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Bangladesh

Building Local Institutions to Manage Resettlement Programs for Infrastructure Development

Fabio Pittaluga's picture

I moved to Bangladesh 3 years ago with a lot of excitement as I considered it a sort of mini-laboratory for development theory and practice.

My task was to oversee the Bangladesh portfolio from a social perspective. From day one, there was one issue that came up in almost all projects: land acquisition and resettlement. Once can expect this, given high population densities in a small country. Surprisingly, while there is a lot of debate about shortages of power and electricity for Bangladesh development, little attention is paid to the land issue. But all infrastructure has a footprint and access to land is complex.

This huge challenge was matched by a dearth of professionals to manage social risks. While the market for such services is growing, there was no institution to train people in those disciplines in the country. I could have continued to hire foreign consultants, but that didn’t seem very smart in the long run. So I thought: “let’s establish a course in a local university that would create that capacity over time and train a cadre of professionals capable of conducting a serious social impact assessment, carry out a good consultation process or design a solid resettlement action plan”. My intention was to fill a systemic gap. That could only happen over time, and it could only happen via local institutions.

And so I did.

Empowering Local Leaders for Sustainable Development in Bangladesh

Nilufar Ahmad's picture

The Bangladesh Local Governance Support Project (LGSP) was initiated in 2005 when local leaders voiced their demand for discretionary funds among others to serve their constituencies at a meeting. Union Parishad (UP) is the lowest tier of rural local government has a history over 170 years and held regular elections, however, UPs never received direct funding.

Funds were previously allocated by line ministries at the Upazila (sub-district) level for certain activities; neither the local government (UP) nor local people had a say on their own development priorities. The UP act of 1983 designated 38 mandates on the UP, but made no fund provision for carrying out those mandates. The average population of an UP was about 35,000 and UPs are the closest service delivery institutes to citizens. In 1998, an UP amendment ensured direct election of women in three seats.

While the Minister of Local Government was supportive of the project, most of the national political leaders (ministers, members of parliament) and bureaucrats were against autonomous local governments. Nationwide consultations were organized between local leaders and communities, supported by civil society, for mobilizing a united voice of local needs and incorporating these in the project design. It was a challenging time with episodes of violence.

Employment Programs By Any Other Name...

Maitreyi Bordia Das's picture

Is it an employment program? Is it an anti-poverty program? Is it a safety net? Is it a disaster management program, is it…..? Actually, it’s all of these. Public works programs are both good development and good politics. India’s National Employment Guarantee Scheme (now called the Mahatma Gandhi EGS) , despite its implementation challenges, is fast becoming the stuff international lore is made of.

Demographers talk of the diffusion effects of ideas of low fertility and other behaviors. And while South Asian countries have a history of public works programs as safety nets – a history that actually goes back to the Maurya Empire in circa 3rd century BC - the diffusion effect of NREGS across South Asia is apparent. This is as much due to the urgent employment needs in all countries in the region, as due to the fact that the Congress victory in India was purported to have hinged significantly on NREGS.

International Women's Day: Why Aren’t We More Concerned About Women’s Physical Safety?

Maitreyi Bordia Das's picture

Fundamental rights in most South Asian countries include freedom of movement – you can go where you want, when you want within a country. But for the majority of South Asian girls and women the reality is very different – they need permission to go almost anywhere. Now, does this stem from norms of patriarchal control or a rational response to threat of physical harm? I like to believe the two are mutually reinforcing. When families are afraid of what will happen to their daughters when they go out alone, they tend to be over-protective or over-controlling. This is certainly what happened to me and my peers as we grew up in Delhi in the 70s and 80s. While many more women are out in public spaces now, the very fact of this visibility is often a trigger for violence. Fewer than half of married women surveyed in Pakistan or Bangladesh feel safe moving alone outside their village or settlement, even during the day (World Bank 2006, 2008).

Safety and security of women in public spaces is seen often as a right, which indeed it is, but, lack of it is also a huge impediment to accessing a range of services and markets – for instance, health care, education and employment. In Pakistan and India, one of the reasons why girls drop out of school after puberty and especially when secondary schools are located a long walk away, is the fear of violence en route.

Conflict and Development: Where is Conflict Concentrated in South Asia?

Ejaz Ghani's picture

After Iraq, South Asia is the second most violent place on earth. Conflict has increased in South Asia during the last decade. Where is conflict concentrated? What can be done about it?

