Editorial
Bangladesh Bank stepping out of the box
Gets into rural development engineering
THE central bank cast in the traditional mould of being the bankers' bank, lender of the last resort, the powerhouse of money issue and monetary policy and the regulator of inflation and the banking system, always held an inherent potential for taking on a fuller development financing role. But there are growing signs now that it is coming out of the confines of agricultural credit operations and stepping into the realm of financing small and medium enterprises.
Bangladesh Bank has decided to go rural in a big way. It has a five-year strategic vision and plan for 2010-2014 for taking its services to the rural areas. Beginning with next year it will introduce 'one banking product in each upazila' to cater to the critical need for employment in the outlying areas.
Side by side with extending farm credit micro loans will be distributed at nominal interest rates to the landless, unemployed, marginal and vulnerable in rural communities. The purpose is extremely encouraging in that it seeks to create a new, large breed of small entrepreneurs. The scheme itself begins with a generation of jobs, let alone its avowed aim to create employment opportunity in large scale. For a 30,000-strong workforce is going to be commandeered to take loans at the door steps of the jobless.
Multiple benefits are to be derived from the strategic vision and plan which is being given a final shape after consultation with the finance and commerce ministries, Securities and Exchange Commission, Board of Investment, Economic Relations Division and various donor agencies and business bodies. When implemented, the massive undertaking will help alleviate poverty, increase employment, raise productivity, reduce dependence on import and above all create wealth in the rural nooks and crannies. Concomitantly and very importantly it will stem the tide of internal migration to the urban areas.
There is one final point which is that in order for the entire scheme to be successful it has to be linked to an overall plan envisaging a rapid growth of rural infrastructures.
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