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5 Year Plan

In: Business and Management

Submitted By Jashim258
Words 17152
Pages 69
Introduction
Five-year plans are financed through the development, or capital budget, which was separate from the government's revenue, or administrative, budget. After the independence of Bangladesh, it was widely believed that once reconstruction tasks were over, the domestic economy would provide most of the resources needed for development. This view was mistaken because systematic drainage of Bangladesh’s resources during the British and Pakistani colonial regimes, which had left it with a deficit in food grain availability. Low levels of internal savings and a high population living below poverty line were evident: what in other words could be called a state of chronic external dependence. The country has followed the course of planned development since 1973. In a medium term framework, the First Five Year Plan was launched in July 1973. This was followed by a Two Year Plan (1978-80) in the background of world-wide inflation and uncertainties. In 1980, the five year plan framework was reinstated and since then three five year plans were implemented in succession. There was no development plan during 1995-97 after the expiry of the Fourth Plan (1990-95). Every plan targeted at an average annual GDP growth rate of above 5 per cent but achieved about 4 per cent. In spite of large inflow of foreign assistance to augment meager domestic resources, the planned effort for development has not been able to free the economy from the low growth trap. Almost half of the population of Bangladesh still continues to eke out an existence below poverty line with very little access to the basic amenities of life. Every Plan targeted for an average annual growth rate of above 5 percent. Despite a large flow of foreign assistance, the planned effort has not been able to get away from the low growth trap as half the population of Bangladesh still continues to live below poverty line.

Origin of the Study
This report is a complementary part of the course ‘Islamic Economics and Banking’ assigned by the honorable course teacher. This report will be immensely helpful to gain practical knowledge regarding the six five year plans of Bangladesh planned by planning division.

Objective of the Study
To review and analyze (5) five- year plans of Bangladesh since 1973 Methodology
It is required to use various methods to prepare a report. We also use various techniques to this purpose. The report report mainly covers the six five year plans of Bangladesh which was initiated in 1973. We collect data regarding six five year plan using website, economic review of Bangladesh & from various sources directly related to the report. We also use various table, graph to analyze data. We mainly collect data from secondary sources that publish various reports regarding six five year plan. Scope of the study
This report mainly covers the six five year plans of Bangladesh planned by planning division. The six five year plan was introduced in the year 1973 to boost economic development of Bangladesh. But due to the lackings of many factors the target is not properly implemented. This report mainly focuses on the barrier of the plan and some suggestion to achieve this target.

Limitations of the study * Data insufficiency * Time constrain
FIRST FIVE-YEAR PLAN (1973-78)

Introduction
The First Five Year Plan (1973-1978) formulated by the first Planning Commission of Bangladesh assumed a mixed economy in a state of transition to a fully socialist system. The First Five Year Plan was launched in July 1973. The First Plan (1973-1978) was, in the words of the then Prime Minister Bangabandhu Sheikh Mujibur Rahman, "a plan for reconstruction and development of the economy taking into account the inescapable political, social and economic realities of Bangladesh." Recognizing the weaknesses of the Bangladesh economy as a litany of undiversified poor inheritance, characterized by an underdeveloped infra-structure, stagnant agriculture, a rapidly growing population, years of colonial exploitation and missed opportunities with debilitating effects on initiative and enterprise, the Plan spoke of its "vast manpower" as "the basic resource in Bangladesh" and, therefore prescribed that "projects and programmes must be so formulated as to make its maximum use within the constraints of technology and socio-political institutions". The planners also took cognizance of the fact that progress in technological frontier like socio-political transformation, is a sine qua non if we are to overcome the limits placed by our material resource constraints. For the first five year plan total outlay was projected Tk. 44.55 billion. The allocation for the public sector was Tk. 39.52 billion (88.70%) while that for the private sector was Tk. 5.03 billion (11.30%).
Table: Financing of First Plan Outlay
(In billion Taka) Items | Total | Share (%) | Public | Share (%) | Private | Share (%) | Plan Size | 44.55 | 100.00 | 39.52 | 100.00 | 5.03 | 100.00 | Domestic Resource | 26.98 | 60 | 22.45 | 57 | 4.53 | 90 | External Resource | 17.57 | 40 | 17.07 | 43 | 0.50 | 10 |

Main Objective of the First Five-Year Plan
After the independence of Bangladesh, in 1973 the first planning commission of Bangladesh launched first five-year plan to alleviate extreme poverty as well as establish socialistic economic structure in Bangladesh. The main goal and objective of the First Five Year plan of Bangladesh is discussed in the below: 1. The main objective of First Five Plan‟s of Bangladesh is to” Alleviate Poverty”. Equal distribution of income and expenditure, creating employment opportunity as early as possible and increasing of national income in a rational way to reduce the poverty. 2. Gross National Product will increase 5.5% yearly. If the plan becomes successful, gross national product will increase 30%. 3. Per capita income will increase at least 2.5% yearly. In national income distribution policy, the scope of increasing per capote income of poor people will be enhanced whether the scope of increasing per capote income of rich people will be reduced. 4. Another important objective of the plan is to creating employment opportunity and solving unemployment problem. Within the planning period, 41 lakh people will be able to get job. 5. Another objective of the plan is to stabilize the price level of the product and to reduce the price level of the daily-necessaries as much as possible. 6. In export both prevalent and antiquated products export will be increased. By changing production structure, encouragement will be provided to increase export. 7. Achieving self-sufficiency in food production and sealing food importation. 8. Dependency on foreign aid will be reduced through the best usage of internal resources and increased self-sufficiency. 9. Specific program me will be adopted for reducing population. Population control rate will be reduced from the yearly from the yearly 3% to 2.8%. 10. Deficit will be replaced through the development of neglected social and human resources by providing education, health, rural development, house-building and so on. 11. 11. It will be insured that income and employment opportunity will be distributed and extended equally all of the areas of the country. 12. 12. In the planning period the steps that have been taken earlier to establish socialistic economic structure in Bangladesh will be strengthen.

Strategy of the Plan

Different strategies have been taken to accomplish the objective of the First Five Year Plan of Bangladesh. These are:

1. Total Tk. 4,455 crore will be spent in First Five Year Plan of Bangladesh. In this plan, more emphasis has been given in internal resources. 60% of the total expenditure will be collected from internal resources.

2. In this plan, dependency on foreign aid has been reduced. In the planning period, total amount of foreign aid has been estimated as Tk. 1,757 crore and this is 40% of the total expenditure.

3. In First Five Year Plan, more emphasis has been assigned on government sector. From the total allocated amount, Tk. 3,952 crore has been billed in government sector. This is 88.7% of total allocated amount. On the other hand only Tk. 503 crore has been allocated in public sector. It indicates, 11.3% has been billed in public sector.

4. In First Five Year Plan most importance has been given to Agriculture, Flood control and Irrigation. Tk. 1067 crore has been allocated in Agriculture and Flood control sector which is 24% of total expenditure. 5. After Agriculture sector, Industrial sector has been given importance. Total Tk. 877 crore has been allocated in industrial sector. This amount is 19.7% of total expenditure.

6. The strategy adopted in the First Plan was to concentrate energy and efforts on those fields of research whose results could lead to produce quick returns in products and services. The First Plan allocation in the science and technology sector was Tk.2326 crore which was 0.58 per cent of the total plan outlay of Tk.39, 8400 crore. 7. 7. The formulation of planning for development of manpower and improving welfare of the labour was laid in the First Plan. Besides completing rehabilitation and reconstruction work following the War of Liberation, 7 new technical training centres and 12 vocational training institutes were set-up during the First Plan and the Two Year Plan. 8. 8. At last, in this plan, necessary steps have been taken to achieve the objective of the socialism.

Financing of the First Five-Year Plan
Financing is necessary for spending the money on the proposed sector. It also has been finalized on which way the money will be collected. Total Tk. 4455 crore has been allocated on the first five year plan of Bangladesh on which Tk. 3952 crore has been allocated on government sector and Tk. 503 Crore has been allocated on private sector. This amount of money will be collected from two sources: internal source and external sources. Tk. 2698 crore will be financed from internal source which is 60% of the total expenditure. 40% or Tk. 1757 crore will be financed from foreign source.

A. Internal Sources
1. Surplus Revenue: In First Five-year plan Tk. 537 crore is financed from surplus revenue.
2. Additional Taxes: In First Five-year plan Tk. 625 crore is financed through the imposition of additional taxes.
3. Net Capital Income: In First Five-year plan Tk. 350 crore is targeted to collect through the financing of net capital income. 4. Public Saving: Tk. 720 crore is targeted to finance from public saving. 5. Deficit expenditure: In First Five-year plan, it is managed to collect Tk.360 crore from deficit expenditure.

B. External Sources
In under developed countries, foreign aid and loan is an important source of financing. In First Five-year plan of Bangladesh Tk. 1,757 crore is targeted to collect from foreign aid and loan.

Sectoral Achievement
In the real sense, the First Five Year Plan of Bangladesh has failed to reach most of its objectives but it has some achievement also. The achievements are given below on sector basis. 1. Agricultural Sector: Agriculture was given the utmost priorities in the first five-year plan. Achieving self-sufficiency in food production was the main target. A total amount of 1,067 crore taka was allocated for agriculture. But it failed to hit the target in terms of agriculture. Agricultural production growth rate increased at 3.7%. Sugar production exceeded the target and it reached to 105%. Electricity production increased at 47%.

2. Industrial Sector: Industrial sector was given extreme importance in the first plan. But the industrial performance was quite disappointing in the second plan. Industrial production growth increased at 0.3%. Manufacture sector‟s share in GDP in 1972-1973 was 9% and annual compound growth rate during the plan period was 7.35%.

3. Energy Sector: By the end of 1972-73, a rehabilitation and development programme was undertaken in the First Five Year Plan (1973-78). As a result, at the terminal year of the plan period, installed generation capacity increased to 752MW from 545 MW, while the peak demand rose to 396 MW from 222 MW. 4. Communication and Transportation Sector: The total allocation in this sector was 5276.10 million taka for rehabilitation and reconstruction of damaged communication system. The country entered into satellite communication after installation of a standard "A" Earth station at Betbunia, Chittagong in 1975. 5. 5. Family Planning: An important objective of the plan was to reduce population growth rate from 3% to 2.8%. After completing of the plan, the target achieved successfully. 6. Health & Social Welfare: During the First Plan (1973-78), an attempt was made to give due emphasis on the role of social welfare sector in the overall socio-economic development of the country with some programmes for the benefit of those who were unable to find a place for themselves in the society. Against the proposed total outlay of Tk.122.80 million for both on-going and new programmes in the social sector during the Plan period almost all the amount was fully utilised. 7. Employment: It was estimated that 41 lakh new employment opportunities would be created within the planning period but the expected investment was not happened. So 30 lakh or 3 million people got new job within the planning period. 8. Science and Technology: The strategy adopted in the First Plan was to concentrate energy and efforts on those fields of research whose results could lead to produce quick returns in products and services. The First Plan allocation in the science and technology sector was Tk.232.60 million which was 0.58 per cent of the total plan outlay of Tk.39, 840.00 million.
During this period BCSIR patented 103 processes/products based on the results achieved through research. A total of 26 industrial processes were ready for being leased out and 29 research processes were awaiting pilot plant experimentation, having proved successful in bench-scale research.

