BANGLADESH

PRESENTATION ON
Employment Generation and the Future Labor
Sector of Bangladesh

PREPARED FOR:
Mohammad Ahamuduzzaman
Senior Lecturer
East West University
Department of Business Administration
PREPAPRED BY:

Salma Nur
Khondokar Kamran Tasnimur Rahman Ariful Haque Murad Tauhid Hossain
Syaba Tarannum Quader ID: 2007-2-10-173
Bin Khaled ID: 2008-1- ID : 2007-1-10-002
ID: 2008-1-10-152 ID: 2008-1-10-063 10-049 ID : 2007-1-10-003
 Employment
Generation???
EMPLOYMENT GENERATION
ALTERNATIVES (CONTINUED)

Support Entrepreneurial Activity and the Development of New

Small Businesses

Increase income and employment in local agribusiness industries

by further processing of local production or the development of
new agricultural products for the area.

Expand local service and trade activity to reduce leakages of

spending outside the community.
Employment Generation Alternatives
(continued)

Develop tourism, recreation, and retirement industries to the

extent that significant outside spending is attracted to the
community.

Develop programs which will aid in the retention and

expansion of existing businesses
 Bangladesh and its Economic trend in the past

 Since its independence in 1971, Bangladesh has made some important

strides towards growth and poverty alleviation.
 Vast size of the population and existing levels of investment and growth,
hampers economic as well as social growth.
 Nearly two fifths of the population still live below the poverty
threshold.
 But it has seen an impressive decline in poverty over the last twenty years
 Yet according to the 2009 Household Income and Expenditure Survey
(HIES) 40 percent of the population still lives in poverty and 25 percent of
the population in extreme poverty (HIES 2009).
 In 2009 Employment Generation Programme (October to December 2009)
created 16,555,325 person days of employment.
 BANGLADESH
EMPLOYMENT
GENERATION PROGRAM
2010
DESCRIPTION
 Component 1: The Main Program
Component (MPC) (US$ 144.75 million)
 Focus Area 1: Rigorous Targeting
 Focus Area 2: Improved governance through
clearer rules and enhanced transparency.
 Focus Area 3: Better Capacity for Monitoring
and Evaluation.
 Component 2: The Operational Support
Component (OSC) (US$ 5.25 million)
Strengthen reporting and monitoring of the
EGPP operations
Provide training to staff engaged in EGPP to
enhance their capacity in targeting beneficiaries
and delivering benefits
FINANCING

 BORROWER/RECIPIENT International

 Development Association (IDA)

IMPLEMENTATION
 The Disaster Management and Relief Division of
the Ministry of Food and Disaster Management will
implement the program

 A full-time Project Director, not below the rank of

Joint Secretary, will support the program

 An Office of the Project Director will be established

in the DMRD, to ensure efficient and timely
implementation.

 One full-time Deputy Project Director, not below the

rank of Deputy Secretary, will assist the PD in the
implementation of the project
 A Technical Project Review (TPR) Committee,
headed by the Project Director, will further
assist in implementing the program

 The Project Implementation Officer (PIO) of

every upazila will be the focal point for the
implementation of the program at the upazila
level

 It will be advised, guided and supervised by a

National Steering Committee
SUSTAINABILITY
 IDA is supporting an ongoing GOB program, and
the program is expected to remain a key priority of
the Government beyond the duration of the
proposed program.

 The recent strengthening of the implementing

agency supports the institutional sustainability of
the program.

 The project design includes mechanisms that will

assess the EGPP’s progress and impacts as well
as ensure that future decisions incorporate the
information from these assessments.
Lessons Learned from Past Operations in the
Country/Sector

 Bangladesh experience

 Within the constraints of a rapid project

preparation the team undertook some rapid
assessments of the first two phases of the EGPP

 International experience
 Monitoring and evaluation mechanisms
 Wages should be set slightly below than the prevailing
market wage
 Use poverty mapping for geographical targeting
 Reasonable labor intensity
SAFEGUARD POLICIES (INCLUDING PUBLIC
CONSULTATION)

 The project interventions are not expected to

cause any large-scale, significant and
irreversible adverse impacts on the
environment.

 An Environmental Management Framework

 No major adverse social impact is expected

 A Social Management Framework (SMF) has

been prepared
The Sectors Contributing in Bangladesh Economy

Agricultural sector of Bangladesh:

 Agricultural activities dominate the national economy
account for 38% of gross domestic product (GDP).
 Total 70% of the population is directly or indirectly employed with agriculture
The Sectors Contributing in Bangladesh
Economy (Continued)
Forest sector:
 The contribution of the forestry sector to GDP is small (2.32%)
 It is very important for rural people and environment
 Around .1 million people are employed within this sector

Garment Industry in Bangladesh:

 A relatively new phenomenon in Bangladesh.
 The sector rapidly attained high importance in terms of employment,
foreign exchange earnings and its contribution to GDP
 The garment industry of Bangladesh has been the key export division
and a main source of foreign exchange for the last 25 years
 At present, the country generates about $5 billion worth of products
each year by exporting garment.
 The industry provides employment to about 3 million workers of whom
90% are women.
The sectors contributing in Bangladesh
economy (Continued)
Spinning & Textile Industry in Bangladesh:
 Spinning is the first stage of the four major processes of the
textile industry

