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Social Protection for the Poor:A Study on Micro-Health Insurance in Bangladesh
Prepared By
Hedayet CHOWDHURY [First Author] Department of Economics Kazakhstan Institute of Management, Economics and Strategic Research (KIMEP) Republic of Kazakhstan & Department of Development Studies University of Dhaka, Bangladesh
and Mohammed Abu Eusuf [Second Author] Department of Development Studies University of Dhaka Bangladesh
Contact person:
Md. Hedayet Ullah CHOWDHURY Department of Economics Kazakhstan Institute of Management, Economics and Strategic Research (KIMEP) 4 Abai Avenue Almaty 050010 Republic of Kazakhstan Tel. +7-3272-704251 Email: [email protected]
Social Protection for the Poor:A Study on Micro-Health Insurance in Bangladesh
Abstract: As Households and individuals of developing countries face various risks that plunge them into poverty and vulnerability the study made an attempt to describe social protection (SP) activities, particularly to identify all programs related to Micro-health insurance in Bangladesh and to develop a Social Protection Index (SPI), which summarizes a country's SP activities. Though micro-insurance is relatively a new concept in Bangladesh, it is experiencing a steady growth since its commencement in 1993. The savings of the poor people not only create fund for investment but also integrate the poor section with the national economy. Micro-insurance can be a good source of investment in industrial sector. It can be another model like micro-credit, which has already brought reputation for Bangladesh. Micro-credit and micro-insurance together can contribute to poverty reduction drive in rural areas. Due to inadequate outreach of the public services and formal health insurance provided by the private sector, different Non Government Organizations have initiated various Micro Health Insurance (MHI) schemes for the poor people of Bangladesh. The aim of the micro-insurance is to reach the poor, as a tool to fight poverty and to promote equal access to health services. MHI can be defined as a type of health insurance where accessibility to health services is ensured to individuals and families through affordable premiums and low prices for health services.
Social Protection for the Poor:A Study on Micro-Health Insurance in Bangladesh
1.1 Introduction:
The main challenge of the developing countries is to achieve sufficient sustainable growth to secure
and ensure the inclusion of the poor and the children in the development process. The past-
experience reveals that growth alone is not sufficient for generating inclusive societies. Households
and individuals face various risks that plunge them into poverty and vulnerability. Individuals are
helpless, and societies have to take steps to reduce their vulnerability, cope with the shocks and
gradually eradicate the poverty. Risks are of diverse nature and include natural disasters, civil
conflicts, economic downturns, environmental hazards, deterioration of law & order situation and
malgovernance etc.
Asian Development Bank (ADB) identified four main types of risks to the poor.1 These are: (a) those
related to the individual life cycle, (b) economic, (c) environmental and (d) social and governance
related. Some risks affect all groups of population equally; others have more intense impacts on the
poor. The poor are, however, worst affected by all risks. They are highly vulnerable to risks and
constantly fighting to minimize the adverse affects and to avoid sinking further into poverty. Social
risk is a dynamic concept and perpetually strikes the affected people to push them into the conditions
that are more vulnerable. The poor, poorer and the poorest are the worst victims, as they have fewer
assets, reserves, opportunities and protections to cope with the multifarious risks. Coping strategies
and risk reduction interventions and actions are what the poor need to help them fight against
poverty.
Social protection presents a variety of instruments to be put in place to reduce the risk of population,
particularly of the poor. The long-term solution lies on the good social, economical and political
1 Please see the Table A1of the Appendix for details.
development decisions that address the causes of vulnerability and reduction of the effect of risks.
The ADB has defined Social Protection (SP) as the set of policies and programs designed to reduce
poverty and vulnerability by promoting efficient labor markets, diminishing people's exposure to
risks, and enhancing their capacity to protect themselves against hazards and the interruption/loss of
income. Furthermore, Social Protection is defined as comprising five major kinds of activities: (1)
labor-market policies and programs, (2) social insurance, (3) social assistance, (4) micro-and area-
based schemes, and (5) child protection.
Considering the above reality micro-insurance has gained a considerable currency in Bangladesh for
reducing the risk and vulnerability of the poor. Though it is relatively a new concept, it is
experiencing a steady growth since its commencement in 1993. The savings of the poor people not
only create fund for investment but also integrate the poor section with the national economy.
Micro-insurance can also be a good source of investment in industrial sector (Please see the figure
A1 of the Appendix). It can be another model like micro-credit, which has already brought
reputation for Bangladesh. Micro-credit and micro-insurance together can contribute to poverty
reduction drive in rural areas. Due to inadequate outreach of the public services and formal health
insurance provided by the private sector, different Non Government Organizations have initiated
various Micro Health Insurance (MHI) schemes for the poor people of Bangladesh. The aim of the
micro-insurance is to reach the poor, as a tool to fight poverty and to promote equal access to health
services. MHI can be defined as a type of health insurance where accessibility to health services is
ensured to individuals and families through affordable premiums and low prices for health services.
There are twenty organizations so far we could report at present that provide thirty-six schemes. The
schemes presented fall into five categories of micro insurance, namely health (39%), life (36%),
loans/capital (19%), livestock (6%) and disaster (3%).
1.2 Objectives: The objectives of the present study are (i) to highlight the SP activities related to Micro-health
insurance in Bangladesh and (ii) to estimate an index based on the cost, coverage and distribution
of micro-health insurance and other related programs of SP activities in Bangladesh.
1.3 Sources of data and methodology of the exercise: Though Bangladesh is not particularly very strong in documenting and maintaining necessary data,
this study has made a serious effort at collecting and collating the relevant data from various offices
and as well as published sources. For formulating and constructing the SPI, three following elements
of SP activities need to be considered:
• Cost or Expenditure
• Coverage and
• Distribution
Each of the elements needs to be measured for each of the main categories (e.g. five categories
namely (1) labor-market policies and programs, (2) social insurance, (3) social assistance, (4) micro-
and area-based schemes, and (5) child protection) of social protection programs. Ideally, the social
protection programs within each category were first identified. Then for each specific program
expenditure, coverage, distribution were calculated from secondary data or simulation method.
The following section gives in brief the formulation of three indexes, one for each element. Social Protection Index- Cost (IEP , IE ) Total cost of pth program is denoted by EP in year.
Then YEI P
EP = where EP Total Cost for the pth program and Y is the Gross domestic product of the
same year.
Y
EI p
P
E
∑==
5
1 .
If instead of EP, the per capita expenditure
⎟⎟⎠
⎞⎜⎜⎝
⎛== iesbeneficiarBPwhere
BE
eeP
Ppp ; is known
Then YeBI PP
EP =
Y
eBI p
PP
E
∑==
5
1
Social Protection Index - Coverage (ICP , IC) Coverage is the second element of the social protection Index. The coverage is to be related to either
the target beneficiaries or actual beneficiaries. The difference between the two varies from program
to program. However, for convenience, beneficiaries (actual) would be preferred. The beneficiaries
will be compared to the reference population for specific program and the total population for
composite indicator.
