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close this bookDeveloping the non-farm Sector in Bangladesh: Lessons from other Asian Countries (WB, 1996, 116 p.)
View the document(introduction...)
View the documentForeword
View the documentAbstract
View the documentAcknowledgements
View the documentSummary
View the documentImperatives and models
View the documentMacroeconomic trends in Bangladesh
Open this folder and view contentsWhat drives growth?
Open this folder and view contentsPattern of development
View the documentChoosing appropriate technologies
Open this folder and view contentsOther lessons from comparative experience
Open this folder and view contentsRural industry in Bangladesh
Open this folder and view contentsRural industry and export-led growth
View the documentGrowth poles
View the documentConcluding observations
View the documentTables and chards
View the documentBibliography

Abstract

To increase per capita incomes at a faster pace and reduce the incidence of poverty, Bangladesh must significantly raise the average GDP growth from the 4 percent range of recent years to 7-9 percent per annum. The sectoral sources of growth are limited, the share of industry in GDP is small, and the sector lacks dynamism. Although services account for 45% of GDP, the likelihood of it providing much additional growth momentum are also quite limited. Thus, an improvement in Bangladesh's economic performance is likely to come from an increase in agricultural productivity and the spread of rural industry. The purpose of this paper is threefold: to provide the macroeconomic backdrop to development in Bangladesh and to show how it compares with other countries with respect to a number of key indicators; to explore the preconditions for the emergence of rural industry as a leading sector and the lessons from the experience of Asian and African economies with regard to rural industrialization; the state of agriculture and rural industry in Bangladesh and a discussion of factors explaining recent trends; and the delineating of a strategy for promoting rural based industries with backward linkages to agriculture and forward to the urban sector.

The findings of the study underscore the importance of location, with the hinterland of a few key cities having an edge over other parts of the country; the contribution of transport and communication infrastructure to rural industrialization; the advantages of adopting an export orientation and of seeking foreign direct investment; and the potential developmental role of local governments.