Bangladesh Economic Review 2020

CHAPTER THIRTEEN
POVERTY ALLEVIATION

Bangladesh has achieved an outstanding development in poverty alleviation during last decade
because of successive nonstop endeavors of the government. According to household income and
Expenditure Survey (HIES) 2016, poverty rate declined to 24.3 percent in 2016, which was 40.0
percent in 2005, as a result of efficient implementation of different government and non-government
development programmes According to the 7th Five Year Plan, it has been targeted to reduce
poverty rate at 18.6 percent by 2020. In order to attain the desired target of poverty alleviation, the
government provides special priority in social safety net programmes. For this reason, the scope
and allocation of social safety-net programmes are being extended every year. Bangladesh follows
the life cycle approach of social safety-net programme with a view to bringing efficiency and
effectiveness. For this purpose, Bangladesh has already formulated ‘National Social Security
Strategy (NSSS)’. A total of Tk. 74,367 crore has been allocated against social safety net programme
in 2019-20 national budget, Currently, the government is working for acquiring poverty and hunger
related targets to the Sustainable Development Goals (SDGs). The government has fixed up the
target to reduce poverty rate at 9.7 percent and malnutrition rate less than 10 percent by 2030.
Different government and non-government institutions, autonomous bodies carry out various
activities including providing microcredit to accomplish the government’s efforts of poverty
reduction. the government has also implementing some special projects for instance ‘Aktee Bari
Aktee Khamar’ (One House One Farm), ‘Ashrayan’, ‘Grihayan,’ ‘Ghore Phera’ in order to make a
hunger and poverty free country. In addition, the government offers allowances for widows, destitute
women, old aged people and so on.
2009. The government has set up a target to
Poverty Situation in Bangladesh
reduce the poverty to 18.6 percent at the end
Poverty alleviation is one of the major of the 7th Five Year Plan (2016-2020).
indications of the socio-economic Though, Bangladesh is ahead of many
development of a state and society. As a developing countries in poverty alleviation,
result of collective efforts of the government still approximately one-fifth portion of total
and non-government sectors, Bangladesh has population of the country lives below the
achieved tremendous development in poverty poverty line. The preferred scale of socio-
alleviation during the last few years. economic development may not be possible
According to house hold income and by keeping a large portion of population
Expenditure Survey (HIES) 2016. Poverty rate below the poverty line. For this reason,
declined to 24.3 percent in 2016, which was 40.0 poverty reduction is a major concern on the
percent in 2005, According to the latest policy and development issues of the country.
estimate poverty rate stood at 20.5 percent in As a result of poverty reduction, a progress is

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found in World Human Development Index. as Household Income and Expenditure

According to ‘Human Development Index- Survey (HIES). The same method applied in
2018’ Bangladesh’s position was 135 among the HIES’ in 2000-2016. This method also
189 countries. In 2016, Bangladesh was 139 considered non-food consumption items for
in the list. compiling poverty index.
Measurement of Poverty Incidence in Trends of Poverty
Bangladesh The latest HIES was conducted in 2016.
The first Household Expenditure Survey According to the result of this survey, With in
(HES) in Bangladesh was conducted in half an era, the incidence of income poverty
FY1973-74 and up to FY1991-92, few HES (measured by CBN considering the upper
were carried out following the same poverty line) declined almost 7.2 percentage
strategies. HES’ were accomplished by Food points (from 31.5% in 2010 to 24.3% in
Energy Intake (FEI) and Direct Calorie Intake 2016). During this period, the compound
(DCI) method. According to this method, a poverty reduced per year 4.23 percent. On the
man having calorie intake of less than 2,122 contrary, the rate of income poverty declined
kilo-calories per day is considered as absolute from 40.0 percent to 31.5 percent from 2005
poor. Conversely, a man having an intake of to 2010. At that time, compound poverty
below 1,805 kilo-calories is measured as annually reduced by 4.67 percent. In rural
hard-core poor. The Bangladesh Bureau of areas poverty reduction rate is higher (4.68%)
Statistics (BBS) has adopted ‘Cost of Basic than urban areas (1.97%). The trends of
Needs (CBN)’ for HES for the first time in poverty are depicted in Table 13.1
1995-96 and renamed the title of the survey

Table 13.1: Trend of Income Poverty

Annual Change (%) Annual Change (%)

2016 2010 2005
(2010 to 2016) (2005 to 2010)
Head Count Index
National 24.3 31.5 -4.23 40.0 -4.67
Urban 18.9 21.3 -1.97 28.4 -5.59
Rural 26.4 35.2 -4.68 43.8 -4.28
Poverty Gap
National 5.0 6.5 -4.28 9.0 -6.30
Urban 3.9 4.3 -1.61 6.5 -7.93
Rural 5.4 7.4 -5.12 9.8 -5.46
Squared Poverty Gap
National 1.5 2.0 -4.68 2.9 -7.16
Urban 1.2 1.3 -1.33 2.1 -9.15
Rural 1.7 2.2 -4.21 3.1 -6.63
Source: BBS, HIES-2016.

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Household Income, Expenditure and expenditure and consumption is that

Consumption ‘consumption’ excludes lumpy expenditures
like durable goods purchases and some other
The statistics of household nominal income,
expenditure such as payment of tax,
expenditure and consumption from the
insurance, expenses of pilgrimage/hajj,
surveys 1995-96 to 2016 have been provided
marriage and so on. However, ‘expenditure’
in Table 13.2. The difference between
includes all such expenses.

Table 13.2: Monthly Household Nominal Income, Expenditure and Consumption Expenditure by
Residence
Average Monthly (Taka)
Year of
Residence Consumption
Survey Income Expenditure
Expenditure
National 15988 15715 15420
2016 Rural 13398 14156 13868
Urban 22600 19697 19383
National 11479 11200 11003
2010 Rural 9648 9612 9436
Urban 16475 15531 15276
National 7203 6134 5964
2005 Rural 6095 5319 5165
Urban 10463 8533 8315
National 5842 4881 4537
2000 Rural 4816 4257 3879
Urban 9878 7337 7125
National 4366 4096 4026
1995-96 Rural 3658 3473 3426
Urban 7973 7274 7084
Source: BBS, HIES-2016.

The Table 13.2 expresses that: which increased to Tk. 15,715 in 2016.
The increase has been 3.84 times.
 Household nominal income, expenditure
 The average monthly household
and consumption expenditure have been
expenditure was also increased both at
increased gradually
rural and urban level. In 2016 rural
 In 1995-96, the monthly household
expenditure was Tk. 14,156 which is
nominal income was Tk. 4,366; which
higher than rural income (Tk. 13,398).
boosted up 3.66 times and rose to Tk.
This incidence occurred for the first time
15,988 in 2016. Like income,
in the history of Bangladesh.
expenditure and consumption
 In a general analysis it is found that
expenditure have also raised to a
since 1995-96 the increase rate of
continuous speed. In 1996, household
expenditute and consumption expenditue
monthly expenditure was Tk. 4,090
is higher than that of income.

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Deciles Distribution of Income and Gini groups and Gini co-efficient in rural and
Co-efficient urban areas are presented in Table 13.3.
According to the surveys conducted in 2010
and 2016, the ratio of income by deciles

Table 13.3: Percentage Distribution of Income Accruing to Households in Groups (Deciles)

at National Level and Gini Co-efficient
Household Income Group 2016 2010
National Rural Urban National Rural Urban
100.00 100.00 100.00 100.00 100.00 100.00
Lower 5% 0.23 0.25 0.27 0.78 0.88 0.76
Decile-1 1.02 1.06 1.17 2.00 2.23 1.98
Decile-2 2.83 2.99 3.04 3.22 3.53 3.09
Decile-3 4.05 4.36 4.1 4.10 4.49 3.95
Decile-4 5.13 5.52 5.00 5.00 5.43 5.01
Decile-5 6.28 6.58 6.15 6.01 6.43 6.31
Decile-6 7.48 7.89 6.88 7.32 7.65 7.64
Decile-7 9.06 9.52 8.88 9.06 9.31 9.30
Decile-8 11.25 11.80 10.4 11.50 11.50 11.87
Decile-9 14.86 15.51 13.47 15.94 15.54 16.08
Decile-10 38.09 34.78 41.37 35.85 33.89 34.77
Top 5% 27.82 24.19 32.09 24.61 22.93 23.39
Gini Co-efficient 0.482 0.454 0.498 0.458 0.431 0.452

Source: HEIS, 2016.

