of local production of major vaccines is less than their import
prices, the private sector should be given incentives to undertake production of vaccines that
are in short supply or not available in the country.

Genetic breed: The genetic potential of indigenous livestock in Bangladesh is generally poor,
characterized by low productivity. Although indigenous breeds are less susceptible to diseases
and able to survive on meager rations of rice straw and crop residues, they are also low
producers of meat, milk, and eggs.

Cattle dominate the livestock population in Bangladesh, accounting for about 60 per cent of
the total stock in 2005. Virtually all cattle in Bangladesh are zebu, with three main types: large
deshi (local), small deshi, and Red Chittagong. These animals are genetically small in size and
slow growers. The national cattle breeding policy envisaged that cattle breeding operation will
be carried in urban, semi-urban and milk potential areas. Whether the breeding policy has been
successfully implemented is a matter of in-depth investigation. Some experiences have been
gained however, on the basis of which future course of action can be initiated. These are:

• Despite significant increase in use of power tillers, the use of cattle as the main source of
draft power for agricultural operations, as well as for meeting the requirements of meat and
milk in Bangladesh will continue for years to come. In rural areas, there is a need to
improve the working efficiency of bulls through improved breeding and feeding practices.
At the same time, breeding for higher milk production has to be emphasized in urban,
semi-urban, and milk pockets for meeting the deficit in milk.

• An important constraint to cross-breeding is the scarcity of breeding bulls. These bulls are
not largely produced by individual farms because it is not remunerative to them for
breeding purpose only. It is, therefore, necessary for the government to set up more cattle
breeding stations and farms in different areas of the country to develop improved herds of
various breeds.

24
• The coverage of cross-breeding programs of milking cows is still very limited. However, it
is expected that the coverage will expand as organized marketing of milk spreads over
more areas and the necessary inputs and services are made available to a large number of
farmers for breeding and rearing of cross-breed cattle.

• As mentioned earlier, the low productivity of local breeds of animals and birds is a
constraint to livestock development in Bangladesh. High yielding exotic breeds normally
do not have adequate resistance against prevalent diseases or thrive well in local
environment. It is necessary to develop suitable breeds of animals and birds in the country
through selection, cross-breeding, and upgrading along with appropriate management.

Buffaloes are larger than the local breed cows, although the average fertility is about the same.
Buffaloes subsist on the same types of feed as cattle but are better able to utilize low grade
roughage. Moreover, buffaloes are more resistant to diseases than cattle. However, they thrive
only on marshy and swampy lands. There are two varieties of indigenous goats in Bangladesh,
the Black Bengal and the Jamunapuri. The Black Bengal accounts for bulk of the goat
population. They are well adapted and productive under local conditions. In fact, goats are
harder, faster breeders, and better feed converters than cattle. Besides, they rarely suffer from
serious diseases. The Black Bengal variety should be encouraged for goat population
expansion.

More than 90 per cent of the chicken in Bangladesh are local variety unimproved breeds or
cross breeds of local varieties with imported birds. The government and the private sector
import improved varieties for parent stocks used in producing chicks. However, the size of the
parent stock of imported birds is not large enough to meet the demand for chick.
Consequently, the private sector produces about 80 per cent of the chicks from broody hens
using local and cross-breed varieties.

Research and management: Apart from the three major constraints discussed above, low
investment in livestock research and its poor management are matters of major concern. The
livestock and poultry sub-sector has not been a priority of the government or the farmers. The
government has allocated its resources mostly for research and development on crop,
especially food crop production. Moreover, priority was given to livestock for on-farm draft
power rather than for meat or milk production. This low priority given to livestock and poultry
was reflected in the small allocation of budgets to this sub-sector. Not only the budget
allocation is small but this has actually declined in recent years.

Livestock management is also weak, with farmers lacking knowledge of feeding requirements,
disease control, and breed selection. The present livestock management system, therefore,
serve as a constraint to livestock development in the country. Small number of livestock is
kept by the majority of rural households rather than intensive commercial production. Under
the existing management practices, the animals neither receive adequate nutrition nor proper
health care for efficient growth and production. Poor management is also reflected in
25
inadequate effort given to fodder cultivation by farmers and the common practice of feeding
cattle only with rice straw.

In addition to the above mentioned challenges, some other constraints affecting the livestock
sector are: (a) weak delivery of livestock services of DLS and strengthening of DLS, (b)
insufficient diagnostic facilities at upazila level, (c) lack of credit facilities at low interest rate,
(d) insufficient facilities for the development of indigenous poultry etc.

SFYP Targets and Objectives for the Livestock Sub-sector

The main goal of development initiative of the current government termed ‘Vision 2021;
Bangladesh for resolution of crisis and a prosperous future’ is to reduce unemployment to
meet the demand of standard nutrition for 85% of the population. The livestock sub-sector
may play a significant role to achieve these goals.

• To promote sustainable improvements in productivity of milk, meat and egg production

including processing and value addition;
• To promote sustained improvements in income, nutrition and employment for the landless,
small and marginal farmers; and
• To facilitate increased private sector participation and investments in livestock production,
livestock services, development and export of livestock products and by-products.

SFYP Policies and Strategies for the Livestock Sub-sector

A useful way of identifying and realizing potentials for accelerated growth of livestock lies in
addressing properly the constraints identified earlier. As mentioned earlier, lack of adequate
feed and fodder has been constraining the development of livestock in the country. There is
ample scope for ensuring improved feed supply in Bangladesh. Also, there are bright
prospects for including certain feed crops such as maize into farmers’ cropping pattern by
selective inter-cropping with other food or cash crops. Moreover, high yielding perennial
fodder crops such as Napier grass and para grass could be grown on embankments, road sides,
and other underutilized areas. Ipil-ipil plants which are fast growing leguminous plants with
high protein content could also be grown for animal feed. Research will be conducted on
unconventional green grasses in hilly and char lands to meet the fodder shortage. A shortage
of seeds has slowed down this development and lack of farmers’ knowledge has limited the
expansion of these high yielding fodder crops. Also, opportunity exists for Bangladesh to
produce significant quantities of fish meal which could be used for animal and poultry feed.

As mentioned earlier, the incidence of a comprehensive program is needed for combating

diseases – in particular, to train veterinary technicians to identify and treat common diseases,
and also to administer vaccines to prevent diseases. This was done on a limited scale for the
poultry in the past. This type of programs needs to be expanded to cover the entire livestock.
Moreover, adequate supplies of vaccine need to be made available to immunize the livestock
population of Bangladesh.
26
There is a need for a dual purpose animal which can provide draft power for crop production
and milk as well as meat for consumption. This could be achieved through cross-breeding of
imported and domestic animals to upgrade the indigenous cattle and buffaloes. Since imported
breeds normally do not have adequate resistance to disease and do not thrive in the local
environment, it is necessary to develop suitable breeds of animals through selection, cross-
breeding, and appropriate management. Despite a government programs to provide AI services
at subsidized rates, farmers have been slow to adopt this as an alternative option for
insemination. This needs to be seriously looked into and appropriate policy measures needs to
be undertaken on a priority basis.

It is necessary to improve livestock management practices so that farmers take better care of
their animals and can better understand basic nutrition and health of farm animals. Women
folks working in the dairy and poultry will also be provided proper training. This would not
only improve the health of animals but would make disease control more effective as farmers
will be able to recognize common diseases and health problems. This can be entrusted with
government extension agents and specialists from the DLS.

With increased mechanization, the use of cows/buffalos for cultivation of land is reducing. In
addition, lack of grazing land is also increasing the cost of raising cattle. Furthermore,
mechanized cultivation is relatively cheaper and time saving. All such factors have made
mechanized cultivation more popular in recent years. Increased use of power tillers has the
potential to replace cattle as the primary source of draft power. This replacement is desirable
as it would alleviate the shortage of animal power for cultivation to some extent and an
increasing proportion of cattle population would then be reared for meat and milk production.
Given the shortage of animals for draft power and severe malnutrition problem in the country,
it is desirable to encourage mechanical tilling which would allow limited pastures to be used
for grazing animals for milk and meat production while still providing supplementary draft
power for cultivation. Char areas should be utilized to produce feed crops. Rearing of sheep
and buffalos in the char area will be promoted under the SFYP. For rapid breeding
development of buffaloes, artificial insemination activities will be undertaken throughout the
potential areas of the country for genetic improvement of local buffaloes.

The local Black Bengal goats that are disease resistant, prolific breeder, and able to live off
scavenged food, represent perhaps the most productive component of the livestock sub-sector.
The skins of these goats are also of high quality and a major source of export earnings. Efforts
should be made to improve the breed to increase meat (and milk) production, while retaining
its disease resistance and skin quality. Mortality rate of kids (buckling and doeling) of these
goats is, however, high and efforts should be made to reduce it by greater veterinary care,
training for goat rearing, and improved feeding.

The livestock sub-sector, still dominated by smallholder producers, has considerable potential
to improve its productivity and benefits to the rural poor can be increased by appropriate
policies of livestock asset control. The smallholder farms own poultry, goats and sheep rather
27
than large animals. The pro-poor policies need to assess why poor households tend to own
smaller animals, whether to support such ownership or to relieve constraints to increasing their
ownership of large animals. A number of factors determine the livestock ownership pattern of
the poor e.g. small animals require less capital to buy and maintain, simplify distress sales, and
reduce risks of loss due to death or theft, grow and breed faster, and can thrive on harsher
conditions. These issues suggest two major policies to enhance the poverty-reducing role of
livestock. First, the focus of livestock research, extension, and public goods provision needs to
be directed more towards improving management of small animals in small lots (e.g. better
management of infectious diseases). In this context, increasing layered farming of chicken
needs to be encouraged. Second, barriers that constrain the poor’s ownership of large animals
need to be removed. An important policy approach could be to create institutional
arrangements (e.g. through cooperatives or entrusting large animals owners) to perform
management, finance, and sale functions of livestock products while ownership rests with
small producers. Along with creating new employment opportunities, such policies would
provide inputs and services to small herd owners thereby removing critical constraints for
them to emerge as profitable livestock farmers.

In order to protect transboundary diseases, as well as to protect the livestock sector from avian
flu, anthrax etc. the plan will take specific measures. In addition, research on production of
vaccines will be done in accordance to climate and weather of the country. Given the fact that,
cattle and buffalos are more tolerant to saline water, production of these species in the
Southern part of the country will be encouraged. Moreover, for upgrading indigenous cattle,
in addition to artificial insemination, the Plan will incorporate breed upgradation through
Progeny Test. Finally, necessary steps will be taken to conserve the indigenous species of
livestock and poultry population.

28
FISHERIES SUB-SECTOR

Performance of Fisheries Sector

Fisheries fall broadly into three main categories: inland capture, inland culture and marine
fisheries. Inland capture fishery plays the dominant role in this sub-sector. Capture fisheries
includes rivers, floodplains, beels, haors, etc. some of which retain water throughout the year.
Inland culture fisheries include pond culture, ox-bow lakes (baors) and shrimp farms. Marine
fisheries of the country are made up of marine industrial (trawl) and marine artisanal fisheries.
Inland captured fisheries dominate the whole sector and constitutes more than 40% of the total
fish production with an average annual rate of growth of 5.6%. Inland cultured fisheries
contribute about 39% of total production with an average annual growth of 6%. Marine
fisheries constitutes about 19% of total fish production (with a growth of 5.4% per annum), of
which marine artisanal alone contributes 18%. According to group-wise species production for
both inland and marine fisheries, Hilsa, as a single category, contributes the highest share
(11.3%) followed by Shrimp (8.7%) in total production.

The main use of fishery resources is domestic consumption. Fish is much preferred by the
people of Bangladesh as an important food item. In fact, fish is generally treated as a staple
food next to rice. Fish is an important source of animal protein for the majority of the people
of Bangladesh and it is the only source for many of them. Another important use of fishery
resources, particularly shrimp, is export.

The National Fisheries Strategy (2006) reflects a shift from the way the sub-sector is currently
managed. The sector was controlled by the Government through its agents mostly the
Department of Fisheries. Their activities largely included the management and control with
direct involvement in supplying some of the inputs such as fingerling. The strategy stipulates
that their activities moves to one of fostering participation with local communities, the private
sector and NGOs; the provision of advice; and establishing a regulatory framework in which
the sub-sector can function properly. This strategy emphasizes collaboration linkages and
partnerships throughout. The strategy also reflects current government concern for poverty
alleviation through more targeted activities by all. Some of the strategies as outlined in the
National Fisheries Strategy (2006) are pointed out below:
• Developing Long Term Objective Planning;
• Ensuring People’s Participation;
• Coordination, Collaboration and Support from Relevant Other Ministries/Departments for
the Fisheries Sector;
• Developing a Regulatory Framework for the Sub-sector;
• Having Pro-Poor Management Strategy;
• Ensuring Gender Equality;
• Providing Alternative Income Generating Activities; and
• Managing the Environment Properly.

29
Challenges Facing the Fisheries Sub-sector

Major causes of resource degradation in this sub-sector can be identified as: (i) construction of
flood control embankments and roads, (ii) siltation, (iii) over fishing and fishing of under-
sized, (iv) incidence of fish diseases, (v) discharge of chemical fertilizers and industrial
effluents in the water, and (vi) conflict between paddy cultivation and fish production.
The major environmental threat to inland capture fisheries is considered to be the water
control, specially flood control structures, and road embankments. The general arguments for
such project interventions are two-fold. First, they increase rice production by converting
floodplains into irrigated paddy land. Second, they prevent death and damage to property from
flooding. There are inadequate institutional arrangements and commitments to integrate
fisheries into the planning, designing and operation of these projects. The sustainability of
fisheries in the floodplains is very much linked with extensive system of interconnected areas
of fish habitat for their migration, breeding, feeding and growth. However, findings of Flood
Action Plan 17 (FAP 17) indicate that the negative impact of flood control and water
development projects could be mitigated and the floodplain fish production could be increased
by the introduction of better water management practices to ensure access of fish from rivers
into the floodplains and vice versa. In addition to such intervention, natural siltation of the
waterways also reduces the open water aquatic habitats.
With population growth and growing unemployment, pressure on open water fisheries is also
increasing, leading to over exploitation of the resources. Effective enforcement of fish laws,
providing alternative employment opportunities for poor fishermen during lean period and
ensuring redistribution of economic benefits through implementation of equitable and
effective management policies can address these problems of over-exploitation of the
resources.
Incidence of fish diseases is another problem for fisheries development. Degradation of natural
balance of the environment and intensification of freshwater aquaculture are the main causes
for fish disease. Maintaining natural balance and practicing good husbandry is the best way to
prevent most diseases. The increased use of chemical fertilizers for crop production and
discharge of industrial effluents in the water are other problems for resource degradation.
These pollute the open water aquatic habitats and cause problems for breeding and feeding of
fishery resources. There are also resource conflicts between paddy cultivation and fish
production that occur as a result of converting floodplain areas to paddy fields, increased use
of water for irrigation in the dry season, and the use of pesticides and chemical fertilizers
which have impeded inland fisheries development.
Some other challenges in the fisheries sub-sector are: (a) genetic degradation of carps, (b)
decline of food-plain fisheries, (c) problems related to quality feed, fingerlings etc. of inland
aquaculture, (d) rapid depletion of the stock of marine fisheries, (e) complicated leasing of
public wet lands etc.

30
SFYP Strategies and Policies for Fisheries Sub-sector

The overall strategy of fisheries sub-sector development should focus more on open water
fisheries, ensuring biodiversity and preserving natural breeding grounds, product
diversification, value addition, capacity building and development of appropriate marketing
infrastructure. The strategy should be to promote a dynamic capture fisheries and aquaculture,
involving the key actors e.g. NGOs, private sector entrepreneurs and community based fishing
groups. Priority areas of interventions in the fisheries sub-sector may therefore include the
following:

• Emphasis should be given on the management of open water capture fisheries since the
potential for pond culture has nearly been exhausted. Productivity in the open water
capture fisheries in Bangladesh is fairly low. It is only about 200kg/ha. There is a good
potential for doubling the productivity in the open water capture fisheries through effective
management. There already exist some good practices of better management of open water
fisheries which need to be disseminated among the concerned fishermen and fish farmers.
• Although the potential for pond culture has nearly been exhausted, steps should be taken to
raise the productivity of pond fishery in the country.
• Initiatives should be taken to enhance the productivity of shrimp culture. While the
productivity of shrimp culture in Thailand is 3000kg/ha, it is only 300 kg/ha in
Bangladesh. Introduction of intensive shrimp farming may help augmenting shrimp
productivity in the country.
• For the marine fisheries, it is vitally important to assess the resources in the artisanal and
deep sea levels. Allocation of fishing rights should be contingent upon this assessment so
that optimal fishing is carried out at both artisanal and deep sea levels. Introducing modern
techniques of fishing in the coast as well as in the sea and providing modern fishing
equipment are also required to augment production from the marine fishery.
• Community-based fisheries management should be encouraged. There are already some
examples of successful community based management of open water fisheries that can be
disseminated and replicated in other places. This ensures broad-based participation of
community people in the fisheries management as well as higher production.
However, in most cases, community-based management works better during the project period
only and the situation deteriorates soon after the completion of the projects. Hence, to make
the community-based management more effective and sustainable, community people should
be made more aware about the fishing practices and fisheries management. They should also
be given “ownership” of the resources so that they invest and adequately take care of the
resources. Introducing long-term leasing system can serve the ownership problem in this
respect.
• Better practices of open water fisheries management should be re-introduced in other
places. Restocking in the open water fisheries, not to catch fish for some time of the year,
31
 enhancing seasonal culture, pen culture and beel nursery can significantly contribute to
augmenting fish production from the capture fishery.
• It is also important to emphasize on the creation of more sanctuaries and proper
enforcement of laws in order to ensure the breeding and growth of fish in the open water
capture fisheries.
• Providing adequate training to the fish farmers and extending extension services to them is
important for the development of fisheries sub-sector in future. The Sixth Five Year Plan
should emphasize on this so that the capacities are built at the fishermen and farmers
levels.

• The Department of Fisheries (DoF) is suffering from lack of manpower, particularly at the
field levels. It cannot provide adequate extension services to the fish farmers at the local
levels. In order to take the modern technology of fish farming to the local levels, be it
capture or culture, it needs to strengthen the capacity of the department. Capacities of the
Fisheries Research Institutes should also be strengthened.
• It is important to regulate the private hatcheries, many of which are producing sub-
standard fingerlings. Fish farmers are using these fingerlings without knowing its quality
and hence the fish production is also being adversely affected. Policies/strategies should
there be adopted in the area of hatchery management. Policies/strategies should also be
undertaken in the areas of sanctuary management and fish-feed production.
• Lack of proper coordination among relevant government ministries/departments still a
problem in the development of the sub-sector. Ministries of Land and Fisheries should also
work together in deciding leasing of the jalmahals. Ministries of Agriculture and Industries
should also cooperate with the Ministries of Fisheries in regulating the use of pesticides in
agricultural field and controlling the pollution of water in the water bodies. Responsible
officials of the Department of Fisheries at the Upazila levels should also be given limited
magistracy in order to enforce the fishery law to protect the sanctuaries and control the use
of fishing gears.
• Fish preservation, processing and marketing structure, particularly for the capture fisheries,
are also weak. It needs to develop proper preservation facilities, processing plant and
appropriate marketing structures to reduce market imperfections and the role of the
middlemen so that the fishermen get the major share of the price paid by the consumers.
Role of Bangladesh Fisheries Development Corporation should also be strengthened so
that it can intervene in preserving and processing of fish during harvesting period and
marketing during the lean period.
• There should be adequate provisions of credit access for the fishermen and fish farmers.
Fishermen in most of the cases work as contract labor of large traders and arotdars. They
should therefore be provided with credit so that they can purchase fishing equipment
themselves and meet regular expenses during lean seasons. Fish farmers, particularly the
small farmers, should also be provided with credit so that they can invest in the fishery.
32
• There is a growing realization that the fisheries sector cannot continue to support the
numbers of people currently engaged in this activity, especially if they have limited access
to resources and also during lean/off-fishing period. There is thus a need to work with
other agencies (government non-government) that can provide support in the identification
of other opportunities and supply training and resources to enable these people to seek
alternative income earning opportunities.
• In each of the strategies and programs, focus on the poorest and on female participants
should be maintained.
• Policies will be targeted towards improving fish habitat e.g. river/channel dredging,
conservation etc.
• The plan emphasizes on reversing stock in breed, managing quality brood stock etc.
• Steps will be taken for establishing of hatcheries, quality fingerlings and feeds.
• The plan emphasizes on co-management of public wet lands, strengthening farmers/fishers
organization.
• Strategies and policies should emphasize on the quality control of fish and fisheries
product. This has to be done both in the context of international export market as well as
for domestic consumption.
• Research on best management practice of high yielding fish species and research on
genetic/biotechnological improvement of fish species should be given further importance.
• The plan emphasizes on conservation of aquatic biodiversity and indigenous fish species.

FOOD SECURITY AND MANAGEMENT

Bangladesh has a population of 150 million and is growing at a rate of 1.4 per year. Provision
of food for all is therefore a real challenge and Bangladesh may have to depend on imported
food to ensure food security. During the last two decades safety net programs were extensively
used to channel food to the landless unskilled poor especially during the lean season. This
effort has added to the government policy of poverty reduction. In fact poverty has dropped
from 56.6 percent in 1991-92 to 31.5 percent in 2010. During the period percentage of under-
nourished people declined from 35 to 30 with improvements in child and maternal mortality.
Country has made significant progress in food production but the increase in food production
has been neutralized by the absolute increase in demand for food due to population growth and
the country remained as a low-income food deficit country with an average food grain import
of 2 million tonnes since 1990-91. An estimated 27 million ultra poor people survive on less
than 1805 Kcal per day and risk losing life and livelihoods to recurrent natural disasters. This
is compounded by an increasing disparity in income distribution and high prevalence of
malnutrition among women and children. Although poverty has declined in Bangladesh during
the last decade, the country has third high number of hungry people in the world.

33
One of the criticisms of FFW projects is leakage of resource. A leakage study by World Food
Program indicated that leakages vary agency to agency as well as program to program. The
Vulnerable Development program (VGD) has a leakage of about 11% while LGED
implemented FFW projects’ leakage was around 4%. Several reasons for leakage were
identified which include (i) a flat rate for transportation of commodity @ Tk 250/tonne
provided for carrying commodity from food godown to distribution point though it varies from
place to place, (ii) no resource is officially allocated to weight and distribute commodity at the
distribution point, (iii) Commodity is shared with real deserving non project beneficiary with
consent of the project beneficiary (specially in VGD). Despite all this shortcomings FFW
probably helps the general poor by keeping food price reasonable. Therefore, strategy could be
to improve access to food for the poor rural families vulnerable to shortage of employment,
fluctuating food prices and natural disasters and FFW interventions will be planned in such a
way that would facilitate agriculture development or address climate change issues.

Vulnerability of domestic production of food grain necessitated building up of an elaborate

public food distribution system (PFDS) over the years. PFDS aimed at both meeting
emergency needs as well as normal demand of the poor households in addition to meeting
institutional demand originating in hostels, hospitals, jails, etc. While the distribution of public
food grain continued to expand, it acquired a new emphasis through domestic procurement on
a voluntary basis as a tool for stimulating food grain production with price support and open
market sales (OMS) for price stabilization at consumer level. Thus, it has both consumption
and production objectives and in respect of both, it has undergone changes with the growth of
domestic output and greater availability of food grain in markets.

SFYP Objectives

Attainment of food grain self-sufficiency and food security remain the stated objectives of the
national food policy and strategies. However, the objective contents of the food sub-sector
during the Sixth Plan are as follows:
• Ensuring food security for all and elevating nutritional status of the people living below
poverty line;
• Preservation and maintenance of security stock of food grain to meet any natural
calamities, production shortfalls and supply hazards;
• Development of a social safety net program for vulnerable groups with special focus on
women and children through improvement and enlargement of targeted food distribution;
• Maintenance of price stability within a band to protect interests of producers and
consumers;
• Expansion of private sector in storage, distribution and trade of food grain; and
• Development of a sound quality control, grading and standardization system of food grain
and food products.

34
SFYP Policies and Strategies for Food Management

The food sector has undergone major structural improvements over the years both in terms of
market operation as well as in the context of Public Food grain Distribution System (PFDS).
The present policy and strategy to further liberalize food trade will continue. However, though
the private sector is expected to play a greater role in food grain management and trade in
future, the government involvement in some specific areas will be continued in food grain
management. The following issues relating to food security in particular, will continue to
engage the government’s attention:

• Maintenance of Buffer Stock: Buffer stock will be maintained to make up anticipated

production and stock losses due to periodical droughts, floods and cyclones. An estimated
1.5 million tonnes of food grain will be required to be maintained as security stock.
• Procurement of Food Grain: Internal procurement of food grain will continue to ensure
floor price to the growers and to provide incentive and confidence to growers for further
production.
• Stabilization of Price: The government will formulate an effective mechanism to avoid
wide fluctuations of prices. One of the current public policies is to hold food security stock
for price stabilization. Open market sale is one of the short term instruments used for
avoiding temporarily wide fluctuations in market prices. Private sector will be encouraged
to strengthen food storage facilities at strategic places such as food deficit/surplus areas.
This will enable the traders to augment market supply in response to rise in prices, thereby
reducing both seasonal and regional price spreads.
• Targeted Support for Vulnerable Groups: National level food grain availability does
not necessarily ensure household food security. In spite of increasing food grain
production and falling real prices of rice, over half of the country’s population cannot
afford a diet to meet minimum nutritional requirement. Hence, the case for public
intervention remains strong and clear. Consequently, targeting the poor for supply of food
remains squarely within the public domain. Vulnerable Group Development, Food for
Work Program and Food for Education in wider ambits will be some of the specific
programs of public interventions.Women’s participation in the management of food
distribution (nutrition feeding programme) will be ensured.
• Role of the Government : To meet any shortfall in the flow of required quantum of food,
the public sector may have to intervene for:

i. Preservation and maintenance of security stock

ii. Development of a safety net programs by improvement and enlargement of targeted food
distribution;
iii. Providing incentive to growers through procurement of food grain at remunerative prices;
iv. Stabilization of price of food grain in relation to production cost and purchasing power of
the consumers; and

35
v. Modernizing and maintaining existing storage capacity by renovating old food storage
facility and, if necessary, constructing new storage facility in strategic areas of the
country.

WATER RESOURCES

Review of Past Performance

Water resources sector has undergone significant shift in terms of policies, strategies, plans
and programs in the last decade. The Water Resources Planning Act (1992), the National
Water Policy (NWPo-1999), the National Water Management Plan (NWMP-2001), the
Guidelines for Participatory Water Management (GPWM-2000), the Coastal Zone Policy
(CZPo-2005), the Coastal Development Strategy (CDS-20006), the BWDB Act (2000), the
National Water Act (draft) have created an enabling environment in the country to practice
Integrated Water Recourse Management (IWRM) for economic, social and environmental
sustainability. The programs and projects of water sector in Sixth Five Year Plan would be
guided on the backdrop of this favorable environment.

LGED’s initiatives on the development of Small Scale Water Resources (SSWR) (less than
1000 hectare) started in 1960 under Thana Irrigation Program. During 1986 to 1996, sixty
SSWR schemes were implemented under the Rural Employment Sector Program. Taking
lessons from the performances of the earlier water resources development projects, sustainable
use of water resources has been facilitated with the participation of local stakeholders along
with local government institutions involving public and private sectors, communities and
individuals in implementation of Small Scale Water Resources Development Sector Project
(SSW-1 and SSW-2). Both SSW-1 and SSW-2 have enhanced rural incomes by developing
community based water management associations and community managed small scale
infrastructure and this approach has proved effective in the drive to reduce rural poverty.

Irrigation is one of the most important and essential part of agricultural production and that is
why the Government has given importance to the irrigation for increased agricultural
production. Irrigation has got direct positive impact on raising farm productivity and
agricultural growth. Irrigation should be given priority to the Monga prone and other less
productive areas. This will also help in reducing regional disparities as the Monga prone areas
of the country suffer from less rainfall throughout the year.

Government has also given importance on the effective and optimum utilization of surface
water rather than extracting ground water for irrigation. Utilization of surface water is more
effective and useful for agricultural production. In addition, by preserving available surface
water in the monsoon, it can also be used in the dry season for irrigation. This will directly
help to recharge the ground water and increase agricultural production. It will minimize
regional disparities in agriculture and will help in maintaining sustainable environment.

36
During the past, about 5.90 million hectare of flood vulnerable land has been brought under
flood control and drainage improvement facilities (up to June 2009) by Bangladesh Water
Development Board (BWDB). By this time, the organization has also provided irrigation to
about 1.40 million hectare land under surface water irrigation project. In addition, about 0.10
million hectare land has been reclaimed from the Bay of Bengal which creates room for
settlement of poor people. The direct impacts of about 721 projects implemented so far by
BWDB are (i) creation of secured environment for crop production that ensured security of the
country, (ii) rural employment generation, (iii) protection of agricultural land, towns, human
settlements from river erosion and (iv) reclamation of land. The indirect benefits of the
projects are (i) better communication; (ii) security from water-borne hazards (like flood,
cyclone, storm-surges, saline water intrusion, water logging, drought), (iii) primary defense
against possible sea level rise resulting from climate change and (iv) enhancement of agro-
based economic activities is a flood-free secured environment.

The benefits derived from water sector interventions are contributing to the poverty reduction
initiatives of the country. Through the FCD and FCDI projects, BWDB creates favorable
environment for HYV rice production. This induces enhanced employment generation for
rural agriculture laborers. Moreover, construction works and annual operation and
maintenance works in the infrastructures of these FCD and FCDI projects provide wage
income opportunities for the rural skilled and unskilled poor laborers roughly equivalent to
one-third of the total annual agricultural wage income.

SFYP Objectives and Targets for Water Resources

The objectives of the SFYP have been formulated to materialize the vision of 2021 along with
other international, regional and national priorities. All water sector programs/projects are pro-
poor initiatives, be it an irrigation project or a river management project. These projects are
also complementary among themselves. A river management project, by dredging the river, is
creating safe passage for flood flow thus controlling the havoc of flood while reducing the
furry of bank erosion, a natural hazard causing tens of thousands people homeless and poor.
This river management project is also thus helping to attain “food security.”
Under these circumstances, a balance approach is followed in setting the objectives of the
water sector of the SFYP. River management, which is commonly known as river dredging,
has been given proper emphasis in addition to the flood control, drainage and irrigation
project. Trans boundary water sharing has also been given priority because of the urgency of
the issue. Arsenic contamination is addressed by fixing priority on utilizing surface water as
much as possible. The use of Information Communication Technology (ICT) in water sector
has also been considered with due priority as a step forward to convert the country into
“Digital Bangladesh”. Land reclamation is also a priority issue as Bangladesh is a land hungry
country.
Specifically, the objectives of water sector of the SFYP are as follows:
1. People’s participation in conformity with IWRM principals.
37
2. Enhancing conveyance capacity of water courses through river dredging.
3. Protection of river erosion.
4. Land reclamation.
5. Conjunctive use of surface and groundwater for sustainable irrigation.
6. Optimum use of available flows of the common rivers for multipurpose use.
7. Regional and International cooperation for basin-wide water resources development and
management of trans-boundary rivers.
8. Flood Control/ Flood Management
9. Heights of coastal and flood embankments to be raised.
10. Food security by achieving food grains self-sufficiency through ensuring year-round
sustainable irrigation.
11. Water conservation for irrigation and other uses.
12. Prevention of saline intrusion through augmenting the fresh water flow in the south west
region including the Sundarbans (the world heritage).
13. Climate change adoption and mitigation.
14. Environmental protection.
15. Culture fisheries in the completed projects of BWDB.
16. Integrated coastal zone management.
17. Strengthening and capacity building of water resources institutions in the fields of
• climate change issues
• data management
• river management
• ICT arena
18. Studies and research on future water resources management.
The water sector activities will enhance to achieve these targets. Within the SFYP period, the
specific targets of water sector are presented in Table 1.2.

SFYP Strategies for Water Management

The programs/projects included in the water resources sector of the SFYP (2011-2015) would
require approximately Tk.235050 million for implementation. Institutional, human resources,
logistics and financial involvement for the successful implementation of the various programs
are huge and need well thought out strategies and policies. The following strategies would be
followed in the SFYP plan (2011-2015) period:

38
 Table 1.2: SFYP Targets of Water Sector
Expected Outcome

Employment Generation 12.5 millions mandays

Poverty Alleviation Water sector projects are pro-poor
Protection of Environment EIA is mandatory for all water sectors project
Social Security Water sector projects are pro-poor
Food Security Contributing about 10 millions mt food grains annually
Flood Control 0.7 million ha.
Human Resources Development Train 30000 staff
Output

Dredging of rivers 318 km.

River bank protection (New) 158 km.
River bank protection (Rehabilitation) 142 km.
Embankment 690 km.
Resectioning of embankment 469 km.
Coastal embankment 45 km.
Resectioning of coastal embankment 480 km.
Coastal cross-dam 19 nos
Excavation of irrigation canal 1067 km.
Re-excavation of irrigation canal 1124 km.
Excavation / Re-excavation of drainage channel 636 km.
Irrigation / Hydraulic structure 1117 nos
Rehabilitation of irrigation structure 440 nos
Construction / Rehabilitation of flood control 365 nos
structures
Reservoir 2 nos
Rubber dam 6 nos
Barrage 2 nos
Installation of pump house & rehabilitation 9 nos
Formation of WMO’s (in addition to existing 7000 3000 nos
nos)

• River dredging: Dredging would be carried out in a systematic and comprehensive way
and that has to be done in combination with river bank protection for nondestructive, easy
and smooth passage of flood flow of river system. Such a planned activity would help to
protect the river banks from erosion, which is also a major vector of rural poverty. BWDB
would take the lead role in this context.

• Addressing dry season water scarcity: In the wake of continued stress on surface water
especially during dry season, top-most priority would be given on water-sharing of the
common/trans-boundary rivers with the neighboring country/countries following the
model of the Ganges Treaty-1996.

• Basin-wide water resources development initiative: Steps has to be taken immediately

to enter into agreements with co-riparian countries for sharing water of international rivers,
data exchange, resource planning and long-term management of water resources under
normal and emergency conditions of flood, drought and water pollution. While moving
towards the attainment of basin-wide plans in the long run, it will also be necessary for
39
 Bangladesh to concentrate on the development of individual hydrological areas to meet
short and intermediate term requirements.
• The Ganges Barrage project with ancillary infrastructure: The project would be
undertaken with a view to meet several objectives, e.g. (i) to harness properly the benefits
of the Ganges Water Treaty 1996 (ii) to save the Sundarbans and the south-west region of
the country from salinity intrusion and (iii) to utilize the surface water in the wake of wide-
spread arsenic contamination in groundwater, BWDB would address the issue within the
shortest possible timeframe. This project is expected to benefit the South Western region
and it is expected that 1.2 lac hectare land would be under coverage of irrigation with fresh
water, industrial water etc.
• Participatory water management: Such an approach would be followed in all water
resources sector projects right from the identification up to monitoring and evaluation. The
approach is mandatory for all public sector institutions.
• O&M of completed projects: The completed projects of water resources sector especially
the projects related to flood control, drainage and irrigation would be properly operated
and maintained with the participation of stakeholders so that the targeted benefits of the
projects are ensured. Given the importance of these projects in terms of poverty alleviation
of the rural population, BWDB would exert its effort to achieve this goal.
• Achieving “Food-for-All”: BADC, BMDA and BWDB would continue to pursue
command area development activities in surface water irrigation project and to explore
expansion of irrigation.
• Coastal zone management: Coastal Zone is the zone of prosperity and at the same time is
considered as vulnerable point within the country. The area would be treated as a special
zone.
• Public Private Partnership: As water resources development interventions are costly
initiatives, public-private partnership model has to be explored whenever possible.
• Climate change: The issue would be assessed on a realistic scale and then the effects of
the issue on water resources sector would be addressed with reasonable care. BWDB,
BHWDB, WARPO, RRI, IWM, JRC, BMDA, BADC and CEGIS would take joint effort
in this field with WARPO taking the lead.
• Land reclamation: Bangladesh is facing land scarcity and in this context, necessary
projects and steps would be taken for land reclamation. BWDB would implement projects
for this purpose.

Continuous Monitoring and Updating of Water Resources

In view of the critical importance of water resources for the economy, the state of the water of
the country in the perspective of time and socio-economic setting needs continuous updating
and monitoring, WARPO with the help of all the stakeholders of the water resources sector
especially with BWDB, BHWDB, JRC, IWM and CEGIS would update the National Water
Resources Management Plan (NWMP). The organization will also achieve water resources
data in the National Water Resources Database (NWRD). The National Water Management
PLAN (NWMP) would be updated through continuous monitoring of its implementation and
40
the state of water resources in the country in perspective of climate change and social setting.
WARPO would implement the update in consultation with all the relevant stakeholders
including BWDB, LGED, DPHE, WASA, BADC, BHWDR, JRC, DoE and others. WARPO
would also update the National Water Resources Database (NWRD) for future updating of
NWMP.

RURAL DEVELOPMENT

Lessons Learned from Past Development Interventions and Key Constraints

Importance of Road Development: Road development is critical to socio-economic
development and poverty reduction. An improved road communication system reduces road user
costs and costs of production and thus facilitates socio-economic development of the country. It
contributes to the reduction of poverty by creating employment opportunities for all, including
women, increasing the mobility of working people and facilitating the distribution of capital and
consumption goods. Moreover, it contributes to the expansion of markets, augmentation of
regional balance and creation of investment opportunities, all of which are conducive to economic
growth and poverty reduction. Furthermore, it supports human resource development through
improved access to health and education services.

Employment Generation: Through construction and maintenance of infrastructure

development and tree plantation activities direct employment opportunity is created for the
poor and the destitute women. In addition to the direct employment opportunity, the
infrastructure development program implemented by LGED has contributed towards
generation of indirect employment opportunities in the following areas:
• Employment in the road transport sector
• Employment in trading activities in growth centers/rural markets
• Employment in the farm sector
• Employment in other non-farm productive activities.

Development Impact of Rural Infrastructure: The development impact of rural

infrastructure is highly positive. This is evident from international experience as well as the
experience of Bangladesh.

A study done by the Government of Bangladesh in 1996 made the following suggestions for
strengthening the rural infrastructure development program.
• The strategy’s growth centre approach (which focuses public investments on selected
growth centers and are selected based on well-defined criteria to indicate their socio-
economic importance) remains valid.
• No major changes are required, only some readjustments or “fine tuning” may be justified
in the light of the experience acquired by different rural development projects.

41
• Targets will have to be reset after the recent increase of growth centers from 1400 to 2100
due to population and regional growth and regional priorities will have to be defined in
view of the natural potential of the regions.
• Some minor readjustments will be needed in the spatial distribution of infrastructure
investments to be fully in line with agricultural production and potential.
• In addition emphasis should be given on user/community participation in planning,
implementation and monitoring, improved use of local resources, such as, local materials
and the continued use of labor intensive techniques with appropriate equipment. Co-
ordination in the use of complementary modes of transportation, specifically waterways,
increasing the role of the private sector and further strengthening the capacity of
contractors operating in the rural areas who provide cost effective, labor intensive skills
and resources enhancing the future sustainability of the rural infrastructure system may be
given priority as well. Institutional strengthening of the Local Government Engineering
Department (LGED) and its wide network at local levels with a greater orientation towards
community participation will also receive due attention.
• Greater emphasis will be given on building and funding a sustainable maintenance system.

Vision, Goals, Objectives and Targets for SFYP

The vision of Rural Infrastructure Development sub-sector includes, among others,
developing, maintaining and managing transport, trading infrastructure at the local level by
ensuring LGI and community participation and taking care of environmental and social issues.
The objectives of the sub-sector will include the following:

• Improvement and maintenance of rural infrastructure

• Create direct employment opportunity for the rural poor and the destitute women through
improvement and maintenance rural infrastructure.
• Create indirect employment opportunity in road transport, trading and other farm and non-
farm sectors.
• Improve utilization of health and education services/facilities
• Facilitate participation of community people in development work and promote good local
governance.
• Contribute towards poverty reduction at the local level.

Under the rural infrastructure development program, projects will be taken up for development
of growth centers and growth centre connecting roads, bridges and culverts. Road maintenance
programs, mostly rural roads, will be implemented through the rural destitute women and
eventually they will accumulate savings to undertake income-generation activities by
themselves. In addition Union Parishad Complexes (UPCs), Cyclone Shelters and ghats (landing
stations) will be constructed in significant numbers.

Current and Future Challenges for the Sector/Sub-sector

42
The development of road and road transport suffers from a number of challenges/ constraints:

Bangladesh has a low-lying topography requiring a raised earth embankment. It has a
large number of rivers and canals calling for construction of bridges and culverts at
frequent intervals. Moreover, there is scarcity of a number of construction materials like
stone, cement and lime which have to be imported in large quantities. All these factors
make building of a road network in Bangladesh very expensive.

Bangladesh is located in the monsoon region. Due to the influence of monsoon weather,
there are torrential rains in Bangladesh for about half of the year washing away road
surfaces, particularly the shoulders and earth embankments of the road network.

Within the framework of the above challenges/constraints, the problems in the development of
roads are:
• lack of availability of land
• local conflict in prioritizing roads for development
• conflict of interest of various groups
• shortage of skilled manpower at union level
• inadequate flow of funds
• overloaded trucks causing early damage to the pavement
• number of gaps in road network increasing road development costs
• non-availability of good quality construction materials, and
• frequent inundation by annual floods.

Sectoral/Sub-Sectoral Development Strategies and Policies for the SFYP

Components/Activities under Rural Infrastructure Development

The activities under rural infrastructure development and maintenance will include the
following:

• Improvement of Upazila Road

• Improvement of Union Road
• Improvement of Village Road
• Construction of Bridges and Culverts on Upazila Road, Union Road & Village Road
• Development of Growth Centers and Rural Markets
• Tree Plantation on Slopes Roads
• Construction of Union Parishad Complex (UPC) and Upazila Complex
• Construction of Cyclone Shelters and Killas

43
• Routine Maintenance and periodic maintenance of Earthen Roads, Herring Bone Bond
(HBB) Paved Roads and Structures.
Strategies of the Sub-Sector
The strategies for the development of the road system of LGED include finalization and
adoption of a Road Master Plan, adoption of a maintenance plan and according higher priority
to maintenance over new construction, exploring technological options to construct quality
roads with available construction materials, introduction of measures to stop overloading,
adoption of procedures to maximize generation of employment for the poor, ensuring quality
of construction, more involvement of Local Government Institutions (LGI) and ensuring
utilization and maintenance of constructed facilities.

Strategic Plan for Rural Infrastructure Development and Management

The Plan will include the following:

The rural infrastructure development/improvement will be planned and implemented based

on the findings of Effect/Benefit/Impact Studies carried out by LGED in respect of rural
infrastructure development projects and the principles/elements as included in the National
Strategy for Accelerated Poverty Reduction, October, 2005.

Government approved Rural Road Master Plan will be followed for infrastructure
development projects covering Upazila and Union roads including bridges/culverts,
bridges/culverts on village roads and development of growth centers/markets, ghats and
Union Parishad HQ etc.

Rural road improvement which will contribute in a better way towards increasing
agricultural production, promoting transport and trading activities, providing access to
other socio-economic services and facilitating employment generation will be given
priority.

For sustainability of rural infrastructure, adequate maintenance system and a viable

funding mechanism based on local resources and emphasizing local participation and
ownership will be arranged.

Since maintenance needs are increasing, the Government and the local bodies will make
special efforts to fully fund these needs and LGED will make continuous efforts to
improve maintenance efficiency and ensure local participation.

The labor-based construction techniques for road improvement will be adopted to enhance
employment opportunity, sustainability and affordability.

There are competing needs for various types of rural infrastructure, such as, Upazila
Roads, Union Roads, Markets, Ghat facilities etc. and even for roads alone, there is need
for improvement maintenance and bridging gaps. At the spatial level, there are competing
44
 needs for different geographical regions. A guideline for investment prioritization and
selectivity will be developed and calculation of economic rate of return will be adopted to
guide the major investment decisions.

The first priority will be to maintain all Upazila Roads, Union Roads and Village Roads
which have so far been constructed under different projects implemented by LGED
including bridges/culverts and upgrade growth centres having connection with railway and
waterway in order to promote and integrate multimodal transport system.

The second priority will be to improve/upgrade remaining Upazila Roads, Prioritized

Union Roads and Village Roads-A including culverts/bridges which have strategic
importance to connect railway and waterway.

The third priority will be to improve Growth Centers and construction of ghat facilities at
Growth Centers located on the bank of inland waterways to ensure better integration of
road and water ways and thereby stimulating the rural transport and trading system. Also,
construction of the Union Parishad Complex for local socio-economic and governance
development will be included under this category of priority.

The fourth priority will be to selectively add roads to the maintainable core road network
through rehabilitation and reconstruction, including spot improvement of drainage and
badly damaged road sections. Separate provisions will be made for reconstruction works
required to keep lower quality roads open and serviceable.

Other Implementation Strategies

Other implementation strategies for development of rural infrastructure will include the
following:

Priority will be given to the creation of macro and micro-level interactions, i.e. through
close interactions between the central and the local government institutions.

Proper decentralization of design, implementation and management of rural infrastructure
programs will be adopted to have far-reaching implications for cost effectiveness,
maintenance and provision for sustainable infrastructure services.

To maximize the impact of decentralization, the rural infrastructure programs will focus on
provision of basic economic and social services in collaboration with different local
agencies, NGOs and the private sector based on sharing of responsibilities through
experience and best practice examples.

To realize the above, the overall responsibilities of Union Parishad will be enhanced to
make them focal point of development within the policy framework of the government.

In order to ensure efficient planning, implementation and operation and maintenance of
rural infrastructure, a community participation process will be adopted with involvement
of the local government institutions, NGOs, beneficiary groups, user communities, and the
private sector.
45

The road inventory data will be further upgraded to fully utilize HDM & DSS software for
better Road Asset Management (RAM).

Procurement functions and process and quality assurance including technical audit will be
enhanced.

Environmental and social dimensions will be incorporated into the engineering design after
assessing their impact properly and adequate mitigation and enhancement measures will be
undertaken.

Road Safety activities for Upazila and Union Roads will be undertaken and gradually
expanded.

Master Plan for Agricultural Development in the Southern Delta of Bangladesh

Bangladesh is part of the largest deltaic floodplain in the world. It slopes gently from the north
to the south, meeting the Bay of Bengal at the southern end. The coastal zone constitutes the
major part of the southern delta, which is physiologically and ecologically diverse and
environmentally most vulnerable. It includes important agriculture, fisheries, livestock, forest
and wildlife resources. The delta lies within three hydrological regions – south central, south
west and south east. These three hydrological regions illustrate i) tidal and salinity affects to a
large portion of the coastal zone; ii) the rivers are subject to frequent tidal surges and coastal
inundation; iii) the area is severely vulnerable to climate change including sea level rise
leading to occasional devastations; iv) besides shorter cool winter period limits cultivation of
many high value Rabi crops.
Due to the vulnerability of these areas to cyclones, storm surges and tidal inundation, salinity
intrusion and water logging, the agricultural, livestock and aquaculture activities are at serious
risk and need additional supports. Considering these challenges, climate change vulnerabilities
and unexplored potentials of the region, the Government of Bangladesh has decided to prepare
a comprehensive ten year master plan to provide a road map for an integrated development
effort in Bangladesh’s coastal zone aiming at i) increased agricultural productivity and
sustainable food security; ii) poverty reduction and iii) alternate livelihood development for
the poor. The Master Plan will focus on emerging new potentials in the delta mainly i)
technological breakthrough for increasing productivity- new varieties and breeds, plant and
animal health systems and strengthening Farmers Field Schools etc; ii) harnessing seasonal
and occasional quality surface water available for irrigation and iii) enhancement of
agricultural productivity through increased cropping intensity, reducing post-harvest losses,
modeling of climate events and options of crop diversification.
The Master Plan will unlock the potentials through interpretative analytical outputs, these
includes the followings but not limited to these only: soil, land and water resource mapping &
zoning; special mapping for land and water suitability to crops/cropping based on seasonal
variability; area specific vulnerability assessment with suggested adaptation measures;
alternative development options by sectors for boosting sustainable production; identification

46
of investment opportunities; and linkage with the 6th Five Year Plan and the Country
Investment Plan.
The process of preparation of the master plan is ongoing and the draft Master Plan is expected
to be available by the end of 2011. The process of formulation is being monitored by an Inter-
ministerial Committee headed by the Secretary, Ministry of Agriculture. The Government set
local level technical committees to provide and validate information. Food and Agriculture
Organization of the United Nations (FAO) is facilitating the entire process through an
interdisciplinary team of national experts with occasional backstopping from FAO technical
divisions and International Rice Research Institute. In the preparation process, all relevant
departments of the Government and other stakeholders’ participations including farmers,
NGOs, civil society, knowledge institution, private sector and development partners are being
ensured.

DEVELOPMENT RESOURCE ALLOCATIONS FOR AGRICULTURE, WATER

RESOURCES AND RURAL DEVELOPMENT

Agriculture is the largest private sector in Bangladesh. Much of the investment in production
and for diversification will come from the private sector. In view of the large number of small
holders, farm credit is critical for helping farmers make the right investments as well as for
working capital. So a major policy emphasis of the Sixth Plan will be to increase and improve
the distribution of farm credit. The focus of public investment will be to reduce the critical
bottlenecks to farm production in terms of rural infrastructure (water, electricity and rural
roads), to support the provision of critical farm services such as research and development and
extension, and to reduce the impact of flood through flood control measures. The planned
allocation of development resources for agriculture related activities in the Sixth Plan in
current and constant prices is shown in Table 1.3 and Table 1.4.

47
Table 1.3: Development Resource Allocation for Agriculture, Water Resources & Rural
Development in the Sixth Plan
(Taka Crore; Current Prices)

Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015

Ministry of Agriculture 1054 1563 2046 2606 3221
Ministry of Fisheries & 373 384 414 492 562
Livestock
Food Division 320 363 351 421 486
Ministry of Water Resources 1407 1649 1872 2202 2489
Rural Development & Co- 469 471 534 629 715
operatives Division
Total 3623 4431 5217 6351 7474

Table 1.4: Development Resource Allocation for Agriculture, Water Resources & Rural
Development in the Sixth Plan
(Taka Crore; FY2011 prices)

Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015

Ministry of Agriculture 1054 1454 1779 2127 2481

Ministry of Fisheries & 373 357 360 402 433
Livestock
Food Division 320 338 305 344 374
Ministry of Water Resources 1407 1534 1627 1798 1917
Rural Development & Co- 469 438 465 513 551
operatives Division
Total 3623 4121 4535 5184 5756

48
 CHAPTER 2: DIVERSIFYING EXPORTS AND
DEVELOPING A DYNAMIC MANUFACTURING
SECTOR

The SYFP target of reaching 8 percent annual GDP growth in the outer years is premised on a
prolific manufacturing sector growing at double digits on a sustained basis. Consequently, the
broad industrial sector will continue to account for a larger share of GDP compensating for the
secular decline in the share of agricultural sector. This trend is consistent with the stylized
facts of structural change in the process of development articulated by development
economists. Thus the strategy for achieving the high growth target under the SYFP and
beyond includes further industrial deepening supported by a highly-productive agriculture
sector. This was the basic thrust of the high-performing East Asian economies in the 1970s
and 1980s. For Bangladesh to reach middle income threshold by 2021, industrial expansion
must accompany hand-in-hand with highly productive farm and non-farm agriculture. A
strong and competitive manufacturing sector is especially important for creating productive
high income jobs.

OVERALL MANUFACTURING PERFORMANCE, STRATEGIES AND POLICIES

Review of Past Performance

In the 1970s and the 1980s the performance of the manufacturing sector was lackluster,
growing below the average growth of the economy. Following the initial debacle, the
manufacturing sector growth performance improved during the 1990s. The faster pace of
expansion of manufacturing relative to total GDP since 1990 caused its share to increase
gradually, rising from its low level of 12% in 1990 to 17.3% in 2009. The evolution of the
manufacturing sector in Bangladesh is indicated in Table 2.1.

In the 1970s and 1980s, manufacturing sector performance was constrained by the dominance
of poor performing nationalized enterprises, inward looking trade policies and inadequate
private investment due to poor incentives. The policy regime for manufacturing improved
significantly in the 1990s, based on investment deregulation, trade liberalization, better
exchange rate management and improved financial sector performance. The emergence of the
private sector driven, export-oriented readymade garments (RMG) sector as a dominant
economic activity considerably altered the structure of the manufacturing sector. Along with a
growing share of GDP, the manufacturing sector quickly dominated the export market and
contributed to an expanding share of exports. Together with remittance, the RMG sector has
emerged as an economic power house in Bangladesh.

49
 Table 2.1: The Structure of Bangladesh Manufacturing Sector, FY1975-FY2010
FY198110 FY199110 FY200110 FY201010
Size of the Manufacturing sector
Total (% of GDP) 11.8 12.9 15.6 18.5
Of which
- Large and Medium Scale 8.0 9.15 11.13 13.1
- Small Scale 3.18 3.7 4.46 5.3
Growth Rate (% annual average over the decade ending )
Total 2.0 5.0 6.9 7.6
- Large and Medium Scale 2.9 4.9 7.0 7.3
- Small Scale 1.0 5.1 5.8 7.9
Employment
Share of total employment 8.7 10.1 9.9 12.0
Exports
Percent of GDP 4.1 6.8 10.6 17.2
Manufacturing share (% of Total Exports) 65.5 78.9 92.1 90.9
RMG (% of Total Exports) 0.1 38.9 56.1 77.1
Source: Bangladesh Bureau of Statistics (BBS),

In Bangladesh the pace of industrialization has been gradual but steady without any shock
from internal or external factors. Over the years, there has been a moderate structural shift
from a predominantly agrarian economy to a more organized manufacturing sector. The result
is evident from the higher share of manufacturing in GDP as agriculture continues to decline
as a share of GDP, while services remained fairly steady throughout (Annex Fig. A1).

However, when this record is compared with the performance of the some East Asian
economies, it appears as a rather slow industrial deepening over the two decades. In
comparison with Bangladesh’s increase in GDP share of manufacturing from 12% in 1990 to
17.8% in 2010, Vietnam increased its share of manufacturing from 12.3% in 1990 to 21% in
2008; Malaysia from 24% to 28% over the same period. On the other hand, China’s share of
manufacturing has been steady at 32-33% over that period. Even Thailand’s manufacturing
grew so rapidly since 1990 that its share rose from 27% to 35 percent.

The common thread in the policies of these economies is the emphasis on private sector driven
growth, trade openness and the effective courting of foreign investment. Since 1990,
Bangladesh has also changed economic policy stance in these general directions though in a
more gradual way. Progress is most advanced in regards to emphasizing the role of the private
sector, but trade liberalization and attracting direct foreign private investment are less
advanced. One notable development in the economy is the predominance of manufacturing
goods in exports (90-95%) as the latter progressively becomes the driver of high growth.

Why Manufacturing Growth was Stronger in Some Countries

Economies with dynamic manufacturing sectors show at least three characteristics: (a)
manufacturing sector typically grows at double digits, (b) its share in GDP reaches 30% or
more, and (c) export and manufacturing sector performance tend to go hand in hand. Many

50
factors – economic and non-economic – determine performance of the manufacturing sector.
Asian countries that successfully transformed themselves from predominantly agrarian
economies to manufacturing powerhouses had one thing in common: they devised a package
of trade, investment and domestic support policies that created an overwhelmingly favorable
environment for private entrepreneurs to unleash their hidden talents for innovation, risk-
taking, and harnessing of domestic and external resources to their best advantage. For
Bangladesh, there is much to emulate from the success of East Asian economies like South
Korea, Malaysia, Thailand, and now, China. While East Asian economies of S. Korea, Hong
Kong, Singapore, and Taiwan, showed the path to rapid industrialization in the 1970s and
1980s through export-oriented development, emerging economies like Malaysia, China, and
India are showing the path to rapid growth within the new framework of globalization. Private
capital and entrepreneurship, deregulated industrial policy regime, trade openness, and liberal
foreign investment policy, all came together in creating the new export and manufacturing
powerhouses of India, China, and Malaysia. China and Malaysia have strongly adhered to the
strategy of making trade a strong pillar of economic growth having long ago abandoned the
import substitution regime, which lead to the inefficient operations of firms by compromising
their cost effectiveness and long-term competitiveness. India came on board with similar
policies starting in the early 1990s, but more vigorously since the start of the 21st century. The
results can be seen in its export growth of 20% plus with annual GDP growth in the 8-10%
range in the past decade.

In particular, low tariffs have been an integral part of their trade openness. With a cheaper
price tag on imported inputs, a revamped complementary trading relation with partners in
terms of production structure and regional supply chains, together with an enabling investment
environment, these countries gave rise to their light and heavy manufacturing industries whose
products became highly competitive globally, translating into a greater share of the world
market. Vietnam appears to be the new kid on the block, following in the footsteps of India
and China, and reaping the benefits of its own comparative advantage based on labor costs
coupled with greater linkages with international markets which has made it into an export
powerhouse to be reckoned with.

As highlighted before, Bangladesh, like other low income economies is yet to make the
transition to a modern manufacturing and services oriented economy. The manufacturing share
of China, Malaysia and East Asia on average is over 30 percent as compared with a low 17
percent in Bangladesh. Pakistan’s share is slightly higher at 19 percent, but like Bangladesh
remains a low industrialized economy. The cases of India and Brazil, which also exhibit low
share of manufacturing require a bit of explanation. Brazil, with a per capita income of $ 4710
in 2009 is in a different league and is already fairly well industrialized with organized services
providing the high income jobs and linked to serving the manufacturing sector. India similarly
is fairly well industrialized and its lower share is a reflection of the much faster expansion of
export oriented modern services such as Information Technology (IT).

51
Manufacturing Exports and the Diversification Challenge

One important structural change in manufacturing that has happened in Bangladesh is the
emergence of a dynamic export-oriented readymade garments (RMG) sector. The emergence
and expansion of the RMG sector is the direct outcome of the global Multifibre Arrangement
(MFA) regime, as well conducive policies undertaken by the government to ensure global
competitiveness of the industry. It was extremely good policy foresight that allowed the RMG
industry not to be subjected to high tariffs, in terms of intermediate inputs and raw materials
that have to be imported on upfront payment of duties. The RMG sector operates within a
“free trade” enclave in that all imported inputs come in under a bonded system duty free. Had
this not been the case, RMG exports would not have reached the heights they have reached,
given the economy’s import regime which is riddled with complex tariffs and other import
restrictions. A few other selected exports, such as leather products, and, recently, shipbuilding,
have also been given the facility of bonded imports. For the rest of exports and potential
exports, getting world-priced imported inputs is a challenge. As a consequence, export
diversification has not made much headway.

Other manufacturing industries such as jute goods, leather and frozen foods, engineering
products and pharmaceuticals have strong export potentials for driving the industry towards
higher growth. But, unlike RMG, these industries are yet to become major contributors to the
economy as can be seen from their export performance (Table 2.2). Thus export concentration
in a single product group – RMG – infuses an element of vulnerability to our export
performance.

Table 2.2: Export Performance of Major Commodities (in millions of USD)

Jute Frozen Engineering
Goods Leather Food Products Pharmaceuticals RMG
FY2008 318 284 534 220 43 10700
FY2009 269 398 454 189 45 12348
FY2010 540 226 445 311 41 12497
Source: Bangladesh Bank

For many decades prior to the emergence of RMG exports, jute and jute goods dominated the
export sector making up 70 percent of exports until 1981. By 1990, however, RMG exports
had overtaken Bangladesh’s traditional exports and, by the close of the 1990s, export
concentration emerged afresh, with RMG exports reaching a share of 77 percent. While
Bangladesh’s export growth for the last decade and a half could be characterized as robust, a
sudden decline in demand for Bangladeshi garments would send shock waves throughout the
economy. Such a prospect can be avoided through the creation of a diversified export basket.
That remains the major challenge of trade policy.

52
To promote export diversification, the Government in its export policy has adopted a strategy
of according the highest priority to several emerging exports that demonstrate high potential:

1) Agro-products and agro-processing products;

2) Light engineering products (including auto-parts and bicycles);
3) Footwear and leather products;
4) Pharmaceutical products;
5) Software and ICT products;
6) Home textile;
7) Ocean-going Ship Building Industries; and
8) Toiletry Products.

In addition, the Government is selectively according bonded import facilities to more

emerging exports (e.g. agro-processing, ship building). In future, this facility may not be
limited to 100% export-oriented industries only but extended to industries producing for both
domestic and export markets. Further, the Duty Drawback Scheme will be revamped to ensure
world-priced inputs to exporting firms without long lags and high transaction costs for
reimbursements.

Manufacturing and the Employment Challenge

Bangladesh has made progress in specializing in labor-intensive manufacturing (e.g. RMG and
footwear) where its comparative advantage lies. Yet the employment impacts so far fall short
of expectations. The ability of the manufacturing sector to create jobs has been sharply weaker
than its growth and export performance. The share of manufacturing in total employment
remained virtually stagnant at around 8 percent well until the 1990s. This share began to rise
slowly once the job creation effects of the RMG sector began. As a result, the employment
share has now grown to 12 percent (Table 2.3). Nevertheless, this is still well short of the role
that the manufacturing sector has to play to help create productive jobs in Bangladesh. This is
a major challenge for the Sixth Plan.

Table 2.3: Shift in the Structure of Employment, 2005/6-09

2005-06 2009
Broad Sectors (In Millions)
Agriculture 22.9 22.3
Manufacturing 5.3 6.0
Services 19.3 21.7
Total 47.4 50.0
(In Percent )
Agriculture 48.1 44.6
Manufacturing 11.2 12.0
Services 40.7 43.4
Source: Bangladesh Bureau of Statistics

53
Policies Underlying Manufacturing Performance

Successive governments have realized the importance of the manufacturing sector in helping
Bangladesh achieve better economic outcomes and hence tried to design policies to create a
dynamic and globally competitive manufacturing sector. Seven industrial policies have been
designed and implemented in quick succession in between 1972-2005. The impact of such
policies has been varied due to both exogenous and endogenous shocks that the sector was
exposed to over the course of time.

One of the most notable shifts in policy stance has been the drive towards a liberal market
economy since the early 1990s with private sector being the main driving force of growth.
This is a notable paradigm shift from the early state-led growth model where the state-owned
enterprises were the main force behind growth. Unfortunately and despite best efforts of the
Government of Bangladesh a number of policies and incentive packages remained stalled on
their tracks due to lack of proper implementation modalities and lack of coordination among
various agencies/institutions assigned with implementing the policy. Hence due to the existing
challenges and rigidities, the manufacturing sector was unable to unleash its true growth
potential.

The trade regime in Bangladesh also went through a series of reforms especially since the
early 1990s, resulting in a shift of regime from an inward-looking import-substituting bias to
an outward-looking export-orientation bias with higher integration of the economy in the
global economy. Moreover, foreign direct investment has increased several times though the
growth rate is much lower than some of our comparators like India, Pakistan, or Vietnam.

Over time the Government has employed different measures to provide incentives to
manufactured exports. As indicated earlier the reforms of the trade regime initiated in the early
eighties continued to be undertaken by successive governments for greater outward-
orientation. However, although the export sector has flourished, the momentum in export has
been dominated by Ready Made Garments (RMG). Other export items failed to replicate the
impressive success of this sector, primarily because the tariff and import regime precluded the
absorption of world priced inputs. Exclusive facilities enjoyed by the RMG sector essentially
allowed it to exploit Bangladesh’s labor cost advantage to the fullest. Footwear and ship-
building have been given the RMG treatment and they are booming. Other non-RMG exports
still face an adverse policy environment which will have to be addressed early on during the
SYFP in order to achieve the export and growth targets of the plan.

Trade liberalization improves manufacturing efficiency and competitiveness. Since much of

the impetus to trade liberalization came in the early 1990s, it is possibly most appropriate to
compare the performance of the manufacturing sector in phase II and phase III, with the caveat
that even phase 2 benefited from significant deregulation and the rapid expansion of the
export-oriented garment sector based on establishment of the free trade zones. Nevertheless, it

54
is accepted that tariff reductions and QR removal introduced a substantial degree of import
competition in the local manufacturing sector, forcing enterprises to restructure and raise
productive efficiency. Many did, such as ceramics, textiles (new spinning capacities), RMG
accessories, electrical goods, etc. Those that failed to adjust including many public and private
firms had to close down and lay off workers. In this group there were a large number of SOE`s
involved in jute and cotton textile mills. Private enterprises which were beneficiaries of high
protection for long but failed to adjust following liberalization had no other option but to close
down.

The change in trade regime and opportunities created in the world market as part of these
developments have been possible also because of the dynamism of the entrepreneurs who
could exploit the opportunities in the international market and deal with the risks. The trade
regime of Bangladesh has also contributed greatly towards efficient operation of the industry.
Manufacturing growth averaged 8.2 percent per annum (only 4.3 percent for non-RMG) in the
first half of the 1990s during the peak of the liberalizing period, but tapered off to an average
of 5.6 percent in the latter half, to end the decade with an average of 6.9 percent growth,
compared to 5 percent in the 1980s. These averages mask the fact that it was the RMG
enterprises (in the medium and large scale group) that grew by over 20 percent and drove
manufacturing growth, while there was stagnation and even decline in some import-
substituting. Import liberalization and the abolition of import licensing improved access of
small enterprises to capital machinery, raw materials and implements that could now be
purchased readily and at low cost.

An important feature of the export basket has been its concentration on a few commodities.
Jute and jute goods, tea, leather and leather products, and frozen foods were the major exports
up to late eighties. Since FY88 woven and knit garments, frozen foods, leather and leather
products and jute and jute goods have been the major exports. The most remarkable feature of
the export basket is the emergence of readymade garment (RMG) in the late 70s as export and
its increasing dominance in the basket over the years. Readymade garment has replaced jute
and jute goods in importance. Thus while the contribution of jute and jute goods declined from
about 69 percent in FY81 to about 3 percent in FY09, readymade garment constitutes more
than 75 percent of total exports in recent years. Equally striking is the fact that by the turn of
the century, manufactured goods made up over 90% of our exports.

Major Constraints in Manufacturing Sector to be addressed

Weak Investment Climate

Reforms undertaken in the late 1980 and early 1990 led to a secular increase in growth of
private sector investment in thus leading to an increase investment in the manufacturing
sector. Evidence of this can be seen in the increased average growth rates from the 1980-1999.
However, the rate of growth of the private sector has stagnated recently due to various
investment climate related and infrastructure issues. Importantly, infrastructure gap has been

55
widening and is being characterized as a binding constraint for growth. Aggregate investment
in the domestic economy has stagnated in the 24%-25% of GDP range in recent years, despite
a steady increase in the national savings rate. Although private sector investment has been
increasing at a pace slightly above the rate of growth of GDP, a secular decline in public
investment in relation to GDP largely offsets that, keeping total investment broadly stagnant in
relation to GDP. This low level of investment significantly falls short of the investment rate
needed to support the 8% GDP growth target set for the end of the Plan period and a vibrant
manufacturing sector. Within the private sector, there has been very little inflow of foreign
investment, including in the manufacturing sector.

The strategy for the SYFP is to stimulate gross domestic investment early on through
acceleration of public investment in major infrastructure projects (e.g. Padma Bridge, Elevated
Expressway) while putting in place a policy and legal framework for implementation of
public-private partnership projects and private investment. The ultimate goal is to achieve a
rate of domestic investment that will lead to GDP growth of 8% by the close of SYFP, i.e.
achieving the rate of gross domestic investment equivalent to about 32% of GDP. Much of the
additional investment from private sector will need to go to manufacturing. Making the
investment climate conducive to attract both domestic and foreign investment into
manufacturing is a key policy challenge.

Table 2.4: Investment Climate in Doing Business 2010

Ease of
Starting Trading
Doing Employing Getting Protecting Paying Enforcing
Economy a Across
Business Workers Credit Investors Taxes Contracts
Business Borders
Rank
Bangladesh 119 98 124 71 20 89 107 180
India 133 169 104 30 41 169 94 182
Malaysia 23 88 61 1 4 24 35 59
China 89 151 140 61 93 125 44 18
Vietnam 93 116 103 30 172 147 74 32
Source: International Finance Corporation

A number of factors have contributed to the depressed level of investment and FDI in
Bangladesh compared to other regional counterparts. The World Bank-IFC Doing Business
2010 report highlights some of the factors that have led to a favorable/unfavorable business
environment in some Asian countries (Table 2.4).

Table 2.4 suggests that Bangladesh has performed modestly in terms of creating a conducive
investment climate. Compared to East Asian economies massive improvements are required to
reach the levels of the required investment for the manufacturing sector. Bangladesh’s
weakness in terms of rankings in some of the indicators suggests that the investment climate
has not been very friendly, as result of which both domestic and foreign investment suffered.
A reversal of the weak investment climate is imperative for achieving the goals of the SFYP.

56
Anti-export Bias of the Trade Regime

As discussed in previous sections reforms allowed the export sector to flourish, however the
success of the export sector is largely attributed to the RMG sector. All other non-RMG major
export items have had only a modest growth since the late 1980s. Though some new items
have been added to the export basket the country’s export base remains narrow and
undiversified. Without export diversification Bangladesh may be exposed to negative export
shocks. Therefore the existing policy anomalies have to be removed and supportive steps for
diversification of exports will be undertaken during the Sixth Plan period.

Despite the measures for export promotion and tariff rationalization, a measure of anti-export
bias still prevails. The structure of incentives created by the trade policy regime still favors the
production of domestic import substitutes and creates barriers for emergence of new export
industries and expansion of export industries not benefitting from special measures. Given that
SFYP puts a lot of emphasis on export of manufactures, concerted efforts will be made to
remove the remaining anti-export bias to create a neutral policy regime between import
substitution and export promotion in order to focus both on manufactures that have export
potential and industries which already export but whose potentials are not fully realized.

Manufacturing Suffers from Power Shortages

Firm level survey data provides useful micro-level data concerning the factors that are holding
back the performance of the manufacturing sector. Exponential growth in electricity demand
induced by strong economic growth performances has strongly outpaced the available electric
supply leading to a situation of acute power shortages. As a result private sector performance
is severely hampered. One of the main constraints in the manufacturing sector is the persistent
under utilization of capacity due to power scarcity. A recent study highlights this point, it
reports that on average firms use 80% of their capacity and in general metropolitan firms point
to electricity as the major reason for underutilization of capacity followed by working capital
financing shortages.

Problems of electricity outages effect both metropolitan and non-metropolitan manufacturing

businesses. The heavy reliance on generators in Bangladesh implies understatement of the true
extent of damage to the poorly performing electricity grid. Sectors which heavily rely on
power such as RMG, chemicals etc are heavily reliant on generators. However, the historically
less successful industries with less access to investment resources are the hardest hit due to
their dependency on electricity, including textile, leather and light engineering. Moreover
generators represent a significant investment of a firm’s book value. Therefore SME’s are the
hardest hit. Continuous power shortages already cost the economy two percentage points of
national growth.

The SFYP includes an energy sector plan (Chapter 4) to fully bridge the gap between demand
and supply of power by the end of the plan period.

57
Land Management Emerging as a Serious Problem

Serviced land is the single limiting factor for new or expanding entrepreneurs. The three main
issues surrounding access to land are a) the cost of land, b) issues of procuring land and c)
availability of serviced land. Other factors such as titling and registration, limited financing for
long term commercial mortgages and zoning, have also have been identified as obstacles to
the growth of the manufacturing sector. Doing Business in Bangladesh 2008 ranks Bangladesh
among the ten worst countries for registering properties.

Given the importance of this resource in an entrepreneur’s decision to invest in the

manufacturing sector further reforms and changes have to be introduced otherwise the growth
of the manufacturing sector as one of the major sectors in the economy will be in jeopardy.

Access to Credit Still Inadequate

Bangladesh compares favorably with other countries in the South Asian region in terms of the
domestic credit to the private sector, though long term lending as well as lending to smaller
firms and firms in rural non-farm sector has remained inadequate. The financial system is
dominated by the banking sector and massive reforms during 2000-01 resulted in the declining
importance of nationalized banks.

The current lending system is based on collateral and hence is not very conducive for most
firms in the country. The existing rigidities of the financial system result in inefficient
reallocation of resources and reduce growth potential. In general, banking innovation is
lacking. The narrow product mix offered by the banks weakly matches’ client preferences.
Banks are unable to differentiate between credit worthy customers and offer better financial
products suited to their needs.

The situation calls for completing the unfinished reforms in the financial sector to strengthen
financial intermediation, and create a modern, dynamic and business friendly banking system,
fully equipped to support the goals of the SFYP.

Labor Productivity Remains a Problem

Abundant and cheap labor has been the primary source of Bangladesh’s comparative
advantage in labor-intensive manufacturing. In addition, existing labor laws allow greater
labor market flexibility than in other South Asian countries. However, while Bangladesh’s
manufacturing labor is cheap and growing at a rapid pace, labor productivity has been low.
Despite relatively light labor regulations, structural barriers impact the efficiency of the labor
markets, including mismatches between economic performance and labor allocation, pressure
from the public sector, skill shortages and mismatches. More attention needs to be directed to
assist the transition of workers from agriculture to other sectors, as well as addressing an
overall rapidly growing labor force, gender issues and skills and training.

58
Research has shown that there is a tendency for both small and large metropolitan firms to
report an acute shortage of skilled labor. Even though there are a high proportion of temporary
workers, the situation is not improved since temporary workers tend to be unskilled. The
education qualifications of these workers tend to be low both in terms of quality and
attainment. Nearly 20 percent of the workers employed in the manufacturing sector have no
education at all.

Gender Bias Hampers Entry of Female Workers

From a regional perspective the participation rates of women in metropolitan areas in

Bangladesh tend to be higher in large firms and the garment sector. However, in non-
metropolitan areas, studies have shown that 26 percent of all women working in nonfarm
enterprises are employed in the garments, 22% in textile, 14% in food processing, 11% in the
manufacturing of non – metallic mineral products etc. In general most women working in non
metropolitan areas tend to be family workers.

However, women entrepreneurs tend be less educated and are more likely to be self-taught
compared to their male counterparts; however this trend is changing slowly. Moreover due to
financial market imperfections and potential segregation, women tend to report that obtaining
finance and cost of finance as major constraints compared to their male counterpart.

Weak Research and Technology

Productivity gains remain low due to weak innovation and low investment in technology. Only
a handful of firms have internationally recognized quality certification, with highest
proportion in garments and manufacturing. Furthermore, even fewer firms use technology
licensed from foreign companies, with higher proportion in garments, light engineering and
chemicals/pharmaceuticals.

Some general feature of the manufacturing sector has been the low R&D spending as
proportion of the firm’s sales value and minimal employment opportunities for R&D
professionals; however, this is not true for the RMG and pharmaceuticals sector. The main
methods of innovation have been new equipment, new management, new products and new
worker skills. The availability of new technology and technological change are also vital for
the rural non farm sector. However, funding scarcity for investment in new technology also
works as a major impediment in innovating.

Recognizing the strong relation between innovation and productivity gains, greater efforts will
be devoted during the SFYP to facilitate technological innovation and change in the
manufacturing sector. An integrated approach will be considered whereby information, cost
and financial market rigidities are weakened in order to let the manufacturing sector reap the
benefits of industrial spillover effects and be an innovator in their own right.

59
Government Regulations and Enforcements are a Constraint

Taxation: Taxation in Bangladesh is marred by complex rules, administrative hassle, poor

compliance and low collections. The complexity of the tax rules open opportunities of graft
and result in minimum tax payment with frequent underreporting of profit. Furthermore, tax
lawyers need to be hired to comply with regulation raising the cost of compliance. In the past,
corporate income taxes have tended to be one of the highest in the region. Due to high
corporate tax rates, evasion is evident. However, recent simplifications have eased the problem
for businesses somewhat. Strong lobbying and complicated regulation leads to companies
continue to operate tax free even after their infancy. Actual tax payment show significant use
of tax holidays and exemptions relative to declared profit.

Red tape: Research has shown that a good proportion of firms in the country consider the
economic and regulatory policy uncertainty a major constraint to business. Entry and exit is
also not an easy task and acts as a barrier to business. Entry takes a long time and costs a lot
due to registration fees; lawyers cost and trade/operating license. Moreover corporate exit is
costly. It takes about four years to go through the bankruptcy procedure; this is lower
compared to India.

Enforcement of contract: A well functioning legal and judicial system is imperative to create
effective checks and balances and to help enforce contracts and settle disputes. While the
constitution and laws are generally sound the justice system is subject to excessive delays and
is perceived by many as impartial. A research estimate suggests that firms perceive the
functioning of courts on business matter as a major obstacle to business. Most companies use
informal mechanism to enforce contracts or to avoid agreements.

Slow Privatization of State-owned Enterprises (SOEs)

After three decades, the program of privatization of state-owned enterprises (SOE) remains
incomplete due to delays and complicated procedure in the privatization process, problem of
proper valuation, land disputes and delay in registration of land and assets, and so on. The
vision of attaining middle-income status by 2021 rests squarely on a dynamic private sector.
That on vision will remain unfulfilled unless, on the one hand, SOEs are whittled down and
substantial investments are forthcoming from the private sector.

Whilst the privatization of identified SOEs will continue, the SFYP stipulates efforts to
strengthen the SOEs that remain in the public sector. Policies will include improving
management, commercializing these enterprises, improving labor policies and eliminating all
bureaucratic interventions. The Government recognizes that SOEs must be profitable
enterprises and be able to compete effectively in the market.

60
Targets, Strategies and Policies for the Manufacturing Sector in the Sixth Plan

SFYP Targets for the Manufacturing Sector

Vision 2021 stipulates that Bangladesh will attain middle income status by 2021. In order to
achieve this goal; the government set its economic growth target that rises to 8% in 2015 and
10% in 2021 with an average of 7.3% for the SFYP. In order to fulfill this vision the
manufacturing sector would play a central role. The strategy of the Government has been to
facilitate a dynamic, vibrant, pro-export and competitive manufacturing sector that would
eventually contribute some 30% to national income and be able to absorb 20% of the work
force. A possible growth path that is consistent with this target is presented in Table 2.5.

Table 2.5: Projection of Sectoral Growth and shares in GDP

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Growth Rate (%)
Agriculture 5.2 5.0 4.5 4.4 4.3 4.3
Industry 6.6 9.2 9.6 9.9 10.5 11.5
of which Manufacturing 6.5 9.5 9.8 10.1 10.7 11.7
Services 6.5 6.6 6.8 7.1 7.3 7.8
GDP 6.1 6.7 7.0 7.2 7.6 8.0
Share as % of GDP
Agriculture 18.6 18.4 17.7 16.9 16.2 15.5
Industry 28.5 28.7 28.9 30.4 31.3 32.0
of which Manufacturing 17.9 18.2 18.7 19.6 20.4 21.1
Services 52.9 52.9 52.9 52.7 52.5 52.5
Source: BBS and SFYP Projections

It is projected that during the SFYP, the manufacturing sector will have to outpace both the
agricultural and service sector and follow a smooth upward trajectory. The manufacturing
sector has to perform consistently and follow a steady upward trend. The SFYP aims at an
average of 10% annual growth in manufacturing, rising from 6.5% in FY10 to 11.7%. Among
the manufacturing activities sectors such as ‘food processing’; ‘leather and footwear’, ‘textile
and clothing’, ‘pharmaceutical’, ‘ship building’, toys, ceramics and furniture are likely to be
the main growth generators (Table 2.6). These labor-intensive activities are expected to

Table 2.6: Manufacturing Growth Projection for SFYP

FY2010 FY2011 FY2012 FY2013 FY2014 2015

(Annual growth rates %)

Manufacturing 6.5 9.5 9.8 10.1 10.7 11.7

Leather Products 7.7 8.5 9.4 10.5 11.2 12.2
Textile & Clothing 7.6 14.4 13.5 13.8 14.2 15.1
61
 Chemical Fertilizer 5.3 6.1 6.7 6.8 7.0 7.4
Machinery 5.9 6.2 6.6 6.7 7.2 7.9
Other Manufacturing 5.8 8.3 8.3 8.5 9.5 10.2
Share as % of Total GDP

Manufacturing 17.9 18.4 19.0 19.7 20.5 21.0

Leather Products 0.8 0.8 0.8 0.9 0.9 0.9
Textile & Clothing 7.1 7.2 7.5 8.0 8.4 8.7
Chemical Fertilizer 1.9 1.8 1.9 1.9 1.9 1.9
Machinery 4.8 5.2 5.4 5.3 5.5 5.5
Other Manufacturing 3.3 3.4 3.4 3.6 3.8 4.0
Source: SFYP Projections

experience double digit growth rates toward the end of the plan period. Diversification of the
manufacturing base will be promoted by keeping import channels open and facilitating
Bangladeshi firms to vertically integrate within the global production chains. ‘Machinery’ and
‘other-industries’ sectors are also projected to become more buoyant due to the expansion of
the economy and gradual diversification of exports. One of the thrusts of the industrial policy
during SYFP will be to create scope for emergence of new activities (in exports or domestic
production) and expansion of SMEs to take advantage of scale economies. However, due to
paucity of gas supplies as well as uncertainty with regard to the use of coal, the growth
performance of ‘chemical-fertilizer’ and ‘petroleum’ sub-sectors would likely remain
moderate. Removal of critical infrastructure bottlenecks in power and transport sectors
through massive new investments will be critical for planned acceleration of manufacturing
sector growth.

Exports – the driver of manufacturing growth: The main driver of manufacturing growth will
be the export markets, although growing domestic demand from higher income generation will
also provide impetus to import substitute production. The case for exports is very clear. In
spite of a burgeoning domestic market, its size is limited when it comes to the need for
creating over a million additional jobs every year with decent wages. The export market is vast
allowing industries to take advantage of economies of scale and the scope for creating jobs and
income is unlimited. Already manufacturing exports make up more than 90% of our export
basket. High manufacturing growth over the next decade will hinge on continuation and
improvement on the superb export performance of the past 15 years. The key is to produce
competitively products in which Bangladesh has comparative advantage and formulate
strategies to open export markets. Based on the recent performance, export sector under the
Plan period is projected to grow by 16% per annum in US dollar terms, which is about the
same rate as in recent pre-global crisis years. The projection entails an increase in the share of
exports in relation to GDP to rise by at least 5 percentage points to 22% of GDP by the end of
the SFYP reflecting a leading role that export sector is envisaged to play in the SFYP. While
RMG exports would continue to dominate the export outlook, some important non-traditional
exports like footwear and leather products, light engineering products (bicycle and
electronics), pharmaceuticals, ceramics, jute goods, ocean-going ships, and some labor-
62
intensive products not yet on the export radar, are likely to grow at a much faster rate. This
diversification is a key objective underlying the strategy for manufacturing growth.

Strategic Policies for Manufacturing Exports in the Sixth Plan

In order to get the maximum leverage out of manufacturing sector and its competitiveness in
the global marketplace, the Sixth Plan would focus on four strategic approaches.

Export diversification. Bangladesh experienced double digit export growth over the past two
decades. Yet this superior performance masks the fact that the surge was limited to one
product group – readymade garments – aided not least by the MFA regime. With over two
million jobs and 77% of export earnings from the RMG sector, too much of the nation’s
fortune is riding on this one sector. Export concentration in readymade garments makes the
economy, jobs and income, extremely vulnerable to external shocks arising from changes in
global demand for RMG. The government’s focus on export diversification as a cornerstone of
its export policy will continue and intensify during the Sixth Plan period.

Export concentration is not a new phenomenon for Bangladesh. For many decades prior to the
emergence of RMG exports, jute and jute goods dominated the export sector making up 70
percent of exports until 1981. The shift into manufactured exports materialized for the
Bangladesh economy thanks largely due to an external event – the multi-fiber arrangement
(MFA) of 1974 – that offered a lifeline for the emergence and rapid expansion of the RMG
industry. By 1990, RMG exports had overtaken Bangladesh’s traditional exports and, by the
close of the 1990s, export concentration emerged afresh, with RMG exports reaching a share
of 77 percent. While Bangladesh’s export growth for the last decade and a half could be
characterized as robust, a sudden decline in demand for Bangladeshi RMG would send shock
waves throughout the economy. Such a prospect can be avoided through the creation of a
diversified export basket. Herein lies the rationale for an effective strategy for export
diversification.

But in the context of the Sixth Plan, the strategy of export diversification will not be limited to
product diversification in the export basket. Rather, the strategy will embrace many different
facets, each of which addresses the vulnerability aspect of export concentration, as
summarized below:

• Product diversification – introducing range of new products in the export basket.

• Geographical diversification – widening the range of destination markets for exports.
• Quality diversification – upgrading the value of existing products, i.e. moving up market
from low end to high end products (described as moving up the value chain).
• Goods-to-services diversification – seeking opportunities to expand non-merchandise
exports.
• Intermediate goods diversification – product diversification need not imply adding only
final consumer goods in the export basket – as is popularly understood in Bangladesh.

63
 There are global opportunities for plugging into the supply chain of export powerhouses
like China, something that East Asian economies have done successfully. That requires
Bangladesh to diversify its manufacturing base into backward linkage industries producing
a wide range of intermediate goods for exports within the globalized production chain.

Finally, it is critical that the trade policy regime is geared to ensure export competitiveness in
general while facilitating emergence and expansion of new export products. Bangladesh’s
labor cost advantage remains strong though productivity is a question mark. Yet this
advantage, properly harnessed, could yield surprising rewards within the current scheme of
globalized production and supply chains, provided the trade regime is right. The success of
RMG is clear evidence of this phenomenon.

If export diversification is to be the cornerstone of an export strategy, at least three aspects of

the trade policy regime will deserve close attention during the Sixth Plan:

• Ensuring export competitiveness in general – by addressing border barriers (e.g. tariffs)

and beyond-the border constraints (e.g. trade infrastructure, energy and
telecommunications, regulations, finance).
• Reducing anti-export bias of the trade regime – several researches provided ample
evidence of anti-export bias of the current import, tariff and subsidy regime that favors
import-substituting production over exports. The duty-drawback scheme to provide world-
priced inputs for export production has proved inadequate. Eliminating or reducing the
built-in anti-export bias that still remain will be key to switching the incentive regime in
favor of exports.
• Reducing anti-diversification bias – because of the stellar success of RMG exports, trade
policy and incentive regime have a clear focus on this sector which is provided a free trade
channel plus logistic support (duty free import of inputs, bonded warehousing facilities,
back-to-back LC, rapid custom clearance). While such a policy is appropriate for making
RMG exports competitive on a global scale, attention needs to be focused on similar policy
environment for emerging and potential exports without which they face formidable
barriers in the context of a high-tariff and restrictive import regime in Bangladesh. This
particular feature of anti-diversification bias could be unique to Bangladesh and will be
addressed during the Sixth Plan.

The China opportunity: A window of opportunity that beckons Bangladesh has its roots in
what is going on in China known to the world as the export powerhouse, as the biggest source
of cheap exports of all manner of goods, from clothing and toys to consumer electronics and
durable goods like air conditioners and refrigerators.

Abundant, cheap, and productive labor was the primary source of China’s global competitive
advantage. As a natural phenomenon of industrial success, that advantage is fast eroding.
Wages are rising in China, where factory workers are paid three to four times the wages of
Bangladeshi workers. In addition, acute labor shortages have appeared in key economic

64
zones. Wage-push inflation in China means that competitive advantage is no longer assured, at
least not for the labor intensive commodities whose fabrication is less complex and demands
relatively low-skilled workers. Examples of these Chinese products include readymade
garments, shoes, electrical goods, car parts, toys, kitchenware, and multifarious consumer
goods. In these sorts of products, China’s competitive edge stemming from low labor costs is
fast eroding.

That is not all. Pressure is mounting on China to revalue the Yuan – a measure that will make
its exports dearer and therefore less competitive. Though China has not wilted under this
pressure, analysts believe gradual Yuan appreciation in the months ahead is a very real
possibility. This adds the third element in the erosion of Chinese cost competitiveness, apart
from rising wages and labor shortages. In the current scheme of global competition, the loss in
competitive advantage for one country becomes a gain for one or more countries. Those ready
to gain from China’s falling competitive edge in labor-intensive products are countries like
Bangladesh, Vietnam, Cambodia, Indonesia, Philippines, and even India.

What is notable is that developments in China have set in motion some dynamic adjustments
around the globe. Investors are scurrying for the next best location for manufacturing clothing,
shoes, toys and other labor-intensive manufactures. Why not Bangladesh? Labor costs,
investment climate, and trade policy will be the critical factors determining location and
success of the next export powerhouses.

During the Sixth Plan period, Bangladesh will position itself comprehensively – with
supportive incentive schemes, investment incentives, and liberal import regime – for a solid
berth in the new alignment of exporters. In terms of attractive trade and investment policies,
Bangladesh will match countries like Vietnam and Indonesia which are vying to take a bigger
chunk of the Chinese pie which is up for grabs. This once-in-a-lifetime window of opportunity
may not last for long. Success in this effort will ensure Bangladesh’s claim for middle income
status within a decade.

Export restructuring in a globalized economy: Global production sharing has been a striking
feature of world trade in recent years. It generally entails the breaking up of the production
process into vertically separate stages carried out in more than one country, involving both
backward and forward linkages from the production stage in the commodity chain. Analysts
have pointed out that the superior export performance of East Asian countries can be partly
attributed to their strategic use of cross-national production networks within a globalized
production system. Bangladesh manufacturing exports could also get a strong boost if it
positions itself suitably within the global production and supply chain.

Two types of commodity chains have been identified:

Producer-driven commodity chains (PDCC): PDCC tends to be characterized in capital and

technology intensive industries (e.g. automobiles, computers, semiconductors, and heavy

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machinery). Transnational corporations play a central role in coordinating production
networks. International sub-contracting of components is common for most labor-intensive
production processes. The main barrier to entry for this type of production network is capital
and propriety know-how. Moreover out sourced production is controlled by TNC mainly
through equity investment.

Buyer-driven commodity chains (BDCC): These types of chains are most prevalent in
industries which are characterized by large retailers, branded marketers and trading
companies. These businesses usually set up decentralized production networks in a variety of
exporting countries, moreover the branded companies usually provide the design and order the
goods and supply the specification. This pattern is common in labor-intensive consumer goods
such as garments, toys, footwear etc. The main barriers to entry are product development,
advertising etc. Control of production takes place through non-equity arrangements with local
firms through sub contracting. In essence the Wal Marts and Nikes do not manufacture the
products; they just design and sell. In the BDCC system there is a physical separation of
production activity from the design and marketing stages.

Indeed the new aspect of globalization is the ability of producers to slice up the value chain by
breaking up the production process into many geographically separated steps such that a good
is produced in a number of stages in a variety of locations, adding value at each stage. The
assembly stage is a labor intensive activity using unskilled labor in which countries like
Bangladesh have a comparative advantage. In readymade garment exports, Bangladesh has
already taken advantage of the BDCC system, but could reap similar benefits in other products
such as toys, footwear, auto parts, TV parts and components. Trade in parts and components in
the machinery sector are the fastest growing segment of world trade. The rise of China as a
low cost assembly hub has boosted component production and assembly in other countries.
During 2005-06 components manufacturing trade in Asia were above the world average by 15
percent and made up almost 75% of East Asian trade. During the Sixth Plan period
Bangladesh will have to position itself as a player in the global production chain based on its
comparative advantage within a market niche. Its long experience with garment production
chain gives it a competitive edge over newcomers.

Working on market access issues: Producing products of export interest and in accordance
with Bangladesh’s comparative advantage based on its factor endowments is only the first
albeit the key step for export growth. Yet being competitive in exports is only a necessary
condition for export success. Global trade is subject to various tariff and non-tariff measures
that serve as barriers to market access, particularly for an LDC like Bangladesh seeking new
export destinations and trying to open existing markets wider. For export success to be ensured
on a sustainable basis, the government will be playing a proactive role in continuing efforts
under the bilateral and multilateral umbrella to obtain Bangladesh’s rightful claim to market
access for diversified products and destinations.

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It is well known that the Uruguay Round of trade negotiations opened global trade and
reduced overall tariffs, but left the peak tariffs on products of export interest to LDCs like
Bangladesh (e.g. tariff peaks on textiles and clothing). Although this has been partly
compensated by various preferential schemes offered by OECD countries, such as GSP and
EU’s EBA, there are formidable challenges to be faced in reducing tariffs on Bangladesh’s
major export product (RMG) and emerging products that might be subject to WTO-compliant
rules under SPS and TBT. A two-track initiative is visualized: (a) the government in
partnership with chambers and think tanks will vigorously pursue the LDC option for S&D
preferential market access under WTO’s Doha Development Round; (b) on a bilateral basis,
the government will continue to work on obtaining duty-free access for Bangladesh exports
into developed markets such as USA, Japan, and Australia, while pursuing low-tariff market
access options via reaching free trade agreements with individual emerging market countries
or groups.
Furthermore, Bangladesh will also pursue the regional option to open markets and expand
trade with neighboring countries in South and East Asia, under various regional or bilateral
trading arrangements (e.g. through SAFTA, BIMSTEC or potential bilateral FTAs). Given
Bangladesh’s current tariff regime, most research indicate high cost of trade diversion from
these initiatives, thus requiring further rationalization of tariffs so that benefits of trade
creation offset trade diversion costs from regional FTAs. To gain market access through RTAs
Bangladesh will have to reduce tariffs further, without which it would be difficult to forge
regional trade alliances.

Industrial Policy 2010 to Support SFYP Strategy

Industrial Policy 2010 initiates the first year implementation of the Sixth Plan strategy for
deepening of industrialization in Bangladesh. It lays the foundations for a dynamic
manufacturing sector and robust export growth. Slowly but steadily Bangladesh is now
gearing up with the right package of policies to attain double digit manufacturing growth
during the SYFP, driven by high-performing exports that should be clocking growth rates of
20% plus on a sustained basis.

Objectives of the 2010 Industrial Policy

 Provide a policy and institutional framework that creates and sustains a momentum of
accelerated industrial growth, employment generation and improvement in living
standards.

 Give clear signal to the private sector highlighting government’s commitment to private
sector led industrialization strategy.

 Attempts to rationalize the existing incentives structure for attracting higher levels of
private investment in areas of dynamic comparative advantage in the economy. The Policy
also indicates areas of private-public partnership that are critical for enhanced private
sector participation in the industrialization process.
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 Identifies needs that are critical for enhancing the competitiveness of the industrial sector
and spells out business support and policy measures for meeting these needs.

 Spells out measures for promotion of cottage, small and medium industries.

 Outlines measures needed to develop and diversify the exports.

 Spells out policy and institutional arrangement to ensure that the industrialization process
is compliant with internationally agreed environment, health, safety and work standards.

Strategies for Manufacturing Sector

• Private sector will spearhead the industrialization drive. As its central tactic, it will be
abetted by the productive nurturing of agro-processing and labor-intensive industries. The
government will be limited to the role of a facilitator, pushing for and creating an enabling
environment for attracting increased private investment in areas of dynamic comparative
advantage. Tariff protection will be given on a time bound basis to activities determined to
have potential comparative advantage in the long run.

• Industrial investment by the state will only be in areas where there is a need to
complement private-sector investment, or where there is an overriding security concern or
social objective to be met. Efforts will be made to stimulate inflow of investment, at once
nationally and internationally, and especially from non-resident Bangladeshis. The
government will ensure assistance for creating alternative employment, keeping the socio-
economic backdrop in mind, for any privatization proposal.

• Meticulous economic feasibility of the defunct public-sector enterprises which have ceased
to attract any investment will be done before setting future course of actions. No new
activity or rejuvenation involving these structures will be allowed before settling all
outstanding dues.

• The legal and regulatory framework will be streamlined, and procedures simplified in the
name of shielding investors from Gordian knots, procrastination and legal harassment
arising from archaic and unnecessary laws, vague and discretionary regulations, and
flawed and weak enforcement. The delivery of start-up and routine follow-up services to
industrial clients by the Registrar, Joint-stock Companies and Firms, Board of Investment
and all other regulatory agencies will be elevated to ‘one-stop service’ through more
imaginative use of information and communications technologies. Like in some other
well-managed countries, industry associations and think-tanks will be taken into
confidence and consultation in the effort to keep the cost-of-doing business at their lowest
practicable levels. A relentless effort will be made to do away with the culture of an abject
dependence on ‘sponsorship’ by the state.

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• The Government will be resolute in easing up on the access to vacant or unused space for
startup enterprises. A variety of measures ranging between the allotment of vacant ‘khas’
land, providing fiscal incentives for setting up private industrial estates, rationalizing
BSCIC’s industrial estate program, setting up special economic zones. Effort will be made
to set up economic zones in full view of successful relevant experience from other
developing countries and relevant best-practices, including the practice of public-private
partnership, in the field of creating such economic zones.

• Priority will be given to infrastructural needs of industrialization such as electricity, gas,

port facilities, road and railway transportation, telecommunications etc. Optimal utilization
of natural resources such as gas and coal will be made for power generation along with
measures to promote alternative sources of energy such as solar energy, generation of
electricity from municipal refuse, biogas etc. Participation of the private sector in all
infrastructure development endeavors, and the use of public-private partnership will be
strongly promoted through various incentives.

• Necessary reforms of all banks and public financial institutions will be carried out
expeditiously preparatory to meeting industries’ prevailing demand for long-term finance.
Initiatives will taken on hand to establish modern IT parks, Hi-tech parks, incubation
clusters in order to attract national and, above all, foreign investment in such knowledge-
dense, environmentally-friendly industries as information technology/IT Enabled Services,
biotechnology, nanotechnology, and thus to spur the development of an world-class
atmosphere for business.

• Existing regime of industrial finance including such schemes as the Equity and
Entrepreneurship Fund (EEF) will be reorganized and strengthened with provisions to
meet working capital needs of the borrowers.Women will have equal access to EEF. A
financial institution will not be allowed to participate in any new project investment unless
the package included a binding provision offering accommodation of the working capital
needs of the borrower. If the entrepreneur did assure the financing institution that the roll-
out of the enterprise would not suffer due to the non-availability of working capital loan,
such a loan proposal could be entertained.

• The Government will encourage the private sector to set up and operate venture capital
funds. A deep and broad growing pool of venture-capital can throw life-lines at emerging
and prospective firms, and can support firms with innovative technologies.

• The on-going campaign to streamline and strengthen the capital market will be intensified.
This will involve improving the oversight functions of the Securities and Exchange
Commission (SEC), strengthening the central depository system (CDS), development of

69
 the bond market, off-loading government shares in the capital market, introduction of new
instruments, and securitization of big infrastructure development projects etc.

• Government will take various measures to meet growing demand for skilled managers and
technology and technical workers. In order to better align the curriculum and capability of
those public institutions that impart business and technical education, the government will
add to their capacities, modernize their curricula, ramp up their research capability.

• Government will encourage and support private sector, research organization and NGO
initiative towards skill and management development. Effective arrangements will be put
in place to ensure adequate coordination and cooperation among the public institutions that
complement private-sector. Public-private partnership will be forged to develop specific
skills for catering to demand for high-value products and also for meeting quality and
standard requirements in the international market.

• Government will provide support to the private sector industries in their search, acquisition
and adaptation of best-practice technologies, which typically originate in foreign countries.
The Bangladeshi missions abroad and public institutions involved in technology research
and development will play a critically important role in this context. The capacity of local
research institutions and the science and technology faculties of Bangladesh’s public
universities will be strengthened towards this end. The government will facilitate close
interaction between the private sector and pertinent public institutions so that the
appropriate technology needs of local industries can be addressed and resolved by these
institutions. The government will also encourage foreign direct investment that has scope
of technology transfer. Fiscal incentives will be provided for firm-level research and
technology development.

• Development of small, medium, micro, cottage and IT industries, including IT enabled

services, will be two cornerstones of government’s industrialization strategy. The
achievement of this objective will be the organizing principle governing the
implementation of the Small and Medium Enterprises (SME) policy announced by the
government. A comprehensive approach to the development of this sector will be adopted
which will entail wide-ranging fiscal incentives, preferential access to finance, favorable
trade policy, provisioning of land and site services, and the facilitation of technological
and marketing support.

• In line with the provisions of the SME policy, special measures will be taken to develop
women entrepreneurship ensuring access to land and finance and business support
services.

• Fostering exports will become one dominant streak in the industrialization strategy of
Bangladesh. Special emphasis will also be given to stimulate import-substitution, food and
70
 agro-processing industries. Necessary measures will be taken for diversification and rapid
increase in manufacturing exports. Towards that end, existing export incentives including
those relating to fiscal, trade and exchange rate policies will be broadened. Priority
attention will be accorded to resolving various supply-side bottlenecks particularly those
relating to finance, infrastructure and port facility. The government will provide
accreditation and testing facilities for export and adopt various trade facilitation measures
for reducing trade transaction costs and delivery time. Efforts for gaining market access
will be intensified both at regional and international levels.

• Measures will be taken to attract FDI in firms in both export and domestic market oriented
industries to make up for the deficient domestic investment resources, to achieve transfer
of technology and gain access to export markets.

• Government will ensure that industrialization in Bangladesh is environmentally sound and

compliant with the health and safety and other standards required under the rules of the
WTO. As well, the Government will ensure taking the fullest advantage of its time-waiver
on the onset of the compliance with rule-book of such globalist agreements as associated
with the WTO, Trade-related Investment Measures (TRIMS), TRIPS, GATS, to the point
of achieving globalist standards within the deadline on the ground.

• The Industrial Statistics Wing of the Bangladesh Bureau of Statistics (BBS) and the
management information system of various regulatory agencies, such as the Board of
investment, BEPZA, BSCIC, SME Foundation, Bangladesh Handloom Board, etc., will be
strengthened preparatory to the setting up of an information and data bank where investors
can find information regarding investment and market opportunities, sources of machinery
and technology etc. Coordination between different public agencies will also be fostered to
obtain consistent set of information on private investment, output and employment on an
ongoing basis from the web-sites of those agencies.

• The prevailing legal framework related to intellectual property rights will be revamped for
nurturing industrial research and development, and ventures that intensively demand the
husbanding of talent. As well, all reasonable assistance and encouragement will be
accorded to such industries.

• Government will actively support growing partnership among financing and training arms
of the public-sector, private-sector and non-Governmental organizations to rapidly build
investment and skill-base related to eco-tourism. To this end, Government will ensure
compliance with the basic standards for protecting environment and safeguarding proper
utilization of scarce land.

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• Government will pave the ground of global eco-tourism marketing effort through the
Bangladesh Parjatan Corporation (BPC) in order to provide impetus to the growth of eco
tourism industry in Bangladesh.

• The Government will resolutely move to rid the country of the blight of ‘sick industries’.
To this end, initiative will be taken to formulate guidelines for dealing with the sick
industries’ syndrome. Terminally sick firms which are beyond cost-effective redemption
will be identified.

• Government will provide incentives to the banking sector to proactively exert itself in
helping avert the fate of bankruptcy or acute financial distress by firms.

• The Government’s future reform and re-structuring agenda for will the jute industry will
include ownership, operation, technological modernization, quality improvement and
diversification of jute goods, employment generation, timely arrangement of access to
finance during the raw-jute season, sound management practices, human resources
development in jute industry, and marketing of jute and jute goods.

• In running public-sector jute mills, effort will be undertaken to eliminate wasteful methods
and practices of the past through rational reforms in order to restore them to profitability.

• Government will encourage the establishment of new jute mills for manufacturing
innovative, high-value jute goods, and partner the private-sector in the development of
new technologies and processes, and sourcing of technical and financial assistance.

• The administrative, monitoring and implementation mechanisms in the Ministry of

Textiles and Jute, various relevant departments and institutions will be revamped and
reformed so as to have in Bangladesh a dynamic, skilled and vigorous jute manufacturing
sector in the country.

• Modernization and backward linkages in the textiles sector will be encouraged on the back
of new investment and BMRI in old mills in order to meet the growing demand of textiles
and apparels, both locally and internationally.

• Management methods that are fundamentally important in state-owned textile mills will be
restructure in the interest of keeping them in operation, including by imbibing greater
public private partnership.

• Modernization and backward linkages will be encouraged in private sector dairy farm,
poultry and hides and skin businesses.

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• The government will maintain transparency and accountability in taking decision for
new/old/shut-down factories both in public and private sectors.

Other Policies to Support SFYP Strategy

Trade policy reforms: Although the trade regime in Bangladesh is restrictive when judged by
international standards, it is nevertheless true that considerable liberalization has taken place
over the past decade or so. Bangladesh’s increasing global integration based on trade
liberalization and other economic deregulation, especially since the early 1990s, contributed
significantly to the acceleration of per capita income growth and poverty reduction.

Nevertheless, the review of progress with trade policy reforms also showed that international
trade is still subject to a host of tariff and non-tariff barriers which makes the trade regime
quite restricted in the global context. Bangladesh is the only country among its trading partners
that still maintains traditional Quantitative Restrictions (QR) with the explicit purpose of
protecting local industries. The most important restrictions are on the import of a range of
textile products. It has also retained general administrative controls over imports which,
depending on how they are implemented, can amount to a form of import licensing.

In view of the above the trade policy focus in the Sixth Plan for the manufacturing sector will
be to further reduce the bias against exports by lowering trade protection arising from
remaining quantitative restrictions, tariff rates and supplementary duties. The Government
recognizes the importance of both protecting tax revenues from custom duties and
supplementary duties as well as the need to provide some support to those dynamic national
industries that have high potential but require temporary trade protection as it gains more
experience and learns to compete in international markets. These trade-offs from reducing
trade protection will be carefully reviewed and managed to ensure a smooth long-tem
transition to a broadly liberal and simplified trade regime that does not discriminate against
export enterprises or support inefficient domestic enterprises. Over the longer term, the
income tax and the VAT will become the primary instrument for domestic resource
mobilization with a sharply lower reliance on customs duties and supplementary trade taxes.

Flexible management of the exchange rate: The main objectives of the exchange rate
management policies in Bangladesh have been to accelerate exports, reduce pressure of
imports and thereby improve the balance of trade. Bangladesh followed a ‘fixed exchange
rate’ system until 1979. Between 1979 and mid-2003, the country pursued a managed floating
exchange rate regime. Continued devaluation of the domestic currency, in order to maintain a
stable real exchange rate and avoid overvaluation of the domestic currency, was the hallmark
of these regimes. Since the end of May 2003, Bangladesh had introduced a kind of ‘clean
floating’ exchange rate policy by making it fully convertible on the current account, although
capital account controls still remain. This flexible exchange rate management since 2003 has

73
served Bangladesh well and will be maintained in the Sixth Plan to protect the incentives for
exports.

Monetary policy: The conduct of monetary policy will be to support lending for infrastructure
and other productive industries in 2011, while discouraging lending for wasteful consumption.
The Bangladesh Bank will monitor the financial stability of financial institutions, including
state-owned and private sector banks, to ensure that there is smooth flow of liquidity in the
economy. The Government is also supporting the reform program for public sector enterprises
with a view to improving performance and minimizing losses, which will be a key to limiting
pressures for credit expansion to this sector. While the interest rate structure will continue to
be market determined, efforts will be made to reduce the spread between the lending and
deposit rates by creating a more competitive environment in financial intermediation.

Special economic zones, industrial parks: The government is in the process of the creation
of special economic zones across the country for both export and local market oriented
industries based on the cluster principle of the collection of industries, brought together
geographically for the purpose of promoting economic development. A key objective of SEZs
and industrial parks would be to stimulate efficient use of skilled labor, land, infrastructure,
energy and other resources as well as to facilitate backward, horizontal and forward linkages
with local industries. The SEZs will also permit the relocation of pollution-prone and
manufacturing enterprises from metropolitan areas. It is expected that the SEZs will trigger a
significant flow of foreign and domestic investment leading to generation of additional
economic activity and creation of employment opportunities. Furthermore the government
will be flexible in using a variety of institutional structures ranging from fully public
(government operator, government developer, government regulator) to ‘fully’ private (private
operator, private developer, public regulator) as well as public-private partnership
arrangements, in which the public sector provides some level of support to enable a private
sector investor/developer to obtain a reasonable rate of return on the project in a time-bound
way.

Export processing zones (EPZs): Currently there are eight EPZ`s in Bangladesh spread
throughout the country .They are namely Dhaka EPZ, Chittagong EPZ, Mongla EPZ, Comilla
EPZ, Ishwardi EPZ, Uttara EPZ, Adamjee EPZ and Karnaphuli EPZ. Total investments in
EPZ`s aggregated to USD 1582.47 million till June 2009. Moreover BEPZA`s exports
earnings stood at USD 2.58 billion. Presently, 300 industries are in operation in the EPZ`s of
Bangladesh.

The main fiscal and non-fiscal incentives provided to manufacturing enterprises located in the
EPZs are shown in Tables 2.7 and 2.8. These incentives will remain in place during the Sixth
Plan to attract foreign and domestic investment focused on exports.

Foreign Direct Investment (FDI)

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The investment climate of a country is very important determinant of the countries
attractiveness to foreign investment. An interaction of openness and sound investment climate
creates a sound regulatory environment for investment and production. Low levels of FDI
have meant that Bangladesh has missed out on positive technology spillover. Recently

Table 2.7: Fiscal Incentives for EPZ Firms

Incentives – Fiscal
1. Tax holiday for 10 years followed by 50% rebate on export sales.
2. Duty free import of const. materials, machinery/spare parts/equipments.
3. Duty free export and import.
4. Relief from double taxation.
5. Exemption from dividend tax.
6. GSP facility available.
7. Duty free import of 2 vehicles.
8. Expatriates exempted from income tax for 3 years.
Source: Export Promotion Bureau

Table 2.8: Non-Fiscal Incentives for EPZs

Non-Fiscal Incentives
1. Investment protected under the Foreign Private Investment (Promotion and
protection) Act 1980
2. 100% foreign ownership permissible
3. Enjoy MFN status.
4. No ceiling on foreign investment.
5. Full repatriation of Capital and dividend.
Source: Export Promotion Bureau

though FDI has picked up in extractive industries, telecommunication and energy production,
however it is still lagging behind in manufacturing. Studies have indicated that Bangladeshi
firm with any level of foreign ownership are ten percent more productive on average than
firms that are wholly domestically owned .Over the course of the past 15 years FDI has played
a key role in the modernization of the Bangladeshi economy. There was an inflow of $666m
foreign direct investment in 2007 which increased significantly in 2008 to $1086m. In 2009,
inflows of foreign direct investment approached $700 million (Figure 2.1).

75
 Figure 2.1: FDI Investments in Bangladesh
Figure: FDI in Millions
1200
1000
800
600
400
200
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
FDI in Millions

Source: Bangladesh Bank

FDI policy framework: Evolution of the FDI policy in Bangladesh: In the late 1980s and the
1990s, Bangladesh announced a series of measures and liberalized its FDI policy framework.
In recent years, Bangladesh has significantly improved its investment and regulatory
environment, including the liberalization of the industrial policy, abolition of performance
requirements and allowance of full foreign-owned joint ventures. Since 1996, new sectors
have been opened up for foreign investment, including the telecommunications sector.

During the Sixth Plan the foreign direct investment is encouraged in all industrial activities in
Bangladesh excluding those on the list of reserved industries such as production of arms and
ammunitions; forest plantation and mechanized extraction within the bounds of a reserved
forest, production of nuclear energy and printing and minting fresh currency notes. Such
investments may be undertaken either independently or through joint ventures, either with the
local, private or public sector. The capital market also remains open for portfolio investment.
The policy framework for foreign investment in Bangladesh is based on the Foreign Private
Investment (Promotion and Protection) Act, 1980, which provides measures for the non-
discriminatory treatment and protection of foreign investment.

Incentives to foreign investment. The government has liberalized its industrial and investment
policies in recent years by reducing bureaucratic control over private investment and opening
up many areas. Some of the major incentives are tax exemptions for power generation, import
duty exemptions for export processing, an exemption of import duties for export oriented
industries, and tax holidays for different industries. Double taxation can be avoided by foreign
investors on the basis of bilateral agreements. Facilities for the full repatriation of invested
capital, profit and dividend exist.

Concessionary duty on imported capital machinery. Import duty at the rate of 7.5% ad
valorem is payable on capital machinery and spares imported for initial installation or
BMR/BMRE* of the existing industries. The value of spare parts should not, however,
exceed 10% of the total cost and freight value of the machinery. Out of this, 7.5% rate of

76
duty payable, export-oriented industries and industries in the under-developed areas may
enjoy a further concession of import duties as described in Table 2.9.

Value Added Tax (VAT) is not payable for imported capital machinery and spares. Duties
and taxes on import of goods which are produced locally will be higher than those
applicable to import of raw materials for producing such goods.

Intellectual property rights and investment protection: The government recognizes the
importance of intellectual property rights for attracting FDI and is making efforts to update its
legislation and improve enforcement. The country has been a member of the World
Intellectual Property Organization (WIPO) since 1985 and signed the Paris Convention on
Intellectual Property in 1991. The Foreign Private Investment (Promotion and Protection) Act
of 1980 guarantees protection against expropriation. If a foreign investor becomes subject to a
legal measure that has the effect of expropriation, adequate compensation will be paid to the
investor.

Table 2.9: Import Duty Concessions

100% export oriented No import duty is charged in case of capital machinery and spares listed in NBR’s*
industries: relevant notification. However, import duty at 7.5% is secured in the form of a bank
guarantee or an indemnity bond to be returned after installation of the machinery.
Minimum 70% export Import duty at 2.5% is charged in case of capital machinery and spares listed in
oriented industries in NBR’s relevant notification. Additional duty at 5% is secured in the form of a bank
developed areas: guarantee or cash deposit to be returned after installation of the machinery.
Minimum 70% export Import duty at 5% is charged in case of capital machinery and spares listed in
oriented industries in NBR’s relevant notification. Additional import duty at 2.5% is secured in the norm
developed areas: of a bank guarantee or cash deposit to be returned after installation of the
machinery.
Other industries outside Import duty at 5% is charged in case of capital machinery and spares listed in
developed areas: NBR’s relevant notification. Additional import duty at 2.5% is secured in the form
of a bank guarantee or cash deposit to be returned after installation of the
machinery.
Other industries in Import duty at 7.5% is charged in case of capital machinery and spares listed in
developed areas: NBR’s relevant notification.
Source: Ministry of Finance

Labor laws: Workers are entitled to elect collective bargaining agents (CBAs) to negotiate
their demands with management. A trade union may be formed if 30 percent of employees
support it. All trade unions need to be registered. There are 47 labor laws covering matters
such as wages, industrial disputes, working conditions, etc. Foreign nationals can be employed
as long as their number does not exceed 15 percent of the total number of employees.

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Tax Policies for Manufacturing Sector

In order induce investment towards the manufacturing sector the Government has made
various concessions in past and current Finance Acts (Box 2.1). In 1980 the income tax rates
on companies were 60 percent compared to the 27.5% in the 2009-10 FY. The concessions are
made to attract investment from both domestic and foreign sources and achieve rapid growth
in the manufacturing sector. Tax policy during the FY11-15 will emphasize an expansion of
the tax base and rationalization of the tax system. Although the fundamental structure of the
tax system is sound, the extensive use of exemptions, incentives and other special provisions
have resulted in a tax system that is prone to evasion. The resulting complex structure of trade
taxes also gives rise to significant distortion in economic activity and undermines the equity of
the tax system. The Internal Resources Division and the National Board of Revenue is
reviewing the tax incentives and exemptions with the aim of broadening the tax base and
ensuring greater tax equity.

Essentially the tax structure affecting incentives in the manufacturing sector can be broken
down into 5 parts: a) corporate tax, b) tax holidays, c) exemptions, d) custom duty e) facilities
for NRB. They are discussed in some details below.

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 Box 2.1: Additional incentives to export oriented and export linkage industries
Encouraging export oriented industries is one of the major objectives of the Industrial Policy 2010 in
keeping with the Government’s export policy. Among others, these facilities and incentives are
offered:
• Concessionary duty as per SRO is allowed on the import of capital machinery and spare parts
for setting up export-oriented industries or BMRE of existing industries. For 100% export-
oriented industries no import duty is payable.
• Facilities such as special bonded warehouse against back-to-back letters of credit and
exemption from Value Added Tax (VAT) are available as per SRO of the government.
• System for duty drawback is being simplified. The exporter will be able to get back the duty
draw-back directly from the concerned commercial bank.
• With the intention of encouraging backward linkages, export-oriented industries including
export-oriented readymade garment industries using indigenous raw materials instead of
imported materials are given additional facilities and benefits at prescribed rates.
• Export-oriented industries are allocated foreign exchange for publicity campaigns and for
opening offices abroad.
• Entire export earnings from handicrafts and cottage industries are exempted from income tax.
In case of other industries, proportional income tax rebates on export earnings is given
between 30% and 100%.
• Facilities for importing raw materials are given for manufacturing exportable commodities
under banned/restricted list.
• Import of specified quantities of duty-free samples for manufacturing exportable products is
allowed.
• Local products supplied to local projects against foreign exchange under international tender
are treated as indirect exports and the producer is entitled to avail of all export facilities.
• Export oriented industries like toys, luggage and fashion articles, electronic goods, leather
goods, diamond cutting and polishing, jeweler, stationery goods, silk cloth, gift items, cut
and artificial flowers and orchid, vegetable processing and engineering consultancy services
identified by the government as thrust sectors are provided special facilities in the form of
cash incentives, venture capital and other facilities.
• Export oriented industries are exempted from paying local taxes (such as municipal taxes).
• Leather industries exporting at least 80% manufactured products will be treated as 100%
export oriented industries.
• Manufactures of indigenous fabrics (such as woven, knit, hosiery, grey, printed, dyed,
garment check, hand loom, silk and specialized fabrics) supplying their products to 100%
export oriented garment industries are entitled to avail a cash subsidy equivalent to 25% of
the value of the fabrics provided the manufacturers of the fabrics do not enjoy duty draw
back or duty free bonded warehouse facility.
• Exemption of tax on income from industrial undertakings set up in an export processing zone
for ten years from the date of commercial production.

Corporate taxes: The corporate tax rates in general have been rationalized over the course of
time (Table 2.10). From the highs of 60% for public traded companies to 40% for the publicly
traded industrial companies in the early nineties to 27.5% in 2010.This rationalization of
corporate taxes has helped reduce the bias against the manufacturing sector as compared with
income from land and stock holdings that mostly escape taxes.
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 Table 2.10: Corporate Tax Structure in Bangladesh
Income Public Traded Non Publicly Traded Banks, Insurance Companies and
Tax Companies Companies Other Financial Institutions
Year
1998-1999 35% 40% 40%
1999-2000 35% 40% 40%
2000-2001 35% 40% 40%
2001-2002 30% 40% 40%
2002-2003 30% 35% 40%
2003-2004 30% 37.5% 45%
2008-2009 27.5% 37.5% 45%
2009-2010 27.5% 37.5% 45%
Source: Ministry of Finance

Tax holidays: The government has decided to continue with its tax holiday scheme for newly
set up industries between 1 July 2008 and 30 June 2011. The tax holiday scheme is detailed
out below:

(1) For industries set up in Dhaka and Chittagong (except three Hilly Districts) Divisions –
100 percent income for first two years; 50 percent of income for next two years; and 25
percent income for next one year;

(2) For industries set up in Rajshahi, Khulna, Sylhet and Barisal Divisions and three Hilly
Districts – 100 percent of income for first three years; 50 percent of income for next three
years; and 25 percent of income for next one year;

(3) Keeping the existing sectors under Tax Holiday intact the additional sectors included are
agro-processing, diamond cutting, steel production from billet, jute industries, different units
of textile sector, underground rail, monorail, telecom infrastructure except mobile phone.

Furthermore Accelerated depreciation will continue be until 30 June 2010 and tax holiday
certificate will be issued by NBR for the total period within 90 days of submission of
application. This facility can be availed of by industries set up within June30, 2000.

Exemptions: A number of exemptions are allowed. These include:

• Tax exemption on royalties, technical know-how fees received by any foreign collaborator,
firm, company and expert.

• Tax exemption on income of the private sector power generation company for 15 years
from the date of commercial production.

• Tax exemption on capital gains from the transfer of shares of public limited companies
listed with a stock exchange.
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• Special facilities and venture capital support will be provided to export-oriented industries
under “Thrust sectors”.

Customs Duty: Considering the development needs of local industries, the Government has
replaced the current three-tier customs duty structure by a four-tier structure consisting of:

1) 3 percent rate of duty on capital machinery and spare parts;

2) 7 percent rate of duty on basic raw materials

3) 12 percent rate of duty on intermediate raw materials

4) Highest slab, for finished goods, to remain at 25 percent. However, 0 percent duty of food
stuff, fertilizer, medicines and raw cotton will continue.

Furthermore, duties and taxes on import of goods which are produced locally will be higher
than those applicable to import of raw materials for producing such goods.

Supporting Institutions for Manufacturing Growth

Strengthening institutions is an essential part of a strategy to boost manufacturing growth,

exports and employment in the Sixth Plan. Several institutions provide essential services that
will be strengthened and motivated to provide better services to the manufacturing enterprises.

