DHAKA, Nov 7, 2021 (BSS) - LGRD Minister Md Tajul Islam today said that 
the stimulus packages, rolled out for offsetting the shock of Covid-19, aim 
to cover each class of people inculcating the advantages both in urban and 
rural lives. 

   "Bangladesh's long-established history is rooted in the goal to achieve 
betterment of the poor. In line with that goal, the stimulus packages aim to 
cover each class of people inculcating the advantages both in urban and rural 
lives," he said.

   Tajul was addressing a policy workshop titled "COVID-induced Stimulus 
Packages for SMEs & Women-led Enterprises: Exploring Research-Policy 
Interlinkages" organised by CPD in partnership with The Asia Foundation (the 
Foundation) - Bangladesh under the Women's Economic Empowerment through 
Strengthening Market Systems (WEESMS) programme funded by the Embassy of 
Sweden and implemented through a partnership with iDE and the Foundation. 

   The policy workshop underscored the importance to examine the linkage 
between public policies and research during the pandemic and to define how 
the challenges of the marginalised businesses have been addressed, said a 
press release here.

  Tajul also stated that the recommendations placed on the table today would 
definitely be taken into necessary cognizance.

   Alexandra BergVon Linde, Ambassador of Embassy of Sweden, was present as 
the guest of honour. 

   She said the overarching objectives of the project include the increase of 
female participation in the labour force and overcoming policy-related 
challenges in light of COVID's impacts on the marginalised group.

   Kazi Nabil Ahmed, parliamentary standing committee member on Ministry of 
Foreign Affairs, spoke at the workshop as special guest. Emphasizing and 
recognising the fact that women in Bangladesh do face a number of impediments 
on their way towards progress and empowerment, he opined that a lot of 
measures have taken so far even though many more things are yet to be done.

   "Women-led enterprises are facing various difficulties including problems 
related to loans borrowing from banks," he said ensuring that more effective 
policy actions will be made in view of this emerging situation.

   The keynote presentation at the workshop was made by Dr Khondaker Golam 
Moazzem, research director of CPD. The study has been carried out based on 
the primary and secondary data and the key informant interviews (KIIs) have 
been carried out in following categories of respondents: (a) Government 
officials (b) Bank officials and (c) Beneficiaries (SMEs and women-led 
enterprises). 

   The study pointed out that, during the pandemic, a total of 27 stimulus 
packages have been announced with a combined fiscal and financial support of 
Taka 1.29 trillion. However, the support for the small and medium enterprises 
(SMEs) and women entrepreneurs are insignificant. 

   Shedding light on the research-policy linkage aspect, a study revealed at 
the workshop showed that the relevant policy-making was influenced by the 
urgent need of assistance of businesses raised by business associations and 
pressure from large borrowers. 

   There has been lack of sufficient guidance from the policymakers in case 
of selecting borrowers. Moreover, stringent regulatory challenges, lack of 
coordination between the government agencies, misinformation from the supply-
side actors and lack of awareness among the demand-side actors, lack in 
market support and linkages-these have adverse effect on borrowing by SMEs. 

  In addition, the cottage, micro, small and medium enterprises (CMSMEs) do 
not have sufficient access to the financial support related packages. The 
study also pointed out the existing culture of the rural-urban difference as 
well as gender-based discrimination in disbursing the stimulus loan. Loan 
distribution based on "banker-client relationship" has been benefitting 
existing borrowers and leaving new borrowers behind.

  Kazi Faisal Bin Seraj, country representative of the Asia Foundation-
Bangladesh, delivered the introductory remarks. Dr Fahmida Khatun, executive 
director of the CPD, moderated the workshop. 

   Deputy General Manager (Department of Financial Institutions and Market) 
of Bangladesh Bank Liza Fahmida, General Manager of Women entrepreneurship, 
technology, capacity and cluster development wing in SME Foundation Farzana 
Khan, Joint Secretary of e-Commerce Association of Bangladesh (e-CAB) Nasima 
Akter Nisha, Professor and former Chair of Department of Development Studies 
of Dhaka University (DU) Dr M Abu Eusuf, Prof of Department of Economics of 
DU Dr Sayema H Bidisha spoke at the workshop as discussants.

   The vote of thanks was delivered by Saroja Thapa, associate director- 
Programs of iDE Bangladesh. She said SMEs and CMSMEs are two of the hardest-
hit sectors due to the pandemic. And as a way out, policy-making must be 
inclusive, broad-based and driven by data and evidences, she added.

  The event was followed by an open-floor discussion. High-level 
policymakers, political leaders, researchers, development practitioners, 
academics, business leaders, civil society representatives, international 
development partners and journalists attended the workshop.