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BITTER TRUTH

Agro-based industries in countryside
THE political as well as economic situation in the country is perhaps heading for chaotic times with no apparent signs of a redeeming future for the people at large. Millions of them have started wondering whether elections or people's government could bring about substantial change in their lot. Happily, food shortage could be avoided during the last two years because of intensive thrust on agriculture to increase productivity, but most people in the countryside, where 70% of the population lives, remain as poor as ever.
The lower middle class and working class just could not share the country’s economic growth.
As the political impasse lingers, development efforts stall, economic woes mount, more and more people are leaving their rural homes. Rural areas are charged with rising and unfulfilled expectations of vast numbers of unemployed youth because of the mal-distribution of national wealth and lack of expansion of basic industries which could offer employment to them. The people are crying for setting up of industrial zones in the countryside with the availability of electricity at affordable price.
The countryside has vast possibilities. The populace is implicitly committed and persevering and imbued with a sense of integrity and sincerity of purpose. But this potential, till now, has not been tapped.
Because of political bickering, vandalism, extortion, terrorism, disintegrating transport system, lack of smooth road links, power crisis and other disincentives, investors from abroad are withdrawing from Bangladesh. Bangladeshis are also pulling out their money.
In the face of such an ominous situation, the prime
responsibility rests with the politicians. Political leaders and industrial entrepreneurs must consider selfsacrifice rather than self-service as the most essential agenda now. In rejecting other political parties in the last election, the largely illiterate and overwhelmingly poor electorate confirmed a vigorous tradition of exercising its right to make free political choices. Voters also signaled their disillusionment with the previous regime's failure to deliver on its tall promises to spur equitable economic growth and agricultural rejuvenation. Sadly true, the policy measures pursued by the Ailed government so far have fallen far short of the party's election pledges. The hopes and aspirations of the rural folks can only be realised by implementing the proposed "one house, one farm" policy in rural Bangladesh
For balanced development of all areas and all classes of people, the role of small-scale industries that can contribute significantly to the development of all regions can hardly be overestimated. People were hoping that after the construction of the Padma Bridge, the full potential of the country would pave the way for equitable distribution of wealth through labour-intensive production mechanisms so vital for creating jobs. Development efforts that do not involve nearly 60% of its population cannot lead to economic emancipation. Promoting small industries and small business at the doorsteps of the people and augmenting their skills can lead to alleviation of the woes of the people.
The growth of, and the role played by, the business houses and commercial entrepreneurs mark a salient criterion for economic development. But the business houses must contribute at least 3% of their after-tax profit to the poverty alleviation programmes annually. The government must think about advancing loans to low income groups and enthusiastic young entrepreneurs on either very low or no interest basis for income generation. Such loans not only encourage but also
induce people to start small enterprises in rural areas.
Evidently, such programmes when initiated with availability of electricity at affordable price, availability of housing facilities for the workers and excellent road links, not only with cities but also with land and river ports, foster economic growth. When these facilities are created, the rising tide of migration to the cities will come to a halt.
Our experiences suggest that government optimism about attaining macro-economic stability through utilisation of World Bank and IMF loans in development projects did not bear fruit. People are worried that the fruits from the economic expansion have gone mainly into the coffers of the big companies, affluent groups and influential quarters.
To offset such trends, the government must ensure that successful private firms, entrepreneurs and industry owners distribute at least 20% of their stocks to employees or to peasant-based cooperatives to spur equitable distribution of wealth and create in them a sense of belonging in these ventures. Cash infusion here and there can’t bring about real economic change unless it is followed by investments in human capital, resource mobilisation and creation of growth centres in the rural areas with subsidy to agro-based industries.
Reports say that cap making industry initiated by some enterprising women's group in a Kurigram village has immense potentiality that has attracted exporters. But capital shortage discourages the growth of many such small-scale industries. Banks should provide col-lateral-free loans to enterprising men and women, allowing grace period for paying back the loans. At the same time, government should set up sales-centres at village and district levels to help grass-roots entrepreneurs sell their products.
Good quality fruits are produced in huge quantity in many parts of the country. People in these areas now
see that planting, marketing and export of these agrobased products offers splendid prospects for themselves and the country. Large quantities of fresh fruits and vegetables are wasted every year owing to spoilage, absence of smooth road links with the city centres, and lack of processing and preservation facilities — especially during peak harvesting season. This calls for setting up of agro-based industries and cold storage facilities to prevent rotting, which in turn would create job opportunities for a vast number of unemployed young men and women.
To establish agro-based industries, we need to evolve appropriate technology to maintain purity and standard quality, and for clean and wholesome processing, preservation and canning. This calls for participation of big businesses and entrepreneurs for mobilising funds to help these growth centres develop throughout the country.
Grinding bureaucracy, rampant corruption and slow progress in project formulation as well as implementation and nagging delay in having electricity, water, and gas connection at the factory premises are disincentives for new entrepreneurs.
We need to speed up growth momentum in a wider section of the populace, which is the only option left to halt the migration of people to city areas. After all, people want to stay in the areas they have grown up in provided all facilities including employment generation, basic health care and education of the children are readily available there. The government must realise that the growth of consumer materialism which allows the principal cities and other urban centres to overlook the social ills can prove to be too costly for the whole country. At the same time, if cities are allowed to grow at the expense of the villages, the cost may be too high.
The writer Is a columnist of The Daily Star.
E-mail : aukhandk@gmall.com