E,LE CP YDV Appraisal of an Agricultural and Rural ......Report No. 680b-BD E,LE CP YDV Appraisal of an Agricultural and Rural Training Project in Bangladesh February 18, 1976 Education

Report No. 680b-BD E,LE CP YDVAppraisal of anAgricultural and Rural Training Projectin BangladeshFebruary 18, 1976

Education Projects DivisionEast Asia and Pacific Region

FOR OFFICIAL USE ONLY

International Bank for Reconstruction and DevelopmentInternational Development Association

This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may nototherwise be disclosed without World Bank authorization.

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/ICURRENCY EQUIVALENTSX-

Currency Unit = Bangladesh Taka (Tk)US$1 = Tk 13.0Tk I = US$0.077Tk 1,000 = US$76.92Tk 1,000,000 = US$76,923

MEASURES

I m = 3.28 ft1 m2 = 10.76 sq ft1 km2 = 0.39 sq mi1 hectare = 2.47 acres

FISCAL YEAR

July 1 - June 30

/1 The taka is officially valued at 29.9844 to the pound sterling, Thepound now floats relative to the US Dollar and, as a consequence, theTaka-US Dollar rate is subject to change. The exchange rate used inpreparing the data for this report is Tk 13.0 to US$1, the rate pre-vailing at the time of preparing the report.

BANGLADESH FOR OFFICIAL USE ONLY

APPRAISAL OF AN AGRICULTURAL AND RURAL TRAINING PROJECT

Table of Contents

Page Nos.

GLOSSARY

BASIC DATA

SUMMARY AND CONCLUSIONS .................. ........... e..*e i - iii

Is INTRODUCTION ............. , 1

II. RURAL INSTITUTIONS ................ 2

Socio-Economic Background 2Rural Institutions .... 3

The Agriculture Extension Service ........ 3Bangladesh Academy of Rural Developmentat Comilla 4

The Integrated Rural Development Program . 5Agricultural Credit Services 5

III. THE RURAL TRAINING SYSTEM 6

General 6Agricultural Extension Training 6

BAU 6AETIs 7Farmer Training .......... 7

Credit and Cooperative Training 8BA RD se***99eeo***** 8Cooperative College .......... 8Zonal Cooperative Training Institutes 8Model Farmer Training 8.............. 8

IV. PLANS AND PROGRAMS FOR RURAL TRAINING ............ es 9

Plans 9Constraints 10A Rural Training Strategy 10National Committee on Rural Training 11Agriculture Extension Program 12A Training Program for Credit and Cooperatives. 13

This report is based on the findings of an appraisal mission to Bangladeshin July, 1974, composed of Messrs. R. Johanson (mission leader), O.P. Gautam(agricultural educator), Ms. K. Marshall (economist), Messrs. K. Shedden(architect), J. Hansson (agricultural extension specialist - consultant),and W. Ward (agriculture information specialist - consultant).

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Page No.

V. THE PROJECT ......................., .................... 14

Project Content .................. **W... ..... * 14Project Components........ 15Farmer and Field Level Trials . ........ 17Technical Assistance ........... 18

VI. PROJECT COST, FINANCIAL PLAN AND IMPLEMENTATION 20

Project Costs ....... .......... 20Financing .... .... .......... 21Implementation 23Procurement ........ .. .... 24Disbursement ......................... 25

VI. BENEFITS AND JUSTIFICATION .......................... 25

VIII. AGREEMENTS REAClED .................. ............ 27

APPENDICES

1. Agricultural Extension and Thana Training

2. The Rural Training System

3. Staff Requirements for Rural Institutions

4. Field and Farmer Level - Studies and Trial Phase

5. Technical Assistance

ANNEXES

1. Comparative Education Indicators

2. Rural Training Requirements 1974-80 - Local Government, RuralDevelopment and Cooperatives

3. Ministry of Agriculture: Projected Requirements for Field Staff,1974-82

4. Existing Training Programs for Rural Development

5. Budgetary Provision for Rural Training - 1973/74 - 1974/75

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6. Public Expenditure on Education and Training

7. First Five Year Plan: Provision for Rural Training

8. Bangladesh Agricultural University: Intake, Enrollment, Outputby Faculty 1966/67 to 1979/80

9. Agricultural Training Institutes - Output of Diploma Holders,1975-1985

10. Agricultural Training Institutes - Output of In-Service TrainingCourses

11. Summary of Estimated Project Costs by Components

12. Estimated Project Costs by Categories of Expenditure

13. Contingency Allowance

14. Estimated Schedule of Disbursements

CHARTS

1. Organization of the Ministry of Agriculture (9082)

2. Organization Chart: Rural Development and Cooperatives (9080)

3. Structure of the Education and Training System (9081)

4. Implementation Schedule

MAP

Map of Bangladesh (showing Project Institutions)

GLOSSARY

Academy Bangladesh Academy for Rural DevelopmentAETI Agriculture Extension Training InstituteAIS Agriculture Information ServiceAman Crop season for rice production, accounting for 60%

of annual rice acreage and production (April-Nov.)ARPP Accelerated Rice Production ProgramATI Agriculture Training InstituteBAISSC 1/ Bangladesh Agricultural Inputs, Supplies and

Services CorporationBAU Bangladesh Agricultural University at MymensinghBKB Bangladesh Krishi Bank (Bangladesh Agricultural

Development Bank)BRRI Bangladesh Rice Research InstituteCARE Cooperative for American Relief EverywhereCERI Central Extension Resources InstituteC.O. (Devel-opment) Circle Officer, Development - general administrative

officer at thana levelFFYP First Five Year Plan (1973-78)IRDP Integrated Rural Development ProgramJEA Jute Extension AgentMOA Ministry of AgricultureNCRT National Committee on Rural TrainingODM Overseas Development Ministry (UK)PIU Project Implementation UnitRDTI Rural Development Training InstituteSIDA Swedish International Development AuthorityTAO Thana Agriculture OfficerTCCA Thana Central Cooperative AssociationTEO Thana Extension OfficerThana Administrative unit below District (average 180,000

population)TIP Thana Irrigation ProgramTTDC Thana Training and Development CenterUAA Union Agricultural AssistantUnion Administrative unit below the thana (average 18,000-20,000

population)VEA Village Extension AgentZonalInstitute Zonal Cooperative Training Institute

1/ BAISSC was renamed Bangladesh Agricultural Development Corporation (BADC)in January 1976.

BANGLADESH

BASIC DATA/

Area 141,131 km2

Total Population (mid-1973) 75 million (Est)

Annual Growth Rate 3% (Est)Rural Population as % of total 90% (Est)Engaged in Agriculture as % of total 75% (Est)

Enrollment Ratios (1973, including overage students)

Primary Schools (% age group 6 - 10) 56%Lower Secondary Schools (Z age group 11 - 13) 17%Higher Secondary Schools (% age group 14 - 15) 6%

Adult Literacy Rate 23% (Est)

Expenditures on Education and Training

Percent of Central Government Expenditure (1969/70) 20.2%Percent of GDP (1969-70) 1.2 (Est)Expenditure for Rural Training:

% of Central Government Expenditure less than 1.0

Administrative Units (Number)

Divisions 4Districts 19Sub-divisions 62Thanas 413Unions (approx)4,500Villages (approx) 65,000

/1 See Annex 1 for Comparative Education Indicators.

BANGLADESH


SUMMARY AND CONCLUSIONS

i. This report appraises an agricultural and rural training projectfor Bangladesh for which an IDA credit of US$12.0 million equivalent isproposed. Education and training are presently receiving assistance underCredit 407-BD of 1973, which reactivated two former projects in East Pakistan,under which the government is completing the Bangladesh Agricultural University(BAU) at Mymensingh, and fourteen technical training institutes. Projectimplementation has been delayed by difficulties over a contract for profes-sional services, now resolved, shortages of building materials, and shortageof counterpart funds.

ii. Increased agricultural production is vitally important to thewell-being of the 75 million people of Bangladesh, 90% of whom live in ruralareas. This increased production depends on an adequate supply of inputs,including seeds, fertilizer, pesticides, credit, and technical advice on howto use them. While a complex system of rural institutions in Bangladeshattempts to provide these services, it functions poorly. The agriculturalextension service has been ineffective because of obsolete programs divorcedfrom the latest research, inadequate materials from the information service,poor conditions of service for staff and an ineffective field level organiza-tion. The Integrated Rural Development Program (IRDP) is overextended andunderstaffed, as are agricultural credit services, which also suffer fromlow repayment rates and poor management. The ineffectiveness of these ruralservices can be attributed to inadequate funding, poor organization and tountrained or poorly trained staff. The proposed project addresses the needfor better training of rural staff.

iii. Rural training is provided at the following main institutions:the Agricultural University, the Comilla Academy for Rural Development,Agriculture Extension Training Institutes (AETIs) and Thana Training andDevelopment Centers (TTDCs). These institutions have made valuable contri-butions in the past, but are inadequate to meet present and future ruraldevelopment requirements. Furthermore, rural training institutions havegrown haphazardly and with frequent overlapping activities and under-utili-zation of facilities; better coordination is required among them. Middle-level (technician) training has been seriously neglected. Many institu-tions suffer from physical damage, dislocation and loss of staff due tothe war, and from poor teaching and inadequate funding of training pro-grams.

