Better understanding the problems of poverty
Wednesday, 23 December 2009
Shireen Akhtar
Volumes of project proposals, pinpointing the problems of creating jobs or works for the poor and explaining the sure-shot solutions in lucid language, are available in Bangladesh. Its successive governments in the post-independence period have undertaken many projects for addressing this pivotal problem. Swallowing the bait, the donors, too, gave otherwise generous funds for implementation of those projects.
Traditional tools to poverty reduction have, however, bought about only peripheral changes in the situation. They are proving to be largely unsuccessful. In this context, one would like to note that occupational mobility matters very little these days as low-productive non-farm sector could hardly sustain livelihoods. A shift from agricultural labour to farming has not served the soup to the poor in the presence of low return from tenancy. This makes the case for successful strategies that encompass, among other things, geographic mobility, increase in education for earning members, and also in earning for members of households, access to electricity that has much effect on poverty reduction, etc.
The findings of the Household Income and Expenditure Survey, 2007 [HIES] by the Bangladesh Bureaue of Statistics (BBS), would, meanwhile, bear out a marked regional disparity in Bangladesh, with regard to the extent and scale of poverty. Thus, Dhaka, Chittagong and Sylhet cities there is less poverty than what is the case in Khulna, Barisal and Rajshahi. This situation calls for a critical look at policy options to remove this regional disparity. Dhaka and Chittagong. no main metro cities, are Bangladesh's main centres of economic activity. With a population of about 13 million, Dhaka accounts for the bulk majority of Bangladesh's urban population. The port city of Chittagong with a population of about five million, comes next. The average real per capita expenditures in these two cities is estimated to be about 40 per cent higher than in other urban areas.
Dhaka and Chittagong are the main domestic and international trading hubs, being also the dominant seats of major administrative and economic functions. Large numbers of migrants from other places of the country are attracted to these two metro cities. Spatial concentration in Dhaka and its surrounding areas has increased in recent years.
A similar trend is evident in Chittagong. In this situation, it is not difficult to understand as to why a substantial part of the economic activities in Bangladesh is clustered around these cities. The spatial distribution of employment by industries also bears out this concentration. The capital city of Dhaka alone accounts for 80 per cent of the country's readymade garments (RMGs) output and half of manufacturing sector employment. Agro-processing industry that employs a sizeable portion of the country's workforce is also concentrated in Dhaka and Chittagong through varying degrees. Complementary business services, particularly finance and real estate, have likewise predominantly expanded in two cities, relative to the rest of the country, providing a higher share of total income-earning jobs opportunities. Dhaka, of course, maintains an overwhelming lead here.
Remoteness from markets and towns and lack of infrastructure, like electricity and gas, are found to be important characteristics of the relatively more poor areas in Bangladesh. Such factors are strongly correlated to each other. Certain areas in Bangladesh have, thus, a combination of factors that have concentration of economic activities. This has given rise to the so-called growth poles. Poverty differs substantially between integrated region and less integrated region, the rate being lower in the integrated region than that of the less integrated region.
Improving connectivity of remote areas to growth poles and establishing interregional transport and communication systems are the ways through which balanced regional development for alleviating poverty can be achieved. For this, investment in infrastructure, bridging the information gaps to avert asymmetrical intelligence will be critical to remove the income gap between integrated region and less integrated one. I recent years, there has, in general, been a rise in the poverty level in Bangladesh. High prices of essentials and natural calamities have mainly caused this. Unemployment is an added factor here.
Tackling the poverty issues is a daunting challenge before Bangladesh. This challenge has to be met, not by mere words but by real deeds.
In a situation when poverty exists more in rural areas than in urban ones, issue of addressing the needs of the landless and marginal farmers assume a pivotal importance. Related to this is the question of land reform. The numbers of those who own no land or have been compelled to sell off land in the past few years have gone up. This situation gives a disconcerting signal. It holds the potential of great social disorder in the future. It needs to be handled sagaciously.
In this context, social security programmes should be carefully designed. All vulnerable groups in the country will have to be covered gradually under such programmes. Providing subsidies to the farmers is a crucial necessity. The figures for subsidies have otherwise been on the rise regular. But such subsidies must actually percolate down to the really poor and needy farmers. Hence, properly targeting subsidies remains a crucial issue. Locally influential and partisan people must not be denied of opportunities to lay their hands on what should be going to the poor. Ensuring adequate guarantees about this is essentially a basic governance issue. The campaign against poverty will not make any headway, if this issue is not resolved to the satisfaction of the poor.
Poverty alleviation or reduction will critically depend on grass-root participation in the drive to take the poor out of the misery cycle. Unless the people are involved, through local bodies and other means, in poverty reduction programmes, no sustainable economic development process can be ensured.
In this context, the political parties have a clear responsibility to carry out. They need to give out a clear sense of direction through concrete and specifics-based poverty reduction programmes. The nature and substance of politics will have to be changed for the better. This has to pave the way for the political parties to be able to figure out the realities on the ground; they will have to formulate effective responses to them. Unless the poor can find a way out of their despair, progress in all other areas will remain a misnomer.
