Give the poor a stake in infrastructure projects: Rehman Sobhan

Noted economist Rehman Sobhan yesterday called for giving an ownership stake to the poor and low-income families in income-generating public infrastructure projects and equity stakes for workers in garment sector.

Sobhan, also the chairman for the Centre for Policy Dialogue, recommended formation of collectives of small farm producers and auto rickshaw drivers to facilitate inclusive development of Bangladesh.

The ideas were shared at a dialogue on a Sobhan-authored book 'Challenging Injustice in South Asia: A Work Programme for Promoting Inclusive Development' at the Brac Centre Inn in Dhaka.

The Daily Star Books and the CPD jointly published the book in November last year, which is derived from a four-year study that the author had conducted on the theme 'Challenging the Injustice of Poverty: Agendas for Inclusive Development in South Asia'.

“The premise of our work argues that poverty originates in an unjust social order, which creates and reproduces it. Traditional agendas for poverty alleviation recognise the structural sources of poverty creation, but address those issues inadequately,” said Sobhan in a brief on the book.

The original research sought to identify the structural sources of poverty, while the latest one covers a more limited canvas of the work in question and focuses on unequal access to assets, inequitable participation in the market, inequitable access to human development and unjust governance.

Sobhan came up with recommendations in six broad areas to promote inclusive development in Bangladesh, which includes agrarian reform and distribution of khas land to landless farmers.

“This is a low hanging fruit,” he said.

To enhance the market power of the small and the excluded, he suggested formation of projects across Bangladesh based on the model of the Anand Milk Union Ltd (Amul) in India.

“You need to address the sources of market injustice,” he said.

Citing inequitable access to human development, he said huge disparity remains in health and education.

“Society is being divided by the quality education. Quality education is available only to elites.”

The CPD chairman recommended setting up a national commission to enquire about the governance of state and private schools, allegations of rent-seeking for employment, leaking of question papers and keeping reserved seats for underprivileged children in elite public and private schools, including the cadet colleges.

He called for establishing a dedicated mutual fund for low-income investors, providing an equity stake for workers in the garment sector and forming a service exporting corporate enterprise under the ownership of migrant workers.

AB Mirza Azizul Islam, a former adviser to a caretaker government, said traditional cooperatives did not function properly. Cooperatives of small industries could be important for empowerment of the poor, he added. Prime Minister's Economic Affairs Adviser Mashiur Rahman said India's Amul has been a success but the cooperative of sugarcane farmers in Gujrat was not successful.

“It is important to see the major reasons behind the success of Amul,” he said.

The minimum wage for apparel workers had been fixed at a certain level for several years, which contributed to the sector's success, said Selim Raihan, a professor of economics at the Dhaka University.

“The minimum wage is below the lower poverty line income,” he added.

MM Akash, also a professor of economics at the DU, said income inequality is less acute than wealth inequality.

Subsequently, he suggested increased investment in education and health to boost labour income.

Land reform is necessary to make rural power structure pro-poor, said Mujahidul Islam Selim, president of the Communist Party of Bangladesh.

Democracy and good governance are important to promote inclusive development, said Zafrullah Chowhudry, founder of the Gonoshasthaya Kendra.

“Public service management system is archaic and nobody gets a chance to acquire expertise and work because of transfer,” said Manzoor Ahmed, emeritus professor of BRAC University.

The education policy was framed in 2010 and yet no serious effort has been made to implement it, he added.

Salehuddin Ahmed, a former governor of the Bangladesh Bank, stressed policy continuity.

Atiqur Rahman, ex-lead strategist at the International Fund for Agricultural Development, and Nazneen Ahmed, senior research fellow of the Bangladesh Institute of Development Studies, also spoke.

Prof Mustafizur Rahman, a distinguished fellow of the CPD, also spoke.