iv. The First Five Year Plan (FFYP, 1973-1978) provides measures toovercome many of the present weaknesses in the rural training system, in-cluding expansion and improvement of training institutions. However, rapidinflation and revenue constraints have led the government to reevaluate theplan and reduce many of its proposals. Within these limits it is possibleto identify a strategy for improving the rural training system. The strat-

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egy, agreed by the government, conisists of three parts: a National Commit-tee on Rural Training (NCRT) has been established within the Ministry ofPlanning to integrate rural traini.ng policies and prepare a comprehensiveplan for strengthening the rural t:raining system; studies would prepare forfundamental changes in the organization of agricultural extension and thepattern of farmer training; and immediate steps would be taken to meet ob-vious needs for better programs, information and training.

v. Within the context of this overall strategy, the proposed projectaims at increasing agricultural production by bringing farmers more effectiveextension, cooperative and credit services. This long term objective wouldbe attained in two phases. The initial phase would stress improvements incoordination and training at the national level. A second phase, to beplanned during the first phase, would provide for better organization ofservices and training to farmers at the local level. The proposed projectincludes:

(a) construction, furnishing and equipping new and expandedtraining institutions:

StudentInstitutions Places

- Graduate In-service Unit (BAU) 1 60- Agricultural Training Institutes 7 1,240- Field Extension Facilities in 15

thanas - -- Regional Academy - Bogra 1 80- Thana Training Units 15 450

(b) financing of in-service training for present extensionpersonnel; and

(c) techaiical assistance for the National Committee on RuralTraining.

vi. Under the project, a Graduate In-Service Training Unit would beconstructed at the Bangladesh Agricultural University (BAU) to improve thetraining of professional agriculturalists and link the university betterwith field problems. Seven Agricultural Training Institutes (ATIs) wouldbe assisted by expanding four existing AETIs, and transferring three AETIsto new locations. The AETIs would be upgraded to ATIs to signify theirbroadened role in supplying trained middle level agricultural workers fora variety of agencies. In-service training of existing extension workersin high yielding rice varieties would be financed to make an immediate impacton rice production. A Regional Rural Development Academy, patterned afterthe Comilla Academy, would be constructed at Bogra to conduct research onlocal development problems and train staff of IRDP. A second phase projectwould be planned under the proposed project by studying the field organiza-tion of the extension service and establishing experimental thana training

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units and extension centers in 15 thanas. The project would include technicalassistance to complement that provided by other international and bilateralagencies.

vii. The total cost of the project is estimated at US$16.5 million,corresponding to US$16.2 million net of duties and taxes, with a foreignexchange component of US$8.2 million equivalent or 50% of the total proj-ect cost. The proposed IDA Credit would finance 74% of total project costs,net of duties and taxes, including 100% of the foreign exchange componentand 48% of local currency costs.

viii. A National Committee on Rural Training, comprising representativesof all concerned ministries and agencies has been established under the Min-istry of Planning to coordinate, review and assess the progress of ruraltraining programs. A Project Implementation Unit (PIU) establishedwithin the Ministry of Agriculture would be responsible for the administra-tion and financial control of project implementation and liaison with IDA.The proposed project would be implemented in about five and a half yearsafter the date of effectiveness.

ix. Contracts would be grouped to form attractive bid packages. Con-tracts for civil works exceeding US$500,000, for building materials exceed-ing US$50,000 and for equipment and furniture exceeding US$25,000 would beawarded on the basis of international competitive bidding in accordancewith IDA guidelines. Contracts below these respective amounts would beawarded without prior IDA approvaal following competitive bidding adver-tised locally in accordance with government procurement practices accept-able to IDA. Under international competitive bidding local contractorsand local manufacturers would be allowed a preferential margin of 7.5% oncivil works, and of 15% on the c.i.f. cost of equipment and furniture, re-spectively, over competing foreign bidders. Small equipment and furniturecontracts (less than US$10,000) could be procured through local shoppingsubject to a combined total of US$250,000.

x. The proceeds of the proposed IDA Credit would finance 100% of theforeign cost of imported building materials, furniture, equipment and tech-nical assistance, or 70% of these categories if locally obtained; 60% ofcivil works contracts; and 60% of expenditures on in-service training.

xi. The proposed project constitutes a suitable basis for an IDACredit of US$12.0 million to the Government of Bangladesh on standardIDA terms.

BANGLADESH


I. INTRODUCTION

1.01 The shortage of trained manpower is an important impediment torural development in Bangladesh. An urgent requirement is to extend tothe estimated eight million small-scale farmers modern agricultural tech-niques that would permit them to increase agricultural production. Thisprocess would be facilitated by a competent, technically qualified staffin the field services of government agencies involved in rural develop-ment and effective communications systems in rural areas. The strength-ening of training programs, both non-formal programs directed at farmersand specific skill training for staff of rural institutions, is a priorityrecognized by the government of Bangladesh.

1.02 This report presents the findings of a mission which visitedBangladesh during July 1974, to appraise an agricultural and rural train-ing project. The project was prepared by the Government with assistancefrom an FAO/IBRD (Cooperative Program) identification/preparation missionin March 1974. The project request proposed a comprehensive approach tothe problem of rural training and included financing of facilities forfarmer training and extension, and development of several types of insti-tutions for training the intermediate level personnel of rural developmentprograms. During appraisal, and in agreement with the Government, the pro-posed project was modified to (a) defer any major expansion of field levelfacilities pending further study and trial, (b) secure some of the re-quired technical assistance from other agencies, (c) add immediate in-service training for existing extension staff, and (d) exclude expansionfor the Rural Development Training Institute and a proposed LivestockAssistants Institute. After appraisal the Government secured financingfrom other sources for two items in the proposed project: the CentralExtension Resource Institute (Government of Japan), equipment and technicalassistance for the Agriculture Information Service (UNDP/FAO). Constructionof the Zonal Cooperative Training Institutes and technical assistance forthe Zonals and the Cooperative College is currently under consideration bySIDA, and consequently has also been deleted from the project. As a result,the project would now cost an estimated total US$16.5 million equivalent,with a foreign exchange component of US$8.2 million.

1.03 The proposed agricultural and rural training project would bethe second education and training project in Bangladesh assisted by theWorld Bank Group. The first, Credit 407-BD of June 7, 1973, reactivatedtwo former projects in East Pakistan under Credits Nos. 49-PAK (March 25,1964) and 87-PAK (June 17, 1966), and is assisting the Government in com-pleting the development of (i) the Bangladesh Agricultural University atMymensingh, and (ii) the construction or equipping of fourteen technicaltraining institutes. Project implementation has been delayed due to diffi-culties in renegotiating pre-war contracts for professional services and

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shortages of building materials. Most contracts have now been signed andthe general scarcity of building materials has eased. The project hasexperienced substantial cost overruns caused by price inflation; reduc-tions in project scope are currently under consideration.

1.04 The proposed agricultural and rural training project would supporta proposed Rural Development Project which is expected to be ready for pre-sentation to the Executive Directors this year.

II. RURAL INSTITUTIONS

Socio-Economic Background

2.01 Bangladesh is among the poorest (per capita income about US$85)and most densely populated (1,400 persons/sq mi) countries in the world.Tne population of 75 million, increasing at about 3% p.a., is crowded intoan intensively cultivated deltaic plain, subject to severe flooding anddrought. Some 90% of the population is rural and about 80% are illiterate.Economic development is difficult, for natural resources are limited andenvironmental conditions complex and often treacherous. The new nationhas faced a continuous struggle to contend with a series of disastersand to prevent its people from becoming still poorer.

2.02 The economy of Bangladesh ;s dominated by agriculture. About30% of the rural labor force is directly engaged in agricultural activities,predominently rice and jute cultivation. In recent years agricultural out-put has contributed between 55% and 58% of the GDP and exports of raw juteand jute goods contributed between 75% and 87% of total foreign exchangeearnings. However, growth of the agricultural sector has not kept pace withthe population growth. In 1972-73 the government had to import 2.8 milliontons of food grain at a cost of US$360 million to feed its people. A toppriority for development in Bangladesh is to grow enough food to feed theexpanding population and to develop an agricultural base to support diver-sified economic growth.

2.03 Bangladesh is a nation of an estimated eight million small farmers;their average land holdings are under three acres. Agriculture is intensive,with almost all suitable land under cultivation, but overall yields could beimproved markedly by adopting the new technologies which have been developedin Bangladesh and elsewhere. The most important of these technologies arehigh yielding rice varieties developed at the International Rice ResearchInstitute in the 1960s. Use of one variety, IR-20, grew from 167,000 acres(less than 2% of the transplanted ama:a 1/ area) in 1970/71 to an estimated0.5 million acres in 1973/74 (5% of tie transplanted aman area). Furtherexpansion of these new technologies requires more inputs, e.g., seeds andfertilizer, and technical advice on how to use them.