9. Sports and Culture: The First Plan laid the foundation for development of essential elements of physical education. During the Plan period development projects were undertaken mostly for repair and renovation of existing sports facilities to make them functional and creation of new physical facilities in the country. In this Plan period the incomplete work of National Stadium-1 in Dhaka with installation of flood light, construction works of Women Sports Complex in Dhaka, Mohammed Ali Boxing Stadium, Volley Ball Stadium and Basket Ball gymnasium attached to National Stadium-1 were taken up

Criticism of the First Five-Year Plan
The First Five Year Plan of Bangladesh has been finished on June 30, 1978 but if we critically discuss the activities of the plan, we find that, First Five Year Plan of Bangladesh has failed to reach most of its objectives. Here we present an evaluation of the Achievement and Failures of the First Five Year Plan of Bangladesh.

1. Financial Targets: In the First Five Year Plan From the total allocated amount, Tk. 3,952 crore has been billed in government sector and Tk. 503 crore has been allocated in public sector but after completion of the plan, it is found that Tk. 3,006 crore has been spent on government sector. That indicates 81% achievement on government sector on the other hand only 49.11% achievements on private sector. 2. Growth of GDP: In the First Five Year Plan yearly GDP (Gross Domestic Product) growth rate was targeted 5.5% but after completing of the plan Gross Domestic Product growth rate achieved as 4%. 3. Per Capita Income: Per capita income was targeted to increase 2.5% yearly but after completing of the plan per capita income increased at 1.1%. 4. Production targets: In the First Five Year Plan of Bangladesh government failed to increase the production of different type of products that were targeted. Agricultural production growth rate was set to achieve 4.6% annually but at last it has been increased only at 3.7%. At the same, industrial production growth increased 0.3% instead of 7.1%.So only sugar production exceeded the target but in the area of production of other product, the plan failed to reach the goal. 5. Savings: Savings target was not achieved. It was expected that, in 1973-74, 4.3% of GNP (Gross National Product) would be saved, and the last year of the plan or in 1977-78 savings would be reached 14.2% of GNP but it is found that in 1973-74 savings was 2.5% of GNP and in 1977-78 it reached only at 3.1%. So savings target was not achieved. 6. Self-sufficiency: One of the most important objectives of the First Five Year Plan of Bangladesh was to acquire self-sufficiency in food production but in reality, it was not achieved. On the other hand dependency on foreign aid is still going on. In 1977-78, it was supposed to produce 154.00 lakh ton of Food Grain (Rice & Wheat) but only 132.00 lakh ton was produced. In the planning period, annually 17 lakh ton crops were imported. So, self-sufficiency in food production was not achieved. 7. 7. Employment: The first plan took a project for increasing the employment. After the planning period, we found that it would not achieve its goal because of insufficient investment. No incentive was given for private investment. as a result, it achieved only 75% of the target mark. 8. Inequality in Income Distribution: An important objective of the First Five Year Plan was to reduce inequality in income distribution but it was increased as a result of sloth economic growth. In rural area, it has been increased so far. Land ownership has been centralized on few hands. So, target to reduce inequality was not achieved. 9. Price Level: One of the most important objectives of the First Five Year Plan of Bangladesh was to resist the price hiking. Price level was reduced in last period of 1975 but price level as well as living expense expenditure increased in the last part of the plan . It is found that after completing of the plan, most of the consumer goods price has been increased except crops. 10. Import & Export: The target is also not achieved in the arena of import and export. It was estimated that $7969 million product would be imported but actually $ 6246 million were imported. That means the target was not achieved. So only 78% target is achieved. On the other hand, it was targeted to export $4575 million products but finally $2594 million products were exported. So we find that only 57% target achieved in export. 11. Family Planning: An important objective of the plan was to reduce population growth rate from 3% to 2.8%. After completing of the plan, the target achieved successfully. 12. Dependence on Foreign Aid: The completion of First Five Year Plan was far behind from its objective to reduce dependence on foreign aid and it was the most disparage arena of the objectives. In the beginning of the plan , vis-à-vis; in 1973-74 dependence on foreign aid was 62% and it was expected that after completing of the plan would be 27% but in reality , it increased to 77% , So dependence on foreign aid was not reduced father than increased Items | Plan Size | Share (%) | Public | 111.00 | 64.50 | Private | 61.00 | 35.50 | Total | 172.00 | 100.00 |

Table: Financing of Second Plan Outlay

SECOND FIVE-YEAR PLAN (1981-85)

Introduction
The second Five Year Plan (1980-85) indicated major changes in the development orientation of the government. The Plan was prepared against the background to adjusting to changes in the balance of payments situation following an increase in the oil price in the early seventies. But by the time the Plan was launched the international aid and trade situation received a significant jolt and it shifted very adversely against Bangladesh. The second five year was launched in July 1, 1980 and the terminal year would be June 30, 1985. The projected plan outlay was Tk. 255.95 billion while allocation for the government sector was Tk. 201.25 billion and for the private sector was Tk. 547 billion. But because of not satisfactory increasing of domestic resources and reduction of foreign aid the second five year total plan size was reformatted. After revising the plan, the total allocation was Tk. 172 billion while allocation for the public sector was Tk.111 billion and for the private sector was Tk. 61 billion. Among the total allocation for the public sector was 64.5% while for the private sector was 35.5%. The share of the private sector was kept higher than that in the First Plan (11.30%) . for the first time the economic growth target was estimated at 7.2% but after revised it was reduced at 5.4%.

Objective of the Second Five-Year Plan
The second five-year plan was focused on the overwhelming problems of poverty, illiteracy, unemployment and under-employment. To overcome these problems the economic developers set some objectives in the second five-year plan. The objectives of the second five-year plan are written down in the below: 1. To bring about a significant development in the living standard of common people by ensuring the supply of commodities which fulfill the basic requirements. 2. To ensure the participation of the common people in the development program through the activities of local organizations in developing the living standard of rural people. 3. To increase the GDP annually by 5.4%. 4. To increase the per head national income by 3.5%. 5. Achieving a growth in agricultural sector by 5% and in industrial sector by 8.4%. 6. Achieving self-dependence in food production in the lowest possible time by increasing the food production at least to 1 crore 75 lacs by 1984-85. 7. Giving much importance in internal savings it was targeted that the national savings will be increased up to 7.1% by 1984-85. 8. To employ a large number of people by establishing industries in the rural areas. 9. To decrease the dependence on foreign trade by 61% by 1984-85. 10. The highest priority will be given in eradicating illiteracy and spreading primary education. 11. The family planning activities will b emphasized more and the population growth rate will be decreased to 1.5% from the previous 2.8%. 12. The priority will be given in on the development of irrigation system specially irrigation through pump and tube well.

Strategy of the Plan
The main focus of the Plan was on the reduction of poverty through growth of income and employment by adopting poverty-oriented strategies in the development of the rural sector, especially, where the vast majority of the poor live. All other strategies were to be built around this principle. Strategies for Participatory Planning during Second Plan are: 1. The emphasis was given to proper utilization of internal wealth. Importance was also given to reduce over dependence on foreign aid. 2. It was realized in the Second Planning that 80% of our population live under the poverty line; 3. 30% of the people suffer from malnutrition; 60% of the eligible people suffer from unemployment; more than 50% of the farmers are landless;80% of the people are illiterate. 4. At the backdrop of this disappointing scenario, it was declared to achieve significant success. 5. In food production, education, health care and population control. It was decided to invest 25,125 crore taka to ensure a growth of 5.4% each year. Priorities were given to agricultural sector development, increasing food production and irrigation work. 6. Then significance was given to industrial sector after the agricultural sector. It was planned to employ a large number of people by establishing industries in the rural areas. 7. Importance was also given to family planning strategy was to reduce the growth of population to 1.5 from the previous 2.8. 8. Proactive plans were formulized to improve the living standards of common people both in urban and rural areas. 9. At last it can be said that necessary steps were taken in this plan to recover from the failure of the first five year plan.