Board of Investment (BOI)

In order to boost up and promote private investment during the Sixth Plan, the Board of
Investment will continue to perform its following mandated functions:

a. promotion of investment;
b. providing facilities for capital investment and rapid industrialization;
c. registration of industrial projects, foreign loan agreements, royalty, technical know-how
and technical assistance agreement wherever required;
d. providing assistance to provide infrastructural facilities for industries;
e. issuing work permits to expatriate personnel working in the private sector industrial
enterprises;
f. providing import facilities to industrial units in the private sector;
g. approval of the payment of royalty, technical know-how and technical assistance fee to
foreign nationals/organizations beyond the prescribed limits; and
h. Recommendations for acquisition and allotment of land in the industrial areas/estates for
industrial purpose.

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Privatization Commission (PC)

The Privatization Commission is entrusted with the overall responsibilities of privatizing state-
owned enterprises (SOE) identified for privatization. Ministries having state-owned
enterprises under their control have set up privatization cells for assisting the Privatization
Board in identifying, preparing, processing, implementing and monitoring SOEs for
privatization. The process of privatization till the end of 1996 was not very satisfactory. The
Privatization Commission has been reinvigorated to undertake the process of privatization of
industrial, commercial and state owned enterprises in an orderly manner. In order to
materialize the targets, the Privatization Commission will take-up the following measures to:

• develop selection criteria, recommend SOEs for enlistment in the privatization program
and subsequently take measures for the transfer of such enterprises to the private sector.
• determine the priority and sequencing of such privatization, including a detailed work plan
and time table for the various enterprises proposed to be transferred;
• identify the optimal methods such as public offering, private placement, sale of assets,
management contracts, leasing or management/employee buy outs by which the process of
privatization will be implemented in particular cases;
• co-ordinate among and recommend to the Ministry of Finance, Ministry of Jute, Ministry
of Textiles and other relevant ministries and agencies steps which may be necessary for the
successful privatization of the enterprises, such as revaluation of the enterprises,
restructuring of debt in accordance with sound financial principle, retrenchment of
redundant workers, closure of obsolete facilities of the enterprises;
• formulate and revisit privatization policies from time to time and advise the government
with regard to private sector development, investment and participation in previously
reserved sectors such as telecommunication energy and power organize public information
campaign about the merits and benefits of privatization; and
• undertake any other activities connected with privatization.

Chamber of Commerce and Industries (CCI)

Under the present policy of private sector led export-oriented growth, the responsibility of the
private sector has increased tremendously. Private Sector is now considered to be the pivotal
economic player. During the Sixth five year Plan the institutional capability of the Federation
of Bangladesh Chambers of Commerce and Industry (FBCCI) and its member organizations
will be developed and strengthened so that they can lead the private sector to perform its role
so as to attain higher growth target. To prevent unfair trade practices, in particular,
circumvention of domestic and foreign laws, rules and regulations, these bodies will be
encouraged to put in place appropriate code of conduct for their members to observe. With this
end in view necessary promotional and support services will be provided to FBCCI and other
chambers to improve their institutional capability so that they can discharge their functions for
promotion of trade, investment and industry.

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Export Promotion Bureau (EPB)

In the wake of the establishment of the World Trade Organization to administer GATT 1994,
GATS (General Agreement on Trade in Services) and TRIPS (Trade Related Aspects of
Intellectual Property Rights) under an integrated Dispute Settlement Mechanism, the
Bangladesh Export Promotion Bureau (EPB) will have to play a dynamic role to achieve the
following objectives: (i) to identify obligations of the government to the business and
industrial community of the country, to customers abroad as well as under contracts,
agreements, arrangements, conventions, etc. of WTO and other relevant international/regional
organizations and take all necessary steps towards meeting these obligations; (ii) to remove
existing regulatory constraints; (iii) to provide policy support comparable with those of other
competing countries; (iv) to provide improved services for export promotion activities; (v) to
provide access to supportive infrastructure services; (vi) to improve entrepreneurial and
managerial capabilities through human resources development and (vii) to implement export
development program to help expand and diversify the range of exportable products. Towards
the fulfillment of the above objectives, EPB will be required to be revamped in conjunction
with effective private sector co-operation and collaboration, including establishment of a joint
institute of foreign trade involving representatives of both public and private sectors.

Bangladesh Tariff Commission (BTC)

The Tariff Commission will carry out in-depth studies and formulate policies for further tariff
rationalization, liberalization of the import regime and evolving an incentive structure for
strengthening the domestic production and export base. It will review, on a continuing basis,
the tariffs on imported inputs – raw materials and intermediate inputs – as well as on capital
goods. While rationalizing the tariff structure, adequate attention will be given to ensure that
inputs for any domestic product are not subjected to rates of duties and taxes higher than those
on competing finished imports and that the domestic industries do not suffer loss because of
dumping on the one hand and denial of access to foreign market on the other. The BTC will
establish effective co-ordination with the National Board of Revenue (NBR), the Bangladesh
Bureau of Statistics (BBS), the Bangladesh Bank (BB), the Ministry of Planning/Planning
Commission and the Ministry of Commerce for establishment of a rational and dynamic tariff
structure consistent with existing government policy of pursuing free market economy. For
discharging its functions more effectively, BTC will build up its capacity further through
necessary strengthening and up gradation as well as human resources development.

Bangladesh Standard Testing Institute (BSTI)

Standardization is the gateway to trade and industrialization. A well conceived standardization

program lays the foundation for growth of domestic production, protection of consumer
interest through ensuring requisite product quality and progressive assimilation of imported
technology through adoption and adaptation. Standardization of products as well as of inputs
minimizes wastage of resources and ensures compatibility of manufacturing processes and
practices. In view of these factors, during the Sixth Plan period, the performance of the
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Bangladesh Standard Testing Institute will be reviewed and effective measures will be
introduced to enhance its functional capability through necessary expansion and
modernization. Some vital components of modernizing the Institute will be strengthening its
methodology, quality control and testing sections and induction of sufficient number of quality
professionals into it.

Bangladesh Institute of Management (BIM)

In the Sixth Plan period, BIM will conduct research on management development and will
impart training on socio-economic and other functional areas of management. The main
objectives of the institute will be to : (i) upgrade the existing centre to a self-sustained higher
institute of training , research and learning, (ii) train and develop managers at all levels of the
economy, (iii) assist, develop and maintain higher productivity in business and industry
through adoption of technological and engineering innovation and services, (iv) give
consultancy services for solving management and related problems faced by various sectors of
the economy, and (v) carry out research in different fields of management, economics and
business. Activities and courses will be designed and implemented to support private sector
industrial and business units.

Bangladesh Industrial Technical Assistance Centre (BITAC)

The Bangladesh Industrial and Technical Assistance Centre (BITAC) have been providing
technical and advisory services to the entrepreneurs. Presently BITAC Dhaka, Chittagong,
Chandpur and Khulna are in operation. During the Sixth Plan the performance of existing
centers will be duly evaluated and new centers will be established keeping in view the needs
of the industrial areas. BITAC will assist the private sector entrepreneurs, particularly the
small entrepreneurs, to solve their technical problems as well as in adopting/adapting new
technologies in their production practices.

National Productivity Organization (NPO)

The National Productivity Organization (NPO) was established in 1989 under the Ministry of
Industries. The institutional capability of this organization will be further developed to create
productivity consciousness and awareness to the people for launching productivity as a
national objective to be pursued by a national movement in the country, undertake program for
human resource development for productivity improvement, build productivity infrastructure
and convert industrial enterprises into an efficient and profitable organization, work as a
catalyst to promote plant-level productivity through consultancy services, conduct survey,
study and research work on productivity, and assist the government in formulating
productivity policy.

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SPECIFIC LARGE AND MEDIUM SCALE MANUFACTURING ACTIVITIES

The philosophy of the current government is for Bangladesh to attain middle income status by
2021. It is felt that the industrial sector has to fuel the much needed dynamism that is required
to attain the challenge of earning middle income status. In line with this belief the government
has identified three pivotal aspects of the industrial sector of Bangladesh that has to be further
developed and improved. These three pivotal areas are a) promotion of domestic content in
output, b) wherever practicable substitution of imports and c) sustainable development and
husbandry of export oriented industries .Moreover the government aims to create a more
investor friendly atmosphere for both local and foreign investors to fuel industrial growth.
Moreover the government aims to improve access of khas land for industrial usage and more
efforts will be directed at setting up EPZ and SPEZ .In order to unleash the large scale
industrial sector the government is taking an integrated approach i.e. there will be increased
concentration in improving the infrastructural needs of industrialization and improvement in
the financial sector. The government realizes that in order to extract the true potential of the
labor and improve total factor productivity the labor force has to be trained further both
vocationally and academically and hence various government agencies will work very closely
to the industrial sector in order to improve the skill gap. In order to improve Bangladeshi
goods the government would support the sector by aiding and encouraging them to carry out
.Research so that the goods produce could be of high value and unique and thus greater value
exports. Finally it is the firm belief of the government that the private sector would be the
leader of industrial development and there the government aims to aid this sector by various
policy measures including industrial policy.

The Readymade Garments (RMG) Sector

The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a

distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is
also the largest exporting industry in Bangladesh. It has attained a high profile in terms of
foreign exchange earnings, exports, industrialization and contribution to GDP within a short
span of time. The industry plays a significant role in terms of employment generation. Nearly
three million workers are directly and more than ten million inhabitants are indirectly
associated with the industry. In addition to its economic contribution, the expansion of RMG
industry has caused noticeable changes by bringing more than 2.5 million women into the
workforce. RMG’s growing contribution to GDP is remarkable; it has reached 13 percent of
GDP in 2010 compared to about 3 percent in 1991. It also plays a pivotal role to promote the
development of other key sectors of the economy like banking, insurance, shipping, courier
services, hotel, tourism, road transportation, railway container services, etc.

Since the inception of the trade liberalization program in the early 1990’s, the RMG sector has
grown by leaps and bounds (Table 2.11). From a miniscule share of about 4 percent in total
exports in the early 1980s, garments now constitute more than 80 percent of total exports from
Bangladesh, raking in nearly $12.5 billion of foreign exchange, out of total export earnings of
85
$15.5 billion in 2008-09. Net domestic value addition–hitherto a weak point, on account of
the heavy dependence of the sector on imported fabrics, yarn and accessories–has risen
substantially, so much so that nearly 60 percent of the required inputs are now domestically
sourced, as compared to a mere 36 percent in 1991-92.

Table 2.11: Growth of the RMG sector

Year Export Volume Export Value Share in Total
(‘000 dozen) (US$ million) Exports (%)
1990-91 30,566.60 866.8 50.5
1995-96 72,005.00 2,547.10 65.6
1999-2000 111,905.80 4,349.40 75.6
2001-02 140,444.60 4,583.80 76.6
2002-03 152,013.00 4,912.09 75.1
2003-04 182,080.00 5685.76 74.8
2004-05 212,390.00 6424.27 74.8
2005-06 273,840.00 7899.59 75.1
2006-07 332,620.00 9211.31 75.6
2007-08 389,030.00 10699.8 75.8
2008-09 460,510.00 12348.2 79.5
Source: Bangladesh Bureau of Statistics

One of the key advantages of the RMG industry is its cheap labor force, which provides
a competitive edge over its competitors. The sector has created employment opportunities for
about three million people of which 80 percent are women who mostly come from rural areas.
Notwithstanding the fact that this sector’s emergence and expansion is the direct outcome of
the global MFA regime, there is no denying that it has had a stellar impact on overall
economic growth, income generation and poverty reduction in Bangladesh

A Snapshot of RMG Sector: Since the late 70s government initiative such as special bonded
warehouse schemes, duty drawback systems and export policy reforms (mid eighties) all
helped the RMG sector to operate in almost a free trade environment .Currently, there are
nearly 5,000 RMG firms in Bangladesh. More than 95 per cent of those firms are locally
owned with the exception of a few foreign firms located in export processing zones. The RMG
firms are located mainly in three main cities: the capital city Dhaka, the port city Chittagong
and the industrial city Narayanganj. Garment companies in Bangladesh form formal or
informal groups. The grouping helps to share manufacturing activities, and to diversify risks;
horizontal as well as vertical coordination can be easily found in such group activities.

Readymade garments manufactured in Bangladesh are divided mainly into two broad
categories: woven and knit products. Shirts, and trousers are the main woven products and
undergarments, socks, stockings, T-shirts, sweaters and other casual and soft garments are the
main knit products. Woven garment products still dominate the garment export earnings of the
country. The share of knit garment products has been increasing since the early 1990s; and
now accounts for just over 50% of the country’s total RMG export earnings. Although various
86
types of garments are manufactured in the country, only a few categories, such as shirts, T-
shirts, trousers, jackets and sweaters, constitute the major production-share. The United States
was the main export destination for Bangladeshi RMG products in the early 1990s followed by
the European Union, but the European Union has surpassed the United States over time. These
two destinations generate more than 90 per cent of the total RMG export earnings of
Bangladesh (Table 2.12).

Table 2.12: Bangladesh RMG Exports to EU and US (in million USD)

Year EU US
2007 6036.2 3191.2
2008 6480.2 3537.5
2009 6998.7 3519.7
2010 7783.7* 4076.3*
Source: Export Promotion Bureau
*Annualized

It is important to note that the RMG sector helped create jobs in complementary industries or
services, such as accessories, packaging, toiletries (demanded by newly employed female
RMG workers), courier, finance, transport and telecommunications services, etc. BGMEA
claims that the RMG sector creates as many jobs in these complementary enterprises as there
are in RMG units themselves. Although RMG operates in a free trade enclave environment, its
growth is clearly based on Bangladesh’s comparative advantage in a labor- and non-skill
intensive activity – one that has been sustained by trade and exchange liberalization in
addition to the quota regime offered under the MFA.

Challenges for the RMG Sector

While the export-quota system cushioned the Bangladesh RMG industry, enabling it to remain
competitive as a prominent garment supplier in international markets until 2004, the phase-out
of the system was expected by many analysts to threaten the very survival of this industry.
That apprehension was proved wrong as RMG exports continued to grow after 2005 putting
Bangladesh securely on the world map as a leading exporter of garments. Yet there are
challenges. Backward and forward linkage expansion, meeting compliance standards,
product/market diversification and upgrades are some important strategies for the industry to
improve competitiveness and seize global opportunities.

Linkage Expansion

Thanks to domestic investments in textiles, the consumption-production gap of yarn decreased

over time, although actual consumption increased every year. The fabric-manufacturing
capacity of the country also increased over time. Such a trend indicates that the linkage
expansion process of the Bangladesh RMG industry, started in the early 1990s, has not lost
momentum. Still, many garment manufacturers in Bangladesh are prefer using imported raw
materials instead of using local raw materials owing to price and quality differences. The price
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of RMG inputs supplied by local sources is relatively high. Bangladesh is just a price taker in
sourcing RMG inputs from external sources, whereas competitor countries such as India and
China have a certain level of influence on RMG input pricing, as they themselves are
prominent textile suppliers in the world market.

Compliance Issues

In addition to speedy supply, the social dimensions of the RMG industry are getting more
attention from consumers, social workers, welfare organizations and brand name international
buyers. Currently, many international buyers demand compliance with their “code of conduct”
before placing any garment import order. Although Bangladesh was able to solve the problem
of child labor very successfully in the mid-1990s, the country’s performance in improving the
factory working environment is not yet satisfactory. Informal recruitment, low literacy levels,
wage discrimination, irregular payment and short contracts of service are very common
practices in the RMG factories in Bangladesh. It is true that the country still enjoys some
comparative advantage in manufacturing garment products based on low labor costs.
However, such advantages cannot be sustained forever nor can they be expected from a
humanitarian perspective. Rented factory premises, narrow staircases, low roofs, closed
environments, absence of lunch rooms, unavailability of clean drinking water and no separate
toilets or common rooms for female workers, low wages etc are other concerns in the garment
factories of Bangladesh.

Product and Market Composition

The product and market composition of garments from Bangladesh requires special attention
to ensure the long-term sustainability of the Bangladesh RMG industry as a prominent supplier
in the global market. The export-quota system diverted the attention of some international
garment suppliers from quantitative expansion to qualitative improvement of exportable
garment products. China and other competitor countries took that opportunity, but Bangladesh
failed to do likewise. The country stands far behind in the race to upgrade products compared
with its rivals. Bangladesh is still focused on manufacturing lower-end products, although
recently the country has emerged slowly from being a lower-end producer towards becoming a
middle/high-end producer, from being a simple male-wear producer to become a producer of
fashionable female wear. Strengthening the process of upgrading products is very important
for the Bangladesh RMG industry if it is to enhance its competitiveness and continue to
augment foreign exchange earnings.

Medium-term Goals for the RMG Sector

• Diversify export destination.

• Improve supply of both skilled and unskilled workers.
• Improve the availability of more skilled people in the managerial levels
• Further product diversification
• Vertical integration, developing brand name
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• Improve competitive edge through higher productivity, investment in R&D
• Produce more high value goods

Strategies under the SFYP

• Have both Bilateral and Multilateral agreements with various countries

• BGMEA and BKMEA will have to invest more in their training facilities to increase and
improve on both coverage and training curriculum.
• Improve capacity of owners of RMG by providing training on how to move up the value
chain.
• Public infrastructure (such as electricity and roads etc) would have to improve to ensure
that RMG factories are operating at full capacity.
• Political stability along with other features pertinent to the enabling environment has to be
improved in order to attract more FDI and make the business environment more conducive
for business.
• Greater use of IT in order to quicken the pace at which business is conducted both with
local and international counterparts.

Non-RMG Textiles and Selected Thrust Industries

Non-RMG Textiles

The non-RMG textile industry has gained added significance with the emergence of the RMG
sector. The textile industry provides the very important backward linkage in terms of raw
materials for RMG as well as for the domestic market. Indeed with the growth of per capita
income, the domestic demand for textiles has grown rapidly and has provided the basis for a
buoyant textiles market.

Challenges faced by Textile Industry

The textile sector as a whole faces various constraints and problems majority of which are
described as under:

i. Inadequate infrastructure and logistic support: port and shipping, road and
telecommunication, E-commerce etc.
ii. Shortage of skilled manpower: particularly in weaving & dyeing-finishing.
iii. Dependence on imported raw cotton (Basic raw material);
iv. Fast changing technology (costly for investors);
v. Competition with low cost countries like Vietnam, Cambodia, Indonesia, Nepal, etc.
vi. Weak immediate backward linkage of export-oriented RMG i.e. weaving & dyeing –
finishing.

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Policies and Medium-term Goals in the Textile Sector

a. To attain self reliance in supply of textile products for domestic market as well as supply
of yarn and fabrics required for export-oriented readymade garment industry of the
country through establishing backward linkages and to ensure direct export of textile
goods by expanding production of quality fabrics at competitive prices.
b. To enable textile sector to play the major role for economic development of the country
by creating more employment opportunity, enhancing export earnings and value
addition.
c. To ensure integrated development of Primary Textile Sector such as spinning, weaving,
knitting, dyeing-finishing, hosiery, terry-towel, handloom, sericulture and silk industry
to play their appropriate roles based on integrated planning and efficient implementation.
d. To create scope for marketing of textiles and RMG products by ensuring duty free access
in global markets.
e. To create investment friendly special fund for financing new investment in the textile
sector in line with the facilities provided by the competing countries.
f. To create facilities for development of skilled human resources for textile sector in order
to make the products competitive in the global market by increasing productivity and
quality.
g. To place emphasis on product diversification and their marketing.

Strategies under the SFYP

i. To facilitate setting up of new textile mills in different regions to meet the present and
future demand gap of textile products for the domestic market and export demand.
ii. To set up new educational and training institutes to meet the demand gap of manpower
needed for rapidly expanding textile mills;

iii. To increase skill levels of the technical and marketing manpower employed in the
existing industry;

iv. To make the textile products competitive in the domestic and export market through
increasing productivity, quality and competitiveness.

Jute Industry

Jute Industry has long been playing a significant role in the national economy of Bangladesh.
Soon after independence of Bangladesh, Jute mills under private ownership including
abandoned Jute Mills and the then EPIDC sponsored Jute Mills were nationalized through
promulgation of the Bangladesh Industrial Nationalization Order-1972 and the responsibility
for managing, supervising, controlling and co-coordinating the activities of the mills were

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vested with Bangladesh Jute Mills Corporation (BJMC). Subsequently in pursuance of the
Privatization Policy, 50 mills have been privatized during 1977 to 1985-86, 2 mills have been
scrapped and another 2 mills handed over to the Privatization Commission. So there remain 27
Jute mills under BJMC including 3 closed mills and 3 non-jute mills. At present, there are 88
mills under Bangladesh Jute Mills Association (BJMA) – the association of privately owned
jute mills - including 38 denationalized and 50 mills established by the members of BJMA.
The jute sub-sector has been making considerable contribution to the economy by exporting
jute and jute products and a large number of workers are involved in jute and jute goods
production. Majority of the locally produced raw jute are used in the domestic mills and the
remaining jute and jute goods are exported to overseas countries.

Challenges faced by the Jute Industry

i. Inadequate availability of good quality seeds. (ii) Jute products have to compete with low
cost packaging products of polypropylene / man-made fibers;
ii. Rotting of raw jute is a major problem for the farmers of the areas where water is not
available;
iii. The cost of production of jute goods in public mills tend to be high due to engagement of
excess labor;
iv. Power shortage is a major problem for attaining desired level of production;
v. Due to lack of aggressive marketing, jute products cannot enter into new overseas
market;
vi. There is no legal provision/Act to make the use of local jute products compulsory in the
domestic market.

Policies & Medium-term Objectives

i. Production of raw jute and jute goods according to their demand in the domestic and
export markets;
ii. Proper coordination between Ministry of Agriculture and Ministry of Textiles and Jute
for ensuring production of good quality seeds. To encourage raw jute growers to use
high yield and quality jute seeds.
iii. To encourage the farmers for adoption of modern technology and use of appropriate
fertilizers;
iv. Improvement of productivity through use of modern machinery;
v. To initiate integrated measures including but not limited to marketing and promotion
campaigns for increasing production of eco-friendly raw jute and jute goods for
consumption in the domestic and export markets;
vi. Appropriate initiative for increased production and marketing of diversified jute products.

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vii. All possible efforts will be made to make the public sector jute mills profitable.

Strategies under the SFYP

i. Modernization of old machinery of public and private sector jute mills for improving
productivity and quality of products;
ii. Facilitating the establishment of new jute spinning, weaving and finishing units with
modern technology to make the jute products competitive in the domestic and export
markets;
iii. Appropriate initiatives for human resource development will be made for improvement of
productivity and quality of jute products.
iv. Proper marketing networks will be developed and promotion campaigns undertaken for
increasing the overseas market for jute goods;
v. The new entrepreneurs will be encouraged to produce diversified and high valued jute
goods including technical textiles, geo-jute textiles, and health care, automotive parts
and bodies etc.
vi. Research activities on jute cultivation and jute product manufacturing should be brought
under the Ministry of Textiles and Jute with effective coordination maintained with
private associations, BJMA and BJSA.
vii. Activities of Jute Research Institute will be revamped to facilitate innovation and creation
of diversified jute products that can cater to the latest demands of consumers at home
and abroad.

Footwear and Leather Industry

Bangladesh is on course to be the next manufacturing hub for the global footwear industry.
Many international manufacturers are now interested in setting up factories in Bangladesh
mainly due to a good supply of cheap labor. Moreover a number of foreign investors have
planned to setup their factories in the EPZ`s. Buyers from the EU and Japan are showing a lot
of interest in Bangladeshi produce. All in all, the footwear sector seems very promising but
competition from China, India and Vietnam is severe. Exports of footwear doubled from about
US$100 million in 2007 to US$ 204 million in 2010. Further surges in growth in export are
expected from Bangladesh despite competition from China, India and Vietnam who already
possess a well developed leather and footwear export industry. The growth in footwear
exports will aid in achieving the goal of export diversification and will act as a safeguard
against fall in revenue from leather products for instance. Given the economic slowdown high
priced products may register negative growth as consumers tighten their finances and look for
slightly low priced goods. This provides a golden opportunity for Bangladesh and mainly for
the footwear and leather sector to increase its share. With a good policy environment this
sector is likely to succeed and follow in the footsteps of RMG.

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Leather manufacturing is one of the oldest manufacturing sub sectors in Bangladesh.
Essentially there are three broad components of the leather industry and they are a) leather
tanning, b) leather footwear and c) carry bags, wallets etc. The industry requires modest level
of fixed capital and mostly uses hand tools and sewing machines. Moreover, most of the
enterprises may be classified in the small to medium category. Most of the entrepreneurs take
advantage of the liberalized trade regime and import significant part of their inputs from
abroad and manufacture footwear inputs locally. However, initially availability of footwear
based imported ingredients has been one of the key factors in spurring the growth of small
footwear making enterprises in Bangladesh.

Interestingly, pre-1990 there was no export of leather footwear and during 1990-91 export of
leather footwear stood at a paltry US$ 2.8 million. Since 1990, however, export of leather and
leather products increased from US$137 million in 1990-1991 to US$ 415 million by 2007-
2008 having a trend growth rate of 11.6%. As of 2010-11 the country has a fixed export target
of US$ 564 million. Industry analysts have argued that given the rapid growth of exports the
1billion mark can be reached by FY 2012-13. Furthermore the demand for Bangladesh leather
is picking up pace mainly due increase in production cost (wages in particular) in competing
countries. The government’s decision to allow concessionary 1% duty on export oriented
capital machinery also had a major positive impact on the sector. Given the high quality
leather and leather products that Bangladesh produces at the moment the export contribution is
likely to jump in the near future. Bangladesh has to gear up and be able to deliver on its orders
to stamp its authority in this market as orders from China and India are shifting to the local
manufacturers. Many buyers from China are coming to Bangladesh for the low cost of
production. Moreover many European buyers are trying to take advantage of the duty-free
export facility to the EU as an additional 16.5 percent tax is levied on footwear exports from
China.

Challenges Faced by the Footwear Industry

Some of the challenges faced by the footwear and leather industry are common to other
industries as shown in the constraints to manufacturing section. Listed below are some
industry specific challenges:

• Lack of an integrated comprehensive policy with proper inputs by all the stakeholders such
as exporters, government, suppliers and buyers;
• Shortage of adequately trained and skilled human resources for production as well as for
managerial personnel in the leather footwear industry;
• No training institute or facilities for skill development;
• No support industry in terms of linkage factories such as lasts, cutting dies etc, so there is a
high import dependence thereby reducing price competitiveness as well as increasing lead
times;
• Low awareness amongst international buyers as not enough factories are working in the
industry
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• Poor representation in major international product fairs and shows;
• No design, product development or product testing capability in the country;
• No awareness of international quality standards such as eco-labeling and packaging,
occupational standards and environmental management requirements and their growing
importance to foreign buyers;
• Lack of a suitable enabling environment in the customs facilities of the country at time of
import of raw materials, due to harassment and delays in clearance;
• Inadequate working capital finance as most banks insist on Master L/C and back to back
L/C procedures for import. Unfortunately in today’s highly competitive market most
buyers no longer operate on L/C. Our competitors offer much easier payment terms such
as open account, D/A basis delivery, etc;
• No easy access to the local market for exporters, making them highly vulnerable to the
perils of stock lots and cancellations. In China as well as India up to 50% of the total
output can be sold onto the local market, whilst still enjoying exporter status. In contrast,
in Bangladesh local sales are taxed at such high rates of duty which makes the price too
high for the mass market;
• Political instability may be a binding constraint.

Medium-term Goals
• Be a market leader in producing high quality but low cost shoes and products.
• Simplify the process of setting up of leather industries.
• Make the production and disposal process environmentally safe.
• Improve the communication strategy to international markets so that more people are
aware of Bangladesh as an upcoming market player.
• Improve the trade environment further to help the industry expand.
• Recruit high quality managers and workers.
• Modernize production techniques and communication strategies

Strategies under the SFYP:

• Set up training institutes to train workers and managers and potential designers.
• Advise private and public sector financial institutions to design financial products tailor-
made for this sector.
• Bangladesh missions abroad should start up information campaign and host trade shows to
bolster the industry.
• Design an integrated policy for the industry
• Provide more favorable import and export regimes.

Light Engineering Industry (LEI)

LEI sector plays an important role in the economy in terms of its contribution to employment,
output, value addition and exports. Essentially, LEIs are labor intensive industries requiring

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less capital and generating more employment per unit of capital. This sector has been playing
an important role in the growth of many industries by supplying various types of machines,
spare parts and providing essential repair services (Box 2.2). Most industries of the
manufacturing sector has been historically dependent on imported machines and analysts have
suggested that if Bangladesh is able to produce high quality light machinery then value
addition of most products that are exported will rise significantly. LEI sector comprises of
various types of engineering enterprises and a most of them are small in size comprising of
Box 2.2: Product Lines of LEI

Automobile Sector: The areas of work in this sub-sector cover Bracket, Accelerator, Brake Drum, Bubble, Oil
Expeller, Bumper, Bush, Carburetor, Clutch, Crankshaft, Cylinder, Dies, Differentials, Engine Over Hauling,
Fans, Free Ball, Gasket, Gear & Pinion, Gudgeon Pin, Hatch Bolt, Head, Hubs, Jack, liner etc.

Marine: Accelerator, Bush, Crankshaft, Differential, Diesel Engine, Fans, Petrol Engine, Liner, Piston & Piston
Ring, Marine Spare Parts, etc.

Agricultural Sector: The line of work of LE for this sector (Agriculture) mostly relates to Power Tiller & Spare
Parts, Generator, Irrigation Pump, Crankshaft, Gear & Pinion, Piston & Piston Ring, Bearing Case & Cover,
Bush, Chain Cover, Chassis Bas, Gland, Grass Cutting Machine, Garden Sprayer, Insecticides Sprayer, Hubs,
Liners, Suction, Tube well etc.

Textile: Handloom, Power loom, Spare Parts of all Textile Machinery, Bobbin, Bracket, Carding, Die, Dye,
Gear & Pinion, Liner, Pulley, Ring, Silver Can, Spinning Tubes, Spinning Can, Dobbins & Jacquards, Timing
Wheel, Rubber Roller, Twisting Machine, Doubling Machine, Scroll Roller etc.

Capital Machinery: Lathe Machine, Packaging Plant Machinery, Precision Welding Machine, Power Loom,
Biscuit & Bakery Plant, Washing Plant, Printing Machinery, Laminating Machine, Color Paint machine etc.

Jute & Tea: Precision Winding Machine, Jute Mill Machinery Spares, Base Plate, Softener Machine, 48/64 Pair
Roller, Spare Parts of Jargon Broad Loom, Complete Tea Processing Plant etc., are very well covered by LES.

Construction: Concrete Mixture, Brick Crasher, Crane, Grill & Window, Door, Grand Roller, Roof Whist
Machine etc are successful examples of the performance of LES.

Food Processing: Biscuit & Bakery Plant, Spare Parts of Sugar Mills Machinery, Flour Mill, Shemai &
Noodles Making Machines, Juice (Sugarcane) Machine etc., are very economically fabricated and supplied by
the fellow members of LES.

Furniture: Household furniture, office furniture & equipment etc., made of steel, wrought iron, fiberglass,
laminated board, are the recent line of work which is well accepted in the market.

Other Machinery & Spare Parts: All types of Bearing, All kinds of Pump, Gas Regulator, Lock Wing Cock,
Forged Elbow & Service Tee, Cast Iron Elbow & other Spare Parts for Gas Sector, Machinery & Spare Parts of
Poultry, Blister (Pharmaceuticals Sector) etc.

Source: A strategy for developing the Light Engineering sector of Bangladesh – August 2008

10-49 workers. As of June 2010 there are about 40,000 LE firms generating 0.6 million jobs.
Moreover about 12200 LEI firms enlisted with Bangladesh Small and Cottage Industries
Corporation (BSCIC). The main products of this sector are metal, electrical, electronic and
electromechanical products. Since this sector plays a pivotal role in fuelling growth in a
number of sectors such as jute textile, food processing, fertilizer, shipping, marine transport,
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automobiles etc it has received special attention from past and present industrial policies of the
government. In 2005, 2009 and 2010 this sector has been considered as a thrust sector for
development. Moreover, the current and past Export Policy has highlighted the LEI sector as a
priority sector.

LEI enterprises are spread across the country. Table 2.13 below indicates the concentration of
various products across Bangladesh.

Table 2.13: Regional Product Concentration of LEI

Region Product Concentration
Rangpur Concentration on spare parts of automobiles,
railway, mills, maintenance works etc.
Sylhet Concentration on spare parts of factories, mills,
maintenance works etc
Dhaka/Gazipur /Narayanganj Concentration on capital machinery, bicycle,
construction equipment and spare parts of
automobiles, factory mills, maintenance works
etc
Barisal/Khulna Concentration on spare parts of mills, factories
and industries, maintenance, works, etc
Bogra Concentration on foundry, agro machinery, spare
parts of mills factories, LPG Cylinder and
maintenance works etc
Chittagong Concentration on spare parts of shipbuilding
automobile, industries ,factory mills and
maintenance work etc

Apart from a few items most light engineering products are mainly produced for the local
market. The LE products are mainly exported to the EU and the US. Exporters receive 10
percent cash incentive from government on export value. Furthermore along with this benefit
LE products from Bangladesh also enjoy zero duty under the GSP facility in the European
markets. In general products that are exported include paper and Cement Mills, Bicycle, fancy
light fitting, battery, voltage stabilizer, Iron chain etc. The share of light engineering goods in
total exports have gone down in the past few years however in the first half of the 2000`s the
export of LEI items increased substantially (Table 2.14). Given the massive potential for the
sector (both catering domestic needs of rapidly growing industries and international demand)
the focus should be to obtain greater show casing of local works in international markets.
Given the focus on having a strong manufacturing sector the next few years will be crucial for
strengthening LEI and reducing and managing the challenges that the industry faces.

Table 2.14: Export of Light Engineering Products (million US$)

Products 2006-07 2007-08 2008-09
Engineering Products Total 236.91 219.68 189.48
(1.95) (1.56) (1.22)
Bicycle 54.05 64.28 84.54
(0.44) (0.46) (0.54)
Iron Chain 9.66 2.09 1.62
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 (0.08) (0.01) (0.01)
Others 173.2 153.31 103.32
(1.42) (1.09) (0.66)
Total Exports 12170.3 14108.37 15561.85
Source: Export Promotion Bureau

Key Challenges Facing LEI

• Occasional price hike of raw materials such as scrap, sorted scrap, plain carbon steel, alloy
steel etc
• Certain special and high quality raw materials are required for some specialized items
which need to be imported after being subject to high duties.
• Entrepreneurs entering this market have very little basic education and training and thus
expansion of business and production of high quality products become tough.
• Little or no R & D and thus the industry depends on learning-by-doing.
• Very little working capital available.
• Obtaining bank loans can be cumbersome.
• Extremely difficult to get financial support for technological innovation.
• Lack of metal testing facility making it difficult to identify the metal and its quality.
• Lack of Heat testing facility
• Lack of skilled manpower for product diversification
• Power cuts
• Poor marketing techniques by unqualified managers
• Lack of designing ability.

Medium-term Objectives

• Develop a LEI which would strive to be a regional leader in producing spare parts, basic
electrical equipments and components
• Improve quality of finished products.
• Have more diversification in the types of LEI goods that are now being exported.
• Improve the skill of the labor force such that they are able to cope with international orders
• Encourage R & D in the sector so that firms are able to innovate and introduce new
technology.
• Provide encouragement to entrepreneurs to invest in this sector.

Strategies under the SFYP

• Banks would be encouraged to design financial products that would be suited to the sectors
needs.
• Show-casing of potential talent in the labor force and products in international trade
shows. Bangladeshi Missions abroad will have to play a key role in this.

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• Provide financial incentive along with holding training sessions and workshops to aid
entrepreneurs and managers.
• Develop testing facilities to improve the quality of both inputs and finished products.
• Develop specialized degree/certificate programs to obtain an increase in skilled labor so
both the design and making of the product takes place in Bangladesh thus having more
value addition.

Pharmaceutical Industry

Pharmaceutical industry is one of the most promising sectors in the economy. After the
promulgation of the 1982 Drug Control Ordinance the industry took off. The knowledge,
innovative thoughts and ideas of the professionals working in this sector are the key factors for
the development of the sector. The sector has been supplying about 97 percent of total
medicine requirement of the local market. Due to recent improvements and development in
this sector it has been successful in exporting medicines to the global market including the
European market. Furthermore with growing local and international demand a number of new
companies are being established with high tech equipments and skilled professionals. Industry
analysts have suggested that due to healthy investment and favorable government policy to
explore foreign markets the sector has grown by 13 percent in 2010 this compares relatively
well (given the low starting point for Bangladesh) with other countries such as India and China
which has grown by 21 and 18 percent in the same year (Source: Armtek Pharma LLC,
Consulting firm).With over an investment of 250 million USD the sector has emerged as a
major player in the Bangladeshi economy. From humble beginnings, pharmaceutical exports
are expected to reach $45 million in 2010-11.

Bangladesh is already exporting medicine to over 72 countries across the globe including the
EU. Furthermore, the industry is also trying to break into the massive African market. This
sector has been a prime example of how the private sector can thrive in a favorable policy
sphere. Investment worth up to Taka 20 billion is already on process as the government has
decided to set up an API Park in Chittagong with the facility to house 20 plants. In the last few
years as many as 10 firms each investing Taka 400 million or more have emerged. Some are
already marketing their products while others are in the process. Moreover, the sector has set
its target to take advantage of TRIPS and the Public Health agreement which allows
Bangladesh to export pharmaceuticals worth potentially billions of dollars in the period
between 2005-2016 during which Bangladesh companies are allowed to produce patented
products.

Key Challenges

• Overall poor image of Bangladesh in general also hurts the image of Bangladeshi
companies.
• Lack of promotion capacity of Bangladeshi Missions abroad.

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• Embassies have not been very effective and export of an upcoming industry requires full
support of embassies.
• The new drug policy doesn’t deal with the issue of pharmaceutical export let alone outlay
plans for the development of the industries export.
• Lack of much needed information regarding overseas market. For example starting from
product registration to other documents such as bioequivalence study, validation report,
and manufacturing plan audit report may be required depending on the export destination.
• Quality of government documents and has been poor.
• There are limits to sending product samples abroad. Given the export potentials of the
country the limits are not justifiable.
• There are also limits on the imports of raw materials and these may lead to cutting down of
production. Furthermore the limits were set some time back and hence needs to be
reviewed in light of the current situation and future possibilities.
• Lack of local testing facilities means that companies need to conduct their laboratory tests
abroad.
• Registration fees and the documentation procedure can be cumbersome in certain export
destinations.
• Bangladesh Bank has limits relating to foreign currency transactions. Since there are no
proper banking relationships with some export destinations and the fact that
pharmaceutical companies need to maintain marketing offices abroad this limit is low and
essentially works as a hindrance.

Medium-term Goals for the Industry

• Be a major player at the regional level in the next 5 years.

• Carryout more R&D activities to develop new products.
• Improve the quality of professionals entering into this industry.
• Have a more favorable straight forward policy stance for this sector.
• More showcasing of industry achievement abroad.

Strategies under the SFYP

• Foreign Missions will be oriented to help the industry.

• The import limit will be reviewed to ensure that the production schedule of firms are not
hurt
• More investment will be put into place to ensure that high quality laboratories are set up so
that firms do not need to go abroad for testing their product.
• A one stop information service could be developed under the ministry of commerce to
ensure that all the required information to export abroad is found in one place.
• Bangladesh Bank may review the limit on foreign currency in line with the complaints
from the industry to ensure that exporters don’t have to go through a lot of hassle.

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• Improve Pharmacy/Business management courses both in the Private and public
universities to ensure that the industry has access to high quality skilled labor.
• Improve the quality of government documentation

Agro-processing Industry

Within the manufacturing sector, the growth of the agro-processing industry is particularly
important for Bangladesh as this is one of the major industries in terms of contribution to total
manufacturing production and employment. Some industry analysts have argued that the agro-
processing industry is a US$4.5 billion industry. In general, Bangladesh has a rapidly growing
agro-processing sector, which mostly relies on domestic agricultural production focusing on
serving domestic demands. Furthermore, despite having good potential for high volume
exports, these potentials have not been realized. In recent times, fisheries, fruit and vegetables
processing have received more attention though export is limited to a few countries. The agro-
processing sector includes rice and wheat milling, sugar refining, production of edible oils,
processing and preserving of fruits and fruit juices as well as fish processing, both white fish
and shrimps. The export coverage of agro-processing industry is increasing at a rapid rate.
Local food processors and exporters have mostly focused in and have been successful in
entering into ethnic markets with ethnic products. The sector has been successful in exporting
around 90 types of agro processing food products to over 70 countries across the world.
81percent of the products are exported to 10 major importing countries including Italy and UK
in Europe and USA and Canada in North America and a number of Middle Eastern countries
including KSA, UAE, Kuwait etc.

The investment climate in Bangladesh with regards to agro-processing and production is

attractive and the policy support from the government is quite healthy. The sector has been
declared as a “Thrust Sector” in the current Industrial Policy 2010 and therefore receives
preferential treatment. Till now the mainstream supermarket chains with processed food
products of international standards has not been targeted despite vast production opportunities
within fruits like pineapples, mangoes and different kinds of vegetables, spices, oils etc (these
could be only produced for supermarkets). Bangladesh only has 0.1% of total world export. It
is strongly believed that only changes in product range and ensuring strict standards of
compliance combined with increased market knowledge could create enormous export
opportunities for the US and EU mainstream markets.

Key Challenges

• Improving the quality of inputs, products, technology, business services and environment
etc vital for a successful food processing sector.
• Increase production efficiency and product quality to better meet consumer and export
demands.
• Limited number of products

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• Lack of information about compliance requirements for export items at various
destinations.
• Improve Food safety and agricultural food standards.
• Weak supply chains.
• Lack of information about Bangladeshi agro-processing produce in countries where
Bangladesh is not currently exporting to.

Medium-term Goals

• Develop a dynamic high quality export driven sector creating massive employment
opportunities for both skilled, unskilled and semi skilled workers.

• Develop an effective supply chain so cost can be further minimized

• Develop and improve food quality both by investing more in R&D within firms and also
reviewing Bangladesh`s food and health standards

Strategies under the SFYP

• Bangladeshi missions abroad will show case the achievements of the sector by holding
trade fairs, seminars etc

• Make available more funding for increasing R&D to increase quality and variety of
products that can be exported.

• One stop service at the EPB so that exporters can find information about overseas markets
and their requirements

Shipbuilding Industry

Shipbuilding has a long history in Bangladesh. Aided by wide coastlines it potentially has the
capacity to be a leader in the small ship building industry in the Asian region. Furthermore, it
is expected to be one of the key sectors fuelling export growth during the SFYP. As it
currently stands there are roughly 200 shipyards in the country which are mainly involved in
building and repairing low quality inland vessels. However, a growing number of shipyards
have received orders for and delivered international class vessels. Some analysts suggest that it
is roughly 15% percent cheaper to produce ships in Bangladesh than anywhere else in the
region. Unfortunately till very recently shipbuilding only catered to domestic demand.

Over the last two decades shipbuilding has moved away from European countries to low cost
countries in Asia such as Korea, China, India, Indonesia Vietnam etc. Due to the high cost of
skilled labor in the overall cost of smaller ships as compared to larger ships, some Asian
producers have moved away from building small ocean-faring vessels to large vessels to enjoy
economies of scale. As of 2008-09 Japan and Korea are still the market leaders accounting for

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73 percent of world output, China and the EU region has also got a share of 13.5 percent and 7
percent respectively. Due to its relatively late start Bangladesh has a world share of less than
0.1 percent. It is currently understood that shipyards in China, Korea, Taiwan, Singapore and
Japan are completely booked for the next ten years for building super-ships and many owners
are not finding yards to build smaller ships and this has provided Bangladesh the opportunity.
Moreover, the growth of international trade volume to areas where shipments do not take place
in large volumes has also increased and along with it increased the market for small ocean
faring ships to be as big as $200-400 billion. Industry experts are optimistic that if Bangladesh
is able to obtain at least 1% of the market in the coming years exports will rise substantially.
As measured by a recent study the value added in shipbuilding varies between 30-40%
compared to Bangladesh`s biggest export (RMG) where value addition vary between 20-40%.
It has been argued that if certain raw materials and components could be produced in
Bangladesh value additions will increase further. There are a number of types of vessel that
can be produced ranging from container ships to gas carriers. Germanischer Lloyd indicated
recently that Bangladesh should concentrate on multipurpose vessels than specialize.

Currently the three main ocean faring ship builders are Ananda Shipyard Ltd, High Speed
Shipbuilding and Engineering Co Ltd and Western Marine Shipyard Ltd. Of the three
companies Ananda is by far the most advanced in terms of executing orders. Furthermore,
some reports have indicated that orders worth up to $225 million dollars were received in 2005
and the ships are to be delivered by 2011. In general most of the shipbuilders are trying to
increase their capacity in order to both increase the number of ships they can build and be able
to take on larger orders. As a sign of excellence in quality Ananda received Geneva Century
Golden award for quality. Western Marine was awarded the World Maritime Day Award in
2007 for its contribution to the shipbuilding industry in Bangladesh. Furthermore, all these
business have a number of orders in the pipeline and therefore rapid expansion is must from
avoiding losing orders. There are several requirements that are quintessential in a decision to
enter the ship building industry or to change from building riverine and coastal vessels to
ocean faring vessels. A successful shipbuilding industry requires certain basic features: (a) the
country has to be a riverine country, (b) have decent infrastructure, (c) have skilled manpower,
with (d) quality management system. Bangladesh poses all these features in varying degrees.
Essentially there are a number of factors that act as a barrier to entry in this business. Some are
listed below:

• Availability of suitable land: The shipyards need large tracts of land and moreover the
land has to be adjacent to relatively deep water so that newly built vessels can be launched.
• Significant funding: Roughly $9 million is required to convert established shipyards to
one producing ocean faring vessels.
• Skilled labor: Skilled labor is a key requirement for a successful shipbuilding industry.
The availability of good quality artisans, welders etc are crucial. Furthermore, a major
proportion of the total cost involved in ship building is involved in the actual design of the

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 ship and as a result the abundance of high skilled naval architects, marine engineers is
imperative.
• Meeting international standard: International ocean faring vessels have to be built to a
certain class such as Germanischer Lloyd (GL) Class. If a vessel is not certified a buyer
will not take delivery of the vessel.
• Access to raw materials and components: A variety of components are required in the
ship building industry. The most expensive items of these include Engines, steel,
furnishings, piping and cables etc. Engines are usually by the relatively new ship building
nations. Bangladesh is completely dependent on importing its entire requirement for ship
building.
• Import and export processing requirements: Procedures used to clear imported raw
materials and components have to be simplified. Moreover, it is crucial that ship building
obtains the free trade environment that RMG operates in.

A Regulation entered into force on 27 March 2002 that established a timetable for phasing out
single-hull oil tankers from EU waters by 2015.Therefore Bangladesh can play an important
role in obtaining orders for replacing these ships. Moreover, the shipbuilding capacity of
Bangladesh also has to be increased in order to absorb these orders. Listed below are a number
of shipbuilders that have been identified: 1) Khulna Shipyard Ltd, 2) Meghna Group (Signed a
$35 million deal with a South Korea Ship building giant to build the country’s largest ship
manufacturing facility, 3) Dockyards and Engineering Works limited, 4) Desh Ship Building
and Bengal electric. All these facilities have to be upgraded to bring it up to international
standard.

Challenges of the Ship Building Industry

According to estimates made in 2009 the industry has grown by 10 percent every year and
about 100,000 skilled workers and 150,000 semi skilled workers are employed in the ship
building industry. Moreover, around 2 million people are linked directly or indirectly to it.
Furthermore, by 2011 at least ten more ship yards are expected to have reached international
standard. Other ancillary services may grow with the ship building industry for example over
the course of time world class components and service suppliers may develop. This in turn
may grow into a lucrative export opportunity. Essentially, more growth will take place in the
industry for five main reasons they are:

a) Labor rates are one of the cheapest in the world.

b) Human Resources are available (Thousands of skilled engineers, architects graduate each
year and little training is needed to elevate their skills to international standards).
c) The Government has declared ship building a priority area and has given five years of tax
holiday. Furthermore, a green channel program has been put in place for easing import and
export of components.
d) Business culture is close to western style and the main communication of business with
clients is in English.
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e) Bangladesh is placed in a convenient geographical location in regards to imports and
exports of materials and closeness to regional high growth markets.

However, the industry faces a number of challenges

• Almost all raw materials, ranging from engines to steel, electronics, furnishings, cabling
and piping etc have to be imported from abroad. Moreover, local component and service
suppliers are not of international standard. Only about 10 percent of classed vessel
component is locally produced.
• Due to imperfections in the credit markets, ship builders tend to face higher interest and
service charges from local banks than other sectors.
• Poor quality and public utilities also affect the sector considerable.
• Problem of Red tape, especially when trying to obtain licenses and exporting and
importing goods.
• A shortage of qualified mid management workers.
• The cost of doing business has to be substantially reduced to attract more FDI and joint
partnerships with foreign firms in this sector.

Medium-term Objectives

• Develop and produce high quality ocean going ships

• Improve both technical facilities and develop financial services tailor made for the industry
• Maintain the almost `free trade environment’ to ensure rapid growth in the sector
• Attract more skilled professional from abroad to give training and insights in regards to
the technology
• Focus on how to diversify and move into developing large ocean going ships and
components

Strategies under the SFYP

• The government will invest in setting up training institutes to ensure the right kind of
manpower is available for the industry.
• Bangladeshi Embassies abroad will showcase and further the cause of shipbuilding
industries
• Maintain the free trade environment to help the sector develop a competitive edge
• Develop and ensure public utilities so that ship yards are close to working in full capacity
and are able to deliver on time.
• Reduce the license raj that currently exist by making simple application procedure and
reduce the number of days required for processing documents.

Electronics Industry

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Electronics industry has tremendous prospect for efficient import substitution as well as
exports. Trade in semiconductors is very large and it is relocating to developing countries.
Through subcontracting substantial employment can be generated in this sector. An embryo of
this industry already exists, mostly in the export processing zones. Internationally some of the
electronics industries, particularly those with low technology content, have become sunset
industries in countries like Japan, Hong Kong and Singapore. During the Sixth Plan, efforts
will be made to attract foreign direct investment in these areas.

Steel and Engineering

The engineering industries produce investment goods which determine the technological
capability and consequently the production level and efficiency of an economy. The
engineering industries are also suppliers of important consumer durables. This is particularly
so in the electrical and transport equipment industries. In the developed economies, the growth
of the subsector generally exceeds that of the manufacturing as a whole. In the developing
economies, on the other hand, the sub-sector lags behind.

Bangladesh has a ‘mini’ steel plant at Chittagong which has been out of operation for quite
some time. Its engineering base is very weak despite the fact that the country has a machine
tools factory, a diesel engine manufacturing plant as well as a plant for manufacturing general
electrical equipment. The performance of the sector has not been satisfactory for various
reasons though this is the basic sub-sector for industrial development. During the first four
years of the Fourth Plan (1990-95), the production volume of this sub-sector showed
downward trend because of the low capacity utilization, low productivity, lack of investment
fund in the public sector, major constraints in the private sector consisting of demand
constraints, inefficient operation of existing units both in the private and public sectors, dearth
of skilled and trained personnel, inadequate R&D, inadequate infrastructures, inconsistent
tariff policies etc.

Under the current industrial policy, the growth of this sub-sector has come to depend on
private sector initiative. In pursuance of the government’s privatization policies, BSEC is
endeavoring to increase the efficiency of the enterprises under its control. Proposals for
financial re-structuring of some of the enterprises are under consideration by the government.
BSEC has already issued public shares to the extent of 49 percent in three of its enterprises
namely Atlas (Bd) Ltd, National Tubes Ltd and Eastern Cables Ltd. Bangladesh Machine
Tools Factory (BMTF) and Bangladesh Diesel Plant have been handed over to the Bangladesh
Army. Furthermore, Karnaphuli EPZ is being established on the property of Chittagong Steel
Mills Ltd. Both General Electric Mfg. Co. Ltd and Bangladesh Blade Factory Ltd are SOEs
under BSEC and in the context of their cumulative losses, new projects have been undertaken
to make these enterprises viable and profitable. Moreover, properties of Bangladesh CAN
Company Ltd is under the process of selling out to Progoti Industries Ltd which is another
SOE under BSEC for constructing their head office in Chittagong

105
The objectives for the Sixth Plan for the Steel and Engineering sub-sector are to:

a. support mechanization of the agricultural sector;

b. supply capital goods and spares to various sectors of the economy, e.g., agriculture, power,
gas, natural resources, transport, communication, construction as well as manufacturing
sector itself;

c. substantially reduce dependence on import of machinery and essential spares and

components for jute, textile, sugar mills and electronic industries, thereby improving the
balance of payments of the country;

d. strengthen and diversify the existing export structure through production and export of
engineering goods;

e. maximize capacity utilization of the existing capital intensive industries through necessary
balancing, modernization, replacement and expansion;

f. provide linkage, through sub-contracting, to light engineering industries throughout the

country and thus create gainful employment opportunities with special emphasis on rural
employment through promotion and development of industries in rural areas;

g. create employment opportunities through development of skills in major sectors like steel,
engineering, ship-building and electronics;

h. accelerate transfer of appropriate technology through establishment of project design and

engineering company and thereby reducing dependence on expatriate consultants/experts
with regard to undertaking feasibility study, project design, engineering services, etc.; and

i. accelerate research and development activities for consolidating the industrial base as well
as for the development of indigenous technology.

The general development strategies for the steel and engineering sub-sector as a whole are
outlined as follows:

a. consolidation and effective utilization of existing capacities will be achieved through

planned capacity expansion, product diversification, BMREs and introduction of additional
working shifts;

b. with a view to improving the balance of payments position, reducing dependence on

imports and promoting self reliance, necessary programs will be undertaken to diversify
the industrial base and to set up import substitute industries for the progressive
manufacture of agricultural equipment, jute textile, sugar, electrical machinery and
equipment as well as their spares and accessories;

106
c. measures will be taken to develop viable products which are high technology based and
require venture capital for which private investment is not forthcoming;

d. a significant feature of the strategy for industrial development in general and for steel and
engineering industries in particular will be to set up projects under joint-venture with the
reputed local/foreign manufacturer mainly to create strong export base and thereby to
improve country’s balance of payments position;

e. new capacity will be created in the areas of steel making, electrical cables and conductors
and basic electronic components manufacturing; and
f. viability of sick projects like Bangladesh Machine Tools Factory, Bangladesh Diesel Plant
and other projects will be restored through improvement of management capability of the
enterprises and also through phasing out of inefficient manpower for progressive transfer
to the private sector.
In line with the objectives and strategies mentioned above a number of projects would be
implemented in the next five years for example there will be an MOU signed with Mitsubishi,
establishment of shipyards and dockyards for sea-going vessels etc with the proposed budget
for all the projects under the steel and engineering sub-sector of around Taka 383 crores.
Chemical Industries

BCIC is currently managing thirteen enterprises under its control. Among these enterprises,
there are six urea fertilizer factories, one TSP fertilizer factory, one DAP fertilizer factory, one
paper mill, one cement factory, one glass sheet factory, one insulator and sanitary-ware factory
and one hardboard mill. It may be mentioned that as per the government decision, ten
enterprises of BCIC were included in the privatization list of which, four enterprises have
recently been privatized and handed over to the private entrepreneurs by the privatization
commission.

With a view of attaining self-sufficiency in Phosphatic fertilizer and to reduce dependence on

Triple-Super-phosphate (TSP), Di-Ammonium Phosphate (DAP) plant-1 was constructed at a
cost of Tk.510.64 crore and Di-Ammonium Phosphate (DAP) plant-2 was constructed, at a
cost of Tk.519.64 crore at the premises of Chittagong Urea Fertilizer Limited. The production
capacity of each plant is 800 metric tons per day. Since inception of these two plants, a total of
1,88,678.00 metric tons Di-Ammonium Phosphate was produced up-to June, 2009.
In order to achieve the goals of SFYP a number of projects will be taken up by the
government, for example, the accreditation of the national metrology laboratory, establishment
of the office of South Asian Regional Standards Organization, strengthening product
certification system of BSTI in line with international standards etc. It is expected that in order
to implement the entire range of projects for the chemical sector the government will need to
allocate a sum of Taka 198 crores in the chemical sector.

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On the basis of data compiled from various sources and using estimates, Table 2.15 gives a
snapshot of some key manufacturing industries discussed above.

Table 2.15: Summary of Key Manufacturing Sub-sectors

Employment in 2010 Gross value added Exports FY2010
Industries
(thousand) 2010 (% of mfg) (million US$)
Leather footwear
16.6 204.1
industry 0.8
Food & beverage 1340.0 4.1 687.5
Light engineering 718.4 0.5 17165
Pharmaceuticals 69.0 1.0 40.97
RMG 3100.0 36.7 12496.7
Jute textile 18.2 0.8 540
Shipbuilding 250.0 n/a 9.34
Textile industry 6007.7 13.1 598.1
Agro processing 1529.1 38.2 921.9
Source: BBS, EPB, and websites of various industry associations

Thrust Sectors to Get Priority

On the basis of past performance and some notion of future potential, the Government has
prepared a list of thrust manufacturing sectors which will deserve priority in assigning
favorable treatment with regard to taxes, subsidies, credit facilities, land allotments, foreign
exchange allocations, and the like. The list is given below:
1. Agro-based and agro-processing industry
2. Ship Building
3. Renewable Energy (Solar Power, Windmill)
4. Basic chemicals/dye and chemicals
5. Readymade Garments Industry
6. Active Pharmaceuticals Ingredient Industry and Radio Pharmaceuticals Industry
7. Herbal Medicinal Plant
8. Radio-active (diffusion) Application Industry (e.g. developing quality of decaying
polymer/preservation of food/ disinfecting medicinal equipment)
9. Development of Polymer Industry
10. Jute and Jute products
11. Leather and Leather products
12. Light Engineering Industry
13. Plastic Industry
14. Furniture

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15. Handicrafts
16. Energy Efficient Appliances/Manufacturing of Electronic goods/Development of
Electronic materials
17. Frozen Fish Industry
18. Tea Industry
19. Home Textiles
20. Ceramics
21. Tissue Grafting and Biotechnology
22. Jewellery
23. Toy
24. Innovative and import substitute industry
25. Cosmetics and toiletries
26. Light engineering industry.

Several service activities are also in the list: tourism, ICT, hospital and clinics, container
service, and warehousing.

By and large, the list contains the name of sectors that have already achieved success in
domestic or export markets or both. In the context of limited public resources, according them
priority attention could yield benefits in terms of higher growth performance of the
manufacturing sector. But this should not mean that other activities not listed lack the potential
for achieving export success. History has shown that neither RMG nor shipbuilding was
expected to become high achievers but they did. In the current globalized production system,
where different stages of production can be fragmented, it is possible to locate these various
stages in different countries in accordance with their comparative advantage. What is more
important is to maintain a favorable policy environment and an open trade regime where
imports of intermediate inputs can be seamlessly ensured. For the next decade, Bangladesh can
be the center of diverse labor-intensive production activity, some of which, like RMG and
shipbuilding was in the 1970s or 1980s, are not on the radar as yet.

SMALL AND MEDIUM ENTERPRISES (SMEs)

In a labor surplus country like Bangladesh small and medium enterprises can play a substantial
role in providing the impetus to the development of a modern manufacturing sector and in job
creation outside of agriculture and informal services. Unfortunately the lack of data makes it
very difficult to understand the role of SMEs, especially the small industrial enterprises. Some
rudimentary data is available from The National Report of BBS based on the nationwide
census of all non-farm economic activities in 2001 and 2003.

109
An overwhelming majority—98 per cent of establishments—are micro units having less than
10 workers. Only 13 per cent are in manufacturing and the remaining 87 per cent are involved
in trade and services (Table 2.16). Within manufacturing, 58 percent of the enterprises are in
the category of SMEs (less than 50 workers) employing about 20 percent of total
manufacturing labor force.

Table 2.16: Total Non-Farm Enterprises in Bangladesh, 2003

Performance of SMEs

The target of achieving double digit growth hinges largely on the performance of the small and
micro enterprises. So far SME enterprises have contributed only about 5.2 percent to the total
GDP in 2008-09 and this share has not increased much over the last decade (Table 2.17). In
terms of value addition, the performance is also not very satisfactory as the growth of value
addition has declined in 1995-2000 from the period 1989-95 (Table 2.18). Over the period
1989-2000 value addition of SMEs had grown at an annual rate of 6.6 percent while in the
later five years it grew at only 5.5 percent.

Table 2.17: Contribution of Large & Medium scale and Small Scale Industries to GDP
(%)
Large & Medium Scale Small Scale Industry Total (%)
Industry (%) (%)
1999-2000 11.01 4.39 15.40
2000-2001 11.13 4.46 15.59
2001-2002 11.16 4.60 15.76
2002-2003 11.29 4.68 15.97
2003-2004 11.41 4.76 16.17
2004-2005 11.66 4.85 16.51
2005-2006 12.14 4.94 17.08
2006-2007 12.47 5.08 17.55
2007-2008 12.60 5.16 17.77
2008-2009 12.61 5.17 17.78
2009-2010 12.68 5.20 17.80
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Source: Bangladesh Economic Review, Ministry of Finance, GOB, 2009

Table 2.18: Value Addition by Small Industry and its Growth

Year Value added in small Yearly compound growth
industry (million taka) rate (%)
1989-90 45037 -
1990-91 48316 7.3
1991-92 51929 7.4
1992-93 55925 7.5
1993-94 60334 7.6
1994-95 65220 7.7
Annual Average 1989/90-1994/95 54460 7.7
1995-96 70619 8.3
1996-97 76091 8.0
1997-98 81240 7.6
1998-99 81849 5.8
1999-2000 85122 5.5
Annual Average 1995/96-1999/2000 78984 5.5
Annual Average 1989/90-1999/2000 65607 6.6
Source: Bangladesh Bureau of Statistics

Sectoral Performance

Though current overall performance of the SME sector is not adequate, there have been stark
differences in performance across sectors. Moreover, sectoral composition of SMEs is so
diverse that overall aggregate picture may sometimes be misleading as some sectors may
completely outperform the rest. Therefore, it is imperative to paint a sectoral picture in order
to be able to craft sector specific policies. A comprehensive report for six key sectors was
prepared by SME Foundation and this background report will rely mostly on this study for
sectoral analysis. The report is based on a survey carried out in 2006/2007. The sectors
included in the study are:
i) Agro and Food Processing
ii) Designer goods
iii) Electrical and Electronics
iv) Leather and leather goods
v) Light engineering
vi) Plastic

The following discussion provides the major findings of the survey report. Based on
quantitative analysis the survey reports the size, employment, factor intensities and
productivities and some other diagnostics. The survey followed the BBS definition in defining
the micro, small, the medium, and the large enterprises2.

2
Following BBS definition respectively micro, small, medium and large enterprises are those employing 1-9, 10-
49 workers, 50-99 workers, and 100 or more workers.
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Table 2.19 describes the sectors in terms of gross value added by each firm. Gross value added
is defined as the difference between gross value of output and the cost of all material goods
and services that have been used in the production. The designer goods industry has the
highest average percentage share that gross value added has relative to value of gross output
for all firm size, including small and micro ones. The reason is that the industry has the lowest
percentage share of materials in the total (see Table 2.20). Plastic industry has the smallest
value added among the sectors for all firm-sizes.

Table 2.19: Gross Value Added Relative to Value of Gross Output in Six Sectors
Agro & food Leather & Designer Electrical & Light
Firm Plastics
processing Footwear goods electronics engineering
Sizes
All All All All All All
Micro 40.4 47.33 74.1 38.82 32 58.4
Small 44.3 22.59 59.4 36.79 32.4 34.8
Medium 52.2 45.32 46.8 29.61 30.4 36.74
Large 51 56.95 60 34.61 35 31.03
Source: SMEF survey of six sectors, 2006/07

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 Table 2.20: Material Cost as Percentage of Total Cost
Agro & Electrical Light
Leather & Designer
Firm Sizes food & Plastics engineerin
Footwear goods
processing electronics g
Micro 72.9 83.7 40.87 71.7 76.7 76.89
Small 71.8 91 53.05 77 76.4 90.52
Medium 64.1 91.6 54.07 68.7 83.6 82.51
Large 62.5 86.9 53.53 78.4 74.4 81.13
Micro
71.9 90.9 52.68 75.8 76.5 89.99
Small
Medium
63.6 88.2 53.7 73 79.7 80.28
Large
All 69.2 88.8 53.54 75.2 77.5 85.99
Source: SMEF survey of six sectors, 2006/07

Table 2.21 profiles the average firm size in terms of employment across six sectors. The
designer goods industry has the highest average employment size, followed by leather and
leather goods. Agro processing and plastics are in the middle whereas light engineering is
reported to have the

Table 2.21: Employment per Firm across Four Size Classes in Six Sectors
Firm Agro Leather & Electrical & Light Designer
Plastics
Size processing Footwear Electronics Engineering goods
Micro 5.9 5.9 6.3 4.6 6.5 5.6
Small 23.6 21.8 23.9 19.1 35.7 21.0
Medium 70.6 69.7 65.8 74.4 71.9 75.8
Large 254.2 620.8 170.3 196.9 666.7 261.2
Source: SMEF survey of six sectors, 2006/07

smallest average size in terms of employment. Among the small and micro industries, designer
goods industry employs the highest number of labor per firm.
Products of electrical, light engineering and agro processing are mostly targeted for the
domestic markets; revenue from domestic sales is higher in those industries. Revenue from
export is higher in designer goods and in leather and leather goods industry. Table 2.22 and
Table 2.23 report percentage revenue from domestic sales and from exports for the six sectors.
It is noteworthy that more than 80 percent of revenue comes from export of leather & footwear
and designer goods of micro-sized industries.

Table 2.22: Percentage of Revenue from Domestic Sales

Firm Agro & food Leather & Electrical& Light Designer
Plastic
Size processing Footwear electronics engineering goods
Micro 100 15.38 100 100 16.67 100
Small 94.76 50.22 100 100 40.31 58
Medium 86.18 54.48 100 100 53.14 62
Large 86 90 100 100 39.25 37
Source: SMEF survey of six sectors, 2006/07
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 Table 2.23: Percentage of Revenue from Export
Firm Agro & food Leather & Electrical& Light Designer
Plastic
Size processing Footwear electronics engineering goods
Micro 0 84.61 0 0 83.33 0
Small 5.24 49.77 0 0 59.69 39
Medium 13.82 45.51 0 0 46.86 38
Large 14 10 0 0 60.75 57
Source: SMEF survey of six sectors, 2006/07

Limited access to modern technology is a major challenge facing the Bangladesh SME sector.
Table 2.24 presents the average number of machines per firm. Agro and food processing
industry uses the smallest number of machines. Leather and leather goods industry uses the
largest number of machines followed by designer goods industry and this is true for small and
micro enterprises too.

Table 2.24: Average Number of Machines in Use across Six Sectors, 2007
Firm size Agro Leather & Electrical & Light Designer
Plastics
classes processing Footwear Electronics Engineering goods
Micro 2.1 6.15 3.8 7.0 6.13 2.7
Small 4.2 9.93 7.8 13.2 8.44 6.7
Medium 6.6 21.95 11.2 17.18 19.17 16
Large 24.4 87.82 29.3 29.63 59.29 41
Source: SMEF survey of six sectors, 2006/07

Table 2.25 reports the average capital-labor ratio for each of the six sectors. Capital-labor ratio
is calculated as the replacement cost of machinery of the firm by dividing the employment
size. The estimates show that for small and micro industries, leather and plastic industry are
the most capital intensive than others.

Table 2.25: Capital-Labor Ratio across Six Sectors

(Tk. 000s)
Firm Sizes Agro Leather Design Electrical Plastics Light. Eng.
Micro 53.5 283.5 63.5 38.58 229 69.97
Small 80.12 248.8 93.7 27.99 243 75.99
Medium 160.51 289.1 284.6 30.37 438 63.12
Large 217.28 52.7 988.5 22.31 542 77.36
Source: SMEF survey of six sectors, 2006/07

Table 2.26: Labor Productivity per Worker

Firm Sizes Agro Leather Design Electrical Plastics Light. Eng.
Micro 830.0 3081.89 78.6 1635 6812 2000
Small 967.6 3543.86 138 1076 7853 4110
Medium 396 6045.96 164.8 457 10636 2490
Large 784.7 3502.24 57.6 587 8501 2350
Source: SMEF survey of six sectors, 2006/07
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Table 2.26 reports the average labor productivity of each of the six sectors. Labor productivity
is calculated as physical volume of the firm divided by the employment size. Plastic industry
ranks the top for all firm sizes. Designer goods industry has the lowest labor productivity per
worker among the sectors.

In summary, the designer goods industry rank the top in terms of gross value added, average
employment size, revenue from export. However, capital-labor ratio is relatively high and
labor productivity is relatively low in this industry compared to other industries in the study
report. Leather and footwear goods industry produce for both domestic market and for export.
Products of electrical, light engineering and agro processing are mostly targeted for the
domestic markets. In terms of capital labor ratio the agro and food processing industry is in the
middle. However labor productivity per worker is relatively lower in this industry compared to
other industries. Plastic industry has the smallest value added among the sectors. The industry
has the highest unit replacement cost, lowest labor productivity and the highest capital-labor
ratio. Leather and leather goods industry is the second highest in terms of value added,
employment and capital-labor ratio. Labor productivity is highest in this industry among all
the six. Light engineering industry has the lowest value added; employment per firm in this
industry is the smallest.

Past Government Policies for SME Development

All governments have emphasized the importance of developing the micro and small
enterprises. Some of the recent policy initiatives include the following:

National Taskforce on Small Enterprise Development: The Government constituted a

National Taskforce on small enterprise development to draw up a realistic strategy for
promoting rapid growth and vigorous competitiveness among these enterprises. The Taskforce
submitted its report including a comprehensive slate of recommendations that, if implemented,
will mount a coherent strategy to promote the development of small enterprises in Bangladesh
in three phases: short, medium and long-term. The Government accepted most of the
recommendations with some modifications.

Small Enterprise Cell and Small Enterprise Foundation: Considering the importance of
small enterprise financing, a Small and Medium Enterprise (SME) cell was created in 2003 in
the Ministry of Industries (MoI). The cell has announced that 80 percent of total resources
available for Small and Medium Enterprises would be allocated specially for small enterprises.
The SME cell also decided that BASIC and BRAC bank will be working together as lead
banks and will be responsible for distribution of credit and venture capital fund in the short
run.

Creation of Special Funding Arrangements: The following funds are now in operation in
Bangladesh governed by different entities like the Bangladesh Bank, the SME Foundation and
the Ministry of Finance (Banking & Financial Institutions Division)

115
i) Bangladesh Bank Fund:

a) Total fund of Tk.600 crore (revolving).

b) 17 banks & 23 non-bank financial institutions have signed Participation Agreement.
c) Tk. 853 crore is refinanced up to December 2009 to 17 banks and 21 nonbank financial
institutions signed the agreement.
d) Total number of enterprises being served is 8317.

ii) EGBMP/IDA Fund:

a) Total fund of Tk. 116 crore (revolving).

b) 18 banks & 23 non-bank financial institutions have signed Participation Agreement.
c) Tk. 244 crore is refinanced up to December 2009 to 14 banks and 14 nonbank financial
institutions.
d) Total number of enterprises being served is 2541.

iii) ADB Fund:

a) Total fund of Tk.202 crore (revolving).

b) 13 banks & 15 non-bank financial institutions have signed Participation Agreement.
c) Tk. 335 crore is refinanced to 9 banks and 7 non-bank financial institution up to
December 2009.
d) Total number of enterprises being served is 3264.

Major Constraints Faced by Micro and Small Enterprises in Bangladesh

Despite these measures, the development of SMEs has been lack luster and requires a big push
to enable it to play its potential development role. SMEs are heterogeneous by their
characteristics, mode of operation and types of SME products and processes. As such it is
difficult to make sweeping generalization about constraints facing SME entrepreneurs. Some
of the major issues are:

Inability to market products: The present and future growth prospect of any product depends
to a large extent upon marketing activity. This requires having a well-planned marketing
strategy including advertisement campaign as well as resources for implementing that strategy.
Unfortunately, most SME entrepreneurs are heavily constrained in this respect as they cannot
make adequate investments in marketing and also lack necessary marketing skills.

Inability to maintain product quality: A major constraint to the sustainability of SME growth
in Bangladesh is the inability to maintain the quality of SME products. At present Bangladesh
produces mostly common consumer goods which are labor-intensive and require relatively
simple technology. But due to poor quality these products cannot stand competition from
imported products. The challenge for Bangladesh today is not in competing with high-tech
products of developed countries but to make its SME sector survive competition from its
rivals.
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Lack of investment and working capital: It goes without saying that access to finance
particularly working capital finance and investment finance to enable them to expand their
business is a prime constraint facing the SMEs. Banks in general do not consider SME
financing as profitable activity. SMEs are also regarded as high risk borrowers because of their
low capitalization, insufficient assets and high mortality rates, and consequently banks are not
keen to offer them credit at comparable interest rates. SMEs in the export sector also face
problems of access to working capital.

Lack of skilled technicians and workers: Lack of skilled manpower is a perennial problem in
Bangladesh. This problem is particularly acute for small and medium scale export oriented
enterprises. Bangladesh has made large inroads in the world’s apparel market through
commendable performance of RMG sector. However, the value addition of the products is
low. Despite high demand, Bangladesh cannot make much entry into high value fashion wear
exports due to dearth of trained workers. Supply capacity is thus constrained by non-
availability of skilled workers.

Poor management skills of entrepreneurs: In the modern day economy, managerial skills for
undertaking planning, marketing, and cash-flow management are vital for survival of an
industry, small or large. SME entrepreneurs in Bangladesh are very much lacking in
managerial skills and are not used to strategic planning. It is natural that they are unable to
survive market failures. The concept of managerial training for SME entrepreneurs is yet to
take root in Bangladesh.

Lack of information: In a competitive world, market information regarding demand and

supply situation for a product at a particular period, changing consumer tastes, etc. are crucial
elements for the success of an SME. In Bangladesh, although some financial institutions and
few trade bodies like Dhaka Chamber of Commerce (DCCI) have introduced help desk and
knowledge centers with internet facilities, such services are too few to provide service to the
SME entrepreneurs on the whole. Lack of market information is a serious constraint to SME
development.

Non-tariff barriers (NTB) and changes in world trade regimes: Liberalization of industrial
and trade regimes in the wake of globalization are likely to have significant effects on
Bangladesh’s SMEs. Over the past decade there has been a significant change in the world
trade regime with new regulations coming into effect.WTO agreements such as Application of
Sanitary and Phytosanitary Measures (WTO SPS Agreement) to trade in agriculture products
raises the barrier for SME exports to developed markets. WTO agreements not only cover the
traditional goods sector, but also new sectors like services. Lack of knowledge about the
current status and essential components of WTO Agreements hampers trade and business. The
need for product standardization and compliance with health and hygiene requirements is an
unavoidable part of international trade in farm and non-farm products catered by SMEs. Long-
run economic prosperity will critically hinge upon turning the challenges of globalization into
opportunities.
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 Enabling environment for trade and business: Although trade and business activities are
carried out by the private sector independent of government control, existence of enabling
environment like supportive regulatory framework, congenial tax regime, developed transport
and communications infrastructure is vital for SME development. Bangladesh has made some
progress in this direction but it still falls short of present day needs.

Other constraints of a general nature are inefficient infrastructure support especially power,
widespread tariff anomalies, low productivity of labor, low level of technology, lack of
research and development and low level of education of SME entrepreneurs.

Additional insights on what constraints the SMEs can be obtained from the results of
enterprise survey conducted in 2003 by the international Consultancy Group (ICG) of the UK
and Micro Industries Development Assistance and Services (MIDAS). A summary of the
major obstacles identified by the survey is presented in the table below (Table 2.27).

Table 2.27: Policy Suggestions by Survey Respondents (percentage of firms in an

industry)
Agro &
Leather & Electrical& Light Designer
Suggestions Plastic food
Footwear electronics engineering goods
processing
The VAT rate to be decreased 27.4 37.8
Import duties on inputs to fall 24.46 11.3 19.01 15.5 33.1 23.6
Power outage to be reduced 20.1 10.5 52.82 9.7 53.8 22
Interest rate to be decreased 12.51 20.4 16.9 20.4
Bank loan to be easily available 11.2 18.5 30.28 7.8 10.8 15.8
Decrease direct taxes 5.63 11.5 9.4
Increase production 7.8
Greater transparency in rules 6.2 4.23 12.6 16.2 7.8
Political Stability 3.9 6.2
Greater emphasis on training 0.71 10.0 6.2
Refrigerated space on cargo
3.2
plane
Increasing buyers/ orders 8.7
Arrangement of international fair 2.9
Separate clusters 3.9 11.3 16.20 10.0
Easy shipment 1.26 13.1
Land for job worker 5.71
Bigger protection from imports 10.5
Upgrade technology 5.9 3
Common facility center 5.63
Others 3.75 25
Source: SMEF survey of six sectors, 2006/07

The most important policy recommendations as suggested by the survey respondents are
i) Reduction of import duties on inputs.
ii) More symmetrical VAT administration
iii) Reduction of power outage

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SME Objectives, Strategies and Policies in the Sixth Plan

In order to achieve double digit growth, the contribution of small and micro enterprises to
GDP should also be increased to double digit. This can be achieved through 3 major ways:

i. By increasing the number of micro and small enterprises through proper monetary and non
monetary incentives so that people with entrepreneurial capabilities are more willing to
start small businesses.
ii. By scaling up the size of the existing micro and small enterprises.
iii. By enhancing the productivity of the existing micro and small enterprises.

Therefore, all the strategies and policies should aim at increasing the number, size and
productivity of the SMEs. While governments in the past have sought to emphasize the role of
SMEs, a coherent strategy and underlying policy framework for supporting SMEs has been
lacking. This shortcoming will be addressed in the Sixth Plan. The broad objectives of the
SME strategy and policy framework will be to:

1. Accept SMEs as an indispensable player in growth acceleration and poverty reduction,

worthy of its great potential and commitment in the requisite overall policy formulation
and execution.
2. Identify the key constraints to SME and address them specifically through appropriate
policy and institutional changes.
3. Re-orient the existing fiscal and regulatory framework and government support institutions
towards facilitating the achievement of the goals of SME Policy;
4. Nurture and partner SME focused civil-society institution(s) having credible management
teams in terms of the delivery of needed services, leadership, initiation, counseling,
mentoring and tutoring, etc.
5. Create innovative arrangements so that deserving and small enterprises with desired
entrepreneurial track record and/or promise can be offered financial incentives for
development.
6. Help implement dispute settlement procedures that proactively shield small enterprises
especially from high legal costs and insidious harassments.
7. Take measures to create avenues of mobilizing debt without collaterals to match (either
using debt-guarantee schemes or mapping intellectual-property capital into pseudo-venture
capital) in order to assist small enterprises to have better access to finance.
8. Systematically accord precedence to small enterprises in the allocation of budgetary funds
and, within the limitations of government’s resources.
9. Harness information & communications technologies, Internet Protocol (IP)-based
infrastructure, and electronic-governance in an effort to make regulatory and other support
services accessible to SMEs through the internet.

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Credit Policies

Availability of credit is the most important factor for SME development. The Bangladesh
Bank has already developed a comprehensive credit policy for SMEs. These loans will be
disbursed to the small, medium and women entrepreneurs. In future, the banks and the
financial institutions will have to set sector, zone and branch-wise credit disbursement targets
and such reports will have to be sent to the corresponding branch offices of the Bangladesh
Bank. The details of the credit disbursement targets set by the banks and the financial
institutions for 2010 are shown in Table 2.28.

Table 2.28: SME Loan Disbursement Target set by Bangladesh Bank

Target
Sl. No. Types of Bank & Financial Institutions (Crore Taka)
1 Nationalized Commercial Banks 3897
2 Specialized Banks 600
3 Private Commercial Banks 17478
4 Foreign Banks 707
5 Non-Bank Financial Institutions 1313
Total 23995
Source: Bangladesh Bank SME Credit Policy, 2010

This important policy initiative will be made more effective by focusing attention on a number
of issues. These are:

Targeting: Targeting is the most important part of the credit policy for SME development.
Bangladesh Bank has adopted area and cluster approaches to target small and micro
enterprises. In line with these approaches, targeting will be strengthened through:

i. A census of small and micro enterprises containing detail information of inputs, outputs,
technology and management.
ii. Issuing of identification card (SME ID) for small enterprises with registration number.
iii. Creating a database of SME ID and update it periodically (e.g., in every two years)
iv. Detail Upazila level map of small and micro enterprises to identify cluster

Development of new and customized products: ‘One size fits all’ credit policy will not work
for small and micro enterprises. One major criticism of microcredit disbursed by microfinance
institutions is that it fails to tailor their products according to demand. Terms and conditions
for credit (repayment period, interest rate, grace period, installment, insurance, etc.) taken for
cow-fattening should be different from a credit taken for retail business. Therefore, attention
will be given to developing loan products that relate better to specific type of credit needed.

Interest rates: In order to encourage people with entrepreneurial skill to start new business
and also the existing entrepreneur to scale up the production, subsidy on bank interest rate can
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be considered actively through both private and public banks. However, this may result in
rechanneling or misuse of credit to non SME sectors. Therefore, monitoring the use of credit
both at bank and borrower levels is also a critical part of the implementation of credit policy.
Possible options include:

i. 10-15 percent interest rate subsidy based on the priority sectors upon identification through
SME ID.
ii. Since clusters create externalities, greater subsidy (e.g., 15 percent) can be offered to small
and micro enterprises which belong to a cluster.
iii. Greater subsidy for backward regions, disaster prone areas (e.g., Monga prone area, coastal
area, etc.).
iv. Agro-based collateral free credit facility can be offered to the poor specially women at a
low interest rate.

Capacity building of banking sectors: Credit for SMEs differ from other conventional credit
banks are use to lend. Banks are required to build and expand capacity to develop new
products, to identify the potential borrowers, to disburse and collect loan in time, and to
monitor the use of credit. Some banks have already created SME cell. Specific actions to
strengthen capacity include:

i. Bangladesh Institute of Bank Management and Bangladesh Bank Training Academy in

collaboration with SME Foundation can offer courses on SME credit to the bankers
ii. Bangladesh Bank can persuade and also prepare regulations to ensure that all banks have a
specialized cell for SMEs.

Credit through PKSF

NGO sector of Bangladesh has a long history in disbursing credit for small and micro
enterprises. PKSF (Palli Karma Sahayak Foundation) is the wholesale credit seller who lends
credit to its partner NGO-MFIs. In 2009, PKSF disbursed micro enterprise loan worth of Taka
1.95 billion to 0.14 million borrowers. PKSF will continue to be an important source of credit
to SMEs

Tax Policy and Other Fiscal Incentives

A large part of small and micro enterprises belong to the informal economy of Bangladesh.
These enterprises do not have any legal identity and therefore do not pay any tax even if their
income is taxable. Cost of being legal (registration fees, tax, harassment, etc) can be much
higher than being in the shadow economy. Therefore, in order to target the small and micro
enterprises effectively, to bring them in the formal sector, adequate incentives should be
offered so that smaller enterprises are encouraged to have a legal identity. Therefore, SFYP
recommends that

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i. A definition based on annual turnover, not only on the number of employees, is required to
classify the enterprises for tax purposes. One can define as many as ten groups based on
annual turnover so that tax rates can increase linearly and smoothly with size without
abrupt jump.
ii. Based on the distribution of enterprises in terms of annual turnover, the lowest group (e.g.,
micro enterprises) should be completely exempted from VAT. The difference of tax rates
between two adjacent size-groups should not exceed 1 percent. The fiscal cost of
exemption and lower tax rates is likely to be outweighed by the benefit of larger number
and greater size of the enterprises.
iii. Greater tax incentives for export oriented small and micro enterprises are recommended.
For example, handicraft has higher export orientation than other SMEs. So, based on
export share of total production, tax subsidy can be offered.
iv. 2-5 years of tax holiday can be considered for larger SMEs, especially manufacturing,
which take time to take off and make profit.
v. Generally the legal form of small industries is the sole proprietorship and these enterprises
are subject to wealth tax on their business capital. Exemption of wealth tax for smaller
manufacturing can be considered.

Skills Development

Skill development of the entrepreneur and the workers of the small and micro enterprises is a
precondition for the development of this sector. Following steps will be taken in the Sixth Plan
to strengthen availability of skills for SMEs:

i. Education policy and national skill development policy would reflect the demand for
skilled labor in SMEs and how this demand can be met with current stock of training and
educational institutes.

ii. SME Foundation with the help of The National Council for Skill Development and
Training (NCSDT), Bangladesh Technical Education Board (BTEB) and Directorate of
Technical Education (DTE) will offer specialized vocational training/courses at the
Upazila level based on the local demand.
iii. Upon identifying the clusters of enterprises, SME Foundation will collaborate with local
vocational training institutes and NGOs to offer on job training to the workers.

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Gender Policy for SMEs

Women can play a major role in the expansion of the SME sector, especially in rural areas.
The Entrepreneurship skills of women are already well established from the experience of the
micro-credit revolution. The Sixth Plan will build on this positive experience by encouraging
women entrepreneurs through preferential access to credit and training programs.

The Industrial sector has created employment opportunities for women who mostly come from
rural areas, for creating a positive and enabling working environment a Gender Policy for all
the industries in the Industrial Sector will be formulated.

Institutional Capacity Building

In order to put SME on the forefront of national policy domain and to implement the policies,
institutional capacity of the relevant ministries, Bangladesh Small and Cottage Industries
Corporation (BSCIC)/Small and Cottage Industries Training Institute (SCITI), Bangladesh
Institute of Management (BIM), Bangladesh Industrial Technical Assistance Center (BITAC)
and National Productivity Organization (NPO) SME Foundation, etc. will be upgraded.

DEVELOPMENT RESOURCE ALLOCATIONS IN THE SIXTH PLAN

Much of the manufacturing activities are in the private sector. The main role of the
Government is funding of support services in areas of trade policy, industrial policy, and small
and micro enterprises. For manufacturing SOEs, the investment program will be mainly
financed from own resources. The allocation of resources in the sixth plan is basically
intended to finance these support services for the manufacturing sector. Indicative allocations
of development resources to support the manufacturing sector in current and constant
(FY2011) prices are shown in Tables 2.29 and 2.30 respectively.

Table 2.29: Allocation of Development Resources Manufacturing in the Sixth Plan

(crore taka; current price)

Ministry/Activities FY2011 FY2012 FY2013 FY2014 FY2015

Ministry of Commerce 123 126 114 133 152
Ministry of Industry 475 555 630 741 843
Ministry of Textiles and Jute 103 131 149 175 199
Total manufacturing 702 812 893 1049 1193

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 Table 2.30: Allocation of Development Resources for Manufacturing in the Sixth Plan
(crore taka; FY2011 price)

Ministry/Activities FY2011 FY2012 FY2013 FY2014 FY2015

Ministry of Commerce 123 117 100 109 117
Ministry of Industry 475 516 547 605 649
Ministry of Textiles and Jute 103 122 129 143 153
Total manufacturing 702 755 776 857 919

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 Annex Tables and Figures
Annex Table 2.1: Cross-Country Comparison of Manufacturing Performance
1980 1990 2000 2008
Manufacturing Share as % of GDP

Malaysia 21.5 24.2 30.9 28.0

Thailand 21 27 34 35
Vietnam 10.5 12.3 18.6 21.1
S. Korea 25 27 28 28

China 30.2 32.7 32.1 32.9

Bangladesh 10.8 12.7 14.7 17.2
Source: World Development Indicators, World Bank

Annex Figure 2.1: Structure of the Bangladeshi Economy, 1973-2008

Source: Bangladesh Bureau of Statistics

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 CHAPTER 3: ENERGY DEVELOPMENT PLAN
TO SUPPORT HIGHER GROWTH AND
EMPLOYMENT
BACKGROUND AND STRATEGIC CONTEXT

The frequency of power and gas outages is threatening citizen welfare and development
prospects. The annual loss to production and income from power outages could well exceed
0.5% of GDP per year. The availability of domestic primary fuel supply is getting so scarce
that it is forcing severe measures like shutting down fertilizer factories, rationing gas supplies
for household and transport uses, and keeping idle installed power units.

Every 1% of GDP growth is estimated to lead to a growth of 1.4% in electricity demand in a

typical developing country. For a 5-6% typical annual economic growth rate, this would
imply a need for close to 7-8% growth in electricity supply. Rural electrification ratio
expanded rapidly since the early 1990s, growing from 10 percent in 1994 to 37% in 2008.
Yet, this is still amongst the lowest in developing world. In the rural economy, low power
connectivity is a serious constraint to non-farm sector growth. Against this demand pattern,
unfortunately no substantial low-cost and reliable power generation capacity has been added
since 2002.

Due to the severity of the power crisis, the Government has been forced to enter into
contractual agreements for high-cost, temporary solutions, such as rental power and small
IPPs, on an emergency basis, much of it diesel or liquid-fuel based. This has imposed
tremendous fiscal pressure, as budgetary transfers are routinely made to the power sector in
order to enable it to stay current on payments to power suppliers. The Government is aware
that precious resources are being diverted to cover operating losses of the utility that arise
from purchasing short-term high cost power which is not sustainable for the financial health of
the sector in the long run. Therefore, the longer term strategy embedded in the Sixth Five Year
Plan power sector plan is to use budgetary allocations to promote low-cost, sustainable
expansion of power generation, transmission, and distribution capacity.

Also, there has been no new capacity addition to fuel sources for power generation. With a
power sector that is almost totally dependent on natural-gas fired generation (89.22% of power
comes from gas-fired generators), the country is confronting a simultaneous shortage of
natural gas and electricity. Other fuels for generating low-cost, base-load energy, such as coal,
liquid fuel, or a renewable resource like hydropower, are not readily available, and any
policies put in place to access them are likely to have a 3-5 year lead time. Gas supply is
dwindling, and the absence of obvious choices for alternative fuels implies that there are no
readily identifiable and immediately available options for alternative, new generation sources
to meet its base-load power requirements.

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ENERGY STRATEGY IN THE SIXTH PLAN

Per capita consumption of energy in Bangladesh is on an average 160 kgoe (kilogram oil
equivalent) while it is 530 kgoe in India, 510 kgoe in Pakistan, 340 kgoe in Nepal and 470
kgoe in Sri Lanka. The average consumption in Asia is 640 kgoe. It is evident that per capita
average consumption of energy in Bangladesh is significantly lower than the average of Asia.
Even it is lower than those of South Asian countries. On top of this low level of consumption,
there is already a serious energy crisis.

Clearly, the situation calls for an urgent but well-crafted sustainable strategy to address the
energy crisis and increase the energy supply to support Bangladesh’s development.
Accordingly, the Government has adopted a comprehensive energy development strategy3.
The strategy provides a balanced approach that looks at both supply increases and demand
management aspects of the energy market. Energy options from domestic sources needs to be
complemented with possible options for energy trade. Specifically, the strategy will address
what the government can do about gas and power, and will look at options for diversification
of fuels for generation. The strategy will also explore alternative solutions such as increased
electricity imports from neighboring countries and LNG trade. Furthermore exploration of
domestically available resources, such as coal and oil and gas from offshore drilling will be
intensified. The supply side options will be balanced with policies for demand management
that conserve energy and discourage inefficient use of electricity.

When the present Government assumed office, the power generation was 3525 MW which has
now been increased to 4699 MW (as of June 2011). The production capacity will be enhanced
to 11457 MW by 2015 and it requires USD 15 billion investment out of which USD 10 billion
is expected to be provided by private sector. Development and investment in the power and
energy sector is different from other sectors due to the sector specific characteristics. Huge
primary asset accumulation and procurement are required for investment in the power and
energy sector. Strategies have been made to meet this need by involving private sector with
Government. Keeping this in view, the importance of external investment is substantial. On
the other hand, consumer’s economic consideration is given priority over commercial interests
in price setting of electricity, gas and other fuel oil. However, estimation and reevaluation of
power and other energy prices is required in order to involve the private sector.

A part of the reason for the past lack of investment in power is poor pricing policies that kept
the publicly owned electricity industry in constant deficit and kept away private investment. It
also caused poor maintenance practices, resulting in power losses and frequent breakdowns.
Other constraints that have contributed to power crisis include difficult sector governance and
inefficient management.

3
Power Sector Future Rolling Plan (draft), Power Division, MOEMR; Sixth Five Year Plan 2011-2015, Energy
and Mineral Resources Division, MOEMR.
127
The international evidence including from Bangladesh is clear that electricity should be treated
as a private good and its price must reflect its cost of production and a fair return on
investment. This will both ensure that there is efficient use of electricity and the industry
generates enough surpluses for re-investment. Social objectives like reaching out to the poor
and rural community could be achieved through cross-subsidization as well as explicit budget
subsidies. As a result of past reforms, private sector participation in electricity generation has
increased; the sector governance has also improved in a number of areas including bill
collection and corporatization. However progress on proper pricing of electricity is still
inadequate. A key policy reform for the Sixth Plan is to ensure proper pricing of power based
on a review of good international practices. The possibility of establishing private electricity
distribution companies will also be explored.

Energy trade including electricity trade with neighbors has tremendous potential for unlocking
Bangladesh’s long-term energy constraints in a cost-effective manner. South Asia’s North
East Sub-region has tremendous untapped hydro-power potential (See Table 3.1). Through
proper grid connectivity and transmission lines, the scope for power trade to relieve
Bangladesh energy constraint is tremendous. It is very encouraging that a head start has
already been made to initiate power trade with India. In the short-to medium term 250 MW of
power flow through Bheramara-Bahrampur grid connectivity is envisaged. Over the longer-
term, this could move up to 1000MW of power imports. Importantly, grid connectivity with
India opens up possibility for power trade with Nepal and Bhutan. Additionally, opening up
of power trade will facilitate new investments from India’s private sector into Bangladesh for
power as well as primary fuel.

Table 3.1: Hydro-Power Potential in Northeast South Asian Countries

Country Hydropower Installed Capacity Utilization (%)
potential (MW) (MW)
Bangladesh 1897 230 12.1
Bhutan 30,000 432 1.4
India 148,701 25,587 17.2
Nepal 42,130 527 1.2
Total 209,008 26,776 12.8
Source: SAREI, USAID

Given the acute shortage of primary energy, the Plan will put special emphasis on its
development. In addition to trade with neighbors discussed above efforts will be made to
exploit all possible sources of primary and renewable energy (hydro-power, gas, coal and solar
energy). This will be pursued in some combination of public investment, PPP, and pure private
investment. Proper pricing of primary energy will be critical to attract foreign private
investment as well as to ensure efficient use of scarce primary fuel. Social needs for primary
fuel will be balanced through cross-subsidies and budgetary transfers with a view to
reconciling incentives for private investment and efficient use with social need for ensuring
access for the poor.

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Key Elements of the Energy Strategy in the Sixth Plan

Against the backdrop of the above broad strategy, the key specific issues, objectives, options
and strategies of the energy sector that will be addressed in the Sixth Plan can be summarized
as follows.

Issues

• Inadequacy of supply of electricity compared to demand.

• Outdated generation, transmission and distribution system of electricity.
• Need for rationalization of energy and power prices.
• Insufficient maintenance funds.
• Large dependence on single source of energy for electricity generation i.e. gas.
• Minimum participation of private sector in electricity generation.
• Inefficient transmission and distribution lines
• Inefficient management in electricity generation, transmission, distribution and sale.
• Insufficient exploration activities for oil and gas both onshore and offshore.
• Insufficient exploration activities for coal and other minerals in the country.
• Need for decision on coal extraction method.
• Insufficient refining as well as storage capacity of liquid fuel.
• Limited use of renewable energy.
• Inadequate public and private investment both in electricity generation as well as in oil and
gas sector.
• Use of PPP model to plug or significantly reduce resource gap.
• Inadequate primary energy supply chain.
• Lack of public awareness.

Core Objectives

• To ensure energy security.

• To make the power sector financially viable.
• To increase generation capacity of electricity.
• To introduce a new corporate culture in the power sector entities.
• To improve the reliability and quality of electricity supply.
• To increase the efficiency of energy use as well as reducing system loss.
• To diversify fuel use in power generation i.e. coal, liquid fuel, etc.
• To make the power sector more efficient in terms of generation, transmission and
distribution.
• To increase private sector participation in the form of public-private (national) – private
(international)/private (national/international) to mobilize resources in electricity, gas and
other energy supply.

129
• To reduce demand-supply gap both in primary (fossil fuel) and secondary (electricity)
sector.
• To conserve both power and energy.
• To intensify exploration activities both in onshore and offshore area to find new oil and
gas fields.
• To introduce ‘Energy Manager’ in energy consuming industries and ‘energy auditing
system’ with a view to optimizing energy use.
• To introduce labeling system with a view to ensuring the use of energy efficient
equipment.
• To appraise the producing gas fields.
• To raise price of gas, liquid fuel and electricity step by step compatible with international
price.
• To encourage energy trade including energy cooperation with neighbors
• To develop facilities to enable import of LNG.
• To develop coal fields thereby reducing dependency on natural gas.
• To finalize the coal policy.
• To finalize the coal extraction plan.
• To intensify exploration activities for coal and other minerals especially in the north-
western part of the country.
• To increase use of renewable energy by 5% of electricity demand by the Plan period.
• To consider gender dimension in policies, programs/projects in the energy sector.

Energy Options

• Establish Coal-based power plants using domestic and imported coal;

• Installation of Nuclear Power Plant at Rooppur;
• Finding new oil and gas fields in both offshore and onshore through extensive exploration;
• Huge investment in projects in electricity generation and transmission as well as in oil and
gas exploration through Public-Private Partnership Projects;
• Participation of local investors in the power sector;
• Import of LNG;
• Engage in energy trade including grid connectivity for power with neighbors
• Development of coal fields;
• Increase refining as well as storage capacity of liquid fuel;
• Develop renewable energy sources.

Specific Strategies

• Increase of power generation to reduce demand-supply gap through public-private

partnerships and through power imports from neighbors.

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• Energy savings through demand side management i.e. shop closing times, staggering
holiday in industries and shopping complex, replacing ‘incandescent lamp’ by CFL and
reducing ‘air conditioning’ load;
• Diversification of fuel use in electricity generation i.e. coal, liquid fuel, etc as well as
utilization of natural gas to produce fertilizer;
• Provision for dual fuel in electricity generation wherever possible;
• Mobilization of funds for electricity generation projects through private sector
participation in the form of public-private/private (national)– private (international)/private
(national/international);
• Provision for cheap imports of machineries for power plants as per the Industrial Policy
2010
• Provision for fiscal incentives for setting up new power plants as per the Industrial Policy
2010
• Provision for incentives for FDI into the power sector as per the Industrial Policy 2010
• Reform energy sector to reduce cost and improve service delivery;
• Adjust prices of electricity, gas and liquid fuel step by step to make them compatible with
international prices;
• Reducing system loss.
• Intensification of exploration activities for finding new oil, gas and coal fields;
• Import of LNG to supplement the own natural gas resources;
• Development of coal mines;
• Finalize coal policy;
• Finalize coal extraction plan;
• Installation of Nuclear fuel based Power Plant;
• Install solar panel in public and private buildings where applicable in view of harnessing
solar energy;
• Increase use of renewable energy by 5% of electricity demand by the Plan period.
• Building public awareness through publicity in electronic and print media and introduce
this issue in the Curriculum.
• Encourage women participation in the energy sector

POWER SECTOR

Shortage of Electricity

The issue of shortage of electricity is manifested in two ways. Firstly, reviewing per capita
electricity consumption and percentage of population having access to electricity in
Bangladesh, compared to other countries and secondly, determining the gap between demand
and supply of electricity in the context of the current economic situation and GDP growth.

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Per Capita Electricity Consumption

Bangladesh’s per capita electricity consumption is only 170 Kwh in FY10. Per capita
electricity consumption of electricity in Bangladesh is much lower than the BRICS countries
(Brazil, Russia, India, China, and South Africa) as well as that in Pakistan and Sri Lanka
(Table 3.2).

Table 3.2: Per Capita Electricity Consumption 2009 (Kwh)

Country Per Capita Electricity Consumption (Kwh)
Bangladesh 170*
Brazil 2023.76
India 443.54
Nepal 79.68
Pakistan 388.10
Sri Lanka 388.09
Vietnam 552.85
Indonesia 504.43
China 2443.57
Source: CIA World Factbook, 2009
*Bangladesh’s consumption data is of FY2010

Access to Electricity

Only 47 percent of the total population has access to electricity. At present, (FY10), the
mileage of transmission and distribution lines are 8,500 circuit kilometer and 2,70,000 route
kilometers respectively. Besides the urban areas, some 53,837 villages have been brought
under electricity coverage.

Demand-Supply Gap for Electricity

One of the aspects to the demand for electricity in Bangladesh is the rise in the intensity of
electricity use with the pace of economic development. In 1980, electricity demand was 30
Gigawatt (GW) per 1000 crore taka of GDP, which increased into 80 GW in 2002. Based on
current income elasticity, with an average economic growth of 6 percent the capacity for
electricity generation would need to double every six years.

In view of the low base, it is hardly surprising that the demand for electricity is increasing
rapidly with the improvement of living standard, increase of agricultural production,
development of industries as well as overall development of the country. Due to the failure in
the last few years to increase electricity generation capacity proportionately to the demand, a
serious supply shortage has emerged. Presently, the shortage is estimated between 1500-1800
Megawatts (Table 3.3). Especially, a huge shortage exists during the evening peak demand.
Additionally, due to the crisis of gas supply and lack of necessary maintenance and

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 Table 3.3: Present Power Generation Capacity in Bangladesh (FY10)
Installed Capacity 5823 MW
Generation Capacity 5271 MW
Available Generation 4000-4600 MW
Highest Generation 4606 MW
Electricity Demand (Peak Demand) 6000 MW
Access to Electricity 47%
Per capita electricity Generation 220 KWh
Per capita electricity Consumption 170 KWh
Source: Power Development Board

rehabilitation of old power plants, it is not possible to utilize the total installed capacity.
Consequently, the shortage of electricity reaches 1800 Megawatts during the peak demand
(5800 MW) of summer causing huge load-shedding.

Sources of Electricity Supply

Electricity supply in Bangladesh comes from both public and private sources. The Bangladesh
Power Development Board (BPDB), Ashuganj Power Station Company Limited (APSCL) and
Electricity Generation Company of Bangladesh (EGCB) are producing electricity in the public
sector. On the other hand, through IPP (Independent Power Producer) and through Rental
Power, electricity is produced in the private sector which is purchased by the Government at a
fixed rate. Besides that big industries produce 1200 MW electricity for their own use from
which additional 88 MW is supplied to the national grid. Data on electricity generation from
public and private sector is given in the following Table 3.4. At present nearly 61 percent of
total electricity is produced from public entities. BPDB alone accounts for 46 percent of total
electricity production.

Table 3.4: Electricity Generation Capacity by Public and Private Sectors (FY2010)
Sectors Public Private
SIPP SIPP
BPDB APSCL EGCB SIPP Rental
(BPDB) (REB)

Generation Capacity (MW) 2470 606 150 1271 99 226 449

Total (MW) 3226 2045

Source: Bangladesh Power Development Board

Use of Different Types of Energy

Natural Gas is used as primary energy in most of the existing power plants (Table 3.5). Some
89 percent of total electricity is produced from gas-based power plants. Besides gas, a small
amount of electricity is produced using diesel, furnace oil and coal. In addition, almost 2.5
percent of total electricity is produced from Karnaphuli Hydro Power Plant. Due to the
increase in the use of gas in fertilizer, industries, factories and other sectors it is not possible
to supply adequate quantity of gas for electricity generation. The shortage of gas is therefore a

133
serious constraint on the supply of electricity. The diversification of primary energy sources
away from gas to other alternatives including hydro, coal, oil, solar and nuclear energies is
essential for Bangladesh’s power and energy security.

Table 3.5: Primary Energy Use in Power Generation

Primary Energy Type Percentage of Use
Furnace Oil 3.00
Diesel 1.77
Hydro 2.49
Coal 3.52
Gas 89.22
Source: Bangladesh Power Development Board

Electricity Generation Program in the Sixth Plan Period

The power generation targets for the SFYP emerge from the targets of the Perspective Plan.
The Perspective Plan of Bangladesh (2010-2021) calls for “Power for All” by 2021. The
associated power generation targets for the SFYP are given below:
• Total Electricity Generation in the country by 2011: 7,349 MW
• Total Electricity Generation in the country by 2013: 11,959 MW
• Total Electricity Generation in the country by 2015: 15,457 MW

Strategy for Power Generation

The power and basic energy needs of Bangladesh are huge. They will require huge
investments that will well exceed the ability of the public sector. On the other hand there are
plenty of untapped resources in the domestic and foreign private sector for financing power
investments in Bangladesh. Accordingly, the main driving force for the power sector would be
the Public Private Partnership (PPP) initiative. Power sector is characterized by time
consuming nature of raising fund and requirement of large scale initial investments. To
address these concerns, the Independent Power Producer (IPP) policy was formulated in 1996.
Private sector has been drawn in to the power generation through IPP, SIPP, Rental, Quick
Rental and Joint Venture policies under the PPP framework.

Under the yearly power generation plan, Government has taken initiatives to produce 2166
MW by FY11, 1178 MW by FY12, 3176 MW by FY13, 2333 MW by FY14 and 2410 MW
by FY15.

Time Bound Power Generation Program

The time bound work plans for power generation are as follows:

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Immediate

Under the immediate plan, Quick Rental Power Plants will be installed using liquid fuels/gas
and capable to produce electricity within 4-12 months. Total 1753 MW is planned to be
generated from rental and quick rental power plants out of which 410 MW has already been
commissioned. Another 1343 MW power plants is expected to be commissioned by June,
2011 (Table 3.6).

Table 3.6: List of Projects that will be implemented by 2011

Sl. No Name of the Power Plant Capacity Ownership Type of Fuel Completion
(MW) Date
PUBLIC SECTOR

1 Shikalbaha 150 MW 150 BPDB Gas 18.08.10

2 Siddhirganj 2X120 MW Peaking 105 EGCB Gas 14.10.10

Power Plant (2nd unit)
3 Fenchuganj 90 MW CCPP 105 BPDB Gas June, 2011

4 Ashuganj 50 MW Power Plant 53 APSCL Gas April, 2011

Sub-Total (Public) 413
PRIVATE SECTOR (Rental &
Quick Rental)
1 Thakurgaon 50 MW Rental 50 Rental HSD 02.08.10
(BPDB)
2 Ghorasal 3 Years Quick Rental 45 Rental HSD 10.08.10
(BPDB)
3 Ghorasal 3 Years Quick Rental 100 Rental HSD 23.08.10
(BPDB)
4 Khulna 3 Years Quick Rental 55 Rental HSD 10.08.10
(BPDB)
5 Pagla 3 Years Quick Rental 50 Rental HSD 24.11.10
(BPDB)
6 Bheramara 110 MW Rental 110 Rental HSD 31.12.10
(BPDB)
Siddirganj Rental
7 100 Diesel -
Sponsor: Desh Energy (BPDB)
Meghnagat, Rental
8 100 FO March, 2011
Sponsor: HPGL (BPDB)
9 Noapara, Jessore, 5 Years Rental 105 Rental FO March, 2011
(BPDB)
Ghorasal Rental
10 78 Gas March, 2011
Sponsor: Max Power (BPDB)
B.Baria Rental
70 Gas -
Sponsor: Aggreko (BPDB)
11
Ashugonj Rental April,
80 Gas
Sponsor: Aggreko (BPDB) 2011
Modanganj Rental April,
12 102 FO
Sponsor: Summit Power (BPDB) 2011

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Sl. No Name of the Power Plant Capacity Ownership Type of Fuel Completion
(MW) Date
Meghnagat Rental April,
13 100 FO
Sponsor: IEL (BPDB) 2011
Khulna Rental April,
14 115 FO
Sponsor: KPCL (BPDB) 2011
Keranigonj Rental April,
15 100 FO
Sponsor: Power Pack (BPDB) 2011

Ashugonj Rental April,

16 53 Gas
Sponsor: United Ashugonj Power Ltd. (BPDB) 2011

Nowapara Rental May,

17 40 FO
Sponsor:KhanJahan Ali (BPDB) 2011
Amnura, Chapainawabgonj Rental May,
18 50 FO
Sponsor: Sinha Power (BPDB) 2011
Julda, Chittagong Rental May,
19 100 FO
Sponsor: Acorn Infra. Service Ltd (BPDB) 2011
Siddirganj Rental May,
20 100 FO
Sponsor: Dutch Bangla Power (BPDB) 2011
Katakhali,Rajshahi Rental May,
21 50 FO
Sponsor: NPSL (BPDB) 2011
Sub-Total (Private) 1753
Total (2011) 2166
Source: Bangladesh Power Development Board

Short-Term

Under the short term plan, power stations that are liquid fuel based and implementable within
12 to 24 months will be installed. Works for setting up power stations with a generation
capacity of 1106 under public sector has been started (Table 3.7).

Table 3.7: List of Projects that will be implemented by 2012

Sl. No Name of the Power Plant Capacity Ownership Type of Fuel Completion
(MW) Date
PUBLIC SECTOR

1 Siddhirganj 2X120 MW Peaking 105 EGCB Gas July, 2011

Power Plant(1st unit) EPC: BHEL
Faridpur 50 MW Peaking Power
2 54 BPDB FO October, 2011
Plant (U/C)

Gopalganj 100 MW Peaking Power

3 109 BPDB FO October, 2011
Plant (U/C)

Dohazari 100 MW Peaking Power November,

4 102 BPDB Gas/ FO
Plant (U/C) 2011
Hathazari 100 MW Peaking Power November,
5 98 BPDB Gas/ FO
Plant(U/C) 2011

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Sl. No Name of the Power Plant Capacity Ownership Type of Fuel Completion
(MW) Date

Bera 70 MW Peaking Power Plant November,

6 71 BPDB FO
(U/C) 2011
Doudkandi 50 MW Peaking Power November,
7 52 BPDB Gas/ FO
Plant (U/C) 2011
Baghabari 50 MW Peaking Power November,
8 52 BPDB FO
Plant (U/C) 2011
Gas/ December,
9 Gazipur 50MW Power Plant (U/C) 50 RPCL
FO 2011

10 Sylhet 150 MW CCPP (U/C) 150 BPDB Gas February, 2012

Katakhali 50 MW Peaking Power FO/

11 50 BPDB April, 2012
Plant Gas
Santahar 50 MW Peaking Power FO/
12 50 BPDB March, 2012
Plant Gas

13 Chandpur 150 MW CC (U/C) 163 BPDB Gas March, 2012

Sub-Total( Public) 1106

PRIVATE SECTOR
1 Solar 7 IPP (BPDB) Solar June, 2012
Gas/
2 Tangail 20 MW 20 IPP (REB) June, 2012
FO
3 Chandpur 15 MW 15 IPP (REB) FO June, 2012

4 Narayangonj 30 MW 30 IPP (REB) FO June, 2012

Sub-Total (Private) 72
Total (2012) 1178
Source: Bangladesh Power Development Board

Medium-Term

Under the medium term plan, initiatives have been taken to set up power plants with a total
generation capacity of 7919 MW that are implementable within 3 to 5 years time of which
2450 MW will be coal based (Tables 3.8-3.10).

Table 3.8: List of Projects that will be implemented by 2013

Sl. Name of the Power Plant Capacity Ownership Type of Fuel Completion
No (MW) Date
PUBLIC SECTOR
1 Raujan 20 RPCL Gas/ September, 2012
FO
2 Sirajganj 150 MW GT 150 NWPGC Gas/Oil November, 2012

3 Chapai Nababganj 100 BPDB FO November, 2012

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Sl. Name of the Power Plant Capacity Ownership Type of Fuel Completion
No (MW) Date

4 Kaptai Solar 5 BPDB Solar December, 2012

Kodda, Gazipur 150 MW Power BPDB- RPCL
5 150 FO December, 2012
Plant Powergen Ltd.
6 Ghorasal 200-300 MW Peaking 290 BPDB Gas/Diesel March, 2013

7 Khulna 150 MW GT 150 NWPGC Gas/Oil March, 2013

Sub-Total ( Public) 865

PRIVATE SECTOR
1 Shantahar Peaking Plant 50 IPP (BPDB) FO July, 2012

2 Syedpur Peaking Plant 100 IPP (BPDB) FO July, 2012

3 Jamalpur Peaking 100 IPP (BPDB) Gas/ September, 2012

FO
4 Comilla Peaking 50 IPP (BPDB) Gas/ September, 2012
FO
5 Khulna Peaking 100 IPP (BPDB) FO September, 2012

6 Dhaka 100 MW Power Plant 100 IPP (BPDB) FO September, 2012

7 Dhaka 50 MW Power Plant 50 IPP (BPDB) FO September, 2012

8 Chittagong 100 MW Power Plant 100 IPP (BPDB) FO September, 2012

9 Chittagong 50 MW Power Plant 50 IPP (BPDB) FO September, 2012

10 Rajshahi 100 MW Power Plant 100 IPP (BPDB) FO September, 2012

11 Rajshahi 50 MW Power Plant 50 IPP (BPDB) FO September, 2012

12 Khulna 100 MW Power Plant 100 IPP (BPDB) FO September, 2012

13 Barisal 50 MW Power Plant 50 IPP (BPDB) FO September, 2012

Bhola 150-225 MW CCPP (2nd
14 147 IPP Gas October, 2012
unit):SC GT Unit
15 Kaliakair Peaking Plant, Gazipur 100 IPP Gas/ November, 2012
FO
16 Wind 100 IPP (BPDB) Wind January, 2013

17 Savar Peaking Plant, Dhaka 100 IPP Gas/ March, 2013

FO
Bibiana 300-450 MW CCPP (1st
18 222 IPP Gas March, 2013
Unit): SC GT Unit
Bibiana 300-450 MW CCPP (2nd
19 222 IPP Gas April, 2013
Unit): SC GT Unit
Meghnaghat 300-450 MW CCPP Gas/
20 220 IPP April, 2013
(2nd Unit) Duel Fuel: SC GT Unit FO
Keraniganj 150-225 MW CCPP Gas/
21 100 IPP June, 2013
:SC GT Unit FO

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Sl. Name of the Power Plant Capacity Ownership Type of Fuel Completion
No (MW) Date
Madanganj 150-225 MW CCPP Gas/
22 100 IPP June, 2013
:SC GT Unit FO
Sub-Total (Private) 2311
Total (2013) 3176
Source: Bangladesh Power Development Board

Table 3.9: List of Projects that will be implemented by 2014

Sl. No Name of the Power Plant Capacity Ownership Type of Completion
(MW) Fuel Date
PUBLIC SECTOR
1 Siddirganj 450 MW CCPP 450 EGCB Gas December2013

2 Bhola 150 MW CCPP 150 BPDB Gas December 2013

3 Haripur 360 MW CCPP 360 EGCB Gas June 2014

4 Barapukuria 250-300 MW (3rd Unit) 250 BPDB Coal June 2014

5 Ashugonj 150 CCPP 150 APSCL Gas June 2014

6 Shikalbaha 150-225 MW CCPP 150 BPDB Gas/FO June 2014

Sub-Total ( Public) 1510

PRIVATE SECTOR
Bhola 150-225 MW CCPP (2nd unit):
1 ST Unit 70 IPP Gas August 2013

Bibiana 300-450 MW CCPP (1st

2 119 IPP Gas March 2014
Unit): ST Unit
Bibiana 300-450 MW CCPP (2nd
3 119 IPP Gas April 2014
Unit): ST Unit
Meghnaghat 300-450 MW CCPP (2nd
4 115 IPP Gas/FO April 2014
Unit) : ST Unit
Keraniganj 150-225 MW CCPP : ST
5 50 IPP Gas/FO June 2014
Unit
Madanganj 150-225 MW CCPP :ST
6 50 IPP Gas/FO June 2014
Unit
7 Sirajganj 300-450 MW CCPP 300 IPP Gas June 2014

Sub-Total (Private) 823

Total (2014) 2333
Source: Bangladesh Power Development Board

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 Table 3.10: List of Projects that will be implemented by 2015
Sl. No Name of the Power Plant Capacity Ownership Type of Completion
(MW)
Fuel Date

PUBLIC SECTOR

1 Bheramara 360 MW CCPP 360 NWPGC Gas December,

2014
2 Ashuganj 450 MW CCPP 450 APSCL Gas March, 2015
Sub-Total ( Public) 810
PRIVATE SECTOR

1 Chittagong 150-300 MW Coal Fired 150 IPP Imp. Coal Sept. 2014
Power Project

2 Khulna 150-300 MW Coal Fired 150 IPP Imp. Coal Sept. 2014
Power Project
Khulna South 1300 MW Coal Fired PPP (Joint
3 1300 Coal March, 2015
Power Project Vent.) / IPP

Sub-Total (Private) 1600

Total (2015) 2410
Source: Bangladesh Power Development Board

Diversification of Energy Sources

According to the plan, high dependency on gas based power generation will be reduced in the
short and medium terms and the new built plants will be designed to be dual-fuel based. In
addition, emphasis will be given to various power saving efforts so that the saved power can
be transmitted to the other thrust areas. ‘CCF (Compact Fluorescent Lamp) Distribution
Program’ is expected to save 200-350 MW electricity per month. There is also a continued
effort to produce and buy captive power from renewable and non renewable sources. So far,
contracts have been signed to purchase 88 MW of electricity from captive generation sources.
Initiatives have been taken to import electricity from the neighboring countries and export (in
future) through the sub-regional cooperation. According to a decision at the Prime Minister
level with India, works have already been started to build 400 KV transmission line and
HVDC (High Voltage Double Circuit) sub stations through Regional Grid Interconnection.
India has made the commitment to supply 500 MW by FY 2013.

The use of renewable energy has risen considerably in recent times in developed and
developing countries. In Asia, India and China have achieved considerable success in
innovating and using the technology of renewable energy. Although the initial installation cost
of renewable energy is high, it will gradually decline and will come down within the
purchasing capacity of the people. As the global reserve of fossil fuel is gradually decreasing,

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the Government has taken steps to extend and develop the use of renewable energy to ensure
the future energy security. Under this plan, targets have been set to produce electricity from
renewable sources as 5 percent of total production by the year 2015. Renewable Energy Policy
has also been adopted to attract and encourage the private sector. In addition, the Government
is going to set up Sustainable Energy Development Authority (SEDA) to expand and develop
renewable energy, to promote energy saving and energy efficiency and to create awareness
among the users of electricity.

Power Tariff

Proper pricing of primary fuel and electricity is important to conserve energy as well as to
generate resources for future investments. Proper energy pricing is also critical to attract
foreign and domestic private investment in the energy sector. Accordingly, setting of proper
prices is a key element of the Sixth Plan energy strategy. The per unit production cost of
electricity is expected to rise (50 percent-60 percent) in the upcoming 2-3 years due to the
installation of high cost liquid fuel based peaking plants. Accordingly, the Energy Regulatory
Commission may increase the tariff of power step by step. However, power tariff will likely
come down after 2014 as the implementation of gas and coal based power plants will be
completed that is expected to reduce generation costs.

Transmission and Distribution

In addition to power generation, it is very important to develop a dependable and quality

power transmission and distribution network to ensure quality and uninterrupted power supply
to the consumers. To transmit the newly produced power to the doorsteps of the consumer, it
is urgently needed to build new transmission and distribution infrastructure in addition to
renovation and preservation of old distribution networks.

For resolving the electricity crisis, government has some plans for increasing electricity
generation and at the same time has undertaken massive development plans for efficient and
uninterrupted transmission and distribution system. At present total length of 230 KV electric
line has been upgraded at 2647 circuit kilometers and for 132 KV electric lines, the length is
5818 circuit kilometer. For strengthening the electricity transmission system and for meeting
up the gradual increasing future demand for electricity, the Government has set a target of
“Providing Electricity in every house by 2021”. As part of achieving this target, the
Government has already undertaken a priority based investment plan for the year 2007-09
under which massive work plan has been chalked out for building an additional 3000
kilometer of transmission lines by 2015. In this regard, PGCB has undertaken activities for
building concerned transmission lines for supplying electricity through regional cooperation.

Up to October, 2010 about 119 lac customers have been provided with electricity connections
through 2,69,635 kilometer distribution lines and other necessary infrastructure. New projects
are being undertaken for expanding the electrification program as well as for the development
and capacity enhancement of the existing transmission and distribution system. Through these
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programs, steps have been made for building an additional 60,000 kilometer distribution lines
by 2015.

Providing electricity in rural areas is an integral feature of the distribution system. The
progress with rural electrification is shown in Table 3.11. About half of the total power is
provided by the Rural Electrification Board (REB) in the country. The REB mostly obtains its
supply from the Power Development Board as its own capacity for production is very little.
Compared to the demand, own capacity for transmission and distribution is also very limited.
While REB has been a relatively better managed power entity, further efforts are needed to
improve efficiency.