1/ See glossary.

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Rural Institutions -/

2.04 A complex system of rural institutions provides services to farmers.At present, however, most rural development programs function poorly. Farmerscomplain that they must see a different official for every problem, that theycannot get needed advice and assistance and that vital inputs are scarce orunavailable. These problems can be attributed in part to dislocation result-ing from the war and the transition to independence, world-wide shortageand price escalation of fertilizers, aggravated by a series of natural di-sasters and poor harvests. However, a fundamental problem is the multitudeof institutions, government agencies, autonomous bodies and private interestswhich are involved in rural development services. Eleven ministries includ-ing about 40 directorates have responsibilities for bringing services tofarmers and their efforts in general have been poorly coordinated, both atthe central and field levels. At the thana 2/ level, between 12 and 20officers, most with subordinate staff, represent these agencies. Thereis an urgent need for a clearer definition of responsibilities and for in-tegrating of services which are now fragmented, overlapping and even com-petitive. Recent expansion of rural programs has stretched thinly availa-ble staff capabilities. Upgrading of staff competence through training isnow urgently required.

2.05 The Agriculture Extension Service, under the Directorate of Agri-culLure (Extension and NIaaagement), is the basic vehicle for providing tech-nical advice to farmers. It functions at the division, district, subdivi-sion, thana and union levels and employs about 4,200 Union AgriculturalAssistants (UAAs) as field extension workers. They are supervised by 413Thana Agriculture Officers (TAOs) (Chart 9082). The present field servicesare largely ineffective. Extension programs tend to be obsolete and diffuse,seldom focusing on a specific attainable objective, such as introducing aparticular crop or practice in a defined zone. The technical advice givenby extension workers is often five years behind practical research findings.Few extension staff have received adequate training; many were transferredfrom other departments with minimal consideration of aptitude or adequatepre-assignment training.

2.06 Terms of service for extension workers are poor, including lowsalaries, lack of opportunities for advancement and lack of housing. 3/The organization of the extension service is weak. UAAs must cover anaverage of 10 sq mi and 2,000 farm families without transport or adequatesupervision. In addition, field staff have been burdened with extraneousresponsibilities, as collection of census data. Many UAAs spend less than

1/ See also Appendix I.

2/ See glossary.

3/ Many UAAs are obliged to live with the more prosperous farmers anddevote inordinate attention to their problems.

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half their time on agricultural work. An effective and professional exten-sion service to support rural development programs would require better ex-tension programs, communication materials, staff training and a reorganizedfield service.

2.07 Parallel with the extension service, a set of specialized juteextension assistants (JEA) has been developed since 1971 within the Min-istry of Agriculture (Chart 9082). These JEAs are farmers who, afterbeing trained at TTDCs (para 3.10,), are now full-time government employees.The creation of this separate service results in farmers having to consultat least two extension agents (few farmers grow only jute). There are1,400 JEAs and a service of 2,250 is planned. The possible advantagesof integrating the JEAs into the general extension service should beconsidered. Furthermore, a separate wing of the Directorate of Agricul-tural Extension is the plant protection service, which functions at districtand thana levels. Part of the 1,400 workers it employs deals with exten-sion. As plant protection is highly seasonal, the possibility of graduallymerging these workers into the general extension service should also beconsidered.

2.08 Bangladesh Academy of Rural Development at Comilla. Establishedin 1959, the Comilla Academy pioneered many programs which have influencedthe government's policies for rural development. The Comilla approach isbased on the use of the thana as the focus of development activities.Thana-level programs introduced at Comilla, and subsequently extended toother parts of Bangladesh, include:

- Thana Training and Development Centers (TTDCs), which havebeen constructed in approximately 250 out of 413 Thanas,and accommodate officers of the key departments at thanalevel;

- the development of a two-tier cooperative structure as avehicle for integrated rLral development; village cooperativesocieties are federated in a Thana Central Cooperative Asso-ciation (TCCA);

- the Thana Irrigation Program (TIP), based on cooperativepump groups;

- the Rural Works Program, introduced from Comilla as avehicle for involving local communities in developmentprograms and for making use of underemployed, oftenlandless, rural labor; and

- farmer training at the TTDC for TIP and the TCCA.

2.09 Two important aspects of the Comilla experiment and the programsderived from it are the essential role of farmer training and the vitalimportance of developing institutions to stimulate rural development. Thework of the Academy has been widely acclaimed and has contributed to evolvingnew approaches to rural development in Bangladesh. The Comilla program ex-perienced impressive initial results, but discipline in the cooperativesgradually deteriorated and repayments suffered. Because of the extensiveactivities of the Academy in the Comilla region it is no longer possibleto conduct many types of research there. In retrospect, the greatest bene-ficiaries have generally been the wealthier farmers, who tend to dominatenew as well as old institutions, and currently only about 25% of ruralfamilies are being reached through cooperatives. The initially successfulnon-formal education programs introduced at Comilla have shown some deterior-ation. Nevertheless, the Comilla concept is viable and it demonstrates theneed to experiment further with rural institutions and to try innovativeprograms for rural development.

2.10 The Integrated Rural Development Program (IRDP) (Chart 9080):The IRDP is an effort to extend some of the programs and concepts devel-oped at Comilla on a nation-wide scale. Established in 1970, the IRDPhas now established TCCAs in 152 thanas where its primary activity isthe organization of Comilla-style cooperatives at village and thanalevel. The objective of the program is to use the cooperative insti-tutions as a mechanism for coordinating and integrating services tofarmers, including credit, inputs, marketing and rural works activities.

2.11 The IRDP program is ambitious and, at present, over-extended andunder-staffed. At thana level, there would be advantages to coordinatingIRDP activities with those of other rural development programs, in partic-ular, those of the Directorate of Agricultural Extension with which thereis now some confusion over roles.

2.12 Agricultural Credit Services. While institutional agriculturalcredit is available to farmers through the cooperative system, from theBangladesh Krishi Bank, and from the commercial banking system, it isestimated that 85% of rural credit comes from non-institutional sources.The government has emphasized the provision of credit through cooperativesin its rural development prcgrams. Basic responsibility for couperativesresides with the Cooperative Directorate, which is part of the Ministry ofLocal Government, Rural Development and Cooperatives. A distinction ismade between "traditional" cooperatives, of which there are approximately24,000, and "newt cooperatives, based on the Comilla model. The systemof agricultural credit has functioned poorly and, apart from the initialsuccesses at Comilla repayment has been low and operations inefficient.One factor contributing to this situation is the lack of trained staff.Agricultural credit employs field staff in three categories: the Coop-erative Department has approximately 2,200 staff, the TCCAs about 2,000,and the Cooperative Banks about 1,000 in 1974. Of these, roughly hlalfhave received no basic training, and arrangements for in-service trainingare inadequate. The most serious problem is intermediate level staff.

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III. THE RURAL TRAINING SYSTEM

General

3.01 The main rural training institutions of Bangladesh, including theAgricultural University, the Comilla Academy of Rural Development, Agri-cultural Extension Training Institutes, and Thana Training DevelopmentCenters, have made valuable contributions in the past but are not adequateto meet present and future rural development requirements. Rural traininginstitutions have grown haphazardly. Small, single-purpose training institu-tions have proliferated, administered by the agencies or programs concerned,with frequent overlapping activities and under-utilization of facilities(Annex 4). Bangladesh urgently needs to establish effective coordinatingmechanisms for rural training which would enable the government to rational-ize the rural training system through a comprehensive and coordinated approach.

3.02 Overall training requirements for the rural sector have not beenadequately assessed, resulting in a serious neglect of middle level (tech-nician) training. At the university-degree level, enrollments in agricul-ture constitute 10% of total enrollments. At intermediate or diploma level(Chart 9081), however, students in rural subjects (e.g, agriculture, creditand cooperatives) account for less than one percent of total enrollments.This imbalance must be corrected if rural institutions are to be staffedwith properly trained middle level personnel.

3.03 Existing training institutions do not function well. Many stillsuffer from physical damage, dislocation, and loss of staff resulting fromthe war and the transition to independence. Teaching is overly theoreticalin most institutions and many have become increasingly isolated from thepractical requirements for rural development. Teachers are generally poorlytrained and underpaid. Existing institutions and programs do not usuallyreceive adequate funds to operate efficiently. Total allocations for ruraltraining 2/ constituted only about 1% of all recurrent expenditures votedfor 1974-75. In strengthening the rural training system, high priorityshould be accorded to improvements in existing institutions.

Agricultural Extension Training

3.04 Bangladesh Agricultural University, Mymensingh (BAU). Establishedin 1961 and administered by the Ministry of Education, the University pres-ently employs about 250 teaching staff, the majority (60%) foreign trained.The present enrollment of about 2,800 is distributed among six faculties:

1/ See also Appendix 2.

2/ Estimates of budgetary provisions for rural training are given inAnnexes 5, 6 and 7.