• At present, there are 118 spinning mills in the country of

which 30 units are under the public sector and remaining 88
units are under the private sector.
• The important problems of the spinning sub-sector are
obsolete technology (about 45 spinning mills are aged more
than 25 years),
• Frequent failure of electricity supply,
• Scarcity of raw materials and
• high import duty on raw materials and spares,
• high percentage of wastage, lack of proper maintenance
• 4.5 million people are associated with in this sector.
The sectors contributing in Bangladesh
economy (Continued)
Leather Industry:
 Bangladesh is capable of producing 180 million square feet of
leather per year
 More than 80% of the country’s annual production is exported
throughout the world.
 The local leather industries export their products to 53 countries
across the world, and the declared profits in 2002-2003 were
$230 million.
 Total population within this sector accounts for .2 million.
Sugar Industry
 Bengal was well known for quality sugar in the 16th century. The
East India company exported large quantities of sugar from
Bengal every year.
 15% of the total labor force are associated within the sugar
industry.
TEA INDUSTRY
 Tea Industry was pioneered in the 19th century by the British
planters.
 Tea industry of the country faces serious problems and the
economic condition of about 80 gardens is critical
 Some have large overdue loans of Bangladesh Krishi bank
 Irregular power supply is also a major cause of production loss
 The tea sector contributes about 0.8% of the GDP in Bangladesh.
 About 0.15 million people are directly employed in the tea
industry, which constitutes about 3.3 percent of the country's total
employment
 Handloom Industry
It is the second largest source of rural employment
next only to agriculture.
The handloom industry accounts for about 60 percent
of the total fabric production of the country
As per the World Bank Report of 2008, production
capacity of handloom is 195.50 crore meters
Around 1milion are employed in this sector.
 Tourism Industry
 Bangladesh tourism industry and its market have
failed to grow properly
 Due to inadequate infrastructure, insufficient
facilities at the destinations, and inaccessibility
to the destinations by road, rail and air
transports
 Almost 60% of foreign tourist arrivals are for
business or official purposes, and the number of
leisure tourist arrivals is insignificant.
 Around .3 million are employed in this sector.
 Fisheries & livestock sector of
Bangladesh
 This sector has been playing an increasingly
important role in the economy uplift efforts of
Bangladesh
 It is a labor-intensive and quick-yielding sector
 The sector contributes 3.3% of the GDP and 10.33%
of the agriculture sector and contributes to 2 million
of the population for employment
 Fish production increased to over 1 .4 million during
2008-2009.
BANGLADESH AS A EMERGING MARKET

 The external impression of Bangladesh is that of a populous and poor country

– 128 million people with little purchasing power.
 Bangladesh is in the process of a transition from a predominantly agrarian
economy to an industrial and service economy.
 The private sector is playing an increasingly active role in the economic life of
the country.
 The share of value added by agriculture in Bangladesh’s GDP has fallen from
34 per cent in 2000 to 28 per cent in 2009.
 The service sector’s contribution has increased during the same period from
42 to 49 per cent. Industry’s contribution has increased from 24 to 28 per cent.
Investment Climate: Key Factors for Foreign
Investors

Strengths
 A largely homogeneous society with no major internal or external tensions and
a population with great resilience in the face of adversity (e.g., floods).
 Broad non-partisan political support for market-oriented reform and perhaps
the most investor-friendly regulatory regime in South Asia.
 Trainable, enthusiastic, hardworking and low-cost (even by regional
standards) labor force.
 Potentially significant market, especially with potential access to South Asia.
Investment Climate: Key Factors for Foreign
Investors

Weaknesses
 Large perceived gap between good policies and weak implementation
(for example, by the pace of privatization).
 Low levels of skills and training in the workplace.
 Unreliable power supply and poor transport and communication
infrastructure.
Investment Climate: Key Factors for Foreign
Investors

Opportunities
 Natural gas exploration – proven reserves of 11 trillion cubic feet and
estimated reserves of up to 50 tcf.
 Infrastructure, including power generation, transmission and distribution;
telecommunication, including cellular telephony; and upgrading of ports,
railways and airports.
 Fisheries, agro-processing, textiles, leather goods and light manufacturing
generally.
 Health, education and other services including software services.
 Multilateral and bilateral financing may be available for infrastructure
projects.
Investment Climate: Key Factors for Foreign
Investors

Threats
 Periodic flooding and cyclones.
 Law and order problems, including hartals (political strikes).
 Anticipated end in 2009 to the export quotas provided under the
Multi-Fibre Arrangement (MFA) to the ready-made-garment (RMG)
industry, currently the principal foreign-exchange
Business Strategies for Textile Industry

 Available Cheap Labor

 Governments Subsidy Policy
 More Investment
 Growing Faster
Recommendations

 Creating employment through entrepreneurship

 A standard policy for root level people
 More Concentration in commercial crop
 Expanding market more
 Growth of Education
 More Research