Conflict is a very broad term, which is often defined differently in different contexts and data sets. We can, however, consider two broad classes of conflict. The first category includes conflict against the State. Examples of this include civil war or terrorism, which is an extreme manifestation of conflict, and it reflects a certain degree of organization of conflict. It is carried out by a relatively organized group of non-state actors, and directed against the State. Some researchers choose to focus on terrorism as a measure of conflict, because it has implications for the overall stability of the state itself, and therefore its ability to implement any developmental policy. The second category includes people-to-people conflict, rather than directed against the State. Examples of this include localized land conflicts, religious riots, homicides or other crimes. They too have adverse implications for development, but are probably less severe, compared to terrorism.

Results’ Agenda and Economists

Eliana Cardoso's picture

In the book, The Idea of Justice, Amartya Sen motivates the discussion on the importance of processes and responsibilities by relying on an example. In the Gita (part of the Mahabharata), on the eve of the crucial battle episode in the epic, Arjuna expresses his doubts about leading the fight which will result in so much killing. Lord Krishna, tells him that he, Arjuna, must perform his duty, that is, to fight. And to fight, irrespective of the consequences.

Krishna’s blessing of the demands of duty is meant to win the argument from a religious perspective. But most of us would share Arjuna’s concerns about the fact that, if the war were to occur, with him leading the charge on the side of justice and propriety, many people would get killed. He himself would be doing a lot of the killing, often of people for whom he had affection.

Geography, Infrastructure and Poverty Reduction

Eliana Cardoso's picture

The proportion of people living below the poverty line in Bangladesh has fallen sharply from close to 60% in 1990 to 40% in 2005. Using the Household Income and Expenditure Survey conducted by the Bangladesh Bureau of Statistics; economists Aphichoke Kotikula, Ambar Narayan and Hassan Zaman find that the number of poor people in Bangladesh fell by nearly 6 million between 1990 and 2005. The study, “To what Extent are Bangladesh’s Recent Gains in Poverty Reduction Different from the Past? also shows substantial improvements in living conditions. For instance, the percentage of households with connections to electricity increased from 31% to 44% between 2000 and 2005.

Key factors contributing to poverty reduction include changes in certain household characteristics – most prominently, a smaller number of dependents and improvements in their education.

Do Cities Matter?

Ejaz Ghani's picture

It is a paradox that India which is among the most densely populated countries in the world, is also among the least urbanized. The figure below compares urbanization rates with income for more than 100 countries. It shows that an increase in urbanization rate is positively associated with real per capita income. This is the iron law of development—i.e., growth is associated with the reallocation of labor and capital away from traditional (rural) sectors to modern (urban) sectors. Spatial transformations that give rise to urbanization accelerate growth because households and firms benefit from scale economies, mobility, and specialization. Increased urbanization contributes to growth, job creation and poverty reduction. This can indeed become a virtuous circle.

Food Prices and the Inflation Tax

Eliana Cardoso's picture

Oscar Wilde, suspecting that the relationship between price and value hides reasons that reason itself ignores, observes in the Lady Windermere’s Fan that a cynic is “a man who knows the price of everything and the value of nothing”. The economist will laugh at Wilde’s one-liner. But after a brief moment, she would protest. Theory tells her that value and price is one and the same thing. And she will insist that what matters for South Asians today is the difference between an increase in the price level and an increase in the inflation rate.

The price level increases when there is a supply shock, such as an increase in food and fuel prices. The initial increase in the price level tends to transmit itself to other prices when the economy operates close to capacity. If the price increase is accommodated by monetary policy, the supply shock transforms itself in a spiral of prices and wages and inflation goes up. Monetary authorities do right by not tightening monetary policy in response to the primary impact of supply shocks, but have to be attentive in case the increase in food prices begins to encourage secondary inflationary effects.

The Dutch Disease has not Infected Bangladesh, not yet any way

Zahid Hussain's picture

The Netherlands’ discovery of large natural gas deposits in the North Sea in the 1960s had serious repercussions on important segments of its economy, as the Dutch guilder became stronger, making Dutch non-oil exports less competitive. This has come to be known as "Dutch disease" or “resource curse.” Although generally associated with a natural resource discovery, it can arise from any large inflow of foreign currency--foreign assistance, foreign direct investment and remittances, among others. A surge in remittances can be expected to result in appreciation of the currency in the receiving country with all its attendant consequences of crowding out exports, crowding in imports, and induce movement of resources into the production of non-traded goods.

Bangladesh has experienced a remittance boom since FY01—with annual flows rising from $1.9 billion to $9.7 billion in FY09—growing at a compounded annual rate of 22.6 percent for eight years and still counting! As a result, remittance has now reached nearly 11 percent of GDP and is now the single largest source of foreign exchange earnings.

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