Sectoral Allocation of the Plan
Reformable Second five year plan‟s total financial outlay was Tk. 172 billion while allocation for the public sector was Tk.111 billion and for the private sector was Tk. 61 billion. Sectoral allocation of Second Five-Year Plan of Bangladesh, 1980-1985 Sectoral Achievement of the Plan
The Second Five Year Plan of Bangladesh has failed to reach most of its objectives but it has some achievement also. The achievements are given below on sector basis: 1. Agricultural Sector: Agriculture was given the utmost priorities in the first five-year plan. It was given tremendous importance in the second five year plan also. Achieving self-sufficiency in food production was the main target. A total amount of 1470 crore taka was allocated for agriculture. But the second five year plan failed to hit the target in terms of agriculture. The agricultural production increased only by 3.6% where the target in the plan was to increase it by 5%. In reality, the second five year plan failed to achieve self sufficiency in food production The dependence on foreign food product continued to be a fact after the plan period. The production of jute was only 46 lac bell where it was supposed to be 60 lac bell according to the plan. At the end of the tenure the overall production was 1 crore 58 lac ton which was 17 lac ton less than the target So in all respects the plan was a failure in achieving self sufficiency in food production. 2. Industrial Sector: Industrial sector was given extreme importance in the second plan. But the industrial performance was quite disappointing in the second plan. 3. Energy Sector: To reduce the gap between demand and generation capacity, the Second Plan (1980-85) undertook a rapid expansion programme. The most important achievement during this period was the construction of the East-West electrical inter-connector which enabled the transfer of gas-based low cost power from the east to the west. Five power generation plants having a total installed capacity of 330 MW were completed during this period. 4. Communication and Transportation Sector: The total allocation in this sector was 1524 crore taka. Among them the Transportation Sector was allotted 1287 crore taka and Communication Sector was allotted 237 crore taka. In 1973/74, there were 60,000 telephones operating in the country (6,000 in rural areas and 54,000 in urban areas).The number of telephones increased to 120,000 lines in 1979/80 (10,600 rural and 109,400 urban) and to 182,000 lines in 1984/85 (26,600 rural and 155,400 urban). The telephone density of the country was 0.13 per 100 population in 1979/80 and it increased to 0.18 in 1984/85. 5. Housing and Physical Planning: Total allocation in this sector was 574 crore taka. It can‟t be denied that much was done to develop this sector. But it was not the overall fulfillment of the target according to plan. 6. Education and Human Development: A significant amount was allocated for education and human development in the first plan .A total of 470 crore taka was allotted in this sector in place of previous 36 crore taka. But the plan failed to achieve the targeted goal in thisc sector. The Second Five-Year Plan (1980-85) attached high priority to eradication of mass illiteracy. A Mass Education Programme (MEP) was implemented in 1980 for people of the 11- 45 years age group. But the programme was abandoned in 1982, when its achievement in terms of the number of people made literate was an estimated 700,000 against a target of 10 million. 7. Family Planning: The target of first plan was to reduce the growth of population to 1.5% from the previous 2.8%. According to the Planning Commission, it was possible to reduce it to 2.4% after the plan period. 8. Science and Technology: The total allocation of the Second Plan was Tk. 1,11,000 million while allocation for STR was Tk.1,290 million which was 1.16 per cent of the total. The Bangladesh Atomic Energy Commission (BAEC)'s programme during this period included: research on nuclear technology; application of nuclear science in agriculture; health services and exploration of nuclear minerals and development of materials from beach sand at Cox's Bazar. 9. Sports and Culture: During the Second Plan some measures were adopted for qualitative improvement as well as for quantitative expansion. During this period 14 gymnasium-cum-coaching centres at district headquarters and a National Tennis Complex at Dhaka were built. In addition 33 sub-divisional stadia were made functional in this Plan. Construction of stadia at Chittagong, Rajshahi and Khulna divisional headquarters and Bangladesh Krira Shikkha Protisthan (BKSP) were started during the Plan period. So it can be said though the sectoral allotments to different sectors were noteworthy and significant but sectoral achievements in these sectors were not a fullest success. But we have to remember that it is virtually impossible to achieve every goal but the efforts should be given to achieve as much as possible.

Critical Appraisal of the Plan
The second development planning terminated at 30 June of 1985.But if we evaluate it, we will see this plan has not been proved a success in fulfilling most of the objectives. The evaluation of the success and failure of the second five-year plan is stated below:

Financial Targets:
It was estimated cost at public sector was 17,200 crore taka and at the private sector was 11,100 crore taka. So altogether it was targeted to have a cost of 6,100 crore taka. But after the plan period it was seen that the expenditure of the Public and private sector was 10,330 crore and 4,961 crore taka respectively. So the targets at public sector were achieved by 93.1% and 81.5% at the private sector respectively. So the financial targets were not achieved by the second development plan.

Growth of GDP:
At the Second Development plan the GDP growth rate was targeted to increase by 5.6% annually. But after the plan it has been seen that the GDP has increased only by 3.5%.
Production Targets:
This plan failed to hit the target of production of various goods. Especially the second five year plan failed to hit the target in terms of food production. The food production achieved the number of one crore 58 lac ton where the target in the plan was to produce 2 crore tons. Agricultural production only increased by 3.6% instead of a targeted 5%.
Industrial Sector:
Industrial sector was given extreme importance in the second plan. But the industrial performance was quite disappointing in the second plan. The second plan failed to achieve the targeted aim in industrial sector in most of the cases. The plan achieved the industrial growth by only 4.8%.Though the target was 8.4%.
Savings:
In case of saving also there was no win win situation. It was expected that the savings will be 7.4% of the GDP at the end of the second five year plan. But in reality, the savings were only 4.2% of the GDP. So targets were not fulfilled in this respect.
Export and Import:
It was targeted to have an import of 11485 million dollar in the first plan but after the plan period it was seen that only 12432 million dollars of goods were imported. On the other hand, in terms of export it was targeted to export an amount of 4790 million dollars. But finally only 4394 million dollars of export was materialized. So in case of import the growth rate was only 4.9% instead of the targeted 8.7%.

Family Planning:
The target of second plan was to reduce the growth of population to 1.5% from the previous 2.8%. According to the Planning Commission, it was possible to reduce it by 2.4%. So in case of family planning also the target was not fulfilled.
Per Capita Income:
It was targeted to increase the per capita income by 3.5% each year. But during different years of planning period the increase rate of per capita income as follows:3.4% during 1980-81,(-)1.7% during 1981-82,1.3% during 1982-83,2% during 1983-84 and 1.7%during 1984-85.So during no year the per capita growth rate was achieved.
Dependence on Foreign Aid:
The other failure of the Second plan was in case of dependence on foreign trade. It was expected that the dependence on foreign trade will decrease during the plan period but due to the failure of the proper utilization of internal inputs, the dependence on foreign trade has not decreased. By the end of the planning period it was seen that the dependence on foreign aid was raised to 56.4%.So in a nutshell it can be said that during the second planning Period, the dependence on foreign trade continued. From the above discussion, it is apparent that it was not possible to attain all the goals and targets of the Second Five Year Plan. Because of our lacking in internal resources, inflation and price hike, natural calamities, Institutional weakness, administrative incompetence, excess dependence on foreign aid the second five-year plan followed the footsteps of the first plan and proved a failure.

THIRD FIVE-YEAR PLAN (1985-90)

Introduction
The Third Five-Year Plan (1985-1990) emphasised a “rational sharing of developmental responsibilities between the public sector and private sector” (Government of Bangladesh, 1985). The private sector was to be entrusted with all enterprises, operations and institutions, which could be more efficiently handled by it than by the public sector. It was this trend, which was to be noticed in subsequent plans of the country. By the nineties it was well acclaimed by any governmental instruments that privatization would be the slogan of the day. This was in keeping with the global shifts in developmental aid orientations from a basic needs and poverty-focused approach to a more efficiency and market-oriented strategy. Parallel to these patterns of change, successive governments in Bangladesh too revised their development strategies to the extent that recent policies differed radically from the earlier visions of public sector dominated economy of the post-liberation period. Third Five-Year Plan projected total outlay Tk. 386 billion, approximately 65 percent of which was destined for public sector projects. About 55 percent of the needed funds were to come from foreign sources, including private investment, the aid programs of international financial institutions, and bilateral donor nations. Foreign commitments in the early and mid-1980s were around US$1.7 billion per year (exclusive of external private investment, which in any case was not significant). The portion of the development budget to come from domestic sources (45 percent) represented a substantial increase from the 15 to 20 percent of earlier development budgets.

Table: Financing of Third Plan Outlay
(in billion Taka) Items | Total | Share (%) | Public | Share (%) | Private | Share (%) | Plan Size | 386.00 | 100.00 | 250.00 | 100.00 | 136.00 | 100.00 | Domestic Resource | 175.72 | 45.52 | 59.60 | 23.84 | 116.12 | 85.38 | External Resource | 210.28 | 54.48 | 190.40 | 76.16 | 19.88 | 14.62 |

Main Objective of the Third Five-Year Plan
Main Objectives of the Third Five Year Plan of Bangladesh was to reduce the poverty rate. Third Five Year Plan was set to achieve poverty reduction, equal distribution of resources, increasing food production increasing, population control, creating employment opportunity, extracting internal resources, increasing literacy rate and extended role of the private sector. 1. Population growth rate will be reduced from 2.4% to 1.8%. 2. Employment opportunity will be created in production sector. Within the planning period, 51 lakh employment opportunities will be created in production sector. 3. Compulsory primary education will be provided to eliminate illiteracy and to develop human resource. 4. Technological foundation will be improved to change the long term economic structure. 5. Acquiring Self-sufficiency in food production .It is estimated that after completing the plan, in 1989-90, Two crore Seven lakh ton food will be produced. 6. The adequate supply of necessary commodities will be ensured. 7. It is estimated that in 1989-90, 96.44 lakh acre lands will be brought under irrigation. In addition with this, flood control and irrigation facility will be provided for 82.54 lakh acre lands. 8. Accelerating the economic development. Within the planning period, GDP growth rate has been fixed as 5.4%. 9. Within the planning period, GDP growth rate has been fixed as 4% in Agricultural sector, 10.1% in Industrial sector, 9.6% in Electricity and Gas sector, 4.9% in Construction sector, 6.9% in Transportation and Communication sector and 5.8% in other sector. 10. After completing the plan in 1989-90, internal savings will be 7% of GNP, in 1984-85 this was only 4.2 % of GNP. 11. In the last year of the plan(1989-90),Tax-GDP ratio will be 9.4% from 8.2%. 12. In a word, Self-sufficiency will be achieved through the efficient usage of national resource.

Strategy of the Plan
The strategy of the Third Fifth Year Plan was to reduce poverty to strengthen the economy which had not seen the fulfillment of last two plans. Different strategies have been taken to accomplish the objective of this Plan of Bangladesh. These are: 1. Total Tk. 38600 crore will be spent in Third Five Year Plan of Bangladesh. In this plan, more emphasis has been given on foreign sources. 54.5% of the total expenditure will be collected from internal resources. 2. Economic development will be accelerated by acquiring 5.4% GDP growth rate. 3. In Third Fifth Year Plan more emphasis has been assigned on government sector which is 65% of total allocated amount. On the other hand 35% has been billed in public sector. 4. Population growth rate will be reduced from 2.4% to 1.8% to avoid the overpopulation problem of the country. 5. After Agriculture sector, Electricity and Natural resource sector has been given importance. Total tk. 6175 crore has been allocated in this sector .This amount is 16% of total expenditure. 6. At last it can be said that necessary steps were taken in this plan to acquire the self sufficiency to accomplish the objective of the plan. Sectoral Allocation of the Plan
In Third Fifth Year Plan of Bangladesh, largest amount of money is allocated in Agriculture, Water and Rural development sector. In Third Fifth Year Plan Tk. 5,800 crore has been allocated in Industry and Mineral resource sector; Tk. 6,175 crore in Electricity and Natural resource sector; Tk. 4,525 crore in Transportation and Communication sector; Tk. 4,200 in Physical planning, House building and Water supply sector; and Tk. 1,370 crore has been allocated in Education and Religion sector.

