Fostering inclusive development in Bangladesh: What needs to be done 

Today, Bangladesh aspires to build an equitable society, free of disparities, exploitation and exclusion. In order to realise that aspiration, the country intends to pursue the goal of inclusive development. 

Inclusive development is characterised by three dimensions: sustained and pro-poor growth; equity and equality; and people's participation and ownership.  

Sustained and pro-poor growth requires that poor and marginalised people actively engage in generating the growth, and derive more benefits from it, resulting in diminished income inequality between the rich and the poor. Equity from the perspective of inclusive development implies equity in resource availability, access to basic social services and income distribution and equality in rights, in rule of law, in opportunities. 

Participation means people taking part in the processes and in decisions that affect people's lives and ownership refers to ownership of development by the people. Measures for fostering inclusive development have to be concrete, tangible and pragmatic. 

Furthermore, the policy matrix for such a development must built on the mutual synergies of its various components, in which both policies and institutions are important. For pursuing inclusive development in Bangladesh, the following measures are critical along the three pillars of inclusive development—sustained and pro-poor growth; equity in resources, services and income distribution; and participation in and ownership of development by people. 

Policies for sustaining economic growth and making it pro-poor

The first pillar of inclusive development - sustained and pro-poor growth - encompasses two broader sets of policies. First, a macroeconomic framework promoting sustained growth, and second, making that growth pro-poor. 

A macroeconomic framework for sustained growth may pursue three interventions. One, scaling up public investment programmes in economic and social infrastructure through fiscal policies, and providing credit through monetary policies for such high-productivity sectors as manufacturing, export and agroindustry.  

Two, making investments in sectors which would result in long-term growth benefits and would minimize the pursuit of prestige projects. Three, supporting climate adaptation and promoting low-carbon development in Bangladesh to ensure sustainable natural resource management, which is a key aspect of sustained growth in the country. 

If development is to be inclusive, people should not remain as passive beneficiaries of development, rather they should actively participate in the development process. Such active participation would imply that people would have their voices in the development decisions that affect their lives. 

Making growth pro-poor should focus on five areas. 

One, is on productive, modern, innovative agriculture for employment, livelihoods, food security and poverty reduction and on the non-farm rural economy of Bangladesh by stimulating diversified activities through a comprehensive rural development policy. 

Two, pursuing employment-led growth, rather than growth-led employment, as the first strategy would make growth pro-poor if the employment focus is in sectors where poor people live and work. 

Three, Bangladesh should invest in expanding capabilities and opportunities for women and girls in terms of their access to health services and education, and in advancing their economic, legal and political empowerment. 

Access of women to safe infrastructure (eg roads), to more information technology, to productive assets such as land and credit, to water and electricity, which reduces their burden of domestic activities, are critical for their empowerment. 

Four, developing and implementing a solid, relevant and pragmatic social protection framework in Bangladesh, as it contributes to the reduction of poverty and inequality. Five, targeted interventions for marginal and vulnerable groups such as the elderly, persons with disabilities and people living on fragile lands. 

Ensuring equity in resources, access to basic social services and income redistribution

Policy interventions in ensuring equity in resources may cover three areas - first, an equitable distribution of land. Reform in land ownership is essential in Bangladesh for an equitable distribution of a major productive asset. Two, a pro-poor financial sector policy for systematic allocation of credit to the poor, the small-scale entrepreneurs and the informal sector producers.  Three, ensuring adequate, reliable and equitable access to clean energy. Equitable access to modern energy services, by making energy accessible to poor households to small-scale producers, ensures that the growth generated is inclusive. 

In order to make basic social services accessible to poor people three policy interventions may be useful. One, undertaking public investments in basic social service expansions in areas of health, education, safe water and basic sanitation. The public-private partnership is also important for service provisioning. 

Two, Bangladesh should develop a framework that makes these services sensitive to five 'A', crucial for poor people - availability, accessibility, affordability, adoptability and adaptability. Three, ensuring that the poor people get better quality services and they do not have to compromise on sub-standard services.  

An equitable income distribution requires three measures. One, is progressive income taxes for income redistribution. Two, subsidizing selected commodities, which carry a large weight in the expenditure of the poor people in Bangladesh. Such subsidies have the highest impact on addressing urban poverty. Three, building a broad political coalition in the country for effectively implementing a redistributive strategy. 

Participation in and ownership of development by people 

If development is to be inclusive, people should not remain as passive beneficiaries of development, rather they should actively participate in the development process. Such active participation would imply that people would have their voices in the development decisions that affect their lives. 

They shall have an opportunity to have their voices heard in the formulation of development programmes and projects. The local administration, for example, the Union and the Upazila-level administration in Bangladesh can provide such platforms. 

Second, people must also participate in terms of acting as watchdogs for development expenditures. This has two advantages. One, such vigilance by the people would enhance the transparency and accountability of development administration. Two, this would enable us to have a say if a development course change is needed.  

Third, people should take part in the monitoring and evaluation of development policies, programmes and projects. Through all these processes, development would be owned by people, without which the country's achievements would remain just as 'progress' and not 'development'.  

The goal of equitable development would not be realised without an inclusive development trajectory. In the ultimate analysis, development is of the people, for the people and by the people. 

Selim Jahan is the Former Director of the Human Development Report Office and Poverty Division, United Nations Development Programme, New York, US.