Through a common analysis of Table 13.3, it  The percentage share of income of the
is observed that- lowed 5 percent households slightly
decreased in 2016 compare to 2010. It was
 Despite 50 percent of the total population 0.23 percent in HIES 2016 whereas 0.78
belongs to decile-1 to decile-5, the income percent in 2010. The income share of top 5
share of the households jointly shares only percent households increased 3.21 percent
19.27 percent of total income, Conversely, in 2016. Above all, Gini co-effcient
the share of these five deciles was together increased in 2016 than in 2010.
20.33 percent of total income in 2010. This
points out that share of income by the Deciles Distribution of Consumption and
Gini Co-efficient
lower five deciles comprising lower 50
percent people is 1.06 percent lower in The Table 13.4 points out deciles distribution
2016 than that of 2010. of consumption of HEIS 2016 and 2010 by
residence for the surveys:

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Table 13.4: Deciles Distribution of Consumption by Residence HIES 2016 and 2010
Household Expenditure 2016 2010
Group
National Rural Urban National Rural Urban
Total/ Deciles 100.00 100.00 100.00 100.00 100.00 100.00
Decile-1 3.7 4.00 3.44 3.85 4.36 3.40
Decile-2 4.94 5.28 4.75 5.00 5.57 4.66
Decile-3 5.80 6.14 5.67 5.84 6.41 5.54
Decile-4 6.64 6.96 6.55 6.63 7.22 6.42
Decile-5 7.51 7.81 7.51 7.48 8.03 7.37
Decile-6 8.54 8.79 8.60 8.48 8.97 8.48
Decile-7 9.84 9.94 10.07 9.73 10.01 10.01
Decile-8 11.59 11.58 11.91 11.49 11.63 12.03
Decile-9 14.61 14.15 15.26 14.59 14.07 15.06
Decile-10 26.83 25.35 26.23 26.90 23.63 27.03
Gini Co-efficient 0.324 0.300 0.330 0.321 0.275 0.338
Source: BBS, HIES-2016

whereas 0.300% in 2016). On the other

Table 13.4 discloses that-
hand, in the urban area a small reduction
 Consumptions of families belonging to of Gini co-efficient occurred in 2016
deciles 1, 2, 3 and 10, reduced a little in compared to 2010 (0.330% in 2016
2016 than 2010. Conversely, whereas 0.338% in 2010).
consumptions of other deciles groups
Head Count Ratio (HCR) on the Basis of
increased slightly.
CBN Method in 8 Divisions
 There is slight increase but not
significant change of Gini co-efficient of The head count ratio of incidence of poverty
consumption in 2016 with respect to in eight administrative divisions using CBN
2010. method is described in Table 13.5.
 In the rural area, Gini co-efficient
increased a little (0.275% in 2010
Table 13.5: Division wise Incidence of Poverty (HCR) by CBN Method (in percentage)

Divisions 2016 2010

Using the Upper Poverty Line
Total Rural Urban Total Rural Urban
Dhaka 16.0 19.2 12.5 30.5 38.8 18.0
Sylhet 16.2 15.6 19.5 28.1 30.5 15.0
Chattogram 18.4 19.4 15.9 26.2 31.0 11.8
Barishal 26.5 25.7 30.4 39.4 39.2 39.9
Khulna 27.5 27.3 28.3 32.1 31.0 35.8
Rajshahi 28.9 30.6 22.5 29.8 30.0 29.0
Mymensing 32.8 32.9 32.0 - - -
Rangpur 47.2 48.2 41.5 42.3 44.5 27.9

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Divisions 2016 2010

Using the Upper Poverty Line
Total Rural Urban Total Rural Urban
Using the Lower Poverty Line
Dhaka 7.2 10.7 3.3 15.6 23.5 3.8
Chattogram 8.7 9.6 6.5 13.1 16.2 4.0
Sylhet 11.5 11.8 9.5 20.7 23.5 5.5
Khulna 12.4 13.1 10.0 15.4 15.2 16.4
Rajshahi 14.2 15.2 10.7 21.6 22.7 15.6
Barishal 14.5 14.9 12.2 26.7 27.3 24.2
Mymensing 17.6 18.3 13.8 - - -
Rangpur 30.5 31.3 26.3 27.7 29.4 17.2
Source: BBS, HIES-2016.

Table 13.5 indicates that,  Urban poverty in Sylhet and Chattogram

 Except Rangpur division poverty rate division increased in 2016 though the
average poverty rate decreased compare to
reduced in all other division in 2016
2010.
compare to 2010.
 Rangpur division has the highest incidence Picture of Poverty Situation
of poverty at 47.2 percent. On the other According to ‘SDGs: Bangladesh Progress
hand, Dhaka division has the lowest Report-2018’ the country’s poverty rate is
incidence of poverty at 16.0 percent. 21.8 percent. According to the 7th Five Year
 Incidence of poverty has appreciably Plan, it has been projected to reduce poverty
declined in Dhaka division compared to at 18.6 percent by 2020 on the basis of upper
other divisions. The reduction rate is poverty rate and 8.9 percent on the basis of
almost half (16% in 2016 from 30.5% in lower poverty rate. The Table 13.6 depicts the
2010). projection of decreasing poverty rate during
 In Barishal, Khulna and Sylhet division, the 7th Five Year Plan.
poverty rate is higher in urban areas than
rural areas and
Table 13.6: Projection of Poverty Alleviation during 7th Five Year Plan
Poverty Line 2016 2017 2018 2019 2020
Poverty Elasticity to GDP -0.93 -0.93 -0.93 -0.93 -0.93
Reduction of Moderate Poverty
Upper poverty line
23.5 22.3 21.0 19.8 18.6
(% of population)
Poverty Elasticity to GDP -1.19 -1.19 -1.19 -1.19 -1.19
Reduction of Extreme Poverty
Upper poverty line 12.1 11.2 10.4 9.7 8.9
(% of population
Source: General Economics Division. Planning Commission

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the targets of SDGs during the 7th FYP and

Sustainable Development Goals (SDGs) and
until 2030. The latest publication about SDGs
Bangladesh
is Sustainable Development Goals:
The United Nations declares ‘Sustainable Bangladesh Progress Report-2018’. This
Development Goals (SDGs) for 2016-2030 book is the first formal report on
period. It is also known as ‘Agenda 2030’. A implementation progress of SDGs in
Chief Co-coordinator of SDGs Affairs has Bangladesh. In this report the goal wise
been appointed in the Prime Minister’s Office progress has been described. On the contrary,
in order to effective review of this agenda. the challenges on implementing the targets
General Economics Division (GED) of have been identified with way forward.
Planning Commission plays the secretarial
role of all types of SDGs programmes. Ongoing Social Safety-net Programmes
The government has been continuing the
For effective implementation of SDGs, GED
social safety net programmes with a view to
has published ‘Mapping of Ministries by
alleviating poverty through improvement of
Targets in the Implementation of SDGs
socio-economic condition of the ultra-poor.
aligning with 7th Five Year Plan’. According
to this publication 40 Ministries/Divisions The government has adopted the life cycle
including PMO and Cabinet Division have approach of social safety net. In FY2019-20
been identified as lead Ministries/Division to a total of Tk. 74,367 crore has been allocated
169 targets of SDGs. Another book ‘Data Gap for social safety net programmes. The
Analysis for Sustainable Development Goals’ allocation is 14.21 percent of the budget and
has been published with a view to collecting 2.58 percent of GDP of the same fiscal year.
information for proper monitoring and The government has been implementing
evaluations of SDGs. some general safety net programmes such as
A book titled ‘SDG Financing Strategy: ensuring food security, distribution of free
Bangladesh Perspective’ has been published food, food for work and test relief and so on.
to estimate the resources needed for Apart from, the government has also
implementing SDGs. In addition to that, implementing some special projects for
‘National Monitoring and Evaluation instance ‘Aktee Bari Aktee Khamar’ (One
Framework of SDGs: Bangladesh House One Farm), ‘Ashrayan’, ‘Grihayan,’
Perspective’ has been formulated for ‘Ghore Phera’ in order to make a hunger
monitoring and evaluating the and poverty free country. In addition, the
implementation of SDGs. Moreover, government offers allowances for widows,
‘National Action Plan of Ministries/ destitute women, old-aged people and so on.
Divisions by Targets for the Implementation The Palli Sanchoy Bank (Rural Savings
of SDGs’ has been published by GED. The Bank) has already been established with a
plan will act as a guideline for the Ministries/ view to encouraging rural savings and its
Divisions to determine the types of projects/ utilisation.
programmes which will be needed to achieve
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The government has formulated ‘National Important Social Safety-net programmes

