INSTITUTIONAL INVOLVEMENT IN POVERTY ALLEVIATION: MAJOR GOVERNMENT AND

NGOS ORGANIZATIONS

Sharifa KhanDirector (Deputy Secretary)

WTO Cell, Ministry of CommerceE-mail: sharifanaser@gmail.com

Mobile: 01731468221

Poverty Trends

Bangladesh is one of the global hub of poverty.

These could be shown through three dimensions of poverty trends: Trends in income poverty Trends in human poverty Trends in inequality.

Income Poverty in Bangladesh

About 31.5% people live below the poverty line in 2010 and 19.5% is the hard core poor.

The head count poverty percentage declined from 58.8% in 1992 to 48.9% in 2000, further to 40% in 2005.

The total number of people living below the poverty line (2122 kilo calorie a day) however, increased from 51.6 million in 1992 to 55.8 million in 2000 and then to 56.0 million in 2005.

However, hardcore poverty (1805 kilo calorie a day) declined both in percentage terms and in absolute number. It has decreased from 28% (30.4 million) in 1992 to 19.5% (27.0 million) in 2005.

Data Inconsistency

Year Source Total Population

Poverty % Total Poor

2005 Population estimation based on Poverty %

138,613,900

40.4 56,000,000

2011 Population estimation by 1.36 growth

150,286,750

31.5 47,340,326

2011 Population census, 2011 and HIES

142,319,000

31.5 44,830,485

2011 People perception and HIES of Poverty

160,000,000

31.5 50,400,000

2011 People perception 160,000,000

36 57,600,000

Poverty Scenario in Bangladesh

Inequality Trends in Bangladesh

Gini-coefficient in Bangladesh increased from 0.451 in 2000 to 0.467 in 2005 thus showing increase in inequality.

The top 5% of the population enjoys 26.93% of the GNI while the bottom 5% have only 0.77% of the national income.

Inequality is higher in urban areas than that of the rural areas.

Consequences of Poverty and Inequality

Tendencies for violence and crime increases with poverty.

Lower socio economic status has been linked to chronic stress, heart disease, ulcers, type 2 diabetics, rheummatoid arthritis, certain types of cancer and premature aging.

Mortality is strongly associated with higher income inequality.

GOB Initiatives

It is a constitutional obligation of the Government to provide a reasonable living standard for the citizens by alleviating poverty.

Moreover, Government of Bangladesh as a signatory of MDGs aims at halving poverty and hunger.

GOB also adopted PRSP as an strategies for reduction of poverty.

GOB Poverty Reduction Strategies: NSAPR II

The revised PRSP II (2009-2011) identified following Strategic Blacks for poverty reduction:

Macro economic environment for pro-poor economic growth.

Critical Areas for Pro-Poor Economic Growth

Essential Infrastructure for Pro-Poor Economic Growth

Social Protection for the Vulnerable

Human Resources Development

NSAPR II: Five Supporting strategies

1. Ensuring participation, social inclusion and empowerment– women. Children, indigenous communities, persons with disabilities, extreme poor;

2. Promoting good governance.

3. Ensuring efficient delivery of utility services

4. Caring for environment and tackling climate change for sustainable development;

5. Enhancing productivity and efficiency through science and technology.

Note: Link of NSAPR with budget and actions are not clearly established.

GOB’s Programmes

Government total budget (direct & indirect) for poverty reduction in 2010-2011 was Tk. 76,001 crore which is 57.50% of the total national budget.

GOB operates about 88 social safety net programmes.

Total SSNP budget is 20,476.48 crore which is about 15.49% of national budget and 2.54% of GDP.

SSNP Budget in 2010-2011 (in Cr. Tk)

Programme 2009-2010 2010-2011

Various allowances including cash allowance

5,539 6056.71

Social Empowerment programme

161.00 55.52

Food security programme

4932.48 7193.27

Micro credit 395.00 340.02

Other fund 3,096.34 3309.13

Total 20476.48

As % of total budget 15.49

GOB’s Main Programmes

VGF, VGD, test relief Old age benefit. Employment generation for the hard core poor National service. Asrayan for the homeless and river erosion affected people. One house one farm Gore Fera. Asrayan Food for work Allowances for the insolvent freedom fighters. Allowances for the widow and destitute divorcees Allowances for the lactate mother.

