Basic needs, rural financial markets, and appropriate technology : toward a solution of analytical and policy issues

The failure of the standard Growth Approach to economic development to solve the problems of underdevelopment in LDCs has caused an alternative approach, Basic Needs Approach (BNA), to attain prominence in development thought. BNA emphasizes povertyminimizing growth. Its strategy of direct attack on poverty has better potential for LDCs' development and fulfillment of their populations' basic needs than the trickle down mechanism of the Growth Approach.

BNA requires, among other things, (a) suitable rural financial markets (RFMs) as parts of the overall financial system, and (b) indigenous technological capabilities. The financial system, if it functions as a central element in an institutionalized technology policy, can link technology-related institutions that generate, evaluate, and promote appropriate technologies (ATs) with RFMs that can support adoption and diffusion of ATs in the agro-rural sector.

The above argument uses Bangladesh as a case for illustration. In the light of an institutional framework presented, examined, and extended in this dissertation, it is found that Bangladesh currently does not have an institutionalized technology policy. The current organizational framework and policies related to technological development are not conducive to BNA.