Table 3.11: Progress with Rural Electrification Up to June 2010

Indicators Progress
Total number of connections 81,02,549
Of which: households 69,85,344
Irrigation 1,77,669
Industrial 1,30,965
Commercial 7,94,896
Others 13,675
Number of villages 48,682
Distribution lines (kms) 2,22,780
Source: Rural Electrification Board

To match the time bound increases in generation capacity, the Government has also adopted a
time bound plan for constructing transmission lines and sub stations in order to supply the
generated electricity in the load centers at different voltage level. Description of major
transmission projects is provided Table 3.12.

Table 3.12: Planned Important Transmission Projects

Sl Length Expected Date
No. Transmission Line Voltage Level
KM of Completion
400 KV 168
Bibiyana-Kaliakoir 400 kV and Fenchuganj-
01. 230 KV 57 2011-2012
Bibiyana 230 kV Transmission Line (NG2)
132 KV 10
400 kV Interconnection between Bangladesh
02. 400 KV 30 2012-2013
(Bheramara) and India (Baharampur)
Bibiyana-Comilla(N) 230 kV transmission
03. 230 KV 160 2011-2012
line.
Eight new 132/33 kV S/Ss with Interconnecting
04. 132 KV 100 2012-2013
132 kV line.
Barisal-Bhola-Burhanuddin 230 kV
05. 60 2012-2013
Transmission Line 230 KV

06. Aminbazar-Maowa –Mongla 400 kV & 400 KV 192

Mongla –Khulna(S) 230 kV Transmission line 2014-2015
(NG3) 230 KV 40

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Sl Length Expected Date
No. Transmission Line Voltage Level
KM of Completion
Anowara – Meghnaghat 400 kV Transmission
07. 400 KV 260 2014-2015
line (NG4)
Raozan-Sikalbaha- Anowara & Hathazari-
08. 230 KV 60 2012-2013
Khulshi 230 kV Transmission Line
Construction of 230/132 kV Substations at
09. Shyampur, Jhenaidah (Or Jessore) , Bheramara 132 KV 32 2012-2013
and Sripur
Enhancement of Capacity of Grid Substations
10. 132 KV - 2012-2013
and Transmission Line (Phase-I)

11. Ishurdi-Rajshahi 230 kV Transmission Line. 230 KV 70 2012-2013

RPCL Mymensingh-Tangail via Bhaluka 132

12. 132 KV 100 2012-2013
kV double circuit Transmission Line
Brahmanbaria-Nabinagar-Narsingdi 132 kV
13. 132 KV 55 2011-2012
Double Circuit Pole Line
Goalpara-Bagerhat 132 kV 2nd Single Circuit
14. 132 KV 45 2011-2012
Transmission line
Electricity interconnection between Tripura and
15. 230 KV 13 2012-2013
Eastern Region of Bangladesh.
Chandraghona-Rangamati-Khagrachari 132 kV
16. 132 KV 80 2012-2013
Transmission Line
Three new 132/33 kV S/Ss with
17. Interconnecting 132 kV line 132 KV - 2012-2013

Source: Bangladesh Power Development Board

Year-wise Power Generation considering Planned Implementation

Year-wise power generation data is shown in Table 3.13. According to the plan around 11457
MW extra powers will be added to the national grid by FY 15.
Table 3.13: Year wise Power Generation during the Sixth Plan
FY Public sector (MW) Private Sector (MW) Total (MW)
2010 - 194 194
2011 413 1753 2166
2012 1106 72 1178
2013 865 2311 3176
2014 1510 823 2333
2015 810 1600 2410
Total Extra Generation 11457
Source: Bangladesh Power Development Board

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Adequacy of the Planned Power Expansion Program

The Government has formulated plans regarding production as well as supply considering the
increased growth in power demand resulting from economic development along with the
ongoing rising demand in electricity. Following the plan, although around 11457 MW extra
power will be added to the national grid by 2015, and the total power supply capacity will
reach to 15,357 MW due to the retirement of some existing old power plants. On average, the
demand for electricity is assumed to increase by 10% each year during 2010 and 2015. The
overall scenario of estimated gaps in power demand and supply are shown in Table 3.14.

Table 3.14: Power Supply-Demand Balance in the Sixth Plan

Fiscal Year 2011 2012 2013 2014 2015

Max. Demand with DSM (MW) 6765 7518 8349 9268 10283
Gen addition – Public 413 1106 865 1510 810
Sector(MW)
Gen. addition – Private 1753 72 2311 823 1600
Sector(MW)
Cross Border (MW) - - 500 - -

Capacity Retired(MW) 88 83 161 897 448

Generation Capacity(MW) 7349 8444 11959 13395 15357

Net Capacity(MW) 7055 8106 11481 12859 14743

Dependable Capacity (MW) 5432 6323 9070 10287 11794

Source: Bangladesh Power Development Board

Institutional Reforms in the Power Sector

Implementation of the power sector programs will require continued and sustained reforms.
There have been several reforms so far in Bangladesh in the power sector. During 1996–2000,
several changes were made to the institutional arrangements in the power sector. The Power
Grid Company of Bangladesh (PGCB) was established to gradually take over the operation of
the high-voltage power transmission network (230 kilovolts [kV] and 132 kV) from BPDB.
The Dhaka Electric Supply Company (DESCO) was established to take over power
distribution in parts of Dhaka from DESA. PGCB and DESCO were established on a
commercial basis as Government-owned companies under the Companies Act. Several
privately owned power generation projects were also established during this period as
independent power producers (IPPs) selling electricity to BPDB. Some distribution areas were
transferred from BPDB and DESA to PBSs.

Further institutional reforms were undertaken during 2001–2008. More distribution zones in
Dhaka were transferred to DESCO from DESA, the West Zone Power Distribution Company
(WZPDC) was established in 2001 to take over power distribution from BPDB in the western
part of the country, and the Dhaka Power Distribution Company (DPDC) was established in
144
2006 to take over the remaining operations of DESA. WZPDC and DPDC were also
established under the Companies Act as Government-owned companies. In the generation
sector, the Ashuganj Power Company Limited was created to take over the power station at
Ashuganj, and the Electricity Generation Company of Bangladesh (EGCB) and North West
Power Generation Company (NWPGC) were established to implement several power
generation plants financed by ADB and World Bank, JICA and other development partners.

Despite these reforms the power sector still faces a number of main development challenges
that will require continued further efforts. These challenges include the need for resource
mobilization, planning and implementation of least cost power expansion programs, efficiency
of billing and collection processes, and sector corporate governance. To address these
concerns the Government will undertake further actions during the Sixth Plan with the
following objectives:
• establishing transparent corporate governance and a regulatory regime to provide
performance-based incentives to sector entities;
• improving the commercial performance of the sector to improve its cost recovery and
financial viability. This requires fundamental corporate and institutional reforms;
• attracting investments from the private sector to increase the generation capacity of the
country and maintain an adequate and reliable power supply;
• encouraging development partners to provide concessionary financing for investments in
urgently needed power transmission and distribution projects;
• changing the prevailing culture of electricity pilferage and nonpayment of electricity bills
in collusion with utility employees;
• establishing the performance-driven and accountable corporate culture in the newly
established companies. This requires a drastic change from the existing practices and
culture of the power sector;
• maintaining the reform momentum with further unbundling of power generation and
distribution operations of BPDB and the restructuring of the operations of DESA;
• addressing the power shortages as a matter of urgency through a combination of
investments from the private sector and the public sector;
• commercializing the generation operations of BPDB, which have not been restructured.
BPDB continues to operate in a suboptimal manner, with low plant factors and thermal
efficiencies. The existing generation assets need to be rehabilitated to improve their
efficiency and availability. The generation companies created out of BPDB need to be
made fully operational with the transfer of assets and the signing of PPAs with BPDB;
• further improving the power distribution operations of WZPDC, BPDB, and DPDC.
• addressing the financial insolvency of BPDB and the former DESA, which have large
unpaid Government debts and irrecoverable accounts receivable. To set the power sector’s
financials on a sound basis, a major financial restructuring is required including the write-
off of BPDB’s liabilities to the Government; and

145
• addressing overall financial non-viability of the sector despite improvements in control
over losses and bill collection. Significant increases in retail power tariffs are needed to
ensure that all sector entities achieve financial viability.
PRIMARY ENERGY SECTOR
Shortage of power is a reflection of an even bigger challenge in terms of limited supply of
primary energy. Bangladesh showed early promise in terms of having adequate sources of
primary energy from natural gas and coal and to a limited extent from hydro-power. The
optimism on gas extended to an extent that there was even a talk of exporting gas. Lack of
adequate planning and investment in primary energy for a large number of years has caused a
serious shortage of primary energy in Bangladesh. As a result, energy shortage has emerged
as a binding constraint on growth in Bangladesh.
In recognition of this energy crisis, in addition to emphasis on power, the Government is also
developing a comprehensive primary sector strategy and associated programs and policies.
Achieving energy security is a key development objective of Vision 2021 and specific actions
will be taken to move towards this objective during the Sixth Plan.
Sources of Energy Supply
At present, Bangladesh has energy supply from both renewable and nonrenewable sources, 38
percent of which comes from biomass (Figure 3.1). However, 75 percent of commercial
energy is provided from natural gas. Currently, gas production per day is 2000 MMCF.
Imported oil accounts for the major share of the rest of the energy requirement. Bangladesh’s
annual requirement of energy is approximately 36 million metric ton. Apart from natural gas
and crude oil, coal is mainly used as fuel in the brick-fields and at the Barapukuria Thermal
Power Plant. Moreover, power is also being generated by using solar home system in off grid
areas. In addition there are some poultry and dairy farms in which bio-gas plants are being set
up and with this energy, power can be generated and is also used for cooking. Steps have been
taken to generate electricity by Bio-Mass Gasification Method in the country. We also have a
bright potential to produce electricity from wind and mini-hydro or wave-energy. Recently,
solar power based irrigation pump has been used in a number of areas of the country.
Figure 3.1: Sources of Energy Annual Energy Supply 2009

Source: Energy and Mineral Resources Division

146
Non-renewable energy
The principal sources of commercially used non-renewable energy include:

• Natural gas
• Oil from minerals and other sources
• Coal and coal like substance
• Compressed natural gas (CNG)
• Liquefied Natural Gas (LNG)
Natural Gas
The major source of our primary energy is natural gas. As many as 23 gas fields have been
discovered since 1955 when the first gas field was found in Sylhet. Gas has served Bangladesh
well, but galloping growth in demand combined with inadequate investment in gas exploration
has led to a serious shortage of gas supply.
Reserve and Production Levels of Natural Gas

The existing natural gas is mainly used in electricity, fertilizer, industry, transport and housing
sectors. The reserve and production situation of gas up to 2010 are as follows:

• Total number of gas fields- 23

• Number of gas fields which are in production- 17 (number of wells-79)
• Total reserve of extractable gas (proven and probable)- 20.605 TCF (Trillion Cubic Feet)
• Total consumption of gas up to June 2010- 9.077 TCF
• Total reserve remaining(2P) UPTO June 2010- 11 .528TCF
• Daily gas exploration- about 2000 MMCF (Million Cubic Feet)
• Production by Petrobangla- 960 MMCF
• Production by International Oil Companies- 1040 MMCF
• Daily demand of gas- 2500+ MMCF
• Daily shortage of gas supply- 500+ MMCF
• Gas production increased from January 2009 to December 2010- 284 MMCFD

Consumption of Natural Gas

The existing natural gas is mainly used in electricity, fertilizer, industry, transport and housing
sectors (Figure 3.2). From Figure 3.2 it is evident that more than half of the gas is used for
electricity generation, yet the demand for gas has grown much faster from industries and
households (Figure 3.3)

Figure 3.2: Current Sectoral use of Gas in percent (2009)

147
 Source: Energy and Mineral Resources Division

Figure 3.3: Sector wise annual average growth rate of use of gas, 1991-2010

Source: Energy and Mineral Resources Division

Demand and Supply of Natural Gas during the Sixth Plan

The demand for natural gas during the Sixth Plan is shown in Table 3.15. This is based on the
projected expansion in power generation during the Plan period and the average rate of
consumption in the past 17 years for other sectors. Under these projections, the demand for
Table 3.15: Sector-specific Projected Demand for Gas during the Sixth Plan
Sector 2010-11 2011-12 2012-13 2013-14 20014-15
Power 300.5 324.5 350.5 378.5 415.8
Captive Power 142.6 164 188.6 216.9 238.6
Fertilizer 94 94 94 94 94
Industry 160.7 184.8 214.4 246.5 271.1
Household 99.5 111.4 124.8 139.8 153.8
CNG 44.7 51.4 56.5 113 124.3
Others 30.8 31.9 32.7 33.7 37.4
Total 872.8 962 1061.5 1222.4 1335
Source: Energy and Mineral Resources Division

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gas will expand from 783 billion cubic feet (cft) in FY2009/10 to 1335 billion cft by the end of
the plan period. Regarding supply, at present only 730 BCF (Billion Cubic Feet) gas is being
supplied. As a result, there is already a shortage of gas. Unless steps are taken to extract more
gas through more intense use of existing fields as well as new fields, a serious shortage of gas
will emerge in the coming years.

Challenges Faced by the Gas Sector

The main challenges facing the natural gas sector are as follows:
• maintaining the production level of existing fields operated by national gas companies;
• undertaking exploration in new areas to expand gas reserves;
• attracting investments and technical expertise from IOCs under PSAs for exploration and
development of new gas fields;
• establishing a national gas transmission network by connecting the main gas fields with the
main demand centers in the greater Dhaka and Chittagong area;
• improving the technical and commercial performance of gas distribution companies to
reduce distribution losses;
• diversifying the primary energy supply from natural gas to other forms of energy, given
the high dependence of the economy on natural gas and limited proven gas reserves in the
country and difficulties in increasing production capacity in the short and medium terms;
• arresting the declining production in gas fields operated by Petrobangla subsidiaries
through timely maintenance of existing fields, drilling of additional wells, and appraisal of
existing gas fields to ascertain the possibilities for additional gas production;
• adjusting end user gas prices since the prevailing gas pricing structure and high level of
Government taxes do not provide adequate margins for the national gas companies to
undertake the requisite investments in developing new fields;
• attracting new investments from IOCs for exploring new areas, especially the offshore
blocks where the national oil companies do not have any prior experience.
• improving energy efficiency, including the efficiency of using scarce gas resource. The
prevailing practice of setting gas prices below international prices is encouraging
inefficient use of gas and its use for applications for which more economical alternatives
are available;
• discouraging the use of gas for captive power generation by industries using suboptimum
and inefficient technologies. However, this can be done only after ensuring a reliable (in
terms of both continuity and quality) supply of grid-based power.

Sixth Five Year Action Plan for the Development of Natural Gas Sector

Based on the identification of major challenges, the salient features of the planned policy
strategy for the gas sector include the following.

Strategy and Policies

• Adoption of time based action plan for discovering new gas fields
• Make BAPEX more effective in exploring oil and gas
• Speedy processing of tenders and signing agreements for offshore blocks

149
• Approval for importing liquefied natural gas by private sector as an alternative to natural
gas and building necessary infrastructure
• Reduce the supply of natural gas to those sectors where alternative energy can be used and
encourage them for using alternative energy
• Finalizing National Energy Policy and Coal policy to create opportunity for using energy
from multiple sources
• Increasing financial capacity of BAPEX by forming Gas Development Fund
• Ensuring proper pricing of gas to conserve energy and improve the financial operations of
the gas sector
• Maximizing domestic production of diesel, kerosene, motor spirit (MS) and HOBC
through fractionation of condensate in the country.
Action Plan for Exploration and Increased Generation of Natural Gas
The Government has already taken a number of time-bound steps to explore, discover and
improve new gas field and also for gas extraction and supply. The salient features of
implementable and ongoing programs under short, medium and long-term plans are as
follows:
Program completed by 2010
In order to increase gas, exploration actions have been taken that will bring about an additional
158 million cubic feet daily (MMCFD) gas for the national grid by December 2010. Under the
short-term progrmame, gas production has already increased by 114 million cubic feet daily
(MMCFD).The gas field wise detailed description is given in Table 3.16. In summary, actions
have been taken to increase 78 MMCFD by rehabilitation (work over) of five wells; 35
MMCFD by digging two evaluation/development wells at Shalda River and Fenchuganj gas
fields; 15 MMCFD from one exploration well at Sundalpur in Noakhali District; and 30
MMCFD from exploration/ development well in southern part of Sangu gas field.
Table 3.16: Short Term Plan completed by December 2010
Under Implementation by National Gas Companies
Sl. No. Program Time Schedule Increase in
Production
Start Completion (MMCFD) Agency Activity
Under Implementation by National Gas Companies
1 Sylhet 7 December 09 January 10 8 SGFL Workover
2 Meghna 1 April 10 June 10 15 Workover
3 Habiganj 11 April 10 June 10 20 Workover
4 Titas 12 May 10 June 10 20 BGFCL Workover
Sub Total 63
Workover
5.Other Sources 51 BAPEX Exploration
Appraisal Well
Appraisal Well
Total 114
Source: Energy and Mineral Resources Division

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Program to be completed by June 2013
The June 2013 program consists of additional exploration as well as LNG imports. The details
are shown in Table 3.17. These actions will generate additional 1920 MMCFD to the national
grid by 2013.
Table 3.17: Medium Term Plan to be completed by June 2013
Sl. Planned increase in
Program Completion Agency Activity Remarks
No. Production(MMCFD)

A) Under Implementation by National Gas Companies ( by 2011)

1. Kapashia 1 June11 20 Exploration
2. Shrikail 2 Dec 11 20 Exploration
3. Mobarakpur 1 Dec 11 15 BAPEX Exploration
4. Shalda 4 June 12 15 Development
5. Fenchuganj 4 20 well
Development
June 12
6. Titas 17 25 well
Development
Oct 11
BGFCL well
7. Titas 18 March 12 25 Development
8. Semutang 1, 5 20 well
Workover
June 12
9. Sundalpur June 12 15
10. Salda 3 June 12 15 BAPEX Exploration
11. Sunetra 1 Jan 12 25
12. Shabazpur 3, 4 March 12 50 Development
13. Bakhrabad 9 Aug 2012 20 BGFCL Development
14. Titas 19, 20, 21, 22 100 well
Excavation
June 12 BGFCL
15. 21, 22
Rashidpur 8 20 of
Excavation
June 12
SGFCL of
16. Rashidpur 5 June 12 15 Workover
Total (A) 420
B) LNG Import
1 LNG Dec 2012 500
Total (B) 500
C) Under Implementation by International Gas Companies
9 Well
1 Moulavibazar 540 Development Subject to
Dec 13 Chevron Wells Evaluation
Excavation of
2 Jalalabad 100 Exploration
Dec 13 Chevron 3 Well Dev Well

3 Bibiyana 360 Development

Dec 13 Chevron 6 well
Total (C) 1000
Grand Total (A+B+C) 1920
Source: Energy and Mineral Resources Division

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National Gas Company
Actions have been taken to supply 285 MMCF gas daily to the national grid by
exploration/development of the following gas fields: Kapashia 1 (20 MMCFD); Shrikial 2 (20
MMCFD); Mobarakpur 1 (15 MMCFD); Shalda 4 (15MMCFD); Fenchuganj 4 (20 MMCFD);
Titas 17 (25 MMCFD) and Titas 18 (25 MMCFD), Semutang 1, 5 (20 MMCFD); Sundalpur
(15 MMCFD); Salda 3 (15MMCFD); Sunetra 1 (25MMCFD); Shahbazpur 3, 4 (50MMCFD).
Moreover, BAPEX has taken a programme to identify the site for digging new development
wells by data collection, processing and analysis by 2-D seismic survey of 3100 line
kilometer.

International Oil Company

Target has been set to supply 1000 MMCFD of gas daily to the national grid by Chevron gas
field under PSC.
Program to be completed by 2015
During this period by drilling and development of exploratory wells an additional gas
production of 180 MMCFD by local companies and 500 MMCFD by international oil
companies (total 680 MMCFD) will be added to the national grid by 2015 (Table 3.18).
National Gas Company
Steps have been taken to supply 180 MMCFD gas to the national grid through drilling of 9
development wells of which 5 are in Sylhet, Koilashtila and Rashidpur gas fields, and 4 in
Titas gas field.
International Oil Company
Target has been set to supply 500 MMCF gas to the national grid by IOCs under Product
Sharing Contracts (PSC).

Table 3.18: Program to be completed by 2015

Increase in
Sl.
Program Completion Production Agency Activity Remarks
No.
(MMCFD)
A) Under Implementation by National Gas Companies
Titas Well 23, To be completed Appraisal
1 100
24, 25 and 26 by 2015 BGFCL well
Excavation of To be completed 80 SGFL Appraisal
5 Wells in Sylhet, by 2015 well
2
Koilashtila and
Rashidpur
Total (A) 180
B) Under Implementation by International Gas Companies
To be completed
1 Moulavibazar by 2015 Chevron
500 Bangladesh
To be completed
2 Bibiana Ltd.
by 2015

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 To be completed
3 Jalalabad by 2015
Offshore To be completed
4 Building Round by 2015
2008
Total (B) 500

Grand Total (A+B) 680

Source: Energy and Mineral Resources Division
Steps to be taken for Increasing the Supply of Natural Gas
In order to realize the above supply initiatives for natural gas, a number of policy actions will
be implemented. These include:
• Ensure adequate provision of funds.
• Make arrangements for speedy bidding procedures for off-shore blocks.
• Purchase higher quality machineries using advanced technology and build up efficient
manpower to strengthen BAPEX.
• Ensure the drilling and development of wells as per plan through streamline work
procedures and effective monitoring of the international oil companies.
• Secure speedy resolution of the demarcation of maritime boundary issues with India and
Myanmar for the blocks located at the deep sea areas.
Liquefied Natural Gas
The shortage of gas supply can be mitigated through importing LNG. Following actions will
be taken:
• Providing opportunities to the private sector to import LNG.
• Along with other necessary facilities, at least the infrastructure of two terminals of 500
MMCFD will be built to receive the imported liquid gas from the ship.
• Involve the private sector in the planning of import LNG and establishment of the
terminals.
Coal
The diversification of sources of energy i.e reliance on coal will benefit tremendously from
reliance on coal. High quality bituminous coal mines have been discovered at Khalashpur of
Rangpur, at Barapukuria, Fhulbaria, Dighipara of Dinajpur and at Jamalganj of Bogra in the
north-western zone of the country. The total reserve of these 5 coal mines is around 2355
million MT (Table 3.19) and the heat generation capacity is equivalent to 37 trillion cft of gas
approximately. With further exploration initiatives, more coal mines may be discovered on
other parts of Bangladesh. Among the 5 coal mines, Barapukuria coal mine in Dinajpur has
started commercial production from September, 2005 with the annual production of 10 lac
tonnes of coal.

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 Table 3.19: Coal Reserves of Five Coal Mines
Exploration Year and Depth Magnitude of Reserve
Sl. No. location (Meter) mine (Million Ton)
area (Sq. km.)
1 Barapukuria, Dinajpur (1985-87) 118-509 6.88 390
2 Khalashpur , Rangpur (1989-90) 257-483 12 685
3 Fhulbaria, Dinajpur (1997) 150-240 30 572
4 Jamalganj, Bogra (1962) 640-1158 16 1053
5 Dighipara, Dinajpur(1994-95) 328-407 Not Available 600

Total 3300
Source: Energy and Mineral Resources Division

Actions for Strengthening Coal Production

Although there are enough reserves of coal in the country, exploitation is constrained by
concerns over extraction methods, the technological security and the possible adverse social
consequences. The Government is taking steps to resolve the problems in the coal sector with
a view to making it a major source of primary energy supply in the future. The steps being
taken include:
• Finalization of coal policy.
• Formation of coal extraction plan consistent with social and environmental safeguards.
• Building up mass awareness regarding the extraction procedure of coal especially for the
open extraction method.

Nuclear Energy

Bangladesh government in principle agreed in the construction of a nuclear power plant (NPP)
consisting of two reactor power units with a capacity 1000 MW each (total 2000 MW) at
Rooppur Nuclear Power Project (RNPP) Site in order to curb the existing energy crisis. For
implementation of the RNPP, the government of Bangladesh and the Russian Federation has
signed a Framework Agreement. Under the provision of the Framework Agreement, both
governments have agreed to sign an inter-government agreement (IGA) on Cooperation
Concerning the Construction of a Nuclear Power Plant on the territory of the People’s
Republic of Bangladesh. According to the IGA, both countries shall cooperate in the
construction of nuclear power Units 1 & 2 of “Rooppur” NPP in the agreed scope. Essential
preparatory activities such as finalizing site safety report, preparation of project document,
determining project execution model and financing plan, safety analysis of the reactor,
strengthening of regulatory activities, etc have been started. It is desirable that the construction
phase activities for the first reactor would be started from the year of 2012. It is considered
that the construction of the first unit of 1000 MW(e) and the second unit of another 1000
MW(e) will be completed by 2017 and 2018, respectively.

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Implementation of nuclear power technology will need to tackle a number of important
challenges. These include:
• Necessary fund provision.
• Ensure safety of the population and environment.
• Develop trained and efficient manpower in order to administer and maintain the nuclear
plant.
• Build awareness among general people regarding the associated risks and safeguards of
nuclear energy production.

RENEWABLE ENERGY

In Bangladesh renewable energy such as biomass, solar power and wind power are being used.
Especially in areas which do not have gas supply, household use of biomass for cooking and
solar power and wind for drying of different grains as well as clothes are known to all.
However, Bangladesh is lagging far behind in the scientific use of such energy. The use of
renewable energy has become popular worldwide in view of depleting reserve of non-
renewable fossil fuel. Furthermore, renewable energy is environment-friendly. At present, the
different categories of renewable energy that are being used in limited ways in our country are
as follows:
• Hydro-electricity
• Solar power generation using solar rays
• Wind-mill power generation using wind power
• Generation of electricity from municipal refuse
• Production of bio-gas using waste
• Electricity produced by Biomass Gasification Method using wood, rice husk, etc.

In order to reduce the reliance on natural gas and import-dependent oil the Government has
taken a number of steps to spread and develop renewable energy. Benefits to use renewable
energy are as follows:
• Supply of raw materials for power generation is potentially infinite
• Operational cost is low although initial investment is comparatively high
• Technology is easy and portable
• People living separately in places away from the main land can have access to power and
energy facilities
• Future energy security is ensured

In recognition of the vast potential benefits of renewable energy, the Government has taken a
number of actions on a priority basis. These include:

• Formation of Sustainable Energy Development Authority

• Preparation of Energy Conservation Act
• Expansion and development of renewable energy

155
• Implementation of cost effective energy procedure
• Ensuring of efficient use of energy
• Standardization of energy saving electronic machineries
• Setting up 14 thousand solar home system by REB
• Setting up a solar panel having capacity of 21.2 kilowatt for Prime Minister’s Office
• Installation of around 5.30 lac solar home system in rural areas with the aid of IDCOL
(Infrastructure Development Company Limited) through NGOs
• Power generation by setting up wind-mill run power plants in coastal region of Kutubdia
and Feni
• Establishing of a wind-mill run power plant of 100 MW(off-shore) capacity in Anowara of
Chittagong and 4 solar power plants of 10-15 MW capacity (connected to grid)
• Actions are underway to implement a pilot IPP project to produce power from waste
• Setting up several solar panel factories by IDCOL
• The use of solar panel in all large public buildings to be made mandatory within 3 years
• Solar panel imports made duty-free

DEVELOPMENT RESOURCE ALLOCATION IN POWER AND PRIMARY

ENERGY SECTOR DURING THE SIXTH PLAN

The energy sector, especially power, faces substantial development challenges. In recognition
of the fact that energy has become a binding constraint on the acceleration of GDP growth, the
Government places highest priority to allocating resources to this sector. Nevertheless, the
investment needs are just too large to be met through the Government’s own resources.
Accordingly, a key financing strategy is to mobilize as much financing through PPP
arrangements as possible. The Government is also attracting direct foreign investment and
domestic enterprises to invest in the energy sector. The policy framework for private
participation is already in place. Further efforts will be made to strengthen this policy as
needed in order to ensure adequate flow of private investment in energy sector.

Regarding public funding, in addition to budgetary allocations, emphasis will be given to

improving efficiency and cost recovery of concerned public enterprises and autonomous
bodies. The rising world prices of fuel and the increasing reliance on rental power plants will
have an adverse effect on the financial health of energy sector entities. Efforts will be made to
help them absorb these costs through price adjustments and efficiency improvements.

Against the backdrop of this financing strategy, the Sixth Plan allocation of development
resources in power and primary energy sector during the Sixth Five Year Plan, both in current
and constant prices, are reported in Table 3.20.

156
 Table 3.20: Development Resource Allocation for Energy in the Sixth Plan
(Crore taka; current price)
Ministry FY11 FY12 FY13 FY14 FY15
Power Division 4995 7069 8557 10898 13458
Energy and Mineral Resources Divn. 1080 1513 1717 2012 2289
Total 6075 8582 10274 12910 15747

Table 3.21: Development Resource Allocation for Energy in the Sixth Plan
(Crore taka; FY11 price)
Ministry FY11 FY12 FY13 FY14 FY15
Power Division 4995 6576 7439 8896 10364
Energy and Mineral Resources Division 1080 1407 1493 1643 1763
Total 6075 7983 8932 10539 12127

Securing the higher economic growth targets of the Sixth Plan and Vision 2021 will critically
depend upon the ability to address the energy constraint facing Bangladesh. The Government
has embarked upon a comprehensive energy sector development strategy that seeks to
substantially increase power and other energy supplies and improve sectoral efficiency during
the Sixth Plan and beyond. The underlying strategy entails substantial new investments based
on public-private partnerships, diversifying the sources of energy away from excessive
reliance on gas to coal, hydro, solar and other renewable sources, engaging in energy trading
activities with neighbors, especially India, developing primary energy sources including gas
and coal, conserving energy, and better use of installed capacities. The associated policy and
institutional framework involves proper pricing of energy, sound legal and regulatory
framework for private participation, enabling environment for energy trade and reforms of
energy institutions. Many of the required actions have already been initiated; the remaining
actions will be taken during the Sixth Plan period.

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 CHAPTER 4: EFFICIENT TRANSPORT
SERVICES TO REDUCE COST AND IMPROVE
WELFARE
BACKGROUND AND DEVELOPMENT CONTEXT

An adequate and efficient transport system is a pre-requisite for initiating and sustaining
economic development. Transport efficiency is the key to the expansion and integration of
markets – sub-national, national and international. It also helps the generation of economies of
scale, increased competition, reduced cost, systematic urbanization, export-led faster growth and
a larger share of international trade. An efficient transport system is a key element of trade
logistics cost and as such is a major determinant of export competitiveness. There is international
evidence that often transport costs might even become a more important barrier to international
trade than tariff barriers. Estimates of trade logistic costs for Bangladesh suggest that there is
substantial room for improvement. Efficient transport is also critical to helping physical mobility
of citizens. Efficient transport reduces the commuting time of citizens thereby contributing to
their welfare. Securing improvement in transport system is therefore a major strategic objective
to accelerate growth during the Sixth Plan.

The transport system of Bangladesh consists of roads, railways, inland waterways, sea ports,
maritime shipping and civil aviation catering for both domestic and international traffic. Presently
there are about 21,040 km of paved roads; 2,835.04 route-kilometers of railways (BG-659.33 km,
MG -1,800.88 km and DG-374.83); 3,800 km of perennial waterways which increases to 6,000
km during the monsoon, 2 seaports and 2 international airports (i.e. Dhaka and Chittagong) and 8
domestic airports.

Development and maintenance of transport infrastructure in Bangladesh is essentially the

responsibilities of the public sector as are the provision of railways transportation services and
most air transport. The public sector is also involved in transport operations in road, inland water
transport (IWT) and ocean shipping alongside the private sector. In the road transport and IWT
sub-sectors, the private sector is dominant. In ocean shipping, however, public sector still
predominates, although the private sector has considerably increased its role in recent years.
Recently private sector has also been involved in domestic air transport and railway on a very
limited scale.

The vision of the national transport authorities is to establish a safe, cheaper, modern and
technologically dependable, environmental friendly inter-modal transport system with a view to
reducing the financial cost and time for both commercial traffic and for citizens. Geo-
strategically, Bangladesh’s location is very significant and sensitive in terms of Pan-Asian
continental surface connectivity. It has the potential to be the local connecting point between
SAARC and BIMSTEC countries. The issues like intra- and inter-country connectivity, export
158
and growth center facilitating infrastructure, Asian Highway, Trans Asian Railway Network etc.
are the important emerging issues of its surface transport strategy. Transport infrastructure
development contributes to the expansion of markets, augmentation of regional balance, and
creation of investment opportunities all of which are conducive to economic growth and poverty
reduction.

Past Performance and Constraints in the Transport Sector

Bangladesh witnessed rapid growth of transport sector since independence. The overall annual
growth rate was nearly 8.2 percent for freight transport and 8.4 percent for passenger transport.
Even then the transport intensity of Bangladesh is considerably lower than that of many
comparable developing countries. The relative roles of transport modes are evolving with road
transport expanding at the expense of railways and inland water transport because of its inherent
technical and cost advantages.

Despite the observed growth of transport sector, the overall performance of the transport sector
has been generally weak and is now considered a major constraint to the expansion of exports and
economic growth. Estimates of trade logistic performance show that Bangladesh performs at the
lower end as compared with most of its competitors. One important factor underlying this
weaker performance is high transport costs. Urban transport system, especially in the capital city
Dhaka, has become outdated and inefficient owing to both a lack of adequate infrastructure but
also due to weak management.
The development of surface transport system in Bangladesh is constrained by three distinct sets
of factors. These are:
(i) physical (e.g., difficult terrain, periodic flooding, poor soil condition, siltation and erosion of
rivers, inherited management weaknesses of BR etc.);
(ii) low investments and maintenance, and
(iii) inadequate institutional framework (involving four ministries, nine transport sector SOEs and
lack of co-ordination and autonomy of transport SOEs).
Public sector involvement in the transport system of Bangladesh consists of ownership and
operation of nine state-owned enterprises (SOEs). Except for the two sea ports, the SOEs have
poor financial performance. The poor financial performance of the SOEs and their weak capital
structure created a huge financial liability on the government, estimated at around Tk. 200 crore
annually. However, the situation has been improving in recent years. To address the problem, the
government has been pursuing the two-pronged policy of privatization and restructuring of public
sector transport SOEs for achieving improved administrative, management and operational
performances.

The government recognizes the importance of substantially upgrading the transport infrastructure
while also improving transport services. In recognition of this, it has been giving priority to
transport in budget allocations, improving the performance of public transport entities through

159
policy and institutional reforms, and encouraging the private sector in both building infrastructure
through PPP and in providing transport services. The Sixth Plan will continue this trend.

TRANSPORT SECTOR OBJECTIVES, STRATEGIES, AND POLICIES IN THE

SIXTH PLAN

Objectives

To achieve an average GDP growth rate of 7 percent per annum the transport sector growth rate is
projected to increase by 7.5 percent per annum. Keeping in view the increased volume of
domestic traffic as well as the future traffic from the Asian Highway and Trans-Asian Railway,
the main objective of the Sixth Five Year Plan will be to develop a balanced and integrated
transport network through adoption of strategies/programs.

Strategies

For transport network development strategy, an optimal mix of “market integration approach”
and “poles of development approach” will be adopted. Operational significance of this mixed
strategy is that development efforts will be concentrated on five main corridors: Dhaka-
Chittagong, Dhaka-Northwest, Dhaka-Khulna, Dhaka-Sylhet and Khulna-Northwest with special
emphasis on Dhaka-Chittagong, Dhaka-Northwest and Khulna-Northwest arterial corridors.
Besides these, the road linkages passing through Khulna, Barisal, Bhola, Lakshmipur and
Chittagong will be improved. The development strategy is to be reinforced by the rural transport
development strategy. Rural transport system will be developed by integrating inland water
transport sub-sector with the existing road transport system and within the road transport sub-
sector by adding off-road internal access dimension. Urban transport sector dimension will be
added to this network development strategy. Additionally, Bangladesh will actively pursue an
open-door policy to international traffic by taking advantage of its strategic location in terms of
large access to sea and being the gateway between Eastern and Southern parts of Asia.

The main elements of the overall transport strategy for the Sixth Plan are as follows:

i. The two sea ports will be further developed and linked to Dhaka.
ii. Railway linkages will be established between the east and south west zones of the country.
Expansion of line capacity by double tracking of major rail corridors,
rehabilitate/upgrade & replace old aged railway track, bridges, signalling and other
assets, acquiring modern rolling stocks to provide speedy, environment friendly and
cost effective transport facilities to the national, regional and international traffic will
be made.
iii. The development strategy for the rural transport will be reoriented for efficient external
access through optimal integration of road and inland water transport and off-road internal
accesses.
iv. Efforts will be made to develop some of the critical inter-modal transport network that
allows connectivity of neighboring countries to the two sea ports of Bangladesh.
160
 v. Efforts will also be made to fully participate in global and regional transport connectivity
initiatives that help develop the land route links between South Asia and East Asia
through Bangladesh.
vi. Improvement in resource mobilization will be made through introduction of user charges
and fees by the agencies in all areas of transport and for all use of transport network.
vii. Provision of required incentive packages for the private sector for greater participation will
be ensured, not only in transport services, but also for infrastructure building.
viii. Identification and implementation of preventive, emergency and post-disaster mitigation
measures will be made.
ix. Transport development strategy framework will be broadened by incorporating the vital
urban transport dimension starting with improvement in transport services of greater
Dhaka city.
x. Assurance of deficit-free operation of Bangladesh Railway as envisaged in Railway
Recovery Program will be fulfilled.
xi. Improvement of sub-standard ferry operation on major road networks will be made.
Introduction of necessary institutional reforms to address the operational constraints of the
port transit system with special reference to containers and privatization measures for
port transit system will be made.
xii. Adequate care will be taken while developing transport network and service so that these do
not cause environmental pollution and affect ecological balance.
xiii. Attention will be given to improve transport safety standards including specific attention to
women safety in all means of transportation with a view to substantially reducing the
incidence of accidents; and
xiv. Provision of duty-free or import of engines and spares at low duty for mechanization of
country boat will be made.

ROADS AND HIGHWAYS DEPARTMENT

Review of Past Developments

The Roads and Highways Department (RHD) is a major public sector agency directly
responsible for planning, design, construction, improvement and maintenance of primary and
secondary road network in the country, which include National and Regional Highways and
Zila Roads. RHD is also responsible for the operation, and maintenance of an extensive ferry
system in the country. Gradual replacement of ferry system with bridges is another broad
dimension of RHD’s regular activities.

Growth of Traffic

In recent years, there has been a considerable growth of traffic on roads in Bangladesh.
Bangladesh Road Master Plan 2007 estimated that the growth of both freight and passenger
transport would be around 6.4% per year for the period of 2010-15 and 6% over the Master
Plan period i.e. 2005-25. Bangladesh Road Master Plan Study carried out in 1990-91
estimated that the overall growth of both freight and passenger transport would be 5-6% a
161
year. After examination of national economic parameters and historical traffic growth,
Bangladesh Road Materials and Standards Study (BRMSS) carried out in 1990-92 estimated
that annual average growth rates of traffic on roads would be 7.7% for freight traffic and 8.3%
for passenger traffic for the period 1992-2000.

Role of Road Transport

Road transport network is the most important means of communication in Bangladesh as

elsewhere in the world. In fact, road transport in our country has emerged as the most
dominant mode in surface transportation carrying in recent years over 70% of passenger and
over 60% of freight traffic respectively. It transpires from the following table that the role of
road transport in carriage of both passenger and freight traffic over the years from 1974-75 to
1996-97 had been increasing almost consistently.

Table 4.1: Mechanized Surface Transport Output and the Share of Road Transport in
Carriage of passenger and Freight Traffic in Selected Years
Passenger Transport Freight Transport
Year Total Output in Share of Road Total Output in Share of Road
Billion km Transport in Billion Ton-km Transport in
Per cent Per cent
1974-75 17 54 2.6 35
1984-85 35 64 4.8 48
1988-89 57 68 6.3 59
1992-93 66 75 9.0 61
1996-97 72 73 10.0 63
2004-05 110 73 18.6 72
Source: Bangladesh Transport Sector Study (BTSS) 1996-97

Development of the Road Network

The history of road network development in Bangladesh is of recent past. While the paved
road network was only 600 km in 1947, it had grown to about 4300 km in 1981. The real
development of road network in Bangladesh, both in quantitative and qualitative terms, started
in the early nineteen eighties and the pace of this development gradually accelerated in later
periods (Table 4.2). The Government has been following the strategy of road network
development activities giving priority to 5 important corridors as mentioned above. The major
share of funds allocated to the transport sector including foreign assistances in the various
plans has been invested to develop the strategic road corridors. A large portion of the
important highways is reconstructed through removal of earlier structures, undertaking
required compaction of original sub-grade, application of higher design standard, widening of

162
 Table 4.2: Progress with Paved Road Development under RHD, 1947-2009
Year Paved Road under Annual Rate of Total Road under Annual Rate of
RHD (km) Growth (%) RHD (km) Growth (%)
1947 600 -
1971 3600 7.75 -
1981 4300 1.79 -
1990 7914 7.01 13629 4.55
2000 16273 7.47 20799 4.31
2005 16500 0.28 21571 0.73
2009 18209 2.5 21040 -0.62
Source: Ministry of Communications

pavement and shoulder widths, straightening of detour alignment and use of relatively better
quality materials. A considerable portion of the arterial road network is upgraded through
implementation of various road improvement and overlay programs, thereby increasing the
pavement strength significantly and reducing surface roughness substantially (Table 4.3).
Many Zila roads are also constructed. All major river gaps are being bridged and important
ferries are modernized in recent years. Increasingly higher emphasis is being accorded to the
major maintenance activities like reconstruction, overlay and other improvement works on the
existing network.

Table 4.3: Road Network under RHD by Category and Status of Construction
(Kilometers)
Sl. Paved Road Partly paved
No. Category of Road or unpaved Total
road
1. National Highways 3445 47 3492
2. Regional Highways 4105 163 4268
3. Zila Road 10659 2621 13280
Total : 18209 2831 21040
Source: Maintenance and Rehabilitation Needs Report of 2010-11 for RHD Paved Roads

Moreover, RHD has about 4507 number of bridges with a total length of about 130 kilometers
and 13751 culverts with a length of about 54 kilometers under its management.

Road Development Investment under RHD

The Government is fully aware about the importance and role of road and road transport. As
such, it has been making substantial investments in building physical infrastructure including
road network because of its paramount need as a pre-requisite for socio-economic development

163
of the country. Table 4.4 provides information on allocation and Expenditure of Fund under
RHD in different plan periods.

Road Planning

The road network has been developed mainly on the basis of short term need instead of long
term planning due to the lack of appropriate road sector policy guideline until recently. It is
observed that there is large scale deterioration of the network due to lack of proper
maintenance, large sections of the network have inadequate structural strength, many of them
severely damaged by vehicle overloading. Lack of adequate road safety has already reached an
alarming level; faster and smooth movement along the highways is not possible due to the
presence of large number of hats and bazaars right on the edge of roads.

Table 4.4: Allocation and Expenditure of Fund under RHD in Different Plan Periods
(Crore Taka current prices)
SL. Plan Period Allocation Expenditure Utilization
No. as % of
Allocation
1. First Five Year Plan 207.61 221.57 106.72
(FY 1973-74 to 1977-78) (PA 08.64) (PA 07.95) (92.01)
2. Two Year Plan 180.03 178.09 98.92
(FY 1978-79 to 1979-80) (PA 26.57) (PA 18.53) (69.74)
3. Second Five Year Plan 826.90 847.19 102.45
(FY 1980-81 to 1984-85) (PA 88.21) (PA 70.39) (79.80)
4. Third Five Year Plan 1996.15 2274.86 113.96
(FY 1985-86 to 1989-90) ( PA 751.79) (PA 748.88) (99.61)
5. Fourth Five Year Plan 5209.23 5124.32 98.37
(FY 1990-91 to 1994-95) (PA 2079.19) (PA 2019.90) (97.14)
6. Two Year Plan 1900.16 1804.46 94.96
(FY 1995-96 to 1996-97) (PA 722.91) (PA 625.19) (86.48)
7. Fifth Five Year Plan 9108.75 8457.09 92.85
(FY 1997-98 to 2001-2002) (PA 4150.77) (PA 3270.87) (78.80)
8. Interim PRS (2002-03 to 2003- 4857.63 4334.87 89.24
04) (PA 2187.44) (PA 1739.25) (79.51)
9. IPRS (2004-05 to 2006-07) 6596.62 5752.68 87.21
(PA 1875.36) (PA 1522.65) (81.19)
10. PRSP II (2007-08 to 2009-10)* 4965.72 2879.42 57.99
(PA 1631.49) (PA 709.23) (43.47)
(*) Allocation & expenditure for FY 2009-10 is up to September/09. PA refers to project assistance

RHD has developed the vast majority of the 21,040 km road network since independence in
1971. According to a recent estimate, the money value of the total assets under RHD is
estimated to be Taka 42,400 crore (US $7.4 billion). This huge national asset is managed and
maintained by RHD. A huge backlog in the area of road maintenance works has been created
over the years due to persistent inadequacy in the level of fund allocated annually for this
purpose. Sufficient fund arrangement on regular basis must be ensured in order to keep the
road surface in an acceptably good condition.
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Implementation of RHD projects did not suffer from major shortfall in achievement of
financial as well as physical targets in previous plan periods. However, cumbersome
procedure of procurement rule and land acquisition, delay in disbursement of matching fund,
price hike of construction material in international market create delay in implementation as
well as cost overrun in case of a number of foreign aided projects.

In case of government projects, selection of too many projects every year for implementation
and allocation of a given amount of fund for each of them leads to delay in implementation of
projects. Such mechanism of thin distribution of fund for each of too many projects creates
undue cost over-run. RHD has improved the situation through application of Medium Term
Budgetary Framework.

Past Transport Policies in Bangladesh

The National Land Transport Policy (NLTP) 2004, Integrated Multi-Modal Transport Study
(Draft IMMTP) 2004 and Bangladesh Road Master Plan Study 2007 (for 20 years) are the
three main policy documents, which will act as the guiding policy for RHD in selecting road
development and improvement projects to achieve the target of lower transportation costs,
uninterrupted and safer road communications. These documents also focused due attention on
the integrity with regional and global harmony in transport sector. On the other hand, SAARC
Regional Multi Modal Transport Study (SRMT) is the only approved guideline by the GoB to
resolve any regional issue related to transport sector.

Besides, the Government is implementing the Poverty Reduction Strategy Paper (PRSP) in all
development sectors. RHD has since been making its investment program commensurate with
the PRSP. In this process, Zila roads and government declared roads of public importance,
which contribute more to the growth of rural economy and rural employment including
women, are getting higher priorities.

National Land Transport Policy (NLTP) 2004

Government will introduce a long-term network planning as is stated in NLTP. The road
sector policies contained in the NLTP are designed to:
• Develop a long-term (20 year) Road Master Plan
• Clarify government responsibilities for Roads and Highways
• Maintain the road network at a level that protects the value of investment
• Rehabilitate those roads no longer capable of being maintained
• Secure a sustainable means of funding for road expenditure
• Improve management of traffic on the network to make the best use of assets
• Manage road side activities in a way that maximizes use of road assets
• Develop an integrated planning approach

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• Involve the private sector more in infrastructure, services and maintenance
• Develop rational bridge policies
• Improve the quality of the contracting industry
• Foster inter-regional links
• Improve management and operations of the Roads and Highways Department

Integrated Multi Modal Transport Policy (IMMTP) 2004

The IMMTP reinforces the NLTP commitment to sustainable road maintenance. It provides
guidance for construction of National Highways to attempt to protect them from flooding. The
key policies in the IMMTP are:
• Creation of a Road Maintenance Fund
• Road and drainage system design, construction and maintenance should be fully
integrated to avoid future flooding.
• Protect the investment in the strategic road network from the adverse effects of flooding
by construction of the National Highways at least 1 meter above the highest flood level of
50 years. The freeboard will be determined by the concerned agencies for other roads.

Road Master Plan (RMP) 2009

The Road Master Plan provides a physical plan for new road construction, rehabilitation and
maintenance over the next 20 years. The overall cost investment required for the RHD road &
bridge network is Taka 68,611 Crore around US$ 10 billion. This represents an annual average
requirement of Taka 3430 crore per year. The objectives of the RMP are to set out a
comprehensive investment program in order to:
• Protect the value of RHD’s road and bridge assets
• Improve the connectivity of the road network
• Enhance and develop the strategic road network to meet economic and traffic growth
targets
• Improve the Zila Road network to enhance the connectivity to the growth centers
• Improve road safety and reduce road accidents
• Provide environmental and social protection
• Outline the institutional improvements required for RHD

Poverty Reduction Strategy (PRS)

The key policies related to the road sector in the PRSP–II revised are as follows:

The PRSP highlighted the need to establish an autonomous road maintenance fund to ensure
adequate and stable recurrent financing of roads. The PRSP emphasized a multi-modal
transport system link that will be expanded to include, among other areas, the EPZ, and coal,

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hard rock, mining, fertilizer, cement and tea production areas for speedy and efficient
movement of cargo and passengers. The policy also identified the need for monitoring
indicators to be set to assess progress in key areas, such as increased allocations for
maintenance, increased level of cost recovery, and more effective road traffic management
such as road safety, traffic control and overloading enforcement.

RHD Planning, Monitoring and Management System

RHD select projects of socio-economic and technical merits and then implement through
Annual Development Program (ADP). RHD is also pursuing Medium Term Budgetary
Framework (MTBF) based on a three year rolling investment plan as a tool of its long term
investment plan. RHD developed and implemented several modern management tools like
RHD Road & Bridge Asset Management System (RAMS) and Central Monitoring and
Management System (CMS) to manage and monitor projects. RAMS is based on GIS map
which is available in digital computerized form. The main management systems are based on a
set of databases called MIS which are all accessible through the RHD website.
A professional work force of around 650 numbers of civil and mechanical engineers who have
working experience in big foreign aided projects are engaged in delivering their services
following the modern RHD management manual in the department. Apart from that, computer
professionals, transport economists, environmental experts and other professionals trained in
transport planning and project management are working in RHD. RHD can deliver the
proposed spending program contained in the Sixth Five Year Plan with enhanced authority,
increased capacity and better accountability. Necessary intuitional arrangement and continued
training of officers and engineers are required.
RHD Vision, Goal and Objectives for the SFYP
An efficient and modern road transport system has a unique role to play to achieve the
government target set for SFYP and Vision 2021 as well. The contribution of road sector to
the national income is around 8 per cent at current market prices at present. The prime target
of RHD is to make the growth sustainable. The National Land Transport Policy document
expressed a vision for the road network as: “The development and maintenance of a road
network that serves the economic and social needs of the country, and which can be used
safely by all vehicle types.” Thus RHD wants to achieve a well-maintained, cost effective and
safe road network in the country. RHD objectives necessary to achieve the road sector vision
are:

• To develop and manage strategic road corridors to underpin the economic development of
all regions of the country and contribute to the Government’s poverty reduction objectives
• To link all rural areas with the national road network to provide basic social access and
promote pro-poor growth

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The first is primarily concerned with the National and Regional Highways and the second is
very much concerned with the Zila road network. With a view to increase the sectoral
contribution RHD is going to take up several new projects under the following programs to
meet the present demand of network and address the vision of present government as well in
SFYP period:

i. General Road Network Development

ii. Construction of Bridges
iii. Congestion Reduction in Greater Dhaka and other big cities
iv. Development of Asian Highway Network
v. Regional Connectivity
vi. Construction of Padma Bridge Access Roads/ Bridges
vii. Construction of Bypass Roads
viii Technical Assistance (TA) Projects
ix. Construction of Zila Roads (new project)

RHD has set the following physical targets for the SFYP (Table 4.5)

Table 4.5: RHD Physical Targets for the SFYP

SFYP Targets(2011-15)
Physical Activities

i. Construction of new roads 4,672 km

ii. Improvement/ Rehabilitation of roads 8,433 km
iii. Construction of new bridges/culverts /overpass 23,777 meter
iv. Reconstruction of bridges/culverts 10,362 meter
v. Construction of Tunnel 5,400 meter
Source: Roads and Highways Division

RHD Priorities for the SFYP

The following activities will receive priority during the Sixth Five Year Plan period:

i. Completion of ongoing projects

ii. Proper maintenance of existing road network to reduce huge road user costs
iii. Construction of Dhaka-Chittagong highway with six lanes and other national
highways and corridor roads with four/six lanes in phases (2025km)
iv. Gradual replacement of all ferries by new bridges on RHD network
v. Construction of 2nd bridges/tunnels (5400 meter) on big and important river gaps to
commensurate with higher traffic demand
vi. Measures and projects to reduce traffic congestion in Dhaka city (overpass & flyover

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 24,450 meter/tunnel 3400 meter/2 nos.grade separator 8475 meter)
vii. Address road safety issues to reduce road accidents at 25 percent by 2015 as apart of
UN decade of Action for Road Safety.
viii. Control overloading to reduce road deterioration and road accident
ix. Upgrading of all National Highways to international standards with provision of sign
signal, grade separated inyterchange on intersections and service lanes for slow
moving vehicles
x. Construction of railway overpasses on all railway level crossings on all National
Highways
xi. Improve regional road connectivity including implementation of Asian Highway
Network to boost up trade and commerce
xii. Construction of access roads with linkage to Padma bridge
xiii. Construction of roads to bypass those cities and towns which are congested with
traffic-mix (new 77km & improvement 56km)
xiv. Connection of those Upazila headquarters with the arterial road network which have
not yet been connected
xv. Construction of Road network in AILA affected and other disaster prone areas
xvi. Higher priority accorded to projects in the least advanced area
xvii. Construction of missing links on RHD network
xviii. Improve connectivity between air, sea and land ports and the capital city
ixx. Construct roads to boost up tourism industry in the country
xx. Improve road access to the places of historical interest
xxi. Develop road network in resourceful coastal area
xxii. Implementation of E-governance
xxiii. Implementation of E-Procurement and E-Tendering
xxiv. Improve institutional capabilities of RHD

Key Issues and Constraints Related to the Road Sector Development

The approach to the development of the SFYP is based on addressing the existing problems
faced by the road network, along with the future challenges. The key issues are:

i. The underlying strength of the National and Regional Highway network largely
deteriorated due to the lack of maintenance.
ii. Vehicle overloading has contributed significantly to the road deterioration.
iii. The operation of the highway network is severely hampered by congestion caused by
poor traffic management, encroachment and traffic mix.
iv. Zila road network is not fulfilling its full role in rural connectivity because it is partly
incomplete and has suffered from a lack of maintenance.
v. A large number of bridges already need replacement or major repair due to a lack of
proper maintenance.
vi. Road safety is critical and not adequately addressed in road design and traffic

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 enforcement.
vii. Traffic is forecast to grow by a factor of at least three over the next twenty years
leading to a need to increase capacity significantly on the major corridors like 4 lanes
on important national highways and construction of second bridge over big rivers
viii. Maintenance needs a higher priority, more resources, improved management and
better quality standard

Regional and International Connectivity Issue

The Government is pursuing the policy of corridor based road development with a view to
accommodating regional as well as international traffic in Bangladesh. The Government has
been making efforts to improve the road connectivity with neighboring countries through
various regional cooperation forums such as SAARC, SASEC, BIMSTEC and BCIM.
Substantial progress has been achieved in this regard by this time. A Joint Communiqué has
been signed in New Delhi, 12 January 2010 by the Honorable Prime Ministers of Bangladesh
and India to facilitate regional cooperation in the issue. It was agreed in the Joint Communiqué
that Indian Over Dimensional Cargo (ODCs) will be carried through road from Ashuganj to
Akhaura for Palatana Power Plant Project in Tripura. Moreover, Bangladesh will allow use of
Mongla and Chittagong sea ports for movement of goods to and from India/Nepal/Bhutan.

Asian Highway Network

Bangladesh has acceded to the Asian Highway Network on 8 November 2009. The physical
alignment of Asian Highway Route in Bangladesh is more or less completed so far as the road
connectivity is concerned. GoB has plan to upgrade almost the whole part of the AH Network
in Bangladesh into 4 lane width by phases in order to bring the same in harmony with such
network outside Bangladesh. It may be mentioned here that construction of two additional
lanes on Dhaka-Chittagong Highway and construction of Dhaka-Chittagong Expressway got
the highest priority in this regard. 3 routes which are the part of the Asian Highway Network
in Bangladesh are as follows:

International Routes

(i) RouteAH-1:Benapole-Jessore-Narail-Bhatiapara-Mawa-Dhaka-Katchpur-Sarail-Sylhet-
Tamabil (length 495 km)

(ii) Route AH-2: Banglabandh-Panchagarh-Rangpur-Bogra- Hatikamrul-Jamuna Bridge-

Tangail-Dhaka-Katchpur-Sarail-Sylhet-Tamabil (length 805 km including 283 km of
overlapping part)

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Sub-Regional Routes

(i) Route AH-41: Mongla Port –Jessore- Bonpara- Hatikamrul-Katchpur-Comilla-Chittagong-

Cox’s Bazar-Teknaf –Myanmar Border (length 752 km)

Road Safety

A vision for road safety in Bangladesh is achieving 50 per cent reduction in RTA fatalities by
2020 in line with the UN Decade of Action for Road Safety. The vision translates to set a goal
towards achieving of a 25 percent reduction in the annual number of RTA fatalities by 2015.
The National Highways are recommended to be the principal target of road safety initiatives of
GoB as 45% of all fatal accidents occurring on National Highways. RHD Road Safety
Division is working actively to implement the recommendations of Road Safety Council with
the view to improve the road safety condition on RHD network. An accident database on the
basis of field report is kept by the RHD Road Safety Division regularly.
A vast program for safety on road through overload control is under implementation for quite
a long time. A number of overload control stations/weigh bridges are operational at different
strategic points of RHD National Highways e.g. Sitakunda N1, Auhkandi N2, Meghna Bridge
& Meghna-Gumti Bridge N1, Utholi N5 and Mawa. Construction of a number of overload
control stations/ weigh bridges is under implementation at Benapole N706, Mohashangarh N5,
Goalanda (Rajbari) N7 and Arial Kha Bridge N8. To ensure safety at level crossings RHD is
going to construct several bridges (ROB) over rail crossing levels on national and regional
highways. Road safety issues like education and public awareness, specific measures to
address women safety with a particular attention to remote areas, community participation,
enforcement, management of transport sector are being addressed at the policy preparation
level keeping reduction of accidents as the goal of all road safety measures. In order to ensure
safety on road, GOB has also introduced police patrolling system on highways. The impacts of
the road safety initiatives of GoB over the SFY plan period are also expected to be very
significant
SFYP Strategies and Policies
The following strategies and policy changes will be followed during the Sixth Five Year plan
period:
i. Inclusion of a limited number of projects on priority basis into Annual Development
Program (ADP)
ii. Allocation of adequate fund for implementation of project within stipulated time
frame particularly relevant in respect of domestically funded projects
iii. Implementation of RHD Road Master Plan
iv. Selection of locally funded projects on socio-economic merits
v. Establishment of Road Maintenance Fund
vi. Involvement of private sector by taking up projects on BOT/PPP basis
vii. Involvement of women in RHD Activity
viii. Assessment of environmental impact
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 ix. Improvement of institutional capabilities
x. Implementation of E-Governance
xi. Implementation of E-Procurement system

Strengthening Implementation Capacity

The stated aim of Roads and Highways Department is to become a modern highways agency
of international standard in order to meet the challenges of Government’s Vision 2021 and
MDG targets. An interim re-organization for RHD has been largely implemented over the past
few years. The objective of this institutional strengthening program is to modernize RHD with
an emphasis on contracting out most of its services, focusing on effective collection,
management and analysis of data, thereby permitting the fulfillment of its strategic planning
role. RHD has several completed initiatives the outputs of which are in danger of becoming
vestigial with the external support removed. The Road Safety and Environmental Circles are
not working as they should. The RHD Training Centre lacks funding and has serious shortage
of staff. At this stage a further re-organization is required to complete this process.

Traffic growth is expected to be very high at 3-4 times over the next twenty years according to
the Road Master Plan estimates. The road network will need to respond to these challenges.
Such capacity expansion will rise to the need for mobilization of sizeable resources.
Assistance will be required to reform the institutional set-up of RHD to make it more efficient
so that it can fully utilize the resources allocated to it.

RHD as an organization is not fully geared as yet to involve private sector in the development
and maintenance of roads and highways. Much greater use can be made of the private sector in
financing the capital costs of road development.

Lastly, it is important to activate the existing computer based modern tools of monitoring and
supervision such as CMS, RMMS, MIS, GIS and to use modern planning tools like HDM,
PAF etc in order to capture the full advantage of those systems.

Monitoring Implementation Progress

Monthly review meeting on the progress of RHD projects takes place under the chairmanship
of Minister of Communications or Secretary, Roads and Railway Division. Besides, Senior
Management Committee meets every month under the chairmanship of RHD Chief Engineer.
Regular meeting of Budget Committee takes place under the chairmanship of Additional Chief
Engineer, Planning and Development. Moreover, site inspections by Zonal Additional Chief
Engineer and other high officials of RHD, MoC, Planning Commission and IMED are done
frequently to supervise and monitor the field progress.

The Central Management System (CMS) is an advanced management information system

being used at RHD headquarters and all field divisions at present. CMS is operating online

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through FTP server. CMS can ensure better transparency and accountability as well as
discipline in financial practices and monitoring of RHD projects.

In order to achieve the SFYP targets and the vision of government, it is important to monitor
basic indicators in order to assess progress in key areas, such as increased allocations for
maintenance, increased level of cost recovery, and more effective road traffic management like
road safety, traffic control and overloading enforcement.

BANGLADESH ROAD TRANSPORT AUTHORITY (BRTA)

Bangladesh Road Transport Authority (BRTA), the only regulatory body in road transport
sector under the Ministry of Communication, Government of the People’s Republic of
Bangladesh is mandated to perform the following activities a) formulation of rules and
regulations for control of motor transport as and when required; b) registration of motor
vehicles and ownership transfer; c) issuance of motor vehicle driving licenses; d) issuance of
fitness certificates for motor vehicles; e) issuance of route permits for transport vehicles; f)
inspection of vehicles involved in road accidents; g) ensuring road safety and enforcement; h)
registration of driver training schools; i) maintaining accident records and statistics; j)
collection of motor vehicles tax and fees; and others.

BRTA plans to launch certain reforms in its activities to enhance transparency and
accountability. It looks forward to delivering better services to its clients by updating motor
vehicles Act, rules and regulations; ensuring vehicular safety through proper inspection;
tracking vehicles and monitoring its speed; conducting driving competency tests through
modern test procedures; collecting motor vehicles tax and fee through on line system as well
as developing public awareness about road safety.

BRTA intends to outsource fitness activities which will generate job opportunities and enable
better delivery of services. It also intends to monitor motor driving training schools which will
improve road safety as well as open avenues in the job market. It will also arrange road safety
awareness program e.g. seminars, workshops etc. for the stake holders and training for drivers
to change the mind set of drivers and make roads safer for the users. It is going to introduce
online system for collection of motor vehicle tax/fees which will enhance e-governance and
improve the job market.

Operation and Maintenance of Vehicle Inspection Center (VIC)

Bangladesh Road Transport Authority (BRTA) planned to setup 5 (five) Vehicle Inspection
Centers (VICs) in 1999, with semi-automatic test lanes, in 4 (four) metropolitan cities- two in
Dhaka and one each in Chittagong, Khulna and Rajshahi. Establishment of VICS was a
component project of Road Overlay and Improvement Project (ROIP), funded by the Asian
Development Bank.

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On completion of physical works and installation of equipment Bangladesh Road Transport
Authority tried to put five Vehicles Inspection Centers into commercial operation. But it could
not be done due to scarcity of the spare parts needed to maintain the Vehicle Inspection
Centers. Bangladesh Road Transport Authority had difficulties in managing the five Vehicle
Inspection Centers due to fund constraint and trained manpower. This led Government to
change its strategy. A review mission of Asian Development Bank (ADB) recommended that
the Operation and Maintenance of the five Vehicle Inspection Centers be leased out in private
sector under Public Private Partnership (PPP).

These Five Vehicles Inspection Centers (VICs) were constructed by the government for
technical inspection of vehicles by computerized method instead of visual inspection. Visual
inspection system is very old and the results of the vehicle inspections are always faulty and
debatable. But computerized method of inspection is more acceptable. The objective of the
Project is to help the government improve transport efficiency and strengthen integrated
vehicle inspection through balanced, quiet and mechanized system of checking. More
specifically, the project will (i) improve safety measures both for cargo and passenger on the
road; (ii) provide better access to markets, social services and open employment opportunities;
(iii) secure government resources for periodic inspection and maintenance of vehicles; (iv)
promote private sector participation in road transport system; and improve road safety and
axle-load control.

BRTA is also looking forward to outsourcing of vehicle inspection and issuance of fitness
certificates of motor vehicles under Public Private Partnership (PPP). It intends to enlist
efficient and capable private workshops for doing the job on behalf of BRTA to avoid
congestion in existing BRTA field offices and making it easier for the vehicle owners to get
their vehicle inspected at workshops near their places of residence or of convenience. A draft
of the rule required for this has already been prepared. BRTA is also looking forward to
establishing Vehicle Inspection Centers (VICS)/Workshops at greater district headquarters
under Private Sector Investment Guideline (PSIG) through Public Private Partnership (PPP) to
maintain a standard vehicle inspection system throughout the country.

Establishment of Motor Drivers Standard Training Institutes

The project proposes to establish 6(six) Motor Drivers Standard Training Institutes cum
Driving Competency Test Centers in 5(five) divisional headquarters in Bangladesh. The
objective of the project is to develop awareness and professional skill of motor drivers to
reduce road accident and to conduct Driving Competency Test for applicants of motor driving
license. Road accidents in Bangladesh are costing the nation about Tk. 5000 crore (US $ 850
million) annually which is nearly 2 percent of GDP. This loss of the nation can be reduced by
reducing road accident by training the motor drivers. BRTA is expecting project assistance
from Korea International cooperation Agency (KOICA) to implement the project.

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Collection of Motor Vehicle Taxes and Fees through On-Line Banking System

BRTA plans to collect of MV taxes & fees through On-Line Banking System by engaging
service provider (SP) and the government has allocated public funds for the services of the SP.
The service provider (SP) will provide important services including establishment and
maintenance of sufficient infrastructure required to collect motor vehicle taxes and fees from
different locations covering all 64 district Head Quarters through On-Line Banking System.
The customized software (application) shall be a web-based application with international
standard security system.

Up-gradation of BRTA Activities through Information Technology

The main objectives are:

i. An extensive System Requirement study and analysis to implement appropriate and
feasible IT system in BRTA;

ii. Preparation of Roadmap for Digital BRTA so that BRTA can be a model of government
organizations in the vision attainment process of “Digital Bangladesh” in the coming
days.

iii. Development of the best possible and most feasible IT based solution for Digital BRTA
on the basis of standard methodologies and modern approaches in analyzing system
requirement study;

iv. Study of existing applications and traditional manual business processes thoroughly to
determine the limitations, obligations, risks, HR, time, effort and cost involvement for
each and every task precisely;

v. Preparation of the scope and detail planning for business process reengineering;

vi. Recommendation of IT system as per planning and roadmap of Digital BRTA, relevant
vii. infrastructure and other requirements taking into account present capacity, capability as
well
viii. as future growth of BRTA;

ix. Development and maintenance of an automatic vehicle tracking & speed monitoring
system to keep watch over traffic rule violations and prevent vehicles theft;

Strengthening of BRTA to improve customer services

This will be achieved through:

(a) rationalizing BRTA organogram to address new issues in road transport sector;

(b) ensuring transparency in customer services in different field offices of BRTA;

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(c) prevention of fake motor driving license;

(d) improvement of customer service in the process of vehicle registration, motor driving
licensing, issuing Route Permits etc.

Framing of Demand-Responsive Legislation on Road Traffic

The Motor Vehicle Ordinance (MVO) was promulgated in 1983 by updating the Motor
Vehicle Act of 1939. Bangladesh Road Transport Authority (BRTA) is the regulating body for
Motor Vehicles and Drivers. Revision of the MVO is essential to facilitate the current growth
of the transport sector. Moreover, revision of the 1983 ordinance is of critical importance for
the introduction of measures to modernize vehicular safety and environmental standards and to
overhaul public transport licensing provisions. Necessary modification of MVO will be done
accordingly and will be structured around two components (i) Environment, which relates to
brick kiln emissions, and (ii) Transport, which encompasses traffic management, institutional
capacity building, and safety issues. The transport component will be executed by DTCB and
DCC. To address this issue, DTCB has taken initiative to engage a national consultant under
Clean Air and Sustainable Environment (CASE) project financed by World Bank

BANGLADESH ROAD TRANSPORT CORPORATION

Bangladesh Road Transport Corporation (BRTC), the only government organization in road
transport sector under the Ministry of Communication is mandated to provide fast, efficient,
economic, reliable, comfortable, modern and safe road transport services in the country. The
objectives of BRTC are –

a) to play strategic intervention role in road transport sector and to render emergency services
during the times of natural calamity;

b) to play intervention role in controlling road transport fare and freight charges;

c) to train unemployed youth on motor vehicle driving and as automobile mechanic; and

d) to help in creating opportunities for development of efficient and effective manpower for
the road transport sector.

BRTC buses and trucks are largely used to meet up emergency needs arising out of natural
calamities, hartals, strikes, political restlessness, for carrying passengers during Eid, Bishwa
Istama, for carrying government relief, food, prescribed books, election materials and so on.
BRTC’s share in the transport sector is only 1.2%. The share should be increased by allowing
BRTC to have more buses and trucks in its fleet as the popularity for utilizing BRTC services
among the people is on the increase. With the passage of time and considering the growing
demand for BRTC services BRTC has undertaken several projects for procuring buses and
trucks.

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It is undeniable that with the increase of carbon emission the environmental condition of
Dhaka city is deteriorating continuously and this should not be allowed further. To meet this
challenge BRTC has come forward with its limited capacity and has decided to procure CNG
buses. BRTC aims at providing high quality service and it believes that profit will come up as
a logical sequence. BRTC has introduced buses for females and working ladies as well as for
school students. BRTC extends its services for the employees of Bangladesh Secretariat,
Bangladesh Supreme Court, Election Commission and for the students of Dhaka University,
Jagannath University, Jahangirnagar University. BRTC wishes to establish itself as a model
service provider in the transport sector.

AT present BRTC has 6 (six) training institutes and through these it imparts training to general
people. It also encourages training to womenfolk and gives rebate of training fees for the
female trainees. They are also encouraged to do job in BRTC. At present the percentage of
female workers in BRTC is very negligible. However, through various types of activities as
mentioned above BRTC would be able to make contribution in the employment of more
females in the job market as well as encourage and recruit more female drivers in public
transport as is envisaged by the government in its vision 2021. It is mentionable here that
BRTC has undertaken a scheme to set up another six training institutes.

BRTC has introduced e-ticketing system through its six ticket counters in the city. It will help
to mitigate pilferage and botheration faced by the passengers. BRTC is thinking to expand the
system gradually throughout the country to establish e-governance, an election manifesto of
the present government. It has also strengthened its inspection network, which has generated
positive impact on misuse of property.

LOCAL GOVERNMENT ENGINEERING DEPARTMENT

Local Government Engineering Department is major public sector agency directly responsible
for design, construction, improvement and maintenance of rural roads. The LGED made
significant contribution towards rapid expansion of the rural transport network resulting in
rapid growth of transportation services. The commendable achievement in building an
extensive rural network of roads demonstrated significant impact on ensuring affordable
transport services in the transport sector and improving the living conditions of the rural poor.
Several study results revealed that a good rural transport network is critical for higher
economic growth, poverty reduction and social development. It plays a pivotal role, inter alia,
in product diversification, trade expansion, provisioning of basic services, increasing
productivity, decreasing production cost, and thereby, enhancement of quality of life and
welfare of people.

Objectives

The main goal of providing public support in the rural transport sector is to ensure a cost
effective, affordable and efficient transportation system for all.

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Strategies

The basic principle of the strategy will be to improve and maintain the Upazila, Union and
prioritized village roads network integrating rural river and rail transport so that cost-
effective, demand responsive and flexible systems could be provided for all. The elements of
this strategy to be pursued during the Sixth Five Year Plan will be as follows:

• Improve /upgrade remaining Upazila, Union and prioritized village roads including
appurtenant structures which have strategic importance to connect railways and
waterways.
• Maintain all Upazila, Union and village roads which have so far been constructed
including appurtenant structures and upgrade growth centers having connection with
railway and waterway in order to promote and integrate multimodal transport system. For
sustainability, adequate maintenance system and a viable funding mechanism should have
to be put in place. Since maintenance needs are increasing, the Government and the local
bodies will make special efforts to fully fund these needs and LGED will make continuous
efforts to improve maintenance efficiency and ensure local participation.
• The labor-based construction techniques for road improvement will be adopted to enhance
employment opportunity, sustainability and affordability.
• Improve and maintain prioritized rural waterways in order to promote riverine
transportation systems.
• Develop design of selective Intermittent Modes of Transport (IMTs) including
Karimon/Lossimon etc., non-motorized transport and country boats; disseminate the
improved version through involving the community.
• Upgrade the road inventory to fully utilize HDM & DSS software for better Road Asset
Management (RAM).
• Enhance procurement functions and processes, and quality control activities.
• Incorporate environmental, social and climate change dimensions into the engineering
design after assessing their impact and undertake adequate mitigation and enhancement
measures.
• Carry out road safety activities relating to engineering and information campaign including
awareness, advocacy and education.

The Rural Roads under LGED

Rural Road Network, though extensive, include mainly poor quality earth roads, requiring
improved surfacing and pavements, and interspersed with many gaps to be filled with drainage
structures for allowing uninterrupted traffic. Most of these are seasonal roads, generally not
usable in the rainy season, creating considerable hardship for transportation during the
monsoon period. An important feature of rural road transport is the dominant share of non-
motorized transport (manually pedaled cycle-rickshaws, passenger rickshaws and rickshaw

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vans, and to some extent animal-drawn carts) which provides reasonably efficient rural
transport suited to the small-parcel loads needed by most farmers.

Presently LGED has a Rural Road stock of 2,89,334 km of which 37,691 km is Upazila road,
44,686 km is Union road and 2,06,957 km is Village road. LGED is involved in construction,
development, maintenance of these roads. The categorical break-down is shown below:

Table 4.6: Status of Rural Roads

Road Number Total Length of Remaining Existing Structure Existing Gap
Type of Road Length BC & Rigid Length of
(Km) Pavement BC & Rigid Number Span Number Span
Road (Km) Pavement
Road (Km)
Upazila
4481 37691 27888 9803 56232 355706 4749 106187
Road
Union
7953 44686 19163 25523 57515 299201 8649 122955
Road
Village
36218 106622 18244 88378 68702 315320 28852 243046
Road-A
Village
53169 100335 6206 94129 39045 146793 33627 206675
Road-B

Total 101821 289334 71501 217833 221494 1117020 75877 678863

Source: Ministry of Local Government

The Rural Road Master Plan

In view of efficient and effective investment prioritization, LGED prepared a Rural Road
Master Plan to (a) identify/prioritize a most useful and effective rural road network throughout
the country to ease the rural life as a whole, (b) provide all weather access to all growth
centers, all Union Parishads/Complexes, most of the rural markets and other service delivery
centers of the rural areas, (c) improve rural accessibility for facilitating agricultural production
and marketing of different products, (d) reduce poverty through employment generation and
accelerating economic activities in rural areas and (e) strengthen the Local Government
Institutions. It is estimated that approximately 821,000.00 million taka will be needed to
improve all categories of roads. Fulfillment of the targets of the Sixth Five Year Plan will
involve an expenditure over 210,000.00 million taka.

Rural Waterways

This is an important component of the Bangladesh transport system in view of the extensive
waterway network available and the floods, which regularly inundate the country and disrupt
the other two surface transport modes. There are about 24,000 kilometers of waterways of
which about 6000 kilometers of this network are classified as arterial, secondary or feeder
routes. This 6,000 km is being taken care of by BIWTA and they have prepared a Master Plan.
With the passage of time, as floods each year deposit their fertile silt on the farmlands, the
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freeboard for boats to ply though these waters gets gradually reduced and limits the loads that
boats can carry. This problem is accentuated by the fact that no one has, or accepts,
responsibility for maintenance of the remaining 18,000 kilometers of smaller rural waterways.
This issue has been identified in the Master Plan of BIWTA which recommended that the
tasks should be carried out by LGED with active participation of LGI’s.

More than half the country’s total land area is within 10 kilometers of a navigable waterway.
There are significant numbers of motorized and non-motorized country boats that ply on these
waterways. Most of these boats are operating in what is referred to as the unorganized part of
the water transport system, carrying lion’s share of freight traffic. However, in view of the
huge size of the waterway network, over 1,000,000 country boats and the huge volume of
traffic they serve, it is obvious that the ancillary facilities are completely inadequate for the
task. It should be kept in mind that integration of rural road network with the waterways will
make the rural transport system cheaper, flexible and demand responsive. However, this would
necessitate appropriate actions for a) revival of prioritized rural waterways; b) embankment
protection; c) construction of landing stations/river Jetties; d) provision for loading/unloading
spaces with toilets; e) design development of country boats; and f) Navigation safety

BANGLADESH BRIDGE AUTHORITY

Review of Past Development Projects

An integrated transportation is the sine qua non for socio-economic development of a country.
In view of this, Bangabandhu Bridge has been constructed to establish direct road and rail link
between the north-west and eastern zone of the country, which was separated by the mighty
river Jamuna. The construction work of the bridge was commenced in October, 1994 and
completed in June, 1998 at a cost of Tk. 37456.00 million with foreign funding of
Tk.25456.00 million. For implementation of the project, an organization named Jamuna
Multipurpose Bridge Authority (JMBA) was created. Subsequently, a separate Division, titled
Jamuna Bridge Division (JBD), was created under the Ministry of Communication for
monitoring, supervision and quickening the decision-making process in respect of different
activities and problems related to this giant project. This Project was included in the Fourth
and Fifth Five Year Plans.

The bridge is now acting as a fixed major link in the national transportation system. With the
facilities of communication both by road and rail from north-west to east, movement of traffic
has become easier. This, in turn, has resulted in reducing transport cost and travel time. The
farmers of the north-west region are now getting fair prices of their crops, which has
encouraged commercial farming of various agricultural products. Besides, a good environment
has been created to establish new industries in the northern region. Apart from playing a vital
role in the transportation system, the bridge is contributing to the economy by facilitating
accelerated growth, poverty alleviation and revenue generation.

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Objectives and Targets for the Sixth Plan

The main objectives of the SFYP are to develop an integrated transportation network by
constructing Padma Bridge at Mawa-Janira for socio economic development of the country.
The government has given the highest priority to construct the Padma Bridge, the largest
infrastructure project in Bangladesh. The proposed Padma Bridge will connect 19 Districts of
South-Western part with the eastern part including the capital. This bridge will bring
significant socio-economic improvement of the people of the south-western region and an
estimated 1.2% increase of GDP growth rate of the country. The proposed Padma Bridge lies
on the Asian Highway route AH-1 and if implemented this bridge will bring revolutionary
changes in the South Asian countries including internal transportation system of Bangladesh.

The Government has plans to construct about 6.10 km long 2nd Padma Multipurpose bridge at
Paturia- Goalundo point to establish through communication from capital city, Dhaka to west
and south-west part of Bangladesh as well as with the main land port Benapole, Darshona and
the sea port with Mongla. To establish a direct road communication between Barisal and
Khulna Divisions, government has planned to construct about 1550 meter long Bekutia Bridge
over the river Kocha on Perojpur-Jhalakathi road.
BBA has taken initiative to implement infrastructure project through Public Private
Partnership (PPP). For the construction of about 26 km. long Dhaka Elevated Expressway
from Shahjalal International Airport to Kutubkhali at Dhaka Chittagong Highway on PPP
basis with cost of US$ 1.24 billion. After implementation, traffic congestion in Dhaka city will
be reduced substantially. The target in SFYP is also to implement Dhaka-Ashulia Elevated
Expressway and Gulistan Golapshah Mazar-2nd Burigonga Bridge Flyover on PPP basis.
BBA has also taken initiative to construct tunnels, the first of its kind in Bangladesh. As part
of implementation of about 1.50 km. long tunnel from Zahangir gate to Rokeya Sharani at
Dhaka and about 2 km. long tunnel under the river Karnaphuli at Chittagong city. The
feasibility studies are in progress. The construction works are expected to commence in due
time after conducting feasibility studies and arrangement of necessary foreign funding. The
target in SFYP is to achieve major progresses.
In connection with Padma Bridge, BBA has taken initiative to improve road network in South-
west region, especially in Barisal Division. The target in SFYP is to start constructions of
some new bridges in that region.

Strategies/Policies

The strategies and policies to be pursued in the Sixth Five Year Plan are as follows:
a) Completion of most priority ongoing Padma Bridge project at Mawa-Janjira in time by
providing adequate allocation to derive maximum benefit, instead of spreading the limited
resources thinly over a large number of projects.
b) Improvement of the capacity of Bangladesh Bridge Authority by doing study.

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c) Greater emphasis for repair of cracks and appointment of private operator for operation &
maintenance of Bangabandhu Bridge.
d) Improvement of existing toll collection system of Bangabandhu Bridge.
e) Generation of funds by issuing bond/share against Padma Bridge Project and issuing
securitized bond against Bangabandhu Bridge.
f) Formulation of appropriate legal and policy framework to attract private investment in
infrastructure development projects, particularly the construction of Dhaka Circular
Elevated Expressway.
g) Addressing the environmental issues and resettlement of Project Affected Persons in an
appropriate and sustainable manner.

Improving Implementation Capacity

a) For large infrastructure projects, a qualified and experienced officer needs to be appointed
as Project Director for the whole project period. But through deputation it is not possible to
appoint an experienced Project Director for the whole project period. So provision for
appointment of Project Director through direct recruitment may be included in the
Development Project Proposal.
b) Institutional capacity of BBA should be significantly enhanced in view of renewed
mandate and significant increases in volume of work.

DHAKA CITY TRANSPORT

Dhaka, the capital of Bangladesh (1528 sq. kms.) is the largest and most industrialized city of
a nation of 150 million people. Its present population is about 13 million which is alarmingly
increasing at 4.2% annually creating additional demand for services including transport
services. Unfortunately, it is an unplanned city. It is perhaps the only city of its size without a
well organized, properly scheduled bus system or any type of mass rapid transit system. Both
motorized and non-motorized transport plies in the same route where traffic management is
very weak. There is no parking policy for the city; coordination among the agencies is also
very weak. This situation compromises the ability of the transport sector to serve and sustain
economic growth and provide an acceptable quality of life. At the prevailing condition it is
extremely difficult to meet the current transport demand alone not to say of future demand.

To meet the present and future transport demand Government of Bangladesh initiated some
policies. Government has been trying to involve donors in city transport improvement and
increase its budget every year for transport development. On the basis of the past transport
studies including one by the World Bank government implemented Dhaka Urban Transport
Project (DUTP) from 1999 to 2006. Because of the unplanned growth of the city and its
transportation DUTP could not achieve much to solve deep-rooted transport problems of the
city with assistance of only one donor. However, some flyovers, foot over bridges,
underground road crossings, pedestrian facilities, intersection and median developments could

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be done. A 20 year study has also been done under DUTP with World Bank assistance.
Despite these activities traffic situation could not be improved significantly.

City transport development was neglected in the past. Budget was inadequate, technical man-
power was not developed to face the challenge of increasing demand created mainly by
increase of population of the city. Private sector was never encouraged as a policy matter in
city transport development activities. Related public sector agencies were also not
strengthened with trained technical manpower. Budget was always inadequate for transport
development.

A Strategic Transport Plan (STP) has been prepared recently for planning the transport system
of Dhaka City (The Louis Berger Group and Ltd. December 2005). The STP has proposed a
number of short, medium and long-term measures to cope with the traffic problems in Dhaka.
A number of measures have already been taken, such as construction of new links.
Construction of elevated expressway has already started while introduction of metro rail is
under consideration. Overall, the target is to introduce a multi-modal and integrated urban
transport system comprising of the following:

• Overhead metro/mono rail system

• Elevated express way
• Circular railways and water ways around Dhaka city
• Improved road safety and reduced traffic congestion
• Introduction of modern DEMU (Diesel Electric Multiple Unit) train services in and around
Dhaka city
• Construction of double line in Dhaka-Narayanganj and Tongi-Joydevpur, construction of
3th & 4th line and introduction of intermediate block signalling in Dhaka-Tongi section to
increase line capacity
• Construction of overpasses/flyovers over important level crossing gates to provide grade
separation
Without these drastic measures, the burgeoning congestion on the city roads could not be
mitigated. An effective interfacing is required for integrating the various transport modes, so
that riders can transfer from one mode to another without much trouble and loss of time. It is
possible to have a balanced and integrated transport system for Dhaka through proper
planning and development of appropriate institutional framework.

Development Visions, Goals Objectives and Targets for SFYP

The SFYP goal and vision for Dhaka transport is to take short, medium and long term
measures to develop a multi-modal integrated and safe transportation system for the city. The
strategy during SFYP is to start with short term cost saving measures and then to implement
medium and long term measures gradually with adequate budget. Traffic management,
circular water way development, connecting rail with neighboring districts and construction of
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one/two east-west connecting road during SFYP will be emphasized. Technical manpower
will be improved through advanced overseas training. Appropriate technology will be applied
in city for achieving accelerated transport development. Private sector must be involved in this
matter. Key elements of the Dhaka transport strategy include the following:

i. In the short term, attention would be given to traffic management measures in order to
optimize the use of available road capacity. The traffic management measures may
include one-way operation, restriction on a particular mode on a street or in an area, and
parking restrictions.
ii. To have a balanced and integrated transport system, rickshaws should not be totally
banned, but their use should be limited. They should be registered by Dhaka City
Corporation, and license can be issued to them to operate in a particular area.
iii. It is thought that increasing the roadway capacity, for example, by constructing
expressways is not going to bring any long term solution. This is because the improved
roads will push up the demand and ultimately the excess capacity will be exhausted.
Therefore, travel demand management measures are proposed in the short and medium
terms. Examples of travel demand management include introducing a school bus system
and encouraging car-pooling.
iv. The behavior of the road users is unlikely to change if not enforced. Therefore, adequate
number of traffic personnel should be recruited and trained. So far, expenditure on
improving the signaling system has not brought enough benefits.
v. The increase in the number of buses on the streets of Dhaka is a good sign, as they are an
efficient mode in terms of space requirement per passenger. Attractive Bus Rapid Transit
(BRT) system should be introduced in the medium term.
vi. A mega-city like Dhaka could possibly explore the possibilities of a metro-rail system to
move a large number of people in a quick time through the main transport corridors.
Examples include Kolkata and New Delhi
vii. Ensure proper cost recovery policies to help financial sustainability of urban transport and
improve use efficiency

In addition to improvement of traffic management involving proper traffic monitoring,

enforcement of traffic laws including parking laws and fees, establishment of time of day road
crossings and pedestrian crossings, massive investment will be needed over the medium to
long term to modernize and expand the Dhaka transport infrastructure.

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BANGLADESH RAILWAY

Bangladesh Railway (BR) is state owned and government managed transportation

organization. It provides safe and less expensive mass transport facility. BR also provides
critical transport services during natural calamities such as flood and cyclones on an
emergency basis. After liberation, like other agencies, BR had to emphasize on rehabilitation
and reconstruction of damaged railway system. Till then the bulk of the investment was for
replacement, renewal and rehabilitation of track, rolling stock and signaling system. Until
recently government resource allocations have had heavy road bias, but there are some
important policy signals that things are beginning to change. This particular sub-sector has
been losing ground in competition with both water and road transportation.

Review of Railway Subsector

After liberation, BR had 2858.23 km rail line, 270 stations, 486 locomotives, 1643 coaches
and 16823 wagons. At present BR have 2835.04 km rail line, 440 stations, 286 locomotives,
1509 coaches and 9970 nos. of wagons. The allocation to the railway sub-sector in respect to
the total allocation of transport sector was 23.9% in the First Five Year Plan, 32.13% in the
Second Five Year Plan, 27.84% in the Third Five Year Plan, 13.1% in the Fourth Five Year
Plan and 13% in the Fifth Five Year Plan. Those allocations could barely meet the need of
rehabilitation/replacement costs. As a result no improvement or up-gradation took place and
some railway sections and stations had to be closed down. On the other hand, huge investment
in road sub-sector resulted in high road density of 69.2 km per 100 sq. km. of total land in
Bangladesh.

In a land scare country like Bangladesh, railways can perform a useful and effective role in
transporting bulk freight and passengers more cost effectively and with lower adverse
environmental impacts than road transport. Its contribution to pollution is very little,
consumption of fuel is only 10% of the other modes of transport and rate of casualties in
accident in negligible in comparison to other modes of transport. Travelling costs on railway is
cheaper than any other mode of land transportation. Although railway has great potential, it
carries only 4% of all traffic. Due to lack of proper investment, BR faces a number of
constraints which limit its ability to provide service and minimize its losses.

During the past three decades, the only remarkable investment is the establishment of railway
network over the Bangabandhu Multipurpose Bridge which provides seamless railway
connectivity between East and West zone of BR. But its utility to BR is limited by significant
load restriction placed on BG freight trains to cross over the bridge. Due to inadequate
investment, the railway track is in poor condition in a number of areas, including the vital
Dhaka-Chittagong corridors which need immediate rehabilitation and upgrading. Almost 78%
of the locomotives and 28% of passenger coaches are beyond their economic life and need
immediate replacement. 70% of the signaling system has become old aged and obsolete and

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needs modernization including human resource development. All these result in serious
deterioration of the performance of BR.

Current and Future Challenges

Improve and expand railway network: Government has decided to expand/construct railway
network connecting all the districts of Bangladesh. For this purpose, new projects have been
taken in hand for expansion of 454.60 km railway network such as Dohazari-Cox’s Bazar-
Gundum (128 km), Kalukhali-Bhatiapara-Gopalganj-Tungipara (135.50 km), Pachuria-
Faridpur-Bhanga (60.10 km) Ishurdi-Pabna-Dhalar char (78 km) and Khulna-Mongla (53 km).
Bangladesh Railway (BR) needs to undertake massive development works to overcome the
operational bottlenecks such as single lines, missing links and deplorable condition of track,
rolling stocks & signaling systems. BR has planned to undertake projects to re-orient the
railway network towards the capital, re-open of closed branch lines and connect Cox’s Bazar,
Mongla Port, Tungipara, Barisal, Chittagong Hill Tracts, important power plants, fertilizer
factories, cement factories, tourist points and other areas where rail network does not exist.
Moreover, BR has also plan to connect important land ports. For improvement of passenger
amenities BR has plan to renovate/reconstruct old aged station buildings, yards, platform,
platform sheds, foot over bridge and other structures.Feasibility study for construction of
elevated high-speed dedicated rail track will be carried out on Dhaka-Chittagong corridor.

BR has taken projects for doubling of Dhaka-Chittagong railway corridor such as doubling of
Tongi-Bhairab bazar section under ADB finance, doubling of Chinki Astana-Laksam section
under JICA finance, and construction of 2nd Bhairab & 2nd Titas Bridge along with railway
approaches under Indian Dollar Credit Line. BR has taken initiative for track doubling of
Akhaura-Laksam, Khulna-Parbatipur, Dhaka-Mymensingh, Dhaka-Bangabandhu East and
Dhaka-Sylhet sections.

Due to deplorable conditions of tracks and bridges speed restrictions have to be imposed to
ensure safety of running trains resulting excess running time and excess operation expenses.
Projects such as rehabilitation of Dhaka-Narayanganj, Saidpur-Chilahati, Mymensingh-
Jamalpur-Dewanganj, Pachuria-Faridpur-Bhanga, Laksam-Chandpur, Fateyabad-Nazirhat,
Sholoshahar-Dohazari etc. have been undertaken for rehabilitation of existing railway lines to
improve the performance of BR and to restore the image of railway as a safe, speedy and
reliable means of transport. Rehabilitation of some old bridges has also been under taken.

BR has taken initiative to construct Rail-cum-road bridge over river Padma connecting
Dhalarchar and Rajbari, dedicated railway bridge through Bahadurabad – Phulchari ghat over
river Jamuna, 2nd Karnaphuli Rail-cum-road bridge, 2nd Bhirab and 2nd Titas railway bridge,
dedicated railway bridge over the river Jamuna. BR has also planned to rehabilitate/upgrade
all bridges to carry national, regional and Trans-Asian railway Traffic.

Digitalization of railway: Bangladesh Railway has introduced Computerized Seat Reservation

and ticketing system, selling ticket through mobile phone, giving information through mobile
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network. In addition BR has undertaken digitization of (i) Financial Accounting System, (ii)
Fixed Asset Management System including Land and Real Estate Management, (iii) Human
Resource Management System (HRMS), (iv) Payroll Management System, (i) Procurement
and Inventory/Material Management System, (vi) Project Management System and (vii)
Workshop Maintenance Management System.
Acquisition of new rolling stocks: At present BR is facing crucial operational problems due to
shortage of adequate rolling stock. It is expected that 9 MG DE locomotives will be arrived
from May to September, 2011. Procurement of 11 MG DE locomotives is in process. Projects
have been taken in hand for procurement of 40 BG locomotives, 125 BG and 414 MG
coaches, 2 BG inspection cars, 180 BG and 100MG tank wagons, 220 MG flat wagons and 10
sets of DEMUs under Indian Dollar Credit Line. BR has taken initiative to procure 70 MG DE
locomotives.

Transportation of fuel to the power plants:

The government of Bangladesh is going to establish a number of Power plants on rental basis.
BR has to transport fuel to those power plants which is difficult due to various constraints of
BR such as scarcity of rolling stock and O&M staff, single railway track most of which are in
deplorable condition. BR needs to take projects for double tracking of railway tracks,
procurement of rolling stocks and various improvement works.

Reform of BR:

A reform programme is going to transform BR into Lines of Businesses (LOBs) and other
improvement of BR’s management. LOB heads are assigned in their posts. Key Performance
Indicators (KPIs) would be used to monitor performance of LOBs. BR also has to implement 5-
year business plan and land use plan. Land Assets has been proposed as a separate LOB of BR,
which will be looking after the Land Assets of BR and its proper usage, marketing strategy and
custody. It will be a separate Business unit and will generate its own revenue. This new LOB
would also be responsible for identifying and developing other opportunities such as hotels,
markets, parks and tourism.

Padma Bridge connected rail links: Government of Bangladesh is going to construct a Rail-
cum-road Bridge over Padma River at Maowa Point. It provides an opportunity for linking
Capital City Dhaka through shortest route connection with South-West part of Bangladesh and
Cross border connectivity with India under greater perspective of SAARC. Moreover, the
proposed route will provide an opportunity to connect Barisal, the divisional town with
Tungipara. And Mongla, the 2nd Sea Port of Bangladesh with eastern railway network. GOB
has already approved projects for rehabilitation/construction of Pachuria-Faridpur-Bhanga rail
line and Kalukhali-Bhatiapara-Gopalganj-Tungipara in this regard. If rail line from at least
Mawa to Bhanga can be established, train can be operated over Padma Bridge from Day-1
from Mawa to Western part of railway network. To facilitate regional trade railway network
will be constructed connecting Mongla, Bhomra and Benapole.
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Trans Asian railway: The Government has embarked to establish regional railway
connectivity and Trans Asian Railway (TAR) connectivity. Bangladesh has signed the
“Intergovernmental Agreement on the Trans-Asian Railway (TAR) Network” as 20th signatory
on 09-11-2007 and issued ratification on 11-08-2011. TAR routes enter Bangladesh from three
directions from the Indian state of West Bengal and exits through two directions. The TAR
routes in Bangladesh are as follows-

TAR ROUTE-1:

Gede (West Bengal, India) – Darsana- Ishurdi- Jamtoil- Joydebpur- Tongi- Akhaura-
Chittagong- Dohazari- Gundum- (Mynmar border station)
Sub-route- I: Tongi- Dhaka.
Sub-route- II: Akhaura- Kulaura- Shahbazpur- Mahisasan (India)

TAR ROUTE- 2:

Singabad (West Bengal, India) – Rohanpur- Rajshahi- Abdulpur- Ishurdi and thereafter
following the rest of the route/sub-routes of Route- I.

TAR ROUTE- 3:

Radhikapur (West Bengal, India)- Birol- Dinajpur- Parbatipur- Abdulpur- Ishurdi and
thereafter following the rest of the route/sub-routes of Route- I.

A project has been approved for the construction of Dohazari-Ramu-Cox’s Bazar and Ramu-
Gundum new rail line to overcome the missing link of TAR. Another project is going on for
conversion of Parbatipur-Birol section into dual gauge to re-open the Radikapur-Birol
interchange point for establishing TAR in Route-3. Another project has been proposed to be
implemented under GOB financing for rehabilitation of Kulaura-Shahbazpur section to
establish TAR in Bangladesh. Moreover, several projects are going on and some have been
proposed for improvement of the TAR routes in Bangladesh.

Regional Connectivity

At present there are three operating interchange points for bi-lateral railway traffic. They are
Benapole (BR) – Petrapole (IR), Darsana (BR) – Gede (IR) and Rohanpur (BR) – Singhabad (IR).
Mostly freight are carried through those interchange points. Train movement in the interchange
point Birol (BR) – Radhikapur (IR) and Shahbazpur (BR) – Karimganj (IR) was suspended a long
ago and actions have been taken to restore the communication. The Government is taking
initiative to overcome the operational bottlenecks and missing links of Railway network
within the country to facilitate an efficient railway transport linkage among SAARC countries.
The regional routes through Bangladesh identified by SAARC Regional Multimodal Transport
Study (SRMTS) and BIMSTEC Transport Infrastructure and Logistics Study (BTILS) are as
follows:

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BRCI and SRCI: Lahore/Delhi/Kolkata/Dhaka/Mahishasan/Imphal

BRC3 and SRC4: Birgunj (Nepal)/Raxaul/Katihar (India)/Rohanpur-Chittagong with links of

Jogbani (Nepal) and Agortala (India)

SRC6: Birgunj (Nepal)/Raxaul/Singhabad (India)/Rohanpur-Rajshah- Khulna-Mongla Port

with links of Biratnagar (Nepal).

Targets and Objectives of SFYP

BR targets and objectives encompasses the government’s vision to expand and improve the
railway system to provide safer, better, environment friendly and less expensive transport
facilities to the national and international traffic.

BR’s objectives of SFYP are to:

i. Rehabilitate, upgrade/improve and replace old-aged infrastructures and rolling stocks to
reduce journey time, improve the service quality and to build the image of railway as a
safe and reliable means of transport.
ii. Connect the Capital City with Cox’s Bazar, Mongla Port, Tungipara, Barisal, Chittagong
Hill Tracts and other areas where rail network does not exists.
iii. Establishment of Padma rail links, Trans Asian Railway network and regional railway
connectivity.
iv. For running more trains, augmentation of line capacity along selected corridors including
procurement of additional rolling stocks to meet the future challenge.
v. Increase its market share up to an acceptable level.
vi. Reduce the operating ratio remarkably at the end of the year 2015.
vii. Undertake implementation of Land Use Plan, enhance Public-Private Partnership (PPP) in
railway sector and create other business opportunity.
viii. Improve Commuter Train Services to provide better urban transport facilities to the daily
passengers around Dhaka, Chittagong, Rangpur, Dinajpur, Parbatipur, Nilphamari, Sylhet
etc.
ix. Reduce the rate of casualties in accidents, fuel consumption and carbon emission in
transport system.
x. Assist in pro-poor growth and poverty reduction.
xi. Improve financial performance through efficiency measures as well as by instituting
proper user charges.

BR targets for SFYP are as follows:

1. Undertake construction of 1210.42 km new rail line or re-opening of closed rail lines,
double tracking of 506.20 km track and 6 new important bridges along with all necessary
infrastructure, rehabilitation/upgrading of 1535.73 km existing rail line along with all
necessary infrastructures; remodeling/construction of 7 stations in existing section,

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 improvement of 831 level crossing gates, construction of one ICD at Dhirasram and
improvement of other infrastructures to increase carrying capacity.
2. Undertake procurement of 234 DE locomotives, 50 DEMU/DHMU, 771 passenger coaches
and 1430 wagons to introduce new trains and improve the service quality & passenger
amenities and increase carrying capacity of containers, fuel oil, aviation fuel, bulk freight,
parcels etc.
3. Undertake rehabilitation of 143 DE locomotives, 560 passenger coaches and 377 wagons
to enhance availability & performance of rolling stocks and to ensure reliability &
punctuality of running trains. Various projects for improvement of service quality of
rolling stock including improvement of workshops.
4. Undertake procurement of DEMUs and investment projects to increase line capacity for
introducing more commuter trains around Dhaka, Chittagong, Rangpur, Dinajpur,
Parbatipur, Nilphamari, Sylhet etc.
5. Undertake modernization of signaling system of 113 stations to ensure safety.
6. Undertake various PPP projects to create other business opportunity.
7. Organizational reform and human resource development to enhance the efficiency and
improve the performance of BR
8. Undertake various types of study and consultancy services.

Strategies and Policies of SFYP

Government, underscoring the need of railway communication, put priority to railway

amongst all the surface mode of transports under National Land Transport Policy (NLTP) and
Draft Integrated Multi Modal Transport Policy (Draft IMMTP). In order to overcome the
constraints and to achieve the visions of BR, a 20 year development plan is being prepared by
the planning commission. To become self sustainable, BR has to improve service quality and
operational efficiency as well as develop its own infrastructure facilities to carry more traffic
efficiently.

It has been found that BR shall have to focus on intercity passengers, long haul freight traffic
along selected corridors, container traffic and take initiative of other businesses. Hence the
development plan focuses on overcoming the shortcoming, missing links and operational
bottlenecks of BR.
Historically the railway enjoyed a monopoly as a carrier and used to carry most of the
principal commodities in the country such as cement, coal, fertilizer, raw jute, stone, food
grain, sugar cane etc. With gradual emergence of road transport, railway started losing its
modal share and overtime it declined from 30% in 1975 to a mere 4% in 2005. However,
railway still dominates in carrying stone, iron, steel and food grains. In addition, railway also
carrier about 10% of containers handled in Chittagong port. BR has taken initiative to increase

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the modal share specially in container transportation. Some important KPIs of BR are as
follows –
• Passenger transport share: 10%
• Freight transport share: 10%
• Container transport share: 20%
• Working Ratio improved to 0.96.
• Number of derailment reduced: 20%

It is found that the commodities carried by rail are mostly sea port and land port based. Thus
the strategy for SFYP includes development of new inland container depots (ICD) and
increase the carrying capacity.

In addition, BR has great potential in the regional traffic market, which depends on the
expansion of railway network and the revival of historical railway links. Most of these are part
of Trans Asian Railway network and Bangladesh has already signed the intergovernmental
agreement.

Programs for achieving the targets for SFYP

Bangladesh Railway has planned to undertake about 149 projects within next five years. With
the implementation of the on-going as well as new projects Bangladesh Railway will be able
to regain its market share and be self-sustainable and create other business opportunities. Thus
BR will be able to contribute in poverty reduction and sustainable economic development of
the country. Out of the total 149 projects, 46 are on-going and 103 are new. It is very essential
to get the required allocation in time to implement the projects efficiently. Lack of adequate
fund will result time over run as well as cost over-run.

INLAND WATER TRANSPORT

The country possesses a navigable waterways network, which varies from 5968 km during the
monsoon season to 3,865 km during the dry season. Owing to the vast river network in
Bangladesh inland water transport (IWT) continues to be an important mode of transport,
despite years of neglect and the emergence of expensive road transport system. The water
transport network of the country not only caters to the inland movement of freight and
passengers but also plays an important role in the transportation of import and export items
through the ports of Chittagong and Mongla. During the monsoon season when roads become
impassable, riverboats are the only mode of transport for an important part of the Bangladesh’s
rural population. The country boat plays significant role and provides for about 50% of the
total employment in the transport sector as a whole. They are also the main mode of transport
in the south coastal areas where the road network is little developed.

The length of rivers of Bangladesh in about 14,000 km, which spread over the country as a
spider net, and through this network the remotest areas of the country are accessible whereas

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roads and railways do not have such accessibilities. More than fifty percent of the economic
activities in the country are located within a distance of 10 km for the nearest navigable
waterways in all seasons. The high degree of penetration of the IWT network providing access
to about 25% of the rural households in Bangladesh and the existence of a dynamic private
sector leading the activities of the sector (such as cargo transport, port management and ship
building) are the main strengths contributing to economic growth and poverty reduction.
Moreover, the topographic, soil and climatic conditions in Bangladesh are such that cost of
building and maintenance of roads and railways are very high compared to inland waterways.
Besides, cultivable land is needed for the improvement of roads and railways while for inland
waterways it is not necessary.

The infrastructure facilities and services in the IWT sub-sector are provided by the Bangladesh
Inland Water Transport Authority (BIWTA) and the Bangladesh Inland Water Transport
Corporation (BIWTC) respectively. About 77% of the total sea-borne export and import of the
country are handled by the Chittagong port. On average, the Chittagong port handles about 82
percent of the imports and 74 percent of the exports, while Mongla port handles the rest of
export and import freights. Both of the sea ports suffer from heavy siltation such that channel
depths between the sea and the wharves can change considerably. It is sometimes beyond the
control of the port authorities to maintain published channel depths.

In maritime shipping, the Bangladesh Shipping Corporation (BSC), a public sector

organization, provides 55% of the services in respect of Dead Weight Tons (DWT), while the
private sector provides 45%. Bangladesh handles only 14% of the overall import and export
cargo, although, under the technical convention, it is entitled to handle up to 40 percent. This
indicated that there is significant scope for both BSC and the private sector to expand their
operation.

The performance of the IWT in term of passenger and cargo transportation is satisfactory. The
sector served 8.9 billion passengers/km and 3 billion cargo ton/km in 2007. In term of
productivity per kilometer of network, IWT has the same productivity for passenger and more
than twice the productivity for cargo compared to road transport. Inland waterways have more
accessibility compared to other surface network. Studies have also shown that 12.3% of the
rural population or 50% of rural households have access to water transport. It is the cheapest
mode of transportation, as the tariff per ton/km is Tk 1, whereas it is Tk 4.5 for road and Tk
2.5 for rail. Moreover, the use of IWT instead of road transport is estimated to save about 58.5
million liters of diesel and 155,000 tons of CO₂ per year.

In spite of having several advantageous fronts, IWT has persistently received comparatively
less fund and less attention in allocation of resources out of development and non-
development budgets. The provision has always been low and merely enough to covers only
emergency maintenance works. Until now network maintenance has been given a low priority
with share of resources allocated to network maintenance decreasing in recent years.

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In surface transport systems, segmented development, rather than a coordinated one, has been
in place after liberation. Such development neglecting IWT makes the transport sector
unbalanced. In spite of having comparative advantages of IWT over other surface modes of
transport, less importance was given to IWT compared to road and rail.

Targets and Objectives of SFYP

To develop a balanced and least cost transport system in Bangladesh, it is imperative to

improve IWT both from infrastructure and technological points of views. In spite of the
development of infrastructure facilities in IWT sub-sector during the past plan period, BIWTA
still suffers from (i) siltation problems in inland water crafts, (ii) day and night navigational
problems of waterways, (iii) shortage of passengers and cargo handling facilities including
transit shed at river ports, (iv) manual loading/unloading of cargo at river ports, (v)
underdeveloped rural launch landing stations, etc. Moreover, for transportation of containers
by inland waterways to and from sea-ports, the container handling facilities have not yet been
developed.

Targets

During the period of the Sixth Five Year Plan, activities relating to development of inland
waterways would focus on dredging and resuscitation of dead and dying river routes,
developments of inland river ports, providing navigable aids for smooth and safe movement of
cargo and passenger vessels, improvement of waterways in and around Dhaka City for making
surrounding rivers navigable and wider. All these activities will accelerate the infrastructure
development, promote economic growth, which in turn will lead to poverty alleviation.

Objectives

The main objectives of the SFYP are as follows:

a. To improve the channel of the existing waterways through dredging.
b. To improve day and night navigation of water crafts by providing navigational aids.
c. To develop inland container river ports for transportation of containers by waterways to
and from sea ports.
d. To develop river port handling facilities as well as storage facilities and introduce
mechanical equipment for handling cargo in order to save waiting time for berthing of
vessels.
e. To develop rural launch landing stations by providing pontoon facilities for smooth
embarkation/disembarkation of passengers and cargo.

Strategies and Policies of SFYP

In order to achieve the above plan objectives, the following strategies will be undertaken:

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 i. Completion of spilled-over projects within the stipulated time.
ii. Intensification of the dredging program including procurement of dredgers to develop
existing channel conditions of inland waterways and provision of navigational aids for
smooth navigation of water crafts.
iii. Establishment of inland container river port on priority basis within the first two years of
the plan.
iv. Upgrading port facilities (both cargo and passenger) as well as storage facilities so that
vessels can be loaded/unloaded without delay and
v. Introduction of mechanical equipment for handling of cargo at river ports to avoid the
head-load system.
vi. Implementation of the development projects of rural launch landing stations.
vii. Implementation of projects for improving the traditional country boat sector.

viii. Undertaking feasibility studies for providing landing facilities in the coastal areas.

PORTS AND SHIPPING

The department of shipping, Maritime safety Administration of Bangladesh under the

administrative control of the Ministry of Shipping, deals with among others ship
registrations/flagging, crewing, maritime safety, security and pollutions prevention of
international and domestic shipping. There have been substantial developments in
international and domestic shipping activities through implementation of these instruments.
The shipping department also advices the Government on shipping policy and related matters,
keeping liaison with the IMO/ILO/UNCTAD and other international shipping related
organizations and takes necessary measures for implementation of various international
conventions adopted by these organizations. The department also conducts shipping casualty
investigation and takes necessary measures in order to avoid recurrence of accidents.

Key Constraints

Acquisitions of ships is highly capital intensive. As such, investment of huge capital at high
interest rate makes this sector unattractive. Present global trend of free market economy
demands BSC to be run as a profitable commercial organization in a competitive manner. BSC
has been improving its functional efficiency and efforts are being continued to materialize
necessary expansion and development programs by raising its own sources. But it would not
be practically possible for BSC to undertake a huge project in the above mentioned fields of
investment on its own financial capabilities. Financial recession, which has been going on
world-wide since October 2008, has tremendously affected international shipping trade and as
such arrangement of fund from BSC’s won source has further been aggravated. Besides,
commercial banks and other financial institutions of both home and abroad are now reluctant
to invest in this sector. During the 1970’s and 1980’s different donor countries and agencies
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provided funds for BSC as grants or soft term loans for purchase of vessels through the
government. However, currently it is difficult to obtain grants or soft term loan for this
purpose.

Objective for SFYP

The main objectives of the Department of Shipping are:

i) To regulate and promote the maritime shipping of Bangladesh by discharging flag, port
and coastal state responsibilities and ensuring safe, secure and efficient shipping on clean
ocean.
ii) To provide navigational aids for safety of sea-going vessels, coastal vessels, fishing
boats/trawlers, naval vessels, coast guard vessels within the Bangladesh waters.
iii) To streamline the maritime and shipping rules and regulations in the line with national and
international requirement in order to promote shipping and trade of the country and to
develop institutional and infrastructural facilities including ensuring inland ferry safety in
order to perform its duty effectively.
iv) To conduct country survey and inspection of all types of vessels and prepare an inland
shipping fleet profile in order to make appropriate plan to regulate them for the public
interest. The profile would include the details of the vessel including design, equipment,
inventory, classification, categorization etc.

Targets

i) To achieve the target for digital Bangladesh, the department of shipping is introducing
machine readable seafarer identity card, which will help Bangladeshi seamen’s job
opportunity on foreign flag vessel and to meet the obligation of the international
requirements.
ii) In order to provide aid to navigation, rehabilitation of the 3 lighthouses at Cox’s Bazaar,
Kutubdia and St. Martins are required. These lighthouses will be modernized and more
new lighthouses will be established at Kuakata, Ruperchar, and Chardarshok etc.
iii) Department of Shipping has an acute shortage of manpower and institutional capabilities.
So, the shipping department needs to be strengthened with adequate manpower and
institutional capabilities which include new organogram and recruitment policy, new office
space and building, development of training facilities, updating of rules/regulations and
shipping policy etc.
iv) Installation of GMDSS in Bangladesh is a decade old requirement, which will not only
enhance safety of life of all seafarers including fisherman in the coastal waters but will
also fulfill IMO, which needs immediate attention.

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Chittagong Port Authority (CPA)

Chittagong port is the principal maritime port of Bangladesh and therefore has a very special
role in our development process. It handles about 95% of the country’s sea borne export and
import trade. It is a service organization committed to provide facilities for efficient handling
of the maritime import and export of the country. It acts as the linkage between the inland and
sea transportation of goods. In future the port may also provide international transit facilities to
neighboring countries mainly Nepal, Bhutan and eastern states of India. Thus the port plays a
vital role in the economic growth of the country. However, in the context of the global
situation of trade and commerce, Bangladesh is seeking to explore opportunities to further
expand international economic activities for sustainable development, which necessitates
improved efficiency of maritime gate ways, particularly making Chittagong port more
responsive to commercial needs of exporters, importers and carriers. With the increase in
globalization of the world economy, the future growth of the Bangladesh economy largely
depends on its competitiveness and relative efficiency compared to other economies. The
efficiency in the utilization of principal port can contribute significantly to the efficiency and
competitiveness of the economy as a whole. So it is imperative to upgrade the efficiency of the
Chittagong port keeping in view of its vision to become competitive transport hub of the
region in the near future.

Projected growth of container traffic in the Chittagong Port is shown in Table 4.7. From the
above forecast it is observed that at the end of the terminal year of the SFYP, the Chittagong
Port Authority (CPA) is likely to handle about 48 million tons of cargo including about 1.8
million TEUs of containers for which existing facilities are adequate. As the volume of cargo
at the port is increasing manifold, major expansion facilities are to be required during the
SFYP to meet the demand beyond the plan period. Nevertheless, the growth rate of cargo must
be related to the targeted rate of growth of GDP of the economy.

Table 4.7: CPA Traffic Projection

Financial Year Import Export Total Number of Containers
( Mill. M.Ton) ( Mill. M.Ton) (Mill. M.Ton) (In TEUs)
2010-11 30.77 4.24 35.01 1,390,447
2011-12 33.14 4.62 37.76 1,497,335
2012-13 35.65 5.07 40.72 1,600,550

2013-14 38.26 5.53 43.79 1,710,533

2014-15 41.15 6.05 47.2 1,833,000
Source: Chittagong Port Authority

Objectives

In the back drop of the traffic forecast up to 2014-2015, the main objectives of SFYP related
to Chittagong Port are:
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• To maintain and improve the navigability of the channel through capital dredging and
regular maintenance dredging.
• To develop efficient inland distribution of container traffic by three modes of transport viz;
road, rail and IWT to relieve the congestion problems being experienced by Chittagong
port as well as to reduce high dwell time of container in the port.
• To increase container handling capacity through expansion of terminal/yard facilities,
acquisition of modern container handling equipment and procurement of harbor crafts and
vessels to ensure improved operating system.
• To set up ICD/CFS by the public/private sector at all potential cargo distribution centers
across the country to decongest the port.
• To involve private sector in port management and port development infrastructure on
BOO/BOT/PPP model for which a clear, reliable and transparent policy guideline is to be
approved by the Government.
• To improve institutional capability in training, planning, safety and environment
management control in the port.

Strategies

In order to achieve these objectives of the SFYP, the following strategies will be adopted:
• Due to ever increasing throughput of cargo/container, Chittagong port is subjected to
heavy pressure in respect of efficient handling of the country’s sea borne traffic and it is
already operating beyond its capacity. Particularly, the lack of hinterland facilities for the
transportation of containers to and from Chittagong Port has added a serious problem
resulting in stuffing and un-stuffing of 90% containers in the port premises and gives rise
to container congestion at the port. Consequently, door to door delivery of containers,
which is the prime objective of containerization, is being frustrated severely. This situation
cannot be improved by CPA alone. Contribution from the Roads and Highways
Department and Bangladesh Railway is also required. Hence to achieve objectives of
SFYP, these problems need to be addressed on priority basis by establishing an integrated
and effective multi-modal transport network for inland movement of the containers to and
from the port.
• To provide facilities and services to the international shipping lines and other concerned
agencies steps will be taken for creating adequate physical facilities (i.e. terminal, jetties,
cargo/container handling equipment) and maintaining adequate water depth in the
navigational channel. The facilities provided by the port are influenced by external factors.
Due to change in shipping technology and technique in handling of cargo/container, the
port facilities will have to geared up to keep pace with such changes.
• Tariff structure of the port will be revised periodically to meet the increases in operational
cost and also to generate revenue surplus for financing its development projects to be
implemented during the plan.

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• Steps will be taken to delegate more authority to CPA, so that they may be able to use their
own financing for investment in handling facilities and replacement investment which are
regarded as essential to improve the productivity and generate adequate rate of return.
• In order to encourage private sector participation in the port development activities some
regulatory framework should be initiated. Even in some areas policy guidelines is to be
made by the Government to attract foreign investors on the projects like BOO/BOT/PPP
model.

Mongla Port Authority

Mongla Port plays a vital role in the field of trade, commerce and economy of the country. The
Port initially established as an anchorage port turned into land based port with commissioning
of port jetty in Mongla in 1983. By river route and road, Mongla port is in a unique position to
serve all parts of the country as well as Nepal, Bhutan and boarder areas of India.
The current situation that encompasses the operation at Mongla port includes:

• Less distance to hinterland and has the advantage of having free river ways throughout the
year.
• Protected by Sundarbans which in turn is conducive towards safe operations and is
sheltered from freshet, cyclone and flood
• Large channel available for anchorage and loading-unloading facilities on both sides of the
ship.
• Good river transport connection throughout the year with all inland ports.
• Huge infrastructure facilities available for handling container and specialized cargo.
The port is also subject to comparative operational efficiency which includes:
• No congestion of ships, container and cargo.
• No constraint in berth and less “Turn Around Time”.
• The port is operational round the clock.
• Container dwell time is in the limit of 6 days.
• Private jetty facilities prevail for handling Clinker, Gypsum, Fly ash, Gas, etc.
• Huge land available for establishment of private jetties within and outside port arena.
• Huge spaces for storage of cargo are available.
• Easy cargo handling opportunity at anchorage and mooring buoy.
• Ships ETA and ETD are maintained strictly.
• Documentation system has been simplified to reduce time.
• Wide scope of handling and storage of motor vehicle.

Key Constraints

• Rapid siltation in the long channel is a serious navigable problem for this port. The depth
of Pussur River at the left bank where the port facilities are located was adequate for
berthing of 8.5 meter draught ships. Due to rapid siltation, safe passage through the
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 channel and berthing of ships in anchorage, mooring buoys and jetty have become difficult
after commissioning of the Farakha barrage.
• For routine maintenance, dredgers owned by Port authority are essential for continuous
maintenance of the channel which is needed for sufficient navigability. Thus procurement
of dredgers has become a necessity for Mongla Port.
• The effect of depreciation of equipment over the years which were procured during the
commissioning of the jetty in 1983, have resulted in the equipment becoming obsolete. As
such, there is a shortage of cargo handling equipment and the present equipment is too old
to provide adequate service.
• Interruption free access to different modes of transport infrastructure is essential for the
optimal operation of Mongla Port. With the construction of the Rupsa Bridge and Pakshi
Bridge road link has been established, but no initiative has yet been taken for rail
connection.
• For smooth movement and efficient operation of ships in the channel, providing pilotage
service, hydrographic survey, fire fighting and installation of buoys at various points of the
Pussur Channel is essential. The existing crafts are too old to provide adequate service.

Improved Infrastructure Requirement for Better Business of Mongla Port

Substantial amount of food grain are imported and dispatched to the hinterland through this
port every year. The export of frozen fish through this port is also increasing over time.
Recently government has decided to import significant portion of food grain and fertilizer
through this port. For smooth and efficient handling of food grains and systematic distribution
of food, separate food jetties and silo are to be constructed at Mongla port with urgency.

Due to lack of railway link from Mongla to its hinterland, quick transportation of cargo could
not be possible. For flourishing the operation of Mongla port it is essential to establish railway
link from Mongla to Khulna and Mongla to Dhaka via Padma Bridge. Khanjahan Ali airport
has been planned to be constructed at Failahat 21km ahead from Mongla towards Khulna. For
fast movement of port users and business entrepreneurs construction work of this airport
should be expedited.

Mongla port is in unique location to offer excellent transit for international trade of Nepal. The
government of Nepal is interested to use Mongla for its connectivity trade. For attracting
transit trade of Nepal, Bhutan and neighboring border areas of India connectivity trade
arrangements are to be made among the countries. For expansion of port operation 460 acres
of land have been earmarked for Mongla export processing zone and 190.76 acres has already
been handed over on which 13 industries have been built and another 5 industries are under
construction. Sunken ships create obstacle to normal flow of water in the Pussur channel and
expedite rate of siltation. Mongla port authority has taken steps to remove wrecks from Pussur
channel. But due to lack of appropriate technology and equipment, the wrecks could not be
removed.

