Emphasis on attaining MIC with zero extreme poverty

Experts at a programme on Wednesday said achieving the middle-income country (MIC) status does not necessarily mean the benefit will trickle down to the poor section of the country and for that matter the policy emphasis should be achieving the MIC status with the zero level of extreme poverty.
They also noted the macro economic scenario and ground reality is contradictory with problems of inequality.
They suggested realising a growth rate of over 7.0 per cent to reach near elimination of extreme poverty and spend 2.0 to 3.0 per cent of the GDP annually for implementing effective programmes for the extreme poor.
Planning Minister AHM Mustafa Kamal however denied existence of any major inequality problem in the country and that this year the country will achieve 6.5 per cent growth and the extreme poverty rate will come down to 3.0 per cent by 2021.
These were discussed during the inaugural session of a two-day conference on 'Towards Sustained Era-dication of Extreme Poverty in Bangladesh' at the NEC conference room of the Planning Commission in the city.
The Planning Minister was present as chief guest and state minister for finance MA Mannan as special guest. General Economic Division (GED) member Shamsul Alam chaired the conference.
Bangladesh Institute of Development Studies (BIDS) research director Binayak Sen and Shiree head of research Zulfiqar Ali presented the keynote paper on 'Ending Extreme Poverty in Bangladesh'.
In his presentation, Binayak Sen said reaching the MIC level is possible and feasible in Bangladesh before poverty or extreme poverty eradication. But it may sideline the policy emphasis on poverty eradication (growing amnesia). Hence policy emphasis should be reaching MI income with the zero level of extreme poverty.
Bangladesh needs additional interventions to achieve the zero level of extreme poverty through 'mini big-push' by way of nationally replicating successful pilots of livelihood interventions to lift the extreme poor out of extreme poverty, he said.
The country also needs major re-orientation of public services, especially health, education, transport, and justice to meet the needs of the extreme poor to avert the slide into extreme poverty.
Mr Sen said as per the Bangladesh Bank (BB) claim, there is excess liquidity in the banks but poor people have hardly any access to the financial service system.
The BB has to bridge the gap existing in the economy, he said, adding: macro economic scenario and ground reality are not same.
UNDP deputy country director Nick Berefed said Bangladesh needs accelerated growth with equity.  
He stressed on providing skills to the poor to successfully enter the labour market.
Mustafa Kamal said now the programmes should be target-oriented as the government now knows how to eradicate poverty. Enough and faster growth has to be ensured first to quickly come out of extreme poverty, he added.
He said inequality is not very much there in the country and the gap between the ultra rich and the poor is not that big.
Mr Kamal said basic problems should be addressed to eradicate extreme poverty that is free from hunger and provide education.
"Extreme poverty has come down below 10 per cent now and it will come down to nearly 3.0 per cent by 2021," said the minister.
He stressed creating employment, ensuring social protection and human development mix for accelerated economic growth.                     msshova@gmail.com