Booklet on inclusive trade for undp by Grey Shack

Wasif Gaws Creative Director Grey Shack Limited Grey Shack, a communications and consultancy company which provides support to development organizations, multi-nationals, large corporations, SMEs, NGOs, institutions and individuals in all aspects of Communication Solutions, ICT Solutions and Strategic Business Consultancy. We provide special assistance in social awareness raising, behavior change communication, advocacy campaign, information education and communication, visibility and branding. By creating an end to end communication strategy and carefully planned implementation, Grey Shack helps to empower all its stakeholders understand the project goals and to contribute actively to the decision-making processes of development as a whole.

STORIES FROM THE MARKET INCLUSIVE TRADE FROM THE BOTTOM-UP

STORIES FROM THE MARKET

INCLUSIVE TRADE FROM THE BOTTOM-UP

Message

UNDP

Message

AAMS AreďŹ n Siddique Vice Chancellor University Of Dhaka Bangladesh

Glossary Gher Lac Taka Char Sampan Bagda Mon or Maund Kudrat Almirah Madrasa Sorkari Sura Qirat Sadar Mathal Furi Koran Bazaar Upazilla Khas Land Jatka Hilsa Bepari Trader Hartal Ponjika Pitha Sher Bigha Gambura Ranikhet

Man-made salt water pond used for shrimp and fish cultivation One lac = 100,000 (ie: I had to pay one lac taka) Currency of Bangladesh River island formed by shifting and growing sand bars A type of boat Native weight measurement system, One Maunds = 37.324 kg Blessings A free standing cupboard or wardrobe Institute for Islamic education and instruction Government Institute A chapter or section of the Holy Quran Recitation of The Holy Quran Local town Middlemen The Holy Quran Local market Sub-units of districts or a geographical region in Bangladesh Young Hilsha that are smaller than 9 inches Locally called as ‘Ilish’, this is the national fish of Bangladesh A closure of shops, offices and institutes as a protest i.e. strike Astronomical almanac Cakes made from a batter of rice flour or wheat flour Infectious Bursal Disease, a highly contagious disease affecting young chickens Newcastle Disease: a contagious bird disease affecting many domestic and wild avian species

Notice on translation Please note that all narratives were translated into English from their original text in Bangla. We have attempted to make the language and sentence structure as reﬂective as possible of the original narration / quote.

Introduction

Export growth in Bangladesh since 1991-92

Source:??????

Poverty reduction in Bangladesh since 1991 – 92 (MDG baseline year) Long Term poverty Trends 1991-1992

1995-1996

2000

2005

2010

60 50 40

HCR%

30 20 10 0

National

56.7

50.1

48.9

31.5

Urban

42.8

27.8

35.2

28.4

21.3

Rural

58.8

54.5

52.3

43.8

35.2

Source: MDG Progress Report, GED

Table: Poverty reduction in Bangladesh since 1991 – 92 (MDG baseline year), HCR (as percentage)

Source: MDG Progress Report, GED

Source: Foreign Exchange Policy Department, Bangladesh Bank, CCI&E and EPB

Source: MDG Progress Report, GED

RMG share in exports / growth

Source: BGMEA

Other sectors share in exports / growth What is inclusive trade, and why is it important? If you look at Bangladesh over the last two decades, the country’s economic growth has been largely driven by exports – the majority coming out of the ready-made garment sector. This growth has been very effective at reducing poverty. Among other MDG achievements, the country has met the target of halving the proportion of the population under the poverty line, going from above 50 percent in 1991 to an estimated 24.8 percent in 2015. As the country looks to continue this growth and transition into a middle-income country (MIC), reaching the poorest will become increasingly difficult. It is important that policy-making, from domestic growth to international trade, captures the need to build linkages between the poorest market actors and broader drivers of economic growth. Creating policies and programmes that enable the poorest market actors to participate in economic growth is not only an economic exercise, in fact to be effective in this exercise it’s essential to have some understanding of the socio-cultural factors at play. Understanding this side of economic growth, the last mile which determines whether or not the poorest benefit, is at the heart of this initiative. This book is not a set of definitive findings about the livelihoods and constraints of poor market actors, in fact there can be no definitive findings of this sort. Like our global economy, as soon as we 'know' what is happening, multiple and dynamic forces are at work to ensure that what you 'know' has already changed. This is the start of a UNDP movement to continually keep the pulse of communities whose struggles, dreams, desires and opportunities define how they interact with markets. It shows that we can find insights on issues big and small, from infrastructure and regulatory issues that originate in central government, to hyper-local power dynamics that affect the ability of poor producers to get fair value from their products.

41% 3% 1% 2%

2% 3% 3%

Contribution of Sectors to Export in Fiscal Year 2013-2014

40%

Source: EPB

The outputs of this research are all about the questions we ask. Micro-narratives give us insights and guidance in other forms of research – such as surveys and focus groups – to ensure that we’re on the right track. It is not a method that solves problems, but rather makes sure that we tackle the right ones. The narrative method focuses on getting a story from the research subject, defining a target issue – such as engagement in markets – and then letting the subject define what is important. The thematic structure of this report, meaning the chapters and issues that they are built around, are defined entirely by the narratives that we collected. This sample size is in no way meant to reflect the realities of 160 million people in the country, the issues in this report are included because they emerged as patterns among narratives from 158 individuals across 10 broad sectors and in 19 of the poorest Districts in Bangladesh.Constraints at the producer and market level are largely a ‘missing link’ in conversations about enhancing supply capacity in trade. We have found that imbalances in terms of credit, manipulation of the market by ‘middlemen’, and the lack of insurance or effective social safety nets are some of the key constraints ensuring that the poorest are constantly vulnerable and unable to enjoy the benefits of increasing demand, even when it is in their own product or sector. The degree of access that poor people have to markets, and the terms by which they participate in them, are two key aspects that define whether they are able to build value by engaging with markets, or whether this engagement actually intensifies their vulnerability. In our section on Gender, Family and Markets we explore another key aspect of access – the social barriers that restrict or dictate the terms of women’s participation in markets. Inclusive trade is an objective shared by many, this work by UNDP is seeking to complement the in-depth work by other organizations inside and outside Bangladesh on trade, market development and poverty reduction. The ‘Making Markets work for the Poor’ (M4P) movement is especially active in addressing market-level constraints, and providing solutions that are technically and locally relevant. Development partners such as the World Bank, European Union, Asian Development Bank, UN Agencies and several donors have been active in creating diagnostic studies on trade, growth and development, and working with Government to tackle policy and practical constraints to further trade growth. The recent WTO and World Bank Group report entitled The Role of Trade in Ending Poverty provides some particularly relevant support to the idea that strengthening the poverty reduction impact of trade requires an understanding of the constraints faced by the poorest market actors. Bangladesh joined the EIF (Enhanced Integrated Framework) in 2009, which is a joint initiative of six international organizations, namely, WTO, UNCTAD, ITC, UNDP, World Bank and IMF. The main objective of the EIF is to enhance overall trade-related capacities of LDCs, and in this regard the World Bank recently submitted a Diagnostic Trade Integration Study (DTIS) to the Ministry of Commerce. This DTIS provides a framework for

the country to receive Aid for Trade funds from international donors, and provides an umbrella for donors to work with the Government on trade-related issues – including poverty reduction and trade. Aid for Trade exists, in the context of the MDGs and global development, as a measure to reduce the poverty of developing countries by helping them to integrate into the global trading system. A key component of the Doha Development Round, the Aid for Trade framework was created at the sixth Ministerial conference in Hong Kong and was soon followed by big commitments from donor countries who saw the virtues of driving economic growth and poverty reduction through trade. Over $264.5 billion dollars has been disbursed under the Aid for Trade framework since 2006, and it has taken up a commanding share of Oﬃcial Development Assistance. With mixed results over the last decade we must now ask the question – how can Aid for Trade make good on its objectives in the Post-2015 era? To put ourselves in step with the 7th Five Year Plan and Post-2015 objectives of sustainable, inclusive growth, we need to be able to provide tailored solutions in complex situations. We need to look beyond the ‘association’ of the trade and economic growth with poverty reduction, and design the tools – from the producers all the way up the value chain – that will allow us link the two concretely. This means that engaging in export markets cannot be the sole objective of inclusive trade, we must also look at potential growth sectors from the bottom-up. It’s important to support not only the sectors which are already exporting, but also those that require support to satisfy rising demand domestically. This book is designed to create insights about how the poorest engage with markets, to share their stories and to highlight the key themes that emerge. Ideally these insights add to the excellent work being done in the trade and market development sectors, and allow us to bridge the two in promoting inclusive trade from the bottom-up.

1 In Bangladesh, CPD concludes that $391m in Aid for Trade between 2006-2011 had no impact at the macro-level, but was useful at the micro-level in the RMG sector (CPD 2013: Evaluating AfT Bangladesh).

NARRATIVES – FILLING A DATA GAP

The Inclusive Trade project used the micro-narrative methodology in order to shed light on constraints faced by the poorest market actors in Bangladesh. Derived from the anthropological traditions of ethnographic research, this methodology has the potential to fill a critical gap in our understanding about the communities we work with. To put it simply, narratives are stories. These stories, recounted with minimal intervention by the researcher, have a unique capacity to shed light on complex, sometimes subtly interconnected issues in the life of the subject. The method is not designed to replace or exceed the capacity of quantitative research, but rather to fill in the areas which traditional research cannot describe – gaps relating to how people experience certain events, and how different social, cultural and economic factors inform their decisions. Narratives are defined as stories about human cognition, actions (and their consequences), events, and descriptions of circumstances in which those events occur. They are normally structured with a beginning, middle and end. A narrative is a universal social action – described brilliantly by Walter Fisher when he said that ‘homo sapiens are also homo narrans’. Humans are fundamentally shaped by and shape the narrative structures of their existence. Narrating is not only a form of representing reality, but also a form of constituting it – in fact we organize our experiences and our memory of occurrences mainly in the form of a narrative. This is why many theorists place it next to language itself as the most distinctive human trait. A narrative is different from a description because it has a story, it is about events, it is about what happened and why it is worth telling. Our narratives are largely a series of events within the context of livelihood and income-earning, which reveal experiences of individuals in relation to their social, cultural, and of course economic realities. Event or action is central to our narratives. Without an event or action, we could have ‘description’, ‘statement’ or ‘argument’ but not a narrative. We adopted some ethnographic tools and techniques of data collection when gathering narratives. The term `micro-narrative’, for our purpose, represents naturally occurring fragmented anecdotes within narratives, that have

been purposefully extracted and highlighted in our research to build the analytical storyline that we have put forth in this report . Our project collected and analyzed narrative accounts from poor producers, traders and other market actors in some of the poorest Districts of Bangladesh. The Districts, other than one narrative from Chittagong, were selected from a list of 20 Districts that the UN system prioritized based on their poor performance across a range of MDG-based parameters. Student researchers from four public Universities were trained in ethnographic research and narrative writing, a new approach for the non-anthropology students, and given an overview of how to target narrators. Once in the ﬁeld student researchers selected narrators by traveling to various market areas and towns and speaking with local people about the products produced in the region. Tips were given, leads were followed, and the student researchers met some very interesting characters. An overview of the areas, sectors and demographics covered in this research is included in the section on Demographics The stories told were full of hardship, small triumphs, emotional moments and very constructive insights into how the poorest market actors make a living.Our aim was to be aware of the main constraints that poor market actors are known to face in Bangladesh, but to carry as few assumptions as possible into the research. We wanted to learn from the stories. We wanted to reach those realms of realties where no instrumental logic or method could lead us. In this respect, our study’s only hypothesis was that stories told by the poorest market actors themselves will help us to better understand their challenges. This hypothesis was quite quickly proven, however we also managed to gain insights into several concrete challenges that our narrators face. This book is built by the stories of the narrators – chapters and thematic areas have emerged only through the stories themselves. In this sense, analyzing the narratives was equally challenging and exciting, and entirely based on patterns and issues that are recurrent in the 158 stories.

One of the most compelling realizations within development research in the past decade is that there is a significant gap in the body of knowledge development agencies employ to plan and implement their projects. In recent years, a desire has emerged to fill in this gap with more comprehensive knowledge on micro-social realities gathered from the people whose lives development interventions intend to change. Participatory research, design and monitoring, for example, has become more and more common as one response to this need. Micro-narratives are another very effective method of highlighting how individuals and communities experience events, policy changes and social customs. The method allows us to gather large amounts of quali-

tative research and study the patterns that emerge, deepening our understanding of issues that quantitative research methods are unable to explain. The narratives that this project were told by people for whom ‘trade’, a term that took on new meaning at the local level, is an indivisible part of their social and cultural existence. No development phenomenon can be understood in isolation, without considering complex interrelationships with diverse forms of micro and macro realities. It is our hope that this initiative lays a foundation for much broader narrative research in inclusive trade and beyond.

INCLUSIVE TRADE PROJECT TIMELINE

2014 To assist in our micro-narrative collection and analysis, the Inclusive Trade project partnered with the Department of Development Studies at the University of Dhaka. The student body at Dhaka University is talented, ambitious and diverse, and the faculty was very open to experimenting with narrative research – a winning partnership from the very start!

OCTOBER

Partnership with University of Dhaka

NOVEMBER

Call for Applications Released

DECEMBER Orientation

A call for applications was advertised at the University of Dhaka and online, inviting students from various academic backgrounds and Universities to take part in the Inclusive Trade research. We received over 50 applications, out of which 33 ‘student researchers’ were selected and invited to the orientation and training sessions.

A day-long orientation session was organized for the student researchers at the University of Dhaka on inclusive trade and the micro-narrative methodology. The students were assigned to collect one sample micro-narratives over the winter break wherever they happened to be

2015 JANUARY

Training and Pre-departure Orientation

FEBRUARY TO MARCH

Fielding of teams in 19 districts

A 2-day training and pre-departure orientation session was organized before the student researchers went out to the ﬁeld. The training consisted of feedback on their sample narratives; interactive sessions with simulations of collecting, and writing micro-narratives; targeting narrators; trials of the voice recorders and cameras; security and troubleshooting; etc. 8 clusters were formed covering 19 districts, led by ‘cluster leaders’ from the University of Dhaka faculty.

The political strikes (hartals) in early 2015 challenged our original field plan, delaying our research slightly due to security concerns. However fielding the research clusters one by one and monitoring their travel closely, we were able to dispatch all teams by the end of March, 2015. The 8 clusters each covered a group of neighboring districts, representing 19 districts in total. Each cluster spent 9 days in the field collecting narratives and reporting back daily.

2015 APRIL TO MAY

De-brief and experience sharing sessionsn

MAY TO JULY

Analysis ‘Boot Camps’

As each cluster returned from the field, debriefing sessions were held to get feedback on the methodology, findings and overall experience. As we dispatched clusters on a staggered basis, feedback from early teams was incorporated into the travel and collection plans of the later ones.

Over 200 micro-narratives were collected from 19 districts during the course of our research, out of which 158 were kept for analysis purposes. Due to the in-depth nature of these stories, intensive week-long ‘boot camps’ were held in Savar and Rajshahi respectively with the project team and several students who volunteered their time. These analysis sessions, along with many more long days and nights, formed the basis for this book!

BASIC STATS ANALYSIS

Panchagarh

Thakurgaon

Nilphamari Lalmonirhat

Dinajpur

Districts

Kurigram

Rangpur

Gaibandha Joypurhat Naogaon

Sunamganj

Netrakona

Jamalpur

Bogra

Chapainawabganj

Mymensingh Rajshahi

Natore

Sherpur

6 Kishoreganj

Sylhet

Moulvibazar

Habiganj

Tangail

Sirajganj

Gazipur Pabna

Narsingdi Dhaka

Kushtia Meherpur

Rajbari

Grey Shack, a communications and consultancy company which provides support to development organizations, multi-nationals, large corporations, SMEs, NGOs, institutions and individuals in all aspects of Communication Solutions, ICT Solutions and Strategic Business Consultancy. We provide special assistance in social awareness raising, behavior change communication, advocacy campaign, information education and communication, visibility and branding. By creating an end to end communication strategy and carefully planned implementation, Grey Shack helps to empower all its stakeholders understand the project goals and to contribute actively to the decision-making processes of development as a whole.

Lakshmipur

Bagerhat

Feni

Noakhali

Pirojpur

Khulna

Khagrachhari

Gopalganj Barisal

Satkhira

Shariatpur Chandpur Madaripur

Narail Jessore

Comilla

Munshiganj

Faridpur

Magura

Narayanganj

Wasif Gaws Creative Director Grey Shack Limited

Chuadanga Jhenaidah

Brahmanbaria

Manikganj

Jhalokati

Patuakhali Barguna

Rangamati

1 Chittagong

Bhola

9 5

Bandarban

Cox's Bazar

Count of Micronarratives per Region

SECTOR REPRESENTATION BY GENDER

Agriculture and Jhum

Aquaculture

Boat / Trawler

Clothing

Craftsmanship

Handicrafts

Hospitality

Others

Poultry and Livestock

Shop / Stall

Sectors 25%

Shop / Stall

48% Poultry and Livestock

Agriculture and Jhum

18% Others

19%

Craftsmanship

Aquaculture

4% 6% 8%

Wasif Gaws Creative Director Grey Shack Limited

Handicrafts

Boat / Trawler

16%

Clothing

Hospitality

Age Distribution-158 Micronarratives

31-40

10 0

41-50 0

10 0

51-60

70 60

Less than 30

70 60

61-70 0

Above 70 0

Who are our Narrators?

While seeking out stories from the poorest market actors across the country, our researchers encountered a wide range of characters, hearing stories with equal measures of hope, despair, courage and struggle. Listening to in-depth stories from main towns to remote rural areas across 19 districts of Bangladesh, we have heard not only about their tangible struggles in engaging with markets, but also their hopes, dreams and what motivates them to succeed. To truly understand how we can eﬀectively link the poorest with growing markets, it’s important to understand that the push and pull factors in engaging with markets or building a business are not only economic. In this section we introduce what motivates our narrators, what characteristics they seek to personify, and ultimately what informs their decision-making beyond economics.

What Characteristics do our Narrators Value? Hard Work Hard work is the first ingredient to achieving success, and a characteristic that our narrators value to no end.When external difficulties are beyond their control, the virtue of untiring effort is relied on to get them and their families through the day.

Hard work brings wealth. If you do not work hard, riches will never come into your grip. In the present condition if the price of rice rises to even one hundred taka per kg, nobody will starve because now people know how to earn by hard work. If anyone wants to earn ten taka by deceiving others, he will have to suﬀer. If one person earns ﬁve hundred taka, his companion will say ‘Am I not a man? I’ll earn six hundred taka’. You must have this heat within you.

It’s hard work. You have to collect the bananas from the trees yourself, in all kinds of weather. Then you have to bring it to the depot and stay for two days and sell them all night long. The mosquitoes bother a lot. It is better when there are no strikes. It’s easier to get transport. Then they fetch a good price. I make a proﬁt of 5 – 7 thousand Taka on each truck load.

I took a lease of land from Haji. People were discouraging me as if their life depended upon it. Even haji was doubtful about my ability. I told him not to worry. All he needed was the harvest and the money and they will be provided by the time I am done. And I did all the farming work myself. I toiled myself away in the ﬁeld. I cannot forget what I did in those days. And that hard work rewarded me with a harvest of 50 mons.

Fabric trader, Sunamganj

Banana trader, Khulna

Restaurant owner, Nilphamari

One’s own work, not belief in fate, is the main thing. I have good fate and a lot besides that. If I just walk around, how will I get anything? If I sit here, nobody will serve me food. I tried and I struggled to achieve success.

To me work is more important than status. I do not care about idle gossips of the people. I will earn my keep, I will work, never be unfair to anybody, never be rude to anybody and God will take care of me.

I worked hard for whole day and night, and started to see proﬁt after that hard work.

I have never sat idle in my entire life. I have worked hard in each and every step. No one can tell when the Almighty allows you some happiness. Now all that matters is that my son and daughter can live peacefully.

Shrimp farmer, Bagerhat

Fabric trader, Jamalpur

Firewood trader, Netrokona

Tea and snacks seller, Patuakhali

Honesty, Trust and Credibility The value placed on honesty, trust and credibility represents a paradox within our stories. In our narrators’ accounts of their livelihoods and engagement with markets, fraudulence, ‘cheating’ and failed partnerships are commonplace, and credit is extended to the non-creditworthy as a form of generating business. The fact that trust and honesty are rare makes them unusually important as attributes. The inability to depend on most people means that once a person has reached ‘trustworthy’ status, they have an invaluable currency to use in economic and social life.

I worked for the fish trader. My salary was 120 Taka a month. There is no other way there than to steal. But I am not capable of it. It was very hard for me to live on the pay I got. The fishermen would come and have tea with me. I would have to foot the bill. Those who can do shady things do well in the fish trade. Here you can buy fish for 30 Taka and write 38 Taka. You get the money readily. Otherwise the money goes to the owner. But I thought I would have to answer to God. I won’t be able to provide an honest answer. If I steal other people’s money what answer shall I give to Allah. I know that I don’t take a penny that doesn’t belong to me. Everybody knows. I have earned respect in the area in that regard.

I had nothing but two sets of cushion covers when I started the business. And because of my honesty, cash ﬂow was not a problem. Everybody provided me with cash the way I wanted. And now I have a good relationship with other shops as well. If I phone for fabrics worth of 5 lac taka right now they will send it over. And they will not have any problem if I tell them that I could not pay them right then.

Boat owner/driver , Rangamati

Handicraft trader, Jamalpur

Yes, they trust me. They don’t trust anyone else as much. As I went up and down, the people of Kaptai and Bilaichori came to know me and Kashem Boat. There are other boats, but they do not ferry cargo on those. Sometimes government consignments are carried on my boat. I deliver them properly. And when I leave from here people will give money and lists to carry. I will buy those things and bring them. They have a belief. And I pray to God that I don’t steal a single penny form anyone. So that I don’t have to answer after my death. I can’t do this. And the same goes for the shopping money. I won’t be able to say it cost 40 Taka when it cost 20.

Boat owner/driver, Rangamati

When I weigh my goods for sale, no customer wants to check my scale. I have achieved this trust. I weigh my goods with a manual scale. If I give ten grams more, the balance will lean down. My parents gave me one capital of business that is the morality they taught, ‘My boy, never give less to your customers, and never take more.

The owner of the land I cultivate on a sharecropping basis likes me a lot. I have cultivated his land for many years. Many others have gone to him for sharecropping, but he only trusted me – he leased the land to no one else. He died a few years ago, yet he advised his sons to give me the land.

There was once a trumped up charge ﬁled against me in court because of political reasons. Other than that I have never faced any other problem in my life. People are usually very helpful with me. It may be because of my honest nature or may be because of my work.

Everybody thinks I am a good person. I’ve got Allah’s grace as people love me. Please pray for me so that I can remain honest. Please be honest yourself. If you do things with honesty, everything can be achieved.

Since I am established in the market now I take credit and pay back after selling. This gets me by.

Fabric trader, Sunamganj

Vegetable farmer, Bhola

Fabric trader, Jamalpur

Decorator, Bagerhat

Banana trader, Khulna

Faith Faith is less of a characteristic, and more of a fundamental pillar of existence for most of our narrators. It is highly influential in guiding how one deals with the ups and downs of their lives; defining values, inspiring respect, strengthening relationships and describing one’s struggle. However faith can also be detrimental if it supersedes the need to plan for the future. One thing is certain – faith is undeniably influential in the lives of the poorest market actors who shared their stories with us.

We performed Hajj with the proﬁt I had last year. I do not save money; I am not into earning interest. I am not under anyone. What Islam asks me to do, I do that. I neither take loan from anyone, nor do I save money in bank. By the grace of all mighty Allah, all my past hard days are gone. If you work with honesty, it will be an act of piety. If you are on the path of honesty, your situation must change. I have no more expectations in life. I have visited Allah’s house. I have prayed at the Prophet’s grave. I have no more expectations.

Those like us who depend on the river all depend on Almighty’s Kudrat (blessing). If Allah wishes we catch some ﬁsh, otherwise we won't. So there is no point talking about future. If something happens to me Allah will look after my family. Bhai, what is the point wasting time with such worries? If one has to survive in this region we must do this sort of work. Allah is above. Allah will decide everything.

Shrimp farmer and trader, Bagerhat

Fisherman and ﬁsh trader, Bhola

If the shop is expanded, the business will be better. I have to look after my future myself. However, whenever my business is somewhat good, for some reason my money gets reduced. I cannot keep it. I don’t know if Allah tests me or not.

Businessman, Bagerhat

I’m with my business. My days will go on as Allah wishes. A poor man like me has no big dream. If my son gets a job, I’ll be happy with that. May Allah bless him with a good position. There is no one but Allah to help us.

Fruit shop owner, Habiganj

I wanted to do big business and become owner of a big company. Nevertheless, Allah did not gave it in my fate. Still, I tried, but failed. I tried business 3 times and faced loss 3 times.

