Bangladesh's rural transformation fast

Bangladesh had fast rural transformation but showed slower rural poverty reduction compared to other countries, which might be related to its slow structural transformation, says a report.

As with the structural transformation, the speed of rural transformation is also positively correlated with the extent of poverty reduction.

The International Fund for Agricultural Development (IFAD) launched the report yesterday.

Governments need targeted policies and investments that focus on sustainable agricultural development, raise wages and create off-farm jobs in rural areas, added the report.

Bangladesh and Myanmar have become lower middle-income countries, while Mongolia is an upper middle-income country.

Afghanistan, Cambodia and Nepal are still low-income economies.

"The rapid economic growth in the region has come at a cost. Urbanisation has led to a wide income gap between rural and urban areas. In a number of countries malnutrition remains an area of great concern, while agricultural production has weighed heavily on existing natural resources," said IFAD Associate Vice-President Perin Saint Ange.