CHAPTER 13 POVERTY ALLEVIATION

[In the pursuit of development, poverty alleviation is an overriding agenda in Bangladesh. Becasuse of the persistent interventions by the Government absolute poverty which stood at 40.4 percent in 2005 moved down to 31.5 percent in 2010 on the basis of head count ratio. On the other hand, Human Development Report (HDR) 2011 of UNDP revealed that Bangladesh scored 0.292 in Multidimensional Poverty Index (MPI). In order to reduce poverty rate to 25 percent by 2013 and 15 percent by 2021 as set out in Vision 2021, the Government has prepared a perspective plan (2010-21) and the Sixth Five Year Plan (SFYP) for implementation. In tandem, the Government is building a sustainable social safety net for the hard core poor to achieve the targets of the Millennium Development Goals (MDGs) by 2017. To achieve the planned targets of poverty reduction, the Government allocated an amount of Tk. 86891 crore (about 53.12 percent of the total budget) in FY 2011-12 against programmme directly or indirectly linked to poverty alleviation. As Part of this, a total allocation of Tk. 22556.05 crore has been made in the budget for FY 2011-12 to implement various programs under social safety net. Bangladesh is already ahead of many developing countries in terms of achieving the targets of MDGs. Palli Karma Shahayok Foundation (PKSF), different Banks, NGOs are associated with the implementation of programmes taken up by the Government to address poverty. Various ministries including Finance Division have been implementing other programmes along with micro- credit programmes.]

Poverty Situation in Bangladesh During the last 40 years since independence, Bangladesh has been pursuing the agenda of poverty reduction as an overriding priority. Since 1973 to 2002, Bangladesh implemented 5 five-year plans and a two-year plan in which the main focus had always been on poverty alleviation and achieved remarkable progress. In less than a decade, population living the poverty line now stands at 31.5 percent which was 40.4 percent in 2005. Despite this success, poverty alleviation remains high on the development agenda as it is the key indicator of socioeconomic advancement. According to the UNDP Human Development Report 2011, 40 percent of the population are poor in terms of income poverty. On the other hand, the same report reveals that out of as many as 104 countries enlisted under lower Human Development Index (HDI) Bangladesh’s multidimensional poverty Index (MPI) stands at 0.292 (lower HDI), whereas the neighboring countries like Nepal (lower HDI), Pakistan (lower HDI), India (lower HDI) and Srilanka’s (Middle HDI) MPI score are 0.350, 0.264, 0.253 and .021 respectively. The Government is committed to reach the target of MDG by the year 2017. As part of this commitment, the Government has put in place a Perspective Plan (2011-2021) outlining its long term vision and strategies. To realise the vision, the Government has adopted the Sixth Five Year Plan (2011-15) and begun its implementation since June 2011. The principal thrust of both the 230

documents is to reduce the poverty level to 15 percent from its current level of 31.5 percent by way of accelerating growth. Attainment of Millennium Development Goals (MDGs) Eradication of extreme poverty and hunger by 2015 is one of the prime goals set out in the UN MDGs. It is revealed from the report titled ‘Millennium Development Goals (MDGs): Bangladesh Progress Report’ that in terms of achieving the Goal-1 along with some other important goals Bangladesh has made consistent progress. The following table provides a snapshot of progress that Bangladesh has achieved so far: Table: 13.1 Attainment of MDGs At a glance Goals, Targets and Indicators Base year Current Status Target Comment (revised) 1990/1991 by 2015 Goal 1: Eradicate Extreme Poverty & Hunger Target 1.A: Halve, between 1990 and 2015, the proportion of people below poverty line 1.1 Proportion of population below 56.6 31.5 (2010) 29.0 national upper poverty line(2122 k.cal.), percent 1.2 Poverty Gap Ratio, percent 17.0 6.5 (HIES2010 ) 8.0 1.3 Share of poorest quintile in 6.5 8.85(HIES2005) national consumption, percent Target 1.B: Achieve full and productive employment and decent work 1.5 Employment to population ration, 48.5 Percent 59.3 (LFS 2005) For all -

Target 1.C : Halve, between 1990 and 2015, the proportion of people who suffer from hunger 1.8 Prevalence of underweight 66.0 45(BHFNSA 33.0 children under five years 2005) 1.9 28.0 19.5(HEIS2005) 14.0 Proportion of population below minimum level of dietary energy consumption, percent Source: Bangladesh Bureau of Statistics, UNDP, 2011. = on track, = not possible to achieve by 2015. Poverty Reduction Strategy Framework The main elements of strategies undertaken in the sixth five year plan for poverty reduction includes, among others, the following:   Expand employment opportunities in lagging regions by improving connectivity with growth poles through better infrastructure and by investing in human capital . Increase farm income through better productivity 231