If I had education I could have found jobs in diﬀerent places. I have come all this way to Rangamati just to sell peanuts! That's why I came. Allah is putting us to test by making us poor.

Allah makes sure that this business run very well even with a little investment. I have a good fortune you see. Allah works in mysterious ways. I have achieved my success from the scratch. I did this by the blessing of Allah and my labor. And the help of friends. Because, I always try to make sure that I do not harm anyone. This is why Allah has blessed me.

Fabric trader, Jamalpur

The new paddy harvest is coming just after a month. Then I will see some proﬁt, Allah will not just give me losses I am hopeful of it.

If Allah favors and saves us from mishaps, I’ll get about two to two and half lac taka as proﬁt from this. I hope so. Vegetable trader,Habiganj

I will remain in this Char as long as Almighty Allah is willing and protects us. Shopkeeper, Rangamati

Street food seller, Rangamati

Rice trader Sirajganj

Vegetable farmer and shop owner, Bhola

Determination In a constant struggle with frequent lows and fewer highs, determination is a necessity in the lives of the poorest market actors. According to our narrators, success comes as a result of sticking to the business for a very long time, despite incurring losses. Like determination, patience and devotion, have been noted as are prerequisites for success.

I had a loss in tomato. Now the tomato season is over. I will now deal in other vegetables. This business will help me recover my losses. I believe this. You know what’s the main thing for success in business? It’s not to let go. Just the way people increase in a business, the business itself must also increase. To give up the business because of a loss is not the way. Say I am short of 500 Taka to buy some goods. I borrow to buy it. Then one or two months later I return the 500. My debt is gone. Business is such. Losses will come and go – you can’t let go.

I have plans of expansion. I have expanded the smaller shop. If I had a little bit of more capital with my present one I could have done better. I will do it. It will just take a little bit longer than expected.

Tomato trader, Khulna

Grocery shop owner, Kurigram

Many people are doing well in their business in Mohonganj coming from Munshiganj and Dhaka. Mohonganj is close to my home. If they can do so, why not me?

Firewood trader, Netrokona

“No obstacles remain. I am a woman. Nobody stops me.”

Poultry trader, Khulna

What does ‘Success’ Mean to Our Narrators? Our main objective in gathering narratives under this project is to illuminate some of the constraints and challenges that the poorest market actors face in engaging with markets. However in the course of undertaking this research we also had the privilege of learning quite a bit about the hopes and dreams of our narrators. Knowing what drives and motivates the poorest market actors in the long term is a critical component of designing programmes to address their challenges, and unsurprisingly our narrators’ desires are fairly straightforward. After analyzing 158 narratives, we found that beyond the immediate objectives to earn income and pay oﬀ debts, two broad deﬁnitions of success are the most common: the acquisition of land and assets, as well as the ability to provide one’s children with a future.

Assets, Land

Now I have no problem. By the grace of Allah we are doing well now. I have repayed all my installments. Now I get paid from the installments. The second son has passed the SSC, I bought him a computer. Then I bought a TV, made a bed. Then I did some renovation to the house. I am doing my best. But if their father was employed then it would have been a lot easier for me. But, I have come far. The struggles are a thing of the past. We do not go hungry again. I can give rice to my pet animals as well. Once, I was out for the meal for the day. Now, I can easily feed my pet animals with rice. I cook a little amount of rice, but we all and our pet animals can have those rice.

I swore by Allah that day that I was going out and going to make something out of myself. I did not trust anyone but Allah…I have no complains now...My sons are going to have jobs soon, so I am worried about nothing. I will buy some cows and retire to home…I will buy two cows at a price of 50,000 each, it will cost me a lac. Then I will retire to my home, say my prayers, set up two mores rooms to rent, and be happy.

I make my living out of this business, I must admit. Why should I hide it, you are not giving me any money or I am not giving you any money either, so no reason to lie. Allah has given me some prosperity, I have built a house, bought some land, and though it’s not like that I have a lot of cultivable land. Moreover, I run the business myself. I pray that may Allah keep me going in this way.

Restaurant owner, Nilphamari

Potato farmer and trader, Nilphamari

Today Allah keeps me very well. I bought a piece of land with the income from the business. I have built a small house. Now I am very well with my business. I have settled my family and am well with my 3 children. By the grace of Allah I am living in peace and happiness. My house is just to put the head under a shelter. I am better than before.

Once I could not aﬀord cooking one kg rice, but now by the grace of Allah and your good wishes, I have got the pots to cook food for one hundred people at a time. I had no cot, no fan. I have bought fan, cot and TV. Later on, I bought a steel almirah as well.

Ever since childhood, we have not owned any land. Father had a little. We did not receive any from that. I have managed to keep a little patch of land now. I have also erected my home on this land.

I am not a successful business person. Only he who has property, capital and buildings can be called successful.

Decorator, Bagerhat

Old Fabric trader, Sunamganj

Food seller, Patuakhali

Drumstick trader, Khulna

Providing children with a future

I am in fruit business. I have built 2 houses and bought some lands. Also educated my children. My son is studying in honors (bachelors) 2nd year in Sorkari Brindabon College (Brindabon Government College). My 2 elder daughters are studying in Hobigonj Sorkari Mohila College (Hobigonj Government Ladies College). Next daughter goes to BRAC School. The youngest daughter is still a kid.

My son is four years old now. I hope much for my son. I could not continue education. My son is very sharp. He already has learnt quite a few Sura (holy verses) and Qirat (recitation from the Holy Koran). After he completes upto Class Five I would like him to pursue some religious education. What I do after that will come later.

I was the chair of the very primary school where I studied, during the last term. I studied in this high school and now I am the member of the parent committee of this school. This makes me thankful to God. I do not want to be ďŹ lthy rich, I do not desire much in life. I wish to live as it is until I die. I pray to Allah that my boys earn their living in a legal way. That is all I want, nothing more.

Fruit shop owner, Habiganj

Poultry farmer, Patuakhali

Fabric trader, Jamalpur

What's important is that I have no such dream to own much money. I don't hope so. I have one child. I pray to Allah so I can establish her in the society. That is all that I hope for. I hope to educate her in her religious faith. This is my main hope.

My eldest son gave SSC examination; my second daughter is in class-6, other two daughters are in class-5 and class-3 and my youngest son goes to Madrasa. I couldnâ&#x20AC;&#x2122;t go to school because of economic problems so I started farming.

Restaurant owner, Patuakhali

Vegetable farmer, Bandarban

So, I will be doing this business as long as I live. And my children will have the future they dream of, if it is the wish of the Almighty.

Garments trader, Sirajganj

Overview of Barriers and Bottlenecks

The stories we have gathered in this research are in a broad sense, stories of struggle. They are characterized by compelling testimonies by some of the poorest market actors on confronting and evading incredibly diverse barriers and bottlenecks in their lives and livelihoods. Our narrators, who are attempting to earn their way out of poverty, confront different social, political, and economic barriers on a daily basis. Forming capital is the first and foremost challenge our narrators have identified. In every step of business, our narrators struggle to build and sustain adequate capital. They are under constant financial pressure, managing small but significant investments in their business while often adhering to weekly payment schedules from micro-credit providers. Borrowing from several different sources of micro-finance is the most common practice in capital formation, which makes interest rates and repayments the most vicious challenge to their growth. Our narrators are also subjected to various forms of exploitation, manipulation and harassment, without a perceived or real inability to seek legal redress. Our chapter on Forming Capital explores some of the complexities our narrators face in securing, maintaining, and growing productive capital. On our narrators’ Journey to Market, syndicates of middlemen, usually formed by wholesalers, have been deemed as the most exploitative market actors. They act as the gatekeepers of the market for small producers and traders. The syndicates commonly determine the price of the products in their own favor, by taking advantage of their investment strength; ability to organize; and economies of scale. Moreover, market conditions are also set by competition, harassment by authorities, tolls collected by political power brokers, fraudulence, informality of business spaces, and infrastructural barriers. Many of our narrators also lack marketing support or knowledge to drum up demand. We will see more evidence on these barriers in our chapter on Journey to Market. Reference to political instability as a barrier to business, including blockades and strikes and associated risks, is common to many of the narratives. The other face of political barriers is the influence of local political actors on markets – including informal fees, racketeering and inconsistently applied regulations. Harassment, non-cooperation and eviction by administrative bodies is frequently mentioned in our narratives as a key risk to capital, assets and revenue. Policy in a broader sense, regarding imports or fishing regulations for example, also affects our narrators and their families directly and indirectly. Our chapter, Governance, Grievance and Growth, has more details on this.

In terms of the barriers and bottlenecks highlighted in our research, female narrators have a distinct and particularly challenging set of constraints when engaging in markets. The stories that we have heard in most cases cover a lifespan, sometimes generations, and provide a broad context of how women must balance their engagement in business with other social, cultural and familial obligations and duties. The context of their challenges in business, therefore, is considered in the broader context of the socio-economic conditions that largely govern their lives. We have observed that female champions, setting examples of success and progress for others to witness, have a breakthrough potential in terms of encouraging women to engage in markets and changing the minds of families and men who are hesitant to support it. These issues are explored further in our chapter on Gender, Family and Trade. In their livelihoods, our narrators rely heavily on experience and firsthand knowledge rather than skills received from formal education. In most cases their livelihoods have emerged as a bundle of skills and experience received from different sources, with nearly half of our narratives identifying as illiterate and having no formal education. Reasons behind leaving formal schooling are mainly related to poverty and the need for family support, however there is also a common perception that the skills in in formal education are not applicable in the informal economy. Nevertheless, our narratives show four main mechanisms through which our narrators learn skills other than formal schooling: generational, formal trainings, job experience, and informal apprenticeships. Our chapter Knowledge, Skills and Experience explores these issues further through the stories of our narrators. Risks are cross-cutting in the lives and livelihoods of our narrators, and with little to no formal prevention mechanisms available to them, stability in capital and business is hard to find. Natural disasters such as river erosion, cyclones and floods are recurrent in our narratives, with the effects on land and assets often being felt for a generation or more. Health and injury related risks are also very common, and with no social protection measures these shocks often devastate family and business in equal proportion. While some of our narrators operate in markets across the country to some degree, risks to life, limb and product in transportation caution them against further expansion. Our chapter on Risk and Resilience sheds light on some of the risks our narrators face, and how they respond to them.

Summary: Barriers and Bottlenecks

The following barriers and bottlenecks, grouped by thematic areas, are recurrent in our narratives across all sectors, Districts and demographics. All of these barriers and bottlenecks are explored further in the chapters of this book.

ECONOMIC BARRIERS Lack of capital Loan repayment Exploitation Lack of Assets

Wasif Gaws Creative Director Grey Shack Limited

MARKET BARRIERS

GOVERNANCE AND POLICY BARRIERS

Syndicates and Middlemen Competition Lack of Marketing Outstanding Credit

Political Unrest Harassment by Law Enforcement Administrative Non-cooperation Policy shift Corruption and Fraudulence

INFRASTRUCTURAL BARRIERS

SOCIAL AND CULTURAL BARRIERS

OTHER BARRIERS

Lack of Transportation Lack of Storage Perishable Products Informal business tenancy

Gender inequality Marriage and Dowry Racial discrimination Religious discrimination Nepotism Credit Cycle (social custom)

Natural disasters Seasonality Health and injury

Acknowledgements

This book has been prepared jointly by the United Nations Development Programme (UNDP) and the University of Dhaka. It is an outcome of months of dedicated work in the field, at the UN country office, and at the Universities of Dhaka and Rajshahi collecting and analyzing micro-narratives. The main authors of the various parts of the book were Eric Dales, Bokhtiar Ahmed, Kazi Maruful Islam and Nabeera Rahman. The authors wish to offer their immense gratitude to KAM Morshed and Palash Kanti Das, Assistant Country Directors, UNDP, for their invaluable guidance throughout the process. The authors would also like to sincerely thank the students who provided days, weeks and months of their time and talents in bringing this unique project to life. The book could not have been produced without the work of translators Aditi Kabir, Fahad Abdullah, Moniruz Zaman, Nasimul Haque and Sara Sharmen. We would also like to thank Mominul Islam and Khondoker Pervez Ahmed for their assistance with administration and procurement. The team would like to acknowledge Shadlee Rahman, Katrina MacGibbons and Radia Awal Trisha for their valuable contributions in analyzing the micro-narratives for this report. We would also like to thank Anik Islam, Kaniz Fatema, Tithi Dev and Nazneen Sultana for their time and insights. This book would not have been possible without the support of UNDP Senior Management, who continue to believe in this project and the value of the narrative method to fill gaps in our understanding about the challenges that the poorest market actors face. Finally, we would like to thank our narrators, who took time out of their busy and difficult lives to share their stories with us. We are infinitely grateful.

Table of Content Introduction â&#x20AC;&#x201C; Why Inclusive Trade?

Narratives â&#x20AC;&#x201C; Filling a Data Gap

Inclusive Trade Project Timeline

Demographics Who are our narrators? Barriers and Bottlenecks Forming Capital Journey to Market Governance, Grievance and Growth Gender, Family and Trade Knowledge, Skill and Learning Risk and Resilience Insights and Recommendations Sample Narratives Student Researchers and Project Team

02 02 02 02 02 02 02 02

INVESTMENT CAPITAL

CREDIT

ACCESS SAVINGS

GROWTH

RELATIONSHIPS MICRO-FINANCE

SEASONAL

BORROW

OWNERSHIP

BANK

PAYMENT

FORMING CAPITAL Wasif Gaws Creative Director Grey Shack Limited

SPEND

TAKA CROP

REMITTANCE

POLITICS

LOSS CASH

WHOLESALER

STRUGGLE

LAND

INSTALLMENTS

LOAN

ENTREPRENEUR

POVERTY EARN

EXPANSION

MERCHANT

OVERLAPPING

BUSINESS

CUSTOMERS

TRAPPED

INCOME

INTRODUCTION

Lack of capital or access to finance is the first and foremost barrier for poor market actors in Bangladesh. The challenge of forming capital, as our narratives suggest, is nearly synonymous to the challenge of starting a business. This process of building capital is the most elementary form of struggle that our narrators experience in their journey towards income and business growth. They accumulate capital from various sources, including borrowing from family or relatives, selling assets like land or other valuables, saving money from earnings in previous jobs, migrating abroad to work and earn, and most commonly, borrowing from different credit providers. A lack of capital is not only an early challenge; it haunts our narrators

throughout the entire course of their businesses. Their livelihoods exist in a constantly fragile equilibrium of capital flow and profit making. Downfalls and business failures often result in the loss of critical working capital. In many cases, this capital is drained out due to non-business factors like marrying off a daughter, a natural disaster, an illness in the family, or a slew of other factors. After such incidents, our narrators face the challenge of starting anew by building up capital all over again. This section explores some of the key issues that were raised in our narratives relating to the loans, credit and different forms of investment that play such a key role in creating, sustaining and scaling the businesses of the poorest market actors.

BUILDING CAPITAL FROM THE GROUND-UP: LOANS AND MICRO-FINANCE

Loans are the most common sources of capital for our narrators, and in Bangladesh, the birthplace of micro-finance, the opportunity to borrow money is never far away. Although all our narrators have availed microcredit at least at some point of life, their experience with these loans is contentious. Key issues for the poorest market actors surround interest rates, repayment schedules, and qualification criteria. Questions that inform our analysis include: From where are our narrators getting loans, who can access the loans, how do they repay them, and what roles do these loans play in capital formation? Requirements for formal bank loans are too strict for the majority of our narrators, who in most cases do not meet the collateral and documentation requirements. This indicates that poor market actors and marginal businesses cannot take advantage of the services Government or Non-Governmental organizations offer for business development. One of our narrators feels he is not welcome at the bank due to his illiteracy and lack of education, others believe loans are only granted based on political affiliation or land ownership.It is important to recognize that these perceptions are based on personal experiences, meaning that whether or not they are reflective of banks’ official policies, they are very real barriers to these individuals. Patuakhali fuel wood seller Tareque Rahman turned to micro-finance after being rejected by a formal bank, however with two overlapping loans of 30,000 and 40,000 taka respectively, he could not “invest a single penny” into his business, instead turning to the necessity of building a tin shed house.

I APPLIED TO THE NATIONAL BANK ONCE, BUT THEY SAID THAT I MUST HAVE LAND, PROPERTY OR BUSINESS AS COLLATERAL. OTHERWISE I WILL NOT GET ANY LOAN. NGOS GIVE SMALL LOANS, BUT IT’S NOT SIZEABLE … IF I GET 200,000 TAKA, I CAN RUN THE BUSINESS LIKE BEFORE. I WOULD STAY AT THE SAWMILL THE WHOLE DAY

Tareque Rahman, Fuel wood Seller, Patuakhali

A multitude of local and national organizations provide small loans to female entrepreneurs for the purpose of small business growth and, ultimately, poverty reduction. But are women the only ones making use of these loans? Whether through women in one’s family or women within one’s social network, our male narrators are consistently taking advantage of micro-ﬁnance to build their capital. One of the most successful narrators we have encountered in this research revealed his reasoning behind this use of micro-ﬁnance:

I HAVE AVAILED LOANS FROM (NAMES OF FIVE MICRO-CREDIT INSTITUTIONS REMOVED), THROUGH EVERY SYSTEM. OTHERWISE I CAN’T COPE WITH FINANCES. UNDERSTAND? OTHER WOMEN GIVE SMALL LOANS IN THE NAME OF 10 WOMEN IN THE VILLAGE. 20 THOUSAND, 30 THOUSAND TAKA. NOW TAKING A LOAN OF 30 THOUSAND TAKA IN THE NAME OF ONE WOMAN DOES NOT SUFFICE FOR ME. SO THEN I TOOK LOANS UNDER MANY WOMEN’S NAMES. I HAVE TO MAKE SURE I DON’T LOSE THAT MONEY. SO THAT PEOPLE DON’T GET TO HEAR THAT I BORROWED MONEY FROM SO-AN-SO’S WIFE TO INVEST AND DIDN’T RETURN IT. ONLY THE WIFE KNOWS. SO THAT IT DOESN’T HAPPEN. IN THIS MANNER I’VE LOANED A LOT OF MONEY THROUGH PEOPLE’S WIVES’ NAMES TO INVEST. IN SO INVESTING, I’VE GONE UP TO THE BANK AND COLLECTED 50 THOUSAND TAKA, 100 THOUSAND TAKA. UNDERSTAND THAT. THEN BASED ON ADVICE, I HAVE COLLECTED 500 THOUSAND, 200 THOUSAND AMOUNTING TO A MINIMUM OF 2 TO 3 MILLION TAKA FROM OUR LOCAL SOCIETY. THEN I SOLD FISH DURING THE SEASON AND RETURNED EVERYONE’S MONEY. I NEVER DEFAULTED OR GOT NOTICE OF PAYMENT FROM ANYONE. I NEVER WILL

Md. Yusuf Gazi, Fisherman and Fish Trader, Patuakhali

THE WIVES ARRANGE MONEY FROM HERE AND THERE, FROM SOCIETIES TO ASK THE MEN TO BUY THEM SOME GOODS. AND THEY SPEND IT ALL ON GAMBLING. IF THE GOVERNMENT COULD PUT A STOP TO THIS I WOULD BE ETERNALLY GRATEFUL. Aklima Begum, Poultry Farmer, Khulna

While recognizing that men accessing micro-finance loans through women is against one of the foundational rules of micro-finance, what can we learn by recognizing that it is indeed happening? If poor men attempting to grow their businesses are in need of a similar source of capital that is not available or reasonable through other sources, then this demonstrates a critical need that is not being fulfilled. Another practice we observed frequently is the overlapping of micro-finance loans in order to drum up more capital than these loans are offering. We can also recognize the cultural constraints that limit women’s’ ability to control the money they receive through loans. Our researchers spoke with Aklima Begum (name changed to protect identity) on a February afternoon in Khulna’s Gollamari bazaar while she tended her temporary chicken stall. Initially hesitant, she eventually opened up about her struggle to earn enough for her children to go to school while dealing with an abusive, drug-addicted and unsupportive husband. Aklima shared her difficulties in making the most out of micro-credit loans:

Whether loans from micro-finance organizations are being availed by men or women, many of our narrators have shared their difficulties in making repayments on time, and at the interest rate provided. Insan Ghazi from Patuakhali highlighted the difficulty of making weekly repayments when his cash flow and investments into his small scale farming operation were seasonal. When cash is needed to improve his crop through fertilizer or pesticides, it is always tied up in weekly installments instead. For this reason he is only able to make the most basic investments, bolstered by his family labour, and naturally his productivity suffers. During our conversation, his wife gave some context to the lack of flexibility shown by their creditors:

WE TAKE LOANS, THEY CHARGE A HIGH INTEREST. THEY CHARGE US INTEREST EVEN FOR THE DAY ON WHICH WE PAY THE LAST INSTALMENT Wife of Insan Gazi, Lentil Farmer, Patuakhali

To compound these diﬃculties, we have heard many claims of the ‘NGOs’ and ‘Societies’ pushing loans on poor individuals, or providing the loans for non-productive purposes such as Dowry, which would clearly be very diﬃcult to pay back. The danger of predatory lending has become very real in rural Bangladesh, as outlined by another Basket trader from Sirajganj, Abdul Mannan:

NO I AM NOT INTERESTED IN TAKING LOANS. I DO NOT TAKE LOANS BECAUSE I DO NOT NEED THEM. BECAUSE, REPAYMENT OF THE LOAN WILL EAT AWAY MY HARD EARNED MONEY. THERE WAS ONCE I HAD TO BORROW 14,000 TAKA. BUT THEN MY FAMILY REALLY NEEDED THE MONEY. AROUND THAT TIME MY WIFE HAD COMPLICATIONS IN HER STOMACH. THERE WERE WORMS IN HER STOMACH. SHE WOULD HAVE DIED WITHOUT THE SURGERY. SO, I TOOK OUT A LOAN FROM THE [NAME OF NGO REMOVED]. AND I HAVE SINCE REPAID THE MONEY. YOU HAVE TO REPAY THE MONEY IN INSTALLMENTS. I HAD REPAID THE LOAN WITH 7 OR 8 INSTALLMENTS STILL LEFT. BUT THEY WERE RELUCTANT TO LET ME GO. THEY WERE ASKING ME TO BORROW MORE MONEY AS MY WIFE HAD A SERIOUS SURGERY. I TOLD THEM THAT I DID NOT NEED IT.

Abdul Mannan, Basket Trader, Sirajganj

TRAPPED IN THE CREDIT CYCLE

Many of our narrators fall into a credit trap, where a social and economic necessity to provide goods on credit cuts deeply into their capital, leads to indebtedness and/or insolvency. This practice is deeply engrained into all of the communities that our researchers visited, a social custom that is wholly based on trust and social ties. The necessity of providing credit has been identiﬁed by narrators as a critical aspect of maintaining customers, but also the one biggest challenges that they face in sustaining or growing their business.In many instances, the pressure created by selling goods on credit translates into a need for additional capital, leading many of our narrators to take loans. In the worst scenarios, we have encountered individuals who have so much money lying out in the market as credit that they are unable to shut down a losing businesses. If one closes down the business, he or she has little hope of recovering the money, especially when regular customers are rolling over large amounts of credit. Shamsul Haq of Cox’s Bazar lost his shop to a cyclone, and subsequently could not recover large amounts of money from his customers, his logic is as follows:

THE SHOP IS JUST GONE. AND IF I DO NOT REOPEN THE SHOP, I JUST CANNOT ACCOST THE PEOPLE BY THE ROAD AND ASK FOR THE MONEY THEY OWE ME. IT’S JUST NOT DONE THAT WAY Shamsul Haq, Grocer, Cox’s Bazar

Credit can be an eﬀective strategy of increasing sales or expanding business in a competitive market situation. Yet, it takes a certain talent to keep the equilibrium steady. Md. Enamul Haq Raju, a grocer in Kurigram was one of the ﬁrst persons drawing our attention to this incredibly crucial factor for small traders in Bangladesh. At the age of 36, he has been running his grocery shop since 2004. He considers managing credit to be the most critical part of his business. He explains his experience of getting acquainted with the credit cycle:

I HAD A FEW STUMBLES EARLY IN THE BUSINESS, I GAVE OUT TOO MUCH IN CREDIT. THEN I TOOK OUT A LOAN FROM AND NGO. THE CONDITIONS WERE EASY ENOUGH. AFTER RECEIVING THAT MONEY I HAVE INCREASED MY STOCK IN THE SHOP. RIGHT NOW I HAVE AROUND 3 LAC TK. WORTH OF STOCK. AND THIS IS A VILLAGE SHOP, THERE ARE A LOT OF CREDITS. YOU NEED CASH CAPITAL FOR THREE PURPOSES: YOU HAVE TO BRING THE STOCK IN, YOU NEED SOME CASH IN HAND, AND THEN THERE ARE THE CREDITS. THERE ARE SALARY WORKERS WHO TAKE GROCERY ON CREDIT THE WHOLE MONTH LONG, THEN THEY PAY THEIR DUES AT THE END OF THE MONTH. THIS IS HOW IT GOES. I HAVE COPED UP WITH THE MATTERS REGARDING THE CREDIT. THE BUSINESS IS NOT THAT OLD. NO ONE CAN PROSPER OVERNIGHT, CAN THEY NOW? Md. Enamul Haq Raju, Grocer, Kurigram

Businesses we have explored through narratives not only give out credit to individuals within their social network, but also to other businesses and government institutions such as hospitals or jails, usually amounting to a much larger sum of money. Mohammad Bashir, the 29 year old poultry farmer from Kuakata sees this as an inevitable aspect of business. When we met him in late February this year, he was caught up in a credit cycle. His biggest customers are the hotels in Kuakata, where tourism is picking up in recent years. Yet the inﬂux of tourists is highly seasonal, and hotels often pay only part of the consignment he provides. Recently Bashir had to borrow 100,000 taka to boost up his working capital, for which he pays 10,000 taka every month as repayment – a signiﬁcant penalty for the unpredictability of his customers.

