Honorable Dr. Karim Mr. Bhuiyan, Mr. Aziz Friends, Ladies and Gentlemen Good Morning Background: The approval and project launch of the National Agricultural Technology Project has come at a time when Bangladesh experienced two serious natural disasters (floods and cyclone SIDR of 2007), falling global foodgrain stocks and rising foodgrain prices globally as well as in Bangladesh. In other words, after several years of benign neglect of the agricultural sector, the food security issue has taken a center stage in the national as well as global dialogue on security, stability and development. Role of Agriculture: Agriculture sector in Bangladesh accounts for about 22% of the gross domestic product (GDP) and another 33% of GDP is contributed by the rural non-farm economy, which is also linked to agriculture. Thus, agriculture and rural non-farm economy are the main sources of livelihood for rural people. Despite substantial progress in overall poverty reduction, about half of the population still lives below the poverty line. With almost 85 out of 100 poor people living in the rural areas, poverty in Bangladesh is largely a rural phenomena. Improved economic performance of the agriculture and the rural non-farm sectors is, therefore, critical to reducing poverty. Progress in agriculture, which was led by market reforms, high yielding varieties, fertilizer use, assured irrigation through shallow tubewells and boro season rice, was also responsible for near self-sufficiency in rice production which was considered only a distant dream in early 1970s. Agricultural Development Challenges: Agriculture in Bangladesh is characterized by small farm size and rice-dominated farming system. Approximately, 80% of the farm households are classified as small (between 0.02 and 1.0 ha, with an average farm size of 0.35 ha) and they account for about 40 of the agricultural land area. The productivity of rice and other crops remains low and there are large yield gaps between farmers’ fields and research trails. Same is true for other commodities such as fisheries and livestock. Over the last three decades, there has been a significant increase in the production of rice to achieve near self-sufficiency in foodgrain. However, this could be threatened in the future due to increasing population, declining land base and stagnating yields. Diversification of agricultural production systems to high value commodities is slow with limited post-harvest value addition. The private sector makes limited contribution to agricultural research and its investment in agro-processing is a nascent activity. Public Investment in Agriculture Research: The share of total expenditure on agricultural research in Bangladesh is not only very small by international standards but has declined from 0.29% of agricultural GDP in 1997/98 to 0.22 in 2004/05. However, since then there is slight improvement. Agricultural research expenditure is about 0.62% of agricultural GDP in developing countries as a group and 2.80% in developed countries as a group. Given the importance of agricultural sector to overall economic growth in Bangladesh, it is important that the public investment in agricultural research increases consistently and sustainably in relation to the growth of the agricultural sector. In this context, a level of 2% of agricultural GDP has often been mentioned as a desirable target for the developing countries. Increased investment in agricultural research is particularly important for Bangladesh, where agricultural land is shrinking. The most likely source of agricultural growth is the technology-driven increase in agricultural productivity. In this context, we are very pleased that GOB is at the final stages of establishing an Endowment Fund (equivalent to US$50 million) to ensure stable and sustainable financing of agricultural research through the Competitive Grants Programs. Given its importance, it is critical that the Endowment Fund is registered and funds are transferred to the Endowment Fund before this fiscal year is over. The National Agricultural Technology Project: The National Agricultural Technology Project is designed to address many of these agricultural development challenges. In particular, the project is designed to revitalize the agricultural technology system (agricultural research and extension) and thereby improve productivity of crops, livestock and fisheries. Since rice is a staple crop and focus of this project, it is also expected to improve food security in Bangladesh. However, this will not happen unless the project is implemented effectively and on time. There have already been delays for putting in place the institutional arrangements necessary to implement this project. In this respect, it is important that 1. The proposed amendments to the BARC Act 1996 are approved by the Cabinet immediately in order to improve the governance, service rules and incentives for the national agricultural research system in Bangladesh; and 2. A regular Project Director (PD) is appointed and the Project Coordination Unit (PCU) is made operational without further delays. On our part, the World Bank is ready to work with all the counterpart agencies of the government so that implementation of this project is put on fast track to achieve the results on the ground. We are very supportive of Government’s desire to fast track the “technology demonstration program” for the Aman-2008 and Boro-2009 seasons. We are ready to work closely with the Ministry of Agriculture and its agencies (Bangladesh Agricultural Research Council, Bangladesh Rice Research Institute, and the Department of Agricultural Extension) and support the design and implementation of this program in 120 Upazilas in Bangladesh. This will not only fast track the adoption of “rice technology and integrated package of best practices” approach but will also improve food security in Bangladesh, particularly in the context of declining land base and growing population. Thank you very much. |
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