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agriculture (28%), veterinary science (24%), animal husbandry (20%), agri-cultural economics (8%), agricultural engineering (12%) and fisheries (8%)(Annex 8). Each faculty offers a bachelors and a masters degree program.The proposed regular doctoral program has not yet started. The annual out-put of first level graduates has increased rapidly from 230 in 1971 to 610in 1974, mainly due to tripling of graduates from veterinary science andanimal husbandry. The present enrollment of post-graduates is about 200and annual output about 50. Most graduates have readily found employment,mainly as staff for the government's rural institutions, in research workor in the tea and sugarcane plantations. However, the relevance of BAU'steaching has been increasingly questioned by government authorities andother employers. The First Five Year Plan (FFYP) explicitly criticizedBAU for its theoretical, out-of-date teaching and its isolation from prac-tical problems of rural development. This isolation stems partly frominappropriate training, and lack of involvement with research and follow-uptraining of graduates. A draft development plan has been prepared for BAU,but it does not address these basic issues. The Bank Group has been attempt-ing under Credit 407-BD (para 1.03) to involve the University more in researchand extension and is continuing the dialogue with BAU on a revised develop-ment plan.

3.05 The principal institutions for training middle level agriculturalworkers are the Agriculture Extension Training Institutes (AETI). EightAETIs currently have a capacity of about 900 students and an annual outputof about 400 in a two-year diploma course. The pattern of training wasrecently changed from two years of full time training to three years, in-cluding five-month training at the AETI followed by seven months supervisedfield work at the thana level each year. The current enrollment is only220. This arrangement is viewed as a temporary expedient, and the govern-ment has decided to return to the two-year diploma course. About a thirdof the graduates find employment as technicians in agencies other than theagriculture extension service, such as BAISSC, IRDP, and research institu-tions. The AETIs are small, enrollments range from 80 to 150 students, withcorrespondingly uneconomical use of teaching staff and facilities. Mostbuildings and teaching facilities are inadequate and only half the institu-tions have sufficient farmland for practical teaching. The present curricularequire a third of the time for practical studies but, due in part to lackof farmilan, teaching remains mostly theoretical. Taachers are underpaidand poorly trained. Arrangements for in-service training of extension staffhave been haphazard and inadequate. To fulfill their important role in sup-plying middle-level agricultural manpower, the present AETIs must be broad-ened in scope and strengthened in quality.

3.06 Little farmer training now takes place in Bangladesh because ofthe ineffectiveness of the two existing farmer training programs. The ex-tension service, one approach to farmer training, has broad infrastructurebut lacks adequate programs and a delivery system (para 2.05). The otherapproach to farmer training in Bangladesh has focused on training groupleaders, such as model farmers and village cooperative managers (alsofarmers), at Thana Training and Development Centers (TTDCs), originallydeveloped at Comilla (paras 3.10 and 3.11).

Credit and Cooperative Training

3.07 The Bangladesh Academy of Rural Development at Comilla (para 2.08)has undertaken the training of personnel at all levels but is regarded inBangladesh as an institution of higher learning. The Academy has 38 teach-ing and research staff and a capacity for 130 trainees at any one time. Itstwo principal problems are recent loss of experienced staff and lack ofclearly defined training functions. Because of its leadership in the fieldof rural development, the Academy is called upon to give many courses whichcould more efficiently be given elsewhere. The Academy now conducts:

(a) pre-service and in-service training for IRDP fieldofficers (project officer, deputy project officerand accountant);

(b) pre-service courses for TCCA staff (e.g., inspectorsand assistant inspectors);

(c) training for TCCA managing personnel; and

(d) short (one-week) orientation for thana-level officersfrom other ministries.

The Academy should allocate much of its l'wer level training to otherregional institutions, thereby economizing on training costs and freeingfacilities for higher priority training.

3.08 The Cooperative College, located on the campus of the ComillaAcademy, has a capacity for training about 70 field inspectors of theCooperative Directorate, by which it: is administered. At present, theCollege works under considerable pressure to reduce the substantial back-log of untrained staff. Like the Academy, the College needs to delegatesome of its training responsibility to lower level institutions. There isalso a need for staff development and for revision of curricula and train-ing programs.

3.09 Zonal Cooperative Training Institutes. Eight Zonal Institutescurrently operate under the direct administrat±ve control and academicguidance of the Cooperative College (para 3.08). The Zonal Institutes,with a total capacity for 425 trainees, generally give short orientationcourses (one to three weeks) to members of cooperative societies and vil-lage accountants of TCCAs. The training potential of Zonal Institutes isonly partly utilized, primarily because of inadequate physical facilities,low caliber of teachers, unstimulating curricula and lack of adequate train-ing allowances for trainees. The Zonal Institutes need to be strengthenedto take over training given at higher levels (paras 3.07 and 3.08).

3.10 Model Farmer Training at TTDCs. At present about 250 TTDCs havebeen completed, consisting mainly of a collection of offices for variousthana level officers, some staff housing, a pump workshop and a large hall

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for group meetings. Training is conducted at TTDCs by bringing in modelfarmers and managers of village primary societies weekly in groups of about50 for about three hours of training by different thana officers on agri-culture, cooperatives and related subjects. Under the IRDP and TIP pro-grams, trainees are paid a stipend of about three takas per visit. Themodel farmers then return to their villages to transmit newly gainedknowledge to neighboring farmers at weekly meetings of village coopera-tive societies.

3.11 Insofar as the program works successfully, it represents aninexpensive way of communicating new agricultural technology to farmers.Unfortunately, the success of model farmer training has declined in re-cent years as the result of multiple weaknesses. New teaching programshave not been developed and the same farmers have often received repetitivelectures over a period of several years. Although benefitting themselves,model farmers often have been unwilling or unable to assist their neighborsin improving their farming practices.

3.12 Model farmer training needs to be revitalized by the developmentof new teaching programs, better training for trainers, the development ofmore effective teaching materials, the provision of adequate training aids,the introduction of more specific training closely related to the croppingseasons. In addition, experiments should be undertaken to determine theeffectiveness of training units adjacent to district headquarters withfacilities for residential training to allow longer training periods, andprograms for coordination of services of the TCCAs and the agriculturalextension staff.

IV. PLANS AND PROGRAMS FOR RURAL TRAINING

Plans

4.01 The First Five-Year Plan (FFYP, 1973-78) places a high priorityon the development of agriculture and the rural sector. The short-termobjectives of the Plan are to achieve self-sufficiency in the productionof foodgrains, in part through the extension of high-yieldine rice varietiesin rain-fed cultivation areas, and to create employment opportunities forthe rural unemployed and under-employed.

4.02 The FFYP outlines an ambitious program for rural development,which would entail significant expansion of most rural institutions. Inparticular, the extension service would be expanded to a total field serviceof 16,000 workers, including the addition of 7,500 Village Extension Agents(VEAs) during the plan period. The IRDP program would also be expandedrapidly under the FFYP to operate in 250 thanas through 39,000 primarysocieties in 1978, compared with 152 thanas and about 14,000 societiesin 1974.

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4.03 The FFYP also includes measures to provide educational supportto rural development. The Plan recognizes the need for better coordinationof rural training programs and proposes the establishment within the Plan-ning Commission of two coordinating committees for cooperatives and agri-culture 1/ to determine training policy and manpower requirements in therural sector. At the higher level the Plan provides for completing the ex-pansion of BAU at Mymensingh (parai 3.04), the establishment of two newRegional Academies of Rural Development and the strengthening of theCooperative College. Intermediate level training is emphasized in plansto rehabilitate existing AETIs (para 3.05), establish eight new AETIswith a capacity of 150 students each, and strengthen Zonal CooperativeTraining Institutes. At the farmer training level, the FFYP includesfinancing for completion of TTDCs and costs for training model farmersand managers through IRDP and TIP. Appendix 3 outlines staff trainingrequirements for rural institutions.

Constraints

4.04 Financial, administrative and manpower constraints limit thegovernment's capacity to achieve the ambitious objectives established inthe Plan. The last two annual budgets, responding to rapid inflation andrevenue constraints, have made a slow start in implementing these programs.These financial problems have led the Government to re-evaluate and cutmany plans and programs. Administrative weaknesses, particularly in de-livery of inputs and coordination of different programs, make the achieve-ment of planned targets less probable. The quantitative targets for staffexpansion seem particularly unfeasible. In the short term, the expansionof the extension service and IRDP must be determined by the capacity ofthe training institutions to produce qualified personnel. In sum, thelimiting factors for the foreseeabLe future are not manpower needs but thedegree to which the Government can afford to train and employ new staff.

A Rural Training Strategy

4.05 The long term objective of a rural training strategy would beto contribute to the development of agriculture by bringing farmers moreeffective extension, cooperative and credit services. The strategy, asagreed oy the government, consists of three parts: First, Bangladesh wouldestablish an effective coordinating mechanism for rural training. Theobjective of this mechanism, in the! form of a National Committee on RuralTraining, would be to rationalize the rural training system through a com-prehensive and coordinated approach. Second, ways to reorganize and strengthenfield-level training (i.e., thana level training and agricultural extension)would be investigated and tried. Third, steps would be taken to meet obviousimmediate needs for better programs, information and training.

