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POVERTY AND ALLIVIATION IN
BANGLADESH
Md. Inzamul Haque Sazal
sazalgeo@outlook.com
POVERTY IN BANGLADESH
• Poverty has been assigned as the number one
problem for development of Bangladesh.
• Though the country is making significant progress in
the socio-economic field, poverty reduction is rather
slow. This is mainly because of its high population size
of 130 million (population census-2001) in an area of
1,41,000 sq. km. with a population density 840 per sq.
km.
• Every year, about 2 million population are adding to
its population size. Country’s resources are struggling
to support such increasing population.
Poverty Trends in Bangladesh
• Bangladesh is one of the global hub of poverty.
• These could be shown through three dimensions
of poverty trends:
–Trends in income poverty
–Trends in human poverty
–Trends in inequality.
Income Poverty in Bangladesh
• About 31.5% people live below the poverty line
in 2010 and 19.5% is the hard core poor.
• The head count poverty percentage declined
from 58.8% in 1992 to 48.9% in 2000, further to 40%
in 2005.
• The total number of people living below the
poverty line (2122 kilo calorie a day) however,
increased from 51.6 million in 1992 to 55.8 million
in 2000 and then to 56.0 million in 2005.
• However, hardcore poverty (1805 kilo calorie
a day) declined both in percentage terms and
in absolute number. It has decreased from 28%
(30.4 million) in 1992 to 19.5% (27.0 million) in 2005.
Year Source Total Population Poverty % Total Poor
2005 Population estimation
based on Poverty % 138,613,900
40.4
56,000,000
2011 Population estimation
by 1.36 growth 150,286,750
31.5
47,340,326
2011 Population census,
2011 and HIES 142,319,000
31.5
44,830,485
2011 People perception and
HIES of Poverty 160,000,000
31.5
50,400,000
2011 People perception
160,000,000
36
57,600,000
Trends in Human Poverty[Recent scenario]
Inequality Trends in Bangladesh
• Gini-coefficient in Bangladesh increased
from 0.451 in 2000 to 0.467 in 2005 thus
showing increase in inequality.
• The top 5% of the population enjoys
26.93% of the GNI (Gross National
Income, or GNI) while the bottom 5%
have only 0.77% of the national income.
• Inequality is higher in urban areas than
that of the rural areas.
Consequences of Poverty and Inequality
• Tendencies for violence and crime
increases with poverty.
• Lower socio economic status has been
linked to chronic stress, heart disease,
ulcers, type 2 diabetics, rheummatoid
arthritis, certain types of cancer and
premature aging.
• Mortality is strongly associated with higher
income inequality.
NOW THE QUESTION RISES
THAT HOW CAN WE COPE UP
WITH THIS BIG PROBLEM,
WHAT INITIATIVES
GOVERNMENT AND OTHER
ORGANIZATION SHOULD TAKE
TO ALLIVIATE POVERTY IN
BANGLADESH AND LAST OF ALL
WHAT WE NEED TO DO IN THIS
ALARMING SITUATION?
GOB Initiatives
• It is a constitutional obligation of the Government to
provide a reasonable living standard for the citizens by
alleviating poverty.
• Moreover, Government of Bangladesh as a signatory
of MDGs aims at halving poverty and hunger.
• GOB also adopted PRSP as an strategies for reduction
of poverty.
GOB Poverty Reduction Strategies:
NSAPR II
 The revised PRSP II (2009-2011) identified following
Strategic Blacks for poverty reduction:
 Macro economic environment for pro-poor
economic growth.
 Critical Areas for Pro-Poor Economic Growth
 Essential Infrastructure for Pro-Poor Economic
Growth
 Social Protection for the Vulnerable
 Human Resources Development
NSAPR II: Five Supporting strategies
1. Ensuring participation, social inclusion and
empowerment– women. Children, indigenous
communities, persons with disabilities, extreme
poor;
2. Promoting good governance.
3. Ensuring efficient delivery of utility services
4. Caring for environment and tackling climate
change for sustainable development;
5. Enhancing productivity and efficiency through
science and technology.