On the other hand. irrigation water. (iii) Essential infrastructure for pro-poor growth. Here. Similarly. the BBS for the first time adopted the Cost of Basic Needs (CBN) method. also the rate of reduction of poverty is higher in urban areas (yearly rate 4. The compound poverty reduction rate per year is recorded at 3. HESs carried out up to FY 1991-92 used Food Energy Intake (FEI) and Direct Calorie Intake (DCI) methods in order to measure the incidence of income poverty. non-food consumption is also considered for constructing poverty index. In this chapter. The latest HESs was done in 2010.2).9 percent to 40. But the rate of reduction of poverty is higher in urban areas (yearly rate 4. Measurement of the Incidence of Poverty in Bangladesh The first Household Expenditure Survey (HES) in Bangladesh was carried out in FY 1973-74 and it was followed by a number of HESs. in the Household Income and Expenditure Surveys (HIES) of 2000 and 2005 and 2010. A person having daily calorie intake of less than 2122 kilo-calories used to be considered to be in absolute poverty and 1805 kilo-calories in hard-core poverty. In the HES conducted in 1995-1996.5 percent during the period from 2005 to 2010. Trends of Poverty The rate of income poverty (measured by CBN considering upper poverty line) declined from 48.0 percent during the period from 2000 to 2005.67 percent.0 percent to 31. the rate of income poverty declined from 40. health and nutrition service Enhance the access of the poor to production inputs (fertilizer. (ii) Critical areas for pro-poor growth. seed. rural roads) and to institutional finance Facilitate migration from poor areas given the poverty reducing impact of remittances Stimulate women’s participation in the labour force Ensure stable food price and Mitigate the adverse consequences of climate change Five strategic blocks of revised second national poverty reduction strategy paper are: (i) Macro-economic environment for pro-poor growth. the major findings of the HIES 2010 of BBS have been presented and compared with previous HIES data.28 percent). With this method.      Improve poor households access to education. power. The depth (measured by poverty gap) and severity (measured by squared poverty gap) of poverty between 2000 and 2005 declined at higher rate in urban areas than rural areas. and (v) Human resource development. The compound poverty reduction rate per year is recorded at 4. CBN method was used. (iv) Social protection for the vulnerable. The trends of poverty are shown in the following table: 232 .9 percent.

2 4.2: Trend of Income Poverty 2010 Head Count Index National Urban Rural Poverty Gap National Urban Rural 2005 Annual Change 2005 to 2010 -4.0 6.48 -8.7 16.16 -9.3 2.3 16.2 52.7 13.63 2000 Annual Change 2000 to 2005 -3.9 Squared Poverty Gap National Urban Rural Source: Household Income and Expenditure Surveys (HIES).7 4.3 43.67 -4.7 26.3 12.6 34.80 -6.6 27.5 20.3 7.4 23.2 23.7 20.9 31.1 35.8 16.4 Using the Upper Poverty Line National 233 .2 18.1 48.6 14.8 14.3 4.5 35.2 7.46 -7.4 43. 2010 Head Count Ratio (HCR) on the basis of CBN method by Divisions The head count ratio of incidence of poverty in six administrative divisions using CBN method is presented below: Table 13.15 -6.7 35.4 21.30 -7.8 28.6 15.0 28.6 37.0 28.7 31.8 40.93 -5.6 22.5 4.1 32.0 3.2 -3.1 3.1 9.4 8.2 5.6 26.8 2.64 -8.6 26.1 19.3 25.3 35.4 29.1 27.1 13.9 2.9 -4.9 35.3: Division wise Incidence of Poverty (HCR) by CBN Method (in percentage) 2010 National/Division National National Barisal Chittagong Dhaka Khulna Rajshahi Rajshahi (new) Rongpur Sylhet 2005 Urban Using the Lower Poverty Line Rural Urban National Rural 17.75 31.8 9.Table 13.5 21.2 6.4 2.5 -6.81 -8.28 -5.6 3.0 28.6 16.2 22.59 -6.1 15.5 15.7 24.51 -6.4 11.6 16.0 27.5 21.2 40.5 21.8 9.4 15.0 1.4 17.5 9.

4 2.6 29.3 28.3 22.6 4.2 45.8 20. Household Income and Expenditure Surveys (HIES)-2010.1 25.9 15.1 40.49 2.2 39.3 4.7 11.9 15.0 0.7 29.2 Urban 7.2 30.8 35.0 46.4 26.0 Urban 14.0 34.2 31.8 31.5 32.1 36.1 percent in 2005.7 2010 Using the Lower Poverty Line Rural 21. using lower poverty line.0 44.3 5.50-7.8 12.6 Source: Bangladesh Bureau of Statistics (BBS).7 13.4.8 30.05 0.8 33.1 33.0 35.2 18.7 3. Incidence of Poverty (CBN) by Ownership of Land (in percentage).4 1.6 4.6 49. Size of Land Holding (Acres) Size of Land Holding (Acres) National All Size Land less <0. However.2 20.0 45.6 17.6 percent in 2010 from 25.05-0.4 below.7 2005 Rural 28.8 7.1 35.8 11.8 17.7 0 National 25. Poverty on the basis of Land Ownership Estimates of incidence of poverty (CBN) by ownership of land using both lower and upper poverty lines have been presented in Table 13.0 52.7 32.49 7.5 30.2 7. in 2010 the rate of poverty at the national level.7 51.1 3.6 27.50-2.0 39.9 11.3 7.2 33.2 8. Table 13.8 18. decreased to 17.4 27.0 32.6 9. it has decreased to 31.5 39.5 percent in 2010 from 40 percent in 2005 measured using the upper poverty line.0 234 .49 0.0 38.3 47.8 2.1 2.50-1.2 28.6 19.8 23.50+ 17.7 42.2 43.0 36.9 22.0 1. From the above table it is evident that.5 52.2010 National/Division National Barisal Chittagong Dhaka Khulna Rajshahi Rajshahi (new) Rongpur Sylhet 2005 Urban Using the Lower Poverty Line Rural Urban National Rural 39.49 1.8 27.3 36.7 2.9 12.1 39.8 54.4 9.

