Situation analysis

 despite significant financial growth over the years, Bangladesh has failed to reach the
expected landmark of development in different sectors
 female involvement in development process has dropped
 lack of job opportunity creation in proportion to GDP growth
 transformation of economic reliance from agriculture to industrial sector.
 lack of qualified teachers and proper planning causing our education sector to lag far
behind
 rapid and uncontrolled urbanization and massive income inequality creating an alarming
situation

Identified problems
 Decrease in Employment Elasticity
 Reduction in female employment
 discrimination in recruiting female employee
 women unemployment increased by 0.2 million between 2010-18
 lack of co-operation from the family for continuing jobs after marriage
 lack of moral support from the society for female entrepreneurs.
 locial insecurity preventing women from continuing their works outside
 Decrease of employment in agricultural industry
 rural people tending to move to cities due to rapid urbanization and growth
of industries.
 reduction in labor employment in agricultural sector due to application of
machineries.
 rack of support from the government for improved agricultural production.
  Transformation of labor intensive industries into capital intensive
ones
 modern machineries replacing the need of labor forces in different industrial
sections
 requirement of huge investment
 Lack of quality education
 imbalance in student-teacher ratio
 lack of qualified teachers and training facilities.
 outdated education system
 Huge income inequality
 pretty high Gini index (31.5 in 2010), though it was less than in 2000
 income share of the poorest 10% is 3.85 % compared to 26.92 % of the
richest 10%
 urban and rural poverty

Proposed policies

To enhance employment elasticity in agricultural industry government

should:
 enhance loan facilities in agriculture sector and encourage farmers to adopt
modern farming strategy
 encourage and train rural women in mushroom and capsicum cultivation to
create varieties in agro production
 allocate more funds in agricultural research
  employ experts in rural areas to encourage people in hybrid culture with more
profit
 maintain a balance between capital intensive and labor intensive industries as
employment has to be increased too
 specialized development program should be run where the youth should get
o training about scientific method of cultivating crops and cattle
o quality seeds, calf, chickens etc.
o help to build infrastructure of their own farm

I. Cost benefit analysis

Every cutting unit of a clothing factory requires
 at least 2 supervisor with salary between 40000-50000 taka/month
 10-12 operator whose salary range is 10-15k/month
And its production rate is 20-30k piece/day
Sector of spending Amount (taka)
Supervisor (2 persons) 1200000
Operator (10-15 persons) 1800000
Others 30000
Total 3030000

Sector of earning amount

Selling clothing 5475000

Total benefit=2445000
If we install a cutting machine (which will turn this into a capital intensive one) this unit will be able
to produce 80-100k piece/day,
Sector of spending Amount (taka)
Buying machine (depreciated cost) 160000
Supervisor (1 person) 600000
Operator (2 persons) 360000
 Electricity bills & Others 80000
Total 1200000

Sector of earning amount

Selling clothing 16425000

Total benefit=15225000

* machine life is expected to be 5 years

* around 40 taka profit is made from each cloth (t-shirt taken as sample)
* everything has been calculated for 1 year cycle and the value of cost and profit are approximate

From the amount of revenue made it can be easily said that for industrial competition,
capital intensity has to be adopted. Though this analysis is on garments sector, effect of adopting
capital intensity would be the same. It’ll boost up the production.

II. Effect of implementing capital intensive methods on different

development indicators:
 GDP: since the production rate will accelerate, GDP will increase
 GNP: increased production will also increase GNP
 PCI: PCI will increase too
 Employment elasticity: employment elasticity will go downward as many people will
become jobless
 Gini coefficient: an increase will be apparent on Gini coefficient as well
 Poverty rate at national and international poverty line: this indicator will increase
Adopting capital intensive methods at industries will introduce use of high tech machines which will
be able to do tasks which require lots of man power to do manually. As a consequence, many people
will lose their job and unemployment problem will be huge. In a country like ours where population
growth is huge, adopting capital intensive method completely will cause damage to socio-economic
structure. But to compete with the advancing world we need advanced technology and too much
labor intensity will increase production cost. So a balance should be maintained between capital and
labor intensive method.

 With a view to increasing women employment Government should:

 provide special loan facilities for women entrepreneurs
 conduct special development and internship programs for women to facilitate
their future careers.
 create maternity friendly workplaces for women to keep and breastfeed their
children.
 introduce special and secure transportation facilities for e.g. a special bus for
women named “Pronoya” can be introduced with enough security services in all
routes.
 increase the availability of loans for rural women to conduct small businesses.
 ensure implementation of laws against early marriage
 make a law for paying equal wages to men and women and ensure penalties for
its violation.

 To advance the educational sector in Bangladesh government should:

 increase number of stipends for poor and female students.
 increase quality and quantity of provided study materials like books and other
stuffs
 increase the minimum standard for literacy count (now just being able to read
and write)
 enroll skilled and experienced teachers and ensure their proper salary
 increase teachers training facility
 focus more on application and skill based education and create job facilities for
them to encourage students
 Affected Stakeholders:
 Education ministry
 Students
 Teachers
 School administration
 Parents
 Local business leaders
 Community members

To reduce income inequality, government should:

 train poor people to build an active labor force.
 increase minimum wage and pass wage bill for private sectors as well
 develop rural areas to stop people from cramming into cities.
 provide small loan to extremely poor families
 progressive tax system should be adopted
 take legal action against those who don’t pay taxes regularly
 prevent corruption strictly
 implement proper fiscal and monetary policies
Assisting medias:
 mass media
 facebook, youtube
 campaigns
 seminars and workshop