The road to sustained poverty alleviation
Thursday, 3 December 2009
Monowar Hossein
MORE than 60 per cent of the country's population found two square meals a day difficult to afford in the early seventies. In 1991-92, the people belonging to this category was about 55 per cent. In 1999-2000 it dropped to below 50 per cent. Now about 40 per cent of the population are below the poverty line in Bangladesh.
In poverty alleviation, Bangladesh overtook some neighbouring countries in the last decade. All these figures are available from the official data and the statistics of the United Nations Development Programme (UNDP). Even then, bringing the 40 per cent above the poverty line would be a herculean task for Bangladesh. This is so because well-to-do farmers slip below the poverty line from time to time due to crop failures, floods, cyclones, river erosion, as well as some negative impact of public policies. Whether or not the surveys take these people into consideration is a big question.
A recent study by a local independent think-tank found that poverty increased from 40 per cent to 48 per cent due to inflation and wrong public policies of the last caretaker government. The fluctuating poverty line can make accurate poverty estimation a formidable exercise for any country. It leaves little room for complacency. Are anti-poverty measures making a dent at all? The government needs to be more serious about tackling poverty.
With over 5.0 per cent average economic growth in recent years, Bangladesh outperformed most least developed countries. But farmers, weavers, and workers, who constitute the majority of the population did not gain much. The fruits of growth are pocketed by a small section of the population. Obviously, the trickle-down theory has not worked. Concentration of wealth in a few hands, lack of distributive justice and corruption worked together to widen the gap between the rich and the poor. Government policy-makers must address these issues effectively. Improvement in investment climate, extensive crop insurance coverage, prevention of distress sale of land and other assets by law, better marketing of primary produce to ensure due returns to growers, efficient post harvest procurement to provide price support, corruption-free institutional credit to farmers at low interest could be sustainable poverty-cutting measures.
MORE than 60 per cent of the country's population found two square meals a day difficult to afford in the early seventies. In 1991-92, the people belonging to this category was about 55 per cent. In 1999-2000 it dropped to below 50 per cent. Now about 40 per cent of the population are below the poverty line in Bangladesh.
In poverty alleviation, Bangladesh overtook some neighbouring countries in the last decade. All these figures are available from the official data and the statistics of the United Nations Development Programme (UNDP). Even then, bringing the 40 per cent above the poverty line would be a herculean task for Bangladesh. This is so because well-to-do farmers slip below the poverty line from time to time due to crop failures, floods, cyclones, river erosion, as well as some negative impact of public policies. Whether or not the surveys take these people into consideration is a big question.
A recent study by a local independent think-tank found that poverty increased from 40 per cent to 48 per cent due to inflation and wrong public policies of the last caretaker government. The fluctuating poverty line can make accurate poverty estimation a formidable exercise for any country. It leaves little room for complacency. Are anti-poverty measures making a dent at all? The government needs to be more serious about tackling poverty.
With over 5.0 per cent average economic growth in recent years, Bangladesh outperformed most least developed countries. But farmers, weavers, and workers, who constitute the majority of the population did not gain much. The fruits of growth are pocketed by a small section of the population. Obviously, the trickle-down theory has not worked. Concentration of wealth in a few hands, lack of distributive justice and corruption worked together to widen the gap between the rich and the poor. Government policy-makers must address these issues effectively. Improvement in investment climate, extensive crop insurance coverage, prevention of distress sale of land and other assets by law, better marketing of primary produce to ensure due returns to growers, efficient post harvest procurement to provide price support, corruption-free institutional credit to farmers at low interest could be sustainable poverty-cutting measures.