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Book Review Presentation

by
md. shamsul islam section-c roll-323

Chairperson: Md. Morshed Alom

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General Information of the book

Name of the book: Fighting poverty (The Development Employment Link), edited by Dr. Rizwanul Islam and published in 2006 by Viva Books Private Limited, India. Contents of the Book: Total 12 chapters in 3 parts. Part-1: Analytic Framework and Cross-Country Analysis, Part-2: Country Studies, Part-3: Conclusion. The Article Presented Herewith: Bangladesh: Linkages among Economic Growth, Employment, and Poverty by Rushidan Islam Rahman and K.M Nabiul Islam

About The Authors

The Editor of the Book Dr. Rizwanul Islam is the Director of the Employment Strategy Department of the ILO, Geneva.
The article Writers: Rushidan Islam Rahman is a Research Director and K.M. Nabiul Islam is a Research Fellow at the Bangladesh Institute of Development Studies (BIDS).

Main Theme of the Study

a case study done by the authors and sponsored by ILO. Objective of the study : to examine the linkage between poverty and employment to arrive at specific policy suggestions for poverty alleviation. the authors provide both conceptual framework and rich empirical

evidence to demonstrate precisely how employment can serve to link

growth with poverty reduction . performance of Bangladesh in reducing poverty through various data interpretation in terms of economic growth, employment and poverty is analyzed. Finally, the strategies of poverty reduction is suggested .

Figure 1: Virtuous circle of links between growth, employment and poverty reduction
Economic Growth

Increased Productive Capacity

Productive Capacity

Higher expenditure on health, education and skill development

Employment with rising productivity

Higher income of Poor People

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Economic growth-employment-poverty reduction linkages:

In the ultimate analysis, economic growth will contribute to higher employment and through higher employment to reduced poverty on the basis of three factors: The growth factor: The rate at which the production potential of the economy Expands. The elasticity factor: The extent to which an upward shift of the production possibility frontier enhances the employment potential the latter being defined as the scope for improving the quality and quantity of employment. The integrability factor: The extent to which the poor are able to integrate into economic processes so that, when growth occurs and the employment potential expands, they can take advantage of the greater scope for improving the quality and quantity of employment.
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Economic Growth and Performance of Bangladesh in Poverty Reduction

Despite higher economic growth rates, the rate of poverty reduction in the slowed down. Some observations relevant to the context are: First, the sectoral composition of employment in the country is not changing in a direction that could support a high rate of poverty reduction. Second, employment elasticity for the manufacturing sector as a

whole declined during the 1990s compared to the 1980s (0.69 for
1990-98 compared to 0.75 for the 1980s)

Economic Growth and Performance of Bangladesh in Poverty Reduction continues.

Third, higher output growth in agriculture during 1996-2000 (more

than 5 per cent per annum compared to 1.5 per cent during 199196) has not been translated into higher rate of poverty reduction in rural areas.

Fourth, the rate of real wage increase has been slower in

agriculture compared to other sectors. Fifth, inequality in income distribution has increased between 1991-92 and 2000 at the national level as well as for rural and urban areas separately.

Suggested Poverty alleviation policies for Bangladesh

Creating new jobs for the labour market entrants Improving productivity of existing jobs Positive agricultural growth Developing rural non-farm activities

By industrialization and locational dispersion

Generating employment for woman Creating regional diversification Institutional aspects of employment policies for poverty alleviation Disseminating of labour market information and recruitment channels.
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Success and Weakness of the book

A unique addition to its categories with highest sincerity, depth and excellences. Issues identified as the priority areas of future research: wage rates in agriculture in relation to economic growth. the link between education and poverty and the role of educated unemployment in the process of poverty accentuation. The strength of the book is its clarity, lucidity and information it conveys to the reader. Its main weakness is that the issues discussed in various headings sometimes overlapped and there are some repetition.
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Conclusion
The article covers a wide spectrum of development issues that are important to be examined in the context of Bangladesh. This paper deserves applause especially for its informative characteristics. . The article could be a guideline for those who are working to remove poverty in many parts of the world, development practitioners and policy makers.

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Thank You

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