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 After inauguration of Rupsa and Pakshy bridge cargo transportation got free access through
Mongla port. Establishment of road link of Mongla- Mawa-Dhaka has shortened distance and
after construction of Padma bridge Dhaka traders will be interested to use Mongla port.
Besides, opening of container terminal at Khanpur-Narayanganj and Pangaon Dhaka, great
deal of opportunity will be opened up for carrying container cargo by barges and Mongla port
will pave the way of international trade and business of home and the region as well.

Objectives and Strategies

The main objective and strategy of the sixth plan is to provide modern facilities and services to
shipping and other concerned agencies with speed and efficiency through providing jetties,
godowns, yards, and modern handling technologies. In order to enable the port to meet the
challenge of modernization following strategies will be adopted :

i. Removal of wrecks from Pussur channel: During the time of liberation war and
afterwards around 15 local and foreign ships were sunk at different places in the Pussur
channel which create obstacle in normal flow in the Pussur channel, increase rate of
siltation in the channel and makes movement of ships risky. Steps will be taken to
remove those wrecks from the channel for smooth operation of ships.
ii. Navigational aids to Mongla Port: For assuring safe navigation during day and night
the port authority needs a light tower which is to be constructed and located in the
vicinity of channel Buoy B-12 a fifteen nautical miles up channel from the fairway
buoy. The light tower would be fitted with RACON and the light is visible from a
distance of 20 nautical miles. Such a light tower would assist vessels in their approach
to the Pussur channel particularly at night.
iii. Procurement of harbor crafts for Mongla Port: To maintain the daily in –coming / out
–going schedule of foreign ships more reliable vessels are required for efficient
operation and smooth functioning of the port. Steps would be taken to procure modern
pilot launch, dispatch launch, survey launch, mooring boat and self water craft for
sustaining efficient port operation.
iv. Computerization and introduction of Management Information System: Almost all
activities of the port are performed manually. In order to enhance the competitiveness of
the port measures will be taken to introduce computerized Management Information
System.
v. Replacement of cargo handling equipment: There is a shortage of crane, straddle
carrier; forklifts and other handling equipment at Mongla port and even the present
equipment are too old to provide adequate service to the port users as per their need. So,
modern handling equipment for handling general cargo and container will be procured
for smooth operation in the jetty.

Bangladesh Land Port Authority

Bangladesh Land Port Authority (Bangladesh Sthala Bandar Kartripaksha) has been created
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under Bangladesh Sthala Bandar Kartipaksha Act, 2001 (Act 20 of 2001) to make Import and
Export between Bangladesh and neighboring countries easier and better. Since inception
Bangladesh Land Port Authority started functioning under the control of Ministry of shipping.
The following 16 land ports were placed under the direct administrative control of Bangladesh
Sthala Bandar Kartripaksha (BSBK).
Benapole, Jessore • Darshona, Chuadanga
Banglabandha, Panchaghar • Birol, Dinajpur
Bhurimari, Lalmonirhat • Bora, Satkhira
Hilli, Dinajpur • Teknaf, Cox’sbazar
Sonamasjid,Chapai Nawabgonj • Bibirbazar, Comilla
Tamabil, Sylhet • Bilonia, Feni
• Gobrakura and Karaitoli,
Akhaura, Bhahmanbaria
Mymensingh
Nakugaon, Sherpur
Haluaghat, Mymensingh
It was decided by the Government that except Benapole and Bhomra remaining 14 Land Ports
would be operated through Private Port Operators on BOT (Build, Operate & Transfer) basis.

Major activities of the Land Port Authority are as follows:

(a) Formulating policy for development, management expansion, operation and
maintenance of all land ports.
(b) Engaging operators for receiving, maintaining and dispatching cargoes at land ports.
(c) Preparing Schedule of tariffs, tolls, rates and fees chargeable to the port users having
prior approval of the government.
(d) (d)
Ex Executing contracts with any person to fulfill the objectives of the Act.

Current Port Development Activities

A project titled ‘Modernization of Benapole Land Port (1st phase)’ project for infrastructural
development and extension is being implemented at a cost of TK 24.43 crore. The
infrastructural development work includes construction of four warehouses, open stack yards,
export and passenger terminals and acquisition of 6 acres of land including development. After
the completion of the project, the warehousing capacity of Benapole Land Port will increase
from 27,000 mt to 28,600 mt. Besides, project for procurement of handling equipment at a cost
of Tk. 80.21 crore is in the process for approval. Moreover steps have been taken to automate
the Benapole Land Port for efficient and transparent port operation. Under the Public Private
Partnership (PPP) initiative land ports have been leased out on BOT(Build, Operate and
Transfer) basis which is an important step towards involving private investment for enhancing
economic growth and employment generation.

Goals and Objectives of the Sixth Plan for Land Ports

Goals
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 i. Facilitating export-import through land routes for increasing volume of trade, prevention
of smuggling and reduction of evasion of customs duty.
ii. Promote and expand the area of co-operation between government and private sector in
different areas of development.

Objectives

i. Infrastructure development such as passenger jetty, cargo jetty, transshipment yard, open
yard, truck terminals, weighbridges etc.
ii. Enhance efficiency in cargo handling using modern equipment.
iii. Construction of warehouses for improvement of storage facilities.
iv. Fostering public-private partnership for effective and better service deliver.
v. Establishing road linkages for increasing the volume of trade

AIR TRANSPORT AND TOURISM

Civil Aviation Authority of Bangladesh (CAAB)

Civil Aviation Authority (CAAB) is a sub-sector under the transport sector. This authority is
responsible to ensure safe, orderly and expeditious operation of international and domestic air
traffic within the territorial airspace of Bangladesh. The authority is also responsible for
construction, expansion, operation and maintenance of aviation infrastructure of the country
up to the standard as prescribed by International Civil Aviation Organization (ICAO).

The geographical location of Bangladesh is favors the country to communicate with Eastern
and Western countries of the world. In this situation, there is potentiality for Bangladesh to
make Hazrat Shahjalal International Airport as a hub for Air Transportation. At present daily
more than 100 flights operate at Hazrat Shahjalal International Airport. Besides, more than
200 over-flying flights are operating daily in the territorial air space of Bangladesh. By
providing fuel to aircrafts and transit facilities to transit passengers at the International Airport
Bangladesh can earn a lot of foreign currency.

Policies and Objectives of SFYP

The objective of SFYP is to open more airports for international flight and to expand the
existing facilities for safe and secured operation of aircrafts. The major objectives of CAAB is
to develop Hazrat Shahjalal International Airport for operation of wide-body aircraft of
international flights, to modernize ATC and communication system, to implement CNS/ATM
based navigational aid system and to accommodate/ create parking facilities for new aircraft of
National and private airlines. Another important recent development is that Cox’s Bazaar
Airport will be improved for operation of wide-body aircraft.

To implement the above mentioned objectives, the following aspects have been given priority
in the SFYP:
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• Strengthening of existing runway, tax-way and apron for safe and secured operation of
modern aircraft.
• Construction of new-airports for better communication with remote area.
• Expansion of parking area to accommodate new aircrafts of National Airlines and
Domestic Airlines of Bangladesh.
• Expansion of passenger terminal building as well as cargo building facilities.
• Replacement of existing primary and secondary radar.
• Enhancement of operational facilities at domestic airports.
• Outsourcing of operation, maintenance and management of ground handling services at
international airports.
• Enhance the operational facilities of control tower at Hazrat Shahjalal International
Airport.
• Installation modern navigational equipment.
• Replacement of instrumental landing system (ILS) for international airport.
• Ensuring adequate cost recovery policies
• Construction of a new international airport to cope with the increasing traffic and
upcoming challenges.

Air Transport Services

The air transport services have gone through major challenges. The national carrier,
Bangladesh Biman, has experienced serious performance problems owing to inefficiencies,
corruption, overstaffing, weak management and inadequate investment. As a result, there has
been a substantial loss of passengers that has added to the financial difficulties of Bangladesh
Biman. In recognition of these difficulties, the Government has embarked on a major reform
to improve the performance of Biman while also encouraging the entry of local carriers.
Progress has been made on both counts. The operational efficiency of Biman has been
improving while private local carriers are now in operation. The Sixth Plan will build on this
progress by further improving the performance of Bangladesh Biman while continuing to
encourage private local carriers. With an open sky policy and strong global competition for
passenger traffic, better performance from Bangladesh air carriers will be imperative to retain
and even improve market share.

Tourism

Tourism brings significant benefit to the balance of payments and general economy of the
country by augmenting foreign exchange earnings and other economic activities. There are a
large number of countries even in Southeast Asian region where tourism industry is a major
contributor to GDP. In Bangladesh the situation is deplorable. Not much of tourism facilities
have been developed, particularly for the foreign tourists. As a result, contribution of tourism
industry to national income and GDP is negligible or insignificant. In recent years, the
government of Bangladesh has started actively considering development of this industry to

203
attract foreign and domestic tourists. If tourist facilities and related infrastructure could be
created the flow of tourist would be increased.

Bangladesh has much potential for development of tourism. It has many natural attraction and
many social and cultural events of interest. If these are properly developed and marketed the
tourism industry will be able to attract more international tourists and contribute to growth of
tourism in the country. Bangladesh has two very beautiful sandy beaches, one is Cox’s Bazar
and the other one is Kuakata. The Sundarbans is another landmark for the country, the largest
mangrove forest of the world, habitat of variety species of flora and fauna and a place of great
interest to the nature/safari tourists.

204
Review of Past Development Policies, Strategies, Programs/Projects
Bangladesh has huge potential in tourism. Realizing the importance of tourism the
Government of Bangladesh developed a National Tourism Policy (1992) for the development
of tourism. Besides this, the Industrial Policy of 2010 has included tourism as a priority sector.
In order to encourage private and foreign investment, some special incentives have also been
allowed by the government such as, tax exemption on royalties; tax exemption on the interest
of foreign loans; tax exemption on capital gains from the transfer of shares by investing
company; avoidance of double taxation in case of foreign investors on the basis of bilateral
agreements; remittance of up to 50% of salary of the foreigners employed in Bangladesh and
the facilities for repatriation of their savings and retirement benefits and personal assets at the
time of their return; facilities for repatriation of invested capital etc. To encourage private
sector to invest in tourism, some outlets of the Bangladesh Parjatan Corporation (BJC) have
been leased out to private sector.
In the last Fifth Five Year Plan (1997-2002), emphasis was given on the development of
integrated tourism facilities to attract both domestic and foreign tourists. Some tourism
infrastructures were established in different places such as Kuakata, Dinajpur, Mongla,
Teknaf, Benapole, Sagordari, Khagrachari, Banderban, and Bogra. Besides this, attempts
were taken to establish tourism facilities in all district head quarters.
Recently Bangladesh Tourism Board (BTB) has been established under the ministry of Civil
Aviation and Tourism to improve the tourism industry and services as well as manage and
develop the sector.
Despite this progress and the intended emphasis on tourism, the growth of tourism activities
and tourist inflows have been weak. While a number of factors including the socio-political
environment affect tourism, a key factor has been the inadequacy of tourism infrastructure due
to poor investments by both public and private sector.

Current and Future Challenges for the Sector/Sub-sector

Tourism industry of Bangladesh has been facing multiple problems. It mainly lacks proper
planning, adequate fund and infrastructure facilities, law and order situation (corruption &
terrorism) etc. However, following are the main barriers for tourism development of
Bangladesh:
• Inadequate allocation of fund in National Budget;
• Inadequate infrastructure facilities;
• Lack of Modern and Adequate Recreation & Tourist Facilities;
• Negative image of the country abroad;
• Lack of human resources in the tourism sector;
• Visa problems;
• Lack of foreign direct investment;
• Underdeveloped communication system.

205
Goals, objectives and targets for SFYP
Considering various prospective economic benefits and global competition, the present
government has given emphasis on tourism in their election manifesto.
Goals
• To develop Bangladesh as an Exotic Tourist Destination in Asia;

• To enhance contribution in GDP from 0.69 to 2 percent.

• To generate employment opportunity.

Development Strategies and Policies for SFYP

a. To establish tourism infra-structure through Public-Private Partnership Investment.
b. To build a positive image for Bangladesh in abroad.
c. To arrange various tour programs and provide information services to tourists.
d. To ease visa arrangements.
e. To create awareness for tourism development.
f. To develop tourism human resources through special academic and training programs
g. To identify and popularize new tourist products of Bangladesh;

Objectives & Targets

• To promote domestic and international tourism in Bangladesh;

• To develop human resources in tourism sector;
• To develop infrastructural facilities at tourist sites.
• To increase foreign tourist flow in Bangladesh from 4.00 lacs to 15 lacs;
• To provide on-line booking system for all hotels and tourist centre of Bangladesh;
• To enhance marketing of tourism products at home and abroad;
• To arrange better communication system by adopting modern IT based technology.
• To develop Eco-tourism in Bangladesh

DEVELOPMENT RESOURCE ALLOCATION FOR TRANSPORT SECTOR IN THE

SIXTH FIVE YEAR PLAN

The investment needs in Bangladesh infrastructure sector is enormous. The Transport Ministry
has already identified a large number of major projects in the transport sector which could be
implemented in the medium to long term (by 2021 and over two five year plans starting from
2011). In the transport sector, the amount of investment in road, railways, inland water
transport, new sea port, deep sea port, airport and Dhaka transport system development will
206
requires TK 1,321,42 crore or more than $ 17 billion (Table 4.8). A major share of the
estimated transport sector investment would be forthcoming during the SFYP.

Table 4.8: Summary of Total Investment Requirement for Major Transport Projects
during the Period 2008/09-2020/21

SLN Sector Project Cost (Tk in crore)

1 Road Sector Development 455,69

2 Railways Development 362,14
3 Inland Water Transport (IWT) Development 81,60
4 New Sea Port Development (Tentative) 600
5 Deep Sea Port Development (Short Term) 74,20
6 Dhaka Transport System Development 341,79
Total 1321,42
Source: Ministry of Communications

The resource requirements are clearly very large. While the Government gives highest priority
to energy and transport sectors and is committed to take all necessary steps in order to reduce
these bottlenecks to higher growth, the spacing of investments will depend upon mobilization
of foreign funding from multilateral sources, public-private ventures and available public
sector resources. Wherever relevant, the Government will also ensure that there is adequate
user fees and cost recovery mechanisms in place.

Based on the available resource envelope and reflecting the priority given to transport sector,
the development resource allocations in current and constant prices are shown in Tables 4.9
and 4.10 respectively.

207
Table 4.9: Development Resource Allocation for Transport Sector in Sixth Plan
(Crore taka; current price)
Ministry/Divisions 2010-11 2011-12 2012-13 2013-14 2014-15
Roads and Railways 3402 5525 6793 8660 10682
Shipping 409 221 253 298 340
Civil Aviations and Tourism 283 277 318 374 427
Bridges Division 1277 1666 2007 2514 3057
Total 5370 7689 9371 11846 14506

Table 4.10: Development Resource Allocation for Transport Sector in the Sixth Plan
(Crore taka; FY2011 price)

Ministry/Divisions 2010-11 2011-12 2012-13 2013-14 2014-15

Roads and Railways 3402 5139 5905 7069 8226
Shipping 409 205 220 243 262
Civil Aviations and Tourism 283 258 277 306 329
Bridges Division 1277 1550 1745 2052 2354
Total 5370 7153 8147 9670 11172

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 CHAPTER 5: MANAGING THE URBAN
TRANSITION
INTRODUCTION

It is widely acknowledged that Bangladesh is a rapidly urbanizing country where urban base
has expanded rapidly from 7.6% to nearly 25% between 1970 and 2005. A combination of
socio-economic, political and demographic factors is responsible for this. It reflects for
instance the redistribution of the rural and urban population. Also the growth in the magnitude
of urban economy, change in the scale and nature of economic activity and distribution of
income between regions and among classes, demographic transition and change in the scale
and nature of governance are likely to be influenced by rapid urbanization and urban
settlements patterns in Bangladesh”

With a population of about 14.3 million, Dhaka mega city currently ranks as the world’s 9th
largest city (World Urbanization Prospects: The 2009 Revision, UN). At the same time, it is
consistently ranked as one of the world’s least livable city. Although income growth is higher
and the poverty incidence is lower than the rest of Bangladesh, Dhaka still is a low income
city with large numbers of poor when compared with most mega cities of the world. Holding
the prospects for better income opportunities than most parts of Bangladesh, rapid migration is
causing Dhaka’s population to grow much faster than the rest of the country. This fast
urbanization is putting pressure on the city’s limited land, an already fragile environment, and
weak urban services. The population density is now believed to have reached around 34000
people per square kilometer, making Dhaka amongst the most densely populated cities in the
world.

Poor city management, low efficiency and massive corruption are exacerbating the problems.
Urban traffic has reached nightmare proportions, often causing huge delays in covering small
distances with associated productivity losses. Water and air pollution from poor waste and
traffic management poses serious health risks. The already acute slum population is growing
further, contributing to serious human and law and order problems.

Similar problems are emerging in other major urban centers, especially Chittagong. The
urbanization challenge unless managed well could pose a serious problem to the future growth
prospects for Bangladesh. But urbanization is also an opportunity and an integral part of the
development process. As income grows and the economy relies more and more on
manufacturing and organized services, urbanization will grow. The challenge for public policy
is to manage this natural transition of Bangladesh from an agrarian economy to a modern
economy well through appropriate institutions, programs and policies. The Government is
cognizant of this challenge. It also understands that this is a long-term challenge. The back-
log of unmet demand and new demand for basic urban services like housing, sanitation, water
supply and urban transport requires huge resources, sound planning, and strong

209
implementation capacity. These require strategic planning and implementation over a long
period. An ambitious urban development program during the Sixth Plan will be adopted. This
will lay the basis for consolidation in the Seventh Plan.

THE URBANIZATION CHALLENGE IN BANGLADESH

With an area of 147,750 square km, the agrarian economy of Bangladesh is experiencing a
very high rate of urbanization. In 1974 people living in urban areas accounted for only 8.8% of
the population (Table 5.1). By 2001, urban population was 23.10% of total population. UN
data estimates that currently 25% people of Bangladesh live in urban areas. This is indicative
of the fact that growth of urban population and labor force is increasing relative to rural
population and labor force.

Table 5.1: Growth of Urban Population in Bangladesh

1974 1981 1991 2001
Number % Number % Number % Number %
Urban 6273603 8.78 13535963 15.05 20872204 18.73 28605200 23.1
Rural 70124397 91.79 76376037 84.95 90582981 81.27 101424549 76.9
Total 76398000 100 89912000 100 111455185 100 130029749 100
Source: Bangladesh Bureau of Statistics

A study on the level of urbanization and share of national urban population along with total
urban population for each of the six divisions reveals that Dhaka Division overwhelmingly
holds the highest rank in all the census years both for level of urbanization and share of
national urban population4. On the other hand, the rank of Sylhet Division was the lowest for
both of the above-mentioned cases.

Dhaka is the largest city in Bangladesh and its capital. It is also the financial, cultural, and
business center of the country. The total urban area of Dhaka spans about 1530 square
kilometers. About 80% of the garments industry in Bangladesh, accounting for the
overwhelming majority of the country’s exports, is located in Dhaka city. Dhaka city
contributes about 13% to the country’s GDP. Per capita income and literacy rate are higher in
Dhaka than in the rest of the country, and the poverty incidence is also lower. From 1906 to
1991, Dhaka city’s area grew by 58 fold and its population grew by over 35 fold (Asian
Development Bank 2000). More recently, Dhaka’s population grew from 3.43 million in 1981
to a staggering 10.712 million in 2001. In 2005, its population was estimated to have swollen
to 12.56 million (Figure 5.1).

4
Urbanization in Bangladesh: Patterns, Issues and Approaches to Planning, Rouf and Jahan (2009)
210
 Figure 5.1: World’s Fastest Growing Megacity

Dhaka is also the fastest growing mega city5 in the world along with Lagos, Nigeria. Due to
this high growth rate, Dhaka’s share of the country’s total population has been steadily
growing, currently at over 10% (Figure 5. 2). By 2015, almost 13% of Bangladesh’s total
population, a staggering 22 million people, will call Dhaka their home.

Estimates by UN, World Urbanization Prospects, 2009 projected Dhaka to move up to the 5th position
with 20.9 million people in 2025, just behind Tokyo, Delhi, Mumbai, and Sao Paolo. The projected
populations for 2010 and 2016 have been estimated at 9 million and 10 million for Dhaka City
Corporation (DCC) area and 14.88 million and 18.00 million for the Dhaka metropolitan Development
Plan (DMDP) area.6

During the decade from 1985 to 1995, the city’s population growth rate averaged more than 7% a year,
much higher than any other South Asian mega cities and substantially higher than Bangladesh’s
average growth rate. Most of Dhaka’s growth was due to migration from rural areas. Although the
city’s population growth rate is expected to slow down, it is still projected to grow at around 3.2% per
annum, as compared with 1.7% for the country as a whole. If this projection materializes, then Dhaka
will become the third largest city in Asia and the sixth largest in the world by 2015.

5
Mega cities are defined as those urban centers with 10 million populations or more.
6
Dhaka: Improving Living Conditions for the Urban Poor, World Bank (2007)
211
 Figure 5.2: Dhaka’s Share of Bangladesh’s Total Population

Although the proportion of people living in urban areas in Bangladesh is low in a global
comparison, but the changes in the rates of growth of urban population since 1970 show that
relatively rapid urbanization is taking place in Bangladesh. One significant feature of
urbanization in Bangladesh is that urban population is increasing at different rates in different
urban centers. A considerable proportion of urban population lives in district towns and
Pourashava areas in Bangladesh. According to population census report of 2001, Dhaka
Metropolitan Area had a total population of 10.712 million comprising 37.45% of total urban
population. Next in the hierarchy, Chittagong SMA had 3.386 million or 11.84% of the total,
followed by Khulna SMA with a total population of 1.341 million or 4.69% of total, Rajshahi
SMA with a total population of a 0.70 million or 2.45% of total and Sylhet City Corporation
with 0.32 million or 1.12% of the total. All other had below 1% of the total population. Thus,
four Metropolitan Areas together with Sylhet City Corporation population comprised 57.55%
of the total urban population. There were 33 towns with population above one lac of which 7
had population of above 5 lac, 26 with population between 1 to 4 lac, 50 with population
between 50 thousand and one lac, and 116 with population between 25,000 and 50,000 (Table
5.2). There were 332 urban centers with population below 25,000. Populations of many towns
were more or less stable and there were depopulation in 15 districts during the decade 1991
and 2001. These suggest that there is ample scope for the development of new small satellite
towns and expansion of small existing intermediate towns or urban centers around the big
cities or in prospective regions to reduce excessive urbanization pressure on large cities. In

212
order to succeed, this policy must be carried out through comprehensive study, planning and
effective urban management systems.
Table 5.2: Number of Urban Centers by Census Year and Size Classes
Size Classes Number of Urban Centers
Census Year
1951 1961 1974 1981 1991 2001
5,00,000 and over -- 1 2 3 4 7
1,00,000 –4,99,999 2 3 4 10 14 26
50,000 –99,999 2 5 14 23 26 50
25,000 –49,999 14 16 23 45 76 116
Under 25,000 45 53 65 411 402 332
Total 63 78 108 492 522 531
Level of Urbanization 4.33 5.19 8.78 15.54 20.15 23.1
Source: Bangladesh Bureau of Statistics

Driving Forces behind Rapid Urbanization in Bangladesh

A major cause of urbanization in Bangladesh is that the agriculture sector is no longer able to
absorb the surplus labor force entering the economy every year. Inability of the agriculture
sector to provide sufficient employment or sufficiently high household incomes to cope with a
growing number of dependents can encourage people to seek employment outside agriculture.
In the case of Bangladesh the rural to urban migration has contributed to more than 40 percent
of the change in urban population. The lure of employment opportunities existing in these
cities is another reason for urban migration.

Most of the industrial establishments and businesses as well as business services are
concentrated in the largest cities. Dhaka alone accounts for 80 percent of the garments
industry-the mainstay of manufacturing in Bangladesh.7 The domination of business services,
particularly finance and real estate services is considerably higher in the four major cities
relative to the rest of the country.8

Despite the fact that majority of the country’s population live in rural areas, the importance of
the traditional rural sector has been declining over the years. The share of the agricultural
sector in GDP has come down from about 60 percent in 1972-73 to only 17 percent in 2009.
The urban sector led by non-agricultural activities (commerce, trade, industry service etc.)
accounts for a relatively larger share of GDP compared to its rural counterpart. Its contribution
to GDP has increased from a low of 25 percent in 1972/73 to over 50 percent in 2009.

Household income in urban areas is also found to be much higher than in rural areas. Report of
the household income and expenditure survey 2005 (BBS, 2007) indicated that monthly
income per household in urban areas was Tk.10463 compared to Tk. 6095 in rural areas. The

7
Dhaka Urban Poverty: Land and Housing Issues. Draft Paper, World Bank (2005).
8
Bangladesh: Strategy for Sustained Growth, World Bank (2007).
213
distribution of income in urban areas is however, more skewed than in rural areas. Thus Gini
coefficient of income in 2005 was 0.497 in urban areas compared to 0.393 in rural areas. This
is not unusual due to large scale migration of poor people into urban areas from economically
depressed areas of the country.

Although rising levels of urbanization and rapid population growth in urban areas have often
been considered problematic, it is a fact that these areas generally have a significantly higher
concentration of nation’s economic output than their population. Urban areas also account for
a disproportionate higher share of national economic production and are the main sources of
economic growth in most countries. This is also no exception for a developing country like
Bangladesh where urban dwellers constitute about 25 percent of the total population of the
country, but their contribution to GDP is more than 50 percent. National economic growth is
thus closely correlated with urbanization.

Urban Sector and the Emerging Challenges

Drastic changes in the physical, economic and social structure in the urban areas resulting
from rapid urbanization has been posing serious challenges for sustainable urban development.
Urban areas are now afflicted with innumerable problems ranging from law and order situation
to deteriorating environmental conditions. Although majority of the urban centers face such
challenges, severity of the problems vary depending on the size of the centers.

The environmental problems of urban areas have direct and immediate implications for human
health and safety, especially for the poor, and for business productivity. Urban environmental
problems are of central concern for policy makers since adverse environmental conditions
resulting from inadequate waste management, poor drainage, air pollution, lack of access to
safe water and sanitation, exposure to excessive noise level, traffic congestion as well as
inadequate health services exact a heavy toll on the quality of life.

The impact of urbanization is felt more intensely in major cities of the country. In Dhaka, for
example, the quantity of solid waste generated at present varies between 3000 to 3500 tons per
day. DCC is capable of collecting only 50% of this waste, leaving the remaining half
unattended. A part of this waste either remains in the streets or on nearly open ground. Some
of the waste flows to the open drains and blocks the normal drainage flow. As a result, water
logging sometimes disrupts the normal city life for days during monsoon. The serious health
hazard posed by this situation is of major concern.

The situation with respect to water supply is also quite unsatisfactory. The Dhaka Water and
Sewerage Authority (DWASA) was capable of supplying only 1500 million liters of water in
2004 (75% of demand) per day for the population of about 13 million while the demand of the
consumers was 2000 million liters per day. Only a limited segment of the population is
enjoying adequate supply of water while for the rest of the population the water supply is quite
inadequate. The situation in low income communities is much worse. The supply of piped
water at the Pourashava level is also extremely unsatisfactory. Only about 35% of the
214
Pourashavas have some facility for supply of piped water and that is also in a very limited area
in each of these Pourashavas. In 2005 only 28.8% of the households in urban areas had
connection to piped water supply.

Extreme traffic congestion on urban roads is a major challenge for big as well as intermediate
urban centers in Bangladesh. Rapid urbanization in Bangladesh during the last few decades
increased transport demand quite significantly leading to manifold increase in the number of
motorized and non-motorized vehicles on the streets. The increase in the number of vehicles
without concomitant expansion of road facilities has led to severe congestion on roads and
deterioration in urban environment.

The situation further deteriorated due to insufficient public transport facilities and weak
management of traffic. Non-existence of transport planning and inefficient traffic engineering
result in low quality traffic management. Mass transit facilities are poorly organized and
dominated by slower forms of vehicles such as rickshaws. Buses are in short supply and there
is inadequate metro or rail system to handle day-to-day commuter traffic in big cities.

One of the major problems that the urban residents are facing is the lack of access to serviced
land which is posing as an obstacle to their meaningful participation in the urban economy.
The urban land market which directly affects the urban environment and quality of urban life
suffers from many distortions due to lack of proper land development and management
policies including lack of planning and slow provision of infrastructure and services, thus
leading to unplanned or ribbon development of land in the urban periphery. Inadequate supply
of serviced land in the market leads to land speculation which often prices the poor out of the
formal land markets into the informal land markets which are characterized by slums and
squatter settlements. During the last four decades the price of land in urban areas increased by
as much as 80 times. The level of price rise, however, varies with the area and depends on a
number of local factors including the level of services available. Of particular importance are
the width of the main road, width of the access road, distance of the area from the main road
and duration of water logging. Other factors influencing land value to a lesser extent include
the type of neighborhood (planned or unplanned), distance of the nearest market and distance
of the nearest school.

Ever increasing land price has also contributed to the deterioration of housing situation in
urban areas. Housing deficit in urban areas was estimated to be about 0.95 million units in
1991 which increased to about 1.13 million units estimated in 2001. The dismal housing
scenario has also been a major factor contributing to significant homelessness in urban areas.

Apart from the existing huge shortage in housing stock, the majority of the dwelling units is
structurally very poor, lack services and utilities, and built without proper planning. According
to BBS (2007)9 only 24.24 percent of the houses in urban areas in 2005 were pucca (made of
brick/cement) compared to 71.68 percent houses made of corrugated iron sheet/wood and 4.08
9
Household Income and Expenditure Survey- 2005, BBS (2007)
215
percent made of straw/hay/bamboo etc. Rapid growth of urban population and consequent
demand for land and housing has made the situation even worse, particularly in big cities.
Very few households have access to land and credit facilities. The situation is particularly
worse for the lower income group and the poor who live on marginal settlements built by
small land developers or by the occupants themselves without any security of tenure. Due to
lack of tenure, the poor cannot meet the need for guarantees of loan repayment. This puts most
conventional sources of credit for housing construction out of the rich of the poor resulting in
lower level of housing investment. This led to overcrowding, lower quality of housing units
and the proliferation of slums and squatter settlements.

URBAN POVERTY IN BANGLDESH

Poverty in Bangladesh, as in most other developing countries, has long been associated with
rural areas. But with rapid urbanization during the last few decades, poverty has increasingly
been urbanized by way of transfer of the rural poor to urban areas. But manifestation of urban
poverty is often more appalling than that of rural poverty. Urban poverty is invariably
associated with poor quality housing.

Using the upper poverty line, BBS10 estimated the Head Count Rate (HCR) of incidence of
poverty as 31.5% at national level, 35.2% in rural areas and 21.3% in urban areas (Table 5.3).
There was a reduction of HCR by 8.5% point at national level, 8.6% point in rural areas and
7.1% in urban areas during the period from 2005 to 2010. The estimates of Head Count Rate
using the upper poverty line show that in 2010 Barisal division had the highest incidence of
poverty, estimated at 39.4% followed by Rajshahi division (35.7%) and Khulna division
(32.1%). Chittagong division had the lowest HCR of incidence of poverty (26.2%) followed
by Sylhet division (28.1%) and Dhaka division (30.5%). The incidence of urban poverty was
also highest in Barisal division (39.9%) followed by Khulna (35.8%) and Rajshahi (30.7%)
divisions.

Table 5.3: Poverty Head Count Ratio by Divisions, 2005-2010

2005 2010
Division
Total Urban Rural Total Urban Rural
National 40.0 28.4 43.8 31.5 21.3 35.2
Barisal 52.0 40.4 54.1 39.4 39.9 39.2
Chittagong 34.0 27.8 36.0 26.2 11.8 31.0
Dhaka 32.0 20.2 39.0 30.5 18.0 38.8
Khulna 45.7 43.2 46.5 32.1 35.8 31.0
Rajshahi 51.2 45.2 52.3 35.7 30.7 36.6
Sylhet 33.8 18.6 36.1 28.1 15.0 30.5
Source: Bangladesh Bureau of Statistics, HIES 2005 and HIES 2010

A comparison of incidence of poverty in 2005 and 2010 indicates some significant differences

10
Household Income and Expenditure Survey- 2010
216
in the pattern of urban poverty reduction. Chittagong division experienced the most rapid
reduction in urban poverty. At 11.8 percent, Chittagong now has the lowest incidence of
urban poverty. Rajshahi and Khulna divisions also experienced significant decreases in urban
poverty. Thus, the incidence of urban poverty in Rajshahi division came down from 45.2% in
2005 to 30.7% in 2010 while the incidence of urban poverty in Khulna division came down
from 43.2% in 2005 to 35.8% in 2010. As compared to these good performers, Sylhet and
Dhaka experience modest improvements in urban poverty reduction while in Barisal the urban
poverty rate has remained nearly stagnant at an alarming 40% rate.

Most of the urban poor live in slums and squatter settlements characterized by substandard
living conditions. According to the UN, 31.6 percent of world’s urban population lived in
slums in 2001. In the developed regions, the proportion was only 6 percent compared to 43
percent in the developing regions. The percentage of urban population living in slums and
squatter settlements may, however, vary across countries depending on local definition of
slums. Even within the same country variations may be observed. Slums and squatter
settlements are found in all major cities in Bangladesh although their concentrations may vary
depending on the size of cities. The largest concentrations are found in Dhaka followed by
Chittagong, Khulna and Rajshahi. Secondary cities or district towns also have significant
concentrations of slums and squatter settlements. CUS in its survey of 2005 found 4300 slums
and squatter settlements and about 2.8 million slum dwellers in Dhaka City Corporation area.
The same survey found 1814 slums in Chittagong City Corporation with about 1.8 million
slum dwellers followed by Khulna City Corporation having 470 slums with 0.17 million slum
dwellers and Rajshahi City Corporation having 539 slums with 0.148 million slum dwellers.

Majority of those living in slums are very poor and nearly 80 percent of the households have
income below the upper poverty line. More than 50 percent of the slum dwellers earn less than
half of the poverty line income while about 25 percent of them are in extreme poverty and
destitution11. More than 90 percent of the income earners are engaged in informal sector
activities. They work mainly as rickshaw-pullers, transport workers, hawkers, day laborers,
small factory workers, construction workers, etc. Many of the female members of slum
households in Dhaka and Chittagong are employed in the formal sector garment factories and
in very large numbers in domestic work as maids. What is interesting, however, is that few
among the male slum dwellers remain unemployed because of their easy access to informal
sector activities. This is perhaps the most important factor stimulating rural to urban migration.

POLICY AND REGULATORY FRAMEWORK IN THE URBAN SECTOR

Policies and regulations for urbanization have evolved in response to problems faced rather
than on the basis of a vision and a long-term road map. After partition of India in 1947 Dhaka
became the provincial capital and experienced significant population increase. This led to
major infrastructure development and building activities. In order to regulate and control urban
development activities the government enacted legislations and framed rules which included
11
CUS Bulletin 48, 2005
217
the building construction act 1952, the Town Improvement Act 1953 and the Building
construction rules 1953. The Building Construction Act 1952 provided for the prevention of
haphazard construction of buildings and excavation of tanks which are likely to interfere with
development in certain areas. The Town Improvement Act 1953 provided for the
development, improvement and expansion of the towns of Dhaka and Narayanganj and certain
areas in their vicinity and the formation of a board of trustees. The Building Construction
Rules 1953 were made to facilitate exercise of powers conferred by the Building Construction
Act 1952.

In 1959, Master Plans were prepared for Dhaka, Chittagong, Khulna and Rajshahi cities. This
was a major venture for guiding the overall development of the four major cities. But in course
of time, especially after independence of Bangladesh in 1971, these plans were found to be
inadequate with regard to population growth and land use changes. Despite rapid urbanization
in the country there was no initiative to plan or control urban development activities during
1970’s and 1980’s. It was only after 1990 that some steps were taken for control of
development in big cities. These included preparation of development plans for Dhaka,
Chittagong, Khulna and Rajshahi cities, and formulation of Building Construction Rules
(1996), Private Residential Area Development Rules (2004) and Dhaka Metropolitan Building
Construction Rules (2008). The Bangladesh National Building Code (BNBC) which was
prepared in 1993 came into force in 2006 after some modification. Other legislations which
are relevant for the urban sector include Bangladesh Environment Protection Act 1995
(modified in 2000) and the Wetland Preservation Act 1998.

In intermediate and smaller urban centers, the Pourashavas are responsible for preparing and
implementing Master Plans and carrying out development control functions. The Pourashava
Ordinance 2008 has given the Pourashava wide responsibilities in town planning and
development, public health and sanitation, water supply and sewage disposal, maintenance of
public infrastructure and amenities. It is now mandatory for the Pourashava to prepare Master
Plans within five years from the date of creation of a new Pourashava or from the date of
enforcement of the Ordinance for the old or already created Pourashava.

One of the main reasons for haphazard urban growth in Bangladesh is the lack of proper
planning. In the area of urban planning, the Pourashava Ordinance has empowered the
Pourashvas to prepare Master Plan for development, expansion and improvement of any area
within its jurisdiction and impose restrictions, regulations and prohibitions with regard to the
development of sites, and the erection and re-erection of buildings. But due to lack of technical
manpower and equipment, no Pourashava has been able to prepare and implement a Master
Plan on their own.

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INSTITUTIONAL FRAMEWORK FOR URBAN GOVERNANCE AND MANAGEMENT

Central Government Agencies: National level agencies provide services to different urban
areas including city corporations, Pourashavas and other urban centers as part of their national
responsibilities. Some of the important national agencies are Urban Development Directorate
(UDD), National Housing Authority (NHA) and the Public Works Department (PWD) under
the Ministry of Works, the Department of public Health Engineering (DPHE) and the Local
Government Engineering Department under the Ministry of Local Government, Rural
Development and Cooperatives, the Roads and Highways Department under the ministry of
Communication, the Directorate of Environment under the Ministry of Environment and
Forest and the power Development Board under the Ministry of Energy and Mineral
Resources. Other Ministries such as the Ministries of Commerce, Education, Finance,
Agriculture, Youth and Sports, and Water Resources Development are also actively involved
in the process of urban development mainly through their regional and local level agencies.

Special Purpose Authorities: There are also some special purpose agencies that provide
special services to the city dwellers. These are Water Supply and Sewerage Authority,
Electricity Supply Authority, Road Transport Authority, etc. There are two water and
sewerage authorities i.e. DWASA and CWASA which are working in two metropolitan cities
of Dhaka and Chittagong respectively. Two other agencies involved in the development
activities of Dhaka Metropolitan Area are Dhaka Transport Coordination Board (DTCB) and
Bangladesh Bridge Authority. DTCB is mainly responsible for planning and development of
transportation facilities within the metropolitan area while the Bangladesh Bridge Authority is
responsible for constructing flyovers, elevated expressways etc.

Urban Local Governments: Two types of local government institutions exist in Bangladesh
e.g. urban and rural. The urban local governments are of two types. In the Divisional Level,
the City Corporation functions whereas Pourashvas function in other towns. At present there
are 6 City Corporations and 309 Pourashvas in the country (Table 5.4). Pourashvas or
Municipalities again are classified according to financial strength. In addition, there are also
some urban centers that are under Cantonment Boards.

At the local Level, Pourashava is the basic planning and development authority. Through the
Pourashava Bill 2009, the Pourashava authorities were empowered to prepare Master Plan,
implement development schemes and exercise building control. A Pourashava consists of a
Mayor, Councilors whose number is fixed by the government and women Councilors of
reserved seats. The Chairman and Councilors of a Pourashava are elected by direct election on
the basis of adult franchise. The Pourashava (Municipal) Act, 2009 has given the Pourashavas
wide

219
 Table 5.4: Hierarchy of Urban Local Governments
Mega City For example: Dhaka Metropolitan Area
City Corporations at Divisional For example: Dhaka, Chittagong, Khulna, Rajshahi and
Level Barisal
Pourashvas (Municipalities) Number of Pourashvas – 278 in 2001, 309 at present
Category determined by income Annual income level
level
Class I Pourashvas Average Population (2001) – 88,907
Class II Pourashvas Average Population (2001) - 41,275
Class III Pourashvas Average Population (2001) - 25,466

responsibilities, but the administrative, financial and technical capabilities of the Pourashava
are not adequate to meet the challenges associated with rapid urbanization in the country.

Development Authorities: Pourashava were originally created for planning and management
of urban areas. Later on separate planning and development organizations were created for the
cities of Dhaka (RAJUK), Chittagong (CDA), Khulna (KDA) and Rajshahi (RDA). The
development authorities in these cities are authorized to undertake local urban planning as well
as infrastructure and site development activities for housing, commercial and industrial use.
The authorities are also empowered to exert development control functions. The effectiveness
of these authorities, however, is generally limited by such factors as inadequate management
and financial system, multiplicity of institutions with urban development function within their
jurisdictions, uncoordinated development, lack of integration with other agencies, inadequate
manpower and lack of public participation.

A REVIEW OF PAST POLICIES AND PROGRAMS FOR MANAGEMENT OF

URBANIZATION

During the last two decades, Bangladesh has followed broad sector directions while policies
on specific themes have been issued periodically. The national Housing Policy 1993 aimed for
“housing for all” and recognized the importance of planned development of human
settlements. The Urban Management Policy statement 1994 envisioned sustainable and
equitable urban development through decentralized development, public awareness and sector
participation. Later on, the government updated the statement and issued Urban Management
Policy Statement 1999 which provides a basic policy framework to guide and sustain the
process of gradual decentralization. The purpose of this policy statement is to improve upon
and augment the existing policy statement, with a view toward efficient urban management
and increased decentralization in the longer term. The National Urban Sector Policy drafted in
2006 envisioned a decentralized and participatory process of urban development in which the
national and local government, private sector and civil society play complementary roles. The
policy prescribes far reaching actions on multiple dimensions of urban management and
national level institutional changes and public participation structures at the city and sub-city
220
levels. This draft National Urban Sector Policy initiated by the Local Government Division
will go to cabinet for its approval and will be adopted within the SFYP period.

Other developments relevant to the urban sector includes the national Policy for Safe Water
Supply and sanitation (1998), Water Supply and Sanitation Sector Development Plan, National
Policy for Arsenic Mitigation, The National Sanitation Strategy and the pro-poor water and
sanitation and cost sharing strategies. Many of these policies have attempted to give coherent
directions to developments in the urban sector including adoption of principles like devolution
of powers, resources and responsibilities to local governments and community groups, treating
resources as economic goods, using awareness generation and mobilization and motivational
tools for sanitation and solid waste management, tempering off subsidies on sanitation
hardware and promoting private-public partnerships. The recommendations made by the
Committee on Urban Local Governments for long-term municipal development and urban
sector programming, property tax system, improved financial system management etc. are
now under active consideration of the government.

Past urban sector interventions mostly tried to address the long neglected infrastructure
maintenance and rehabilitation needs and to develop the capacity of the Municipalities
especially to raise income, improve financial management capacity and design municipal
services in a planned way. But not much has been done to establish strong urban institutions
that are capable of meeting the future service demand of the projected urbanization pattern.

Lessons Learned from Past Development Initiatives and Key Constraints

Municipalities in Bangladesh have witnessed nearly two decades of urban infrastructure

initiatives with STIDP-I and II, MSP and the on-going UGIIP-1 since 2003. The MSP and its
successor institution, Bangladesh Municipal Development Fund, presented a model of
supporting decentralization especially by opening up access to infrastructure funding based on
objective financial and institutional criteria outside the government’s inter governmental fiscal
transfer frame. UGIIP-1 made a radical departure from earlier initiatives in linking
performance of Municipalities in achieving action based governance improvements to access
infrastructure funding in phases.

Focusing on governance improvements and a performance based approach urban infrastructure

improvements have proved very successful; (i) it addresses a wide range of areas
simultaneously from improved participation of various stakeholder groups in service delivery
to increased financial accountability and improved administrative procedures; (ii) local
governments feel full ownership in improving governance reforms, considering these reforms
as an opportunity to improve their financial and administrative shortcomings. They have been
able to adapt to the new governance practices within a short period of time. The following
lessons learned: (i) The performance of the Municipalities has been particularly good in areas
where the identified governance indicators are concise and output oriented; (ii) municipalities
took greater ownership and interests in areas where their legitimacy and performance in the

221
local public eye improved immediately and turned out to be credible; (iii) adopting governance
improvements require substantive and timely capacity building inputs.

Based on an extensive review of previous projects focusing on governance improvement and a

performance based approach, the following opportunities for improving this approach have
been identified; (i) ensure that mechanisms are in place to deepen participatory planning
ensuring prioritization of the needs of the poor; (ii) refine the governance improvement action
plan to include more qualitative achievements and ensure that the achievements will sustain
beyond project implementation; (iii) inculcating the practice of responsible financial decisions
and discipline through financing and repayment mechanisms; (iv) strengthening citizen’s
interface and accountability of the municipalities; (v) greater focus on capacity building of
institutions at the municipality level in particular and (vi) improvements in O&M
management.

One of the most significant lessons is the criticality of national level support to municipalities
in terms of sector wide policy support, legislative and executive actions to enable more
effective functioning of municipalities and supportive measures to improve their finance and
financial management. In this regard the parliament has recently passed the Pourashava Bill
2009 and City Corporations Bill 2009.

Performance During Previous Plan Periods

Ministry of Housing and Public Works

Of the two Ministries mentioned earlier responsible for urban development and management
activities, the Ministry of Housing and Public Works is the main Government body dealing
with housing and accommodation. A review of performance of this Ministry and related
agencies during past plan periods is given below.

Performance during 1973-90. During the period, land-use master plans for 398 Thana
headquarters and master plans for 60 district towns were undertaken. Office accommodations
at 44 districts and Thana headquarters were completed and 13,918 service plots were
distributed among people belonging to low income group and about 6,860 squatter families
were rehabilitated. Besides, 17,480 flats, 252 dormitories at Thana level, 1,065 office
buildings, 2,033 union Tahsil offices and 362 thana land offices were constructed. Noteworthy
achievements during this period were the construction of 20-storied office buildings at the
Bangladesh Secretariat and the international conference centre at old Sangsad Bhaban.

222
Performance during Fourth Five Year Plan (1990-95). Achievements during this period
included:

a. Providing core houses for 1,000 squatter families at Dattapara, Tongi and developing
5,000 residential plots at Mirpur, Dhaka and 4,100 plots at Kaibalyadham, Chittagong for
low income group;

b. Construction of 3,000 residential flats in 44 newly created districts and 3,000 flats in
Dhaka for public sector employees;

c. Developing of 4,787 plots at Uttara by RAJUK;

d. Renovation of the Prime Minister’s Secretariat at Tejgaon and installation of four-channel

conference system;

e. Significant strides by private enterprises to develop housing in urban areas and low cost
housing programs by some NGOs in rural areas.

Performance during 1995-97. During this period 2,020 flats for government employees in
Dhaka were constructed and 8,480 sites and service plots were distributed to low income and
middle income groups. Achievements during this period and during the Fourth Plan period are
shown in Table 5.5

Table 5.5: Housing Sector Performance

Major areas Unit Position 4th Plan Position Position
June, 90 (1990-95) June, 95 June, 97
Housing Target Achievement
Rehabilitation of squatter Nos 6860 3620 3400 10260 10260
families
Distribution of site and “ 13918 8480 8480 22398 22398
services plots for low and
middle income group people
Government flats and “ 3120 3120 18508 20528
offices
Construction of flats Nos 17408 225 180 1245 1245
Construction of office “ 1065 950 950 2983 2983
buildings
Construction/Reconstruction “ 2033 110 60 422 423
of Union Tahsil offices
Construction/Reconstruction “ 362
of Thana Land offices
Source: Ministry of Housing and Public Works

Performance during Fifth Five Year Plan (1997-2002). Developments during this period
included:

a. Construction of 3000 residential flats at Dhaka, 30 quarters at Rangamati, Martyrs

Monument at Rayer Bazar and Banga Bandhu Convention Centre at Agargaon. A total of
16 projects were taken up with estimated outlay of Tk. 1609.18 crore. Of these, 3 projects
223
 were fully completed and 11 projects were partially completed. Two projects were not
taken up due to shortage of fund.

b. Activities by RAJUK: Construction of 1265 residential flats at Nikunja, 290 flats under
NAM Villa and NAM Village Project, development of 2600 plots at Uttara under Uttara
3rd Phase Project and construction of 2km link road from Dayagonj to Jurain, Dhaka.

c. Activities of Rajshahi Development Authority (RDA): Preparation of land use Master

Plan, construction of 1.5 km roads, distribution of 625 plots for low and middle income
groups, construction of a multi-storied office building, a truck terminal accommodating
500 trucks and an inter-district bus terminal accommodating 500 buses.

d. Activities of Khulna Development Authority (KDA): Completion of 7.05 km road,

developing of 637 plots, construction of two-storied mini-community centre, undertaking
welfare activities like development of mosque, school and monument, and preparation of
DAP (Detailed Area Plan) for Khulna City. Total project cost was Tk. 23.36 crore.

e. Activities of Chittagong Development Authority (CDA): CDA prepared DAP for

Chittagong under guidance of Chittagong Metropolitan Master Plan, Development of
Kalpoloke, Karnaphuli, Chandrima, Chandgaon Residential Areas, D.C. Hill Park,
widening and improvement of Chaktai Road, O.R. Nizam Road, Chatteshori Road, and
M.A. Hannan Airport Road.

f. Preparation of land use Master Plan for six Pourashvas, namely, Gopalgonj, Tungipara,
Kotalipara, Godagari, Kaliakoir and Patharghata by UDD.

g. Undertaking projects like construction of medical colleges and hospitals in different

districts, specialized hospitals and medical centers on behalf of Ministry of Health and
Family Welfare.

Ministry of Local Government, Rural Development and Cooperatives

The Ministry of LGRD & Co-operatives is closely involved with the various issues related to
the urban sector. A committee namely Municipal Performance Review Committee (MPRC)
was established under the chairmanship of the Secretary, Local Government Division to
monitor the performance the municipalities. A Municipal Support Unit (MSU) established in
LGED under the Municipal Services Project provides secretarial support to the committee.
MSU developed a municipal data base and regularly monitors the capacity building initiatives
undertaken by the municipalities as well as monitors the progress of infrastructure
development and maintenance works undertaken by the municipalities.

The government has been trying to remove the deficiency in infrastructure maintenance and
rehabilitation of municipalities by raising income, improving financial management capacity
as well as better service delivery. The municipalities are implementing different development
projects under Physical Planning, Water Supply and Housing (PPWS&H) Sector through
224
Annual Development Programme (ADP). The allocation and utilization of funds under ADP
for the Municipalities are shown in Table 5.6 below.

Table 5.6: Allocation and Expenditure under PPWS&H Sector in Municipalities during
2002-2009 ( Crore Taka)
Financial Year No. of Projects Total Amount of Total
ADP Allocation Expenditure
2002-03 10 169.93 148.33
2003-04 9 134.81 128.39
2004-05 13 165.13 161.67
2005-06 11 367.92 361.48
2006-07 9 322.34 302.42
2007-08 12 229.65 221.52
2008-09 9 354.68 348.98

Table 5.7: Physical Targets and Achievements of PPWS&H Sector in Municipalities

during 2002-09
Item of work Unit Target Achievement
Development of Road and Footpath Km 1326 1307
Construction of Drains Km 412 393
Construction of Bridge/Culvert M 3595 3463
Market Development Nos. 51 51
Installation of Tube-wells Nos. 3837 3835
Slum Improvement Family 18320 18320
Maintenance of Bridge/Culvert M 1514 1504
Rehabilitation of Road and Footpath Km 3218 2805

Taking the rapid rate of urban growth as well as different problems and challenges in views,
the six city corporations are implementing different development projects under both block
allocation from development budget and Annual Development Plan. The allocation and
utilization of funds under block allocation and ADP for the six city corporations are shown in
table 5.8. The six city corporations of the country have been implementing different development
projects to create better living conditions for the people in their respective areas. These development
projects include among others construction and improvement of roads, drains and footpath; waste
management; creation of recreational facilities etc.

Apart from the physical achievements shown in table 5.9, the introduction of computerized
holding tax billing, water billing, and accounting in 4 city corporations and 129 municipalities
could be considered as other milestone achievements by LGED. Another landmark initiative
by LGED during the past plan period is the preparation/updating of Master Plans of 23 district
level and 223 upazila level municipalities. This master planning process is still continuing and
will be completed during the SFYP period.

225
 Table 5.8: Allocation and Expenditure of Six City Corporations under ADP Allocation
and Block Grants during 2002-2009 (Crore Taka)
City Corporations Total Amount of Total ADP Total Amount Total Block
ADP Allocation Expenditure of Block Expenditure
Allocation
Dhaka City Corporation 1580.07 1488.90
(DCC) 472.05 472.05
Chittagong City
Corporation (CCC) 160.05 160.05 144.75 144.75
Rajshahi City Corporation
(RCC) 120.93 117.87 88.65 87.45
Khulna City Corporation
(KCC) 80.27 80.27 80.09 80.09
Sylhet City Corporation
(SCC) 147.82 147.82 22.96 22.96
Barisal City Corporation
(BCC) 65.77 65.77 32.18 32.18
Source: Ministry of LGRD&C

Table 5.9: Achievements of Development Activities of the Six City Corporations under
ADP and Block Grants during the Period from 2002 to 2009
Development Activities Achievement of Achievement of
Development Development
Activities in Six City Activities in Six City
Corporation Areas Corporation Areas
under ADP under Block Grants
Construction of Road (Km) 1617.00 1260.00
Construction of Drain (Km) 660.46 536.07
Construction of Footpath (Km) 142.28 45.54
Construction of Bridge/Culvert (Nos) 98 10
Construction of Bridge/Culvert (Meter) 1540.00 -
Construction of Retaining Wall (Meter) 3674.00 -
Construction of Retaining Wall (Nos) - 5
Installation of Street Lighting (Km) 9.0 7.50
Installation of Street Lighting (Set) 3750 1150
Installation of Traffic Signal (Nos) 18 -
Construction of Level Crossing (Nos) 3 -
Construction of Boundary Wall (Meter) 2237.00 -
Development of Playground (Nos) - 1
Construction of Palisade (Km) 5.84 1.65
Construction of Building (Sqm) 2237.00 -
Construction of Building (Nos) 13 106
Construction of Pipeline (Km) 15.00 84.00
Re-excavation of Khal (Km) 40.60 4.00
Construction of Community Facilities (Nos) 7 211
Construction of Embankment (Km) 1.04 -
Improvement of Sanitary Landfill (Nos) 1 -
Installation of Ring Latrines (Nos) - 9000
Development of Park (Acre) 3.77 22
Procurement of Equipment (Nos) 106 -
Installation of Deep Tubewell (Nos) - 446
Plantation (Km) - 28.50
Source: Ministry of Local Government

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URBANIZATION STRATEGY UNDER THE SIXTH PLAN

A review of past policies, institutions and programs suggest that the urbanization strategy
needs to change substantially to meet the challenges of future urbanization in Bangladesh. In
the past much of the focus has been on implementing piecemeal programs. Multitudes of local
government agencies, weak planning, poor governance, inadequate resources and weak project
implementation capacity have limited the progress with meeting the urban challenge. The
Sixth Plan will internalize these lessons of experience and shift the emphasis to the
development of sound urban institutions, improve city governance and emphasize urban
resource mobilization.

Improving City Governance

The key constraints to the effective functioning of the municipalities and city corporations are
unclear mandate and service responsibilities; lack of accountability; weak finances and
financial autonomy; poor coordination and control among service agencies and weak
management. These problems call for a major rethinking and wholesale change in the
management of these entities and their enabling environment.

The ability of city managers to coordinate fiscal, regulatory and administrative systems which
influence the efficiency of cities is crucial to improving the welfare of urban citizens. In this
context, cities need to be managed as standalone economies where project investments are
planned in the context of a coherent city strategy and better understanding of how urban
markets perform overall. The Government’s role in this regard will be to support initiatives to
combine local-level skills, resources and ideas to stimulate the local economy towards the
goals of job creation, poverty alleviation and redistribution; and take proactive measures to
deal effectively with changes in the national and global economies.

Thus, a key institutional reform during the Sixth Plan is that the municipalities and city
corporations will be organized to manage their functions on the basis of elected
representatives. For the urban centers of Bangladesh to be dynamic growth centers it is
essential that they have elected and accountable municipalities and city corporations with
clearly defined responsibilities. They must be able to attract private investment and mobilize
public resources based on service delivery and the quality of the city environment. In order to
implement the strategy the Government will take steps for:

institutional reforms and decentralization of responsibilities and resources to local
authorities;

participation of civil society including women in the design, implementation and
monitoring of local priorities;

building capacity of all actors (institutions, groups and individuals) to contribute fully
to decision-making and urban development processes; and

facilitating networking at all levels

227
Promoting Balanced Development of Urban Centers

In view of the severe problem of concentrated migration and economic growth, efforts must be
made to select new centers away from the main centers (i.e. Dhaka and Chittagong
Metropolitan areas) for location of economic activities. If urban population growth is arranged
and distributed over space in cities and towns of different population sizes in a balanced
manner, the process of urbanization can be managed in a better way. Special emphasis,
therefore, will be given to the development of urban centers of various sizes and policies will
be directed towards strengthening of economic base and allied infrastructure and services in
these centers. Special Attention will be paid to supporting services – housing, education,
health etc. – again with a view to channeling those investments which are made at these
centers in the most productive manner. Creating employment opportunities in these urban
areas would require integration of local economic development and poverty alleviation
initiatives. In order to achieve this, the government will pursue growth paths that encourage
labor intensive sectors of the economy, support small, medium and micro-enterprises
(SMMEs) and enforce a regulatory framework that creates an environment conducive to
investment. In addition, steps will be taken to attract private investment through investments in
infrastructure and utilities that reduce production and distribution costs within their
economies.
Urban Resource Mobilization

A major constraint on urban services is the lack of adequate funding. Even with best city
governance unless new sources of funding are found it will be difficult to meet the demand
and development needs of the urban sector. Presently, much of the financing comes from the
Government’s own budget; property taxes and user charges for urban services are very
limited12. The Sixth Plan will emphasize resource mobilization through much better
implementation of the property tax and stronger cost recovery of key urban services. The
policies include steps to improve land and property valuation, better tax collection through
improvements in property tax administration, and setting prices for urban services with due
regards to cost. Additionally efforts will be made to reduce efficiency and eliminate
corruption in the collection of property taxes.

Developing a Sound Real Estate Market

The target of providing decent housing to the rising urban population rests to a large extent
upon development of sound real estate or housing market in the near future. The private
housing market which was constrained by finance constraints is recently emerging as a major
activity. Presently around 80 percent of the housing purchased is from self-finance. As such
the housing market serves mostly the upper and middle-income households. Therefore to meet
the housing needs of the lower income households the House Building Finance Corporation
will be restructured and housing finance in the private sector for lower income households will
be encouraged.

12
Ahmed, Sadiq et. al.2007. Making Dhaka Livable. University Press Limited, Dhaka
228
Facilitating NGO Involvement in Housing

NGO involvement in housing programs in Bangladesh has been limited. However, some
programs exist that offer interesting insights into solutions to this issue. A promising approach
to providing shelter solutions to the poor is the type of projects run by Nari Uddaog Kendra
(NUK) which offers cost-effective rental hostel accommodation for female garment workers.
The feasibility of replicating such initiatives will be explored as a housing strategy.

Taking Steps for Better Urban Land Management

The pressure of urban housing in the major cities, particularly Dhaka ultimately puts focus on
the government’s land management policies and practices. The limited urban supply of land is
subject to competitive claims for commercial, industrial, administrative, educational,
recreational, and military use as well as for road building besides demand for residential
purposes. As such, sound land management policies are crucial in solving urban housing
problems. The government, therefore, will take appropriate measures to promote sustainable
land-use planning and innovative land management practices, and meet the land requirements
for urban development through integrated and environmentally sound physical planning and
land use. Special emphasis will be given to improve present land registration system so that it
can provide security of ownership and tenure rights, ensure more efficient land transfers,
facilitate public control of land markets and lead to improved land use and land management.
The government will also use regulatory tools such as zoning, subdivision regulations, transfer
of development rights etc. to protect sensitive land resources, public interests, environmental
and cultural values etc. Economic incentives and disincentives (such as tax exemption, transfer
and development taxes etc.) will also be used to encourage land development in accordance
with desired objectives

Better Environmental Management

Strategic options in this area will seek to promote cleaner environment, control pollution and
protect public health from environmental hazards. Emphasis will be given on preventive
actions, that is, to develop preventive polices that can forestall future environmental
degradation; and on holistic and integrated approach, with particular attention to participatory
planning and management, public-private partnerships, capacity building and cost-recovery

Developing Sustainable Urban Transportation

Transport interventions in urban areas should aim at improving transport and traffic
infrastructure so as to meet existing and potential demands, and developing an integrated and
balanced system in which all modes (motorized and non-motorized) can perform efficiently
and each mode can fulfill its appropriate role in the system. The main objective of urban
transport strategy will be to support sustainable urban development. Urban transportation
strategies will focus on developing an integrated and balanced transportation system taking
into consideration the needs of the road system, non-motorized transport, public passenger
229
transport and mass transit issues such as a city’s balance in the locations of employment and
housing, demand management, and the roles for the public and private sectors. Reducing
congestion in city roads, especially in Dhaka Metropolitan Area, would require considerable
reduction of dependency on private automobiles, taxi cabs, baby taxies, and non-motorized
transport modes such as rickshaws. Steps, therefore, will be taken to increase the number of
large-size buses including double-decker buses on truck routes and buses of optimum sizes on
other routes. Introduction of Rapid Bus Transit through the use of high capacity dedicated bus
lanes will be given due consideration. Elevated expressways and rail-based mass transit
systems will also be considered as parts of a long-term integrated transport strategy for Dhaka
Metropolitan Area.

Making Provision of Infrastructure and Services

Basic infrastructure and services at the community level include the delivery of safe water,
sanitation, waste management, social welfare, transport and communications facilities, energy,
health and emergency services, schools, public safety, and the management of open spaces.
Strategies will be formulated to provide adequate and affordable basic infrastructure and
services focusing on demand, equity and accessibility, economic efficiency and cost recovery,
public-private partnerships and capacity buildings of local governments13.

Reducing Urban Poverty

Poverty is understood to encompass many different aspects including inadequate consumption,

inadequate income and asset base, and inadequate access to basic infrastructure and services.
Economic growth and consequent increase in income does not necessarily lead to reduction in
urban poverty. ‘poverty reducing’ measures outside of economic growth is important which,
however, depends on local institutions that can address one or more of the inadequacies as
mentioned above. The plan strategy to deal with urban poverty will promote equal access to
and fair and equitable provision of services in urban areas; and emphasize on urban policies
that ensure equal access to and maintenance of basic services, including those related to
education, employment and livelihood.

SUB-SECTORAL GOALS, TARGETS, STRATEGIES AND PROGRAMS FOR THE

SIXTH PLAN

Physical Planning and Housing

The urbanization situation, particularly the housing situation in Bangladesh is getting more
acute with every passing year. Government efforts to mitigate the problem in the past have
been far from adequate, and have been confined to areas in and around metropolitan cities.
Residential quarters for government employees can hardly meet 10 percent of the requirement.
However, private sector participation in housing especially in the metropolitan cities has been

13
Urban transport issues are discussed in greater detail in Chapter 4 on Transport.
230
encouraging. Against this backdrop, goals and objectives for urban development under the
Sixth Five Year Plan will be as follows:

Goals
a. Sustainable urban development that supports increased productivity, employment and
investment;
b. Better quality of life by improving the standard and quality of civic facilities in city
corporation areas;
c. Urban governance and management with greater accountability, transparency and
improved public participation;
d. Institutionally and financially capable City Corporations and Pourashavas;

Objectives
a. Development of low cost houses/multi-storied buildings for housing/resettlement of slum
dwellers, the disadvantaged, the destitute and the shelter less poor and in situ development
of the slums and shelters for squatters;
b. Strengthening and supporting authorities like RAJUK, CDA,KDA and RDA so as to make
them play important roles in town planning and regulation of urban development;
c. Development of sites and services for residential accommodation of low and middle
income groups of people;
d. Construction of condominiums for low and middle income groups of people;
e. Construction of multi-storied flats for sale to government employees at different places to
ease the accommodation problem;
f. Construction of housing facilities for working women;
g. Construction of low cost houses in the coastal areas of Bangladesh;
h. Involvement of the private sector with necessary incentives for its greater participation in
the housing sector

City Corporations for respective city areas undertake projects for improving urban
environment and services by developing road and road infrastructure, solid waste management
facilities, drainage system, primary health care facilities, street lighting infrastructure etc.

SFYP Targets for the Organizations under the Ministry of Housing and Public Works

The present Government with its vision 2021 has planned for housing for all by 2015. In this
context the government has undertaken public-private partnership (PPP) concept for
contributing to the household sector. To implement the vision, the Ministry of Housing and
Public Works (MOHPW) has chalked out the following activities for the organizations under
the Ministry:
231
a) In recognition of the severe land constraint, especially in the urban areas, and huge
inefficiencies in the land market including severe governance problems, the government
will undertake a systematic review of land policies and land management with a view to
undertaking corrective reforms. This review will encompass functioning of land markets,
land pricing, registration, land use regulatory policies, land taxes and other relevant
aspects. The recommendations of this review will provide the basis for systematic reform
during the Sixth Plan period.

b) The government recognizes that much of the housing supply in both urban and rural areas
will come from the private sector. There is already a very active private sector but there
are various problems relating to land availability, pricing taxation, registration etc. The
land policy review noted above will provide a long term solution to land related issues in
private housing. At the same time, other issues related to housing permits, registration,
mortgage issues, housing infrastructure, etc require government attention to create a more
favorable environment for housing supply by the private sector

c) Under the DAP, RAJUK will expand the city area to establish a planned capital city. At
the same time, to manage the acute housing problem caused by population pressure and
provide civic amenities to city dwellers including modern arrangements for car parking,
RAJUK will take up different projects for allocating 45,200 residential plots, 1,14,000
residential flats, 2,547 commercial plots, 506 administrative plots, 41 diplomatic plots,
52,624 apartments for low and middle income group people, 520 car parking spaces,
2,00,000 sft. Commercial space for offices and to connect central Dhaka to Eastern by-
pass and increase East-West road network.

d) PWD has undertaken programs to construct 1,802 residential flats for government officers
and staff on vacant land in a planned way to mitigate the acute shortage of
accommodation. To mitigate the office space crisis for Govt./semi-Govt./NGO officials
11,01,451 sft. Office space will be constructed.

e) National Housing Authority (NHA) has been addressing the housing problem through
developing residential plots in district towns and constructing high rise flats in Dhaka and
Chittagong cities. A pilot project has been undertaken to examine the feasibility of
developing housing projects in Upazila towns. Besides, a plan has been chalked out to
establish 4 satellite towns around Dhaka city under PPP. NHA is undertaking various
projects for allocating 21,248 residential flats and 6,081 residential plots.

f) CDA is in the process of undertaking various projects for construction of 1,105 residential
plots and 3,422 residential flats with its own finance.

g) KDA will undertake construction of 2,492 residential plots, 2,800 residential flats, 9,831
sqm. Commercial and office space, 19.88 km road, 40 km drainage and a botanical garden
at Fultala, Khulna.

232
h) To reduce the housing problem 1,706 residential plots and 100 flats will be constructed by
RDA, as well as construction of 14.19 km road to reduce traffic jam.

i) House Building Research Institute (HBRI) will be taking up different projects for using
fuel efficient brick and low cost house building technology, updating of National Building
Code, development of a process to recycle minimum 1% polymer materials and production
of building materials using the recycled polymers.

j) UDD has formulated Project Proposal for National Comprehensive Development Plan for
the whole country. Under this project all sectoral policies of the Government (such as
Water Policy, Agriculture Policy, Land use Policy, Housing Policy, Environmental Policy,
etc.) would be translated into spatial form which would guide the government in physical
development activities.

k) To implement the vision of the government during SFYP (2011-2015) different organs of
the government will take up projects of various magnitudes. The Department of
Architecture will play its required role by planning and designing these facilities in line
with the aspiration of the people of the country.

SFYP Objectives and Strategies for the Pourashavas and City Corporations

Major objectives and strategies of the SFYP with respect to Pourashavas and City
Corporations are the following:

Objectives

a. Development of effective road network to setup congestion free, safe and sound
communication system.
b. Development of pedestrian facilities in the cities.
c. Reduction of traffic accident.
d. Auto traffic signalization for better traffic management.
e. Sustainable parking management.
f. Improvement of solid waste management.
g. Improvement of environment & infrastructure.
h. Provision of safe water supply for the citizens.
i. Development of recreational facilities (parks, playgrounds etc.).
j. Development of modern street lighting.
k. Development of primary health facilities.
l. Improvement of drainage system to address the problems of water logging.
m. Development of Commercial complexes for expanding economic activities.
n. Infrastructure development of low-income settlements.

Strategies

To achieve plan objectives, the following strategies will be pursued:

233
 i. Establishing strong elected municipalities and city corporations in all major urban
centers. These entities will be given adequate operational and financial autonomy to
enable them to provide the services demanded by the residents.
ii. Revamping the property tax system to make this the major source of financing the
expenditures of municipalities and city corporations.
iii. Strengthening the capacities in the Ministry of local government and the Planning
Commission to support the development of municipalities and city corporations as well
as monitoring their performance to ensure accountability.
iv. Planning road infrastructure development and public transportation for all the city
corporation areas.
v. Developing comprehensive layout plans comprising all civic amenities like parks, lakes
and other recreation facilities in all city corporation areas.
vi. Improving urban environment by regulating disposal of solid waste.
vii. Creating strong mechanism for coordination of infrastructure development and provision
of utilities in all city corporation areas.
viii. Building comprehensive databases in LGD and all city corporations for urban planning.
ix. Government Khas land will be used to the maximum extent possible for solving the
housing problem, especially for poorer households.

x. Abandoned houses will be turned into multi-storied buildings by the Housing and
Settlement Directorate in phases for solving the housing problem.

xi. Necessary actions will be taken to strictly enforce the building code of 1993.

xii. Arrangement for soft loans for housing will be made for the poor; to this end, a special
fund will be created by the government;
xiii. Houses for working women will be constructed by the relevant city/town authorities.
xiv. Constructions of Public physical service structures will respond to specific needs of men
and women such as, hospitals, educational institutions.
xv. Necessary action will be taken to reduce wage discrimination.

Water Supply and Sanitation (WSS)

In order to cope with the present and future demand of safe water supply and sanitation, the
Government of Bangladesh has formulated and adopted several policies and strategies, some
of which are named below:
• National policy for safe water supply and sanitation 1998 (WSS policy)
• National water policy 1998 (NWP)
• National water management plan 2004 (NWMP)
234
• National policy for arsenic mitigation & it’s implementation procedure 2004 (Arsenic
policy)
• Sector development framework on water supply and sanitation 2004 (SDF)
• National sanitation strategy 2005
• Pro-poor strategy for water and sanitation sector in Bangladesh 2005

Bangladesh is also committed to achieving the targets of the Millennium Development Goals
(MDG). The Government is in a process of preparing a cost sharing strategy for water and
sanitation services. Meanwhile some framework and strategies like the SDF 2004, National
Sanitation Strategy 2005 and the Pro-Poor Strategy 2005 have been formulated to further
define and complement the WSS Policy 1998. The Arsenic Policy 2004 is formulated
specifically to address the widespread ground water contamination problem with arsenic. The
NWP 1998 and the NWMP 2004 give broad direction for water resources management
including a broad outline of water and sanitation sector. PRSP recognizes the importance of
water and sanitation as a means of achieving accelerated poverty reduction.

The Local Government Division of the Ministry of LGRD&C is preparing a Sector

Development Plan (SDP) for the Water and Sanitation sector for the period 2010-2025 which
is now in the process of approval. The objective of the SDP is to provide a framework for
planning, implementing, coordinating and monitoring all activities in the sector. The SDP is a
strategic planning document to meet emerging and future challenges and includes a road map
for development and a corresponding investment plan. It is prepared in line with the objectives
of Second Poverty Reduction Strategy Paper (Steps towards Change), the Sixth 5-Year Plan
and the upcoming Perspective Plan (2010-2021). SDP covers all urban and rural areas of the
country and the activities of all relevant government functionaries like the Ministries and
Divisions, government agencies such as DPHE, LGED, WASAs and the Local Government
Institutions. It also provides a framework for other players in the sector like NGOs and private
sector.

The 15 year period of SDP will have three 5-year terms: short-term, medium- term and long-
term – these terms coincide with the Sixth and the forthcoming Seventh and Eighth Five Year
Pans respectively. In these three terms gradual development of the sector will be taken up.
During the short-term, i.e. in the Sixth Five Year Plan period, the aim is to provide at least
minimum levels of service for water and sanitation to all. In parallel, institutional
strengthening will be initiated. The sector governance instruments, such as establishing legal
and regulatory framework and preparing new or revising existing policies and strategies, will
be done. Platforms for cooperation and coordination among the sector stakeholders would also
be established and a step by step approach towards Sector wide Approach (SWA) will be
initiated.

It is expected that all the further water and sanitation related national and sectoral policies and
strategies and international commitments will be aligned with SDP. The line agencies under
the Local Government Division would formulate development projects under the framework
235
of SDP, align the ongoing ones to it to the extent possible and undertake institutional
development activities accordingly.

Goals, Objectives and Targets for Water Supply and Hygienic Sanitation under SFYP

Goals and Objectives

The Sixth Plan will try to achieve the long-cherished goal of making safe water and sanitation
facilities available to all to improve quality of life. The overall goal is “Improving the health
and living standard of the people in rural and urban areas by providing access to safe water
supply, hygienic sanitation and adequate drainage system.”

Objectives are identified as the following:

• Achieve 100% coverage of Water Supply & Sanitation services throughout the country
including their safe use and effective management.
• Improve overall environment of the country.
• Achieve congenial environmental sanitation for overall development of the country in a
sustained manner.
• Ensure quality water for drinking and domestic purposes.

Water Supply and Sanitation Targets

Table 5.10 and 5.11 show the water and sanitation targets for the Sixth Plan. Full coverage by
providing minimum basic level of service in water supply sector is expected to be achieved by
2011. However, programs and projects will be undertaken during 6th Five Year Plan to
increase and sustain the service level. One hundred percent access to minimum level of service
in the sanitation sector is expected to be achieved by 2013 by a combination effort of DPHE,
Local Governments, NGOs, CBOs, private sector and individual household owners. The 6th
Five Year Plan is aimed to increase the service level in a sustainable manner.

Table 5.10: Water Supply- Target Coverage at the end of SFYP*

Sl. Service Area Target Coverage at the end of SFYP
No By Piped By Water Total
Water Points
1 City Corporation 70% 30% 100%
2 District HQs Pourashava 70% 30% 100%
3 Upazila HQs Pourashava 30% 70% 100%
4 Growth Centre & Other Pourashava 20% 80% 100%
5 Rural Areas 1% 99% 100%
*Reflecting National Policy for Safe Water Supply

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 Table 5.11: Sanitation- Target Coverage at the end of SFYP
Sl Service Area Target Coverage by Sanitation
No Options at the end of SFYP
1 City Corporation
Onsite sanitation 100%
Sewerage 10%
Drainage 50%
2 District HQs Pourashava
Onsite sanitation 100%
Sewerage 5%
Drainage 50%
3 Upazila HQs Pourashava
Onsite sanitation 100%
Drainage 50%
4 Growth Centre & Other Pourashava
Onsite sanitation 100%
Drainage 50%
5 Rural Areas
Onsite sanitation 100%
Drainage 50%
Solid Waste Management 75%
6 Transport Sanitation (River, Road, Railway)
On board 100%

Policies and Strategies for the development of WSS under SFYP

Institutional Responsibilities

At present, DPHE is involved in Water Supply and Sanitation activities in the Urban and the
Rural areas under physical planning, water supply & housing sector. These activities will
continue to be planned and implemented during the 6th FYP. In addition, it is extremely
important that DPHE is involved with the activities relating to environmental sanitation in
Pourashava Towns. Urban Environmental Projects to be implemented by DPHE will include
the following Components:
• Urban Water Supply
• Urban Sanitation (Waste water collection and transportation, Treatment of Human waste
and Wastewater)
• Urban Environmental Sanitation (Solid waste management and Storm water and Sullage
draining)
Besides these, DPHE will implement projects related to Capacity building of LGIs and sector
professionals, Establishment of national data bank etc.

The Arsenic Mitigation Policy 2004 gives preference to surface water over ground water as a
source of drinking water for the arsenic-affected areas. The WSS Policy 1998 talks about
237
proper use of surface water and rainwater. Government alone shall have the ownership of the
water source including its protection, development/ extraction, treatment and transmission up
to service area. Shouldering this responsibility on behalf of the government DPHE will carry
out these activities. Within its own service area the concerned LGI will manage O&M of the
WSS services. If required DPHE will provide necessary assistance to them.

Technological Options

The need for promoting technology options for sustainable water and sanitation services
responding to the needs of specific areas and socio-economic groups of people will be
recognized. The Arsenic Mitigation Policy 2004 envisages the promotion of rural piped water
systems in the long run. It recognizes that appropriate technologies for arsenic mitigation are
yet to be developed and thus promotes some options like improved dug wells, pond sand
filters, deep hand pump tube wells (following prescribed installation protocol) and rainwater
harvesting. Any arsenic removal technology before implementation must be validated from the
Bangladesh Council for Scientific and Industrial Research (BCSIR).

Sewerage treatment technologies with greater emphasis on resources recovery and recycling
will be given top priority in improving sanitation situation. Emphasis will be given on less
energy intensive technologies like constructed wetland, oxidation ditch, extended aeration,
stabilization ponds, etc. Appropriate desludging of septic tanks and pit latrines will be
enforced and effluent disposed off in a proper manner. Sludge emptying services by city
corporations and Pourashavas will be made available.

Water Quality Monitoring

The WSS Policy 1998 sets goals to ensure the supply of quality water through observance of
acceptable quality standards. It says that the monitoring of water quality will be the
responsibility of DPHE, DOE, BSTI, Atomic Energy Commission and CBOs and they will
send their reports to the water quality control committee in the Local Government Division.
The Arsenic Mitigation Policy further states that the water quality of all new water supply
sources is to be tested prior to commissioning. Laboratory facilities must be developed at
Upazila levels through public/private initiatives and linked to a network with the existing
DPHE laboratories and DOE laboratories. Government will formulate and enforce effective
regulatory instruments for certification and accreditation of these laboratories. Recently World
Health Organization (WHO) introduced Water safety Plan (WSP), a preventive mechanism to
ensure safe water.

Environmental Integrity

The WSS Policy 1998 desires that all development activities related to water and sanitation are
considered within the broader environmental considerations. The Policy emphasizes the
prevention of groundwater contamination from sewerage and drainage in urban areas. The

238
Arsenic Policy 2004 puts up a tentative protocol for safe disposal of waste from arsenic
removal technologies.

Major Interventions/Activities to Achieve Targets

The specific major interventions/activities to achieve the vision targets are:

Management Aspects
• Update and strengthen “Organizational Setup” of DPHE so that it can perform its
mandated responsibility and can meet desire of the people.
• DPHE will concentrate more on and look after the water quality as well as WSS system
monitoring, surveillance and co-ordination of WSS sector on behalf of the government.
• DPHE will carry out the WSS Human Resources Development (HRD) activities for
capacity building of personnel (Public/LGIs/ Private/ NGOs/ Unemployed youth etc)
involved in the development and O&M of WSS system.
• DPHE will look after information management and R&D activities of the WSS sector to
support policy making and strategic planning.
• Gradual shift of DPHE from its exclusive role of “Service provider” to the role of “Service
provider and Facilitator”.
• On behalf of the people, government alone shall have the ownership of the water sources
including its protection, development/ extraction, treatment and transmission up to service
area. DPHE will shoulder this responsibility on behalf of the GoB. DPHE with its own
manpower or by engaging professionals/ professional bodies or private operators will carry
out these activities. DPHE will also facilitate LGIs in discharging their responsibilities in
the development, operation & maintenance of the WSS service delivery in their
jurisdiction. Within its own service area the concerned LGI will manage O&M of the WSS
services by itself or by engaging private operators for different functional areas of the
WSS system.
• DPHE will facilitate overall capacity building of the concerned LGI before withdrawal of
its WSS activities from the service area of the LGI.
• Strengthen capacity of DPHE in the identification of appropriate source of water supply
and location specific water supply options, supported by detailed investigation, feasibility
study, water modeling, design, etc in respect of surface as well as ground water.
• Withdrawal of WSS development activities of DPHE from the service area of the
concerned LGI is dependent on its development status and capacity of the LGI in
managing WSS services.
• DPHE will extend advisory services to the LGIs as and when required, supported by law/
ordinance, to maintain good order in the WSS service delivery.

239
• Effective involvement of the people/ community in WSS management.
• More involvement of the private sector in the O&M of WSS services.
• Public-Private partnership in the O&M of WSS services.
• Public-Private partnership in the development of infrastructure for adequate WSS service
delivery in limited scale.
• Involve financial institutions in the development and O&M of the WSS services.
Development Aspects
• Ensuring safe water and sanitation facilities for all through the development of different
water supply and sanitation options to improve quality of life and to accelerate
development of the country in a sustained manner taking into consideration of poverty
alleviation, promotion of private sectors, arsenic mitigation, human resources
development, protection of environment, gender issues, climate change and global
warming.
• Ensuring safe water through the development of different water supply options in areas
affected by the presence of arsenic and other micro-pollutants in ground water and
presence of micro-organisms, industrial wastes, fertilizers, insecticides, herbicides etc. in
surface water.
• Ensuring safe sanitation facilities for all through the development of different sanitation
options based on hydro-geology/ weather, socio-economic condition of the people/
community, soil condition etc.
• Ensuring safe water and sanitation facilities in the hydro-geologically difficult and
problematic areas through the development of appropriate and affordable technological
options.
• Establishment of WSS HRD centre in DPHE to ensure adequate supply of trained and
skilled manpower in the WSS sector for its balanced development .and effective
management.
• Establishment of the NAWASIC (National Water Supply & Sanitation Information
Centre) in DPHE to ensure information management of the WSS sector and DPHE as well
which is necessary for policy making and strategic planning of the sector.
• Establishment of water quality examination, monitoring and surveillance systems
throughout the country by establishing laboratory network and onsite testing facilities
using portable water testing kits.
• Establishment of monitoring, surveillance and coordination units in DPHE.
• Ensuring the adequacy of financial resources through proper user charges, public-private
partnerships, foreign aid resources and Government’s own resources.

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• Urban Environmental Sanitation (Solid waste management and Storm water and sullage
draining)

The sixth five year plan is deemed to increase the present coverage of safe drinking water both
in rural and urban areas and to ensure access to hygienic sanitary latrines for all, WSS
facilities in every school, important public places, and religious institutions and in densely
populated poor communities. These will be achieved through installation of water supply
systems (both piped and non-piped) & sanitation facilities, implementation of water safety
plans, water quality surveillance, adoption of appropriate technology to specific regions with
different hydro-geological situations and social groups, behavioral development in sanitation
& personal hygiene practice, social mobilization for awareness building, institutional capacity
building, proper management of solid & liquid waste, increased use of surface water, storage
& use of rain water, strengthening Local Government institutions & communities.

Bottom up demand responsive planning, sustainable development through Local bodies,

increased involvement of NGOs, CBOs and women groups, gradual increment of community
cost-sharing and introduction of economic pricing, assigning priority to under-served & un-
served areas, poverty alleviation, promotion of private sectors, arsenic mitigation, human
resources development, strengthening & improvement of existing technologies through
research & development activities, protection of environment, climate change and global
warming etc. have been the key issues addressed during preparation of the plan. Every attempt
will be made in future to address these key issues while preparing and implementing any WSS
projects/programs.

ALLOCATION OF DEVELOPMENT RESOURCES FOR THE URBAN SECTOR IN

THE SIXTH PLAN

Given the large backlog of unmet demand and rapidly growing new demand for urban services
in Bangladesh the investment financing needs of the urban sector are large. This is also
reflected in the indicative resource requirements provided by line ministries and shown in
Annex attachments. Creative means will need to be found to meet the financing requirements
based on a combination of sound planning of new investments, proper attention to maintaining
and better using existing urban assets, strengthening of property tax system and user charges,
partnership with private sector through outsourcing and PPP arrangements, mobilization of
donor funding, and assigning funds from the government’s own resources. While the
government recognizes the urgency of meeting the needs of the urban sector, a holistic
approach to resource mobilization as stated above will be essential.

Based on the projected overall resource envelope and a careful assessment of relative
expenditure priorities, Tables 5.12 and 5.13 provide allocation of development resources to the
urban sector in current and constant prices during the Sixth Plan. These are indicative targets
and will be reviewed on an annual cycle in light of actual resource availability,
implementation performance and changing priorities.

241
Attachment in the annex shows the indicative costs of various programs/projects proposed by
various agencies of the Ministry of Local Government, Rural Development & Cooperatives
and the Ministry of Housing and Public Works for inclusion in the Sixth Five Year Plan.
These programs/projects are proposed to fulfill government’s manifesto and target to ensure
safe water and sanitation facilities for all in a dynamic environment. In view of the large gap
between available resources and proposed expenditures the programs/projects will have to be
prioritized for funding.

Table 5.12: Development Resource Allocation for the Urban Sector in the Sixth Plan
(Taka Crore; current price)

Ministry 2010-11 2011-12 2012-13 2013-14 2014-15

Local Government Division 8099 9519 10804 12687 14430
Ministry of Housing and Public Works 479 565 641 754 862
Total 8578 10084 11445 13441 15291

Table 5.13: Development Resource Allocation for the Urban Sector in the Sixth Plan
(Taka Crore; FY2011 price)

Ministry FY2011 FY2012 FY2013 FY2014 FY2015

Local Government Division 8099 8855 9392 10357 11112
Ministry of Housing and Public Works 479 525 557 616 664
Total 8578 9381 9950 10972 11776

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 ANNEX

Sixth Five Year Plan (2011-2015)

Ministry of Local Government, Rural Development and Cooperatives

Annex Table 5.1: Indicative Costs for Proposed Programs/Projects

(Crore Taka)
1. Urban Development (Municipalities) 11862
2. Urban Development (City Corporation Areas)
a. Dhaka City 4960
b. Chittagong City 4836
c. Rajshahi City 1335
d. Khulna City 972
e. Barisal City 507
f. Sylhet City 1000
Sub-total: Urban Development (City Corporation Areas) 13610
3. LGED (urban roads, bridges/culverts, urban drains, community/public toilets, 11509
Bus/Truck Terminals, Municipal Kitchen Market, Municipal
Infrastructure Development Plan, Master Plan of Upazila and Zila Towns,
Urban Poverty Reduction Programs)
4. DPHE (Water Supply and Hygienic Sanitation in Rural and Urban Areas) 10313
5. Water Supply System, Sewerage System, Storm water drainage
system (City Corporation Areas)
a. DHAKA WASA 16769
b. CHITTAGONG WASA 5685
c. KHULNA WASA 153
Total for Urban (excluding transport) 69901
Source: Ministry of Local Government

(Ministry of Housing and Public Works)

Annex Table 5.2: Indicative Costs for Proposed Programs/Projects
(Crore Taka)
1. Public Works Department (PWD) 1205
2. National Housing Authority (NHA) 11748
3. Rajdhani Unnayan Katripakkha (RAJUK) 40309
4. Chittagong Development Authority (CDA) 2930
5. Khulna Development Authority (KDA) 990
6. Rajshahi Development Authority (RDA) 306
7. Housing and Building Research Institute (HBRI) 142
8. Urban Development Directorate (UDD) 163
TOTAL 57793
Source: Ministry of Housing and Public Works

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 CHAPTER 6: BOOSTING THE KNOWLEDGE
ECONOMY FOR HIGHER PRODUCTIVITY
OVERVIEW

With the onset of globalization the international environment is becoming more competitive
and demanding. Greater globalization, combined with more liberalization of markets and
products means greater global competition. Since capital markets mobilize capital to
economies where highest risk adjusted returns are expected, this implies a relocation of
international capital to markets showing potential, which includes a dissemination of
knowledge economy.

The New Competitive Context

The nature of competitiveness has been changing. Depending on the economic and business
environment, traditionally it was based on lower capital or labor costs, or of other local inputs
including infrastructure services. Although these fundamentals continue to play a key role,
given the very rapid rate of development and dissemination of new knowledge globally and
the pressure to restructure, there are important new elements, including the ability to

• Rapidly re-deploy resources in order to capture new opportunities

• Ensure the quality, skills and flexibility of labor force (and management)

• Keep up with rapidly changing technological and organizational advances

• Move to higher value parts of value chain (research/design; and marketing, branding,
managing of customer information)

• Make effective use of information technologies to reduce transactions costs and improve
capacity to respond quickly to changing opportunities and threats

As new knowledge and innovation is coming up, the advancements in information processing
and communication technology is making international dissemination of such knowledge
quicker and more diffused such that those who are not keeping pace with these changes end up
falling behind. The increase in information technologies, along with decreases in transport and
communication costs due to technological progress are leading to increases in international
trading of goods and services.

The transition to a knowledge economy depends upon the readiness of a country to use such
knowledge for its development. To help countries understand their strengths and weaknesses
in making this transition to the knowledge economy, a useful benchmarking tool namely
244
Knowledge Assessment Methodology (KAM) has been developed by the World Bank
Institute. The KAM provides global ranking of countries in terms of their readiness to use
knowledge for their development in the context of four pillars namely,

(i) a regime that provides incentives for efficient use of existing knowledge;

(ii) An educated and skilled population that can create and share such knowledge;

(iii) A dynamic information structure for facilitating effective communication and

dissemination of information; and

(iv) An efficient system of innovation of research centers, universities and other organizations
that can tap into the growing stock of global knowledge.

A reduced index of KAM called knowledge economy index (KEI) to give a quick summary of
a country’s overall position is presented in the table below. Figures 1-2 show a comparison of
KEI component of Bangladesh with countries of South Asian and other world regions14.

Figure 6.1: Overall KEI 1995 Vs Most Recent

14
The horizontal axis represents the relative position of the country or region in 1995. The vertical axis represents the position
in the most recent year (generally 2000-2003). The graph is split by a 45 degree line. The most advanced countries are on the
northeastern section of the diagonal. But the position relevant to the diagonal is also critical. Those countries or regions that
are plotted below the line indicate a regression in their performance between the two time periods. Countries or regions that
are marked above the line signify improvement between the two time periods, while those countries that are plotted on the line
indicate stagnation. Source: World Bank, KAM 2005.
245
 Figure 6.2: Comparison of KEI component parts for World Regions with South Asian
Countries (most recent in top line, compared to 1995 bottom line for each group)15

It is observed that among the developing countries South Asia does worse than the others
except Africa. Within South Asia, India does the best, although it does not show any
improvement over time. Its higher knowledge economy index is largely due to its high index
on innovation given the large absolute size of scientists and engineers in R&D as well as the
absolute volume of scientific and technical publications. Pakistan, Bangladesh, and Nepal all
lose ground in the aggregate KEI. Bangladesh slips most in the innovation index and also
slips in the economic incentive regime, but makes some gains in the ICT and smaller gain in
the education index. The challenge for Bangladesh to catch up on the knowledge economy
front is immense.

A Framework for Knowledge-based Development for Bangladesh

The need for higher levels of scientific manpower and new skills: With the on setting of
the knowledge revolution, higher levels of education are imperative to keep up with and
make effective use of rapidly changing knowledge. It also necessitates high levels of
scientific and technical manpower to create new knowledge. However, since sharing the
newly created knowledge entails learning of new skills, there is a need for a system of
continuous training in order to constantly upgrade skills or re-skill people who have already
passed through the formal educational system. This is reflected in the very high percentage
of adults who are taking additional courses at work, in specialized institutions, or even going
15
The top bar chart represents the most recent aggregate KEI score for a selected region or country, split into the four KE
pillars. The bottom represents the index in 1995. Each color band represents the relative weight of a particular pillar to the
overall country’s or region’s knowledge readiness, measured by the KEI. The first line for each country is its position in the
most recent year for which data is available (generally 2002-2003). The second line is for 1995. Source: World Bank, KAM
2005.

246
back to tertiary institutions for formal education (in Finland, this is true for over 50% of
adults). This is also reflected in the number of students at universities who are older than the
typical university age cohort of 18 to 24 years old. In the U.S., over 40% of undergrads are
over 25 years of age. In Australia, New Zealand, Denmark, Norway and Sweden, over 20%
of first time entering students were over the age of 27 in 2000.

The need to keep up with the new skills—in computer literacy, communication skills and the
ability to work in groups—has led to the adoption of education and skill-oriented policies
across countries to improve their overall business environment and enabling greater
flexibility of their economies to respond to the rapidly changing circumstances. Countries are
now improving their education and skill systems as part of their development and
competitiveness strategy. Between 1990-91 and 2002-03, for instance in high income
countries enrollment rates at the secondary level increased from 94% to 107% and from 47%
to 66% at the tertiary level. In Korea, an economy that has placed a very high value on
education and is now well known as a knowledge economy, tertiary enrollment rates
increased from 39% to 85%, which put her second only to Finland (with 86%), the other well
known knowledge-based economy16. At the same time, an increasing number of private
educational institutions have arisen to fill in the needs not adequately addressed by public
education system. Firms are undertaking increasing amounts of in-house training to give
their workers the skills they need to compete. In addition, some of the larger firms are even
setting up their own in-house universities to provide the most advanced specialized skills
needed to be competitive. Firms are also more proactive in approaching universities and
specialized training centers to get them to develop specific training programs to meet their
needs.

Equally noteworthy is the increasing use of information-based technologies, which has been
gathering speed as the technology has improved and more experience acquired on its use. In
the U.S., 16% of tertiary level students are taking at least one course on line, and 40% of
those are full time on line. E-learning is expanding very rapidly and much is being provided
by non-traditional universities (new entrants, including publishers and mass media). E-
education, by crossing boundaries, has also facilitated the internationalization of education.

It is also being increasingly felt that to be globally competitive and to be able to make
innovation countries need high level human resources. There is thus also increasing
competition for high level human capital across countries. For example, even the US, where
there is no free trade in labor, except for highly trained persons has had more liberal
immigration policies and developed a program for the temporary immigration of specialized
manpower in the ICT sector.

16
World Development Indicators 2005, World Bank: Washington DC
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Education is a key to the establishment of a knowledge economy: A part of the reason for
low knowledge base in South Asia is low education attainment in these countries. Taken as a
group their low enrollment ratios at the secondary and tertiary levels, low average
educational attainment among the adult population, extremely low percentage of professional
and technical workers among the labor force combined with emigration of the highly skilled
workers and low quality of mathematics and science education, pose serious obstacles to
their transition to knowledge economy.

The concept of a national innovation system: The innovation system plays an important
role in acquiring, creating, adapting and disseminating knowledge, which is crucial for
success in the knowledge economy. It consists of the network of institutions, rules, and
procedures that affect how the country acquires, creates, disseminates, and uses existing
global knowledge. It also concerns the application and use of existing knowledge to the local
context.

The concept of a national innovation system rests on the premise that understanding the
linkages among the various actors involved in innovation are key to improving a country’s
technology performance. These actors include private enterprises, universities, research
institutes, think tanks, consulting firms, and others. The innovative performance of a country
depends to a large extent on how these actors relate to each other as elements of a broader
system.

These suggest that a comprehensive knowledge economy strategy will need to emphasize
education, science and technology (to promote research and innovation), and information
communications technology (ICT) to harness the knowledge effectively.

DEVELOPMENTS IN SCIENCE AND TECHNOLOGY

National science and technology policy: The vision of the National Science and Technology
Policy of 2010 was to meet the basic needs of human beings by harnessing the potential of
science and technology. Two significant milestones were the emergence of Information and
Communication Technology and the potential of Biotechnology. Dramatic changes in the
global scenario as well as in the field of science and technology during the last two decades
were reviewed and the existing policy has been accommodated these changes in meeting the
challenges of the 21st century.

The new Policy focused on scientific research and production using indigenous resources as
much as possible. It also focused on finding solutions to the emerging problems in agriculture,
health, environment and climate change. In view of the frequent onslaughts of pandemic
diseases like bird flu, malaria, etc., the policy supported research in areas such as prevention
and treatment of diseases having pandemic impact. The new Policy suggested access to quality
educational materials for studying science, mathematics, engineering and other subjects
requiring instruments. At the same time, provision may be made for attracting Bangladeshi
researchers living abroad. To encourage innovation and production of new technology, a
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proper institutional system of copyright and patent should be established. In view of the
expanded agenda for research in science and technology, allocation for R&D may be enhanced
to 1-2% of GDP.

National biotechnology policy: In Bangladesh, biotechnology received much attention of

policy makers since the first decade of the 21st century. The biotechnology policy focused on
the tools and techniques of biotechnology for poverty alleviation, health, nutrition and
livelihood improvement, environment protection, and ensuring sustainable development.

This policy may be examined further and the following issues should be considered:

• The policy should have clear resolutions on research misconduct;

• The policy should have clear direction on setting up laboratories and their roles i.e.
whether they will be hierarchically organized or geographically distributed independent
entities;

• The import policy should include special provisions for importing chemical reagents
needed for biotechnology research. The policy may provide incentive for producing them
locally.

• The policy should include guideline on projects to preserve genetic profiles of endangered
species;

• The policy should provide clear stand on animal cloning, stem cell cloning and human
cloning;

• The policy should give clear indication on genetically modified organism ( GMO);

• A permanent committee should be available for regular revision of the policy.

Institutions involved in Development of Science and Technology

Ministry of Science and Information and Communication Technology: The Ministry of

Science and Information and Communication Technology (MoSICT) is the umbrella
government agency for science and technology development. Since 1984, the S&T division
under Ministry of Education had been functioning as an independent division. One of the key
roles of the division was to provide secretarial assistance to the National Council for Science
and Technology (NCST). In 1993, the division was upgraded to an independent Ministry
(MoST). In April 2002, the ministry was renamed as Ministry of Science and Information and
Communication Technology (MoSICT). Govt. has recently reconstituted the MoSICT in to
two separate Divisions namely Science and Technology Division and Information and
Communication Technology Division.

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The ministry has seven agencies under its umbrella – Bangladesh Atomic Energy Commission
(BAEC), Bangladesh Council for Scientific and Industrial Research (BCSIR), Bangladesh
Computer Council (BCC), National Museum of Science and Technology (NMST),
Bangladesh National Scientific and Technical Documentation Centre (BANSDOC),
Bangabandhu Sheikh Mujibur Rahman Novo Theatre and National Institute of Biotechnology
(NIB). Among these, BCC deals with ICT and all other agencies are related to S&T.

Others institutions working like BARC, BAS, BMDC are also contributing for the
development of the science and technology.

Bangladesh Atomic Energy Commission (BAEC) and Bangladesh Council for Scientific
and Industrial Research (BCSIR): These are the two principal organizations dealing with
scientific and industrial research in the country. BAEC deals with research and development in
peaceful application of atomic energy, generation of electricity and promotion of international
relations congenial to implementation of its programs and projects.

Since its inception, BCSIR has been pursuing research and development activities in various
fields of scientific and industrial interests of the country and has contributed noteworthy
services to national causes.

Bangladesh Academy of Science (BAS): This was established in 1973 with the objectives to
promote research in pure applied sciences and their practical applications to problems of
national welfare in Bangladesh; to disseminate scientific knowledge among people. BAS
regularly publishes proceedings, journals, memoirs, transactions and other publications on
scientific subjects, holds conferences, symposia seminars, workshops, lectures etc on
scientific topics of national and international importance either alone or in collaboration with
local and international organizations and institutions. BAS awards scholarships and
fellowships for approved scientific research and award prizes and medals for outstanding
scientific work.

The Bangladesh Agricultural Research Council (BARC): The BARC under the Ministry of
Agriculture is at the apex body of the national agricultural research system (NARS). The
institutions under the NARS are: Bangladesh Agricultural Research Institute (BARI),
Bangladesh Rice Research Institute (BRRI), Bangladesh Jute Research Institute (BJRI),
Bangladesh Institute of Nuclear Agriculture (BINA), Soil Resources Development Institute
(SRDI), Bangladesh Sugarcane Research Institute (BSRI), Bangladesh Live stock Research
Institute (BLRI), Bangladesh Fisheries Research Institute (BFRI), Bangladesh Tea Research
Institute (BTRI), Bangladesh Forest Research Institute(BFRI). It has the responsibility to
strengthen the national agricultural research capability through planning and integration of
resources. It is the umbrella under which the entire Bangladesh agricultural research is
coordinated. This involves cooperative activities in several ministries of the government:
Agriculture, Forest and Environment, Fisheries and Livestock, Rural Development, Education,
Industries, Commerce, and Science and Technology. National Oceanographic and Maritime
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Institute of Bangladesh was established, which is yet to play the expected role in guiding
relevant agencies in managing marine resources.

Bangladesh Medical Development Council (BMDC): This was established to coordinate

the research in the field of medicine. However, there is no such coordinating body for the field
engineering. The National science and technology policy recommended a similar council for
engineering research.

BANSDOC: Bangladesh National Scientific and Technical Documentation Centre

(BANSDOC) is the national apex body in the field of scientific and technological library,
information and documentation services in Bangladesh. It has already passed 47 glorious years
for the benefit of scientific and technological research and experimental development and
upholds the socio-economic development of Bangladesh. According to mandatory role and
responsibility BANSDOC is dealing with library, documentation and information services,
products and systems in the field of science and technology & information and communication
technology.

BANSDOC houses the National Science Library (BANSDOC Library) that acts as a major
information resource centre in the country in the field of Science and ICT. It has the finest
collections in Information Science and Information and Communication Technology and a
strong reference collection in general S&T aspects. It holds over about 17000 books, about
300 periodical titles and receives over about 90 periodicals both Local and Foreign in the field
of S and ICT.

To support its ICT services, BANSDOC has set up an ICT based Cyber Service Centre which
is well equipped with the computer and online broadband connected networking facilities to
ensure all out high quality cyber services to the users. It is also associated with the activities of
International Federation for Information and Documentation (FID), international Federation of
library Associations (IFLA), Commonwealth Library Associations (COMLA), SAARC
Documentation Centre (SDC), European Patent Organization (EPO), European Commission
(EC).

Public and private universities teaching involved in science and technology: Of the 31
public and 54 private universities in Bangladesh, 5 public universities are dedicated for
engineering education, 1 for medical science and the rest cover both general and science
education. Dhaka University and Bangladesh University of Engineering and Technology
(BUET) have few specific institutes dedicated to scientific and engineering research,
respectively. The Institute of Appropriate Technology (IAT) of BUET is playing an important
role in identifying appropriate and sustainable technology for the country. The research
activities in this type of institutions are conducted by professional scientists and their projects
are funded both internally and externally. Only few universities have graduate research
programs in science and technology. Of these, Dhaka University, Rajshahi University,
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Chittagong University, Jahangirnagar University, Bangladesh University of Engineering and
Technology offer graduate level courses on science and technology. The engineering colleges
in the country were upgraded to engineering universities. As a result, number of engineering
graduates has gone up.

Non-government initiatives in science and technology: There have been a number of

initiatives from non-government and voluntary sector in Bangladesh for promoting science
and technology. Bangladesh Mathematical Olympiad is a good example of non-formal
activities related to promotion of mathematics education among the school and college
students. It has been running successfully since 2001. From 2005, every year, the best
performers of the National Olympiad participated in the International Mathematical Olympiad
one of the most prestigious knowledge based competitions for high school students around the
world. In 2009, two of Bangladeshi students have achieved Bronze medals. The Bangladesh
Mathematical Olympiad is organized and run by the Bangladesh Mathematical Olympiad
Committee, a not-for-profit voluntary organization. A similar event in the field of informatics
was also organized. However, the arrangement of Physics, Chemistry and Biology Olympiads
are yet to attract popular attention of the students because of lack of enough organizers.

Constraints and Challenges in Progress of Science and Technology

Bangladesh needs to come out of the "basic needs" agenda for research and come up with
ambitious research programs in the field of science and technology which are closely related to
its aspirations of becoming a middle income country with rapid poverty reduction. For
example, Bangladesh may aspire to have its own satellite, which would serve the purpose of
economic growth through accurate and timely forecasting of natural disaster including flood
and cyclone. However, constraints remain in the way of progress of science and technology.
These are as follows:

Need for autonomy: The dynamic life cycle of scientific research requires quick decision
making system. The current process is slow and inefficient, which hinders undertaking
progressive research agenda. To allow quick decision making the research institutions need
autonomy within the framework of national policy for science and technology.

Lack of proper incentives: In Bangladesh, an incentive mechanism for creating intellectual

property of high financial value has not yet developed fully. As a result, many scientists prefer
to work for institutions abroad or for private institutions. The pay structure for research
institutions should be determined autonomously so that adequate financial incentive can be
provided to the capable scientists.

Poor initiative for talent hunt: Today’s scientific research demands talented students. To
attract them to science and technology popularization activities are essential. Such activities
were launched in early 1980s by the National Museum of Science and Technology. A good
number of science clubs had also emerged then. But the number of science clubs and their
activities has been reduced drastically due to lack of patronization. The National Science Fair,
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a competitive process of selecting young scientists is now dormant. There is need for reviving
such activities.

Human resource problems: Capacity building of scientific personnel tailored to the theme of
projects as well as adapting new and state of the art technology is not taking place as desired.
This is mainly because firstly, the in-house and overseas training facilities for the scientists
working in the field of cutting edge technology are not adequate, and secondly, very often the
scientific personnel sent abroad for short-term training do not return home after the expiry of
the training period, thus contributing to partial failure of a project. Other human resources
constraints are as follows:

1. Lack of training: There is lack of training for teachers of colleges under National
University as well as the new Science and Technology Universities in terms of upgrading
and modernizing syllabuses and teaching quality. There is small coordination between the
MOSICT and UGC. Establishment of private universities without complete regulatory
preparation creates problems.

2. Inadequate fellowships: The government introduced the national science and technology
fellowship (Now National Science and ICT fellowship) in the year 1977-78 to encourage
young scientists and researchers in different universities and research institutions.
Selected students studying in Masters or pursuing their M. Phil and PhD degree receive
this fellowship. Students studying in the field of inorganic science, organic science and
agricultural science are eligible for the fellowship. In the year 2009-10, Tk. 20.2 million
was distributed among 409 students. Besides the NSICT fellowship, a few corporate
agencies including a multinational bank also provide financial support to some researchers.
However, the amount of money of the fellowships needs review in the context of pursuing
scientific research.

3. Lack of professionalism: There is a severe lack of professionalism in conducting research.

Only those who choose to be serious researchers in the long run take research-based
courses. The absence of proper and rich graduate research programs in universities results
in poor intake of scientists and technologists in national research organizations. On the
other hand, lack of adequate financial incentives inhibits talented students to join science
and research courses.

4. Inadequate facilities: Opening of new science departments as well as universities of

science and technology without ensuring appropriate space, teachers, equipment and ICT
environment is a reason behind degradation of standard of science and engineering
education.

5. Lack of patronage for popularizing science: Today’s scientific research demands talented
students. To attract them to science and technology popularization activities were launched
in early 1980s by the National Museum of Science and Technology. The National Science

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 Fair, a competitive process of selecting the best young scientists and awarding them with
suitable prizes was also introduced. Such competition is not organized any more. Informal
scientific activities carried out by Science Clubs and Societies such as outer space
observation, science fair, science quiz competitions, debates, essay writing, lectures etc.
has been reduced drastically due to lack of patronization. Only a few educational institutes
arrange science fair regularly. The Bangladesh Academy of Sciences has a role to play in
encouraging such young talents through arrangement of such periodically arranged
lectures.

6. Lack of research funding: There is a severe dearth of financial resources for undertaking
research and development in various fields under a long term vision and plan. Allocations
for science and technology in previous Plans as a proportion to total allocation have been
inadequate. There is a severe lack of efficient mechanism for dialogue between relevant
ministries dealing with research and ministry of finance. There is lack of freedom and
mechanism for scientific institutes to mobilize financial and technical resources from
various sources, including private sector.

7. Inadequate research and laboratory facilities: While lack of adequate research and
laboratory facilities is a problem, in some cases existing facilities are not fully utilized
because of the absence of the skilled human resources.

8. Lack of promoting success in R&D: Most of the institutions do not have appropriate
communication plan and system in place. The success of research institutions does not
reach general people, particularly new generation. As a result, young talents do not have
any role model among the scientists and researchers. While scientific publications are
generally in English, the need for local language scientific literature is ignored. For
example the catalogue, website, or various publications of BANSDOC all are in English.
So it is out of reach for most of the people.

9. Inadequate collaboration: International and regional collaboration are essential to bring in

new ideas and skills. However, existing act/rules sometimes prohibit the collaboration with
international organizations and/or even with local private organizations. Inadequate
collaborative projects between the universities and the research organizations widen the
gaps between research institutions and the academia.

Objectives, Targets, Strategies and Policies for Science and Technology in the SFYP

Sixth Plan Objectives

The major objectives of the Sixth Five Year Plan in the field of science and technology are as
follows:
1. Development of new sustainable technologies and industrial processes for production and
preservation of products for poverty alleviation and income generation by environmentally
sound and appropriate biotechnology.
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2. Development of nuclear service related infrastructure such as development of nuclear
facility, improvement of health services, transfer of nuclear technology as well as service
delivery to various end users including environment and human resource development.
3. Strengthening of the institutional and human resources development activities in the
country for introducing nuclear power technology.
4. Development of technologies specially required for the capital goods sector and large
industrial enterprises and improvement of appropriate traditional and indigenous
technologies for small enterprises in both rural and urban areas.
5. Upgradation of research organizations involved in the field of science and technology and
attempt to make Bangladesh into a knowledge-based modern state through use of
indigenous technology and innovations.
6. Strengthening R&D programs of existing organizations of the Ministry of Science and ICT
through dissemination of modern scientific and technical know-how.
7. Strengthening of the institutional and human development activities in the country through
development of improved science and technological knowledge.
8. Development of new and renewable sources of energy and their dissemination for the end
users.
9. Providing education, research and training in marine science and utilization of the
knowledge for invention and exploration of marine resources and protection of marine
environment.

Sixth Plan Strategies

The Sixth Plan will have two dimensions: one is to create opportunities for investment by
private sector, NGOs and development partners through creating enabling environment ( both
infrastructure and policy), which will need massive reform; second, the government will invest
to ensure constitutional obligations for offering public good. It is important to identify target
areas for science and technology development with a twenty year vision. In this line, it is
important to identify thrust areas.

Basic research: Considering national priority and need for food security and health security of
the nation, Biology and Medicine Research is becoming very important in the context of new
intellectual property rights regime, where life saving drugs are going to be expensive and
detrimental to national agenda of poverty reduction. It is true that it is not possible within short
time to come to a stage when new drugs are possible to generate by our own scientists.
However, a structured start may produce result in 20 years time. Research in the area of
biodiversity and conservation will be very important for the country.

Specific areas of focus may be: Immunology and vaccine research; basic biology,
biochemistry and drug design; genetics and genomics, ecology, biodiversity and conservation;

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plant molecular biology and basic research in agriculture; biotechnology; bioinformatics;
bioengineering.

Physical science: Energy security has become more important for Bangladesh with global
volatility in energy prices, depletion of fossil fuel resources globally, and need for renewable
energy development for protecting planet earth from adverse impact of climate change. Thus,
Bangladesh can focus, again with long term plan, research related to "fusion". Fusion is the
ultimate source of energy with minimal environmental degradation. The atomic energy
research needs to push to the fusion program in the direction of commercial fusion reactors.

Chemical science: Chemistry of energy conversion processes and harvesting of different forms
of natural energies can be one priority in the area of Chemical Science. Other possible areas
may be: Chemical Biology with emphasis on biometric synthesis, molecular mechanism of
drug action; Chemical ecology/ natural products.

Engineering: Engineering is one area, where Bangladesh may target to export technologies and
know-how within coming decade. Robotics, Parallel computing; cyber security;
bioinformatics; signal processing and communication networks; wireless communication;
Structural mechanics; earthquake engineering; prediction of natural disasters including
earthquakes, cyclones, tsunamis, etc.; early warning systems, structural engineering for
resistance of natural disasters and loss mitigation technologies; energy engineering, including
energy generation ( renewable/ non-renewable), energy storage, efficient utilization and
pollution control technologies.

New emerging research areas: There is a constant need to review developments at the cutting
edge of basic research. A task force should be deployed to monitor global development in the
R&D and bring in information for scientific communities on new area of development in
science and technology.

Science and technology for micro and small enterprises (SMEs): As Bangladesh's
economy is based on SMEs, effective methods and plans of promotion of innovations in the
SME sector need to be devised in SFYP. The Plan may include a program for providing
special technical and financial support to innovators to set up enterprises. More specifically,
there may be three specific components of the plan for (SMEs):

1. Technology/ knowledge-based new start-ups (which need S&T inputs for incubation):
There are no technology business incubators (TBIs) for providing technology supports for
(SMEs) in Bangladesh. By comparison, in India there are 20 incubators, over 1000 in USA,
300 in Korea and 100 in Finland. Universities, Engineering colleges, business schools should
be preferred institutions for TBIs. There is a difference in TBI and TIC (Technology
Innovation Centre). TBIs are located in educational institutions and aim at converting results
of R&D to industries. TICs are located in SME clusters and provide them technical supports in

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technology up gradation and new product development. During the Sixth Five Year Plan 10
TBIs may be set up.

Other specific programs for (SMEs):

• Ministry responsible for Science & Technology should launch Science & Technology
Entrepreneurship Park, Technology Business Incubator, Small Business Innovation
Research Initiative.

• Ministry of Industries (MoI) should set up food parks for promoting technology for food
production.

• MoI may prepare sectoral technology profile. These technology profiles will help critically
examining and addressing technology needs in line with the business requirements of
respective sectors. Involving CII, UNIDO.

• Ministry of Education/UGC should include Entrepreneurship/ Incubation into the

engineering curriculum. Technical and vocational institutes need to be revamped for
brining in school-dropouts and supply quality human resource for SMEs.

• Appropriate mix of man-machine is important for avoiding complete automation which is

contrary to policy of labor intensive economy.

• It is desirable to encourage patenting by offering financial support/subsidies. Quality

assurance, eco-labeling and bar coding of products also needs to be encouraged in a big
way.

• Continuing education program for upgradation of skills at levels of technicians,

supervisors, engineers and entrepreneurs is also necessary.

2. Manufacturers of consumer products/ancillaries, driven by market demand (which

needs S&T interventions for innovation in process/product/packaging): Specific programs/
initiatives for this component may include:

• MoI should launch Small Industries Services Institutes, Tool Rooms, Central Footwear
Training Institutes, Product-cum-Process Development Centers, Regional Testing Centers
& Field Testing Centers, CAD & CAM Centers, Product Development, Design
Intervention & Packaging Scheme;

• Ministry responsible for Science & Technology should undertake program for technology
development & demonstration and program for 'TechnoPreneur' promotion.

3. Rural technology: Science and technology intervention is useful in all areas of rural
economy such as agriculture, physical and social infrastructure. However, most effective
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results would be obtained through rural technologies for non-farm rural enterprises,
particularly for sustainable job creation in rural non-farm sector. Because, task of development
and application of appropriate technologies for non-farm rural enterprises lacks a definitive
institutional framework in the government set-up and therefore, significant value would be
added to existing developmental goals by establishment of new institution responsible for
transferring technology to rural non-farm sector. Such an agency can be linked up with the
employment schemes for rural unemployed people. Furthermore, non-farm rural employment
is of increasing importance due to low employment elasticity in the farm sector and the
phenomenon of "job-less growth" in industrial sector. Currently, development of rural
technology is promoted by BCSIR and by S&T non-governmental organizations and Institute
of Appropriate Technology (IAT). All agricultural research institutions are major suppliers of
technology to rural areas.

A dedicated agency for rural technology identification, development and promotion needs to
be introduced. This agency can search out and link up thousands of disparate, small but sincere
groups, working in far-flung corners of the country and provide them necessary support to
implement technology transfer program. R&D institutions, universities, can supply technology
to the new agency, which may be disseminated through grassroots partners including
telecentres. There should also be a mechanism of field support for those grassroots partners.
This institution can partner with telecentres for building their capacity to make them
technology hubs for farmers, rural artisans and small producers. Specific programs for rural
technology development will include:

Training programs on Packaging for Exports;

Scheme of Fund for Regeneration of Traditional Industries;

Food Processing & Training Centers;

Support to Training and Employment Program for Women (STEP);

Intensive Dairy Development Program (IDDP); and

Fisheries Training and Extension.

Biotechnology: Induction of biotechnology is necessary for Bangladesh to maintain our

agriculture remunerative and globally competitive in the face of major challenges such as
declining per capita availability of arable land; low productivity levels of crops, livestock and
fisheries; heavy production losses due to biotic (insects and other pests, weeds etc.) and abiotic
(salinity, drought, alkalinity etc.) stresses; heavy post-harvest crop damage during storage and
transportation; and declining availability of water as an agricultural input. Investment in
agriculture-related biotechnology has resulted in significantly enhanced R&D capability and
institution building over the years, but progress has been rather slow in converting the research
leads into usable products. Uncertainties regarding IPR management and regulatory
requirements, poor risk assessment, and effective management and commercialization
strategies have been the significant problems.

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For ensuring food and nutrition security, value addition to primary agricultural produce
through application of new technologies, employment generation, economic development and
improved health and nutrition of all sectors of society biotechnology is very important. In an
emerging era of preventive health care, it is envisaged that improved food products can be
developed which promote well being and prevent diseases.

The mission mode projects in the areas of biotechnology can bring about significant value
addition, cost effectiveness and competitiveness in product and process diversity. Biotech
product/process development involves an elaborate pathway of innovation value chain over a
period of years (7-10 years) with defined elements of basic research, translational research,
development, verification and validation, prototype development, field trials,
production/manufacturing and marketing.

In biotechnology research, problem arises concerning the protection of intellectual property for
innovations in this field beyond legal and ethical questions. In view of the special quality of
living organisms the scope of patents has to be clearly defined to find balance between
innovation and public interest.

The mission mode project may include following components:

Bio-fortification of agricultural crops with better nutritional traits for iron, zinc, vitamin A
etc.

Nutritional improvement of vegetable crops with special impetus on underutilized
(neglected vegetable crop) species from different regions of the country

Development of nutraceuticals/ health food supplements/ functional foods with proven
evidence of efficacy and safety.

Bioinformatics: Sixth Five Year Plan proposes an initiative to establish a Centre for
Bioinformatics under the National Institute of Biotechnology. For creating excellence in
bioinformatics, following components may be included in the plan:

Preparation of a pool of experts on bioinformatics through collaboration with

biotechnology research institutions in the region, particularly with India and China, which
obtains a very strong network of bioinformatics research institutions.

Setting up supercomputing facilities for developing databases.

Initiation of courses on bioinformatics in universities by inviting Bangladeshi scholars
from abroad.

Supporting Bioinformatics incubator facilities.

Developing a resource pool of at least 10 PhDs in the field of bioinformatics within the
period of Sixth Five Year Plan.

Making online courses on bioinformatics available through globally reputed institutions.

Institutional mechanism may be put in place for testing public domain databases and
software and making them available to the users from the academia and the industry. After

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 such testing, these databases and algorithms may be graded so that scientists can use them
with higher confidence.

Commercial databases and software may be tested before the industry invests in the
products. Such service will help the industry to reduce their costs and use only certified
products.

Giving priority to bioinformatics companies in High Tech Park.

Facilitating collaboration between bioinformatics, agricultural scientists and plant
molecular biologists. Special emphasis may be laid on adaptation to environmental stress.

Another sector which merits attention is the documentation of the microbial wealth of the
country and its possible utilization. Here again extensive collaboration with
microbiologists is important.

Bioengineering: Bioengineering covers a wide range of areas such as tissue engineering,

biomaterials for therapeutics, biomedical sensors, biomedical devices and implants, etc.
Bioengineering offers opportunities for indigenous development of critical implants and
devices, advanced biomaterials for therapeutic applications, tissue engineered products, etc. in
coming decades.

The mission mode programs in the area of bioengineering may include:

Charting of a national program on bio-design providing an incubator for generation of new

ideas to develop novel biomaterials for therapeutic applications, design of indigenous
devices and implants, tissue engineered products, etc.

Establishment of a stable network amongst engineers, clinicians, basic scientists and the
industry.

Creation of partnership with universities, medical colleges, public research institutions
having expertise in various disciplines such as chemistry, life sciences, molecular biology,
medicine, engineering etc.