7 25. on the basis of head count ratio and using the lower poverty line it indicates that 27.4 8. 4. Table 13. using the pattern of ownership of land as well as upper poverty line. expenditure and consumption expenditure patterns as reflected in the surveys (1991-92 to 2010) have been presented in Table 13.4 percent for landless household.49 0.9 34.7 15.7 percent for owners of 7.4 that in 2010.1 38. It is showing that the number of landless and percentage of land owner having limited acres are greater.50-7.3 percent for owners of 0. Besides this. 25.05-0.49 acres of land. 7.50-7.1 6.1 percent for owners of less than 0.5 acres or more land.1 33.8 4.4 10.6 17.2 0.05 acre of land.05 0.49 7.7 17.1 Urban 21. Expenditure and Consumption Expenditure by Residence Year of Survey Residence Income National Rural Urban National Rural 11480 9648 16477 Average Monthly (Taka) Expenditure 11200 9612 15531 Consumption Expenditure 11003 9436 15276 2010 7203 6096 235 6134 5319 5964 5165 2005 .1 Rural 43.49 acres of land.05-0.05 acre of land.9 17.6 Urban 28.5-2.50-7.49 acre of land.5 below. 13.8 66.50+ 31.7 11.3 percent for owners of 0.1 25.6 percent for owners of 1.4 3.5: Monthly Household Nominal Income.3 56.8 8.49 acres of land. Household Income and Expenditure Surveys (HIES)-2010 It is observed from Table 13.9 15.3 percent for 0.50-2.49 acres of land and 8 percent for owners of 7.9 29.4 45.8 percent for owners of less than 0.3 22.4 40.8 27.0 46.50-1.0 Source: Bangladesh Bureau of Statistics (BBS).6 5. 10. 3.2 47.4 44. Household Income. It is.4 percent for 1. 45.50-1. 17.3 26. therefore.4 3.5-2.3 14.5 14. the estimates of incidence of poverty is found to be 35.49 acres of land.49 acre of land.5 acres of land or more.6 National 40.7 percent for owners of 0.49 1.05-0. important to improve the condition of the landless marginal farmers to improve poverty situation of the country.6 65.5 53.5 35.49 acres of land.1 percent for owners of 2.1 39.Using the Upper Poverty Line National All Size Land less <0.50-1. Expenditure and Consumption Monthly household nominal income. 14. 33.6 7.7 50.7 37.3 25.4 12.49 2.0 Rural 35.8 percent for 2.

Year of Survey Residence Income Urban National 10463 5842 4816 9878 4366 3658 7973 Average Monthly (Taka) Expenditure 8533 4886 4257 7360 4096 3473 7274 Consumption Expenditure 8315 4542 3879 7149 4026 3426 7084 2000 Rural Urban National 1995-96 Rural Urban Source: Bangladesh Bureau of Statistics (BBS).54 5. at national.533 respectively.87 4.42 Urban 100.  Decile Distribution of Income and Gini Coefficient The percentage shares of income by decile groups and Gini Coefficient with rural and urban break-down for the surveys conducted during 2005 and 2010 are presented in Table 13.00 0.23 3. 11. and Tk. 15.480 at the national level. at the national level. whereas it was at Tk. rural and urban level stood at Tk.25 3.00 3.43 Urban 100 0.10 5.00 3. rural and urban level.77 2. Tk. In 2005.09 3.26 4.6: Percentage Distribution of Income Accruing to Households in Groups (Deciles) at National Level and Gini Co-Efficient Household Income Group 2010 Total 100 0. 8. 9.7.7 below. 16.00 2005 Rural 100. Household Income and Expenditure Surveys (HIES)-2010 It is observed from the above Table that   household nominal income and expenditure and consumption expenditure have increased gradually over the years.319.78 2. and by 25.88 2. the monthly household nominal income in 2010 was Tk.76 1. The monthly household expenditure increased by 82.80 3.477 in the urban areas.98 3. 6.22 4.203. Tk.49 5.10 5.01 Total 100.95 5.200.3 percent in 2005 over the year 2000.608 and Tk. 11.531 respectively in 2010. the average monthly household expenditure was at national.53 4.63 4. monthly household nominal income was Tk.61 National Lower 5% Decile-1 Decile-2 Decile-3 Decile-4 236 .54 percent over 2000. 9. in 2005.59 percent in 2010 over 2005. which has increased by 59 percent in 2010 over the year 2005 and it increased by 23.02 3.88 2. Table 13.00 Rural 100 0.648 in the rural areas and Tk. it was Tk.67 1. 5.134.00 0.00 0.

37 0.17 8.60 crore was made to the welfare fund for poor lactating mother and Tk 293.61 0. Selected Programmes for Poverty Alleviation Social Safety-Net Taking into consideration the attainment of the targets of Millennium Development Goals (MDGs) linked with poverty alleviation.497 Decile-5 Decile-6 Decile-7 Decile-8 Decile-9 Decile-10 Top 5% Gini Co-Efficient Source: Bangladesh Bureau of Statistics (BBS).31 7.428 Urban 5.73 11.43 7.458 Rural 6.6 that income shares accruing to households belonging to Decile-2 and Decile-10 decreased in 2010 over the year 2005.04 crore was allocated for old age allowance. Under social safety-net.01 7.94 35.556.65 9.77 23.08 30.2 as allowance for the destitute women. 237 . Although at the national level income of the top 5 percent households significantly declined at the same time (from 26. 700 crore was made to establish the Climate Change Fund.430 Urban 6.452 Total 5.53 10. an allocation of Tk.92 23. sufficient allocation has been made for 11 social protection programmes with total cash transfer of Tk.63 9. an allocation of Tk. Decile-3 and Decile-4 remain about the same in 2010 at national level as in 2005.18 14. Tk.84 24.61 percent).50 15. in FY 2011-12.  the slightly lower Gini Co-efficient in 2010 over 2005 shows reduced social inequality.08 34.74 crore for national service.64 26.66 6.78 8.70 of which Tk.43 33.31 11.32 9.49 15.069.  Decile-1.05 was made against social protection and social empowerment programmes in the revised budget for FY 2011-12. Tk.50 15.93 0.54 33.89 22.96 7.93 0.48 41. Household Income and Expenditure Surveys (HIES)-2010 It is evident from Table 13. 22.06 11.64 9.7. 892.03 0. an allocation of Tk.07 37.  the percentage share of income of the lowest 5 percent households remains almost the same in 2010 and 2005 (0.06 15. 360 as allowance for insolvent freedom fighters.43 7. While households’ income belonging to Decile-5 to Decile-9 increased in 2010 over the year 2005.30 11.87 16. 331.39 0.78 percent in 2010 and . Moreover. In addition.467 2005 Rural 6.27 11. 32.93 percent to 24.77 percent in 2005).Household Income Group 2010 Total 6.