IF YOU ARE DOING BUSINESS IN KUAKATA YOU HAVE TO FALL INTO THE CREDIT TRAP. THE HOTELS PURCHASE CHICKEN ON CREDIT. THEY MAKE PAYMENT AFTER THEIR END OF BUSINESS IS COMPLETED. AS THE HOTEL BUSINESS IS NOT DOING WELL RIGHT NOW THERE IS MUCH CREDIT OUTSTANDING. HOW WILL THEY PAY THEIR CREDIT? THEIR BUSINESSES ARE NOT PERFORMING WELL. (TAKING SOME BREATH HE CONTINUED). I HAVE TWO LAC TAKA (CREDIT). IF I EVEN RECEIVED TK. ONE LAC OUT OF THIS I WOULD NOT HAVE TO RESORT TO TAKING LOANS. Mohammad Bashir, Poultry Farmer, Kuakata

Our validation team visited two narrators in Patuakhali to explore this issue further, and found that the debts owed to them leave them little option but to carry on business within the same cycle of credit. Fish trader Nazrul Islam, a relatively successful businessman among our narrators, has by his estimation up to 300,000 taka owed to him by his clients, mainly local hotels and government concerns like jails and hospitals. If he stops selling to them he risks not recouping any of this money and losing their business in one blow. Although his business has grown signiﬁcantly, he could not hide his disappointment surrounding this credit cycle and the pressure it puts on his family.

Tareque Rahman has taken advantage of the fact that his town in Patuakhali has no gas supply, selling fuel wood to households in his area on a monthly consignment. However he is owed so much money that he feels unable to switch livelihoods, even though the costs often outweigh the beneﬁts. With an estimated 60,000 to 70,000 taka outstanding, he shared what happens when he attempts to collect:

I WENT. BUT I ENDED UP SPENDING MONEY FROM MY OWN POCKET. GOING TO THEM (WEALTHIER CUSTOMERS) MEANS TRAVEL COST AND A DAY WASTED. THEN THE CUSTOMERS TRY TO CONVINCE ME THAT I SHOULD INSTEAD PAY FOR THEIR GROCERY SHOPPING. THEY SAY, ‘LET US LIVE FIRST; HOW CAN WE PAY YOU?’ SOME OF THEM CAN PAY, HAVE THE INTENTION, BUT DO NOT PAY. Tareque Rahman, Fuel wood seller, Patuakhali

MY MONEY IS LYING WITH CUSTOMERS AS CREDIT. I SOLD 500 TAKA CASH AND THE WHOLE AMOUNT REMAINED UNPAID. I HAD TO TAKE MONEY FROM HOME TO SPEND IN THE BUSINESS. IF I REALIZED THE OUTSTANDING THEN I COULD RUN THE HOUSEHOLD EXPENSES. IN ANGER I WOULD SAY I WILL NOT DO THIS BUSINESS. THE SITUATION HASN’T CHANGED. PREVIOUSLY, I WOULD SELL 200 OR 400 TAKA AND GIVE 500 TAKA CREDIT. NOW I SELL 1,000 OR 1,500 OR 2,000 TAKA AND THE WHOLE AMOUNT REMAINS AS CREDIT. IF I REALIZE THE MONEY THE NEXT DAY THEN MONEY REMAINS IN HAND. THEN I CAN BUY SOMETHING FOR MY CHILDREN OR MYSELF TO EAT.

Nazrul Islam, Fish Trader, Patuakhali

THEY WILL CHARGE US MORE. THEY WILL CHARGE 10 TAKA EXTRA PER BAMBOO…. I CANNOT SEEK OUT OTHER MERCHANTS, I WILL HAVE TO BUY BAMBOOS FROM HIM.

THEN THEY WILL CHARGE 30 FOR A BAMBOO THAT IS 20. THAT IS THE RULE IN CASE OF A CREDIT. IF I COULD HAVE REPAID THE DEBT, THEN I COULD HAVE LOOKED FOR A BETTER PRICE FROM VARIOUS MIDDLE MEN. IT IS LIKE THE FISH MARKET, IT’S A HAGGLER’S HEAVEN. BUT HERE I AM STUCK IN A DEBT IF 55,000 TAKA. IF I CANNOT REPAY THAT DEBT, I CANNOT SEEK OUT OTHER BAMBOO SELLERS.

Md. Jahangir, Basket maker, Sirajganj

Narrator Nazmul Gazi (name changed to protect identity) from Satkhira is in the business of collecting natural honey from the Sunderbans, a product that is in high demand and a family tradition for generations. As will be explored in the Journey to Market section of this report, producers like Nazmul are constantly at the brink of economic disaster due to the violence and extortion of local gangs, however his clients play an equally damaging role in this sector. Permits, transportation and the necessary bribes make honey collecting an expensive task, so merchants provide cash advances to collectors. The catch – these advances must be paid back with 1kg of honey for each 1,000 taka loaned, in additional to the principal and interest. Nazmul will take the remaining honey home to ﬁnd customers at 300-500 taka per kilo – fortunately he has recently found some clients in Dhaka to keep him aﬂoat.

Another key element of the credit cycle that arose in the narratives is on the other side of business transactions. We have observed merchants or raw materials suppliers taking advantage of the lack of capital among poor market actors to supply them with high-price inputs on heavily coercive terms. For example, basket maker Md. Jahangir from Sirajganj is forced to buy expensive inputs from a wholesaler due to the money he owes to him from previous purchases, ensuring that he stays indebted and a loyal customer.

REMITTANCES

If one theme permeates any literature on poverty reduction in Bangladesh and elsewhere, it’s the desire for more capital and investment. Micro-ﬁnance has famously satisﬁed a need for productive capital among poor women, however as seen in this report it does not satisfy the need for capital among all poor market actors. Although the majority of our narrators did not have the funds to travel or send family members overseas, there were cases where remittances provided critical capital in starting a business. Sylhet Grocery shop owner Mahbubur Rahman is one of our narrators who accumulated his capital by going abroad. Three of his sisters were unmarried and much of the economic responsibilities of the family fell on him. This pushed Mahbubur to travel to Dubai in 1993 with a labor visa, joining a company and working for them for 6 years. On his return in 2011, he established the shop he runs today. He deposited 200,000 Taka security money, bought goods worth 200,000 Taka for the business and spent 80,000 Taka for shop decoration.

Satkhira’s Shikha Haﬁz, whose story we explore further in the section on Gender, Family and Markets, shared with us her struggle to raise her son and earn a living as a single mother. After getting married at only 9 years of age to a 35 year old man, she found herself supporting the family following her husband’s stroke. Remittances from her son proved crucial in forming a critical mass of capital for her poultry business.

MY HUSBAND GAVE ME A PIECE OF LAND. HE GAVE ME 6 DECIMALS. I SOLD IT AND GOT 60,000 TAKA. WHEN THEY WERE RECRUITING PEOPLE TO GO TO DUBAI, MY SON AND I WENT. SO WHEN THE FOREIGN RECRUITERS CAME HE HAD ALREADY FINISHED HIS BACHELORS. THEY TALKED TO MY SON IN ENGLISH. MY SON SPOKE ENGLISH VERY WELL. HE LEFT THE COUNTRY. HE SPENT 60,000 TAKA FOR IT AND GOT A JOB PAYING 40,000 TAKA. SINCE THEN HE HAS BEEN EARNING. MY LIFE CHANGED FROM THERE. MY SON USED TO SEND MONEY HOME. I USED MY SON’S MONEY TO OPEN THE POULTRY.

Shikha Haﬁz, Poultry farmer, Satkhira

Land and Other Forms of Capital

As our narratives strongly suggest, issues surrounding capital formation do not only relate to the accumulation of cash. The formation process also involves, and is often supported by, other forms of capital such as land; social capital; small businesses on the side; home-based agricultural production; political connections; formal recognition or awards; and so on and so forth. All these factors play a crucial role in shaping capital formation and management, as well as providing a safety net in the case of loss or external shocks. Overall, our narratives show that the struggle and advantages of the capital formation process are anything but one-di-

mensional, various forms of capital beyond cash are put in play when growing a business or building relationships. One of the most crucial forms of non-cash capital is land, which provides a buďŹ&#x20AC;er against losses, and serves as the most widely accepted form of collateral for accessing loans. If this land can be cultivated then it also relieves pressure on working capital from personal costs such as childrenâ&#x20AC;&#x2122;s education and other family expenses. When agriculture is the primary business, then land is almost synonymous to capital.

Mujib Sheikh, from [INSERT DISTRICT] cultivates fish and rice. He started his story with a sense of longing for the lands his family lost due to his father’s short sightedness. He sold the land even before Mujib was old enough to have a voice in the decision. He eventually started a fishery by leasing land with money that he saved from working in a jute mill and borrowed from different sources. Through the course of his business, he has faced capital loss several times due to production failures or family accidents. With the support of many loans and the income from his rice cultivation on the side, Mujib has always managed one way or another to restore his working capital. When asked what would be key to success for businesses like his, his answer was money, land and knowledge.

LACK OF CAPITAL IS THE BIGGEST PROBLEM. IT WOULD GOOD IF I HAD MONEY, IT WOULD BETTER IF I HAD MY OWN LAND. I RENT LAND FROM OTHERS WHICH IS TROUBLESOME. SAY FOR EXAMPLE, I DID CULTIVATION AND FISHERY WONDERFULLY ON THE RENTED LAND. WHEN MY CONTRACT IS OVER, OTHER PEOPLE WILL OFFER THE OWNER MORE MONEY FOR THE LAND. SO, I HAVE TO PAY HIM A LARGER AMOUNT AS ADVANCE. THIS EATS UP MY CAPITAL, I AM IN SHORT OF CAPITAL.

Mujib Sheikh, Fisherman and Rice Cultivator, Khulna

INFRASTRUCTURE SYNDICATE

HELPLESS INFORMAL

JOURNEY TO MARKET POWER PROCESS PRICE

MARKET

SCALE

VALUE

VILLAGE

SPOILTOWN

RICKSHAW

STORAGE

WHOLESALER

PRODUCERS

SPEND

BRIDGE

TRAVEL

EXTORTION

MIDDLEMEN

RISK TAKA COST

QUALITY RIVERREMITTANCE

TRANSPORTATION

FRAUDULENCE

PRESERVE

TRUCK

COMPETITION

BOAT

PAY

THIEVES

GOODS

DEMAND

ORGANIZE INFORMATION

CHEAT

ILLEGAL

INTRODUCTION PARAGRAPH

Our narrators, referring the producers and market actors that we spoke to over the course of our research, are typically ‘underdogs’ in the market situation. The first and foremost challenge for many of them is finding a place, both in physical and procedural sense, in the market. Their stories suggest that the market is a sort of battlefield of costs, risks and influence where they are the least equipped warriors. The issues of transportation, storage, ‘middlemen’ and market syndicates converge in the narratives we have collected. High transportation costs and a lack of storage options have come up across the country, often leading to the formation of market syndicates made up of wholesalers who use their ability to bear these expenses to push exploitative prices on the producers who cannot. The challenges that our narrators experience on the ‘journey to market’ are multifaceted, characterized by poor

infrastructure, informal power structures, and a lack of organization that leaves them vulnerable to many different forms of exploitation. Our narrators who use the market to sell their own produce reach it through a journey involving the above obstacles of infrastructural barriers, and often political barriers like the payment of illicit tolls to local power brokers. Much of the value of their products, and hence their profit margins, is diminished in the very process of reaching the market. As a result, their power in the markets they ply is drastically weakened, lowering their defenses against predatory market actors who provide credit and loans, and manipulate the price of goods. When we speak of our narrators as ‘the poorest market actors’, this is descriptive of both their income and their lack of influence relative to other market actors.

TRANSPORTATION AND STORAGE

Many of our narrators referenced the high cost of transportation as a critical barrier to getting more value from their products. Poor transportation infrastructure is widely seen as one of Bangladesh’s critical bottlenecks on the path towards higher economic growth, however the ways in which the poorest access transportation facilities is an area which requires more understanding. As much as investments in infrastructure

are needed, further analysis of how roads, waterways and bridges are used by the poor are also necessary; high ‘fees’ by local power brokers, harassment from local oﬃcials and transportation syndicates plague our narrators along their journey . Our narrators have consistently expressed a sense of helplessness in response to this rent-seeking behavior (see chapter on Governance and Rule of Law).

While initiatives to provide market information to poor producers have cut into the ability of middlemen to exploit them, transportation costs and risks of perishability still present big barriers to fetching a fair price. Patuakhali lentil famer Insan Ghazi and Rangamati ﬁsh seller Sakhina Akhter show that the journey to market is often a one-way trip for poor producers – a risky gamble that many are not willing to take.

IN THE VILLAGE IF SOMEONE NEEDS RICE FOR THE HOUSEHOLD, THEY’LL COME UP TO THE HOUSE TO COLLECT IT. OTHERWISE IT HAS TO BE TAKEN THE TOWN MARKET (SADAR). THE PRICE AT IN THE VILLAGE SHOULD BE AROUND 1,600 TO 1,650 TAKA. THEN THERE IS THE HIRE FOR THE CART. IF WE RETURN WITHOUT SELLING THEN THERE’S THE COST FOR TRANSPORTING IT BACK BY CART. SO WE CAN’T DO THAT. ON THE OTHER HAND THE OWNER OF THE LAND HAS TO BE PAID. HE’LL SAY, ‘HEY, INSAN, YOU SAID YOU’D PAY ME THIS AFTERNOON. YOU HAVEN’T PAID.’ I’LL SAY, ‘I TOOK IT TO THE MARKET. BUT THEY’RE OFFERING 1,300 TAKA, SO I COULDN’T SELL.’ HE’LL SAY, ‘COME ON! DO YOU EXPECT ME WAIT FOR THAT?’ THEN WE’LL HAVE TO SELL AT 1,000 TAKA, OTHERWISE

WE’LL LOSE THE LAND. LOSING THE LAND WILL SPELL DISASTER.

INSAN GAZI, LENTIL FARMER, PATUAKHALI

SO WE SELL ALL THE FISHES WE FIND. THIS IS ALSO BECAUSE FISH ARE VERY MUCH PERISHABLE. WE CANNOT PRESERVE THEM FOR NEXT DAY. IF WE CANNOT SELL THEM WE NEED TO WAIT FOR THE MIDDLEMAN. THEY COME IN BOAT AND BUY ALL OUR FISH. BUT THEN WE HAVE TO SELL THEM AT LOWER PRICES. IF WE GO TO THE MARKET WE CAN SELL OUR FISHES AT A BETTER PRICE TO THE TRADERS. BUT IT IS NOT POSSIBLE FOR US TO GO TO MARKET ALWAYS, WE NEED TO GO BY BOAT. BESIDES WE DO NOT HAVE FREEZING SYSTEM OR COLD STORAGE. WE DO NOT EVEN HAVE ANY ICE TO PRESERVE THE FISH FOR NEXT DAY. SOMETIMES WE GET A SMALL AMOUNT OF FISH LIKE 2/ 3 KILOS. GOING TO THE MARKET WITH THIS LITTLE AMOUNT OF FISH IS EXPENSIVE. WE HAVE TO PAY ALMOST ALL OF OUR MONEY FOR THE BOAT RENT. SO WE HAVE TO SELL THE FISH AT LOW PRICES TO THE MIDDLEMAN. OTHERWISE ALL THE FISH WILL ROT AND WE WILL GET NOTHING.

SAKHINA AKHTER, FISH SELLER, RANGAMATI

A lack of technology and capital to preserve products at the small scale has a very detrimental eﬀect on the prices that producers receive, and cuts into their ability to supply goods at a consistent quality. Jamalpur Leather producer Mr. Manju refers to the lack of a chromium-based tanning material called ‘wet blue’, forcing him to sell salted leather and leaving him at the mercy of the market. Surrounded by his salted leather stretched out and drying in the sun, 52 year old Manju shared this perspectives with our researchers.

WE DO NOT HAVE ANY PROCESS THAT WE CAN PRESERVE LEATHER FOR SIX MONTHS. KUWAIT CAN PRESERVE THEM BY BLUE [CHROMIUM]. WE DO NOT HAVE THAT BIG CASH. TO BLUE A LEATHER WAREHOUSE, CHEMICALS, MACHINES ARE NEEDED. WE DO NOT HAVE THOSE. SALTED LEATHER CAN BE PRESERVED ONLY FOR 30 DAYS. IF IT IS NOT SOLD WITHIN THIS TIME ITS VALUE WILL DECREASE. THAT MEANS WE HAVE TO SELL WITHIN THE SPECIFIC TIME, EVEN IF IT HAS TO BE SOLD AT LOSS. AND IT IS BY THE GRACE OF ALLAH IF PROFIT IS MADE.

Manju, Leather Trader, Jamalpur

NOW THOSE WHO TRADE IN PEPPER ARE DOING GREAT. THE RISK OF LOSS IS NON-EXISTENT. THERE IS NO FERRY CROSSING. THEY JUST REACH THE RIVER BANK AND CROSS IT. BUT NOW THE ROADS ARE GREAT. THE PROBLEM I HAD WITH MY ONIONS WAS BECAUSE OF RAIN. THERE WASN’T ANY THICK CLOTHS BEFORE. EVEN A LITTLE RAIN USED TO DRENCH EVERYTHING. WE HAD TO MAKE BIG ‘MATHALS’ TO KEEP THE PADDY DRY. NOW YOU CAN COVER THEM UP WITH SPECIAL PAPER AND RAIN WILL NEVER REACH THEM. IF I HAD THOSE PAPERS IN MY TIME, MY ONIONS WOULD HAVE NEVER GOT SOAKED.

JAHURUL, RICE TRADER, SIRAJGANJ

Improvements, however, have also been noted by our narrators. A Kuakata craftsman who relies on tourism is conﬁdent that new bridges between him and Khepupara would help the area compete with the popular sea beach in Cox’s Bazar, and a Sirajganj rice processor notes that a simple large plastic tarpaulin and expedited river crossings now enable vegetable producers to keep their product from perishing.

THE ‘MEN’ IN THE MIDDLE

One of the most pervasive actors of a poor producer’s journey to market is the wholesalers or ‘middlemen’, who play a role that is either essential, distortive, or a mix of the two in our narrators’ livelihoods. These actors can serve as a source of investment, inputs, and a means of avoiding the high-risks associated with transportation and storage. However their high level of utility to poor producers is also abused through price distortion, coercion and unpaid balances. Out of 158 total narratives, 53 of them mentioned these ‘middlemen’ as holding a signiﬁcant level of inﬂuence in their markets.

The role of the ‘middleman’ in the markets of our narrators is largely to transport goods from several small scale producers to market, bearing the costs and challenges of transportation and storage. Especially in areas like the Chittagong Hill Tracts where transportation is most diﬃcult, these actors play a key role and provide a convenient market for producers. However this position of relative power in the value chain also leads to the exploitation of those who either do not have suﬃcient market information, cannot travel to market themselves, or most commonly have no other choice but to accept the price.

However the struggle of small-scale producers does not end with a sale, several of our narrators have pointed out that wholesalers rarely pay in full upon receiving the goods. A producer of bamboo mats from Kurigram had to shut down his business due to the amount owed to him by wholesalers, and a Habiganj hand-rolled cigarette producer shares that she had to resort to Grameen bank loans to keep her business aï¬&#x201A;oat when wholesalers refused to pay what was due. Revisiting the story of leather producer Mr. Manju, we see that he strives for some form of written agreement with the wholesalers, but unfortunately operates at a scale where this is not possible. With this lack of formality, scaling up and sending larger orders to Dhaka is simply too much of a risk.

THERE IS NO SUCH WRITTEN DOCUMENT OR RECEIPT IN OUR LEATHER TRADE. RECEIPT IS KEPT

WHEN YOU DIRECTLY DEAL WITH THE TANNERY. IN BANGLADESH MOST OF THE SMALL TRADERS TRADE INFORMALLY, AND AS A RESULT THEY ARE OFTEN INSECURE IN BUSINESS TRANSACTIONS. IT TAKES MORE MONEY TO TRADE DIRECTLY WITH DHAKA. MORE CAPITAL MEANS EACH TRUCK NEEDS MINIMUM 30 LACS TAKA OF PRODUCT. HOW WILL WE GET THAT 30 LACS TAKA? NOW IF WE DELIVER PRODUCTS OF 30 LACS, THEY PAY US 10 LACS AND KEEP THE 20 LACS FOR GRADUAL PAYMENT. THEN WE HAVE TO DELIVER PRODUCTS OF 30 LACS AGAIN. SO WE NEED DOUBLE CAPITAL. WE DO NOT HAVE DOUBLE CAPITAL. SO WE, THE SMALL TRADERS SELL AT MARTS.

Manju, Leather Trader, Jamalpur

This power imbalance in markets has led some ‘middlemen’ to organize, setting the price for a given good and ensuring that they all proﬁt in the process. Some have even resorted to violence, as narrated by Abul Kalam from Sirajganj, who claims that following the murder of the president of the Bangladesh Handloom and Power-loom Owner’s association (also a Mayor of Narsingdi, a vocal advocate against rising prices of yarn), a syndicate emerged that has led the local weaving business to the precipice of destruction. Honey collector and ﬁsherman Nazmul Gazi (name changed to protect identity) from Satkhira shared, with convincing imagery, what it is like selling to merchants who will collude to ensure that he either sells his crab to them at their price, or to no one at all:

THE TARGET OF THE CRAB ‘FURI’ (MIDDLEMEN) AND THE TARGET OF THE TIGER IS THE SAME. JUST LIKE NOBODY CAN GET AWAY IF A TIGER

TARGETS HIM, SIMILARLY, SOMEONE TARGETED BY THE CRAB FURI WILL NEVER BE ABLE TO SELL TO ANYONE. I CAN SWEAR THAT ON THE KORAN. AGAIN, WHEN WE GO TO FETCH OUR MONEY THEY START EVADING. THEY START A DRAMA.

Nazmul Gazi, Honey Collector and Fisherman, Satkhira

Revisiting the case of Patuakhali lentil farmer Insan Ghazi, we see that even when farmers are in the position to proﬁt from high market prices, wholesalers in his town have colluded to capture as much of this margin as possible before higher supply pushes prices down: The prospect of protection against these syndicates is not something commonly mentioned in our narratives, however narrators have mentioned a lack of ‘solidarity’, especially relative to the ‘uniﬁed’ and well-organized syndicates of middlemen. One time-tested way to enhance the power of small producers in the market is for them to organize into groups for collection, processing and shipping, a practice which has yielded positive results in many parts of Bangladesh. However this practice is yet to reach any of the small producers that we have spoken to in our research.

WHEN THE PRICE IS HIGH ON ONE MARKET DAY, THERE IS EXTRA SUPPLY OF LENTIL ON THE NEXT MARKET DAY. THEN 10/12 WHOLESALERS GET TOGETHER AND FORM A SYNDICATE. THEY ARE THIEVES. THE PREVIOUS DAY’S MARKET RATE WAS 2,800 TAKA. TODAY IT’S 1,800 TAKA. Insan Gazi, Lentil Farmer, Patuakhali

INSIDE THE MARKET: COMPETITION, MARKETING AND DEMAND

As we have seen in this section, individuals who use the market to sell their own produce must navigate a journey involving multiple barriers, taking on a signiďŹ cant amount of risk in the process. As a result, when they actually arrive at the marketplace, they are already a weaker market player with reduced room for proďŹ t. Their existence in the market is essentially precarious from the very beginning. In terms of physical spaces, which are commonly shops or temporary open spaces in the market, availing one and maintaining tenancy is a challenging endeavor for the poorest market actors. Very few of the

traders we have met own a shop. The majority of the shops are rented, keeping their businesses under constant threats of eviction and unpredictable changes in the terms of their tenancy such as increasing rent. We even have stories where the shop owners evict traders who have a successful business so that they can do the business themselves. Those who cannot manage to rent a shop usually occupy a street corner in the bazaar, for which still they need pay a bazaar management committee, municipality or local power brokers. The issue of forced evictions is covered further in the section on Governance and Rule of Law.