Let MP is the beneficiaries of pth program. N is the population, then
NMI P
CP =
N
MI p
P
C
∑==
5
1
Social Protection Index - Distribution (IDP , ID) The third element of SPI is distribution. Beneficiaries are classified into two groups: poor and non-
poor. The Poor are those who fall below the poverty line and Non-poor are those who live above the
poverty line.
Clearly, Population = Poor + Non-Poor = P + NP. = HN + (1- H)N. Where H = Head count poverty Index 1- H = complement of H, [H+(1-H)]= 1 P = HN, NP = (1- H)N = N - P BBP = beneficiaries of the program.
PBP I = no of beneficiaries who are poor.
HNPB
PPBI PP
DPII
==
HNPB
PPB
II P
p
PDPD
∑∑ ∑ ====
II5
1
1.4 Social Insurance Program: An Overview of the Micro Health Insurance in Bangladesh There is no formal definition of social protection in Bangladesh. However, many poverty reductions,
social security programs mention that the implementation of the program will help protect the
socially disadvantaged and vulnerable groups from shocks. This is not altogether surprising as the
term social protection has only been adopted by IFIS in recent years. The programs as specified in
the budget Speech, PRSP document and other policy papers reveal that most departments of almost
all ministries are involved in poverty reduction programs. The main Ministries involved with social
protection, social security and poverty reduction are Ministry of Social Welfare, Ministry of Food
and Disaster Management, Ministry of Labor and Employment, Ministry of Women and Children
Affairs, Ministry of Local Government and Rural Development, Ministry of Youth etc.
As per the thematic paper prepared for providing input to the on-going PRSP finalization process
social insurance program includes all programs that cover the risks associated with unemployment,
sickness, maternity, disability, industrial injury and old age. In Bangladesh there is no provision for
social insurance schemes particularly for the poor people by the public sector. However, there are
some provisions for sickness and maternity allowances for Government employees. In addition, the
Government covers the following schemes for the public sector employees. However, the number of
beneficiaries of these programs is not available. Moreover, it is not possible to separate the poor
beneficiaries from the total employees, as the percentage of poor population in the Government
service is unknown. Nor all the class of employees can be categorised as the poor.
Table1: Pension and Gratuities 2002-03 (in thousand Tk.) Economic Description Budget Pensions and Family Pensions 880,20,00 Gratuities 810,45,00 Pension for Meritorious and Praiseworthy Deeds 1,10,00 Medal for good performance 1,03,00 Medical Allowance to Pensioners 80,00,00 Source: Ministry of Finance: Budget Database
The following Table 2 presents various social insurance programs implemented by a number of non-governmental organizations. Table 2: Social Insurance Program (2002-2003)
Program Institution/Agency Target Beneficiaries (Number)
Expenditure (Million)
Poor Beneficiary (Number)
Micro Health Insurance Bangladesh (MHIB)
BRAC 10000 35200 0.394172 35200
Micro Health Insurance (MHI)
Grameen Kalyan 800000 26410 1.999982 26410
Proshika Savings Scheme (PSS)
Proshika NA 13010000 9.03 13010000
Life & Micro Health and Livestock Insurance Schemes
Dustha Shastho Kendro(DHK)
30 2258 0.026354 2258
Insurance Scheme for IGA group members
Care Bangladesh 10000 18368 0.115 18368
Micro Insurance/ Emergency Fund
Integrated Development Foundation (IDF)
100000 216000 1.867139 216000
Customers Security Fund (Micro-insurance)
BURO Tangail NA 106103 0.3 106103
Beneficiaries Life Insurance
Society for Social Services (SSS)
100000 100500 0.574 100500
Sajida Health Sajida Foundation 10000 50035 8.269028 50035 Risk Fund Association of
Development for Economic and Social Help
3000-5000
4343 0.012 4343
Risk Management Scheme
Technical Assistance for Rural Development (TARD)
3000-5000
6419 0.019 6419
Welfare program for the hard-core poor
Association for Rural Save and Human Emancipation (ARSHE)
> 3000 501 0.0039 501
Apatkalin Tahbil Community Development Center (CODEC)
3000-5000
3221 0.38875 3221
Apatkalin Tahbil Bonaful 5000-10000
21830 0.05 21830
Gono Grameen Bima Delta life Insurance Co Ltd
NA 757869 41.839562 757869
Total 14359057 64.888887 14359057 Source: ILO (2003), Micro Insurers: Inventory of Micro Insurance Scheme in Bangladesh Though there are number of private organizations providing health insurance program, but the cost
of these services is not affordable to the poor. In this reality, in 2001 ILO launched a project named
Women’s Empowerment through Employment and Health (WEEH) to empower income-poor
women in Bangladesh. The objectives of this program are to increase the poor people’s access to:
• decent employment,
• income opportunities,
• viable community health insurance systems and
• quality health care services.
It is assumed that introduction of this program will contribute to poverty reduction and socio-
economic development. Basically WEEH has two sub-projects:
• Micro Health Insurance for Poor Rural Women in Bangladesh (MHIB)
• Women empowerment through Decent Employment (WEDE)
Against this background, the following sub-sections will give a brief overview of all programs
related to micro-health insurance in Bangladesh initiated by different non-government
organizations.
1.4.1 Micro-Health Insurance Bangladesh (MHIB) was initiated by BRAC in November 2001. The
objective of this project is to contribute to the empowerment and improvement of the wellbeing of
the poor women and their families by promoting access to quality health care through an affordable
micro-insurance initiative. The project is designed for achieving three primary goals:
(a) contribute to woman’s empowerment (b) increasing access to BRAC’s health care initiatives for poor women and
their families (c) increasing awareness of preventive healthcare including
The target of the project is to cover persons of various occupations (subsistence agriculture, animal
husbandry, fishing, trade and crafts etc) in the 573 villages in which BRAC operates. The project
insured primary health and pathological services. The scheme is in operation with technical
assistance /co-operation from ILO-STEP. Benefit package and contributions of Micro-Health
Insurance scheme are shown below:
Package Benefits Yearly contribution No. of Beneficiaries
Health care: general benefit package
Discount prices for consultation: Tk, 8 for members (Tk. 10 for non-members) 50% discount on normal deliveries 10% discount on medicines Free yearly health check up Coverage of referral costs: Tk. 500 to Tk. 1,000 (Ultra poor my benefit from same services without having to pay a premium)
Tk. 100 for a family up to 6 persons (Tk. 250 for non-member) Tk. 150 for a family up to 8 persons (Tk. 300 for non-member) Tk. 200 for a family of more than 8 persons (Tk. 350 for a non-member)
30, 625 (6,125 families) plus 1,085 (217 families)covered without premium under the ultra-poor program
Health care: pregnancy related care package
ANC check-up at BRAC mobile/satellite clinic Monthly supply of iron tablet and folic acid Provision of Safe Delivery Kit for home delivery Support for post-delivery complications Support in the event that newborn babies suffer from diarrhea or pneumonia within 28 days of birth
Tk. 50 for a member Tk. 70 for a non-member
1,465 women
1.4.2 Grameen Bank (GB) commenced the “Micro Health Insurance” (MHI) in 1997. It is
operated by Grameen Kalyan (GK), which is a member of the Grameen Family. The project was
intended to provide primary health care services to GB members who involved in various
occupations including subsistence agriculture, animal husbandry, fishing, trade and crafts as well as
general people living within its operational areas at an affordable cost to the poor. The priority areas
of the scheme are preventive and promotional health care services with special emphasis on family
planning and reproductive, internal and child health care
1.4.3 PROSHIKA has a number of policies and activities to cover financial risks of its group
members and health-related vulnerabilities of the society. PROSHIKA Savings Scheme (PSS) is
one of these activities began in 1997 for covering risk of natural disasters, life, loans, livestock and
property. Target population of this scheme is group members including landless and marginal
farmers. According to the scheme if a member dies or loses the homestead through a natural disaster,
she is reimbursed double the amount of her/his savings as damages. The family gets their savings
deposit multiplied by the number of years of savings.