1/ Cooperative Development Board and Agricultural Training and ManpowerCommittee.

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National Committee on Rural Training

4.06 The Government has already established an interministerial NationalCommittee on Rural Training to assist the integration of rural training pol-icies. The task of such a Committee would be to supervise, review and coor-dinate the ongoing Rural Training Program and adopt a more rational divisionof responsibility among existing training institutions (paras 3.07-3.09).In particular, it would need to find ways to coordinate the agriculture ex-tension approach and model farmer approach to farmer training (para 3.10).In carrying out its functions the Committee would need to examine the perform-ance of the existing rural training system, including both formal and non-formal training, in relation to requirements. Based on this assessment andanalysis, the objective would be to establish a comprehensive and integratedlong term plan for strengthening the rural training system, improve its ef-fectiveness and enhance its contributions to rural development. The NCRTwould review the progress of the Project and resolve any major policy issuesby coordinating the views of the various ministries and agencies involved inthe Project.

4.07 The Committee is composed of high level officers from the Ministriesof Agriculture, Local Government, Rural Development and Cooperatives, Edu-cation, Livestock and Fisheries, and the BAU. To pursue its appraisal andplanning functions, the Committee needs to establish a competent secretariatand carry out the recruitment and coordination of the technical assistanceneeds, and analytical services.

4.08 Among the priority tasks of the Committee would be to:

(a) review the role of BAU in research and extension and itsrelationship with other agriculture faculties and assistin preparing an institutional development program forstrengthening its teaching programs (para. 3.04) and in-tegrating its teaching and research programs with the ex-tension service;

(b) prepare and recommend programs for improving the operationand effectiveness of the extension service at the fieldlevel (paras 2.05-2.07);

(c) appraise the thana level training programs (paras 3.11-3.12); and

(d) review the training programs of the Rural DevelopmentAcademies at Comilla and Bogra, the Cooperative College,and the zonal cooperative training institutes with aview to reallocating credit and cooperative trainingat different levels to these institutes consistent withavailable facilities and regional needs (paras. 3.07-3.10).

Pending the outcome of these studies, which should result in a comprehen-sive rural training plan within two years, it is possible to identify an

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immediate program to improve agriculture extension, and training for creditand cooperatives.

Agriculture Extension Program

4.09 A feasible agriculture extension program to reach 11 millionfarm families in 1990, within projected constraints, would involve agradual increase to a field service of about 10,000 by 1990 (one extensionworker per 1,100 farm families). An extension service of this order ofmagnitude would require an increase in recurrent costs to about Tk 58million in constant prices, compared with about Tk 25 million at presentand Tk 93 million required for a service of 16,000 field workers (para4.02). M4ore important than expansion of numbers would be the improvementof: (a) extension programs based on recent research results, (b) communi-cation materials through the Agriculture Information Service (AIS), (c)in-service and pre-service staff training, and (d) reorganization of thefield service.

4.10 Within this context a central extension institute needs to becreated to perform five vital functions, namely to:

(a) translate research findinags of other agenciesinto extension programs;

(b) develop curricula for ATIs and other middlelevel rural training institutions;

(c) develop publications, aucdio-visual aids and othertraining materials for the extension service andmiddle-level training institutions;

(d) provide in-service training for teaching staffof ATIs; and

(e) evaluate the effectiveness of agriculturalextension programs.

The Government of Japan is financing the construction and equipping of thisinstitute and some initial technical assistance. The institute would costabout Takas 1.1 million in annual operating expenses when completed in 1977/78.

4.11 Another essential element in the program to improve agricultureextension would be an expansion of the production capacity of the AgricultureInformation Service (AIS) and of its role in supplying training niaterials forrural development activities outside the Ministry of Agriculture. Improvedagriculture extension would also reqjuire more intensive and better stafftraining for practicing extension workers and for new recruits to the ser-vice. This would entail development: of new training programs, and rehabili-tation of existing, or construction of new, middle level agriculture traininginstitutions to produce about 750 technicians a year. UNDP/FAO is providing

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equipment for the AIS and technical assistance for AETIs and management ofthe extension service.

4.12 To ensure effective utilization of training, the present extensionservice would also need to be reorganized. Such reorganization would involvethe following measures:

(a) integration where possible of the various specializedextension services into a multipurpose service conductedby broadly trained multipurpose workers;

(b) a rationalization of administrative hierarchy,including exclusion of unnecessary tiers, such asSub-Divisional Agriculture Officers, and cleardemarcation of roles of each level;

(c) better work planning in terms of revised jobdescription for TEOs/VEAs, annual, monthly anddaily work plans, elimination of irrelevant tasks,and establishment of an incentive system;

(d) a requirement that for new hiring only qualified andproperly trained staff be assigned to extension work; and

(e) greater coordination of model farmer training with exten-sion services.

A Training Program for Credit and Cooperatives

4.13 Given the need to consolidate past achievements, a target ofabout 30,000 IRDP primary societies by the early 1980s would seem morerealistic than the FFYP target of 39,000 by 1978. (paras 4.01 and 4.02). Theultimate objective of the government is to make these primary societiesindependent and self-supporting units. Successful cooperative developmentdepends, in addition to coordination with input supply agencies, on thetraining of ministry staff and of cooperative officers. To support itscredit and cooperative program, the government would need to:

(a) extend the Comilla approach by establishing a newregional academy to conduct research on: (i) adaptationof innovations introduced at Comilla (e.g., model farmertraining) to other regions and (ii) development ofnew social institutions to nelp solve pressing localproblems and to train staff for IRDP;

(b) strengthen and expand the Cooperative College and ZonalCooperative Training Institutes (para 3.09) to trainpracticing cooperative officers and new field staff;and

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(c) explore ways to revitalize model farmer training at TTDCsby development of new teaching programs more closely re-lated to the cropping seasons, by better training fortrainers and by provision of residential facilities.

The Swedish International Developirent Authority (SIDA) is considering aproposal from the Government of Bangladesh to strengthen and expand theCooperative College and Zonal Cooperative Training Institutes.

4.14 The proposed project would assist all aspects of the above programs,except the Central Extension Research Institute (CERI), currently assisted by theGovernment of Japan, the AIS, which is being assisted by UNDP/FAO and theCooperative College and Zonal Cooperative Training Institutes which SIDAis considering assisting (para 1.02).

V. THE PROJECT

5.01 The proposed project aims at increasing agricultural productionby bringing farmers more effective extension, cooperative and credit ser-vices. This long term objective would be attained in two phases. Theinitial phase would stress improvements in coordinration and training atthe national level. A second phase, to be planned during the first phase,would provide for better organization of services and training for farmersat the field level.

Project Content

:.02 The proposed project would include:

(a) construction, furnishing and equipping new and expandedtraining institutions:

Addi- AnnualType of tional/1 Enrollment/

Institution Number Places ParticipantsExpansion New

Agricultural Extension Training

Graduate In-service Unit (BA1J) 1 - 60 480Agricultural TrainingInstitutes (ATI) 7 480 760 1,720

Field Extension Service 15 - _ _

Credit and Cooperative Training

Regional Academy - Bogra 1 - 80 640Thana Training Units (TTU) 15 - 450 2,700

/1 Total number of student places to be added under the project.

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(b) in-service training for present extension per-sonnel; and

(c) technical assistance for the project through theNational Committee on Rural Training.

5.03 The government gave assurances during negotiations concerning thebasic project strategy and financial implications as mentioned below:

(i) only qualified and properly trained staff, i.e., notlower than an agricultural diploma holder, would beassigned to extension work after July 1, 1977;

(ii) the National Committee on Rural Training would beestablished with a full-time executive secretary andsupporting staff in the Ministry of Planning, wouldprepare a plan for development of rural traininginstitutions, and would consult with IDA on thisplan before June 30, 1977;

(iii) the government would review its system of selectionand compensation of teaching staff at rural traininginstitutions and furnish the Association, for comment,staff development plans for all project componentswithin one year of effectiveness; and

(iv) the government would consult with the Associationprior to introducing major curriculum changes inproject-supported institutions until the Closing Dateof the Credit.

Project Components

5.04 A Graduate Level In-Service Training Unit would be establishedunder the project at BAU, with a dual objective: (i) to provide periodicin-service training to graduate officers engaged in rural development andteachers at extension institutions, and (ii) to orient the research andteaching of the University more directly to practical Droblems of ruraldevelopment (para 3.04). A modest investment, mainly in hostel facilities,would enable 60 participants simultaneously, or about 480 annually, to usethe teaching resources of the University to upgrade their knowledge in awide variety of disciplines, such as agronomy, animal husbandry and fish-eries. The Department of Agricultural Extension of the University would beresponsible for daily administration of the Unit. The annual training pro-gram would be approved by the National Committee on Rural Training (para5.03). Assurances were obtained during negotiations that staff of theIinistry of Agriculture would help prepare and participate in the in-ser-vice training programs.