Sunamganj restaurant owner Rois Mia lives about 200 meters from Seemanto Bazar, a border market that is open one day per week and shared between Indian and Bangladeshi traders. After the process of getting a shop in the very tightly secured market proved too convoluted and opaque for anyone from his small village, Rois instead took advantage of the traﬃc to start a restaurant.

THE BORDER MARKET WAS ESTABLISHED THREE-FOUR YEARS BACK; IT WAS IN 2012. I THOUGHT I WOULD GET A CHANCE TO DO SOME BUSINESS IN THE MARKET, BUT I DIDN’T GET ANY SUCH OPPORTUNITY. THE THEN LEADERS OF THIS PLACE (NAME REMOVED) AND (NAME REMOVED), AND THE PRESENT LEADER (NAME REMOVED) TOLD ME THAT I WOULD HAVE TO SHOW A SLIP OF ONE AND HALF LAC TAKA, AND BANK BALANCE TO RUN SHOP THERE. I WAS NOT FINANCIALLY CAPABLE OF THAT. AT THAT TIME THERE WAS NOT EVEN A SINGLE SHOP OWNED BY ANYONE FROM DOLRA VILLAGE. NO

ONE FROM DOLRA TOOK PART IN THE BIDDING. ACTUALLY WE WERE AFRAID THAT ONLY THE LEADERS FROM SUNAMGANJ WOULD DO BUSINESS THERE. HOW COULD WE SHOW OUR BANK BALANCE? LATER ON WHEN WE WENT TO THE DC OFFICE, THEY TOLD US THAT IT WAS NOT RIGHT. THEY TOLD US ONLY TO SUBMIT AN APPLICATION. ACCORDING TO THEM TWENTY FIVE SHOPS WOULD BE ALLOCATED THROUGH BIDDING. BY THAT TIME, THE APPLICATION SUBMISSION DEADLINE WAS ALREADY OVER. SUCH WAS THE SITUATION.

Rois Mia, Restaurant Owner, Sunamganj

Competition – both ‘fair’ and ‘unfair’ – is a key theme among our narrators, who are constantly seeking a competitive edge. Unfair competition takes many forms in their livelihoods, including unfair credit terms from lenders; fraudulence and adulteration of products; manipulation of market prices by syndicates; collaboration with local officials to exploit or cause damage to a competitor; or the effect of illegal and legal imports on local prices. For many trades, competition is an early challenge, when they are seeking to establish themselves in already saturated markets. For others who start with less common products such as handicrafts, competition surfaces later when they expand to new markets. The challenges are best portrayed by Khulna banana trader Milon Mallick who attempted to trade in many different products in the past. Milon’s story, mainly surrounding his struggle to form and maintain enough capital, began with his earliest difficulties in the market:

THE DIFFICULTY WAS THE PRESSURE I FELT AS A NEW ENTRANT. A NEW TRADER IS NOT GIVEN A CHANCE. THE

OTHERS SOLD AT LESS PRICE AND MY PRODUCE WOULD REMAIN UNSOLD. THE OLD TRADERS WOULD NOT GIVE THE NEW PEOPLE A CHANCE. I USED TO BUY FRESH PRODUCE LIKE POTATOES AND OTHER VEGETABLES FROM KHULNA AND KUMARKHALI. AT FIRST I DID SUFFER LOSSES AND DID NOT UNDERSTAND WHY. SOMETHING BOUGHT FOR 10 TAKA PER KG WOULD BECOME 12 TAKA, WITH TRANSPORTATION. OTHER OLDER TRADERS WOULD TRY TO CREATE PRESSURE. THE UNSOLD GOODS USED TO ROT. THE OTHER TRADERS WOULD TELL ME THAT THEY HAD DECIDED TO SELL AT 15 TAKA PER KG. LATER I’D FIND THEY HAD SOLD FOR LESS WHEREAS I HADN’T SOLD ANY. THIS WAY MY GOODS ROTTED.

Milon Mallick, Banana Trader, Khulna

International trade and associated policies add another dimension to the competition scenario. The import of certain goods and products, especially in agriculture, pushes many poor market actors into the midst of unequal competition. In many cases, foreign products that are technologically advanced, mass produced and/or ‘dumped’ (referring to the process of exporting products at a price that is below the cost of production), threaten the very existence of local products. Seasonal agro-product seller Md. Shawkat Ali from Saidpur of Nilphamari, one of the most important business hubs in northern Bangladesh, pointed to the import of Indian rice, wheat and corn during the peak season. He and his fellow entrepreneurs have faced losses several times since imports from India ﬂooded the market and pushed down prices. Our narrators who produce bamboo baskets have also noted the decline in their business since plastic crates from India have come on to the market.

ONE REASON FOR UNCONTROLLED PRICES IS THE AVAILABILITY OF INDIAN PRODUCTS IN THE LOCAL MARKET. DINAJPUR, PANCHAGAR AND KURIGRAM ARE THE NEIGHBORING DISTRICTS TO RONGPUR WHICH HAS A BORDER WITH INDIA. THROUGH THE BORDERS OF THESE DISTRICTS A LARGE NUMBER OF INDIAN AGRICULTURAL, INDUSTRIAL AND FOOD PRODUCTS ENTER INTO THE MARKET. THESE INDIAN PRODUCTS REPLACE AND REDUCE THE DEMAND OF LOCAL PRODUCTS. THESE PRODUCTS ENTER INTO THE BANGLADESHI MARKET THROUGH BOTH LEGAL AND ILLEGAL WAYS. OUR GOVERNMENT SHOULD MONITOR THESE CAREFULLY. BUT THEY ARE CARELESS ABOUT IT. SO, DUE TO ILLEGAL PRODUCTS OUR COUNTRY IS LOSING THE VAT AND TAXES AND THE SMALL TRADERS ARE LOSING NECESSARY PROFIT. ONLY SOME LARGE BUSINESSMAN GAINS PROFIT THROUGH THIS PROCESS. Md. Shawkat Ali, Agro-product Seller, Nilphamari

We had similar testimony from Jahurul a rice processor from Sirajganj.

INDIAN RICE WAS NOT SUPPOSED TO BE SOLD IN OUR MARKET BUT IT IS. AND THE MARKET HAS FALLEN. IF FOREIGN RICE IS OFF

THE MARKET, THE PRICE OF RICE GOES UP.

Jahurul, Rice Processor, Sirajganj

Rangpur seasonal trader Rohidul Islam futher supported this threat to agricultural markets in the north of the country.

INDIAN POTATO, ONION, GARLIC, RICE, WHEAT, SPICE ETC. ARE FREQUENTLY SMUGGLED. THESE PRODUCTS HARM THE MARKET OF THE LOCAL PRODUCTS. THE LOCAL PRODUCTS ARE

LOSING CUSTOMERS. FARMERS AS WELL AS LOCAL BUSINESSMEN ARE NOT SEEING PROFIT.

Rohidul Islam, Seasonal Vegetable Trader, Rangpur

The inï¬&#x201A;uence of Indian goods, whether imported legally and illegally, on Bangladeshi markets, comes up throughout our narratives and requires attention at the policy level. As is called for in the Doha Development Round, studies on the impact of foreign products and trade liberalization on domestic markets is necessary to ensure that Bangladeshi products are not exposed to unfair or damaging competition.

FRAUDULENCE AND COMPETITION

In some stories we have found that in order to compete in markets, some of our narrators have resorted dishonesty and illegal activities. We see that fish trader Nitai Biswas of Khulna, like many others in his trade, started injecting a jelly-like substance into his shrimp to increase the weight at market. At one point he was arrested and police fined him and threw away all of his fish, leading to a loss of approximately 500,000 taka. However more often, the traders themselves become the victims of fraudulence. Shikha Begum, the Satkhira poultry trade who has engaged in several sectors in the struggle to form capital and raise her son, is no stranger to fraudulence and even outright sabotage. In the poultry trade, she was cheated by her suppliers who mixed substandard chicks with good ones, eventually causing her substantial loss. However in a prior foray into producing fish she was sabotaged by a competitor, taking her right out of the market.

THEY SPREAD ‘ANDRINE’ (PESTICIDE) IN MY GHER. WHEN MY GHER WAS DOING WELL THEY KILLED MY FISH WORTH 800,000 TAKA. MY GHER WAS SITUATED AT A DISTANCE. THE THING THERE WAS THAT IF ONE PERSON’S GHER DOES NOT DO WELL THEN THEY POUR ANDRINE IN OTHER GHERS. THE ANDRINE FINISHED MY FISH. THEY ALL DIED. AGAIN I LOST MY CAPITAL. Shikha Begum, Poultry Farmer, Satkhira

MARKETING AND DEMAND

Along with the many supply-side constraints covered in this section, the prospect of drumming up demand is also a consideration of our narrators. The issue of marketing techniques has come up in 16 of our narratives, with various strategies on how a product or business should be promoted. In Netrokona, Kurigram and Sirajganj we found individuals who believe a strong social network is a foolproof marketing strategy, while people in the handicraft business see the value of more practical strategies such as packaging, signboards, and recognition from NGOs. Looking at the narratives, we can see the premium that is put on official recognition – whether it be entrepreneurial awards from banks or NGOs; certificates of trainings; or official certification from a standards institution such as BSTI. Meeting with our narrators we found great pride in these forms of recognition, with evidence such as certificates and awards displayed clearly in their place of business. In sectors where there is a high level of local competition and overlap, this differentiation provides a competitive edge, and even serves as a valuable tool for setting up new business partnerships and getting loans. In fact, some of the narrators recognized that speaking with our research team was a marketing opportunity in itself, and made sure that they gave us all the time and details we needed. On the flipside, a lack of recognition can make selling a product extremely difficult. Trainings on quality standards and hygiene are in demand from the small scale food producers that we have spoken to. Honey collector Nazmul Gazi (name changed to protect identity) was trained by local NGOs to sanitize containers for his honey before storing it, however he claims that BSTI is hesitant to certify his honey because it is collected by hand:

WE HEAR A LOT OF TALK ON THE TV, RADIO, INTERNET, DISCUSSIONS ABOUT DIFFERENT GROUPS EVERYWHERE. YET WE FOREST DWELLERS DON’T RECEIVE ANY RECOGNITION FROM THE GOVERNMENT.THERE IS NO MARKETING FOR (OUR HONEY) BECAUSE BSTI GIVES NO SANCTION TO US. WE CANNOT TAKE A SHOP IN SHYAMNAGAR OR MUNSHIGANJ TO SELL THESE BECAUSE WITHOUT BSTI AUTHORIZATION THE DIFFERENT BRANCHES OF ADMINISTRATION WILL COME AND HARASS US. Nazmul Gazi, Honey Collector, Satkhira

VANDALIZE

POLICY

POOR

PROCESS

ISSUES ACCESS

DECISION

GOVERNMENT

BUSINESS

LAW ENFORCEMENT SYNDICATES PRODUCE

IDEAL

SYSTEMS

TRADE

POWER

RELATION CRIME

CORRUPTION

LAW

GOVERNANCE GRIEVANCE ANDBRIBEGROWTH EVICTION

MARKET

INTRODUCTION

Governance and rule of law are enabling factors when it comes to economic growth. Effective governance and justice systems cannot create growth or reduce poverty on their own, however they can certainly constrain them. For our narrators governance comes down to the small but significant issues such harassment by the police, rent seeking, bribes to the government officials, corruption and non-cooperation from the government. In this sense, government, policy and justice enforcement are perceived either as a constraint or as a distant ideal by our narrators. This applies not only to a lack of representative governance at the decision-making level, but also the unfair implementation of various government programmes such as the allocation of land and

disaster relief, that are designed to support the poorest market actors but end up bypassing them due to nepotism or corruption. An open dialogue about how law enforcement and governance aﬀects the poorest market actors in practice can support better targeting and redress systems for the poor, and could even lead to addressing some of the incentives that create rent-seeking behavior. This section highlights some of the experiences of the poorest market actors that we have spoken to in relation to governance, policy and rule of law.

THE POLICE, POWER AND THE POOR

The police are central actors in in the lives of many of our narrators, who encounter them mainly on their journey to market. None of our narrators have mentioned encounters with the police in a positive or protective manner, in fact police are perceived as one of the main risks relating to transportation and trading in the market. Informal fees paid to police are accepted by producers and traders in our narratives as part of the cost structure of their business, and serve only as protection from further harassment from police themselves. Fruit trader Chan Miya of Sirajganj has been the raw produce business for 30 years, after beginning to buy and sell goods at 11 when his father died and his family was thrust into poverty. Chan Miya is a middleman, stocking and selling whatever is in season, and transporting goods around the country in the process. He shared the risks he faces along the way:

YOU HAVE TO BRIBE THE POLICE. POLICE WILL TAKE MONEY FROM THE TRAWLERS. AND WHEN THE MERCHANDISE ARE ON THE ROAD, POLICE FROM EVERY DISTRICT HAVE TO BE BRIBED. WITHOUT BRIBING, THE SHIPMENT WILL NOT

BE ALLOWED TO MOVE.

THEY WILL ASK US TO PULL OVER, THEY WILL CLAIM THAT WE ARE CARRYING ILLEGAL GOODS, THERE IS A LOOSE NUT THERE SOMEWHERE, THE COLOR IS NOT UP TO THE STANDARD, THE BODY IS TWO INCHES LONGER THAN THE PERMIT. THEY WILL DETAIN THE CAR FOR TWO DAYS BY CLAIMING THAT IT IS ILLEGAL. THIS IS HOW POLICE FROM EVERY DISTRICT FORCE US TO BRIBE THEM.

Chan Miya, Fruit Trader, Sirajganj Oï¬&#x20AC;ering his ideal solution to these problems, he continued:

IF THE RULE OF LAW IS STRONGER AND THE POLICE DO NOT TAKE BRIBE ANYMORE AND THEY SIDE WITH THE PEOPLE, NO STRIKES AND BLOCKADES ARE INVOKED, A HARMONY BETWEEN THE RULING AND OPPOSITION PARTY IS MAINTAINED, THE POLITICAL UNREST KEPT TO A MINIMUM THEN THE BUSINESSMEN CAN PROSPER. THE SALARY HOLDERS HAVE NO PROBLEMS. THE STRIKES DO NOT STOP THEIR SALARIES. BUT WE GET INTO SOME TROUBLE. N0 GOVERNMENT OF THIS COUNTRY THINKS ABOUT THE BUSINESSMEN. NO GOVERNMENT CONCERNS ABOUT HOW MUCH WE EARN AND WHETHER THAT IS ENOUGH FOR THE FAMILY.

Chan Miya, Fruit Trader, Sirajganj

Patuakhali seashell and craft seller Alamgir Sarker also described his struggles with law enforcement, putting more pressure on his already capital-starved business:

ONCE I HAD PURCHASED SOME SEA SHELLS FROM COX’S BAZAR. I WAS ON WAY TO DHAKA NEAR KANCHPUR BRIDGE WHEN POLICE STOPPED ME. THEY CHECKED MY CARTONS AND BAGS THOROUGHLY. THIS HAPPENED AROUND A YEAR AGO, IN 2014. WHEN POLICE HAD ASKED LOOKING AT MY CARTONS, ‘WHOM DOES THIS BELONG TO?’ I SAID THEY WERE MINE. THEY ASKED, ‘WHAT'S INSIDE?’ I REPLIED, ‘TAKE A LOOK THERE ARE ONLY SEASHELLS’. AFTER THAT THEY OPENED ONE OF THE CARTONS. AFTER SCRUTINIZING THE CONTENTS FOR A FEW MOMENTS THEY TOOK FOUR SEASHELLS FROM ME. I PLEADED, SIR, DON'T TAKE THEM. I HAD TO PURCHASE THESE. THEY SHOOED ME AWAY, THREATENING ME. WHAT TO DO? I LEFT QUIETLY WITHOUT MAKING ANY MORE SOUND.

Alamgir Sarker, Seashell and Craft Seller, Patuakhali

CORRUPTION

Corruption is a term with a range of implications, however in the case of our narratives it applies to injustices or irregularities caused by an individual or group for their own gain. This form of corruption comes up often in the stories we have heard, arising in various stages of the supply chain. For the poorest market actors, corruption is not only the domain of law enforcement or government, but also other power brokers such as politically-afďŹ liated organizations, criminal gangs and market syndicates. Instances of corruption have emerged most commonly from certain types of business. Traders who transport goods on highways or near border areas must pay fees to police on the highways (as noted previously), or to border guards who control the informal cross-border trades between Bangladesh and India in clothing and agricultural goods. Those who depend on trawlers in the Mongla and Sunderban areas have to pay fees to coast guards, forest guards and police. Small shop or stall owners commonly report having to pay ďŹ&#x201A;uctuating and informal rents to local leaders of the ruling political party, under threat of their business being shut down or vandalized, as in the case of Alamgir Sarker.

WE ALWAYS HAVE TO PAY RENTS TO LOCAL POLITICAL ACTORS, OTHERWISE THEY WOULD VANDALIZE OUR SHOPS ON THE BEACH. THEY HAVE DONE THIS SEVERAL TIMES IN THE PAST. Alamgir Sarker, Seashell and Craft Seller, Patuakhali

Instances of corruption have also emerged in the provision of social programmes by government, leading some of our narrators to be left out of the very programmes which are meant to assist them. this can be seen in the case of patuakhali fish producer yusuf ghazi, who shared his story of being left off a list of affected fish farmers following cyclone sidr. the same can be seen in the case of government programmes at the district and upazila levels to provide the poor landless with khas land. despite the requirement to follow a set of objective selection criteria, we have heard grievances on how this process is run. mainuddin from bhola illustrated this issue as follows:

WE ARE POOR, VERY POOR IN THIS AREA BUT WE WERE NEVER GIVEN GOVERNMENT LAND. THE CHAIRMAN AND THE MEMBERS OF THE AREA PREPARE THE LIST OF THE POTENTIAL BENEFICIARIES. BUT THEY FILL THE LIST IN WITH THE NAMES OF THEIR RELATIVES. SOMETIMES, THEY MAY PUT MY NAME IN

THE LIST, BUT END OF THE DAY THE ALLOTMENT WILL GO TO THEIR RELATIVES. WE NEVER GET THE LAND, RATHER WE TAKE LEASE THEIR

LANDS FOR CASH. THEY MADE LOT OF MONEY BY CHEATING THE POOR THIS WAY. THE CHAIRMAN, MEMBER GIVE MONEY TO THE RELATED GOVERNMENT OFFICES TO MANAGE THIS PROCESS.

Md. Mainuddin, Crop Farmer and Mustard Cultivator, Bhola

NOWADAYS WE HAVE TO SPEND 7 OR 8 LAC TAKA TO GREASE PALMS TO GET A JOB IN POLICE. THERE ARE SERIALS OF CANDIDATES WHO HAVE GREASED THE PALMS OF IMPORTANT PEOPLE. A JOB OF A PEON WILL NEED 5 LAC TAKA OF BRIBE. EVEN THE JOB OF A JANITOR IN A HOSPITAL DEMANDS A BRIBE OF 7 LAC TAKA. WE CANNOT PROVIDE THAT AMOUNT OF MONEY. WE WILL NEVER HAVE THAT MUCH MONEY, SO WE DO NOT NEED SO MUCH EDUCATION.

Md. Jahangir, Basket Maker, Sirajganj

Some of our narrators have even cited corruption in the formal sector to be a reason why they run their own businesses. Sirajganj basket maker Md. Jahangir has downplayed the importance of education for his son because of the potential barriers that face a poor, but educated, job applicant:

CRIME

THERE ARE SOME PEOPLE WHO CAN TAKE AWAY ALL OF YOUR EARNINGS AND INSTRUMENTS AND THERE IS NO ONE TO PROTECT ME OVER THERE.

Abdur Rahman, Boat Maker, Chittagong

The lack of opportunities for legal redress is, in practice if not in law, a massive constraint to growth for the poorest market actors who shared their stories with us. Crime has taken various forms in these stories, mainly reflecting theft, robberies, extortion, mugging, vandalism and fraudulence. The threats posed by these instances of crime to the working capital and livelihoods of our narrators is immense, and are compounded by the perception that law enforcement will not provide any protection. Chittagong Sampan (boat) maker Abdur Rahman makes a living by fixing up boats that ply the Sangu River. However Abdur would not go to remote areas even with a good offer because of the fear of theft and the lack of protection.

Threats of violence and extortion lead to an environment of fear, where earning an income is not only physically but psychologically taxing. Satkhira honey collector and crab ﬁsherman Nazmul Gazi (name changed to protect identity), whose diﬃculty in navigating the crab syndicates was referenced in the Journey to Market section of this report, is plagued by gangs of extortionists who control the collection of prized honey in the Sunderbans mangrove forest. In addition to the government fees that honey collectors are charged, the gangs charge an extra fee by the gangs in exchange for not being kidnapped, maimed or even killed. The Sunderbans honey, which is prized across South Asia and the world, is at risk of collapsing from the high costs and severe dangers that collectors are forced to endure. Two months after Nazmul Gazi’s narrative was taken by our researchers, our project team travelled to Satkhira to follow-up on the story. At that point, we had to meet Nazmul in the hospital, where he was tending to his brother-in-law who had been shot by the bandits on a recent trip to the forest while attempting to get away. This was an all too real example of the dangers that honey collectors in the area face.

IF THE GOVERNMENT COULD UPROOT THE BANDITS HERE THEN I PERSONALLY WOULD DO BONDED WORK FOR THE NEXT TWO YEARS. THERE IS SO MUCH INCOME THERE. BUT HOW WILL I EARN THAT INCOME? THIS DEBT WILL CARRY ON IF THE BANDITS REMAIN. THIS SYSTEM OF DEBT STARTED WITH THE ADVENT OF BANDITS. IF I GO TO COLLECT HONEY

NOW, I’LL HAVE TO PAY 2,000 TAKA EACH TO A MINIMUM OF 4 GANGS. MY TEAM WILL HAVE 9 PEOPLE. THE 4 GANGS WILL HAVE TO BE PAID 2,000 TAKA EACH PER 9 PEOPLE. EACH GANG HAS TO BE PAID 18,000 TAKA. WE CANNOT GO DOWN RIVER WITHOUT PAYING THIS. THE BANDITS SAY, ‘HERE IS YOUR FINE. WE’LL COLLECT IT LATER.’ NOW IF ONLY THE GOVERNMENT COULD DO SOMETHING TO RESCUE THE FOREST DWELLERS!

Nazmul Gazi, Honey Collector, Satkhira

Varying forms of fraudulence are an eerily common occurrence in the business of our narrators, and although in the informal sector there are very rarely written agreements, this activity is still perceived to be criminal or unjust by the victim. Commonly mentioned forms of fraudulence include unpaid credit, manipulated land documents, theft through business partnerships, adulterated products and price manipulation. The injustice of fraudulence cuts particularly deep when relatively rich or powerful individuals take advantage of the poor. Fuel wood seller Tareque Rahman , whose diﬃculty in retrieving credit from customers was covered in the section on Forming Capital, tells us a story of a particularly frustrating event where his trust was abused and his capital-starved business suﬀered.

I USED TO SUPPLY FIREWOOD TO ONE OF NEARBY SMALL HOTELS HERE IN THE BAZAR. OVER TIME, I DEVELOPED A GOOD RELATIONSHIP WITH THE OWNER OF THE HOTEL. AT SOME POINT, HE TOOK 7000 TAKA AS A LOAN FROM ME. I WAS NOT WORRIED AS I USED TO DO BUSINESS WITH HIM. BUT ALL ON A SUDDEN, ONE DAY, I FOUND THAT THE HOTEL IS CLOSED AND THE GUY LEFT. HE FLED AWAY WITH MY MONEY. IT WAS BIG BLOW FOR MY SMALL BUSINESS. I TRIED TO REACH HIM, BUT DIDN’T WORK OUT. I KNOW NOBODY WILL HELP ME TO RECOVER THIS MONEY FROM THAT GUY.

Tareque Rahman, Fuel wood Seller, Patuakhali

EVICTION

Insecure tenancy for shops and small businesses is a reality for those who operate informally on government land. A lack of formal agreements with the Government, or the local power brokers who control it on their behalf, means that many have a constant risk of losing their buildings and working capital in eviction drives. Shops and stalls in tourist areas such as Cox’s Bazar and Kuakata are particularly vulnerable. The way that this issue emerged in our narratives showed an eagerness to share these incidents, in the hope that the insecurity of their tenure could be somehow addressed in the future. Every narrator who raised this issue articulated their inability to negotiate or have a voice in the tenancy or eviction process. Abul Kalam, the owner of a small sea shell stall along Cox’s Bazar beach, had the shop he owned with his brother uprooted along with approximately 200 others in an eviction drive in late 2014. These shops had an agreement with Government that they could be removed any time, but Abul sees a slight chance that he will be given a new place to run his shop. In the meantime, he has opened a small stall to maintain his income.

