Ensuring economic security

Threats to economic security of Bangladesh emanate from both internal and external sources. Internal insecurity comes mainly from massive poverty and while the external one originates mainly from the process of globalisation. Substantial dependence on external assistance and smuggling also are two other important sources of economic insecurity.
Bangladesh is a small country with a territory of 1,47,570 square km having a population of about 160 million. It is one of the most densely-populated countries in the world. Shortage of food had been a usual phenomenon. The country now has to import food almost every year at the cost of valuable foreign exchange. This is despite the fact that Bangladesh is making considerable progress in achieving food security, for example, by increasing the annual per capita availability of food grains by 35 per cent over the last 20 years.
However, the population increase and the external shocks may hamper this achievement, as did the price hike in 2008. At the end of 2008, it was estimated that 45 per cent of the country's population was still suffering from undernourishment, while nearly a quarter was facing severe undernourishment having access to less than 85 per cent of the daily requirement.
A low resources base, poor economy, lack of good governance and high incidence of natural disasters, characterise Bangladesh. All these factors have adverse implications on economic growth, poverty situation, food security and hunger. Different sources say that about 20 per cent of the population (32 million) is ultra poor, being defined as absolutely landless people, living on Khas land or lands belonging to others and not having any productive vocation. They face continuous and severe food insecurity and suffer from hunger and malnutrition.
During the last ten to 15 years, there has been a significant diversification in the rural economy. Small trade, services and off-farm processing and manufacturing increased in importance. However, agriculture and fisheries remain critical to the livelihoods of many poor, both for self and wage employment. Further, the process of diversification of the rural economy and livelihood options is still greatly dependent on growth of agriculture and productivity of natural resources including land, water, fisheries, forestry etc.
Bangladesh achieved considerable success in the last two decades in terms of economic growth and progress towards some critical Millennium Development Goals (MDGs). The Gross Domestic Product (GDP) in Bangladesh grew by 6.01 per cent in the fiscal year 2012-2013 from the previous year. Bangladesh was one of several Asian economies enjoying a sustained growth spurt over two decades.
But there is a widespread perception, even in Bangladesh, that in terms of governance and aspects of well-being related to human security, performance has not improved over this period. Some aspects of human security may even be deteriorating. Personal security and the security of property are serious concerns for many Bangladeshis. Political violence and instability also remain persistent drivers of insecurity despite the hopes raised at the time of Bangladesh's transition to democracy in 1991.
There is clearly an anomalous relationship in Bangladesh and in many other developing countries between economic growth and progress towards the MDGs and other aspects of human security. We need a better understanding of these relationships, and in particular of the drivers of a range of critical human security conditions that go beyond governance conditions.      
The definition of social security has been a contentious issue with several connotations of the term being prevalent in the literature on the subject. The interpretation given to the term assumes overwhelming importance as it shapes the type of public policy that is implemented in a country. The issue becomes particularly problematic when the concept is applied to widely diverse situations in differing socio-economic contexts.
The restructuring of the industrial sector in countries like Bangladesh and its consequent change in levels as well as structure of employment generated intense debate among researchers as well as leading international development agencies on meaning of the term 'social security'. Apart from being a large country in terms of population, Bangladesh also has a considerable proportion of the poor about 31 per cent still below the officially declared poverty line. The ongoing programme of economic reforms means considerable restructuring of the manufacturing sector leading to changes in the level as well as conditions of employment, social security and standing.
The persisting internal political instability, political violence, increasing population, entrenched poverty and lack of good governance are posing serious threat to the economic security of Bangladesh. Indeed such problems multiply everyday with added dimensions with the changing atmosphere.
The writer is a retired Professor               of Economics, BCS General                  Education Cadre.  [email protected],             [email protected]