Programme 2009-2010 2010-2011
Various allowances
including cash
allowance
5,539 6056.71
Social
Empowerment
programme
161.00 55.52
Food security
programme
4932.48 7193.27
Micro credit 395.00 340.02
Other fund 3,096.34 3309.13
Total 20476.48
As % of total
budget
15.49
GOB’s Programmes
SSNP Budget in 2010-2011 (in Cr. Tk)
•Government total budget
(direct & indirect) for poverty
reduction in 2010-2011 was
Tk. 76,001 crore which is
57.50% of the total national
budget.
•GOB operates about 88 social
safety net programmes.
•Total SSNP budget is
20,476.48 crore which is
about 15.49% of national
budget and 2.54% of GDP.
GOB’s Main Programes
• VGF, VGD, test relief
• Old age benefit.
• Employment generation for the hard core poor
• National service.
• Asrayan for the homeless and river erosion affected people.
• One house one farm
• Gore Fera.
• Asrayan
• Food for work
• Allowances for the insolvent freedom fighters.
• Allowances for the widow and destitute divorcees
• Allowances for the lactate mother.
• Huge funds are available.
• Interest rate is low.
• Use existing administrative
facilities.
• Easily extend the coverage.
• If the political leaders really
wants it can bring better
achievements.
• During flood, cyclone and
natural calamities government
can utilize its whole
administration.
• Highly influenced by politics
• Extremely bureaucratic
• Weak network/linkages with
the poor.
• Corruption level is high.
• Miss the target group and
often provide benefits to the
vested interest group.
• Changes priority and
program with the changes of
government.
• No exit and ladder program.
Disadvantages of the GOB
Programs
Advantage of Government
Programs
Roles of NGOs
1. In the field of education
2. In the field of sanitation
3. In the field of
development project
4. In the field of population
control
5. In the field of removing
superstition
6. In the field of political
instability
Youthdevelopment
1. Skill development programs for youth;
2. Self-employment for the unemployed
youth;
3. Youth leadership and human relations
development;
4. Involvement of youth organizations in
community development activities;
5. Participation of youth in population control
and welfare activities;
6. Participation of youth in national social
service programs;
7. Supply of equipment to trained youth for
self-employment etc.
AgriculturalDevelopment
1. Production and productivity of agricultural
sector through crop diversification including
livestock, fisheries and poultry;
2. Farmer’s access to better technology;
3. Crop yields by shifting from local varieties
to High Yielding Varieties and hybrid
varieties;
4. Coverage of the irrigation network for
greater application of HYV in rice and
wheat;
5. Small and marginal farmer’s development
for higher productive intensity
Socialservice
1. Shelter, education and food to the
helpless orphans;
2. health services to helpless elderly
poor;
3. training and rehabilitation for the
distressed, vagrants and homeless;
4. training and rehabilitation for
handicapped and distressed poor
women;
5. Skill training to rehabilitate orphans,
the disable and the elderly people;
6. Credit to the poor asset less,
unemployed and the landless families
etc.
Women
Development 1. Skill development;
2. development of women
entrepreneurship;
3. credit payment among women;
4. strengthening of policy leadership;
5. poverty alleviation for women;
6. development of asset less women;
7. advocacy for gender equity etc.
Role of NGOs in Poverty Alleviation
Role of Microcredit to Alleviate Poverty
Conceptual framework of poverty alleviation through microcredit
Independent Variable:
Microcredit
Dependent Variable:
Poverty Alleviation
Small Size of Loan, which is found
to be an amount of Tk. 1000 to
10,000 distributed with the
condition of weekly repayment at
cheaper interest rate
1. To ensure better economic
condition;
2. To ensure opportunity for the
involvement with income
generating activities;
3. To ensure more income through
income generating activities.
• NGOs has strong network at the grass root level and can easily
reach to the poor.
• Local poor people feel comfortable to communicate with
NGOs.
• NGOs can deliver the micro credit to the real poor.
• NGOs can easily monitor the progress of the poor.
• No collateral is required for micro credit.
• NGOs has great contribution to women empowerment.
