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TheImpactofRuralDevelopmentProgramonPovertyAlleviationACaseofBangladesh
© 2015. Md. Mahi uddin, Mustafa Manir Chowdhury & Afzal Ahmad. This is a research/review paper, distributed under the terms
of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/),
permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
The Impact of Rural Development Program on
Poverty Alleviation: A Case of Bangladesh
Md. Mahi uddin α, Mustafa Manir Chowdhury σ & Afzal Ahmad ρ
Abstract- Poverty alleviation through rural development causes serious hindrances in balanced geographical
programs (RDP) has significant implication for Bangladesh the growth as well as growth of GDP (Mondal, 2000).
world’s most densely populated country having 71 percent According to Ahmad & Hossain (1983), rural
rural inhabitants. Considering the significance, the study
development is one of the most important factors for
examined various rural challenges and poverty reduction
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economic growth in Bangladesh. Bangladesh is
strategies of RDP underpinned by a quantitative research
technique. 192 poor households were randomly selected from primarily an agro-based country. Agriculture contributes
Year
four study villages under Chittagong District. The result nearly one-fifth of the gross domestic product in
indicates that the RDP, housing and agriculture, health and Bangladesh. In order to increase the growth of
education, significantly improved the poverty situation among agriculture, the Government has planned several 17
poor people through economic capabilities, human programs pertaining to Rural Development in
B
angladesh is a densely populated country of 160 infrastructure, provision of training to rural unemployed
millions of population. Bangladesh, with its 40% youth and providing employment to marginal Farmers/
people living below poverty line and 18% living in Laborers to discourage seasonal and permanent
absolute poverty, is suffering from acute rural-urban migration to urban areas (Taylor, Dyer, & Yunez-Naude,
economic disparity along with substantial poverty, 2005).
inequality, deprivation, illiteracy, lack of proper health The rural economy is an integral part of the
and sanitation facilities (BBS, 2014). The economy of overall economy of Bangladesh. As majority of the poor
the country is basically an agrarian one with vast reside in the rural areas, the prime goal of rural
majority of population living in rural areas. The development is to improve the quality of life of the rural
agriculture sector is unable to generate scope for further people by alleviating poverty through the instrument of
employment resulting in entry of rural population self-employment and wage employment programs, by
towards urban areas. Rural areas are characterized by providing community infrastructure facilities such as
isolation, lack or inadequate provision of basic drinking water, electricity, road connectivity, health
amenities, inadequate health and social services, facilities, rural housing and education and promoting
stagnant agriculture and scanty industries. decentralization of powers to strengthen the economy of
Underemployment and unemployment are ordinary Bangladesh (Sen, 2003).
phenomenon particularly in rural Bangladesh. The vast There are a number of different approaches to
human resources are remained unemployed due to lack understanding the meaning and relationship of rural
of education, proper training and concentrated efforts to development and poverty reduction. Rural development
help grow the rural economy. As a result, the country is as a concept has following dimensions: poverty
in the problem of uneven distribution of income that alleviation, agricultural development, ruralization of
development, and peasantization of development
(Ahmed & Chowdhury, 2000). Rural development may
Author α σ ρ : Assistant Professor Department of Business be defined as the development of regions excluding the
Administration International Islamic University Chittagong 154/A,
College Road, Chittagong-4203, Bangladesh. urban areas such as the towns and cities. Smaller
e-mails: mmur_cu@yahoo.com, mmanir7@yahoo.com, settlements such as villages, farmsteads, and market
afzaliiuc@gmail.com towns are normally included within the concept of rural,
while most of the land area is expected to be used as quarters of the population and the poor live in rural
agricultural land, forest or in its natural state. Therefore, areas, “impoverished (poverty)” indicates conditions
the promotion of rural development in a sustainable way resulting from income poverty. Improvement of well
has the potential of increasing employment being of the bottom 50 percent of the rural people would
opportunities in rural areas, reducing income disparities, contribute substantially to poverty reduction in the
stemming pre-mature rural- urban migration, and country (IBBL, 2008). The term rural development
ultimately reducing poverty at its very source (Anriquez means raising the productivity and the real income of
and Stamoulis, 2007). Hemson, Meyer & Maphunye families their levels of livelihood by increasing
(2000), explains rural development as follows: “Rural employment opportunities in farm and non-farm
development is multi-faceted in nature. It unfolds into a activities, thereby facilitating their levels of physical,
wide array of different and sometimes interconnected social and cultural well being (Veal, 2005).
