Poverty to be pared down to 14-15pc by 2020: Muhith

Finance Minister AMA Muhith said Sunday that Bangladesh wouldn't have to wait until 2030 for poverty eradication as the rate of poverty would drop to 14-15 per cent by the end of 2020 from 26 per cent at present.
Addressing a national convention on micro-finance in Dhaka, he appreciated the role of those who had pioneered lending to the poor as this micro-credit contributed much to the drive for pulling up the down-and-outs from the miasma of poverty.             
The finance minister said the credit of not failing to repay the loan by the poor goes to Nobel laureate Prof Muhammad Yunus as he had initiated a micro-finance programme focused on the poor section of society.
"Although micro-credit was an affair at personal level and was institutionalized and spread throughout the country by various personalities, including Bangabandhu Sheikh Mujibur Rahman, the credit of not failing to repay the loan by the poor goes to Nobel laureate Prof Yunus as he initiated a micro-finance programme focused on the poor section of society."
He pointed out that the percentage of loan default is more than 12 per cent in commercial banks while in micro-credit programmes the rate is not more than 5 per cent.
"It proves that poor people take loan, utilize it and pay back."
He said micro-credit would be there in the country even if there is no poverty as a section of people in society, including the disabled, will always be dependent on social safety-net recipe.
"A country with 12-14 per cent population living below the poverty line is not poor. I hope we'll be able to reduce the poverty level to 14-15 per cent from 26 per cent by the end of this decade," said the minister.
Mr Muhith was speaking at the inaugural session of the national convention on 'Towards Poverty Alleviation and Social Development: The Role of Microfinance Institutions (MFIs)' at Bangabandhu International Conference Centre (BICC).
The two-day event, which began Saturday, was jointly organised by the Institute of Microfinance (InM), Micro Credit Regulatory Authority (MRA) and Palli Karma Shahayak Foundation (PKSF). PKSF chairman Qazi Kholiquzzaman Ahmad chaired the session.
Mr Muhith suggested transforming the existing slogan 'Social Development and Poverty Alleviation' into 'Poverty Eviction and Social Development'.
This change happens to turn upside down the concept of poverty alleviation through handing out benefit of development by means of 'trickledown' effect of economic growth.              
The minister said microfinance will still remain relevant even with a 14-15 percent poverty rate.
Mr Muhith said MFIs have been playing a great role but there are no specific data as to how many of them are operating in the country.
Unspecific data show 3000 MFIs active in the country while MRA has licensed only 700 of them.
"Those who are outside the regulatory system of MRA should be cautious as actions could be taken against them anytime," the minister warned the MFIs operating without MRA licence.
Qazi Kholiquzzaman said traditional micro-credit can advance the country up to limited level, but real development is not possible with this.
"For real development the formation of social capital is necessary and human beings should be established as dignified human beings," he added.

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