THE GOVERNMENT UPROOTED OUR SHOPS FROM THE BEACH AS THEY SAID THAT THEY DIDN’T LOOK GOOD ON THAT SPOT. WINTER SEASON IS A HIGH SALE SEASON DUE TO HIGH INCOMING OF TOURISTS. IN THE PAST I EARNED ABOUT 1 LAC TAKA IN THE WINTER SEASON, BUT SINCE THE SHOP WAS UPROOTED DURING THIS SEASON I COULDN’T EARN WHAT I USED TO. EVEN AFTER

FACING A HUGE LOSS WE COULDN’T RAISE VOICE AGAINST IT AS IT WAS A GOVERNMENT LAND.

Abul Kalam, Sea shell Stall Owner, Cox’s Bazar

Alamgir Sarker from Patuakkhali, who also has issues with local power brokers vandalizing his shop, is under constant threat of eviction from Government. His frustration in the face of these incidents shone through as he recounted the experience at his beachfront shop in Kuakata.

I WAS IN DHAKA THEN WHEN THEY CAME. MY SON CALLED ME ALL OF A SUDDEN AND SAID, ‘THEY ARE DEMOLISHING OUR SHOP.’ WHAT TO DO NOW? I DIDN’T HAVE THE ANSWER. I HAD ALREADY MADE MY PURCHASE FOR THE SHOP. LATER ON I CAME TO LEARN THAT THEY HAD DEMOLISHED ALL THE ROW OF SHOPS ON OUR SIDE, LEAVING THE SHOPS ON THE OTHER SIDE. I BROUGHT MY ENTIRE GOODS HOME. AFTER SEVERAL DAYS I RETURNED AND STARTED TO FURNISH MY SHOP WITH THE GOODS. THEY SOMETIMES ALLOW US TO SHIFT OUR GOODS BEFORE DEMOLISHING. STILL SOME OF THEM ARE DAMAGED. THE MAGISTRATE ARRIVES AND CARRIES OUT THE DEMOLITION. IT'S OF NO USE PLEADING TO HIM.

Alamgir Sarker, Seashell and Craft Seller, Patuakhali

Patuakhali poultry trader Mohammad Bashir lost all his family savings when he was just a child. An uncle who was responsible for purchasing land in Patuakhali registered it in his own name, leaving his half paralysed father to make ends meet and support the family however possible. For the past seven years Bashir has ямБnally seen a decent income through his small poultry shop, selling chickens and local birds to hotels and households. His one biggest challenge, however, is the land on which his shop sits.

A MAJOR PROBLEM IS THAT I DO NOT HAVE OWNERSHIP OVER THE LAND ON WHICH MY STORE IS BUILT. I OWN THE SHOP, NOT THE LAND. I HAVE BUILT THE SHOP ON GOVERNMENT LAND. IT HAS BEEN DEMOLISHED THREE TIMES IN EVICTION DRIVES. I CONTINUED OPERATING MY BUSINESS FROM THIS SPACE. I KEPT THE CHICKENS SOMEWHERE ELSE. GRADUALLY, EVERYONE LENT THEIR SUPPORT. EVERY TIME

THEY DEMOLISHED MY SHOP I HAD TO BUILD BACK AGAIN. THEY DEMOLISHED IT THREE TIMES. I HAVE SUFFERED MUCH LOSS DUE TO THE DEMOLITION. SUPPOSE IT HAS TAKEN TK. 50,000 TO

BUILD THIS SHOP. THEY COULD COME TOMORROW AND DEMOLISH IT. THE GOVERNMENT HAS LAND. IF THEY PROVIDE THESE THROUGH DCR AGAINST CASH, WE CAN CONTINUE OUR BUSINESSES UNHINDERED. MY SHOP HAS BEEN DEMOLISHED THRICE IN THREE YEARS. IT COSTS TK. 50,000 TO REBUILD EACH ROOM. I HAVE TWO ROOMS. I HAVE LOST THREE LACS TAKA IN THREE YEARS.

Mohammad Bashir, Poultry Trader, Patuakhali

POLICY AND THE POOR

The impact of policy changes on the poorest market actors is important to consider while weighing the impacts, positive and negative, of diﬀerent Government interventions. In international trade it is well understood that trade policies can create ‘winners and losers’ within a country, and that support is required for the individuals, communities and sectors that are negatively impacted by a shift in costs, competition or market access. With regards to national policies, whether dealing with environmental conservation, commerce or otherwise, it is also important to understand

how livelihoods will be affected, and to provide a measure of support to those who are impacted negatively. In the case of Satkhira’s Shahadat Hossain, whose story is referenced in our section on Knowledge, Skills and Experience, his education was cut short after a ban on fishing with nets in the river. His father’s business of paying advances and providing boats to net fishermen was decimated, and Shahadat had to leave school to help cushion the loss.

Monir, a 38-year old fisherman from Bhola, struggles to earn an income fishing in the Meghna River and selling his catch in various markets. However in addition to navigating the temperamental rivers, Monir has to abide by the inconsistent and incentivized application of fishing policies.

THIS YEAR, FROM THE 1ST OF MARCH, THE COAST GUARD WILL BEGIN A DRIVE TO ENFORCE A BAN ON CATCHING MOTHER FISH. DURING THE TWO MONTHS ALL MOTHER FISH RELEASE EGGS IN THE MEGHNA. THAT'S WHY FISHING IS RESTRICTED DURING THIS PERIOD. WE UNDERSTAND THE SITUATION. BUT IF WE DON'T CATCH FISH DURING THESE TWO MONTHS, THE FISH WOULD MIGRATE INTO RIVERS IN INDIA AND MYANMAR, AND THEN WE WON’T GET ANY FISH LATER. THERE ARE AT LEAST SEVEN VARIETIES OF FISH WHICH FALL UNDER THE CATEGORY TERMED AS JATKA (JUVENILE), HILSA BEING ONE OF THEM. NOW DURING THIS PERIOD OF BAN, ALL TYPES OF JATKA CATCHING IS BANNED. THERE ARE JATKA VARIETIES THAT DON'T GROW OVER SIX INCHES AT THEIR FULLEST MATURITY AND CARRY EGGS. EVEN IF WE CATCH THESE, THE COAST GUARD SAYS WE HAVE CAUGHT JATKA. WE WORK VERY HARD ALL NIGHT AND CATCH FISH. EARLY AT

DAWN, THE COAST GUARD COMES ON A RAID AND TAKES ALL THE CATCH BETWEEN 6/9 INCHES ON THEIR BOAT, CONFISCATING THE FISH, AND AUCTIONING THEM LATER IN THE CITY. THEY WILL ENJOY THE PROFITS WHILE THE FISHERMAN AND THE BEPARI (TRADER) HOLD THEIR HEAD IN BOTH HANDS IN DESPAIR.

Monir, Fisherman, Bhola

POLITICAL UNREST

This project collected narratives under a shadow of political unrest in early 2015 that, at the time, had engulfed Bangladesh socially, economically and politically. It was questioned whether collecting stories from poor market actors about constraints in their livelihoods would be dominated by the most immediate problem, the transport blockades and agitation movements that attempted to choke the economy in order to deliver a political message. The fielding of the student researchers was therefore done with great caution, and constant monitoring. In the end, although the political Hartals (strikes) certainly affected our narrators, they were also able to articulate the longer-standing challenges they face, as detailed throughout his book. Sirajganj fruit trader Chan Miya revealed his experience with political strikes when our researchers met him in late March 2015. The preceding months were mired by a nationwide blockade sponsored by one of the major political alliances. These were difficult months for Chan Miya, who supports his family of eight members by selling water melons and other fruits. When asked about the situation of his business, his expression was clearly apprehensive:

THE SITUATION IS NOWHERE NEAR GOOD. I HAVE ALREADY BOUGHT THE WATERMELONS, I WILL FACE A GREAT LOSS. I WILL

LOSE A LOT OF MONEY ALL BECAUSE OF THE STRIKES AND THE BLOCKADES. BECAUSE OF THOSE, MEANS OF TRANSPORTATION ARE FEW AND FAR BETWEEN. THESE PRODUCES HAVE TO BE SOLD QUICKLY. IF WE DELAY THE SALES, WE WILL GET HALF THE SELLING PRICE. IF THE COUNTRY IS NOT WELL, THE PEOPLE DO NOT HAVE MONEY IN THEIR POCKET. THEY DO NOT SHOP. THE RAW PRODUCE BUSINESS FACES A GREAT LOSS.

Chan Miya, Fruit Trader, Sirajganj

Chan Mia’s testimony is supported by many others from diﬀerent corners of the country. Rohidul Islam, 48, is a seasoned farmer from Rangpur. He is used to making a living from farming, but political unrest, specially prolonged hartals, have caused him serious damage this year. Because of the political unrest he is hesitant to harvest his potatoes, and since his land is leased he is concerned about whether he can pay the rent. Likewise Priya Chakma is an indigenous woman who buy ﬁsh and vegetables from remote places and sell them at Banarupa Bazar in Rangamati District. Her income from the business is crucial to keep her three children in school, however she is unable to earn during hartals as the roads are impassable. On a similar note, Md. Showkat Ali, a seasonal agricultural goods trader from Nilphamari does business in across Northern Bangladesh. He informed our researchers that he wants to expand his business beyond this territory, but cannot do so as there is no security on the road and he is afraid of hijackers.

BECAUSE OF CONTINUOUS HARTALS AND BLOCKADES THE LAW AND ORDER SITUATION HAS GOTTEN WORSE. THE HIGHWAYS HAVE BEEN VERY RISKY; NO ONE HAS ANY CONTROL OVER THERE. I, THEREFORE, COULD NOT THINK OF EXPANDING MY BUSINESS.

MY CONSIGNMENTS GOT BURNT 2 TIMES ON THE WAY TO DHAKA DURING NATIONWIDE HARTAL; ONCE IT WAS 22 THOUSAND TAKA, ANOTHER TIME IT WAS 10 THOUSAND TAKA. ALTOGETHER I HAD A LOSS OF 50 TO 60 THOUSAND TAKA. YOU SEE,

THERE IS NO POLITICAL PARTY OR GOVERNMENT TO HELP US OUT TO RECOVER FROM OUR LOSSES,WHICH HAPPENED BECAUSE OF THEM. Md. Showkat Ali, Seasonal Agricultural Goods Trader, Nilphamari

Chameli Hasan, Handicraft Trader, Jamalpur

Aside from Agriculture and Aquaculture, the handicraft business also feels the pinch of political unrest, as Chameli Hasan shared with us in her native District of Jamalpur. Chameli has expanded her successful handiraft business from Jamalpur to Dhaka to access new markets, however her growth was stunted by political violence on the roads.

DOCUMENTATION AND INFORMALITY

Documentation is a point of contention among our narrators – they exist in an informal economy where oﬃcial documents are rare, but in some instances necessary to verify and secure their assets. As explored in the Forming Capital section, our narrators are rarely able to secure loans from commercial banks due to the documentation requirements. In our Journey to Market section we observe the insecurity that plagues Mr. Manju’s transactions in the leather trade where small scale actors cannot deal directly with tanneries, and therefore lack the protection of written agreements or documentation. The eﬀect of poor or non-existent documentation on the poorest market actors is most severe, however, when it comes to land. Being broadly the most valuable asset that a poor market actor can own, demonstrating ownership is an important ability that eludes many or our narrators. Bilal Sardar, the Khulna tomato trader whose assumption of road and weather risks was covered in the Risk and Resilience section, is young but takes care of his mother and siblings after his father passed away. While Bilal has been relatively successful in his business, he is constantly under pressure from legal claims against his family land. This type of challenge is common in rural Bangladesh, and since the land registration system is very poor, whoever has to defend against the claim is stuck with the associated costs. Blial describes this struggle in his story.

18 DECIMAL LAND OUT OF 30 IS IN DISPUTE THROUGH VARIOUS LEGAL CASES. PEOPLE IN THE NEIGHBORHOOD TRY TO TAKE OVER LAND UNJUSTLY. ALMOST 100,000 TO 150,000 TAKA HAS BEEN SPENT IN FEW YEARS TO COLLECT LAND RELATED DOCUMENTS. I CAN’T COMPETE WITH THEM MONETARILY. THEY HAVE PEOPLE WORKING IN THE SECRETARIAT.

Bilal Sarder, Tomato Trader, Khulna

BARRIERS

SPEND

MONEY

RESPONSIBILITIES

CRIME SOCIAL VANDALIZE

FATE

COMMUNITY

LIVES

LIVELIHOODS

ECONOMIC

POVERTY

Gender Family and Trade DOWRY BUSINESS MARRIAGE

INTRODUCTION

The purpose of this project is to gain insights on issues affecting the poorest market actors through their own lens, their own account, and their own experiences. Although the stories follow an arc of their livelihoods and engagement in markets, every narrative was colored by unique social and cultural realities. The distinction between one’s job and personal life is non-existent in the lives of our narrators, business loans and capital bleed into family life and family labor provides critical support. In many cases our narrators could not even demonstrate whether their business was profitable since capital, revenue and profits are all funneled towards the costs of the day, whether it be wages, food, education or raw materials. Attempts to understand small trades without their complex social dimensions would be like studying a boat with no understanding of the water in which it floats. The stories we have encountered in this research are not only stories of business, not simply focused on capital, markets, or prod-

ucts. Our narrators, as shines through in their stories, are social beings, a reality which informs their decision making processes as much as economic factors. Our narrators engage in their livelihoods driven by social circumstances and values such as responsibilities to the family, a desire to earn dignity within the community, a need to assure food and education of the children and so on and so forth. Retail businesses, as we have seen in our section on Forming Capital, operate under many social obligations such as the extension of credit to neighbors and relatives. In fact ‘social capital’ has come up as a very common and decisive factor in the lives of our narrators. This section explores how the socio-cultural context of family and gender factor into the economic lives of our narrators, with a view to promoting discussion on more holistic economic policies that are responsive to these social realities.

SOCIAL AND ECONOMIC BARRIERS

While female narrators only represent 29 of the 158 market actors covered by our research, their stories, successes and challenges factor signiďŹ cantly into our ďŹ ndings. While our researchers attempted to collect an equal amount of narratives from women and men, the feedback we received was that: a) women producers or traders are much less common than men, and/or b) men are much more willing to talk to strangers about their business than women, especially in public. A manual on the micro-narrative methodology is being produced to incor-

porate the many lessons learnt, including recommendations on how this methodology can better target women in socially or culturally sensitive situations. In rural Bangladesh, surpassing social and economic barriers requires a certain level of strategic talent and a willingness to take on challenging stigmas. We have found that our women narrators are especially determined to succeed, and their persistence and successes provide excellent motivation for other women.

Satkhira Dairy farmer Shikha Begum embodies this strength and persistence, encountering heavy social stigma for being a working woman, even from her own son. Shikha struggled early, losing both parents, having her ﬁrst son at 13 and providing for an ill husband who passed away in 2006.

NOBODY LOOKED KINDLY UPON MY WALKING THROUGH THE STREETS. PEOPLE TALKED RUBBISH. WHEN I WOULD COME BACK, IT WOULD BE THROUGH MUDDY STREETS. SO I WOULD SUFFER COMING HOME. AND THE AMOUNT OF ABUSE I HAD TO BEAR GOING THROUGH THAT STREET. NOBODY LOOKED AT ME DECENTLY. I WOULDN’T START BEFORE 8PM. BECAUSE THE FARE WAS 5 OR 10 TAKA. THEN MY SALARY WOULD BE SPENT ON FARE. I HAVE FACED HOODLUMS, DRUG ADDICTS ON THAT ROAD. NOBODY LOOKED AT ME DECENTLY. THEY STARED. I HAD TO FACE A LOT OF HARDSHIP GETTING HOME. I NEVER WALKED WEARING MY SANDALS; THEY WERE ALWAYS IN MY HAND. I CARRIED THEM BECAUSE THERE MAY BE DANGER ANY MOMENT. I USED TO BEAT WITH MY SANDAL AND I’VE DONE THAT A LOT. I ALWAYS BOUGHT GOOD SANDALS. I USED TO BUY STRONG SANDALS SO IT WOULD HURT WHEN I BEAT SOMEONE.MY ELDEST SON TOLD ME ONE DAY, “DON’T GO OUT OF THE HOUSE. IF YOU DO, I WON’T GO TO SCHOOL”. “WHY?” I ASKED.HE RESPONDED: “THEY SAY YOUR MOTHER DOES ‘WHAT NOT’ WHEN SHE GOES OUT. DO YOU KNOW WHAT SHE DOES? BEAT ME IF YOU WANT. I STILL WON’T GO TO SCHOOL. PEOPLE TALK BAD.”“WHAT BAD THINGS DO THEY SAY?” I ASKED, “THAT YOUR MOTHER WORKS?” THEN I HAD TO TAKE MY ELDEST SON WITH ME. “YOU MUST WORK YOURSELF TO UNDERSTAND WHAT IT IS I DO” I TOLD HIM. I MADE HIM WORK. THEN HE COOLED DOWN. Shikha Begum, Dairy Farmer, Satkhira

I USED TO WORK THE FARM MYSELF. I KEPT TWO OTHER GIRLS. I USED TO PAY THEM 1,000 TAKA A MONTH PLUS FOOD. NOW I PAY THEM 3,000 TO 4,000 TAKA. A LOT OF WOMEN HAVE FOLLOWED ME AND STARTED BUSINESS. THEY GOT COURAGE SEEING ME. IN THE MEANWHILE, A LOT OF FARMS HAVE OPENED UP IN DASPUR. I LOOK AFTER THEM.

Shikha Begum, Poultry Farmer, Satkhira

Through all of her hardship Shikha Begum managed to send her son to Dubai, invest the remittances into a new business, attend trainings even when she was unwelcome due to her gender, and eventually employ and inspire many women in her community.

FEMALE CHAMPIONS

In our narratives we found female champions and mentors to be an impressive force in inspiring and paving the way for other women to build their own livelihoods. In rural Bangladesh, where the social and economic obstacles to women engaging in business are significant, a positive example of a woman who has broken through these barriers can be extremely powerful. Our narratives have even shown that this ‘learning by example’ process is also effective on changing the mindsets of men. Several of our female narrators have had family members transform from being very restrictive and hesitant, only to come around and be supportive of their business venture once they realize that it’s a positive and profitable initiative.

When successful handicrafts producer and trader Najma Rashid started doing business in Jamalpur, her husband and mother in-law were entirely against it. According to Najma people were talking, neighbors were gossiping, and the community was simply unable to accept that a woman would be starting a business. Support from her sister proved to be the boost that she needed to keep growing her business, and her husband eventually came around when things started looking proﬁtable. Najma now employs over 1,500 women and sells her products all across Bangladesh.

Khulna Poultry trader Nahar Begum suﬀered through spousal abuse and in-law abuse for years after an early marriage. Nahar worked in everything from ﬁsh feed factories to mustards mills before meeting a woman who encouraged her to enter the poultry trade and provided her with some seed funding.

I WENT WITH 1,500 TAKA TO THE MARKET IN KESHOBPUR. SHE TOLD ME TO GO REPEATEDLY AND BUY MY OWN GOODS. SHE WOULDN’T HELP ME EVERY TIME. I MADE A PROFIT OF 150 TAKA ON THAT.THEN THE WOMAN SAID, ‘YOU CAN DO THIS BUSINESS.’ SO I TOOK A LOAN FROM (NGO NAME REMOVED) AND STARTED BUSINESS. THEN THE WOMAN GOT MARRIED. SHE GAVE ME 5 -6 THOUSAND TAKA. I ADDED MY MONEY TO IT AND KEPT DOING BUSINESS. Nahar Begum, Poultry Trader, Khulna

DISCOUNTED FROM BIRTH

Alongside some inspirational success stories, the gender analysis of our narratives always brought up a slew of social and economic challenges facing women at home and in the market. From birth, through to education, marriage and on to their livelihoods, women are confronted with constant handicaps that make it more diﬃcult to deﬁne their own future. Nilphamari restaurant owner Lipi Begum told us how her husband could not hold down a job, and how this led to torture from her sister in law in a demand for more dowry. She recounted how even after her mother in-law took her in to stop the torture, she was kicked out after having a daughter. Giving birth to a baby girl is a burden in many rural parts of Bangladesh, as she will not earn, will need a dowry paid upon marriage, and will then leave her family to live with and care for the in-laws. Compare this with a son who will earn, receive a dowry and take care of the parents, and you have a socio-economic environment where a woman’s opportunities are stunted from the very beginning. Another example of this gender imbalance comes from Bagerhat grocery shop owner Shefali Adhikary, whose struggle to educate her daughters continues to this day, as referenced in our chapter on Knowledge, Skills and Experience. THE PROBLEM AROSE WITH MY MOTHER-IN-LAW AND MY HAVING DAUGHTERS. MY HUSBAND BECAME DISENCHANTED. I WAS ON THE STREETS. I HAVE NEVER SUFFERED IN THIS MANNER…I KEPT HAVING DAUGHTERS. THE FAMILY WAS IN RUINS. MY HUSBAND USED TO BEAT ME A LOT. THEN LUCKILY I HAD A SON. I FELT COURAGEOUS. NOW HE WOULDN’T BE ABLE TO LEAVE ME EVEN IF HE GOT MARRIED AGAIN.

I WAS BORN IN SPLENDOR. THIS IS MY CONDITION NOW DUE TO FATE. THERE IS NO USE IF MY FATHER OR BROTHERS HAVE A LOT. A HUSBAND’S FATE IS THE FATE FOR A WOMAN. IF THE HUSBAND EATS RICE WITH SALT, THEN SO DOES THE WIFE. I AM ALIVE AT GOD’S WISH.

Shefali Adhikary, Grocery Shop Owner, Bagerhat

Carrying on, Shefali shared that unlike her brothers she cannot count on any generational inheritance, her lot is tied entirely to her husband and his family.

Bhola fisherman Md. Monir lends a male perspective to the issue. Females are commonly excluded from access to their household’s finances, rendering them a spectator of their own household’s financial affairs, and entrenching a generational pattern of gender inequality.

I HAVE TWO SONS. I HAVE TOLD THEM: DON'T OPEN BANK ACCOUNTS IN YOUR WIFE’S NAME…IF SOMETHING HAPPENS TO ME MY WIFE WILL TAKE EVERYTHING AND RETURN BACK TO HER PARENTS. WHAT WILL MY CHILDREN EAT THEN? THIS IS WHY I TELL THEM NOT TO OPEN BANK ACCOUNT IN THEIR WIFE’S NAME. IF YOU MUST, OPEN IN YOUR MOTHER’S NAME OR YOUR BROTHER OR IN THE NAME OF YOUR CHILDREN. MY WIFE NEVER INQUIRES ABOUT MY FINANCES, AND I ALSO DO NOT DISCUSS MY ASSET OR PROPERTIES WITH HER.

Md. Monir, Fisherman, Bhola

I WOULD LIKE TO OFFER HER FOR MARRIAGE AFTER SHE COMPLETES HER SSC. IF IT IS BEFORE HER SSC SHE WILL NOT GET A GOOD HUSBAND. IF SHE STUDIES MORE AFTER SSC THEN AGAIN SHE MAY NOT GET A GOOD HUSBAND.

Md. Monir, Fisherman, Bhola

When it comes to education, the decision of how many years to study mainly revolves around the ideal marriage time and partner, and is commonly decided by the father. In a socio-economic context where a female pursuing or even achieving independent ﬁnancial success brings stigma along with it, the only socially ‘safe’ option is to arrange a suitable marriage. Md. Monir sees education as a means to a good marriage for his daughter – but not too much of it.

MARRIAGE AND MONEY

Out of the 15 cases referencing dowry in our narratives, only 2 cases show evidence of the dowry being invested into a new business as a source of capital. The other references to dowry show the departure of a female’s family money from her control, the demise of businesses owned by families who have to pay the dowry, and violence fueled by the expectation of dowry in a struggling family. Bagerhat vegetable seller Maleka was born into a very poor situation, studying up to class 2 before being married oﬀ to her cousin. The small amount of land that her father could pass on to her was given as dowry, and then lost by her abusive husband.