Social Security Strategy (NSSS)’ to reform the in FY2019-20
prevailing social security system and ensure a. Scope and allocation of cash transfer
efficiency and effectiveness of safety -net allowance such as old aged allowance, widow
programmes. According to this strategy, the and destitute women allowance, freedom
ongoing social security programmes of fighters’ honorarium, allowance for orphans
Bangladesh have been classified into five and disabled and food safety programme has
schemes on the basis of life cycle approach. been increased.
These are: (a) schemes for children; (b)
schemes for the labour force; (c) pension for b. Allocation of Tk. 2,640.00 crore, Tk.
old aged people; (d) programmes for disable 1020.00crore and Tk. 3,385.05 crore have
people and (e) small and special programmes. been made for old aged allowance, widow
and destitute women allowance and
Ministries engaged in implementation of honorarium for freedom fighters respectively.
social safety-net programmes have been
grouped into five clusters, each with a lead c. Necessary efforts have been taken to
co-coordinating ministry. The thematic continue the speed of microcredit and
programme clusters are: (1) social allowance, investment fund which are deposited to Palli
(2) food security and disaster assistance, (3) Karma Sahayak Foundation (PKSF) and
social insurance, (4) labour/livelihood Social Development Foundation (SDF).
interventions and (5) human development and A total of Tk. 1084.00 crore has been allotted
social empowerment. Implementing for this sector. Out of this amount Tk. 785.00
ministries have the responsibility of designing crore will be used for PKSF financial
and effective implementation of programmes. assistance programme, Tk. 235.00 crore for
The implementing ministries will have to SDF microcredit programme and Tk. 6.00
coordinate with other ministries in their own crore for women self-employment
cluster. microcredit programme. The budget
allocations of FY2018-19 and FY2019-20
depict in the Table 13.7:

Table 13.7: Allocation Pattern of Social Safety-net Programmes and Social Empowerment
(In Crore Taka)
Programmes Budget (2018-19)Revised Budget 2019-20

Cash Transfer (Special and various allowances) Programmes 32161.43 34414.44

Food Security Programmes: Social Protection 11754.11 14528.75
Micro Credit Programmes : Social Empowerment 678 1084
Miscellaneous funds: Social Empowerment 757.25 792.45
Miscellaneous funds: Social Protection 1424.26 2615.67
Ongoing Development Projects 17036.32 18539.80
New Development Projects 17629.16 20931.62
Total 64,404 74,367
Source: Finance Divisio

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Cash Transfer under Social Safety-net Maternity Allowance for Poor Mother
Programmes
This programme introduced as social safety-
The government provides cash transfer under net programme in FY2007-08 in order to
social safety-net programme along with food provide financial assistance to the poor
assistance, food for work, OMS and so on. In mother. It not only gives allowance facilities
FY2019-20 an amount of Tk. 34,414.44 crore but also arranges different types of awareness
has been allocated for cash transfer (special building training related to health and
and various allowances) programmes, social nutrition. Earlier, a poor mother gets Tk. 500
empowerment and some other activities. each month under this programme. From the
Some selected cash transfer programmes FY2018-19, the allowance increases into Tk.
under the overall social safety-net programme 800 per month. In addition, the term of the
are described in brief below: allowance extends to 36 months from 24
Old Age Allowance Programme months. The number of beneficiaries
increases to 7 lakh 70 thousand in FY2019-20
This programme is initiated in 1997-98. In the
from 7 lakh in FY2018-19.
beginning, 5 men and 5 women per ward
were paid Tk. 100 the number of beneficiaries Working Lactating Mother Assistance
and allowance rate has been increased Fund
gradually. Poor and risky elderly people, in This programme started since FY2010-11
case of men who are 65 and in case of women with a view to providing financial assistance
who are 62 will be under this programme. to the urban poor working lactating mothers.
The number of beneficiaries has been Earlier, a poor lactating working mother
increased from 40 lakh to 44 (lakhs) in the receives amount of Tk. 500 per month up to
FY2019-20, who will receive Tk. 500 as 24 months. From FY2019-20, amount and
monthly allowance. Among the 44 lakhs duration has been increased. Now, a lactating
Beneficiaries half of them are elderly women. mother gets Tk. 800 per month for 36 months.
Allowance Programme for Widow, Currently, the programme is restricted to the
Deserted and Destitute Women lactating mothers in Dhaka, Narayanganj, and
Gazipur garments areas and all city
In order to protect and empower the poor,
corporations/ municipalities of the country.
risky and disadvantaged women, the
In FY2019-20, 2.75 lakh poor lactating
government of Bangladesh introduced the
mothers has been provided under this
'Widow and Husband Deserted Women
programme.
Allowance' programme in 1998-99. Initially,
Honorarium Programme for Freedom
under this programme, 4.03 lakh women
Fighters
received Tk. 100 as monthly allowance. The
number of beneficiaries has been increased The government has been working
from 14 lakhs people to 17 lakhs in FY2019- relentlessly for improving the lifestyle of
20, who are receiving Tk. 500 as monthly freedom fighters, the heroes of the nation. At
allowances. present, a freedom fighter gets Tk. 12,000.00

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per month as honorarium. Moreover, the Training and Microcredit Programme for
government also increases the honorarium of the Freedom Fighters and their
the title holder freedom fighter. Currently, the Dependents’ Self-employment
government provides Tk. 35,000.00 to the This programme has been implemented to
Birshrestha, Tk. 25,000.00 to Biruttom, Tk. provide skill development training to the
20,000.00 to Birbikram and Tk. 15,000.00 to insolvent freedom fighters and their
the Birprotik per month as honorarium. dependents. It improves the living standards
Furthermore, in FY2018-19, every Freedom and creates employment opportunities for
Fighter who is alive has been given Tk. 5,000 them. Microcredit is delivered to them with a
as Victory Day Allowance and for all view to creating self-employment by utilising
Freedom Fighters, 20 percent of the the training skill. From FY2003-04 to
honorarium has been given as Bangla New FY2018-19, a total of Tk. 38.25 crore
Year allowance. In FY2018-19, a total of Tk. allocated for this programme as revolving
3,305.00 crore has been allocated for this fund. In FY2019-20, Tk. 75.00 lakh
programme. Presently a total of 84,106 earmarked for this programme. Moreover, it
Freedom Fighters or their dependents from 37 has been estimated to distribute Tk. 9.00
districts have been given the monthly crore as loan and to recover Tk. 10.00 crore
honorarium being distributed electronically during the current fiscal year under this
through G2P. programme.

Honorarium and Medical Allowance for Allowance for the Financially Insolvent
Injured Freedom Fighters and Shaheed Disabled Citizens
(Martyr) Families The Government of Bangladesh is
The government is also working for the implementing a multi-faceted programme
under the Social Security Programme through
welfare of the family of martyrs and war-
the Ministry of Social Welfare to establish the
wounded freedom fighters. Separate
constitutional rights of persons with
programmes have been initiated for the
treatment and honorarium of martyr’s family disabilities and to implement national and
international commitment. In continuation of
and war-wounded freedom fighters. This
this, the Insolvent Disability Allowance
programme was introduced with a view to
Programme was introduced in the FY2005-
improving living standards and retains the
06. Under this programme, an allowance was
sound health of the wounded freedom fighters
given at the rate of Tk. 200 to 1 lakh 4
and member of shaheed families. In FY2019-
thousand 166 disabled people. The number of
20, an amount of Tk. 456.99 crore has been
allocated for this programme. Those beneficiaries has increased from 10 lakh to 15
lakh 45 thousand in the FY2019-20, who are
programmes will play a significant role in
receiving 750 Tk. as monthly allowance.
improving the quality of living standard and
health care of the war wounded and martyrs
freedom fighters’ families.

