The document discusses rural development in Bangladesh through public finance. It begins with introducing the research team and stating the research question about the role of public finance in rural development sector by sector. The objectives of the study are then outlined, which include understanding the rural economy, development measures taken by the government, and the impact of public finance on rural development. Limitations of time and availability of up-to-date information are then noted. Introduction provides some key statistics about rural populations in Bangladesh. The research methodology is then described as quantitative and relying on secondary sources of data from government websites and assigned texts. [/SUMMARY]”

1. Welcome
Tasnim Ansari – 09
Mehedi Hassan Bappy – 21
Debanik Chakraborty – 25
Syed Istiaque Uddin Ahmed - 31

2. 2
Research Question
What is the role of public finance in rural development and
the development progress sector by sector in Bangladesh?

3. 3
Objective of the Study
 To know about the rural economy of Bangladesh.
 To know the problems, cause and development measues taken by the
government.
 To find out the change in development with the relation to the past.
 To find the impact of public finance on economic and social
development of rural economy.

4. 4
Limitations
 Time constraint for doing research broadly.
 Difficulties in finding up-to date information
 Relevant papers about the topic are outdated.

5. 5
Introduction
 According to World bank, 64.96% of people of Bangladesh are living in the
rural areas.
 About 77% of the workforce lives in rural areas
 Two- third of the rural people directly involves in agriculture
 about 87 percent of rural households rely on agriculture for at least part
of their income.

6. “
Our research methodology is quantitative in nature. We will use
secondary sources of Data. We will go through various websites of
our government for related data. We will also use different
websites and our course assigned book to get a clear idea
regarding the topic
6
Research Methodology

7. Agricultural &
Rural Economy

8. “
“Agriculture was found
to be the main source of
livelihood for rural
inhabitants.”
8
- Mahabub Hossain,
Advisor to BRAC &
Former Director General

9. Agricultural Condition
9
◈ Bangladesh is a Rural based country
◈ More than 80% Land Area is Rural
◈ Almost 77% of the total workforce live in rurality
◈ In spite of frequent natural disasters and population growth, Bangladesh has amazingly
achieved the food security.
◈ Average Productivity growth is 2.7%
◈ Benefited from a policy framework backed by substantial public investments in
technology, rural infrastructure and human capital

10. Agricultural Condition
10
◈ The Food grain production became thrice than before between 1972 and 2014, from 9.8 to
34.4 million tons
◈ Bangladesh being prone to various Natural Disasters
◈ It affects the agricultural sectors negatively
◈ Government is taking steps necessary to reduce the impact
◈ Focusing on Non-Firm Enterprises

11. Solutions – Livelihood support, diversification and stronger resilience
11
◈ Integrated Agricultural Productivity Project (IAPP)
◈ Modern Food Storage Facilities Project (MFSFP)
◈ Nuton Jibon Livelihood Improvement Project (NJLIP)
◈ The National Agriculture Technology Program (NATP-II)

12. Future Plan
12
◈ Eight modern steel grain storage silos will be constructed with a capacity of about
535,500 tons of rice and wheat by 2020. 500,000 households will have household
storage silos in the disaster-prone areas including the coastal zone.
◈ More than 1 Million Farmers can benefit from this project by 2021

13. 13
Year GDP From Agriculture (BDT Million)
2008 7729.2
2009 7968.2
2010 8490.4
2011 8820.6
2012 9033.2
2013 9165.6
2014 9515.1
2015 9748
2016 9922.8
2017 10117.30
The GDP from Agricultures (2008-2017)

14. 14
The GDP from Agricultures (2008-2017)
0
2000
4000
6000
8000
10000
12000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP From Agriculture

15. Public Expenditure and
Poverty Reduction

16. Curse of Poverty
16
◈ Many people live in the remote areas who are lacking in health, education, transportation
and technological services
◈ They suffer from food security, land scarcity, lack of asset, remains uneducated and fight
with various diseases
◈ In 2009, 50 million people of the country were under poverty line where 28.8 million
were extremely poor.
◈ At present 38 million is living under poverty line where 15.07 are extremely poor.

17. Causes of The Poverty
17
◈ Inadequate access to clean water and nutritious food
◈ Little or no access to livelihoods or jobs
◈ Conflict
◈ Inequality
◈ Poor education
◈ Climate change
◈ Lack of infrastructure
◈ Limited capacity of the government.