Initiation of programs to facilitate indigenous production and evaluation of implants and
devices which are currently available internationally but not available in the country at
affordable cost.

Establishment of a regulatory mechanism for testing and validation of bioengineered
products and devices.

Creation of new as well as improved Vaccines to create effective single-dose vaccines;
prepare vaccines that do not require refrigeration; and develop needle-free delivery
systems for vaccines.

Solve how to design antigens for effective, protective immunity; and learn which
immunological responses provide immunity. Priority diseases are: Dengue, Influenza,
Tuberculosis, Malaria and emerging Indian pathogens.

Participation in formation of regional biotechnology foundation in the region.

Marine resources: Research on marine resources is an underserved area, which can be a

major source of economic development and employment for the country. The Sixth Five Year
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Plan will undertake specific programs in the area of marine resource management which will
include:

Research on protection of coastal breeding & nursery areas:

Research program on Integrated Coastal Resource Management by Integrated Coastal
Zone Management (ICZM)

Long term project on conservation of marine biological resources

Program on protection of IUU (illegal, unreported and unregulated) fishing in Bangladesh
waters

Program on prohibition of pollutants discharge from ship breaking and other sources and
their impacts

Deep-sea resource survey every five years.

Strategies for Meeting Science and Technology Targets in the Sixth Plan

Science and Technology Agenda will consist of four components:

1. Appropriate R&D agenda in line with national development aspirations;
2. Appropriate institutional system for managing R&D;
3. Appropriate HRD for Science and Technology;
4. Appropriate resource allocation for accomplishment of the agenda.
Programs and projects to be undertaken in Sixth Five year Plan will be of two types:
i. Regular programs and projects; and
ii. Mission mode projects: This is more like special milestone or flagship initiative to
promote science and technology in new areas. "Manhattan project" during Second
World War for developing nuclear bomb is an example of mission mode projects.

The following strategies will be followed for development of science and technology in the
Sixth Five Year Plan:

i. Increasing public sector allocation for advancement of science and technology in

Bangladesh.

ii. Expanding education in science and technology to cover at least 80 percent of

enrolment at secondary and higher secondary and 60 percent at graduate levels during
the Plan period.

iii. Training of scientists, technologists and ICT personnel in selected fields at post-
graduate levels in centers of excellence at home and abroad on a massive scale.

iv. Integrating policies for development of science and technology with macro-economic,
industrial, agricultural, commercial and educational policies.

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 v. Effectively linking the entrepreneurs within the country with the supply of technology
originating both at home and abroad through a national network.

vi. Remodeling the legal framework for protection of intellectual property, providing
incentives for local entrepreneurs and development and transfer and absorption of
technology.

vii. Linking the remuneration package for scientists, technologists and ICT experts to their
individual productivity and potentiality.

viii. Providing institutional support and financing for commercializing technology, setting
up venture capital fund to this end will be a step in the desired direction.

ix. Encouraging and enabling expatriate Bangladeshi experts to generally forge linkups
with scientific and technological development of the country inclusive of wooing back
home recognized experts in selected fields.

x. Entering the nuclear age through setting up of a nuclear power plant at Roopur for
productive and peaceful use of nuclear technology.

xi. Modernizing science education syllabi at all levels of education as per present and
future national needs.

xii. Providing strong support for theoretical R&D in sciences like computer science and
engineering, physics, chemistry, mathematics and medical science; appropriate balance
is to be evolved between theoretical and applied research.

xiii. Establishment of Hi-tech Park, IT and Bio-technology incubator, IT Village and

Software Park, Community e-Centre in suitable locations of the country.

xiv. Establish unique educational/recreational facilities at different suitable locations of the

country such as tilted dome Planetarium/Digital Pavilion for making people science
and ICT conscious.

xv. Compiling of all laws, rules, statutes relating to science and technology, identification
of their necessary modifications for help in adaptation to the requirements of the day
and also for harmonization with the international conventions, particularly relating to
intellectual property, patent of indigenous products and processes as an incentive to the
scientists and technologists and the local entrepreneurs.

xvi. Assessing the need for focusing research on perceived national problems; research in
fields of biotechnology and genetic engineering; its application in agriculture,
aquaculture, animal husbandry, food processing, health and environment , promotional
of technologies for enhanced use of renewable energy (e.g. bio-mass, wind, solar) and
new materials.
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 xvii. Strengthening regional and sub-regional cooperation with SAARC countries and with
other science and ICT organizations for better cooperation and bilateral relations.

xviii. Research for proper exploitation and exploration of resources of the Bay of Bengal for
socio-economic development of the country and encouraging for inclusion of ocean
science related subjects in the curriculum of the educational system.

xix. Providing budget allocation for women involved in science and technology related
R&D, higher education and entrepreneurship.

Policy Framework

Formulation of a new National Science and Technology Policy (NSTP) will top the agenda for
five year planning. Besides updating of NSTP, there is need for enactment of appropriate laws
and acts and modification of existing ones. The issue of knowledge transfer as well as
adherence to the Intellectual Property Rights will be given proper attention.

Role of PPP in Development of Science and Technology

For the balanced development of science and technology, steps will be taken to involve the
private sector. The role of the public and private would assume new dimensions through the
explicit adoption of Public-Private Partnership (PPP) in SFYP. Under the initiatives the public
sector would join hands with the local and international private sector to ensure investment for
science and technology infrastructure, particularly in power and energy, Public Key
Infrastructure (PKI), Hi-tech Park, Software Technology Park, ICT etc. The PPP would be
aimed at promoting efficiency of overall investment in science and technology sector
incorporating with managerial skills, technical know-how and experts from local and
international sectors. Similarly, the local bodies will also be involved in promoting and
disseminating technical knowledge for setting up of projects relating to solar energy, bio-
fertilizer and IT enabled services.

Institutional Reform

With renewed emphasis on science and technology for national development both in the short
to medium term and long term, setting up a system of appropriate institutional mechanism is
important to reflect in Sixth Five Year Plan. A task force will be formed for developing
appropriate institutional system by first two years of the SFYP. Such institutional system will
be led by an apex institution, 'autonomous from but related to' the Ministry responsible for
science and technology. This apex institution will replace existing National Council for
Science and Technology. This institution will have responsibility to formulating and
implementing the new schemes for enhancing research infrastructure and for attracting new
generation of students and faculty into research institutions and universities. Appropriate
allocation during Sixth Five Year Plan period would be necessary to inject fresh vigor into
research system of the country. Institutional reform program will include the following:

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Appropriate human resource in Ministries dealing with R&D: Competitive exams for
awarding of research and Ph.D. fellowships under the umbrella of research institutes,
universities and joint programs with sandwich Ph.D. programs with foreign research
establishments will also be introduced.

Funding new infrastructure in the University System and in National Institutions:

Flexible mechanisms will be evolved where funding is effected rapidly and installation and
operation of equipment follows quickly. The apex institutions will act as creator of
facilities and as watch dog to ensure efficient operation.

Establishment of higher education commission: A higher education commission with

two components will be set up, consisting of eminent scientists covering all branches, e.g.
biological, physical, and mathematical as well as social science disciplines. One
component will be related to institutions up to the pre-university level and the other will be
related to university level institutions. The Commission will submit its report and
recommendations to the Government at an inter-ministerial level meeting chaired by the
Prime Minister, to enable inter-ministerial cooperation for effective and rapid
implementation of its recommendations. Both components of the commission will work
independently, but will however coordinate between each other. This commission will
work upon the following issues:

• To form a small group with invited scientists to monitor and report on the science and
technology (including agricultural, health, industrial, engineering and social) development
in different countries relevant to our needs;

• To develop a few priority research programs and projects, which could lead to tangible
benefit for the country;

• To invite industry and research/university scientists to dialogue to assess the needs of

industry in establishing linkages, which would reduce industry’s dependence on expensive
imports of know-how and raw materials;

• To consider funding of relevant research work undertaken by industry;

• To work with public university authorities on ways to reduce their dependence on

government funds. For example, increasing fees, but providing scholarships to needy
students, seeking R&D resources from institutions aboard and private sector as well;

• To upgrade selected departments in carefully chosen areas of science;

• To establish University of Engineering and Technology (UET): the UGC will establish 10
UETs of international standards;

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• To make the research internationally competitive, quantum of grant support to selected
departments will be increased;

To support to scientific associations.

Human Resource Development for Science and Technology

The following strategies will be adopted in the field of human resources development under
Sixth Five Year Plan.

a. Initiative for recruitment of faculty/ scientists: Most pressing problem in research

institutions is shortage of newly recruited faculty members, as a result, having decline of
research profiles. For attracting quality human resources, including those from foreign
research institutions following actions will be taken:

• A new attractive recruitment policy will be introduced, which would stipulate ground rules
different from those in force for recruitment for administrative positions. The apex science
and technology institution with autonomy should be free to develop new schemes in which
new recruits to the academic S&T system can be centrally funded and placed in
institutions.

• Flexibility in salary support will be built in for attracting appropriate human resources.

• The initial invitation for joining the research institutions will accompany a start-up
research grant in order to attract the best scientists to work in Bangladesh.

• Scheme for creating a prestigious Chair in different departments of the university will be
adopted, where foreign eminent scientists will be invited to serve for 2-3 years in order to
modernize teaching and research.

b. Plan for bringing Bangladeshi scientists working aboard to lead specific Agenda
item: A database of scientists and technologists of all disciplines will be created with the help
of the Bangladesh Embassies and Offices of the High Commission abroad. The Global
Network of Bangladeshi biotechnologists is such a website, but limited to scientists of that
discipline only. Such a database will be of tremendous benefit to any Ministry in need to
prepare a comprehensive plan for attaining certain specific objective.

c. Incentive mechanism for R&D: Promotion of university teachers will be only on

considerations of combined merit of research and teaching. There should not be any departure
from the principle from the selection criteria followed throughout the world over if we want to
keep abreast with them in academia. A system of awarding and giving special incentives for
the working scientist and technologist will be developed. Government may think of a separate
pay-scale and facilities for researcher and scientist like the judiciaries. In this regard linking
the remuneration package for the scientists and technologists to their individual productivity
and potentiality may be considered.
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d. Increased fellowship and grants: A scheme will be taken up to convert a large number
of public universities in the country into graduate research institutions. This will require
allocation of adequate funding, with consequential increase in the number of teaching and
mentor staff and physical facilities of the universities. It will also require increase in the
amount and number of S&T fellowship/internship/scholarship. Sufficient research funding
sources will have to be made available so that the research work is not) hindered for lack of
equipment.

e. Improve effectiveness of research grants: For improving effectiveness of research

grants existing grant money for research, result based system of monitoring will be introduced.

f. Development of research talents: There will be an arrangement for 4-year prestigious

Ph.D. fellowships under sandwich programs and tying these to research themes identified
previously and also to the international laboratory links mentioned below. The system of
administrative file movement for higher research in universities will be streamlined for quick
approval and allocation of funds. Research experience under local conditions must be
mandatory for recruitment of the best students as teachers for the university.

g. Attracting young talents in R&D: For attracting young talents to research in science
and technology, the following programs will be included in the Sixth Five year Plan: (i) An
attractive financial reward will be introduced for teachers of Science, Mathematics, English
and other related subjects. (ii) Fresh graduates having excellent academic record will be tapped
for research and development with adequate incentives. (iii) The apex institution will make
online scientific resources free of cost for all members of academia and research institutions.

h. Inter-institutional linkage program: Academic research institutions and national

laboratories play a major role in scientific research outputs. The university system does not
contribute much to scientific research output in a major way. This is largely because of the
decline in research activities in the science departments of universities. To enhance scientific
activity within university system, a new program to promote inter-institutional linkages will be
introduced in Sixth Five Year Plan period.

i. Building system of awarding scientific invention and innovation: A prestigious award

system will be introduced during Sixth Five Year Plan for various categories of scientific
research on annual basis so that scientists are encouraged for conducting quality research and
contribute to achieving national agenda.

j. Policy for international and national collaboration: Collaboration with the

international scientific and technological institutions and organizations needs to be
encouraged. The concerned ministry should make sufficient budgetary allocations for their
membership and funds to attend their important meetings. A case in point is the membership
fee of the International Centre for Genetic Engineering and Biotechnology, Trieste and
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funding to attend the meeting of the Board of Governors. Almost every year concerned
scientists are to approach the Government for renewal of membership and funds to attend its
meeting by the concerned representative of Bangladesh. Developing better relationship with
the neighboring and developing countries by sharing scientific methods, ideas, inventions,
discoveries and to take initiative to bring and adopt new technologies from the developed
nations.

Financing science and technology: It is essential to increase public sector allocation for the
advancement of Science and Technology. A target of allocating 2% of GDP will be made in
the next five years. The allocation will be clearly marked as the R&D part of total allocation.
As in ICDDRB all the senior teachers will be encouraged to apply for research grants from
Institutions such as NIH, USDA, WHO, FAO, Ford Foundation, funding bodies from UK,
Australia, European Commission etc. so as to supplement their salaries instead of allowing
them to be hired by private universities and foreign institutions.

Implementing copyright law: To encourage R&D activities in private sector implementation

of copyright law is very important. For proper implementation of this law surveillance should
be increased.

Building effective linkage between basic research and technology: New technology is
closely related to basic research. Ideas of new technologies are generated by researchers
working in basic research and these can spawn new products and processes. For such linkage
public-private partnership will be promoted. The Sixth Five Year Plan will include:

Program for technology business incubators: Technology-business incubators will be

established, so that the results of basic research can be transformed in to new technology. The
incubators will provide support to scientists to start businesses based on technology developed
in the lab. This type of technology transfer can be very effective in terms of implementation,
particularly for low initial capital start-ups.

Providing incentive for R&D in industries: The Ministry of Finance will provide fiscal
incentives to industries for producing products and services through R&D undertaken in
Bangladesh or in collaboration with partners abroad. These industries will be encouraged to
invite research students working in basic science related to new technology by some
incentives. New techniques and methods are most easily transferred in this way.

New infrastructure: Rapid advancement of science in all areas necessitates that research
infrastructure be constantly upgraded and added. Creation of specialized laboratories and
advanced instrument facilities is essential if Bangladesh's research is to play a role in
achieving national aspirations. The proposed apex body will form a committee to identify
needs for establishment of new infrastructure and allocate financial resources for their
implementation.

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Modernization of R&D facilities: The existing facilities in the R&D institutions will be
modernized and a research network among the different national organizations will to be set
up. The capacity of BANSDOC will be strengthened so that it could become the effective
national S&T information centre.

Technology transfer: Under the Sixth Five Year Plan a national centre for technology
transfer will be established, which will cater to the need for various industrial segments.

Programs/Projects during Sixth Five Year Plan

In accordance with the strategies mentioned, the indicative work-plan in terms of physical
components has been prepared considering the situational context and the specific objectives
of the Ministry of Science and ICT and its agencies like Bangladesh Atomic Energy
Commission, BCSIR, Bangladesh Computer Council, National Museum of Science and
Technology, BANSDOC and Bangabandhu Sheikh Mujibur Rahman Novo theatre, National
Institute of Bio-technology (NIB). During the Plan period the thrust areas of the Ministry of
Science and Technology (MoSICT) will include:
i. Establishment of Information Highway
ii. Establishment of an ICT University in the country on PPP model
iii. Offering overseas fellowship/scholarship programs for young scientists and technologists,
computer programmers, system analysts annually for training at M.Sc./Ph. D level
iv. Setting up a complete national institute of oceanography top achieve its targets
v. Setting up an ICT cell within the Ministry to serve as a clearing outfit for acquisition,
dissemination and adaption of ICT in Bangladesh
vi. Establishment of computer labs at educational institutions, Community e-Centre (CeC)
and Information Network Village (INVIL)
vii. Updating laws and statutes relating to science and technology as per global requirements
viii. Strengthening organizational support for the NCST, ICT and Bio-technology Taskforce
ix. Upgradation of Bangabandhu Sheikh Mujibur Rahman Novo theatre with large format
film and digital exhibits for attracting the young generation towards science and
technology
x. Encouraging science education through establishing the Science Museum and Digital
Planetarium/Novo theatre at each Divisional headquarter
xi. Establishing of a Centre of Excellence for transfer of technology

BCSIR

The main thrust of BCSIR during the SFYP will centre on:
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a. Training for the development of human resources
b. Modernization of laboratories and institutes
c. Promoting research on tissue culture, herbal medicine, bio-fuel, fruit-processing, etc.
d. R&D activities on new and renewable energy, tools and bio-metallic implant
e. Development of technology for preservation of food, fruits, vegetables and spices for local
market as well as for export
f. Pilot plant study on liquid fuels, re-cycling of bio-wastes, bio-fuels, etc.
g. Development of molecular techniques
h. Establishment of food safety laboratory and analytical research institute
i. Development of energy standard and ISO-17025 accredited instrumentation and
calibration laboratories
j. Setting up regional laboratories at Sylhet, Khulna and Barisal Divisional headquarters
k. Setting up three mobile laboratories for promoting and dissemination of science and
education, and
l. Support to university research for the development of scientific education.

BAEC

The main areas of activity during SFYP will be (a) expansion of medical diagnostic and
therapeutic services using nuclear and other state-of-the art techniques (b) strengthening of
non-destructive techniques as a part of quality control (c) strengthening of elemental and
analytical techniques (d) expansion of food preservation and sterilization and tissue banking
using radiation techniques (e) continuing environmental monitoring (f) development of
radiation processing (g) acquisition of capability in electronic instrumentation and
maintenance (h) acquisition of nuclear minerals (i) upgradation of Nuclear Safety and
Radiation Control Act, 1993 (j) development of human resources for nuclear technology and
(k) considering the paucity of indigenous primary energy resources, environmental dimension
of fossil fuels, energy security and the need for maintaining a long-term energy-mix, the
Rooppur nuclear power project will be implemented in SFYP.

BANSDOC

During the Plan period BANSDOC will concentrate on (a) transforming its library into digital
library with the ultimate goal for establishing a virtual inter-library (b) launching inter-library
cooperation and sharing at national and international level (c) establishment of new branch of
BANSDOC at Divisional level.

The infrastructural facilities of National Museum of Science and Technology (NMST) will be
expanded during this period for popularization of science and technology. During the SFYP

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period NMST will concentrate on (a) digitalizing of NMST (b) introducing museobus (c)
modernization of library (d) collection of 500 new exhibits (d) assist the science club in the
country and (e) establishing new science museum at Divisional headquarters.

NIB

National Institute of Bio-technology (NIB) will play a very significant role in the promotion
and advancement of bio-technology research in different areas. These include:
(a) animal bio-technology (b) plant bio-technology (c) fisheries bio-technology (d)
environmental bio-technology (e) microbial bio-technology (f) molecular bio-technology
(g) medicinal bio-technology (h) food bio-technology (i) bio-informatics;

Specifically following actions will be undertaken:

1. Establishment of bio-technology incubator;

2. Human resources development in bio-technology;
3. Strengthening of NIB. The NIB has the potential to become the coordinating centre for
technology transfer and human resource development in new and emerging areas of bio-
technology. During the SFYP period NIB will emphasize on increased productivity,
augment farm income, and reduce poverty through innovative application of genetic
engineering and bio-technology in Bangladesh.

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)

The Vision 2021 adopted by the Government envisages Bangladesh to become a digital
nation by 2021. For realizing vision 2021 designing of a comprehensive master plan has been
taken up with adequate elaboration of individual components of that master plan. The master
plan is being developed on the basis of a framework. The framework is built based on a few
important documents: Vision 2021, ICT Policy 2009.

The ICT Policy 2009 identified the objectives of ICT in development. They are: (1) Social
equity (2) Productivity (3) Integrity (4) Education and research (5) Employment (6)
Strengthening exports (7) Healthcare (8) Universal access (9) Environment, climate and
disaster management (10) Support to ICTs. The proposed framework captures the objectives
of ICT in development.

At the centre of the proposed framework will be a National Information and Knowledge
System (NIKS), which will be designed to provide the platform for developing and
delivering services to all citizens in rural and urban areas, particularly emphasizing service
delivery to poor and backward communities. In the model for ICT based economic
development the role of information has been considered as mission critical and the
completion of process of creation of a "universal' national information and knowledge
system (NIKS) is the core of all development activities. There are five components of the

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ICT based economic development framework which stem from the development of the
NIKS. They are:

1. Connecting citizens: Under this component all citizens of the country irrespective of
their residence, age, economic condition, race, sex, ethnicity, will have access to ICTs for
accessing information and knowledge required to perform their day-today activities. Such
access to information and knowledge will make the ‘digital citizens’ able to take informed
choice in exercising their rights and entitlements, increase their economic opportunities and
protect themselves from exploitation. The "connecting citizens" component will be built
around (i) An inclusive information and knowledge system by way of allowing access to an
information and knowledge system for all citizens through the various channels of ICTs and
access to locally relevant content in Bangla language; (ii) Deployment of specific programs
and projects through ICT for employment generation, promotion of agriculture, access to
quality health care particularly maternity health care and digital empowerment of women; and
(iii) Establishment of two-way channels for promote participation of grassroots in policy
discourse and effective feedbacks to the policy makers on particular policy adjustments.

2. Human resource development: The education system will be restructured so that it

ensures a higher quality of education which will produce skilled human resources for meeting
the demand of domestic knowledge-based economy as well as global demand for quality
human resources. The role of ICT in boosting the quality of education will be emphasized and
steps will be taken for narrowing the ICT skills between urban and rural people. The human
resource development component will have four parts:

• Building E-learning Infrastructure: One school one computer lab, smart class room with e-
learning facilities

• ICT in elementary education: Creating facilities for ICT education for accessing
information and knowledge for school children;

• ICT based higher education: Mainstreaming ICT in education process for collaborative
learning of core courses;

• Vocational ICT training: Creation of facilities for youth to learn ICTs for jobs at home and
abroad and self-employment.

3. Digital government: Work flow in government and semi-government offices will be

fully integrated with ICTs through re-engineering of government’s business process. This will
bring efficiency in the decision making process as the government can now take informed and
timely decisions on various policy matters due to data generation system from grassroots to
the national level. Digital government also will also increase transparency government through
implementation of "Right to Information" legislation, which also ensures participation of
citizens in decision making process using ICT tools. There will be three specific sub-
components of "Digital Government":

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• Building sound legal and policy infrastructure of the NIKS: Creating appropriate dynamic
legal and policy system to unleash potential for participation of citizens, private sector,
development agencies and government for creating new services;

• E-Administration: business process re-engineering for the government agencies for

efficient and transparent decision making and accessing, for improvement of transparency
of the government

E-Citizen Services: Converting traditional service delivery mechanism into e-service

delivery system to bring "service at the door step of citizens".

4. E-Parliament: Digital Parliament is one of the important components of vision of

‘Digital Bangladesh’. All documents and records of Constituent Assembly of Bangladesh
(1972) and the documents since the 1st Bangladesh Parliament will be digitized. With that
view a data base can be developed and published in the web site. Ultimate target is to build an
e- Parliament – a paperless Parliament where the Members of Parliament can submit their
notices electronically and get every response from the Parliament electronically.
5. E-business: The general economic and business activities will be carried out through the
use of ICT which would enable business to utilize maximum potential with appropriate human
capital created through digital education. Businesses irrespective of their size can avail ICT for
production and access to market domestically and internationally. Businesses also can transact
and make payment off line and online internally and globally.
6. Institutional and financial framework for Digital Bangladesh agenda: There are two
sub-components of this component:
• Intuitional framework for implementation of digital Bangladesh agenda.
• Resource Allocation and Fiscal measures.
• The Parliament of Bangladesh can have a legislative calendar to ensure maximum
utilization of parliamentory session in time.

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Review of Past Progress

The National Telecommunications Policy (NTP), 1998 was a first step taken by Government
towards developing a clear policy stance in telecom. As a first effort it was largely open-ended
and there was inconsistency between some aspects of the policy. There was negligible focus
on technological convergence and in many ways the policy statement did not address the key
challenges facing the industry, which are reform of BTTB, privatization, and measures to
encourage significant amounts of new investment. These changes happened outside of the
purview of the policy. The NTP 1998 created confidence among the market players and actual
progress exceeded expectations of the stakeholders.

The government decided in June, 1998 to withdraw all import duties and VAT from all
computer hardware and software, which fortunately coincided with global reduction of prices
of computer hardware. This has brought the prices of computers down to a level affordable by
middle income households.

The National ICT Policy was adopted in 2002. The policy was updated in the year 2009.
Ministry of Science and Information & Communication Technology (MoSICT) undertook
several Programs from Revenue Budget and Projects from Development Budget to foster a
sustainable e-Readiness in Bangladesh. These are: (1) TIER 3 Certified National Data Center;
(2) Government wide Network Infrastructure under Korean and China Exim Bank Credit; (3)
Human Resource Development through establishment of Computer Training Labs at
secondary and higher secondary schools and colleges; and (4) Promotion of IT/ITES Industry
in the country.

Current Trends in ICT Development

The ICT Policy of Bangladesh aims at building an ICT-driven knowledge-based society. In the
light of this policy Bangladesh’s ICT sector is growing at a rapid pace, with increased
involvement from local and foreign investors. Submarine cable has connected Bangladesh to
the global information superhighway. The Bangladesh Association of Software and
Information Services (BASIS) estimate the value of ICT industry in Bangladesh at US$ 150
million, and growing at an estimated 20 percent per year. According to the Bangladesh
Computer Samity the number of sector-wise companies has been growing as shown in Table
6.1

Table 6.1: Growth of ICT Sector-wise companies in Bangladesh

Sector/year 2000 2001 2002 2003 2004 2005 2006
Hardware 1200 1600 1900 1950 2000 2200 2500
Software 100 190 240 275 300 320 350
Internet service provider(ISP) 30 40 80 100 130 140 150
Training and other 100 150 150 140 130 140 150
Source: Industry Profile and Statistics Bangladesh, Bangladesh Computer Samity

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Computers are now widely used in offices, businesses, educational institutions, at home and in
the field. Besides, a number of cyber cafes are also providing e-mail and browsing facilities in
all the major cities of the country. The annual market size for IT including computer hardware,
peripherals and software was estimated to be worth approximately US$ 25 million (Figure
6.3). The market is fast growing at an annual rate of over 25% and is forecast to rise to US$ 43
million in 2009 (BOI). Software export has seen significant growth over recent years, rising
from US$ 12.6million in 2005 to over US$ 27 million by 2006.

Figure 6.3: Value of Bangladesh Software Exports (US$ m)

Source: Export Promotion Bureau of Bangladesh

Computer hardware accounts for around 65% of the IT market in Bangladesh while software
and IT services account for the rest 35%. The local packaged software market is dominated by
multinational companies, with Bangladeshi software companies accounting for 25-30% of the
local packaged software market. Software applications comprise more than half the packaged
software while systems infrastructure make up 30% and applications development and
deployment makes up the balance. Hardware and software support and installation are the
largest segment of the IT market, accounting for 40% of revenues. IT education and training
account for 8% of the market.

Figure 6.4: Composition of the IT Sector in Bangladesh

Source: Board of Investment

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Telecommunications sector in Bangladesh experienced robust growth during the last one
decade. While mobile teledensity had been predicted to reach 10 percent by 2010, actual
teledensity by end of 2008 stood at 31.21 percent, more than thrice the target. There were 52
million mobile phone subscriptions by the end of 2009. Competition policy and deregulation
account for this phenomenal growth in the mobile sector. In contrast, the fixed/PSTN market
observed modest growth, with only 1.19 million—PSTN subscribers (17.82 percent) at the end
of 2008 slightly up from 1.01 million in June 2006.

A probable reason for the sluggish growth in PSTN may be issuance of too many licenses and
uneven competition with mobile telecom industry. All PSTN operators are choking now
competing with the mobile phone operators. The fierce competition among the mobile telecom
operators led to a nosedive in call rates within the domestic market. Bangladesh offers the
lowest mobile phone call rates among South Asian countries.

In contrast to mobile service uptake, Internet adoption was slow, mainly due to the high price
of Internet connectivity. However, after Bangladesh got connected to the information super
highway via the SEA-ME-WE4 submarine cable, the quality of Internet connectivity
improved. Data transfer capacity went up to 14.78 gigabytes per second, 64 times higher than
total capacity at the time of installation in May 2006. The bandwidth price was also
subsequently reduced by the state-owned Bangladesh Telecommunications Company Limited
(former BTTB. However, the reduced rate is still much higher than the price for the same
bandwidth in India.

So far, the only submarine cable network is operated by BSCL. In May 2008 the government
decided to allow the private sector to install and operate a submarine cable. Following this
decision, the government gave license to a private company in 2009 to create a fiber optic
network around the country. ISPs have been given telephone licenses to make
telecommunication services more affordable.

To increase countrywide internet services via submarine cable, internet bandwidth price has
been reduced by 33%. As of 2010, the number of mobile internet users was estimated to be
around 5 million. Of this, around 4.5 million access the internet using mobile phone. The
government implemented the International Long Distance Telecommunication Services Policy
(ILDTSP) in the second half of 2008. However, illegal Voice over Internet Protocol (VOIP)
services continued due to inappropriate pricing policy of internal and local call termination.

E-governance and Digital Content Initiatives

Initiatives to migrate to e-governance: To migrate to e-Governance by 2014,

implementation of an IT road map, designed and adopted by the government, initiatives are
well underway. The Office of the Controller of Certifying Authority (CCA) began functioning
to launch digital signature with an aim to introduce e-commerce by 2012. As a first step to
digitalizing the manual file management system, a Digital-based Filing System has been
introduced in the establishment ministry and its subordinate offices. The government has
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established Community E-centers in 133 Upazilas to ensure easy access of rural population to
information technology and thus minimize the digital divide. Measures are being taken to
bring 4,409 Union Parishad Bhabans under the optical fiber network. Steps have also been
taken to establish one crore land phone connections and convert 8,000 rural post offices in
phases into Community Information Centers (CIC) within a short span of time.

As part of the program to introduce compulsory computer and technical education at

secondary and primary levels by 2013 and 2021 respectively, steps have been taken to
establish computer laboratories in 1,200 educational institutions at Upazila level in seven
divisions and in 200 educational institutions in six metropolitan cities. Tax rebates are
proposed on any assistance made to schools and colleges under MPO (monthly payment order)
for improving computer education. This has been proposed with a view to encouraging
Corporate Social Responsibility (CSR) activities in this sector.

Besides, the South Asian Sub-regional Economic Cooperation (SASEC) Information Highway
project has been undertaken, to strengthen regional cooperation and establish connectivity
between India, Nepal, Bhutan and Bangladesh.

Digital content initiatives: Enhancing relevant digital content has become a major issue as
PC penetration and Internet access have increased across the country. Without locally relevant
content, ICTs are of no use to people. Content development is now a priority not only of the
private sector and civil society organizations but also of government. The content issue has
been highlighted in the draft Broadband Policy. Government has recently established infokosh
(Web Portal) that provides key information on the activities of different
ministries/divisions/agencies.

The most noteworthy government initiative is with content both in English and Bangla
languages. The website of the Bangladesh Government Press or BG Press is facilitating access
to government information. In the mean time 64 district portals have been made operational
and construction of 5,000 government websites is under way. BG Press is the single point of
publication of all gazettes and documents related to the functioning of the government and
state. An earlier digital content initiative by government made government forms more
accessible to citizens via the website www.forms.gov.bd. People access the forms through
telecentres which charge a minimal fee for downloading and printing the forms.

The downloadable forms include passport application, visa application, citizenship form,
pension form, Internet connection (BTCL), birth registration, income tax return, and driving
license. The availability of these forms online helps citizen’s access government services in
less time and costs. The website is bilingual. Those who cannot read can get the forms from
telecentres, which are now becoming popular in rural Bangladesh

Use of digital technology: Use of digital technology in educational institutions has been
increasing rapidly. SSC and HSC results are now available via mobile and internet and are

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also e-mailed to the educational institutions. Using data obtained from the Education Boards,
Shahjalal University of Science and Technology, Sylhet, completed its administration
registration process via mobile-phone-based applications. In 2009, for the first time, results of
medical college exams were available through mobile SMS system.

To make high speed internet more affordable for students of Shahjalal University and Dhaka
University, special free Wi-Fi zones have been created. To ensure timely availability of
textbooks to students, they have been published online. The science and ICT ministry has not
only set up computer labs in 128 schools in 64 districts, but has also appointed IT
professionals there.

The country’s 800 health centers have been given internet and mobile connectivity. Several
telemedicine centers have been built. Along with mobile health services by the private sector,
upazila health complexes have started offering similar services. To ensure equal access to
technology for all, the government is setting up community e-centers/tele-centers all across the
country — there are more than 2,300 of them now. The Registrar of Joint Stock Companies
and Firms has digitalized its registration process. Bangladesh Bank started an automated
clearing-house on a trial basis since November 2009.

Initiatives from the Non-government Sector

Apart from government initiative, a number of initiatives have been taken in the non-
government sector. D.Net was the pioneer in development of digital content in Bangla
language. In 2003 D.Net started research on content development targeting the rural poor.
Since then, a huge content base in Bangla has been developed. D.Net initially focused on the
CD-ROM version of the content since Internet connectivity was not available in the rural areas
at that time. But with the availability of access to the Internet through EDGE or GPRS from
almost anywhere in Bangladesh, the Web version is available. The second largest Bangla
website is dedicated to human rights issues and provides legal practitioners with access to the
full text of laws, explanation of laws, addresses of legal redress institutions and the like. Local
digital livelihood content generation by NGOs gained further momentum in 2007. Bangla
Wikipedia (bn.wikipedia.com) is also getting richer with participation of large number of
volunteers.

Besides, “Digital festivals” and “IT festivals” have been held in various parts of the country to
familiarize the people with ICT use. Even a remote place like Bagerhat organized a knowledge
festival. BCS, BASIS and Bangladesh Open Source Network took active part in these
festivals, which have increased people’s interest towards computers.

Role of ICT in Creating Equitable Job Opportunities

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Access to ICTs is just a first step towards creating equitable opportunities for citizens. It has
two distinct elements: communication infrastructure including high speed broadband, and,
physical access points. In a country where 38% of the population lives below the poverty line,
personalized access to ICTs for all citizens is a remote possibility in the near future.
Community-based public access to ICTs is can be an interim solution for providing access to
ICTs for all. However, as the proportion of population with mobile handset is increasing,
services should be designed also for accessing ICT through mobile phones.

In Bangladesh, private sector and non-government agencies have been leading in enabling
public access to ICTs through telecentres of various varieties and brands. The number of such
telecentres is above 2,500. The government has also started establishment of telecentres in
local government offices and other relevant institutions.

Services through ICT channels are very helpful in gaining employment opportunities. The
private sector is offering ample services in this regard. An example is bdjobs.com, which was
established in 2001 and which now has a monthly page view volume of 8,00,000 and 14,000
daily visitors. According to their records, over 2,500 employers in Bangladesh have recruited
more than 35,000 professionals at different levels through the bdjobs.com service.

ICT in Access to Health Care Facilities

A number of help lines are now offering consultation and counseling on various issues.
Grameen Phone's 789 and Bangla Link's 789 for health and Bangla Link's 7676 for agriculture
offer consultation with experts. D.Net's Teletathya is the oldest helpline in the country
leveraging mobile phone penetration since 2004. This helpline offers counseling on
agriculture, health, education, human rights and information government services. It also
offers directory services. BIID offers networking among farmers through its 'e-krishok'
initiative. The most significant e-health initiative till date is the Amader Gram Breast Cancer
Initiative, which offers free of cost diagnosis and treatment of breast cancer for women.

Role of ICT in Education, E-learning and Human Resource Development

ICT has the potential to improve the quality of learning, expand access to learning
opportunities and increase the efficiency of the administrative process. Through use of
computer, the learning process shifts from learning-by-telling to learning-by-doing. However,
for this to happen, extensive teacher training in the new technology is also necessary.
Teachers may be equipped with learning aids for enhancing their skills and using them in the
class room for enhancing learning experience of the students.

In Bangladesh, lack of local educational content is a barrier to increased use of ICT in schools.
To address this gap, the Institute of Education and Development at BRAC University, in
collaboration with Foundation of Education Research and Education (FERI) and D.Net, a
Bangladeshi research institution promoting ICT 4 development, developed interactive digital
content for Grades 6-10 students of Science and Mathematics.
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Training in ICT vs. job availability: ICT education in Bangladesh is generally concentrated
at the tertiary level. Although there is an optional course on computers in the secondary
schools, the course curriculum is outdated and there is little opportunity for hands-on practice.
Skilled human resources are currently in high demand but short in supply.

It has been observed that graduating ICT students are unable to find employment. There is a
great gap between the academic and professional sectors. The ICT topics taught widely do not
always match the needs and priorities of the private sector. Students learn the requisite
theoretical and technical skills but do not know where to apply them: career counseling and
formal contact with the private sector is non-existent or too general to be of any benefit to ICT
students. Education in the ICT field is seen as formal and theoretical and as a result it does not
convey the real picture of the private sector.

Constraints to ICT-related activity

Lack of capacity building: There is a great lack of capacity building. The teachers of colleges
under National University as well as the new universities of science and technology are not
sufficiently trained to adopt current changes in science and technology. The in-house and
overseas training facilities are not adequate for the scientists working in the field of cutting
edge technology.

Limited access to scientific sources: Research institutions and universities in general do not
have access to high speed internet connectivity. Thus access to scientific resources is limited.
Most often there is no budgetary provision for subscription of scientific online resources.

Electricity and power instability: Availability of continuous power is the biggest logjam in
physical infrastructure. Power generation capacity in Bangladesh is still among the lowest in
the world. Frequent power failure and low voltage stand as a big hurdle for software
companies in Bangladesh. Domestic and international companies are working to find solutions
such as low-power ICT equipment.

Lack of coordination among ministries: Implementation of National ICT Policy 2009 is

being carried out by a number of Government entities but there is low level of coordination
amongst them. This acts as impediment towards timely completion of these activities.
Currently as per the rules of business of the government, the responsibilities for ICT activities
are fragmented across three ministries: Ministry of Post and Telecommunications (MoPT),
Ministry of Science and Information & Communication Technology (MoSICT) and Ministry
of Information (MoI). MoPT is responsible for telecommunication infrastructure; MoSICT
through its ICT Division (ICTD) is responsible for e-Government and IT/ITES business
promotion while MoI is responsible for Broadcasting. ICTD conducts its activities through its
3 organizations: Bangladesh Computer Council (BCC), Office of the Controller of the
Certifying Authority and High Tech Park Authority. The country’s lone ICT Incubator is
operating at Karwan Bazar and the 12 storied building Janata Tower is now being renovated to
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establish the IT/ITES Technology Park in Karwan Bazar. The ICT Division through High
Tech Park Authority is in the process of appointing Park Operator for the Kaliakoir High Tech
Park and has also initiated the process of acquiring lands outside Dhaka for the establishment
of IT/ITES Technology Parks.
Various e-governance implementations are now being implemented by Access to Information
Program (A2I) under Prime Minister’s Office and Bangladesh Computer Council (BCC) under
ICT Division.
Though lack of coordination among various agencies in implementation of ICT project is one
of the challenges but the situation is improving. Ministry of Local Government and Rural
Development, Bangladesh Computer Council and A2I Program have successfully
implemented 4501 Union Information Service Centers and more collaboration at various
levels is taking place.

Vision, Objectives, targets and Strategies for ICT in the Sixth Plan

The vision of the government is to make Bangladesh the most preferred destination for ICT
and ICT- enabled services through the combined efforts of all stakeholders in both the public
and private sectors.

The objective during the Sixth Five Year Plan will be to make an effective and maximum
utilization of ICT to improve the quality of life of the citizens and promote inclusive growth
through human resource development, so that Bangladesh can find its proper place in the
community of nations.

Targets

The major Targets of the ICT sector in the Sixth Five Year Plan will be broadly as follows:

1. Expansion of infrastructure facilities for development of ICT sector for transforming the
country into Digital Bangladesh.

2. Development of ICT skills in public and private sectors for ensuring productivity and
efficiency of the economy and using ICT for good governance.

3. Ensure women participation in all professional trainings.

4. Development of national network for establishing connectivity in all government offices

and public key infrastructure for electronic transactions.

5. Encouragement of IT enabled services and establishment of ICT incubator, Software

Technology Park and IT Village in suitable locations of the country.

Main Elements of ICT Strategy

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The main strategic elements for the development of the ICT sector in the Sixth Plan are
presented below.

Development of a comprehensive master plan: The Sixth Five Year Plan will be designed
as a part of a Master Plan developed for an 11 years period (FY 2010 - FY 2021). The Master
Plan will be developed on the basis of existing works done by the ICT stakeholders in the
country. The ICT Policy 2009 will be taken as a starting point for the development of the
Master Plan. Huge energy was given in developing the revised ICT policy by stakeholders
from all four segments of Digital Bangladesh concept. It captures works and recommendations
from people of all walks of life during last 20 years. The Master Plan will be designed in a
way so that the plan is incorporated in five-year planning process and annual national budget
preparation process. The National ICT Task Force will be involved in the process of
development of the Master Plan.

Framing of a universal access policy: The country does not have universal access policy.
Public access to ICTs created fully on commercial basis denies access to citizens who are
unable to pay for services. A hybrid model proved to be better for creating balance between
crucial information services, which are less attractive in terms of income generation, and
services which may generate income by serving better off part of a community. Income
earning potential varies, and there is high correlation between income potential and severity of
poverty in a particular location. High speed Internet connectivity can change the whole
scenario of access to education, health care and government services. Thus, one of the priority
agenda for the government will be creation of Internet infrastructure and make the bandwidth
free for rural population at least for the whole period Sixth Five Year Plan. The free bandwidth
may be for maximum 512 kbps, which is adequate for accessing rich content.

Developing legal and regulatory environment for ICT development: There is a need for
formulation of universal access policy and broadband policy for ensuring equity in ICT-based
growth and development. To implement this policy, details of the relevant rules such as the
Patent Law, Secrecy Act, Consumer Protection Act, Trade Mark Act, Foreign Exchange
Regulation Act and Income Tax Act should be taken into consideration so that there is no
infringement of rights or violation of existing rules in implementation of the ICT Policy.

Ensuring access to Government information: Information is the currency of democracy.

Government agencies are among the most prolific collectors and generators of information
that is useful and valuable to citizens and business. Improvement of the nation's information
infrastructure provides an opportunity for the citizens to be updated about the measures taken
by the government in different sectors of the economy as well as government policy stance on
important issues. It also alerts them about their duties as responsible citizens of the country.
Thus improvement in the collection, compilation and easy dissemination of government
information will be a target of the Plan

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Promotion of e-commerce and automation of financial sector: The financial sector in
Bangladesh has made rapid progress in adopting new technology for better and prompts
service. Various ICT-based services like ATM, POS internet banking, etc. are in use. Absence
of system of e-payment in Bangladesh is holding back the potential of e-business and e-
commerce. However, unmonitored use of such a system can give rise to corruption. Therefore,
identifying ways and means of promoting e-commerce, while protecting the national interest,
will be a focus during the SFYP.

Establishing E-citizen services: Both government and non-government institutions offer

online services, which range from information services to e-commerce. The government’s
SICT program initiated and in some cases completed over 40 e-governance projects of varying
sizes across many government agencies. Expansion of e-citizen service with facility for
women and disabled and increase its accessibility to rural and under-served areas of the
country will be a target of the Plan.

Enabling E-participation in decision making: ICT creates opportunity for improving

transparency as well as for participation of people in decision making process. Web 2.0 tools
in local language have become a powerful tool for inclusive policy making by creating a two-
way channel. Bangladeshi citizens are very active in various global online platforms and
exchange ideas and promoting democratic practices. On national level, the government can
obtain public opinion on vital issues through public opinion polls which are prevalent in
developing countries. Encouraging E-participation in matters of public interest will be a target
for ICT in the Sixth Five Year Plan.

Developing curriculum-based computer labs for educational institutions: The government

has established 1800 state-of-the-art computer labs in 128 educational institutions. The
Ministry of Science and ICT is planning to establish more 1200 computer labs in various
educational institutions. However, for sustainability of ICT education curriculum-based
computer labs will be established during the sixth Five Year Plan. The opportunity of teaching
mainstream subjects will also be explored. Steps will be taken to introduce multimedia
teaching system. Teachers will be trained for developing course contents for multimedia
presentation.

Expanding digital content in Government websites: As part of the government’s overall

policy of increasing transparency, expanding digital content will be a target of the government
in the Plan. The launching of the Bangladesh Government (BG) Press in February 2008 was
an important event in the history of facilitating access to government information. BG Press is
the single point of publication of all gazettes and documents related to the functioning of the
government and the state. Initially, the website will publish gazettes released in 2008 and
2007. An earlier digital content initiative made government forms more accessible to citizens
via the Web service. Many people access and download the forms through telecentres for a
minimal fee. It may be mentioned here that some private and foreign as well as donor

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organizations are involved in developing digital content. The opportunities for expansion of
their activities will be explored.

Attracting local investment and FDI in ICT sector through PPP initiative: The vast scope
for expansion of ICT sector in Bangladesh is evident from its international ranking in terms of
teledensity and outreach. Existing incentives including fiscal and financial incentives will be
advertised more vigorously for attracting local investment and FDI in ICT through the PPP
initiative.

Specific Policies and Actions during the Sixth Plan

The main policies and actions to be taken for achieving the ICT targets in SFYP will be as
follows:
i. Increasing public sector allocation for the advancement of ICT in Bangladesh.
ii. Developing ICT infrastructure facilities and expansion of connectivity even to the remote
places of Bangladesh.
iii. Transforming traditional file-based administrative work in the public sector into e-
government/digital government for better and efficient services to the people.
iv. Expanding education in ICT to cover at least 80 percent of enrolment at secondary and
higher secondary levels and 60 percent at graduate levels.
v. Training would be women friendly and less expensive.
vi. Training of ICT personnel in selected fields at post graduate levels on a massive scale.
vii. Effectively linking entrepreneurs within the country with the available ICT both at home
and abroad through a national network.
viii. Exposing the country as a whole to the process of change and progress at the frontiers of
production, development, knowledge and the market through ICT.
ix. Establishment of IT incubator, software park, IT village and community e-centre at
suitable locations of the country.
x. Assessing the need for focusing research in computer software development in the public
and private sectors.

Institutional Reforms for Facilitating the Expansion of ICT

Creation of a "Digital Bangladesh Secretariat" under the Prime Minister's Office:

During the tenure of Awami League Government (1996-2001) a National ICT Taskforce was
formed to accelerate development in the ICT area. Although task force was not abolished
during the tenure of subsequent governments, the Taskforce remained under utilized. The
government has reconstituted the ICT Taskforce as Digital Bangladesh Taskforce. To facilitate
the activities of the Digital Bangladesh e-governance cell at PMO may be upgraded to Digital
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Bangladesh Secretariat (DBS) to minimize inter agency/organizational conflict. The DBS will
ensure regular and timely meetings of the Taskforce and the executive committee of the
meeting and conflict resolution between various entities implementing e-government. The
Bangladesh Computer Council may be strengthened and empowered with skilled and trained
manpower to support the establishment of digital Bangladesh.

Single Point for ICT Infrastructure

A strong Ministry of ICT will be the first step towards institutional reform. This Ministry will
be the key entity for supporting the master plan through ensuring robust ICT infrastructure.
The formation of a strong ICT Ministry may take place in the following manner:
a) Since information and Communication Technology encompasses the activities of
MoPT, ICT Division under MoSICT and part of MoI. These activities which are part of
ICT may be put together under Ministry of ICT. Since this convergence may take time
the activities of MoPT and ICT Division can be strengthen to promote ICT in the
society.
b) S&T Division under MoSICT may be encouraged to promote Science & Technology in
the society to nurture entrepreneurship in the society. The S&T Division should be
strengthened to expedite implementation of nuclear power plant and promote
development of local technologies.
c) Reconstitution of Ministry of Information after transferring Broadcasting to Ministry
of ICT to manage the information content in the media to portray positive image of
Bangladesh. This may lead to increased foreign investments.
d) Placing BTRC, BCC, High Tech Park Authority and Office of the Controller of
Certifying Authority under reconstituted Ministry of ICT.

Coordination of e-Government activities

The e-Governance cell on upgrade to Digital Bangladesh Secretariat will provide secretarial
service to the Digital Bangladesh Task Force. It will liaise with the MoPT, ICT Division under
MoSICT and MoI to compile e-government and ICT related national indicators. The ICT focal
points in each ministries/Divisions will coordinate the activities of Digital Bangladesh. The
automation of all ministries/divisions/agencies will be focused on improved service delivery.

e-Citizen centric activities under DBS: DBS will promote e-Citizen centric activities by all
ministries/divisions/agencies. The ICT Focal points may be utilized to disseminate the idea of
e-Citizen to provide service to all. The reduction of digital divide will also be tackled under
this activity.

Promotion of ICT based education: DBS will promote ICT based education in all public and
private educational institution. To achieve the targets set in MDG the DBS will assist in
institutional capacity building to mainstream ICT in the education.
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Single window for ICT business coordination: High Tech Park Authority will provide
single window service to all investors in the ICT sector. The service through single window
will be comparable to other countries in the region to promote ICT based industry in the
country.
Introducing financial rewards for promoting S&T and ICT: To promote young talents in
Science & Technology and ICT the government may explore avenues for granting financial
awards to students for exemplary achievements.

Promoting R&D in ICT: Scientific institutes are often unable to mobilize sufficient long-
term resources for R&D. In many cases there is hardly any R&D agenda. To overcome this
hurdle, the SFYP will ensure that the approved R&D strategy is adequately funded.

Establishment of technology-business Incubators: Technology-business incubators will be

established so that the results of basic research can be transformed into new technology. These
industries will be encouraged to invite research students working in basic science in the related
field with the objective of promoting technology transfer.

The University Resources Centre (URC) and Bangladesh Education and Research Network
(BdREN) were established for better coordination and cooperation between the Universities
and the University Grants Commission of Bangladesh. This has paved the way for our
students, teachers, officers and researchers to enter into the world-wide information
technology network. University Grants Commission (UGC) can play a very important role in
building up an online library or a portal to have access to the world class journals for research
purposes. These journals usually are very expensive for subscription and sometimes it is not
possible for a single university to become its member. As Bangladesh is lagging behind in the
field of research and the universities generally do not share their research topics or outcomes
with others, lack of knowledge sharing is a common problem.

BERNET can act as a centrally controlling body for the knowledge sharing activities of the
universities. It can negotiate with the universities for information sharing so that other
researchers can take advantage of available information rather than starting from scratch. In
the private sector, the Bangladesh Computer Society (BCS) and Bangladesh Association for
Software and Information Services (BASIS) play important roles in promoting the ICT
industry. The ISP Association, Bangladesh, also facilitates the growth of ICT in the country.
Both BCS and BASIS organize annual exposition of software and applications and hardware.

STRENGTHENING THE SUPPLY SIDE OF ICT

Ministry of Post and Telecommunications (MoPT)

The Ministry of Post and Telecommunications (MOPT) is responsible for facilitating the
growth of telecommunication needs and introduction of new technologies. The MoPT plays an
important role in the development of ICT services in Bangladesh through enhanced
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accessibility to telecom and postal services. It gives special focus to extend telecom and
internet services to rural areas of Bangladesh with the aim of fulfilling the “Vision 2021” of
the Government of extending telecommunications up to the village level and also bring all
Upazilas under internet connection. The departments and agencies of the MOPT are:
1. Bangladesh Telecommunications Company Ltd. (Former BTTB has been divided into
BTCL and BSCCL)
2. Bangladesh Submarine Cable Company Ltd. (BSCCL)
3. Bangladesh Post Office (BPO)
4. Teletalk Bangladesh Ltd.
5. Telephone Shilpa Sangstha (TSS)
6. Bangladesh Cable Shilpa Limited (BCSL)
7. Bangladesh Telecommunication Regulatory Commission (BTRC).

The Ministry of Posts & Telecommunications is trying to facilitate the ICT sector during last
few years. But the adoption of ICT is very limited in all the sectors. The adoption of ICT
policy (2009) and some success in the ICT sector are the success in this sector. Lack of
awareness of the benefit of ICT use insufficient telecommunication infrastructure, low density
of internet connectivity, expensive internet access, absence of adequate legal and regulatory
frameworks and lack of know-how about ICT among public officials are the reasons of the
slow flourishing of ICT use.

Objectives and Targets of Tele-Communication during SFYP: One of the prerequisites for
accelerated economic growth of Bangladesh in a competitive environment is the availability of
adequate telecommunication services for quick acquisition and dissemination of information,
both inside and outside the country. The government, in its election manifesto, has set year
2021 within which a Digital Bangladesh will be built. The sixth FYP will also target to fulfil
the millennium development goals in the field of ICTs.

The major objectives of the Sixth Plan for the telecommunication will be to:

• Ensure universal access opportunity to the mass people through harmonious development
of networks and exchanges throughout the country.
• Build a well-developed, strong and reliable telecommunication infrastructure for effective
implementation of ICT Policy, Broadband Policy and ultimately for complementing Vision
2021.
• Ensure optimum utilization of resources specially expert, trained and untrained manpower.
• Reduce digital divide between ‘have’ and ‘have not’, urban and rural areas etc.
• Ensure optimum output from investments by coordinating all services provided by the
systems and networks.
• Provide cost-effective telecom services to the people.
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• Produce low cost Laptops to popularize e-learning particularly for the students.

Targets and Milestones

• Bring all Upazilas and important growth centres under optical fibre network to provide
modern telecom facilities.
• Extend High Speed Internet services up to rural areas through Next Generation Network
(NGN)/ WiMax Technology.
• Construction of modern Data Centres at the important cities to support IT enabled service
providers.
• Provide Triple Play (Voice, Video & Data) service through a single converged network.
• Establish a modern Billing Centre for improving quality of revenue management service.

Strategies

• Coordinating among old systems and new latest systems to be built/ installed for effective
utilization of the investments.
• Develop business by commercializing, re-building and focusing on customer needs
throughout the country.
• Reduce operational expenditure (OPEX) through adoption of appropriate and cost-
effective technology.
• Upgrading professional training in ICT and modern technology.

Constraints

• Subsidized operation in rural areas

• Lack of capital investment
• Lack of skilled manpower oriented in the latest technology.
• Non-availability of uninterrupted commercial power
• Unexpected Delay in project implementation
• Absence of Universal Service Obligation (USO) fund.
• Rapid technological development in telecom sector and problem of matching with these
changes.
• Low level of salary in comparison with private sector.
• Lack of marketing approach

The submarine cable network is to be the main infrastructure for “Digital Bangladesh” as
planned to be achieved by the year 2021. Bangladesh Submarine Cable Company (BSCCL) is
providing submarine cable Bandwidth through SEA-ME-WE-4 cable system and contributing
to the revenue earning of the Government of Bangladesh.
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Bangladesh Post Office

Development Targets for SFYP: The development targets of BPO for the SFYP are shown
below:
• Procure and distribute at least one vehicle per mail line in order to expedite the mail
collection, transmission and delivery system throughout the country by 2013.
• Render all the departmental post office buildings secure for complete protection of
government properties by 2013.
• Give training to all officers and staff of Bangladesh Post Office in order to render them
capable of performing their duties in an IT-enabled work environment along with
imparting them other essential skill building training and implementing other Human
Resources Development Techniques by 2013.
• Bring 461 post offices under automation by 2013.
• Bring 304 post offices under automation by 2015.
• Convert 2220 rural post offices into Post e-center by 2013.
• Convert 1480 rural post offices into Post e-center by 2015.
• Completion of construction of 1776 rural post offices by 2013.
• Completion of construction of 1200 rural post offices by 2015.
• Completion of construction/reconstruction/extension of 420 Head Post Offices/ Sub Post
Offices / Upazila Post Offices/Mail & Sorting Offices by 2013.
• Completion of construction/reconstruction/extension of 280 Head Post Offices/ Sub Post
Offices / Upazila Post Offices/Mail & Sorting Offices by 2013.
• Expansion, Remodeling & Renovation of Dhaka GPO for Maximum Customer
Satisfaction by 2012.
• Construction of Postal Directorate (Dak Bhaban) at Sher-e- Bangla Nagar, Dhaka by 2015.

Development Strategies for Meeting Targets: To meet the targets, BPO has spelled out a
number of strategies, the main ones being: providing institutional autonomy and financial
flexibility to operate a business; harmonize the domestic and international postal networks;
incorporate modern technologies to provide customer responsive products and services and
improve and expand postal services to under-served areas and help alleviate poverty and rural
isolation. Additionally, the post offices throughout the country will be converted into
development and outreach centers to serve the special needs of the poor for information
technology and banking services (Box 6.1).

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 Box 6.1. Converting Post Offices into Development Centers
About 1500 Post offices in Bangladesh has been modernized as ‘call-centers and information
centers’ to provide Information-Communication-Technology and financial services in addition
to their traditional services.
During the SFYP the special programs will be undertaken to transform country’s post offices
into ‘call-centers and information centers’ to provide following services: (i) quasi-banking
services which may include deposit, and remittance of foreign funds; (ii) distribution of funds
under the various ‘social safety net’ programs operated by the government; and (iii) access to
information and technology using the internet and web facilities.

STRATEGY FOR KNOWLEDGE DISSEMINATION

Knowledge generation is useful only to the extent that this knowledge is made available to the
citizens in a low-cost and timely manner. Telecommunications is critical for this. At the same
the print and digit media have very important roles. Steady progress has been made in
deregulating the television activities, although the Bangladesh Betar is still a public monopoly.
Similarly, progress has been made in promoting a very active print media. Today, the media
(print and digital) has become a major player in promoting good governance and economic
development through timely processing of good knowledge and information and making it
widely available.

This strategy will continue and strengthened in the Sixth Plan.The Government through the
Ministry of Information will facilitate the growth of knowledge dissemination activities and
ensure the freedom of information consistent with protection of public interest. Bangladesh
Television and Bangladesh Betar will be encouraged and strengthened to provide best possible
knowledge and objective information through technical upgrading, better management and
better staff quality.

RESOURCE ALLOCATION FOR KNOWLEDGE MANAGEMENT IN THE SIXTH

PLAN

The Government puts high priority to strengthening knowledge management activities in

Bangladesh. The resource requirements are large. Given the overall resource constraints, a
significant part of the financing will come from private sector in terms of investment in
technology and related service facilities. However, the Government will take the lead role in
areas relating to scientific education, research and development as well as in key support
services including knowledge planning, prudential regulations, core technology related
infrastructure and support institutions. The Sixth Plan knowledge strategy is built around this
strategic partnership between public and private sector institutions. A part of the funding will
also come from the resources mobilized by service agencies including BTCL and the Postal
Authority.
Based on these strategic considerations, the planned development allocations for the Sixth
Plan period in current and constant prices are shown in Tables 6.2 and 6.3.
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Table 6.2: Development Resource Allocations for Knowledge Economy in the Sixth Plan
(crore taka; current price)

Ministry FY2011 FY2012 FY2013 FY2014 FY2015

Science and ICT 170 212 243 289 330
Ministry of Posts and 105 115 132 157 182
Telecommunications
Ministry of Information 160 192 220 259 295
Total 434 519 595 705 807

Table 6.3: Development Resource Allocations for Knowledge Economy in the Sixth Plan
(crore taka; FY 2011 price)

Ministry FY2011 FY2012 FY2013 FY2014 FY2015

Science and ICT 170 197 211 236 254
Ministry of Posts and 105 107 115 128 140
Telecommunications
Ministry of Information 160 178 191 211 227
Total 434 483 517 575 621

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 ANNEX
Anne6.1x : Targets and Strategies: Connecting Citizens

Item # Description Timeline Accountable

Agency/(ies)
1.Building an inclusive information and knowledge system: To ensure that by 2011, all
Bangladeshis have access within their community to ICT
1.1. Building a national partnership to establish an inclusive system of
information and knowledge for all citizens through telecentres and other
forms of public access, with special emphasis on marginalized groups
and disability, which will be delivered using a rich combination of
different business models, including
- Entrepreneur / Value adding sector
- Voluntary sector
- Schools computer labs opened up to the community out of school
hours
- Government infrastructure ( e.g., many
post offices having been enhanced as e-post/
Cyber Post/e-service hub for government/public service (e.g. direct
foreign remittance, money transfer, bill payment), local government
institutions have big establishments, public libraries
are underutilized)
- Through creation of information access through mobile telephone and
community radio
All the venues will be accessible to all citizens
1.2 Deployment of low cost broadband Internet connectivity across the 2nd year Pub-private
country for offering e-learning, e-health and e-government services to Partnership
the citizens.
1.3 Launch Citizens Helpdesk in public organizations. 2nd year Relevant
The host is not mandated to be physically located at the relevant public government
organization. Telecom operators will have to provide low-toll/toll-free agencies
numbers for these call centers.
1.4 Expand the voter ID to National ID platform to be used for all citizens’ 3rd year Cabinet
services such as birth registration, passport, bank account, school
enrollment, healthcare, vaccination, VGF/VGD and other social safety
net programs.
1.5 Deployment of Electronic Public Grants ( safety net benefits) Delivery 2nd year Multiple
System agencies

1.6 Launching of a development TV Channel 3rd year Public-private

partnership

2. ICT for Equity

2.1. Launching of multi-year localization program which includes research on 1st year Public-private
Bangla language computing and Bangla content development partnership
2.2. Launching of a program and system of protection of children from 1st year Ministry of
harmful content Home Affairs
2.3. Deployment of public key custodian for ensuring 1st year MoSICT,
network security. This is related to encryption standard and security BTRC
related laws.
2.4. Deployment of system for protection of information, data and program 2nd year Ministry of
from hacking, fraud and damage and introducing/spreading Home Affairs
computer viruses

291
2.5. Deployment of a robust, country-wide system of market information with Gradually Ministry of
daily price update of all markets in the country over the Food and
five years Disaster
Management,
MOA
2.6 Program of digitization of land record Gradually Ministry of
over the Land
five years
2.7 Launching of Employment generation scheme for rural youth: info-lady, Gradually Public-private
telecentre workers, BPO over the Partnership
five years
3. E-Participation
3.1. Deployment of a system of public grievances and reprisal and publication 2nd year Public-private
of results of those grievances through electronic means partnership
Human Resource Development
Item # Description Timeline Accountable
Agency (ies)
4. Building E-learning Infrastructure: One school one computer lab, smart class room
with e-learning facilities
4.1. Launching of program for ICT education in each secondary school Over five MOE,
which includes establishment of multimedia classroom, computer lab, Years MOSICT,
teachers, training, technical support system, up-to-date curriculum, Public-private
Community access for income generation Partnership
Launching of program of e-learning which includes providing free 2nd year MOE
broadband access to each school
Installation of computers, LAN, reliable high-speed Internet 1st year UGC
connectivity for tertiary educational institutions
5. ICT Education
Redesigning of the ICT literacy curriculum for secondary and higher 1st year NCTB
secondary syllabus at regular intervals based on the needs of an
inclusive and cost-effective knowledge society.
Initiate ICT Professional Skill Assessment and Enhancement Program 1st year MOE, UGC
(IPSAEP)
Develop labor market information system to assess domestic and 1st year MoP, MoE
global labor demands for education planning m
Periodic ranking of IT programs of private and public universities by 1st year UGC
a competent body (including academia and industry) approved by
UGC
Introduce and allocate fund for industry-ready applied research 1st year MoE
projects with mandatory industry & academia collaboration using
government grant facilities
Ensuring ICT literacy evaluation as part of Public Service entrance 1st year PSC
exams
Launching program to convert all libraries into digital library 3rd year MOC
Organizing regular national, regional, and 2nd year MOE,
International conferences. MoSICT
6. ICT-based Education
Introducing ECDP for all poor rural children in regular and 2nd year MOE
community schools for at least six months using multimedia Tools

292
 Launching program of ICT-based learning: 1st year MoE
Install computers, LAN, reliable Internet connectivity with reasonable
speed and multimedia teacher training content for all Secondary
Teachers’ Training Colleges; with a special focus on Mathematics,
Science and English

Launching program of ICT-based learning: 3rd year MoPE

Install computers, LAN, reliable Internet
connectivity with reasonable speed and
multimedia teacher training content for all
Primary Teachers’ Training Institutes, like PTIs, URCs and NAPE
Launching program of ICT-based learning: Over five MoE
Establish smart class room with flat screen large television and laptop years
for supplementing learning in the class room with appropriate
multimedia content

Organizing regular national (including at grassroots level), regional, 2nd year MoE
and international competitions on ICT related topics and support
participation of national teams in international events.
Creating central repository for e- Learning content for teacher 2nd year MoE
training and for all students. Provide Incentives for e-Learning content
development.
7. Vocational ICT Training
Install computers, LAN, reliable Internet connectivity with reasonable 2nd year MTVEB
speed and multimedia educational content for TVET institutions
Introduction of national certification examinations for different levels 2nd year Multiple
of ICT personnel/ professionals Agencies
Establishment of a central body for streamlining syllabus, evaluating 2nd year MoE
eligibility of training instructors and for ranking of ICT training
institutions
Introduction of loan facilities for procurement of ICT equipment for 1st year MOF
government officials, students, teachers and working people

Digital Government
Item # Description Timeline Accountable
Agency (ies)
8. e-Administration
8.1. Digitally publish all govt. publications in Bangla using a standard 1st year All
encoding to guarantee document portability government
agencies
8.2. Mandate all public information to be made accessible through From 1st All
appropriate electronic means including SMS and other channels. year over government
5 years agencies
8.3. Launching of online-data sharing and decision making system 3rd year All
government
agencies
8.4. Creating a national network for the government to connect the public 2nd year All
organizations. government
agencies
8.5. Establishing necessary policy framework and introduce IP telephony 1st year All
and video conferencing services in critical government offices. government
agencies
8.6. Establishing National Data Resource Centre to control and manage 4th year All
the public network and act as a system of national databases to store government
and supply national data agencies,
BBS, PPP

293
8.7. Adding a 50-mark examination (to the current 300- mark 2nd year MoEst
examination) for applied computer and Internet literacy for senior
scale promotion examinations for cadre services.
8.8. Stopping new steno typist recruitment in the Government offices. 1st year All
Converting all existing steno typists into data entry operators through government
proper training. agencies
8.9. Redesigning ICT and e-Governance curriculum of government 2nd year MoEst,
training academies with a distinct focus on change management and Cabinet,
process re-engineering. BPATC, PSC
8.10. Deployment of computer-based project planning and resource 2nd year MoP, MoF
allocation system
8.11. Launch ICT Technical Clusters to cover all public sector 2nd year MoEst,
organizations to be run by ICT professionals. Create ICT posts for Cabinet
this Cell. All ICT posts in the public sector should be declared
technical posts. Create an ICT cadre in the long term
9. e-Citizen Services
9.1 Develop national web portal as a “one-stop shop” for delivering e- From 1st All government
citizen services year over agencies
5 years
9.2. Enable payment of utility bills through mobile phones, banks, ATMs From 1st All relevant
or other service centers from any location and at any time of the day year over government
two agencies, PPP
years
9.3. Enable online status check of court cases 2nd year MOL&PA,
PPP
9.4. Enable electronic filing of GD and FIR 2nd year MoHA, PPP
9.5 Introduce service to access public transport schedules, fares and 1st year MOC, PPP
ticket purchasing through the Internet and mobile
phone.
9.6. Allow online registration and work permit for 2nd year BOI
foreign investors
9.7. Introduce online tax filing for all citizens 1st year NBR
9.8. Introduce online application for licenses in business, vehicle From 1st Multiple
registration etc. year over agencies
5 years
9.9. Introduction automation of all customs check points By 3rd NBR, Port
year Authorities,
PPP
9.10. Automation of land record and registration system By 3rd MOLPA, PPP
year
9.11. Introduction of online payment both for transaction within country By 2nd BB, PPP
and international year
9.12 Introduce online procurement system ( in phases) By 3rd All
year government
agencies, PPP

E-Business
Item # Description Timeline Accountable
Agency (ies)
10. Online Transaction and Payment Infrastructure
10.1 Establish Certifying Authority (CA). 1st year MoF, BB
10.2 Develop capacity development programs for the judiciary & the law From 1st MoLPA
enforcement agencies year over
5 years
10.3 Launch legal reform to protect interest of stakeholders in e-commerce 1st year MoLPA

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11. Promotion of e-business and commerce
11.1 Establish an Authority/Body on ICT Industry Development 1st year MOC
11.2 Establishment of ICT Industry Development Fund 1st year MoF
11.3 Establishment of TP 1st year MoSICT
11.4 Conduct research on global Human Resource needs vis-à-vis local Every MOE, MOC
capability to identify national focus two years
11.5 Introduce free facilities for ICT industry/ ICT for Development 3rd year
Agencies in TP for five years
11.6 Conduct regular study on ICT economy Every MOC
two years
11.7 Introduction of Venture capital Fund for ITES Industry 1st year MOF
11.8 Arrange fairs, exhibitions & targeted workshops for local enterprises. Every MOC
Road shows and other interactive programs. year
11.9 Implement ICT based model SMME (one for each category) at Dhaka 1st year SME
and other divisional HQs Foundation,
MOC, PPP
11.10 Create special promotional program (by EPB 1st year
BMET, Probashi Ministry, and Foreign Labor wings, and Bangladesh MOFA
Missions abroad) for high end overseas employment in IT
11.11 Create strategic roadmap for Human Resources Development for the 1st year MOE, MOC
ICT industry (both home & abroad)
11.12 Enhancing competitiveness of business through business process re-
engineering
11.13 Develop Agriculture, Food and SMME related content in Bangla 1st year
11.14 Develop network within communities to share indigenous knowledge 1st year MoI, MOA,
and innovations related to pest management, crop preservation, etc PPP
11.15 Establish SME resource centre focused on agricultural needs spanning 1st year MoI, MOA,
relevant supply chain in the local context. PPP
11.16 Support the agricultural supply chain management system through 1st year MOA, PPP
business portals accessible through various electronic channels.
11.17 Provide training of extension workers and farmers on updated 1st year MOA, PPP
technologies, credit schemes, etc. using ICTs.
11.18 Utilize GIS based soil mapping system to analyze detailed data to 2nd year MOA, SRDI,
provide information relating to crop suitability, land zoning, PPP
nutrient status and fertilizer dosage.
11.19 Provide access to m-banking for farmers and agribusinesses 1st year MOF, BB,
Telcos
11.20 Develop Internet and mobile-based trading platforms for agriculture 2nd year MOC, MOA
produce for extended supply chain
11.21 Initiate a pilot project to promote sector based customized ERP 1st year MOC, PPP
11.22 Create and disseminate e-Learning resources on Energy Efficiency, 1st year MOC,
ISO competencies, Lean Six Sigma, advanced Production System, etc Industry
Associations
11.23 Implement ICT based automation and MIS model at Division level. 2nd year MOC,
Industry
associations,
PPP

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CHAPTER 7: EDUCATION, TRAINING, SPORTS,
CULTURE AND RELIGION
INTRODUCTION

The role of education in facilitating social and economic progress is well recognized. It opens
up opportunities leading to individual and group entitlements. Education, in its broadest
sense, is the most crucial input for empowering people with skills and knowledge and for
providing them access to productive employment in future. Improvements in education are
not only expected to enhance efficiency but also to augment the overall quality of life.
Education acts as an engine of growth for economic and social development of a nation. In this
context, human resources development is at the core of Bangladesh's development efforts and
access to quality education is crucial for poverty alleviation and economic development.

The Constitution of Bangladesh obligates the government to adopt effective measures for (a)
establishing a uniform, mass-oriented and universal system of education and extending free
and compulsory education to all children to such stage as may be determined by law; (b)
relating education to the needs of society and for producing properly trained and motivated
citizens to serve those needs; and (c) removing illiteracy within such times as may be
determined by law. In line with the constitutional obligation, the present government is
committed to undertake structural reforms that are expected to bring about significant
improvements in the education sector. The government's commitment to education has been
clearly stated in its new National Education Policy 2010. The major objectives of the
Education Policy are as follows:

• To reflect the constitutional guarantee at all levels of education and make the learners
aware of the freedom, sovereignty and unity of Bangladesh.
• To create stimulation in the intellect, work culture and practical life of the learners so that
moral, human, cultural, scientific and social values are established at personal and national
levels.
• To inspire the students with the spirit of our war of liberation and develop patriotism,
nationalism and qualities of good citizens.
• To foster creative thinking among the learners through a system of education that contains
indigenous spirit and elements, which lead to a life-oriented development of the learners.
• To remove socio-economic discrimination irrespective of race, religion and creed and to
eradicate gender disparity; to develop global fraternity, non-communalism, friendliness,
fellow-feeling and respect for human rights.
• To put special emphasis on the extension of education, priority should be given to primary
and secondary education; to motivate the students to show dignity to labor; to enable
students to acquire skills in vocational education to facilitate self employment at all levels
of education
296
• To develop some uniform and basic ideas amongst all learners; to establish a sense of
equal status amongst all citizens of the country, there should be a uniform curriculum of
certain basic subjects at the primary level schools of diverse delivery systems; to prescribe
some uniform textbooks to attain that; to initiate the some method at the secondary level to
achieve similar objectives
• To build students as skilled human resources to fight the challenges of the world
threatened by climate change and other natural disasters and to create in them a social
awareness of environment.
• To ensure quality at the higher education level and motivate students in research and to
create a congenial and necessary environment of research within the country in order to
cope with the pace of knowledge being generated in the global level.
• To initiate an inclusive education to deliver education to vulnerable children and
socioeconomically backward classes.

Training, sports, culture and religious studies are also important components of the overall
education system. Training provides the practical hands-on knowledge, which is not normally
taught in general education, to impart essential skills required at the work place. Sports and
culture provide fuller context to education and helps develop healthy and well informed
citizens and the labor force. Religion provides the spiritual context to human development.
While each aspect is distinct, they also are inter-related. A well balanced combination of these
aspects contributes to a sound human development strategy.

OVERALL PERFORMANCE OF THE EDUCATION SECTOR

The Government of Bangladesh has always been committed to bring significant improvements
in education sector and in this context development plans with education have been given
highest priority in public sector investments. Education sector allocations are currently about
2.3 percent of GDP and 14 percent of total government expenditure. This spending priority has
served Bangladesh well as reflected in the progress made in education indicators of the
country.

Bangladesh has made significant progress, especially with respect to increasing access to
education and attaining gender equity, both at primary and secondary levels. Net primary
enrollment rates rose from 60.5 percent in 1991 to 91.9 percent in 2010, 93.5 percent in 2009
while at the secondary level enrollment rates have risen to 43 percent in 2008 and 49.1 percent
in 2009 from 28 percent. Gender parity in access to primary and secondary education has also
been achieved. These achievements are particularly spectacular when compared to countries in
the South Asian region and other countries at similar levels of per-capita income. Detailed data
on enrollments and education institutions are contained in Part-3.

In terms of management of education system, it falls under two ministries: (a) Ministry of
Primary and Mass Education (MoPME, responsible for primary education and mass literacy)
and (b) Ministry of Education (MoE, responsible for secondary, vocational and tertiary
297
education). The Government is strongly committed to alleviate existing problems with respect
to management and quality through reforms across the education system. In order to address
issues at the secondary and higher levels, MoE has developed a medium-term framework for
the secondary education sub-sector, focusing on quality improvements, policy measures and
specific actions needed to reform the system. The main objective of reforms being proposed is
to address systemic governance issues aimed at raising the quality and cost- effectiveness of
service delivery, and to improve equity of access in secondary education.

MoE is aiming at moving towards a devolved system of governance within the current
administrative structure. In this system the government will be responsible for formulating
policies, financing, setting quality standards, and monitoring and evaluation etc., while lower
levels of government will be responsible for administering the system. MoE is empowering
officials at the district and upazila levels to take greater responsibility in monitoring school
performance and to ensure public disclosure of information (e.g., SSC passing rates, teacher
absenteeism, class sizes, etc.) related to school quality.

To ensure appropriate financial controls, MoF is implementing a Financial Management

Reform Program (FMRP). This is intended to increase accountability and transparency in the
use of resources. A twenty-year (2006-2026) strategic plan for higher education has been
formulated for the overall development of the university sub-sector and projects are being
carried out under the preview of the strategic planning.

MAJOR CHALLENGES IN THE EDUCATION SECTOR

Progress Towards MDGs: One of the key MDG goals is to achieve universal primary
education by 2015. This entails: (a) 100 percent enrollment in primary education and (b) 100
percent completion of primary education.

As against these targets, the school enrollment rates fall drastically from primary (grades 1 to
5) to secondary (grades 6 to 10). In 2008 about 50.7 percent of pupils completing grade 5
made a transition to the first year of secondary school. Gross enrollment rate in the secondary
phase was only 49.8 percent in 2008, 53.9 percent in 2009. This suggests that the country has
not been quite successful in addressing and achieving equity, quality, and efficiency of the
delivery of primary and secondary education. The wastage in education is very high due to
internal inefficiencies such as high dropout, grade repetition, and poor quality of learning at
school level. These are serious concerns for DSHE. The present SFYP, therefore, needs to
look at the root of these problems of Secondary and Higher Education with the objective of
overcoming this challenging situation and for advancing rapidly in the march of development.

The Access, Dropout and Equity Issue: This includes enrollment rates and completion rates
in rural vs. urban areas, and gender-related access restrictions. Bangladesh has experienced
impressive achievement in increasing access to secondary education among disadvantaged
groups such as girls and those who live in rural areas. While these achievements should not be
underestimated, it is imperative to recognize that there are still many challenges that must be
298
met in enhancing access in all levels in the Secondary and higher Education sector. The net
enrollment rate is 43%, which means that 55% of all secondary school age children in
Bangladesh are for one reason or another inhibited from making a transition to secondary
school and net enrolled rate 49.1% in 2009. The principle reasons for this are the following:

Quality of Primary Education: The biggest problem Bangladesh seems to face in the pursuit
of its educational goals is lengthy poor quality of primary education. Achievement and
competency level of most children are also very low. This doubly disadvantages girls since
they already face overwhelming gender discrimination.

Poverty and Child Labor: Poverty deserves special treatment in the context of all stages of
education. In recent times poverty has been exponentially inhibiting students from going to
higher education. Children from poor families have fewer chances for accessing schools
especially in the secondary level, as a majority of them are engaged in different works to meet
basic necessities.

Gender Discrimination: The perceived inferiority of women and girls is deeply embedded in
Bangladeshi society. Many families still do not support educating their female child and many
girls are married at very young ages, eliminating any chance of receiving an education beyond
the primary level. Especially in rural areas, girls are also frequently kept at home to work and
to take care of younger siblings. The same holds true, although to a lesser extent in urban
areas. In both urban and rural areas, the problem is worst for girls of poor families.

The Quality Issues: Disparities in the quality of education are by far the biggest problem
Bangladesh faces in the secondary and tertiary education sector. The principle reasons for this
are the following:
• Low Status of Schools: These are general problems under the current economic standard
of the country and there is no need to emphasize the importance of quality of education
provided in schools.
• Inappropriateness of Curricula and Pedagogy: The curricula 'and related pedagogy are
usually inappropriate or at least inadequate for the set goals in many disciplines.
• Capacity of Teachers: The teachers in many of the institutions are not trained and are not
competent enough to provide moral and educational support to the students.
• Multiplicity of Educational Systems: There are many systems working in the educational
system of Bangladesh, resulting in not synergy but social division and conflict. For
example, there are English medium schools, Bangla medium schools and Madrasas and in
higher education there are public and private universities.

SFYP GOALS AND OBJECTIVES FOR EDUCATION SECTOR

The political pledge of the government is reflected in Vision 2021 and Education Policy 2010.
Within this framework, the objectives, priorities and strategies for education sector in the Sixth
plan are determined. Important objectives delineated in Vision 2021 are: to achieve universal
299
primary education, followed by extending this stage to grade 8 for creating a society free of
illiteracy. Other goals include creating a new generation equipped with technical skills and
scientific knowledge; better remunerations for teachers; and overall improvement of quality
and equity in education are key education goals of Vision 2021. Other related targets pertinent
to education are, building Digital Bangladesh, empowering local government as the engine for
delivering services and carrying out development activities, ensuring equal status for women
in all spheres of society and state, and creating gainful employment for at least 90 million
young people. The SFYP also recognizes the importance of wider application of Bengali
language all different spheres of education.

The SFYP specifically emphasizes the importance of educational quality at all stages of
education and will take necessary strategies to take care of the problem of poor quality of
education. There is no denying the fact that, it is not the mere knowledge gained through a
number of courses taught at different stages of education, rather it is the quality of that
education which actually matters in building up the human resource base of a country. In this
context, upgradation of curricula, training of teachers, improving incentive structure of
teachers, close monitoring of the curricula of higher educational institutions, bridging the gap
in the quality of educational institutes at rural and urban areas, introduction of courses on
mathematics and science at madrasa level, strengthening knowledge of English and
mathematics at primary and secondary level are the crucial issues to consider.

The critical needs and important issues related to Secondary and Higher Education in the
country shall be addressed in the SFYP on a two pronged basis: a quantitative goal and a
qualitative goal, to be pursued in an integrated manner.

The Quantitative Goal

With a view to attain this goal, infrastructural development in most of the cases of education
deserves priority. The major actions to be taken to improve Secondary and Higher Education,
in this area are:

• To improve infrastructure. In this context, the goal is to construct/upgrade classrooms and

labs to facilitate admission of more students.
• Ensure sufficient number of teachers at all levels including for pre-primary

• Recruitment and training of female teachers at all levels to fulfill the existing quotas.
• To provide stipend and other financial support to the poor and especially to the female
students to encourage enrollment and to avoid dropout.
• To provide teaching and learning aids and other facilities to increase pupil's interest over
education and to modernize the education environment.

300
• To provide computers to make the students competent with the modern world of ICT and
to make them fit for the present job market.
• To establish technical schools at upazila levels
• To establish science and technology universities at greater district levels.

The Qualitative Goal

In order to improve quality of education at all levels some steps need to be considered are:

• To modernize curricula, texts, pedagogy and examination techniques. In this regard, need
to give more importance to science subjects and mathematics at the secondary level.
Science and mathematics are the foundation on which acquisition of other skills depends.
• To introduce ICT and Technical education at all levels of education.
• To improve capacity of teachers to promote quality teaching. It needs also to provide
computer trained teachers and subject based teachers especially for science and
mathematics.
• To modernize Madrasa Education and to reduce the gap of existing facilities for secondary
education between General Education and Madrasa Education.
• To enhance quality of university education through improvement of pedagogy and
educational environment.
• Strengthening gender and region based monitoring, analysis and reporting.
• Based on sex-disaggregated data collection, introduce follow-up mechanism to identify
pockets of disparity (such as girls’ participation from ethnic minority groups, rural girls’
school attendance, or female teachers in rural areas) and accordingly develop capacity to
adjust policies and strategies based on information received.
• To modernize education system in rural areas, especially at the secondary level. In this
regard, increased use of ICT, distribution of modern curricula through electronic and
computerized manner will be done.
• To provide laptops and multimedia to improve teaching learning system.
The current status and targets under SFYP for Primary & Mass Education is shown in Table 7.1.

Table 7.1: Indicators of Performance of Primary and Mass Education

Current Projection
Status
Indicators Sub-indicators 2009 2014
Indicators of a) Gross Intake rate 115% 116%
Intake
b) Net intake rate 99% 100%
Indicators of a) Gross enrollment rate 103.5% 116%
Participation
b) Net enrollment rate 93.5% 100%
Indicators of a) Repetition rate 12.0% <5% (each class)

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 Current Projection
Status
Indicators Sub-indicators 2009 2014
Internal b) Completion rate 55% 100%
Efficiency
c) Survival rate 59.7% 100%
d) Student absenteeism 18% 3%
Indicators of a) Student Teachers ratio 1:48 1:30
Quality
b) Classroom size 40 25
c) Percentage of trained teacher 70.39% 100%
Indicators of a) Public expenditure on primary 45.36% 50%
Educational education
Expenditure as % of total education public
expenditure
b) Public current expenditure on 2% 4%
education as % of GDP
Source: Ministry of Primary and Mass Education

The Government has also defined a number of indicators to assess the progress with secondary
and higher education. These are shown in Table 7.2

Table 7.2: Indicators of Performance of Secondary and Higher Education (SFYP: 2011-
2015)
Goals Input indicators Output indicators
Quantitative (Resources/ policy changes)
a) Stipend a) Students’ and their parents’ interest in schooling
increment and
equity of students b) Financial support b) Students’ support for education expenses
at Secondary and c) Better environment c) Students’ interest in schooling
Higher levels of
d) Female stipend d) Girls’ and their parents’ interest in schooling
education
e) Inclusion e) Education for the disables
f) Awareness f) Peoples understanding of the importance of
education
Qualitative a) New institutions. a) More room for admission
improvement of b) Up to date education facilities. b) Better education environment
Secondary and
c) Books and Teaching-learning c) Wide range of knowledge disseminations
Higher levels of
materials.
education.
d) Modern equipments. d) Up to date Practical education
e) Capacity Building for teachers e) Capable teachers
f) Teachers training. f) Quality teachers
g) Organizational development & g) Quality education management
h) Modern curricula. h) Modern education
i) Modern system of examination. i) Better evaluation of students
j) ICT j) Access to ICT
k) Life-skill based education. k) Students with life-skills
l) Modern education system in l) Better outcome of religious education
Madrasa
Source: Ministry of Education
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SFYP EDUCATION SECTOR STRATEGIES AND POLICIES

Strengthening Educational Inputs

Teachers: The system cannot achieve its goals with the current number of teachers, methods
of preparation and professional development, and the level of salary and incentives. New ways
of thinking about teachers and pedagogy are needed, e.g., enabling selected and properly
equipped degree colleges to train primary teachers as part of the regular degree program,
turning PTIs into in-service training centers, and commensurate salaries and status for highly
qualified teachers.

The quality and content of initial training in PTIs, continuing in-service training, the
effectiveness of activities at URCs and the capacity of NAPE to support and lead teacher
development – all need to be strengthened and in many cases redesigned, which have been
emphasized in the education policy. All of these measures, however, are actions for
improvements within the current structure of teacher recruitment, remunerations, professional
support and supervision.

An approach to induct academically competent people to teaching in primary schools (as well
as extended compulsory grades and secondary schools) and to keep them in the profession
would be to introduce education courses in the general education degree program and to offer
education as a subject in at least one well-equipped degree colleges in each district. Candidates
can be attracted competitively by offering stipends to selected ones with an undertaking from
them that they would serve in a primary school for at least five years. To attract and keep the
right people in the profession, these new teachers have to be placed at a salary level
competitive with other civil servants of similar educational credentials. Currently employed
teachers may be offered this salary level if they meet specified criteria including the
graduation requirements and with an academic career without any third division/class results.
It would be essential to support the selected degree colleges to meet appropriate infrastructure
and academic standards. The PTIs in this scenario can gradually become in-service training
institutions for the large teacher population anticipated in the next decade.

Because of the large numbers involved and the complexity of the tasks, a primary education
teacher service commission should be given consideration. It would make more sense to have
one such commission for government and government-assisted schools rather than separate
commissions or mechanisms for the two, proposed in the Education Policy.

Effective Instructional Contact: Effective instructional time for students, an essential

condition for quality in instruction, is one of the lowest in Bangladesh by international
standards. NGO schools have addressed this problem to some extent by keeping class sizes
around 33 students, enforcing instruction planning and routine, maintaining close supervision,
and having parents keep in close contact with the small neighborhood school.

Curriculum and learning materials development: PEDP II funding supports the provision
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of free textbooks, which is reported to have helped marginalized students. While there is some
increased provision of supplementary materials under PEDP II, few schools are fully
equipped. Teacher’s guide and supplementary materials prepared in the form of “learning
packages” by IED on the basis of NCTB curriculum and textbooks for classes I to III and
offered to DPE to be tried out in primary schools have so far not been accepted for trial;
apparently because the necessary approval and review by authorities including NCTB for a
trial could not be undertaken. Meanwhile, teachers and students were left without the essential
tools for improving instruction – the central goal of PEDP II.

Producing millions of textbooks and distributing these throughout the country have become a
major annual operational and logistical challenge for NCTB. Expert views favor a separation
of the functions of textbook production and distribution and development and approval of
curriculum and learning materials. The curriculum development process should also be linked
with assessment of learning so that the learning objectives are realized and defined
competencies are acquired by learners. There are various models at the state level in India and
in other countries of state corporations or private publishers or a combination handling the
production and distribution of books, which can relieve NCTB of its burden and permit it to
concentrate on the essential and critical task of curriculum and learning materials development
and assessment of learning related to curriculum content and objectives.

Given the need of increased globalization, the SFYP emphasizes the importance of introducing
a ‘third language’ at the secondary level in addition to the mother tongue Bengali and second
language English.
Physical infrastructure: A large share of external development assistance goes to physical
infrastructure development in primary education. This will require further investments to meet
the minimum acceptable criteria for appropriate learning environment for achieving the quality
with equity goals. Schools that are Girl- friendly environment including separate wash room
facilities will ensure for female students’ attendance to school.Special attention has to be given
to some 2000 villages identified by the Ministry of Primary and Mass Education as lacking a
primary school. These villages are generally in areas with difficult communication and
dispersed habitations such as haors, chars, coastal areas and hills where schools built
according to standard criteria of population still leave these inaccessible to small children. The
plan for extending universal education to grade 8 also will require an assessment of existing
school facilities in each Upazila and need for making additional provisions.

Improving Education Service Delivery through Better Governance and Management

Human resource management: All of the national education commission reports have
lamented the lack of professional skills of teachers, absence of motivation and enthusiasm for
work, and failure of the system to attract competent people to teach and to give them adequate
incentive. Teachers have to be supported by administrators, supervisors, and various types of
specialists.

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A recruitment process with an effort to apply criteria and standards are followed for
government institutions. Even though criteria and standards for personnel recruitment in non-
government primary, secondary and tertiary institutions have been indicated, there is laxity in
applying these standards by respective managing bodies. Measures have been taken to
improve transparency and fairness in primary education recruitment under the PEDP II
program. At the secondary level, teacher certification based on a qualifying examination has
been introduced recently in an attempt to identify and recruit capable teachers. Various
education commissions and committees have recommended measures for fair recruitment of
education personnel. These include: (a) an independent commission for testing and
preparation of Upazila-based panels of qualified primary school teacher candidates, from
which teachers should be recruited as vacancies arise; (b) a similar independent body for
selection of qualified candidates for secondary school teachers, both for government and
nongovernment institutions; (c) a special education service recruiting commission for colleges
and administrative and specialized jobs for government and non-government institutions,
separate from the public service commission which is unable to handle the large load of
education recruitment. The new Education Policy (2010) also has recommended similar
measures.

The key challenges of education sector are related to professional development,

professionalization of specialized tasks in education and a career ladder for personnel within
each sub-sector of education, which demand different skills and training. At present, although
inadequate, there is a system of teacher training for primary and secondary level teachers, none
for tertiary education, and only very ad hoc and limited professional skill development
opportunities for other specialized tasks - such as curriculum and learning materials
development, educational assessment, planning and management-under externally-assisted
development projects.

At the level of specialized professional tasks in the education hierarchy, the present
recruitment, placement and deployment rules and practices do not encourage or facilitate
acquiring of professional skills, staying on the job in the same field and being promoted and
rewarded for working in one's specialty. Seniority is the basic criteria for placing people at
higher levels of responsibility. As a result, there is no opportunity to develop specialized
professional skills and to use these in one's job. The need for professionalization of specialized
tasks and building a career path from primary school teaching to senior positions in the
Directorate of Primary Education has been recognized in the PEDP II plan. A separate primary
education cadre has been under discussion for a long time. PEDP II plan calls for its
implementation. NEP 2000 and the new Education Policy (2010) have endorsed this idea.
Similar career ladder and recruitment under common standards for both government and non-
government schools at primary and secondary levels have been recommended in NEP 2000
and the new policy (2010). The SFYP considers the strategy of providing incentive to the
teachers through the introduction of performance based contract scheme.

Remuneration of teachers across the board is regarded as low, not commensurate with their
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responsibility and due status in society. With this end in view, remuneration structure can be
designed to allow for more differentiation in teaching positions (for example, assistant
teachers, teachers, senior teachers, team leaders/master teachers, assistant headmaster and
headmaster in the primary school system), with promotion and salary raise tied to clearly
established and enforced performance criteria. Some special rewards or bonuses can be tied to
group performance at the institution.

The reward and incentive structure for primary and secondary education teachers and the
absence of a career path have become a serious obstacle to attracting and retaining
academically and intellectually talented people to teaching. Shortage of teachers of science,
mathematics and English has become a serious problem, especially in rural areas. Graduates of
colleges under the National University, rather than the main universities, generally come into
teaching. In this context, ways have to be found to improve the quality of the degree colleges
and to attract capable people to teach with proper incentives.

Coordination: An important systemic concern is how the education system as a whole and its
sub-sectors function to make their contribution to meet key social goals, including fighting
poverty. It is a question of vertical and horizontal linkages and articulation within and among
sub-sectors of education and the possibility of taking a systemic view of the organizational
structures and function of the system and sub-systems.

The overall organization and management of education show critical disjunctions and
discontinuities. For example, at the primary level, the four major streams - the government and
non-government registered schools, the Madrasa, non-formal primary schools run by NGOs,
and the proprietary English medium schools- operate with differing learning objectives and
academic standards, with little opportunity for horizontal movement of students, and no
interaction among organizational authorities running these different streams. The same
applies to the secondary level, with parallel streams in general secondary education, Madrasas,
proprietary schools and post-primary vocational and technical education. The Education
Policy (2010) recommends a strategy of adopting core curriculum, leaning objectives and
learning materials, which would be common to all streams, and would be implemented in all
institutions by applying common quality standards. At the tertiary level, a system-wide view -
embracing colleges, universities, professional and specialized education under public and
private management and the potential for specialized training by professional bodies still does
not exist.

Notwithstanding the good intentions behind the separation of primary and mass education
from the Ministry of Education, various problems of articulation have arisen. Issues in primary
education regarding curriculum development, training of teachers and management personnel,
and transition from primary to secondary education cannot be resolved in isolation. All of the
concerns about horizontal and vertical links among subsystems point to the need for rethinking
about organizational structures, functions, and roles in the education system. The system view
will have to address broader human resource development issues, going beyond the parochial
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concerns of education subsectors. The new Education Policy (2010) has two crucial
recommendations regarding system governance and coordination: a) establishing a permanent
national education commission to review policy implementation and guide policy review and
modification as needed, and b) adopting an overall education law to serve as the legal
framework for fulfilling the constitutional obligations and state commitments regarding
education and human resource development.

Effective governance and management: This is an essential condition at both central and
school level for ensuring quality improvement. Structural and procedural changes will be
required to involve local government bodies, giving greater financial authorities to schools and
the local level, and encouraging the involvement of community. As a national task, primary
education should involve participation and consultation by all major stakeholders—parents,
NGOs, academic institutions, and other institutions of civil society—in developing the
program, maintaining an oversight over its implementation, and contributing to the provision
of primary education. It is the obligation of the government to ensure that this multi-faceted
participation of stakeholders take place effectively.

Improving education financing: Several important features of education financing in

Bangladesh - mobilization of resources and their use – deserve attention from the point of
view of a strategy for education that serves the goal of quality with equity.

A low-cost and low-yield system: Bangladesh has one of the lowest cost education systems,
even compared to other least developed countries (per student primary education expenditure
is about $13 and for non-government secondary education it is $16). The low per capita and
total cost is no reason for satisfaction, because, educational quality - measured in terms of
learning outcome, the pedagogic process and essential inputs – is clearly the victim of this
situation.

Dominance of public financing: Educational financing is heavily dependent on public sector

allocations. In primary education, which account for almost half of total education
expenditure, the government has de facto stopped establishing new institutions for a decade
and has relied on expansion in the non-government sector to meet the goal of universal access
to primary education. However, major part of teachers’ salaries in registered non-government
schools are paid by the government and are ad hoc grants for school building construction and
repair. Students of these schools receive free textbooks, with the important exclusion of NGO
non-formal programs.

Large majority of the institutions at the secondary school and degree college levels are non-
government, but again these are beneficiaries of substantial government subventions for
teachers’ salary. Only in respect of private universities and private vocational-technical
training institutions, the subvention system does not apply. In principle, the generous system
of subvention should be an important leverage for maintaining and enforcing quality standards
in the non-government institutions. In practice, it fails to work this way because of the weak
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capacity of the regulatory and supervisory organizations in the government, the way these
bodies perceive their role, and intrusion of partisan politics in educational management.
Nonetheless, the potential of the subvention system as a policy leverage exists; how this
leverage can be used effectively for educational development remains an important challenge.

In order to expand the coverage of education services, the Prime Minister has instructed to
establish a Trust Fund to offer degree education to poor and meritorious students at free of
cost. In addition, the SFYP will include greater number of pupils within national stipend
program.

Household contribution and financing strategy: Despite the heavy reliance on government
for educational financing, there is a substantial private direct cost borne by beneficiaries,
which is not taken into account in considering educational finance policy options. Household
expenditures amount to about the same as per student government recurring expenditure in
primary education. At the secondary level, non-government expenditure is of the order of two-
thirds of the total national expenditure. In the case of degree colleges, which mostly are
privately managed with government salary subvention, non-government contributions surpass
government expenditure. Only in the highly subsidized public universities, government
expenditure exceeds private costs. In the case of private universities, which are financed fully
from tuition and fees, households cover the costs. In the case of relatively small sub-sector of
public vocational and technical education, high government subsidy reduces private
contribution to total costs. The picture, however, would change if the extensive informal
apprenticeship and on-the-job training activities were taken into account and monetized,
although reliable quantification of the size and costs of these efforts are not available.

The size of household expenditures in different sub-sectors of education points to several

policy implications regarding mobilization and effective use of resources. These include the
potential of mobilizing non-government resources, the need for developing resource
mobilization and utilization strategies, keeping in view the potential of non-government
sources; combining public and other resources to promote equity in education; and promoting
public-private partnerships on policy and program development and in providing educational
services.

Mismatch of financing and objectives: Total national education expenditure, especially

public budget allocation, has to increase substantially in the medium term to meet national
goals and priorities regarding expansion and quality improvement. Achieving universal
elementary education up to eighth grade and participation of 50 percent of the eligible age-
group in secondary education by 2008 will require public allocation to education to be raised
to 4 percent of GDP from current 2.3 percent of GDP.
Quality improvement, desperately needed at all levels of education and will require additional
resources. It is in this context that professional circles raised the demand to increase the share
of GDP for education allocated in the government budget to 5 percent in the next five to six
years, with commensurate increase in the education share of the government budget from
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current 14% to 18%.

Budget Planning and Management

Increased expenditure is not enough: A truism that needs to be underscored is that the
availability of additional resources alone will not yield the expected gains, especially in
respect of quality, unless existing weaknesses both in educational management and the
teaching-learning process are seriously addressed and remedied. Along with effective
management of resources, decision-making and implementation of decisions regarding
learning objectives and priorities, the pedagogic process and establishing accountability, and
performance standards at all levels have to be improved.

Incremental budgeting based on precedence: The standard practice of making financial

allocations in the recurrent budget is to do it on an incremental basis, i.e., taking the current
status as the baseline and adding annual increments in the budget. Given widespread
inefficiencies and questions about external effectiveness of programs and institutions, it is
necessary to require justification of what exists and assess alternatives and options in budget
decisions. It is necessary to establish performance criteria and apply them so that managers of
the respective component have incentives to perform and prevent wastes and inefficiency.

Dominance of staff compensation: Staff compensation accounted for 97 percent of the

recurrent budget in FY98 for primary education, which represents the normal pattern. This
included salary in government schools and salary subvention for non-government primary
schools. Government grant, available for salary subvention, to non-government institutions
have the effect of maintaining the pattern of school costs dominated heavily by staff salaries
with little funding for other quality inputs. This pattern in the operating budget has serious
adverse consequences on the quality of education and learning outcomes.

Medium-term budgetary framework: As a part of overall budget management improvement,

development and application of a medium-term (five-year) budgetary framework has been
initiated in some of the sectors including education. A medium-term budgeting framework
combining both development and recurring expenditure with year-to-year rolling adjustments
would still be a useful mechanism for budgetary discipline and optimizing utilization of
resources.

Managing high share of incentive expenditures: Development expenditure in primary

education is dominated by the incentive payment in the form of stipends both at primary and
secondary levels. In both cases, it is offered only in rural areas; at the primary level it is paid to
40 percent of the students in the school; in the latter case, stipends are paid only to girls and
are complemented by a tuition waiver. Stipends at the primary level amount to two thirds of
the estimated development budget from the government’s own resources for the next five
years and half of the total primary sector development program (PEDP II) other than stipends.
Similarly, expenditures for stipends in both primary schools and for girls in secondary schools
and free tuition for girls add up to one-third of total development expenditure in the education
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sector.

A number of questions arise about the large share of the development expenditure in primary
and secondary education being spent on stipends. Clearly, a key question is whether this
starves out essential quality inputs for education programs. Questions have been raised about
the efficacy of the incentive expenditures on three contexts: (a) whether they are sustainable as
the claim on them rises backed by political pressures, (b) whether they can be administered
efficiently and without being distorted by corruption, and (c) whether the benefits in terms of
participation, equity and quality improvement would not be better achieved by spending
directly on improving inputs and performance in school.

Equity and educational financing: Education finance arrangements reinforce the pattern of
inequity in the education system. A World Bank public expenditure review (1996) in the
education sector concluded that the share of benefits for households from public spending in
education rises with income levels of households at all stages of education, but especially in
secondary and tertiary education. The same review found that poor households received 15
percent of public spending on higher education, while 85 percent went to non-poor
households. In primary education, the benefits roughly corresponded with income distribution
of the population. But this means that primary education is not able to contribute to tackling
existing economic disparities and disadvantages. Inequality arising from the present pattern of
higher education participation and benefits is exacerbated by very low cost recovery in the
highly subsidized public university system. Tuition fees in public universities cover less than
1 percent of the university budget. Cost-sharing and cost recovery as approaches for
promoting equity in the system have to be considered in programs where both private benefits
and public subsidies are relatively high, such as in most tertiary level institutions and some
vocational and technical education programs.

Paucity of systematic research and analysis in education finance, including tracking of

expenditures, is a major obstacle to effective educational planning and management. There is a
need for research, particularly, in the form of micro-economic studies at the level of
households, schools and communities; tracking expenditure from central level to institutions
and learners; analysis of private costs and expenditures; and probing internal efficiency of
different types of institutions in the same sub-sector.

Public-Private Partnership in Education

Public-Private Partnership building for mobilizing resources, but more importantly for
improving performance of educational programs and their responsiveness to specific
conditions and circumstances, is much in discussion. Non-formal primary education of NGOs
serve eight percent of the children who are particularly disadvantaged and offer a second
chance opportunity to those who have not enrolled in school or have dropped out. It is
necessary to recognize the mutual complementarily of formal and non-formal primary
education, make the latter a part of the national strategy for improving access and quality in

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primary education, and incorporate its flexibility and community involvement in formal
education.

Need for collaboration with and contribution from private sector in public sector training is
recognized; how this will happen and what incentives there may be for the private sector have
to be specified. The evidence of effective programs by NGOs such as UCEP and the private
sector response to the demand for IT training suggest new possibilities. Similarly, an
appreciation of the potential of private universities and a comprehensive strategy for higher
education development with complementarily and cooperation between public and private
provisions are needed. As a whole, private-public partnership in the context of investment,
employment, service delivery etc. should be specifically considered.

EDUCATION SUB-SECTORAL PERFORMANCE AND STRATEGIES

PRIMARY AND EARLY CHILDHOOD EDUCATION

Performance and Development in Primary Education Sector

Progress has been made in increasing equitable access, reduction of dropout, improvement in
completion of the cycle, and implementation of a number of quality enhancement measures in
primary education. Access to primary education has increased steadily over the past two
decades. The contribution of government-run and government supported formal primary
schools, which accounted for 85 percent of the primary school children, were complemented
by Ibtedayee Madrasas, which also receive substantial government subventions, and non-
formal primary schools managed by NGOs, largely funded by external donors. In 2008, the
gross enrolment rate of primary education reached 97.6 percent, though net enrolment is
estimated at about 91.9 percent. The growth of net and gross enrollments however appear to
have slowed down in recent years. The rate of completion of the five-year primary stage by
those enrolled is reported to be low, with about half of the students dropping out before
completing the five year primary education course. Gender gap in enrolment has already been
achieved.

A compulsory primary education law was adopted in 1990 and the compulsory primary
education program was extended nationwide in 1993. Incentives for all children to attend
primary school have been introduced through distribution of textbooks and provision of a
stipend of Taka 100 for a child and Taka 125 for more than one child in school per family,
targeted at 45-90 percent of the students in a school identified as poor. The cash stipend was
introduced in 2002 which replaced "food for education" in the form of a monthly grain ration
targeted at poor children initiated in 1993. The Department of Social Services under the
Ministry of Social Welfare has started a stipend program for the students with disabilities,
which is encouraging the students with disabilities to enroll in the general educational
institutions.

Quality improvement measures in primary education have been taken through various
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development programs supported by external assistance. Curriculum and textbooks have been
modified. Upazila Resource Centers (URCs) have been established and school-cluster based
in-service training for teachers have been initiated. Training for head teachers and Upazila
primary education staff in management and academic supervision has been introduced.

PEDP II progress and constraints: The Second Primary Education Development Program
(PEDP II) for the years 2003/4 to 2009/10 (now extended to June 2011) has been undertaken
as a sub-sectoral program to improve primary education quality and expand access to primary
education. Initial targets were set for raising gross enrollment rate to 107 percent and net
enrollment rate to 88 percent. The latter target appears to have been already achieved as noted
above. Beneficiaries of PEDP II support were the government and registered non-government
primary schools (RNGPS), with Madrasas and non-formal primary education left out, although
it was given the label of a sector wide or program approach. The program, nonetheless, stated
as its aim to introduce quality standards for primary education which all schools should meet
and to make significant progress towards building a truly inclusive primary education system.

The Directorate of Primary Education has summarized progress of PEDP II in the following
manner:

Objectives Likely to be Achieved

Both the gross and net enrolment rates will be achieved. It is noted that this is partly a function
of a decrease in the projected population of the primary school age group; geographical
disparities, however, remain, and there is “some concern regarding the reliability of the basic
demographic information.”
• The number of student receiving stipends is targeted to be at least maintained at or to rise
above the 2005 baseline level (of 78,15,000 students).
• The target for reducing pupil absenteeism in the types of schools supported by PEDP II
from 22% in 2005 to 18% in 2009 (with gender parity) would be achieved. This would still
leave an unacceptable level of absenteeism even in PEDP II supported schools.
• The targeted transition rate from Primary to Secondary (from grade 5 to grade 6) is likely
to be met, although about half of the children in primary school drop out by the time they
reach grade 5.
• Planned additional teacher recruitment (a total of 35,000 under PEDP II) will be carried
out. The impact on pupil teacher ratio will be small because of the number of teachers
leaving the system during the same period.
• Target related to organizational development and capacity building, including producing
the HRD plan and conducting institutional analyses, will be achieved, although necessary
steps regarding government decisions and implementation will not be completed.
• EMIS will be “significantly enhanced.” DPE is hopeful in achieving universal coverage of
School-Level Improvement Plans (SLIP) by the end of the Program, and additional
attention is being given to their scope and quality. The decentralization of planning and
management functions is proceeding – to the extent permitted by the pace of decision-
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 making that lies beyond DPE and MOPME. The issue of sending funds directly to schools,
which is essential for the sustainability of the program, is still to be resolved.
• Textbooks are now being produced and distributed to all primary children on time. From
the academic year 2010, all primary children will receive free textbooks (at present, 100
percent of the students of grade 3-5 are provided with free textbooks). However, the timely
provision of teachers’ guides and the improvement of the quality of textbooks remain
major challenges.
• Quantitative training targets (for Teachers, Head Teachers, and SMC members) are likely
to be met. However, the quality and outcomes of training have not yet been
“systematically documented.”
• Construction targets are likely to be met, as are the revised targets for better maintenance –
although building sufficient classrooms to reduce class size to 46 will not be achieved
during PEDP II. Ensuring that there are sufficient schools and classrooms to enable
“Education for All” to be accomplished will require a more substantial and carefully
planned building program – and “alternative construction and community involvement
strategies will need to be considered.”
• The 2009 target regarding safe (arsenic-free) water sources in GPS is very likely to be
achieved on schedule.
• The issue of “Inclusive Education” is being pursued with “much commitment” but, the
magnitude of the task was under-estimated. The current program addresses the needs of
only those children with mild physical disabilities – meeting the needs of those with severe
disabilities remains outside the scope of the primary education system. There are no
specific targets for other excluded groups, such as linguistic minorities or children in
extreme poverty.
• The target of 28% of schools running in single shift by 2009 (among PEDPII schools) is
likely to be met, which will leave three quarters of GPS and RNGPS running in double
shifts.
• In the primary level the ethnic people are given opportunity to study in their mother tongue
and ethnic teachers are given priority in areas where ethnic people are residing.
• Education tools will be adapted to disadvantages peoples.

Targets that Require More Attention

• The rate for completion of primary education up to grade 5 will be well below target,
although some children may complete grade 5 in schools outside PEDP II. Dropout Rates
remain far higher than those targeted.
• Expenditure on education as a percentage of GNP and for expenditure on primary
education as a proportion of total education is not on track to achieve the anticipated
increase.
• Repetition rates have yet to improve significantly and, despite stipends and quality
enhancement, the coefficient of efficiency target is unlikely to be achieved.
• The revision of the C-in-Ed program is occurring more slowly than anticipated. Even with
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 the reform of the course and its change into Diploma in Education, it will not address
major issues regarding teachers for a system of primary education that meets criteria of
quality and equity.
• Teachers’ revised job descriptions with well-defined incentives, career paths and
recruitment rules are not yet in place as government’s policy consideration and decision-
making (beyond the control of DPE and MoPME) remain slow.
• Filling of staff vacancies at all levels in PTIs, DPEOs, and UEOs has proved much more
difficult and time-consuming than anticipated and remains a serious problem.
• Capacity development in NAPE and NCTB, two key institutions for improvement of
quality in primary education, remain a challenge. Almost all the professional staff are
‘deputies’ (seconded on a temporary basis) from other departments who stay for uncertain
and often short periods. Many of those trained for specific roles within NCTB and NAPE
are no longer with these institutions.

The PEDP II goals are broadly consistent with the Second National Plan of Action (NPAII) for
implementing the Education for All goals for 2015, derived from the Dakar Framework
adopted in the World Education Forum in Dakar in 2000, to which Bangladesh is a party. This
second NPA is intended to provide a longer term perspective of development priorities and
objectives in basic and primary education, specifying intermediate targets and strategies for
reaching the final destination. NPAII also set goals for literacy and adult education as a part of
the effort to create eventually lifelong learning opportunities for all citizens.

Preschool and early childhood education: The Dakar Framework and NPAII recognized that
early childhood development and preschool education have a strong positive influence on
preparedness for school and later performance and achievement of children in school. Children
from poor families, especially the first generation learners, can benefit greatly from early
childhood programs. There is also a social demand for preschool education as the large
number of community initiated pre-schools attached to primary schools (known as baby
classes) indicate. The government, recognizing the value of pre-schools and the social demand
for these, has encouraged NGOs and community organizations to set up and support pre-
schools within the premises or near primary schools. Under the auspices of the Ministry of
Women and Children Affairs, with overall management support from the Shishu Academy,
preschools are also run in Chittagong Hill Tracts as well as a small number in other districts.
The Ministry of Primary and Mass Education has also adopted an operational framework for
preschool education and has plan for adding preschool classes in government primary schools.
The Ministry of Children and Women Affairs has become engaged in a process of developing
a policy framework for early childhood development spanning conception to transition into
primary education. Various stakeholders including government and non-government bodies
and the Bangladesh ECD Network, a forum of ECD-related organizations, are involved in this
process.

A projection of the numbers in primary age group in the decade ahead and projection of
enrollment based on current trends are shown in Annex. The projection of children in the age
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group shows a slight decline in total numbers. The implication of this population trend is that
resources and efforts can be directed more to quality improvement rather than expansion of the
system to accommodate larger numbers. Since the enrollment projections are based on
extrapolation of current trends, these have to be taken as indicative and will be sensitive to
policy decisions taken regarding development of primary education.

Achievement deficits: One of ten children of the primary school age does not enroll in school
and almost one of two of those enrolled does not complete primary education of five grades.
This however does not take account of what is actually learned by those who complete
primary education. Available studies suggest that a large proportion of children are virtually
deprived of primary education, although they are enrolled in school. In spite of advances
made, more need to be done regarding low average attendance of class by enrolled students,
many crowded classrooms, lack of adequate learning materials, still untrained and often
unenthusiastic teachers and short contact hours in schools which mostly operate in two shifts.

Inequity in opportunities: It is reasonable to conclude that children from poor families are
the ones who either do not come to school or are very poor achievers mainly because their
illiterate parents cannot help or guide them at home. Household surveys that have related
economic status of families (measured by their food security status) with their children's
primary school participation have shown a strong correlation. The commonsense view is that
spending in primary education is pro-poor and the expansion of primary education benefits the
poor. This is not so unless primary education maintains acceptable quality and operates in an
inclusive way, without effectively leaving out the very poor and other disadvantaged groups,
enrolling some of them nominally. However, it is important to recognize that mere enrollment,
or even completion of primary schooling, for instance, without acquiring a functional level of
literacy and numeracy skills, which is not uncommon, is clearly not effective access or
participation in education. The concept of effective access, therefore, must embrace three
elements: a) enrollment, b) continuation and completion without dropout, and c) and acquiring
by students prescribed knowledge and competencies for the particular stage of education.
Those who have their names on the school roll, but are disengaged from learning, thus failing
to achieve a minimum level of competencies, are “virtually excluded” from education even if
they stay on in school and receive a certificate of completion.

Access with equity and quality: Access to and participation in primary education, especially
of the poor, is not just a matter of making provisions for schools within physical reach. In this
context, the functioning of the school has to be responsive to the specific circumstances and
needs of children in various ways. These include the daily time-table and annual calendar of
the school, the learning materials and the pedagogic approach, how the teacher relates to the
children, not burdening the family with the cash cost of exercise books and examination fees,
rapport of the teacher with the parents, as well as the proximity of the school, especially for
girls. Above all is the assurance to parents and the children themselves that the teacher is
present every day on time and that the children indeed learn.

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The quality of teaching-learning and school governance do influence effective access.
Contrary to government expectations, parents usually have to bear unofficial payments of
various kinds (for sports, transportation of government-supplied textbooks, terminal
examination fees, etc.) in "free and compulsory" primary schools. The expenses parents have
to incur for private tutoring outside the classroom are additional obstacles to the poor families.

It is very likely that there is an overlap between non-enrollees and non-completers and some
6.3 million children estimated to be engaged in harmful child labor. Because of their
especially difficult circumstances, working children can be helped only with a combination of
interventions addressing both school and family-related factors, which regular primary schools
are not equipped to provide.

A mid-day meal is considered essential to ensure that students in primary school can maintain
attention span for learning for a full school day. This is particularly important for children
from poor families in Bangladesh, many of whom may come to school without a proper
breakfast. Trial distribution of snacks with WFP assistance in selected locations has been
found to have significant learning and nutritional outcomes.

The SFYP plan emphasizes the importance of a combination of healthy body and mind as the
pre-requisite of acquiring knowledge and will take necessary actions to integrate physical
education at primary and secondary level. In addition, students with disabilities and children of
excluded societies will be specifically targeted to ensure equity in education.

Extending compulsory education up to Grade 8: The government pledge reflected in the

Education Policy (2010) is to extend primary education, and provide for universal access, up
to grade 8 by 2018. With five grades of primary education seen as insufficient preparation for
citizens of an aspiring middle-income country, there is a strong case for extending the basic
education stage to grade 8 with a pragmatic and time-bound plan to move toward this goal.

In order to meet MDG Goal-2 of “ensuring primary education for all by year 2015” the
ministry has taken several strategies through a number of projects. In addition, the ministry is
going to implement program-3 (PEDP III) which aims at issues like increasing the completion
rate of primary education, reducing the rate of drop outs, reducing the rate of repetition,
improving the quality of primary education, resolving the problem of scarcity of teachers and
teaching materials, implementation of unified primary education program etc. The government
policy emphasizes on “extending primary education to grade 8” which directs the focus on
labeling education up to grade 8 as primary education, rather than expanding access and
improving quality beyond grade 5, regardless of where children are taught. The focus on
changing the scope of primary education, rather than extending compulsory education, directs
energy and resources to administrative reorganization, shifting responsibility from one
Ministry to another and equipping present primary schools with additional classes and
teachers. The suggested steps for implementing this recommendation and the indicated cost
calculation in the draft policy also focus on extending primary education and seem to make
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the job unnecessarily difficult. In fact, the likely diversion of energy and resources away from
quality and content of teaching-learning can be a serious distraction from expanding and
improving access to education up to grade 8.

Expansion of educational opportunities up to grade 8 and making it universal in the next

decade, along with universalization of education up to grade 5, become much more achievable
if it is recognized that : a) some 45 percent of the children of the present junior school age get
enrolled in school, b) from the perspective of educational and learning objectives, it does not
matter if MOPME, and c) what is critical is a coordination and cooperation between agencies
under the two Ministries to ensure that there is a continuity in curriculum and that quality of
teachers and teaching are given due attention.

NON-FORMAL EDUCATION AND ADULT LITERACY

Performance and Development in Non-formal Education and Adult Literacy

The commitment to battling the high adult illiteracy rate in Bangladesh prompted the
Government to launch a major non-formal education program in the 1990s, focusing on basic
literacy. Priority was given to achieving universal coverage of youth and young adults in the
age range of 11 to 45 years. The literacy efforts as well as the expansion of primary education
raised the level of literacy of the population, though the estimates of the literacy rates actually
achieved remain a matter of debate. The rate of literacy for population age 15 years and above
is estimated to be 58.3 percent (2007)- a significant improvement over a rate of around 35
percent in 1990.The political pledge of the government is to eliminate adult illiteracy by 2014.
In the light of past experience in literacy programs, such as the Total Literacy Movement,
there is concern among education researchers and other stakeholders that a mass campaign
approach may not enable participants to acquire functionally useful and sustainable literacy
skills that would prevent learners from relapsing into illiteracy. International experience and
lessons suggest that simplistic quantitative targets (leading to declaring districts as “free of
illiteracy”) are not very useful.

The EFA Global Monitoring Report, for example, recommends that literacy programs should
be designed as an integral part of systematic continuing learning opportunities within the
framework of a lifelong learning approach. Recognizing the need for post-literacy and
continuing education programs in order to help learners consolidate basic skills and use these
in improving their lives, projects on post-literacy and continuing education have been under
implementation by the Bureau of Non-formal Education of the Ministry of Primary and Mass
Education, targeting some 3 million adults. These donor-supported projects have been
implemented through contractual arrangements with NGOs, with indifferent outcomes
regarding skills actually acquired and applied in a meaningful way. Moreover, there was little
contribution from these to building a sustainable institutional structure for lifelong learning.

A degree of diversity in non-formal education serving diverse learning needs of the

population, especially the poor unable to participate in formal education has been maintained
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through NGO initiatives. Non-formal primary education on a substantial scale, offering a
second chance to children and youth for basic education, has been carried out by NGOs. Other
activities by NGOs include basic education combined with skill training for adolescents and
youth who have dropped out from school or have never enrolled as well as early childhood
education activities. These, other than non-formal primary education, have been on a small
scale compared to the potential demand.

Key issues ensuring quality and meaningful learning: The history of literacy programs
initiated by the government including the mass literacy campaign in the 1980s and TLM and
its predecessors in the 1990s shows that poor quality adult literacy programs discourage
sustained participation of adults in literacy and ongoing adult education programs. Adult
educators are typically low paid and poorly trained. Limited staff development opportunities
and low compensation provide no incentives for sustained, quality teaching. Cost-per-learner
assumptions are often extremely low, dependent on ‘volunteers’ and community contributions
and on the logic that non-formal systems, particularly for adults, do not require infrastructure
such as the buildings and other equipment and materials considered necessary for formal
schooling. Literacy and post-literacy education curricula are often irrelevant to the highly
diverse realities and contexts of learners, the contents are dull and the production quality is
often very poor.

Ensuring functional and sustainable skills: While the value of lifelong learning gained
momentum, especially in the developed countries, very few countries in the global South
picked up this broader view of literacy integrated with continuing education. The Sixth World
Conference on Adult Education aims at placing adult learning and literacy at the center of
lifelong learning. This attempt at breaking down insular compartmentalization among literacy,
numeracy, life skills and non-formal education leading to a holistic understanding of adult
education is still to be taken as the framework for program design in many developing
countries, especially in South Asia. In fact, the concept and scope of literacy efforts in
Bangladesh suggest that these are still tied to the 50’s and 60’s understanding of literacy –
with the symbolism of “reading a sentence” and “signing one’s name” given prominence and
taken as an acceptable definition of literacy. This reductionist view of literacy seems to be
reflected in the Education Policy (2010). The target of eliminating illiteracy by 2014 needs to
be defined in terms of achieving functional and meaningful skills and as the first step for
lifelong learning and for engaging in a process of enhancing one’s life prospects.