Financing of the Third Five-Year Plan
Financing is necessary for spending the money on the proposed sector. It also has been finalized on which way the money will be collected. Total Tk. 38600 crore has been allocated on the first five-year plan of Bangladesh on which Tk. 25000 crore has been allocated on government sector and Tk.13,600 crore has been allocated on private sector. This amount of money will be collected from two sources: internal source and external sources. Tk. 17572 crore will be financed from internal source which is 45.5% of the total expenditure. 54.5% or Tk. 21028 crore will be financed from foreign source. So it is clear that, like other plan of the past, Third Fifth Year Plan of Bangladesh is also dependent of foreign sources for financing.

Sectoral Achievement of the Plan
Third Five Year Plan has been started from July, 1, 1985 and it is finished on June 30, 1990. Third Fifth Year Plan was set to achieve poverty reduction, equal distribution of resources, increasing food production increasing, population control, creating employment opportunity, extracting internal resources, increasing literacy rate and extended role of the private sector. Similar to other plan of the past it failed to achieve most of its objective but there is some achievement also.

1. Agriculture:
Though agricultural production was hampered by flood, draught, cyclone and bad weather during that time in 1989-90, Agricultural production growth rate was 5.6%. Within the planning period, annual growth rate in Agricultural sector is less than 2%.
2. Industries:
It is expected to achieve 10.1% growth rate in industrial sector. Though industrial sector production growth rate was only 3.48% in the last four year in 1989-90 was 7.86%. In the Third Five Year Plan, acquired growth rate in industrial sector was 4%.
3. Health Population and Family Welfare:
In the Third Five Year Plan, it was targeted to reduce population growth rate from 2.4% to 1.87% within 1989-90. After the planning period, it was at 2.2%. In 1989, total fertility rate (TFR) and CPR were estimated at 4.9 and 32.0 per cent respectively (BFS and CPS, 1989). The crude death rate dropped to 12.0. Bangladesh has achieved this progress against the backdrop of low literacy rate, low status of women and low income per capita and so on.
4. Education:
In the Third Five-Year Plan (1985-90) the programme was revived with an allocation of Tk 250 million and a modest target of making 2.4 million adults literate by June 1990. Information from the office of the Integrated Non-Formal Education (INFE) project (former MEP Office) show that only 27 upazilas were covered in this project out of a target of 71 upazilas. A total of 291,600 adults were made literate in five years.
5. Communication:
In the Third Plan (1985-90), BTTB undertook a number of programmes / projects to expand and develop the telecommunication system of the country. The Third Plan target was to install 75,000 telephone lines (65,000 in urban areas and 10,000 lines in rural areas). Against this target, 59,190 telephone lines (53,500 in urban areas and 5,690 in rural areas) were installed during the Third Plan period. As a result, telephone density per 100 population increased from 0.18 in 1984/85 to 0.21 in 1989/90 and the total number of telephones in the country stood at 241,190 in 1989/90. Digital technology in the country‟s local telephone system was introduced during the Third and Fourth Plans.
6. Social Welfare:
A total of Tk.750.00 million was allocated in the Third Plan for social welfare. The expenditure during the period was Tk.630.00 million representing 84 per cent of the allocation. The programmes undertaken during the Third Plan period emphasised provision of institutional services for the rehabilitation of the orphans and the physically handicapped aiming at development of their socio-economic potentials and imparting new skills.
7. Science and Technology:
The allocation for the STR Sector in the Third Plan was Tk. 600 million (at 1984/85 prices) which was 0.24 per cent of the total allocation of Tk.2, 50,000 million. BAEC's programmes during this Plan envisaged research on nuclear technology in its research establishment named Atomic Energy Research Establishment (AERE), Savar. The Plan made an allocation of Tk.101.16 million for this project and it was completed in 1987.

8. Sports and Culture:
During the Third Plan construction of 6 gymnasium-cum-coaching centres at district headquarters, National Stadium-2 with flood light and shifting of 7 clubs from National Stadium-1 area to other places (Motijheel) were completed. In addition, two physical colleges at Dhaka and Rajshahi were undertaken and completed during this plan period. Bangladesh Krira Shikkha Protisthan (BKSP) started its krira college and completed creation of further infrastructural facilities. Besides, some training programmes for coaches and players were also organized.

Critical Appraisal of the Third Five-Year Plan
Third Five Year Plan has been started from July, 1, 1985 and it is finished on June 30, 1990.Like other plan of the past, Third Five Year Plan has also been failed to achieve most of its objective. Third Five Year Plan fulfilled partially the expectation of structural change but it created a negative and depressing picture.
Financial Targets:
In the Third Five Year Plan, it is estimated to spend tk. 25,000 crore in public sectors and tk. 13,600 crore in private sectors. It was planned to collect 76% of the public sector spending from foreign sources and the rest 24% from internal sources Actual spending in public sector was tk.17, 435.39 crore which is 70% if the proposed expenditure and in private sector it was tk. 9,882 crore which is 73% of the planned expenditure. So, the planned expenditure was not achieved in Third Five Year Plan both in private and public sector.
Growth of GDP:
At the Third five year plan the GDP growth rate was targeted to increase by 5.4% annually. But after the plan it has been seen that the GDP has increased only by 3.8%.

Per Capita Income:
Within the Third Five Year Plan, per capita income growth rate was disappointing and in some case it was negative.
Production Targets:
It was targeted to produces 207 lakh ton food but in the planning period, deficiency in food production has been noticed. Agricultural production was hampered by flood, draught, cyclone and bad weather. In 1989-90 , Agricultural production growth rate was 5.6% but in the last four year it was poor by comparing with the target. So, annual growth rate in Agricultural sector is less than 2%.
Industrial Sector:
It is expected to achieve 10.1% growth rate in industrial sector. Though in 1989-90 industrial sector production growth rate was 7.86% but it was only 3.48% in the last four year. In the Third Five Year Plan, acquired growth rate in industrial sector was 4% which was far less than 10%.
Family Planning:
In the Third Five Year Plan, target was not achieved in case of family planning and population control. It was targeted to reduce population growth rate from 2.4% to 1.87% within 1989-90 but in reality it was only 2.2%.
Dependence on Foreign Aid:
Third Five Year Plan was too much dependent on foreign sources. 54.5% or Tk. 21028 crore will be financed from foreign source. So it is clear that, like other plan of the past, Third Fifth Year Plan of Bangladesh is also dependent of foreign sources for financing. After completing of the plan, it has been found that 90% of the total expenditure was collected from internal sources. So, within the planning period dependence on foreign aid was not reduced rather than increased too much.

FOURTH FIVE-YEAR PLAN (1990-95)

Introduction
The Fourth Five Year Plan (1990-95) was launched in July, 1990, but the draft Plan had to undergo several revisions before it was formally approved by the government in June, 1995. The Plan outlay was reduced from Tk.689.30 billion to Tk.620 billion. The Plan placed emphasis on poverty alleviation and meeting the basic needs of the people with particular focus on human resources development, women in development and environmental sustainability. The allocation for the public sector was Tk.347 billion (56%) while that for the private sector was Tk.273 billion (44%). The share of the private sector was kept higher than that in the Third Plan (35%) and the Second Plan (17%) in view of expanding market economy and public resource constraint. To meet the resource requirements, the Plan aimed at raising domestic saving rate to an average of 8.60 per cent to achieve an investment rate of 14.80 per cent and tax/GDP ratio of 9.30 per cent in the terminal year of the Plan.
Table: Financing of Fourth Plan Outlay (at 1996/97 prices) (in billion Taka) Items | Total | Share (%) | Public | Share (%) | Private | Share (%) | Plan Size | 620.00 | 100.00 | 347.00 | 100.00 | 273.00 | 100.00 | Domestic Resource | 345.00 | 56.00 | 119.00 | 34.30 | 226.5 | 82.96 | External Resource | 275.00 | 44.00 | 228.00 | 65.70 | 46.5 | 17.04 |

Main Objective of the Fourth Five-Year Plan
The Fourth Five Year Plan (1990-95) was formulated its goal and objective considering about twenty-years periodic (1990-2010) „Observed Plan‟.
Human resource development, poverty alleviation, increasing the opportunity of employment, population growth control, rural economic development were the main consideration of the fourth five year plan. The objective of the Fourth Plan was: 1. The main objective of the fourth five-year plan was to accelerate the economic development. 2. During the plan period aimed at raising GDP rate to an average of 5%. 3. Control the population growth was one of the major considerations of the fourth plan. Reduce the population growth 2.2 to 1.9 in the terminal year of the plan. 4. All poverty alleviation efforts have been singularly concerned. A number of programmes /projects were undertaken to alleviate the extreme poverty. 5. To raise domestic employment opportunities and sought employment opportunities in other countries to absorb surplus manpower. 6. One of the objectives of the Fourth Plan was to reduce mass illiteracy. A sum of Tk.525.90 million was spent during the Plan period. Another objective of the project was to increase literacy rate of 11-45 years age group from 30 per cent to 60 per cent by the year 2000 in the project area. Under the project, 3, 67,660 illiterates were made literate during the Plan period. A sum of Tk.525.90 million was spent during the Plan period. 7. Gradually increase the self-reliant ratio through proper usage of domestic goods. 8. Another important objective of the plan was to increase the supply of domestics‟ resource. 9. Achieving self-sufficiency in food production and sealing food importation. 10. Accelerate pace in the industrialization and expanse in small and cottage industry sector were another objective of the fourth plan. 11. Increase the export facility for the industrial sector. 12. Transform economic structure through expansion of science and technological development. 13. Improve the rural economic smooth manifestation through accelerate pace in rural economic development. 14. Many projects were taken place like canal digging, forestation, cultivation of vegetables etc. to create more self-employment opportunities. 15. To ensure the availability of the human basic needs.

