The best way to spend for the poor
Abdus Subhan | Saturday, 16 August 2008
THE poor population of the country is going through greater stresses. The government's policies need to be oriented exceptionally to hedge the poor. One of the country's think-tank, recently assessed that poverty rose from 40 per cent to 48.5 per cent over the past 15 months and the income of the affected ones fell by as much as 36.7 per cent in this period. Thus, the challenge for the policymakers is how best to control this slide in the poverty and income situation. The stresses in the life of people at the bottom in terms of standard of living are only going to be worse following the recent adjustment of fuel oil prices and its various impacts on the cost of living.
The government has adopted an especially big social safety net programme in the current fiscal's budget to protect the ones who are vulnerable to adverse economic conditions. The money provisioned for spending on the safety net programme will be some Taka 169.32 billion. This is some 48 per cent higher than the sum allocated for a similar purpose in the last fiscal. But allocation is not enough. The utilisation of it with efficiency is what matters under the present circumstances. The money has been provisioned for spending with specific plans in some areas. But specific objectives have not been spelt out for other areas. Thus, some of the allocated fund will be used to pay various allowances to the poor and for running a guaranteed employment scheme. Flexibilities will remain with the planners to spend the rest of this fund, as and when the needs arise. Therefore, it is important to ensure effective spending from the fund not only to mitigate the hardship of the poor but also to create employment and income-earning opportunities for them. And spending from this fund with the express aim of creating employment should start in effective ways in earnest at the soonest to make a favourable impact. The process must not be allowed to become a lackadaisical one.
Disbursement of higher allowances and direct distribution of relief or dole such as food grain to the poor is helpful. But the same is also a purely consumptive and one-way exercise, producing no tangible returns for the economy. The best way to help the poor as well as create returns for the economy is through job creation. The poor are best aided and the economy hedged from inflation and sheer lack of productivity when assistance is given to the poor in areas of creating employment and means of income for them.
The government should target to achieve the best possible outcome of its spending on the poor at the earliest in this area. Spending for the social safety net and related activities ought to be integrated and concentrated to maximise job creation for the poor. This should be also aimed on a sustainable basis. New employment creation that would create income is the most pressing need for addressing the poverty situation in today's uniquely changed circumstances. The country has now to grapple with an unusually high rate of imported inflation from soaring prices of fuel oils and other commodities.
The government has adopted an especially big social safety net programme in the current fiscal's budget to protect the ones who are vulnerable to adverse economic conditions. The money provisioned for spending on the safety net programme will be some Taka 169.32 billion. This is some 48 per cent higher than the sum allocated for a similar purpose in the last fiscal. But allocation is not enough. The utilisation of it with efficiency is what matters under the present circumstances. The money has been provisioned for spending with specific plans in some areas. But specific objectives have not been spelt out for other areas. Thus, some of the allocated fund will be used to pay various allowances to the poor and for running a guaranteed employment scheme. Flexibilities will remain with the planners to spend the rest of this fund, as and when the needs arise. Therefore, it is important to ensure effective spending from the fund not only to mitigate the hardship of the poor but also to create employment and income-earning opportunities for them. And spending from this fund with the express aim of creating employment should start in effective ways in earnest at the soonest to make a favourable impact. The process must not be allowed to become a lackadaisical one.
Disbursement of higher allowances and direct distribution of relief or dole such as food grain to the poor is helpful. But the same is also a purely consumptive and one-way exercise, producing no tangible returns for the economy. The best way to help the poor as well as create returns for the economy is through job creation. The poor are best aided and the economy hedged from inflation and sheer lack of productivity when assistance is given to the poor in areas of creating employment and means of income for them.
The government should target to achieve the best possible outcome of its spending on the poor at the earliest in this area. Spending for the social safety net and related activities ought to be integrated and concentrated to maximise job creation for the poor. This should be also aimed on a sustainable basis. New employment creation that would create income is the most pressing need for addressing the poverty situation in today's uniquely changed circumstances. The country has now to grapple with an unusually high rate of imported inflation from soaring prices of fuel oils and other commodities.