Basic education for working children and youth: Basic education for working children and
youth, engaged in paid work to supplement their families’ income or for their own subsistence,
calls for a different approach than the prevailing “second chance” non-formal primary
education. Basic education opportunities for them need to be combined with social support,
counseling, and employment-related skill training, which is beyond the capacity of a regular
primary education institution. To address the complex problem of child labor and their
deprivation from education, a basic education project for "hard-to-reach urban children" has
been undertaken with UNICEF support. The administrative home of this project appropriately
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lies with the Bureau of Non-Formal Education. A second phase of the Hard-to-Reach project
has been underway since 2003. A project to serve 500,000 out-of school children in rural
areas to be implemented with the help of NGOs and funded by IDA and SDC called Reaching
Out-of-school Children (ROSC) project was launched in 2005. This is designed after NGO-
operated NFPE projects and represents a first government initiative to undertake a
complementary non-formal primary education project for rural out of school children.

The education policy mentions that the literacy rate in the population of over 15 years of age
is 49 percent and proposes that the goal of adult education should be to “make all adult
citizens literate” by 2014. Non-formal education is seen as complementary to formal
education. Until 100 percent of the children are enrolled in primary education, those not
enrolled and those who drop out should receive basic education and “some practical
education” through NFE. Those who complete NFE may join formal education. Adult
education will focus on literacy, “developing human qualities,” awareness-raising, and
improving occupational skills. Those between ages 15 and 45 will be given priority in literacy
programs. Continuing education opportunities will be created for maintaining competencies
and skills acquired.

The education policy separates adult education and non-formal education activities, looking
upon the former essentially as an adult literacy campaign and the latter as non-formal primary
education for children. This is contrary to concepts and practices in adult learning and non-
formal education and betrays a very limiting and restrictive view of adult and non-formal
education and a disregard of the critical importance of the lifelong learning approach. The
practicalities and implications of the proposed authority for continuing education and skill
development and transformation of the Directorate of Primary Education and the Bureau of
non-formal education need further consideration.

Currently, the main public-sector NFE activity under the Ministry of Primary and Mass
Education is the Post-Literacy and Continuing Education project funded by donors including
World Bank and ADB. It aimed to serve 3 million adults who went through the TLM course,
hence the label “post-literacy,” though most potential participants had not acquired functional
literacy skills. The content focused on consolidating literacy skills and a short training to teach
income-earning skills.

A comprehensive program for non- formal education as a major component of the effort to
build a learning society does not exist, although a policy framework adopted in 2006 to guide
action anticipated such a program. A national task force on NFE and a working group under
it worked for almost three years resulting in the adoption of a forward-looking policy
framework for non-formal education in 2006. The task force agreed that NFE has a critical
role in offering learning opportunities, building skills and capacities and broadening life
options for the poor, if the education programs are designed and implemented effectively. It
recognized that NFE must have an important place in a pro-poor education and human
development strategy. The policy framework provided guidance regarding:
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• Objectives and scope of NFE in the context of lifelong learning and making every
community a learning community.
• Organization and management structures including issues of decentralization of and
definition of responsibilities at different levels and of different actors, partnership-
building, technical and professional support mechanism, and professionalization of
management.
• Establishing quality standards and measures and assuring quality in programs -
Sustainability and community ownership.

The Bureau of Non-formal Education was established with the responsibility to put into
operation the policy framework. The Bureau, however, has been established as an office under
the Ministry of Primary and Mass Education, staffed by seconded officials, rather than as an
autonomous body with a core permanent staff of professional personnel and an appropriate
remuneration structure to attract high level professionals, as recommended by the national
working group. The Bureau lacks the mandate and the capacity to operationalize the broad
vision of the NFE policy framework. This situation probably explains the persistence of a
narrow vision of NFE, concentrating on a literacy campaign approach based on a traditional
and limited definition of literacy.

The age for enrolling in non-formal education will be 8 to 14 years. Primary education
curriculum will be the basis for preparing learning materials for non-formal education. A new
organization known as Bangladesh Continuing Education and Skill Development Authority
is proposed to be established, which will combine the functions of the Directorate of Primary
Education and the Bureau of Non-formal Education. A legal framework for fulfilling the
constitutional obligation regarding adult and non-formal education is recommended.

SECONDARY EDUCATION

Performance and Development in Secondary Education:

The secondary schooling system is a hybrid mix on Bangla medium schools, Madrasas and
English medium schools. In terms of enrollment in secondary education, the ratio has
increased from 30 percent in 1990 to 43 percent in 2008 and 49.1 percent in 2009. Despite this
progress, the majority of children of the secondary school age group (11-17 years) remain out
of school. Within the gross enrolment rate of 45 percent, there is substantial decline from the
junior to the higher secondary level. The rate was estimated to be 54 percent at the junior
level, 39 percent at the secondary level and 12 percent at the higher secondary level. This
situation indicates a high level of wastage at this level – an average of 14% dropout out in
each grade of junior secondary level, 37% in each grade of secondary level and 17% in each
grade of higher secondary level. Roughly one in five students who enroll in grade six pass the
Secondary School Certificate examination and one in ten obtain the Higher Secondary
Certificate.
The low completion and pass rate lead to labeling the vast majority of the young people in

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secondary education as "failures." The number of students taking the SSC examination (after
10 grades) increased 1.8 times from 1990 to 2010. Of them, 43.8% studied Humanities, 25.7%
Science, and 30.4% Business Studies. During the same period, the number of dakhil
examinees increased 3.5 folds- from 47 thousand to 162 thousand.
The number of examinees in HSC examination (after 12th grade) increased from 290,000 in
1990 to 580,623 in 2010. For Alim examination, it increased from 25,000 in 1990 to 73,790 in
2010.
The 7-year phase of secondary education, from grade 6 to 12, is provided through a
collaboration of government and non-government providers within a regulatory framework
established by the government. Of over 30,000 secondary level institutions (including over
9,000 Dakhil and Alim Madrasas offering secondary level instruction), over 98 percent are
nongovernment, but they receive subvention for teachers' salary and occasional capital grants.

Education Engineering Department (EED) is entrusted with the responsibility of infrastructure

development of educational institutions like schools, colleges, madrashas, technical schools,
polytechnic institute, engineering colleges and universities. EED plays a vital role in
implementing the projects, which will subsequently upgrade the manpower, virtually which
will help to earn foreign currency also increase the literacy rate of Bangladesh.
The National Academy for Educational Management (NAEM) is the first of its kind in
Bangladesh, which has been contributing very significant and supportive role in the area of
education management, training, research and planning. So as to ensure quality management
of education at all levels of post primary education. To coop up with modern education
management and training NAEM needs to strengthen in this plan period

BANBEIS is the agency that keeps all educational data management bank of Ministry of
Education. In Sixth Five Year Plan period BANBEIS needs to be strengthened.

Scouting is a global program. It helps students for building up sound health, self dependent,
patriots, and skill development. It helps to build a better world where people are self-fulfilled
as individuals and play a constructive role in society. As a member of The World Association
of Girl Guides Bangladesh Girl Guides provides girls and young women with fun and
educational opportunities for developing life skills and leadership qualities, enabling them to
become active members of their communities. Bangladesh National Cadet Corps (BNCC) is a
Tri-Services Organisation comprising the Army, Navy and Air Force. Bangladesh National
Cadet Corps is entrusted with the task of grooming the future leaders and finding the hidden
protentials of youths. BNCC is an organization consisting of Defence services officers, Junior
commissioned officers (JCOs) and Non commissioned officers (NCOs) civilian officers &
staffs, teaching staffs and students from different educational institutions. A continuous
improvement will be required for SCOUTS, Girl Guides and BNCC to self-help to fit
themselves for 21st century.

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The main areas of policy progress in secondary education include:

• More than 98% of secondary schools are non-government. But Government pays 100% of
the teacher and staff salary of these institutions.
• Bangladesh has sustained increased government allocation in education sector from the
1990s.
• Government is currently providing subsidies to create demand for education in favor of the
poor and girls.
• Government has initiated the decentralization of primary and secondary education
management structure.
• Government has established an autonomous Nongovernmental Secondary Teachers
Registration and Certification Authority in order to recruit qualified and trained teachers in
secondary level institutions.
• A large project for the improvement of teaching quality at the secondary level institutions
is underway.
• A separate entity named Independent Textbook Evaluation Committee (ITEC) has been
established for designing transparent criteria under which individual textbook manuscripts
will be evaluated.
• School based assessment (SBA) in secondary level education.
• Reform of existing examination systems in secondary level education.
• Re-organization of Managing Committee/Governing Body of the Non-Government
Educational Institutions.
• Formation of Oversight Committee for Supervision of Teaching at Classrooms.
• Sanction of MPO on the basis of performance of educational institutions.
• Strengthening of teachers' training.
• Delivery of textbooks to the students on time.
• Development and modernization of Secondary, Technical and Madrasa Curricula.
• Retirement and Welfare Fund for Non-Government Teachers.
• Distribution of 20,500 computers in secondary level educational institutions.
• Training of secondary level teachers' in computer applications.
• Decentralization of Directorate of Secondary and Higher Education.
• Restructuring of Personnel of Boards of Intermediate and Secondary Educations in Dhaka,
Rajshahi, Chittagong, Jessore, Barisal, Comilla and Sylhet and NCTB.
• Introduction of technical and vocational courses in the madrasa and general education.
• Introduction of science and technology curriculum in madrasa and general education.
Increase the enrolment in technical education from the existing 6% to 25% within next 15
years
• Introduction of technical and vocational courses in secondary, higher secondary and
Madrasa levels.
• Introduction of double shift in the existing technical schools, colleges and polytechnic
institutes.
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• Establishment of one technical school at each Upazilas.
• In order to include the students with disabilities in the mainstream education system,
provision for sign language for the hearing impaired students, jaw computer, Braille books,
electronic devices for visually impaired students, will be considered.
• Quality enhancement of teachers and officers
• Establishment of trust fund to provide stipend to the poor and meritorious students upto
degree level.
• Improve infrastructural facility of educational institutes.
• Establish a strong ICT network among Ministry of Education, Directorate of Secondary
and Higher Education, University Grant Commission, Education Engineering Department,
Education Boards, Universities, Directorate of Technical Education, NAEM, BANBEIS,
Education institutes and other allied institutes and Government Bodies.

Recent Developments in Technical Education

Various projects for quality enhancement and increased participation in secondary education
have been undertaken. Secondary Education Sector Improvement Project (SESIP) was the
main effort for secondary education development for the period 2000-2006. Equitable access
of girls, textbook production, improvement of teacher education, examination system
development and strengthening ministry level capacity were the areas for intervention under
this project. The sub-sector support project also aimed to prepare the ground for future
development and effective use of internal and external resources for this purpose. Particularly
relevant from the perspective of poverty reduction is the project objective of equitable access
to secondary education by building new schools and classrooms in underserved areas and
providing stipends and tuition waivers to girls.

A major boost to female participation in the secondary level was given by various stipend
projects for girls. There are five of these projects underway at present which provide stipends
to over 4 million girls in more than 21,000 institutions in all rural Upazilas in the country. The
girls were also exempted from tuition and the schools were compensated by the government
for the loss of tuition.

Teaching Quality Improvement (TQI) Project in Secondary Education was planned to follow
SESIP for the period 2005-2010. Improving the quality of teaching is the overall goal of this
project. The project, at an estimated cost of US$ 97 million, was funded by ADB and CIDA.
The components of this project are : (a) Capacity Building : an improved teacher training
system, strengthened capacity of DSHE and BANBEIS, creation of an incentive fund for
teacher education institutions, and management training of personnel; (b) Improving in-service
and preserves training: School-cluster in-service training and teachers’ resource center,
upgrading training institutions, accreditation of trainers, distance mode teacher training,
preparation of teacher training materials, program communication and mobilization; (c)
Improving Teacher Training Facilities: Renovation of training institutions and equipping
Upazila Teacher Resource Centers; (d) Equitable access: access in remote rural areas,
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internships for teachers in underserved areas, support for schools in disadvantaged areas and
increasing the number of women teachers. In addition, a project worth 373,29,48 lac taka
have recently (October, 2010) been approved for providing ICT training at primary, secondary
and higher secondary level in 128 Upazilas.

One of the key problems of technical education is lack of qualified teaching staff in technical
schools, polytechnic institutes and engineering colleges. A significant initiative for quality
improvement was to set up a Registration, Certification and Training Authority (RCTA) for
secondary school teachers. The aim is to have all teachers to acquire professional
qualifications and be certified and registered as qualified for teaching by a certifying authority.

Projections of children in the secondary education age group and of enrollment in the decade
ahead are shown in Annex 7.8 and 7.9. Growth in enrollment in the general stream and in the
Madrasas is indicated on the basis of extrapolation of recent trends. These projections would
be sensitive to policy decisions such as implementation of the policy to extend universal
primary education up to grade 8 or decisions regarding balance between madrasa and the
general stream in respect of government subvention. There is a trend of leveling off of the
numbers in the age group of eligible population for junior, secondary and higher secondary
education, because of the decline in population growth.

HIGHER EDUCATION

Performance and Development in Higher Education

The major components of tertiary education network in 2010 were 33 public general and
specialized universities, 54 private universities, 1778 colleges of different kinds affiliated with
the National University as well as the Bangladesh Open University. The University Grants
Commission (UGC) is the regulatory body for university level institutions.

Historically, the University of Dhaka, and degree colleges in the old district centers of the
eastern part of Bengal had earned a reputation for academic standards and as centers of
intellectual pursuit. A massive expansion of the system and the demands of time have altered
the character of higher education over the last half century. In numbers of institutions and
enrolment, tertiary education has recorded over five-fold growth since the birth of Bangladesh
in 1971. Yet participation of only 7 out of every 1000 persons in higher education in today's
"knowledge economy" and "information society" has to be considered meager.

Students and teachers in higher education as reported by UGC in 2010 are shown below:
• Enrolment in 33 general and specialized public universities 1,382,216 (except National
university and open university)
• Enrollment in Open University 290,000.
• Enrollment in 1778 degree colleges under the National University 1,119,275
• Teaching staff in 31 general specialized public universities 9241.
• Teaching staff in the Open University 97 (main campus).
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• Teaching staff in the National University main campus 78.
• Teaching Staff in colleges under National University 67,953
• Enrolment in 51 private universities 213,872
• Teaching Staff in 54 Private Universities (Full-time) 5710
• Teaching Staff in 54 Private Universities (Part-time) 3, 630 and 1,461 were in study leave
or absent for other reasons.

Bangladesh Open University (BOU), established in 1992, offers a variety of courses in the
distance education mode including degree courses in business and education and diplomas and
certificates in various fields. The Open University (as well as the Open School under BOU
auspices that allows students to sit for SSC and HSC examinations) has contributed to
broadening access to higher education and meet both social and market demand for it. In 2010,
registered participants in various BOU courses were reported to be 290,000. Less than a
quarter of those registered complete courses and take the examination and about half of them
receive the diploma.

In response to social as well as market demand, the tertiary education system has grown. An
expansionist approach has been followed, particularly in the sphere of degree colleges under
the National University and in approving liberally the charters for private universities. Private
Universities have grown in number and enrollment rapidly since the Private Universities Act
was adopted in 1992. In 2009, the number of students has increased more than about 25 times
from 8,700 to 213,872 surpassing enrolment in public universities other than National and
Open Universities. The number of institutions has increased in 36 by 2009. The rapid growth
in number and size of private universities and the absence of effective self-regulation or
regulation by the UGC have, however, raised concerns about their quality and protecting
consumers from unscrupulous "entrepreneurship." UGC has a new law with regards to
establishment and operation of Private University of Bangladesh which was approved in the
Bangladesh National Parliament in 2010. This law will replace the 1992 Act and require
stronger self-regulation, specify the responsibilities of various parties involved in establishing
and managing the institutions, and the formation of an accreditation council for maintaining
academic and instructional standards.

The number of students passing HSC examination who then would be eligible for tertiary
education has varied considerably from year to year. There are problems with both the
examination system and how quality standards are applied in institutions and in the
examination process. The institutions under the National University have an intake capacity of
about 300,000 students in affiliated degree colleges and a small number of specialized
professional colleges. The public and private universities can admit about 40,000 in each
category. The Open University offers another avenue for tertiary education to those who do
not want to or cannot be full-time students. There appears to be enough overall tertiary
education intake capacity at present for students who are eligible and interested in pursuing
higher education. At the same time, fewer than 5 percent participation in the tertiary education

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age group is low by even developing country standards.

In higher education, the policy initiatives include:

• Expansion of Agriculture universities.
• Establishment of science and technology university one each at greater districts.
• Steps to free the higher education institutes from terrorism, politicization and session
backlogs.
• Improve the quality and relevance of the teaching and learning environment in higher
education institutes
• Undertake higher education quality enhancement project.
• An Accreditation Council is being established which would function as a watchdog over
the private universities in order to monitor the teaching standard of universities.
• Private University Act with a view to enhancing quality of education and transparency of
the management of the Private Universities.
• Training program for the teachers.
• Modernization and renovation of existing infrastructure facility of Universities.

Challenges in Higher Education Sub Sector

Dilemma of expansion and quality: The dilemma in higher education is that the overall
participation and outputs of graduates in higher education are still low compared to other
developing countries. In addition, low quality of education in most institutions and inadequacy
of resources necessary to maintain quality put into question the value of the growth and further
growth along the same line. A strategic planning exercise undertaken by UGC in 2006
projected that 12 new public universities have to be established by 2026, if 10 percent of the
HSC graduates compared to (4 percent at present) are to be admitted to university. The
expansion of privately provided higher education although has contributed towards meeting
the high demand which the public universities have been unable to meet, there is increasing
concern over the quality of education provided in those institutions. This concern is
particularly relevant for the recently established small scale private universities, which lack
both physical infrastructure as well as academic competency.

Demand for public university access: The problem regarding access to higher education
arises from the fact that there is intense competition for the limited places in public
universities and a few prestigious colleges and for fields which are seen to have a high market
value. While private universities have widened the door of higher education, high tuition
charges to make them self-financing also makes them out-of-reach of the poor or even the
middle-class. Moreover, the quality of instruction in most of them is regarded at best as
uncertain.

The main issues regarding access to tertiary education, therefore, are two-fold: (a) equity of
access to universities and prestigious institutions leading to potentially high private return
from higher education, and (b) the balance of enrollment in different fields. The culling-out
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process in secondary education that allows a very small proportion of students to complete the
secondary stage and the diversion of a large majority of higher education aspirants, often the
ones from poor and lower middle class families in rural areas, to generally low quality degree
colleges, make for a highly inequitable system of higher education. Selectivity based on merit
is not the issue; the problem arises when general colleges become an expedient way of
meeting social and political pressures rather than offering a credible education program.

Inequality and gender disparity: Inequality is compounded by high public subsidy for
higher education. The ability to compete on the basis of equal opportunities at the basic
education stage is not ensured; this inequality is multiplied progressively through higher stages
of education, reflected in selectivity which favors urban residents and the wealthier strata of
society. In this context, the SFYP considers the importance of establishing special technical
university/ICT university for the students with disabilities. Gender disparity in higher
education persists, despite progress at the primary and the secondary level. About a third of the
students in degree colleges are girls and under a quarter are girls in universities. The ratio of
girls is lower in most specialized professional institutions.

Imbalance among disciplines: Balance among disciplines in tertiary education as a whole

remains tilted towards humanities and social sciences at the cost of science, technology, and
applied subjects. In degree colleges, where over 80 percent of higher education students go,
the balance is even more skewed than in universities, mainly because of the lower costs for the
humanities subjects and difficulty in recruiting teaching staff in areas other than humanities.
Over 80 percent of the students in public universities were enrolled in general studies rather
than in applied sciences and specialized professional courses. A hard formula cannot be
prescribed for distribution among disciplines, but the present balance would be generally
regarded as inappropriate.

ISSUES RELATED TO TRAINING

Performance and Challenges in the Context of Training

Based on the recent Labor Force Survey (2005-06), the working age population in Bangladesh
is about 54 million (age 15 years and over). About half of this population, have not been
subjected to any formal education, either at the primary level or lower. A little over half of the
work force has an educational level beyond primary education. These numbers encapsulate the
nature of the education and skill development task for the country. Half of the work force is
without any education. Only one-third is with education at primary level. Such low level of
educational attainments of the Bangladeshi work force limits the possibility of its competing in
the global market. Moreover, the poor quality of education acquired restricts its ability to (a)
further acquire advanced skill through development of training programs and (b) continuing
upgrading and adaptation of workers to changing skill demands.

Most workers in Bangladesh are employed in the informal sector, with agriculture as the major
sector of employment. The informal sector provides some 78 percent of total employment, of
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which 48 percent is in agriculture. Overseas employment of poorly skilled workers has also
become a significant source of employment. Every year, about 250,000 Bangladeshis migrate
abroad. About three million people of Bangladeshi origin are living and working abroad
presently.

The primary responsibility for overseeing the pre-employment training rests with two
agencies: the Directorate of Technical Education (DTE) and the Bangladesh Technical
Education Board (BTEB).The vocational and technical education (VTE) programs regulated
by the Technical Education Board attached to the Ministry of Education offers courses of one
to four years duration after the junior secondary level (grade eight). The courses are offered by
vocational training institutes, polytechnics, commercial institutes, technical training centers
and specialized institutes. Private sector institutions are increasing, especially in the IT sector
and in response to opportunity for work abroad as skilled and semi-skilled workers.

Certificate level courses (post-class 8) in various trades and skills are offered in approximately
100 public sector institutions (under Ministry of Education and Ministry of Labor and
Employment) and some 1,500 non-government institutions, other than secondary schools with
vocational courses. The introduction of vocational courses as part of SSC and HSC and
business course at the HSC level by the Directorate of Technical Education, (so far in
approximately 1200 institutions at SSC level and 500 at both SSC and HSC levels) has helped
to raise the share of post-primary student enrolment in VTE somewhat. But it is still only
around 2 percent of enrollment after grade 8. In 2005, about 130,000 students were enrolled in
these courses. This number was double the enrolment in the same categories in 1997-98.

Diploma level courses (post-grade 10) were offered in some 600 institutions, the large
majority of them in the private sector, including the higher secondary schools or colleges. The
Ministry of Labor and Employment offers skill training in the Institute of Marine Technology
and 13 Technical Training Centers. Another 22 Centers are in the process of being established.
The trades offered in TTC's, after junior secondary general education, are taught through two
yearly modules. The first module qualifies the trainee for the National Skill Standard III
(Semi-skilled worker) and the second module meets the requirements for National Skill
Standard II (skilled worker). The Centers also can offer tailor-made basic trade courses of 360
hours' duration in various trades for students of schools and Madrasas or other interested
groups. The Department of Youth Development in the Ministry of Youth and Sports run
training of 1 to 6 months' duration on various trades with the aim of helping trainees engage in
self-employment or paid employment. A 3-month long residential training course on livestock,
poultry, and fish culture is offered in 53 training centers in 53 districts. Alongside these
training centers, DYD conducts short training courses through its deputy director’s offices
located in the district head quarters. It also conducts training courses through a number of on-
going and completed projects. Training of 6 month-duration on computer, electronics, electric
house wiring, and refrigeration and air conditioning is offered in some of the centers. The
Department also provides training for women on dress-making and block and batik printing in
all districts. In addition short-duration mobile training courses are offered at the Upazilas
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level. Ministry of Women's and Children's Affairs provides short courses for women in such
areas as poultry, dairy, livestock, food processing, plumbing, and electronics, which have local
demand. Other providers of these kinds of courses are the Ministry of Social Welfare, the
Directorate of Ansar and the Village Development Party (VDP) under the Home Ministry and
the Bangladesh Small and Cottage industries Corporation.

Despite these multitude efforts, the availability of trained labor remains a problem.
Additionally, there is a mismatch between available jobs and required skills. The difference in
remuneration for skilled and unskilled workers has narrowed, which is an indication that the
training content and quality are not valued highly in the market. Those with training often
remain unemployed or cannot find employment in their area of training – an evidence of
mismatch and poor quality of training. The employers complain that the products from the
vocational system are not meeting their needs. Instead, the system continues to produce
graduates for old and marginal trades, which have no market demand, while skill needs for
newer trades remain unmet.

Vocational and Technical Education

Out of the labor force aged 15 years and above, around 40% have no formal education. This
encapsulates the nature of the education and skill development task for the country. With half
of the work force without education and only one-third with education at primary level and
beyond, they limit the possibility of skill development through training programs and
continuing upgrading and adaptation of workers to changing skill demands.

The working age population (15-64) has grown by about 18 million since the mid 1990s to
2003, to 77 million and the labor force has also grown by about 10 million over the same time
period. Women’s participation in labor force remains low, but it has been growing at a faster
pace lately. Over five million women have joined the labor force since 1996, thus raising this
total to 10 million.

The Department of Youth Development in the Ministry of Youth and Sports run training of 1
to 6 months' duration on various trades aiming at helping trainees to engage in self
employment or paid employment. A 3-month long residential training course on livestock,
poultry, and fish culture is offered in 47 training centers in 47 districts. Training of 6 month
duration on computer, electronics, electric house wiring, and refrigeration and air-conditioning
is offered in some of the centers. The Department also provides training for women on
dressmaking and block and batik printing in all districts. In addition short-duration mobile
training courses are offered at the upazila level.

Ministry of Women's and Children's Affairs provides short courses for women in areas like
poultry, dairy, livestock, food processing, plumbing, and electronics, which have local
demand. Other providers of these kinds of courses are the Ministry of Social Welfare, the
Directorate of Ansar and the Village Development Party (VDP) under the Home Ministry and
the Bangladesh Small and Cottage industries Corporation. Under the bureau of education,
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training is also being offered for capacity enhancement.

Shortage and Mismatch in Training

The sub-sector is characterized by paradoxes. People with vocational/technical skills are in

short supply, but there is evidence that there is a mismatch of jobs and skills; the difference in
remuneration for skilled and unskilled workers has narrowed which is an indication that the
training content and quality are not valued highly in the market. Those with training often
remain unemployed or cannot find employment in their area of training – an evidence of
mismatch and poor quality of training. It has been estimated that for every single person in the
labor force with a technical/vocational qualification there are more than 104 others who have
completed SSC or HSC; and 34 others who have gone onto a university degree or higher. At
the same time, employers’ perception is that the products from the vocational system are not
meeting their needs; that the system continues to produce graduates for old and marginal
trades, which have no market demand, while skill needs for newer trades remain unmet.

Informal Skill Development

Informal and traditional apprenticeship and on-the-job experience are the means for creating
most of the skills that keep the bulk of the economy and production of the country running. A
master craftsman, himself inheriting the skill from his father or another "master," training his
assistants in exchange for free labor or a reduced wage, produces such skills as welding,
turning, bricklaying, carpentry, furniture making, electrical maintenance, plumbing, bicycle
repair, motor repair and so on. Not enough is known about the system and its strength and
weaknesses. An attempt to bring the system under official regulation may not be a good idea.
However, maintaining an overview of the system and considering how the more formal
training programs of the government and the private sector can complement and supplement
the informal system can enhance the effectiveness of the total nationwide skill generation
capacity.

A wider clientele including the poor can be served to the extent that skill development
activities adopt more non-formal, flexible and variable-duration approaches with eligibility
criteria not strictly tied to formal education. There are many questions, as noted earlier, about
internal efficiency and external effectiveness of programs and their actual contribution to
poverty alleviation.

Training Strategies and Policies in the SFYP

The government policies and goals are to increase substantially the proportion of post-primary
students enrolling in VTE. The equity effect of this expansion is dependent on three inter-
connected questions: (a) the extent the clientele of the programs is the disadvantaged and poor
segments of the population, (b) how effective the programs are in imparting sellable skills, and
(c) whether there is an impact of the training programs on increasing employment
opportunities and raising income of the poor.
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The impact of public sector VTE on poverty alleviation is undermined in two ways. It mainly
serves the urban young males who have completed at least the eighth grade. The rural poor,
who do not survive progression to grade 9, are mostly ruled out. The failure to diversify its
clientele and to make the programs more flexible, adaptable and responsive to market needs
and geared to the informal economy suggests that the VTE is failing to help the poor improve
their employment and income opportunities.

To address these concerns the Government has established the National Skill Development
Council (NSDC) as the apex body for policy formulation on skill development with
representation from the government, employers, workers and civil society. A draft of a
national skill development policy has been prepared in 2009 under the auspices of the Council.
This policy attempts to address the issues raised above and proposes to strengthen the
Bangladesh Technical Education Board as a quality assurance mechanism. The new Skill
Development Council will also consider the following strategic approaches during the sixth
plan:
• Re-thinking the role of public sector skill training in developing a strategy to expand and
modernize VTE to meet market demands and extend greater benefits to the poor
• Ensure equal opportunity for boys and girls in vocational education
• Improving the link between training and job markets.
• Improving the positive effect on poverty reduction by targeting new clientele.
• Improving efficiency and quality of programs.
• Strengthening of the directorate of sports, so that it can effectively contribute to the
development of sports and physical training all over the country.
• Compulsory introduction of physical education up to class VIII. Physical education
teachers in primary and junior schools will be given special training through physical
colleges and other classified training centers.
• Establishing sports schools and sports colleges.
• Strengthening BKSP with a view to convert it into a full fledged sports university. Sports
curriculum in SSC and HSC. Regional BKSP will be transformed into sports school at all
division.
• Eleven youth training centers will be established at 11 districts for skill development
training.
• National sports complex at Mowa, near Dhaka and national football academy will be
established during the plan period.
• Youth exchange program will be strengthened.
• Establishing women sports complex in remaining divisions.
The Sixth Plan aims at increasing numbers of skilled workers including those in information
technology at different levels of skills to meet growing demands both in the domestic and
international markets. Key strategies include:
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• In all institutions including Madrasas, prevocational and IT education will be introduced in
grades 6 to 8.
• Equivalencies will be established between formal vocational education after grade 8 and
four grades of national skill standards. Tertiary technical education will be open to
vocational graduates from formal courses as well o those who achieve required skill
standards.
• Apprenticeship programs will be encouraged and the 1962 Act for this purpose will be
updated.
• Teacher training will be improved and teachers will have attachment in industries as part
of training. A Technical Education Teacher Recruitment and Development Commission
has been proposed.
• A vocational training institution will be established in each upazila. The range of courses
offered in secondary and technical institutions will be expanded.
• All vocational technical education and training institutions will be brought under the
jurisdiction of the Directorate of Technical Education. Consideration may be given to
transforming the Directorate into an autonomous IT, Technical and Vocation Education
Council.
• Public-private partnership will be encouraged in establishing and managing new
institutions. Non-government institutions will be supported with MPO funds and grants for
equipment.
• Part-time courses and use of facilities in second shifts will be encouraged.
• To reintegrate transsexuals through education, livelihood oriented vocational education
and accommodation

The policy recommendations regarding equivalency and apprenticeship, if implemented, will

promote flexibility in the system through establishing equivalencies between formal courses
and skill standards and by encouraging apprenticeship. Major efforts and investments in pre-
vocational education is proposed, but international experience in this respect signal caution,
because such investments within formal general education have generally not paid off. These
ideas need careful consideration before these are formulated into operational plans for
implementation.

SPORTS

Sports is considered as one of the crucial prerequisits for development of discipline, physical
and mental health and moral character of individuals. It also helps to enhance sense of
participation, self confidence and patriotism of citizerns.

Objectives under the SFYP

With the spirit of human resource development the objectives of the sports sub-sector during
the Sixth plan are:
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• To create physical facilities in sports at union and thana levels;
• To complete all on-going works of stadia and sports complexes at the divisional and
districts levels;
• To encourage wider participation of women in sports activities;
• To provide adequate coaching and training facilities ;
• To popularize indigenous and less costly games in rural areas;
• To encourage different sporting activities among children in educational institutes;
• To encourage production of adequate sports equipment in the country;
• To emphasize sporting activities integral parts of educational curricula at all levels;
• To strengthen and modernize physical education facilities in the educational institutions;
• To support private sector’s participation in promotion of sports and physical education.

Strategies under the SFYP

• Measures will be taken up for development of some selected indigenous and less costly
games for wider participation rural areas;
• Strategies will be taken to encourage and ensure participation of women in all types of
sports and games;
• More women sports centres in all divisional towns will be constructed to facilitate their
participation;
• Steps will be taken to repair, renovate and expand existing facilities;
• Different national sports federations will be regularly hold national, zonal and regional
competitions; private organisations will be encouraged for the purpose;
• Sports talents both male and female, from the younger groups will be identified and
intensive training will be provided to them;
• Development of sports facilities at union and thana levels by developing at least one
complex at every thana centres will be undertaken;
• Coaching programs will be organised through Bangladesh Krira Shikkha Protisthan to
train players of national teams;
• Existing colleges of physical education will be strengthened and more colleges of physical
education will be established;
• Participation in games and sports and attainment of a set standard in at least one
recognised athletics or games will be required in all educational institutions at all levels;
• Local government bodies will be involved in sports activities to complement the national
efforts.

CULTURE

The provision in the Constitution of Bangladesh in respect of cultural development is as

follows:

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Article 15: It shall be a fundamental responsibility of the State to attain, through planned
economic growth, a constant increase of productive forces and a steady improvement in the
material and cultural standard of living of the people.

Article 23: The State shall adopt measures to conserve the cultural tradition and heritage of the
people and so to foster and improve the national language, literature and the arts that all
sections of the people are afforded the opportunity to contribute towards and participate in the
enrichment of the national culture.

Article 24: The state shall adopt measures for the protection against disfigurement, damage or
removal of all monuments objects or places of special artistic or historic importance or
interest.

The history, civilization, national character and identity of a nation are reflected through its
culture. In line with the course of cultural progress in the world context, Ministry of Cultural
Affairs is making relentless effort to develop, preserve, promote and extend the culture of
Bangladesh through its different organizations.

Bangladesh Shilpakala Academy is engaged for preserving, developing, promoting and

encouraging national culture through fine arts, drama, music etc. Bangla Academy, Public
Library and National Book Center, National Archives and National Library are responsible for
education, research, publishing books & journals and give support to all categories of readers.
Folk Art and Crafts Foundation has been working for preservation and development of folk art
and crafts. National Museum preserves and exhibits the cultural heritage of Bangladesh. The
Copyright Office is to protect creative intellectual property rights from piracy. Department of
Archaeology preserves historical sites and exhibits the antiques. In addition, there are seven
tribal cultural centers. These Centers are also playing vital role in order to promote tribal
cultural activities.

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Review of Past Plans

During First Five Year Plan to Fifth Five Year Plan the importance of cultural development
was recognized. Schemes were drawn up for development of Bengali language and literature.
Board for Development of Bengali was amalgamated into the Bangla Academy and the
Shilpakala Academy and the National Museum were set up. During the Second and third five
year Plan periods, some infrastructural facilities were created for qualitative and quantitative
expansion of cultural activities. The fifth five year plan also promoted a healthy growth of
cultural activities throughout the country and a number of projects and programmes were
taken at that time.

Goals & Objectives under the SFYP

The Government of Bangladesh has declared 4 following agendas with a view to

promoting cultural sector.
• The State will provide necessary assistance for preservation of the secular and democratic
tradition of Bengali culture as well as further improvement of Bengali language and
literature, music, arts and all branches of creative works and fine arts.
• Creation of social awareness, scientific and liberal outlook will be emphasized with a view
to resisting communalism and narrow vested interest.
• Create opportunity to improve Bangla language as well as languages of the tribal
communities
• Due respect will be shown to the principle and values of all religion.
• The International Mother Language Institute Project has been reactivated.

Objectives: Cultural development sector during the Sixth Five Year Plan will aim to promote
healthy growth of cultural activities throughout the country. In addition to promotion of
literature and fine and performing arts, attention will be given to create and promote a culture
attuned towards work, perseverance, confidence and creativity. The major objectives in this
field are to:
• Develop Bengali language and literature and create facilities to develop Bengali as the
medium of instruction;
• Help and promote production and publication of quality books and make them available to
the masses at reasonable prices;
• undertake programs for implementation of the national book policy;
• carry out research on the lives and works of great men and women of our nation;
• flourish the perception of ‘Amar Ekushey’;
• establish and develop a library network system from the national to the rural level and
introduce modern technology to this end;
• promote and foster cultural activities and citizen participation throughout the country
reflecting values, hopes and aspirations of the people;

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• develop infrastructural facilities for fine and performing arts including drama and theatre
and explore private and voluntary involvement in this area;
• preserve and present national history, culture and heritage;
• review the existing laws on drama/theatre;
• cherish and cement national unity and consensus in a pluralistic democratic society;
• promote good citizenship through sensitization of rights, duties and responsibilities;
• preserve and promote arts and culture of tribal areas within the framework of national
unity.
• Protect copy rights of intellectual property.

Strategies under the SFYP

• Programs for development of Bengali language and literature and reference books for
higher education will be continued with greater emphasis;
• Programs will be undertaken for book development and development of reading habits;
• Nazrul institute will be involved with research on the life and works of our national poet
Kazi Nazrul Islam. A memorial library and research center will be established at Comilla
respectively;
• Research programs on lives and works of great people will be undertaken and memorial
libraries and institutions will be established in respective areas;
• Legislation for national and public libraries will be adopted and programs will be
undertaken to develop library network and services from national to the rural levels in
order to meet the education, recreational, cultural and information need of people at all
walks of life;
• National institutions like National Theatre, Nation al Art Gallery and National Music
Center will be strengthened and necessary physical and institutional facilities will be
created for their proper development;
• Physical facilities of the Bangladesh Shilpakala Academy will be expanded and developed
as per the master plan of the Academy for promotion of fine and performing arts from
national to Upazila level;
• Regional and tribal cultures will be promoted and preserved through various programs;
• Programmes for development of folk arts and crafts village and miniature Bangladesh at
Sonargaon will be undertaken;
• National survey on archeological sites will be carried out;
• Physical facilities for the department of archaeology will be developed;
• Historical monuments will be identified and preserved;
• Programmes for further development of Bangladesh National Museum and other museums
under it will be taken up;
• Legislation for the protection of the relics and mementos connected with the Liberation
Struggle of Bangladesh will be undertaken;

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• Amendment to the Antiquities Act will be undertaken to strengthen protection of
archaeological sites and historical monuments;
• Works of art of the Bengali painters will be procured and preserved for display in
important public buildings and missions abroad;
• Fine arts like music, painting, arts & crafts, recitation, acting, dancing, theatrical
performances would be introduced at primary & secondary level as per education policy;
• Private sector as well as the local government bodies will be encouraged to contribute their
resources and efforts for cultural development.

To preserve and develop our tangible and intangible cultural heritage needs involvement of
people at the grassroots level to ensure participatory planning. Many of the intangible cultural
heritages like language literatures, arts, performing arts, music and other areas are at the verge
of extinction. Careful attention needs to be given for their restoration, preservation and
digitization. Institutional establishment as well as human resources development for such
delicate works needs to be made carefully.

The Archeological sites are invaluable properties to our history. Most of the sites are yet to be
explored, preserved and restored. Due to shortage of skill, human resources, funds and
communities involvement it is greatly impaired. Proper perspective, short, medium and long-
term plan needs to be carried out. As per new education policy school curriculum included
subjects like art, music, dance theatre etc as an optional subject. Bangladesh Shilpakala
Academy should be equipped to produce a huge numbers of subject oriented texts and teachers
for matching with national needs.

RELIGIOUS AFFAIRS

Review of Past Policies, Strategies, Programs/Projects of the Sub-Sector

The major programs of the religious sub-sector of the Fifth Five Year Plan and the following
years relating to pre-primary education program were taken up with the aim of raising the
literacy rate, enrollment and reduction of the dropout rate. The mosque and temple based child
and mass literacy projects were taken up which showed significant success in increasing
enrolment and reducing dropout rate at pre-primary and primary level. Besides the trained
religious leaders are playing a vital role to build up awareness among the people on
reproductive health, early marriage, safe motherhood, dowry, family welfare, HIV/AIDS and
other socio-economic activities. In the meantime the trained Imams are assisting and working
for promoting religious values, universal brotherhood, good citizenship and establishing
communal harmony in the society. A total of nine projects were taken up for implementation
at a cost of Tk. 1585.88 million under the Fifth Five Year Plan. During the Plan period the
Mosque based child and mass literacy program was implemented where 6,11,520 learners
(children) were given education. Under the Imam training project 10,000 Imams and 795
officers and staff were trained. Besides 5000 mosque library were set up, 125 titles of books
published, 160 books reprinted, translation and compilation of 152 books and 10 volumes of
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encyclopedia of Prophet (sm) were published. Under the Involvement of Religious Leaders in
HRD program 15,313 religious leaders were trained up. The construction work of Islamic
Foundation Complex, Mujib Nagar Complex and Jamiatul Falah Masjid Complex were taken
up for implementation and completed timely.

Goals & Objectives under SFYP

Goals

• Moral & ethical values will be promoted and fostered among the people and some kind of
check and self restraint against corruption, dishonesty, terrorism, anti social activities and
other social values will be established in the society.

• People (men and women) will get literacy and consciousness on religious and ethical
values will be developed.

• Economic condition of poor people at union level will be up lifted and poverty will be
reduced through Zakat and Ushar collection and distribution locally.

Objectives
• To promote and establish religious values in the society for promoting good citizenry
knowledge society and providing check and self-restraints against corruption, terrorism,
anti social activities, dishonesty and malpractice;
• To establish a well organized pre-primary stream for the children with a view to increasing
enrolment and retention throughout the primary school cycle;
• To construct Islamic Foundation divisional and district office for effective management
and coordination of various development activities at district level;
• To impart training program and to give credit facilities to 50,000 women and religious
leaders in the remote area;
• To improve the monitoring and evaluation system of development activities being
implemented under the Islamic Foundation and Hindu, Buddhist & Christian Religious
Welfare Trust;
• To promote habit of savings and perseverance and other traits conforming tolerance and
communal peace and harmony;
• To provide grants to all communities to repair and renovate their places of worship like
mosques, churches, temples and pagodas;
• To create employment opportunity for the religious leaders & madrasa educated people;
• To preach and propagate Islamic dawah philosophy, enhancement moral and ethical
education;

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• To establish 20000 new libraries in religious institutions throughout the country;
• To run English, Arabic and other suitable language training courses and vocational training
courses for madrasa educated people for creating employment opportunity.

Targets under the SFYP

• To provide literacy and religious education to 145500 rural women.
• To provide literacy and religious education to 9,00,000 adult people.
• To establish 40,000 new mosque libraries throughout the country.
• To run English, Arabic & other suitable language training courses and vocational training
courses for all religion.
• To construct a 100 bedded modern hospital and provided Medicare facilities to the helpless
people.

• The rate of zakat and ushar collection will be increased through involvement of Imam &
muezzins and distribute it to the poor people.
• To establish 200000 pre-primary schools/centers for age group (4-5 years) at religious
institutions within 2021.
• To impart training program and to give credit facilities to 60000 men and women in the
remote areas.
• To publish 300 classics in English and other foreign languages from Bangla version.
• District & Islamic mission offices will be established with required physical infrastructure
facilities.
• Establishment of 31 Islamic Mission hospital with required physical infrastructural
facilities and provided Medicare facilities to the people of remote area.
• Near about 15000 Imams/muezzins/Shebaits, Purahit, Priest and vikkhu/heads of pagoda
will be involved in food processing packaging selling and any self-employment program
through a developed marketing network.
• Near about 2,50,000 Imams & Muazzins/Shebaits, Purahit, Priest and Vikkhu will be
engaged in plantation program.
• 10,00,000.00 saplings will be planted in the mosque area and in other places.
• Islamic Foundation activities will be computerized and a digital archive will be
established.
• About 1,500 officers and staffs will be trained in ICT and about 10,000 religious leaders
will be trained in disaster and climate management.
• Establishment of Information Centers at Divisional level.
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• Secondary school based ethical education to counter terrorism and antisocial activities.

Current and Future Challenges

Ministry of Religious Affairs wants to develop of Hajj management by involving the Hajj
agencies as development partner in the development process of Hajj management. This
ministry will take necessary steps to strengthen waqf administration for smooth management
and functioning of the waqf office. Ministry of Religious Affairs is responsible for assisting
centers ( mosques, churches, temples, pagodas and related academies and institutes ) in
undertaking research and promoting religious values, universal brotherhood and good
citizenship. Islamic foundation is the agency under the ministry which looks after
implementation of the programs, relating to setting up mosque libraries, conducting religious
institution based pre-primary and mass education and promoting studies/research in Islamic
history, Islamic dawah philosophy and basic Islamic ideals. One of the responsibilities of the
Islamic Foundation and HRWT and BRWT is to involve Imams/religious leaders in
population development and family welfare and other socio-economic activities through
proper training at the Imam Training Academy and district offices. A publicly supported trust
serves to meet the religious needs of the Hindu, Buddhist and Christian communities.

Religious leaders of different religions are trained aiming to the development of human
resources. Basic pre-primary and non-formal education has also been provided to the children
up to age group 4-5 under the activities of Mosque and temple based program under the
Ministry of Religious Affairs. Ministry of Religious Affairs has been working for the
empowerment of religious leaders, madrasa educated people, religious minded women and to
ensure improvement of the moral and ethical values of the people. To preach and propagate
Islamic philosophy, enhancement moral and ethical education and measures will be taken
against anti social activities, corruption and terrorism at national and international arena.

The Religious sub-sector of the Sixth Five Year Plans have been initiated phase wise
involving people at the grass root level to ensure participatory planning. It will obviously take
some time to determine the specific objectives, strategies and resources for implementing this
future plan. Many of the programs and projects in the aria of human development, pre-primary
education, poverty reduction, women empowerment and family welfare, employment
opportunity and in other sectors will take us well and to achieve accelerated growth of the
economy. So, these are generally the issues that the future plans will really have to be
addressed. It is, therefore, visualized that the programs and projects of religious sub sector
included in SFYP would be in conformity with the basic objectives and strategies of the
country's future plan.

Strategies under the SFYP

• Existing Imam Training Academy will be functionally strengthened and reorganized and
10 more centers will be established including one in Gopalgonj district.

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• Mosques, temples, churches and pagodas will be encouraged to take up literacy and family
planning drives and hold discourses aimed at raising social consciousness;
• Waqf and trust properties will be managed more effectively for increasing their welfare
activities;
• The highest emphasis will be on pre-primary education; to bring all villages and mahallas
under the cover of compulsory, uniform and free pre-primary child education;
• Massive and continuous training of teachers at pre-primary level and Maktab teachers
within the country will be undertaken;
• Local government bodies will be increasingly involved in management of pre-primary
(child education) centers;
• Education extension and management training for teachers and educational administration
will be organized on strong footing;
• There will be a multi-directional approach to combat illiteracy. Child education will be
expanded along with strengthening the government mass literacy centers;

• Monitoring, inspection and evaluation will be strengthened for ensuring quality.

ALLOCATION OF DEVELOPMENT RESOURCES IN THE SIXTH PLAN

The government aims at achieving universal primary education; eliminating illiteracy;

ensuring gender equity in all spheres of society; and an overall improvement of quality and
equity in education. In the sectors of religion promoting and fostering moral & ethical values
in the society will be given prime importance. Bengali literature will be given greater
emphasis in the sphere of culture. In the context of sports, emphasis has to be given for
enhancing sense of participation, self confidence and patriotism of citizens. With a view to
achieving the targets mentioned in the SFYP the planned development resource allocations in
current and constant prices are shown in Table 7.3 and 7.4.

Table 7.3: Allocation of Development Resources for Education, Religious Affairs, Sports
and Culture, and Labor and Manpower in the Sixth Plan
(crore taka; current price)
Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015
Ministry of Primary & Mass 3207 4034 4913 6203 7601
Education
Ministry of Education 1686 2330 2763 3489 4275
Total Education 4893 6365 7676 9692 11876
Ministry of Labor & Employment 33 71 83 102 122
Ministry of Expatriates ‘Welfare 85 89 93 112 130
& Overseas Employment
Total Labor & Manpower 118 159 177 215 251

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Ministry of Cultural Affairs 128 141 167 205 243
Ministry of Religious Affairs 137 195 359 418 476
Ministry of Youth & Sports 268 298 338 396 450
Total 5544 7158 8717 10925 13297

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 Table 7.4: Allocation of Development Expenditure for Education, Religious Affairs,
Sports and Culture, and Labor and Manpower in the Sixth Plan
(crore taka; FY 2011 price)

Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015

Ministry of Primary & Mass 3207 3753 4271 5063 5853
Education
Ministry of Education 1686 2168 2402 2848 3293
Total Education 4893 5921 6673 7912 9146
Ministry of Labor & Employment 33 66 73 84 94
Ministry of Expatriates’ Welfare 85 83 81 92 100
& Overseas Employment
Total Labor & Manpower 118 148 154 175 194
Ministry of Cultural Affairs 128 131 145 167 187
Ministry of Religious Affairs 137 182 312 342 367
Ministry of Youth & Sports 268 277 294 323 347
Total 5544 6659 7578 8918 10240

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 CHAPTER 8: HEALTH, POPULATION AND
NUTRITION SECTOR DEVELOPMENT
PROGRAMS

PAST PROGRESS AND CHALLENGES IN THE HPN SECTOR

Health is now universally regarded as an important index of human development. Poor health
is both the cause and effect of poverty, illiteracy and ignorance. Policies of human
development not only raise the income level of the people but also improve other components
of their standard of living, such as life expectancy, health, literacy, knowledge and control
over their destiny. Health is both a major pathway to human development as well as an end
product of it. Health and development converge and contribute to each other.

Alma Ata conference in 1978 heralded the vision of a new and better future for all of the
human family: Better health is one of the prime objectives of development. The
interrelationship between health and general economic development is complex and poorly
understood. The social components of a better quality of life are benefits in themselves, but
more importantly, they can be used as instruments of change or as means of increasing
productivity. Better health is both an objective of and an instrument for development. Poverty
leads to hunger and malnutrition and resultant diseases – low birth – weight (LBW) babies’,
malnourished adolescents and malnourished mothers.

The ultimate focus of economic development is human development. The ultimate concern is
what people are capable of doing or being. Human fulfillment is about whether people live or
die, whether people eat well, are malnourished or starve, whether women lead healthy and
tolerable lives or are burdened with annual child bearing, a high risk of maternal mortality;
whether people have easy access to modern medicare. These are all aspects of standard of
living. But in spite of sustained efforts to reduce poverty and high rates of morbidity and
mortality and to improve nutritional status, a great deal remains to be done, especially for the
poor in general, and women and children in particular.

The goal of the health, population and nutrition (HPN) sector is to achieve sustainable
improvement in the health, nutrition, and reproductive health, including family planning, for
the people, particularly of vulnerable groups, including women, children, the elderly, and the
poor.

The HPN sector emphasizes reducing severe malnutrition, high mortality, and fertility,
promoting healthy life styles, and reducing risk factors to human health from environmental,
economic, social and behavioral causes with a sharp focus on improving the health of the poor.
More specifically, with regard to MDG/PRSP in the health sector, the main emphasis is on the
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human dimension of poverty, i.e. deprivation in health, deprivation in nutrition including
water and sanitation, as well as related gender gaps. The major MDG/PRSP targets include the
following: (i) reducing infant and under-five mortality by 65% and eliminate gender disparity
in child mortality; (ii) reducing the proportion of malnourished children by 50% and eliminate
gender disparity in child malnutrition; (iii) reducing MMR by 75% and ensure availability of
reproductive health services to all; and (iv) reducing the burden of TB and other diseases.

Past Progress

Bangladesh has been implementing Sector-Wide Approach (SWAp) in HNP sector since 1998
and currently implementing health, nutrition and population sector program (HNPSP) for
2003-2011, being the second SWAp ,while the first one was health and population sector
program (HPSP) for 1998-2003. Since Bangladesh was the first country in the world to
implement SWAp, much of the learning was by doing. The major policy shift in development
from project approach to program approach (SWAp) suffered from the problems like weak
coordination, inadequate capacity and conflict with existing systems. Persistent procurement
problems lowered the timeliness and efficiency of spending. Inadequate understanding of the
procedures coupled with frequent change of key personnel in the program implementation
constrained and the long time required settling the audit objections reduced program
implementation. Changes in the policy level, delay and complicated fund release system,
World Bank lengthy and complicated procurement process and poor retention of trained
personnel contributed in this respect. Effective outputs in HPN sector depends upon inter and
intra-subsector coordination among health, population and nutrition. Unfortunately not much
progress could be achieved in inter sub-sectors coordination resulting duplication, wastage and
missed opportunities. Similarly coordination and collaboration could not be effectively
established and operationalized between HPN and other sectors, which affect HPN sector.

Despite these shortcomings some important results in terms of improved health outcomes were
achieved, as evidenced by the findings of successive Bangladesh Demographic and Health
Surveys:

• Total fertility rate declined to 2.7 in 2007 from 3.3 in 1996-1997.

• Percentage of children underweight for age declined to 41 in 2007 from 56.3 in 1996-
1997.
• Percentage of children underweight for height declined from 17.7 in 1996-1997 to 17.4 in
2007.
• Percentage of children short for age was 54.6 in 1996-1997, which has reduced to 43.2 in
2007.
• Under-five mortality rate per 1000 live births declined to 65 in2007 from 116 in 1996-
1997.
• Infant mortality rate per 1000 live births declined to 52 in 2007 from 82 in 1996-1997.
• Percentage of children’s vaccination has improved to 81.9 in 2007 from 54.1 in 1996-
1997.
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• Percentage of ante-natal check –ups by the trained providers has improved from 29 in
1996-1997 to 51.7 in 2007.
• Percentage of delivery by trained person also increased from 8 in 1996-1997 to 18 in 2007.

Nevertheless, the achievement of universal health coverage, the removal of rural-urban, rich-
poor and other form of inequities and the provision of essential services for vast majority of
the population continue to remain as major challenges for the health sector. More specifically,
issues such as poverty related infectious diseases, mothers suffering from nutritional
deficiency, children suffering from malnutrition, pregnant women not receiving delivery
assistance by trained providers, poor maternal and child health, unmet need for family
planning and the rise in STD infections constitute major challenges.

The lessons of experience suggest three major areas of weakness that needs to be corrected.

Weak implementation of the HNPSP initiative

The Government’s flagship HNPSP initiative suffered from a number of problems that limited
to effectiveness of the program. These include:

• Although HNPSP has been able to mobilize sufficient amount of resources, overall public
spending on health has remained low. In FY 11 the activities under HNPSP suffered due to
sudden withdraw of fund by DP’s.
• HNPSP did have pro-poor essential service package (ESP) but lacked an effective M&E
system to monitor health-related inequalities.
• Public resource allocation is based on historical norms for facilities, number of beds and
staffing, rather than on indicators of individual and household health needs, taking into
account the extent of poverty.
• While the ESP was directed towards rural areas by the MoHFW as the bulk of poverty is
found there, this left major gap in primary health care coverage of urban areas by the
MoLGRD, MOHFW was failed to cover urban primary health care under HNPSP. Urban
poverty and health status remain as major concerns.
• Attempts at institutional unification and coordination under HNPSP did not work and
contributed towards loss of momentum in family planning and fertility reduction.
Deficiency in the approach of permanent and semi permanent method of family planning,
high dropout rate of temporary methods also contributed in this respect.
• HNPSP could not able to alter substantially the structure of improved gender equity in
health sector plans and programs. But implementation of policies and plans was limited
due to weak institutional mechanism and lack of resources.
• Whilst HNPSP was formulated and initially planned using extensive consultative
processes, it did not involve users and other key stakeholders fully in program
implementation.
• Whilst HPSP/ HNPSP introduced some important budget reforms, the revenue and
development budgets were planned and managed separately.
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• HPSP/ HNPSP did not go beyond the bounds of the MOHFW to help shape policies in
other sectors that produce health gains.
• Although decentralization was an important feature in HPSP, in reality centralized
procurement of logistics for all programs in DGHS and DGFP by CMSD of DGHS and
Logistics & Management Unit of DGFP resulted in delays in providing supplies and
logistics. This kept the newly constructed hospitals from functioning send ultimately
resulted in the low utilization of Project Aid.

Inadequate attention to gender dimension in health and nutrition.

Findings from various studies indicate that women and girl children are more vulnerable to
death and disease compared to their male counterparts. Reproductive health is a state of
complete physical, mental and social well-being and not merely the absence of disease or
infirmity in all matters relating to the reproductive system and its functions and processes.
Reproductive health therefore implies that (a) people have the ability to reproduce as well as to
regulate their fertility; (b) women are able to go through pregnancy and child-birth safely; (c)
the outcome of pregnancy is successful in terms of maternal and infant survival and well-being
and (d) couples should be able to have sexual relationships free of the fear of unwanted
pregnancy and of contacting diseases.

While reproductive health programs should also address the needs, roles and responsibilities of
men and young persons, the real thrust of reproductive health strategies and programs must
ensure that women are able to fulfill their reproductive roles safely because, to a great extent,
the burden of reproductive ill health is borne by women:

There is no denying the fact that the rights of men and women to be informed of and to have
access to safe, effective, affordable and acceptable methods of family planning of their choice,
and the right of access to appropriate health care services that will enable women to go safely
through pregnancy and child birth and provide couples with the best chance of having a
healthy infant.

The reproductive health status of Bangladesh women is very poor, poorer than that found in
many developing countries in South Asia. However many deaths associated with pregnancy
and childbirth can be avoided. In this context, safe motherhood requires action on three fronts
simultaneously: (a) reducing the numbers of high-risk and unwanted pregnancies, (b) reducing
the numbers of obstetric complications, and (c) reducing fatality rates in women with
complications.

Inadequate attention to the link between poverty and health

At the preventive level the poor have inadequate ability to acquire a nutritious diet, better
living and working conditions and other attendant factors that would prevent ill-health. The
result is endemic occurrence of communicable diseases and diseases related to deficient
nutrition. At the same time, health care services available to the poor in terms of physical
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accessibility, monetary cost and effectiveness are minimal. Gender bias in nutrition and health
care in childhood, early marriage and conception, lack of voluntary check on the family size
and poor state of pre-natal and maternal health care services only intensify women's health
problems.

Further, women's poor health status through various intervening variables affects their
reproductive choice. Poor health leads, for example, to a high incidence of wasted pregnancies
and secondary infertility. This is an important reason why women do not want to voluntarily
limit their family size. Also, poor living conditions and other factors increase infant mortality
rate (IMR), and wherever IMR is high, couples are reluctant to limit their family size. Poverty
also leads to the belief that more mouths to feed also mean twice the number of hands to work.
Thus, children are considered as economic assets and the greater the number of children
greater the sense of security. Environmental degradation makes fuel wood gathering, livestock
pasturing and water fetching more difficult. As these are tasks that children can do the value of
children increases for parents. And these links are strongest where female fertility is already
high. Poverty also indirectly denies access to contraceptive knowledge and methods to an
impoverished woman even if she is inclined to limit her family.

Health, Population & Nutrition Sector Development Programs

The Government of Bangladesh (GOB) seeks to create conditions whereby its people have the
opportunity to reach and maintain the highest attainable level of health as a fundamental
human right and social justice. GOB has targeted to achieve MDG 4, 5, 6 and part of the MDG
1 and 8 and also part of the vision 2021 through the next health sector program. The HPNSDP
is targeted towards this goal and sets out the sector’s strategic priorities and explains how
these will be addressed to a certain extent, taking into account the strengths, lessons learned
and challenges of implementing the last two sector programs, the HPSP and the current
HNPSP.

The key components of the HPNSDP are: (i) Improving Health Services and (ii) Strengthening
Health Systems. The component one comprises of (a) improving health services and (b)
improving service provisions. These two components are interdependent and mutually
reinforcing. Responsibilities for improving and providing health services are shared among the
Directorate General of Health Services (DGHS), the Directorate General of Family Planning
(DGFP) and the Directorate of Nursing Services (DNS). Other Directorates like the
Directorate General of Drug Administration (DGDA), Health Engineering Department (HED),
National Institute of Preventive and Social Medicine (NIPSOM), Institute of Epidemiology,
Disease Control and Research (IEDCR), Institute of Public Health and Nutrition (IPHN),
Institute of Public Health (IPH), National Institute of Population Research and Training
(NIPORT) and other relevant institutes share the responsibility of strengthening health
systems.

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Total Health Expenditure

In the Bangladesh National Health Accounts III, Total Health Expenditure is estimated at Taka
160.9 billion ($2,331 million) in 2007, Taka 74.2 billion ($1,375 million) in 2001, and Taka
48.7 million ($1,140 million) in 1997. In real terms, THE has continuously increased during
1997 to 2007, from Taka 74.4 billion in 1997 to Taka 160.9 billion in 2007, when measured in
constant 2007 prices. Over the 1998–2007 periods the average annual total health expenditure
growth rate was 12.7% in nominal terms and 8.1% in real terms.

The ratio of Bangladesh’s health expenditure to Gross Domestic Product (GDP) provides an
indication of the proportion of overall economic activity contributed by the health sector. Total
health expenditure as a percent of GDP was 3.4% in 2007. Health expenditures as a ratio to
GDP show a slow but steady increase over time– averaging 2.8% during 1998–2002 compared
to an average of 3.2% during 2003–2007. In 2007, per capita spending on health was Taka
1,118 ($16.2), which if adjusted for Purchasing Power Parity (PPP), becomes Taka 3,178
($46).

International Comparison

Within South Asia, Sri Lanka had the highest per capita expenditure on health in 2006 – $57.
Using the international comparable SHA definitions of total health expenditure, expenditure
per capita in Bangladesh in 2007 was $16 (SHA estimate). In 2006, Bangladesh had the lowest
per capita expenditure at $14.4, followed by Nepal ($17). Total health expenditure as share of
GDP constituted 3.3% for Bangladesh in 2006, whilst Pakistan had the lowest share at 2.6%.
Public health expenditure as percentage of total health expenditure is highest in Sri Lank
(51%), whilst Bangladesh’s and India’s public expenditure ratios are similar, accounting for
about one fourth of total health expenditure.

Table 8.1: International Comparison of Health spending in Bangladesh, 2006

Country Per Capita Health Total Health Public Exp as Public Exp as %
Expenditure ($) Expenditure as % of % of total health of GDP
GDP expenditure
Bangladesh 14 3.3 27 0.9
India 29 3.6 25 0.9
Nepal 17 5.1 30 1.6
Pakistan 19 2.6 32 0.8
Sri Lanka 57 4.2 49 2.1
Source: Bangladesh National Health Accounts (BNHA III), 2010, Ministry of Health and Family Welfare

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Challenges in the HPN Sector

• There are major differences in health conditions and health care consumption between
different groups. Improvements in some areas are relatively more difficult to sustain while
there are indications of stagnation in others.
• In order to reduce maternal mortality and neonatal mortality, Bangladesh's current
challenge is to improve effective service delivery, to improve health sector governance
(especially in primary and maternal health services), to increase the number of trained birth
attendants and to make them available at the community level.
• Further sharp reduction in fertility supply of contraceptives especially to reduce unmet
need, dropout rate, to overcome regional variation in contraceptive use, might demand new
ways of interventions for which conceited inter and multisectoral efforts would be
required.
• It is important to address "Population momentum effect", early child bearing and
adolescent health.

• It is a challenge to reduce child mortality and to address district and regional variations.

• Popularize community clinic approach as a one stop community level information and
service delivery point.

• Threats of HIV/AIDS, particularly from injectable drug users, pockets of malaria, kal-azar
and filaria and multi-drug resistant TB are also emerging as challenges.

• Challenges remain in the context of decentralization, maintenance of electro-medical

equipments, proper resource mobilization, and proper translation of HR strategy. Emerging
and changing pattern of threats include arsenic related diseases, avian flu, childhood
disabilities, mental health problems, road-railway-river accidents and violence (particularly
against women).

• The challenge of reducing malnutrition essentially that of women and children needs
coordinated multi-sectoral interventions on sustained basis.

• Meeting the health needs of the fast growing urban poor including the slum dwellers will
continue to pose major challenge.

• Demographic and life-style changes give rise to emerging health threats: more youths,
more females, more ageing population, and rise of non-communicable diseases. The
inevitable effect of climate change over health poses additional challenges.

• With increasing dominance of technologies in health care, the requirement of human

resources in health in appropriate number, skill-mix and make them available at the right
place, will continue to remain another challenge.
350
• There is a challenge of coordinated activities across the different wings/different
directorate of MoHFW to make the newly constructed or upgraded physical facilities fully
functional.

• The development of appropriate strategies to handle the large number of informal semi or
un-qualified health care providers (village doctors, drug sellers, kobiraj, totka, herbalist,
faith healers, untrained traditional birth attendants etc.) catering to the needs of majority of
the population particularly of poor and women poses some challenge.

• Centralized management system of the government health services and prevalent practices
at the facility levels result in absenteeism of service providers. These are emerging as mal'
or obstacles to effective and efficient utilization of the countrywide health care
infrastructure network.
• Preparation of HR master plan including career plan incentive mechanism and deployment
strategy seems to be difficult to address the absenteeism.

• Increase health expenditure and public sector (including Development Partners)

contribution to health expenditure. This will require appropriate policy to mobilize
resource and utilize local resources (such as user fees, community insurance etc.)

GOALS, OBJECTIVES AND TARGETS FOR HPN IN THE SFYP

The HPN and Millennium Development Goals

Within the broader context of Millennium Development Goals (MDG), the Government’s
vision for HPN sector is as follows:

The Government seeks to create conditions whereby the people of Bangladesh have the
opportunity to reach and maintain the highest attainable level of health. It is a vision that
recognizes health as a fundamental human right and, therefore, the need to promote health and
to alleviate ill health and suffering in the spirit of social justice. This vision derives from a
value framework that is based on the core values of access, equity, gender equality and ethical
conduct.

By 2021, Govt. of Bangladesh (GoB) envisions a Bangladesh of middle income country,

where poverty will be drastically reduced; citizens will be able to meet every basic need and
development will be on fast truck, with ever increasing rates of growth. Within this broad
context, the vision for health sector is to create conditions whereby the people of Bangladesh
have the opportunity to reach and maintain the highest attainable level of health. This vision
also derives from the framework of Vision 2021, which is based on the core values of access
equity, gender equity and ethical conduct.

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Milestones for Vision 2021

To achieve the goals of vision 2021, the Government has set the following milestones:

• 2011: Supply of pure drinking water for the entire population.

• 2012: Self-sufficiency in food.

• 2013: Each house brought under hygienic sanitation.

• 2021: Poverty rate comes down to 15%.

• 2021: 85% of the population have standard nutritional food.

• 2021: Poor people ensured a minimum of 2122 kilo calories of food.

• 2021: All kinds of contagious diseases eliminated.

• 2021: Longevity increases to 70 years.

• 2021: Infant mortality comes down to 15 from 54 per thousand at present

• 2021: Maternal death rate reduced to 1.5% from 3.8%.

• 2021: Use of birth control methods increased to 80%.

The HPN sector emphasizes reducing severe malnutrition, high mortality (of children and
women) and fertility, promoting healthy life styles, and reducing risk factors to human health
from environmental, economic, social and behavioral causes with a sharp focus on improving
the health of the poor. The main emphasis is on the human dimension of poverty, i.e.
deprivation in health, deprivation in nutrition including water and sanitation, as well as related
gender gaps.

Major Objectives

• To ensure access and utilization of HPN services for every citizen of the country,
particularly elderly, women, children, poor, disadvantaged and those living in difficult
areas
• To revitalize of community health care under an effective and integrated Upazila Health
system with essential service package
• To reduce maternal mortality
• To reduce the rate of child mortality
• To control HIV/AIDS, TB, Leprosy, Malaria
• To reduce total fertility rate
• To ensure adolescent and reproductive health care

352
• To decentralize and to strengthen local level planning to obtain better results in
implementation of programs
• To bring self-sufficiency in the production of medicines of international standard and to
promote their export
• To ensure nutrition to children and women.
• To take effective measures to promote alternate medicines and to improve the quality of
care
• To control/eliminate infectious diseases
• To meet challenges of emerging, re-emerging and non-communicable diseases, health
hazards due to climate change and emergency response to catastrophe.
• To enhance national capacity for pre-service education (SBA/nursing, Paramedics,
midwifery), provide in-service training and better management of Human Resources.
• To improve the quality hospitals and maternity services and to make these accessible
especially to the women, children and poor.

Specific HPN Targets for the Sixth Plan

The HPN targets for the SFYP are listed in Table 8.2.
Table 8.2: HPN Targets for the Sixth Plan
SI Indicators Base value with Year 2014-15
Impact/Outcome
1 Life- Expectancy 66.6 (SVRS 2007 ) 70

2 Population Growth Rate 1.40 (SVRS 2007) 1.3

194 (BM MS 2010) 143

3 Maternal Mortality Ratio (MMR) (per 100,000 live births)
37 (BDHS 2007 ) 27
4 Neonatal Mortality Rate (per 1000 live births)
52 (BDHS 2007) 31
5 Infant Mortality Rate (per 1000 live births)
65 (BDHS 2007 ) 50
6 Under 5 Mortality Rate (per 1000 live births)
4.4 2.2
7 Malaria mortality-(per 100000 population)

8 Maintain low prevalence of HIV <1% <1%

2.90% 1%
9 Prevalence of Night blindness among pregnant women

10 Underweight of Under 5 children (6-59 months) 41% (BDHS 2007) 33%

11 Stunting of Under- 5 children 16-59 months) 43% (BDHS 2007) 25%

2.7 (BDHS 2007) 2.2

12 Total Fertility Rate (TFR)
Output
13 Contraceptive Prevalence Rate (CPR) 55.8% (BDHS 2007) 74%

14 Modern Method of Contraceptives 47.5 (BDHS 2007) 63%

15 Discontinuation rate of FP methods 56.5% (BDHS 2007) 20%

16 Unmet need for Family Planning 17.1% (BDHS 2007) 7.60%

17 Contraceptives use rate of married adolescent 37.6% (BDHS 2007) 50%

18 Permanent & Long acting FP (of CPR) 7.3% (BDHS 2007) 20%

19 TB case detection rate 73% (NTP 2008) 75%

20 TB cure rate from 92% (NTP 2008) 95%

21 Provide effective malaria prevention to 100% population at risk 5 districts 5 districts

22 Proportion of h/h own at least 1 Insecticide Treated Net (ITN) 64% 80%

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 SI Indicators Base value with Year 2014-15
Impact/Outcome
23 Under 5 children sleep under (ITN) 70% 80%
50%
24 Births attended by skilled health personnel 26.5% (UESD 2010)

25 Facility level delivery 15% (BDHS 2007) 40%

26 ANC coverage (4 visits) 20.6% (BDHS 2007) 50%

27 PNC coverage (Mother) 21.3% ( BDHS 2007) 50%

28 PNC coverage (children) 21.9% ( BDHS 2007) 50%

29 Met need for EOC services 22.43% (BDHS 2007) 80%

30 TT coverage (children protected at birth from Tetanus) 93% (CES, 2008) 95%

31 Valid coverage of full Immunized children 75.2% (CES, 2008) 90%

32 Immunization of 1- year old children against Measles 83% (CES, 2008) 100%

33 VAC coverage (6 m-6 y) 98%- 100% 98%- 100%

34 Postnatal VAC supplementation 29% 80%

35 Severe anemia (Children) 64% 50%
36 Severe anemia (Pregnant women) 46% 40%

37 Exclusive breast feeding of children (less than 6 months) 42% 80%

Source: BDHS (2007) Bangladesh Demographic and Health Survey, National Institute of Population Research and Training, NIPORT, 2007; BMMS (2010)
Bangladesh Maternal Mortality Survey, National Institute of Population Research and Training, NIPORT CES (2006) EPI Coverage Evaluation Survey,
Directorate General of Health Services, Ministry of Health and Family Welfare, 2006 ; National Tuberculosis Control Program -NTCP (2007): Tuberculosis
Program in Bangladesh, Annual Report, 2007 SVRS (2007) Sample Vital Registration Survey, Bangladesh Bureau of Statistics (BBS), Ministry of Planning

Health, Population & Nutrition Sector Development Programs

To achieve the Vision 2021 and Sixth Plan targets, the Government has adopted a
comprehensive health, population and Nutrition Sector Development Programs (HPNSDP).
The HNSDP seeks to create conditions whereby people have the opportunity to reach and
maintain the highest attainable level of health as a fundamental human right and social justice.
It targets to achieve MDGs 4, 5, 6 and part of the MDG 1 and 8 and also part of the vision
2021 through the next health sector program.

The key components of the HPNSDP are: (i) Improving Health Services and (ii) Strengthening
Health Systems. The component one comprises of (a) improving health services and (b)
improving service provisions. These two components are interdependent and mutually
reinforcing. Responsibilities for improving and providing health services are shared among the
Directorate General of Health Services (DGHS), the Directorate General of Family Planning
(DGFP) and the Directorate of Nursing Services (DNS). Other Directorates like the
Directorate General of Drug Administration (DGDA), Health Engineering Department (HED),
National Institute of Preventive and Social Medicine (NIPSOM), Institute of Epidemiology,
Disease Control and Research (IEDCR), Institute of Public Health and Nutrition (IPHN),
Institute of Public Health (IPH), National Institute of Population Research and Training
(NIPORT) and other relevant institutes share the responsibility of strengthening health
systems.

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HEALTH SECTOR STRATEGIES AND POLICIES IN THE SFYP

The strategies and policies for realizing the Vision 2021 and achieving the targets of the Sixth
Plan for the health subsector build on the lessons of experience of the implementation of the
past health policies. It takes a comprehensive approach to improving the health sector service
delivery including stronger partnership with private sector. The main elements of the health
sector strategy adopted in the HPNSDP are elaborated below.

(a) Public Health Service Delivery Strategy

Improving health system linkages: Theoretically, Bangladesh seems to have a health system
of some sophistication. There is a network of hospitals, health centers and dispensaries,
thousands of staffs and extensive training centers. This network, now in its advanced stage of
development, comprises of 402 health complexes at the Upazila level (UHCs), about 4000
health and family welfare centers (HFWCs) at the union level and several thousand
community clinics (13,500) at the ward level.

The roles of the Upazila health complexes and union health and family welfare centers are of
key importance to the delivery of primary health care in rural areas. It has been recognized that
proper and effective curative care greatly influences the process of the people's acceptance of
preventive and promotive health care. Without active support of the former, the latter cannot
be geared up to a significant extent, particularly in the existing socio-economic conditions of
rural Bangladesh. What is primarily needed is effective curative care with adequate provision
of preventive, promotive services with health education.

The country's health system is hierarchically structured and can be compared to a five layer
pyramid. First, at the base of the pyramid, there is the ward level health facility (CC),
consisting of a health assistant and a family welfare assistant. At the next level is the union
health and family welfare center (HFWC) staffed by a medical assistant, one family welfare
visitor and one pharmacist, which concentrates on the provision of maternal and child health
care and provides only limited curative care. Third, there is the Upazila Health Complex
(UHC) with nine doctors, two medical assistants, one pharmacist and one radiographer and
EPI technician. The UHC is responsible for inpatient and outpatient care, maternal and child
health services and disease control. Operation theatre is also functioning in the UHCs especially in the 50
bedded UHCs. Fourth, the district hospital is the first layer of the health care pyramid to have
theatre facilities, but some selected UHCs have got EOC facilities. Finally, the medical
colleges and post-graduate institutes form the top of the health services pyramid offering a
wide range of specialty services.

Under the recently introduced Sector Program (HPNSDP) efforts are being made to achieve
"health for all" within the shortest possible time and to ensure equity of access for all
Bangladeshi citizens, especially those who live in rural areas and in urban slums. The health
centers that need most attention in order to achieve better health outcomes for the population

355
at large are the community clinics and the Upazila health complex.

Community Clinic: Re-commissioning of the community clinic, established during the earlier
tenure of the present government on the principle of one for 6,000 rural population to bring the
services to the door step, has already been started by mobilizing appropriate human resources,
drugs and equipments. Community clinics is expected to deliver one stop integrated health,
population and nutrition services to the respective communities and will be first point of
contact of the rural community with the public sector health services. In addition to thorough
repair of 10,723 community clinics established earlier, another 2,777 are planned for
construction, of which 700 at coastal belt will be double storied for the provision of using as
shelter in case of emergencies. In addition to service providers (health assistant and family
welfare assistant), a new post of community health organizers have been created in each of
13,500 community clinics, which will not only strengthen service delivery but also
employment opportunities to rural women. For demand creation effective information
dissemination (IEC) programs will be planned.

With the re-vitalization of the community clinic management groups, community participation
in community clinics will be ensured and this is expected to be the model of community
driven primary health care delivery. Community clinics are also expected to be foundation of a
strengthened, improved and effective Upazila health system catering the need of the rural
population.

Upazila Health System: Functioning of the Upazila health complexes, union health and family
welfare centers/sub-centers will be strengthened and further consolidated through providing
adequate human resources, drugs and other medical aids. The provision of essential services
package (ESP) delivery through Upazila health system will be strengthened and popularized.
Up-gradation of 31 bed Upazila health complex in 50 beds with the provision of more
specialist service (like orthopedics, ophthalmology, cardiology, pediatrics and ear-nose-throat)
will continue. So also the up-gradation of the union health and family welfare centers. 31 bed
hospital and 20 bed hospitals will be established as when needed. Involvement of the local
government institutions and non-government organizations will be explored for demand
creation, effective service delivery and appropriate utilization, particularly by the poor,
women, elderly, marginalized and vulnerable. The current commitment of spending at least 60
per cent of total budgetary allocation of the health, nutrition and population sectors at Upazila
and below level will continue to be pursued to improve the quality of primary health care and
make it accessible and acceptable to the people.

Urban Health: The services offered by secondary and tertiary hospitals will, depending on bed
capacity, be standardized along with human resource needs and table of equipments (TOE)
linked to the services. Appropriate human resources development and management structure
will be developed for the existing hospitals. New branches of sub-specialization will be
created in all medical college hospitals, so that patients do not need to rush to the capital city.
Hospital autonomy will be introduced initially for the tertiary level specialized hospitals and
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gradually extended to medical college and district hospitals. Management Committees at
hospitals will be strengthened for better monitoring and vigilance team for hospitals will be
further strengthened and its jurisdiction will be expanded. Government will establish new
specialized hospitals under its private public partnership initiative. Accountability and quality
of care will be ensured and death audit will be introduced as part of such initiative.

The existing practices of providing urban primary health care (UPHC) services through
contracted NGOs for the city corporations and selected municipalities under the LG Division
will continue to be pursued. In addition, MOHFW will continue to provide PHC services in
urban areas not covered by the UPHC project. Similarly, it will also continue to provide
secondary and tertiary level health care in urban areas and try to improve both coverage and
quality in response to demand. A priority objective for improving urban health services will be
to facilitate access and effective use of available essential services packages (ESP) delivery
services by urban poor and slum dwellers. To this end, an urban health strategy in
collaboration with LG Division will be developed with a view to streamlining urban primary
health care services and establishing strong institutional linkage and ensuring primary health
care, family planning, reproductive health and nutrition services for the urban poor. Existing
linkage with LG Division will also be strengthened for urban disease surveillance and
monitoring including management information system, capacity development and quality
assurance, etc. Moreover, MOHFW will strengthen its policy directive and stewardship roles
in providing effective urban health care services including ensuring adequate doctors and
medicines.

Maternal and Newborn Health: Several critical issues hamper progress in maternal and
newborn health. A very high percent (about 80%) of childbirths occur in the home with
traditionally trained and unqualified birth attendants – a scenario that restricts the potential to
improve maternal and newborn health. According to the Survey of Maternal Mortality 2010,
for every 1 lac live birth, the rate of maternal mortality is 194. Capacity will be improved to
provide care of adequate quality particularly for the poor for normal childbirth (basic essential
obstetrics care) through trained (community) skilled birth attendants, community clinics, union
health and family welfare centers, Upazila health complexes and facilities at and above
districts including maternal and child welfare centers, and for the prevention and management
of complications (comprehensive essential obstetrics care) by expanding services in more
Upazila health complexes and ensuring the same through all maternal and child welfare
centers and district hospitals and facilities above. A midwifery plan and category according to
international standard will be formulated inclusive of participation from non-public sectors.
Existing family welfare visitors training institutes (FWVTI) will start family welfare training
courses as pre-service and will also provide (community) skilled birth attendants (C-SBA)
training. Through developing guidelines FWV and C-SBA training will also be open for non-
public sectors to provide. In addition, existing nursing institutes will be strengthened.
Possibilities will also be explored to utilize nurse-midwives for providing maternity services.
These initiatives are expected to produce significant numbers of skilled service providers to

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care for normal childbirths. Efforts will be strengthened for more Upazila health complexes to
provide comprehensive and emergency essential obstetrical care by training and placement of
requisite human resources and providing required instruments and supplies. Governance will
be ensured through improved monitoring in providing comprehensive and emergency essential
obstetrical care in designated facilities. To improve maternity services in urban areas,
particularly for the poor, delegating nurse-midwives for performing midwifery functions in
public sector facilities and engagement of non-public actors to provide required services will
be explored. The maternal health strategy will be updated with the formulation of maternal and
newborn health strategy. The ongoing maternal voucher scheme (demand side financing) will
be evaluated and based on findings a revised program will be launched in coordination with
the maternal allowances provided by the ministry of women and children affairs. Initiatives
will be explored to utilize community support groups for awareness raising and supporting to
utilize maternity services through removing social, economic and other barriers. Coordination
between health and family planning department will be strengthened, so that patient gets a
well coordinated continuum of care crossing the boundaries if the departments and not
constrained with silo of the departments. Coordination and monitoring will be improved to get
best possible outcomes from the on-going/upcoming multiple development partners supported
maternal and newborn services. In order to reduce maternal mortality, media participation and
education on reproductive health will be given special emphasis.

Antenatal Care: WHO recommends a minimum of four antenatal visits during pregnancy with
care provided by skilled health personnel. In Bangladesh, skilled health personnel include
doctors, nurses/midwives, FWV, community skilled birth attendants (CSBA), medical
assistants/SACMO and paramedic. Prenatal care should include immunization against tetanus,
iron and foliate tablets supplementation, hookworm treatment and management of STIs and
RTIs. Besides, educating women on danger signs of pregnancy complications, performing
screening tests including urine and blood tests, and measuring weight gain, height and blood
pressure are essential components of ANC. It can be inferred that ANC visits to skilled health
personnel prevent complications that would arise due to anemia, infection and other
preventable causes.

The proportion of pregnant mothers seeking at least one antenatal care visit by skilled health
personnel has increased from 26% in 1991-93 to 52% in 2002-06 (Table 8.3). Only 21% of
women made four or more antenatal visits in 2007, far below the target of universal coverage.
The UN Joint Maternal and Neonatal Health (MNH) Program has set a target of 60% ANC
coverage (four visits) for 2011. ANC coverage from a medically trained provider increased by
18 per cent between 1999/2000 and 2007 BDHS. The increase in coverage was significantly
higher in rural areas than in urban areas.

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Table 8.3: Percentage of Women who Received ANC from a Medically Trained Provider

Hard to reach populations and the disadvantaged: It is estimated that there are 2.5 million
people in Bangladesh, who are members of ‘ethnic populations’. Majority of them (42%) live in
three hill districts of the Chittagong Hill Tracts (CHT), while others are scattered in northern hilly
regions and some coastal districts. They belong to 45 different communities with a very low
level of literacy and nutritional status. These communities are particularly poorly served by
health facilities. As they live in remote areas, it is difficult to attract health workers to stay in the
area. These communities have specific needs in their cultural settings which necessitates
special measures and adjustment in delivery mechanisms. Collaboration with MOCHTA and
the CHT Board would be strengthened with a view to increase support of the health sector, in
partnership with NGOs.

People with disabilities (PWD): Many of the disabilities linked to poverty are preventable, such
as through actions on low birth-weight, malnutrition, iodine deficiency, eye care, injury
prevention and skilled management of complications. Disabled girls face multifaceted problems,
e.g., sexual abuse, unwanted pregnancies, marginalization in the family and society. They have
limited access to health services due to physical, psychological, social and economic barriers. Both
infrastructure and services will need to adequately address their needs such as accessibility and
human resources development that addresses issues of attitudes and behavior of service
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providers towards them. Inter-sectoral coordination is important in this area, as various other
government ministries are also involved, such as the Ministry of Social Welfare (MOSW).

Elderly: People > 60 years of age constitute 8% of the total population of Bangladesh and are
likely to increase the numbers as life expectancy increases. Widowhood and poverty affect the
elderly women more socially and economically. The main aim for geriatric care is to promote
health, well being and independence of the elderly. The specific program objectives are to
create awareness for geriatric care management, train the geriatric caregivers and increase
service facilities for elderly at all levels. The MOSW has introduced a Hospital Social Service
Program (HSSP) in both government and non-government hospitals, where the needs of
elderly patients are emphasized. This program needs to be reviewed and scaled up along with
encouraging the private initiatives in this area.

Geographically excluded population: Difficulties in accessing different geographic locations

have left some areas of the country isolated from the mainstream public services. These
include the chars, the haor areas and the remote coastal areas. Particularly in the rainy season,
access to these areas is difficult for government staff and access to government facilities is
difficult for inhabitant of these areas. While government initiatives in infrastructural
development are improving access, this is still insufficient. Alternative methods of increasing
access of health service would be further explored and expanded including initiation of mobile
clinic units and involvement of the NGOs, private and individual social institutions.

Professionally marginalized and socially excluded groups: Various professional groups are
socially marginalized and excluded because of their professions. These include sweepers and
sex workers who are also impoverished. They are often unaware of the health consequences of
their professional activities, unable to take the necessary preventive or curative measures and
are unable to switch occupations due to various social constraints. The health services
providers are often unwilling to treat or advise such patients and also not always capable of
dealing with their specific needs. In order to ensure equity in access for all, both the clients
and the service providers have to be motivated to use the health services available and to
enable these groups to access health services.

Priority interventions to address hard to reach populations and the disadvantaged will include:

• Preparing a map of the hard to reach areas of Bangladesh and ensuring need based
provision of HPN services for the hard to reach population through the GOB network
where available. Motivating the service providers through counseling for giving adequate
care to the marginalized and socially excluded group of population.

• Strengthening collaboration with the MOSW, MOCHTA, the CHT Board, the NGOs and
the private sector to address the health service of the hard to reach population and the
disadvantaged.

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• Engaging locally available private individuals, social clubs, CBOs and NGOs by MOHFW
for stimulating informed demand of the hard to reach population and ensuring quality
health services and appropriate utilization.

• Providing essential service packages with support from NGOs/CBOs, due to shortage of
public sector human resources, through agreed arrangements, in the hard to reach areas.

Institutional deliveries: The proportion of births delivered at a health facility increased from 4
per cent in 1989-93 to 15% in 2002-06. The recent increase in institutional deliveries is mainly
due to increase in deliveries at private facilities. However, there are high rural-urban, regional,
educational, and wealth status disparities. Women in urban areas are three times as likely as
women in rural areas to give birth in a health facility. Institutional deliveries of uneducated
mothers is 3% compared to 43% for secondary and higher educated mothers. Similarly,
women from the top wealth quintile are nearly ten times more likely to deliver at a health
facility than women in the bottom quintile. Institutional deliveries are the highest in Khulna
division (22%), while Sylhet division has the lowest percentage (8%) of institutional
deliveries.

Facility deliveries increased moderately from 9% in 2004 to 15% in 2007 partly due to the
introduction of Maternal Voucher Scheme in 33 selected Upazilas with a view to increasing
access to poor women to maternal health services. Under this scheme, eligible pregnant
women are entitled to receive 3 ANC, safe delivery including c-section, complication
management and one PNC. In addition, cash benefits are provided for transport, nutritious
food and other items and for referral. With the increase in facility deliveries, deliveries in
NGO and private sector facilities increased from 3% in 2004 to 8% in 2007. NGO and private
sectors are performing double the number of C-sections as the public sector.

Births attended by skilled health personnel: Assistance by medically trained personnel during
delivery is a key intervention for reducing both maternal and neonatal mortality. Assistance
during delivery by medically trained providers was only 5% in 1990 which increased to 18%
in 2007. Additionally, trained traditional birth attendants (TBA) assist 11% of deliveries.
However, more than 60% of births in Bangladesh are assisted by dais or untrained traditional
birth attendants. Medically assisted births have increased from 12% in 1999-2000 13% in
2004 and further to 18% in 2007. Births in Khulna (27%) are more likely to be assisted by
medically trained personnel than births occurring in other divisions. However, the highest
differential in delivery assisted by a medically trained provider was by wealth quintile: the
proportion of medically assisted births in 2007 among women from the richest quintile was
51%, while the poorest quintile had the lowest proportion (4.8%) (Table 8.4). The SFYP will
conduct 3 month training program for the midwives for improving their skill level and equip
them with necessary medical kit boxes for smooth and effective service delivery. Training
Centers for Safe Birth Attendant will be developed in every district.

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 Table 8.4: Percentage of Delivery Assisted by Medically Trained Provider

The percentage of births by caesarean section is sometimes considered to be a proxy indicator

of women’s access to skilled care for maternal complication. In 2007, 8 percent of babies born
were delivered by caesarean section, an increase of 4 percentage points from 2004. Caesarean
sections are more common among first births (13%), births in urban areas (16%), among
women with secondary or higher education (26%), and among women in the highest wealth
quintile (26%).

Postnatal care: Maternal mortality can occur during postnatal period due to maternal
complications. Postnatal care provides an opportunity to assess and treat delivery
complications and to counsel mothers on how to care for themselves and their children. A
large proportion of maternal and neonatal deaths occur during the 24 hours following birth. In
Bangladesh, about 30% women received postnatal care following their last birth, among them
22% received care from a medically trained provider.

Child health: Reducing childhood deaths, Bangladesh is on track to achieve MDG 4 with
impressive declines in infant and under-five mortality rates. Most of the effective health
interventions (like immunization, vitamin A, oral rehydration etc.) has taken care of equity
issues – gender and economic. Build on the success already achieved, efforts will be
strengthen for maintenance and achieving further. Integrated management of childhood illness
will be further expanded, particularly of community component to cover the entire country.
Alternate strategies will be explored to train informal and semi/un-qualified providers. Efforts
will be made to include more children (already achieved 85%) to have suffered diarrhea
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provided with appropriate oral rehydration. Similarly efforts will be undertaken to increase the
proportion of children suffering from acute respiratory illness who went to a trained providers.
Number of the vaccines in the routine immunization program will be further expanded.
Existing excellent quality surveillance will be maintained for well and prompt investigations
of outbreaks. Special activities will be undertaken for maintenance of zero polio status,
measles catch-up and neonatal tetanus campaigns.

Reproductive health: The life-cycle approach will be undertaken to address the need of
women for general reproductive health and to ensure reproductive health in phases. The vast
network of state facilities will be further strengthened for appropriate women, adolescents and
reproductive health. The demand for services will be created through strengthened health
production involving community and different stakeholders.

Referral system: As far as possible, outdoor treatment will be encouraged. All medical college
and tertiary hospitals will accept referred patients. A network of well-worked out referral
system will be developed so that patients are assured of receiving treatment from health
facilities and that patient load at the higher levels is not needlessly burdened by those who can
be treated at the local level. In addition, structured two ways referral system linked to ESP
services will be established for creating an opportunity for a patient attending at the lowest
service delivery level to have the opportunity to get the treatment at the highest level. Support
of tele-medicine and e-health will be used to make specialist services available to all people
irrespective of their geographical locations at low cost. At least equal opportunity will be
provided to women for recruitment in telemedicine and e-health. Number of women recruited
for these services should be sufficient to respond to the demand from women for these
services.

Health education and promotion: A major strategy to ensure better health would be to promote
public health through health education within MOHFW and channels outside it. The existing
institutions of MOHFW will be strengthened for providing effective health messages.
Coalition will be built with mass media for providing health education to the population on a
continuing basis regarding methods of preventing communicable and non-communicable
diseases, caring practice for children, adolescents, physically and mentally challenged and the
old aged, and creating awareness on nutrition, personal hygiene, use of safe water and proper
sanitation. Effective health education through educational curriculum, mass media etc. on
disciplined life style and healthy food habit will certainly reduce the risk of different diseases.
Steps will also be taken to reach basic health and reproductive health information through
school curricula and utilize NGOs and different religious centers to influence health behavior
of the people. Moreover, activities of existing school health clinics will be reviewed and based
on learnt lessons, school health program will be scaled up through developing a strategy in
collaboration with Ministry of Education, Ministry of Primary and Mass Education, Girl’s
Guides, Boy’s Scouts, etc. The strategy will also include training of Primary School Teachers
on Primary Health Care.

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 Communicable diseases: The existing programs along with focus will further be expanded
and strengthened to intensify prevention and control of communicable diseases, such as, acute
respiratory infection, diarrhea, dengue, etc. In order to control water borne diseases, emphasis
will be given to improve the existing sanitation facilities, especially those in urban slums.
Malaria is a disease that cannot be eliminated, but it can be kept at a low and manageable
level by well-organized early ease detection and treatment and by protection against the
vector, which requires a close and permanent relationship with the affected communities. The
affected communities live in 13 eastern districts, with 3 hill tract districts accounting for 80%
of all cases The National Malaria Control Program pursues the achievement of the MDG
targets aligned with the targets set in the Strategic Plan (2007-2015). The program envisions a
60% reduction of malaria deaths by 2015. In line with these programs, several strategies have
been undertaken under the SFYP e.g. bed net availability and use will be expanded with
indoor residual spraying will also be expanded. Diagnostic and treatment facilities will also be
expanded. Case finding, treatment and vector control will be strengthened. Gradually existing
responsibilities of contracted NGOs vertical workers will be shifted to the government health
workers. Cooperation of private sector will also be strengthened. Filariasis is endemic in 34
districts, with a population of approximately 70 million people. Filariasis can be eradicated if
the total population in an area has received mass drug administration with two types of drugs
once a year during 5 years. Efforts will be undertaken to appropriately motivate volunteers
administering mass drugs and to motivate all people to take the drugs as prescribed to increase
coverage at appropriate level. Vector control (e.g. with bed nets) will also be explored.
Elimination is being defined as a microfilariaemia rate of less than 1 % among people at risk.
Elimination is aimed by the program.

Tuberculosis control is one of the successful public health programs. The National TB Control
strategy focuses on the role of the health sector in controlling TB. As TB is a poverty-related
disease, any contribution in the area of improving overall living conditions, increasing
household income, improving nutrition, etc. has also an impact on reducing the burden of TB.
The National Strategic Plan to Control TB (2011-2015) aims at halving the prevalence and
mortality and begin to reduce the incidence includes through the following strategies: (i)
pursue quality Directly Observed Treatment Short Course expansion and enhancement; (ii)
establish interventions to address HIV associated TB and drug-resistant TB; (iii) contribute to
health system strengthening; (iv) forge partnerships to ensure equitable access to an Essential
Standard of Care to all TB Patients; (v) engage people with TB, and affected communities;
and (vi) promote operational research. Several national guidelines, manuals and
policies/strategies to guide specific intervention areas of the three programs have been
developed. Under the SFYP, measures will be undertaken for the sustainability of the success
achieved: more involvement of government workers in the detection and treatment of
tuberculosis including private providers and urban PHC providers, finding out additional
technical staff - district program organizers and control assistants, improved and additional
laboratory facilities.

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Kala-azar occurs in about half of the country, with a higher prevalence in 10-12 districts and
with the single district of Mymensingh accounting for more than half of all cases. Case
detection, surveillance, confirmation of diagnosis and treatment will be strengthened along
with vector control measures. Elimination is being defined as a prevalence of less than 1 case
per 10,000 populations in an Upazila. Program will be geared to the goal of elimination.

Leprosy is eliminated (as defined with prevalence of less than 1 per 10,000 populations)
nationally in 1998. However, it was still over 1/1 0,000 in 4 districts and 5,251 new cases of
leprosy detected in 2008. Training of health care staff, awareness programs among the
population, treatment of the patients and assistance to cured but deformed patients will be
continued. MOHFW will strengthen its linkage with LG Division and other appropriate
ministries in improving facilities for safe drinking water and sanitary latrines (including same
arrangements in all riverine transports and railway) and making the environment clean with a
view to combating communicable diseases.

HIV/AIDS: In order to achieve the MDG (Goal 6) the target is to (i) have halted by 2015 and
begun to reverse the spread of HIV/AIDS and (ii) achieve, by 2010, universal access to
treatment for HIV/AIDS for all those who need it. The prevalence of HIV/AIDS in
Bangladesh is currently less than 0.1% and thus still below an epidemic level. However, in
Bangladesh, behavioral factors among most at risk populations (MARPs), explored in several
rounds of Behavioral Surveillance Survey shows a trend that could fuel the spread of HIV
from MARPs to the general population. HIV Voluntary Counseling and Testing (VCT)
services and the uptake of VCT remain limited. Thus, many people who are infected with HIV
may not be aware of their HIV status. The 8th round national serological surveillance (2007)
found a HIV prevalence rate of 7% overall and 11% in one of the neighborhoods of Dhaka.
The HIV prevalence among sex workers overall is below 1%, but at hilly areas the prevalence
was 2.7% among casual sex workers. Such concentrated prevalence has potentially far
reaching implications on HIV transmission to other vulnerable segments.

The Bangladesh National HIV/AIDS Strategic Plan (2006-2010) is focused on five key areas:
(i) to provide support and services for priority groups; (ii) to prevent vulnerability to HIV
infection; (iii) promote safe practices in the health care system; (iv) to provide care and
treatment services to people living with HIV; and (v) to minimize the impact of the HIV/AIDS
epidemic. Under the SFYP, interventions with high-risk groups will continue to implement
with enhanced monitoring and supervision. Capacity of the national AIDS/STD program
(NASP) will be strengthened - both in management and in HIV / AIDS technical, for
providing stewardship in the program, including setting-up permanent structures in revenue
budget. A new comprehensive national strategic plan for HIV / AIDS prevention and control
will also be formulated.

Non-communicable diseases: Reduction of morbidity and premature mortality due to non-

communicable diseases (NCDs) will require appropriate actions at all levels from primary
prevention to treatment and rehabilitation in an integrated manner. The government will, in
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partnership with local government administration and private sector create greater awareness
of, and provide services for the control of unhealthy diet and lifestyle related major NCDs
like-- cardio-vascular diseases, cancer, diabetes, mental illness, etc. It will also take steps to
combat common NCDs, such as, hypertension, asthma, blindness, etc., which particularly
afflict the poor. Existing preventive and curative measures with respect to all NCDs will
further be expanded and strengthened to increase access of all for health care services.
Capacity to plan and implement NCD programs will be developed. Initiatives will be taken to
obtain reliable base-line data on the epidemiology of NCD and their risk factors. Population
screening for risk factors such as hypertension or cancer screening will not be undertaken as
unrealistic.

(b) Strategy for Strengthening Health Inputs

Promotion of public awareness: A major strategy to ensure better health would be to

promote public health through better health public awareness of health hazards. The existing
institution will be strengthened and partnership will be built with mass media for providing
health education to the population on a continuing bases regarding methods of preventing
communicable and non-communicable diseases, caring practice for children, adolescents,
physically and mentally challenged and the old aged, and creating awareness on nutrition,
personal hygiene, use of safe water and proper sanitation. Steps will also be taken to reach
basic health and reproductive health information through school curricula and utilize NGOs
and different religious centers to influence health behavior of the people. Moreover, activities
of existing school health clinics will be reviewed and based on lessons learnt, school health
program will be scaled up through a strategy developed in collaboration with the various
educational institutions

Nursing: Nursing and midwifery services is planned to strengthen in public sector by creating
adequate posts and filling-up the same, so that existing mismatch of physicians-nurses and
nurses-patients ratios can be improved substantially. Nursing and midwifery services is also
planned to expand to cover specialist nursing services like cardiology, orthopedic, neurology
etc. Nursing and midwifery education will be expanded for training more nurses both in public
and non-public sectors covering diploma and bachelor courses. Quality of nursing and
midwifery education is planned to be improved at international leveling addition, to meet the
domestic requirement and also to export manpower abroad. Up-gradation of Directorate of
Nursing services to Directorate General Nursing services, appropriate career and human
resources planning in the nursing services/ teaching profession is the demand of the time to
ensure the quality of health services for the people.

Drugs: Initiatives have been taken to revise the existing drug policy to ensure easy access to
essential drugs at fair prices and to supply quality drugs and also to bring self-sufficiency in
the production of medicines of international standard along with promotion of their export.
Directorate of Drug Administration is planned to strengthen, expand and modernize to
improve its regulatory capacities. Increased attention will be given to popularize rational use
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of drugs by educating both the prescribers and users on appropriate prescription practices and
use of appropriate drugs with dosages. Both the existing drug testing laboratories at Dhaka and
Chittagong are planned for modernization. In addition, another drug testing laboratory of
international standard is planned to be established.

Medical education: Proper medical education system is very crucial for effective HPN
service delivery. Measures will be taken for the production of appropriate skill-mixed
workforce (super-specialist physicians and surgeons, specialist physicians and surgeons,
general duty doctors, specialist nurses, general duty nurses, mid-wives, nutritionist, dieticians,
paramedics, technologists, electro-medical engineers/ technicians etc.) in both public and
private sectors. Private sector participation in medical education has expanded over the past
few years. Maintaining the quality of medical education has since become crucial. The
MOHFW will reexamine the current accreditation arrangements for pre-service educational
institutions of both public and non-public health professionals and will consider the need for a
uniform accreditation body to coordinate and regulate all types of medical education. Client's
satisfaction is an important outcome of quality of care combined with the perception of
provider's behavior. Awareness of the importance of this issue needs to be inculcated during
pre-service education. To this end, steps will be taken to provide community exposure and
patient-friendly orientation in medical education and training. Bangabandhu Sheikh Mujib
Medical University will be made as center of excellence. Bio-engineering education has
always been a neglected area and in this regard emphasis will be given to encourage such
education and to develop skilled people in this area. During the period of internship, a
mandatory time (e.g. 6 months) should be spent in Upazila Health Complex for improving the
health service provided at the upazila level.

Food quality: The problem of major health hazards stems from unsafe drinking water and
consuming unhygienic and low quality food. Definitive food standards will be established to
serve as benchmark for evaluating and maintaining standards. Initiatives will be undertaken
for reviewing all existing food safety laws and upgrading laboratories with clear assignment of
responsibilities for different entities within public and private sectors. The government will
examine the need for an authority for food (independently or integrate with existing drug
administration) to take necessary follow-up action with the aim of removing threat to health of
the citizens from substandard and/or adulterated food. By removing food deficit, nutrition
needs of 85 percent of the population will be ensured.

Emergency preparedness response: The level of readiness at all tiers of the health system
will be strengthened for emergency response and capacity of the sector will be increased for
coordinated post-disaster management. Standard national guidelines for mass casualty
management as well as manual for local level health response will be issued and necessary
training will be conducted. Standardization of emergency health supplies and their stockpiling
will be part of the readiness program. Partnership will also be forged with disaster
management agencies, groups and individuals for improving emergency preparedness,
prevention and mitigation.
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Climate change and health protection: A concerted effort will have to be made to protect
health from adverse effects of climate change. To this end, a national program outline will be
developed in order to reduce the burden of diseases due to climate change. Public health
services will be strengthened as part of central component of adaptation to climate change.
The existing health research agenda will include the adverse effect of climate change on
health, and field surveys and studies will be conducted to identify the short, medium, and long
term effects of climate change on health. Various steps will be taken to raise public awareness
through coordinated efforts and sharing of research findings with all concerned actors. An
advanced preparedness plan will be developed to face the consequences of climate change.
Moreover, climate change being a global challenge, calls for an unprecedented degree of
partnership. An effective response will require actions across the society and from global
community, in order to safeguard and enhance national as well as global public health
security.

Alternate medical care: Homeopathy, ayurvedic and unani are included in alternate medical
care (AMC). Necessary actions will be taken for improvement of the standard of alternate
medicine, increase the demand for quality care and thereby reduce unsound practices. Capacity
building of the AMC providers and proper monitoring and evaluation of the AMC provider
will be undertaken. AMC education and AMC provision in public sector facilities will be
further expanded.

Affordable health care services: Existing system of affordable health care services will be
further expanded and consolidated ensuring proper safety net for the poor. Facilities providing
health care outside the public sector (but receiving government fund) will ensure that at least
30 per cent of their all types of services are kept for free treatment for those who cannot pay.
Necessary fund will be mobilized through user fees, government allotment, social
organizations, private contributions, corporate social responsibility, community financing
schemes, and social insurance. Fees for providing medical advice or diagnostic service will be
reviewed and regulated as necessary. The government will also encourage establishment of
network of evenly spread specialist and super-specialist services through private investment
for patients who can pay.

Surveillance of diseases: The existing disease surveillance system will be reviewed for its
updating to incorporate NCDs along with CDs and keeping in view the international health
regulation system. Disease information monitoring and management system will be
strengthened not only to issue public alert and increase availability of adequate information
concerning the incidence and prevalence of diseases at regional and national levels, but also to
establish a network with the global disease information system. Maps of all major diseases, on
the basis of their incidence and prevalence, will be constructed for each district.

Medical waste management: The government has recently introduced waste management
initiative for hospitals at the Upazila and below to ensure safe, environment friendly and cost-
effective management of sharps and other hospital wastes derived from curative, diagnostic,
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immunization and other services both in public and private sector. The on-going efforts of
hospital waste management at all levels will be strengthened further and expanded all over the
country. The government has already decided that in house medical waste management should
be the responsibility of MOH&FW and out house management should be the responsibility of
MOLGRD. A coordinated mechanism along with committees at different levels will be
established involving hospital authorities, city corporations and municipalities, and Ministry of
Environment (MOE) for management of both in-and-out house hospital wastes. This will
require direct involvement of, and increased investment by, both the public and private
sectors. Steps will also be taken to improve the capacity of DGHS for inspection and
monitoring of medical waste management. In addition, NGOs and private sector’s engagement
for the out-house management will also be encouraged.

Physical facilities: Need based repair/renovation and up-gradation of the existing facilities
(community clinics, union health and family welfare centers, Upazila health complexes,
maternity and child welfare centers, district hospitals, medical college hospitals, tertiary level
specialized hospitals and other installations) will continue along side of setting up new
facilities and installations. Capacity of Public Works Division (PWD) and Health Engineering
Department (HED) will be strengthened.

Telemedicine and e-HPN: In order to contribute to the vision of Digital Bangladesh, HPN
sector will connect all its facilities and installation with computerized network. Data
/information will be continuously used for making management decisions, policy formulation,
program design, monitoring and evaluation. Moreover audio-video conferencing and mobile
phone services will be used to provide need based services to the people. Moreover all the
training institutes under MOHFW will include computer training in all of its courses. Public
hospitals and MCWCs will be gradually brought under functional e-health as smooth
operational and management tool. Support of tele-medicine and e-health will be used to make
specialist services available to all people irrespective of their geographical locations at low
cost

Strengthening research and training: Research will emphasize on priority areas of

biomedical, public health, family planning, epidemiological, HPN systems and policy, social
and behavioral, and operational issues. National HPN research system will play a stewardship
role in identifying priority and engaging research institutions and researchers including non-
public for generating reliable evidences. It will also play a vital role in advocating research
findings for policy and programmatic adoption, as well as for raising citizen's awareness. The
capacity of various research institutions and individuals will be augmented to achieve the
above stated goals. Bangladesh Medical Research Council (BMRC) and National Institute of
Population Research and Training (NIPORT) will be strengthened after reviewing its mandate
and structure for assuming strategic stewardship and governance roles for HPN related
research. NIPORT's training institutes will be strengthened to produce more pre-service FWV,
midwives and Community SBA personnel to cope with need. Recently constructed “National
Institute of Health Management” will be responsible for capacity development of the service
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providers under DGHS. In addition to that, IST (TTU) of DGHS, NIPSOM, IEDCR, ICMH,
BSMMU, Medical colleges and specialized institutes are also contributing significantly in
strengthening research and training.

(c) Strengthening Public Service Delivery Capacity and Accountability:

Health sector management/governance: Governance is an important element of health

system performance linked with improved quality of care and efficient utilization of scarce
human, infrastructural and financial resources. There are a number of problems in the public
health service provision, which contributes to poor governance. These include inefficiency in
service delivery, (medicine, logistics), inefficiency in managing health personnel, poor quality
of services and negative perception about type of services available. The poor quality of
services is indicated by staff absenteeism, inadequate attention given by doctors, non-
availability of medicines and supplies, long waiting time, poor maintenance of equipment and
unhygienic conditions.

Another problem is inadequate supply of medicines from the hospital. Only 12% of the
outpatients and 1% of inpatients received the full course of medicine from the hospital.
Government facilities are the last resort for the hapless poor who cannot afford to consult a
private qualified doctor. But the findings from the same study show that doctors do not pay
adequate attention to the patients who visit hospitals for obtaining services.

There is a widespread absenteeism either in the form of staff actually not being present or
mental absenteeism in the form of indifference with the clientele or strong preferential
treatment of patients. Regarding staff absenteeism, there are two problems to confront. One
problem is that many posts at the public hospitals do not get filled at all, that is these posts are
lying vacant. The other important problem is that even when filled, the doctor may not be
there to attend to the patients i.e. the doctor is ‘absent’ from duty.

It is found that hospital doctors, especially senior doctors (Professors/Associate Professors)

spend most of their time attending private patients either in the facility when they are present
in the hospital or in their private chambers/clinics during afternoon. Thus, the “effective”
number of public doctors in hospitals is much less than the filled in positions (or government
norms) would imply. It is found that the total time spent by doctors at the District Hospitals,
patient care accounts for 49% as against 45% of unproductive/idle time, while administrative
works (5.2%) and time spent in meeting/health promotion activities are a very small
proportion of doctor’s time at the district hospital. Similar picture also emerges for UHCs and
the situation is even worse at the HFWCs.

The findings suggest that many health centers are not fully utilized and most staff have slack
time. It is clear that available resources can be used more efficiently freeing up resources for
expanding activities. There is an urgent need to take appropriate steps to ensure more efficient
use of time by service providers.

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The findings from the same survey show that staffing costs comprise a significant share of
total costs of a health facility. Personnel costs account for as much as 76% of total recurrent
costs at the UHC, followed by 70% at the HFWC and 62% at the district hospital. Again,
spending on drugs and MSR accounts for 29% of total costs at the HFWC, which decreases to
19% at the DH and only 10% at the UHC.

Results from an exit survey indicate that the majority of the service users are dissatisfied with
the existing level of quality of care of public health care institutions. They are found to be
dissatisfied with such aspects of care as waiting time, cleanliness and privacy of treatment, and
expressed serious concern about the quality of inpatient food, availability of prescribed drugs
and medical supplies at the health centers. Outdoor patients were found to be relatively more
satisfied than the indoor patients on almost all dimensions of care. Further, females appeared
to be disadvantaged than males in receiving inpatient care.

About 75% of the inpatients reported that they bought medicines for their treatment in
hospitals. This figure was lowest in case of UHC (64%) and was highest for district hospitals
(78%). Poor governance in the management of drugs becomes apparent as there seems to be
higher levels of supply to facilities than to patients. Several measures will be taken to improve
the governance and management of the health care system. Important reforms include:

Improved management: MOHFW will continue to pursue sector-wide approach in its

development planning and implementation of HPN program. It is expected to result better
government ownership and leadership; improved partnership with the DPs; an agreed sector
policy framework and strategies based on shared vision and priorities; common sector
program/expenditure framework; better coordination and alignment of resources; and
strengthened harmonized implementation mechanisms and use of local systems and
procedures.

Capacity development particularly in the areas of planning, monitoring, procurement and

financial management are extremely crucial for improving implementation capacity of the
public sector program. All the officials in key positions like line directors, program managers
and deputy program managers will be trained in above areas with follow-up support on the
job. Trained people in key positions need to be retained to get the benefit of investment. In this
regard, MOHFW, in addition to practice retention seriously by itself, will engage with other
ministries like establishment, planning and finance for compliance of retention of trained
human resources in key positions. In order to enhance the capacity for the implementation,
geographical distribution of available Human Resource (HR), appropriate utilization of them
through revising job description will be critical. Filling up of all vacant positions is very
important to ensure proper implementation of the program. In addition to current move of
recruitment of doctors, nurses and other positions, efforts in future will aim to continue
recruitment regularly to avoid such huge vacancies as experienced recently.

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Coordination among planning, hospitals and administration wings with physical facilities
construction agencies need to ensure timely securing of equipments (by placing orders at
appropriate advance time) and placement of human resources (by initiating post creation move
at appropriate advance time) as soon as the construction of facilities have been finished so that
these can be made functional immediately. Fund release procedures need to be streamlined so
that first quarter can be released soon the financial years starts, without wasting time as
prevailing. MOHFW in consultation with the Ministry of Finance will work out alternate
procedure for timely release of fund for second and onward quarters as currently obstructed for
the requirement of evidence of expenditure of 75% of funds in the previous quarters, which
has the limitation due to existing practice of central procurement. More delegation of financial
and administrative power, procurement, repair and maintenance will be explored and exercised
to strengthen district and below level service delivery facilities.

Better governance: Good governance in the health sector will be strengthened through
prudent staff deployment, preventing all sorts of mal practices, prohibiting strike and creating
a more customer friendly health service delivery system in the public facilities in partnership
with all stakeholders. The stewardship capacity of public sector will be improved for
monitoring quality of care and safety of patients in both public and private sectors.

The on-going collaborations between the state and the non-state actors in strengthening family
planning, nutrition, EPl, TB and leprosy, HlV / AIDS etc. activities have been found
encouraging through active involvement of the communities. Therefore, these initiatives will
be scaled up as necessary and lessons from these experiences will be replicated in other areas
of concern. The community-based organizations will be involved in monitoring the quality and
coverage of services.

Expansion of private sector's health service provision will continue to be encouraged, so that
private sector can support and complement the government activities. But, the private sector
will also be kept under constant review to ensure proper treatment of patients and make them
more transparent and accountable to the citizens. The existing regulations relating to the
operation of the private clinics and diagnostic centers would be strictly enforced.

The Citizen's Charter for health service delivery has been put in practice in the public hospitals
and health complexes. Practicing of the said charter will be monitored and strict adherence to
its implementation will be ensured.

With the recent renewed commitment of strengthening the local government administration
and institutions at different levels, opportunities have cropped up for exploring devolution of
health programs and utilization of fund through different levels of local government
institutions. Adaptation of such approach will enable need based allocation of resources and
close supervision through the locally elected representatives.

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Focus on improvement of public health services through better planning, reallocation of
existing resources as well as increasing resources, establishing transparency and
accountability, reducing wastage and improving efficiency by better management practices
will be continued.

Transparency, accountability and stakeholder participation: Management committees

along with government service associations, and professional organizations like Bangladesh
Medical Association (BMA), Bangladesh Private Practitioners Association (BPPA), etc., as
key stakeholders can play a more effective role in achieving good governance and ensuring
transparency and accountability in health sector. The stakeholders, including non-state actors,
media and civil societies will be involved in formulating policies and included in managing
committees of hospitals. They will also be consulted on major issues of health sector's
development in order to increase participation, transparency and accountability.

Sectoral reforms: The ongoing health sector reforms will be carried out under the ongoing
HNPSP and upcoming next sector program. The on-going reform measures need to be closely
monitored and reviewed for their successful implementation. Efforts are on to reestablish
functioning of the Bangladesh Medical and Dental Council through an amendment of the
concerned law. Gradually other laws relating to regulatory bodies will be reviewed and
strengthened to make them functional and effective. Both administrative and financial
authority, as far as possible, will be decentralized with a view to increasing accountability and
establishing quality health care services at all levels. A system of collection, retention and
utilization of "user fees" at all public health facilities (ensuring adequate safety net for the
poor) will be established and for this a set of guidelines developed.

Stewardship role of the Ministry of Health and Family Welfare: The government has been
emphasizing on wider involvement of the private sector including non-state institutions for
enhancing effective health service delivery. To this end, the stewardship role of the MOHFW
has to be strengthened. The following are some of the important areas where effective
regulatory mechanism of the government will be established.

1. MOHFW will gradually assume strategic stewardship and governance roles for policy
management in the following and related areas.

• Setting up a coordinating system for synergistic, effective and efficient contribution from
public and non-public including private sector and health related NGOs for extending and
improving health services.
• Necessary steps will be taken for formulation, implementation, review and periodic
updating of a comprehensive (i) Maternal, Neonatal and Child Health Strategy, (ii)
Population Strategy by updating the existing NPP, (iii) Infant and Young Child Feeding
Strategy, (iv) Strategy for Combating HIV/AIDS, (v) Strategy to reduce the burden of TB,
Malaria, Kalazar and Filaria, (vi) Urban Health Strategy, (vii) Non-Communicable
Diseases Strategy,(viii) Emergency Preparedness and Response Strategy, (ix) Accident and

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 Violence Management Strategy, (x) Occupational Health Strategy, (xi) Mental Health and
Drug Addiction Strategy, (xii) Tribal Health Strategy, and (xiii) Food Safety and Drug
Strategy.

II. MOHFW strengthens its regulatory and supervisory roles

• Regulatory bodies (Bangladesh Medical and Dental Council (BMDC), State Medical
Faculty (SMF), Bangladesh Nursing Council (BNC), Bangladesh Pharmacy Council
(BPC), and Ayurvedic, Homeopathy and Unani Board will be made more effective and
functional through revising their mandate, structure and capacity building for enforcement
of standards.
• The existing structure and capacity of DOHS will be reviewed and strengthened for
increasing supervisory performance and enhancing institutional capacity.
• Professional medical ethics and code of conduct will be established among the service
providers through enforcement of regulatory framework in consultation with the
professional associations.
• The need for separate regulatory body for effective service delivery system for both the
public and private sectors will be reviewed.

Ill. Public sector notably MOHFW will increasingly focus on ensuring proper safety net for
the poor, vulnerable and marginalized.

• Existing health delivery system in both public and private sectors will be further expanded
and strengthened, ensuring proper safety net for the poor, vulnerable and marginalized.
Individuals receiving old age stipends from the government will get full free treatment in
all public hospitals.
• Alternative health delivery systems will be explored leading to an eventually self managed
system with community participation in managing the facilities on pilot basis and then
scaled-up, based on lessons learnt.
• Public-private partnership in health delivery system will be further expanded and
strengthened with an effective monitoring and regulatory mechanism.

IV. MOHFW assumes responsibilities for proper information generation, collection and
effective management feeding into policy formulation and planning.

• Develop comprehensive plan including performance indicators for monitoring and

evaluation of health interventions and HPN facilities with sound demographic and socio-
economic data including those on burden of disease, inequality and gender disparity.
• Improve existing communicable disease surveillance system to support a more rapid
response to tackle disease outbreaks. Surveillance of major non-communicable diseases
will also be integrated with communicable disease surveillance.
• Formulation, implementation and periodic review of comprehensive behavior change
communication strategy for stimulating informed demand for health services.

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• Formulation of an improved planning and budget through pilot introduction of local level
planning (decentralized at district and Upazila level) supported with resource allocation.

Strengthening human resources: The comprehensive human resources strategy under

preparation by MOHFW will address the issues of shortages, mal distribution of personnel,
skill-mix imbalance, negative work environment and weak knowledge base. Steps will be
devised for improving the quality of existing workforce in both the formal and the informal
sectors. Measures will also be taken for production of additional workforce (doctors, nurses,
paramedics, technologists, etc.) in the public sector and the private sector, based on need
assessment. Moreover, the following are some of the important areas of focus for HPN sector's
human resources development (HRD).

• The public sector HRD strategy will, among other things, involve establishing career plans
for specific lines of specialization, based on competence and experience, and clear
principles for promotions, posting and transfers.

• The marked imbalance in the skill-mix of service providers needs to be addressed on an

urgent basis. Priority will be given to the pre-service education, recruitment and training of
additional nurses, midwives, technicians and C-SBAs to meet existing shortage and
improve service delivery. Efforts will be taken to recruit a number of female doctors,
nurses and Family Welfare Visitors to provide health care services to women in
Community Clinics, Union Health Complexes, District Hospitals and Urban Health
Centers

• Personnel management procedures will be reviewed and updated as required. The updates
will include introduction of incentives for service providers working in remote and hard-
to-reach areas and modifications of the transfer-posting practices for field level managers.
• Performance management (supervision and annual performance evaluations) of individual
staff will be strengthened through individual performance, performance management. This
will include application of merit-based incentives as well as disciplinary measures in
response to absenteeism or misuse of public-sector resources for private gain.
• The large and critical role of the informal health care providers will have to be recognized
and appropriate strategies developed with a view to managing and improving their
practices to minimum levels of acceptable care. They will be given need based short
training of different durations at both public and non-state facilities, particularly on
appropriate drug use and prevention of drug resistance, routine curative care management
and referral of complex cases to the appropriate facility.
• Bangladesh needs to take more initiatives to accelerate the reduction of infant and maternal
mortality. To this end, in addition to strengthening SBA training programs, the untrained
TBAs will be given appropriate training of short duration on maternal and neo-natal care
and safe delivery. A system of supervision will be established to regulate the quality of
their service.

