Development Planning in Bangladesh

1. Development Planning in Bangladesh Doyananda Debnath Phd 13105 Date: 04 July, 2014

2. Highlights I. About Bangladesh II. Policy Making Process III. Features of Policy Documents IV. Development Planning Process IV. Enhancement of Development VI. Conclusion

3. I. About Bangladesh • Bangladesh: Ethnically Homogeneous • Independent: 1971 • Area: 130,168 km2 • Population: 160 million (8th rank!) • Population Growth Rate: 1.59% • Life Expectancy: 70.36 years • Population Density: 1,237 per sq. km. (12th rank!) Bangladesh (http://www.youtube.com/watch?v=vguIQNmUijU)

4. II. Policy Making Process

5. Macroeconomic Management • GDP per capita: 840 USD (568.72 USD 2000 price) • GDP growth: 6.30% • Inflation rate: 6.64% • Unemployment rate: 15% • Public debt: 22.8% of GDP • Population below poverty line: 21.5% * All data in 2012

6. Features of Policy Making • Vision: Rupakolpa 2021 • FYP/PRSP: Development Plan • MTBF: Public Investment Plan • ADP: Annual Public Investment

7. Actors of Policy Making • Leader: PM • Playing leadership role (vision) • CEAs: MOF, PC (MOP), ERD • Development policy formulation; • Public investment planning; and • Aid management. • Key Actors Ministries, Local Govt., Donors (DP), Other Stakeholders • Effects CEAs functions; and • Role of implementation.

8. Policy Making Approach

9. Policy Making Process

10. III. Features of Policy Documents

11. Vision 2021 • A long-term Perspective Plan 2010-2021. • Vision: Transforming socio-economic environment of Bangladesh from a low income economy to the first stages of a middle income economy.

12. Vision 2021: Issues • The Vision 2021 has set solid development targets for Bangladesh by the end of 2021. • It targeted to have a higher standard of living, better education, better social justice and a more equitable socio-economic environment. • The implementation of Vision 2021 will be done through two medium term development plans with the spanning of FY11/12-15/16 (6FYP) and FY16/17-20/21 (7FYP).

13. Vision 2021: Targets • Income and Poverty: Attaining average real GDP growth rate of 7.3% per year over the Plan period (to achieve $2000 per capita and reducing poverty to below 16%). • Human Resource Development: Achieving 100 percent net enrolment rate for primary education and increasing enrolment rate in 12th class to 60% (to attain unemployment rate below 5%). • Information and Communications Technology (ICT): Increase public spending on Research and Development to 1 percent of GDP by FY15 and 1.4 percent by FY 21.

14. Sixth Five Year Plan: 2010-2015 • A strategic directions and Policy Framework for FY2011-FY2015 • Purpose/Goal: Accelerating Growth and Reducing Poverty.

15. SFYP: Features • A large part of the financing is targeted from the domestic public resource mobilization, private savings and remittances. • Much of the higher investment will be deployed to reduce and eventually eliminate the infrastructure constraint (primarily power and transport) and to finance human development. • The strong efforts (proper policies, institutions, and incentives) will be made to enter into Public Private Partnerships (PPP) to finance in priority areas of infrastructure and human development.

16. SFYP: Investment Plan The total investment: $ 168.75 billion Public investment: $ 38.75 billion (22.8%) Private sector investment: $ 130 billion (77.2%) Domestic financing: $ 152.50 billion (90.7%) External financing: $ 16.25 billion (9.3%)

17. SFYP: Key Strategic Elements • Infrastructure Development: The core infrastructure development primarily in power and transport. • Promotion Industry: Promoting industry through SME. • Enable Technology: Introducing appropriate ICT based environment and strong emphasis on technical education. • Population and Health: Renewed efforts for further slowdown the growth of population through emphasize girl’s education, female re-productive health, population control service delivery based on public-private partnership, and social mobilization. • Capacity Development: The capacity development through four pillars: strengthening the civil service; promoting devolution to local governments; strengthening public-private partnerships; and reforming planning and budgetary processes.

18. MTBF: Public Investment Plan • The initiative of Medium Term Budgetary Framework (MTBF) process is an improvement of the efficiency of public spending. • The MTBF is strategic and indicative planning that links medium-term development plan (FYP) and annual Development plan (ADP)

19. MTBF: ICT Ministry 2014-2016

20. Lacking of Development Policy • Well documented but ill implemented! • Factor Endowment: The enhancing of factor endowment (land, capital, credit and skills) of the poor including women is not specified. • Gender Equity:The equal opportunity for women in all sections of the society with the objective of integration is absent. • Investment Plan: The MTBF budgetary plan (especially for development budget!) is not insurance for ADP implementation. • Anti-Corruption:The initiative to strong anti-corruption strategy is still poor.

21. IV. Development Planning Process

22. V. Enhancement of Development • The basic foundations for coordination mechanisms established among central economic agencies (CEAs); • Donor advice but the dependency of aid is declining; • Public-private-partnership (PPP) initiative (but not effective yet!); • Mega project in the country: JMB (completed), Tessta Barrage (completed), Padma Bridge (on-going!); • Poverty level is still high but it is declining!

23. VI. Conclusions 1. Bangladesh has dysfunctional politics and a stunted private sector. Yet it has been surprisingly good at improving the lives of its poor– The Economist (3 Nov, 2012). 2. Bangladesh sustained healthy GDP growth and moderate single digit inflation in FY14– The World Bank (9 April, 2014).

24. Thanks for patient hearing!! The End