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Stipend for the Disabled Students beneficiaries in the FY2019-20 is 10,000

thousand.
With the aim of ensuring education for the
children with disabilities that they can Development of the Living standards of the
participate in national development through backward community:
higher education, the Government launches The present government has taken various
'Education Scholarship Programme for activities to improve the quality of life of the
Students with Disabilities' through the backward people to integrate them into the
Ministry of Social Welfare in the FY 2007- mainstream of society. From the FY2012-13
08. Initially, Under this programme allocation to the next FY2018-19, development
was for 12,209 person, stipends is being programmes of the Gypsy and the backward
provided at the primary, secondary, higher- people were two together. The programme is
secondary and higher levels at monthly rates separated from the FY2019-20 and is being
of Tk. 750, 800, 900 and 1300. The number run as a separate programme called ‘Living
of beneficiaries have been increased from standards development programme for the
90,000 thousand to 1 lakh in the FY2019-20. backward people’. In FY2019-20, a total of
Capitation Grant for Non-government Tk. 57.87 crore has been allocated for this
Orphanage programme.
The government allocates capitation grant for
Programme for Improving the Livelihood
the non-government orphanages. Capitation
of Transgender (Hizra) People
grant is provided for up to a maximum of 50
percent orphans in a private orphanage The government works for the transgender
registered by the Department of Social (Hizra) people, the neglected community of
Services. A grant of Taka 232.80 crore is the society. In FY2012-13, the government
provided to 96,250 residents during FY2019- started this programme at seven districts as
20. pilot basis. Now, the programme is executing
whole of the country. In FY2019-20, a total
Development of the Living standards of the of Tk. 5.56 crore has been allocated for this
gypsy community: programme. It is estimated that 7,650
During the period 2012-13, the programme transgender people directly benefited through
started to improve the standard of living of this programme.
the people of Gypsy, Dalits and Harijans by
Programmes under Food Assistance
transforming them into skilled manpower.
Initiatives Open Market Sale (OMS)
The programme was implemented in seven
districts of Dhaka, Chattogram, Dinajpur, This programme is initiated to ensure the
Patuakhali, Jessore, Naogaon and Habiganj food security of the low income people. As a
districts as a pilot project, respectively. Now result, people of low and limited income can
this programme is being implemented in 64 purchase flour and rice. In FY2019-2020
districts. The amount allocated in FY2019-20 (February, 2020), 0.08 lakh MT of rice and 2.03
is about 9.23 crore. The total number of lakh MT of flour have been distributed.

Chapter 13- Poverty Alleviation ‫׀‬241‫׀‬

Bangladesh Economic Review 2020

Food For Work (Kabikha) and Taka For Employment Programme for Ultra-Poor
Work (Kabita) Programmes: In FY2009-10, the activities started in the
Ministry of Disaster Management and Relief whole country by giving preference to the
conducts these programme. This programme poorest and workable people of rural areas.
has been operating for rural infrastructure The objective of the programme is to: (a)
renovation. A total of Tk. 1498.65 crore has Increase employment and purchasing power
been allocated for this programme in the for the poorest unemployed people in
FY2019-20. Bangladesh; (b) Create wealth for the
population and the country in general; and (c)
Vulnerable Group Feeding (VGF)
Improve infrastructure and communication
Programme
development, proper maintenance and
Generally, this assistance is provided to the development of environment. In FY2019-20,
families affected by the disaster after the allocation of Tk. 821.38 crore has been
disaster has been restored. This assistance is recieved.
provided to every family for 20 to 40 kg
monthly 2 to 5 months. Besides, the Social Protection Activities to combat
COVID-19
fishermen who are abstaining from mother
hilsa and jatka are also getting VGF To protec the poor from the adverse effects of
assistance. Poor people also get VGF help at Coronavirus, as part of stimulus programme,
various religious festivals. In FY2019-20, the government has expanded the scope of
1,49,980.90 MT food grains have been Social Safety Net by increasing the number of
distributed for this programme. beneficiaries of old-age allowances, widow
and divorce allowances and disability
Test Relief (TR) programme
allowances by 11 lakhs. Alongside, to protect
In FY2019-20, an amount of Tk. 1,530 crore the ultra-poor who have become jobless and
has been allocated under this programme. Out lost their income due to the outbreak of
of this, a total of Tk. 88,157 crore in the first Coronavirus, the government is providing
phase and Tk. 51,804 crore in the second direct cash transfer of Tk. 2,500 each to 50
phase has been allocated. lakhs beneficiary families.
Gratuitous Relief (GR) Programme Ongoing Programmes/Projects under the
Under GR (rice) programme food assistance Social Safety-net
provides to the disaster vulnerable poor, In order to eradicate poverty government
distressed and helpless people affected by cannot retain its responsibility only through
various natural calamities. In FY2019-20, a implementing different types of allowances
total of Tk. 98.95 crore has been distributed and food assistance programmes. Moreover,
under this programme. the government executes many inventive
projects/programmes for poverty alleviation.
A total of 73 projects/programmes are
implemented in FY2019-20 for poverty
Chapter 13- Poverty Alleviation ‫׀‬242‫׀‬
Bangladesh Economic Review 2020

reduction under social empowerment sector. 404 upozilas of 64 districts. Up to February

Among these 60 are running projects/ 2020, Tk. 347.99 crore has been disbursed
programmes, the rest 13 are new projects/ under this programme. In total 82,496 houses
programmes. An amount of Tk. 20,931.62 have been built and 4,12.480 rural poor
crore has been allocated to implements these people have directly benefitted through this
projects. Brief descriptions of some projects/ programme.
programmes of social safety-net are given The project not only constructs home for the
below: homeless people but also finances to build
Ashrayan-2 (Poverty Alleviation and dormitory/ hostel for female workers
Rehabilitation) Project especially for the garment workers. A 12
storied hostel for the poor female workers has
Ashrayan project was commenced in 1997 for
been constructed at with a cost of Tk. 24.61
rehabilitating the landless, homeless and
crore at Ashulia, Savar through financial
rootless families. A number of 1,54,238
assistance of Grihayan Tahabil. As many as
landless, rootless and homeless people have
744 women workers will get residential
been rehabilitated through Ashrayan project
facility in this hostel. Moreover, Grihayan
through construction of barrack houses and a
Tahabil has sanctioned Tk. 2.00 crore to the
number of 1,43,777 houses have been built on
‘Ghore Phera Kormosuchi’ implemented by
one’s own land. A total of 2,98,249 families
Bangladesh Krishi Bank. Meanwhile, Tk. 25
have been rehabilitated through Ashrayan
crore is sanctioned in favor of Ministry of
project. According to future plan a massive
Labor for the construction of Labor
work of constructing houses for the landless
Hostel/Dormitories by Department of Labor.
and homeless families will be started just
Moreover, a total of Tk. 10.84 crore has been
after the list of landless and homeless families
donated from this programme among the
are finalised.
disaster affected loan receivers.
Grihayan Tahabil
Poverty Alleviation Activities of Rural
Grihayan Tahabil was launched in FY1997- Development and Co-operative Division
98 considering the housing problem along The Rural Development and Cooperative
with reducing poverty of homeless poor and Division (RDCD) has prepared short and
low income rural people. Bangladesh Bank medium term action plan for poverty
coordinates the whole activities of the reduction. These are formulated according to
programme. Grihayan Tahobil provides Tk. the guidelines of Poverty Reduction Strategy
1,30,000 as housing loan for each house. Paper, 7th FYP and the ‘National Rural
Bangladesh Bank allows loan to the Development Policy, 2001’. Activities of few
implementing NGOs at a simple interest rate projects relate to poverty alleviation and
of 1.50 percent and the NGOs provide loans social safety-net as well as actions of few
to the beneficiaries at the rate of 5.50 percent Departments/Foundations under Rural
interest. The recovery period is 3 to 10 years. Development and Co-operatives Division are
616 NGOs are executing this programme at discussed describe below:
Chapter 13- Poverty Alleviation ‫׀‬243‫׀‬
Bangladesh Economic Review 2020