A compensation fund under the PSS has been created to compensate for the death of group members,
damages to their houses or homesteads caused by river erosion, tornado, etc. Two per cent of the
savings balance of the groups is transferred to this compensation fund on 30th June every year.
In case of destruction or damage to the homesteads and houses by river erosion, cyclone, or tornado,
twice the amount of the savings deposit of the member is paid as compensation, yet the member's
savings deposit remains intact. The member enjoys the same right on that deposit like other
members.
In case of the death of a group member, the member's family receives the savings deposit multiplied
by the number of years of savings with PROSHIKA. But the amount is never less than double the
deceased's savings balance. The compensation will have to be paid, completing all the related steps,
within three months of the death of a member.
Proshika adopted the Economic-Social Security Programme (ESSP) scheme and put into effect
from July 1999 to facilitate group members for saving more money for their future benefit to ensure
a secured future for the group members. This scheme will cover housing, education, health and
some other facilities for the regular savers as well.
In 1990, Livestock Compensation Fund (LCF) was introduced by Proshika to pay for loss caused
by the sudden death of farm animals and poultry. The groups contribute 3-5 per cent of the purchase
value of the animals in this fund. The fund, covers death risk of cattle, goat, and chicken and has so
far paid over Tk. five crore (50 million) to the affected group members.
PROSHIKA considers a disabled person very much a part of its development process and
accordingly started a pilot project, Disability and Development. To raise people's awareness on
disability 23,800 people have been given orientation on the issue through 1,720 discussion sessions
in eight ADCs. A total of 644 disabled people and members of their families have been included in
the PROSHIKA organized groups and 465 children with disabilities were admitted to the local
schools and PROSHIKA-NFP schools. Besides, 879 people with physical disabilities have been
provided with home therapy or exercises. Centre for Disability and Development (CDD) of Savar
and Centre for Rehabilitation of the Paralyzed (CRP) provided necessary technical support and
relevant training.
1.4.4 Dushtha Shastha Kendra started life & micro health and livestock insurance schemes in 1995
with a view to provide supports for primary health care especially for woman and children. The
schemes targeted to poor, landless, and marginal farmers - low income groups within both informal
and formal economy.
1.4.5 CARE Bangladesh introduced a micro-insurance scheme under the heading of “Insurance
scheme of IGA group member” in 2000. The micro insurance scheme is a part of SHAHAR
(Supporting Household Activities for Health, Assets and Revenue) project activities being managed
by 14 partner NGOs, taking part in the scheme. The SHAHAR project implemented by CARE-
Bangladesh aims to establish household livelihood security for vulnerable urban households. The
target population of this insurance scheme is limited to geographical area and persons involved in
trade and crafts.
1.4.6 Integrated Development Foundation (IDF) started a micro health insurance scheme in 1997
for helping the family of the group members if they are seriously sick or in case of death of an
earning family member. So the target population of the MHI scheme is the IDF group members
involved in subsistence and cash crop agriculture, animal husbandry, trade && crafts and fishing.
IDF specifically focuses on assisting the poor, landless, destitute women and children, small farmers
and disabled persons. IDF offers two types of benefits to insurance holders:
a). grants for death of a family member and b). grants for medical treatment
The scheme was designed to cover the risk of primary health, life, accidents and hospitalization. The
Micro-health Insurance scheme provided by IDF is closely tied to IDF’s micro-credit program, and
subscription to the MHI scheme is compulsory for IDF borrowers. The total number of families
covered by IDF through its 26 branches in 19 thanas of 4 districs was 29,700 in 2002. The total
population covered so far y the MHI is 120,000.
1.4.7 Young Power in Social Action (YPSA) introduced a Micro Health Insurance in March 2003
to cover the risk of primary health and credit (credit insurance only available to micro-credit
members) of subsistence farmers, fishermen, artisans, day-labourers and landless people.
Package Benefits Yearly contribution No. of Beneficiaries
Health Subsidised medical services include:: Consultation with doctor (Tk. 5 per visit) Medicine: 40% discount Pathological tests: 30% discount Normal delivery: 40% discount Free yearly medical check-up One-time Tk. 200-500 grant in case of hospitalisation
Tk. 75 for families up to 6 members (Tk. 100 for non-members) Tk. 125 for families up to 11 members (Tk. 150 for non-members0
2,080
Life In case of death of policyholder, nominee receives Tk. 5,000 – adjusted to outstanding micro-credit debt, if any.
Tk. 10 3,500
Loan insurance In case of death of policyholder, outstanding debt cancelled, and total savings with YPSA is returned to nominee
1% of loan amount (e.g. a 5,000 loan insurance costs Tk. 50)
4,000
1.4.8 Society for Social Services (SSS) promotes the socio-economic condition of the rural and
urban disadvantaged and poverty stricken people through savings fund generation, credit operation,
health services (preventive and curative), education, technical co-operation, development of
disadvantaged rural and urban children, rehabilitation of sex worker's children and joint action.
Package Benefits Contributions (yearly)
No. of Beneficiaries
Life insurance Nominee receives equal amount of loan disbursed (up to Tk. 5,000) in case of death of policy holder. Nominee also exempted from repaying any upstanding debt owed by policy holder.
0.5% of yearly loan
Health Basic (preventive and curative)health care free of cost by medical assistants. Basic (preventive and curative) health care at 50% discount by certified MBBS doctors.
Tk. 20
95,000 women and 6,500 men
1.4.9 Sajida Foundation started to work in 1999 to provide primary and secondary health care
through Sajida health centre, satellite clinics and referral services for tertiary care by partnership with
other institutions. The target population of this scheme is Sajida’s micro-finance groups engaged in
trade and crafts and mostly within the informal economy.
Package Benefits Contribution No. of Beneficiaries Health-Family Card
Antenatal Care Free general treatment Normal delivery for Tk. 225 Free annual check-up Pathological service at 20 % discount. Interest free treatment loans up to Tk. 5,000. Hospitalisation at 30% discount. Free referrals
Tk. 100-150 per year (depend on basis of loan size)
50,035
1.4.10 Panna Samity Sangsad (PSS) introduced loan & life insurance scheme in 2003 as a part of its
regular programme activities. The target population of this scheme is limited to geographic
operational area of PSS involved in cash crop farming, trade and crafts and informal economy
employment.
