Inequality sharply increases in Bangladesh with the upper 5.0 per cent of the population amassing 30.4-percent wealth, thus widening social and regional disparities despite substantial poverty reduction by official count.
A latest government survey report shows overall poverty rate cut to 18.7 per cent in 2022 from 24.3 per cent in 2016. And the hardcore poor in the country dwindled to 5.6 per cent.
According to the Household Income and Expenditure Survey (HIES) 2022 final report published Wednesday by Bangladesh Bureau of Statistics (BBS), the poverty reduction under a national recipe has been disparate by regions.
Poverty rate in Barishal increased a lot, notwithstanding a significant decline in overall hunger rate nationwide. In Rangpur-a region which used to reel from lean-season want locally known as 'monga'-poverty rate dropped significantly.
The survey reveals yawning income gaps between lower and upper strata of society. Gini coefficient or Gini index is the gauge of measuring national wealth distribution. Gini coefficient is the scale from 0 to 1 where "0" indicates no inequality and "1" stands for the highest degree of inequality.
In Bangladesh the Gini coefficient widened to 0.499 in 2022 from 0.482 in the previous survey period in 2016 and 0.458 in 2010.
The HIES 2022 has unveiled that 21.11 per cent of the population feel food insecurity in the country. The BBS for the first time surveyed the food insecurity based on the perception of the population.
According to the HIES 2022, the poverty rate in Barishal increased to 26.9 per cent as of 2022, placing the division as the highest hunger-prone area, from of 26.5 per cent in 2016.
On the other hand, the poverty had fallen significantly to 24.8 per cent in Rangpur in 2022 from a peak of 47.2 per cent in 2016.
The overall poverty (based on the upper line) dropped to 18.7 per cent in 2022 from 24.3 per cent in 2016.
Attending the report-launching function as special guest, economist and BRAC Chairman Dr Hossain Zillur Rahman said the growing income inequality and sudden increase in the poverty rate in Barishal are a matter of concern to Bangladesh.
"Actually, we need to go for further research as to whether the social-safety net and other facilities in Barishal are not going from centre properly."
About the higher Gini coefficient, Dr Rahman said salary and wages of people had declined by 10 per cent in 2022 compared to the last HIES survey, which may have a correlation to the growing income inequality.
"The bottom 50-percent households (HH) hold 18 per cent of the country's total income while the top 5.0 per cent HHs attain 30.4 per cent of the total income in a clear indication of the disparity in Bangladesh," he added.
According to the HIES 2012, the income inequality in the urban areas had been rising faster than in the rural areas.
The national statistical body's data showed the Gini coefficient in urban areas as 0.539 in 2022 in a rise from 0.498 in 2016.
The rate of increase in Gini was comparatively lower in the rural areas as the HIES 2022 recorded the data at 0.446 against 0.454 in HIES 2016.
Meanwhile, the BBS survey finds Bangladesh's extreme poverty having also declined to 5.6 per cent of the total population in 2022 from 12.9 per cent in 2016 and 17.6 per cent in 2010.
The HIES 2022 Project Director, Mohiuddian Ahmed, presented the key points in the report on the survey, conducted across the country on 14,400 household samples for gathering data.
Mymensingh Division stands 3rd in terms of higher poverty incidence as its hunger rate was recorded 24.2 per cent, followed by Dhaka 17.9 per cent, Sylhet 17.4 per cent, Rajshahi 16.7 per cent, Chittagong 15.8 per cent, and Khulna 14.8 per cent.
The HIES 2022 shows that literacy rate (among 7-year-old and above population) increased to 74.0 per cent in 2022 from 65.6 per cent in 2016 and 57.91 per cent in 2010.
The monthly income per household is also reported to have increased to Tk 32,422 in 2022 from 15,945 in 2016 and Tk 11,479 in 2010.
Meanwhile, expenditure had doubled to Tk 31,500 per household in 2022 from Tk 15,715 in 2016 and Tk 11,200 in 2010, the survey showed.
According to the HIES 2022, financial inclusion of the HHs in the country increased to 14.12 per cent from 7.50 per cent in 2016.
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