Amar Bari Amar Khamar Palli Shanchoy Bank (PSB) for managing and
mobilising permanent fund developed by the
Amar Bari Amar Khamar (My House My
Village Development Organisations earlier
Farm) is a permanent poverty alleviation
formed under Amar Bari Amar Khamar
model. The project is being implemented to
project. Banking operation is being
build every home as a center of economic
conducted through 485 branches of 485
activity. People having land up to 50 decimal,
upazilas of the country.
those who live in the hilly/char/backward
localities having maximum one acre of land Comprehensive Village Development
rd
are the target group of the project. The Programme (CVDP) 3 Phase
objective of sustainable development goals is The objective of the project is to reduce
to reduce all types of poverty everywhere, as poverty and to improve life standard of the
part of SDG’s ‘Mission-1 and ‘Mission-2’ to poor in the poverty stricken areas of the
free from hunger, food security and improved country with an aim to establish village as the
and expansion of sustainable agriculture' and focal point of development. During the
'Mission-5' 'Gender Equality, Empowerment project period (1st January, 2018 to 31st
of women and girls’. The project is being December, 2021), a total of 14,30,163
implemented in every ward of all union of all members of the cooperatives (both men and
the districts of the country. women) will be trained for different duration.
The special feature of the project is to Targeted output/physical targets of the
increase agricultural and non-agricultural project are respectively: number of Society
production, income and employment formation 10,035 and number of member
opportunities by creating own permanent enrolment 14,50,000. Till February 2020,
capital of beneficiaries and the about 7,845 Societies have been formed and
7,08,497 members have been enrolled. A total
sustainable use of this capital. Up to February
of 1,49,412 people have become self-
2020, in total 1,15,422 Village Development
employed under this project.
Organisations (VDOs) have been formed
under this project. Almost 2.52 crore poor Department of Co-operatives
people directly or indirectly have been Cooperative is a worldwide tested and
benefitted through these VDOs. recognized medium for poverty alleviation
As a result of successful implementation of and economic development. At present, the
this project, the project will play a vital role total number of registered cooperatives in the
in promoting poverty-free, middle-income country is 1,77,930. Among them, the number
countries, by 2021, by ensuring permanent of primary co-operative societies are
and sustainable poverty reduction of 55 lakh 1,76,717, the central co-operation number
poor families of 2.75 million beneficiaries. are 1,191 and the national association has 22.
The total number of members of the
The government has established and set up
cooperative societies are 1,12,43,100 people,
the share capital is about Tk. 1,744.03 crore,
Chapter 13- Poverty Alleviation ‫׀‬244‫׀‬
Bangladesh Economic Review 2020

the savings deposit amount is Tk. 8,067.75 plan. BRDB has successfully implementing
crore and the working capital is Tk. 14,213.91 118 projects/ programmes.
crore. At present, BRDB is operating 5 ADP listed
Bangladesh Co-operative Insurance Limited’ projects/ programmes regarding to poverty
is established to ensure economic alleviation and social empowerment. These
development and security of the members of are: (a) Participatory Rural Development
the co-operative societies. At present, the Project-3, (b) Employment Guarantees
number of members of this association is 501, Scheme for the Poor of Northern Region; (c)
the share capital is Tk. 63.77 lakh and the Comprehensive Village Development
reserve fund is Tk. 78.88 lakh. Programme; (d) Poverty Reduction through
high valued nutritious Minor Crops
With a view to making co-operative activities
production and Marketing programme and (e)
fruitful and dynamic in the country the
Gaibanda Integrated Rural Poverty
Department of Co-operative implement
Alleviation Project. In addition, BRDB
different projects/ programmes time to time.
implements 15 projects/programmes related
At this moment two projects tilled ‘Improved
to poverty reduction, women empowerment
Breed dairy farming for livelihood
and microcredit through its own fund. Up to
development of disadvantage women’ and
February 2020, BRDB cumulatively disburses
‘Expansion of Dairy Co-operative in
Tk. 17,457.04 crore. On the contrary, a total
Gangachara upazila for employment
of Tk. 15,958.04 crore has been recovered at
generation through milk and meat production’
the same period.
are implementing by the department.
Bangladesh Academy for Rural
Bangladesh Rural Development Board
(BRDB) Development (BARD)

Poverty alleviation through the development Bangladesh Academy for Rural Development
of the rural economy is one of the pledges in (BARD) Cumilla is the pioneer institution for
the present government. To achieve this goal, training, research, action research and
Bangladesh Rural Development Board innovation for rural development in
(BRDB), one of the largest partners at the Bangladesh.
government level, is working in the rural Recently, it has operated research on impact
development programme. The activities of of climate change, family planning, women’s
BRDB are conducted through mobilizing the socio-economic development for mitigate
rural population, providing training, raising natural disasters and so on. Since its inception
awareness, mobilizing local resources and in 1959 to December 2020, BARD has been
managing and distributing microcredit as carried out 701 researches. At present BARD
capital assistance. In addition, various has been implement 12 projects regarding to
development projects were implemented by poverty alleviation, microcredit, women
the BRDB in light of the government's education, nutrition development, agricultural
election manifesto and national development development and technology transfer.
Chapter 13- Poverty Alleviation ‫׀‬245‫׀‬
Bangladesh Economic Review 2020

Rural Development Academy (RDA) ‘Poverty Reduction of Marginalised People of

Bogura Kurigram and Jamalpur Districts’ is being
implemented by the Academy to graduate
Rural Development Academy (RDA), Bogura
from poverty and ensure sustainable rural
established in 1974. The mission of the
livelihoods and food security of 41,000
academy is to provide training, conduct
people by increasing the household income.
research, action research and offer advisory
And also another action research project for
services. The academy arranges training
restoration of agricultural land, ‘livelihood
courses on modern technology transfer,
improvement of the rural community and
skilled development and human resource
construction of multi-stored building with
development. From March 2019 - February
modern urban facilities Palli Janapad’
2020, RDA has accomplished training for
Project is being implemented by RDA,
554 batches and a total of 22,555
Bogura.
participants attended the training. From
inception to February 2020, the academy Palli Daridro Bimochon Foundation (PDBF)
has organized attended by 5,68,877 To create hunger and poverty-free
participants. Bangladesh, PDBF is creating skilled human
RDA in collaboration with Bangabandhu resources by organizing the underprivileged
Sheikh Mujibur Rahman Agricultural population and creating sustainable socio-
University has launched a one year post economic development through training,
Graduate Diploma in Rural Development. necessary loans assistances and other
Already, 92 students have completed this collaboration. PDBF operates 403 offices in
course. From March 2019-February 2020, 357 upazilas in 55 districts. In order to create
the academy has done six research projects self-employment and increase financial
and one action research project. On the capacity through income-generating
other hand, until February, 2020 altogether activities, loan assistance of Tk. 11,831 crore
476 research and 42 actions research has been provided to the beneficiaries. As a
projects have been executed by RDA. In result, up to February, 2020 the number of
March 2019-February 2020, the academy is cumulative mobilized beneficiaries is
conducting 13 research and 7 action 26,50,000 in Micro-credit activities.
research projects.
Small Farmers Development Foundation
Apart from those RDA has special focus on (SFDF)
Char Peoples. Because they are more The Small Farmers Development Foundation
vulnerable in all respect as the sandbars are (SFDF) is established under Section 28 of
isolated from the main land. Two GoB funded companies Act, 1994 as a public limited
projects in the name of ‘Livelihood company, not for profit, for helping the male
Improvement of the Poor People in the Char and female members of the small farmer
Islands of Sariakandi and Sonatola Upazilas families living in rural areas. The Foundation
under Bogura District’ and Project on commenced in 2005 but started its activities
Chapter 13- Poverty Alleviation ‫׀‬246‫׀‬
Bangladesh Economic Review 2020

in February 2007. At present the activities of BAPARD mainly conducts training and
the Foundation and its project are being research and arranges training programmes
implemented through 174 upazila offices of for government and non-government
36 districts of the country. At the end of the officials. It organises workshops, conferences
month of February 2020 a total of 2,07,060 and seminars related to rural development and
members have been enrolled through the poverty alleviation as well. Moreover,
6821 village centers of SFDF where women BAPARD executes training on various income
members are 94 percent. The enrolled generating activities on farming and off-
member is providing Microcredit and farming sector for self-employment of small
Microenterprise loan and trade based training and marginal farmers and landless
to strengthen their income generating unemployed people. BAPARD conducted
activities. As SFDF providing strong training for 38,260 participants of
monitoring, loan and training support the stakeholders as well as officials from its
beneficiaries are being coming out from the inception on 2001-2002 to till 2018-2020 (up
poverty level. Among the members an to February 2020) fiscal year.
amount of Tk. 1004.19 Crore has been
Employment Programmes of
disbursed cumulatively as collateral-free
Karmasangsthan Bank
credit support and against that an amount of
Tk. 846.95 Crore has been recovered through The government established Karmasangsthan
weekly and monthly installment basis during Bank in 1998 to create self-employment
the period. The recovery rate of credit stands opportunities for unemployed youths
to 97 percent. The weekly savings of the especially, educated unemployed youths. The
enrolled beneficiaries of the Foundation have bank provides loans to the youths with a view
been accumulated at Tk. 84.31 Crore as their to involving them in productive and income
own capital. generating programmes. At present, the bank
runs its activities through 248 branches across
Bangabandhu Academy for Poverty the country.
Alleviation and Rural Development
(BAPARD) Own Loan Programme of the Bank:

