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    Poverty in Bangladesh

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    RaianNahid
    This document discusses poverty reduction in Bangladesh and goals to reduce poverty by 2005. It notes that Bangladesh agreed to meet poverty targets by 2005, including reducing the poverty rate by 25%, but achieving the income poverty goals will be difficult. It recommends increasing the long-run growth rate through entrepreneurship, infrastructure development, and institutional reforms like computerizing land records. The document also reviews partnerships between the government and organizations to achieve poverty reduction goals and analyzes requirements and scopes for increasing the growth rate in sectors like agriculture, industry, foreign direct investment, and services.

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    Poverty in Bangladesh

    Uploaded by

    RaianNahid
    185 views15 pages
    This document discusses poverty reduction in Bangladesh and goals to reduce poverty by 2005. It notes that Bangladesh agreed to meet poverty targets by 2005, including reducing the poverty rate by 25%, but achieving the income poverty goals will be difficult. It recommends increasing the long-run growth rate through entrepreneurship, infrastructure development, and institutional reforms like computerizing land records. The document also reviews partnerships between the government and organizations to achieve poverty reduction goals and analyzes requirements and scopes for increasing the growth rate in sectors like agriculture, industry, foreign direct investment, and services.

    Original Description:

    this presentation describes the economic condition of bangladesh

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    This document discusses poverty reduction in Bangladesh and goals to reduce poverty by 2005. It notes that Bangladesh agreed to meet poverty targets by 2005, including reducing the poverty rate by 25%, but achieving the income poverty goals will be difficult. It recommends increasing the long-run growth rate through entrepreneurship, infrastructure development, and institutional reforms like computerizing land records. The document also reviews partnerships between the government and organizations to achieve poverty reduction goals and analyzes requirements and scopes for increasing the growth rate in sectors like agriculture, industry, foreign direct investment, and services.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    185 views15 pages

    Poverty in Bangladesh

    Uploaded by

    RaianNahid
    This document discusses poverty reduction in Bangladesh and goals to reduce poverty by 2005. It notes that Bangladesh agreed to meet poverty targets by 2005, including reducing the poverty rate by 25%, but achieving the income poverty goals will be difficult. It recommends increasing the long-run growth rate through entrepreneurship, infrastructure development, and institutional reforms like computerizing land records. The document also reviews partnerships between the government and organizations to achieve poverty reduction goals and analyzes requirements and scopes for increasing the growth rate in sectors like agriculture, industry, foreign direct investment, and services.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    Poverty in Bangladesh

    Nature
    Dimension
    Poverty Alleviation interventions
    Role of GOB and NGOs

    Introduction
    Bangladesh agreed to meet certain poverty targets by
    2005:
    Economic
    Social aspects
    Social goals are on their way to being met
    BUT chances of reaching the INCOME poverty targets
    are slim
    What to do?
    The long run growth rate must be raised
    Entrepreneurship and Infrastructure
    Simple but far-reaching Institutional changes
    Example: computerizing land records
    POVERTY REDUCTION REQUIRES A RETURN TO

    Partnership Agreement on
    Poverty Reduction

    PA

    The GOB and the ADB set 7 goals to be


    achieved by 2005. These were listed in the
    Partnership Agreement as below
    1. Reduce by 25% the number of people below the
    poverty line
    2. A 50% reduction of the number of non-school going
    children aged 6-10
    3. Eliminate gender disparity in access to basic education
    4. 20% reduction in the proportion of malnourished
    children under 5
    5. Reduce maternal mortality by 35%
    6. Reduce infant and child mortality by 30%
    7. 50% reduction in the proportion of women of
    appropriate age not having access to reproductive
    health services

    Requirements
    10% growth in GDP is necessary to achieve
    the goals
    The poverty reduction rate required is 4.7%
    annually (it was 1.7% between 1996-1999)
    Population needs to be controlled
    The Total Fertility Rates (TFR) has to come
    down