Strategy of the Plan
Poverty alleviation as well as solving some economic problems and accelerate pace in economy some strategies were taken in the fourth five-year plan. These strategies were divided into two categories- one is general strategy and another is specific strategy.
(1) General Strategy
1. Adjustment between sectoral planning and socio-economic planning:
In five-year plan, sectoral planning was combined with socio-economic planning. For this reasons the total population were divided into ten socio-economic classes. These classes were: a) Landless Farmer b) Tiny farmer: (owner of land 0.0-1.5 acres) c) Medium farmer: (actual farmer) ( owner of land 1.5-5.0 acres) d) Large farmer: (vendor farmer) (owner of land 5.0-10.0 acres) e) Larger farmer: (owner of land more than10.0 acres) f) Rural disorganized group: ( rural poor people involved other work except farming ) g) Rural organized group: ( rural wealthy people involved other work except farming ) h) Urban disorganized group:( urban poor people involved other work except farming ) i) Urban organized group: ( urban wealthy people involved other work except farming)
Landless and tiny farmer, rural and urban disorganized class people were the half of the total population and they were extreme poor. New projects were taken to change this people’s fate. If it is needed micro plan would be created and combined with Macro plan. For example- rural project will be formulated on the consideration of the union and the Thana level authority observes it.
2. Inter-sectoral balance:
The fourth five-year plan gives it‟s the best effort to achieve the maximum achievement in each sector. It gives emphasis inter-sectoral balance to achieve this target. The fourth plan emphasis on the combination of agriculture and industrial sector. For this reason, it gives more emphasis on electricity, transportation, communication, irrigation etc.
3. Introducing expertise culture:
The fourth five-year plan introduces expertise culture. For that, it takes some steps like human resource development, administration and management development, inter-sectoral relation, market expansion etc. to reinforce the economy.
4. Adjustment between real sector and structural sector:
The fourth plan will be made structural change in economy by adjusting between the development poor population’s life standard and accelerate pace in economy. One of the basic strategies of the Plan was to increase productive and operational efficiency in all sectors.
5. Women in development and child development issues:
Women are nearly half of the population. They represent a half of the country's human resources and thus a half of its potential. The Fourth Plan (1990-1995) placed women within the context of a macro framework with multi-sectoral thrust and focused more on the development of poor and disadvantaged women. The shared responsibility for women's equality and development is strongly emphasized in the Beijing Platform for Action that was endorsed by the Government of Bangladesh in September 1995.
6. Economic and commercial moral reformation:
The fourth plan is emphasized on the increasing of saving and investment. By reforming of tax system, transfer the asset in poor population’s hand. In this plan, the government will reform economy and commerce moral for increasing savings and investment, increasing extra tariff and effective resource management.
7. Administrative reformation:
Administrative structure is not at all supportive for present economic development. This system suffers for bureaucratic problem. So the fourth plan will emphasize on the reformation of administration activities.

(2) Specific Strategy:
The major theme of the Fourth Plan was poverty alleviation and human resource development. The fourth five-year plan takes four specific strategies for alleviating extreme poverty. These strategies are:
1. Investment in government sector:
The fourth five year plan will set its strategy in government sector so that poor and troublesome population will be benefited. A number of programmes/projects will be undertaken. The most important project of Social Welfare Department, "Rural Social Service" (RSS) includes group organization, skill development training, income generation through financial supports in the forms of interest free loans (revolving capital), promotion of self-supporting funds, motivational programmes for family development and population activities, social forestry, social education, etc. During Fourth Plan an amount of Tk.1, 317.55 million will be allocated through the ADPs.

2. Investment in private sector:
A number of programmes/projects will be undertaken for getting the best benefit from private sector by saving and investment. Poor and troublesome population will generate income through financial supports in the forms of interest free loans (revolving capital). Bangladesh Krishi Bank, Grameen Bank, BISCIC, Rural development board offer self-sufficient fund for promoting tiny farmer and investors. The fourth plan will promote emigrant people to send more remittance and increasing rural saving. This plan also emphasize on vocational development and invention. The fourth plan also encourages foreign investment as well as mutual investment.
3. Participatory of NGOs:
Since last two decades, Non-government Organization had played an important role in our economic development. The fourth five-year plan forecasts that eight projects will be implemented by the NGOs working for welfare of the disabled, diseased and distressed.
4. Resource collection and participatory local level planning:
The fourth five-year plan set strategy to accomplish its plan in each union level. In this condition, every village and ward‟s people presents their problem and each unionformulate plan to alleviate their problem. Union level planning will be adjusted with thana level planning and thana planning will be adjusted with district level planning.

Sectoral Allocation of the Plan
In Fourth Fifth Year Plan of Bangladesh, largest amount of money is allocated in Agriculture, Water and Rural development sector. In Fourth Five Year Plan total financial outlay was Tk. 672.30 billion while allocation for the public sector was Tk.407.30 billion and for the private sector was Tk. 265billion.

Sectoral Achievement of the Plan
The fourth five-year plan launched in July 1, 1990 and it was terminated in June 1995. After independence of Bangladesh, no plan could achieve its target. These plans would not able to satisfactory achievement to alleviate poverty and develop life standard. The fourth plan is no exception. However, we get some benefit from the fourth five-year plan. These are:

1. Agriculture Water Resources and Rural Development
Bangladesh made steady progress in crop agriculture. The cropping intensity increased from 148 to 179 per cent and foodgrain production almost doubled during the period from 1969/70 to 1992/93. Contributing about 75 per cent of the value added, crops form the largest sub-sector of agriculture. Rice is the dominant crop and largely determines the rate of progress in the agriculture sector and to a significant extent, that of the non-agricultural sectors. It covers about 75 per cent of the cropped area and accounts for about 70 per cent of the value of crop output. In fact, the entire growth in crop production is due to the growth in foodgrain production, particularly rice. As regards performance of modern inputs, the irrigated area increased to about 2.65 million hectares in 1990/91. In 1994/95, total foodgrain production was only 18.17 million mt.

2. Industries:
The crucial and logical transformation of the Bangladesh economy that is needed for an accelerated pace of industrialisation, is yet to take place. The share of her agricultural sector, though dropped from about 58 per cent in 1972 to about 33 per cent in 1995, the share of the manufacturing sector limped from 9.0 per cent in 1973 to a mere 11.4 per cent in 1994/95. The services sector, on the other hand, jumped from 26 per cent to about 48 per cent over the same period. In 1994/95 this sector achieved a growth rate of 8.6 per cent compared to 7.2 per cent in 1989/90. Over the period from 1990/91 to 1995/96, the manufacturing sector grew at an average annual rate of 6.3 per cent and there have been fluctuations also. The first year of the Fourth Plan registered the lowest growth rate (2.39 per cent), while the highest growth rate (9.1 percent) was achieved during the year 1992/93.
3. Energy:
The Fourth Plan was formulated with a public sector allocation of Tk. 64,500 million at 1989/90 prices for the power sector. This allocation was inadequate in relation to the physical targets set in the Plan document. Due to shortage of both local and external resources, the Plan allocation as well as Plan targets had to be revised. The revised allocation was Tk. 45,360 million at 1989/90 constant prices against which Tk. 67,480 million was spent at current prices.
4. Oil Gas and Natural Resources:
The development of the oil and gas sector is vital for further strengthening of the national economy. Currently, natural gas accounts for about 70 per cent of the commercial energy consumption compared to about 35 per cent in 1980. During 1985-1992, gas production increased at an average annual rate of about 10 per cent.
5. Labor and Manpower:
A sum of Tk. 850.00 million was earmarked for the labor and manpower sector during the Fourth Plan for the implementation of twenty-four projects under various organizations/ agencies. Out of Tk. 850.00 million, a total of Tk. 180.00 million was spent. A total of ten projects were completed out of twenty-four projects during the Plan period. Placement of migrant workers was almost entirely carried out by the private recruiting agents. Overseas employment initially increased and then declined somewhat in the post-Gulf War period.

6. Women in Development and Child Development Issues:
The goal of economic development of a country is to increase the well-being and quality of life of the population through growth with social justice. This includes women as well as men. The Fourth Plan (1990-1995) placed women within the context of a macro framework with multi-sectoral thrust and focused more on the development of poor and disadvantaged women. The shared responsibility for women's equality and development is strongly emphasised in the Beijing Platform for Action which was endorsed by the Government of Bangladesh in September, 1995.
7. Poverty Alleviation Employment and Human Resources Development:
The dynamic process of impoverisation is however more complex than caring for the poor. There are movements across the poverty lines. In fact, relatively more people moved into the extreme poverty level from above than from the latter group, apparently resulting in polarisation of the non-poor and the extreme poor in the rural areas. In 1989/90, BIDS sample shows that the extreme poor group constituted 16.7 per cent, excluding households (18.3 per cent) who fluctuated between moderate poverty and extreme poverty, while 44.6 per cent were non-poor. In 1994, 17.6 per cent were in extreme poverty (excluding fluctuating group). The corresponding percentage of the non-poor was 45.6 per cent. Relatively more people also crossed into the group of the non-poor with the moderate poor being proportionately less (20.4 per cent in 1989/90 to 18.3 per cent in 1994). This movement from the moderate group is indicative of improvement in absolute poverty, while extreme poverty seems to be growing.
8. Physical Planning Water Supply and Housing:
In the Fourth Plan, Tk. 18,420.00 million (at 1989/90 prices) was allocated to this sector which was 5.31 per cent of the total public sector allocation. At the end of the Plan period, total expenditure stood at Tk. 20,940.00 million at current prices. This expenditure also included expenditure of the National Implementation Committee for Administrative Reforms (NICAR) and Flood Action Plan (FAP) for water supply and sanitation and construction of 3,080 houses for public servants in Dhaka city.
The land-use master plans for 398 thanas and 60 district towns were completed. The National Housing Policy was approved in 1993. Improvement of the physical infrastructures for the secondary district towns were carried out.
9. Transport:
The transport system of Bangladesh consists of roads, railways, inland waterways, two sea ports, maritime shipping and civil aviation catering for both domestic and international traffic. The volume of road transport increased by 88 per cent from 1985 through 1993, whereas the volume of transport by water as well as rail declined in almost equal proportion.
10. Communication:
In the Fourth Plan, the total allocation for telecommunication sub-sector provided through ADPs was Tk. 14,228.10 million and the total expenditure was Tk. 13,524.80 million or 95 per cent. The Bangladesh T&T Board undertook a number of projects to modernize, expand and develop the telecommunication system of the country during the Fourth Plan. Against a target of 103,058 telephone lines, 72,507 lines were installed (67,801 lines in urban areas including 46,851 digital and 4,706 lines in rural areas). As a result, the telephone density increased to 0.26 per 100 people at the terminal year of the Fourth Plan. However, 89 per cent of the telephones were in the urban areas and only 11 per cent in the rural areas. During the Fourth Plan, 6 more district headquarters and other important places were covered with 9 auto exchanges and in the process, 3 manual exchanges were replaced by auto ones. The target for Public Call Offices (PCOs) at union level was 118, out of which 57 was installed. In the village growth centres, 84 PCOs were established against a target of 105. To increase accessibility of the telephone facilities to the common people 1,200-card phones were installed.
11. Education:
One of the objectives of the Fourth Plan was to reduce mass illiteracy. Four projects were undertaken, of which two were completed and one was dropped. A sum of Tk.525.90 million was spent during the Plan period. The Plan inherited a project titled "Mass Education Programme" as a spill-over project. Under the project, a total of 3,67,660 illiterates were made literate during the Plan period. Another project titled "Expansion of Integrated Non-formal Education Programme" was launched and the objective was to institutionalize a comprehensive non-formal education system in the country. Other activities of the project were development of primers, teacher’s guide, teacher's training manual, and supervisor's training manual. Training programmes were undertaken for the centre supervisors, teachers and librarians.
12. Health Population and Family Welfare:
Over the 25 years of independence, the health situation of the population has improved quite remarkably. Life expectancy at birth reached 58 years in 1995. Total fertility rate was reduced from 6.3 in 1975 to 3.4 in 1995. The crude death rate dropped from 12.0 in 1990 to 9.0 in 1995 and is expected to decline further. Due to the recent success in the EPI programme which had a coverage of over 66 per cent in 1995, infant mortality rate declined to around 78 per 1000 live births in 1995. Similarly, the under-5 mortality dropped from over 210 in the mid-1970s to 133 per 1000 live births in 1995. In terms of physical facilities, there were 897 hospitals (610 in the public sector and 287 in the private sector) of different categories with 34,786 beds (27,544 in the public sector and 7,242 in the private sector) with one bed for every 3,450 persons in the country in 1995. With regard to health and medical professionals, the country so far produced 24,638 graduate doctors by 1995 giving a doctor-population ratio of 1:4,870. The doctor-nurse ratio was 2:1. In case of nurse-population ratio, the position was 1:10,714.