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Improving supply management: The MOHFW has continuously been monitoring and
reviewing the process of procurement for developing a need based, efficient and cost-effective
system. The new contracting-out system is already in place keeping provision for repair and
maintenance for ten years by the supplier for certain electro-medical equipment. This system
along with functioning of the National Electro-Medical Equipment Workshop (NEMEW) will
be further reviewed for strengthening the repair and maintenance of electro medical equipment
for their proper functioning. Further emphasize will be provided on improvement in Central
Medical Stores Depot's capacity, staff training, storage and distribution, Computerized
Inventory Control System (CICS) and Logistics Management Information System (LMIS).
The scope for further expansion of decentralized procurement will be explored to achieve
greater timeliness in procurement of supplies.

(d) Strengthening Access to and Utilization of Public Health Services for the Poor and
Needy

Primary health care services can be characterized by their availability, accessibility, utilization,
coverage, quality, and impact. Of particular concern in a country like Bangladesh is ensuring
that high-quality primary health care services reach those most in need, namely the poorest,
least educated, and geographically most isolated members of the society. The three aspects of
health, viz. status, access and utilization, are distinct though interrelated. Indicators of health
status (e.g. mortality and morbidity rates) can reflect whether health services have had any
impact on the health of the population. A greater availability of health services is obviously
intended to improve health status and to reduce inequity in the distribution of health services.
However, it is important to consider the actual utilization of available health facilities since
equity and access are likely to have an impact on health status only if these facilities are
actually utilized.

Access to health services can be defined in terms of (a) access of available health facilities to
rural and urban areas and different social classes and (b) their actual utilization, which would
determine the level of satisfaction of health needs. The factors determining access and
utilization are diverse. Income is only one factor that might explain access to health services
in developing countries. It is necessary but not sufficient – other factors such as the nature of
government policies and their effectiveness, income distribution and institutional and non-
economic factors (such as cultural and social constraints) play an equally important role in
determining access to health services and their utilization.

To be effective, health services should be available, accessible and affordable. But mere
availability of health facilities does not result in their utilization. Accessibility has a number of
dimensions, which include:

• Physical Accessibility (distance, travel time and travel costs);

• Economic Accessibility (cost of medicine, cost of consultation, cost of hospitalization, cost
incurred with respect to tests/investigations);

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• Social and cultural context (Gender) affecting accessibility;
• Perceived quality of services: (i) availability of doctors; (ii) availability of medicine; and
(iii) attitudes of doctors/nurses.

Physical accessibility: The three main aspects of physical accessibility are distance from the
health facility, travel time and travel cost to arrive at the facility. Physical accessibility is not a
major barrier in the sense that patients do not have to travel a long distance to reach health
facilities at the Upazila level and below. Once patients arrive at the facilities, they do not have
to wait for a long time to get to the services as well. However, patients visiting higher-level
facilities have to wait much longer to see the doctor. However, physical access is a barrier to
maternal and child health services in particular. In the 1999-2000 DHS, 79% of women
reported that the lack of a health facility nearby was a constraint to consumption. In the same
survey, 50% of women responded that getting to the health facility was a problem to them.
There is significant negative association between both distance to the provider and travel time
and the use of health services. If the travel time was 40 minutes or greater compared with
travel time of 15 minutes or less a child is less likely to be taken to a qualified allopathic
provider or a traditional practitioner than a village doctor, . Other research has shown that a
majority (74%) of sick children in a rural area of Bangladesh are taken less than two miles for
treatment; and that a majority of those children are seen by private practitioners. In contrast,
children who are taken more than two miles for treatment received health care from qualified
allopathic providers.

Social and cultural context – utilization by age and gender: The social and cultural context
has an important impact on the utilization of health services in Bangladesh. Social and cultural
factors particularly affect the role of gender and the participation of women in household
decision-making. Women are less likely to utilize health services, the DHS (Demographic and
Health Survey) data show that 44% of women reported difficulty in getting permission to go to
a health provider as a constraint to health service consumption .In addition, 49% of women
reported that finding someone to accompany them was a problem. It is found that men who
were sick were more likely than women to utilize modern qualified providers in rural
Bangladesh. The gender bias may reflect beliefs that it may not be appropriate for women to
be seen by a male provider. In addition to the long-standing cultural biases against women, the
fact that the health providers available in rural Bangladesh are predominantly male suggests
that the problem of women’s access to care will not be easily solved.

Findings from various studies have shown that in Bangladesh, females generally do not get
proper treatment during their childhood as well as during their reproductive age span. There is
considerable evidence that in rural Bangladesh females have less access to food, health care
and other resources than males within the same household. Utilization patterns of health
facilities for females are inversely related to the levels of care i.e. female utilization decreases
as one goes up along the levels of care (from HFWC to UHC to DH). The findings suggest
that males dominate utilization of government facilities, at all age groups except for the
reproductive one. The gender differential in utilization rate was particularly striking for under-
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five children and also for women in the age group 65 years and above.

• For young infants, utilization of inpatient facilities was 62 per cent for males compared to
38 per cent for females, indicating that the younger the child – the higher the disparity.
• For older persons aged 65 years and above, utilization of outpatient facilities was only 30
per cent for females as against 70 per cent for males. This indicates that in terms of
receiving care and treatment during old age females are much more disadvantaged
compared to their male counterparts.

These findings imply that despite nearly comparable incidence of diseases for males and
females, male children are brought to the health facilities by their guardians far more
frequently than female children. While less is known about the incidence of diseases by
gender, findings from Matlab (ICDDR, B) data do not show any sex differential up to 5 years
of age in terms of exposure to infections. Thus, one can assume that the probability of being
sick is more or less the same for male and female children. But the frequency of
hospitalization of male children (< 5 years) has been found to be much higher than among
cases involving females (60% males as against 40% females), which clearly indicate that in
terms of receiving health care, female children are especially disadvantaged compared to their
male counterparts.

Reproductive age bracket (15-49 years) is the only age group where female utilization exceeds
that of males. This can be explained by the fact that compared to their male counterparts,
females in the age group 15-49 years are more vulnerable to death and disease because of
pregnancy and associated health risks during and after delivery.

Figure 8.1: Utilization of Health facilities by Age and Gender

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Economic accessibility: From an economic perspective, healthcare utilization decisions
depend on the relative magnitude of costs and benefits involved from the standpoint of persons
who make these decisions to use healthcare for themselves or for others. The costs of seeking
care typically include financial expenses and income losses that may be incurred as a result.
Income losses can be high if considerable time is spent in commuting or standing in queues to
obtain medical care.

For the same reason, the amounts paid for healthcare services, such as consultancy fees and
hospital charges are also likely to be an important determinant of health care utilization. There
are other factors that influence healthcare utilization behavior. For people with higher
education, the perceived benefits from effective treatment and/or preventive care may be
higher than for the rest of the population. Benefits could be higher for individuals whose
health is considered intrinsically more important in certain cultural settings, as for people
belonging to higher socio-economic classes and for males. The perceived need for medical
care would depend both on the availability of healthcare facilities and the capacity to pay for
health services.

The cost of health care can be a strong determining factor of health care utilization, as well as
a cause of poverty. Ability to pay is a particularly important determinant of access when a high
proportion of health care is financed privately, and without any type of financial risk
protection from health insurance. In Bangladesh, 60% of total health expenditure in 2000 was
in the form of out-of-pocket payments by individuals (64% of total health expenditure was
from private sources), so that households’ ability to pay for care is important. There is
essentially no social security or private health insurance, although public hospitals are
intended to provide a form of insurance in case of serious illness.

Impact of treatment cost on household consumption: Expenditure incurred for health care
has some adverse impact on household consumption. The data as presented in Tables 8.5 and
8.6 shows the type of inconvenience households face in meeting their outpatient and inpatient
needs. Findings show that expenditure on health resulted in withholding of other subsistence
resources. Treatment costs have had adverse effect on other household consumption items for
70 per cent of inpatients and 12 per cent of outpatients. Among the inpatients who were
adversely affected because of hospitalization, food consumption was reduced or there was
inadequate food in 68 per cent of the households; expenditure had to be curtailed on other
essential household items for inpatients and 12 per cent of outpatients. Among the inpatients
who were adversely affected because of hospitalization, food consumption was reduced or
there was inadequate food in 68 per cent of the households; expenditure had to be curtailed on
other essential household items for another 64 per cent cases because of treatment cost, while
13 per cent households had to face problems in financing their children's education. Illness
requiring treatment and hospitalization has significant adverse implications for the economic
well-being of affected households and individuals, particularly for poor households.

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 Table 8.5: Problems Faced by Households Due to Health Expenditure: by Income
Groups

One way by which this occurs is in the form of out-of-pocket health expenditures for diseases
that are relatively expensive to treat or require hospitalization. Another way in which illness
can influence the economic well-being of affected households arises from incomes foregone
on account of the morbidity of affected members, or taking time off from work to care for the
sick. A single episode of hospitalization can account for 30 to 50 per cent of annual per capita
income, with the proportion being even higher for poorer groups. This can lead to tremendous
financial burden on poor households and indebtedness, sometimes resulting in liquidation of
their assets/property. This would certainly indicate that episodes of illness affect the economic
position of the households rather badly.

Table 8.6: Type of Problems Faced by Households due to Expenditures Incurred for
Treatment Purposes

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Disease burden on the poor: The poor bear a disproportionate share of the burden of ill
health and suffering. On the whole, 8.8 per cent of monthly household income was spent on
illness treatment. But the poorest households had to spend about 38 per cent of household
income to meet the treatment cost of illness episodes, which is a heavy burden by any
reckoning. On the other hand, the richest households spent only 3.4 per cent of household
income for treatment of illness episode. Again, the poorest households spent much less in
absolute sense for treatment purposes compared to the richest households (Tk 283 vs. Tk 572).
This is primarily because of the fact that due to very low income of the poorest group, most of
their income is spent on purchasing food and other daily necessities of life leaving very little
scope for spending on health care. The findings clearly indicate that members from the poorer
households have less access to resources available for health care and that they undergo a lot
of economic pressure to finance their treatment cost/medical needs. Thus, for low-income
households there is a real risk of indebtedness in times of illness requiring treatment.

The situation becomes really precarious for patients who need hospitalization. In the case of
inpatient treatment in a government facility, especially if surgical intervention is required, the
households have to incur a huge amount as out-of-pocket expenditures on medicines,
diagnostic tests and other related items. To meet the hospitalization expenses many households
have to borrow money and even liquidate their assets.

Any hospitalization in the household involves huge expenditure; both medical and non-
medical expenses and this can very badly affect the household budget. This brings us to the
question of providing financial protection to the poor households against such contingencies.
Insurance schemes to cover the poor and/or low-income households who are mostly in the
informal or unorganized sector can be devised. Also, even if the government hospitals want to
levy user charges, people below a certain income level should be exempt from paying such
charges and this could be achieved through proper targeting.
Figure 8.2: Percent of Household Income spent on treatment by Income

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(e) Ensuring Gender Equality

Efforts will focus on (i) ensuring rights of women for a better physical and mental health at all
stages of their life cycle, (ii) strengthening PHC for women with emphasis on reducing MMR
and IMR, (iii) strengthening reproductive rights and reproductive health of women at all stages
of population planning and implementation, (iv) addressing nutritional needs of women,
specially of lactating mothers and the adolescents girls, (v) preventing women from
HIV/AIDS and STD through awareness raising, and (vi) creating women-friendly physical
facilities at all public health complexes and improving access to health services for women
and girls. Moreover, efforts will continue to (i) communicate the importance of ANC, delivery
care and PNC to all household heads at the grass root level, (ii) give special training to service
providers at the community and higher levels on gender equity and (iii) include topics on the
health needs of both males and females and their impact on gender disparities in school
curricula. At present, DGHS is implementing women friendly hospital initiative activities for
promoting gender equality. Further steps will be undertaken for improving gender equality in
HPN in close cooperation of Ministry of Women and Children's Affairs. The existing Gender
Equality Strategy of the MOHFW will also be reviewed and revised appropriately.

(f) Budget and Financing

The share of budgetary allocation to the HPN sectors needs an upward rise year by year. It is,
therefore, imperative to adequately raise the share of HPN allocation to national budget in
phases, and gradually raise it to 12 per cent by 2015 from the present level of around 7 per
cent. Efforts will be taken to make the HPN allocation sex disaggregated. A significant part of
the increased budget will be devoted to improving supply of drugs in public hospitals,
especially for providing PHC services, with provision for strict monitoring of its utilization.
HPN Sector's financing by the government alone is insufficient to ensure improved health care
for all in Bangladesh. Expansion of private sector investment will help to bridge the gap in
needed resources for extending and improving the services. The government may consider
providing incentives (e.g., land at a lower price, bank loan, tax exemption for import of
electro-medical equipment, training to health professionals and workers, lump sum grant, etc.)
through a set of guidelines to the private sector engaged in health care service provision. In
rural areas HPN sector's financing will be raised through cost-sharing by well-to-do patients'
when they are treated in public hospitals. Moreover, the government (through a set of
guidelines) will encourage promotion of health insurance pilots at different levels. There is
substantial involvement of external funding in the health sector, e.g., project aid funds, global
funds, social business funds, etc. The government will welcome increase in such funding in a
harmonized way and well aligned with the national system.

(g) Public Private Partnership (PPP) in Health Sector

Role of private sector and public-private provision: The private health care sector
constitutes an important part of health care delivery system. Through a wide network of health
care facilities providing services in different systems of medicine, this sector caters to the
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growing demand for health care in both urban and rural areas.

In the private sector, providers can be grouped into three main categories: first, the organized
private sector which includes qualified practitioners of different systems of medicine; second,
the not-for-profit NGOs; and third, the private informal sector which consists of providers not
having any formal qualifications, such as untrained allopath, homeopaths and kobiraj etc.
known as Alternative Private Providers (APPs).

Most of the private hospital facilities are concentrated in urban areas and small in size in terms
of hospital beds. However, private clinics show lower lengths of stay and higher occupancy
rates than public facilities of comparable size. This indicates a greater degree of resource
efficiency in the private sector. However there is a lack of sensitivity to local needs in
providing service-mix, which is mostly guided by profit motive.

Evidence also shows that the doctors practicing in private sector prescribe excessive,
expensive and more risky drugs and often excessive diagnostic tests. Private health providers
operate in non-competitive market conditions that tend to exhibit oligopolistic behavior. This
allows them to maintain high prices and gaining higher profits. Therefore, efforts need to be
undertaken to regulate the provision of private health services in an appropriate manner
through regulation of service charges, quality of care, location and distribution.

The Sixth Plan will seek to develop effective partnership with the private sector by focusing
on the relative strengths of the two sectors and strengthening collaboration and coordination.
A major strength of the private sector is that private providers are more diverse in terms of the
services offered, training level of the medical staff, legal organizational status, and system for
medicine use. Private providers range from NGOs, mainly offering promotional and family
planning services, for-profit providers (both very small practices and large modern health
facilities) to traditional healers and homeopathic providers as well as licensed pharmacists and
unlicensed drug sellers. If PPPs are processed correctly, wide-ranging benefits may be derived
for all stakeholders. Benefits include efficiency gains; output focus; economies generated from
integrating the design, building, financing and operation of assets; innovative use of assets;
managerial expertise; and better project identification.

The following factors are important to consider as one proceeds along the challenging road of
PPP:

For government departments, PPPs must be an accessible, relevant, viable and beneficial
service delivery option.

The government’s focus should shift from managing the inputs to managing the outcomes,
i.e. becoming a contract manager rather than a resource manager.

There should be coherence and consistency in government policy and legislation when
introducing legislation and policies pertaining to PPPs.

For the users of public services, PPPs must result in accessible, affordable and safe health
services that meet acceptable quality standards leading to improved efficiency and
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 accountability to the public.

For private parties, PPPs should be sufficiently rewarding in relation to the investment
required and the risks undertaken.

Private sector bidders should be allowed and prompted to respond with imagination and
innovation.

For society, PPPs must promote goals such as social equity, economic empowerment,
efficient utilization of scarce resources, and protection of the environment.

Public private partnership for ESP in Bangladesh: With the introduction of Essential
Services Package (ESP), the Government of Bangladesh, Ministry of Health and Family
Welfare, has laid down the range of promotive, preventive and curative health services to be
made available to all. As already mentioned the ESP includes established services for
Reproductive and Child Health Services and Control of Communicable Diseases as well as
services for Prevention and Management of Non-Communicable Diseases and Injuries.

Promotive health services are integrated in all ESP components as a cross-cutting element.
They incorporate the approaches of IEC (Information, Education and Communication) and
BCCC (Behavioral Change Communication), but reach towards the more comprehensive
vision of Health Promotion. Essential promotive services are defined at three levels: (a)
Healthy lifestyles/self-management of health problems, (b) health and health related service
seeking behavior and equity of access, (c) advocacy for relevant regulatory and voluntary
standards regarding environmental and occupational health and product safety.

Four areas may be identified for private sector involvement in ESP services: (1) Inclusion of
private providers in capacity assessment and capacity development; (2) Contractual
arrangements for defined services–e.g., ambulance services, laboratory services, out–
contracting of Sub-Centers and Primary Health Care Centers; (3) Joint initiatives and
contributions–e.g. government (project) support to improve health and sanitation services for
vulnerable groups; (4) Promotion and support of social responsibility in business and
corporate activities; e.g. concerning food safety, pollution control, occupational health and
work place policies. In this context, it is worth mentioning that, out contracting of sub-centers
and primary health care center needs consultation among the policy makers, service delivery
providers and professional bodies. Repair and maintenance of electro medical equipment and
out house management of medical waste will be considered for the private sector.

Informal private sector: It is well known that APPs provide the majority of health care in
Bangladesh, especially in rural areas. The majority of the APPs do not have any formal
education in their system of medicine, though a significant proportion has received some semi-
formal training. They charge a very small consultation fees, and a greater share of their income
comes from selling medicines. Poor people at a large proportion seek medical care from the
APPs. The results indicate a very low quality of care among the APPs. However, the
allopathic drug vendors usually perform better than the homeopaths and traditional providers
in case of common ailments.
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Private informal sector, therefore, mobilizes a considerable portion of out-of-pocket
expenditure from households that is largely ineffective. It is estimated that 40% bottom
poorest households contribute 40% of total health expenditure, which may otherwise be
mobilized through community health insurance program for the poor.

(h) Health Care Services through NGOs

Voluntarism in Bangladesh has its roots in her social, religious and economic conditions.
Individualized and ad-hoc voluntary activities in the form of giving money or food are quite
common so is helping someone from one’s village or distantly related. There are also
organized group-oriented voluntary activities spread across Bangladesh.

Compared to voluntary organizations, NGOs are associations of persons, who comes together
through the initiative of one or more dedicated persons. NGOs are run in a professional
manner. Their staffs are hired for their professional skills and expertise. NGOs ability to reach
poor and vulnerable groups and emphasis on participatory mode has been appreciated.

NGO sector: In health care delivery, many NGOs have displayed innovativeness and cost-
effectiveness. The collaborations between the MOHFW and NGOs in strengthening family
planning, EPI, TB and leprosy activities have been effective through active involvement of the
communities. Community health workers can also motivate communities to better utilize
government health services. These workers through increasing contacts with the local
population could expand the coverage of health and family planning services while reducing
the dependence on government employees. Therefore, such contacts should continue to play
an important role in the provision of services to under-served and disadvantaged sections of
the community.

Recently, the Government has been increasing NGO involvement in providing primary and
community-based health care and nutrition services. There has been noteworthy collaboration
with NGOs, in BINP, social marketing of contraceptives and urban primary health care. These
initiatives require further scaling up and lessons from these experiences may be replicated in
other areas of concern. The community-based organizations can be involved in monitoring the
quality and coverage of services.

NGO services in the health sector have largely been confined to consultations and raising
awareness, as major treatments need huge investment. Collaboration between government and
the private sector is observed in health care delivery. However, collaboration of the public
sector with private sector has not been satisfactory. The range and extent of public sector
collaboration with the private sector in the area of health, nutrition and population (HNP) is
incongruent with their importance. The major interactions were in terms of regulations of
private clinics and hospitals. Informal (or less formal) providers such as non-allopathic
practitioners, traditional birth attendants, drug vendors have had very little interaction with
government. Thus, the public-private collaboration failed to include agents who are most
important for the poor. Appropriate public policies are needed to raise the effectiveness of the
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private sector’s contribution to public health goals.

In health and family welfare sectors NGOs have been contributing significantly. NGOs were
given the responsibility to run family welfare centers, in terms of reaching the eligible couple
at door steps, which saw increase in contraceptive usages. NGOs are playing a significant role
in providing urban primary health care in four largest cities in Bangladesh – Dhaka,
Chittagong, Khulna and Rajshahi. In addition, some hospitals are run by NGOs and these also
provide highly subsidized curative care to urban poor and others.

POPULATION PLANNING AND WELFARE

Recent trends in fertility: An examination of trend of fertility by looking at the estimates of

TFR over the past three decades shows that it declined by 57 per cent during the period 1975-
2004, at the rate of 1.8 per cent per year (Table 8.7). The pace of decline was steeper during
the 1980s and early 1990s and since then it remained stalled until 1999. But the decline started
again in 2001 and continued till 2006.

A comparison between age-specific fertility rates of 1975 and 2007 indicates that compared to
1975 age-specific fertility rates in 2007 fell steeply in all age-groups and particularly among
older age groups, with the exception of the 15-19 age group which increased by 16%. The age
pattern of fertility has shifted towards early childbearing and fertility of older women has
reduced sharply over the years.

An examination of the decline in cumulative fertility by age cohort for selected survey years
shows a consistent pattern of declining trend in fertility, which fell from a mean number of
ever born children of 3.8 in 1975 to 2.3 in 2007, a decline of 40 per cent. The cumulative
fertility declined in all age groups including 15-19 age groups. The reduction of fertility is
steeper with the increase in age of women, it declined by nearly three children in the 35-39 age
groups. A comparison of completed cohort fertility (4.9) with current fertility (2.7)
demonstrates that fertility level has fallen substantially during the recent past. A comparison of
completed fertility between 1975 and 2007 shows that it declined by less than two children or
27% between these periods. A drawback of the cohort measure is that it is primarily affected
by childbearing levels in the past. However, completed fertility level has the advantage that it
is the real measure of fertility, while TFR is a hypothetical measure and is subject to various
biases.

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 Table 8.7: Trends in Current Fertility Rates

A comparison between age-specific fertility rates of 1975 and 2007 indicates that compared to
1975 age-specific fertility rates in 2007 fell steeply in all age-groups and particularly among
older age groups, with the exception of the 15-19 age group which increased by 16%. The age
pattern of fertility has shifted towards early childbearing and fertility of older women has
reduced sharply over the years.

An examination of the decline in cumulative fertility by age cohort for selected survey years
shows a consistent pattern of declining trend in fertility, which fell from a mean number of
ever born children of 3.8 in 1975 to 2.3 in 2007, a decline of 40 per cent. The cumulative
fertility declined in all age groups including 15-19 age groups. The reduction of fertility is
steeper with the increase in age of women, it declined by nearly three children in the 35-39 age
groups. A comparison of completed cohort fertility (4.9) with current fertility (2.7)
demonstrates that fertility level has fallen substantially during the recent past. A comparison of
completed fertility between 1975 and 2007 shows that it declined by less than two children or
27% between these periods. A drawback of the cohort measure is that it is primarily affected
by childbearing levels in the past. However, completed fertility level has the advantage that it
is the real measure of fertility, while TFR is a hypothetical measure and is subject to various
biases.

Effects of population momentum: Achieving faster reduction of population growth will

require attaining replacement level fertility as well as addressing the effects of population
momentum. Even if replacement level fertility is achieved in the near future, the population of
Bangladesh will continue of grow due to the effects of population momentum as the
proportion of women in the reproductive age group will continue to grow until the population
stabilizes. However, the eventual size of the stable population hinges on the time of attaining
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replacement level. The age composition of the population undergoes changes with the progress
in demographic transition. The proportion of population under age 15 has declined from
46.7% in 1981 to 39.1% in 2001 due to reduction in fertility. On the other hand, the proportion
of population in the economically active age group has marked an increase from 47.7% in
1981 to 54.4% in 2001, while there is a slight increase in the proportion of older population
(>60).

The changes in the age distribution of the population have many socio-economic implications.
First, the age-dependency ratio of the population has declined from 109 in 1981 to 83 in 2001.
Second, it has resulted in an increase in the young and working age population which can
create a virtual cycle of growth, known as demographic dividend. Third, the higher size of
women in the reproductive age group will mean that the population will continue to grow until
population stabilization takes place, say by the year 2050. The level of fertility will remain
high at the initial stage due to tempo effect caused by the downward shift in mean age at
childbearing. Hence, the effect of momentum can be reduced by delaying the first birth as well
as widening birth spacing.

Population Management Strategies and Policies in the Sixth Plan

Recognizing the significance of the population problem, the government has initiated updating
of the population policy to reflect recent realities and ensure effective delivery of population
control and reproductive health services. Population as number one problem will be re-
emphasized with undertaking of appropriate multi-sectoral programs to address the problem. It
is expected that TFR will be reduced to 2.2 in 2015 from current 2.7 (2007) to attain
replacement level fertility. To address the "Population momentum effect", measures will be
undertaken to increase retention of girls in secondary schools and provide employment
opportunities to young women, delay in marriage and childbearing, encourage spacing and
limit family size. Mobilizing high political commitment, the entire nation is planned to
energize to contribute to this effort.

The re-commissioned community clinics will address the challenges in the population sector
with renewed thrust. Target-oriented population planning programs will be strengthened to
achieve the goal. The large geographic variations in fertility and related factors and in use of
contraception indicate the need for differential strategies both for information and motivational
efforts and for service delivery. For example, in Sylhet and Chittagong age at marriage is
higher than the national average, but fertility was also higher indicating a need to focus on
lowering fertility within marriage. And high 'unmet need' (17.1%) indicates that service
delivery in these districts needs to be strengthened. District specific strategies will be
undertaken to address local constraints such as, poor access to services during certain parts of
the year.

To achieve contraceptive prevalence rate of 74%, dropout will be reduced through door step
service delivery, supportive supervision and motivational works with information on side

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effect. Service delivery will be enhanced to the hard to reach areas, hilly and riverine areas as
well as low performing areas. Quality services delivery will be ensured to the target groups by
segmenting the client on the basis of sexual, educational, geographical location,
socioeconomic status, age of parity and particularly the ultra poor and illiterate clients. Besides
these, proper counseling and motivation will be continued to increase the age of marriage and
child bearing and also to cover the unmet needs of the couples with GO-NGO collaboration
along with local leaders' involvement. The major impact on fertility reduction could be
achieved by rising age at marriage and by bringing the couples into contraceptive uses those
have unmet needs for family planning services. These will push up both age at first birth and
CPR and thereby again trigger a tempo effect to bring fertility down. Bangladesh has great
scope to reduce early marriage, where at present 50 percent of teenage girls (15-19 years) are
married compared to other developing countries. Moreover 17.1% couples have unmet-Needs
for FP services of which 6.8% for spacing purposes and 10.8% for limiting their births. They
are the potential couples to adopt longer acting and permanent FP methods. If all of those
women having unmet need to space or limit their births, are to use FP methods the CPR would
rise to 74 percent with the share of longer acting and permanent methods which is about to the
desired level of CPR for achieving replacement level of fertility.

Emphasis will be given on delaying age at marriage for which coordinated inter-sectoral
efforts will be needed. Thus each district and in some cases groups of Upazilas require specific
strategies on which to develop action plans. In this context, special attention should be given
to Sylhet and Chittagong division as the TFR of these two divisions are higher than the
national average. Contraceptives along with FP services will continue to be made widely
available and further expanded to the poor and the marginalized population in both rural and
urban areas and different regions and to meet the un-met need. Procurement and logistics
supply management will be strengthened to avoid stock-out of contraceptives. Alternate
methods of public sector distribution of contraceptive commodities will be explored. Efforts
are underway to popularize the slogan of having one child per couple. The existing FP
program will be expanded and strengthened involving both men and women, and will be
popularized through an intensive motivational campaign under the BCC program. Long
Acting and Permanent Method (LAPM) playing vital role to achieve national target
replacement level of fertility of 2.2 per woman by the year 2015. To achieve CPR 74%
method-mix proportion of all modern contraceptive methods has to be made with giving
special emphasis on LAPM. However through method mix of different family planning
methods, TFR of 2.2 can be achieved even if the CPR is below 74%. Low use effectiveness of
oral pills, condoms and injectables and their discontinuation rates are major constraints in
declining of fertility though the use rates of those methods are highest. It is expected that by
performing long acting and permanent method that is VSC, IUD, Implant with 20% share in
method mix CPR the replacement level TFR of 2.2 per woman could be achieved with in
2015. The SFYP emphasizes on the availability of family planning services and to make such
services and materials available to the general mass at an affordable price. Achievement of
replacement level of fertility could only be possible by regaining the momentum of the robust
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FP-MCH program supported by public information and motivation campaign to bring about
overall changes in attitude and awareness creation among all stake-holders; and also requires
cross-sectoral efforts for raising quality female education and employment.

Reproductive health problem remain the leading cause of ill health and death for women of
childbearing age. Impoverished women, especially the marginalized rural populations suffer
disproportionately from maternal death and disability, sexually transmitted infections,
unintended pregnancy and nutritional deficiencies.

United Nations through its Millennium Development Goals (MDG) call for a 75% reduction in
maternal mortality between 1990 and 2015. A three-pronged strategy is key to the
accomplishment of the goal:

All pregnant women have access to skilled care at the time of birth

All those with complications have timely access to quality emergency obstetric care

All women have the access to the contraception to avoid the unintended pregnancies

Under MDG, child mortality will have to be reduced by two thirds between 1990 and 2015. To
achieve the MDG 4 & 5 and also vision 2021 goals and targets under SFYP require new
infrastructure development, recruitment of adequate doctors and paramedics and changes in
supply of drugs and other MSR.

Comprehensive EOC services and other Reproductive Health (RH) services through Mother
and Child Welfare Center (MCWC) at district, Upazila and also in some selected union level
are satisfactory in rendering the quality of care. To meet the future need, MCWCs require to
be expanded with more beds and trained manpower. One Consultant (Obs/Gyn) along with
one Consultant (Anesthesia) and one Medical Officer (trained in Paediatrics) supported by
Four Diploma nurses with existing manpower can able to bring tangible changes in maternal
mortality, morbidity and other RH indicators.

To increase the institutional delivery, Union Health and Family Welfare Centers (UH&FWC)
need to be upgraded with the provision of trained midwifery nurses. This should be considered
as the first line referral center bridging the services between Community Clinics and Upazila
Health Complex and district level hospital MCWCs.

Adolescent Reproductive Health Strategy should be implemented in the form of services in the
community. It is estimated that the Adolescent are in the state of population momentum in the
population pyramid and need to be addressed vigilantly. In addition, emphasis will be given on
treating various diseases like that of breast cancer ovarian cancer, cervical cancer etc. Many
new activities are to be incorporated in line with the budgetary allocations.

A comprehensive digitalization of information system can able to identify the gaps in service
delivery and also ensure effective monitoring and supervision. Mapping of all the service
facilities with extensive networking may able to bring major changes in maternal mortality and
morbidity.
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Government has strong commitment to supply essential drugs through primary care unit to
every citizen of the country. At each service delivery center, essential drugs through DDS kit
need to increase in quantity every year keeping pace with the increasing number of population.
Beside this, there are drugs for RTI/STD case management. Also there are provisions of drugs
for under five child care in the DDS kit. Adequate supply of Mounimix to the children can
reduce the prevalence of childhood anemia.

In order to provide information and services on FP-MCH catering specially to the needs of the
rural poor, community clinics are being constructed for every 6,000 population throughout the
country. Out of 13,500 community clinics already 8,464 community clinics are functioning
and 2876 more community clinics will be constructed within a short span time. To aware the
people about the services available in these clinics and to involve the communities, proper IEC
activities should have taken.

The National Communication Strategy for Family Planning and Reproductive Health has been
developed and accordingly IEC activities for the year 2010-2015 have been considered. This
will promote MCH-FP based services as well as provide need based IEC support and increase
community participation in the ongoing family planning program. So major thrust has been
given to some of the main issues as follows:
• To promote reproductive health care by strengthening IEC support at all levels with the
emphasis on Adolescent Reproductive Health Care,
• To promote Family Planning through strong advocacy programs,
• To improve nutritional status (calorie intake) of the people through IEC interventions,
• To promote services offered by Community Clinics
• To increase IEC Knowledge among the service providers and develop the community
groups through IEC advocacy workshop in support of "The Sixth Five Year Plan". In this
regard some strategic components are incorporated in this program which will facilitate the
process of implementation of "The Sixth Five Year Plan". These events are as follows:
a) Audience Survey (IEC program) b) Providers ownership c) Social ownership, d)
Involvement of Print media, Population, Health & Nutrition Cell of Bangladesh Betar,
Private Radio channels, BTV, and all Private TV channels.

Efforts will be undertaken to have required human resources for the effective delivery of the
program. Moreover through appropriate coordination with the health department and through
their support of trained human resources, issue of lack of skilled providers will be resolved
and all opportunities to offer permanent and long term methods will be utilized. Opportunities
will also be explored to optimize and expand partnerships with the social marketing network
particularly in urban and peri-urban areas that are relatively underserved.

NUTRITION ISSUES AND MANAGEMENT IN THE SIXTH PLAN

Overall Nutritional Status and Challenges

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There is no denying the fact that malnutrition has multitude of linkages to poverty. Chronic
energy deficiency is directly related to the inability of involvement in income generation
activities and learning capacity. Malnutrition is an underlying cause of childhood illness and
maternal mortality. Therefore, strategies targeted towards improving nutrition have positive
impact towards eradication of poverty.

Despite several natural calamities and high food prices, Bangladesh has achieved a slow but
sustained reduction in prevalence of underweight and stunting. However prevalence of
malnutrition is still alarming and it is even higher than countries like, Nepal, Cambodia,
Ethiopia and Uganda. Bangladesh is placed in the bottom 25% of the Global Hunger Index
and that signifies its vulnerability in the context of recent food price hikes.

Chronic energy deficiency, protein-energy malnutrition, low birth weight, micronutrient

deficiency are critical issues faced by Bangladesh. Although it affects people of all ages, the
children, women and female adolescents are mostly affected. Of the various micronutrient
deficiencies, vitamin A, iodine deficiency disorders, iron deficiency anemia are major
concerns, imparting cognitive development in children and threatening life to pregnant
women.

Though the nutritional status of children is improving, the MDG goal of reduction of child
malnutrition remains a formidable task. In order to achieve the MDG of halving the proportion
of people suffering from hunger between 1990 and 2015, Bangladesh needs to make
significant progress in the context of meeting basic nutritional requirement of its people. As of
2009, 45% of children under five years of age are found to be underweight where the
corresponding figure for 1990 was 66%, indicating considerable progress over the last two
decades. This decline was however not quite smooth- it fell drastically between 1992 and 2000
but since 2000 the fall has been quite slow and in the 2005-2009 periods there has hardly been
any improvement. Against this backdrop, it seems unlikely that Bangladesh will reach the
MDG target of 33% prevalence rate by 2015. The key impediments towards achieving such
target are lack of access to health care facilities, especially in rural areas, inadequate and
nutritional deficient food intake, inaccessibility of safe water and sanitation practices and
absence of better breast-feeding practices. Another crucial factor behind child’s nutrition is the
nutritional status of mother and malnutrition among pregnant women is another serious issue
where the performance of Bangladesh is far below satisfactory.

In terms of Bangladesh’s progress towards achieving the MDGs, the ‘Countdown to 2015’
report of the UNICEF (2008) considered Bangladesh as a country which is ‘making progress’
in terms of goal 4 of MDG on child mortality and which is ‘on track’ for achieving goal 1 of
MDG on underweight. However, in order to attain the MDG goal, it is also essential to
improve the calorie intake of adults. Between 1990 and 2005, there was a modest decrease in
the population not obtaining the minimum level of dietary energy consumption (2,122
kcal/day) from 48% to 40% (HIES 2005). In terms of more acute benchmark of dietary intake,
the proportion of people consuming less than 1,805 kcals/day has declined by 8-percentage
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points within the same time period and was 20% in 2005. Despite the aforementioned
progress, it is highly optimistic to assume that Bangladesh will meet its targets for halving the
proportion of the population below the minimum level of dietary energy consumption by
2015. In this context, a recent study conducted by FAO (2009) has estimated an increase in the
number of food-insecure people by 7.5 million in 2007-08 from the previous year.

The high prevalence of under-nutrition also poses serious threat towards achieving the MDG
goal of reducing under 5 mortality rate by two-thirds between 1990 and 2015. The BDHS
2007 found that 41% of children under-five years of age were underweight, while a national
Household Food Security and Nutrition Assessment found a comparable underweight
prevalence of 38% for this age group. As a result of infections and poor intake of food rich in
iron and folic acid, anemia affects around 46% of pregnant women, 39% of non-pregnant
women, and almost one-third of adolescent girls in Bangladesh. The nutritional status of girls
affects the nutritional status of the adolescents and women they become. Their nutritional
status during pregnancy, in turn, affects intrauterine development. Pregnant women with poor
nutritional status face greater risks of complications during pregnancy and childbirth leading
to low birth weight and increased neonatal mortality. The lifecycle approach to child and
adolescent development is essential to address the overall issue of reducing maternal and
neonatal mortality.

Further to the above mentioned issues, the existing levels of population with the problems of
underweight, stunting and wasting are also quite formidable. Bangladesh is in the 4th position
after India, Indonesia, and Nigeria of the list of 36 countries having stunting prevalence
greater than 20% as about 9 million Bangladeshi children are stunted. In addition, rates of
wasted children also found to be quite high, especially in the aftermath of natural disasters and
in the lean season. In spite of the reduction of underweight children from 43% to 36%, and for
stunted children from 48% to 46% between 2004 and 2007, there is no evidence of reduction
in wasted children in corresponding years.

Under-nutrition in pregnant women often results in infant born with a low birth weight. Low
birth weight greatly increases risk of neonatal death and is an important cause of poor growth
and development in later childhood, even with consequences for later life. Over the years, the
body-mass index of women with measurements less than 18.5% has declined by 4-percentage
points to 30% in 2007. This is still quite a high percentage and therefore as a consequence
indicates high risk of malnourished children. Such figures are largely a reflection of
micronutrient deficiencies among Bangladeshi women and as high as 46% pregnant women,
39% non-pregnant women, and 39.7% of adolescent girls are found to be anemic. The
consequence of such deficiency is high maternal mortality, infant mortality, malnourished
children and finally unhealthy adults.

The Government is planning to accelerate the progress in reducing the persistently high rates
of maternal and child under nutrition by mainstreaming the implementation of high-impact
evidence-based nutrition interventions into health and family planning services, scaling-up the
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provision of community based nutrition services, updating the National Plan of Action on
Nutrition in the light of food and nutrition policies, amongst other important priority actions.

Nutrition service will be mainstreamed with the DGHS and DGFP. All facilities under DGHS
and DGFP providing MNCH services will be made available for integrated nutrition service
delivery. For this, the Directorates will be staffed with adequately trained personnel who
possess the necessary technical as well as management skills to mainstream the nutrition
services. Both the Directorates will streamline and strengthen nutrition service through their
regular channels and identify respective focal points at the level of program managers for
monitoring and coordinating nutritional services/activities.
The strengthened nutrition service will be housed in the DGHS and implemented through an
OP titled “National Nutrition Service (NNS)”. The overall leadership of NNS will be provided
by the Line Director, NNS who will oversee the delivery of the program, manage the budget
and maintain liaison with other LDs of DGHS and DGFP implementing nutrition activities and
with the Program Managers (Nutrition) respectively. The LD, NNS will report directly to the
Director General of DGHS. The NNS will coordinate its activities with the activities of
MNCH related OPs of DGHS and DGFP. In addition, NNS will become part of other national
plans of action, notably the National Food Policy Plan of Action (2008 -2015). One of the
medical officers of the UHC will be designated as medical officer (public health and nutrition)
and assigned the responsibility of coordinating NNS activities at upazila level and below,
while the nutrition officer (under DGHS) will be responsible for the technical management of
nutrition activities.
As like current arrangements, area based nutrition activities will be performed by the health
personnel working in the CCs and through the NGOs contracted for community based IMCI
work. Scaling up of the NNS will be done in the remaining Upazilas, with particular priority
given to remote and poorer areas. The NNS will also include the (i) facility based services, (ii)
training of staff in nutrition and (iii) the development of relevant manuals, micronutrient-
related activities, research and surveillance. Capacities of UHC and district hospitals will be
strengthened to adequately manage severe malnourished cases. Effective nutrition surveillance
will be developed as part of the existing surveillance system.

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Strategies for Improving Nutritional Status
Improving Maternal and Infant Nutrition: Longer term interventions with nutrition and poverty
alleviation objectives contribute to reduction in child malnutrition. However, child nutrition is
strongly related with maternal nutrition and therefore malnutrition among pregnant and
lactating mothers should be strongly dealt with. The priority interventions in this context are:
• Iron-folic acid supplementation among pregnant and lactating women and adolescent girls
will be undertaken through health and family planning facilities. Such programs will be
strengthened through complementary policies to regular programs e.g. community based
programs to cover the hard-to-reach vulnerable communities.
• Post partum Vitamin A distribution to improve vitamin A status of neonates through breast
milk will be scaled up.
• The national strategy for infant and young child feeding will be implemented.
• Early initiation and exclusive breast-feeding up to six months of age will be encouraged.
• Supplementary feeding for malnourished and marginalized pregnant and lactating women
through strengthening and scaling-up maternal iron and foliate supplementation will be
introduced.
Strengthening Institutional Capacity: Combating malnutrition and child mortality certainly
requires improving the bureaucracies and administrative complexities. Given the large
numbers of malnourished mother and children and high under 5 mortality rate, the best
institutional strategy would be to implement assistance programs at both facility and
community levels. The SFYP in this context will take the following strategies:

• The institutional home for nutrition within the MOHFW will be identified and
responsibilities of the selected institute will be expanded and capacity will be developed.
• Roles and responsibilities of other stakeholders for nutrition will be specified with
arrangements of appropriate coordination and synergistic action.
• Capacities of Upazila health complexes and district hospitals will be strengthened to
adequately manage severely malnourished cases.
• Effective nutrition surveillance will be developed.
• All types of health workers (health assistants, family welfare assistants, assistant health
inspectors, family planning inspectors, family welfare visitors, medical assistants/sub-
assistant community medical officers) will be appropriately trained in nutrition education.
• The value of women status in reducing malnutrition and dissemination of proper
knowledge about nutrition amongst the citizens will be strengthened.
• Appropriate inter-sectoral collaboration will be established for controlling prices of food
grains and products and for ensuring food security.
• A comprehensive nutrition policy will be formulated.

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• Strategies will be designed to link nutrition programs with safety net programs of the
government, e.g. Vulnerable Group Development Program. In this context problems
related to leakages and mis-targeting will be seriously taken care of.
• Nutrition interventions which are interlinked with food-based, economic empowerment
programs should be strengthened and should be targeted towards the most vulnerable
communities and districts.
• Division specific nutritional management program will be introduced with more
vulnerable regions receiving priorities in terms of allocation of development expenditure.
• Information systems related to food security and nutritional issues will be strengthened.
Improving Overall Nutritional Status: With a view to combating malnutrition and various
diseases related to nutritional deficiency, the SFYP will undertake several strategies, focusing
primarily on the nutritional status of children:
• Existing half-yearly Vitamin A capsules distribution for children will be continued.
• Age specific complementary feeding and micronutrient supplements for children will be
introduced.
• Monitoring of universal iodization of edible salt will be strengthened to ensure quality
through adequacy of potassium iodide in salt.
• Zinc for treatment of diarrhea will be adequately promoted. With the coverage of IMCI,
zinc tablets are expected to provide free to children with diarrhea.
• Community management of severely acute malnutrition in children through therapeutic
and supplementary feeding will be emphasized.
• Complementary feeding will be linked to multiple micronutrient supplementation
programs to improve the quality of diets of children aged 6 to 23 months.
• Strategies to increased coverage of access to safe water and improved sanitation in urban
slums and rural areas will be under taken.
• Emphasis will be given on local homestead food production.
• Nutrition education to promote diet diversity will be encouraged.
• Preventive and Therapeutic interventions while incorporating the seasonal dimension of
malnutrition will be designed.
• Translating nutrition related research into action.
Treatment of Severe Acute Malnutrition: Mainstreaming the implementation of nutrition
interventions into health and family planning services will ensure more coordination in the
treatment of moderate and severe acute malnutrition at the health facility as well as community
level. At the health facility level, children with severe acute malnutrition and who have
additional medical complications will be treated according to internationally recommended
protocols. At the community level, the GOB will address community-based management of
acute malnutrition through the community based IMCI program.

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BCC to Promote Good Nutritional Practices: Social mobilization and behavioral change and
communication activities at health facility and community levels will be implemented to
promote good health and nutrition practices. Specific behaviors to be targeted will include;
promotion of exclusive breast feeding for 6 months and continued breastfeeding up to 2 years;
introduction of complementary foods of adequate nutritional quality and quantity after the age
of 6 months; and improved hygiene practices including hand washing.
Mainstreaming Gender into Nutrition Programming: Gender and nutrition are closely
associated in Bangladesh, and there are strong linkages between a woman’s status and both her
health and her children’s nutritional outcomes. Therefore, both the health facility and the
community-based nutrition interventions will involve all community and household members
who are responsible for decision making and those who can influence maternal, infant and
young child feeding practices as well as other nutrition behaviors. Such an approach will
ensure that the concerns of men and women, when it comes to household food and nutrition
security, are considered as the joint responsibilities for the nutritional well-being of all
household members of men, women and the community as a whole.
INSTITUTIONAL ARRANGEMENTS FOR MONITORING PROGRESS WITH
IMPLEMENTATION OF HPN PROGRAMS IN THE SIXTH PLAN

Establishing a functioning system of coordination among health, nutrition and family planning
and between other Ministries (notably MOLGRDC) at all levels of service delivery, including
DPs and UN agencies, NGOs and the private sector will be required to avoid duplication and
diversify service delivery and to enhance performance. MOHFW will continue its effort to
strengthen inter-ministerial coordination through the Secretary’s Committee Meetings and
holding inter-ministerial meetings at a regular interval. Moreover, a separate coordination
mechanism will be developed during the next sector program with the MOLGRDC for
improving the urban health service in Bangladesh.
Different directorates and departments (like Directorate Generals of Health and Family
Planning, Directorates of Nursing and Drug Administration, National Nutrition Program,
NIPORT, CMMU etc.) under the MOHFW will continue to monitor implementation under the
supervision of respective heads of the institutions. Annual Development Program
implementation progress review will be done on monthly under the chairmanship of the
Secretary, MOHFW.
The MOHFW has developed a Result Framework (RFW) for HPNSDP at program as well as
at Operational Plan (OP) levels. An effectively functioning unit in the name of Program
Management and Monitoring Unit (PMMU) will be established in MOHFW, equipped with
adequate skilled professionals and logistics, to work on program management and monitoring
of different indicators. The Implementation Monitoring and Evaluation Division (IMED) will
continue to play a vital role in routine monitoring of activities of the HPNSDP. In addition, the
MOHFW will conduct routine surveys to assess the progress of the HPN related indicators.
The LCG sub-group on Health will provide a platform for continuous GOB-DP dialogue in
order to promote harmonization and alignment of activities. This LCG-sub-group will
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facilitate and coordinate the overall development program of the HPN sector in Bangladesh
through effective policy formulation. Two co-chairs will lead the working group, one
representing the DPs and the other representing GoB.
An external and independent review of the sector program will be conducted annually (APR)
and at mid-term (MTR). The review will be undertaken by independent international and
national consultants, during a period that will allow its conclusions and recommendations to
be included in the annual revision of the Operational Plan by the various LDs. The review will
be followed by a ‘policy dialogue’ and the development of an agreed joint action plan (Aide
Memoire) by the MOHFW and DPs that is subsequently used for the new annual work plan
along with the budget (ADP) relating to the OPs.
Various joint task groups and technical committees operate under the sector program. The
most important Task Groups are: MNCH, Nutrition, Public Health, M&E, HRH, HFRG,
Procurement, Financial Management and Gender, Equity and Voice and QM. These
arrangements will continue to work during the next sector program and additional task groups
may also be formed with new membership when new issues and challenges arise.

ALLOCATION OF DEVELOPMENT RESOURCES FOR HEALTH SECTOR IN THE

SIXTH PLAN

As in most countries, much of health care pending will come from the private sector. Public
sector spending will be strategically focused on meeting the key social health concerns. Under
the SFYP, goals of Health and Family Planning sector is to reduce morbidities and mortalities,
especially those of infant, child and maternal, reduce population growth rate and to improve
nutritional status especially those of women and children. In order to fulfill such goal and to
meet the strategies and policies, the planned development budget allocations over the Sixth
Plan period in current and constant prices are shown in Table 8.8 and Table 8.9.

Table 8.8: Development Expenditure Allocation of Health Sector in the Sixth Plan
(Crore taka; current price)

Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015

Health & Family 3473 4499 5404 6823 8361
Welfare

Table 8.9: Development Expenditure Allocation of Health Sector in the Sixth Plan
(Crore taka; FY2011 prices)

Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015

Health & Family 3473 4185 4698 5570 6439
Welfare

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 CHAPTER 9: REACHING OUT THE POOR AND
THE VULNERABLE POPULATION

INTRODUCTION

Poverty is the single most important socio-economic policy challenge for Bangladesh.
Bangladesh has been struggling for a long time to reduce the incidence of poverty and to
improve the living standards of its millions of impoverished citizens. In recent decades,
Bangladesh has made significant progress in reducing poverty where the percent of population
living below the poverty line went down from more than 80 percent in early 1970s to 31.5
percent in 2010 (Table 9.1). However, Bangladesh still faces the reality that 46.8 million of its
population live in poverty.

Table 9.1: Headcount Poverty Rate (%)

Year Rural Urban National
1973-74 82.9 81.4
1981-82 73.8 66.0
1991-92 58.7 42.7 56.6
1995-96 54.5 27.8 50.1
2000 52.3 35.2 48.9
2005 43.8 28.4 40.0
2010 35.2 21.3 31.5
Source: Different HES, HIES

The decline in poverty in Bangladesh stems in large part from strong, decade-long economic
growth. The economy’s expansion during the 1990s – on average annual real GDP increase of
almost 5 percent – meant a rise in real per capita GDP of 36 percent or twice the average rate
of other low-and middle-income countries during the same decade. This impressive
performance was fueled by large jump in real GDP in the expanding industrial sector where
the output of export-oriented ready-made garment (RMG) enterprises grew by double-digit
increments. Also, remarkable growth in the inflow of remittances helped reduce headcount
poverty.

Despite the progress in alleviation of poverty, Bangladesh still has a larger proportion of
people living below the poverty line income defined as $1.25 a day compared to many
developing countries (Figure 9.1).

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 Figure 9.1: Poverty headcount ratio at $1.25 a day (PPP) (% of population) in 2005

Source: World Bank, World Development Indicators

The other dimension of poverty is the spatial distribution of poor beyond the urban-rural
divide. This concerns the distribution of poverty by districts and divisions. The data suggests
an East-West divide in the distribution of poverty, with a significantly higher poverty
incidence in the Western Divisions of Rangpur, Barisal, Khulna and Rajshahi as compared
with the Eastern Divisions of Dhaka, Sylhet and Chittagong (Table 9.2).
Table 9.2: Distribution of Poverty by Divisions
Poverty 2000 2005 2010
line and
National Rural Urban National Rural Urban National Rural Urban
division
Using the Lower Poverty Line (Extreme Poverty)
National 34.3 37.9 20.0 25.1 28.6 14.6 17.6 21.1 7.7
Barisal 34.7 35.9 21.7 35.6 37.2 26.4 26.7 27.3 24.2
Chittagong 27.5 30.1 17.1 16.1 18.7 8.1 13.1 16.2 4.0
Dhaka 34.5 43.6 15.8 19.9 26.1 9.6 15.6 23.5 3.8
Khulna 32.3 34.0 23.0 31.6 32.7 27.8 15.4 15.2 16.4
Rajshahi 42.7 43.9 34.5 34.5 35.6 28.4 16.0 16.4 14.4
Rangpur - - - - - - 27.7 29.4 17.2
Sylhet 26.7 26.1 35.2 20.8 22.3 11.0 20.7 23.5 5.5
Using the Upper Poverty Line
National 48.9 52.3 35.2 40.0 43.8 28.4 31.5 35.2 21.3
Barisal 53.1 55.1 32.0 52.0 54.1 40.4 39.4 39.2 39.9
Chittagong 45.7 46.3 44.2 34.0 36.0 27.8 26.2 31.0 11.8
Dhaka 46.7 55.9 28.2 32.0 39.0 20.2 30.5 38.8 18.0
Khulna 45.1 46.4 38.5 45.7 46.5 43.2 32.1 31.0 35.8
Rajshahi 56.7 58.5 44.5 51.2 52.3 45.2 29.7 29.0 32.6
Rangpur - - - - - - 42.3 44.5 27.9
Sylhet 42.4 41.9 49.6 33.8 36.1 18.6 28.1 30.5 15.0
Source: BBS, HIES 2005 and HIES 2010

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A yet another aspect of the poverty profile is the hard core or ultra poor. These are the poorest
of the poor category and are characterized by much deeper impoverishment and deprivation
than the normal poor. They are also amongst the hardest to reach by the normal growth
process and would likely require targeted poverty reduction programs. Locating these poor and
targeting policies and programs to lift them from the poverty trap is a real challenge and
requires concerted efforts. Table 9.2 also suggests that in 2010 there were still 17.6 percent of
the total population (26 million people) in extreme poverty.

These various aspects of the poverty profile suggest that growth strategy alone will not be able
to fully solve the poverty problem in Bangladesh. While growth acceleration and job creation
will be the primary foundation for the poverty strategy, this will need to be complemented by a
well designed specific and targeted interventions that go to the bottom of the various factors
contributing to the rural-urban poverty divide, the regional variations in poverty, and the large
concentration of ultra-poor and seek to remove those constraints. This is a long-term
challenge, but the Sixth Plan is well placed to address many of the concerns.

STRATEGIES FOR POVERTY ALLEVIATION IN SFYP

Part 1 of the Plan provides a detailed discussion of strategies and policies for growth,
employment and poverty reduction. The relationship between growth, employment and
poverty on the one hand and specific disadvantages and vulnerabilities of the poor and other
vulnerable population that need to be addressed in order to protect these population are
discussed further below.

At the operational level the fundamental task of the SFYP is to develop strategies, policies and
institutions that allow Bangladesh to accelerate growth and reduce poverty. Poverty is still
pervasive. An essential pre-requisite for rapid reduction of poverty is to attain high economic
growth ensuring sustainable productive employment and incomes for large number of people
of Bangladesh. Productive employment is the most potent means of reducing poverty. But this
is not easily achieved. This requires strategies and actions on the demand side of the labor
market (driven primarily by economic growth) as well as strategies and policies on the supply
side (labor force growth and quality).

Acceleration of economic growth and employment: On the demand side, both the rate of
economic growth and its composition will matter for job creation. Acceleration of the growth
rate will require a substantial increase in the rate of investment from the present 24 percent of
GDP level. Much of the higher investment will need to be deployed to reduce and eventually
eliminate the infrastructure constraint (primarily power and transport) and to strengthen human
development. A large part of the financing will come from the domestic public resource
mobilization and from higher private savings, including from remittances. Yet some critical
level of financing from foreign sources that are strategic in nature and allow transfer of
technology will be necessary.

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Rapid economic growth, its composition and absorption of labor in high productivity, high
income jobs are inter-linked. Low income elasticity of basic food items, land constraint and
difficulties of penetrating the world agricultural export markets limit the ability of agriculture
to grow at the same pace as manufacturing or services. Presently the average labor
productivity and income in agriculture are also very low. Similarly a large part of the labor
force is occupied in informal services with very low productivity and income. Accordingly,
the economic growth process in the Sixth Plan needs to be appropriately balanced, thereby
creating more employment opportunities in the manufacturing and organized service sectors
and allowing a shifting of large number of workers engaged in low productive employment in
agriculture and informal services to these higher productivity sectors of the economy.

Therefore, much of the high productivity, high income jobs will need to come from a labor-
intensive manufacturing sector based on domestic and export markets and from organized
services. Both large and small enterprises need to contribute to this growth. The role of small
enterprises is particularly important to provide the employment base. The promotion of small
enterprises in rural areas needs to be a major strategic element for creating higher income and
employment in the rural economy, which is critical for sustained poverty reduction.

The re-balancing of the growth and employment process must be accompanied by strategies to
enhance the income-earning opportunities of workers remaining in agriculture by raising land
productivity and increasing diversification of agriculture production. Agriculture
diversification in both crop and non-crop sectors will help promote commercialization of
agriculture and raise farm incomes

Employment abroad and associated remittances have played a major development role in
Bangladesh. This element of the employment strategy will be strengthened. In addition to
pursuing the strategy to export low skilled manpower, the Sixth Plan effort would focus on
export of well trained skilled and semi-skilled manpower to existing as well as new
destinations.

Benefiting from higher labor force growth (the demographic dividend) and ensuring
labor quality: Although Bangladesh is currently experiencing ‘demographic transition’ as a
result of slower population growth, entry of young population in the labor force will continue
due to demographic factors. This demographic dividend needs to be properly used through a
well articulated human development strategy. The quality of labor force is weak due to low
access and low quality of education. The Sixth Plan will seek to address these challenges by
developing and implementing a well thought out education and training strategy. The strategy
needs to be particularly sensitive to reduce the access gap of the poor and the women,
especially in the under-developed or lagging regions of the country. A significant part of the
additional investment for higher growth will need to be deployed to the development of the
labor force with special emphasis on the target group.

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Ensuring food security: The recent global food price inflation illustrates the critical
importance of ensuring food security for a large poor country like Bangladesh. Past progress in
rice production suggests that Bangladesh has the capacity to achieve food security efficiently
through domestic production. Indeed, with proper incentives there is scope for food exports.
The emphasis on productivity improvements will be particularly helpful in reconciling food
security objectives with farmer incentives. Along with supply side policies for food
production, efforts are needed to ensure that the poor and vulnerable population has the
income and means to procure the required amount of food and nutrition.

Managing the spatial dimensions of growth: Growth experiences in Bangladesh and

elsewhere demonstrate both a tendency towards urbanization as well as uneven regional
growth. The urbanization problem has become particularly acute in Bangladesh owing to the
primacy of Dhaka. The unbalanced growth of Dhaka shows both a large concentration of
wealth and income as well as unsustainable pressure on Dhaka’s already fragile infrastructure.
The urban poor are located in a large number of slum areas of Dhaka and other metropolitan
city with terrible quality of life due to lack of access to proper shelter, water, electricity and
sanitation. Concerning regional disparities, the divisions of Dhaka, Chittagong and Sylhet
seem to do better in terms of both growth and poverty reduction as compared with Rangpur,
Barisal, Khulna and Rajshahi. The poor of the lagging regions are especially vulnerable in
terms of access to employment and income options.

The Sixth Plan will make efforts to address both these spatial dimensions of growth. On the
urbanization front the strategy will emphasize a more balanced growth of urban centers across
the entire country through proper institutional reforms that involves the establishment of
locally elected and accountable city corporation/municipalities. Property tax base will be
reformed to strengthen the financial autonomy of corporation/municipalities along with block
grants from the budget based on principles of equity and population. Special emphasis will be
given to improving land administration and management to arrest the spiraling urban land
prices that is becoming a binding constraint to the expansion of manufacturing and modern
services as well as limiting the ability to provide affordable housing. Efforts will be made to
upgrade the living conditions in the slum areas through a range of measures including better
shelter opportunities, proper water supply and sanitation services and electricity services.
Regarding regional disparities, the Plan would strive to address the lagging regions problems,
especially focused on Rangpur, Khulna, Barisal and Rajshahi Divisions, through a strategy
that involves public expenditure in infrastructure and human development, by improving the
access to financial services, by promoting international labor migration from these divisions,
and by facilitating more trade and investment in the border districts with neighbors including
India.

Reducing income inequality: Inequality emerges from a combination of greatly unequal

distribution of physical assets as well as human capital. Lack of factor endowment such as
land, capital, credit and skills has been preventing poor people in Bangladesh to participate in
productive economic activities and has compelled them to remain in a disadvantageous
403
situation. Opportunity to break the low factor endowment trap through utilizing essential
public services (such as education, training, safe drinking water, sanitation and other health
facilities) has not been effective due to poor people’s limited access to those provisions.
Access to these essential services for the majority of the population depends not only on their
income levels but also on the quality and efficiency of the service delivery through the
publicly funded and operated systems. Accordingly, the Sixth Plan’s strategy to reduce income
inequality will follow a two-prong strategy. First, it will include efforts to increase the access
of the poor to assets and means of production. And second, it will strengthen the delivery of
human development services to the poor.

The strategy for enhancing the poor group’s factor endowment in the Sixth Plan will be
focused on ensuring better access by the poor to irrigated water, fertilizer, electricity, rural
roads and institutional finance. The government’s public expenditure policies and programs
and the financial sector strategies and policies will pay specific attention to implementing this
strategy.

A substantial expansion as well as quality enhancement of the supply of essential human

development services for the poor will be done over the Sixth Plan period. The strategy will
include developing a system of accountability and transparency in the delivery of these
essential services to ensure availability of appropriate staff and adequate services for the poor.
The human development strategy of the Sixth Plan will focus on these aspects in the design of
strategies, policies and programs.

Ensuring social protection for the under-privileged population: Even with higher growth,
better jobs and better access to essential services, a part of the under-privileged population will
likely be left out. Additionally, substantial risks are posed by natural disasters and climate
change for this vulnerable population. To address this challenge, the Sixth Plan aims at
significantly strengthening the social protection programs. The strategy will be to design and
implement a range of social protection programs that meets the needs of this under-privileged
group. In this regard, existing programs will be reviewed and reformed to establish better
targeting with a view to ensuring that all under-privileged groups including the disable, the
elderly, the tribal population, and children and women at risk are given priority in the
distribution of benefits. Particular attention will be given to strengthening the underlying
institutions.

Ensuring gender parity: Despite solid progress in improving gender balance in education
and steps towards empowering them in areas of employment and political space, the gender
gap between men and women remains large in Bangladesh. The women and girl child in the
poor households tend to be worse off compared to male members, labor force participation of
female still remains low, and wage differential between male and female still remains
substantial.

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The National Policy for Women’s Advancement 2011 provides for the elimination of all forms
of discrimination against women, equal rights and equal partnership in development.
Accordingly, establishing equal opportunities for women in all sections of the society with an
objective of integrating them into social and economic sphere is a major strategic element
underlying the Sixth Plan. The Sixth Plan strategy embeds the critical role of women in nation
building and thus ensures that their needs, rights, entitlements and contributions are
appropriately reflected in the Plan document. The human development and social protection
strategies underlying the Plan will place particular emphasis on gender aspects of
development. It is also recognized that women are a heterogeneous groups such that their
situations, deprivations, and needs vary according to their locations within various
communities, religions, and regions. Thus, along with promoting rights and entitlements of
women, Sixth plan envisages to cater to all these differential and specific requirements.

Sustaining growth and protecting the poor from the adverse effects of environmental
degradation and climate change: Natural resources like land and water are limited and their
per capita availability is diminishing due to rising population on the one hand and also due to
excessive use of common pool resources on the other hand. Excessive and indiscriminate use
of our natural common pool resources has degraded them to an unusable state. The
degradation of natural resources reduces the well-being of people; especially the poor and
women suffer more, as they depend much more on natural common property resources for fuel
and water. Thus, the focus of the Sixth Plan’s environmental protection strategy would be the
conservation and maintenance of natural resources, reducing air and water pollution, and
liberating encroached rivers, water bodies, forest areas and khas land.

Bangladesh is a victim of climate change caused by activities worldwide. The growing

evidence on climate change suggests that Green House Gas (GHG) emissions, resulting from
the cumulative action of developed and emerging economies, would have serious deleterious
effects in near future, unless effectively contained. It is predicted by international agencies that
Bangladesh will be adversely affected by climate change in the form of melting of Himalayan
glaciers, global warming and rising sea level, intensified natural calamities, and greater water
scarcity leading to loss of livelihood, rising unemployment and poverty. Furthermore, a rise in
the sea level, leading to coastal submergence (i.e. 17 % of Bangladesh) would cause large-
scale displacement of people. Clearly, the vulnerability of the poor to climate change is large.
The Sixth Plan will take effective steps in collaboration with the international community to
help Bangladesh address the adverse consequences of climate change. An acceptable and
workable collaboration strategy must include fair and just burden sharing for mitigation as
well as adaptation strategies across nations. In order to realize these objectives, mainstreaming
of climate change and environmental issues into national planning process is being initiated.

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STRENGTHENING THE PARTICIPATION OF THE POOR IN GROWTH
ACTIVITIES

The Sixth Plan recognizes that the full participation of the poor in growth activities will not be
possible unless the constraints are removed. The main constraints are lack of access to factors
of production and the lack of human capital. The two are inter-related and a comprehensive
poverty reduction strategy must work on both fronts. The issues of how to ensure the access of
the poor to human capital are discussed in detail in Chapters 7 and 8. The discussion below
focuses on the Sixth Plan’s strategy for strengthening the access of the poor to factors of
production.

Some 80 percent of the Bangladeshi poor live in rural areas. The correlation between
occupation of head of household and the rate of poverty in 2005 is shown Table 9.317. For
both rural and urban areas, the incidence of poverty is highest for households where the head
is employed as a daily wage earner in either agriculture or outside agriculture. The poverty
incidence is lowest for households in urban areas where the head is occupied as a salaried
employee. The distribution of

Table 9.3: Poverty Rate and Occupation 2005

Occupation of Head of Household Poverty Rate Population
Percent Share Percent
Urban Rural Total Urban Rural Total
Self-employed: agriculture 27 33 33 6 29 23
Self-employed: non-agriculture 23 38 33 31 17 20
Salaried employee 17 27 22 31 10 15
Daily wage: agriculture 72 72 72 5 19 16
Daily wage: non-agriculture 55 60 59 15 12 13
Source: Bangladesh Bureau of Statistics, HIES 2005

The poor by population share suggests that much of the rural poor are engaged in agriculture,
either as small holders or as daily laborers. A significant population share of the poor is also
engaged in non-farm enterprises. The share of salaried population is the smallest, only 10
percent. Salaried head of household is relatively better off in both urban and rural areas
although the poverty rate is much higher among rural salaried head of household than in the
urban areas.

The results of Table 9.3 have major implications for designing employment strategies for the
poor:

First, the creation of good paying salaried jobs in both urban and rural areas is important. This
suggests the need for supporting the development of modern service sectors. The expansion of
banking, government services, health, education, IT, trading and transport services will all
augur well for job creation in the service sector. Employment in services sector for the poor

17
Data for 2010 is not yet available
406
will require major improvements in education, training and health services. So, access to
better human capital for the poor will be critical.

Second, better access to credit and farm inputs will be essential to enable the marginal farmers
and daily farm laborers to get out of the poverty trap. The most critical factor is land.
Landless and near landless households tend to have high incidence of poverty in rural
Bangladesh (Table 9.4). The one positive development is that some of the landless have
moved out of poverty by finding other sources of income. Nevertheless landownership
remains a major determinant of rural poverty in Bangladesh. The policy options however are
rather limited. With growing population pressures land has become a hugely scarce factor of
production. Also average size holdings are relatively small with limited redistribution
prospects through land reforms. Similarly, Government land has also been encroached upon
by land grabbers leaving little scope for redistribution. However, government policy can
contribute by improving the functioning of land markets through digital record keeping of
ownership and transactions, proper land valuation, proper zoning policies, and preventing
encroachment of government lands.

Table 9.4: Land Ownership and Poverty in Rural Bangladesh

Poverty Rate % Population Distribution %
Land Size 2000 2005 2000 2005
Landless (less than 0.05 acre) 63.5 56.8 48.0 45.8
Functionally landless (0.05-0.5 acres) 59.7 48.8 13.0 15.9
Marginal (0.5-1.5 acres) 47.2 35.1 17.5 18.8
Small (1.5-2.5 acres) 35.4 23.7 9.2 8.8
Medium-large holdings (2.5 acres or more) 20.7 12.8 12.4 10.7
Source: Bangladesh Bureau of Statistics, HIES 2000, 2005

On the agriculture input side there are much better prospects for policy intervention through a
better distribution of farm subsidies on water, fertilizer and seeds. Indeed, better access of the
poor to these inputs will raise farm productivity and help both the small holders as well as the
farm workers. Another intervention is through research and development and agricultural
extension services focused on the poor.

Third effective support to agricultural marketing could be another pro-poor policy

intervention. The imperfections in the marketing of farm produce are well known. Much of
this has to do with the lack of adequate farm-to-market roads and proper storage facilities.
Government investment in rural roads can be a very powerful pro-poor policy intervention.

Fourth, the difficulties of providing the poor farmers with credit for investment and working
capital are a well known problem. Better targeted provision of farm credit through
commercial banks can play an important role in reducing rural poverty.

Fifth, growing land constraint and the need to raise farm productivity suggests that
increasingly more reliance will need to be put on non-farm sources of income and
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employment. This transformation is already underway but will be boosted further in the Sixth
Plan. A host of factors impact on the growth and dynamism of non-farm enterprises including
technology, entrepreneurship, and access to infrastructure, especially electricity, but perhaps
the most important factor is access to credit. The ongoing micro-credit revolution pioneered in
Bangladesh has already demonstrated the power of micro-credits in reducing poverty.

Finally, the access to remittance income is a significant positive determinant of poverty

reduction. The Sixth Plan will make special efforts to support the expansion of migrant
workers to international markets, particularly from the lagging districts.

The role of micro-credit, remittances and rural non-farm employment in poverty reduction and
the specific policy interventions to be taken in the Sixth Plan are reviewed below in greater
detail.

Critical Role of Access to Finance for Poverty Alleviation

A review of the characteristics of the poor shows that lack of assets is a critical determinant of
poverty. This is in terms physical assets, financial assets as well as human capital. Human
development policies focused on health and education is a powerful instrument for equipping
the poor with human capital and is a great equalizer of opportunities. Regarding physical
assets, short of redistributing land, possibly the most potent way of enhancing the
opportunities for capital accumulation is better access to financial resources at an affordable
price

Three financial service requirements have been identified that will reduce income vulnerability
and enhance income level. They are:

(i) Access to credit of poor households: It will relax liquidity constraint of the resource
constrained poor households and create economic opportunities, though marginal benefit
of such access to credit will depend on access to economic information and skills of the
borrowers.

(ii) Access to social safety net programs: Poor are subject to both income and consumption
vulnerability. The social safety net programs can minimize income and consumption
vulnerability for the extreme poor households. Expansion of such programs can be
complimentary to the first requirement that we have mentioned. Consequently, marginal
benefits of access to credit will be higher.

(iii) Access to insurance for protection and preservation of assets/wealth: Poor households,
like everybody else, are subject to life and property risk as well as credit risk. Death or
disability of bread earner or damage to property due to natural calamities makes poor
households more destitute. In such a situation, access to micro insurance can protect family
from income shocks and preserve wealth.

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Micro finance revolution that started some three decades age has brought changes in financial
landscape in rural financial markets. Poor that did not have access to credit can access credit.
Micro finance institutions address the problem of formal market failure due to adverse
selection and moral hazard. On the other hand, it offers institutional framework that can make
rural financial market more effective. The major elements of micro finance are: (i) self-
selected group; (ii) compulsory savings; (iii) participation of poor members in investment
decisions, and (iv) joint liability of the group members for loan default.

Micro Finance Addresses Needs of the Ultra Poor

Targeting ultra poor is another frontier of micro finance movement in Bangladesh. More than
20 percent of rural population lives in extreme poverty. These households live below lower
poverty line, which is defined as the line where average food consumption per capita is equal
to average total consumption implying that the households did not have any any-food
expenditure. It is also defined in terms of minimum food calorie, 1805 kilo calorie. These
households are also termed as ultra poor. MFIs have been addressing the needs of the ultra
poor through different programs.

Beggars, destitute, landless, daily wage earners, bonded labor, female headed poor households,
physically handicapped, seasonal labor, poor households living in char and/or flood prone or
river erosion areas and households with no regular income flow are generally under the UP
programs. Generally they are in structural poverty. In case of structural poverty, special focus
is needed to push them forward.

MFIs in Bangladesh have been pursuing flexible system to provide financial services to the
ultra poor. There are variations in approaches as practiced in Bangladesh. Although generally
group approach is pursued, most MFIs tend to follow individual approach. Flexible loan
contract as well as loan interest rates are offered. Common lending interest rate is 20 percent.
In case of ultra poor programs interest rates vary between zero and 15 percent. Repayment
installment system is flexible. Flexible payment system based on the ability of ultra poor is
followed. Like traditional micro finance programs, savings is the dominating element. The
major MFIs in Bangladesh have been implementing separate programs for the ultra poor.
BRAC has an approach with assets transfer and training support in addition to daily
subsistence allowance. Grameen Bank has Beggars’ program (interest free flexible loan
repayment system). It has a credit guarantee scheme under which UP trader’s trade credit for
goods worth max Tk.2000 ($30). The supplier of credit gets GB guarantee. ASA has a special
program for the UP which is offered through specialized branches. Loan contract is flexible –
repayment schedule. PKSF has been implementing HP program through its partners with
flexible terms and conditions.

Bangladesh MFIs have made significant progress in reaching out the ultra poor. Around 4
percent of the members are ultra poor members when micro finance coverage of ultra poor is
compared with the total number of members mobilized. Around 1.38 million ultra poor

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members have been brought under micro finance net by the end of 2008. Of them around 80
percent were borrowers. Loans outstanding amounted to Tk. 2.25 billion. The design of the
ultra poor programs enables its members to save. Around 29 percent of the loans outstanding
were member net savings. This reflects that even the ultra poor can save if appropriate
instruments are available.

Micro finance has expanded tremendously both horizontally and vertically. With wider branch
network, MFIs have been able to expand financial services to the millions of poor members
and borrowers. Financial products are diversified – from traditional small business to livestock
development and manufacturing. From the portfolio mix of the lenders, one is able to derive
information on demand side. Livestock has a higher demand. This is less risky. Small business
remains prominent sector. Demand for loans for financing these sectors has grown over time.
Increase in the supply of loans is a testimony of such higher demand.

Role of Micro Finance in Reducing Seasonal Poverty and Vulnerability

Poor households are vulnerable because of idiosyncratic risk and covariate risk. The presence
of these risks affects both poor and non-poor. In either of the cases, it makes them vulnerable.
In some cases, covariate risk, like flood, cyclone, tornado and other natural disaster, may
contribute to seasonal poverty. In this section, we use the term ‘vulnerability’ in terms of
consumption vulnerability, income vulnerability and exposure to different shocks. We present
two evidences – one on monga where consumption vulnerability is extreme, and the other one
on exposure to different shocks, based on a national survey. Both the surveys were conducted
by Institute of Microfinance.

Monga (famine like situation), caused by flood or draught, in north-western Bangladesh is

frequent. It is essentially caused by inadequate employment opportunities for the poor during
September-November when there is no farming. It is equally observed in Southern Bangladesh
where intensity of covariate risk is colossal, caused by cyclone, for example. In the north-
western region of Bangladesh, intensity of poverty increases during monga, although poverty
is structural in nature. The Government of Bangladesh has been expanding social safety net
programs like food for works programs, 100-day employment guarantee scheme, old age
pension scheme. Despite expansion, its ability to outweigh marginal loss from covariate risk is
limited as not all poor are under these programs and the amount of benefit is small. In such a
situation, more long term interventions are required. In the case of monga type of situation,
off-farm economic activities need to be created so that farm-based employments can be largely
substituted by off-farm based employment opportunities. In the case cyclone driven covariate
risk requires larger interventions. In either or both the cases, two financial services will be
required – one, provision of micro credit, and second, provision for micro insurance.

Micro Finance in Bangladesh: Present Scenario

Bangladesh has experience of over two decades in micro finance. Some 750 micro finance
institutions with a network of some 16000 branches have been operating. In 2008, annual
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disbursement was around Tk.300 million (US$4.2 billion), loans outstanding of Tk.220 billion
(US $3.3 billion) and net member savings of Taka 140 billion (US$2 billion). Annual loans
disbursement has grown during the past five years at a rate of 20 percent. Average loan size is
around Tk.23,000. Micro credit is diversified in nature. Micro enterprise loans, relatively large
loan varying between Tk.30,000 and Tk.500,000 constitute around 14 percent of the loans.
Around three million borrowers are micro enterprise borrowers. In addition, micro credit is
targeted for ultra poor. More than 12 percent of the borrowers are ultra-poor.

Although poor households benefit from micro credit the larger effect of micro credit can be
found only when vulnerability of poor households is minimized. The poor are vulnerable to
seasonal poverty and different shocks including lumpy expenditures for children, marriage and
major medical treatment. Seasonal poverty arises because of natural disaster such as monga in
the greater Rangpur region and Sedor in Southern region. Vulnerability to shocks is common.
The net gains from micro credit are, in case of any covariate shock of higher magnitude like
Sedor, not sufficient to cope with vulnerability to consumption and income loss. In other
cases, micro credit has contributed to minimizing vulnerability to consumption and income.
The less vulnerable are the households with off-farm self-employment. In the greater Rangpur
region, during the period of monga, households with self-employment had twice more
employment days than the households depending on wage employment only. Micro credit
does contribute to off-farm employment creation. It is not only the natural shocks that the poor
are exposed to. They are exposed to idiosyncratic shock like health related shocks. Often we
do not find negligible net economic impact of micro credit from one point to another point..
Idiosyncratic shocks like lumpy medical expenses or cost of marriage reduce net gains from
micro credit. Idiosyncratic shocks are costly and they create both short and long run burden.
Micro credit reduces such vulnerability of the households.

Access to Rural Credit

Although non-government micro finance programs dominate micro credit market structure, the
GoB micro credit programs are no less important. The noted sources are Bangladesh Rural
Development Board (BRDB) and Palli Daridra Bimachan Foundation (PDBF), organizational
transformation of BRDB's RD-12 program. BRDB has been promoting rural development
through providing both rural finance including micro finance, and skill development training.
It has been contributing substantially. Nevertheless, both PDBF and BRDB have expanded
credit substantially during the past years.

Recognizing the strong social capital and other qualities of poor people and considering the
potential of microsavings in developing the asset base for the poor, the Government has
designed and developed the Project “One House – One Farm” popularly known as “Ekti Bari –
Ekti Khamar”. The project components include: formation of comprehensive village
development cooperative societies, introducing contributory microsavings to attract poor
people for making small savings through incentives, providing seasonal microcredit to support
micro-investment in the farm sector, development of farm-based volunteers mainly in the field
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of homestead agriculture, poultry, fish culture, livestock farming, forest nursery and
horticulture. This programme will develop cooperative marketing to ensure proper prices for
the farmers and promote food processing and other agriculture product processing at the
grassroots level. Efforts will be made to develop community food storage system to ensure
food supply and food security at lower cost at the community level.

Table 9.5 shows an increasing trend in the disbursement of targeted agricultural and
specialized programs for rural development by the public sector banks. The share of

Table 9.5: Targeted Agricultural and specialized Credit Program through Public Sector
Banks and Cooperatives
(Taka in Crore)
Year BRDB & Specialized Banks State owned Total public Share of
BSBL (Agricultural commercial sector targeted Specialized
Development Banks credit Banks
1999-00 408.31 1905.51 537.47 2851.29 66.83
2000-01 251.81 2189.88 577.98 3019.67 72.52
2001-02 313.7 2042.25 598.96 2954.91 69.11
2002-03 354.88 2243.1 680.39 3278.37 68.42
2003-04 502.48 2640.87 905.66 4049.01 65.22
2004-05 665.32 3149.32 1142.14 4956.78 63.54
2005-06 752.12 3551.66 1192.43 5496.21 64.62
2006-07 782.69 3482.02 1027.8 5292.51 65.79
2007-08 740.36 4061.12 1365.5 6166.98 65.85
2008-09 698.99 4703.69 1588.89 6991.57 67.28
Source: Bangladesh Bank

specialized agricultural development banks (BKB and RAKUB) is consistently around 66

percent. Although disaggregation of such loans is not available, we find it difficult to point out
the share of nonncrop loans. Nevertheless, anecdotal evidence suggests that around one-third
of these loans are non-crop loans. These loans finance off-farm economic activities, and in
turn self employment vis-à-vis income growth.

Outreach of MFIs

Outreach of the MFIs is defined in terms of number of members, borrowers and branches.
Wide expansion over the past six years has taken place. Number of members at the end of
2008 was 33.4 million, almost doubled during the past six years and grew at an annual rate of
around 14 percent. More than 90 percent of the members are borrowers. Annual average
growth rate has been more than 17 percent implying higher demand for credit. Over 600 MFIs
mobilized these members through a network of over 14,500 branches, three times the number
of commercial and development bank branches in rural credit market (Table 9.6). Such
expansion reflects (i) higher ability of the MFIs to provide financial services to the poor, and
(ii) higher demand of poor for financial services. It, however, also reflects promotion and
development of rural financial markets.

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 Table 9.6: Bangladesh Micro Finance –Operational Outreach
2003 2004 2005 2006 2007 2008 Annual
average
change
Members 17.75 20.68 24.27 29.00 33.14 35.87 13.77
(in million)
Borrowers 13.45 15.61 18.96 25.99 29.05 29.28 17.34
(in million)
MFI 6837 9165 9253 11368 14577 14577 15.38
branches
(No.)
Source: Bangladesh Bank

Financial Outreach of MFIs

Financial outreach includes both credit and member savings. There has been higher growth in
loans disbursement as well as loans outstanding during the past six years. The Industry that
had disbursed Taka 60 billion through a network of 6,837 branches in 2003 had grown at an
annual rate of 27 percent. In 2008, it disbursed Taka 209 billion (Table 9.7). Loans
outstanding have been growing at a lower rate. Critics often argue that growth of credit is a
reflection of growing indebtedness. This proved to be wrong even simply looking at the
amount of savings that the members/borrowers have saved over time. The net saving balance
was Tk.104 billion in 2008, which is around two-third of the loans outstanding. Net loan per
borrower has also increased. It is interesting to note that while loans outstanding grew three
times during the period 2003-08, net savings increased by around 3.5 times. This is only

Table 9.7: Financial outreach of the MFIs, 2003-08

Annual
2003 2004 2005 2006 2007 2008 growth
rate
Loans disbursement (in 60.85 69.16 92.59 124.44 176.45 209.18 26.51
billion Tk)
Loans outstanding (LO) 52.5 64.4 83.7 110.9 138.6 158.8 23.21
(in billion Tk)
Net Savings (NS) (in 28.9 38.5 52.0 73.1 87.8 104.4 26.39
billion Tk)
NS as % of LO 55.1 59.8 62.1 65.9 63.3 65.7
LO/Borrowers (Tk) 4087 4231 4345 4536 5106 9.17
NS/Borrowers (Tk) 2324 2615 2275 2926 3296 12.61
Source: Bangladesh Bank

possible through higher growth rate of savings. This is further evident from the growth rate of
average loans outstanding and average net savings balance. Average savings per borrower has
grown at a higher than that of average loan balance per borrower. Savings not only makes the
members financially independent but it also act as insurance in times of crisis. During the past
several natural shocks, savings have played as a cushion for the poor members.

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Main Issues and Challenges in Microcredit

Microcredit has helped address poverty by providing loan in small amounts without collateral
and has helped in particular women who are the target borrowers of micro lending. Over the
years, various challenges with regard to microcredit have emerged. These are: (i) prevalence
of high interest rates which are being reduced, but further reduction of interest rate is
necessary; (ii) vicious cycle of microcredit - the poor are borrowing from one microcredit
organization to repay another; (iii) microcredit programs have not been very successful in
including the hardcore poor; (iv) rate of graduation to above the poverty line among the
microcredit borrowers is low, indicating persistent dependency on microcredit; (v) most of the
microcredit recipients being women, bear the burden of repayment; (vi) microcredit
organizations compete with each other and often put pressure on the potential clients to
borrow; (vii) profitability of micro enterprises is small and often is not sustainable on a long-
term basis because of enterprise decapitalization, saturation of markets for products that are
traditionally produced by microcredit borrowers, weak coordination among NGOs and MFIs
and a weak financial system. Moreover, the dominance of weekly payment system attracted
the micro-credit investment in the non-farm sector and farm sector remained unsaturated.
Seasonal micro-credit is needed to saturate the farm sector.

Strategies for Microcredit Expansion in SFYP

The Sixth Plan’s micro credit expansion consists of the following:

• Formal rural credit should be expanded from the present level of Tk. 7000 crore. It has
been growing every year at an annual growth rate of around 10 percent. This is quite low.
This has to be enhanced, and it should grow at 15% annually in order to create more
demand for credit to finance off-farm economic activities including SMEs.
• There is a formal market failure to address demand for credit of poor households. Public
sector banks are inefficient and costly, and are not able to expand financial services to poor
households for their high transaction costs and perceived associated risk of non-recovery
of loans. Under these circumstances and in view of the successful experiences of micro
financial institutions (MFls), the Government will emphasize on expanding financial
services to poor households with equal opportunity for women through micro finance
institutions because of their wider network and commitment.
• Greater emphasis will be placed to increase the coverage of the program to a larger number
of deserving households; introduce a uniform approach of operation both by NGOs and the
public sector; and strengthen the regulatory framework for streamlining the activities of
the microcredit program in the country. The Government would channel more resources
for microfinance operations, minimize interest rate and increase effectiveness of
microcredit for poverty alleviation, avoid overlapping and reduce seasonal vulnerability
through microcredit. Local governments will be involved in microcredit delivery.
• A Microfinance Regulatory Authority (MRA) has been established to provide appropriate
regulatory framework. A national microcredit policy will be framed to provide guidelines
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 about the operation of microcredit. It is also necessary to rationalize interest rates.
Necessary mechanism will be devised to ensure that microcredit reaches the ultra poor and
the hard to reach areas especially those located in regions with higher incidence of poverty.
• Up-scaling microcredit is a natural consequence of microcredit program as the progressive
microcredit recipients demonstrate their entrepreneurial ability to handle larger size loans
requiring expansion, deepening and diversification of loan products. Some of the
microcredit organizations, notably some partner organizations with support of PKSF, have
increased their loan ceilings to Tk. 300,000 for microenterprise program and to Tk. 30,000
for all other programs. The microenterprise loan not only helps reduce poverty of the
borrowing household but also creates employment opportunity for other poor people. It is
expected that as more and more borrowers graduate out of the regular microcredit program
the demand for larger size loans will increase. The Sixth Plan will facilitate this transition
to scale up.
• Special emphasis will be placed on micro enterprise development. Micro enterprise
development can be engine of rural economic growth provided appropriate interventions
are introduced. Credit as well as access to information and training will be required for
micro enterprise development. Particular attention will be given to women who are lagging
behind in micro enterprise development; and they will be provided with a better access to
business and vocational training, micro enterprise credit and better market information.
• Skill development of borrowers would contribute to income growth and efficiency in
micro credit market. MFls would be involved in the process. Formation of Savings Groups
will be encouraged.
• Access to better information for microcredit borrowers will improve the productivity of
credit. Special effort will be made to target the benefits of the ICT expansion program for
these borrowers.

International Migration and Remittances

Bangladesh has benefitted tremendously from the large inflow of remittances. Evidence from
Bangladesh and other South Asian countries show that income from remittances has been a
major positive factor for the reduction of poverty. The Government has been striving hard to
deepen overseas employment opportunities in different countries in the World. The major
exporting countries of Bangladesh workforce have been Saudi Arabia, Malaysia and Abu
Dhabi in terms of remittances and number of employments. The concerned ministry and the
Bureau of Manpower, Employment and Training (BMET) have concentrated on the incentive
structure required for cost-effective work force export as well as for remittances of foreign
currency through formal channel. Table 9.8 shows number of exported work force and the
amount of remittances received during the past ten years.

Table 9.8: Trend in Number of Employment Abroad and Amount Remittances

Year Number of migrants Remittance in million US$ Remittance in million taka
1999-2000 222686 1949.32 98070.30
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2000-2001 188965 1882.10 101700.10
2001-2002 225256 2501.13 143770.30
2002-2003 254190 3061.97 177288.20
2003-2004 272958 3371.97 198698.00
2004-2005 252702 3848.29 236469.70
2005-2006 381516 4802.41 322756.80
2006-2007 832609 5998.47 412985.29
2007-2008 875055 7914.78 542951.40
2008-2009 465351 9689.26 666758.50
2009-2010 383150 10987.40 760109.59
Source: Bangladesh Bank

Further efforts will be made in the Sixth Plan to promote migration, especially from lagging
districts of the northern and north-western regions of the country. Two major interventions
will be undertaken - skill development through training programs and financing of migration.
Efforts will also continue to reduce the transaction costs of remittances through better banking
support to migrant workers and also to ensure that male and female migrant workers are
treated well and with dignity in host countries through the oversight by local embassies as well
as through high-level policy dialogue with host governments as necessary.

Rural Non-Farm Activities

The Sixth Plan’s vision for rural non-farm activities (RNFA) is to foster such activities as an
important and effective poverty reduction activity for women in particular. Therefore it is
important to identify activities for RNFA and the roles of both public and private sectors and
to encourage entrepreneurs to promote RNFA.

The following problems/challenges have been identified for RNFA: (i) since RNFA includes a
diverse group of activities, it is difficult to define it as a sector and hence it lacks any baseline
assessment; (ii) activities in RNFA are often financed by microcredit, which can only support
very small-sized activities. There is a limitation in accessing finances for larger sized
activities; (iii) people engaged in RNFA activities, particularly women, lack capacity and skill
for producing quality products; have inadequate access to information in determining what to
produce and often they lack skills in marketing their products; (iv) as institutional financing is
mainly urban biased, problems arise since the NGOs are not very effective in providing
business advice because they themselves are not well-equipped to provide such support; (v)
management capacity of small enterprises operating in RNFA is rather poor; and (vi) RNFA
suffers from inadequate infrastructural facilities particularly energy and communication;

Future strategies will focus on two broad areas: (i) improving the rural investment climate; and
(ii) supporting institutional framework. Measures for improving investment climate will
include ensuring more energy supply in the rural areas with emphasis on bio-fuel and solar
energy use; emphasis on routine maintenance of the existing roads, development of waterways
416
and railway communication; up-scaling and technology upgradation of small enterprises
focusing on product development and quality improvement; provision of training for workers
based on market demand and also for entrepreneurs in improved business method; promoting
linkage with agriculture and greater value addition of farm products through a boost in agro-
processing, arranging local-level fairs on routine basis to promote RNF products, skill
development training and internship facilities, in-country and international tours through
public-private financial participation.

In order to mainstream RNF issues in rural development, an institutional set-up will be formed
with different stakeholders, including local government institutions, private entrepreneurs in
RNF and providers of financing and other support services. These stakeholders shall identify
the strategic policy and investment priorities. The government will consider instituting a
monitoring unit to monitor implementation of the initiative and the results.

The RNFAs are undertaken mainly within the informal sector and it is desirable to keep them
informal under the present settings. However, creation of an enabling environment for them
and provision of some support services would make this sector more vibrant and will
contribute substantially to poverty reduction. Some interventions that would be considered are:
improving marketing capacity by providing sales centers in the GCM and other periurban
markets where the government can provide supports and entrepreneurs can undertake a buy-
back system; training and awareness building about hygienic agro-processing and food
processing activities; strengthening SME Foundation to allow it to serve more effectively,
providing women with basic skills about business management and steps linking them to
markets, setting up of more vocational institutes in the rural and periurban areas, allocating
more funds under microcredit and microfinance, improving the management of this sector
through organizing training, orientation, and workshops, disseminating market information
and providing institutional and logistic support to entrepreneurs, taking initiatives by the
government to create ICT villages in rural areas and taking initiatives by government and
NGOs to bring diversification in products and upgrading product designs.

SOCIAL PROTECTION PROGRAMS FOR THE POOR AND VULNERABLE

The Importance of Social Protection

The diverse underlying causes of poverty in Bangladesh include vulnerability, social

exclusion, and lack of assets and productive employment; although the main symptom is often
hunger and malnutrition. The extreme vulnerable poor can potentially lift themselves out of
poverty with appropriate short to medium-term support. The extreme dependent poor, who are
old, disabled or chronically sick, will depend on long-term social protection to survive. The
children of the extreme poor, who are stunted or malnourished, are vulnerable to harassment,
and have limited, or no access to education. A sharp rise in inequality would not only
undermine the impact of growth, but may also threaten social cohesion and breed instability

417
and discontent. Both poor and non-poor families are vulnerable to shocks (e.g. natural
disasters, health problems) that can return them quickly into extreme poverty.

There are four major concerns that the current rate of progress in reducing extreme poverty
may not be maintained: (1) slowdown in the global economy together with domestic factors;
(2) growing population density is likely to force more of the poorest people to live in the most
vulnerable areas; (3) climate change will exacerbate the vulnerability of poor people to
environmental shocks, with the predicted increase in extreme climate events; and (4)
demographic and social changes may further increase vulnerability and social exclusion.
Risks and vulnerability are mainstream problems in the lives of the average Bangladeshi and
are recognized as such by governments, individuals and communities. Social Safety Net
Programs to address risk and vulnerability have been an integral part of the anti-poverty
strategy of this and previous governments. However, with inadequate informal social support,
newer risks emerging from rapid processes of urbanization and global economic integration,
and, stronger assertion of mitigation demands from a democratizing polity, a holistic re-
thinking on the direction, scope and design of safety net policies in particular and social
protection policy in general has become necessary. Social protection includes safety nets,
various forms of social insurance, labor market policies as well as processes of self-help
existing or emerging within society. Risk reduction and social protection are important not
only in themselves but also because an unaddressed risk atmosphere carries negative
psychological consequences for the livelihood of the poor and for community efforts needed
for social cohesion.
Effective policy initiative on a holistic approach to social protection will require a sharper
profiling of risks, old and new. These include disasters, anticipated risks such as monga and
seasonal poverty, public health risks associated with the urbanization process, social ills such
as dowry, erosion of family-based safety nets and emergence of new vulnerable groups such as
the elderly and the disabled, and, the uneven globalization process which may give rise to new
categories of poor whether in terms of worker displacement, livelihood losses or victims of
environmental disasters.
An important corollary of moving towards a comprehensive approach on social protection
programs will be the need to streamline the institutional strategy on implementation. The
potential of local government bodies, particularly the Union Parishad, to coordinate a
streamlined institutional strategy needs to be actively explored.
The Government’s Social Protection Programs
The Social Protection Programs address basic needs of the poor and vulnerable people, namely
food, shelter, education and health. The government is also committed to achieve the MDG
target of eliminating extreme poverty through an integrated and comprehensive social safety
net program which will be sustainable. Government has allocated 15% of the total national
budget against social protection program of the country which is 2.5% of the GDP of the
2010-11 FY. For ensuring social security of the vulnerable poor and their empowerment

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Disaster Management and Relief Division are implementing major social protection program.
Among the primary government programs are: Food for Works (FFW), Vulnerable Group
Development (VGD), Vulnerable Group Feeding (VGF), Open Market Sales (OMS), Cash for
Work (CFW), Gratuitous Relief (GR), Employment Generation program for the Poorest
(EGPP), Test Relief, old-age allowances, and allowances for retarded people, allowances for
widow and distressed women, and grants for orphanages. There are also allowances for
freedom fighters, programs for the physically challenged, and so on. Distressed people
particularly women, children and disabled persons have been given priority. Programs are
implemented through both non-development budget and development budget.
The Government views poverty from two broad perspectives – income poverty and human
poverty. It identifies direct and indirect social protection programs to address these two types
of poverty, where the direct measures (income/ employment generating programs) are
considered as those that are targeted towards the poor, and indirect measures (human
development program) are growth oriented and hence expected to leave indirect effects
on poverty reduction. Examples of indirect or growth oriented measures cover
mostly infrastructural development and rehabilitation programmes. However there are also
safety net programs that merge the two concepts of direct and indirect measures. For
example, a direct measure like Food for Work program that is targeted towards the poor is also
used to construct infrastructural services, falling in the category of indirect measure. Table 9.9
presents the names and examples of major types of social protection programs in Bangladesh.
Table 9.9: The Main Types of Social Protection Programs in Bangladesh
Type Program Examples
Cash transfers Old Age Allowance
Widowed and Distressed Women Allowance
Disabled Allowance
Conditional cash transfers Primary Education Stipend Program (PESP)
Stipends for Female Secondary Students
Public works or training based cash or in kind Rural Maintenance Program; Food-for-Work
transfer Vulnerable Group Development (VGD)
Employment Generation Programme (EGP)
Emergency or Seasonal Relief Vulnerable Group Feeding (VGF)
Gratuitous Relief (GR); Test Relief (TR)
Open Market Sale (OMS)
Source: Ministry of Finance

Apart from their poverty focus, a part of the social protection programs is aimed at addressing
the special needs of target groups within the poor and underprivileged group: physically
challenged children, disabled persons, socially excluded population in tribal areas, poor
women. Another part is transitory in nature that comes into play during natural disasters.

For all programs the institutional arrangements are as important as their financing. Evidence
suggests that the scope for improving the design of programs, their targeting and associated
institutions is substantial. With limited resources, the emphasis on these aspects will be
critical.

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In addition to these programs, other social protection programs managed by various ministries
are the following:
• Programs under Livestock Sector to alleviate poverty
• Fund for Housing the Homeless
• Program for Generating Employment for the Unemployed Youth by the Karmashanghstan
Bank
• Abashan (Poverty Reduction and Rehabilitation) Project
• Fund for Mitigating Risks due to Natural Disasters
• Program for Mitigating Economic Shocks
• Programs for Reducing Poverty and Generating Employment under the Ministry of
Women and Children Affairs

A range of specialized institutions manage the various social protection programs:

• Information and Communications Technology (ICT) for Poverty Alleviation
• Rural Infrastructure Development Program
• Palli Daridrya Bimochan Foundation (PDBF)
• Bangladesh Academy for Rural Development (BARD)
• Rural Development Academy ( (RDA)
• Department of Social Services
• Palli Karma-Sahayak Foundation (PKSF)
• Ministry of Food and Disaster Management
• Bangladesh Rural Development Board (BRDB)
Public Spending for Social Protection
Expenditure on social protection programs is increasing over time. Fig 9.2 shows the trends in
transfers as percentage of total expenditure and as percentage of GDP. These transfers have
grown modestly both as a share of total expenditure and as a share of GDP. While the
Government is committed to protect public spending on social protection, budgetary
imperatives require much more attention to making these programs effective. Increasingly,
efforts will also concentrate on securing more contributory social protection programs based
on beneficiaries’ capacity to pay.

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 Figure 9.2: Trend in Total Transfers

Source: Ministry of Finance

Monthly allowances for the elderly along with total allocations in the programs also increased.
Table 9.10 shows the trends in old age allowance program.
Table 9.10: Trends in Old Age Allowance Program
Fiscal Year Fund Monthly Allocation No. of Beneficiaries
(million BDT) per person (BDT) (in millions)
1997-1998 125 100 0.4
1998-1999 485 100 0.4
1999-2000 500 100 0.4
2000-2001 500 100 0.4
2001-2002 500 100 0.4
2002-2003 750 125 0.5
2003-2004 1800 150 1.0
2004-2005 2604 165 1.3
2005-2006 3240 180 1.5
2006-2007 3840 200 1.6
2007-2008 4485 220 1.7
2008-2009 6000 250 2.0
2009-2010 8100 300 2.2
Source: Ministry of Social Welfare
The key challenges of implementing SSNPs are coverage issues, targeting beneficiaries,
leakages, and disparity in regional distribution. These are discussed below.
While coverage is relatively low, a significant number of households gain access to multiple
programs. Data from a study of transfer programs shows that about a quarter of households
were receiving transfers from more than one safety net program. Analysis of the HIES (2005)
also showed that over 11% of households were participating in at least two of the three
programs – VGD, FFE and FFW. Coverage in urban areas remains low.
Data indicate that 27% of VGD beneficiaries are not poor. 11% of participants of the PESP
meet none of the eligibility criteria for program participation while almost none of the
beneficiaries meet at least three criteria. Almost 47% of beneficiaries of the PESP are non-
poor and incorrectly included in the program due to faulty and arbitrary selection procedure.

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Some of the vulnerable groups insufficiently covered or not covered at all, for example, the
elderly, disabled and the women poor. All households within less-poor Upazila are denied
assistance, including those with very high food insecurity.
Leakages in the FFW program have been estimated to be 26%. Leakage in the female stipend
programs is in the 10-12% range. A PERC report (2003) shows that about 20-40% of the
budgetary allocations for the female secondary stipend program does not reach the
beneficiaries. Leakages from programs show a strong correlation with the number of
intermediaries in the transfer process.
HIES 2005 showed that there was regional disparity in distribution of households receiving
social protection benefits. Barisal and Rajshahi divisions, with the highest incidence of
poverty, did not have the correspondingly higher number of social protection beneficiaries. In
contrast, Sylhet Division, with the second lowest poverty incidence had the highest proportion
of social protection recipients. However, the 2010 HIES data suggest that this anomaly was
corrected. Khulna, Barisal and Rajshahi divisions have experienced considerable rise in the
coverage of SSNP (Figure 9.3). This partly explains the larger reduction in poverty in these
three divisions in 2010.
Figure 9.3: Poverty Incidence and SSNP Recipient by Divisions

Source: HIES 2010

During the Sixth Five Year Plan, the coverage of SSNPs will further be expanded. However,
efforts will be put in place so that such SSNPs do not lead the recipients to become heavily
dependent on these programs and become work-aversive. The SSNPs will be linked to
productive and employment creating activities. In this respect the institutional and human
capacities of the disaster Management and Relief Division will be strengthened. Details Social
Safety Net Programmes for the FY2011-12 is shown in annex Table: 9.13.

PARTICIPATION, SOCIAL INCLUSION AND EMPOWERMENT

There are heterogeneous groups of people in the society with different identities and
vulnerabilities. These groups face different realities, obstacles, and opportunities and have
different needs and priorities. There is a need to take such differences into consideration to

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remove obstacles, address needs and expand opportunities for the people. The excluded,
disempowered, and vulnerable members of society, in many cases are women, children,
people from different ethnic communities, people with disabilities and other disadvantaged
groups. The Government is keenly aware of the need to take legislative, administrative,
judicial and financial measures to ensure the equality of opportunities and economic and social
freedom for the socially disadvantaged and vulnerable population.

Women's Advancement and Rights

Women frequently experience poverty differently, have different poverty reduction priorities
and are affected differently by development interventions. In addressing gender based
discrimination, the SFYP will follow a two-pronged approach. Firstly, gender will be
integrated into all sectoral interventions. Secondly, attention will be given to remove all policy
and social biases against women with a view to ensuring gender equality as enshrined in the
National Constitution.

Vision and Goals: The vision for women's advancement and rights is to create a society
where men and women will have equal opportunities and will enjoy all fundamental rights on
an equal basis. To achieve this vision, the mission is to ensure women’s advancement and
rights in activities of all sectors of the economy.

The Government adopted the ‘National Policy for Women’s Advancement’ (NPWA) 2011
that aims at eliminating all forms of discrimination against women by empowering them to
become equal partners of development. The overall development goal for women’s
empowerment covers the following areas:
a. promoting and protecting women’s rights;
b. eradicating the persistent burden of poverty on women;
c. eliminating discrimination against women;
d. enhancing women’s participation in mainstream economic activities;
e. creating opportunities for education and marketable skills training to enable them to
participate and be competitive in all economic activities;
f. incorporating women’s needs and concerns in all sectoral plans and programs;
g. promoting an enabling environment at the work-place: setting up day care centers for the
children of working mothers, career women hostels, safe accommodation for working
women;
h. providing safe custody for women and children victims of trafficking and desertion, and
creating an enabling environment for their integration in the mainstream of society;
i. ensuring women’s empowerment in the field of politics and decision making;
j. taking action to acknowledge women’s contribution in social and economic spheres;

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k. ensuring women’s social security against all vulnerability and risks in the state, society and
family;
l. eliminating all forms of violation and exploitation against women;
m. developing women’s capacity through health and nutrition care;
n. facilitating women’s participation in all national and international bodies;
o. strengthening the existing institutional capacity for coordination and monitoring of
women’s advancement;
p. taking action through advocacy and campaigns to depict positive images of women;
q. taking special measures for skills development of women workers engaged in the export-
oriented sectors;
r. incorporating gender equality concerns in all trade-related negotiations and activities;
s. ensuring gender sensitive growth with regional balance; and
t. protecting women from the adverse effects of environmental degradation and climate
change.

Current challenges: Bangladesh has made measurable progress in women’s advancement and
rights in a number of areas including education, participation in labor force, health and
nutrition, and participation in public services. In the area of women’s advancement and rights,
the government has made strong commitments and undertaken various initiatives to reduce the
gap between men and women. However, on the path towards achieving the desired goals of
gender equality and gender mainstreaming, some challenges remain. These include:

• The female-headed households usually earn less income since poor women have low
earning capacity and their wages are lower than male wages.
• Women are more susceptible to becoming poor when they lose the male earning member
of the family because of abandonment, divorce, or death.
• Women’s economic participation is low although increasing.
• Violence against women is pervasive. Physical and sexual assaults, including acid
throwing, are common. In addition, trafficking is also reported. Poverty, dowry, early
marriage, superstition, social attitude etc. are the major causes of violence against women.
• Women face social pressure for early marriage leading to loss of education, employment
opportunities, decision-making power, and leading to early childbirth. The rates of
maternal and infant mortality are high among adolescent mothers.
• With higher incidence of droughts, floods, cyclones and other natural calamities due to
looming threat of climate change, women are affected differently than men indicating the
need to introduce gender sensitivity in coping mechanisms and strategies.
• The main problem with gender governance is the implementation of the existing laws,
rules and regulations and stated policies. In addition, reforms of some laws, rules and

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 regulations, policies and the institutional mechanism are needed to make governance
gender sensitive.

SFYP Strategy to Address Gender Issues

The main strategy and policy initiatives to improve the economic political and social inclusion
and empowerment of women include:

• Policy and legal framework: Taking the constitution as the basis, the government’s
commitment to various international forums (CEDAW, Beijing Platform for Action etc.)
would be taken into consideration in addressing women’s advancement and rights issues
• Productive employment: To create more jobs, action would be taken to improve
women’s employment opportunities and wages outside the household and also ensure
equal pay for equal work. An enabling environment would be created in the workplace by
establishing day care centers. Provision would be made for life and disability insurance for
workers, especially women workers. Steps would be taken to ensure secure jobs and
decent working conditions for women in the formal and informal sectors.
• Enabling environment: Measures would be taken to develop advocacy for treating girl
child and boy child equally and promote equal sharing of household and productive work.
Necessary legal and administrative measures would be taken for ensuring a safe
workplace, transportation facilities, and infrastructure like separate toilets, lunch rooms
and lunchtime.
• Eliminating female health and education disparities: The Sixth Plan will continue past
efforts to remove all disparities in health and education indicators. Related sectoral targets
and programs will build this objective as a major plan focus.
• Priority to women in social protection programs: The existing programs for social
protection for disadvantaged women would be continued. Gender sensitive measures
would be taken to protect women from economic vulnerability and risk due to natural
disasters. The effect of the emerging problems of climate change on women would be
assessed for designing coping strategies and mitigation measures. Banks and micro-credit
providers would be encouraged to extend small and micro-credit to the poor and the
vulnerable.
• Political empowerment and participation: In this context, the main targets are to ensure
participation of women in the National Parliament and the local political institutions,
influence political decisions in favor of women, ensure direct election in the reserve seats
in the National Parliament and ensure women’s representation in the local bodies with
authority and responsibility. Initiatives would be taken to make women politically more
conscious, encourage women to participate in politics and to build leadership among
women at all levels.
• Addressing violence against women (VAW): The major targets for elimination of VAW
are to ensure reporting of all VAW incidence, reduce reported VAW at least by half,
consolidate the “One-Stop Crisis Centre” in medical college hospitals at divisional levels

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 to provide medical treatment, legal and psycho-social counseling to women and children
victims of violence, and providing shelter facilities and making efforts for their
reintegration and rehabilitation in society. The police, the administration and the judiciary
will be sensitized to apply CEDAW with provisions in cases of VAW and women’s rights.
• Gender mainstreaming: Laws, rules and regulations, institutional mechanisms, policies,
projects and programs which are not gender sensitive would be reformed. The intuitional
mechanism for coordination and monitoring of gender equality issues would be
strengthened.
• Institutional strengthening: The National Council for Women’s Development (NCWD)
would oversee women’s advancement-related activities by providing guidance and policy
support. The Women’s Development Implementation and Evaluation Committee
(MoWCA) will regularly review, evaluate and co-ordinate women’s development
activities and assist NCWD by reporting on progress of implementation. The Women in
Development (WID) focal point mechanism would be strengthened to play an effective
role in leading the coordination, monitoring the implementation of women’s advancement
and rights in policies, projects, programs.
• Integrating gender issues in planning and budgetary processes: For integration,
capacity building of relevant government officials on gender responsive budgeting and
planning will be undertaken. The poverty and gender impact assessment criteria and
yardsticks will be adopted in line with the policy agenda.
• Strengthening female participation in economic decision making: Measures would be
taken for ensuring participation of women producers, women trade unions and women
entrepreneurs in trade negotiations and in various committees of the Ministry of
Commerce, ensuring coherence between the dominant international economic agenda and
the international legal obligations, making arrangements for market access to goods where
women are ‘behind the label’, planning for market access to women in the secret services
under Mode 4, encouraging FDI in women labor intensive industries, and ensuring
women’s voice in international forums.
• Addressing ethnic dimension of women: Special program for ethnic women including
poor, destitute and elderly will be undertaken to address their needs. In order to increase
productivity and diversification of activities, the ethnic women’s capacity would be
enhanced through health, education and services.
• Promoting public image of women: The media will be sensitized to promote positive
images of women. In order to make the media more gender friendly, effort will be taken to
establish increased linkages between women’s groups and the broadcasting agencies.
• Disability and gender issues: Women with disabilities will be given preference under the
safety net measures.

Children’s Advancement and Rights

Bangladesh has made significant progress in the area of child rights’ promotion, survival, and
development. Nevertheless, the general situation of the children in Bangladesh needs to
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improve further since the survival and development of many Bangladeshi children is still
threatened by malnutrition, disease, poverty, illiteracy, abuse, exploitation, and natural
disaster.

The Vision: The vision regarding children’s advancement and rights is to create ‘a world fit
for children’. The goals to be achieved are: (i) ensuring children’s rights and advancement
through the implementation of government policies and legislations; (ii) providing health
services the children need; (iii) ensuring access to food and nutrition they need; (iv) providing
access to girls to education, training and development opportunities; (v) ensuring access to
urban poor children to early childhood development, education, sports and cultural activities
providing knowledge and life skill; (vi) protecting children from all forms of abuse,
exploitation and violence; (vii) providing access to children particularly in urban and remote
settings to clean water and sanitation, and a healthy environment; (viii) ensuring participation
of children in defining their needs, developing programs, implementing interventions, and
evaluating their success; (ix) ensuring support of duty bearer, parents and other care givers on
whom children have to depend; and (x) ensuring widespread public support for survival and
development of children.

Proposed Actions in the Sixth Plan

Intervention and actions for achieving the strategic objectives are indicated below:

• Child health: The program areas include eradication of polio, elimination of measles and
neonatal tetanus, improvement of nutrition and strengthening the school health program.
The actions will include maximizing the efficiency and cost-effectiveness of health
expenditure and improving governance. The specific activities will include sensitizing
primary and secondary students about critical child health and reproductive health issues,
healthy practices and worm infestation, and supplying iron and folic acid tablets for
schoolgirls. Activities will be undertaken to develop an adolescent health strategy
including counseling, building awareness for adolescents on hygienic practices, nutrition,
puberty, RTI/STD and HIV/AIDS.
• Food and nutrition: To control vitamin A deficiency and contain the prevalence of night
blindness, vitamin A supplements will be distributed to children with vitamin A
deficiency, measles, persistent diarrhea or severe malnutrition and to postpartum women
within 6 weeks of delivery. Ongoing efforts to control iodine deficiency disorders through
universal salt iodization will continue. To address the causes of anemia, strategies will be
used to control anemia, including iron-foliate supplementation, anathematic treatment,
fortification, and BCC to increase the consumption of iron-rich foods and promoters of
iron absorption. A strategy will be developed to address the health care needs of children
with physical and mental disabilities.
• Child education: The intervention for early childhood development will include an
awareness raising program for parents to make them aware of early childhood
development’s benefits, promote community-based childcare centers for clusters of
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 families where literate mothers are trained to become caregivers and design facilities for
early learners. Efforts will be made to increase enrolment rate and decrease dropout rate,
train primary teachers, increase the attendance rate, increase contact hours, and maintain
gender parity in access and achievement. Non-formal education (NFE) will be provided to
diverse types of children deprived of education, like un-enrolled or drop-out children and
hard to reach children to enhance their employability and productivity through skill
training.
• Access to water and sanitation: The specific objectives are to: mitigate arsenic problem
in drinking water by providing alternative systems, increase rural and urban slum access to
sanitary latrines, expand water and sanitation services to cover currently underserved
Pourashava areas, provide improved water supply to underserved, un-served and difficult
to reach areas by 2011. The primary schools will be ensured access to sanitation and safe
drinking water. Environmental hazards for children (sound, air, water pollution, etc) would
be reduced and standards for sound, air and water pollution would be implemented.
• Child empowerment: Children would be empowered to have a voice in the socio-
economic decision-making process in the family, society and national levels. In this
respect, it would be necessary to create a national platform for allowing children to express
opinions on their needs and expectations and means of addressing them.
• Child protection: All children, particularly those who are vulnerable, would be ensured
right to protection from abuse, exploitation and violence. The policies of existing NPA
would be used against sexual abuse and exploitation of children and trafficking. Laws
affecting children will be harmonized and enforced. Awareness amongst law enforcing
officials and judicial officers and the development of a diversion scheme involving the
courts, social workers and probation officers as an alternative to custodial sentences will
be undertaken.
• Birth registration: The Municipal Corporations and Pourashavas will be mobilized to
register all births. Awareness raising programs through union Parishad members, and
leaders of social opinion including Imams will be conducted to eliminate the practice of
early marriage. A widespread social awareness campaign and community mobilization on
protection issues will be undertaken to foster positive attitudes towards children,
particularly girls, and bolster the positive attitude of parents and decision-makers on the
need to protect children regardless of the socio-economic environment.
• Child labor: Effective measures will be taken to reduce child labor, and eliminate worst
forms of child labor with a particular focus on child domestic workers, migrants, refugees
and other vulnerable groups. In this context, a policy for children in the formal sector
focusing on those caught up in the worst forms of child labor will be formulated. Street
children will be assisted in accessing their rights and protecting them from all forms of
abuse and exploitation. Working children such as waste collectors, leather workers, brick
breakers, auto-workshop workers and tempo helpers will have access to learning
opportunities in formal and non-formal facilities.
• Child abuse: To recover and remove children from abusive and exploitative
circumstances, the interventions will include developing community support for these
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 children; providing livelihood alternatives, basic services and adoption, and implementing
policies and legislation necessary for the prevention of abuse, discrimination, exploitation
and violence Steps will be taken to increase efficiency to combat sexual abuse,
exploitation and trafficking of children through enhanced coordination and cooperation.
• Management and coordination: The Ministry of Women and Children Affairs will
conduct public advocacy and coordinate interventions for children’s well-being and rights.
An inter-ministerial coordination committee consisting of government ministries with
children’s portfolios and organizations representing children’s mandate will be chaired by
the Secretary of the Ministry of Women and Children Affairs and will coordinate the
implementation of CRC, CEDAW, and the World Fit for Children Plan of Action.

Ethnic Communities

Bangladesh has around forty-five different small ethnic communities comprising of 2 million
people. Some of the ‘hardcore poor’ of Bangladesh are found among these communities.

The Vision: For the people belonging to these ethic groups, the vision is to ensure their
social, political and economic rights; ensure security and fundamental human rights; and
preserve their social and cultural identity. They will be ensured access to education, health
care, food and nutrition, employment and protection of rights to land and other resources.

The crucial provisions of the CHT accord of 1997 have mostly been implemented. A separate
Ministry of CHT Affairs has been created, a Land Commission Act passed by the Parliament,
withdrawal of army camps has been started and the Land Commission constituted to resolve
land disputes in the three hill districts. The District and Sessions Courts have started
functioning in the three districts of CHT. The government programs have also incorporated the
needs and concerns of the ethnic communities. The unimplemented provisions of the peace
accord would be considered for implementation by the government. The Land Commission
will be reconstituted and land survey carried out.

Areas of Future Action: The challenges with respect to addressing social and economic
conditions of ethnic communities cover: (i) living in remote areas and far away from each
other making it difficult to reach, mobilize and organize them, (ii) partial operationalization of
the ‘Land Disputes Resolution Commission’ to prevent land grabbing and displacement of
ethnic communities, (iii) lack of specific objectives concerning needs and concerns of ethnic
communities in mainstream policies of respective ministries/divisions, (iv) absence of an
alphabet and dearth of students hindering development of curriculum in languages of the
ethnic communities at schools, (v) low food production resulting in food insecurity, (vi)
inadequate institutional mechanism to establish linkage and coordination with NGOs and the
private sector to address issues related to ethnic communities in a comprehensive manner, (vii)
lack of comprehensive understanding of the problems of the indigenous communities, and
(viii) absence of detailed information on ethnic population with ethnic disaggregation.

Major areas of interventions would include:

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• UN Declaration: The Government would consider implementing the UN Declaration on
the Rights of Indigenous Peoples 2007 and ratify the ILO Convention 1969.
• Rights on land: An appropriate land policy will be formulated which can deal with land
disputes involving ethnic groups. A secure land tenure system will be introduced in
Chittagong Hill Tract. Representatives of the ethnic groups will be included in undertaking
development projects in their areas.
• Empowering ethnic communities: The government will ensure participation of local
governments in the management of natural resources and will recognize the traditional
knowledge of the various ethnic peoples. The government will ensure community
involvement in the adoption of technologies without competing with their traditional food
production system.
• Human development programs: Existing human development programs will address the
special needs of the ethnic people. Monitoring and supervision will be strengthened so that
education, health and maternal child health services, and nutrition and housing facilities
reach the ethnic people.
• Language and access to education: A national language policy will be formulated to
safeguard the languages of ethnic peoples. An action plan on mainstreaming the education
of ethnic children will be implemented.
• Electrification and telecommunication: The national power grid and distribution system
for electricity supply in different Upazilas of hill districts will be expanded. The
government will consider the feasibility of raising electricity generation capacity of the
Kaptai Hydroelectric Power Station and setting up a grid substation in the hill districts to
meet the demand for electricity
• Preferential access to social protection programs: Social protection assistance will be
provided in hill districts to strengthen their capacities to cope with any sudden decrease of
their income due to damage to Jhum crops caused by floods and droughts.
• Rural development and non-farm economic activities: In the hill districts, income
generating activities through small and cottage industries, trading, and poultry and
livestock rearing will be expanded. The income of poor people will be enhanced through
social forestry in hilly areas and cultivation of fruits and medicinal plants. Measures will
be taken to support EPB’s ‘one district one product’ initiative under which ‘Textiles for
Rangamati’, ‘Pineapples for Khagrachari’ and ‘Rubber for Bandarban’ have been
finalized.
• Expansion of micro credit: Micro credit activities for the poor people will be expanded
and vocational training will be provided to the poor. The development of rural roads, hats,
and bazaars for marketing of agricultural products will continue. Action will be taken to
eliminate barriers so that agriculture and local products have easy access to national and
international markets.
• Development of tourism: Private investment will be encouraged to develop sustainable
tourist facilities in Rangamati, Bandarban, and Khagrachari.

Persons with Disabilities

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The Government envisions promoting and protecting rights of persons with disabilities and
facilitate their full participation and inclusion in mainstream social, political and cultural lives.
They will be enabled to lead productive and meaningful lives through access to education,
health care, food and nutrition, employment and protection, and security in society. The
Government is strongly committed to the advancement and rights of persons with disabilities
by virtue of the Constitution which enshrines equal rights and status for every citizen and by
signing the UN Convention on Rights of Persons with Disabilities and the Beijing
Proclamation on the Full Participation and Equality with Disability in Asia and the Pacific
Region.

A National Disability Action Plan has been formulated involving all related ministries. The
Ministry of Social Welfare has taken up programs for enabling and integrating persons with
disabilities with mainstream of society through various programs including stipend programs
for students, subsistence allowance, skill training, and interest free micro credit. In addition to
its own initiatives, the government provides funds to NGOs to provide education facilities to
persons with mental disability.

Despite some progress, access to special education, training and rehabilitation, equal
opportunities, creation of employment and income generating opportunities, social security,
accessibility to physical facilities, fixation of quota, and prevention of disabilities are not yet
fully ensured since different ministries are not legally responsible for addressing disability
issues in their action plans. Proper supervision and monitoring of NGO activities is essential.

