S Korean firm wants to invest $235m in rural development

South Korea is keen to invest about 235 million US dollars in Bangladesh for the improvement of villages and rural infrastructure development which includes dam and embankment construction, irrigation and farm mechanisation in two districts of Bangladesh, implemented through a loan at 2-3 percent interest.

Former South Korean minister and South Korea Rural Community Corporation CEO Dr Sang Mu Lee said about 35 million US dollars would be spent as grant for the improvement of the villages of Thakurgaon and Moulvibazar.

Dr Sang said this while talking to journalists during a symposium on Comparative Analysis of South Korean and Bangladesh Rural Development Experiences organised by Pollibir Unnayan Sangstha at the Brac Centre for Development Management in Savar.

In the symposium, experts discussed viability of applying Saemaul Undong Movement (SUM), a community-driven rural development programme launched by the late president of South Korea Park Chung-hee in 1970, in Bangladesh for similar types of developments.

Speakers said Bangladesh has made significant progress in reducing hunger and poverty, increasing food security, expansion of rural education and primary health, but concerns for food security, poverty and inadequate rural development still loom large.

Prof Byung Ki Lee of Hyupsung University said people of South Korea, whose per capita income in 1961 was $91, enjoy one of the highest living standards in Asia since South Korea has given a lot of focus in developing its industrial sector, which created an export-led growth.

Originating as a village modernisation program, SUM's initial activity was to provide the villages with materials to mobilise village self-help projects which later spread throughout the country, he added.

Professor Emeritus of Konkuk University of South Korea Jung Joo Kim in his presentation showed the applicability of SUM in Bangladesh.

The project is expected to start in 2018.

"Rural development should be more cross-sectoral and multi-occupational and aim for increasing productivity," said Kazi Ali Taufique, research director of Bangladesh Institute of Development Studies.

Bangladesh has also achieved many successes in rural development, said general economics division (GED) member Prof Shamsul Alam. SUM can boost development but the model needs to be redesigned because of the socio-cultural differences between the both countries, he opined.