1.4.11 Association of Development for Economic and Social Help (ADESH) initiated its Micro-
Insurance Scheme in July 2002 with a view to cover the risk of life and loans of trade and crafts
occupations. Under the benefit package of this insurance scheme -Risk fund – in case of death of
insurance holder, nominee receives Tk. 2,000.
1.4.12 Since 1995 Technical Assistance for Rural development (TARD), which is a non-profit
voluntary organization devoted to promote development efforts in Bangladesh, offers life insurance
under the “Risk Management Scheme” to cover the risk of life of “specific social group within the
informal economy”. The premium is covered by the interest on micro-credit loans on yearly basis. The
contribution for the scheme is covered with the 15% interest rate charged for micro-credit loans. In
case of death of policyholder, nominee receves up to Tk. 10,000. The amount is dependent upon the
amount borrowed from TARD – (Tk. 10,000 limit). Another benefit of the scheme is the
cancellation of outstanding debt from micro-credit loans.
1.4.13 “Welfare Program for the Hard-core Poor” is a Micro-Insurance Scheme introduced by the
Association for rural Save and Human Emancipation (ARSHE) in 2000 with a view to cover the
risk of accidents and loans of “income poor of the informal economy” engaged in subsistence agriculture,
animal husbandry, fishing, trade and crafts. The life insurance policy is tied to micro-credit, with a
limit of Tk. 12,000. A credit member may purchase a policy up to the amount of his/her loan. In
case of death of policyholder before loan recovery, ARSHE offers exemption of the rest of the loan to
policyholder’s family. Premium is 0.05% of total loan amount, charged yearly. In case of
accident/injury, policyholders are given a lump-sump amount of Tk. 500-1,000 for treatment. Each
case is considered individually, after which the decision on appropriate amount is taken by ARSHE
management.
1.4.14 Community Development Centre (CODEC) is a development NGO that has been working
with the coastal poor fisher folk communities since 1985. The insurance scheme “Apatkalin Tahbil”,
which is started in 1992, aims to secure the welfare of its target groups by providing facilities for
health, fire hazards and family compensation in case of death. Under this scheme, the insurance
holder pays Tk. 25 per year for CODECs combined package of Health and Life. In case of death
policyholder, nominee receives Tk. 2,000. In case of accident/injury or need of hospitalization,
policyholder receives Tk. 1,000. In case the policyholder is the victim of fire hazard, family members
are entitled to food and clothing for one month.
1.4.15 In 1999 a micro-financed institution based insurance scheme was introduced by Ghashful for
life risk coverage of its micro-credit members and lower/middle income groups engaged in animal
husbandry, fishing, trade and crafts. Under this scheme, a life insurance policy-holder pays Tk. 10
per month. Benefits for nominee, in case of death of policy holder, are:
a). Tk. 5,000 if death occurs after 1 year and b). Tk. 10,000 if death occurs after 3 years. 1.5.16 By targeting the urban folk of Chittagong in the formal and informal economy engaged in
animal husbandry, fishing, trade and crafts, in 1997 Banaful started a Micro-Insurance Scheme
named “Apatkalin Tahbil” for covering risk of primary health. The insurance scheme is run
independently by Banaful as a part of its micro-credit activities.
Package Benefits Contribution No. of Beneficiaries
Primary health Doctor consultation: Tk. 15 Paramedic consultation: Tk. 10 Consultation on family planning and contraceptives: Tk. 10
1.5% of yearly loan account
21,830
1.5.17 In 1988, Delta life insurance company commenced a new insurance scheme named “Gono
Grameen Bima” (GGB) to cover the life risk of all low income earners aimed at the low-income
groups living in the villages, with clients mostly involved in small trading or other income generating
activities. Initially the scheme was designed to make the service available to those who most needed
insurance (low-income people) and for those who lack the financial resources or security and are
unable to leave their family with financial security upon death). The objectives of the GGB are:
• to promote savings habit among the low income groups in rural areas
• to promote financial security to the dependents of the policy holder and
• to improve the socio economic conditions of the policyholder through Micro-insurance and
micro credit.
"Gono-Grameen Bima” currently has 11 lakh policyholders in villages all over the country. It
employs over 11,000 field organisers, 57 percent of them are women. The service creates
employment and consumer base in villages.
1.5 Estimation of Social Protection Index: In this section of the study, we synthesize the information and findings obtained from review of
current social protection activities in Bangladesh in order to derive SP indicators. The derived
indicators are used in the construction of social protection index.
In accordance with the methodology discussed in section 1.3, the following items are considered:
• Annual expenditure on social protection as percent of GDP in 2002-03 FY,
• Coverage of social protection programs beneficiaries as percent of reference population and
• Distribution impact of SP Coverage of poor population as percent of total poor
1.5.1 Social Protection Expenditure The study identified only those programs that are targeted to the poor. Some programs are found to
operate since inception and some programs are year specific. For a good number of programs, either
the target population or the beneficiaries are given but the expenditures on specific programs are not
given. Likewise, in most cases, the total outlay is given without referring number of beneficiaries.
However, given the constraints, component wise breakdown of SP expenditure is given in Table A3.
In our Tables, NA means, Not Available.
1.5.2 Coverage of Social Protection Coverage is the second proposed component of SPI. As mentioned in section 1.3, for
calculation of coverage indicator, we need the following information:
• Total beneficiaries in the program
• Reference population of the program
It is clear that exact data for the above two items are required for the construction of coverage SPI. It
is to be mentioned here that data are missing for most activities. The following points are therefore
important:
• Quantification of number of beneficiaries for most programs is not possible
• Some programs have multiple target groups
• Some population are covered by multiple programs
• Some programs did not mention the population targeted
Table A4 presents the number of beneficiaries on social protection programs by sub component.
For calculating coverage of SPI for all the programs taken together, we used the total poor as
reference population (Table A5).
It is seen (Table A5) that labor market programs covered nearly 40 percent of unemployed and
underemployed, totaling 16.5 million in 2002-03. Social insurance program covered more than 20
percent of all the poor of the country. The Social assistance program covered nearly 10 percent of all
the poor. Micro-credit covered around 18 percent of rural destitute households having land less than
0.5 acres. The performance of Bangladesh in case of child protection is very low, only 4.7 percent
children of the poor families covered by the child protection programs. Taking all the beneficiaries
are together, it has been found that 30.57 percent of population were covered by SP activities during
fiscal year 2002-2003.
1.5.3 Distributional Impact of SPI Program This is the third proposed component of SPI. This indicator represents poor beneficiaries as percent
of total poor of the country. This was done as follows:
Estimated total poor of the countries = 49.8 % of all population = 66.75 million
Estimated beneficiaries for each component (Table A6)
Estimate poor Beneficiaries for each component (Table A6)
Distributional index = 100.PopulationPoor
iesBeneficiarPoor
The indices and distributional impact indicators are shown in Table A6. Component wise
distribution reveals that social insurance and micro area credit program are the two major
components that account for 21.50 percent and 17.95 percent of poor beneficiaries respectively. The
detailed distribution of annual social protection indicators has been presented in additional tables A7,
A8 and A9.