Advantages of the NGOs Programs in Poverty
Alleviation

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Poverty and alliviation in Bangladesh

  • 1. POVERTY AND ALLIVIATION IN BANGLADESH Md. Inzamul Haque Sazal sazalgeo@outlook.com
  • 2. POVERTY IN BANGLADESH • Poverty has been assigned as the number one problem for development of Bangladesh. • Though the country is making significant progress in the socio-economic field, poverty reduction is rather slow. This is mainly because of its high population size of 130 million (population census-2001) in an area of 1,41,000 sq. km. with a population density 840 per sq. km. • Every year, about 2 million population are adding to its population size. Country’s resources are struggling to support such increasing population.
  • 3.
  • 4. Poverty Trends in Bangladesh • Bangladesh is one of the global hub of poverty. • These could be shown through three dimensions of poverty trends: –Trends in income poverty –Trends in human poverty –Trends in inequality.
  • 5. Income Poverty in Bangladesh • About 31.5% people live below the poverty line in 2010 and 19.5% is the hard core poor. • The head count poverty percentage declined from 58.8% in 1992 to 48.9% in 2000, further to 40% in 2005. • The total number of people living below the poverty line (2122 kilo calorie a day) however, increased from 51.6 million in 1992 to 55.8 million in 2000 and then to 56.0 million in 2005. • However, hardcore poverty (1805 kilo calorie a day) declined both in percentage terms and in absolute number. It has decreased from 28% (30.4 million) in 1992 to 19.5% (27.0 million) in 2005.
  • 6. Year Source Total Population Poverty % Total Poor 2005 Population estimation based on Poverty % 138,613,900 40.4 56,000,000 2011 Population estimation by 1.36 growth 150,286,750 31.5 47,340,326 2011 Population census, 2011 and HIES 142,319,000 31.5 44,830,485 2011 People perception and HIES of Poverty 160,000,000 31.5 50,400,000 2011 People perception 160,000,000 36 57,600,000 Trends in Human Poverty[Recent scenario]
  • 7.
  • 8. Inequality Trends in Bangladesh • Gini-coefficient in Bangladesh increased from 0.451 in 2000 to 0.467 in 2005 thus showing increase in inequality. • The top 5% of the population enjoys 26.93% of the GNI (Gross National Income, or GNI) while the bottom 5% have only 0.77% of the national income. • Inequality is higher in urban areas than that of the rural areas.
  • 9. Consequences of Poverty and Inequality • Tendencies for violence and crime increases with poverty. • Lower socio economic status has been linked to chronic stress, heart disease, ulcers, type 2 diabetics, rheummatoid arthritis, certain types of cancer and premature aging. • Mortality is strongly associated with higher income inequality.
  • 10.
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  • 14. NOW THE QUESTION RISES THAT HOW CAN WE COPE UP WITH THIS BIG PROBLEM, WHAT INITIATIVES GOVERNMENT AND OTHER ORGANIZATION SHOULD TAKE TO ALLIVIATE POVERTY IN BANGLADESH AND LAST OF ALL WHAT WE NEED TO DO IN THIS ALARMING SITUATION?
  • 15. GOB Initiatives • It is a constitutional obligation of the Government to provide a reasonable living standard for the citizens by alleviating poverty. • Moreover, Government of Bangladesh as a signatory of MDGs aims at halving poverty and hunger. • GOB also adopted PRSP as an strategies for reduction of poverty.
  • 16. GOB Poverty Reduction Strategies: NSAPR II  The revised PRSP II (2009-2011) identified following Strategic Blacks for poverty reduction:  Macro economic environment for pro-poor economic growth.  Critical Areas for Pro-Poor Economic Growth  Essential Infrastructure for Pro-Poor Economic Growth  Social Protection for the Vulnerable  Human Resources Development
  • 17. NSAPR II: Five Supporting strategies 1. Ensuring participation, social inclusion and empowerment– women. Children, indigenous communities, persons with disabilities, extreme poor; 2. Promoting good governance. 3. Ensuring efficient delivery of utility services 4. Caring for environment and tackling climate change for sustainable development; 5. Enhancing productivity and efficiency through science and technology.
