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One Hundred Years of Economic Change in Bengal: Re-Visiting the Economic Life of a Bengal District

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One Hundred Years of Economic Change in Bengal: Re-Visiting the Economic Life of a Bengal District Working Paper June 2011 No. 201 One hundred years of economic change in Bengal: Re-visiting the economic life of a Bengal district Selim Raihan What is Chronic Poverty? The distinguishing feature of chronic poverty is extended duration in absolute poverty. Therefore, chronically poor people always, or usually, live below a poverty line, which is normally defined in terms of a money indicator (e.g. consumption, income, etc.), but could also be defined in terms of wider or subjective aspects of deprivation. This is different from the transitorily poor, who move in and out of poverty, or only occasionally fall below the poverty line. Chronic Poverty Research Centre www.chronicpoverty.org ISBN: 978-1-906433-98-7 One hundred years of economic change in Bengal: Re-visiting the economic life of a Bengal district Abstract In 1910, J. C. Jack, a British Settlement Officer of the then Faridpur district (which is now divided into five districts) of British India, wrote a book entitled The Economic Life of a Bengal District. Jack provided a comprehensive description of the economic life of Greater Faridpur. His description included a detailed analysis on the district, its inhabitants, their homes and manner of life, the composition of the domestic budgets of households, people‟s income and economic conditions, indebtedness and taxation. Now 100 years later, through the use of secondary data, field visits and focus group discussions, this study explores the dynamics of the evolution of the economic life in Greater Faridpur over the last 100d years (1910-2010). Such investigation suggests that there have been large increases in population and population density in Greater Faridpur. There has been important change in the religious composition of the population, with the proportion of Hindu population declining considerably over the decades. There have been significant improvements in physical infrastructure, such as roads and other forms of communication, and social infrastructure, such as health and education. Also, there have been significant changes in the structure of the economy. One hundred years ago, it was predominantly an agro-based economy. Over the years, non- agricultural economic activities have increased considerably. At the household level, important changes are observed in the composition of expenditure on food and non-food items. The major change is noticed in the proportion of expenditure on rice; compared to Jack‟s time the proportion of spending on rice by households declined substantially. A rise in the relative importance of non-rice food items and non-food items in the consumption basket appears to be the major cause behind such a change. Finally, the composition of poverty seems to have been changed in Greater Faridpur. Compared to Jack‟s time, the proportion of non-poor households increased and that of moderate poor declined. The estimate from the Household Survey of 2005 suggests that the proportion of households in extreme poverty in 2005 was higher than that in 1910. Increased landlessness and lack of work opportunities were the major factors behind the rise in extreme poverty. However, in recent years, poverty has seemed to decline, both in the rural and urban areas, because of expanded economic activities in the rural areas, increased work opportunities in the farm and non-farm sectors, a rise in the inflow of remittance money and an increase in different development works. Keywords: Poverty, Bengal, Faridpur, Economic life, J.C. Jack 2 One hundred years of economic change in Bengal: Re-visiting the economic life of a Bengal district Acknowledgements The author expresses sincere thanks to the Chronic Poverty Research Centre, University of Manchester, UK, for initiating and financing this study. The personal and professional support and encouragement of Professor David Hulme of University of Manchester, UK, are sincerely acknowledged. A draft of this paper was presented at the International Conference on „Ten Years of War Against Poverty: What have we learned since 2000 and what should we do 2010-2020?‟ organised by the Chronic Poverty Research Centre, University of Manchester, UK, 8-10 September 2010. The author is grateful to the participants of this conference for their comments and suggestions. Especially, sincere thanks go to Professor David Hulme of University of Manchester, Dr Anirudh Krishna of Duke University, Dr Syed Hasmi of BRAC, Dr Imran Matin of BRAC and Dr Richard Marshall of UNDP Bangladesh. The author is thankful to Mr. S. M. Abdullah, Ms Salina Siddiqua and Mr Syed Helal-Uddin for their excellent research assistance to accomplish this study and to Mr Ashibur Rahman and Mr Pear Ali for their assistance with administrative arrangements during the course of this study. Dr. Selim Raihan is an Associate Professor in the Department of Economics, University of Dhaka, Bangladesh. Email: [email protected] This document is an output from the Chronic Poverty Research Centre (CPRC) which is funded by UKaid from the UK Department for International Development (DFID) for the benefit of developing countries. The views expressed are not necessarily those of DFID. The CPRC gratefully acknowledges DFID’s support. 3 One hundred years of economic change in Bengal: Re-visiting the economic life of a Bengal district Contents List of tables ........................................................................................................................ 5 List of figures and boxes .................................................................................................... 6 1 Introduction ..................................................................................................................... 7 2 Changes in socio-economic conditions of Greater Faridpur ....................................... 9 2.1 Area and population...................................................................................................................... 9 2.2 Religion ....................................................................................................................................... 10 2.3 Economic activities ..................................................................................................................... 11 2.4 Communication ........................................................................................................................... 12 2.5 Housing ....................................................................................................................................... 14 2.6 Education .................................................................................................................................... 16 2.7 Women's empowerment ............................................................................................................. 17 3 Changes in the socio-economic conditions of the households ..................................19 3.1 Major occupations of the households ......................................................................................... 19 3.2 Composition of the budget among different houshold groups .................................................... 20 3.3 Extent of poverty ......................................................................................................................... 25 3.4 Financial service ......................................................................................................................... 27 2.5 Collection of revenue and local development ............................................................................. 29 4 Conclusion ......................................................................................................................31 References ..........................................................................................................................32 4 One hundred years of economic change in Bengal: Re-visiting the economic life of a Bengal district List of Tables Table 1: Size and growth rate of population since 1911 Table 2: Density of population of Greater Faridpur in 2010 (estimates) Table 3: Length of road of Greater Faridpur by road classification in 2009 under Roads and Highway Department (kilometres) Table 4: Percent of households with different number of rooms in 2005 Table 5: Separate kitchen of dwelling (% of households) in 2005 Table 6: Main construction material of the roof (% of households) in 2005 Table 7: Main construction material of the walls (% of households) in 2005 Table 8: Literacy rate of persons aged seven years and above of Greater Faridpur Table 9: Number of schools and colleges in Greater Faridpur in recent years Table 10: Number of health facilities in Greater Faridpur Table 11: Percent of households involved in different activities in Greater Faridpur in 2005 Table 12: Shares of expenditure on food and non-food Items by agricultural households in Greater Faridpur in 1910 Table 13: Share of expenditure on food and non-food items by agricultural households in Greater Faridpur in 2005 Table 14: Share of expenditure on food and non-food items by non-agricultural households of Greater Faridpur in 1910 Table 15: Share of expenditure on food and non-food items by non-agricultural households in Greater Faridpur in 2005 Table 16: Percentage of households living in different economic conditions in 1910 Table 17: State of poverty in Greater Faridpur in 2005 (% of households) Table 18: Bank deposits in Greater Faridpur (million taka) Table 19: Bank advances of Greater Faridpur (million taka)
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