5.05 The expansion of four existing AETIs and the construction ofthree new Agriculture Training Institutes (ATIs) is included in the proj-ect to develop multipurpose training institutions, improve the quality of

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agricultural training and increase the output of agricultural tec1nicians(para 3.05). The ATIs would be the basic intermediate level agriculturaltraining institutions, offering a diploma course in agriculture and providingin-service training for middle-level agricultural field staff. The projectwould assist the government in broadening the scope of the AETIs, wlhichwould be upgraded to ATIs, by adding new subjects to the curriculum (e.g.,irrigation techniques). Basic training in animal science, fisheries, andcredit and marketing would also be given to enable graduates to assist in thework of other rural institutions i.n addition to the extension service. Thequality of training would be improved by: (i) strengthening training ofteaching staff through the ongoinE, UNDP/FA0 project 1/, (ii) increasedemphasis on practical farming practice and field demonstration (50% of thetimetable compared with less than a third at present), (iii) production andsupply of teaching materials and aids, and (iv) improved physical facilitiesand equipment. The output of agricultural diploma holders would be increasedfrom a capacity of about 400 a year at present to 770 a year (Annex 9) by:

(a) expanding four existing Agriculture ExtensionTraining Institutes (AETIs) averaging 125 placeseach to 240 places each; and

(b) transferring three AETIs with inadequate sitesand premises to new locations with 240 placeseach (See Map).

The larger student capacity would realize savings in operating costs perstudent. The government intends tc give preference to rural students withagricultural backgrounds to ensure their familiarity with rural life. TheATIs would also provide in-service training for extension staff. All sevenATIs would offer two months in-service training to extension workers, per-mitting each institute to train 120 staff a year in addition to the diplomacourse (Annex 10). Depending on progress in developing the above seven ATIsand employment prospects for graduates, the establishment of three additionalATIs at new locations could be considered for future investment.

5.06 During negotiations the government provided assurances that eachATI would have at least 35 acres of usable farmland prior to beginning con-struction at each site.

5.07 In-Service Training. Since the institutional benefits of theproject would begin to be realized only in 1979/80, the proposed projectwould also finance immediate in-service training for practicing extensionworkers in four phases over a four-year period. During the first two yearsof project implementation about 4,000 UAAs and TAOs (more than 85% of thetotal present staff) would be given an intensive three-week course on high-yielding variety rice using primarily field demonstrations developed by

1/ ;%Dout 900 teaching staff would be reqjuired for the se:ven ATls, inclu.dingnew recru'tment of 30 teachers. All would receive training at the pro-posed Central Extension Resources Institute and thlroug}h the ongoingCNDP/FAO project.

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the UNDP/FAO specialists working in Bangladesh. The Association wouldfinance part of the training costs, which would include allowances fortravel, subsistence and training equipment. This in-service trainingwould be related specifically to the government's program on rain-fedrice. A second course on jute extension would be given in the third andfourth years of the project. With a view to ensure effective use of train-ing after trainees return to their jobs, the government agreed during nego-tiations that the Directorate of Agricultural Extension would prepare beforethe conclusion of each course detailed work plans for each participant andwould assess the effects of training on the performance of participantswithin six months of the conclusion of the course.

5.08 The project would also assist in establishing a second RegionalAcatemy of Rural Development at Bogra. Patterned after the BangladeshAcademy of Rural Development (BARD) at Comilla, the Bogra Academy would bea semi-autonomous organization under the Ministry of Local Government, RuralDevelopment and Cooperatives controlled by a Board of Governors. The Acad-emy would have two purposes. First, it would conduct research on (a) adap-tation of innovations introduced at Comilla (e.g., model farmer training) tothe Bogra region (para 2.08) and (b) development of new social institutions tohelp solve pressing local problems. Second, the Bogra Academy would under-take training (pre-service and in-service) of senior officers engaged inrural development (e.g., IRDP Project Officers), thereby easing the train-ing load at Comilla (para 3.07). The Bogra Academy initially would have acapacity for 30 trainees and is expected to train about 643 sta'f of ruralinstitutions anually. An expansion of this capacity could be considered fora second phase Bank-Group investment. The development plan for the BograAcademy envisages a modest start in rented buildings in 1975 with principalemphasis given to research on local development problems. This research wouldthen provide material for training programs, which would begin within twoyears. The fourteen teaching and research staff members would be recruitedfrom among recent university graduates and persons with previous experience,but not presently employed, at Comilla.

5.09 During negotiations assurances were obtained that the Associationwould be given the opportunity to comment on the annual research and train-ing programs of the Bogra Academy of Rural Development until project comple-tion.

Farmer and Field Level Trials (Appendix 4)

5.10 The project would assist studies and the construction of experi-mental facilities aimed at revitalizing thana level training and field ex-tension services (paras 2.05 and 3.06). This trial phase would involvethree components. First, an in-depth evaluation would be made of theextension service by the government with UNDP/FAO assistance (terms andconditions of service, effectiveness of field extension practices) andcurrent thana training programs. Second, experimental facilities wouldbe built to try out new modes of training and extension. Low-cost housing,transport and materials and better supervision would be provided to exten-sion workers in about 15 thanas according to three types of grouping: sub-stations for five agents, three agents and dispersed houses for individual

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agents. In addition, about 15 Thana Training Units (TTUs), consisting of alow-cost dormitory for about 30 trainees adjacent to the TTDC, would beconstructed to enable more intensive training to be given to model farmersand other key persons at the thana level. Third, the project would contributethe development of a national plan of action for improving the field extensionservice and thana level training and the preparation of proposals for futureinvestment. Appendix 4 describes this trial phase in greater detail. Beforenegotiations the government (i) selected thana and village locations to beincluded in the trial phase in accordance with mutually agreed criteria, and(ii) prepared proposals on thana training programs to be held at TTUs. Duringnegotiations the Government gave assurances that within three years of thedate of credit signing it would send to the Association for comment a com-prehensive plan for improvement oi- the extension services and thana leveltraining.

Technical Assistance (Appendix 5)

5.11 Bangladesh has received substantial external assistance for ruraltraining. The on-going UNDP/FAO project is helping the government strengthenthe AIS and agricultural extension, primarily through teacher training atAETIs. UNDP/ILO is assisting the government in preparing staff trainingprograms for irrigation pump drivers and mechanics. USAID, SIDA, ODM andthe Ford Foundation are assisting the government in developing farmer train-ing programs through IRDP, the Cooperative Directorate and the BangladeshAcademy of Rural Development. In particular SIDA is considering a proposalfrom the Government of Bangladesh for providing expert assistance to theCooperative College and Zonal Cooperative Training Institutes. Consultationshave taken place between the Government of Japan and IDA concerning theproposed central extension institute (para 4.10). Such consultations areexpected to continue during project implementation to ensure a coordinatedapproach to training.

5.12 About 19 man-years of expert services required for the ATIs is ex-pected to be financed by the UNDP and the Japanese Government. During nego-tiations the Government provided assurances that such technical assistancewould be obtained and the Association would be given an opportunity to com-ment on the terms of reference of the consultants and experts. Agreement inprinciple has been reached veLween the govetlimenL and the other .wo donoragencies for the provision of the above technical assistance.

5.13 The project would include financing for technical assistance tosupport investigations to be carried out by the National Committee on RuralTraining (paras 4.06-4.08), including:

(a) two man-years of intermittent expert assistancefor planning rural training systems (para 4.06);

(b) eight man-years of expert assistance for preparingan institutional development plan and for strength-ening the teaching, research and extension programsat the Bangladesh Agricultural University (para 3.04);

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(c) up to three man-years of expert assistance forcoordinating the trial study (para 5.10);

(d) up to four man-years of expert assistance formonitoring and evaluation of project activities(para 5.10);

(e) four man-years of expert assistance to the BograAcademy of Rural Development in designing researchprograms, especially on rural institutions (para 5.08);

(f) ten man-years of fellowships to strengthen the teach-ing, research and extension training capacity of BAU(para 3.04); and

(g) ten man-years of fellowships for staff of the ATIs inthe fields of curriculum development and specializedagricultural and communications subjects connectedwith extension services (para 5.05).

During negotiations, the Government agreed that: (a) the qualifications,experience and terms and conditions of the consultants and experts, and (b)the fellowship program would be acceptable to the Association.

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VI. PROJECT COST, FINANCIAL PLAN AND IMPLEMENTATION

Project Cost

6.01 The estimated costs and foreign exchange component of the itemsin the proposed project are given in Annexes 11 and 12 and are summarizedbelow:

Takas U.S. Dollars(millions) (millions)

Local Fo_ertn Total Local Foreign Total

Agriculture Extension

Graduate In-ServiceUnit 1.46 1.49 2.95 0.11 0.12 0.23

7 Agriculture TrainingInstitutes (ATIs) 38.22 39.92 78.14 2.94 3.07 6.01

In-Service ExtensionTraining 2.73 3.37 3.10 0.21 0.03 0.24

Field ExtensionFacilities 6.42 6.35 12.77 0.49 0.49 0.98

Credit & Cooperative Trg.