13. Sports and Culture:
During the Fourth Plan measures were adopted for further qualitative improvement and development of sports and games. During the Plan period, the third phase of Bangladesh Krira Shikkha Protisthan (BKSP) was completed at a cost of Tk.150.00 million. For qualitative improvement some training programmes for players and coaches in different games were organized. The 6th SAF games were organized successfully in Dhaka during this Plan. During the Fourth Plan, an amount of Tk.760.00 million was allocated for 28 development projects. Tk.976.89 million was spent and 20 projects were completed. Eight projects could not be completed and were spilled over.
14. Social Welfare Women and Children Affairs and Youth Development:
The major theme of the Fourth Plan was poverty alleviation and human resource development. A number of programmes/projects were undertaken of which four were community based comprehensive development programmes aimed at alleviation of poverty. The most important project of Social Welfare Department, "Rural Social Service" (RSS) Approximately 1.5 million people benefited from this project. In the urban areas of 5 cities of the country (Dhaka, Narayanganj, Rajshahi, Chittagong and Khulna) a programme for welfare of the children in especially difficult circumstances was initiated through which about 15,000 children were benefited. Under institutional services, 11 projects were undertaken for the welfare of 4,000 orphans, 400 disabled, 150 juvenile delinquents, 2,700 vagrants and destitutes. Eight projects were implemented by the NGOs working for welfare of the disabled, diseased and distressed. The number of beneficiaries was about 1.00 million. During Fourth Plan an amount of Tk.1100 million was allocated to implement 23 projects of which 11 projects were completed. Tk.1, 317.55 million was allocated through the ADPs and an amount of Tk.1,149.90 million was spent. Almost all the projects that were completed during the Plan experienced cost and time over-runs.
15. Mass Media:
A total amount of Tk.856.20 million was allocated out of which Tk.569.60 million i.e. 67.32 per cent was spent in the Fourth Plan period. During the Fourth Plan period, Bangladesh Betar undertook 8 projects out of which 2 were completed and 1 abandoned. While coverage increased, qualitative improvement as a medium of information and healthy recreation left much room to be improved upon. Bangladesh Television took up 5 projects for implementation during the Fourth Plan. None of these projects was fully completed. National Institute of Mass Communication (NIMC) has conducted 266 training courses and seminars and trained 3552 participants including 96 foreign participants during the Fourth Plan period. It also conducted 12 research programmes on model broadcasting during the same period.
16. Science and Technology:
The objectives of science and technology sector as set forth in the Fourth Plan were to develop scientific and technological research, planning and institutions for different sectors. The total public sector allocation during the Fourth Plan was Tk.3,47,000 million. Out of which only Tk.540 million was allocated for science and technology representing only 0.16 percent of the total. During this period, BCSIR undertook 10 projects for implementation out of which 6 projects were completed by June, 1995. During this period, 84 industrial processes were developed by BCSIR, 23 processes were patented and 37 processes were leased out. Production of spirulina under local climatic conditions, innovation of improved "chula", bio-gas plants, etc., were some of the major achievements of this period.

Criticism of the Plan
The Fourth Five Year Plan of Bangladesh has been finished on June 30, 1995 but if we critically discuss the activities of the plan, we find that, Fourth Five Year Plan of Bangladesh has failed to reach most of its objectives. Here we present an evaluation of the Achievement and Failures of the First Five Year Plan of Bangladesh. i. The problem that was identified during the Fourth Plan as the major constraint in science and technology sector was that the research organizations had no linkages with the industry. As a result, most of the research findings or the developed technologies could not see the light of the day beyond the premises of the research organizations. ii. Another problem which was identified was the absence of any satisfactory linkage between the industries and the universities. Local industries remained satisfied with the know-how of imported technology and had not taken any serious initiative to gear up R&D activity in their organizations. iii. Due to non-availability of foreign aid in time, lack of timely acquisition of land, delay in completion of construction work by the Public Works Department (PWD), lack of co-ordination among various ministries, a good number of projects of mass media could not be implemented within the stipulated time. iv. The understanding of the decision makers of the need for and effectiveness of "participatory local level planning" was rather poor. Most development planners (including bureaucrats and technocrats) thought that such participation was unnecessary mainly because of ignorance and illiteracy of the poor. The usual emphasis was on the need for educating the poor before they could effectively participate. For the intervening period, therefore, the preference was for a top down decision making process. v. The development of surface transport system in Bangladesh is constrained low investments and maintenance and inadequate institutional framework (four ministries, nine transport sector parastatals and lack of co-ordination and autonomy of transport parastatals). vi. As the experience over various plan periods, poor management, faulty preparation of the project documents, inadequate transfer of technology, too much dependence on the expatriate consultants, delay in recruiting the project personnel, frequent changes of project directors, lack of MIS and inadequate maintenance services and inability of BTTB to raise funds from the market, stood on the way of timely implementation of projects for development of the telecommunication of the country.

FIFTH FIVE-YEAR PLAN (1997-2002)

Introduction
The Fifth Five Year Plan aims to put Bangladesh on a path of self-sustaining growth for the improvement of socio-economic condition of the people. Acceleration of GDP growth will allow the economy to break through the continuing poverty syndrome. While there has been substantial improvement in recent years in macroeconomic management, the Plan recognizes the need for massive investment, with private sector playing the major role for rapid growth and efficiency.
Total outlay of the Fifth Plan is projected to be Tk.1,959.52 billion. Of this, the major share (56 per cent) is anticipated from the private sector (Tk.1,100.58 billion), exceeding its share in all the previous Plans. The Fifth Plan aims at raising the GDP growth rate to a level that will take Bangladesh to the threshold of take-off in the shortest possible time and allow an efficient and effective pursuit of poverty alleviation programme through generation of high level of productive employment opportunities. It projects GDP growth at an average annual compound rate of 7 per cent but the growth of the economy will be accelerated over the years. In the first year, the rate is estimated at 6 per cent and in the terminal year at 8.3 per cent. Higher growth rate will be brought about through higher rate of investment and greater efficiency by pursuing productivity enhancing policies and skill development. Even at this GDP growth rate, against an expected average population growth rate of about 1.37 per cent per annum, it will take about 10 years for an average poor person to cross the poverty line.

Table: Financing of Fifth Plan Outlay ( at 1996/97 prices )
( In billion Taka ) Items | Total | Share (%) | Public | Share (%) | Private | Share (%) | Plan Size | 1,959.52 | 100.00 | 858.94 | 100.00 | 1,100.58 | 100.00 | Domestic Resource | 1,519.76 | 77.56 | 527.72 | 61.44 | 992.04 | 90.14 | External Resource | 439.76 | 22.44 | 331.22 | 38.56 | 108.54 | 9.86 |

Main Objective of the Fifth Five-Year Plan
The overwhelming problems of poverty, hunger, malnutrition, illiteracy, unemployment and under-employment, particularly in rural Bangladesh, persist as a challenge for all development planners. To overcome these challenges the economic developers set some objectives in the fifth five-year plan in which it projects GDP growth at an average annual compound rate of 7 per cent but the growth of the economy will be accelerated over the years. The objectives of the Fifth five-year plan were: 1. The main thrust of the Fifth Five Year Plan will be to improve life standard of the people and their working environment by providing adequate physical infrastructures and other services. 2. Raise productivity of labour through skill development and upgradation of technology under the overall human resource development strategy of the government. 3. Attain self-sufficiency in foodgrain production along with increased production of other nutritional crops and encourage export of agricultural commodities, particularly vegetables and fruits keeping in view domestic production and need. 4. The Fifth Five-Year Plan adopted an ambitious objective to achieve the goal of Education for All (EFA) by the end of Plan period 2002. The major objectives are to increase gross enrolment in primary schools to 110 percent (net 95%) with particular emphasis on enrolment of girls and on increasing completion rate of primary education to at least 75 percent by the year 2002. 5. Improve functional, managerial and organizational capabilities of the poorest group through formation of groups and participation in rural/urban development programmes in respective areas. 6. Implementing structural adjustment and liberalization policies, which will enhance the role of the private sector and create an environment conducive to its accelerated growth. 7. The main thrust of the health programmes has been the provision of primary health care (PHC) services which has been recognized as a key approach to attain „Health for All‟ by the year 2000 (HFA/2000 A.D.). Providing medical care for all and raising the level of nutrition for mother and her child as well as reducing the population growth rate at 1.2 in the terminal year of the plan is the key concern of the fifth five-year plan. 8. High emphasis will be placed on the advancement of science and technological research and innovations by adopting imported improved technology as well as through development of indigenous technology in the Fifth Plan period. Introduction of genetic engineering and green revolution could have far reaching effects on the mankind. 9. The Fifth Plan focused on reducing gender disparities in all sectors by integrating women into mainstream development efforts. In addition, the new Plan included a focus on children’s survival and development, setting out 12 goals and objectives for the development of women and children. The Fifth Plan also brought a new emphasis on women’s empowerment in order to set more concrete goals and objectives related to women’s and children’s development.