Volumes of project proposals, pinpointing the problems of creating jobs or works for the poor and explaining the sure-shot solutions in lucid language, are available in Bangladesh. Its successive governments in the post-independence period have undertaken many projects for addressing this pivotal problem. Swallowing the bait, the donors, too, gave otherwise generous funds for implementation of those projects.
Traditional tools to poverty reduction have, however, bought about only peripheral changes in the situation. They are proving to be largely unsuccessful. In this context, one would like to note that occupational mobility matters very little these days as low-productive non-farm sector could hardly sustain livelihoods. A shift from agricultural labour to farming has not served the soup to the poor in the presence of low return from tenancy. This makes the case for successful strategies that encompass, among other things, geographic mobility, increase in education for earning members, and also in earning for members of households, access to electricity that has much effect on poverty reduction, etc.
The findings of the Household Income and Expenditure Survey, 2007 [HIES] by the Bangladesh Bureaue of Statistics (BBS), would, meanwhile, bear out a marked regional disparity in Bangladesh, with regard to the extent and scale of poverty. Thus, Dhaka, Chittagong and Sylhet cities there is less poverty than what is the case in Khulna, Barisal and Rajshahi. This situation calls for a critical look at policy options to remove this regional disparity. Dhaka and Chittagong. no main metro cities, are Bangladesh's main centres of economic activity. With a population of about 13 million, Dhaka accounts for the bulk majority of Bangladesh's urban population. The port city of Chittagong with a population of about five million, comes next. The average real per capita expenditures in these two cities is estimated to be about 40 per cent higher than in other urban areas.
Dhaka and Chittagong are the main domestic and international trading hubs, being also the dominant seats of major administrative and economic functions. Large numbers of migrants from other places of the country are attracted to these two metro cities. Spatial concentration in Dhaka and its surrounding areas has increased in recent years.
A similar trend is evident in Chittagong. In this situation, it is not difficult to understand as to why a substantial part of the economic activities in Bangladesh is clustered around these cities. The spatial distribution of employment by industries also bears out this concentration. The capital city of Dhaka alone accounts for 80 per cent of the country's readymade garments (RMGs) output and half of manufacturing sector employment. Agro-processing industry that employs a sizeable portion of the country's workforce is also concentrated in Dhaka and Chittagong through varying degrees. Complementary business services, particularly finance and real estate, have likewise predominantly expanded in two cities, relative to the rest of the country, providing a higher share of total income-earning jobs opportunities. Dhaka, of course, maintains an overwhelming lead here.
Remoteness from markets and towns and lack of infrastructure, like electricity and gas, are found to be important characteristics of the relatively more poor areas in Bangladesh. Such factors are strongly correlated to each other. Certain areas in Bangladesh have, thus, a combination of factors that have concentration of economic activities. This has given rise to the so-called growth poles. Poverty differs substantially between integrated region and less integrated region, the rate being lower in the integrated region than that of the less integrated region.
Improving connectivity of remote areas to growth poles and establishing interregional transport and communication systems are the ways through which balanced regional development for alleviating poverty can be achieved. For this, investment in infrastructure, bridging the information gaps to avert asymmetrical intelligence will be critical to remove the income gap between integrated region and less integrated one. I recent years, there has, in general, been a rise in the poverty level in Bangladesh. High prices of essentials and natural calamities have mainly caused this. Unemployment is an added factor here.
Tackling the poverty issues is a daunting challenge before Bangladesh. This challenge has to be met, not by mere words but by real deeds.
In a situation when poverty exists more in rural areas than in urban ones, issue of addressing the needs of the landless and marginal farmers assume a pivotal importance. Related to this is the question of land reform. The numbers of those who own no land or have been compelled to sell off land in the past few years have gone up. This situation gives a disconcerting signal. It holds the potential of great social disorder in the future. It needs to be handled sagaciously.
In this context, social security programmes should be carefully designed. All vulnerable groups in the country will have to be covered gradually under such programmes. Providing subsidies to the farmers is a crucial necessity. The figures for subsidies have otherwise been on the rise regular. But such subsidies must actually percolate down to the really poor and needy farmers. Hence, properly targeting subsidies remains a crucial issue. Locally influential and partisan people must not be denied of opportunities to lay their hands on what should be going to the poor. Ensuring adequate guarantees about this is essentially a basic governance issue. The campaign against poverty will not make any headway, if this issue is not resolved to the satisfaction of the poor.
Poverty alleviation or reduction will critically depend on grass-root participation in the drive to take the poor out of the misery cycle. Unless the people are involved, through local bodies and other means, in poverty reduction programmes, no sustainable economic development process can be ensured.
In this context, the political parties have a clear responsibility to carry out. They need to give out a clear sense of direction through concrete and specifics-based poverty reduction programmes. The nature and substance of politics will have to be changed for the better. This has to pave the way for the political parties to be able to figure out the realities on the ground; they will have to formulate effective responses to them. Unless the poor can find a way out of their despair, progress in all other areas will remain a misnomer.