Strengthening Bangladesh’s agricultural technology system to reduce rural poverty

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Strengthening Bangladesh’s agricultural technology system to reduce rural poverty

Agriculture accounts for about 23% of Bangladesh’s GDP and another 33% of GDP is contributed by the rural non-farm economy, which is largely linked to agriculture. Agriculture and rural non-farm economy are the main sources of livelihood for rural people.  With almost 85 out of 100 poor people living in rural areas, poverty in Bangladesh  is largely a rural phenomenon. Improved economic performance of the agriculture and the rural non-farm sectors is, therefore, critical to reducing poverty.

Overall, the agricultural sector has performed reasonably well.  However, the growth in the agricultural sector has stalled in the last few years.  In the Poverty Reduction Strategy Paper (PRSP) document, the Government of Bangladesh (GOB) has indicated the need to achieve 7% overall annual economic growth in order to achieve the Millennium Development Goal (MDG) of poverty reduction – a target which will not be possible unless the agricultural sector achieves at least 5% annual growth rate. 

Among the key constraints in achieving this objective are:

·        Agricultural land is actually declining and quality is deteriorating.

·        Agricultural productivity growth has either stagnated or declined.

·        Pace of diversification from low value cereals to high value commodities is slow.

One of the most important ways to address these constraints is to generate, disseminate and promote the use of appropriate agricultural technology that is suitable for the agro-climatic conditions in Bangladesh. This would require an efficient and responsive agricultural research and extension system. At the request of the GOB, the World Bank has agreed to assist with the strengthening of the agricultural technology system. A roadmap for improving agricultural productivity has been developed in a draft report on Revitalizing Agricultural Technology System in Bangladesh .

The proposed project will address the following issues:

Promoting institutional efficiency of agricultural research system:Enhancing the efficiency and effectiveness of the National Agricultural Research Systems (NARS) is vital to increase agricultural productivity. It is also essential to give Bangladesh ’s farmers a greater say in directing NARS, along with improving understanding of yield gaps (i.e., what is being produced and what is possible) and developing technologies to promote productivity, sustainability and diversification of agriculture.

Improving sustainability of funding for agricultural research: One major constraint to higher agricultural productivity is the low level of government expenditure on agricultural research. At present, the expenditure is only about 0.2% of Agricultural GDP, compared to 0.6% for other developing countries and over 2% for developed countries. In addition, the existing funding for research is unstable and often tied with the life span of a particular development project (i.e., funding stops when project ends). The project proposes to develop a system whereby funding for research can be sustained and allocated to priority research projects on a competitive basis.

Decentralizing the agricultural extension system: An agricultural extension system based on the bottom-up approach will be more responsive to farmers’ needs and is necessary to improve the overall performance of the agricultural sector. Such a system would be more efficient, knowledge-based and address the real problems faced by farmers.

Developing value chain and market linkages: An element of strengthening agricultural technology systems would be to promote the development of value chains of   a few selected high value commodities based on comparative advantage, farmer preference and market demand. 

Finally, the World Bank has requested the status of GOB’s strategy for safeguarding against the risk of avian influenza or “bird” flu and a possible role of the proposed project in preparing the agricultural sector to meet any such threat. Bangladesh has been identified as a high risk country.  All the appropriate surveillance, diagnostic and preventive activities must be in place to safeguard the country against such a risk.

The proposed project is at the preparatory stage and undergoing a process of consultation with key stakeholders.