Economists suggest adequate fund in budget for ultra-poor

Economists at a dialogue in the city Wednesday called for adequate budgetary allocation for the country's 10 per cent ultra-poor for lifting them out of the poverty, reports UNB. The ultra-poor live in a so miserable condition that they only can spend less money for buying food. Their spending to other necessary requirements except food are nearly zero, they said, calling for massive investment in the country to promote ultra-poor and halt unequal distribution of resources. Political upheavals have been contributing significantly to the nature of budgetary allocations in fighting ultra-poverty. With a budget of 2.8 per cent of gross domestic product (GDP) these programmes are highly inadequate in coverage, are inflexible, unable to absorb transitory poor, and characterised by leakage and misappropriation. Reduction in hardcore poverty has not been successful during the period of 1990-2005. They made the remarks while addressing a dialogue titled "Allocation Mechanism of Budget in Relation to Ultra-Poverty", which was held at a city hotel. It was jointly organised by Economics Study Centre of Dhaka University and BRAC Advocacy unit. Dr Mahabub Hossain, executive director of BRAC, Dr Binayak Sen, research director of Bangladesh Institute of Development Studies, Dr Sajjad Zahir, executive director of Economic Research Group, Mamun Rashid, banker and economic analyst, and Dr Rushad Faridi, assistant professor of Department of Economics, University of Dhaka, took part in the dialogue. Changes should be made in the budget attaching priority to health, education and food for lifting the ultra-poor out of poverty. Social safety net programmes should be enhanced to help them carry out income generating activities, they said emphasising on access to agricultural loan, land and employment to the ultra-poor. These facilities can help them come out of the poverty cycle. Income disparity is rising, they said, calling for taking up development programme targeting the poor people. They preferred involvement of local government institutions in anti-poverty programme and proper utilisation of allocated fund, suggesting appropriate policy in this connection. They stressed the need for increasing pro-poor economic growth, ensuring human development of the ultra poor, strengthening social safety net programmes, enhancing participatory governance, strengthening local government, employment generation, PPP (public private partnership) and government and non-governmental organisations (NGOs) collaboration. A sustainable growth can increase the coverage of social protection. Social safety nets can play an important role in alleviating poverty. New approaches to urban safety nets and safety ladders are needed to make growth sustainable. Sustainable economic growth cannot be achieved if this group of poor people remains outside the growth curves.