Government Organizations for Poverty Reduction

Disaster Management & Relief Division. Directorate of Cooperative Bangladesh Rural Development Board (BRDB) Bangladesh Academy for Rural Development (BARD),

Comilla Rural Development Academy (RDA), Bogra. LGRD creates employment through construction of

roads, culverts, hat-bazar, barrage etc. Palli Daridra Bemochon Foundation (PDBF) Palli Karma Shahayak Foundation (PKSF) distribute loans

for micro credit. Ministry of Social Welfare. Small Farmers Development Foundation. Directorate of Fisheries Information and Communication Technology for the

Poverty Reduction.

Advantage of Government Programme

Huge funds are available. Interest rate is low. Use existing administrative facilities. Easily extend the coverage. If the political leaders really wants it can

bring better achievements. During flood, cyclone and natural

calamities government can utilize its whole administration.

Disadvantages of the GOB Pogrammes

Highly influenced by politics Extremely bureaucratic Weak network/linkages with the poor. Corruption level is high. Miss the target group and often provide

benefits to the vested interest group. Changes priority and programme with

the changes of government. No exit and ladder programme.

Development of NGOs in Bangladesh

Bangladesh has been perhaps the most important hearth on the globe for non-governmental organizations (NGOs).

A series of natural disaster and political upheavals in this region during the 1940s and subsequent decades provided the impetus for the development of NGOs.

After making his fortune in the coal trading business, Ranada Prashad Shah built the Kumudini Hospital to offer free medical care and treatment to people.

Development of NGOs in Bangladesh

Between 1947 and 1970, village-based cooperatives were replaced with union-based multipurpose cooperative societies.

During this period, some large cooperative enterprises (such as National Industrial Society, National Fishermen, Sugarcane Growers’ Federation, and transport cooperatives) were established.

In 1958, the Comilla Rural Academy (formally known as the Pakistan Academy for Rural Development [PARD]) was established by Dr. Akhtar Hameed Khan.

Development of NGOs in Bangladesh

The “Comilla Cooperative Model” was launched in 1959 on experimental basis.

Throughout the 1960s the Comilla Academy provided the conceptual model for two decades of integrated rural development programme supported by major bilateral and multilateral donors.

In 1972, Mr. Fazle Hasan Abed founded the Bangladesh Rural Advancement Committee (BRAC) to resettle returning refugees who had fled to India during the independence war.

Development of NGOs in Bangladesh

Over the time, NGOs shifted the thrust of their work towards social and economic development. Moving beyond relief and rehabilitation.

The new organizations emerged to undertake work in the delivery of services particularly in the fields of health and education.

NGOs then involve in micro credit programmes. Gradually NGOs involve in policy advocacy on

various issues of citizen concern including environment, conservation, gender equity, trafficking of women and children, good governance and aid conditionality.

Development of NGOs in Bangladesh

Presently, the number of NGOs in Bangladesh is about 26,000.

The major focus on development or poverty alleviation through micro credit.

Bangladesh received global appreciation for micro credit

The Grameen Bank received noble prize. Leading NGOs are BRAC, Grameen

Bank, ASA, Proshika, Shakti Foundation, TMSS etc.

Advantages of the NGOs Programmes in Poverty

Alleviation

NGOs has strong network at the grass root level and can easily reach to the poor.

Local poor people feel comfortable to communicate with NGOs.

NGOs can deliver the micro credit to the real poor.

NGOs can easily monitor the progress of the poor.

No collateral is required for micro credit. NGOs has great contribution to women

empowerment.

Criticism of the NGOs Activities

Interest rate charged by the NGOs on micro credit is extremely high.

NGOs often extort people to collect loan and interest.

Amount of loan is so small, it is hard to become self sustain.

NGO activities are totally dependent on foreign loans, thus lack sustainability.

NGOs activities are destroying local volunteerism and making people more dependent.

Often run with political motives behind the apparent scenario and political issues often got priority in the operation of NGOs activities.

Fund is gradually reducing due to diversion of donors to other poor countries.

What Needs to Be Done

Government should have programmes for systematic graduation from poverty.

As long as political interference exists in GO-NGOs poverty reduction programme, the real impact would be minimum.

Transparency and accountability is needed from both sides. E-governance may help reduce the problems if it is properly designed and managed.

Impartial Social audit is important. NGOs needs to find alternative ways to generate

its own fund.