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Incorporate more projects in PRSP to spur rural economy

Local NGO urges govt

Star Business Report
As poverty reduction strategy paper (PRSP) is going to be finalised in May, a local research and development organisation yesterday asked the government to incorporate more projects in the paper focusing on investment flow in rural economy.
Shamunnay, a research wing of local NGO Unnayan Shamannay, also asked the government to raise agricultural subsidies to 10 percent of GDP from existing 2 percent. It said public investment in rural areas is declining which may result in missing millennium development goals for the country.
Addressing an opinion-sharing discussion on PRSP with newspersons, Atiur Rahman, chairman of Shamunnay, said the coun-
try needs to increase investment growth from current 23.6 percent to 30 percent to add two percent GDP growth to the present rate of over 5 percent.
Shamunnay, a research wing of Unnayan Shamannay, in association with Manusher Jonno, a local NGO, organised the discussion in Dhaka.
Presenting an analytical paper on PRSP, Atiur said the country has to achieve at least seven percent GDP growth to halve poverty by 2015. Without investing and generating employment in rural areas the growth target cannot be obtained.
He said the government should chalk out a detailed employment generation target in the next budget, as creating job is vital for reducing
poverty. He said India set up a Rs 11,000 crore job creation fund in this year's budget and also earmarked Rs 32,000 crore for investment in textile sector which will generate huge employment.
"Employment generation should be thefirstfocus in preparing PRSP. The government must draw up specific job creation target in budget. Plans should be made to reduce poor-rich gap as well," said Atiur, also an economist.
He said the government must control inflation. "Inflation is the biggest threat to economy."
The government puts inflation rate at about 6 percent but the price spiral suggests that the rate near 8 percent. If inflation reaches double digit, the macroeconomic stability
will collapse, Atiurforecast.
He asked the government to take measures so that microcredit organisations can join hands with commercial banks to extend the coverage.
The economist said PRSP is likely to avoid many areas including quality of education, technical and vocational education, increased access to information technology and pragmatic plan to reduce economic gap between the rich and the poor.
He asked the policymakers to invite suggestions on PRSP from all stakeholders involved in it and initiate a debate in parliament before finalising.