  • 18. Programme 2009-2010 2010-2011 Various allowances including cash allowance 5,539 6056.71 Social Empowerment programme 161.00 55.52 Food security programme 4932.48 7193.27 Micro credit 395.00 340.02 Other fund 3,096.34 3309.13 Total 20476.48 As % of total budget 15.49 GOB’s Programmes SSNP Budget in 2010-2011 (in Cr. Tk) •Government total budget (direct & indirect) for poverty reduction in 2010-2011 was Tk. 76,001 crore which is 57.50% of the total national budget. •GOB operates about 88 social safety net programmes. •Total SSNP budget is 20,476.48 crore which is about 15.49% of national budget and 2.54% of GDP.
  • 19. GOB’s Main Programes • VGF, VGD, test relief • Old age benefit. • Employment generation for the hard core poor • National service. • Asrayan for the homeless and river erosion affected people. • One house one farm • Gore Fera. • Asrayan • Food for work • Allowances for the insolvent freedom fighters. • Allowances for the widow and destitute divorcees • Allowances for the lactate mother.
  • 20. • Huge funds are available. • Interest rate is low. • Use existing administrative facilities. • Easily extend the coverage. • If the political leaders really wants it can bring better achievements. • During flood, cyclone and natural calamities government can utilize its whole administration. • Highly influenced by politics • Extremely bureaucratic • Weak network/linkages with the poor. • Corruption level is high. • Miss the target group and often provide benefits to the vested interest group. • Changes priority and program with the changes of government. • No exit and ladder program. Disadvantages of the GOB Programs Advantage of Government Programs
  • 21. Roles of NGOs 1. In the field of education 2. In the field of sanitation 3. In the field of development project 4. In the field of population control 5. In the field of removing superstition 6. In the field of political instability
  • 22. Youthdevelopment 1. Skill development programs for youth; 2. Self-employment for the unemployed youth; 3. Youth leadership and human relations development; 4. Involvement of youth organizations in community development activities; 5. Participation of youth in population control and welfare activities; 6. Participation of youth in national social service programs; 7. Supply of equipment to trained youth for self-employment etc. AgriculturalDevelopment 1. Production and productivity of agricultural sector through crop diversification including livestock, fisheries and poultry; 2. Farmer’s access to better technology; 3. Crop yields by shifting from local varieties to High Yielding Varieties and hybrid varieties; 4. Coverage of the irrigation network for greater application of HYV in rice and wheat; 5. Small and marginal farmer’s development for higher productive intensity Socialservice 1. Shelter, education and food to the helpless orphans; 2. health services to helpless elderly poor; 3. training and rehabilitation for the distressed, vagrants and homeless; 4. training and rehabilitation for handicapped and distressed poor women; 5. Skill training to rehabilitate orphans, the disable and the elderly people; 6. Credit to the poor asset less, unemployed and the landless families etc. Women Development 1. Skill development; 2. development of women entrepreneurship; 3. credit payment among women; 4. strengthening of policy leadership; 5. poverty alleviation for women; 6. development of asset less women; 7. advocacy for gender equity etc. Role of NGOs in Poverty Alleviation
  • 23. Role of Microcredit to Alleviate Poverty Conceptual framework of poverty alleviation through microcredit Independent Variable: Microcredit Dependent Variable: Poverty Alleviation Small Size of Loan, which is found to be an amount of Tk. 1000 to 10,000 distributed with the condition of weekly repayment at cheaper interest rate 1. To ensure better economic condition; 2. To ensure opportunity for the involvement with income generating activities; 3. To ensure more income through income generating activities.
  • 24. • NGOs has strong network at the grass root level and can easily reach to the poor. • Local poor people feel comfortable to communicate with NGOs. • NGOs can deliver the micro credit to the real poor. • NGOs can easily monitor the progress of the poor. • No collateral is required for micro credit. • NGOs has great contribution to women empowerment. Advantages of the NGOs Programs in Poverty Alleviation