    Scope for increase in the


    Growth Rate
    Agriculture unlikely to provide thrust
    Agri-processing requires more
    favourable exchange rates
    Industry has not shown dynamism yet
    Foreign Direct Investment (FDI) has not
    been enough forthcoming
    Services has mostly been a residual
    catchall due to low levels of skill and
    literacy

    Growth for Poverty Reduction


    Finding ways to increase the growth rate of per capita
    GDP : to REDUCE POVERTY
    2 facts: impact on income growth on poverty: poverty
    elasticity
    All poverty reduction elasticities : per capita growth rate
    and hence all of them depend upon population growth
    Slow rate of population growth : More poverty
    reduction ??
    We can also use higher poverty elasticities as an
    alternative to higher growth rates, or better yet, in
    conjunction with them
    GRWTH POVERTY REDUCTION differs from
    ORDINARY ECONOMIC GROWTH
    EXAMPLE : GAS EXPORT : much more discussed
    policy

    GAS EXPORT
    To provide
    1.The foreign exchange to pay for the contractual
    obligations to the International Oil Companies
    2.Resources for the development of downstream
    industries in the sector
    3.Cushion() for the balance of payments
    While these are all desirable in themselves, they
    do not bear directly on the reduction of poverty.
    Indeed, given the capital-intensity and high skills
    needed in this industry, the direct impact on
    poverty will be small in relation to the
    expenditure

    Entrepreneurship
    1. Domestic entrepreneurship needs a
    secure base from which to operate
    2. Domestic economic performance has
    to be sustained at a high level
    3. Requires a sustained thrust towards
    pro poor economic growth in the
    domestic economy
    4. Entrepreneurs need the rule of law and
    finances

    FDI and Entrepreneurship


    Industry has not shown any dynamism and FDI has
    not shown any prospects
    Secure base for domestic entrepreneurship :
    Domestic economic performance has to be sustained
    at a high level while
    Bases for international competitiveness develop.
    This requires a sustained thrust towards pro poor
    economic growth in the domestic economy
    Thus, GAS EXPORTS will not do the job because of
    the highly capitalized production technology and the
    absence of linkages.

    Poor Governance and Business


    Businesses have to spend time as well as money to complete
    any simple transaction.

    Table 1.1: The hidden Cost of Service


    Service

    Standard Waiting
    Time

    Informal Payment
    for Faster Service

    High Tension
    Electricity Connection

    6 months 1 year

    Taka 100,000-150,000

    Low Tension
    Electricity Connection

    Taka 10,000-15,000

    Gas

    3 months

    Taka 40,000

    Water

    3-4 months

    Taka 14,000-20,000

    Phone

    10-12 years

    Taka 50,000-70,000

    Trade License for A


    Garments Factory

    1 year

    Taka 5,000-8,000

    Source: Government That Works, Reforming the Public Sector, The

    Small and Medium Enterprises


    (SME)

    Critical role in bringing economic development


    and reducing poverty

    The role of Small and Medium Enterprise in


    generating pro poor economic growth will be
    clear from the fact that such enterprises are
    usually labor intensive, easy to enter and
    exit and have low capital requirements
    SME FOUNDATION : non-profit making organization
    7 booster sectors: agri, plastic and synthetic,
    electrical and electronic, fashion and design light
    engineering (LEI and LES)

    Infrastructures
    Pull the social framework
    Provide the new generations with
    facilities to continue growth

    Export-led Growth?
    1. Ready Made Garments(RMG)
    o
    o

    Largest manufacturing and export business in the country


    Employment for nearly 2 million people, 90% of which are
    women

    Drawbacks and Potential Hazards


    o
    o
    o
    o

    Financial Sector- Weak banking sector with little transparency or


    central bank control.
    Crony ()capitalism and moral hazard
    Overvaluation of the taka compared to the currency of its
    competitors
    Limited entry of Bangladeshi entrepreneurs into the higher end
    of the value chain

    Education
    Educational Facilities have expanded rapidly since
    the mid-1980s
    Between 1997 and 1999, the enrolment rate has
    increased by 4%
    GOB has let NGOs to set up many mainstream
    schools since 1980s

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