27.57 3184.54 58. 21 crore from Tk. and Directorate of Livestock and BSCIC.  Increased flow of fund to Palli Daridra Biamochon Foundation (PDBF).7: Allocation Pattern of Social Safety Net Programmes (In Crore Taka) Programmes Cash transfer (various allowances) programmes Cash transfer (special) Food security programmes: Social Protection Micro credit programmes Miscellaneous fund Source: Finance Division. 22.02 3187. physically handicapped and orphans.  Allownce for children living in Government Shishu Paribar and other residential accomodation has been increased to Tk.52 7232. Social Development Foundation (SDF).77 Budget (2011-12) Revised 7148. neglected and financially 238 . The allocation pattern of the different categories of social safety net programmes during FY 2011-12 is shown in the following table: Table 13.  Expediting disbursement from the micro-credit funds of Rural Development Board.Apart from this. Directorate of Women Affairs.90 crore. Directorate of Youth Development. 100 crore from Tk. the Government took the following steps  Increased rate and coverage of allowances for the poor elderly citizens.17 6457. Directorate of Social services.40 crore. Infrastructure Development Co. Bangladesh NGO Foundation (BNF). block allocation for disaster grant was also increased to Tk.30 55. During FY 2011-12.09 343. Palli Karma Shahayok Foundation (PKSF). destitute women. ration for the families of martyred and insolvent freedom fighters increased to Tk. Ministry of Finance.10 crore respectively.54 crore from Tk.57 crore. (IDCOL). allocations for micro credit programmes of PKSF.58 Cash Transfer Programmes under Social Safety-net Programmes: Some selected cash transfer progammes under the overall social safety-net programme are briefly stated as follows: Old-Age Allowance Programme : The Government started this programme in consideration of the socio-economic condition of destitute. Tk. Budget (2010-11) 6359. Municipal Development Fund (MDF). Directorate of Fisheries. 150 crore and Tk. 13. Besides.Ltd. insolvent freedom fighters.12 340. SDF and BNF have been increased to Tk 188. 85 crore.

Besides. 160.2 crore. 2000 .39 crore has already been disbursed under this programme against which an amount of Tk. Honorarium Programme for Insolvent Freedom Fighters: This programme is meant for improving the standard of living of freedom fighters. In FY 2011-12. 50. The fund provides housing loan to the NGOs at the rate of 2. So far. 35. Training and Self-Employment Programme for Insolvent Freedom Fighters and Their Dependants: The objective of this programme is to train up the freedom fighters and their dependents for developing their skill and making them eligible for self-employment. 15. In FY 2011-12. Deserted and Destitute Women: This programme was introduced to provide to the rural poor and destitute women specially the widowed and deserted women. An amount of Tk. 331.96 crore was made for this programme.86 lakh. 300.0 percent simple interest which in turn provide housing credit to the rural poor people at the rate of 6.65 crore was recovered up to December 2011.2 lakh. 350 as well as providing support to scale up nutrition for new-born babies and mothers and build awareness of mothers by providing training on health. 42.50 crore was made of which Tk. Allowance Programme for Widowed. Administered by the Ministry of Social Welfare. The recovery rate is 56 percent.0 percent simple interest for a period stretching up to 10 years. 32.insolvent elderly citizens. Insolvent persons with disability received monthly allowance at Tk.04 crore in FY 2011-12 and 2. an allocation of Tk. this fund has received Tk. an allocation of was Tk. an allocation of Tk. 300 in FY 2011-12 and the beneficiary coverage stood at 9. the beneficiaries receive a monthly allowance of Tk.50 crore from the Government. In FY 2011-12. 102. various programmes are being undertaken by the NGO’s to enhance the 239 . this programme was introduced for providing allowance at a monthly rate of Tk.475 million elderly people are receiving this allowance at a monthly rate of Tk. The budget allocation for this programme in FY 2011-12 was Tk. the Ministry of Social Welfare is implementing this programme. nutrition and other issues.50 lakh freedom fighters at a monthly rate of Tk. Maternity Allowance for Poor Women: According to the target for the FY 2011-12. 300.00 crore. 360 crore was made for 1. 892. poor and lower middle class segment of the society back in 1997-98 through a budgetary allocation of Tk. the Government made an allocation of Tk. The number of beneficiaries stood at 2. this programme received an allocation of Tk. Allowance for the Physically Challenged Insolvent Citizens: To provide subsistence to the physically challenged insolvent citizens.1 crore. Grihayan Tahabil The Government created a fund titled “Grihayan Tahabil” for the homeless. In FY 201112.60 crore allocated allocated for poor lactating mother in urban area. Under this programme. Fund for Rehabilitation of the Acid-Burnt Women and the Physically Handicapped: The Government introduced this fund for rehabilitation of acid-burnt women.

