poverty and alliviation in bangladesh

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POVERTY AND ALLIVIATION IN BANGLADESH Md. Inzamul Haque Sazal [email protected] m

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Page 1: Poverty and alliviation in Bangladesh

POVERTY AND ALLIVIATION IN BANGLADESH

Md. Inzamul Haque [email protected]

Page 2: Poverty and alliviation in Bangladesh

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.

Page 3: Poverty and alliviation in Bangladesh
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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.

Page 5: Poverty and alliviation in Bangladesh

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.

Page 6: Poverty and alliviation in Bangladesh

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]

Page 7: Poverty and alliviation in Bangladesh
Page 8: Poverty and alliviation in Bangladesh

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.

Page 9: Poverty and alliviation in Bangladesh

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.

Page 10: Poverty and alliviation in Bangladesh
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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?

Page 15: Poverty and alliviation in Bangladesh

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.

Page 16: Poverty and alliviation in Bangladesh

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

Page 17: Poverty and alliviation in Bangladesh

NSAPR II: Five Supporting strategies1. 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 services4. Caring for environment and tackling climate

change for sustainable development;5. Enhancing productivity and efficiency through

science and technology.

Page 18: Poverty and alliviation in Bangladesh

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 ProgrammesSSNP 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.

Page 19: Poverty and alliviation in Bangladesh

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.

Page 20: Poverty and alliviation in Bangladesh

• 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

Page 21: Poverty and alliviation in Bangladesh

Roles of NGOs1. In the field of education2. In the field of sanitation3. In the field of development

project4. In the field of population

control5. In the field of removing

superstition6. In the field of political

instability

Page 22: Poverty and alliviation in Bangladesh

Youth development

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.

Agricultural Development

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

Social service

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

Page 23: Poverty and alliviation in Bangladesh

Role of Microcredit to Alleviate PovertyConceptual 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.

Page 24: Poverty and alliviation in Bangladesh

• 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