MY HUSBAND USED TO ABUSE ME. HE USED TO SAY, ‘GET ME SOME LAND FROM YOUR FATHER OR I’LL DIVORCE YOU.’ I ASKED FOR SOME LAND FROM MY FATHER. MY FATHER GAVE ME 10 KATHA LAND. MY HUSBAND USED THE LAND, THEN LOST IT. HE WOULDN’T FEED ME. HE WOULD BEAT ME AT NIGHT. HE USED A STICK AND I EVEN BLED. MY FATHER-IN-LAW PROTESTED, SO DID MY MOTHER-IN-LAW. THEY SAID, ‘YOU DON’T HAVE TO FEED MALEKA. WE WILL. YOU LEAVE.’ SO HE BEAT MY MOTHER-IN-LAW AND BROKE HER LEG. THEN SHE PASSED AWAY. Maleka, Vegetable Seller, Bagerhat

One of the many negative effects of the dowry system is its impact on a family’s capital. In several cases our narrators have had to resort to loans, or even shut down their business due to the social necessity to pay a dowry or bear the costs of expensive festivities surrounding the wedding. Nilphamari potato trader Mehedi gave away his “last pennies” and even the bed he sleeps on to ‘marry off’ his daughter. Cox’s Bazar fishing net maker Samsul Huq earns 350 taka per day after losing his shop and all of his capital in a 1996 Cyclone. However hope of saving enough to reopen his shop is quashed by the necessity to marry off his three daughters. Samsul estimates the cost of each dowry and wedding to be 2 lac taka (200,000), approximately the same amount he would need to invest if he were to open a new shop.

HAD I BEEN A SOLITARY PERSON THEN IT WOULD BE A DIFFERENT STORY. I HAVE THREE DAUGHTERS. AND I CANNOT HAVE THEM MARRIED OFF WITHOUT SPENDING ANY MONEY. THE DOWRY SUMS UP TO 2 OR 3 LACS OF TAKA. I MAY HAVE TO SELL A KIDNEY TO GATHER THAT MUCH OF MONEY. AND THAT IS THE DOWRY FOR ONLY ONE, HERE I HAVE 3 DAUGHTERS.

DOWRY IS ILLEGAL YOU KNOW, BUT NOBODY WANTS TO MARRY WITHOUT DOWRY. NO MATTER HOW MANY TIMES I SAY I WON’T GIVE DOWRY, MY DAUGHTERS WILL STAY HOME-NO ONE WILL MARRY THEM.

Samsul Haq, Fishing-net Maker, Cox’s Bazar

Shree Manik Chandra Das, Basket Weaver, Sirajganj

Sirajganj basket weaver Shree Manik Chandra Das took loans from micro-credit agencies that each amounted to more than his annual revenue to marry oﬀ two of his three daughters, and even sold his house at 2 lak taka to manage the funds. Micro-credit, the powerful tool for female empowerment, has truly found a contradictory use in this case. Manik Chandra knows that dowry is illegal in Bangladesh, but in practice he is bound by this damaging social custom and the high costs it entails.

It is important to recognize and understand the life cycle of constraints facing women in business if we are to attempt to increase their engagement with markets. However increasing this engagement can also bring about exponential results in social development within the family and beyond. Studies have shown that women are more likely to spend their income and energy on their children’s education, health and wellbeing than men, a fact which restaurant owner Lipi Begum showcased clearly in her deﬁant and insightful story.

THEIR FATHER WAS BROKE, SO I AM THE ONE WHO HAD TO MAKE SOMETHING OUT OF THEM. [WITH THE SUCCESS OF THE RESTAURANT], THE SECOND SON HAS PASSED THE SSC, I BOUGHT HIM A COMPUTER. THEN I BOUGHT A TV, MADE A BED. THEN I DID SOME RENOVATION TO THE HOUSE. I AM DOING MY BEST. BUT IF THEIR FATHER WAS EMPLOYED THEN IT WOULD HAVE BEEN A LOT EASIER FOR ME. [IN RETIREMENT] I DO NOT WISH TO CONTINUE THE RESTAURANT ANYMORE. BUT I DID THAT TO RAISE MY TWO SONS. BECAUSE, THEY HAVE NO ONE ELSE TO LOOK AFTER THEM. Lipi Begum, Restaurant Owner, Nilphamari

STUDY

SCHOOL

PRODUCER

SKILLS

QUESTION

APPRENTICESHIPS

HOPE TRAINING LEARNING EDUCATION TRADITION

STUDENTS

EXPERIENCE

KNOWLEDGE SKILL AND LEARNING ILLITERACY EXAMDISADVANTAGE INCOME XPERIENCE

INTRODUCTION

Engagement in markets and value chains revolves around diﬀerent sets of knowledge, skills and experience that come from a wide range of sources – education, family, local tradition, vocational training or otherwise. Bangladesh has made huge strides in ensuring universal primary education, however we ﬁnd that very few of our narrators have gone beyond that level. This leads us to a key question – where are some of the poorest market actors getting their knowledge, skills and experience, and how can new skills be transmitted to improve livelihoods and move the poorest up the value chain? Other than basic literacy, there is no clear connection between skills learned in school and the livelihoods of our narrators. Where the connec-

tion between schooling and earning an income has arisen, it is always related to formal sector jobs with government, private sector or otherwise. With a lack of available jobs in the formal sector, people instead look to other methods of learning skills. However there is no clear path to developing skills in the markets of our narrators – learning options are fragmented, such as trainings, family knowledge or on-the-job experience. Including more options for vocational skills in formal education could make this schooling more relevant to the needs of poor families, and improve retention of students in the process. Likewise, our narratives have shown time and time again that exam fees are a main barrier to keeping poor students in school.

EDUCATION

The education proﬁle of our 158 narrators shows us that, among this sample of poor market actors from 18 districts, nearly 50 percent have no form of formal education. However out of those who do, even a smaller number progress past year 5, and only a fraction past year 10 when they must sit for the SSC exam.

Our narrative research showed, unsurprisingly, that poverty was a main cause of not ﬁnishing education. More speciﬁcally, an inability to pay exam fees or a need to earn money for the family were particularly limiting. Transitioning into earning an income or helping out with the family business became the only way to build skills and experience for the majority of our narrators.

Cox’s Bazar blue lotus farmer Abdus Shukur shared his story with us in late January, 2015, while selling his ﬂowers on the beach. Shukur is the eldest son in his family, and struggled to support the family farming borrowed land after the death of his father. Although the need for education was superseded by the need to earn an income, his uncle supported him to start cultivating blue lotus ﬂowers, a skill that has supported him and his family ever since.

Kurigram tea stall owner Joynal Abedin was also very motivated to continue studying, but was stopped in his tracks by a simple inability to pay his exam fees.

MY EDUCATION IS VERY LIMITED. IT ENDED RIGHT AFTER NURSERY. I WAS THE ELDEST YOU SEE, I HAD TO START EARNING SO THAT I CAN HELP FEED MY FAMILY.

THEN THERE WAS A GREAT POVERTY… I HAVE STUDIED UP TO CLASS SIX OR SEVEN. I CAME BACK HOME TO GET THE EXAM FEES FOR THE SCHOOL. BUT MY FAMILY WAS TOO POOR TO PROVIDE THE FEES. I WAS VERY SAD AND AT A LOSS FOR WHAT TO DO. I WAS VERY MUCH WILLING TO CONTINUE MY STUDIES, BUT I COULD NOT. I DID NOT TELL ANYBODY ANYTHING AND WENT TO CHITTAGONG (TO LOOK FOR WORK).

I HAD TO FILL UP THE FORM FOR EXAMS WHEN I WAS MOVING FROM CLASS 9 TO 10. DUE TO BAN ON RIVER FISHING WE FACED A LOSS. I COULDN’T FILL UP THE FORM BECAUSE WE HAD TO ESTABLISH THE GHER. WE NEVER PAID THE FEES; I NEVER SAT FOR THE EXAMS. I STARTED BUSINESS FROM THEN.

Abdus Shukur, Blue Lotus Farmer, Cox’s Bazar

Joynal Abedin, Tea Stall Owner, Kurigram

Shahadat Hossain, Shrimp Farmer, Satkhira

Satkhira shrimp fry farmer Shahadat Hossain was the unintended victim of a shift in Government policy relating to fishing in his area, an issue that is explored further in the section on Governance, Grievance and Growth. His father’s business was supplying nets and boats to local fishermen, and taking a portion of their catch in exchange. When net fishing was banned, his father’s business was lost and Shahdat had to support a difficult transition into another livelihood, at the cost of his education.

One of the biggest regrets of our narrators is their lack of education, especially among those without any formal schooling. Our narratives have shown that illiteracy and a lack of education is not only a disadvantage in terms of skills like reading, writing and accounting, but has a very damaging effect on self-confidence as well. Poultry trader Masud Rana cannot properly keep track of his accounts because of his inability to write, and is taken advantage of by consumers, once having a large amount of money stolen from him. Patuakhali fish producer Yusuf Ghazi feels that he is not welcome at the bank due to his illiteracy, even though he has a growing business with significant capital. He turns instead to a strategy of taking multiple micro-finance loans through women in his community.

I AM NOT LITERATE. I AM WEAK THAT WAY. THAT IS WHY I DON’T RAISE MY HEAD ANYWHERE. WIN OR LOSE – I DO SO ON MY OWN GROUND. DO YOU UNDERSTAND? IF I HAD SOME EDUCATION I COULD MOVE ABOUT WITH PRIDE. MEANING, I WOULD HOLD MY HEAD HIGH. I WOULD TALK ABOUT MY EXPERIENCE.

Yusuf Gazi, Fisherman and Fish Trader, Patuakhali

CHANGES WITH THE SEASON MEANS OBSERVING THE SEASON FIRST BEFORE DECIDING WHAT TO DO. YOU ARE EDUCATED PEOPLE, SO YOU CAN LOOK INTO THE PONJIKA (CROP CALENDAR) AND TELL WHAT TO DO. I AM ILLITERATE AS I CANNOT READ OR WRITE. THOSE WHO ARE FARMERS LIKE ME ARE ILLITERATE. THEY HAVE TO REACT TO THE SEASON. I WANT MY CHILDREN TO COMPLETE THEIR EDUCATION. THERE IS ONLY A PRIMARY SCHOOL IN THE CHAR. SINCE THERE ARE NO HIGH SCHOOLS I WOULD LIKE TO SEND THEM TO DAULATKHAN FOR HIGHER EDUCATION. I HAVE RELATIVES LIVING THERE. IF I PAY LIVING EXPENSES I MAY BE ABLE TO KEEP MY CHILDREN IN THEIR HOME UNTIL THEY CAN COMPLETE SCHOOL.

Md. Harun, Crop Farmer, Bhola

Bhola farmer Md. Harun, father of two, has battled the elements on Hazipur char his whole life. From his childhood he has been a repeated victim of low yields due to saline intrusion and lost land due to river erosion. Harun recognizes his lack of education as a distinct disadvantage, and thus makes plans for his children’s future.

As is the case with Md. Harun, the hope of securing a better education for one’s children is one of the biggest motivating factors for our narrators. Once immediate needs of income, food and shelter are met, education is a strong priority. While some such as Satkhira honey collector Nazmul Gazi (name changed to protect identity) simply want to spare their children from the hardships of their current livelihood, others such as Sylhet cake seller Noor Badan are banking on their children earning enough income to provide for them in their old age. Shefali Odhikari, the owner of a small grocery shop in Chitalmari, Bagerhat, told us her story in the small room she lives in behind her shop. Much of this emotional story was told through clenched teeth, recounting the many hardships she has faced as a poor and low-caste Hindu woman. Shefali parted ways with our female researchers by asking for a prayer for her daughters’ education.

WOMEN’S LIVES ARE POINTLESS; MY LIFE IS LIKE THAT. I HAVE DAYS IN MISERY. I SUFFERED IN MY CHILDHOOD, TOO. I STUDIED ON THE STREETS. I FINANCED MY OWN STUDIES. MY BROTHER DIDN’T WANT ME TO STUDY. HE SAID, ‘IF YOU STUDY WE’LL HAVE TO GET YOU A GOOD HUSBAND. THAT WILL MEAN SPENDING A LOT OF MONEY.’ I COULDN’T STUDY MYSELF. SO I SUFFERED HELL TO EDUCATE MY DAUGHTERS. I SWAM UPSTREAM. TO SEE MY HUSBAND, YOU WILL NOT BELIEVE THAT HE CAN MAKE ME SUFFER SO. PLEASE PRAY THAT MY DAYS AHEAD ARE GOOD. THAT MY DAUGHTERS GET TO STUDY LIKE YOU GIRLS (OUR RESEARCHERS) AND SUCCEED. Shefali Odhikari, Grocery Shop Owner, Bagerhat

SKILL TRANSMISSION

Beyond formal education, there is a wealth of knowledge among our narrators that has been picked up through other channels. These skills are practical and marketable, however most of them are not taught in formal schooling. In analyzing the stories gathered through this research, there was a speciďŹ c focus on how the poorest market actors are learning skills, with a view to improving transmission channels such as vocational and NGO trainings.

The main transmission channels through which our narrators gained the required knowledge and skills for a successful trade can be put into four categories: generational, formal training, informal apprenticeships, and on-the-job experience.

GENERATIONAL

One of the main ways in which our narrators develop marketable skills is to pick them up from their parents or relatives. In rural Bangladesh a great proportion of young people, especially boys, start working from a very early age to help their families ﬁnancially, and naturally develop various practical skill sets. Khulna vegetable trader Akij Uddin Skeikh joined his father in the fresh produce business after class 4 to learn the tools of the trade. He sat in the shop from an early age, and eventually had a cousin lend him money to start his own business. Ultimately Azij attributes any success thus far to knowing the business very well, carrying quality products and maintaining good relationships, however his biggest downfall remains a lack of capital. Sirajganj basket producer Shree Manik Chandra Das, who is illiterate other than the ability to sign his own name, told us that his only option to learn skills for work was through his brother – a tough but eﬀective teacher.

YOU KNOW, I DIDN’T HAVE ANY SKILLS THAT TIME. SO ONE OF MY BROTHER TOLD ME-YOU DON’T HAVE ANY SKILLS, YOU BETTER COME AND STAY WITH ME. I STAYED, EVEN AFTER ALL THE SUFFERINGS AND INSULTS. I STAYED JUST TO LEARN THE SKILL FOR WORK.

Shree Manik Chandra Das, Basket Producer, Sirajganj

FORMAL TRAININGS

Formal trainings, offered by NGOs, donors and Government organizations,stand out among our narrators as having a very positive impact on improving their livelihoods. The desire for new and relevant skills is very strong, and with relatively few of the poorest market actors receiving these trainings, they provide a distinct competitive edge. In our research, trainings from organizations including the Bangladesh Small and Cottage Industries Corporation (BSCIC), World Vision, the Danish Government, Unnoyon Songho (handicrafts), Khulna Training Institute and others that are not referred to by name have been mentioned positively, imparting skills in sectors including handicrafts, weaving, horticulture, livestock, paramedical services and financial management. Satkhira dairy farmer Shikha Hafiz has benefited greatly from trainings, and still claims to do one or two a month. Shikha had to push against gender barriers to ensure she could get access to the skill she needed.

THE TRAINERS WOULDN’T PAY ME MUCH ATTENTION BECAUSE I AM A WOMAN. THEY GAVE MORE TIME TO THE MEN.I TOOK TRAINING EVEN IF I WAS NOT INVITED. I SAID, ‘I DON’T WANT THE MONEY – JUST LET ME ATTEND THE TRAINING.’ AT FIRST THEY WERE RELUCTANT TO TAKE ME. I USED TO ATTEND BY FORCE. I USED TO ADDRESS THE PEONS AS ‘UNCLES’ AND GET MY NAME IN. THEY WOULD SAY, ‘SHIKHA APA, YOU WANT TO TRAIN? OKAY WE’LL INCLUDE YOUR NAME.’ ONE MUST HAVE KNOWLEDGE TO DO BUSINESS. Shikha Haﬁz, Dairy Farmer, Satkhira

JOB EXPERIENCE

Still the most common form of experience and knowledge is gained while on the job. With the majority of rural Bangladesh being dominated by agriculture, it is no wonder that there exists a depth of knowledge on how to sow land and produce crops. However this can also lead to a suspicion of new techniques. Bandarban vegetable farmer Md. Nurul Islam has been farming since he was 14 years old, and claims that he can tell how much fertilizer to apply and which crops to cultivate by simply looking at the soil.

THE AGRICULTURAL OFFICERS GAINED KNOWLEDGE ON FARMING BY READING BOOKS BUT I HAVE GAINED KNOWLEDGE BY PRACTICAL EXPERIENCE. SOMETIMES THESE OFFICERS DON’T KNOW MORE THAN ME. THEY DON’T KNOW THE BEST TIME TO APPLY FERTILIZERS IS, THEY HAVE LESS IDEAS.

“I HAVE NOT RECEIVED ANY SPECIAL TRAINING. I HAVE LEARNT ALL THESE THROUGH MY PREVIOUS WORK EXPERIENCE. I HAVE BEEN INVOLVED IN IT FOR 5-7 LONG YEARS. I CAN NOW DO THIS ON MY OWN, AND WILL CONTINUE DOING IT. I HAVE GAINED EXPERTISE IN THIS FIELD. HOWEVER, WHEN THE COSTS ARE HIGHER IT IS NO LONGER WORTH IT. THIS IS THE MAIN PROBLEM.”

Md. Nurul Islam, Vegetable Farmer, Bandarban

MD. JAMADUR RAHMAN, FISH FARMER AND TRADER, KURIGRAM

Kurigram ﬁsh farmer and trader Md. Jamadur Rahman has developed his expertise the same way that most of our narrators have – through failure. Jamadur lost a large amount of ﬁsh and thousands of taka at one point due to improper care, and has taken valuable lessons from this experience.

INFORMAL APPRENTICESHIPS

Another way that skills are being learned is through informal observation. With a lack of options for vocational training many of our narrators simply observe others and try to pick up whatever information is possible. No ﬁnancial compensation is involved, the individuals who portray a desire for this type of learning see enough merit in the opportunity to gain skills and a compsetitive edge. Kurigram tea stall owner Joynal Abedin, whose inability to continue his education was referenced earlier in this chapter, learned the skills he needed through observation over time. He is now debt-free, running his shop successfully and considering expanding his business with ﬁnancing from a local cooperative.

I HAD NO EXPERIENCE. I GATHERED THE EXPERIENCE BY SITTING AT OTHER PEOPLE’S SHOPS. THESE EXPERIENCES CAME FROM MY EARLY BUSINESS DAYS WHEN I USED TO BE IN RANGPUR AND OTHER PLACES AND USED TO SIT AT THE SHOPS AND PASS THE TIME. SOMETIMES, A FEW OF THE PEOPLE PUT ME IN CHARGE OF THEIR SHOPS. AND THUS, I HAD EXPERIENCED THE ART OF RUNNING A SHOP.

I OBSERVED THE ACTIVITIES AROUND THE SHOPS, AND HOW THE LOCALS ENGAGED IN DIFFERENT TRADES. I OBSERVED SILENTLY AND SHARED WITH NO ONE. I JUST STOOD ON A SIDE. I LISTENED AND SAW WHAT THEY DID, WHAT THEY PRODUCED, WHERE THEY PURCHASED THEIR SUPPLIES. I STARTED THINKING WHAT I COULD DO. I HAVE APPLIED WHAT I LEARNT INTO WHAT I PRACTICE NOW.

Joynal Abedin, Tea Stall Owner, Kurigram

Alamgir Sarker, Seashell Craftsman, Patuakhali

In some cases, our narrators have been silent learners. They have learned from people in the market, sometimes unbeknownst to them. Sea shell craftsman Alamgir of Patuakhali narrates how he had earned knowledge about his sector through patient observation.

HOPE

SETTLE

ACCIDENT FLOOD TOUGH

LAND HARD

SURGE

BUSINESS

PROTECTION

TRADER

RIVER

LIFE

ILLNESS SUFFER LABOUR EROSION DEATH

RISKEARNING

CYCLONE

DISASTER

FAMILY

LIVELIHOOD

ROAD

CHILDREN

RISK AND RESILIENCE SALINE INJURY Wasif Gaws Creative Director Grey Shack Limited

INTRODUCTION

Our narrators and their families are exposed to many risks in business and everyday life, facing them largely without the protection of social safety nets, insurance systems or accessible legal redress. As a poor market actor, cash is almost always tied up in production, attempts at growth and/or repayment of loans, with very little margin for error. We can therefore speak of resilience in the case of our narrators as a product of necessity – shocks lead to indebtedness, hardship and ultimately an absolute dedication to re-build, however a positive result is far from certain.

their and their family’s poverty on their own terms, however they lack support in preventing or mitigating external (market and environment) and internal (family) risks. Family, loans and prudent decision-making can only get them so far, the realization of risks discussed in this section are inevitable and require support from state or local government structures to ensure that these occurrences do not devastate the lives and livelihoods of the poor. Basic social safety nets and insurance systems could provide the poorest market actors with a stronger foundation, and stronger roots for long-term growth.

It is important to note that while disasters, accidents, or illness can have devastating eﬀects on the livelihoods of the poorest market actors, engaging in markets is likely their most eﬀective resilience strategy. Our narrators have demonstrated more than enough motivation to reduce

This section follows our narrators’ lifelong struggles to get a foothold in the market, the risks that make this diﬃcult, and the strategies that they employ to mitigate the eﬀect of shocks.

NATURAL DISASTERS

Much of life in Bangladesh depends on the mighty rivers which flow through it, for better or for worse. Our researchers met Bhola soybean farmer Md. Jamal while he worked in his field in February, 2015. Md. Jamal got into farming after failing to raise or borrow enough money to go abroad, a factor that has motivated him to save a small portion of his earnings ever since. He and his family have been victims of river erosion 7 times, and even lost 20,000 taka two years ago due to salt water inundating his crop. He has slowly rebuilt his life after every disaster, and dreams of one day buying land and starting a fish culture project.

RIVER EROSION HAS BEEN PART AND PARCEL OF OUR LIFE. OUR HOME WAS IN TOJUMUDDIN (A RIVER ISLAND), IT DISAPPEARED

DUE TO RIVER EROSION. THEN MY FATHER BUILT A HOUSE IN A NEW PLACE FOR TWO HUNDRED THOUSAND TAKA. EVEN THAT GOT SWALLOWED UP BY THE RIVER. THEN WE MOVED TO THE NEXT UNION. IT HAPPENED THERE AGAIN. LATER WE SETTLED ON THE EMBANKMENT. THEN WE MOVED TO ANOTHER PLACE. I CANNOT TELL YOU HOW MANY PLACES WE MOVED TO AND BUILT NEW HOMES.

Md. Jamal, Soybean Farmer, Bhola

In the case of Bandarban peanut farmer Nurul Islam, his story of displacement began almost 28 years ago. A devastating erosion in the river banks of Meghna destroyed the homestead of Nurul’s family. According to him their shelter was ‘submerged deep in the bottom of the river’. Nurul’s father, scrambling to regroup his life, picked up his family and travelled to Chittagong in search of a better future. Eventually settling in Ruma Bazaar, Bandarban, Nurul is still viewed as a ‘settler’, and cannot legally own land or take loans from banks.

Our narrator Md. Yusuf Ghazi, whose use of multiple micro-credit loans to garner enough capital for his business was also covered in our chapter on Capital Formation, told us a story of hardship following the infamous cyclone SIDR in 2007 that battered the shores of Bangladesh. Although Yusuf could not access Government support to cushion his loss at that time, he slowly re-built over the last 8 years, continuing to take overlapping micro-credit loans to invest in his business. On a warm February morning in 2015, Yusuf shared his story and his ongoing journey to build back better.

In our narratives cyclones appear as life and business altering disasters in coastal districts including Cox’s Bazar, Khulna, Patuakhali, Bhola and Satkhira. The impact of these disasters on businesses is far reaching and multifaceted – capital loss and destruction of production systems are particularly common results. In many cases, these losses are still being felt a generation later, as individuals recall the far-reaching eﬀects of a disaster on their family’s assets, land and livelihoods. In the case of Shamsul Haq of Cox’s Bazar, whose losing battle to re-open his shop following a cyclone was covered in the section on Forming Capital, his daughters’ are coming up to the age of marriage and he cannot imagine how he will shoulder the dowry and wedding expenses. Returning to his pre-disaster days of running a business and supporting his family is seemingly impossible, as he now knits ﬁshing nets for 350 taka per day.

YOU KNOW THE RECENT SIDR THAT HAPPENED? BECAUSE THE POND WENT UNDER WATER, ALL THE FISH WERE GONE. THE NUMBER OF TREES FALLEN ACROSS THE PONDS WAS 50 TO 60 IN THE UPAZILLA. BIG TREES; BRANCHES AND ALL. MY FISH FRY WORTH 50 TO 60 THOUSAND TAKA HAD PERISHED.

