Unlike in the developed countries, agricultural sector has not been playing the engine of growth in South Asian countries due to limitations, such as diminishing marginal returns, said Dr Rizwanul Islam, former special adviser to International Labour Organisation's Employment Sector.
Manufacturing sector has been unable to play its part as the drive for growth in Bangladesh, he pointed out, saying that growth of manufacturing output in relation to GDP growth has been higher in ESEA countries compared to South Asian ones.
Dr Rizwanul made the observations while presenting the third public lecture of the Department of Economics and Social Sciences (ESS) of BRAC University (BRACU) at its Mohakhali campus auditorium recently, says a statement.
BRACU's Department of ESS invited Dr Rizwanul to present the lecture on "Economic Growth, Structural Transformation and Employment: Which Pathway?"
Dr Rizwanul started off with the fundamental question of whether there were any alternative pathways to structural transformation other than the common pattern of modernisation observed in developed countries through the shift from agricultural to manufacturing to tertiary sector.
Such questions arise due to the recent experience of South Asia proving to not have the similar pattern of success through industrialisation as well as failure in absorption of the surplus labour.
He focused on the connection between economic growth, productive employment, better living and structural transformation. Drawing on the historical experience of the developed countries and those that recently succeeded in their development efforts, he also discussed the common pattern in their structural transformation and explained the absorption of surplus labour.
By making a comparative analysis of East, Southeast and South Asian countries, he explained the failure in absorption of surplus labour by the latter and addressed questions on alternative pathways to these issues.
Furthermore, he raised questions such as whether the modern sector in dual economy models have to mean manufacturing, or it can be interpreted more flexibly to include other sectors like trade, services, etc. and is transfer of surplus labour from traditional to modern sector synonymous with migration from rural to urban areas or workers may be able to find higher productivity employment in rural (or semi-urban) non-farm activities.
Also, whether answers to the above questions indicate the existence of alternative ways of attaining structural transformation and of reaching the Lewis turning point in dual economies.
Dr Rizwanul started off with the fundamental question of whether there were any alternative pathways to structural transformation other than the common pattern of modernisation observed in developed countries through the shift from agricultural to manufacturing to tertiary sector.
BRAC Chairperson and founder Sir Fazle Hasan Abed, former finance minister M Saiduzzaman, former Bangladesh Bank governor Saleh Uddin Ahmed, Distinguished Fellow at the Centre for Policy Dialogue Dr Mustafizur Rahman and Policy Research Institute Chairman Dr Zaidi Sattar were also present at the programme.
Vice Chancellor Professor Syed Saad Andaleeb presented the opening remarks, ESS Chairperson Professor ATM Nurul Amin moderated the session and Pro-Vice Chancellor Ansar Ahmed PhD gave the closing remarks.