Proposed actions: Along with expansion of integrated education program for visually
impaired children, existing institutions for hearing impaired and mentally retarded children
will be expanded. New institutions will be established to provide access to more children with
disabilities at primary, secondary and tertiary levels. A collaborative effort among the
government, NGOs and the private sector will be encouraged to expedite the expansion of the
existing institutions, establish new institutions, and undertake teachers’ training and action
researches on disability.

Action will be taken in the health sector to (i) strengthen early detection of symptoms of
disability and provide primary medical rehabilitation; (ii) undertake a nutrition program for
pregnant women; (iii) appoint trainee doctors, nurses and other caregivers to deal with
disability issues; and (iv) introduce support services of assistive devices and equipment at the
health centers.

Measures will be taken so that persons with disabilities can have access to all physical
facilities and information and communication. Inclusion of persons with disabilities in various
national and community level decision making processes that affect their lives would be
ensured. Services like early detection and timely medical intervention, fitment of artificial aids
and appliances, educational services in special and integrated schools, vocational rehabilitation

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and micro credit will be provided to persons with disabilities through community based
rehabilitation (CBR) program in the rural areas.

The requirements of the poor and vulnerable, including women and children, will be
prioritized in all activities implemented under the action plan. The Climate Change Action
Plan comprises immediate, short, medium and long-term programs.

The serious consequences of climate change, including especially the consequences for
Bangladesh, lead naturally to the question of what should be our response. Two types of
response need to be considered. The first relates to adaptation, i.e., measures that have to be
taken given the very high likelihood that climate change will occur and will have adverse
effects. The second relates to mitigation, i.e. steps to be taken that might reduce the extent of
climate change.

The Bangladesh Disability Welfare Act would be amended to clarify definitions of disability
and make it consistent with standards set out internationally on disability rights. The National
Coordination Committee for persons with disabilities would be strengthened to monitor and
coordinate activities of different ministries/divisions.

Disadvantaged and Extreme Poor Groups

There are some disadvantaged and stigmatized groups (such as dhopa, muchi, napit,
Hijra/transsexuals and other traditional low caste people) who are subject to social injustice
and are marginalized, and have little opportunities for overcoming their harsh realities. The
vision for these disadvantaged and extreme poor groups is to include them into the mainstream
of society by ensuring their participation in socioeconomic activities and to promote and
protect their human rights, reduce their persistent poverty, and ensure education and skill
training for income generating activities.

Several actions are already in progress for the development of the disadvantaged groups.
Among the coastal fishing communities various activities such as savings/credit schemes,
promotion of alternative income generating schemes for men and women, improving access to
social services and building their capacity to face and survive natural disasters have been
introduced. Development activities for the sweeper community have been undertaken by
NGOs. The owners of tea gardens have entered into agreement with the trade union of tea
garden workers to enhance their wages and provide subsidized food. Similarly, communities
like kaibarta/namasudra, jalo (fishermen), dhopas, napits and other groups face decaying
occupations. The Ministry of Social Welfare has implemented capacity and livelihood
development program for socially disadvantaged women with a view to creating
employment/self-employment of sex-workers and their children in selected cities.

Proposed actions: The cooperation and involvement of local bodies i.e. Upazila and Union
Parishads and NGOs will help to locate/ identify the disadvantaged people to enable them to
participate in development activities. Government functionaries at upazila, district, and
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divisional/national level will coordinate their activities. The Ministry of Land would give
priority to allotting khas land to people of the disadvantaged communities for settlement under
the Asrayan project. For the tea garden workers, planters/owners would be encouraged to
earmark land within the estates so that they can build their own dwelling.

DEVELOPMENT RESOURCE ALLOCATION FOR SOCIAL PROTECTION

DURING THE SIXTH PLAN

The provision of social protection involves work of a large number of ministries including
food, disaster management, rural development, social welfare and women’s affairs. Also a
large part of the budget consists of subsidies and current transfers from the budget, where
Ministry of Food and Disaster Management currently implements about 85% of all safety net
programmes. In recent years the allocation of annual budget for social protection has exceeded
3 percent of GDP. The development budget allocations for ministries dealing with rural
development and food and disaster management are shown in chapters 1 and 10 respectively.
The development budget allocations for the ministries of Social Welfare, Women and Children
Affairs and Youth and Sports are shown in Tables 9.11 and 9.12 in current and constant prices.

Table 9.11: Development Resource Allocation for Social Protection under the Sixth Plan
(crore taka; current prices)
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Ministry
Ministry of Social Welfare 235 250 290 348 402
Ministry of Women and Children 209 247 286 343 396
Affairs and Youth & Sports
Total 444 497 576 691 798

Table 9.12: Development Resource Allocation for Social Protection under the Sixth Plan
(crore taka; 2011 prices)
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Ministry
Ministry of Social Welfare 235 233 252 284 309
Ministry of Women and Children 209 229 248 280 305
Affairs and Youth & Sports
Total 444 462 500 564 615

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 Table 9.13: Social Safety Net Programmes
(A.1) Cash Transfer (Allowances) Programmes & Other Activities:
(A.1.1) Social Protection
Coverage (Persons in lac/
Budget (Taka in crore)
Man Month
Sl Programmes
Budget Revised Budget Budget Revised Budget
(2010-11) (2010-11) (2011-12) (2010-11) (2010-11) (2011-12)
1. Old Age Allowance 24.75 24.75 24.75 891.00 891.00 891.00
Allowances for the Widow, Deserted and
2. 9.20 9.20 9.20 331.20 331.20 331.20
Destitute Women
Allowances for the Financially Insolvent
3. 2.86 2.86 2.86 102.96 102.96 102.96
Disabled
Maternity Allowance Programme for the
4. 0.88 0.80 0.92 43.20 36.96 42.50
Poor Lactating Mothers
Honorarium for Insolvent Freedom
5. 1.50 1.50 1.50 360.00 360.00 360.00
Fighters
Honorarium & Medical Allowances for
6. 0.08 0.08 0.08 63.11 83.07 68.45
Injured Freedom Fighters
Grants for Residents in Government
7. 0.16 0.16 0.18 25.72 22.90 28.66
Orphanages and Other Institutions
Capitation Grants for Orphan Students in
8. 0.48 0.48 0.50 42.00 42.00 63.00
Non-gov. Orphanages
9. General Relief Activities 5.00 5.00 5.00 42.19 326.97 53.32
Block Allocation for Disaster
10. 100.00 100.00 100.00
Management
11. Non-Bengali Rehabilitation 1.10 1.10 1.10 16.00 16.00 17.00
Allowances for Distressed Cultural
12. 0.01 0.01 0.001 1.50 1.50 2.00
Personalities/Activities
Pension for Retired Government
13. 3.25 3.25 3.25 3989.64 4003.13 4970.00
Employees and their Families
Ration for Shaheed Family and Injured
14. 0.25 0.25 0.23 33.58 27.00 25.00
Freedom Fighters
Subtotal: Lac-Man & Taka (A1.1) 49.52 49.44 49.57 6042.10 6344.69 7055.09

(A.1.2) Social Empowerment

1 Stipend for Disabled Students 0.19 0.19 0.19 8.8 8.8 8.8
2 Grants for the Schools for the Disabled 0.12 0.12 0.12 5.81 5.81 5.81
Subtotal: Lac-Man & Taka (A.1.2) = 0.31 0.31 0.31 14.61 14.61 14.61
Total: A.1 (A.1.1+A.1.2)= 49.83 49.75 49.88 6056.71 6359.30 7069.70

(A.2) Cash Transfer (Special) Programme

(A.2.1) Social Empowerment
1 Housing Support 1.00 1.00 1.00 5.52 5.52 6.10
2 Agriculture Rehabilitation 25.00 25.00 25.00 50.00 50.00 50.00
Subtotal: Lac-Man & Taka (A.2.1) = 26.00 26.00 26.00 55.52 55.52 56.10
Total: A (Taka)= 75.83 75.75 75.88 6112.23 6414.82 7125.80

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 Coverage (Persons in lac/
Budget (Taka in crore)
Man Month
Sl Programmes
Budget Revised Budget Budget Revised Budget
(2010-11) (2010-11) (2011-12) (2010-11) (2010-11) (2011-12)
(B) Food Security Programmes: Social Protection
1. 138.00 276.00 231.93 1190.00 2207.50 1848.00
Open Market Sales (OMS)
(Lac Man) (Lac Man) (Lac Man) (5.50) (11.00) (10.00)

2. 88.33 88.33 88.33 638.33 729.92 754.64

Vulnerable Group Development (VGD)
(Man Month) (Man Month) (Man Month) (2.65) (2.65) (2.65)

3. 122.22 122.22 104.44 1535.92 1473.64 1607.15

Vulnerable Group Feeding (VGF)
(Lac Man) (Lac Man) (Lac Man) (5.50) (5.50) (4.70)

4. 39.05 39.05 39.05 953.88 1039.67 1117.32

Test Relief (TR) Food
(Man Month) (Man Month) (Man Month) (4.10) (4.10) (4.10)

5. 80.00 80.00 80.00 223.41 263.76 273.56

Gratuitous Relief (GR)- Food
(Lac Man) (Lac Man) (Lac Man) (0.80) (0.80) (0.80)

6. 7.14 7.14 7.14 190.95 223.63 225.90

Food Assistance in CTG-Hill Tracts Area
(Man Month) (Man Month) (Man Month) (0.75) (0.75) (0.75)

7. 38.10 38.10 38.10 993.76 1294.00 1276.00

Food For Work (FFW)
(Man Month) (Man Month) (Man Month) (4.00) (4.00) (4.00)
Total (B Lac-Man) = 340.22 478.22 416.37 2949.33 3944.90 3728.71
Total (B Man-Month) = 172.62 172.62 172.62 2776.92 3287.22 3373.86
Total: B (Taka) = 5726.25 7232.12 7102.57

(C.1) Micro-Credit Programmes: Social Empowerment

Micro-credit for Women Self-
1 0.00 0.00 0.00 3.00 3.00 6.00
employment
2 Fund for Micro-Credit through PKSF 63.00 63.00 79.20 150.00 116.52 188.57
3 Social Development Foundation 200.00 214.00 118.44
4 NGO Foundation 6.50 6.50 10.00
Subtotal: Lac-Man & Taka (C.1) = 63.00 63.00 79.20 359.50 340.02 323.01

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 Coverage (Persons in lac/
Budget (Taka in crore)
Man Month
Sl Programmes
Budget Revised Budget Budget Revised Budget
(2010-11) (2010-11) (2011-12) (2010-11) (2010-11) (2011-12)
(C.2) Miscellaneous Funds: Social Empowerment
Fund for the Welfare of Acid Burnt and
1. 0.80 0.80 0.40 2.00 2.00 1.50
Disabled
Fund for Assistance to the Small Farmer and
2. 1.00 1.00 1.00 100.00 100.00 100.00
Poultry Farms
3. Swanirvar Training Programme 0.10 0.11 0.09 1.25 1.35 1.16
4. Shamaj Kallyan Parishad 0.14 0.14 0.18 9.26 9.26 11.95
Subtotal: Lac-Man & Taka (C.2) = 2.04 2.05 1.67 112.51 112.61 114.61
(C.2) Miscellaneous Funds: Social Empowerment
1. Fund for Climate Change 17.00 17.00 17.00 700.00 700.00 700.00

Allowances for Urban Low-income Lactating

2. 0.48 0.68 0.78 30.00 28.50 32.60
Mothers
3. Block Allocation for Various Programme 37.00 25.06 28.02 1508.64 1011.45 1330.68
Employment Generation Programme for the
4. 42.00 42.00 42.00 1000.00 1000.00 1000.00
Ultra Poor
5. National Service 9.48 10.23 15.22 190.00 200.00 305.00

6. Special Prog. for Irrigation and Water Logging 4.16 4.16 120.00 165.00 250.00

Skill Development Fund for Expatriate

7. 0.50 0.50 0.00 70.00 70.00 0.00
Returnees and New Entrants to Labor market
8. Child Development Center 0.02 0.00 0.00 5.41 1.00 3.00
9. Service and Assistance Center for Disabled 0.42 0.00 9.45 5.50 7.25
Rehabilitation and Creation of Alternative
10. 6.32 6.32 7.00
Employment for People Engaged in Begging
Subtotal: Man-Month & Taka (C.3)= 111.06 99.63 103.02 3639.82 3187.77 3635.53
(C.4) New Fund: Social Protection
1. Universal Pension Insurance Scheme 0.00 0.00 11.50
Construction of Sweeper Colony at District and
2. 0.00 0.00 10.00
Metropolitan Cities
Subtotal: Man-Month & Taka (C.4) = 0.00 0.00 0.00 0.00 0.00 21.50
Total: C (Taka) = 176.10 164.68 183.89 4111.83 3640.40 4094.65

Total: Protection - Lac-man (A.1.1+B) = 389.74 527.66 465.94 8991.43 10289.59 10783.80
Total: Protection - Man-Month (B+C3+C4) = 283.68 272.25 275.64 6416.74 6474.99 7030.89
Total: Empowerment: Lac-man
91.35 91.36 107.18 542.14 522.76 508.33
(A.1.2+A.2.1+C1+C2) =
Grand Total (A+B+C) = 15950.31 17287.34 18323.02
Total Non-development Budget = 86,266.00 92,837.00 116,313.00
Percentage to Non-development Budget = 18.49% 18.62% 15.75%

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 Coverage (Persons in lac/
Budget (Taka in crore)
Man Month
Sl Programmes
Budget Revised Budget Budget Revised Budget
(2010-11) (2010-11) (2011-12) (2010-11) (2010-11) (2011-12)
(D) Development Sector Programmes: Social Empowerment
D.1 Running Development Programmes
1. Stipend for Primary Students 78.00 78.17 78.17 750.00 865.00 879.99
2. School Feeding Programme 3.15 3.10 5.69 18.00 17.74 32.50
3. Stipend for Dropout Students 3.50 6.57 5.00 65.00 122.00 104.52
4. Char Livelihood 0.03 0.97 0.89 0.00
5. "Ashrayan" (Housing) 0.01 0.00 0.22 9.07 7.05 0.00
Stipend and Access Increase for Secondary
6. and Higher Secondary Level Students 36.00 38.92 37.05 677.30 672.89 634.11
(including Secondary
7. Maternal Health Voucher Scheme 1.80 1.79 2.44 66.40 66.20 90.00
8. National Nutrition Programme 2.28 2.18 1.83 225.00 215.00 181.00
9. Protection of Children at Risk 0.13 0.09 0.09 15.39 10.48 10.25
10. Economic Empowerment of the Poor 40.07 40.04 39.11 110.34 110.26 107.71
Fundamental Education for Urban Working
11. 1.20 1.36 0.61 45.00 51.00 23.00
Children
Employment for Ultra-Poor in Northern
12. 0.13 0.13 0.02 7.15 7.15 8.00
Region
13. Participatory Rural Development (2nd Phase) 1.29 0.97 2.38 8.26 6.20 15.23
Rural Employment Opportunity for Public
14. 0.25 0.25 0.22 77.69 77.69 37.83
Asset
"Gucchagram" (Climate victims rehabilitation
15. 0.38 0.36 0.26 62.08 58.94 43.00
project)
Rural Employment and Rural Maintenance
16. 0.46 0.46 0.69 140.00 140.00 134.00
Programme
Preliminary Education for Development of
17. 1.66 1.34 1.22 15.80 12.72 11.62
Children
Vulnerable Group Development for Ultra
18. 0.49 0.47 0.12 61.30 58.20 2.12
Poor (Women)
Construction of Flood-Shelter in Flood Prone
19. 0.07 0.00 0.00 6.23 5.52 0.00
and River-Erosion Areas
20. Disaster Risk Mitigation and Reduction 3.47 2.12 1.61 28.00 17.12 13.00
21. Small Farmers Development Foundation 0.60 0.60 0.60 10.00 10.00 10.00
Regional Fisheries and Livestock
22. 0.46 0.39 0.43 38.05 33.14 41.71
Development
Projects Undertaken for Fisheries
23. 1.03 0.85 1.13 61.32 46.96 65.18
Development
Jatka (Fish)Protection and Alternative
24. 0.28 0.35 0.35 6.04 7.49 7.50
Employment for Fishermen
25. Micro-Nutrient Supplementation 24.00 22.00 0.00
Post Literacy Education Project for Human 55.00 75.00 158.08
26.
Resource Development
27. One Household One Farm 6.35 6.34 6.17 269.77 192.14 343.03
* Revitalisation of Community Health Care
28. 330.00 210.00 430.00
Initiative in Bangladesh
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 Coverage (Persons in lac/
Budget (Taka in crore)
Man Month
Sl Programmes
Budget Revised Budget Budget Revised Budget
(2010-11) (2010-11) (2011-12) (2010-11) (2010-11) (2011-12)
29. Sisimpur Outreach Project 10.52 7.50 12.00
30. National Sanitation Project 20.00 20.00 15.00
31. Pulse and Oil Seed Project 20.01 19.44 20.35
Community Based Adaptation to Climate
32. Change through Coastal Aforestation in 0.08 0.04 0.05 11.77 6.06 8.00
Bangladesh
33. Comprehensive Village Development 2.19 1.48 2.56 20.00 13.50 13.50
Comprehensive Disaster Management
34. 60.50 50.70 50.70
Program
Urban Public Environment Health
35. 69.43 15.00 112.51
Development Program
Poverty Eradication and Ensuring Livelihood
36. for the People Living in Economically 0.07 0.07 0.19 11.00 11.00 30.00
Backward Areas.
Poverty Eradication through Social
37. 0.32 0.31 0.55 9.42 9.15 16.25
Aforestation.
Improvement and Quality Seed Production of
38. 109.73 120.04 49.70
Rice, Wheat and Maize.
39. Promotion of Legal and Social Empowerment 21.14 24.01 40.00
Subtotal: Lac-Man & Taka (D.1) 185.75 188.75 188.76 3546.68 3415.18 3751.39
D. 2 New Development Programmes
1. Ashrayan-2 Project 0.18 0.22 0.00 163.00 254.31
2. Rehabilitation of AILA Affected Rural Infrastructure 0.06 0.00 0.00 24.00
3. Mujibnagar Integrated Agricultural Development Project 1.07 0.00 0.00 53.40
4. Greater Comilla Rural Infrastructure Development Project 0.08 0.08 0.00 28.00 28.00
Vulnerable Group Development for Ultra
5. 4.86 0.00 0.00 121.93
Poor (Women)
Subtotal: Lac-Man & Taka (D.2) = 0.00 0.26 6.29 0.00 191.00 481.64
Total: Lac-Man & Taka (D) = 185.75 189.01 195.05 3546.68 3606.18 4233.03

Total: (Social Protection - Taka) = 15408.17 16764.58 17814.69

Social Protection (% to Budget)= 11.66 12.89 10.89
Social Protection (% to GDP)= 1.97 2.12 1.98
Total: (Social Empowerment - Taka) = 4088.82 4128.94 4741.36
Social Empowerment (% to Budget)= 3.09 3.18 2.90
Social Empowerment (% to GDP)= 0.52 0.52 0.53
G. Total: Beneficiary (Lac-man) = 666.84 808.03 768.17
G. Total: (Man-Month) = 283.68 272.25 275.64
G. Total: (Annual Lac-Man) = 23.64 22.69 22.97
G. Total: Taka (Social Protection & Empowerment) = 19496.99 20893.52 22556.05
Total Budget = 132170 130011 163589
Percentage to Budget = 14.75% 16.07% 13.79%
GDP = 780290 790366 899670
Percentage to GDP = 2.50% 2.64% 2.51%
Source: Ministry of Finance

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 CHAPTER 10: ENVIRONMENT, CLIMATE
CHANGE AND DISASTER RISK MANAGEMENT
SECTORAL OVERVIEW

Despite substantial initiatives taken by the Government of Bangladesh, development partners

and the NGOs, the state of environment, climate change and disaster occurrence in Bangladesh
is quite alarming. The Ministry of Environment and Forests has taken several environmental
management initiatives to facilitate sustainable development including National
Environmental Management Action Plan, Sustainable Environment Management Program,
Climate Change Strategy and Action Plan, National Plan for Adaptation to climate change,
biodiversity strategy and action plan for persistent organic pollutant (POPs) management. In
addition, actions relating to the phasing out of Ozone Depleting Substances, control of air
pollution, social forestry, coastal aforestation, promotion of smokeless brick kiln have been
taken. At the same time, the Ministry of Food and Disaster Management has been successful
in shifting the paradigm from relief culture to risk reduction management involving
comprehensive disaster management program, cyclone preparedness program in coastal areas,
and a huge safety net support program. All these initiatives have yielded a number of
encouraging results in terms of environmental protection and disaster management.
Nevertheless, the challenge for environmental management remains huge and requires
continuous efforts over the longer term.

With a view to achieving the goal of sustainable development, the SFYP is focusing on
integrating poverty, environment and climate change into the process of planning and
budgeting. In this context, appropriate policy and institutional capacity building for sustainable
land-water management, biodiversity conservation and climate resilient development are
crucial. Environment, climate change adaptation and mitigation, and disaster risk reduction
must be addressed in a broader development context, recognizing climate change as an added
challenge to reducing poverty, hunger, diseases and environmental degradation.

Building resilience to ongoing and future climate change calls for adaptation as well as
mitigation measures by addressing existing problems in environment, land and water
management. Climate change, and increased climate variability, impact primarily through
water and biological processes with implications for land use. Disaster risk reduction and
climate change adaptation efforts reduce people’s exposure to climate-related disasters and,
early warning and enhanced coping capacity limit their impact on people’s lives. In this
context, strengthening institutions for environment, disaster, land and water management is
crucial for effective adaptation and such effort should build on the principles of participation
of community.

439
In international negotiation, Bangladesh being the most vulnerable country should raise voice
on adaptation as an additional development challenge. Additional and substantial increase in
financing is needed to improve adaptive capacity of rural households and land and water
management systems. Development budgets are already under high pressure from severe and
frequent cyclones and global financial and economic crisis. There is a need to influence and
ensure the development of financing mechanisms capable of generating sufficient resources
and delivering them in a manner that minimizes complexity and supports the integration of
adaptation concerns into broader development agenda.

Understandably, the adverse interactions of environmental degradation and climate change

could have severe consequences on citizen’s welfare, especially for the poorer segment that
may not have adequate access to coping mechanisms. Indeed, degradation of land, water,
frequent flooding and cyclones, rising levels of sea water can easily threaten the sustainability
of poverty reduction strategies unless appropriate measures are taken to protect the
environment and address climate change issues. Similarly, effective disaster management
strategy for tackling natural disasters is also crucial for the welfare of the poorer segment of
the society.

Environment Issues Linked to Poverty Reduction and Sustainable Growth

In the last two decades Bangladesh has made significant progress in terms of reducing
population growth to 1.7% per annum, increasing economic growth to about 6% per annum,
and almost halving the percentage of population considered hard core poor. Despite such
achievements, Bangladesh faces serious challenges in the context of sustainability. The
population is set to be doubled by 2050, reaching some 270 million and it is predicted that
most of the additional people will live in the rapidly growing urban areas. In addition, climate
change is predicted to raise average sea levels by around 30 cm by 2050, and could make an
additional 14% of the country extremely vulnerable to floods by 2030.

Given its demographic, socio-economic and resource context, Bangladesh can be said as a test
case of sustainable development. Such efforts can be undermined both by poverty and
economic growth-induced pollution. With lack of access and property right to natural
resources like land and water, the poor often live on marginal lands and degrade the
environment to meet their basic needs. On the other hand, growth-induced environmental
degradation affects the livelihoods and health of the poor as they find work or low cost living
space in vulnerable locations. While emphasizing that economic growth is essential to reduce
poverty, a careful balancing act must be orchestrated where economic growth is maximized
without compromising environmental protection. Maintaining this balance, through selected
trade-offs, is vital to the poor for three reasons:

440
Livelihoods: The livelihoods of the poor of Bangladesh depend crucially on natural resources
like land, water, agricultural products, forests etc. Over two-thirds of the labor force directly
depends on a variety of environmental resources for their livelihood support. However,
population-induced pressure as well as growth-induced degradation of the limited natural
resources of the country, particularly land (high population density, loss of 1% of cropped area
per year, soil erosion, loss of nutrients), water (declining dry season surface water area and
quality), fisheries (declining inland capture fisheries, loss of wetland habitat) and forests (only
about 10% of the country, with much degraded) is having adverse consequences on the
livelihoods of the poor.

Health and the environment: The World Bank’s recent Country Environmental Analysis
(CEA) estimates that environmental factors account for as much as 22% of the national burden
of diseases, particularly in the form of respiratory infections from indoor and urban air
pollution and diarrheal diseases. High use of chemical fertilizers in agriculture, and release of
untreated effluents into the open water bodies by a growing number of industries are also
responsible in this regard. In addition, food safety of the country is challenged due to poorly
regulated environment, production and processing, lack of sanitary storage facilities etc. The
CEA argues that achievable goals for reduced exposure to environmental health risks could
result in economic savings equivalent to as much as 3.5% of Bangladesh GDP.

Livelihood vulnerability: The geographical location of Bangladesh in the confluence and

delta of three mighty rivers – Ganges, Brahmaputra and Meghna, at the head of the Bay of
Bengal, and near the eastern Himalayas, has made it extremely vulnerable to natural hazards
e.g. floods, cyclones and occasional earthquakes. These hazards are exacerbated by lack of
land use zoning, indiscriminate filling of water bodies and wetlands, and in the long term by
human-induced climate change.

Women and environmental issues: Women undertake crucial roles in environmental

management such as water supply and sanitation, agricultural production, hygiene education at
the household level etc. Thus women needs to actively participate in decision making during
planning, operations and maintenance etc. through social mobilization and hygiene education
in coordination with all relevant organizations and ministries, NGOs, CBOs, local government
bodies and other related agencies. In urban slums and rural areas women are responsible for
collecting water, fuel, fishing, home gardening, planting, feeding, etc. However in reality,
most women are not included in policy decision even if such decisions often affect them in
disproportionate and negative manners.

PROGRESS WITH ENVIRONMENTAL MANAGEMENT

Degraded environment implies that there are fewer resources available not only for the present
but also for future generations, implying greater risk of unsustainability. It creates adverse
impact on both production and consumption activities of the people. With this realization, the

441
Department of Environment (DoE) has been working for the conservation of environment and
undertaking various activities to prevent environmental degradation.

Government Programs for Environmental Management

The DoE is formulating and implementing policies and programs that ensure a realistic
balance between the existing livelihood requirement of the people and sound environmental
resource management. A major part of its activities include environmental impact assessment
carried out through the Environment Conservation Rules promulgated under the Environment
Conservation Act 1997. These programs will be continued and would be strengthened during
the SFYP. Programs undertaken by the GOB include raising awareness on environment,
environmental management and its monitoring, implementation of the international
conventions and protocols signed by the government and programs to implement existing
environmental laws of the country.

Besides completing a large number of projects during the previous plans, GOB is engaged in
implementing a number of programs to improve as well as to protect the environment. A brief
listing of these programs is:

• Control of Air Pollution

• Controlling Industrial Pollution
• Conservation of Ecosystem
• Partnership Program for Environment Protection
• Conservation of Biological Diversities
• Protection of the Ozone Layer
• Measures toward Management of Wastes
• National Bio-Safety Framework
• Control of Noise Pollution
• Saving the River
• Generating electricity from waste
• Declaring Ecologically Critical Areas
• Reduction in the Production and Use of Black Polythene
• Poverty-Environment-Climate-Disaster Nexus Initiative in National Planning Process

Controlling Air Pollution

The Environment Conservation Rules, 1997 (ECA 97) have undergone amendment through
incorporation of relevant sections towards effective control of various aspects of air pollution.
To improve the rising trend of air pollution situation in Dhaka city two-stroke three-wheelers
have completely been made off-road since 1 January, 2003. Air Quality Standards mentioned
in Schedule-2 of ECR, '97 have undergone amendment on 19 July, 2005. Air Quality Index
has been published on the basis of the state of day to day air qualities. On the same date of
2005, the Vehicular Emission Standards mentioned in Schedule-6 of the above rules have also
442
been amended. With the help of mobile monitoring vans equipped with testing systems, the
Department of Environment is testing for emissions from on-road automobiles as per Revised
Standards for Vehicular Emissions.

Five Continuous Air-quality Monitoring Stations (CAMS) have been set up in the country
under the Air Quality Management Project (AQMP) implemented by the Department of
Environment . Two of such CAMS are located in the city of Dhaka, while of the rest three, one
each in the cities of Chittagong, Rajshahi and Khulna. Besides, a couple of Mobile Air-quality
Monitoring Stations (MAMS) have also been acquired for measuring air pollution at local
levels in various other areas. AQMP has opened a web-site to provide information and data
pertaining to air pollution and to create and enhance public awareness of the Issue.

The Department of Environment is implementing Clean Air and Sustainable Environment

(CASE) Project to address different air pollution issues to improve urban air quality. MoEF
has also taken initiative to promote energy efficient brick-kiln in protection of air pollution
and loss of valuable forest resources and crop land from degradation. To reduce the emission
from brick kilns, DoE recently issued public notice that fixed chimney with 120ft stack will
not be allowed after 2010 and Zigzag, Hibride Hoffman and Vertical Shaft Brick Kiln types of
brickfields are being encouraged to replace the conventional one. A number of activities have
been undertaken to control toxic emissions and for resolving the problem of traffic jams in
Dhaka City. The activities include administering of mobile court at different points in the city.

Control of Vehicular Air Pollution

Vehicular emission is identified as one of the major sources of air pollution in urban air shed.
To reduce the vehicular emission CASE project will undertake activities to improve traffic
mobility and pedestrian safety enforce vehicular traffic mobility and pedestrian safety enforce
vehicular traffic mobility and standards through road site monitoring of vehicles. The activities
also include administering of mobile court at different point in the city.

Control of Noise Pollution

For the limitation about controlling noise pollution in Environment Conservation Act, 1995
Noise Pollution Control Rules, 2006 was enacted in the light of opinion of common people
including government and non-government organizations. Among the multidimensional
pollutions, noise pollution is one of the worst pollutions in some of the cities of Bangladesh
including Dhaka City. The Ministry of Environment and Forests has set a target of reducing
the noise pollution level 45-55 db from 90- 110 db by FY10

Managing Industrial Pollution

Environmental Clearance Certificates (ECCs) are being issued from the Department of
Environment to proposed industrial enterprises in pursuance of ECA, '95 and ECR, '97 only
after getting ensured that the proposed sites of such industrial enterprises are acceptable and

443
also that the anticipated pollution loads due to such industries will be within acceptable limits.
In case of highly polluting industries, ECCs is accorded only after construction of and
establishing Effluent Treatment Plants (ETPs) within them and on the basis of proven efficacy
of such ETPs.

During a survey covering 11,149 industrial units conducted during 2002-2005, the Department
of Environment had identified 524 falling under the Red Category as per ECR, '97. Among the
above-identified 524 red-listed industrial units, 417 were found to have constructed their ETPs
in their own initiative while 105 had no ETP at all.

Conservation of Biological Diversities

The Government of Bangladesh in 1999 declared 8 areas of Cox's Bazar and Teknaf
Peninsula, St. Martin's Island, Sonadia Island, Hakaluki Haor, Tanguar Haor and Marjat Baor,
the Gulshan-Baridhara Lake and 10 km land ward periphery of Sundarbans as Ecologically
Critical Areas (ECAs). Later in 2009, 4 rivers around Dhaka city (Buriganga, Shitalakha, Balu
and Turag) were declared as ECA’s making the total No. 12. The GEF/UNDP assisted project
titled Coastal and Wetland Biodiversity Management at Cox's Bazar and Hakaluki Haor
(CWBMP)' which is being implemented by the Department of Environment, has been
undertaking various programs towards conservation of the biological diversities of 4 ECA’s
namely Cox's Bazar- Teknaf Peninsula, Sonadia Island, St. Martin's Island and Hakaluki Haor.
The aim is to ensure conservation, management and sustainable use of the biological and other
resources of the ECA’s through establishing institutional arrangement.

Ecosystem

The Government has issued a notice to impose a ban on illegal hill cutting on March 2002 by
considering the importance of hill for a balanced ecosystem and environment. Tendency for
illegal cutting of hills has been reduced a lot as a result of gradual increase of awareness about
hill cutting.

A notice declaring ecologically critical areas was issued on April 19, 1999. These areas
include ten kilometers around the Sundarbans Reserve Forests, Cox's Bazar and Teknaf sea
shore, Saint Martin's Island, Sonadia, Hakalukee Haor, Tanguour Haor, Marjat Haor and
Gulshan Lake. Activities banned in these areas include felling or collecting trees from these
areas; hunting, catching or killing wildlife; industrial development; fishing and other activities
that might affect fish and other aquatic life; and any activity that could destroy or change the
natural characteristics of soil or water.

Protection of Ozone Layer

Bangladesh has been among the few countries which have earned remarkable successes in her
efforts related to relevant aspects of global action towards protection of the ozone layer. After
accession of the Montreal Protocol on ‘Substances that Deplete the Ozone Layer’ Bangladesh

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has ratified all of its amendments viz., London amendment, Montreal amendment,
Copenhagen amendment and recently in 2010 Beijing amendment. Bangladesh has completely
phased out CFCs (Chlorofluorocarbons) from aerosol sector, refrigerator and air-conditioning
sector, and other commercial sector since 1 January 2010. In pharmaceuticals sector, small
amount of CFCs are being used to manufacture metered dose inhalers (MDIs) for asthma and
COPD patients under essential use nomination (EUN) of Montreal Protocol. By 2012,
complete phase-out of CFC seems feasible. Transition strategy and conversion projects to
facilitate the MDI producing companies to phase-out CFCs in the manufacturing of MDIs are
being implemented.

Since 1 January 2010, Bangladesh has completely phased-out CTC (Carbon Tetra Chloride)
and Methyl Chloroform (MCF) from solvent sector. In addition, from 1995 Bangladesh has
stopped using MBr (Methyl Bromide) for quarantine and pre-shipment uses. It has been using
heat treatment method as an alternative to MBr in quarantine and pre-shipment uses.

Besides CFC, CTC, MCF, it is a challenge for Bangladesh to phase-out hydro

chlorofluorocarbons (HCFCs), comparatively low ozone depleting potential refrigerators and
blowing agents (used in foam industry). Steps have been taken to design an HCFC Phase-out
Management Plan (HPMP) to phase-out remaining ODSs while taking into account the issue
of climate change

Management of Wastes

With the rise in population, especially in the urban areas, domestic and other forms of wastes
have increased both in dimension and in quantities. Waste management programs are being
implemented all over the world through reduction of volumes and quantities of wastes, waste
re-use and waste recycling. In Bangladesh, National 3R (Reduce, Re-use and Recycle)
Program has been under implementation toward reducing, re-use and recycling of various
forms of wastes through the assistance of the United Nations Centre for Regional
Development (UNCRD). A national strategy on Waste Reduce, Reuse and Recycle (3R) for
Bangladesh has been formulated.

With the increase of livestock and poultry population in country, huge amount of cow-dung
and poultry litters are produced everyday.These organic materials may be used as a good
source of renewable energy and organic fertilizer.

Saving the River

The Department looked into how to reduce the levels of illegal encroachment on the banks of
the Buriganga River and the amount of pollution in the river. As part of this program, the
following activities were undertaken:

• Surveying different structures on the riverbanks and determining how the settlers acquired
the land and formulating plans for future activities.

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• Identifying polluting industries on both banks of the river, classifying and making
recommendations to reduce pollution. Assessing the disposal rate and degree of pollution
of tributaries of the Buriganga River and making recommendations for treatment.

Under this program, an inter-ministerial committee with two sub-committees has been formed.
The role of these sub-committees is to remove people living illegally on the banks of the river
(encroachers) and to control and reduce pollution of the river. The draft report of the sub-
committee for removing the encroachers is now under consideration by the convener of the
subcommittee. After thorough review, it will be sent to the Ministry of Environment and
Forests for final approval. In addition, a demonstration project looking at pollution prevention
and control in the Buriganga River is being carried out by the 'Bangladesh Environmental
Management Project. Its focus is on conducting surveys and reviewing pollution levels in the
river to establish baseline conditions; designing and implementing a strategic pilot monitoring
and compliance action program for preventing and controlling pollution on a portion of the
river to assess its effects. It can be applied to the entire river; developing a process for
evaluating and revising pollution control standards; building enforcement and regulatory
competency and capacity within Department; and after identifying the stakeholders,
developing with them a strategy for implementing non-regulatory measures, including
awareness-rising. The Inter-Ministerial Committee visited the Buriganga River around Dhaka
City and removal of submerged waste has been started from January, 2010:

• Carryout river water quality monitoring program, observe water quality trend, figure out
the causes, sources, and prepare and enforce action plan.
• Undertake surprise visit to industrial units to identify non compliance polluting industries
and take necessary administrative and legal actions against them.
• Following the High Court verdict on a public litigation a draft guideline have been
prepared for conservation of river surrounding Dhaka city and to declare as Ecologically
Critically Area (ECA).

Ban on Polythene Shopping Bag

With effect from 1st March, 2002, the GoB has imposed ban on the production and use of all
kinds of polythene shopping bags throughout the country. In the same year, a new section
named “6 ka” was inserted into the Environment Conservation Act 1995. Afterwards, in
consultation with different trading associations and chamber of commerce and industries and
in consideration of the difficulties faced by them in marketing food items and other essential
commodities, the government with its authority by “6 ka” of Environment Conservation Act,
made waiver of using polythene shopping bags not less than 55 micron thickness for the
purpose of packaging the materials. Moreover polythene shopping bag with 35 micron
thickness is allowed for transportation of fish stock. The DoE is vigilant and frequently
organizes mobile courts to enforce the ban on polythene.

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Medical Waste Management

For safe and environment friendly management of medical wastes, the government
promulgated Bangladesh Medical Waste (Management and Processing) Rules 2008 under
Bangladesh Environment Conservation Act 1995. This rule properly addresses
environmentally sound segregation in source packaging, storing, collection, transportation,
treatment and final disposal of medical waste. Private specialized organizations are actively
involved in this area in collaboration with City Corporation and Municipalities. Dhaka City
Corporation is the pioneer in engaging private organization effectively to deal with the
medical waste management in Dhaka city. With the support from JICA, Dhaka City
Corporation is also undertaking a 20 year master plan for solid waste management.
Department of Environment is providing overall guidance and regulatory requirements as per
Environment Conservation Act and Rules.

NGO Activities for Conservation of Environment

In alliance with the Government, a number of NGOs have been working to address
environmental problems and to improve environmental system of the country since 1980s. The
NGOs play an important role in motivating people at the grass root level to protect
environment and to take coordinated efforts in solving environmental problems. There are
NGOs which are playing commendable role in projecting environment. Included among them
are: International Union for the Conservation of Nature (IUCN), Centre for Sustainable
Development (CSD), Bangladesh Centre for Advanced Studies (BCAS), Environmental
Conservation Management Centre, Waste Concern, Bangladesh Paribesh Andolon (BAPA)
and Bangladesh Environmental Lawyers' Association (BELA).etc.

Conserving Forestry Resources

The Forest Department plays an important role in the development of physical, socio-
economic development, maintenance of environmental balance and sustainable land based
production system. The forest management system of Bangladesh is an age-old system. At the
beginning, the main task of the forest department was to protect the forest and to ensure
sustained yield management. The present Government has taken up a plan to bring 20 percent
of our land under aforestation programs by 2015 to attain self-sufficiency in forest resources
and maintain ecological balance. Co- management has been initiated in 19 out of 28 protected
areas to promote conservation of bio-diversity and the protection of wildlife.

Social forestry program is one of the important programs of the Forest Department. Since
1981, the Forest Department implemented four social projects with the financial assistance
from the Asian Development Bank (ADB). The Forest department has been successfully
implementing these social forestry programs. During the last three years, the DoF has provided
training in social forestry to 46021 persons which have allowed the poor village people to
benefit from common property.

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Through different social forestry projects, 56,484 hectares encroached and degraded forest
area has already been bought under social forestry. In the three coming years, activities will
continue to control soil erosion and forest land erosion as well as to stabilize new char land.
Also there will be activities for improvement of soil quality and for this purpose, block
plantation in 51,000 hectares of land, strip plantation in 7,855 km, homesteads and
institutional plantation and the sale and distribution of 43.80 lac seedlings among the people.
The poor and marginal farmers are participating in the social forestry programs and there is a
legally binding definite share of benefit for them. Currently, the Forest Department has been
implementing 21 development projects and 13 development programs to increase the forest
resources as well as poverty reduction in the country.

After joining the plantation program, the social restrictions on women employment has largely
been removed. Social forestry is not only producing wood, fuel-wood and fruit and improving
environmental condition, it is also playing a significant role in reducing poverty.

Environmental Health

Environmental health comprises those aspects of human health and disease that are determined
by factors in the environment. It also refers to the theory and practice of assessing and
controlling factors in the environment that can potentially affect health. Important sources of
environmental health risks include industrial and medical waste, air emissions and water
discharges, human waste, consumer products, living conditions, and ionizing and non-ionizing
radiation. Health effects with known or suspected environmental etiologies include various
health impacts of climate change, cancer, cardio-pulmonary diseases, asthma and other
respiratory diseases, allergies, neuro-toxicity and neurological impairment, gastro-intestinal
diseases, developmental and congenital abnormalities, and acute and chronic poisoning.

At present, Bangladesh is not fully aware of quantified estimates of the environmental-health

burden. Given what is known about environmental health in other countries, it may be
assumed that pollution and potentially environmental-related disease in Bangladesh is likely to
be significant. But Bangladesh lacks sufficient expertise to assess this burden and has only
limited environmental and health policies designed to reduce it. The core functional
components of a national environmental health program should include an integrated research
strategy, capacity development to monitor, assess and reduce environmental health risks and
hazards, and academic and technical training for the expertise required to inform policy,
develop regulatory standards, and guided decision-making. In order to create comprehensive
environmental health capacity and a functional environmental health program in Bangladesh,
there is need for improvement across sectors, including academia and research, government,
industry and NGOs, as well as coordination and cooperation among these institutions.

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The Bangladesh National Herbarium

The Bangladesh National Herbarium (BNH) is a research organization under the Ministry of
Environment and Forest which deals with the exploration, collection, identification and
preservation of plant resources of the country. All sorts of information of plant including
diversity, abundance, locality, traditional uses etc. are preserved at Bangladesh National
Herbarium. It plays an important role in the conservation of biodiversity and environment. The
collection of the herbarium is a national property that goes down to the posterity through
generations and work as reference materials on the flora of the country.

Since its creation in 1970, BNH has collected and preserved about one lac plant samples
(including the duplicates). Detailed taxonomic descriptions with economic importance and
botanical illustrations of 72 plant families in 60 fascicles have been published by the BNH
under the Flora of Bangladesh. Other important works of the national herbarium include
“Survey of Flora” under National Conservation Strategy (NCS), “Aquatic Angiosperms of
Bangladesh”, “Red Book of Vascular Planta of Bangladesh” and many other books/research
papers related to plant taxonomy. In addition National Herbarium has published “Traditional
Uses of Ethno medicinal Plants of the Chittagong Hill Tracts” based on medicinal plants used
by the tribal people of Chittagong Hill Tracts with the collaboration of the Ministry of
Chittagong Hill Tracts. Apart from this, Bangladesh National Herbarium was actively engaged
in the implementation of the project on the “Encyclopedia of Flora and Fauna of Bangladesh”
sponsored by the Ministry of Environment and Forest. Furthermore, National Herbarium is
preparing a database that will provide information on the collections of Bangladesh National
Herbarium as well as of various plant species of the country.

Mainstream Poverty-Environment-Climate Nexus in National Planning Process

Poverty environment-climate mainstreaming aims to reverse environmental degradation in

ways that will benefit the poor, and to enable sustainable economic development. Any poverty
reduction effort must fully take into account the country’s vulnerability, susceptibility and
capacity to manage environmental and climate risks and adaptation. This requires changing
processes and decisions that impact on the environment. However, past experience suggests
that many of these processes and decisions are outside the direct control of environment
institutions. In Bangladesh, key institutions that impact on pro-poor environment outcomes
include Planning Commission, Ministry of Planning, Ministry of Environment and Forest and
Ministry of Finance. So it is vital that environment and climate issues that matter to the poor
are “mainstreamed” into these institutions and their political and economic processes and
decisions. The indicators for successful PECM are institutions, policies and investments that
do not undermine pro-poor environment outcomes, instead positively contribute to livelihoods
of both men and women.

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Environmental Management Targets in the SFYP

• Increase productive forest coverage by 2 percentage points.

• Territorial coverage of protected area increased to 5% including Community
Conservation Area (CCA) and Ecologically Critical Area (ECA)
• Improve air quality in Dhaka and other large cities and enacted Clean Air Act
• Treat all urban waste water by FY15 to clean river waters
• Promote Zero discharge of industrial effluents.
• Urban wetlands are restored and protected in line with Wetland Conservation Act
• At least 10% of the wetland in peak dry season is protected as aquatic sanctuary
• Jolmahal leasing system phased out in favour of pro-poor community based management
• Regeneration and aforestation of 25,000 hectares of fresh water swamp forest in haor
basin.
• Risk Atlas for at least 7 cities/towns developed by 2015.
• 500 meter wide permanent green belt established and protected along the coast
• Eco-tourism promoted at least in 15 protected areas and ECAs
• Comprehensive Marine Resources Management Plan developed
• Land zoning for sustainable land/water use completed.
• Environmental, Climate Change and disaster risk reduction considerations are integrated
into project design, budgetary allocations and implementation process.
• Canals and natural water flows of Dhaka and other major cities restored.
• Increase energy efficiency by 10%

Challenges for the SFYP

Overall Challenges: Despite progress made in strengthening the implementation of

environmental protection program, there is a substantial unfinished agenda that will need to be
addressed in the SFYP. The most challenging task before us is to create a nexus of poverty,
environment, climate change and disaster in the project/program planning and implementation
process. Poverty, growth and environmental sustainability are inextricably bound together in
Bangladesh. Some 32% of the population are poor and depend on an over-exploited and
degrading natural resource base. Industrial and urban growth will improve economic
livelihoods but already there are serious threats to environment and human health. Meanwhile,
the vulnerability of the poor in a hazardous environment is set to be worsened by climate
change and disasters. Addressing poverty-environment-climate-disaster issues is critical in
assisting Bangladesh to meet its commitment to ensuring environmental sustainability (as part
of the Millennium Development Goals). Amongst the most important challenge is
environmentally sustainable use of natural resources and proper waste management that
continues to pose serious health risks. Bangladesh remains a very poor country with large
slums and weak urban services. Accordingly, proper waste management is a serious
challenge. The air pollution is another top health concern that requires more effort. The DoE
needs to be considerably strengthened, particularly to enable it to undertake environmental
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impact assessment as mandated by the Environment Conservation Rules promulgated under
the Environment Conservation Act 1997. Enforcement of environmental standards is also a
serious challenge.

Environmental Governance Challenges

Bangladesh in general is characterized by weak governance, and this is no different in the

many aspects of environmental management. Institutional capacity is limited to ensure
effective law enforcement, institutions have ill-defined responsibilities, transparency and
accountability are also limited, and there are conflicting objectives in the extensive set of
policies and plans that impinge on sustainable development. In response the government is
working to reform the governance of the country, to reduce corruption and improve
enforcement of the existing laws and standards. This offers opportunities for poverty
environment mainstreaming. The governance is characterized by:

a) National government: limited implementation with some recent improvements;

b) Local government: decentralization being expanded, but poverty environment aspects need
to be developed as a positive opportunity;

c) Civil society: diverse but fragmented;

d) NGOs: Over 12,000 NGOs in Bangladesh are part of a highly diverse sector ranging from
vast service providers to small local welfare groups, pressure groups, and service
contractors;

e) Private sector: huge potential for increasing incentives and motivation; and

f) Development partners: interest of most development partners on environmental issues is

decreasing alarmingly

Challenges of natural resource management

Common Property Rights: Public commons includes natural resources such as land, open
water resources in wetlands, forests, grasslands, grazing land, reed land, khas land, peat land,
rivers, estuaries and the open seas. About 80 percent of the population depends directly or
indirectly on the utilization of these resources. Increasing access to natural resources for rural
poor is essential for reducing poverty. However, the resource base for poverty reduction are
shrinking and degrading. The reasons are.

Integrated floodplain management: Agriculturist view floodplain as rice production fields.

The fisheries sector sees floodplain as fish production grounds. Overall the national emphasis
has been to produce more rice ignoring other benefits and products thus converting natural
wetlands into rice fields. To the community dwelling in and around a floodplain it is their
livelihood, not just a rice field. Floodplains provide many products and services which have
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been utilized by many people in rural communities for generations. Wetlands also are
significant for the local and regional environment, including for biodiversity conservation.

River and other water body encroachment: A lot of causes are responsible for river and other
water body encroachment in Bangladesh. Around 80 percent people of rural area are
dependent on the river and surface water sources but due to severe encroachment and pollution
of these water bodies, they cannot fulfill their daily demand. Several fish species and their
breeding grounds are already lost and many are losing drastically. As the destruction process
increase the concerned stakeholders such as fishermen, potter men, boatmen and boat makers
etc are shrinking and becoming jobless and poor.

Wetlands: Wetlands in Bangladesh include ox-bow lake or baor, haor, beel, jheel, etc. are rich
in vegetations, aquatic plants, reeds, algae and other aquatic fauna including diversity of
fisheries. Wetlands have significant ecological, economic, commercial and socio-economic
importance. The rural poor people mostly depend on these habitats for their livelihoods
through fisheries, tourism activities, extraction of reed, harvesting of edible aquatic vegetation
and their products, medicinal herbs, shell etc. Over the past 30 years, fishermen’s yields have
decreased by 40 percent due to disappearing water sources.

Agricultural sustainability: Bangladesh has a total land surface of 12.31 million hectares, of
which presently 7.85 million hectares are under agriculture, but this land is shrinking every
year due to population growth. For example, in 1983-84, there was 20.0 million ha of total
cultivable land, which dropped to 17.5 million ha in 1997. Modern agricultural development
depends on HYV seeds, fertilizer, pesticide, herbicides which leads to build-up of toxicity.
Clearing of vegetation, earth removal, road construction, shifting cultivation (Jhum) in the
Chittagong hill regions, and cultivation practices in the Barind and Madhupur tracts etc. cause
most of the land degradation. Increase in salinity of topsoil of the coastal districts has
negatively affected agricultural production. Since the operation of Farakka barrage, the
environment in the southwest region of Bangladesh has been adversely affected by increase in
salinity.

Fisheries sustainability: Fisheries in Bangladesh are classified into capture fishers and
aquaculture farmers. There are also culture-based inland fisheries, in which the natural
productivity of the aquatic ecosystem is utilized, though fishermen need to acquire access
rights. An estimated 1.3 million people depend on fisheries for livelihood. Poor fishermen in
Bangladesh are disadvantaged by policies that favored powerful people leasing fishing rights.
Coastal shrimp aquaculture of Bangladesh inside the embankments has been boosting the
national economy, in particular the poverty prone coastal peoples. Development of shrimp
aquaculture has created negative environmental impacts such as habitat destruction, pressure
on fisheries resources, salinisation of agricultural land, pathogen intensity due to introduction
of exotic species and nutrient pollution. Presently shrimp farming is the best option for
providing relatively well paid employment to the poor. However the unplanned shrimp culture
expansion has led to social conflicts over land tenure and user rights, leading to
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marginalization of small rice farmers who have been forced to lease out their lands to large
shrimp farmers.

Haor development: Northeastern part of Bangladesh especially Sunamganj, Sylhet and

Netrokona districts are located in one of the depressed geographical regions of the country.
Most of the rivers in these areas originated from nearby hilly areas of India. These rivers are
extremely flashy and are characterized by sudden and wide variations in flow as a result of
excessive rainfall. When heavy rainfall occurs in the hilly regions of India, water quickly
moves towards the haor areas of Bangladesh through a number of rivers and canals. In such
situation, standing crops generally cannot be harvested, communication disrupted and basic
services and facilities become inaccessible for the affected community.

Livestock sustainability: Livestock rearing is one of the major means of earning for the poor
people. As the population of the country is increasing the grazing land are becoming scarce.
The nutrient cycling, soil organic contents and fertility for the production of the natural
resources are also hampered. Thus dependency of the poor drastically decreases from this
sector (i.e. rearing of goat, buffalo, cow, etc) particularly from the salinitized coastal areas.
This sector is now suffering from bird flu, malnutrition etc. The first officially announced bird
flu outbreak in Bangladesh occurred in February 2007. AI has caused a loss of more than Tk
4,100 crore. A large number of peoples lost their livelihood due to bird flu outbreak and many
more may lose their jobs.

Forest sustainability: Poverty reduction through social forestry is now success story within
Forestry Sector of Bangladesh. About 0.335 millions rural poor are now engaged directly to
the participatory co-management approach in the social forestry program. Total forestland of
Bangladesh is about 2.53 million hectares covering about 17.14 percent of the country.
However rapid deforestation is also taking place because of population increase, increased
demand for forest products, conversion of forestland into agricultural, industrial land,
urbanization and development of infrastructures. Forest coverage declined from about 15
percent of the total area to 5 percent. Deforestation rate was 0.9 percent in 1970, but rose to
2.7 percent in 1984-90. Bangladesh has less than 0.02 hectares of forest land per person, one
of the lowest ratios in the world. If the current trend continues, forests are likely to disappear
in the next 35-40 years.

Ecosystem and biodiversity loss: Population pressure, conversion of forestland and wetland
into agricultural land, overexploitation of forest products and excessive withdrawal of water,
relentless wetland depletion due to overexploitation of both flora and fauna are causing great
harm to biodiversity. Agro-diversity has gone down and this limits potential of further growth
in this sector. A large section of terrestrial diversity of plants and animals is being threatened
due to deforestation. Similarly, aquatic diversity is also under pressure due to the drying up of
rivers, reduction of flow of water, and accumulation of pesticide residues.

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Protected area (PA): There are 16 Protected Areas in Bangladesh, of which 7 are National
Parks, 8 Wildlife Sanctuaries and 1 Game Reserve. The total area of PA is 244,182 hectares
which is 9.7 percent of the total forests areas of the country. Out of 16 Protected Areas, 15 are
notified under the Bangladesh Wildlife Order 1973. The biggest protected area in Bangladesh
is the Sundarbans (a World Heritage Site) West Wildlife Sanctuary with an area of 71502.13
hectares and the smallest Protected Area is the Ramsagar National Park with an area of 27.76
hectares. There are 4 Marine protected areas, of which 3 are wildlife sanctuaries situated in
Sundarbans and one is Nizum Dweep National Park situated in the mangrove forests in
Noakhali. Biological zoning approach has been adopted in PA to ensure the protection of
wildlife species and floral habitats.

Ecologically critical areas: Government of Bangladesh has declared 11 areas as Ecologically

Critical Area (ECA) under environmental conservation act, 1995. This is usually the
development control zones to enhance the power of community based conservation initiatives
as opposed to the complete protection in protected area systems around the country.

Coastal zone management: The coastal zone of Bangladesh is highly fertile and characterized
by rich biodiversity and natural resources. Recently, coastal Bangladesh has also attracted
attention for its high potential of inshore and offshore natural gas, minerals, aquaculture, food
availability, tourism industry and tidal power. However, this zone is extremely susceptible to
the impacts of natural disasters such as cyclones, sea level rise, storm surge and loss of
habitable land mass. Coastal Bangladesh consists of 19 districts that comprise 2.85 million
hectares in area, 200 km in length including 148,000 square km of crisscrossed rivers.

Land degradation, river erosion, and displacement: Land degradation is a serious problem
for Bangladesh due to natural and human activities. Natural degradation is caused by flood,
steep slopes, high rainfall, strong leaching in both humid and dry situation. Human activities
causing degradation is mainly inappropriate land management practices. Rivers in Bangladesh
are morphologically highly dynamic and form islands in between the braiding channels. These
islands, many of which are inhabited, are extremely sensitive to changes in the river
conditions. Erosions are highly unpredictable. Out of the 462 administrative units, more than
100 are subject to riverbank erosion and affected more than 2 million people annually.

Drought and floods: Drought causes water shortage that leads to stream flow reduction,
depletion of ground water and soil moisture, and hence crop damage almost every year in
different parts of Bangladesh mostly during the pre-monsoon and post-monsoon periods. In
agricultural context, drought affects the rice production most. Bangladesh is also a land of
many rivers and as a result the country is subject to inundation. Some 30 to 35 percent of the
total land surface is flooded every year during monsoon. Although normal floods are
considered a blessing for Bangladesh providing vital moisture and fertility to the soil, but
abnormal floods are considered disastrous for widespread damage to crops and properties.

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Ground water depletion: One of the root causes of drought is wide installation of shallow and
deep tube wells for agricultural irrigation. This process does not run in an environmentally
friendly manner and as a result ground water table has fallen. Groundwater situation is also
experiencing difficulties because shallow aquifer level is disappearing due to fast depletion of
groundwater table. Experts say regulation of water flow in the Ganges at Farakka point by
India has caused a reduction of dry season flow. Decreased flow in the Padma and its
distributaries has affected the pump irrigation.

Trans-boundary river linking plan: The proposed river linking project of India will involve
rivers, many of which are also shared by Bangladesh. It is widely predicted that the proposed
Indian River-linking project, if implemented, will bring catastrophic consequences for the
people of Bangladesh. It will cause a major ecological disaster and desertification of the vast
areas, and consequently, will lead to displacement of huge number of population of
Bangladesh.

Hill cutting: The present illegal and unauthorized hill cutting in greater Chittagong especially
in Rangamati, Bandarban and Khagrachhari is continued and as such unabated despite
mudslides commenced during the monsoon with the run off. The poor inhabitants at the
ground level of the mountains and hills is thus facing the disastrous soil erosion and landslide
which again impacted as loss of their houses and other belongings.

Exotic plant, trees and aquatic organisms: Many tree and plant species have invaded
Bangladesh, and some are threat to native varieties. Eupatorium odoratum (Ayapan) and
Mikania cordata (Assam lata) are two invaders that overtop the canopy of shrubs and young
tree saplings. Croton bonplandianum (Bon khira) and Lantana camara (Nak phul) grow along
the edges of forest and wastelands and invade local vegetation. Moreover, there are at least 32
fish species have been introduced in the country. The impact of alien species on indigenous
species has not been studied. Among the exotics, tilapia of two species, Oreochromis
mosambicus and niloticus have caused concerns because these species have invaded all
available habitats. Besides Eihhornia crassipes (Kachuri pana) is a notorious weed of fresh
water ecosystem and zebra mussel of port areas which invaded to Bangladesh hundred years
before.

Invasion through maritime zone: The Bangladesh boundary in the Bay of Bengal is not
settled yet after 37 years of independence. This boundary dispute intensified due to its legal
share of natural resources like fisheries, oil and gas, management of the Sundarbans, illegal
dumping of hazardous wastes, etc. Delay in claiming its maritime territories, Bangladesh has
allowed both India and Myanmar to creep into Bangladeshi territory in the Bay of Bengal.

Vector epidemic (virus such as bird flu, bacteria etc.): Various flues had been attacked in
Bangladesh after certain intervals since centuries. The recently attacked bird flu is not new but
of different dimension. There is a strong possibility of the virus mutating so that it can be
transferred from bird to human and then human to human.
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Environmental Management Objectives in the SFYP

In light of the long-run consequences of environmental degradation to the country’s ecosystem

and citizen’s welfare, the Government has set a number of goals to attain a sustainable
environment on the one hand and to address the fallout of climate change on the other. These
goals are crystallized as the main objectives relating to environment and Climate Change
under the SFYP as follows:

• To promote pro-poor and appropriate environment management system for sustainable

development.
• To ensure conservation of biodiversity and its sustainable utilization.
• To promote indigenous and scientific strategies for mitigation and adaptation to climate
change.
• To ensure active participation of the poor, especially the women and ethnic communities
in environment management activities at all levels.
• To promote environment friendly activities in development interventions.
• To preserve, protect and ensure wise use of the natural resource base.
• To strengthen the capability of public and private sectors to manage environmental
concerns.
• To monitor, control and prevent environmental pollution and degradation related to soil,
water and air.
• To find integrated solutions that avoid ‘development vs. environment’ arguments,
institutional tensions, and associated costs;
• To enable more efficient planning of environmental assets and environmental hazard
management;
• To support technological innovation that is informed and inspired by nature;
• To support informed policy debate and formulation on big issues;
• To improve the productivity, resilience and adaptability of local, sectoral, national and
indeed global social and economic systems – reducing the risk of collapses and the need
for short-term ‘bail-outs’.
• To initiate actions with regard to obligations under international treaties and conventions
for minimizing adverse impact on global environment.
• To promote cooperation with regional and international institutions/organizations to
address regional and global environmental problems.
• To undertake research and development for innovating technology in national perspective
and application of modern technology, information exchange and benefit sharing with
other countries.
• To create public awareness, in order to participate in environment promotion activities.
• To undertake Strategic Environmental Assessment of National Policies, Plans and
Strategies for upstream analysis and ensure the Environmental Impact Assessment of
Development Projects and Actions and environmental reporting.

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• Upgrade environmental governance and accountability system in all development activities
in Bangladesh.
• Mainstream Poverty, Environment, Climate Change and Disaster Nexus in the
Development Planning, Budgeting and Implementation Process.
• To improve air quality through clean fuel and vehicle.
• To promote public-private partnership in environment management.
• To promote 3R (Reduce, Reuse and Recycle) strategy for waste management.
• To improve air quality in major cities through monitoring and prevention measure.
• To establish Environment Management System (EMS) in Industries for pollution control.
• To reduce dependency on fossil fuel by promoting solar/green energy.
• To ensure culture of resilience in all development activities across sectors.
• To ensure the capacity building of poor and vulnerable group and local government in
sustainable natural resource management, climate change adaptation and disaster risk
reduction.

Strategies in the SFYP

The agenda for attaining a sustainable environment for the long-term is daunting and it can
hardly be over-emphasized. To translate the above objectives into reality, the Government is
undertaking the following policies, strategies and programs for the environment sub-sector
during the SFYP:

• National Environment Council headed by the Prime Minister and executive committee of
National Environment Council headed by the Minister for Environment and Forests would
be activated.
• Environment committees at Division, District and Upazila levels will be activated with the
participation of all stakeholders.
• Existing environmental laws and regulations will be amended to address new
environmental issues.
• Department of Environment will be strengthened in the light of existing Environment
Policy, Environmental Act, Rules and Environment Management Action Plan in order to
coordinate, monitor and implement these activities.
• Drafting of EIA guidelines for all sectors under the Environment Conservation Act (ECA)
1995 will be formulated.
• Sectoral legislations are to be reviewed and redrafted in light of Bangladesh’s
commitments expressed through signing and ratifying of a number of International
Conventions and Protocols on environment.
• ‘Polluters Pay Principle’ will be followed in order to ensure strict compliance of
environment legislation.
• Incentives, in the form of tax-rebate, tax-holiday etc. will be provided and incremental cost
incurred by the Environment-friendly entrepreneurs will be met in various forms/sources.

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• ‘National Environment Fund’ will be established in order to provide assistance to the
victims of environment degradation caused by the natural disasters and anthropogenic
activities.
• Environmental Impact Assessment will be made while processing each development
project requiring approval of the Government.
• Enhance whole of government’s capacity to mainstream poverty-environment-climate
nexus in the development project design, budgetary process, project implementation and
monitoring process.

SUB SECTORAL STRATEGIES UNDER THE SFYP

Preparation of National Land Policy

The optimum use of land and water depends on planned use of land, water resources and
natural environment which are the important sources of the growth. It is possible to ensure
optimum use of scarce land resources by way of integrating the uses of these three natural
resources. With this end in view, the Government has approved ‘National Land Use Policy,
Bangladesh’ in June 2001. The Government has adopted various other national policies and
measures to prevent land depletion. Notable among them include ‘The National Environment
Policy’, ‘National Environment Act and Rules’, ‘National Forestry Policy’ and ‘The National
Plan for Agricultural Research’.

In light of ‘National Land Use Policy 2001’ the Land Ministry has taken initiatives for specific
policies as discussed below:

• An inter-ministerial committee has been formed for preparing a draft law on “Krishi Jomi
Surakkha O Bhumi Zoning Ain 2010” (Protection of Agricultural Land and Land Zoning
Law, 2010”.
• A draft of the policy on“Haat-Bazarer Khas Jomi Babosthapona O Bohutol Market Ba
Bhaban Nirman Nitimala, 2010” (Management of ‘Khas’ Land of Bazars and Construction
of Multistoried Market or Building Policies) has been prepared which will be placed in the
Cabinet soon.
• “Balu Mohal O Mati Babosthapona Aain, 2010” (Sand Fields and Soil Management Act,
2010) has been tabled to the National Parliament as bill for necessary approval.
• An inter-ministerial committee has been formed for finalizing the draft act on “Gram
Unnoyon Ain” (Village Improvement Act).
• “Jalmohal Babosthapona Niteemala” (Water Bodies Management Policy) - this policy has
been made in order to efficiently manage the water bodies to benefit the poor fishermen
and women for their income generation and livelihood improvement.
• The project on “Gucchogram (Climate Victims Rehabilitation Project)” is an ongoing
project. 207 cluster villages will be constructed with a view to rehabilitate 10650 climate

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 victim land less families. They will be given houses, income generating training and
microcredit. Implementation period of the project is January 2009-June 2012.
• “Krishi Khas Jomi Babosthapona Niteemala” (State-owned Agricultural Land Settlement
Policy)-this policy is to distribute the state-owned agricultural land to the poor landless
households for their rehabilitation and livelihood improvement.

National Water Management

Bangladesh is endowed with a good number of water bodies scattered all over the country.
WARPO maintains a National Water Resources Database (NWRD) established at WARPO
under NWMP project that preserve and disseminate information/data of country’s water sector
including information data of other related sectors. There are analytical tools analyzing
information. Different organizations use data of NWRD in their planning and research works.
Updating and upgrading of NWRD will be done under Water Management Improvement
Project (WMIP) to be implemented by December 2014. A 5- tier web-enabling database has
been created for coastal zones. 5 layers of ICRD include Presentation, application server, data
server, web server and spatial data engine.

Waste Management

The main strategy for ensuring better waste management is to establish accountable
municipalities and city corporations that will have primary accountability to ensure that urban
waste management is properly handled. This is admittedly a long-term challenge, yet progress
with this important institutional reform holds the key to better management of urban waste.
The underlying policies will include encouragement of private waste collection facilities,
improving the slums, public education, strengthening the water and sanitation authorities, and
better management and disposal of accumulated waste.

Forestry Sub-Sector

Past Performance of the Sector

There is an estimated 2.52 million ha of land as forest land which is only 17.49 percent of the
total land area of the country. Out of this total forest land 2.25 million ha. is owned by the
government as classified and unclassified forests and 0.27 million ha is owned privately.
Government forest land, managed by the Forest Department, covers both natural and
plantation forest. Out of 64 districts, 28 districts had no public forest in the past. But now
almost all districts have been brought under forest coverage through social forestry program.
In the past plans, the main emphasis was to expand forests and to increase supply of timber
and wood. The ever increasing population of Bangladesh is creating pressure on existing
government managed forest resources and has resulted in over exploitation of such resources.
Such marginal land utilization through peoples’ participation for forestry development has
been launched in early eighties and continued till the last five year plan. Due to
implementation of Social Forestry Program through people’s participation, about 0.40 million
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ha. of land has been brought under forest coverage. Nevertheless, wide-spread destruction,
clearing of forest land for agriculture and settlement etc. has been a common scenario of this
country that undermined the success of achieving 20 percent forest coverage by the end of
2015.

With a view to intensify forest management in the government managed forest area, number of
Integrated Management Plans for different Forest Divisions has been produced. Number of
feasibility study report, base line survey report and technical report has been produced for
future activities. GIS/MIS have been established to keep pace with modern technology in the
forest sector. GIS support has been extended up to sub-block map of the major forest
divisions. PBMS has been created on pilot basis and ready for replication in the major forest
divisions to facilitate digitization of information as part of MIS and data transfer in the forest
administration through LAN/WAN. During the Fifth Five Year Plan due attention was given
to aforestation of the newly accreted lands. Green belt was established in the coastal zone to
serve as shelterbelt during cyclone and tidal surge. Qualitative improvement of natural forest
through artificial regeneration was also given priority. In support of environmental and
biodiversity conservation, extraction in the natural forest was discouraged. World Heritage
Site has been declared in the Sundarbans. Emphasis was given and accordingly initiatives have
been taken to establish national park, botanical garden and eco-park in selected areas.
Establishment of regional botanical garden has been proposed in connection with biodiversity
conservation in the country. Participation in the national and international seminar, workshop,
symposium and conference period have further strengthened forestry knowledge. Also, human
resources were developed and the efficiency and effectiveness of forest management has
improved.

During the Fifth Five Year Plan Forest plantation was 65,632 ha against the target of 1,90,938
ha showing 34 percent achievement. Strip plantation was established about 23,000 km. against
the target of 24,500 km. representing about 95 percent achievement during the Fifth Five Year
Plan. Seedling raising for distribution and sale to the people as well as for institutional and
homestead plantation was the best success out of different targets of the Fifth Five Year Plan.
Total achievement in the seedling raising superseded the target. As per forest policy, NGOs
were also encouraged to participate in the forestry program. Extension and training of the
social forestry program might be termed as extensive one. Facilities for education and research
including eco-tourism have been initiated. Such initiative will continue in the forthcoming 6th
five year plan.. Botanical garden and eco-park was established to facilitate conservation
activities in the country. Each year, during planting season, organization of Tree Fair Program
has become as a regular national program. Infrastructural development, procurements of
vehicles, equipments and other logistics have been developed through different projects and
will continue in future. Institutional and legal reforms have also received due attention during
Fifth Five Year Plan. Reorganization of Forest Department has been another success where the
reorganization strength of Forest Department is 259 officers and 8422 staffs.

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Plantation establishment in hill forest during plan period was 32,000 ha. against the target of
1,05,000 ha. Reason behind the les success of such plantation in hill forest was manifold such
as inadequate allocation in the ADP, Non approval of projects and complexity of land tenure.

Coastal aforestation and enrichment plantation target for the plan period was 20,000 ha. This
target was achieved in time. Redland, wetland and char-land plantation target was 15,000 ha.
Achievement against this target was 1,000 ha. which was also far below the target. Reason
behind such poor success was because of adjournment of the project on Reed Land
Aforestation. Char land plantation target have been included in the Forestry Sector Project.
But due to imposing condition by the ADB such activities have been delayed.

Agro-forestry, woodlot, and farm land aforestation target was 40,000 ha. In particular farm
land aforestation program was done through external financing. But that was not successful.
Conditions imposed by ADB on Forestry Sector Project were another factor that hampered to
achieve the target of agro-forestry and woodlot plantation. Strip plantation is achieved 95
percent against the target fixed in the Fifth Five Year Plan.

To improve the non-timber forest products in the country, as outlined in the forest policy, the
target for bamboo cane and murta plantation during the plan period was fixed to 8,000 ha.
Achievement against this target was 3,528 hectare, which was only 44 percent and might be
termed as poor. But reason behind such achievement was because of inadequate allocation in
the ADP.

The target for raising plantation in the vacant land in the tea garden, around pond banks and in
the Barind Tract gullyes were 2,938 ha. But the achievement for such target was not notable.
Limited activities have been initiated only for gully and pond banks.

There was a target to rehabilitate 3,000 Jhumia families in the Chittagong Hill Tracts. But it
was seemed great challenge for this sector. Only 18 Jhumia families were rehabilitated.
However ten thousand distressed freedom fighters were rehabilitated through establishing ten
thousand nurseries in the country. Social forestry training has been provided to these
distressed freedom fighters.

Achievements against the target of the Fifth Five Year Plan, in some cases, found to be less
than success or poor success. But the fact was that as per ADP allocation during the financial
year of the plan period was more than a success. The total allocation for the Fifth Five Year
Plan including BFRI, BFIDC and National Herbarium was Taka 69,821.00 lac and the total
ADP (1997-98 to 2001-2002) allocation was Taka 54,520.91 lac. The total of five year ADP
allocation was only 78 percent to the Fifth Five Year Plan target. On the other hand total
expenditure during the plan period was Taka 49235.96 lac which was 91 percent of the total
five year ADP allocation and 72 percent to the plan allocation respectively.

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Activities Taken Under PRSP (2002-2003 to 2009-2010)

Several initiatives were taken to increase forestry coverage and strengthen forestry
management. For better management of Forest Resources, administrative Forest Divisions
were divided into three administrative divisions. These are: (i) Chittagong Forest Division
with oversight for Chittagong North Forest Division and Chittagong South Forest Division;
(ii) Sundarban Reserved Forest Division with oversight for Sundarban East Forest Division
(head quarter at Bagerhat) and Sundarban West Forest Division (head quarter at Khulna); and
(iii) Cox’s Bazar Forest Division with oversight for Cox’s Bazar North Forest Division and
Cox’s Bazar South Forest Division. Each Forest Division is headed by a Deputy Conservator
of Forests. These improved administrative arrangements are having a positive impact on
forestry management.

To reduce encroachment and over-exploitation, the co-management concept was initiated in

different protected areas in Bangladesh. Protecting and co-managing forests by developing and
formalizing a collaborative arrangement between stakeholders of local communities of forests
will provide the incentive to protect the common resources for social benefit. This was
successfully demonstrated by implementing the Nishorgo Support Project funded by the
USAID. Some 5 protected areas were included in this program. This program was extended to
another 14 protected areas in Bangladesh under Integrated Protected Area Co- management
(IPAC).

Emphasis was also placed on the implementation of social forestry programs. Through
beneficiary participation huge amount of land have been brought under forest coverage. This
was formalized by enacting the Social Forestry Rule, 2004.

Objectives under the SFYP

The main objectives during the Sixth Five Year Plan are to expand forest resources, make
forests productive, develop institutional capabilities, and to encourage people’s participation.
About 20 percent forest coverage by the end of 2015 has been expected in the Twenty Years
Master Plan (1995-2015) prepared for Forestry Sub Sector. Accordingly the plantation target
had been fixed in the last Three Years Rolling Plan, MTBF and Fifth Five Year Plan. Under
the present trend of allocation, it is not possible to achieve that target of 20 percent forest
coverage by the end of 2015. Despite 91 percent utilization of allocation which was 72 percent
of the planed allocation, only 1 percent new forest coverage has been created. Considering the
allocation constraints this Sixth Five Year Plan has been estimated only with 4 percent target
of new forest coverage that will be created through different types of forest plantations.

However this small target might be increased to 4 to 5 percent depending on the foreign
investment. As the investment policy is favorable, investment from donors are still expected to
increase the plantation target during the Sixth Five Year Plan. National responsibilities and
commitments will be fulfilled by implementing various international efforts and government
ratified agreements relating to global warming, clean development mechanism, desertification
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and control of trade and commerce of wild life birds and animals. Tissue culture, root trainer
nursery development, vegetative propagation etc will receive due attention:

a. Conserve and protect the eco-system for bio-diversity and overall environmental
stability;
b. Watershed management and soil conservation;
c. Ensure greater contribution of the forestry sector in the economic development;
d. Continue and expand people-oriented aforestation program for poverty alleviation and
increased employment opportunity including women;
e. Achieve meaningful participation of local people, local government bodies, NGOs and
government agencies in forestry program;
f. Promote multiple land use technology like agro-forestry to ensure increased productivity
and supplement agricultural production;
g. Strengthen forestry extension activities to transfer improved technology and research
information to end-users, e.g., local people and private homesteads;
h. Increase facilities for education, need-oriented co-oriented research and experimental
works;
i. Human resources development;
j. Encourage private plantation of rubber, teak, mango, jackfruit and other high-value trees;
k. Facilities for eco-tourism and recreation;
l. Mass initiative to be taken under Clean Development Mechanism and REDD;

Policies, Strategy and Program

In line with the above objectives, policies, strategies and programs for the forestry sub-sector
during the Sixth Five Year Plan will be as follows:

a. Moratorium on felling in the natural forest will continue. Existing scattered and
denuded hill forests will be replanted to increase productivity. Scientific management
principles will be strictly followed to restore productivity of these lands.

b. An estimated 250,000.00 hectare land of hill forest and 7000.00 hectare of plain land forest
will be planted during the plan period. Productivity of plantations will have to be
increased manifold. Multi-purpose trees will receive special attention to increase the
productivity of land under forest.

c. People’s participation will be incorporated in all forest development activities. Integration

of tree plantation and crop cultivation will be practiced. Program to rehabilitate the sal
forests will be taken up as part of important development activities.
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d. The existing coastal aforestation and enrichment plantation will also be continued. The
existing mature coastal plantations will remain. An area of 40,000.00 hectare will be
planted and replanted in the coastal areas. SRF is presently engulfed with severe ecological
problems. Special attention will be given to the Sundarbans Reserve Forest (SRF) for its
biodiversity conservation.

e. To prevent the extent of damage by cyclones and tidal surges, Coastal Green Belt will be
created and seedling will be raised to distribute or sale in the coastal zone.

f. The redlands of Sylhet has long been lying unutilized. Under the Sixth Five Year Plan
5000.00 ha. of redlands will be planted.

g. Development and establishment of different eco-parks and botanical gardens, safari

park, national park have already been initiated during the Fifth Five Year Plan. Such
activities will be continued under this Sixth Five Year Plan. Establishment of regional
botanical garden will set uniform biodiversity conservation initiative in the country.

h. Social forestry has now become a social movement in Bangladesh. Social forestry program
will continue for expansion and strengthening of thana nurseries, union level nurseries,
expansion and strengthening of forest extension and nursery training centers. Raising of
30,000.00 km. of strip plantations are estimated target for the plan period. Social Forestry
Rule, 2004 is going to be changed to fulfill the current need. It is under process in the
ministry. Local government bodies will co-ordinate the aforestation program at the
grassroots level under this program. During the Sixth Plan, NGOs will be more directly
involved in aforestation program. They will motivate people through informal training and
other extension sources and will help the Forest Department to implement such program.

i. Past record indicates that wood energy contributes 13 percent of the total fuel consumption
of the country. Wood fuel is the most important form of energy for domestic use in rural
areas. In Bangladesh, domestic cooking consumes 65 percent of fuel wood and the rest 35
percent is consumed by the industrial and commercial sectors. For the prevailing demand
through social forestry, short/medium rotation fast growing tree species have been planted
along the roads and embankments, and on marginal and follow lands with active
participation of local people. BCSIR has developed efficient wood burning oven. Further
research programs on development of wood fuel, efficient wood, etc., will be undertaken
in the plan period to reduce strain on wood supply. Technical assistance may be required
for this purpose.

j. Non-wood forest products have substantial potentials for economic benefit. Bamboo, cane,
murta, medicinal plants, honey, wax, gol-patta, etc. will be developed during the Sixth
Five Year Plan in a systematic way. The Sixth Five Year Plan targets to cover 7500.00 ha.
of Bamboo, cane and murta plantation. Honey, wax and gol-patta will also receive special
attention for improvement during the plan period.

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k. Emphasis will be given for forest land survey and updating the land record. Initiative has
been made through formulating project which is expected to be implemented during the
Sixth Five Year Plan. Forest areas will be demarcated to avoid unlawful encroachments.

l. Presently, only 1.70 percent of the total land area falls under protected land area category
which is about 10 percent of the total forest land. The protected area will be increased to
15 percent of the total forest land during the Sixth Five Year Plan period. Effective
management for all the protected areas will be established. Regional botanical garden will
be established in the northern and southern region. People’s participation will be
effectively utilized in conserving resources in the respective zones. Ban on the use of fuel
wood in brick fields will continue and be made more effective and other modes of efficient
use of energy will be promoted, e.g., improved cooking stove. Moreover, programs will be
developed and implemented to protect the threatened, endangered species of flora and
fauna and the fragile eco-system. Wildlife farming of deer and reptile like crocodiles,
iguana, snakes and frogs, etc., will be encouraged and promoted on a commercial basis
through private initiatives.

m. watershed management, wetland conservation etc. will be initiated in the new area and also
will be intensified in the old area for better conservation of nature in the country during the
plan period.

Private Forests

In Bangladesh the village forest area is computerized of only 0.27 million ha. But this forest
has been meeting most of the demand for forest products like timber, firewood etc. Over the
years the village forests including the homesteads have grown into a major source of forest
products especially with the initiative and involvement of local people. However, during the
earlier plan periods, supports were preceded from the government mainly in terms of technical
back-up and extension services. More support is necessary to establish this as a sustainable
source of forest resources especially for promoting multi-purpose tree species for high
productivity. Extension, training and credit facilities will be provided to encourage the private
sector to undertake rubber, teak, jackfruit and other high value crop plantation on a
commercial basis.

With the successful implementation of social forestry, thana aforestation, homestead forestry,
farm forestry and agro-forestry programs/projects, increasing investment is coming up in the
private sector as well as in the public sector. An amount of Tk. 5000.00 million is projected to
be invested by the private sector for nursery development, seedling raising, plantation,
maintenance etc., in the Sixth Plan period.

MANAGING CLIMATE CHANGE

Bangladesh is one of the most climate vulnerable countries in the world and will become even
more so as a result of climate change. Floods, tropical cyclones, storm surges and draughts are
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likely to become more frequent and severe in the coming years. It is argued that the signs of
the future changes have already begun to become apparent. These changes will threaten the
significant achievements Bangladesh has made over the last 20 years in increasing incomes
and reducing poverty, and will make it more difficult to achieve the MDGs. It is therefore
essential that Bangladesh prepares now to adapt to climate change and safeguard the future
well-being of its citizen. Recently the issue of protection of the environment assumed special
importance because of the accumulation of evidence of global warming and the associated
climate change that it is likely to accompany. Climate Change is not the only problem of
environmental degradation, the problem runs far deep and its reach in destabilizing many of
the natural systems is potentially immense.

Over the past years, the Government of Bangladesh has invested over $10 billion to make the
country less vulnerable to natural disasters. These investments, in many cases supported by
development partners, include flood management schemes, coastal polders, cyclone and flood
shelters, and the raising of roads and highways above flood level. In addition, the GoB has
developed state-of-the-art warning systems for floods, cyclones and storm surges, and is
expanding community-based disaster preparedness. Climate resilient varieties of rice and other
crops have also been developed.

The challenge Bangladesh now faces is to scale up these investments to create a suitable
environment for the economic and social development of the country and to secure the well-
being of the people, especially the poorest and most vulnerable groups, including women and
children. The Government of Bangladesh’s Vision is to eradicate poverty and achieve
economic and social well-being for all the people. This will be achieved through a pro-poor
Climate Change Management Strategy, which prioritizes adaptation and disaster risk
reduction, and also addresses low carbon development, mitigation, technology transfer and the
mobilization and international provision of adequate finance.

Implications of Climate Change in the Context of Bangladesh

Human-induced changes in the global climate and associated sea level rise are widely accepted
by policy makers and scientists. The Intergovernmental Panel on Climate Change (IPCC)
concluded that “the balance of evidence suggests a discernible human influence on global
climate”. The exact magnitude of the changes in the global climate is still uncertain and
subject of worldwide scientific studies. It is broadly recognized that Bangladesh is vulnerable
to these changes because it is low-lying, located on the Bay of Bengal in the delta of the
Ganges, Brahmaputra and Meghna and is densely populated. Its national economy strongly
depends on agriculture and natural resources that are sensitive to climate change and sea level
rise.

Studies on climate change in Bangladesh report that the surface average temperature has been
rising, though there is no agreement in these studies on the rate of change. Available literature
suggests that a general warming is expected in future, where the rate of warming will be
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higher for the winter months (i.e., December, January and February) than the monsoon months
(i.e., June, July, August).

There is a great deal of local-level perception-based evidence that the rainfall pattern has
become erratic in recent years, if not in recent decades. However, the official agency has ruled
out any possibility of drastic change in rainfall patterns beyond climate change. Intriguingly, a
bi-modal shift in rainfall behavior has already been reported and rainfall may contribute to
recent shifts in hydrological peaks in various rivers of Bangladesh. Local level experience and
anecdotal evidence clearly show that in both Gaibandha and Jamalpur, people now observe
two to three flood peaks instead of one, as the latter had been regularly observed decades ago.

Increased susceptibility to natural disasters: All the above phenomena clearly highlight the
increased hazard susceptibility in terms of flood, drought, storm surge and salinity ingress in
Bangladesh. As it has been reported in many articles, floods will be more intense, will
inundate more areas and occasionally will perhaps prolong to devastate people’s livelihoods,
national economy and infrastructure. Similarly, literature suggest that the central western
region will be hit hard due to exacerbated drought and marginal farmers would not be able to
maintain livelihood thrusts by switching technologies to offset moisture stress.
Simultaneously, increased salinity would tend to reduce crop suitability throughout the
southwestern region and perhaps appear to be a deterring factor for industrial activities in the
affected areas.

Coastal impacts - water logging: A northward shift in isohaline lines under climate change
would compound the already alarming effect of water logging in the southwestern region. It
has been reported that the sea surface temperatures along the northern Indian Ocean (i.e., Bay
of Bengal) has gradually been rising steadily. Though there is no evidence that the frequency
of occurrence of cyclone along the Bay of Bengal has actually changed over the past five
decades due to rising sea surface temperatures that cyclone intensity might be increased by as
much as 10% due to increased warming. A devastating example that Bangladesh has been
observing in this regard is the Aila affected areas in Satkhira, Khulna and Bagerhat district.

Coastal impacts-rough seas and cyclones: There is a strong correlation between increasing
sea surface temperatures and the occurrence of too many rough sea events in the recent years.
High wind actions have been causing economic damage to fisher folks by quickly damaging
the traditional boats.

High wind actions have been eroding sea-facing coastal islands; even embankments located
far inland than the open sea. Sudden breaches in embankments have been destroying standing
crops, inundating crop lands with saline water, thereby diminishing economic potential of the
coastal lands, and forcing poor people to out-migrate from the affected areas by destroying
their livelihoods.

A potential implication would be that future storm surges might be even higher than those

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observed currently. About 1.2 million hectares of arable land are affected by varying degree of
soil salinity, tidal flooding during wet season, direct inundation by saline water and upward
and lateral movement of saline ground water during dry season. Inundation of brackish water
for shrimp farming is key causes for secondary salinisation of coastal lands. The severity of
salinity problem has increased over the years and expected in increase in future due to sea
level rise.

Increased drought posed higher risk: North-western region (Barind tract) of Bangladesh is
normally drought prone. Droughts are associated with the late arrival or an early withdrawal of
monsoon rains and also due to intermittent dry spells coinciding with critical stages of T.
Aman rice. Droughts in May and June destroy broadcast Aman, Aus and jute. Inadequate rains
in July delay transplantation of Aman in high Barind areas, while droughts in September and
October reduce yields of both broadcast and transplanted Aman and delay the sowing of pulses
and potatoes. Boro, wheat and other crops grown in the dry season are also periodically
affected by drought.

Global Response to Climate Change & its Implication for Bangladesh

The first definitive action came in 1992 at the UN Conference on Environment and
Development held in Rio de Janeiro. The Conference established the United Nations
Framework Convention on Climate Change (UNFCCC, or, Convention) which came into
force in 1994. Countries which have signed the Convention and ratified are called Parties
(194in number). A Conference of Parties takes place every year. Linked to the Convention, a
protocol has been signed in 1997 in Kyoto (hence called Kyoto Protocol) which came into
effect much later in 2005. The Kyoto Protocol is a legally binding instrument under which
industrialized countries committed themselves to a lowering of emission on an average of 5%
below the 1990 level. The first commitment period ends in 2012. Bangladesh is among the
least responsible countries for polluting stratosphere with GHG but it is the worst recipient of
stress from the climatic perturbations.

Bangladesh Climate Change Action Plan

Bangladesh prepared the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) in
2008 and revised it in 2009. This is now an approved document of the Government. This is
expected to be the blue print for subsequent integration of climate change issues such as
adaptation, technology transfer, mitigation and development, and capacity building into the
mainstream planning process.

The BCCSAP takes the Bangladesh submission on Bali Road Map, particularly the 4
securities, as the starting point and develops a strategy of sustainable development centered on
the issue of climate change. The programs mainly fall under development of crop varieties and
development of technology suitable for agricultural production under various adverse climatic
conditions that are likely to materialize in future. Three of the themes including food and
livelihood security fall under adaptation which is the prime need of the country. The other two
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adaptation programs relate to construction and maintenance of necessary infrastructure,
particularly those related to water management. The third important area is disaster
management as disaster risk reduction and post-disaster rehabilitation are going to engage a lot
of energy and resources of the country due to climate change. Under the action plan, there
are six major themes and 44 programs:

• Food Security, Social Protection and Health: The very first relates to ensuring food and
livelihood security, especially for the poorest and most vulnerable in society, including
women and children. It focuses on the needs of this group for food security, safe housing,
employment and access to basic services, including health.

• Comprehensive Disaster Management: This is to further strengthen the country’s already

proven disaster management systems to deal with increasingly frequent and severe natural
calamities.

• Infrastructure: This Action Plan is to ensure that existing assets (e.g. coastal and river
embankments) are well-maintained and fit-for-purpose and that urgently needed
infrastructure (e.g. cyclone shelters and urban drainage) is put in place to deal with the
likely impacts of climate change.
• Research and Knowledge Management: This is to predict the likely scale and timing of
climate change impacts on different sectors of the economy and socioeconomic groups; to
underpin future investment strategies; and to ensure that Bangladesh is networked into the
latest global thinking on science, and best practices of climate change management.

• Mitigation and Low Carbon Development: This is to evolve low carbon development
options and implement these as the country’s economy grows over the coming decades and
the demand for energy increases.

• Capacity Building and Institutional Strengthening: This is to enhance the capacity of

government ministries and agencies, civil society and the private sector to meet the
challenge of climate change and mainstream them as part of development actions.

The requirements of the poor and vulnerable, including women and children, will be
prioritized in all activities implemented under the action plan. The Climate Change Action
Plan comprises immediate, short, medium and long-term programs.

The serious consequences of climate change, including especially the consequences for
Bangladesh, lead naturally to the question of what should be our response. Two types of
response need to be considered. The first relates to adaptation, i.e., measures that have to be
taken given the very high likelihood that climate change will occur and will have adverse
effects. The second relates to mitigation, i.e. steps to be taken that might reduce the extent of
climate change.
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Adapting to Climate Change

Supporting communities and people in rural areas to strengthen their resilience and adapt to
climate change will remain a high priority in coming decades. However, with increasing
urbanization and economic growth, the type of risks Bangladesh faces will change. New urban
areas must be built to be climate resilient. This will call for better planning to ensure that the
pattern of urbanization takes account of the likely risks from climate change.

The direct annual cost to the national economy of natural disasters over the last 10 years
(damage and lost production) is estimated to be between 0.5% and 1% of GDP. As the
economy grows, these costs are likely to increase in absolute terms and also as a proportion of
GDP, if climate change is not factored into long-term economic planning.

Over the decades, the Government of Bangladesh, with the support of development partners,
has invested in:

• Flood management schemes to raise the agricultural productivity of many thousands of

kilometers of low-lying rural areas and to protect them from extremely damaging severe
floods.
• Flood protection and drainage schemes to protect urban areas from rainwater and river
flooding during the monsoon season.
• Coastal embankment projects, involving over 6,000 km of embankments and polder
schemes, designed to raise agricultural productivity in coastal areas by preventing tidal
flooding and incursion of saline water.
• Over 2,000 cyclone shelters to provide refuges for communities from storm surges caused
by tropical cyclones and 200 shelters from river floods.
• Comprehensive disaster management projects, involving community-based programs and
early warning systems for floods and cyclones.
• Irrigation schemes to enable farmers to grow a dry season rice crop in areas subject to
heavy monsoon flooding and in other parts of the country, including drought-prone areas.
• Agricultural research programs to develop saline, drought and flood-adapted high yielding
varieties of rice and other crops, based on the traditional varieties evolved over centuries
by Bangladeshi farmers.
• Coastal greenbelt projects, involving mangrove planting along 9,000 km of the shoreline.

These investments in ‘climate proofing’ have resulted on major impacts on economic growth
and poverty reduction. Over the last 10-15 years, the number of fatalities from natural
disasters has declined, as the country’s ability to manage risks, especially floods and cyclones,
has improved and community-based systems have been put in place.

Over the decades, Bangladesh has also learnt how to plan and implement these programs more
sustainably (e.g. to integrate capture and culture fisheries into the design and operation of
flood management projects) by involving communities in planning, construction and
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management. We must undertake climate change investments with communities, learn from
them, build on their knowledge of their local environments, and ensure that proposed
investments meet their needs.

The Government recognizes that tackling climate change requires an integrated approach
involving many different ministries and agencies, civil society and the business sector. There
is also a need to strengthen the capacity of Government and other organizations to plan and
implement development programs. Development organizations need to strengthen their
capacity so that they can implement their regular programs more effectively and rise to the
challenge of climate change.

Mitigation Activities

Even though Bangladesh’s contribution to the generation of GHGs is miniscule, the country
wishes to play its part in reducing emissions now and in the future. The mitigation activity
must be consistent with the country’s energy security as the demand for energy will increase
with the quickening of the pace of development. GoB, therefore, encourages increased energy
and cost efficiency in the development and utilization of conventional energy. Emphasis is
also given to the development of renewable energy, particularly solar homes and biogas plants
so that the emission is as small as possible without jeopardizing the access to energy. In
partnership with civil society, a major nationwide program of social forestry has also been
implemented and coastal ‘greenbelts’ has been planted as a key adaptation-mitigation strategy.
As Bangladesh industrializes and develops coal reserves, the country will seek the transfer of
state-of-the-art technologies from developed countries to ensure that the country follows a
low-carbon growth path. Bangladesh is also committed to reducing GHG emissions from
agriculture and urban waste management. The country is further committed to the
development of forestry resources and in this regard is exploring all avenues including the
mechanisms under REDD (Reducing Emission from Deforestation and Forest Degradation).

Currently Bangladesh has two Clean Development Mechanism (CDM) projects concerned
with solar energy and waste management. It looks forward to increasing the number of similar
programs and experimenting with new instruments to generate carbon credits and facilitate
carbon market financing in the future.

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Benchmarks and Targets for the SFYP

It is important to recognize that climate change is not something for which any quantitative
benchmark in physical terms can be set. The agenda is large and involves creation and
management of knowledge, formulation policies, and development of institutions. It also
requires coordination and collaboration with regional and global partners. The BCCSAP 2009
provides a very convenient framework to build on the climate change agenda for the SFYP.
Given the large agenda, it would be prudent to prioritize the urgent tasks that need to be taken
up and may be completed, by and large, within the next five years. As such, the following may
form part of target programs of the SFYP, listed in accordance with approved themes (Table
1).

The Climate Change impacts that Bangladesh may face present a daunting challenge for
policymakers. Adaptation is the prime need right now as any delay will create havoc with the
growth prospects of the economy and deny millions of people even their basic necessities.
International support might come eventually but may be woefully inadequate given
Bangladesh’s enormous requirement of resources annually to combat the menace of Climate
Change.

In this situation, the Sixth Plan will place first priority on the repair and maintenance of coastal
polders and defenses which have been washed away by Sidr and Aila. As the coastal belt is
expected to be adversely affected by climate change, the SFYP targets to develop a
comprehensive plan in this regard. The second priority will be to mainstream Climate Change
issues of adaptation, mitigation and capacity building based on the actions identified in Table
10.1.

Bangladesh will continue its active dialogue and participation in international forum to ensure
compliance with the agreed global agenda while at the same time ensuring that Bangladesh’s
rights to seek progress with economic growth and social development are protected. Similarly,
Bangladesh will work hard to ensure that equitable solutions are found to help Bangladesh
finance appropriate adaptation measures resulting from past global actions. Nevertheless, it is
recognized that the financing needs for proper adaptation are large and that global funding will
be limited. Proper funding of priority adaptation programs will be a key policy focus in the
SFYP.

Implementing the Strategies

The Government recognizes that it needs to strengthen existing institutions and may also need
to create and develop new ones to respond effectively to the enormous challenges of climate
change. A National Steering Committee on climate change has been established to coordinate
and facilitate national actions on climate change. It is chaired by the Minister of the Ministry
of Environment and Forests and comprises the Secretaries of all climate-affected Ministries
and Divisions, and representatives of civil society and the business community. It reports to
the National Environment Committee, chaired by the Prime Minister.
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The National Steering Committee on Climate Change also provides guidance on international
climate change negotiations, including bilateral, multilateral and regional programs for
collaboration, research, exchange of information and development. A Climate Change Unit
will be set up in the Ministry of Environment and Forests, to support the National Steering
Committee on Climate Change. It will work with Climate Change Focal Points to be set up in
all ministries. In fact, eight are already in place.

Table 10.1: Sixth Plan Benchmark and Proposed Target Programs

Theme Program Benchmark Target
Food security, social Institutional capacity for research on Capacity exists; certain Extension service to be
protection and health climate resilient cultivars and new varieties released geared up
dissemination recently
Adaptation against drought, salinity Very limited experience To be started
resistance and heat
Adaptation in fisheries sector Very limited experience Initial studies for ideas
on adaptation
Adaptation in livestock sector Very limited experience Initial studies for ideas
on adaptation
Adaptation in health sector Very limited experience Initial studies for ideas
on adaptation
Water and sanitation programs for Limited experience Immediate actions
climate-vulnerable areas needed
Livelihood protection in ecologically Little experience Initial interventions to
fragile areas be made
Livelihood protection of vulnerable socio- Major experience To be made
economic groups immediately
Comprehensive disaster Improvement of cyclone and storm surge Limited experience Needs review for
management warning improvement
Awareness raising and public Some experience Needs review for
dissemination improvement
Risk management against loss of income Limited experience Needs review and pilot
and property intervention
Infrastructure Repair and maintenance of existing flood Limited activity To be taken up
embankments immediately
Repair and maintenance of existing Limited activity To be taken up
cyclone shelters immediately
Repair and maintenance of existing Limited activity To prioritize and taken
coastal polders up immediately
Urban drainage needs assessment Limited activity To prioritize and taken
up immediately
Adaptation against Floods and Limited activity Needs review for
constructing new embankments and flood improvement &
shelters construction
Adaptation against tropical cyclones and Limited activity To be taken up
storm surges through land use planning immediately
Planning & Design of river training and Major experience with Needs review for
bank erosion mitigation works limited success significant
improvement
Resuscitation of rivers and khals through Limited activity To prioritize and taken
dredging up immediately
Earthquake resilient structure and land Limited activity To prioritize and taken
slide protected structure have to be up immediately
constructed and retrofitted
Research and National Centre for research, knowledge Limited activity Scope to be extended
knowledge management management and training on disaster and immediately
climate change
Climate change modeling and their Limited human and Training to be arranged
impacts institutional capacity for imparting skill
exists

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 Theme Program Benchmark Target
Preparatory studies for adaptation against Capacity exists; limited To be initiated and
SLR experience of adaptation continued
Research on the climate change adaptation Capacity exists, some To be expanded the
for knowledge and technology generation technologies are in use scope and ongoing
effort
Low carbon Renewable energy development Limited experience To be expanded
development
Management of urban waste Limited experience To be taken up
immediately
Aforestation and reforestation Some experience To be taken up
immediately
Rapid expansion of energy saving devices Some experience To be taken up
immediately
Improving energy efficiency in transport Limited experience To be introduced in
sector phases
Capacity building Revision of sectoral policies for climate - Immediate need
resilience
Mainstreaming CC in national, sectoral - Immediate need
and spatial development programs and BCCSAP to be part of
policies National Plan
Strengthening human resource capacity Limited capacity To be started
Gender considerations in CC - To be started
Strengthening institutional capacity Limited capacity To be started
Mainstreaming CC in media Limited experience To be started

The Bangladesh Climate Change Strategy and Action Plan was originally developed through a
participatory process involving all relevant ministries and agencies, civil society, research
organizations, the academia and the business community. Programs funded under the Action
Plan will be implemented by the line ministries and agencies, with participation, as
appropriate, of other stakeholder groups, including civil society, professional and research
bodies and the private sector.

While adaptation and mitigation are the main tasks, finance and technology are the means to
achieve them. The two areas have therefore attracted much attention during the climate change
negotiations from the beginning. The broad principles are clear. First, the present day climate
change is the result mainly of historical GHG emission by Western and other industrialized
countries. The finance for adaptation and mitigation therefore has to come mainly from these
countries which does not preclude national action by the affected countries on their own. How
the funding may be generated is a matter of international negotiation. However, Bangladesh
wishes that it be under a new financial architecture in which LDCs, G-77, China and other
groups will have voice in generating, allocating and disbursements of the funds.

All funds for adaptation has to be on a purely grant basis as the need for adaptation arise
because of climate change due to the historical emission of GHGs by the industrialized
countries Mitigation depends mainly on energy production, distribution and consumption
technology. Often the most efficient technologies are expensive. Bangladesh wishes to do her
bit, however small, in the global effort to minimize GHGs emission by adopting such energy-
efficient technology. However, unless the additional costs of adopting efficient technology is
not paid for through the international financial mechanism, Bangladesh will not be able to
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adopt them. Like adaptation, this part of the additional cost of procuring efficient technology
should be financed on a grant basis.

The Government has established a National Climate Change Fund. The Government desires
that all development partners who so wish will contribute to this fund. Exactly what would be
the operational modality may be worked out by the government and the particular
development partner. But the cardinal principle of the operation of the fund shall be that it will
be used solely to finance activities under the Action plan. Secondly, this contribution will not
be a substitute for other normal funding for development by the development partners.

DISASTER MANAGEMENT

Bangladesh, because of its geo-physical location, topography and high population density is at
risk of recurring natural and human induced hazards with an average 10 million people
affected every year. Frequent floods, cyclones, river bank erosion, water-logging, drought and
tornadoes significantly disrupt Bangladesh’s economy and the lives and livelihoods of its
population. Bangladesh is in the top of the list of 10 most disaster affected countries. During
1990-2008 the country incurred annual loss of US$2,189 million (1.8% of annual GDP) from
disasters. Climate change is adding a new dimension to the current risk environment with
global predications suggesting that the country could expect more intense cyclones, storm
surge and flooding (disaster)-and that a rise in sea levels could have a significant impact on the
lives and livelihoods of up to 30 million people.

About 75% of all disasters are originated by weather-climate extremes and because of global
warming and climate change Bangladesh had already experienced some significant impacts
especially in terms of coastal inundation and erosion, saline intrusion, deforestation, loss of
bio-diversity and agriculture, and large scale migration. It is estimated that about 830,000
million hectares of arable land is affected by varying degrees of soil salinity. During the period
1973–1987 about 2.18 million tons of rice was damaged due to drought and 2.38 million tons
due to flood. Drought affects annually about 2.32 million hectares and 1.2 million hectares of
cropped land during the Kharif (November to June) and Rabi (July to October) seasons
respectively, while soil salinity, water logging and acidification affect 3.05 million hectares,
0.7 million hectares and 0.6 million hectare of crop land, respectively in the country.

In addition to crop losses, Bangladesh is experiencing other adverse impacts of global

warming and climate change with summers becoming hotter, monsoon becoming irregular,
untimely rainfall, heavy rainfall over short period causing water logging and landslides, very
little rainfall in dry period, increased river flow and inundation during monsoon, increased
frequency, intensity and recurrence of floods, crop damage due to flash floods and monsoon
floods, crop failure due to drought, prolonged cold spell, salinity intrusion along the coast
leading to scarcity of potable water and redundancy of prevailing crop practices, coastal
erosion, riverbank erosion, deaths due to extreme heat and extreme cold, increasing mortality,
morbidity, prevalence and outbreak of dengue, malaria, cholera and diarrhea. All of these

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impacts either independently or collectively are adding significant stress to our physical and
environmental resources, our human ability, and economic activities.

Bangladesh Disaster Management Mission, Vision and Objectives

The Disaster Management Vision of the Government of Bangladesh is to reduce the risk of
people, especially the poor and the disadvantaged, from the effects of natural, environmental
and human induced hazards, to a manageable and acceptable humanitarian level, and to have
in place an efficient emergency response system capable of handling large scale disasters.

The Mission is to bring a paradigm shift in disaster management from conventional response
and relief practice to a more comprehensive risk reduction culture

The overall objectives are to reduce the underlying risks and to promote the climate change
adaptation by

• integrating disaster risk reduction and climate change adaptation approaches in all ongoing
and future development plans, programs and policies

• Enhancing professional skills and knowledge of key personnel on disaster and climate
change risk reduction, preparedness, warning and forecasting system, and post-disaster
activities

• Strengthening mechanisms to build disaster and climate change risk reduction capacities
for the Community and Institutions at all levels

• Community based Programming for risk disaster and climate change risk reduction

• Promoting livelihood strategies and options for the most vulnerable that incorporate
disaster and climate change risk reduction practices

• Strengthening capacities for disaster and climate change risk assessment for flood,
cyclone, drought, river bank erosion, pest attacks, earthquake, epidemics, etc. to establish
and strengthen the systems and procedures for effective response management through

• Creating a legal and institutional framework for effective response management

• Strengthening national capacity for response management with emphasis on preparedness

and support to disaster management committees at district, upazila and union levels

• Improving the early warning and community alerting system

• Strengthening search and rescue capabilities of relevant agencies

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• Introducing an effective response management coordination mechanism including a relief
management logistic system to handle different levels of emergency response

• Establishing an electronic based information management system

Guiding Principles for Disaster Management

Disaster management is the responsibility of all sectors, all organizations and all agencies that
may be potentially affected by a disaster. The key disaster management principles the country
has adopted are as follows:

1. Disasters can either be natural, human induced or even arising out of technological causes.
The DM policy is to provide guidance, plan and prepare for all types of hazards and
disasters.

2. Disaster Management in Bangladesh is guided by a number of national and international

drivers which among others includes Standing Orders on Disasters first introduced in
1997, Millennium Declaration of September 2000 to protecting the vulnerable from the
consequences of natural disasters, Hyogo Framework for Action (HFA) 2005-2015, and
SAARC Framework for Action (SFA) 2006-2015.

3. Disaster risk reduction should be an integral element of every national and sectoral policy
at all levels to sub-serve the overall goal relating to economic and social development.
Hence, policies on sustainable development should seek to reduce possible losses from
disasters, as a matter of priority.

4. Risk is dynamic and always changing. Hence both scientific and community analysis is
essential for defining and redefining risks. Risk analysis must be comprehensive and
follow all hazards, all sectors and all risk approach. Need to consider both existing and
future risks including climate change impacts analysis.

5. Disaster management activities in Bangladesh will be designed around a DM Model

comprising of 2 elements namely Risk Reduction and Emergency Response Management

6. Effective response must be designed utilizing risk information and revised through lessons
learned

7. Mainstreaming risk reduction efforts within government, NGOs and private sector is
viewed as being the key to achieving sustainable all hazards risk reduction interventions
across the whole country.

8. Disaster Management in Bangladesh will be enriched through applied research and

knowledge management. Hence efforts will be made to strengthen research capability
and institutionalize knowledge management across academia.

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9. Women, children, elderly, the disable and other socially marginalized groups will be
primary beneficiaries of all disaster management efforts.

The past achievements

Bangladesh recognizes that disaster management which includes both risk reduction and
response management is the responsibility of all sectors, all organizations and all agencies.
Therefore, mainstreaming risk reduction efforts within government, NGOs and private sector
is viewed as being the key to achieving sustainability in all hazards risk, reduction
interventions across the whole country.

Paradigm Shift: Response to Risk Reduction

During 2004-2009 Ministry of Food and Disaster Management had implemented the
Comprehensive Disaster Management Program (CDMP) to make a paradigm shift in disaster
management from a response and relief focus to a broader and more encompassing risk
management framework. The Program was implemented through a range of strategic,
technical and implementation partnership arrangements with more than 100 regional, national
and local organizations. Followed an all hazard, all risk and all sector approach, the Program
was designed around the following strategic focus areas:
1. Professionalizing the disaster management system;
2. Mainstreaming disaster risk management within development and investment planning
processes;
3. Strengthening community institutional support systems;
4. Expanding mitigation and preparedness to a wider range of hazards and geographical
areas; and
5. Operationalizing response management systems.

Policy, Planning and Strategic Framework

Government has created the required policy and legislative frameworks in order for laying the
foundations for institutionalizing comprehensive disaster management approach within and
among its institutional partners. The Standing Orders on Disasters (SOD) was revised and the
National Plan for Disaster Management 2010-2015 (NPDM) was introduced. Last April 2010
the National Disaster Management Council approved the Revised SOD and NPDM which will
guide Government sectoral ministries and departments, NGOs, civil society organizations and
public representatives to carry out disaster risk reduction and climate change adaptation
functions. Disaster management has become an integral part of the educational curricula at
primary, secondary and tertiary levels as well as major training courses of all public training
institutions. The Executive Committee of the National Economic Council (ECNEC) on 8th
October 2007 meeting approved the decision to include information on “lessons learnt from
the previous project” as well as “Risk Identification and Risk Mitigation” in all Development
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Project Proposal (DPP) and Working Paper for the ECNEC as the first milestone achieved to
ensure the integration of risk management in the development activities.

Bangladesh has also achieved a number of other milestones. The country has established a
planning and strategic framework with the following seven strategic goals which were set as
the basis of action matrix under the NPDM:

• Professionalizing the disaster management system

• Mainstreaming disaster risk reduction and climate change adaptation
• Strengthening institutional mechanisms
• Empowering at risk communities
• Expanding risk reduction programming across all hazards and all sectors
• Strengthening emergency response systems
• Developing and strengthening regional and global networks.

The country builds the risk reduction, preparedness and emergency management capacities
based on the people’s indigenous knowledge, experiences and the capacity to cope with
disasters.

Comprehensive Program Adopted

To further reduce country’s vulnerability the Disaster Management and Relief Division
launched the CDMP Phase II (2010-2014) with donor fund to be directly implemented by 16
departments of 12 ministries. The program is planned to achieve the following 6 outcome:

• Development of strong, well-managed and professional institutions in Bangladesh able to

implement a comprehensive range of risk reduction programs and interventions at the
national level, as well as contributing to regional actions and international learning and
best practice.

• Reduced risk to rural populations through structural and non-structural interventions,

empowerment of rural communities and improved awareness of, and planning for, natural
hazard events, including the likely impacts of climate change

• Reduced risk to urban populations through structural and non-structural interventions,

improved awareness of natural hazard events and the piloting of urban community risk
reduction methodologies that target the extreme poor

• Improved overall effectiveness and timeliness of disaster preparedness and response in

Bangladesh by strengthening early warning systems, national management capacity and
coordination facilities at all levels.

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• Improved disaster-proofing of development programming, and to enhance technical
capacity and positive long-term changes in planning and investment decisions in targeted
ministries.

• Improved management of community-level adaptation to disaster risks from a changing

climate.

Disaster Management Strategy in the SFYP

The SFYP will carry forward the implementation of the approved National Disaster
Management Plan 2010-2015. It will continue the comprehensive all hazard, all risk and all
sector approach and be built on the foundations laid in the last several years and learn from the
positive experiences. The Bangladesh Disaster Management Model which made the basis for
revising the disaster management policy and planning documents has mainly comprised of two
inter-related elements: Disaster Risk Reduction and Emergency Response. The plan will focus
more on Disaster Risk Reduction (DRR) in order for reducing the relief and recovery needs
and also be prepared to deal with any emergencies.

The government accords the focus on community level preparedness, response, recovery and
rehabilitation emphasizing the following three broad-based strategies:

1. Disaster management would involve the management of both risk and consequences of
disasters that would include prevention, emergency response, and post disaster recovery.
2. Community involvement for preparedness programs to protect lives and properties would
be a major focus. Involvement of local government bodies would be an essential part of
the strategy. Self-reliance should be the key for preparedness, response, and recovery.
3. Non-structural mitigation measures such as community disaster preparedness training,
advocacy, and public awareness must be given a high priority; this would require an
integration of structural mitigation with non-structural measures.

The priorities on DRR during the SFYP will broadly include:

• Professionalizing the Disaster Management systems and institutions through execution of

the Disaster Management Regulatory Framework already established.

• Strengthening the Disaster Management Bureau’s capacity to monitor and take part in
cross-government mainstreaming of disaster risk reduction through pre, during and post
disaster assessment.

• Strengthening institutional capacity of government sectoral ministries, departments and

other technical and academic actors in ensuring inclusion of DRR and Climate Change
Adaptation (CCA) issues and agendas within their respective sectoral policies, plans,
programs and allocations of businesses.

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• Empowering at risk communities to withstand and cope up with the disastrous situations
through community and household level risk reduction interventions and livelihood
support services.

• Reducing vulnerabilities of at risk communities through social safety nets – ensuring

protection of women, children, the aged and differently able people giving due attention to
their special needs.

• Preparedness for Earthquake and Tsunami risks through

o vulnerability and risks assessments and mapping,
o hazard land zoning,
o Land use planning
o contingency planning,
o strengthening search and rescue capacity of fast responding institutions and
o mass public awareness

• Building Knowledge on DRR and CCA through

o piloting and adaptation research
o Establishing an Integrated Approach to disaster management including Climate
Change and climate variability impacts
o Developing climate change scenarios and accordingly anticipated hazard risks
following climate change
o Updating hazard maps such as flood, cyclone, drought, earthquake and tsunami

• Strengthening national capability to reduce the risks of Chemical, technological and

biological hazards; Infrastructure collapse; Fire; Road accidents; Launch capsize and
Landslide.

• Strengthening national capacity for erosion prediction and monitoring.

• Developing and establishing policy and planning frameworks to incorporate all hazard
(including anticipated risks of climate change) risk reduction perspectives into sectoral
policies and development plans, such as: Agriculture, livestock and fishery; Industry;
Education (primary, secondary and Madrasa); Rural and urban housing; Construction of
roads, bridges and culvert; Water transportation; Health; Water resources; Power, energy
and mineral resources; Environment and forestry; Science and Technology;
Telecommunication; Water Supply and Sanitation and Food Security.

• Establishing public - private partnerships for disaster risk reduction.

• Supporting regional and global risk reduction initiatives and ensure representation that is
consistent with the government integrated all sector risk reduction approach at all levels.

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The Emergency Response Priorities during the SFYP will broadly include:

• Strengthening and improving an all Hazard Early Warning Systems through technical,
technological and physical capacity strengthening of Bangladesh Meteorological
Department and Flood Forecasting and Warning Center.
• Establishing and strengthening regional networks for real time data/information sharing.
• Establishing an effective Community Alerting System through capacity strengthening of
Cyclone Preparedness Program and Disaster Management Committees (DMC) at District,
Upazila and Union levels.
• Introducing Contingency Planning and Disaster Preparedness across all sectors and at all
levels.
• Establishing and improving Search and Rescue Mechanism by: (i) preparing a potential
search and rescue scenario; (ii) strengthening Search and Rescue capability of first
responding institutions by providing training and equipments support; (iii) establishing an
all hazard volunteer groups for Search and Rescue operations; (iv) establishing an effective
command and control system and, (v) construction and maintenance of sufficient multi-
purpose disaster shelters.
• Strengthening GO-NGO and private sector co-ordinations on relief and emergency
management.
• Developing and establishing a well coordinated multi-sectoral post-disaster recovery and
reconstruction mechanism.
• Establishing and operational a National Disaster Management Information Centre
connected with all the 64 Districts and high-risk Upazila DMCs to: (i) archive and share
disaster risk reduction information; (ii) to produce and share policy briefs; (iii) to receive
and disseminate early warning information; and (iv) to receive and disseminate
information on emergency need assessments and management.
• Ensuring protection and support to the most vulnerable, especially women and children

The Post-Disaster Recovery Priorities during the SFYP will broadly include:
• Incorporating early recovery into the disaster response mechanism
• Developing mechanisms for damage and losses assessment to be the basis for recovery
planning
• Developing and establishing post disaster recovery and reconstruction mechanisms
• Incorporating disaster and climate change risk reduction measures into post-disaster
recovery and rehabilitation processes and use opportunities during this phase to address the
underlying factors of the disaster and climate change risks

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• Linking post disaster recovery efforts with the development plans and programs

Strengthening institutional capacity: Various government and non-government organizations

are working in the field of disaster management and mitigation. A key effort in the SFYP will
be to strengthen the inter-ministerial coordination as well as coordination with the NGOs.

As per the revised SOD and NDMP the Disaster Management and Relief Division, Ministry of
Food and Disaster Management is the focal agency for disaster risk reduction and emergency
management. The focal point for disaster management is the Ministry of Food and Disaster
Management and the Disaster Management Bureau under the Ministry. The Bangladesh
Meteorological Department (BMD) is responsible for forecasting natural disasters, particularly
cyclones, droughts, storms etc. The Bangladesh Space Research and Remote Sensing
Organization (SPARRSO) is responsible for providing satellite images while the Flood
Forecasting and Warning Centre (FFWC) of Bangladesh Water Development Board is
entrusted with the responsibility of forecasting flood. A number of institutions and Bureaus
under different ministries such as the National Disaster Management Council headed by the
Prime Minister, the Directorate of Relief and Rehabilitation, the Directorate General of Food,
Department of Public Health Engineering, The Local Government Engineering Department,
Water Resources Planning Organization (WARPO) and Armed Forces Division are involved
in disaster management. Given these multitude of governmental organizations, better
coordination will increase the effectiveness of the response as well as cut inefficiencies and
wastage.

Challenges for the SFYP

Throughout the SFYP the following challenges will likely to persist and post hindrance to the
attainment of the goals set therein:

1. Lack of policy coherence: The risk governance is, by and large, a byproduct of the overall
governance of the country. The fragmented policy framework and weak local capacity will
likely to continue for the next couple of years. In the intervening time, the disaster and
climate change risk reduction will also subjected to the sectoral fragmentation in spite of
the presence of the National Plan on Disaster Management and the Standing Orders on
Disaster Management. A set of policies at the higher hierarchy, i.e. the Disaster
Management Policy and Disaster Management Act formulation would be of primary
requirement.

2. Trans-boundary nature of disaster hazards and climate change: Natural elements such as
water, land, and air are transboundary. And thus any measures to address them would also
have to take into consideration the transboundary solutions. This will likely to involve the
combined and coordinated through at least the scientific and technology front, community
of practice front, regional and international diplomacy fronts.

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3. Policy – reality gap: The discrepancy between the norms and principles articulated in the
disaster and climate change risk reduction policy framework and the actual implementation
will remain formidable. The pervasive cross-cutting nature of disaster and climate change
subject matter making it difficult to produce results, to extract compliance, and to impose
accountability to actors and authorities.

4. Risk reduction – relief – recovery gap: The fragmentation of disaster management with
overbearing priorities to relief has been ameliorated with the paradigm shift towards risk
reduction. There is, notwithstanding, the remaining gap between relief and recovery. The
disconnect between disaster relief and recovery poses the danger that reconstruction efforts
will not be fortified with the required additional risk reduction investments. As result
government and communities will continue to rebuilding risks instead of reducing them.
6. Risk accounting and public investment: Disaster and climate change risks are still at the
normative level with elusive quantification. This making it impossible to estimate the
value of the disaster and climate change risks, the required investment, the losses from
adverse events, and the requirement for recovery and re-development. Without the
discipline risk accounting it is also difficult to determine the baseline, benchmark and
accomplishment of objectives.

7. Mainstreaming disaster risk reduction and climate change adaptation across hazards and
sectors: to contribute to meaningful poverty reduction efforts the revised SOD refers to
formulate a range of sectoral DRR and CCA mainstreaming guidelines the development of
which would take at least 2-3 years.

DEVELOPMENT RESOURCE ALLOCATION FOR ENVIRONMENT, CLIMATE

CHANGE AND DISASTER MANAGEMENT IN THE SFYP

In light of the long-run consequences of environmental degradation to the country’s ecosystem

and citizen’s welfare, the Government has set a number of goals to attain a sustainable
environment and to address the fallout of climate change. Substantial resources will be needed
to achieve these targets. The resource mobilization strategy includes collaboration with
private sector, mobilization of international funding, especially to manage climate change
issues, and allocation of own resources. Indicative allocations of development resources to
carry out the strategies and programs for environment, climate change and disaster
management over the Sixth Plan period is shown in current and constant prices in Table 10.2
and Table10.3. These indicative allocations will be reviewed on an annual basis in light of
actual resource availability, progress with implementation and changing government priorities
in light of global and national developments.

Table 10.2: Development Resource Allocation for Environment and Disaster

Management in the Sixth Plan
(Taka Crore; current price)
Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015
484
 Ministry of 243 259 185 220 252
Environment & Forest
Ministry of Land 115 125 154 196 243
Disaster Management 1310 1780 2041 2427 2772
& Relief Division
Total 1667 2164 2381 2844 3267

Table 10.3: Development Resource Allocation for Environment and Disaster

Management in the Sixth Plan
(Taka Crore; FY2011 price)
Ministry/Sector FY2011 FY2012 FY2013 FY2014 FY2015
Ministry of 243 241 161 180 194
Environment & Forest
Ministry of Land 115 117 134 160 187
Disaster Management 1310 1656 1775 1981 2135
& Relief Division
Total 1667 2013 2070 2322 2516

B.G.P.-2011/12-3888Com(C-10)000 Books, 2011.

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