Bangabandhu Poverty Alleviation Training Under the own loan programme, up to

Complex established at Kotalipara upazila of February 2020, the bank distributed an
Gopalgonj district in 1997. The mission of amount of Tk. 5,898.19 crore among 5,82,965
the complex is to improve livelihood by beneficiaries. On the other hand, Tk. 5,369.37
getting rid of poverty of rural people crore has been recovered during this period.
especially living in the south-western part of Microcredit Programme for Self-
the country. Later on, it was renamed as retired/Retrench Worker/Employees of
`Bangabandhu Academy for Poverty Mills/Industries and Establishment
Alleviation and Rural Development
According to the memorandum of
(BAPARD)’ in 2012.
understanding sign with the Ministry of

Chapter 13- Poverty Alleviation ‫׀‬247‫׀‬

Bangladesh Economic Review 2020

Labour and Employment, the 2,387 entrepreneurs who are involved in

Karmasangsthan bank operates this agro-based industry directly benefited.
programme for reemployment of self-
Bangladesh Bank Loan Programme
retired/retrench workers/ employees of mills/
industries. Up to February 2020, a total of Tk. Karmasangsthan Bank has been operating
110.37 crore has been distributed among this programme with the loan assistance of
19,889 beneficiaries At the same time, the Bangladesh Bank since FY2015-16. Later on,
Tk. 100.99 crore has been recovered. from FY2016-17, the bank commenced milk
production and artificial insemination
Credit Programme for Agro-based refinance scheme. Up to February, 2020 Tk.
Industries 474.00 crore has been distributed among
With the financial support of the Ministry of 31,242 young entrepreneurs under this
Finance Karmasangsthan Bank has been programme. Information regarding to loan
conducting this programme. An amount of distribution and recovery of Karmasangsthan
Tk. 68.80 crore has been disbursed among Bank is presented in Table 13.8:
beneficiaries till February 2020. As a result,

Table 13.8: Disbursement of Loan by Karmasangsthan Bank

(In Crore Taka)
Name of The Rate of Employment
Disbursed Recoverable Recovered Beneficiary
Programmes Recovery Creation
1 Own Credit Programme
(including SECP,
5898.19 5664.35 5369.37 95% 582965 2104503
Consumer and
Bangabandhu Juba Rin)
2 Special Programmes
a) Credit programme for
Self-retired/ retrenched
workers/ employees of 110.37 108.78 100.99 93% 19889 71799
Mills, Industries and
Establishment
b) Credit programme
for Agro-based 68.80 78.90 76.53 97% 2387 8617
Industry
c) Fisheries and
Livestock Loan
474.00 313.63 304.32 97% 31242 112784
Assistance Programme
of Bangladesh Bank
d) Staff loan and other
128.65 51.79 51.70 100% 4850 17509
loans
Total 6680.01 6217.45 5902.91 95% 641333 2315212
Source: Karmsangsthan Bank (up to February 2020).
country through its 278 Partners
Palli Karma Sahayak Foundation (PKSF)
Organisations (POs). Nearly, 91 percent
Palli Karma-Sahayak Foundation (PKSF) members of the POs are female. In FY2019-
works for poverty alleviation, social safety- 20 PKSF has projected to provide Tk.
net and women empowerment in 1990. The 4,137.00 crore financial assistance to
foundation executes activities all over the different sectors. Up to December 2019,
Chapter 13- Poverty Alleviation‫׀‬248‫׀‬
Bangladesh Economic Review 2019

PKSF provided financial assistance to POs prone 15 climate vulnerable districts of the
was Tk. 1,996.81 crore. On the other hand, country. PKSF is implementing seven
POs provided Tk. 23,786,07 as financial different interventions activities under this
assistance to the programme participants. programme in 221 unions of 64 districts
From its inception in 1990 to December 2019, through 116 POs for the welfare of the elderly
cumulative financial assistance to POs is Tk. people.
36,743.69 crore. At the same time POs PKSF with the financial support of World
provide Tk. 3,86,961.60 crore to the Bank is implementing the project ‘Low
programme participants. Apart from this, Income Community Housing Support Project
PKSF has under taken some notable
(LICHSP)’.The main purpose of the project is
initiatives for overall poverty reduction and to improve the living condition of low income
socio-economic development of poor people. people. Under this project, PKSK offers
PKSF has introduced a combined programme housing loan for repair, new construction and
called ‘Enhancing Resources and Increasing extension of houses to the low income people.
Capacities of Poor Household towards The project is being executed in selected 13
Elimination of their Poverty (ENRICH)’, The municipalities and city corporations.
vision of the programme is to create an Moreover, PKSF is working for the extension
enabling environment for the poor so that of sustainable agricultural technologies which
they can achieve a humanly dignified living are invented by different government research
standard and enjoy universal human rights. and extension wings and have already proved
The programme is being implemented at 202
to be successful in the field. PKSF is working
unions of 166 upazilas under 64 districts of as an implementing partner of ‘Skills for
the country. Up to December 2019, almost Employment Investment Programme (SEIP)’.
57.84 lakh poor people involved in this With the financial assistance of the project,
programme. PKSF has been implementing PKSF provides different kinds of skilled
‘Promoting Agricultural Commercialisation development trainings to the poor unskilled
and Enterprises (PACE)’ project jointly people. Under this programme 16,741 youths
financed by PKSF and International Fund for completed training and have got employment
Agricultural Development (IFAD) since 12,016 youths (72%).
January 2015. PACE project has extended
support to expand the ongoing Agrosor PKSF is providing support and scale-up
(microenterprise) programme of PKSF. Under financial and non-financial innovative
the Agrosor programme of PKSF, PKSF is initiatives to expedite inclusive development
implementing value chain sub-projects to of disadvantaged and extremely poor people
promote these clusters. PKSF implemented under LIFT Programme. Besides, Awareness
the ‘Community Climate Change Project of contemporary social issues like preventing
(CCCP)’ under the Bangladesh Climate child marriage, eve teasing, violence against
Change Resilience Fund (BCCRF). CCCP women and children etc. to disseminate
targeted coastal, flood-prone and drought- important knowledge based information.

Chapter 13- Poverty Alleviation ‫׀‬249‫׀‬

Bangladesh Economic Review 2019

PKSF arranges Potgaan in the field level to Up to December 2019, MRA issued licenses
make people aware of the demerits of drug to 876 institutions to carry out microfinance
addiction, dowry, child marriage, violence activities. On the other hand, the authority has
against women and children and many other cancelled the certificate of 118 institutions for
social issues. their failure of doing satisfactory function. Up
to June 2019, the amount of loan and
Microcredit for Women Self-employment
outstanding savings of these institutions are
Micro-Credit activities for self- employment Tk. 78,758 crore and Tk. 30,619 crore
of poor and distress Women programme is respectively.
one of the important safety net programme of
the present government. To create the Microcredit Activities of Major NGOs
opportunity for women in employment sector The Non-govenment organisatons (NGOs)
or in productive role, this programme is well execute microcredit programmes along with
recognized and practicing in the country. This the government organisations.The NGOs
programme is continuing from FY2003-04 to mainly work for poverty alleviation,
FY2019-20 up to December 2019 the total education, health, human resource
allotment is 48.00 crore taka only and total development and so on. The overall
Tk. 136.6205 crore has distributed from the microcredit activities of 8 major NGOs are
revolving fund among 1,35,430 poor women described below:
of 488 Upazila Women Affairs offices in 64 BRAC
District.
BRAC, the largest NGO of the world has great
Microcredit Programme Monitoring contribution to the socio-economic
through Microcredit Regulatory Authority development of Bangladesh. It is the biggest
(MRA) microcredit providing NGO of the country. It
The Microcredit Regulatory Authority (MRA) operates different types of programme
was established in 2006. The prime through microcredit. The activities which are
responsibility of the authority is to ensure being implemented by BRAC relates to
transparency and accountability of the economic and social development, health,
microfinance institutions of the country. It education, human rights and legal services,
also regulates the microfinance institutions and disaster management. In addition, Up to
which are operating their activities in the December 2019, BRAC disbursed an amount
country. of Tk. 2,48,453.52 crore. During this period
in total 7,496,383 people have been benefited
MRA provides permission to run microcredit
out of which 82 percent are female.
activities. It also collect and preserve
information regarding microcredit ASA
programmes of all government and non- ASA started its microcredit programme in
government organisations. National Database 1991 as a specialised microcredit
of microcredit is going to be prepared in order organisation. It’s cost-effective and
to modernise the activities of MRA.
Chapter 13- Poverty Alleviation ‫׀‬250‫׀‬
Bangladesh Economic Review 2019