Regional Academy Bogra 4.33 4.41 8.74 0.33 0.34 0.67Thana Training Units 4.71 4.46 9.17 0.37 0.34 0.71

Suporting Services

Technical Assistance 4.54 11.68 16.22 0.35 0.89 1.2462.41 68.68 131.09 4.80 5.28 10.08

Contingencies

Physical 6.24 6.87 13.11 0.48 0.53 1.01Price Increase 39.12 31.15 70.27 3.01 2.40 5.41

TOTAL PROJECT COST 107.77 106.70 214.47 8.29 8.21 16.50

6.02 Customs Duties and Taxes. Of the estimated civil works costs ofUS$5.64 million equivalent, about US$0.35 million equivalent, not to befinanced out of the Credit, would represent customs duties and taxes.Instructional equipment is normally exempt from taxes and duties and costestimates represent c.i.f. prices wi.th an allowance for transport withinBangladesh.

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o.03 The estimated construction costs for the proposed project have beenderived from Mlarch 1975 building costs in Bangladesh and from experience withother IDA-financed projects in Bangladesh. Building costs per sq ft of grossfloor area are estimated at an average of US$14.00 equivalent. These unitcosts take account of the heavier structures required in many areas to with-stand cyclones. In all cases, however, structures would be built to austerespecifications, using low-cost construction methods, because of acute bud-getary constraints prevailing in Bangladesh. Site development costs areestimated at 11% of construction costs. A local cost adjustment rangingfrom -5% to +20% has been added for construction outside the Dacca area.Space requirements are based on detailed schedules of accommodation. Usefactors vary between 80% and 90% for classrooms and practical rooms onthe basis of 36 hours of instruction per week.

6.04 Project costs include a physical contingency for unforeseenfactors equal to 10% of the base cost estimate. A provision of US$5.41million equivalent for price increases has been included. This price con-tingency was estimated on the basis of expected annual price increases forlocal and foreign components on a declining basis between 1975 and 1979,as follows: 20 to 15% for civil works and 12 to 8% for furniture andequipment (Annex 13).

6.05 The foreign exchange component totals US$8.21 million equivalent(including contingencies) and represents 50% of the total project cost.It aias been calculated on the basis of (i) 12% for professional services,(ii) 25% for site development and 50% for construction, (iii) 60% forfurniture, (iv) 90% for equipment, and (v) 70% for technical assistancecomponent.

6.06 Unit capital costs per place for academic and communal facilitiesexcluding contingencies) are US$2,150 for the Regional Academy, Bogra, andUS$1,750 for the Agriculture Training Institutes. These costs are withinthe ranges of costs of previous Bank projects, despite recent rapid costescalation, because of the expected use of low cost materials and simplestructures.

Financing

6.07 Financial Plan. The total project cost of US$16.5 million wouldbe financed as follows: (a) the IDA Credit would meet the foreign cost ofimported building materials, furniture, equipment and expert assistance;70% of the costs of furniture, equipment local and building materials andprofessional services; and 60% of the costs of civil works, and in-servicetraining; (b) the Government of Bangladesh would finance the remainingproject costs. Altogether, the IDA assistance would be equivalent to100% of the estimated foreign exchange cost and 48% of the local currencycosts net of taxes and duties.

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(US$ Millions)Government % IDAof Bangladesh IDA Total Financin&

1. Civil Works (excl. materials) 0.87 1.31 2.18 60%

2. Building Materials(a) Imported 0.35 /2 3.18 3.53 90%(b) Local 0.33 0.78 1.11 70%

3. Furniture and equipment(a) Imported 0.00 0.88 0.88 100%(b) Local 0.14 0.33 0.47 70%

4. Technical Assistance/-(a) Foreign Consultants and

Fellowships 0.12 1.10 1.22 90%(b) Local Consultants 0.13 0.32 0.45 70%

3. In-Service Training 0.10 0.14 0.24 60%

6. Contingencies 2.46 3.96 6.42 -

Total 4.50 12.00 16.50 73%

Less: duties and taxes 0.35 - 0.35

Net Total 4.15 12.00 16.15 74%

/1 Including professional architectural services, fellowships and expertassistance.

/2 Mostly taxes and duties.

In view of the low foreign exchange reserves of Bangladesh and difficultiesia financing local currency from budgetary resources, the financial plan issatisfactory. Other agencias are providing a substar.tial amount of thetechnical assistance required for the project (para 5.13).

6.08 At full operating capacity the project would require an estimatedTakas 8 million in incremental annual operating costs, corresponding toabout 6,% of the projected cost of rural training by all ministries in 1982.This increase represents an attainable level because all project items are

accorded priority by the government. The government has approved relevantPEP forms 1/ necessary for project execution.

1/ A PEP form is an instrument by which the government approves capitalexpenditures and creation of new staff positions.

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Implementation

6.09 Administration. A National Committee on Rural Training (paras 4.06and 5.03), established under the Ministry of Planning, would have over-allresponsibility for implementing the project. It would coordinate the ruraltraining activities of the Ministries and agencies involved in the Projectand would review national policies and establish by June 30, 1977 a long-term plan for development of agricultural and rural training programs andinstitutions in consultation with the Association, All ministries and agen-cies directly concerned would be represented on the Committee. In additionto general supervision, the Committee would be responsible for executing thetechnical assistance included in the project. It would periodically reviewthe progress of the project and resolve issues whitch require the coordinationof the various ministries and agencies involved in the Project.

6.10 A Project Implementation Unit (PIU) has been established withinthe Ministry of Agriculture to coordinate all educational and constructionactivities financed under the project and to communicate with IDA. The PIUwould work with the Ministries and Departments concerned in the planningand implementation of all sub-projects. The PIU would include a director,architect (who may be replaced later on by an engineer, after completion of thedesign phase), education and procurement officers, all on a full-time basis,and an accountant and appropriate supporting staff. During negotiations thegovernment provided assurances that, (a) terms of reference for the PIU andits professional staff would be acceptable to the Association; (h) appointmentof the director would be subject to prior IDA approval; and (c) appointmentof all other principal project officers would be made after consultationwith the Association. The establishment of the PIU and designation of thedirector have been accomplished. Appointment of the project architect andconsultant architect would be a condition of effectiveness; appointments ofthe educator, procurement officer and the accountant would be made withinthree months of the date of effectiveness. The educator would also assistthe NCRT.

6.11 The field level trials would be implemented by IRDP (Thana Train-ing Units) and the Directorate of Agriculture Extension (field extensionfacilities) under the direction of the National Committee on Rural Training.

6.12 Professional Services. The PIU would retain consuiltant architectsto execute design work, plan construction, prepare contract documents andsupervise civil works. The Public Works Department (PWD) normally under-takes these responsibilities directly. During negotiations the governmentconfirmed that private firms would be used exclusively in order to expediteinitiation of civil works activities and provided assurances that consult-ant architects acceptable to the Association would be employed on termsand conditions acceptable to the Association. The signing of a contractwith the consultant architects would be a condition of effectiveness.

6.13 Sites. The sites for institutions in the project have beententatively identified and in most cases the government already owns theland required. Sites were selected to ensure adequate farmland and an

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even distribution of institutions throughout the country. The selectionof thanas for the thana training units and field extension facilitiestrials followed several criteria, including coverage of the same thanasas in the proposed rural development project and strong potential foragricultural development. Sites would be provided by the governmentwithout cost to the project. Assurances were obtained at negotiations thattitle to each ATI site would be acquired and transferred to the appropriategovernment department within six months of credit signing and all remainingsites within eighteen months.

t.14 Construction. The proposed civil works are within the implementa-tion capacity of the Bangladesh bu:ilding industry. During negotiations thegovernment confirmed that the PIU would be given the right to procure im-ported construction materials directly and supply them to contractors.

6.15 Phasing of Implementation. The project would be implemented overa five and a half year period. Physical facilities would be completed infour years (Chart 4).

Procurement

6.16 Contracts would be grouped to the maximum extent practicable toform attractive bid packages. The following contracts would be awarded onthe basis of international competitive bidding in accordance with IDAguidelines:

(a) civil works exceeding US$500,000;

(b) building materials exceeding US$50,000; and

(c) equipment and furniture exceeding US$25,000.

Respective contracts below these amounts would be awarded without prior IDAapproval following competitive bidding advertised locally in accordance withgovernment procurement practices acceptable to IDA. Local contractors andlocal manufacturers would be allowed a preferential margin of 7.5% on civilworks, and of 15% on the c.i.f. cost of furniture and equipment, respec-tively over competing foreign bidders. Bangladesh does not participate inany arrangement which gives import duty preference to certain foreign sup-pliers.

6.17 It is expected that construction of small trial field extensionfacilities and thana training units would be undertaken by CARE, Bangladeshfrom project funds; CARE has local experience in low-cost construction, in-cluding jute-reinforced plastic structures. Small equipment and furniturecontracts (less than US$10,000) could be procured through local shoppingsubject to a combined total of US$250,000.

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o.18 In order to ensure that local currency financing will be availablepromptly, a condition of effectiveness would be the establishment and fundingof a revolving fund to be operated by the PIU director. The fund would beused to cover local currency expenditure for project payments to consultantsor suppliers and to pay for in-service training during the implementationperiod. Assurances were obtained during negotiations that the revolvingfund would be replenished in a timely manner to maintain balances ofTk 500,000 plus local currency expenditures expected in the following twomonths.