practices. Among them are landscape management, the Rural development deals with multi-dimensional
conservation of new nature values, agro-tourism, issues, such as infrastructure, health care and hygiene,
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organic farming and the production of high quality and education, environment and governance as well as local
region-specific products.” Poverty reduction and income generation. Frequently, the concept of rural
Year
alleviation aims at reducing the negative impact of development is used confusedly with “agricultural
poverty on the lives of poor people, but in a more development” or “regional development”, however these
18
sustained and permanent way including using poverty concepts differ as “agricultural development” mainly
relief programs. It includes the state’s social grant aims at increasing agricultural products such as crops,
Global Journal of Management and Business Research ( A ) Volume XV Issue IV Version I
programs which could reduce the impact of poverty for livestock, fish and etc. Human being, land and capital
many people. It should be noted that poverty reduction are simply regarded as production of goods and means.
programs tend to have longer term goals. Thus the On the other hand, “Rural Development” mainly targets
state’s social policies both provide immediate relief for on people and institutions. Rural development includes
poor people, but have also been found to provide a agricultural development activities; however it is one of
developmental stimulus by empowering people to look the means of economic revival for active farmers and
for jobs who live in households in which members targeted rural villages. “Regional” has a wide meaning
receive social grants, or start their own small to describe “area” (i.e. a certain area in country) or
businesses. Basically, poverty reduction refers to “region” (i.e. continent of countries) (Fedderke et al,
strategies and policies that reduce the number or 2006).
percentage of people living in poverty or the severity of Rural development aims to improve sustainable
the impact of poverty on the lives of such people. livelihoods by implementing comprehensive
Almost all the developing countries in the world facing development programs for rural areas where a majority
the challenge of providing adequate employment and of people live in poor conditions. Rural development can
food entitlements to their present population (ILO, 2005). also contribute to reduce poverty in urban areas by
Poverty is multi-faceted (Khan & Ali, 2014). It can be reducing excessive population influxes from rural areas.
linked with hunger, unemployment, exploitation, and The promotion of rural development requires effective
lack of access to clean water, sanitation, health-care or external inputs to generate sufficient results and is
schools. It can also be vulnerability to crisis and capable of bringing further improvements. Development
homelessness (Woolard, 2002). issues must therefore be comprehensively and cross-
sectional understood for this to be realized. Maximum
II. Review of Literature use of human and material resources in rural areas is
also necessary to alleviate poverty. It is also important to
The concept of rural development is all safeguard the environment through resource
encompassing multidimensional facets of rural life. management and natural disaster prevention. Moreover,
Conceptually rural development is inter-disciplinary it is essential that governments assist a variety of
relating to economics, political, public health, business activities through a cross-sectional approach (Fedderke,
management, co-operative, credits, community Perkins & Luiz, 2006).
operation and other fields. The World Bank defines rural Rural development issues are often equated
development as a strategy designed to improve the with poverty reduction. Poverty is a multi-dimensional
economic and social life of a specific group of people. It concept. Traditionally poverty is viewed as pronounced
involves extending benefits of development to the deprivation in well-being. “To be poor is to be hungry, to
groups who seek a livelihood in the rural areas (RDS, lack shelter and clothing, to be sick and not cared for, to
1999). Rural development refers to improvement in the be illiterate and not schooled” (World Bank, 2001).
well being of the people living in rural societies. Rural Poverty is usually measured with reference to a
development encompasses poverty reduction as it threshold level of income or expenditure (called poverty
improves the livelihood of the people who lack line) needed to meet food and non-food basic needs for
capabilities to meet their basic needs. Since three- a person to maintain a healthy and productive life. These
© 2015
1 Global Journals Inc. (US)
The Impact of Rural Development Program on Poverty Alleviation: A Case of Bangladesh
measures are called “income poverty”. Social scientists not driven by proximity to customers or suppliers, and
and policy makers now agree that low levels of provision of education.
education and health are of concern in their own right.
a) Rural Development and Poverty Reduction
The deprivation in education and healthcare merit
Rural development process reveals a
special attention when accompany material deprivation
remarkable policy shift from community development
(NEDA-WB, 2003).