THEN THE PEOPLE FROM THE FISHERIES DEPARTMENT CAME FOR INSPECTION. THEY WANTED A LIST OF THE AFFECTED FISH FARMERS QUICKLY. A LIST WAS SUBMITTED. IT WAS

ALL DONE IN THE OPEN. IN FRONT OF THE UPAZILLA OFFICER. SEE I AM THE ORIGINAL FISH FARMER HERE, AND I WASN’T EVEN NOTICED. NOW IF I CLAIM COMPENSATION, EVERYONE ELSE WILL CLAIM THE SAME. I’VE BEEN ABLE TO RECOVER FROM SOME OF THE LOSS INCURRED IN THE YEAR SIDR HIT. I WAS IN SUCH A STATE THAT I DIDN’T HAVE THE MONEY FOR A CUP OF TEA.

Md. Yusuf Gazi, Fisherman and Fish Trader, Patuakhali

Md. Mainuddin, crop farmer and mustard cultivator comes from a large family in Doulatkhan, but farms on rented land on Hazipur char. Our researchers spoke to Mainuddin in a cyclone shelter where he still lives, farming rented land and catching ﬁsh in the rivers during the rainy season. The vulnerability of life on a char is apparent throughout Mainuddin’s story, compounded by a lack of assets and capital. Getting to market means growing in sometimes saline land, borrowing money at high interest rates, battling the elements and transporting goods over water to Doulatkhan in hope of a decent price. Exasperated yet determined, Mainuddin shared a particularly harrowing experience:

IN 1996 OR ‘97, THERE WAS A FLOOD. MY FATHER WAS IN DOULATKHAN. SUDDENLY THERE WAS UNTIMELY STRONG WIND AND RAIN ONE DAY, WHICH STAYED TILL THE EVENING; THERE WAS ONLY ME AND ANOTHER GUY NEXT DOOR. WE THOUGHT THAT WOULD BE OUR LAST DAY. YOU KNOW, EACH ISLET HAS A RAISED PART, AND A TAIL PART. WE WERE IN THE TAIL PART. I SAID TO THE GUY – ‘THIS IS THE END FOR US’. HE SAID THAT OUR FATE WOULD BE THE SAME AS THE OTHERS OF THE ISLET. WE WERE REARING DUCKS THEN; YOU KNOW THE ONES LAY EGGS. WE SET THEM FREE, SAYING ‘GO, WILL GET YOU BACK IF YOU DON’T GET WASHED AWAY’. WE HEARD THAT THERE WOULD BE 10 TO 12 FEET WATER, WE MEASURED IT WITH A BAMBOO STICK AND FOUND THAT THE WATER ALREADY WENT ALMOST UP TO OUR ROOF, SO WHEN THE TIDAL SURGE COMES, EVERYTHING WILL BE WASHED AWAY. THE GUY SAID, ‘LET’S GO TO THE RAISED PART’. WE SET THE COWS FREE. IF THEY SURVIVE, WE CAN GET THEM BACK. AS WE WERE LEAVING FOR THE RAISED PART, WATER WAS ENGULFING THE AREA WE LEFT. WHEN WE GOT THERE, WE SAW A COW SHELTER WAS BUILT. WE STAYED THERE FOR 3-4 HOURS. THEN THE WATER STARTED RECEDING SLOWLY, I WANTED TO HEAD BACK, THE GUY SAID ‘THERE IS STILL WATER’. NONETHELESS WE TRACED BACK PADDLING WAIST-HIGH WATER. FINALLY WHEN THE WATER RECEDED - OH! THERE WERE NO MORE CROPS. THE COWS AND BULLOCKS WERE EITHER DEAD OR WAITING TO DIE WITH WATER FILLED STOMACH. Md. Mainuddin, Crop Farmer and Mustard Cultivator, Bhola

YOU KNOW HOW WE LIVED THEN, IN A HOUSE MADE OF STRAW AND HAY; WE WOULD MAKE A BAMBOO-PLATFORM INSIDE IT, STAY ON THE PLATFORM AND KEEP COWS UNDERNEATH. SOMETIMES THE HOUSE, YARD WOULD GO UNDER THE WATER OF FLOW TIDE. WE WOULD TIE-UP THE NOSES OF THE COWS WITH A ROPE TO RAISE THEIR HEADS ABOVE THE WATER LEVEL, TO STOP WATER GETTING INTO THEIR NOSES. SOIL SALINITY USED TO BE HIGH, NOTHING WOULD GROW. EVERY SEED WE SOWED WOULD SHRIVEL. THE PLANTS WOULDN’T GROW MUCH. PRODUCE WAS LESS. AT THAT TIME, THERE WAS NO CHEMICAL FERTILIZER FOR THAT LIKE TODAY. Md. Mainuddin, Crop Farmer and Mustard Cultivator, Bhola

Mainuddin carried on with diﬃculty, sharing more elements of his constant struggle to earn a living on Hazipur char:

As mentioned by Mainuddin, soil salinity is a well-documented challenge to farming in the coastal areas of Bangladesh, and presents a long-term risk to the area’s agricultural production, drinking water and ecosystems. Our narrators have been part of a pattern of shifting livelihoods influenced by rising soil salinity and the profitability of the shrimp trade – a major growth and export industry for Bangladesh and good source of income for many producers. As the salinity increases, more farmers are creating gher, a man-made salt water pond, and in turn affecting the surrounding land. Depending on the lens that is used, switching livelihoods to shrimp cultivation is either a good resilience strategy in increasingly saline areas, or an ultimately unsustainable trend that will threaten the production of other food crops. Satkhira shrimp fry farmer Shahadat Hossain paints a picture of how this industry has continued its exponential spread.

MY RICE DIED WHEN THE FIRST GHER WAS MADE HERE. THEN I MADE A GHER AND THE RICE IN THE ADJACENT FIELD DIED. SO SLOWLY EVERYONE TURNED THEIR LAND INTO GHER. Shahadat Hossain, Shrimp Farmer, Satkhira

ROAD AND WATER ACCIDENTS

Poor transport infrastructure and road accidents are a risk factor for all businesses in Bangladesh, however our narrators have shared why this is particularly affecting their opportunities for expansion. As seen in the chapter on Journey to Market, the costs of transporting goods to market limit poor traders’ profit margins and come with a high risk of financial loss. Often our narrators choose to sell locally to avoid the risks of transportation and perishability. However the risk to life and limb is also considered by our narrators to be a main reason for avoiding transportation, limiting their access to potential markets in other districts and beyond. Abul Kalam has been producing and selling sea shell ornaments in Cox’s Bazar for over 30 years, a skill originally learnt from his brother but given new life through his own creative talents. His business relies on the tourism sector and has been profitable enough to keep his 3 children in school, even though his shop along with more than 200 others was recently destroyed in a drive to clear Government land for tourism purposes. Abul lost his mother at a young age to a road accident, and even though he has done good business in cities such as Dhaka and Sylhet in the past, does not want to risk his life to expand his business.

I HAVE SEEN MANY ROAD ACCIDENTS/INCIDENTS WHILE TRAVELING TO DHAKA FOR TRADE AND I FEAR IF SOMETHING HAPPENS TO ME

MY FAMILY WILL BE VERY MUCH VULNERABLE WITH NO ONE TO LOOK AFTER THEM. SO I DECIDED TO GIVE UP THE INTER DISTRICT TRADE AND I HAVE NO REGRET FOR THAT. SOMETIMES GIVING TIME TO FAMILY IS MORE IMPORTANT THAN BUSINESS.

Abul Kalam, Sea shell Stall Owner, Cox’s Bazar

Bilal Sarder, a young tomato trader from Khulna contracts several local farmers, paying them 10,000 taka advances and the remainder of the crop’s value after he sells the produce. Bilal learned the business from his father, and dreams of escaping the volatility of trading in vegetables one day by establishing a depot and moving up the value chain. However he realizes that the only way for him to do business is to assume signiﬁcant seasonal, ﬁnancial and infrastructural risks.

I AM A LITTLE WEAK FROM AN ACCIDENT THAT HAPPENED A FEW DAYS AGO. MY PICK-UP WAS PARKED. THE TRUCK CAME FROM BEHIND AND HIT IT. THE PICK-UP WAS STANDING BELOW NOAPARA COLLEGE AT PAIKELGHATA ON THE WAY TO NOAPARA. THERE WERE SOME PEOPLE IN THE PICK-UP. I SAID, ‘LET’S START. IT’S 1:30 IN THE MORNING. I HAVE TO UNLOAD AT THE DEPOT. I’LL REST FOR A WHILE.’ JUST AS HE TOOK THE STEERING A TRUCK HIT FROM BEHIND. I THOUGHT BY GOD’S GRACE I HAVE SURVIVED. MY GOODS WORTH 25,000 TAKA WERE RUINED. ONE MUST ASSUME RISK IN ORDER TO CARRY ON BUSINESS.

REMEMBER THERE WAS HAIL STORM A WHILE AGO? THAT RUINED THE TOMATO HARVEST. SO I SUFFERED A SETBACK. THE HAIL RUINED ALL CROPS. DID YOU SEE WHAT HAPPENED? IT MADE A HOLE THROUGH THIS TIN. IMAGINE WHAT WAS HAPPENING TO ME. THE OWNER OF THE FIELD TOOK HIS MONEY AND WENT HOME. WHAT WILL HAPPEN TO ME NOW? MY BUSSINESS IS SUCH THAT I CANNOT OPERATE WITHOUT MONEY.

Bilal Sarder, Tomato Trader, Khulna

Bilal added that all of his contracted tomato crops were recently ruined by a hail storm, wiping out his working capital.

Md. Monir, a ﬁsherman in Bhola, demonstrated that roads are not the only dangerous method of transportation in Bangladesh. We have heard of accidents at sea and on the river from several of our narrators, none of whom have had safety devices such as life jackets on board. In an accident on the river Monir lost the most important asset in his business, his boat, but fortunately managed to come out alive.

IF YOU ARE GOING TO THE RIVER ACCIDENTS CAN ALWAYS HAPPEN. ON ONE OCCASION WE HAD TAKEN A SMALL BOAT TO PLACE OUR NETS. WHEN WE WERE RETURNING TO THE SHORE WHEN WE CAME ACROSS A LARGE CHINESE SHIP ALL OF A SUDDEN, COMING STRAIGHT AT US. I SIGNALED AND SHOUTED BUT THEY PERHAPS DID NOT NOTICE. WHEN THE LARGE SHIP CLOSED ON OUR BOAT I GOT MYSELF READY. THERE WERE THREE STAFF WITH ME ON THE BOAT. I TOLD THEM, ‘JUMP INTO THE RIVER AND SWIM ACROSS

TO THE SHORE.’ I KEPT ALERT. THE MOMENT THE SHIP HIT OUR BOAT I TURNED MY BOAT ENGINE TO BACK GEAR. WITH A LOUD ‘CRACK’ MY BOAT SPLIT INTO TWO RIGHT IN THE MIDDLE. I SOMEHOW JUMPED INTO THE RIVER AND SWAM TO ONE SIDE. MY THREE COMPANIONS HAD DIVED UNDERWATER AND SWAM

UNDER THE SHIP TO THE OTHER SIDE. I SAW SOME CHINESE CREW WAVING AT US FROM THE SHIP AND LAUGHING OUT LOUD. I SOMEHOW SWAM BACK TO THE SHORE THAT DAY. IN THE WORLD OF RIVERS, ALLAH DECIDES WHO WILL RETURN HOME AND WHO WON'T.

Md. Monir, Fisherman, Bhola

HEALTH AND INJURY

Finally, amidst a sea of risks that our narrators must navigate, illness is an occurrence that is especially crippling to one’s ability to earn a living. In an environment where social protection programmes are fragmented and poorly targeted, and work depends on various sets of physical abilities, the inevitability of sickness poses a constant risk to one’s family and assets.

I DID MANY KINDS OF BUSINESS FROM AN EARLY AGE. FRESH PRODUCE – I DID IT ALL MY LIFE. FOR THE LAST 35 YEARS. I DID A GROCERY BUSINESS FOR A WHILE. PHYSICAL AILMENTS FINISHED ALL THAT. THIS LEG BECAME USELESS. THE CALCIUM DRIED UP. I FINISHED WHATEVER (MONEY) I HAD AFTER THAT. THEN I RECOVERED. I SPENT ABOUT 200,000 TAKA FOR THE TREATMENT OF MY LEG. I FINISHED EVERYTHING. I SOLD MY FATHER’S 3 DECIMAL LAND. THAT ACCIDENT FINISHED EVERYTHING.

Akijuddin Sheikh, Vegetable Trader, Khulna

For our narrators family is often the only social safety net, especially as they approach old age. This is a diﬃcult but inescapable reality in the informal sector, where a life of resilience to shocks can be rewarded only by a painfully straightforward scenario in old age – either continue to work, or cease surviving. Sylhet cake seller Noor Badan has struggled to raise 4 sons and 2 grandsons, shouldering signiﬁcant medical costs along the way. With equal determination and exasperation, Noor recounted how she has no capital or land, a degenerating physical condition, and a home that has been eaten by insects and is near collapse. Her investment in her children is her only retirement plan.

I’LL CONTINUE MY BUSINESS AS LONG AS I CAN, BUT NOW MY HEALTH IS NOT IN GOOD CONDITION. I HAVE DEVELOPED PAIN BECAUSE I HAVE TO WORK SITTING FOR A LONG TIME. I’LL HAVE TO DO THIS PITHA (CAKES) SELLING BUSINESS AS LONG AS I’M DESTINED TO DO IT. IF MY CHILDREN ARE GOOD, HOW LONG SHOULD I TAKE THE PAINS OF THESE HARD WORKS? IF THEY WANT ME TO LEAVE THIS BUSINESS, I’LL STOP, BUT IF THEY DON’T, I’LL HAVE TO CONTINUE. IF I DON’T KEEP UP, WHAT WILL I SURVIVE ON? WHO SHOULD I EXPECT TO FEED ME? Noor Badan, Cake Seller, Sylhet

Injuries suﬀered on the job are also a very common occurrence amongst our narrators – whether gradual ‘wear and tear’ from years of physical labour, or sudden accidents. We have observed some extremely dangerous livelihoods, such as fuel wood cutting and blacksmithing, undertaken by individuals who fully comprehend the likelihood of an accident but have no choice but to carry on working. Satkhira shop owner Md. Kowser Ali Gazi was driving a transportation van in Shyamnagar one stormy evening, and was electrocuted by a torn wire from his van that hit him on his chest. This unlucky event had harmful implications on Ali Gazi’s health months after the incident, leaving him unable to work and dependent on his family.

I DIDN’T TELL ANYONE AT HOME OF MY ORDEAL THAT EVENING. I AM THE ELDEST SON. MY PARENTS WOULDN’T BE ABLE TO ACCEPT IT, IF ANYTHING HAPPENED TO ME. WE WENT THROUGH DIFFICULT TIMES THEN. I WAS UNWELL. FATHER WAS NOT CAPABLE OF RUNNING A HOUSEHOLD OF FIVE TO SEVEN PEOPLE. HE DIDN’T HAVE THE CAPACITY. MY MOTHER WORKED FOR OTHER HOUSEHOLDS. MY GRANDMOTHER USED TO COLLECT A LITTLE RICE FROM HERE, A LITTLE SPINACH FROM THERE TO EAT. THIS IS HOW THE FAMILY SURVIVED. WE WENT THROUGH HARD TIMES. Md. Kowser Ali Gazi, Shop Owner, Satkhira

For cigarette and beetle nut vendor Hasan of Sirajganj, his business has been his only hope of survival after he lost one of his legs to gangrene following a ﬁshing injury. He was a rickshaw van puller until he had this accident, and within months he had fathered his second child. He revealed the diﬃculties of earning an income as a disabled person in Bangladesh, battling social stigmas and the lack of any form of state support.

I WAS IN COMPLETE DISMAY AFTER THE DOCTOR HAD AMPUTATED MY LEG. I HAD WIFE AND CHILDREN TO FEED. I COULD NOT THINK OF A BEGGAR’S LIFE. DOCTORS ASKED ME NOT TO DO ANYTHING FOR THREE MONTHS. NO ONE LIKES A DISABLED PERSON, NOT EVEN MY FAMILY. NO RESPECT FOR A PERSON WHO CANNOT EARN. I COULD SEE NO HOPE. EVEN I BEGGED FOR A FEW DAYS ON THE STREETS, I MUST NOT HIDE ANYTHING TO YOU. SOME KIND PEOPLE DONATED ME AROUND A THOUSAND TAKA. THEY SAID YOU ARE A YOUNG FELLOW, TRY TO START A BUSINESS WITH THIS MONEY. I SET UP THIS BUSINESS UNDER THE OPEN SKY WITH THAT MONEY. YET, I COULD NOT SAVE MY PRODUCTS FROM THE RAIN SINCE I WAS UNABLE TO MOVE THINGS MYSELF. HOWEVER, I COULD SAVE SOME MONEY SLOWLY AND FINALLY COULD BUY THIS STALL. NOW I AM GROWING, SLOWLY THOUGH. I HAVE NEARLY 25,000 TAKA WORTH OF STOCK IN THE SHOP NOW. I MAKE 250-300 TAKA EVERY DAY. I AM SAVING AS MUCH I CAN TO EXPAND THE BUSINESS.

I WAS UNDER PRESSURE AFTER INVESTING IN THE GHER, ALSO BUILDING THE HOUSE. I HAD DIFFICULTIES IN BUYING NECESSITIES FOR THE FAMILY. ON TOP OF THAT, MY WIFE HAD AN ACCIDENT WHILE SHE WAS RETURNING FROM NOYAPARA. HER TREATMENT HAD COST ME AROUND 80 TO 85 THOUSAND TAKA. THIS IS A PART OF THE 400 THOUSAND TAKA LOAN NOW I HAVE ALTOGETHER.

Hasan, Cigarette and Beetle nut Vendor, Sirajganj

Mujib Sheikh, Fisherman and Rice Cultivator, Khulna

While our narrators assume various risks to their own personal safety, family accidents are also a big risk to their capital and livelihoods. In several instances, our narrators have given accounts of how an accident in the family has impacted their businesses, putting them deeper into debt or driving their business into the ground. Mujib Sheikh, who also features in our section on Forming Capital, had to dig deep into his working capital to ﬁnance his wife’s treatment following a road accident.

INSIGHTS AND RECOMMENDATIONS

Rather than producing recommendations, our narrative research is designed to provide insights. These insights can be used to inform further research, providing a foundation for tools such as surveys or focus group discussions. Most critically they give us a framework to understand what is most important to our target communities. This section summarizes some of the key insights and recommendations that we have gained through this research.

FORMING CAPITAL Access to quality finance matters The poorest market actors are struggling with micro-credit, which has been noted as readily available by the vast majority of our narrators. A new look is needed at loan products that are not only accessible, but can also foster and sustain growth among the poor. Across the country our narrators have shared their experiences with micro-credit, a staple in the lives of a majority of the individuals we connected with. What emerged were four broad patterns. Firstly, loans are being provided to the poor for non-productive purposes that do not generate sufficient income to repay the loan (i.e.: dowry). Secondly, micro-credit loan repayment terms are too inflexible, especially for seasonal producers who do not generate cash flow on a weekly basis. Thirdly, the micro-credit model is very profitable and poorly regulated, leading to predatory behavior from micro-finance providers. And finally, there is a large gap between the relatively low amount of capital provided under micro-finance loans and the higher-amount offered under commercial bank loans – which our narrators are largely unable to access.

Maintaining capital is as critical as forming it. With micro-credit available, our narrators are able to move money around, invest in inputs, and make repayments. However growing and maintaining capital is their biggest challenge. A very damaging cycle of credit on the input and output sides is depriving many of the poorest market actors of their hard-earned income. Additionally, a myriad of risks, social obligations, lack of legal protection and lack of written documentation is making it extremely difficult for our narrators to maintain their working capital and assets. Access to credit is the first step, however its benefits are greatly reduced if that capital is always at risk.

JOURNEY TO MARKET Access to infrastructure is as critical for the poorest as the infrastructure itself. Transportation and storage infrastructure are critical growth-enablers for the poorest market actors, but only if they are accessible. While our narratives have shown that there are still many gaps in infrastructure, it is also clear that the existence of infrastructure is not a guarantee that the poorest can make use of it. Rent-seeking behavior from transportation syndicates and law enforcement in particular make equitable access to public infrastructure far from assured. Analysis on new and existing infrastructure of this sort is warranted to ensure equitable usage.

Power imbalances in markets diminish the value that the poorest derive from their hard work. Syndicates of wholesalers and ‘middlemen’ put heavy ﬁnancial pressures on the poorest. This power imbalance in markets has emerged in narratives from across the country, mainly due to a lack of organization among producers who are unable to produce or stock enough product to achieve economies of scale. The impact of this lack of power on the producer side is an ultra-commoditized business model, where products are so perishable and transportation or storage are so unaﬀordable that a decent price is rarely secured. Supporting producers to organize into economic groups for collection, processing, transportation and storage would greatly increase the value they can derive from their products.

GOVERNANCE, GRIEVANCE AND GROWTH Weak rule of law is restricting growth among the poorest market actors Corruption puts undue financial pressure on markets, restricting growth among the poorest market actors. One of most common themes in our narratives, corruption from public officials and police affect the range of market actors we spoke to, from the poorest small scale producers, to traders shipping goods across the country. The role of political actors needs to shift from extractive, to protective of the capital and livelihoods of the poorest market actors.

GENDER, FAMILY AND MARKETS Addressing Gender barriers to engaging in markets requires a life-cycle approach The constraints that women face engaging in markets are deeply engrained, the biggest of which originate in social customs relating to marriage, women’s’ role in the household, and a lack of access to family wealth. Women in poor families are often discounted as a burden from birth, a handicap that is only deepened through customs relating to marriage and dowry. This perception of women as a burden often leads to abuse and/or a lack of self-confidence. The removal of women from cycles of inheritance, through marriage and lack of control over family finance, makes it doubly difficult for a women to exit from poverty. Our narratives have shown the value of female ‘champions’ in promoting behavioral change, inspiring women to engage with markets and shifting family views.

KNOWLEDGE, SKILL AND LEARNING Formal education is not transmitting skills for the informal economy Great progress has been made in primary education, however keeping children in school requires more attention to school fees and the skills that are needed to earn an income. Among the reasons that our narrators gave for leaving school, the need to earn an income and the inability to pay exam fees were most prominent. Reform in school fees, or targeted support for poor students, will greatly assist student retention. Integrating more vocational skills into curriculums would also support retention, as formal education is largely seen as only relevant for the formal employment, leading families to pull children out of school to learn livelihood-speciﬁc skills.

RISK AND VULNERABILITY Social protection and insurance products are needed to protect capital and assets The poorest market actors are weighed down by a multitude of risks – mitigating these risks is critical to ensuring sustainable poverty reduction and inclusive growth. Natural disasters, health problems, and accidents are all ‘when’ not ‘if’ problems for the poorest market actors in Bangladesh, and our narratives have shown time and time again that it can take years, even a generation, to recover from major shocks. Protecting working capital from these shocks through eﬀective social safety nets and micro-insurance programmes is necessary as a platform for growth among the poorest market actors.

SAMPLE NARRATIVES

Title: Bites of poverty Hazipur Char, Bhola 2 February, 2015

We were stationed for three days and two nights in a sandy islet (Char) named Hazipur of Doulatkhan Thana. It has neither electricity, nor any sort of motorized vehicles. The only mode of transportation for the locals is on foot, carrying goods on head, shoulder and back. Carrying goods in such a way to the trawler is colloquially known as taking goods to the naukaghata (jetty). It takes one to one and a half hours by trawler from here to reach Doulatkhan. The only way to reach this place is by the river. River erosion, floods, storms and high tides are part of life for the people living in this very remote area. It took two days for us to collect some narratives after reaching Hazipur Char. In the afternoon of 19 February, 2015 we went to find some farmers to collect narratives. Md. Mainuddin is one of the farmers we chatted with. He was roaming around in the bazaar area in the same afternoon. He took interest in talking to us after overhearing our conversation with the farmers. We informed him about our intention; he gave us an appointment on the following day, once knowing the discussion might take almost an hour. On 20, February, 2015 after spending an hour with us from 9 to 10 AM, he left for his work, he had the time to spare as some of his crops were harvested already, some were about to be harvested, and he was only weeding and watering the fields. Md. Mainuddin lived in a room in a Cyclone Centre when we went to him. His brother along with his wife and 3 children live in Hazipur Char. Mainuddin’s parents live in Doulatkhan. They are very old; and the old father cannot do the heavy work of farming anymore. We were interested to hear Mainuddin’s tale and without hesitation he recounted the

story of his life. Meeting basic needs is an uphill task for a family gravely stricken by poverty; Mainuddin’s life is weighed down by such poverty. The Mainuddins’ are six sisters and two brothers. The only breadwinner of the family was their father. They were in Doulatkhan, but the father used to live and cultivate borrowed land in Hazipur Char. Mainuddin studied till Class V, and his brother was studying in a Madrassa for some time. Mainuddin gradually lost interest in education because of the poverty of the family. He started by saying: -

“I was very young at that time, we were six sisters and two brothers, and father was away for his work (farming). We didn’t have any farm-land in Doulatkhan; father had to come to Hazipur Char to work on borrowed land. We were in school, but whenever we needed anything we couldn’t get it, because we were so poor. We would see father working in Hazipur Char, we helped him, looking after the cows and stuﬀ - father would chide us to go to school, but we wouldn’t want to go back once we were at the char.”