Disbursements (Annex 14)

6.19 The proceeds of the proposed IDA Credit would finance:

(a) 100% of foreign expenditures for imported buildingmaterials, furniture and equipment (includingvehicles, and equipment for the PIU), or 70% ofthe cost of these items if procured locally;

(b) 100% of foreign expenditures for fellowships andconsultants services; or 70% of total expenditureson local consultants;

(c) 60% of total expenditures for civil works; and

(d) 60% of total expenditures for per diem of expendi-ture, travel allowances, and instructional materialsfor in-service training.

Disbursement requests would be supported by full documentation except forin-service training which would be disbursed against a statement of expendi-ture signed by the Project Director. The documentation for these statementswould be retained by the PIU and be available for review by IDA during proj-ect supervision missions.

VII. BENEFITS AND JUSTIFICATION

7.01 Development of the agricultural sector and increased food pro-duction are urgent priorities for Bangladesh. Increased agriculturalproduction depends largely on assisting the nation's eight million smallfarm families to receive essential inputs and adopt new technologies. Theproposed project is the first phase of a program to increase agriculturalproduction by strengthening three key government rural services: extension,cooperatives and credit. The proposed project would be a principal instru-ment for providing the government with trained staff to carry out priorityrural programs. Specifically, the project would:

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- economize on resources through coordination of ruraltraining policies;

- increase the coverage of trained extension workersfrom one officer per 2,000 families at present to 1:1,100by 1990, and make these workers more effective (para 5.05);a more intensive coverage cannot be envisaged at this timebecause of financial constraints; and

- provide immediate intensive in-service training inHYV rice technology to 4,000 extension officers whichshould enable an estimated 200,000 farmers of all typesto be assisted in increasing rice yields by 1977(para 5.07).

7.02 The proposed project incorporates the recommendations in the'"roject Performance Audit of the First Bangladesh Education Project". 1/Specifically:

- the project includes technical assistance to overcomeweaknesses of basic curricula at the BangladeshAgricultural University at Mymensingh and to orienttraining more closely to operational aspects ofagricultural development (para 5.04);

- attention has been given to ensure that recruitmentprocedures for rural training institutions willactively contribute to fulfillment of their practicalvocation (para 5.05);

- the project encourages flexibility and variety in theexperimentation and adoption of alternative ways ofachieving better farmer training (para 5.10);

- finally, the project includes technical assistance forestablishing project monitoring systems to measure theeffectiveness with which project objectives are beingpursued and to suggest necessary adjustments (para 5.13(d)).

7.03 The studies and trials included in proposed project would alsoprepare the way for future investment aimed at directly improving fieldlevel operations of the extension service and thana level training (para 5.10).These studies and trials are crucial. Without a viable plan for improvementof field services and for revitalization of thana-level training, the benefitsof the first phase of institution building can be realized only in part.

1/ Report No. 389, April 5, 1974.

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VIII. AGREEMENTS REACHED

8.01 During negotiations agreement was reached with the government onthe following points:

(a) extension staff qualifications; maintaining of theNational Committee on Rural Training and preparationof a development plan for rural training institutions;and review of staff selection, compensation and devel-opment plans (para. 5.03);

(b) Ministry of Agriculture participation in preparationof in-service training programs at BAU (para. 5.04);curriculum changes and requirements for farmland atATIs (para. 5.06); and work plans for in-service traineesand assessment of training (para. 5.07);

(c) review of annual research and training programs at BARD(para. 5.11); preparation of plans on the extensionservice and thana training (para. 5.10); and arrangementsfor technical assistance (paras. 5.12 and 5.13); and

(d) staffing of the PIU (para. 6.10); appointments of con-sultant architects (para. 6.12); acquisition of sites(para. 6.13); and establishment of revolving Taka fund(para. 6.18).

8.02 In addition to the usual conditions, completion of the followingactivities would be conditions of effectiveness of the Credit:

(a) appointment of project director and architect (para.6.10);

(b) signing of a contract with the consultant architects(para. 6.12); and

(c) establishment of a revolving Taka fund (para. 6.18).

8.03 The proposed project constitutes a suitable basis for an IDACredit of US$12.0 million equivalent to the Government of Bangladesh fora term of 50 years including a ten year grace period.

APPENDIX 1Page 1

AGRICULTURAL EXTENSION AND THANA TRAINING

I. ORGANIZATION OF AGRICULTURAL EXTENSION SERVICES

A. General Extension Service

1. The organization of the Directorate of Agriculture (Extension andlanagement) commonly known as Directorate of Agricultural Extension, isshown in Chart 9082. Rural administration is based on the following ter-ritorial subdivisions and staff:

Central Government Staff

Division (4)District (19) - District Agricultural Officer (DAO)Sub-division (62) - Subdivisional Agricultural Officer (SDAO)Thana, approx. (415) - Thana Extension Officer (TEO), and 1/

Thana Agricultural Officer (TAO)Union, approx. (4,200) - Union Agricultural Assistant (UAA) orVillage, approx. (65,000) Village Extension Agent (VEA) 2/

The SDAO positiorn is to be discontinued and the need for extension staff atdivision level is questionable.

2. District. Most DAOs hold B.Sc. or M.Sc degrees but their contactwith farmers is limited to occasional lectures at Thana Training and Devel-opment Centers (TTDCs). The DAO is provided with a four-wheel drive vehicleand accommodation. A Deputy Commissioner is in charge of district adminis-tration.

3. Subdivision. The SDAO is generally a university graduate and somefunction as assistant DAOs. The SDAO supervises the work of TAOs. The SDAOdraws the monthly salaries of the thana and sub-thana level agriculturalstaff from the Treasury and distributes it to the thana offices, from whereit is collected by the UAAs.

4. Thana. There are now 56 TEOs and plans call for one TEO position(to be filled with an agricultural university graduate) in each thana, which

1/ During the First Five Year Plan the following staffing changes in the ex-tension office will take place: (a) Village Extension Agents (VEAs),will replace UAAs, and (b) Thana Agriculture Officers (TAOs) will besupplemented by Thana Extension Officers (TEOs) who will be universitygraduates.

2/ There are not sufficient VEAs to provide for one in each village.

APPENDIX 1Page 2

will considerably strengthen the organization. The agricultural expertisein the remaining thanas is represented by a TAO who has usually been re-cruited from among the UAA cadre cmd whose educational background and expe-rience is insufficient for this key extension position.

5. The average TAO is in charge of 10 UAAs, in an area of 342 km2

and with a population of 182,000 in 200 villages. Occasionally he is pro-vided accommodation at the 'ITDC but not with a means of transport and histravel allocation is insufficient. For example, the TAO in the MymensinghKotwali Thana can spend only Tk 2fC annually on travel. Guidance and super-vision are therefore difficult anc TAOs usually spend most of their time inthe office, preparing various reports. An important part of the TAO's dutiesis participation in TTDC instruction but his influence over the curriculum,developed by the Project Officer cf the Integrated Rural Development Pro-gram (IRDP), is generally minimal.

6. About 100 thanas have assistant TAO positions. The assistant TAOhas the same background and, until July 1974, had been in the same salarycategory as the TAO. In the past there was no promotion prospects atall for TAOs. With the creation of TEO positions, there will be some oppor-tunities for TAOs to be promoted.

7. Union. In a sample survey of UAAs 1/ the majority (58%) were matri-culates with some in-service training, 30% were of lower educational standardand 12% above matriculate standard.. The sample is likely to be representa-tive. There are, at present, 4,153 UAAs. This means a ratio of 1 UEA/5,000acres or 1 UEA/2,000 farm families. The UAA has no means of transport, andhe receives no travel allowance for travel within five miles of his area ofposting. He must find his own housing, frequently difficult in ruralBangladesh, and many UAAs have unsatisfactory housing arrangements. Thesample survey found that 51% of the UAAs were married but living alone,their families being left behind in their home areas for lack of accommoda-tion. About 7% were bachelors, 202% lived with their families in the unionbut away from their home areas, ancl 22% attended office from their homefarms. A considerable number (33%) had to find their lodging with farmers.Few UAAs have an office of their own, or facilities for entertaining visitingfarmers.

8. The UAA is expected to be the jack-of-all-trades at the sub-thanalevel. Although, formally, he reports to the TAO. he is frequently requestedby other thana level officers to assist them with various time-consumingtasks. His job description is vague: he "motivates" the farmers and "assists"them, he "plans", "organizes" and "coordinates". His job seems to be reduced

i/ Golam Rasul: "Relationship of Cercain Personal and PsychologicalCharacteristics of the Union Assistants with their Job Performance".Thesis for M.Sc. (Extension Education), Bangladesh AgriculturalUniversity, Mymensingh, March 1974.

E,LE CP YDV Appraisal of an Agricultural and Rural ......Report No. 680b-BD E,LE CP YDV Appraisal of an Agricultural and Rural Training Project in Bangladesh February 18, 1976 Education

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