sustainable microfinance programme has Shakti Foundation

been recognised as a special model of poverty This organisation is engaged in providing
alleviation. Up to February 2020, ASA microcredit facilities for the deprived women
distributed Tk. 216,497.38 crore cumulatively living in the slums of Dhaka, Chattogram,
among 6,827,379 beneficiaries among them Khulna, Cumilla, Bogura, Rajshahi and other
almost 90 percent are female. major cities and towns. Microfinance is the
BURO Bangladesh core programme of Shakti Foundation.
Moreover, it provides service for healthcare,
BURO is implementing its activities through
business entrepreneurship and social
482 upazilas of the country. It mainly works
development of poor woman. Up to February
for lower income groups. In FY2019-20,
2020, an amount of Tk. 10,368.34 crore has
BURO distributed Tk. 75,612,232,308 crore
been disbursed and Tk. 9,329.16 crore has
as loan among 19,97,999 beneficiaries out of
been recovered by the foundation.
them 91 percent are female.
TMSS
Caritas
TMSS has been implementing microcredit
Caritas works for education and poverty
programme in order to make the poor people
reduction for marginal people. Up to
self-employed by improving their socio-
December 2019, Caritas disbursed Tk.
economic conditions. It also works for
4,526.23 crore among 2,57,170 beneficiaries.
expansion of business and increase the
Society for Social Services (SSS) growth of production. TMSS implements
Society for Social Service (SSS) works for credit programme in 346 upazilas of 58
improving the socio-economic condition of districts. Up to june 2019, Tk. 26,731.71
destitute and underprivileged people. It also crore has been as microcredit among
contributes to establish justice and peace of 70,71,785 beneficiaries.
the society. Activities of SSS now spread out Proshika
at 196 upazilas of 32 districts of the country.
Proshika started its journey in 1975 from
7.50 lac are beneficiary families (among them
Manikgonj with a view to removing poverty
7.23 lac families in financial service
from society. Currently, it runs activities in
programme, 23.50 thousand families in social
57 districts. Until December 2019, Proshika
programmes and 3.50 thousand in
distributes Tk. 6730.20 crore as loan and
disadvantaged children families) cumulative
2,807,497 poor people get benefit from this
credit disbursement of Tk. 22,475.80 crore.
NGO. The status of micro-credit programmes
of the major NGOs is presented in the Table
13.9

Chapter 13- Poverty Alleviation ‫׀‬251‫׀‬

Bangladesh Economic Review 2019

Table 13.9: Status of Microcredit programmes of Major NGO

NGOs 2012 2013 2014 2015 2016 2017 2018 2019 Cumulative
( Up to
December
2019)
BRAC
Disbursemen 10422.20 12114.8 15190.4 19298.28 24302.7 29317.1 35562.7 43171.5 248,453.52
t
Recovery 0
9689.74 9
10966.1 9
13281.7 171134.8 8
21563.6 3
26486.8 6
31551.4 8
38956.5 223,440.71
Beneficiaries 5835861 2
5640684 2
5510905 1
5957954 6
5957954 5
6483486 1
7114726 5
7496383 7,496,383
Female 5380265 5074181 4876445 5188206 5188206 5633121 6165119 6163392 6,163,392
Male 455596 566503 634460 769745 769745 850365 949607 1332991 1,332,991
*ASA
Disbursemen 9618.27 10263.9 14638.5 20905.68 26958.6 29681.4 29681.4 28368.3 216,597.38
t
Recovery 9544.52 7
9908.36 7
11795.3 17650.08 3
23515.3 2
28953.3 2
28953.3 1
28457.1 202,570.54
Beneficiaries 4859588 5322351 2
6902024 7686255 7
7839119 4
7577355 4
7577355 7
6828698 6,827,379
Female 4698716 4905175 6319502 7033521 7171271 6930474 6930474 6235926 6208,533
Male 160872 417176 582522 652734 667848 646881 646881 592772 618,846
*BURO Bangladesh
Disbursemen - 2211.89 2362.85 2630.02 3951.54 5439.38 10460.5 9148.5 75,612,232,30
t
Recovery - 1599.57 2290.35 2355.88 3154.81 4604.82 0
8978.80 7095.3 8
62,040,953,71
Beneficiaries - 1104717 1053035 1269411 1356572 1449085 1649923 1662689 3
1,997,999
Female - 1034317 982474 1168945 1241687 1329719 1501564 - 1,175,142
Male - 70400 70561 100466 114885 119366 148359 - 1,48,371
Caritas
Disbursemen 265.93 286.40 297.35 317.16 380.45 448.52 483.20 542.16 4,526.23
t
Recovery 252.28 273.76 291.62 310.07 346.55 412.05 462.21 509.85 4,223.80
Beneficiaries 19251 10928 37897 29217 6619 2526 4070 2303 257,170
Female 11431 5648 22818 18421 7832 2429 2154 2619 223,110
Male 7820 5280 15079 10796 1213 97 1916 - 34,060
SSS
Disbursemen 4639.66 1249.06 1316.32 1686.26 1149.67 2762.50 3135.20 3354.17 19292.84
t
Recovery 4082.13 1237.58 1229.33 1507.17 923.24 2317.68 3073.78 3089.0 17459.91
Beneficiaries 474000 461119 473116 507295 579182 616585 600906 644453 644453
Female 459886 448658 462567 498518 568694 600529 585951 628919 628919
Male
Male 14554 12461 10549 8777 10488 16056 14955 15534 15534
SHAKTI Foundation
Disbursemen 506.90 541.00 618.65 745.79 1001.45 1175.03 1322.37 1765.68 10,016.52
t
Recovery 580.80 519.00 570.35 669.96 826.49 1017.02 1232.81 1507.48 9,018.87
Beneficiaries - - 496040 - - 521751 - - 465,484
Female - - 47680 - - 507628 - - 458,477
Male - - 16360 - - 14123 - - 7,007
TMSS
Disbursemen - - 1894.49 2963.80 2623.98 3305.85 4245.03 4817.71 -
t
Recovery - - 1623.98 2540.42 2460.35 2918.28 3838.84 - -
Beneficiaries - - 564127 519118 459558 503942 576683 7071785 -
Female - - 544383 499910 441176 492722 568207 - -
Male - - 19744 19208 18382 11220 8476 - -

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Bangladesh Economic Review 2019

Proshika
Disbursemen 230.23 118.71 222.42 219.51 178.02 255.75 351.18 539.52 6730.20
t
Recovery 280.03 120.29 215.98 215.22 162.78 231.68 297.85 473.52 6446.21
Beneficiaries 139645 130522 108590 92535 79119 110483 140471 240335 2807497
Female 106732 91365 76013 74215 53801 78443 103949 186266 1766529
Male 32913 39157 32577 18320 25318 32040 36522 54069 1040968
Source: Concerned NGOs. * Asa (cumulative February 2019). *BURO Bangladesh (According to 2019-20 July to February) .