00 crore. Tk. Tk.000 metric tonnes of food assistance has been provided. In FY 2011-12. 1. 243. 293. For this programme. 1. 110. this programme for rural infrastructure renovation received an allocation of 3. Child Development Centre.689 beneficiaries have received food assistance and a total 2. Vulnerable Group Feeding (VGF) and Rural Infrastructure Maintainance Programme (Test Relief-TR): The Ministry of Food and Disaster Management has allocated food grains equivalent to Tk. Under the TR programme. Other On going Programmes under Food Assistance Initiatives Food for Works Programme (FFW): Being administered by the Ministry of Food and Disaster Management. In addition. the Government launched similar larger programme giving preference to the ultra-poor and capable unemployed people of rural areas all over the country at a cost of Tk.19 lakh metric tonnes (30 kg per month) food assistance.99. The objectives of this programme are (a) employment generation and enhancing purchasing power of the ultra-poor (b) creating assets for the poor (c) build up small scale infrastructures and their maintenance and environmental development in rural areas.277 beneficiaries have received total 16. 133. Vulnerable Group Development (VGD) Programme: Under this programme. Tk. 240 .10 lakh metric tonnes of food grain has been allocated. As on June 2012. 451 crore have been allocated for the programmes namely Employment Generation Programme for the Ultra poor. a total of Tk. the recovery rate was 87. Tk.000 crore.176 crore in FY 2009-10. Special Programme for Irrigation and Waterlogging. 7. 250 crore.47 crore for rural housing programme and 51. Ekti Bari Ekti Khamar respectively.47 crore has been released against the allocation of Tk.income generating capabilities of the beneficiaries. a total of 7. As on June 2012. the government allocated Tk. at a varying scales like Tk.49. Employment Generation Programme for the Ultra Poor In line with 100 days’ employment generation programme introduced in FY 2008-09.84 crore has been released as grant for the people adversely affected by natural calamities. 2.000 crore in FY 2011-12. On going Programmes under the Social Safety-Net The Government has been implementing different innovative projects along with sector wise diversified programme and schemes with a view to reducing poverty at a faster pace. As many as 523 NGO’s are working in the field covering 450 upazilas of 64 districts of the country. National Service. So far.87 percent. It is to be noted that in FY 2011-12.00 crore and Tk. an amount of Tk.70. a total of 4.55 crore. 10. Tk. a total of 14.685 houses have already been constructed. 1.71 lakh metric tonnes of food grain. Service and Assistance Centres for the Disables.74 crore.14 crore has been recovered against the total recoverable amount of Tk. 97. 4 lakh for FY 2011-12.

the project will supply cows. The project has directly been supporting around 10 lakh households.00 crore against which Tk. For the capital formation of the rural poor people.67 lakh has been disbursed to as many as 82. Up to June 2012.492. tin for houses.00 lakh was allocated to as many as 473 upazilas of 64 districts from FY 2003-04 to 2007-08 and a total of Tk.92 crore and the project is expected to be completed by June 2013. the project is providing revolving funds for the income generating activities of the beneficiaries. tin for houses.690 families have been rehabilitated in FY 2011-12 under this project. In FY 2011-12.087 barracks were constructed. Around 12. Over and above. 200 per month per member against their savings). 145. Under this projects there are other ongoing initiatives like food processing and marketing and utilisation of lands of non-resident land owners. The total revised outlay of the project is Tk. the total allocation for this project was Tk.820 women up to December 2011 as revolving fund. To implement micro credit operations for selfemployment of women. Under the project. tree plants and seeds of various vegetables according to the need of the people and establish families as the main centre of economic activities through village organisations.430 families and 94.58 crore was spent (98. 1. poultry and tree plants have already been distributed for 48. Micro-credit Programme for Self-employment of Women The main objective of this programme is to improve the socio-economic status of women through poverty reduction and generation of self-employment opportunities by providing microcredit to the poor and distressed women.000 families. One Farm) The Rural Development and Cooperative Division has been implementing Ekti Bari Ekti Khamar (One House One Farm) as a priority project in 17. Ashrayan project was introduced in 1997. Besides. an amount of Tk. 6.200 families. 14. cows. The main objectives of the project are to: convert every house of the targeted villages into effective farm.236 poor and destitute people benefited from this Social Safety Net Programme (Food for Work Programme). 142.388 villages (9 villages from each Union) of 483 upazilas since 2009. Ekti Bari Ekti Khamar (One House. A total of 16 thousand metric tonnes of foodgrains (wheat) was allotted to different districts for the earthfilling of 108 Ashrayan villages.723. Under this project. As many as 5.33%). as many as 1. the Government has initiated micro-savings programme and is encouraging the poor by providing bonus equal to the amount deposited by each of the members of the village development organisations (Tk.225. 17. homeless and rootless families and families affected by river erosion. poultry.300 village cooperatives has been formed in 483 upazilas.Ashrayan-2 (Poverty Alleviation and Rehabilitation) Project To rehabilitate the landless.280 families respectively. 3. establish 5 demonstration firms with credit facilities and ensure maximum utilisation of rural assets including non -resident land owners’ land. Against which an amount 241 . 21.