The summery of SP indicators has been presented in table 3.
Table 3: Summary of Annual Social Protection Expenditure and Indicators (2002-2003) SP Component Expenditure (Tk. million) Distribution (%) Labour Market Programs 7950.53 8.13 Social Insurance Programs 64.89 0.07 Social Assistance Programs 27643.09 28.16 Micro/ Area-wide programs 61815.81 63.20 Child protection Programs 334.10 0.34 Total 97808.42 100 Indicators of Social Protection Expenditure SP expenditure as % of GDP 3.25 SP expenditure per capita (Tk.) 729.75 Coverage (%) 30.57 Poor beneficiary as % of total Poor population 55.42
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction” Notes: GDP (Tk. million) : 3005800.00 Total Population (million) : 134.03 Total poor population (million) : 66.75 Total poor population as % of total population
: 49.8
It is seen that the SP programs covered 55.4 percent (multiple count) of all poor (66.75 million)
of the country. However, total beneficiaries constitute 30.57 percent of the total population. But
from expenditure point of view, only 3.25 percent of GDP was spent on SP activities targeted for
poor people.
• Total SP expenditure as percent of GDP: 3.25
• Per capita SP expenditure = Tk. 729.75 = US $ 12.58 ( 1 US $ = Tk. 58.00)
1.6 Concluding Remarks Collecting information on SP activities both from the government and non-government sources has
not been an easy task. The collected data were not of similar kind either. So we had to make
numerous working assumptions and adjustments to make them user-friendly.
We have not deliberately combined these three indicators into a single Social Protection Index (SPI).
We need to first agree on the relative weight, which should be given to each indicator. Despite all
the limitations indicated, the attempt at constructing SPI is in itself a laudable venture, particularly
at a time when Bangladesh opted for preparing PRSP. Monitoring implementation process of PRSP
will be highly desirable. SPI could be an important tool for such a monitoring effort.
The vision of Bangladesh's poverty reduction strategy is to substantially reduce the poverty within
the next generation, hopefully, by 2015.The government has given top-most emphasis on the poverty
reduction. The prime strategy is to use all routes. With many roots and multidimensional
characteristics, all routes matter for the poverty reduction strategy. The strategic elements of anti-
poverty policies and institutions will cover 5 broad avenues:
• Accelerate and expand the scope for pro-poor economic growth for increasing income and employment of the poor
• Human development of the poor for raising their capability
• Support Women's advancement and closing gender gap
• Provide "Social Protection to the Poor" against all kinds of shocks and vulnerability
• Influence participatory governance, enhance the voice of the poor and improve non-material dimension of well-being including security, power and social inclusion by improving the performance of anti-poverty and disaster preparedness and mitigation institutions.
The above interventions, as expected, will have maximum impact on poverty, especially in
minimizing the severity of poverty, where these are targeted to the poor, regardless of the places
where they live.
References ADB (2001), Social Protection StrategyADB (2004), Quarterly Economic Update Bangladesh, Bangladesh Resident Mission Action on Disability and Development (2004), Strengthening the Disability Rights Movement in Bangladesh- Annual Report 2003Action Aid International (2004), Global Progress Report (2003)Bangladesh Institute of Development Studies (2002), Fighting Human Poverty, Bangladesh Human Development Report 2000Buro Tangail (2004), Annual Report (2002-2003)BRAC (2003), Annual Report 2002 Credit and Development Forum (2004), CDF Annual Report (2002-2003)Department of Social Services (2002), Appropriate Resources for Improving Street Children’s Environment, Ministry of Social welfare, Government of Bangladesh ------------------------------------- (2002), An Introduction to Development Projects, Ministry of Social welfare, Government of Bangladesh. Delta Life Insurance CO. Ltd. (2004), Annual Report-2003Dhaka Ahsania Mission (2004), Annual Report(2002-03) Government of Bangladesh (2004), Bangladesh Economic Review 2004, Ministry of Finance ------------------ (2004), Bangladesh Budget Documents 2004 - 2005, Ministry of Finance ------------------ (2003), Bangladesh Economic Review 2003, Ministry of Finance ------------------ (2003), Bangladesh Budget Documents 2003 - 2004, Ministry of Finance ------------------ (2003), Statistical Year book of Bangladesh 2000, 2001, Bangladesh Bureau of Statistics ------------------ (2003), Report of the Household Income and Expenditure Survey 2000, Bangladesh Bureau of Statistics ------------------ (2003), Population Census 2001, Bangladesh Bureau of Statistics ------------------ (2003), Report of the Labour Force Survey Bangladesh, Bangladesh Bureau of Statistics ------------------ (2003), Two years of Development, Ministry of Social Welfare ------------------ (2002), Bangladesh Economic Review 2002, Ministry of Finance ------------------ (2002), Bangladesh Budget Documents 2002 - 2003, Ministry of Finance ------------------ (2002), Statistical Year book of Bangladesh 2001, Bangladesh Bureau of Statistics ------------------ (2000) Mid term Review of the Fifth Five Year Plan (1997-2002), Planning Commission, Ministry of Planning. ------------------ (1998), The Fifth Five Year Plan 1997-2002, Planning Commission, Ministry of Planning.
Grameen Bank (2003), Annual Report 2002 Grameen Bank (2002), The Grameen Generalized System ILO (2003), Women’s Empowerment through Employment and Health, Micro Insurers Inventory of Micro Insurance Schemes in BangladeshMicro Industries Development Assistance and Services (MIDAS), Annual Report (2002)Micro Industries Development Assistance and Services (MIDAS) (2004), List of Training Courses Conducted by MIDAS Naila Kabeer (2003), Safety Nets and Safety Ropes: Addressing Vulnerability and Enhancing Productivity in South Asia. In Crook Sarah et al, social Protection in Asia. The Ford Foundation. Har Anand Publication Nijera Kori (2004), Annual Report (2002-2003) Palli Karma- Sahayak Foundation (2004), Annual Report (2003) ------------------ (2004), Micro Credit Programs in Bangladesh: Giving a chance to the PoorPlan Bangladesh (2003), Overview of Plan Bangladesh’s ActivitiesProshika(2003), Sustainable Contribution Poverty Eradication Impact Assessment Study 2002 Proshika (2002), Crossing the Poverty Barrier: The Journey Ahead- Activity Report (July 2001- June 2002) Sagar, MSM (2003), “Poverty and Microfinance Program, Association for social Advancement (ASA) Experience”, Paper presented at the International Seminar, PKSF, Dhaka (8-9), January. Save the Children UK (2004), Children and Young People Participating in PRSP Processes------------------ (2004), Annual Report (2003/2004)UNDP (2003), The Macroeconomics of Poverty Reduction: The Case of Bangladesh World Bank and ADB (2003), Poverty in Bangladesh: Building on ProgressYunus, M (2002), Grameen Bank at a Glance.