This is how Mainuddin left school. Six sisters had to get married oﬀ, they cannot be kept as spinsters, and the family was in the bottomless pit, as all of their cows, their source of income, were sold. Mainuddin said:

“We had six sisters, father became penniless to get them married oﬀ. We had some cows, all disappeared. You need minimum 1 lakh taka for a wedding. Father alone worked in ﬁelds at the islet (char), naturally we left school to join him.”

Mainuddin started living in the islet (char) and worked in the ﬁelds. At that time there were two major problems blocking farming and livestock rearing, one was high tides and the other was salinization of the land. In Mainuddin’s words, “You know how we lived then, in a house made of straw and hay; we would make a bamboo-platform inside it, stay on the platform and keep cows underneath. Sometimes the house, yard would go under the water during the high tide. We would tie-up the noses of the cows with a rope to raise their heads above the water level, to stop water getting into their noses.” About salinization of the land, he said,

“Soil salinity used to be high, nothing would grow. Every seed we sowed would shrivel. The plants wouldn’t grow much. Produce was less. At that time, there was no chemical fertilizer for that like today.”

At that time, Hazipur Char was not high at all. Gradual deposition of sand and silt by the tide raised the islet a little. In the rainy season, there would be water everywhere; Mainuddin spoke about his ﬂood experiences, he said,

“In 96 or in 97, there was a flood. Father was in Doulatkhan. Suddenly there was untimely strong wind and rain one day, which stayed till the evening; there was only me and another guy next door. We thought that would be our last day. You know, each islet has a raised part, and a tail part. We were in the tail part. I said to the guy – ‘this is the end for us’. He said that our fate would be the same as the others of the islet. We were rearing ducks then; you know the ones that lay eggs. We set them free, saying ‘go, we will get you back if you don’t get washed away’. We heard that there would be 10 to 12 feet of water, we measured it with a bamboo stick and found that the water already went almost up to our roof, so when the high tide comes, everything will be washed away. The guy said, ‘Let’s go to the raised part’. We set the cows free. If they survive, we can get them back. As we were leaving for the raised part, water was engulfing the area we left. When we got there, we saw a cow shelter was built. We stayed there for 3-4 hours. Then the water started receding slowly, I wanted to head back, the guy said ‘there is still water’; even though we traced back paddling waist-high water, finally when the water receded - oh! There were no more crops. The cows and bullocks were either dead or waiting to die with water filled stomach.”

Even though these people have to endure all these calamities to survive in life, they build back a new life every time with renewed hope. Common ﬂoods and high tides are part of their life. Sometimes they grow good crops and survive on that, but when crops are damaged or lost, they are in need of cash to start farming afresh. That is when they seek help from the local moneylenders, where they borrow money with high interest. At times, they have to pay double the amount they borrowed in 4 to 6 months. In reality they have no alternative but to go to these moneylenders. Mainuddin said,

“We borrow money from the rich, sometimes we have to pay 10,000 taka in 6 months for 5,000 taka. If we lose on crops done with borrowed money and the lender asks for his money back with interest - what can we do? Borrow again from someone else to pay back the ﬁrst lender. Consequently no one wants to give me a loan now. Learnt a lot from my tough experiences, I can make some proﬁt if I get a loan now. Nevertheless, no one is willing to give me a loan.”

“What to say, we are poor. When the government gives land through card, we do not get it. The Chairman and the Members of the area suggest the names of their relatives to get the land. Sometimes, they provide a lot of names, say for example, my name, but will identify someone close to them as me at the time of registering the land. So we never get the land, but we borrow the land from them for cash. They have made a lot of money by cheating the poor this way.” Mainuddin and his brother together now cultivate land, and when there is no scope for cultivation in the rainy season, they catch ﬁsh in the river. Otherwise they will be in distress, as farming is not possible here in rainy season. He said,

“My brother and I go to the rivers to catch ﬁsh. Fishing is needed; there will be no food if we don’t work.” Mainuddin does not sell his produce to any middleman; rather he takes it to Doulatkhan Thana at a higher expanse. He said,

Md. Mainuddin is now farming approximately 19 kadas of land, and the land is borrowed for cash for one crop only. It used to take 50-100 taka to borrow land before; now it has increased to 1000-1500 taka. Some land is good for certain crops; the owners lend those for higher price. At present, Md. Mainuddin is harvesting mustard, chili, tomato and sweet potato. He is cultivating mustard in 5 kadas of land and is hopeful that he will be able to produce 8-10 mon (656-820 lbs) mustard. Other than this, cultivation of tomato, chili and sweet potato are turning out good. He has to rented a tractor for 300 taka per kada. He has to spend three to four thousand taka for the fertilizer and other expenses. In many cases, farmers are given lands by the government, but Mainuddin or anyone from his family never got any land through the government card. Moreover he has been saved from not getting land from the low lying area, which would have involved additional expenditure. Md. Mainuddin said,

“Whatever we grow, we take it to Doulatkhan Thana, but the cost is high, as I grew mustard only in five kada, that I have shown you. I have to carry those to Doulatkhan Thana. My mustard of 5 kada will be total 7 to 8 mon (656-657 lbs.); I shall have to pay 30 taka per mon boat fare to Doulatkhan, then my personal expenses. If I sell there, I shall have to pay tax, have to pay commission to a local racket, a lot of expenses are involved. If I could have cultivated more land, then it would have been profitable. The way it is done now we do not earn much out of it. The produce grown is all right, but for us production cost is high. The middlemen that come here offer one thousand per mon, but in Doulatkhan it is two thousand taka. All the produce in total comes to 30 to 40 mon (2460-2470 lbs.)”.

To the question why does he not sell his produce to Dhaka, Mainuddin answered,

“All told total produce weighs 30 to 40 mon (2460-2470 lbs.), but all cannot be harvested in a day; chili today, mustard tomorrow, potato day after, moreover no provision for storage for me. Can’t go to Dhaka for such small amounts.” There is lot of challenges involved here; produce must be sold as soon as it is harvested. Loss is incurred when taken to Thana bazaar, also there is little chance of earning anything when sold to the middlemen coming from Noakhali. When some farmers are selling their produce to the middlemen, Md. Mainuddin takes his produce to the Thana, commuting for two hours by boat, with the hope of earning a little more. Md. Mainuddin just got married few weeks ago. He said,

“I did not bring the bride home yet, but I will get her very soon. The other day my wife called and asked me - what do you have at home? Bed? Clothes stand? Suitcases?” Mainuddin has big plans for the future and is working hard for them. Little by little he is saving money. Now that he is married, he worries about the future, what it holds for him and for his unborn children. His dream is to buy a piece of land and build his own house. Once he is able to save some money, he intends to do business. Mainuddin said,

“These middlemen come here to buy produce at a lesser price and sells at a higher price in Noakhali, Chittagong or in Dhaka. I would like to do similar trading when I shall have money.” In reality, people like Mainuddin survive the bitterest ‘bites of the poverty’. They know how diﬃcult real life can be. He strives to keep well and keep on earning in the midst of such adversity. Getting married, having children, owning land and etc. are the beads on the necklace of life, the ones who make the necklaces are the optimistic people like Md. Mainuddin.

I WOULD BUY A STRONG SHOE, SO IT HURTS WHEN BEATEN WITH IT

Bramhogoti, Satkhira 22 March, 2015 The name Digholia comes foremost to everyone when talking about the other side of the river from Khulna. A lot of people said we would find a lot business people involved in gher and shrimp. We started from Shonadanga by bus for Digholia early morning on 24th of March. First we went to Shonadanga bus terminal. From there to Daulatpur ferry terminal by ‘easy bike’. We crossed the river at Daulatpur and reached Digholia Upazilla. There we met a health worker who gave us the number of Shikha Begum after we asked her about entrepreneurs in the area. Shikha Begum is a successful business person in mixed trades. First we called Shikha Begum. She happily invited us to her house when we introduced ourselves. We went to her house on a van. When we were close by we couldn’t find the address. Suddenly a motherly lady came out and said, ‘You must be looking for me.’ The health worker had told us: ‘Take her interview early on. She is not the type to sit at home.’ Shikha begum’s father, Abu Bakr, was a local official. He married 9 year old Shikha Begum to a 35 year old man. Her husband had a stroke and became jobless. So Shikha Begum had to depend on father’s household. Shikha Begum’s mother had died in childbirth. Her father married a second time. The step mother didn’t like her dependence on or her visits to her father’s house. From her father’s two marriages they are 7 children and 10 children, respectively – a total of 17. Such a family was always in poverty. So Shikha Begum got no shelter at her father’s house. Her father eventually died of stroke. Shikha Begum had her first child at 13. She had her older son at 15 and younger son at 17. She studied up to class 8. Her husband had encouraged her to study this far. Her husband lost his physical ability to work after his stroke. According to her:

“My husband couldn’t bring me one sher rice. He never bought me a dress. He had opened a tea shop; he couldn’t even run that. I don’t know how other men are. But I’ve never seen a better person than my husband.”

Shikha Begum said her husband has always cooperated and inspired her. Her husband’s extreme conﬁdence in her allows her to move forward. Despite her husband’s encouragement to help her up to class 8 in school, she couldn’t study further. She sent her children to her sister’s house. 1,000 Taka was needed to take the SSC exams. Her father had died then, so she couldn’t aﬀord the exam. At one time she managed 20,000 Taka to sink a shallow tube well to sell water. She sold water all night long. She used to get 30 Taka an hour to pump up water. Her two sons would buy her the fuel and oil. But even after this the poverty remained. So she sent her daughter to work elsewhere.

“I sent my daughter to work. By working at her uncle’s house and here and there she was able to earn rice, vegetables and some money.”

To ﬁnance her children’s education she would use the money earned from planting vegetables around the house. In this manner she sent her daughter to school, one son to BRAC School and the other son to another school. But it was a big burden for Shikha Begum to maintain both the house and school expenses. She says:

“I have suﬀered a lot in life. I never ate a full stomach. I used to sell water. I sank a well. It was on 1 decimal of land. At the time, in order to sink a shallow well, I sold two bigha of my father’s land and took 20,000 Taka. I sold water all night. My water sold at 30 Taka per hour. My sons used to buy me the fuel and oil. I used to turn it on myself. Then I would let it pump water all night. I had 50 – 60 Taka in earnings. But I did this thrice and left it. Because my children were going astray. I used to be in the ﬁeld.”

Through her words I could picture the earlier hard reality of her life. Her life story:

“I never got any help from any Member or Chairman or from anyone nearby.”

Shikha Begum suﬀered from ﬁnancial constraints regarding the family. On the other hand the children had to be educated. She didn’t know what to do. She was advised by a local doctor to take a training on paramedics. On his advice, Shikha Begum got admitted to the government paramedical course.

“I worked at the Linda Clinic in Shiromoni Bazaar near Phulgari Gate. My salary was 700 Taka. I had to work 24 hours a day.”

She started giving medical treatment in the village after her training.

“I would administer injections in the village. I would go even if I was called at 3 in the morning. I wasn’t scared. I used to get paid in return. Say, 5 or 10 Taka. Not everyone had the cash. Some of them would give me spinach, rice, ﬁsh etc.”

At this time Shikha Begum faced a lot of social adversity. The obstacles that the rural women of Bangladesh face when working outside the house was apparent in her words:

“Nobody looked kindly upon my walking through the streets. People talked rubbish. When I would come back, it would be through muddy streets. So I would suﬀer coming home. And the amount of abuse I had to bear going through that street. Nobody looked at me decently. I wouldn’t start before 8pm. Because the fare was 5 or 10 taka. Then my salary would be spent on fare. I have faced hoodlums, drug addicts on that road. Nobody looked at me decently. They stared. I had to face a lot of hardship getting home. I never walked wearing my sandals; they were always in my hand. I carried them because there may be danger any moment. I used to beat with my sandal and I’ve done that a lot. I always bought good sandals. I used to buy strong sandals so it would hurt when I beat someone. It can be deduced from what Shikha Begum says that it is not only hard for a woman to work outside the house but insecure as well. Shikha Begum faced a lot of hassle and abuse on her way back from her job at the hospital. She carried on her work in spite of these obstacles. She found her own solution to her problem. She always carried her sandals in her hand. She would strike with that if she was accosted.

“If I told some man: ‘There is no chilly in the house. Can you get me some?’ The man would ﬁrst check to see if anyone was watching or if anybody saw them talking. His wife will give him hell – ‘You talked to Shikha?’ He would see if there is anybody nearby. He would fetch the chilly if no one was around. If not, he would say, ‘Sorry, please ask someone else. Not me.’ People would look down upon me. I suﬀered in this manner.”

Shikha Begum was not only abused on the street but also in every sphere of home life, too. In her village she had to live a constrained life. Her life went on in this manner. She not only had to listen to abuse outside. She even had to hear things from her nearest, from her child:

“My eldest son told me one day, “Don’t go out of the house. If you do, I won’t go to school”. “Why?” I asked. He responded: “they say your mother does ‘what not’ when she goes out. Do you know what she does? Beat me if you want. I still won’t go to school. People talk bad.”“What bad things do they say?” I asked, “That your mother works?” Then I had to take my eldest son with me. “You must work yourself to understand what it is I do” I told him. I made him work. Then he cooled down.”

In all this hardship one person stood by her. That was Shikha Begum’s husband:

“My husband was a very good man. He would eat very little. If he saw I hadn’t eaten, he would give his rice to me. He would say, ‘I have eaten, you eat.’ My husband would cook at home. He would help with the house hold chores. He couldn’t work outside, so he would bathe the children, cook. He would open the rice pot and place it in front of me. He was very nice. People would come and gossip. My husband would say, ‘You don’t have to see anything. This is my wife. I know her.’ My husband trusted me. He was aged. So everyone called me ‘old man’s wife’. I felt bad then.”

Shikha Begum’s life went on against all these obstacles within and outside the home. Then disaster struck in 2006. Her lifelong partner, her husband, passed away. Her companion of all times was gone. After her husband’s death she was able to collect 60,000 Taka from her father’s house. With this money she sent her son to Dubai. The bulk of the money was spent at the ‘embassy’. Her older son used to work since he passed SSC. He worked as day laborer in diﬀerent homes. This same son had once questioned her work, and then understood his mother’s woes, once he had seen her work. Today he went to Dubai with the money from his mother’s ancestral home. He had a strong resolution to reward his mother for her hard work. The older son did very well soon. He got a job in Dubai paying 40,000 Taka.

“My husband gave me a piece of land. He gave me 6 decimals. I sold it and got 60,000 Taka. When they were recruiting people to go to Dubai, my son and I went. So when the foreign recruiters came he had already ﬁnished his bachelors. They talked to my son in English. My son spoke English very well. He left the country. He spent 60,000 Taka for it and got a job paying 40,000 Taka. Since then he has been earning. My life changed from there. My son used to send money home. I used my son’s money to open the poultry.” In explaining the poultry business she said:

“One chicken lays eggs for 22 months. It starts laying eggs after raising it for 3 to 4 months. The hens have to be booked for cash 6 months ahead. 50,000 Taka has to be paid a month before for 500 hens at 100 Taka per head. There is a promise to deliver by such and such date. The chicks arrive in Khulna. They have to be collected from the dealer in Khulna. Often they give spurious chicks. The dealers get chicks which are 1 hour old. They have to be fed for 4 months after getting them from the dealer. The cost of feeding one chicken for 4 months is 1,000 Taka. That chicken lays eggs for 22 months. Later the chicken itself is sold. The chicken meat will fetch 100,000 Taka. And the eggs will fetch 850,000 Taka in 22 months. The chicken goes to the meat market. Even the broken eggs can be bartered with neighbors for chilly and onions.”

On how she came to learn poultry farming, Shikha said:

“I was trained in diﬀerent places; at Horticulture, Khulna Youth Training Institute, Digholia Livestock Department and others. I do a training or two every month.” She had ample knowledge of the various aspects of business. This training has helped her to grasp the business. But she has to face diﬃculties during training. She complained:

“The trainers wouldn’t pay me much attention because I am a woman. They gave more time to the men. They gave time to others, but not to me.”

But it is apparent from what she says that Shikha Haﬁz is not a person to back oﬀ:

“I took training even if I was not invited. I said, ‘I don’t want the money – just let me attend the training.’ At ﬁrst they were reluctant to take me. I used to attend by force. I used to address the peons as ‘uncles’ and get my name in. They would say, ‘Shikha Apa, you want to train? Okay we’ll include your name.’ One must have knowledge to do business.”

It can be deduced from Shikha Begum’s words that there is division between men and women in receiving training. But she was able to manage it and she has been able to apply it everywhere. Shikha Begum faced a lot of problems doing poultry business. She ﬁrst mentioned spurious chicken. While coming from Phoenix some low quality chicken are mixed in to the consignment. According to her:

“For a while I bought chicken from Phoenix. They mixed inferior breed of chicken in it. Those chickens lay fewer eggs.”

A major problem is disease and death. Some time ago Shikha Begum’s chicken were aﬀected through food poisoning. All the chickens died. The loss was 400,000 Taka. She blamed the loss due to this on the local vet:

“The main problem of poultry is disease. The gambura disease [Infectious Bursal Disease]. There is no prevalence of ranikhet [Newcastle Disease] here. The problem I faced most is vets. When the chickens are not well, I do what I can. But the main problem here is veterinary services. The vets are not good here; they neglect the livestock. And you have to pay them for their visits in advance. Otherwise they don’t come. And even if they come – they neglect. “My chickens died due to the neglect of the Digholia vet. My dealer fed the chickens feed that had expired. It created problems. In the end they all died. I call the vet when the chickens are sick. If the vet doesn’t show up, I take the chickens to him. The vet gave some medicine which didn’t work. My chickens were suﬀering from food poisoning and he gave an ordinary medicine. Because of him 250 of my chickens died. They were all egg laying chicken. If the vet gave proper service then I would have been able to do more.”

There are social problems even if the vet visits.

“The other day the vet came to visit. Others said, ‘Of course the vet will go to her place! She is good looking and without a husband. The vet will deﬁnitely go to her place!”

While doing dairy farming she also bought a gher.

“My son had 400,000 Taka. With that I bought a gher of 2.5 bigha. I cultivated white fish. I bought it in 2008. To buy and process the gher cost 700,000 Taka. I bought fish worth 100,000 Taka – most of it was shrimp. White fish was less.”

After suﬀering loss in poultry, Shikha Haﬁz looked towards dairy farming:

“After suffering a loss in poultry I took to dairy farming. A suffering cow can be slaughtered. And cows don’t get sick that often. From now on I’ll deal in cows. I won’t do poultry anymore. Earlier I used to buy cows for others. I used to sell them during Eid-ul-Azha. I would get my capital back plus half the profit. I bought cows worth 36,000 Taka for someone. The capital and profit came to 70,000 Taka in four months. In this manner I earned up to 500,000 Taka. The cows’ feed comes from the rice I grow. I get hay, straw and broken rice grains from it. That feeds the cows. There is no need to buy separate feed. The cow gives dung. Each dung piece is sold for 1 Taka. 100 dung pieces bring a hundred Taka. That allows me to buy 3 or 4 kg of husk. So I get fuel, feed and manure. It gives manure for rice. I make compost form cow dung for the gher. I sell the compost fertilizer by bags. Each bag is 200 -250 Taka.”

But someone poured poison in her gher. Andrine (or ‘Endi’ in Bangla), a pesticide which is used on crops, is sometimes used to kill the ﬁsh in the ghers.

“They spread “Endi” in my gher. When my gher was doing well they killed my fish worth 800,000 Taka. My gher was situated at a distance. The thing there was that if one person’s gher does not do well then they pour “Endi” in other ghers. “Endi” finished my fish. They all died. Again I lost my capital.”

Even after such success in business Shikha Haﬁz mentions problems acquiring loans.

She talks about the problems of dairy farming:

“Please understand that I don’t get loans.” “One problem of dairy farming is that cows tend to gore you. There is a risk to body and limb. To raise cows you have to be a cow.”

Now she uses the gher only for paddy, hay and their byproducts.

“After that I didn’t do gher business again. I release a few ﬁsh in the gher. Whoever wants eats it. I eat it too. Now the gher has only paddy. I get 40 maunds of rice from the 2.5 bigha. There is no need to buy rice. I sell the rice and get cattle feed from it. I have 4 cows. If I invest in the water of the gher my investment will drain away like that water. If I invest the money in buying and selling cows, I proﬁt. I will expand this business.”

Now Shikha Begum is doing much better than before. She has become a Member of the area and built another house.

“Then I stood for election in 2011. I became a Member of Ward 1, 2 and 3. I won the Upazilla election. I built a house in Shonahati for 1,500,000 Taka.”

She has other dreams and wishes. She says:

“I have a wish. To make a poultry hatchery. I’ll produce chicks. If only I could avail a loan. Then I would do this. There is plenty of space. Another dream of mine is to buy a car and learn to drive. I’ll drive myself.”

Two people work under her.

“I used to work the farm myself. I kept two other girls. I used to pay them 1,000 Taka a month plus food. Now I pay them 3,000 to 4,000 Taka.”

A lot of women in Digholia Thana now want to get into business after seeing Shikha Haﬁz.

“A lot of women have followed me and started business. They got courage seeing me. In the meanwhile, a lot of farms have opened up in Daspur. I look after them.”

Today Shikha Haﬁz is a successful small-scale business person. She wants to go ahead despite poverty, social obstacles and the responsibility of children. She requested us to eat at her place. Shikha Begum requested us to show everybody the recordings and videos we had done. So that other women get inspired by her.

INCLUSIVE TRADE CORE TEAM

Eric Dales

Bokhtiar Ahmed

Kazi Maruful Islam

Nabeera Rahman

Manager, Inclusive Trade

University of Rajshahi

Associate Professor

Programme Assistant, Inclusive Trade

UNDP

University of Dhaka

UNDP

Shadlee Rahman Intern, Inclusive Trade UNDP

STUDENT RESEARCHERS AND PROJECT TEAM CLUSTER LEADERS

Kazi Ka Kaz zii Mysha Mysha Musarr M Musarrat usarrat usarra

Krishna Kum Ku Kumar mar ar Saha Saha aha

Md. Imran Hossain Bhuiyan

Development Studies

Public Administration

Development Studies

University of Dhaka

Anwar Hossen

Wasif Gaws Creative Director Grey Shack Limited

STUDENT RESEARCHERS

Anannya Islam Anthropology

Arifur Rahman Apu Anthropology

Arup Barua

Bishaka Tanchangya

Choity Chakma

MSS (Public Policy), Development Studies

Bachelor of Sustainable Development and Anthropology and Sociology Curtin University

Institute of Education and Research

University of Dhaka

Jahangirnagar University

University of Dhaka

Fairooz Binte HaďŹ z

Humayun Kabir

Public Administration

Development Studies

University of Dhaka

Isfaqul Kabir Sarker

Javed Hussan Public Administration Shahjalal University of Science and Technology

University of Dhaka

Jinat Rehena Development Studies University of Dhaka

Kaniz Fatema

Kazi Rabiul Islam

Population Sciences

Development Studies

University of Dhaka

Md. MostaďŹ zur Rahman

Md. Raju Ahmed Rasel Wasif Gaws Creative Director Grey Shack Limited

Md. Abdul Tanviur Aziz

Ahmed Toslim

Economics

Development Studies

Md. Masikur Rahman Forestry and Environmental Sciences

University of Dhaka

Chittagong University

Md. Sifat Rahman

Md. Tawhidul Islam

Md. Zahidur Rahman

Development Studies

Economics

Development Studies

University of Dhaka

Nazneen Sultana

Nurul Amin Farhad

Partha Protim Mazumder

Priyanka Tanchangya

Radia Awal Trisha

Development Studies

Anthropology

Bachelor of Sustainable Development and Anthropology and Sociology

Department of Anthropology

University of Dhaka

Jahangirnagar University

Curtin University

Rajshahi University

Tithi Dev

Shamim Ara Shammi

Shashish Shami Kamal

SM. Anik Islam

Sumaita Fatema

Anthropology

Development Studies

Anthropology

Development Studies

Rajshahi University

University of Dhaka

Rajshahi University

University of Dhaka

STORIES FROM THE MARKET INCLUSIVE TRADE FROM THE BOTTOM-UP

Photograph, Concept, Design by

STORIES FROM THE MARKET INCLUSIVE TRADE FROM THE BOTTOM-UP

Eric Dales Project Manager UNDP IDB Bhaban, 18th Floor, UN Offices, E/8-A, Begum Rokeya Sarani, Dhaka 1207 Phone:02-8150088 eric@undp.com www.undpbangladesh.com