18. Per capita Income & Poverty
Trend Analysis:
1
18

19. Table
19
Year Per Capita
Income ($)
Per Capita
Income
Increment
Rate (%)
Poverty Rate
(%)
2013 1011 9.53 31.75
2014 1,190 17.71 31.56
2015 1,316 10.59 31.55
2016 1,466 11.40 24.3
2017 1,602 9.28 24

20. 20
0
5
10
15
20
25
30
35
2013 2014 2015 2016 2017
Per Capita Income vs Poverty Rate
Increment of Per Capita Income Poverty Rate

21. Zero Hunger
Quality
Education
Social Development Goals (SDGs)
Good Health &
Well-being
21
No Poverty

22. Clear Water
& Sanitation
Decent Work
& Economic
Growth
Social Development Goals (SDGs)
Affordable &
Clean Energy
22
Gender
Equality

23. Reduced
Inequalities
Responsible
Consumption
& Production
Social Development Goals (SDGs)
Sustainable
Cities &
Communities
23
Industry
Innovation &
Infrastructure

24. Life Below
Water
Peace,
Justice &
Strong
Institutions
Social Development Goals (SDGs)
Life on
Land
24
Climate
Action Partnership
for Goals

25. “
Poverty and Income
distribution
25

26. 26
0
10
20
30
40
50
60
70
1991 1995 2000 2005 2010 2016
Poverty Percentage
Rural National Urban

27. 27
0
2
4
6
8
10
12
14
16
18
2008-09 2009-10 2010-11 2011-12 2012-13
Income Distribution
Percentage of Budget Percentage of GDP

28. Government’s steps
28
◈ Old age allowances
◈ Stipend program
◈ Allowance for widowed and divorced women
◈ Food for works programs
◈ One house one firm project
◈ Allowance for insolvent disables
◈ Allowance for expecting and lactating women

29. Government’s steps
29
◈ Char livelihood project
◈ Food assistance program for the poverty-stricken laborer.
◈ Vulnerable Group Feeding
◈ Open Market Sale
◈ Gratuitous Relief
◈ Test Relief

30. 24.57 % families of the country have been
brought under the coverage of social safety net
program. In this coverage, the share of
beneficiary families in the rural area is 30.12
percent.
30
The Household Income and
Expenditure Survey (HIES) 2010

31. Broad Principle Followed By Govt
31
◈ Providing the ultra-poor people special allowances to enhance their capability of facing
poverty.
◈ Creating employment and self-employment program, through which the poor can be
pulled out of poverty by micro credit operation.
◈ Providing food assistance free of cost or at a nominal cost to the poor for ensuring food
security.
◈ Providing education, training and healthcare services to the poor to face poverty and
deal with that.

32. Special Poverty Alleviation Programs:
32
◈ Poverty Alleviation and Goat Development Project
◈ Providing incentives and financial assistance to poultry and livestock sector;
◈ Poverty Alleviation and Micro-credit Programs undertaken by Department of Fisheries;
◈ Fund for Housing the Homeless;

33. Special Poverty Alleviation Programs:
33
◈ Program for generating employment for the unemployed youth by the Karmasangsthan
Bank;
◈ Abashan (poverty Alleviation and Rehabilitation) Project.
◈ Fund for mitigating Risks due to Natural Disaster;
◈ Program for mitigating Economic shocks; and
◈ Fund to meet sudden natural disaster.

34. Public Expenditure and
Infrastructural
Development, Health
and Education

35. 35
S L No. Name Short Name
1 Construction of newly created & river eroded
Upazila Complex.
UZ- Complex
2 Construction /Reconstruction of Roads,
Bridges/Culverts in Rural Areas on Priority
Basis (Part-III).
PRP- III
3 Greater Rajshahi Division Integrated Rural
Development Project (2nd Revised).
RIDP-2
4 Rural Roads and Market Improvement Project:
Greater Sylhet District.
RRMIP-GSD
5 Union Parishad Connecting Roads
Improvement Project: Patuakhali & Barguna
Districts (Phase-II).
UCRIP-2
LGED (local government
engineering development)

36. Life expectancy
36
◈ Rural People used to die from different curable & controllable diseases
◈ Health Awareness of the medical situations increased among them
◈ Small branches of Health care units & Hospitals in remote rurality

37. Life expectancy
37
◈ No need to go to the developed cities or Sadar for
better treatment.
◈ Easy Access to medicines, expert advices, accurate
health & diagnosis reports & better treatment
◈ The life expectancy & longevity of these rural people is
increasing.

