Recent Developments in Bangladesh Rural Economy: Implications for Strategies and Policies for Alleviation of Poverty (Rural DEVELOPMENT AND POVERTY Alleviation) (Report‪)‬

This paper takes a look into the operation of the rural economy of Bangladesh and its development over the last decade. The information is drawn from two nationally representative sample surveys conducted by the Bangladesh Institute of Development Studies in collaboration with the International Rice Research Institute. Determinants of household incomes are analysed using a multivariate regression model, drawing on the findings of the strategies and policies for poverty alleviation. Recommendations include an emphasis on more efficient crop and land and water management practices for further increase in crop yields and reduction in the unit cost of production. Planning and prioritisation of agricultural research must also ensure that crop and non-crop agricultural activities that have high income elasticity of demand get a larger share of research resources than their contribution to agricultural value-added. First, major research efforts should concentrate on fish, livestock, and agroforestry technologies with a special emphasis on home-based production systems that can be adopted by the landless and marginal farmers. Second, improved varieties of non-cereal crops, particularly pulses and oilseeds, may be encouraged to meet the growing shortage of these food items that are important sources of balanced nutrition for the low-income groups. And, third, improved varieties of rice suitable for the floor-prone and coastal regions are needed. Moreover, in order to support low-income households to participate in the process of development, there is a need for the expansion of rural infrastructure, i.e.. roads, education, electrification, and telecommunication facilities, as these are found to be important factors behind the development of the rural non-farm sector. I. INTRODUCTION