An Economic Analysis of the Role of Non-Conventional Mechanized Transport in the Development of Rural Bangladesh

Abstract

An adequate, reliable, and economic mode of rural transport facility is one of the most important pre-requisite for the overall rural development of a country. This is especially pertinent for developing countries as most of the people here live on rural transport either directly or indirectly. In the case of highly populated country like Bangladesh, the availability of rural transport is always in deficiency to fulfill the demands of rural people. Given this inadequate supply of rural transport in relation to its demand, rural people have innovated different non-mechanized transport such as bullock cart, push cart, rickshaw, van, boat etc to meet their increasing transport demand. These non-mechanized transport systems were highly time-consuming and involved with drudgery. As time passed, people tried to explore for a better mode of transport which could involve less manual labor and commute them faster. As a result of their efforts, a mechanized version of rickshaw and van has appeared to ply on the roads that are popularly known as Non-Conventional Mechanized Transport (NCMT). With the development of road infrastructure and the rapid increase in demand for passengers and goods transport, these NCMT have become the mainstay of rural economic activities specially in transporting agricultural inputs and outputs. This thesis thus aims to substantiate the role of NCMT in the economic development of the rural livelihood. To achieve the aim, this study employed five types of questionnaire to collect data from people involved in NCMT in six Upazillas of Bogra and Rajshahi Districts. Both the Upazillas and Districts were selected purposively. Total 384 respondents were interviewed using a set of structured questionnaire with face to face interview method. First one was for drivers and owner-drivers of the NCMT and 78 respondents were selected purposively. The second set of questionnaire was for drivers of the conventional transport (CT) to make a comparison with NCMT. Purposively selected 78 respondents were interviewed regarding the issues of existing rural transport functions and their comparative role. Third set of questionnaire was formulated for 78 purposively selected farmers of the rural areas who are the main beneficiaries of NCMT. To analyze the role of NCMT in the rural social development, the fourth set of questionnaire was used to interview 78 students and teachers. They were purposively chosen to investigate the functions of NCMT. The final set of questionnaire was targeted to obtain healthcare related uses of NCMT by the rural people. In this regard, 72 respondents who were health service-takers from the rural health care centers were purposively selected. Data from the first set of questionnaire show the present state of NCMT and the socio-demographic information of the respondents. Analyzing the state of NCMT shows that there exist three types of NCMTs: Framed body, Plain body and Steering types are plying on the rural roads. Among these, Framed body and Plain body are in maximum number. Descriptive statistics of socio-demographic data reveals that average 33 years old people drive it with no formal training and education. They were engaged in 15 different types of occupations before migrating as NCMT driver. Over 24000 peoples directly depend on NCMT in the six study areas and 74 percent of total agrarian products have been transported through it. These modes of transport are needed for 21 diversified purposes by different government and non-governmental organizations. Over 6000 NCMTs are plying on six study areas with huge investment of over BDT 84 million. It has been generated employment opportunities for 6046 people in those areas and creates yearly 37 million working man-hour in the job market. Transitional income growth of the people engaged in NCMT is 405 percent. Those people spent 374 percent more educational expenditure for their children as compared to the educational expenditure with their previous occupation. They also spent 190 percent more medical expenditure as compared to the medical expenditure with their previous occupation. Data from second set of questionnaire were used to make a comparison between CT and NCMT. A comparison between CT and NCMT was made with the use of their investment data and N-I (Employment-Investment) ratio. This confirms that the N-I ratio of NCMT is four times higher than that for CT which shows the relative efficiency of NCMT. It also reveals that the E-Y (expenditure-income) ratio of NCMT is fifty percent lower than CT. This creates an avenue for huge capital formation through NCMT. Transitional income growth increases by NCMT occupation is 405 percent while this income growth is non-existent for CT. Despite these enormous contributions of NCMTs the owners have limited access to institutional credit support to run the NCMT business. In this regard CT enjoys the highest credit facilities. An analysis of WTP for institutionalize NCMT have also proven that the government can generate more than BDT 28 million revenue per annum from only six study areas. Farm-level data from third set of questionnaire show that nearly 80 percent farmers use NCMT in farming purposes. They use it as their first option due to the advantages of effortless availability, physical accessibility, time and cost saving facilities in transportation of agrarian products. Data collected by the fourth set of questionnaire indicate that 47 percent students and teachers use it. Advantages of low cost, need based stopping points, effortless availability, unproblematic in reservation; time savings are the main reasons to choose it as a first option to the students and teachers. Analysis of data from last set of questionnaire reflects that it is the only transport to carry emergency patient from the rural areas to the health care centers. Health service takers of rural health centers use it in emergency time due to its low cost, graceful availability, trouble-free in reservation and time-saving advantages. Based on the above findings policy recommendations can be made for two tiers: aggregate and micro. Given the paramount importance of NCMT, the regulatory authority should legalize the sector instead of banning it. On the micro tiers, NCMT association should establish a driving manual for the drivers. Last but not least, though this research was carried out only in 6 Upazilas out of 488, the findings of this study could also be replicated to the other Upazillas having similar characteristics.