98 crore has been recovered against the coverable amount of Tk.of Tk.261. 89. The fund is being used as revolving fund for this purpose as per agreement.” New Development Projects related to Poverty Reduction 1. An amount of Tk.10 lakh has been recovered.72 crore among 2.364 borrowers.00 lakh has been allocated to Jatiyo Mohila Sangstha. 336.52. Some of the special credit programmes of Karmasangthan Bank are as follows: Micro-Credit Support for Voluntarily Retired/Retrenched Labourers/ Employees of Mills and Industries Under an agreement between the Ministry of Labour and Employment and Karmasangsthan Bank. The cumulative disbursement was Tk 1.85 crore) 4. Improvement and Quality Seed Production of Rice. For FY 2011-12. Wheat and Maize (with an allocation of Tk.16. Realised fund has been allocated per capita Tk.54 crore and recovery rate against recoverable amount is 93 percent.96 crore has been disbursed among 2. provides credit facilities to the unemployed youth on easy terms and at a simple rate of interest. an amount of Tk. the Bank is implementing the programme for alleviation of poverty of voluntarily retired/retrenched industrial workers by creating employment opportunities as well as by providing retraining facilities.12 crore) 3. Besides this. 60.15. Poverty Eradication through Social Aforestation (with an allocation of Tk. 328.17 crore) Programmes of the Karmasangsthan Bank for Generating Employment for the Unemployed Youth Karmasangsthan bank.000 to Tk.25 crore has been 242 . 5.91 crore. Tk. Under this programme. a state-owned financial institution. in FY 2011-12 a total amount of Tk.610.829 loanees and recovered Tk. 4. 5.476.164 borrowers against an allocation of Tk. through its network of 209 branches.30 crore among 37. Promotion of Legal and Social Empowerment (with an allocation of Tk. the Bank is implementing this programme.338 loanees. Till now Tk. Poverty Eradication and Ensuring Livelihood for the People Living in Economically Backward Areas (with an allocation of Tk. 50. 81. An amount of Tk. up to June 2012. 7.43 crore.000 as loan in the form of revolving fund through a total of 106 branches of Jatiyo Mohila Sangstha. Credit Programme to Assist the Agro-based Industries Under an agreement between the Ministry of Finance and Karmasangsthan Bank. 54. An amount of Tk. The cumulative recovery now stands at was 1.00 crore has been allocated for the programme titled “Rehabilitation and Alternative Employment for Beggers.00 crore has been allocated. The recoverable amount was Tk 1.88 crore representing a recovery rate of 82 percent. 15. 30 crore) 2.42 crore has been disbursed among 16.00 crore.163.350. 41. In FY 2011-12. 66. 1. the bank disbursed an amount of Tk..

20. 5.000 . sales and display centres for promoting the product of women entrepreneurs. Early Learning for Child Development Project (ELCD).Tk. 59. Important ongoing projects/programmes of the Ministry of Women and Children Affairs are: Vulnerable Group Development (VGD). The main objective of the VGDUP project is to help 80. poverty has been alleviated by improving the socio-economic condition. The recovery rate being 92 percent.54 Amount 1040. Jatiyo Mohila Sangstha has been operating a micro credit programme with a grant of Tk.91 (%) 93 85 92 228582 23756 252338 Recoverable Recovered Recovery rate No. daycare centre for children.72 Amount 1116. VGD is the largest programme of this Ministry which provide food assistance and package training. Micro-credit Programme for Selfreliance of Women. 243 . grants for poor distressed women and children.51 145. Besides these.8: Disbursement of Loan by Karmasangsthan Bank (Cumulative upto June 2012) (Disbursement of Total Loan Amount In Crore) Disbursement Name of program Amount Own Program Special Programs Total 1322.00 lakh (revolving) for self-reliance of poor and unemployed women. of Source : Karmasangsthan Bank Poverty Reduction and Employment Generation Activities under the Ministry of Women and Children Affairs: In a bid to alleviate poverty of women and eliminate gender disparity.91 1163.50 1476.recovered against the recoverable amount of Tk. With the intervention of this project. Table 13.000. 120.00 123. the Government has adopted the National Policy for the Advancement of Women 2011 and National Policy for Children 2011. 400 as allowance). The programme is carrying out its activities through the 64 district and 28 upazila branches of Jatiyo Mohila Sangstha. nutrition and living standard as well by providing training and financial benefit to the extreme poor especially the women. The amount of credit ranges between Tk. Vulnerable Group Development for Ultra-poor (VGDUP).22 154. empower and establish the rights of women and children by mainstreaming them in the overall development process of the country. working women hostels.03 1261. This fund is also used as revolving funds as per the agreement. establishment of agriculture and computer training centres for the well-being of women and children.000 VGD Card holder destitute women by prodiving financial benefit and income generating materials (in 24 months cycle Tk. there are other facilities like maternity allowance for poor mothers. of Loanees Employment created 825181 85759 910940 Nos.03 crore.

As many as 1 lakh 80 thousand people have been directly benefited from this programme. Pabna. Kurigram. Comprehensive Village Development Programme and Char Livelihood Programme (CLP). socio-economic development by promoting micro-credit activities. Economic Empowerment of the Poorest (EEP) in Bangladesh Project The objective of EEP project is to help 1 million people in rural and urban areas by lifting them out of extreme poverty and provide sustainable livelihood by 2015. an amount of Tk.82 percent of total allocation.41 crore was spent till February 2012. it was implemented as pilot scheme in 1.275 cooperatives have been formed and 3. as many as 4.000 extreme poor families are provided with asset worth Tk. 794. Lalmonirhat.107. As CVDP model is successful.57 crore in which the members’ savings stand at Tk. These projects/programmes focus on poverty reduction. Rangpur. Currently. A total of 3. Economic Empowerment of the Poorest (EEP).07. The programme is scheduled to be implemented during the period from July 2011 to June 2016 at a cost of Tk. 14. 11.799 families and 4.623 cooperatives have been registered. Nilphamari.500 per beneficiary household according to their need and skill and has been provided khas land. Up to February 2012. Capital formation of these cooperatives amount to Tk. UK and the Australian Government. In FY 2011-12. 887. 64 districts and will continue upto June 2014. a total of 1.42 crore and members’ share at Tk.15 crore. Under this project.Activities of the Rural Development and Cooperatives Division in Poverty Reduction The Rural Development and Cooperative Division (RDCD) by implementing various projects/programmes has been contributing to the efforts of reducing the poverty. which is 49. A total of Tk. Gaibandha and Jamalpur. 55. 61. As of now. implementation of the second phase has already begun with the support from DFID. CVDP used to be considered as Rural Development Model during 1999 to 2004. the programme is extending its coverage over 125 union of 33 upazilas under the districts of Tangail.21 crore was allocated for this project in ADP against which 53. The project will be implemented at a cost of Tk. 70. Some dedicated projects being implemented through RDCD are Ektee Bari Ektee Khamar. a total of Tk. 244 .27 crore has been disbursed by CVDP as credit.25. CVDP-2nd Phase is being implementing in 4.34. Comprehensive Village Development Programme (CVDP) 2nd Phase: The main objective of Comprehensive Village Development Programme (CVDP) is to promote overall development of all segments of population of a village by bringing them under a single co-operative organisation.19 crore over a period from February 2008 to December 2015. Char livelihood Programme: Following the successful implementation of the first phase of the programme.87 crore. 47.461 persons are included in CVDP’s cooperatives up to June 2012.275 villages of 66 upazila.10 crore has been spent for asset transfer and whole activities of the project.575 villages of 21 upazila of 19 districts. and employment generation.