approach to poverty alleviation. Policy makers realized
Rural development refers to the improvement in
that development planning with local participation is
the well being of the rural people. Rural development
meaningless without reference to the empowerment of
would encompass poverty reduction, if the livelihood
the rural poor as possible way out to alleviate poverty
improvement brings into its fold people who lack
(Khan & Ali, 2014). A large portion of the poor lives in
capabilities to meet the basic needs. Since 75% of the
rural areas. Rural development must constitute a major
total population in Bangladesh still lives in rural spaces,
part of a development strategy if a large segment of
an extensive rural development that uplifts the well being
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those in greater need are to benefit. The importance of
of rural people would contribute substantially to alleviate
rural development on poverty alleviation in a developing
poverty in the country. In order to alleviate poverty, rural
Year
country like Bangladesh is increasingly realized by the
development requires an increase of consumers,
policy communities. Development of basic infrastructure
industrial development, and the improvement of
is essential to progress towards social development 19
infrastructure, and inhabitant’s productivity through
(Hemson et al, 2004). Development of such
expansion, education, health care services (Glaeser &
iv. Socio-cultural capabilities: to participate as a valued increase response rate and quality. Six demographic
member of the community with social status and items namely gender, age, marital status, and
dignity occupation of poor household respondents were
v. Protective capabilities: to prevent vulnerability from included in the survey to facilitate the interpretation of
food insecurity, illness, crime, war, and conflict. the results.
Nardi (2003) defines unit of analysis as ‘the
III. Objectives of the Study element about which you are observing and collecting
The main objective of the study is to investigate data, such as a person responding to a questionnaire, a
the impact of rural development on poverty alleviation. school, an editorial or local business’. The study
In order to achieve the main objective, following specific variables were measured at the individual level as this
objectives have been identified: unit of analysis was one integral to the research design.
Each individual and each subject investigated were
i. To examine various dimensions of rural
treated as an individual source (Sekaran & Bougie,
2015
© 2015
1 Global Journals Inc. (US)
The Impact of Rural Development Program on Poverty Alleviation: A Case of Bangladesh
sector, 32 percent were from small business. Only 6.5 dimensions of rural development. The KMO value of
percent respondents were self employed. sampling adequacy is 0.729 indicating sufficient inter-
correlations with the Bartlett’s Test of Sphericity was
b) Factor Analysis
significant (Chisquare=3308.475, P<0.01). The
To conduct the factor analysis to verify the basic
findings of the analysis of dependent variable (poverty
structure (Hair, Black, Babin & Anderson, 2010) as well
alleviation and social empowerment) are shown in table
as dimensionality (Sekaran & Bougie, 2010) of variables
three. All the items were loaded into one factor
of the study principal component factor analysis using
explaining a total variance of almost 65 percent. The
the Varimax rotation approach was applied. The factors
KMO measure of sampling adequacy is 0.612 indicating
of independent variables namely housing & agriculture,
a good inter-correlations with a significant Bartlett’s Test
health, education, training and communication were
of Sphericity (Chi square=2634.475, p<0.01).
shown in table two. A five factor solution emerged
explaining 66 percent of the total variance in five
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Table 1: KMO and Bartlett's Test
Year
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .729
Approx. Chi-Square 3308.475***
Bartlett's Test of Sphericity df 158 21
Sig. .000
The five factors derived are housing & analysis. Finally, the instrument contained 24 items,
agriculture, health, education, Training and employment, excluding six dependent variables. The various factors
and communication. The content validity ratio of all and the corresponding statements, along with their
items in the scale was more than 0.50. This fully reliability alpha have been incorporated into.
confirms the report of Hair, Black, Babin, Anderson &
Tatham (2005) regarding the appropriateness of factor
KMO 0.612
Year
Approximate X2 2634.542***
22 *** p<0.01
Global Journal of Management and Business Research ( A ) Volume XV Issue IV Version I
© 2015
1 Global Journals Inc. (US)
The Impact of Rural Development Program on Poverty Alleviation: A Case of Bangladesh
2015
that rural poor households experienced positive we measure change-or should we?, Psychological
impacts. This means that rural development programs Bulletin, 74, 68-80.
Year
succeeded to bring a positive impact on the alleviation 9. Fedderke, J., Perkins, P. and Luiz, J., 2006,
of poverty and development of socio-economic capacity Infrastructural Investment in Long-Run Economic
of rural poor households. The positive impact is 23
Growth: South Africa 1875–2001, World
consistent with respondents’ perception expressed Development, 34(6): 1037–1059.
1688.
25. Ullah, A. K. M. A. and Routray, J. K. (2007), ‘Rural
Year
© 2015
1 Global Journals Inc. (US)