The New Nation - Internet Edition

RATES of poverty in Bangladesh in all its dimensions have reportedly fallen significantly. A recent report on the situation of poverty reduction released by International Food Policy Research Institute (IFPRI) showed this positive trend in Bangladesh's efforts in this respect. According to Bangladesh Economic Review 2007, the percentage of people living in absolute poverty decreased from 47 in 1991-92 to 40 in 2005. On the other hand, percentage of people living in hard-core poverty has come down to 19 in 2005 from 28 in 1991-92. This also shows a significant progress in Bangladesh's efforts to reduce poverty. But, according to IFPRI, Bangladesh could not convert her economic growth proportionately into poverty alleviation. She, along with other South Asian countries where 19.7 million or 12 percent of the world's poor live, was less able than any other country in the East Asia and the Pacific region to convert her economic growth into poverty reduction, principally due to lack of income distribution.

According to the Economic Review, GDP growth of the country has achieved significant progress in recent years. It developed to Tk 4,67,497 crore in 2006-07 from Tk 3,70,707 crore in 2004-05, showing annual growth rates of 6.0 and 6.5 in 2004-05 and 2006-07 respectively. The foreign exchange reserve grew from US$ 1602 million in 2000 to US$ 4360m up to mid-May 2007 and more subsequently. As of date, foreign exchange reserve has risen to above US$ 5 billion. Remittances from Bangladeshi expatriates have also grown from US$ 1217 million in 1995-96 to US$ 3824m in 2006-07. Many industrialists and business tycoons in Bangladesh have been doing booming business leading to a significant growth of their wealth. But in the absence of equitable distribution, the workers are deprived of sufficient wages as they deserve in view of the growth. The workers of some readymade garment industries, according to BGMEA itself, are not getting even the minimum wages fixed under the tripartite agreement. Recently a few thousand jute mill workers lost their jobs. The poor and marginalised people hit by the recent floods have lost properties and become unemployed. A large number of hawkers have lost whatever meagre investible surplus they had. All of these together have cast a shadow on whatever successes Bangladesh has achieved.

The economic growth of a country needs to be transformed into economic development characterised by equitable distribution of wealth resulting in reduction of poverty and defusion of social tension. But due to lack of a fair distribution of wealth, a lion's share has concentrated in the hands of a minority of the population, whereas a great part of the poor, marginalised and unemployed masses is engaged in hard struggle to eke out an existence. By ensuring an equitable distribution system, among others, it would be possible on the part of Bangladesh to take its poor sections of the people out of the vicious cycle of unemployment and poverty. Huge investments to pave the way for massive industrialisation and development of agriculture, commerce, handicraft and service sectors are expected to create employment opportunities and help reduce poverty. It is hoped that all concerned quarters would give due attention to equitable distribution of the benefits of economic growth that has accelerated in recent years with a view to reducing poverty at a greater speed.