Grameen Bank people of 81,678 villages of 479 upzilas

under 64 districts are involved in the
Grameen Bank established as a specialised
microcredit programme of Grameen Bank.
institution in 1983. Microcredit programme
The bank disbursed Tk. 220009.54 crore
implemented by the bank for poverty
until February 2020 and recovered Tk.
reduction. It works for poverty declination by
204123.73 during the same period. The Table
creating self-employment of rural poor
13.10 describes the microcredit activities of
women through providing microcredit to
the Grameen Bank:
them. Up to December 2019, 92.60 lakh poor
Table 13.10: Microcredit Programmes of Grameen Bank
(In Crore Taka)
Item 2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 Cumulative
Up to February 2020
Disbursement 12941.45 13890.24 16933.15 20789.11 24321.50 17044.92 220009.54
Recovery 12562.48 13534.36 15123.13 18270.13 22559.75 16694.02 204123.73
Recovery Rate (%) 97.53 98.33 98.82 99.22 99.13 99.03 98.91
No. of Beneficiary 8624948 8681302 8853961 8915491 8986050 9132966 9312743
Female 8301557 8345610 8548060 860989 8689004 8834706 9012822
Male 323391 335692 305901 305598 297046 298260 299921
Source: Grameen bank

Microcredit Activities of Schedule Banks Banks (SOCBs) and 2 public sector

The statistics of credit disbursement and specialised banks is presented in Table 13.11.
recovery of 4 State Owned Commercial

Table 13.11: Status of Microcredit Disbursement of SOCBs and Public Specialised Bank
( in crore Taka)
Name of the 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Cumulative
Bank (Up to February
2020)
Sonali Bank
Disbursement 723.95 668.99 1063.15 1041.00 1127.00 1187.30 1170.21 442.09 17760.35
Recovery 851.24 865.72 1166.91 1244.00 1178.00 1316.08 1267.90 552.33 19835.01
% of recovery 117.58 129.41 109.76 45.00 46.00 46.00 42.52 26.00 93.15%
No of 159045 245344 262149 229773 208432 291429 311058 109439 79,59,544
Beneficiaries
Agrani Bank
Disbursement 874.41 778.16 602.00 2120.50 1782.02 898 2748.77 3340.94 3185.39
Recovery 878.54 830.35 528.00 3051.85 3007.86 996 1767.85 1429.30 2782.00
% of recovery 103.67 104.03 87.71 74.00 67.00 88.00 64.31 62.00 80%

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Bangladesh Economic Review 2019
Name of the 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Cumulative
Bank (Up to February
2020)
No of 118666 117236 132317 128850 92636 150139 30698 18780 20359
Beneficiaries
Janata Bank
Disbursement 726.52 736.48 737.30 751.57 744.80 495.57 751.36 597.77 5344.8
Recovery 553.27 525.54 641.35 698.91 691.23 490.23 678.57 570.85 5168.0
% of recovery 76.15 71.36 86.99 93.00 58.00 99.00 48.00 51.48 48.46%
No of 108254 245288 548134 104563 551179 552392 753785 554545 547331
Beneficiaries
Rupali Bank
Disbursement 15.67 16.63 12.17 11.44 19.95 105.50 612.31 44.11 55.73
Recovery 17.63 16.68 17.38 15.71 31.30 59.69 293.19 367.78 126.12
% of recovery 112.51 100.3 142.81 137.32 166.00 57.00 293.00 368.00 126%
No of 9134 13554 15849 15255 14886 30697 34731 35021 36880
Beneficiaries
Bangladesh Krishi Bank
Disbursement 55.22 73.70 100.49 96.56 57.61 31.15 72.11 44.80 1989.70
Recovery 53.69 51.38 109.37 106.77 52.04 21.13 66.49 27.50 1744.50
% of recovery 97.23 69.72 109.84 111.00 53.17 67.83 92.20 61.38 87.67%
No of 28535 28284 14919 16529 16044 7254 12080 7808 1994403
Beneficiaries
Rajshai Krishi Unnoyan Bank
Disbursement 29.22 39.04 38.23 24.88 12.73 25.67 22.94 22.94 1583.37
Recovery 19.95 37.03 40.78 29.07 19.09 12.19 8.91 8.91 1674.98
% of recovery 68.28 94.85 106.67 101.00 82.00 48.00 39.00 39.00 73%
No of 11333 12602 10480 3832 6695 6253 3930 3930 115511
Beneficiaries
Total
Disbursement 2397.99 2333.00 2553.34 4045.95 3697.22 2743.19 5377.70 4491.44
Recovery 2374.32 2326.70 2503.79 5146.31 4996.51 2885.32 4082.91 2952.83
(%) of 99.01 99.73 98.06 96.22 84.80 105.18 75.92 65.74
recovery
Source: Concerned Banks.

Microcredit Programmes of other reduce poverty and create self-employment

Commercial and Specialised Banks opportunities. The information of eight
Except the state owned banks other commercial banks’ microcredit programmes
commercial and specialised banks are also is described in Table 13.12
carrying out microcredit programmes to
Table 13.12: Microcredit Programmes of other Commercial and Specialised Banks
(in crore taka)
Commercial and Specialised Number of Beneficiaries Disbursement up to Rate of
Banks June 2018 Recovery (%)
Female Male Total
*Ansar-VDP Unnayan Bank 5,57,195 5,11,950 1069145 2305.10 94.57
National Bank 3,374 70,089 73,463 28,322.93 81.00
*Trust Bank Ltd 1088 19215 20303 295,7650 92
Social Islami Bank Limited 3128 6060 91885 52.24 98.10
Islami Bank limited 2967 86666 89633 11213.00 93.30
*Uttara Bank Limited 977 14908 15885 3258.89 68.96
Pubali Bank Limited
BASIC Bank Limited 516473 129119 645592 1065.35 72.69
Source: Concerned Bank. Ansar-VDP Unnayan Bank, *BASIC Bank Limited *Uttara bank Limited * Trust Bank Ltd (up to February 2020).

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Bangladesh Economic Review 2019

Microcredit Programmes of Administrative the society. In order to sustaining the microcredit

Ministries/Divisions programmes for poverty reduction the
government emphasizes on developing small
The government has been implementing
entrepreneurs microcredit programmes of
microcredit programmes by different ministries,
different ministriess/divisions/departments are
divisions and agencies along with various social
presented in the Table 13.13:
safety net programmes to remove poverty from

Table 13.13: State of Microcredit of different Ministry/Division/Department

Ministry Department/ 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Cumulative
/Division Division progress (up to
February 2020)
Rural BRDB
Developme
nt & Disbursement 815.03 884.54 985.88 1065.73 1173.52 1252.26 641.41 16117.30
Cooperativ Recovery 789.64 816.80 910.42 999.48 1106.12 1138.80 661.78 14632.43
e Division Rate (%) 94.00 92.00 92.00 73.00 94.00 75.00 63.00 97.00
PDBF
Disbursement 599.16 716.82 915.26 956.93 1156.28 1266.50 831.97 10631.02
Recovery 629.15 724.69 946.45 946.09 1178.35 1359.49 915.19 11074.70
Rate (%) 99.00 99.00 99.00 98.00 98.00 97.00 97.00 98.00

Ministry of Jatiyo
Women Mohila
and Songstha
Children Disbursement 2.00 9.17 3.01 1.29 1.55 1.53 - 56.45
Affairs Recovery 2.10 7.45 1.66 4.72 5.26 2.4 - 64.12
Rate (%) 105 81 55 365 337 158 - -
Ministry of Disbursement 3.4 5.56 7.00 7.98 8.61 9.33 9.00 92.36
Liberation Recovery 9.00 3.25 4.52 8.03 8.79 8.83 10.00 64.65
war Affairs Rate (%) 264.70 58.48 64.57 100.62 102.09 59 50.00 84.00
Ministry of SERWTCI
Industries Disbursement 11.94 10.40 9.35 8.65 7.82 6.42 34.31 79.57
Recovery 11.18 10.46 9.33 105.6 7.81 6.53 37.05 78.29
Rate (%) 93.00 100.00 99.00 99.00 100.00 101.00 107.00 98.00

Ministry of Disbursement 7.32 3.02 7.50 6.70 6.79 6.62 9.46 167.42
Land Recovery 3.77 1.63 5.67 6.09 6.39 6.25 7.20 130.16
Rate (%) 51.50 53.97 75.58 90.90 94.11 94.41 76.10 77.74
Ministry of Bangladesh Handloom Board
Textile and Disbursement 1.84 2.65 4.03 3.42 4.10 3.60 3.52 77.18
Jute Recovery 2.66 2.39 3.16 3.43 4.23 3.25 2.11 57.75
Rate (%) 60.65 62.76 65.65 67.89 70.25 70.70 72.68 72.68
Ministry of Dept. of
Youth and Youth
Sports Disbursement - - 97.34 102.65 121.97 138.81 88.43 1950.46

Recovery - - 89.73 99.29 109.94 117.16 80.49 1701.41

Rate (%) - - 92.18 96.74 90.12 84.40 87.23

Ministry of Cotton Development Board
Agriculture Disbursement 1.16 1.25 1.71 1.23 1.27 1.34 - -
Recovery 1.22 1.31 1.3 1.28 1.34 1,41 - -
Rate (%) 105.06 104.77 103,96 104.46 104.92 104.59 - -
Source: Concerned Division/Department

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Chapter 13- Poverty Alleviation