Strategy of the Plan
In order to achieve the objectives, the strategies/policies will be evolved and adopted to bring about necessary technical change. Strategies for Participatory Planning during Fifth Plan are: a. Total Tk. 1,960 billion will be spent in Fifth Five Year Plan of Bangladesh. In this plan, more emphasis has been given in private sector (Tk. 1,101 billion). 54% of the total expenditure will be collected from private sector. During the fifth plan period, the beginning and terminal year’s investment and GDP ratio will be 18.21% and 25.10%. b. There is now a growing realization that a vibrant and dynamic private sector is the key to economic progress and sustained growth. Efforts are being focused on the promotion and supporting of the private sector and creation of an enabling environment for it to flourish and maximize its contribution to economic progress within a business friendly and equitable framework. Bangladesh has been increasingly relying on this philosophy as a strategy for growth. As a consequence of this, the share of the private sector in total investment has risen. Public sector reforms will continue to be undertaken as a complement to the private sector so that it can function more effectively and up to its potential. c. It projects GDP growth at an average annual compound rate of 7 per cent but the growth of the economy will be accelerated over the years. From the total allocated amount, Tk. 322.62 billion has been billed in agriculture sector. This is 16.46% of total allocated amount. After Agriculture sector, respectively industrial sector (15.85%) and transport and communication sector (13.5%) have been given importance. d. Development of modern, irrigated and least-risk agriculture with greater reliance on competitive markets through supply of agricultural inputs at low cost; making public investment more effective and keeping it limited to key areas as required to supplement private initiatives; strengthening of the agricultural research and extension systems in order to develop new technologies relating to crop varieties, integrated farming system, organic farming, improved agronomic and agro-processing technologies, and for diffusion of the proven technologies. e. A study will be undertaken to ascertain the applicability and potential to collect wage earners remittances by the private sector at competitive exchange rates and float attractive bonds for investment of remittances in different fields of economic development such as agriculture, small-scale industries and infrastructure building activities, etc. and an employment bank will be set up for funding self-employment. f. In order to ensure participation of different segments of population in skill development training and self-employment activities, local government institutions at district, upazila and union level will be involved very effectively; g. More emphasis will be given on community-based programmes through the establishment of village-based institutions (VBIs) as an instrument for poverty alleviation in Rural Social Services (RSS) setting; in order to sustain the programmes, the VBIs will have organizational frame works of their own. Community-based rehabilitation programmes will be given greater emphasis in relation to the physically disabled, the orphans, the beggars and other disadvantaged groups. h. As a step towards increasing the literacy rate, universal primary education has been made compulsory. The fifth five year plan adopt effective measures for (a) establishing a uniform, mass-oriented and universal system of education and extending free and compulsory education to all children to such stage as may be determined by law; (b) relating education to the needs of society and producing properly trained and motivated citizens to serve those needs; and (c) removing illiteracy within such times as may be determined by law. i. More emphasis on scientific and technical education as has been the case during the recent years, will go a long way in enlarging the technological base of economic development and laying foundation of a knowledge based society. To supplement government efforts, there is need for greater participation of the private sector, community and non-government organizations (NGOs). j. For transport network development strategy, an optimal mix of "market integration approach" and "poles of development approach" will be adopted. This development strategy is to be reinforced by the rural transport development strategy. Rural transport system will be developed by integrating inland water transport sub-sector with the existing road transport system and within the road transport sub-sector by adding off-road internal access dimension. To this network development strategy, urban transport sector dimension will be added. Financing of the Fifth Five-Year Plan Outlay
Proposed investment will be financed through increased domestic savings, remittances of Bangladeshi workers abroad, FDI and official development assistance (ODA).

A. Internal Sources
In Fifth Five-year plan is projected to collect total Tk. 1519.79 from domestic resource which is approximately 90% of the total projected financing outlay. Both the public and private savings will have to be increased substantially to finance the Fifth Plan. It will have to be ensured that resource mobilization for the public sector does not impinge on the savings required for financing private investment. Much of the success of the Fifth Plan to mobilize domestic resources will depend on the proper use of fiscal and monetary measures. The Fifth Plan projects that about Tk.527.72 billion (35 per cent) of the domestic resources will be mobilized in the public sector and rest Tk.992.04 billion (65 per cent) will be in the private sector. Therefore, the private sector is expected to play a major role in the domestic resource generation. In view of the recent dynamism of the private sector, especially expansion of investment and acceleration of growth in the export-oriented industries, it is expected that the private sector will be able to mobilize the required domestic resources as the financial deepening of the economy continues.

B. External Sources
In under developed countries, foreign aid and loan is an important source of financing. In Fifth Five-year plan of Bangladesh Tk. 439.76 is targeted to collect from foreign aid and loan.

Sectoral Achievement of the Plan
Main objective of the fifth five year plan is to alleviate poverty through the accelerate pace in economic development and increase employment opportunity. Similar to other plan of the past it failed to achieve most of its objective but there is some achievement also. Agricultural Sector:
In this planning period, Bangladesh made steady progress in crop agriculture. As regards performance of modern inputs, total foodgrain production was only 18.17 million mt in the terminal year of the plan. In the planning period through agricultural research improved agronomic and agro-processing technologies.
Industrial Sector:
Bangladesh is a late starter in the process of industrialization. Besides, significant promotional investments were made by the government by way of setting up a large number of industrial estates for small and medium sized industrial units as well as two export processing zones (EPZs) to provide infrastructural facilities, utilities and other services for the entrepreneurs - both foreign and local.
Transportation:
In the Fifth Plan, the total allocation for transportation was Tk. 14.23 billion. In the plan period successfully establish direct railway link between East and West Zone through Cross Jamuna rail connection, improve of line capacity and opening up avenues for private sector participation in BR activities.
Education:
The total allocation for health and education was 22% of the total plan size which was 10.7% of the fourth plan. Though The Fifth Plan could not achieve the overall objectives of achieving the goal of EFA and fulfilling the educational needs of 30 million adult illiterates, in this the literacy increased at
Communication:
In 1995/96 and 1996/97, an allocation of Tk. 3,450.97 and Tk. 2,137.77 million respectively were provided of which the entire amount was utilized. During the plan period, telecommunication expands the telecommunication infrastructures in both the urban and rural areas so as to enable the providers to give one telephone per 100 people by 2002 against the existing 0.39 telephone per 100 people.
Human Development:
Human resource development is one of the main objectives of the Fifth Plan alongside generating productive employment opportunities. This is necessary not only to accelerate the process of poverty alleviation but also to survive in a competitive market economy. To meet these challenges in the Fifth Plan period the labour and manpower sector will concentrate on three-fold objectives: generation of productive employment; human resource development (HRD); and poverty alleviation.
Physical Planning Water Supply and Housing:
The main thrust of the Fifth Five Year Plan will, therefore, be to improve the quality of life and living conditions of the people and their working environment by providing adequate physical infrastructures and other services. During the period, land-use master plans for 398 thana headquarters and master plans for 60 district towns were undertaken. Office accommodations at 44 district and thana head quarters were completed and 13,918 service plots were distributed among people belonging to low income group and about 6,860 squatter families were rehabilitated.
Social Welfare:
During the plan period, an amount of Tk.578.20 million was allocated out of which Tk.509.90 million was spent. Government provide medical care, education, skill development training and revolving fund through institutional services to orphans, destitute, physically and mentally handicapped and shelterless children to make them self-reliant and active citizens.
Public Administration:
The Fifth Plan period is planned to be a period of reforms and development. To spearhead the process public administration will be reengineered, redesigned and reoriented. To the end of deregulation, liberalization and privatization and effective delivery of administrative, legal , social and economic services, public administration was the main conduit.

Criticism of the Plan
After the independence of Bangladesh, there is one Two Year Plan and Five Five-Year Plan. All of them are planned in a same way. Fifth Five Year Plan is not exceptional among all of them. In fact, Fifth Five Year Plan has been could not escape the conventional way of implementing plan. 1. Similar of the past plan the fifth plan forecast to acquire self-sufficiency in food production but it is difficult to achieve the goal without land reformation. Without land reformation, project agriculture development is totally indistinct. 2. Without proper utilization of domestic resources achieve self-sufficiency is not possible. But there is no projection for the proper utilization of domestic’s resources. 3. Our plan is capital based. Though the fifth plan set its strategy to participate local level planning, the fifth plan is not undertake appropriate programme to accomplish the local level planning. 4. Public sector involvement in the transport system of Bangladesh consists of ownership and operation of nine parastatals. The parastatals have poor financial performance except the two seaports. The poor financial performance of the parastatals and their weak capital structure created a financial liability on the government of around Tk. 2,500 million annually till 2000. 5. To raise the manufactures' share from the present 9.28 per cent level to 12.70 per cent of GDP by the terminal year of the Fifth Plan obviously is a challenging task. This required an upbeat efficiency of the private sector with ability to compete in a globalised market economy and liberalized trade regime. But the private sectors performance during the plan period was frustrated. 6. The vast potential that exists for development and diversification of agro-based and agro-support industries remains to be tapped. Indeed, even the existing industrial units gradually lost operational viability due to lack of investments in balancing and modernization as well as loss of protective domestic markets due to liberalization of the trade regime at a pace which did not permit necessary adjustments and relocations. 7. The common scenario of all development plans is found that not all projects funding as per physical and financial was adequate to accomplish the goal successfully. 8. Lack of specific principles of social welfare projects involving private sectors; inadequate community support and weak local government institutions was responsible for failure the fifth plan.

Sixth Five Year Plan (2011-15)

Introduction
Over the past 40 years since independence, Bangladesh has increased its real per capita Income by more than 130 percent, cut poverty by more than half, and is well set to achieve most of the Millennium Development Goals. Bangladesh’s development experience is Particular remarkable in that it stands out as a positive example of a resilient young nation that has fought many natural and global disasters as well as internal political debacles and yet stayed firm on the development path. Notwithstanding many external and internal shocks, per capita income has risen continuously and steady progress has been made in lowering poverty. This positive development experience provides the basis for optimism, notwithstanding the many remaining policy and institutional constraints and the global uncertainties, that Bangladesh will continue to make inroads in improving the living standards of its citizens.