APPENDIX
Table A 1: Social Risks - Risk Assessment and Risk Reduction Measures Risk Assessment Risk Reduction Measures Type of Social Risks to the Poor
Household or Informal Mechanisms
Options for Public Sector Intervention
Options for Private Sector mechanisms
Lifecycle • Hunger, children's
stunted development • Illness /injury/
disease (including HIV/Aids)
• Disability • Old age • Death
• Women as family
welfare providers • Extended family,
community support • Hygiene, preventive
health • Asset/savings
depletion • Debt • Migration
• Health nutrition
policy/ services • Social insurance
policy; mandatory insurance for illness, disability, life, old age; micro insurance
• Social assistance • Child protection
• Provision of health
services • Health, disability,
life insurance, and reinsurance
• Micro insurance • Old-age annuities
Economic • End of source of
livelihood (i.e., crop
• Diversified sources of
livelihood
• Sound macroeconomic
and sector policies to
• Employment
generating private
failure, cattle disease) • Unemployment • Low income • Changes in prices
basic needs • Economic crisis
and/or transition
• Private transfers/extended family support, child labor
• Depletion of assets/savings
• Reduced consumption of basic goods
• Debt • Migration
promote economic opportunities
• Particularly, regional and rural development policies, including micro insurance
• Labor market policies • Education and training • Social funds
sector investment • Agricultural/
livestock insurance, reinsurance micro insurance
• Banking services to the poor, micro finance
• Providing training
Environmental • Drought • Flood, rains • Earthquake • Landslides
• Migration • Community action for
resource management • Private
transfers/extended family support
• Assets/savings depletion
• Environmental policy
and infrastructure investment
• Catastrophe prevention, mitigation programs including insurance against natural disasters
• Agricultural/livestoc
k catastrophe insurance and reinsurance
Social/Governance • Exclusion, losing
social status/capital • Extortion, corruption • Crime, domestic
violence, social anomie
• Political instability
• Maintaining
community networks (reciprocal gifts, arranging marriages, religious networks)
• Community pressure • Women's groups • Migration
• Promotion good
governance, anti-discriminatory policies, and anticorruption practices
• Public information campaigns
• Providing security and equal access to justice
• NGOs and CBOs • Good corporate
governance securing fair employment opportunities and provision of services regardless of race, gender, age, social status or political affiliation.
Legend: CBO = community based organization, HIV/AIDS = Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome, NGO = nongovernmental organization. Source: ADB (2001)
Table A2: Components and Sub-Components of Social Protection Labour Market Programs Direct employment generation (micro-enterprise development and public works) Labour exchanges and other employment services Skills development and training Labour legislation (including minimum age, wage levels, health and safety, etc.) Social Insurance Programs Programs to cover the risks associated with unemployment, sickness, maternity, disability, industrial injury and old age Social Assistance and Welfare Programs Welfare and social services targeted at the sick, the indigent, orphans and other vulnerable groups Cash/in-kind transfers (e.g. food stamps) Temporary subsidies for utilities and staple foods Micro and Area-based schemes (community-based) Micro-insurance schemes
Agricultural insurance Social funds (usually involving the construction, operation and maintenance of small-scale physical public utility and social infrastructure) Disaster preparedness and management Child protection Early child development activities - e.g. basic nutrition, preventative health and educational programs Educational assistance (e.g. school-feeding, scholarships, fee waivers) Health assistance (e.g. reduced fees for vulnerable groups) Street-children initiatives (UCEF) Child rights and advocacy/awareness programs against child abuse, child labour, child rehabilitation trafficly etc. Youth programs to reduce health risks (especially HIV/AIDS and drugs) and anti-social behaviour. Family allowances (e.g. in-kind or cash transfers to assist families with young children to meet part of their basic needs.
Source: Extracted from Vietnam Report, (Derived from I. Qrtiz ed, Defining an Agenda for Poverty Reduction - Proceedings of the First Asia and Pacific Forum on Poverty, Volume 2, p. 57, ADB, Manila, 2002; ADB, Social Protection Strategy, pp. 14-22, Manila, 2001.)
0153045607590
105120135150
BRA
C
GK
DSK
CA
RE
IDF
SSS
Sajid
a
SATU
AD
ESH
TAR
D
AR
SHE
CO
DEC
GA
SHFU
L
BAN
AFU
L
GO
NO
Micro-Health Insurance in Bangladesh: Benefit paid as % of contribution collected
FIGURE A1
Table A3: Annual Expenditures on Social Protection Programs by sub-component (2002-2003) SP COMPONENT/PROGRAMS INSTITUTION/AGENCY EXPENDITURE
(MILLION TAKA) LABOUR MARKET PROGRAMS Rural Social Service (RSS) MSW 202.275 Food/Cash for work MFDM 271.3472 Test Relief (TR) MFDM 165.5 Employment Generation of Women Through Rural Maintenance Programme
Care Bangladesh 716.154421
State Owned Enterprise Retrenchment Programme
Ministry of Finance 6595.26
SUB-TOTAL 7950.536621 SOCIAL INSURANCE PROGRAM Micro Health Insurance Bangladesh (MHIB)
BRAC 0.394172
Micro Health Insurance (MHI) Grameen Kalyan 1.999982 Proshika Savings Scheme (PSS) Proshika 9.03 Life & Micro Health and Livestock Insurance Schemes
Dustha Shastho Kendro(DHK)
0.026354
Insurance Scheme for IGA group members Care Bangladesh 0.115 Micro Insurance/ Emergency Fund Integrated Development
Foundation (IDF) 1.867139
Customers Security Fund (Micro-insurance) BURO Tangail 0.3 Beneficiaries Life Insurance Society for Social Services
(SSS) 0.574
Sajida Health Sajida Foundation 8.269028 Risk Fund Association of Development
for Economic and Social Help
0.012
Risk Management Scheme Technical Assistance for Rural Development (TARD)
0.019
Welfare program for the hard-core poor Association for Rural Save and Human Emancipation (ARSHE)
0.0039
Apatkalin Tahbil Community Development Center (CODEC)
0.38875
Apatkalin Tahbil Bonaful 0.05 Gono Grameen Bima Delta life Insurance Co Ltd 41.839562 SUB-TOTAL 64.888887 SOCIAL ASSISTANCE Rural social services MSW 27.4 Vocational training, employment generation, family welfare and social education for destitute women
MSW 0.159642
Old age allowance MSW 749.5455 Widowed and deserted women MSW 397.73775 Honorary allowance for hard-up freedom MSW 300
fighters Vocational training, employment generation, family welfare and social education for destitute women
MSW 0.159642
Old age allowance MSW 749.5455 Widowed and deserted women MSW 397.73775 Honorary allowance for hard-up freedom fighters
MSW 300
Financial assistance for treatment and rehabilitation of burnt affected poor people
MSW 4.9
Govt. rehabilitation center for vagabonds MSW 1.2 Treatment facilities for poor and disadvantaged patient
MSW NA
Vulnerable Group Feeding (VGF) MSW 997.13734 Gratuitous Relief (GR) MSW 10 Food Based Social Safety Net Program MFDM 18000 Adasha Gram Project(shelter for poor families)
ML 1999
Housing Fund for Distressed MFDM 535 Asrayan project (rehabilitation program for landless poor)
MH 570.6
Skill training program MWCA 11 Slum improvement project in Dhaka City Corporation (1991-96)
DCC 1.14
Urban basic service delivery project for slum dwellers by DCC (1996-2000)
