The Metropolitan Chamber of Commerce Industry (MCCI) has called for a well-coordinated approach, supported by allocation of financial resources and requisite institutional mechanisms, to address the problems in the areas hit by the natural disasters — floods and cyclones Sidr — not only for humanitarian but also for overall economic reasons.

In an editorial comment in the latest issue of its monthly publication, Chamber News, the chamber noted the country’s economy is faced with severe challenges. “The two floods in the northern districts and the recent devastating cyclone in the south and south-western districts caused incalculable damage, to life and property. Besides loss of lives of thousands of people, widespread damage has been caused to standing crops, rural infrastructures, livestocks, fisheries, forest resources, etc. Now that the survivors of cyclone are duo to re-start the life shortly, they will, find opportunities for livelihoods to be limited. As it happens in such a situation, devastated rural economy has its adverse impact on business. The business community, therefore, expects that highest, administrative priority will continue to be given to solution of the problems in the affected areas not only for humanitarian reasons”, it said.

It observed: “The Government’s decision to set up a co-ordination centre to effectively carry out relief activities yielded satisfactory results in reaching relief operations. A similar co-ordination centre/cell for the post-disaster rehabilitation of non-farm activities in the affected areas, in our opinion, should help create livelihood opportunities. Time and again it has been proved that people in all walks of life, particularly those in the rural areas, are resilient. There is thus no reason as to why the rehabilitation challenges will note overcome at the earliest.”

It said: “What is needed is well-coordinated plans and programmes for rehabilitation of agriculture as well as non-farm activities. Side by side with supply of requisite inputs like seeds, fertiliser, pesticides, diesel, etc., it is most essential to provide financial/institutional marketing and other supports to non-farm activities in the affected districts.

“In fact, rural non-farm (RNF) activities can immediately start providing employment to the poor. The impact should be widespread as RNF activities traditionally account for 40% of rural employment and as the recent years indicate, it grew by nearly 5.0% per annum. Its share in the country’s GDP also increased steadily to 42% in 2006-2007 as compared to 21.1% of the agriculture sector’s contribution”, it added.

The MCCI pointed out: “Fisheries and livestock sectors both have been growing at a robust rate of over 7.0%, and contributed substantially to improve performance of the agriculture sector and the over-all rural economy. Their contribution was 49% of agricultural income in the year 2006-2007 as compared to only 20% in 1973-1974. Different studies show that employment in the rural non-farm, sector increased by 4.5% per year while the number of workers employed in the agriculture sector declined by 1.2% per year. In 2006-2007, 62% of the earning members of the households reported RNF activities as their primary occupation and another 14% as secondary occupation, which means that over 75% of the rural workers were engaged in rural non-farm activities.”

“Presently, rural non-farm activities are limited by two factors — policy impediments and market constraints. Under the physical head, constraints arising from infrastructure, electricity, equipment, technical know-how, inadequate credit, irrational tax structure, etc., are the major ones. Market constraints cover a number of issues, particularly quality and price competitiveness. Accordingly, addressing the foregoing issues through policy and implementation co-ordination is a major requirement for revival, of RNF activities in the affected areas and thereby providing employment to the affected people”, it concluded.