5 deep and 10 shallow tubewell were also installed through this project. Bangladesh Milk Producers Cooperative Union Ltd.520. 10.783 respectively. Recently.442 multipurpose cooperatives. BRDB has so far implemented a total of 74 projects and programmes. Bangladesh Rural Development Board (BRDB) BRDB is the largest public sector organsation engaged in rural development and poverty alleviation. 5. the number of milk cooperatives and its individual members are about 2. 1. accelerating family planning and reproductive health services. 8. During FY 2011-12. These cooperative societies are making significant contributions to the economic development and poverty alleviation by increasing production and employment opportunities in the country. At present. and 1. rural development and rural infrastructure development. 10. Comilla The Comila Model for rural development was the product of this academy. Since late sixties. Milkvita collected around 7 crore 11 lakh litres of milk against the target of around 8 crore litres. Presently. Bangladesh Cooperative Bank ltd.583 trainees took part.247 youth cooperatives.Activities of the Department of Cooperative Currently there are as many as 1.203 saving and credit cooperatives.000 and 73. BRDB have been working for increasing agricultural production through two tier cooperatives (TCCA & KSS).67 crore and realised Tk. mobilising capital.94.688 female co-operatives. These societies have so far disbursed loan to the tune of about Tk. BARD conducted 85 training courses where as many as 4. It brought remarkable changes in the field of agricultural development. BRDB is implementing 10 projects and programmes. In FY 2011-12.307 Ashrayan cooperatives etc. BARD has launched the Regional Cooperation Fund (RCF) with the collaboration of CIRDAP. is a specialised bank of the cooperative sector which mainly disburses micro-credit to agriculture cooperative societies.230 agriculture and farmers co-operatives. 7 community centres and 8 school buildings were constructed.486 registered co-operative societies in Bangladesh with 91.1 km rural road. (Milkvita) is a pioneer organisation in the dairy sector. Since inception.01 crore. improving public health and sanitations for poverty alleviation in line with the government strategies. 1. imparting training. 245 . 27.420. Through this project. 9 culverts. 8. 1.888 water management cooperatives. Now. transferring technology. It has successfully implemented the ‘Integrated Community Development Project in Burichang Upazila” with the assistance of Bangladesh Government and KOIKA.577 milk producer cooperatives. empowering women.787 members. BRDB has extended its activities through micro credit operations. there are as many as 70. Of the total network of the cooperative societies. 5. Many of them are poverty focused and micro-credit based.84. Moreover.860 fisherman cooperatives. Bangladesh Academy for Rural Development (BARD).080 weavers cooperatives. 30.

Mymensing. Barisal. Pabna. Rangpur. as many as 68. PDBF has also installed 13. Employment has been created for about 1 lakh people through small entrepreneur loan operations. LGED has already prepared a long term Master Plan for a period from 2005-2025 for rational development of rural roads and 246 .607 participants which include 12. An amount of Tk. 9. Bogra has been organising training courses. Chadpur. Bogra.170. During July 2011 to June 2012. Small Farmers Development Foundation (SFDF) SFDF. conducting research and implementing action research projects for poverty alleviation and socio-economic development for the rural people of the country.500 rural people are having access to electricity. Patuakhali and Borguna districts. initiated colletaral-free micro-credit programme for the first time in Bangladesh. the foundation is working in 302 upazilas of 44 districts of 6 administrative divisions of Bangladesh. The broad objectives of the training activities of the Academy include transfer of modern agricultural technology and skill and human resource development. This covers one third of the geographical area of the country with the highest incidence of rural poverty. 67.204 male. Self employment opportunities have been created for about 7. The Foundation has disbursed an amount of Tk. It is to be noted that 95 percent of the total beneficiaries of the programme are women. self-employment and income generating activities against which an amount of Tk.65 percent. The Foundation is implementing this programme in 55 upazilas of Comilla. The recovery rate of credit stands at 94.500 solar home system in 84 upazilas of 18 districts as of September 2012 which has been producing on average 3550 kw electricity and as a result approx.403 female and 27.329 members have been enrolled under the foundation. Bogra Rural Development Academy (RDA). Local Government Engineering Department The Local Government Engineering Department (LGED) under Local Government Division has been implementing a number of projects/ programmes for the development of rural and urban infrastructures and Small Scale Water Resources Development Programmes of the country and extending technical assistance to the local government institutions. Kurigram. 5. the academy organised 248 traning courses which were attened by 39. Palli Daridro Bimochon Foundation (PDBF) At present. Bhola. About 35 lakh people has become solvent directly and indirectly. Up to June 2012. The academy dealt with 53 research projects in FY 2011-12.12 lakh has been disbursed so far to the members as collateral-free micro-credit for undertaking initiatives like increased agricultural production.Rural Development Academy (RDA). PDBF has planned to extend its activities to more than 100 upazillas in current fiscal year.820. Around 95 percent of the beneficiaries of PDBF are women.50 lakh rural people.908.29 crore as micro credit and small entrepreneur loan as of September 2012 and the recovery rate of the disbursed loan is 98 percent.13.32 lakh has been recovered.