38. Rural health care condition
38
◈ Gonoshasthya Kendra all over the country serves about 1.2 million people per
month, more than 60% of them poor or very poor
◈ Even these health care has to be integrated with other social needs –
nutrition, clean water, good sanitation, family planning and even employment.

39. Child morality
39
◈ Mortality rate, under-5 (per 1,000 live births) in Bangladesh was 34.20 as of
2016
◈ Over the past 56 years this indicator reached a maximum value of 262.30 in
1960 and a minimum value of 34.20 in 2016
◈ In 2014, it was 38.6 percent & in 2015 it was 36.3 percent

40. Child morality
40
◈ Mortality rate, under-5 (per 1,000 live births) in Bangladesh was 34.20 as of
2016
◈ Over the past 56 years this indicator reached a maximum value of 262.30 in
1960 and a minimum value of 34.20 in 2016
◈ In 2014, it was 38.6 percent & in 2015 it was 36.3 percent

41. Child morality
41
◈ They provide free advices & regular checkups to the pregnant mothers in the
rurality
◈ Following their diets, advices & opinions the mothers & in law families have
been very much concern about the health of both the mother & her child.

42. Growth rate
42
◈ Bangladesh consists almost 2.18% of the whole world population
◈ Currently Bangladesh population is 166,368,149
◈ Over population has been a problem in this country for past few decades.
◈ The awareness campaigns organized by different NGOs & Government
institutions helped the cause

43. Growth rate
43
◈ Now the population growth rate in Bangladesh has become 1.03% on 2018,
which was 1.05% in 2017 & 1.09% in 2016.
◈ Even in 2000, the growth rate was 2.08%.
◈ So, the growth is tremendously declining

44. Malnutrition
44
◈ The malnutrition was very acute within the rural children
◈ Many children in the villages used to die due to malnutrition & different
diseases arising from malnutrition

45. Malnutrition
45
◈ Lack of Literate Mother lead to lack of balanced diet to children
◈ Advising, Vaccination of health workers & proper care have
decreased malnutrition

46. Sanitation Projects in Rural Areas
46
◈ Sanitation was a big problem in Bangladesh even in the last
decade
◈ People chose open fields, river sides & bushes for their metabolic
activities
◈ Sanitary Latrines have been strongly recommended to almost
every villages

47. Sanitation Projects in Rural Areas
47
◈ Projects Undertaken,
◈ “A sanitary latrine at every village home”
◈ “Arsenic free tube well water for drinking”
◈ Much Better State at present

48. Education
48
◈ Construction of hundreds of primary schools in remote rural
areas.
◈ Digitalized class rooms
◈ Multimedia & Internet Facilities

49. Major Obstructers to Education
49
◈ Poverty, Safety
◈ Geographical locations
◈ Extreme weather events
◈ Lack of schools in urban slums
◈ Poor Infrastructure

50. Major Obstructers to Education
50
◈ Poverty, Safety
◈ Geographical locations
◈ Extreme weather events
◈ Lack of schools in urban slums
◈ Poor Infrastructure

51. BD Govt + BRAC
51
◈ Boat Schools for Rural People
◈ BRAC Urban Slum Schools
◈ Bridge School Program for OOSC
◈ Children Learning Centers
◈ Education for Out of schools Bangladesh
◈ Non-Formal Primary Level Education to Forcibly displaced Myanmar citizens

52. Proshikha, Grameen bank, JAAGO etc voluntary
organizations & International organizations like,
UNDP, UNISEF
52

53. Women Empowerment in
the rural Area of
Bangladesh

54. ◈ The number of working women increased to 18.6 million in 2016-17
from 16.2 million in 2010.
◈ Bangladesh secured the 47th position among 144 countries in 2017.
54

55. Budget for Women
Government prioritized women
empowerment in the budget of fiscal year
2019. Almost 30% of total budget is
allocated for them.
They allocated Tk100 crore for Women
Entrepreneurship Fund and Tk 25
crore for Women Development Special
Fund in fiscal year 2019.
55

56. The process of
Empowerment
56

57. 57
• Beating not justified in any of six situations
which was reported by 29% of
respondents
• Only 4% justified beating always or in 5
situations
• The majority (55%) of married women
overlook beating in at least 2 situations.
Beating is not Justified

