Welcome to My Presentation

POVERTY REDUCTION TRENDS AND STRATEGIES

Presented by-

Md. Abdul AwalRoll no-22

B59 Foundation Training Course

Presentation outlineINTRODUCTION

CONCEPT OF POVERTY

APPROACHES TO POVERTY MEASUREMENT

HISTORICAL BACKGROUND OF POVERTY IN BANGLADESH

TRENDS OF POVERTY

CAUSES OF POVERTY

STRATEGIES TO REDUCE POVERTY

CONCLUSION

Introduction

Poverty alleviation is the major developing agenda in Bangladesh

Decreased to 24 percent from 70 percent in early 1970s

What is Poverty? Lacks the financial resources and essentials to enjoy a minimum standard of life

Malnutrition, ill health, poor housing conditions, and illiteracy

Absolute deprivation, Relative deprivation.

Approaches to Poverty Measurement

Income poverty

measurement

Head count ratio methodIf Q is the number of poor in a population of size N, then the head count index can be written as

Q H = --------

N

Direct Calorie Intake (DCI) Method

Absolute poor

• Calorie intake of less than 2,122 kcal per capita per day

Hard-core poor

• If less than 1805 kcal per capita per day

Cost of Basic Needs (CBN) Method

A household with per capita expenditure below the poverty line is considered as poor

Cost of Basic Needs (CBN) MethodUnder this method, three steps are involved:

Estimation of food

poverty line

Estimation of lower and upper allowance

s for non-food

items

Estimation of lower and

upper poverty lines.

Cost of Basic Needs (CBN) Method

Lower Poverty Line = Food poverty line + Lower non-food allowance

Upper Poverty Line = Food poverty line + Upper non-food allowance

Multidimensional Poverty Index (MPI)

It shows the number of people who are multi-dimensionally poor

The index uses three dimensions: health, education, and standard of living.

Multidimensional Poverty Index (MPI)MPI is measured using ten indicators:

Years of schoolingChild school

attendance

Child Mortality

Nutrition

ElectricitySanitation

Drinking water

Floor

Cooking fuel

Assets ownership

Historical background of Poverty in Bangladesh

Discrimination against

East Pakistan

Industrialization in West

Pakistan took place at the

cost of deprivation of the province in

the East

one third of the national wealth of Bangladesh was damaged

in 1971

Crop failure and disruptions in

flow of food aid to the country in 1974 aggravated

the situation

People below the poverty

line in Bangladesh

reached 83% in 1975

In 1981-82, the figure was 74%

The economy was in

stagnation and suffered a new

setback because of devastating floods of 1987

and 1988

Almost half of the country's

population lived below the

national poverty line during the period 1990-

2004

Trends of poverty

During the period from 2000 to 2005, the rate of income poverty declined from 48.9 percent to 40.0 percent.

The compound poverty reduction rate per year was recorded at 3.9 percent.

Trends of poverty

During the period from 2005 to 2010, the rate of income poverty declined from 40.0 percent to 31.5 percent.

The compound poverty reduction rate per year was recorded at 4.67 percent.

Trend of Incidence of Poverty Estimated through CBN Method (For Upper Poverty line)

50.1 48.9

4031.5

National

From 1995 to 2010

Trend of Incidence of Poverty Estimated through CBN Method (For Upper Poverty line)

54.5 52.3

43.8

35.250.1 48.9

4031.5

NationalRural

From 1995 to 2010

Trend of Incidence of Poverty Estimated through CBN Method (For Upper Poverty line)

27.835.2

28.4 21.3

54.5 52.3

43.8

35.2

50.1 48.9

4031.5 National

RuralUrban

From 1995 to 2010

Trend of Incidence of Poverty Estimated through CBN Method (For Lower Poverty line)

35.1 34.3

25.1

17.6National

From 1995 to 2010

Trend of Incidence of Poverty Estimated through CBN Method (For Lower Poverty line)

39.4 37.9

28.6

21.1

35.1 34.3

25.1

17.6

NationalRural

From 1995 to 2010

Trend of Incidence of Poverty Estimated through CBN Method (For Lower Poverty line)

13.7

2014.6

7.7

39.4 37.9

28.6

21.1

35.1 34.3

25.1

17.6

NationalRuralUrban

From 1995 to 2010

Trends of poverty(….cont)

Bangladesh reduced its poverty by 24.47 percent in 2014 against the target of 29.0 percent on the basis of MDG within 2015.

This indicates that the MDG related to poverty reduction has already been achieved by Bangladesh.

Causes of Poverty

Stagnant economic growth (around 6%)

Inequitable

distribution of

income

Lack of access to

productive assets

Lack of employment opportunitie

s

Lack of education and skills

Over populatio

n

Natural disaster (floods, cyclone, drought,

etc.)

Inadequate adoption of modern agricultura

l technologi

es

Political instability

Lack of good

governance

Strategies for Poverty Reduction

Bangladesh has set a vision to eradicate extreme poverty from the country and enter into the middle income country by 2021.

It has already been entered into the lower middle income country.

The Government aims at reducing poverty rate at 22 and 15 percent by 2015 and 2021 respectively.

Strategies for Poverty Reduction

Promote growthEnhance the access

of the poor to production inputs

Expand employment opportunities

through connectivity with

growth poles

Undertake entrepreneurship

development scheme for the

returnee migrant

Stimulate women’s

participation in the labor force

Promote overseas labor market

Enhance the access of poor to

micro finance

Strengthen the coverage of

social safety net programmes

Mitigate the adverse consequences of climate change

Allocation Pattern of Social Safety Net Programmes

24,042.8026,654.01

30,636.00

37,546.00

(2012-13) (2013-14) (2014-15) (2015-16)

Strategies for Poverty ReductionIn Budget 2015-2016, against total expenditure of 295,096.00 crore, total poverty reduction expenditure is projected 143,059.90 crore which is 52.85% of total budget and 9.09% of GDP of which, 27.24% will be expended directly and 25.61% will be expended indirectly for poverty reduction through different Ministries.

In last budget which was 124,657.90 crore (26.41% of total budget) against the total of 239,664.00 crore.

ConclusionBangladesh is trapped in the 6 percent growth trajectory for the time being; its ultimate target is to transcend this cycle and move onto a higher growth path to transform country into a developed nation by 2041

Mutual tolerance and responsible behavior from all political parties will promote democratic culture and ensure greater welfare of the people

THANK YOUANY

QUESTIONS?