The Transformation of Bangladesh's Agriculture

Abstract

This paper analyses the evolution of the role of the agricultural sector in Bangladesh in recent decades in the context of similar roles performed by the sector both in the historical and contemporary cases of development. It demonstrates that the quality of economic growth, in terms of both egalitarianism and efficiency, has been strongly reflected in the type of agricultural evolution experienced. The paper argues that in one respect, namely bringing about a rapid decline in agriculture’s share of GDP despite decent agricultural growth, Bangladesh has achieved significant success; but it has failed to bring about a corresponding decline in the proportion of the labour force employed in, or eking out a living from agriculture. The result has been a widening in the disparity of living standard between those deriving livelihood from agriculture and those deriving livelihood from non-agricultural activities. The paper explores the issue with the help of the Labour Force Survey data, which unambiguously point to a failure in bringing about the so-called Lewis transition – the beginning of an absolute decline in employment in agriculture but shows that, even after taking into account the alternative findings of Mahabub Hossain’s research based on microeconomic data, it cannot be argued that the possible decline in employment in agriculture has been sufficiently rapid to warrant a decline in disparity between agricultural and non-agricultural living standards. The paper concludes by outlining the needed reform and public action that would contribute to a more desirable pattern of agricultural transformation.