DCC 42.9
Support for basic services in urban (2001-02) DCC 10.3 Environmental sanitation Hygiene and water supply in urban slum and Fringe project (1999-01)
DCC 54
Dhaka integrated flood protection project for slum dwellers (1999-00)
DCC 89
Education program for blind and domb MSW 0.32 Integrated education program for blinds MSW 0.45 Literary program for destitute women(social welfare)
MSW 17.7
Vulnerable Group Development --- Integrated Food Security ---School feeding ---Rural Development
WFP 3802.5
Allocation for welfare of disabled person MSW 10 Providing Primary health care service MSW 11.1 SUB-TOTAL 27643.09023 MICRO AND AREA BASED PROGRAMS
Grameen Bank GB 8562.50 ASA 20014.818 BRAC BRAC 20700.00 Proshika Proshika 4389.22
Buro, Tangail 1082.665 Employment Loan KarmaSangsthan Bank
(Employment Bank) 275.00
RDRS RDRS 393.229 Caritas, Bangladesh Caritas 901.343 Thengamara Mohila Sabuj Sangha (TMSS) 1500.841 Swanirvar Bangladesh 458.30 Shakti Foundation for Disadvantaged Women
842.786
Bangladesh Extension Education Services (BEES)
365.31
Micro Finance Program MSW NA Interest Free Loan MSW NA Interest Free Loan for Destitute Women MSW 79.80 Program on Rehabilitation of Acid- Burnt Women and then Physically Handicapped
MSW 150.00
Loan for Housing MSW 50.00 Micro Finance for Poor Men and Women Through Pally Daridra Bimoson Foundation (PDBF)
RDD 1800.00
(Sub –total) 61565.812 Disaster Management Program on mitigating risk from natural disaster
MSW 250.00
SUB-TOTAL 61815.812 CHILD PROTECTION Financial Allocation for Orphan Children MSW 124.0 Eradication of hazardous child labor MoLE 34.6 Community Learning Community Health Care Family Economic Security Enabling Environment
Plan Bangladesh
175.5
SUB-TOTAL 334.1 GRAND TOTAL 97808.42 Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
Table A4: Beneficiaries of Social Protection Programs in Bangladesh by sub-component (2002-2003)
SP COMPONENT/PROGRAMS INSTITION/AGENCY Beneficiaries (Number)
LABOUR MARKET PROGRAMS Rural Social Service (RSS) MSW 292113 Self Employment for Destitute Women (Sewing Machine)
MSW 1000
Employment Creation Through LGED’s Rural Infrastrature Development Program
MLG 259739
Providing Training Program MSW 8058 Providing Vocational Training MSW 66761 Primary Health Care Training MSW 21682
Employment Generation of Women Through Rural Maintenance Programme
Care Bangladesh 41610
Proshika- Human Development Training Proshika 4835289 Practical skill Development Training Proshika 64593 Urban Power Development Program –Human Development Training and PSD
Proshika 963859
National Training and rehabilitation center for blinds
MSW 52
Education and training program for mentally disabled children
MSW 61
State Owned Enterprise Retrenchment Programme
Ministry of Finance 41086
SUB-TOTAL 6595903 SOCIAL INSURANCE PROGRAMS Micro Health Insurance Bangladesh (MHIB) BRAC 35200 Micro Health Insurance (MHI) Grameen Kalyan 26410 Proshika Savings Scheme (PSS) Proshika 13010000 Life & Micro Health and Livestock Insurance Schemes
Dustha Shastho Kendro(DHK)
2258
Insurance Scheme for IGA group members Care Bangladesh 18368 Micro Insurance/ Emergency Fund Integrated Development
Foundation (IDF) 216000
Customers Security Fund (Micro-insurance) BURO Tangail 106103 Beneficiaries Life Insurance Society for Social
Services (SSS) 100500
Sajida Health Sajida Foundation 50035 Risk Fund Association of
Development for Economic and Social Help
4343
Risk Management Scheme Technical Assistance for Rural Development (TARD)
6419
Welfare program for the hard-core poor Association for Rural Save and Human Emancipation (ARSHE)
501
Apatkalin Tahbil Community Development Center (CODEC)
3221
Apatkalin Tahbil Bonaful 21830 Gono Grameen Bima Delta life Insurance Co
Ltd 757869
SUB-TOTAL 14359057 SOCIAL ASSISTANCE PROGRAMS Rural social services MSW 50435 Vocational training, employment generation, family welfare and social education for destitute women
MSW 294
Old age allowance MSW 499662
Widowed and deserted women MSW 266000 Honorary allowance for hard-up freedom fighters
MSW 50000
Vocational training, employment generation, family welfare and social education for destitute women
MSW 294
Old age allowance MSW 499662 Widowed and deserted women MSW 266000 Honorary allowance for hard-up freedom fighters
MSW 50000
Financial assistance for treatment and rehabilitation of burnt affected poor people
MSW 7680
Govt. rehabilitation center for vagabonds MSW 2487 Treatment facilities for poor and disadvantaged patient
MSW 284066
Vulnerable Group Feeding (VGF) MSW 647664 Gratuitous Relief (GR) MSW 64.97 Food Based Social Safety Net Program MFDM 100000 Adasha Gram Project(shelter for poor families) ML 15500 Housing Fund for Distressed MFDM 15000 Asrayan project (rehabilitation program for landless poor)
MH 16000
Skill training program MWCA 21181 Slum improvement project in Dhaka City Corporation (1991-96)
DCC 31000
Urban basic service delivery project for slum dwellers by DCC (1996-2000)
DCC 200000
Support for basic services in urban (2001-02) DCC 200000 Environmental sanitation Hygiene and water supply in urban slum and Fringe project (1999-01)
DCC 25000
Dhaka integrated flood protection project for slum dwellers (1999-00)
DCC 100000
Education program for blind and domb MSW 346 Integrated education program for blinds MSW 479 Literary program for destitute women(social welfare)
MSW 19245
Vulnerable Group Development Integrated Food Security School feeding Rural Development
WFP 2300000 250000 1200000 250000
Allocation for welfare of disabled person MSW 4539 Providing Primary health care service MSW 74108 SUB-TOTAL 6630750.97 MICROCREDIT AND AREA BASED PROGRAMS
Grameen Bank GB 640796 ASA 154509 BRAC BRAC 574788
Proshika Proshika 42774 Buro, Tangail 36137 Employment Loan KarmaSangsthan Bank
(Employment Bank) 9185
RDRS RDRS 204 Caritas, Bangladesh Caritas 38572 Thengamara Mohila Sabuj Sangha (TMSS) 42125 Swanirvar Bangladesh 18146 Shakti Foundation for Disadvantaged Women 23802 Bangladesh Extension Education Services (BEES)
17423
Micro Finance Program MSW 4702 Interest Free Loan MSW 10259000 Interest Free Loan for Destitute Women MSW 15726 Program on Rehabilitation of Acid- Burnt Women and then Physically Handicapped
MSW 15000
Loan for Housing MSW 2930 Micro Finance for Poor Men and Women Through Pally Daridra Bimoson Foundation (PDBF)
RDD NA
SUB-TOTAL 11895819 Disaster Management Program on mitigating risk from natural disaster
MSW 50000
SUB-TOTAL 11945819 CHILD -PROTECTION Rehabilitation of orphan Children through i) Marriage ii) Employment iii) Education and Training
MSW 316 143 1440
Financial Allocation for Orphan Children MSW 25833 Rehabilitation of the Minor (0-7) Children (baby homes)
MSW 124
Day Care Center for the Children of Low income Employed Women
MSW 101
Training and Rehabilitation of Destitute Children
MSW 1895
Eradication of hazardous child labor MoLE 5000 Vocational Training Programme for Working Children
Dhaka Ahsania Mission
527
Job Placement Programme for Working Children
268
Employment Generation Livelihood Skill Training
1000
Advanced Vocational Training and Job placement
UCEP Under Privileged Children Education Programme
2192
Community Learning Community Health Care Family Economic Security Enabling
Plan Bangladesh
1450000
Environment SUB-TOTAL 1488839 GRAND TOTAL 40.98 (million) Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction” For calculating coverage of SPI for all the programs taken together, we used the total poor as reference population (Table A5).
