Why the fight against poverty?
Sunday, 7 February 2010
Enamul Haque
There are many reasons why all energies need to be concentrated on poverty reduction in the country. The country's population has more than doubled since the time of independence when it was some 75 million with more than two-thirds of that population living below the poverty line. The population currently is over 150 million on a rough estimate and out of this vastly increased population 72.8 percent is considered to have a standard of living above the poverty level which means less than 30 per cent now live below the poverty line. Thus, it appears that poverty reduction has been significant. The situation has changed appreciably with the greater number in the more than the doubled population seemingly judged to be out of the throes of poverty. But with some 67.2 million living on less than a dollar a day -- the UN benchmark for determining poverty -- Bangladesh has a formidable task ahead in its struggle against poverty.
Poverty reduction is umbilically linked to economic expansion or economic growth. Bangladesh is considered a potentially lucrative market as the present market size of over 72 million people with reasonable purchasing power is not a small one. The demand for various types of goods and services generated by the number of people above poverty is huge and provides ample opportunities for businesses, local and foreign. The demand situation could be far higher if some 30 or 40 million more people could be helped to climb out of poverty at an early date.
The point is the entire cycle of economic activities spins faster when more people create demand. The resulting increases in production activities, job and income creation all add up to boost the GDP size of the country to increase cumulatively its individual and national wealth. Thus, poverty reduction makes preeminent sense from the perspectives of economic growth, business expansion and rise in the overall standard of living of people and these are expressly the reasons for the high desirability of poverty reduction at a faster pace.
The National Economic Council (ECNEC) that approves economic policies at the highest level, adopted the poverty reduction strategy paper (PRSP). Government will have to do more than just take some steps of approving the PRSP to clear the ground for receipt of funds from donors. It needs to sincerely address the governance issues as prerequisites for the successful implementation of PRSP goals.
There are many reasons why all energies need to be concentrated on poverty reduction in the country. The country's population has more than doubled since the time of independence when it was some 75 million with more than two-thirds of that population living below the poverty line. The population currently is over 150 million on a rough estimate and out of this vastly increased population 72.8 percent is considered to have a standard of living above the poverty level which means less than 30 per cent now live below the poverty line. Thus, it appears that poverty reduction has been significant. The situation has changed appreciably with the greater number in the more than the doubled population seemingly judged to be out of the throes of poverty. But with some 67.2 million living on less than a dollar a day -- the UN benchmark for determining poverty -- Bangladesh has a formidable task ahead in its struggle against poverty.
Poverty reduction is umbilically linked to economic expansion or economic growth. Bangladesh is considered a potentially lucrative market as the present market size of over 72 million people with reasonable purchasing power is not a small one. The demand for various types of goods and services generated by the number of people above poverty is huge and provides ample opportunities for businesses, local and foreign. The demand situation could be far higher if some 30 or 40 million more people could be helped to climb out of poverty at an early date.
The point is the entire cycle of economic activities spins faster when more people create demand. The resulting increases in production activities, job and income creation all add up to boost the GDP size of the country to increase cumulatively its individual and national wealth. Thus, poverty reduction makes preeminent sense from the perspectives of economic growth, business expansion and rise in the overall standard of living of people and these are expressly the reasons for the high desirability of poverty reduction at a faster pace.
The National Economic Council (ECNEC) that approves economic policies at the highest level, adopted the poverty reduction strategy paper (PRSP). Government will have to do more than just take some steps of approving the PRSP to clear the ground for receipt of funds from donors. It needs to sincerely address the governance issues as prerequisites for the successful implementation of PRSP goals.