Table: Financing of Fifth Plan Outlay (at 1996/97 prices)
(In billion Taka)

Items | Total | Share (%) | Public | Share (%) | Private | Share (%) | Plan Size | 13469.4 | 100.00 | 3075.8 | 100.00 | 10393.6 | 100.00 | Domestic Resource | 12215.3 | 90.7 | 2239.6 | 72.8 | 9975.7 | 96.0 | External Resource | 1254.1 | 9.3 | 836.2 | 27.2 | 417.9 | 4.0 |

Sixth plan core targets in the context of vision 2021

Notwithstanding past progress with poverty reduction, the Government recognizes that
Bangladesh is still a low income developing country. An estimated 47 million people are living below the poverty line. Most of the labor force is engaged in informal low productivity and low income jobs. The access to secondary and tertiary education is limited and the quality of education at all levels is deficient. The poor group in Bangladesh is severely disadvantaged in terms of ownership of assets and has inadequate access to institutional finance as well as to basic services including quality education, healthcare, water and sanitation. This group of people is also disproportionately affected by natural disasters and the adverse effects of climate change. Publicly supported mitigating measures in the form of social protection programs are inadequate. In recognition of these substantial development challenges, recently the Government has embarked on a Perspective Plan covering 2010 to 2021 aimed at implementing Vision 2021. The key message of Vision 2021 and the associated Perspective Plan is summarized as follows. “The development perspective envisages to achieving, in the coming days, a prosperous progressive nation in which food and energy security shall prevail with drastic reduction of poverty and a low level of unemployment. The perspective also includes great strides in human development including health and nutrition, effective population control, progress in all levels of education, primary, secondary and tertiary in addition to commendable improvement in science and technology, along with great achievement in ICT. Infrastructure development will improve integrated multi-modal transport encompassing, railways, roads and inland water transport having connectivity with our neighbors. In other words, the development perspective implies the simultaneous fulfillment of economic and social rights of 19 the people alongside civil and political rights. For this to happen strong links between economic growth on the one hand, and expansion of employment opportunities, reduction of poverty, expansion of democracy and empowerment, consolidation of cultural identity and protection of environment with its freshness for the next generation on the other will be established”

Sixth five year plan strategy

At the operational level the fundamental task of the SFYP is to develop strategies, policies and institutions that allow Bangladesh to accelerate growth and reduce poverty. Poverty is still pervasive. In developing the strategy for higher growth, employment, and poverty reduction and the Sixth Plan will draw on the lessons of past experience. In particular it will draw on the experience of the Fifth Five Year Plan (FY97-FY02), where a number of initiatives were undertaken to raise the GDP growth rate, increase food production, initiate agriculture diversification and improve health and education service delivery Acceleration of economic growth and employment: An essential pre-requisite for rapid reduction of poverty is to attain high economic growth ensuring sustainable productive employment and incomes for large number of people of Bangladesh. Productive employment is the most potent means of reducing poverty. But this is not easily achieved. This requires strategies and actions on the demand side of the labor market (driven primarily by economic growth) as well as strategies and policies on the supply side (labor force growth and quality).

Major sources for setting SFYP development goals and targets: * Constitution of the People’s Republic of Bangladesh (Articles 9–20); * Election Manifesto of the Bangladesh Awami League 2008; and * Agreed global and regional development goals like MDGs and SDGs. * Secure and sustain an annual level of GDP growth of 8 percent by 2013 and raise it to 10 percent from 2017; * Bring down the percentage of disadvantaged people living below the poverty line to 15 percent by 2021; * Ensure a minimum of 2,122 k. cal/person/day of food to all poor people and standard nutritional food to at least 85 percent of the population by 2021; * Ensure 100 percent net enrolment at primary level by 2010, provide free tuition up to the degree level by 2013, attain full literacy by 2014, and ensure that Bangladesh is known as a country of educated people with skills in information technology; * Achieve self sufficiency in food by 2012; * Ensure living accommodation for the entire population by 2015, supply of pure drinking water for the entire population by 2011, and bring each house under hygienic sanitation by 2013; * Eliminate all kinds of contagious diseases and increase life expectancy of citizens to 70 years by 2021; * Reduce maternal mortality to 1.5 percent, raise the use of birth control methods to 80 percent, and bring down infant mortality to 15 per thousand live births by 2021; * Change the sectoral composition of output with the shares of agriculture, industry, and services standing at 15 percent, 40 percent, and 45 percent respectively in 2021; * Reduce underemployment rate to 15 percent along with changing employment shares of agriculture, industry, and services to 30 percent, 25 percent, and 45 percent respectively in 2021; * Generate 7,000 megawatt of electricity by 2013, raise it to 8,000 megawatt in 2015, and make provision to meet the expected demand for power of 20,000 megawatt in 2021.

Sixth Five Year Plan 2011-15: approach * Inclusive Economic Growth * Enhancing Economic Growth * Employment Creation * Universal Social Protection for the Hardcore Poor * Role of Market, State and Community in Economic Growth * Public–Private Partnership (PPP) * Regional and Sub-Regional Planning * Gender Responsive Plan * Technology Base for ‘Digital Bangladesh * Human Resource Development * Environment and Climate Change * Good Governance, Human Rights and Democratic Polity * Operational Linkage between Planning and Budgeting * Regional / Sub-Regional Economic Integration * Least-Cost National Security * Implementation and Monitoring

The broad development goals underlying the Perspective Plan include:

* building a secular tolerant liberal progressive democratic state; * promoting good governance and curbing corruption; * promoting sustainable human development; * reducing the growth of population; * instituting a prudent macroeconomic policy mix; * promoting a favorable industrialization and trade policy regime; * addressing globalization and regional cooperation challenges; * ensuring adequate supply of electricity and fuel; * achieving food security; * making available adequate infrastructure; * pursuing environmental friendly development and * building a digital Bangladesh.

Lessons of past growth experience

A review of Bangladesh’s past growth experience tells a remarkably encouraging story. In 1972, in the aftermath of the devastation that happened during the war of liberation, the economy lay in shambles. Rough estimates put Bangladesh’s per capita GDP at around US$110. The physical infrastructure was all but destroyed. The economic and financial structure was similarly disarrayed. Unfavorable external environment characterized by the first oil price shock, very high global commodity prices, and low external reserve cushion also accentuated greatly the already difficult economic situation. A sequence of floods and natural disasters in the early 1970s made matters worse. At the close of the 1970s decade, widespread poverty and poor economic outcomes continued to haunt policymakers. Soon it became clear that the course of economic management based on state ownership and control during the 1970s was unsustainable and Bangladesh gradually changed gear to a market-oriented economy with proper government interventions to protect social interests and provide an equitable social environment. This basic change in philosophy has prevailed ever since, with various fines tuning in terms of growth orientation versus social justice.

One remarkable feature is that no government has denied the importance of growth for poverty reduction, but differences have prevailed about the relative roles of public and private sectors and the relative emphasis between agriculture versus manufacturing. The long-term trend in GDP and per capita growth rates by decades is shown in Figure 2.3. A few striking results stand out. First Bangladesh has continued to improve its rate of growth steadily over the past 40 years after independence. Second, one can discern two distinct growth phases. In phase 1 (FY74-FY91), the growth rate expansion was subdued, below 4 percent per annum in aggregate terms and only 1.2 percent in per capita terms. The growth rate 37 expanded significantly in Phase 2 (FY91-FY10), shooting up to over 5 percent per annum on a 10 year average, but importantly exceeding the 6 percent mark for a number of years during FY01-FY10. The expansion of growth did face a break in the wake of the global food, fuel and financial crisis of 2008-10, but this slowdown was fairly moderate by global standards and speaks well of the cautious macroeconomic management by policymakers over a long period. The rising trend of long-term growth gives comfort that even higher growth is possible provided policy reforms further strengthen the determinants of past growth.

Conclusion
The major objectives of planned development have been increased national income, rural development, self-sufficiency in food, and increased industrial production. However, progress in achieving development goals has been slow. Political turmoil and untamed natural hazards of cyclone and flooding have combined with external economic shocks to persistently derail economic plans. Bangladesh's first five-year plan (1973–78) aimed to increase economic growth by 5.5% annually, but actual growth averaged only 4% per year. A special two-year plan (1978–80), stressing rural development, also fell short of its projected growth target, as did the second five-year plan (1980–85), which targeted 7.2% annual growth. The third five-year plan (1985–90) had a5.4% annual growth target though only 3.8% was actually achieved.
In 1991, with the reinstitution of elected government, a new economic program was initiated that included financial sector reform and liberalization measures to encourage investment, government revenue improvement efforts (realized largely through implementation of a value-added-tax), and tight monetary policy. Income transfer measures, Food-for-Work, and other programs were also implemented to help protect the poorest segments of the population from the transitional effects of structural reform. Political turmoil from 1994 to 1996 helped reduce the final average annual growth rate under the Fourth Five Year Plan (1990–1995) to 4.15% (short of the 5% target), albeit the best performance so far under an economic plan. The 1996 elections brought renewed economic stability. Exports grew 14% 1996, and GDP growth for 1996/97 rose to 5.5% as the economy rebounded. Floods during 1998 and 1999 caused some economic slowdown but this was balanced by unprecedented growth in gas production and electricity production sectors. Average annual GDP growth under the Fourth Five-Year Plan rose to 5.3%.
Fiscal year 2000 was marked by a sharp increase in monetary expansion due to unprecedented borrowing from the banking sector (though the sale of treasury bills) to cover budget shortfalls due. Domestic borrowing increased primarily due to the reduced availability of external concessional financing. Historically, Bangladesh has received foreign aid disbursements equivalent to about 6% of GDP, have lately declined to amount equaling 3–4% GDP. Moreover, according to the IMF, much of the domestic borrowing was being used to cover recurrent expenses such as wage and salary increases. The revenue to GDP ratio rose in 2001 from 8.5% to 9.4%, but this improvement was more than offset by expenditure to GDP ratios of 14.4% and 14.1%, creating budget deficits amounting to 5.9% and 5%, in 2000 and 2001 respectively. The drain on foreign reserves from domestic borrowing contributed to reducing the foreign exchange cover for imports to imprudent levels of two months in 2000 and one-and a-half months in 2001.
Changes occurred in the Bangladesh scene both at the level of national politics as well as at the level of development policies and in the strategies pursued by successive regimes. The shifts in development goals and priorities have followed some broad trends: (a) the shift from a self-reliant autarchic goal to integration with the world economy. (b) The shift from public sector to privatization and (c) from a poverty focus to efficiency oriented development (d) governance, gender and human rights (e) modernization and growth versus indigenous development.

Reference 1. Economic Review of Bangladesh 2012 2. http://www.sdnbd.org/sdi/metadata/fifth5-yesr-plan/1.htm 3. http://www.sdnbd.org/sdi/metadata/fifth5-yesr-plan/17.htm 4. http://www.sdnbd.org/sdi/metadata/fifth5-yesr-plan/23.htm

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