Table A5: Beneficiaries and Reference Populations of Social Protection Programs in Bangladesh (Coverage of Social Protection Indicators, 2002-2003)
SP Component Beneficiary
(Million) Reference Population (Million)
Coverage (%)
Comments
Labour Market Programs
6.56
16.5 39.98
Percent of unemployed and underemployed in the labor force
Social Insurance 14.36 66.75 21.50
Poor population, cumulative data in case of beneficiary available
Social Assistance 6.63 66.75 9.90 Poor Population Micro/ Area-wide programs 11.95 66.30 17.95
Rural poor population owning land less than 0.5 acres
Child protection 1.48 31.50 4.71 Poor children of age 18 and below
All components 40.98 134.03 30.57 All population; multiple counts.
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction” The last column of Table A5 gives the procedure of working out reference population.
Table A6: Poverty Targeting Rates (Distributional Indicators) Component All
Beneficiary (million)
Poor Beneficiary (million)
Distributional index for SP* (%)
Poor Beneficiary as percentage of total poor beneficiary
1. Labour market 6.56 3.50 5.24 9.47 2. Social Insurance 14.36 14.36 21.50 38.82 3. Social Assistance 6.63 5.71 8.55 15.43 4. Micro/Area –wide program 11.95 11.94 17.89 32.29 Child protection 1.48 1.48 2.22 4.01 All Component 40.98 36.99 55.4 100.00
Note: * Poor beneficiary as percent of total poor population (poor population = 66.75 million). Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction” Table A7: Distribution of Annual Social Protection Indicators by total beneficiary (2002-2003)
SP Component Beneficiary (Million) Distribution (%) Labour Market Programs 6.56 16.0 Social Insurance 14.36 35.04 Social Assistance 6.63 16.17 Micro/ Area-wide programs 11.95 29.16
Child protection 1.48 3.61 Total 40.98 100.00
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction” Table A8: Distribution of Annual Social Protection Indicators by expenditure (2002-2003)
SP Component Expenditure (Tk. million) Distribution (%) Labour Market Programs 7950.53 8.13 Social Insurance 64.89 0.07 Social Assistance 27643.09 28.16 Micro/ Area-wide programs 61815.81 63.20 Child protection 334.10 0.34 Total 97808.42 100
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction” Table A9: Distribution of Annual Social Protection Indicators by poor beneficiary (2002-2003)
SP Component Poor beneficiary (Million) Distribution (%) Labour Market Programs 3.50 9.47 Social Insurance 14.36 38.82 Social Assistance 5.71 15.43 Micro/ Area-wide programs 11.94 32.28 Child protection 1.48 4.0 Total 36.99 100
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction” Table A10: Economic Indicators Indicators 2000-01 2002-03 2003-04 Annual growth
percent GDP at Current Price (billion Taka) 2535.5 3005.8 3325.7 9.5 GDP at constant price (billion Taka) (Base Yr. 1995-96)
2157.4 2371.0 2501.8 5.1
16613 17772 18504 3.65 Per Capita GDP at constant price (Taka) US$ 362 389 421
Agriculture
25.03 23.47 22.83
Industry 26.20 27.24 27.80
Sectoral Share of GDP at constant price (%)
Services 48.77 49.30 49.37 82.0 81.8 81.7 77.5 76.4 76.3
Consumption as % of GDP Private Public 4.5 5.4 5.4 Investment as % GDP 23.1 23.4 23.6 Total Govt. Expenditure as % of GDP 15.4 13.4 13.5 Gross Fixed capital formation (billion Taka)
585.4 703.5 784.2
Inflation Rate (base 1995/96) 2.8 2.8 5.9 Source: Bangladesh Economic Review (various years)
Table A11: Total population, labor Force, participation rate Number (millions) Indicator 1995-96 1999-2000
Annual growth rate
Total Population 120.3 127.5 1.54 Popln 15+ 69.4 74.2 1.69 Labour Force 36.1 40.7 1.30 Dependency ration (economic) - 138 percent
54.0 54.9 0.4 87.0 84.0 -0.89
Labour Force participation rate Male Female
15.8 23.9 10.9
3.5 4.8 8.2 2.8 3.4 5.0
Unemployment rate Male Female 7.8 7.8 0.0
- - 7.0 - - 9.7
Child labour as percent of Child Popln Male Female
- - 4.0
Source: LFS 1999-2000, BBS August 2002
Table A12: Incidence of Poverty Head Count Ratio (in pecent) Division National Rural Urban Bangladesh 49.8 53.1 36.6 Barisal 39.8 40.0 37.9 Chittagong 47.7 48.4 44.0 Dhaka 44.8 52.9 28.2 Khulna 51.4 52.2 47.1 Rajshahi 61.0 62.8 48.1
Source: BBS, Household Income and Expenditure Survey 2000, BBS 2003.
Table A13: Trends in Poverty and Inequality Indicator 1991/92 2000 Change per year (in percent)
National 58.8 49.8 -1.8 Urban 44.9 36.6 -2.2 Headcount Rate Rural 61.2 53.1 -1.6 National 17.2 12.9 -2.9 Urban 12.0 9.5 -2.5 Poverty Gap Rural 18.1 13.8 -2.8 National 6.8 4.5 -4.5 Urban 4.4 3.4 -2.8 Squared Poverty Gap Rural 7.2 4.8 -4.4 National 0.259 0.306 1.9 Urban 0.307 0.368 2.0
Gini Index of Inequality
Rural 0.243 0.271 1.2 Source: BBS, Household Income and Expenditure Survey, 2000, & World Bank, March 2003