The way to help the poor
Sunday, 9 August 2009
Abdus Rahim
Poverty in Bangladesh was reported to have increased in recent times particularly during the high prices of food items during the tenure of the caretaker government. This reversed the earlier trend that showed some modest improvements in the poverty situation since the 1990s. Thus, poverty reportedly rose from 40 per cent to 48.5 per cent during the period of the last caretaker government. And then the affected peoples' earning fell by 36.7 per cent. The deterioration in poverty was somewhat arrested in the period that followed, according to an assessment made by one of the country's leading think-tanks. Obviously, a fall in prices contributed to the positive development. But, the fact is, poverty is yet to subside substantially. The challenge before the policy planners is how best to address poverty and improve lives.
The government has expanded the social safety net programme under current year's budget. This is a welcome move. Proper targeting of this programme is an imperative need. Otherwise, mere increased allocation will not be enough to protect the vulnerable. The efficient utilisation of funds under the programme merits a priority consideration, under the present circumstances. The safety net envisages spending in some poverty areas. Its objectives do however need to be spelt out for different areas in clear terms. Some of the safety net allocations are to be used to pay the allowances to the poor and for running a number of employment schemes. The programme gave the planners flexibility to spend the rest of the fund, as and when the need arises. It is, therefore, important that the fund is utilised not only to mitigate the hardships of the poor but also create employment or income-earning opportunities for them. And the utilisation of the fund to create employment should start in earnest at the soonest. The process must not be half-hearted.
Higher allowances and foodgrain as dole to the poor, though helpful, being purely for consumption, will not produce tangible returns for the economy. The best way to help the poor and get returns for the economy, would be to generate employment. In other words, productive utilisation of the fund would better help the poor and, at the same time, keep inflation low. It would translate into employment and income for the poor and increased output for the economy.
The government should, therefore, seek the best possible outcome out of its spending for the poor. The social safety net expenditure, under a comprehensive plan, would maximise the benefits for the poor, provided jobs are created on a sustainable basis. New jobs and income generation, thus, remain the pressing needs for addressing poverty.
Poverty in Bangladesh was reported to have increased in recent times particularly during the high prices of food items during the tenure of the caretaker government. This reversed the earlier trend that showed some modest improvements in the poverty situation since the 1990s. Thus, poverty reportedly rose from 40 per cent to 48.5 per cent during the period of the last caretaker government. And then the affected peoples' earning fell by 36.7 per cent. The deterioration in poverty was somewhat arrested in the period that followed, according to an assessment made by one of the country's leading think-tanks. Obviously, a fall in prices contributed to the positive development. But, the fact is, poverty is yet to subside substantially. The challenge before the policy planners is how best to address poverty and improve lives.
The government has expanded the social safety net programme under current year's budget. This is a welcome move. Proper targeting of this programme is an imperative need. Otherwise, mere increased allocation will not be enough to protect the vulnerable. The efficient utilisation of funds under the programme merits a priority consideration, under the present circumstances. The safety net envisages spending in some poverty areas. Its objectives do however need to be spelt out for different areas in clear terms. Some of the safety net allocations are to be used to pay the allowances to the poor and for running a number of employment schemes. The programme gave the planners flexibility to spend the rest of the fund, as and when the need arises. It is, therefore, important that the fund is utilised not only to mitigate the hardships of the poor but also create employment or income-earning opportunities for them. And the utilisation of the fund to create employment should start in earnest at the soonest. The process must not be half-hearted.
Higher allowances and foodgrain as dole to the poor, though helpful, being purely for consumption, will not produce tangible returns for the economy. The best way to help the poor and get returns for the economy, would be to generate employment. In other words, productive utilisation of the fund would better help the poor and, at the same time, keep inflation low. It would translate into employment and income for the poor and increased output for the economy.
The government should, therefore, seek the best possible outcome out of its spending for the poor. The social safety net expenditure, under a comprehensive plan, would maximise the benefits for the poor, provided jobs are created on a sustainable basis. New jobs and income generation, thus, remain the pressing needs for addressing poverty.