58. 58
• should be involved in all tenhousehold
decision was reported by 43% of
respondents
• Nearly one fourth (23%) scored 9
• One third or less scored 8
The woman thinks she should be involved in various household decisions

59. 59
• 85% of respondents had a score of
thirteen or higher
Household decision-making

60. Development in
Rural Finance

61. Microcredit Program
61
The principle microcredit service providers of Bangladesh are categorized into four groups:
 NGOs
 Specialized institutions
 Commercial banks with microcredit programs
 Administrative ministries or division
The majority of the microcredit clients are being served by four huge microcredit institution
 Grameen Bank,
 BRAC,
 ASA Govt. agencies
 BDRB

62. 62
 Microcredit helps the poor to become self-employed.
 In the time of natural disaster, microcredit helps the disastrous people
to move forward from the outrages.
 Mainly helps the poor to earn their basic needs and encounter any sort
of risks, also improving household’s economic welfare.

63. Grameen Bank
63
• Grameen bank is a rural bank in Bangladesh that provides microcredit to the
rural poor people, rural poor woman, who own less than half an acre of a land or
whose assets do not exceed the price of half an acre of land
• They provide housing loans, group loans, women empowerment loans too make
them self-employed and turn positive changes in rural economic development as
well as poverty reduction.
• As of 1999, Grameen has made housing loans totaling $190 million to build over
560,000 homes with near-perfect repayment

64. Rural Banking
64
 Bangladesh government introduces Bangladesh Krishi Bank (792 rural branches) in 1973 and
Rajshahi Krishi Unnoyan Bank in 1983. The main objectives of these banks are to promote the
agricultural and industrial activities by providing proper knowledge and financial support.
 Government also introduce Bangladesh small and cottage industries corporation (BSCIC) in
1992. They provide support services to small, rural, and cottage industry in Bangladesh in the
small and cottage industries sector.

65. Agriculture and health financing
65
BDRB
The Bangladesh Rural Development Board (BDRB) is destined to increase the
agricultural growth and working to reach the self-sufficient food level. Food
production of our country reached doubled since 1970s and reached near self-
sufficient level of production

66. Agriculture and health financing
66
IFAD
In close coordination with Bangladesh government International Fund for Agricultural Development
(IFAD) is working in Bangladesh for past 30 years and has developed in-depth knowledge in the
areas of infrastructures, agriculture, inland fisheries, market access, microfinance and gender.
Their steps are:
• To enable the poor in the vulnerable areas to better adapt with natural calamities
• To help the small producers and entrepreneurs benefit from improved value chain and greater
market access.
• To improve the economically and socially empower marginal groups along with poor rural
women.

67. Insurance, fertilizer and seed help
67
• Bangladesh Agricultural Development Corporation was established in 1961 and renamed
in 1975
• Their vision is “Quality agricultural inputs supply and efficient irrigation management”.
• There are 6800 people working under BADC.
• In the last seven years BADC produced 9.25 lakh metric ton seeds and provide 8.66 lakh
metric ton to the general farmers
• BADC produces 1.54 lakh metric ton wheat seed and provide 1.68 lakh metric ton to the
farmers in last seven years. For drainage program BADC has taken 17 drainage plan and
30,000 hectors land was free from drainage problem

68. Encouragement to Private commercial banks
68
• Bangladesh bank made it mandatory for all the private commercial banks to open branches
in rural areas and encourage them to expand their activities to rural areas
• Bangladesh bank made laws about private banks to have one branch in rural areas for
every four urban branches
• This step helps to enlarge the total economic system of Bangladesh and also facilitate the
rural people as well as rural economy.

69. Electricity and Technology
in the rural Area of
Bangladesh

70. ◈ World Bank-financed electrification project to advance off-network
electricity in rural communities.
◈ This year, the venture got to be the first renewable vitality
program in Bangladesh to be issued carbon credits for bringing
down nursery gas productions
70

71. ◈ Solar power is making a difference to green Bangladesh’s energy
mix.
◈ Renewable vitality accounts for less than 1 percent of the
country’s energy generation, but the government points to have 10
percent of its national network powered by regeneration.
71

72. Technology in
Rural Bangladesh
72

73. 73
One-stop Digital
Center is located
conveniently
inside 4 km from a
town.
5,000 one-stop
Computerized
Centers all
through the
nation specially
for rural people

74. Lightning Up Rural
Bangladesh
74

75. ◈ More than 3.5 million solar domestic systems have been
introduced in rural Bangladesh
◈ 70,000 direct employments are made
◈ Income of rural people increased at least $13-$14
◈ Reduce indoor air contamination, fire risks
75

76. E-Education in Rural
Area
76

77. ◈ Over 70% of the 222,695 instructors who are individuals of this
portal have been prepared to function interactive media classrooms
◈ Dynamic support is very apparent from the nearly 59,000 web
journal passages
◈ Over 138,000 monthly dynamic clients create around 2.2 million
page views
77

78. Role of Public Finance in
natural calamities and
disaster management

79. 79
Due to the geographical situation, mostly every year our country is facing natural calamities like
massive flood, cyclone, extreme rain, riverbank erosion, earthquake etc.
Bangladesh experienced over 200 natural disasters since 1980, leaving a total death toll of
approximately 200,000 people and causing economic loss worth nearly $17 billion. Every
year, we incurred 1.8 percent of GDP loss due to natural disaster. It is estimated that 14
percent of our GDP is exposed to disasters.

80. Impact
80
 Most affected sector is agricultural sector. Lot of crops got wasted due to these
natural calamities
 The connection between rural food and vegetable market gets hampered, as a
result price of the food and vegetable market experience surprising rise.
 Building house for the affected people and rehabilitation period takes huge time and
economy experience downfall.

81. Government’s Steps
81
The Ministry of Disaster Management and Relief, established in 1972.
Besides this organizations, there are frontier organizations like the Bangladesh
Metrological Department, Flood Forecasting and Warning Center, Water Development
Board, Fire Service and Civil Defense. In the last couple of years, these organizations
have also been strengthened significantly.

82. Government’s Projects
82
Reducing the Risk of Disaster through promotion of Rights and
Governance
(Manusher jnno Foundation) (2005-12)
 Community mobilization
 Risk assessment
 Development and implementation of risk reduction action plan
 Capacity enhancement
 Awareness raising
 Integration with government development plan

83. Government’s Projects
83
Shelter Based Community Risk Reduction Project (SDC) (2009-)
Community mobilization
Formation of shelter management committee
Guidelines for normal time usage for community development.
Disaster management training for the members of Union and Upazila
disaster management committee (2006 & 2008)
Disaster Management Bureau (DMB)
Training organization and Conduction (Projects, 2018)

84. Government’s Projects
84
Adaptation to the Impact of Climate Change through Community-based
flood Warning System (2008-2009)
• Gap identification
• Designing of dissemination system
• Community mobilization
• Linking with disaster management committees
• Awareness raising
• Piloting of dissemination system

85. Findings

86. 86
Public finance pressures are a central consideration in the policy debate over how
best to stimulate growth in developing countries.
The fiscal pressures are: little tax revenue and high public expenditure needs.
Fiscal problem is a major consideration in the poor countries because it
vigorously hampers the economic system even for a little change in tax or public
expenditure.

87. 87
• The policies undertaken by the government for the rural development of
Bangladesh incurs less negative externalities
• The policies undertaken by the government in recent years had huge positive
impact in developing the rural economy and growth of GDP, though having huge
amount of cost.
• Due to scarcity of revenue and proper distribution method the efficiency of welfare
economics is hampered.

88. 88
 Fiscal policies should be adopted in such a way so that enough revenue is
generated and the cost does not outweigh the benefit.
 One type of response to this narrow tax base is to adopt any of a range of
policies that shift more of the economy into the sectors where tax collection
is easier

89. Recommendation
89
1. But it is more necessary to ensure proper flow of budget management system for the
assigned sectors and introduce law regarding the prospect and there should be
exemplary punishment system for violating those prescribed laws.
2. The nature of the relationship between public non- financial and financial institution and
budgetary system is quite vague and lack of transparency is there. It is needed to
maintain transparency in the budget system for the respected sectors.

90. Recommendation
90
• Unemployment rate of our country is still an alarming one. Government should take
proper initiative and measures to eradicate the unemployment rate from rural aspect to
urban area.
• Natural calamities mostly affect the rural area. So, budgetary help and precautionary
measures should be taken simultaneously with much care to handle uneven damages.
• Village industrialization factor should be taken care of basing on the geographical
situation, natural resources and scope.

91. Thank You.