an amount of 23 crore has been distributed through a project titled “Poverty Alleviation through Integrated Fish Cultivation” and a further amount of Tk. Besides this. as many as 1. constructed 11. (g) Human Resources Development and (h) Environment and Afforestation Programmes.656 growth centres. and Rehabilitation Programme for the Acid-burnt. (f) Training. The sector is creating a huge job opportunities for the unemployed youth and thus making significant contribution to the efforts of reducing poverty. a total of 2. The programmes are: (a) Programme for Social Integration and Poverty Reduction.4. The poor borrowers covered under 247 . Evaluation and Publication Programme. a very positive impact is evident on alleviation of poverty and fish cultivation as well. A total of Tk. Moreover. Urban Community Development (UCD) Programme.5 crore has been disbursed as microcredit to expedite the prograrnmes undertaken by the department.666 m bridges/culverts on these roads and planted trees along 21. Poverty Reduction Programmes under the Ministry of Social Welfare Most of the programmes being implemented by the Ministry of Social Welfare are primarily focused on poverty alleviation and are intended to bring about welfare of the disadvantaged section of the community . Programmes under the Fisheries Sector to Alleviate Poverty Most of the activities of the Department of Fisheries (DOF) focus on poverty alleviation.000 beneficiaries received credit under different programmes. PKSF used to finance only Rural Micro Credit through the provision of microfinance services to the poor through its partner organisations (POs).62.11.other infrustrutures in order to achieve development equity throughout the country. Since its inception up to FY 2011-12. (b) Programme for Social Security (c) Programmes on Welfare and Service Delivery (d) Programmes on Addressing Social Disintegration. (e) Community Empowerment Programmes. union and rural roads. So far. LGED has so far developed 82.039 hectares of cultivable land has been brought under flood control and drainage facilitated area. 1. Information and Communication Technology for Poverty Alleviation The Government has decleared the ICT as a thrust sector to expedite the process of achieving the target of MDG within 2015 by using the ICT.5 crore through other projects. Research. A total of 4. Palli Karma-Sahayak Foundation (PKSF) Earlier. 2.793 rural markets have been developed and 2.260 km upazila. Under the Programme for Social Integration and Poverty Reduction four programmes are specially earmarked for poverty reduction which are: Rural Social Service (RSS) Programme.592 union parishad complex buildings have been constructed.60. Poverty Alleviation through Rural Maternal Centres (RMC).569 km of those roads. Following implementation of this micro-credit programme under DOF.

72 98. 11357. Kuwait Goodwill Fund for the Promotion of Food Security in Islamic Countries Programme.52 1144.42 67068.the PKSF’s microcredit programme are actively participating in different income and employment-generating activities under the mainstream programmes and also under some special projects.55 262 98.89 248 97. Finance for Enterprise Development and Employment Creation (FEDEC).57 96. Developing Inclusive Insurance Sector Project (DISP).50 99.9 Status of Micro-Credit Programmes of PKSF (Tk. as listed below: Rural Microcredit (RMC).00 13520.28 2320.88 1352.24 248 .21 257 98. in crore) Financial Year Particulars Cumulative Up to June 2005 Loan disbursement Loan recovery Recovery rate (%) Partner Organizations Number of borrowers at the end of FY Female Male 2213. Enhancing Resources and Increasing Capacities of Poor Households Towards Elimination of their Poverty (ENRICH): A Holistic Approach to Household-focused Poverty Eradication.92 1678.39 243 1350. Learning and Innovation Fund to Test New Ideas (LIFT) under “Promoting Financial Services for Poverty Reduction (PROSPER)”.24 96.62 231 5522406 5033129 489277 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Cumulative (Up to June 2012) 692.25 2320. Community Climate Change Project (CCCP) and Institutional Development (ID) Loan Programme.08 1819.70 1408.23 13677.85 Up to June 2012 Cumulative loan disbursement Loan recovery rate (%) Disbursement in FY 2011-12 From PKSF-POs From POs-Borrowers Source: PKSF.50 271 13677.53 1941. Urban Microcredit (UMC). Microenterprise (ME) Loan.73 257 98. Agriculture-sector Microcredit (ASM). Ultra Poor Programme (UPP).70 1931.63 98.42 80588.72 96. The status of PKSF’s micro-credit programme is shown in Table 13:9 below: Table 13.26 2137. Programmed Initiatives for ‘Monga’ Eradication (PRIME) under “Promoting Financial Services for Poverty Reduction (PROSPER)”.94 1009.00 638.63 268 98.47 98.42 10293.61 437. Seasonal Loan (SL).50 271 6651310 6088260 563050 6778262 7709364 8283814 8262465 8386214 8228533 6651310 6207971 7063709 7610581 7597067 7723712 7527546 6088260 570291 645655 673233 665398 662502 700987 563050 Up to June 2011 Particulars Cumulative loan disbursement Loan recovery rate (%) 98.20 1894.

59 percent from Tk. The total savings has also increased by 16.63 crore to as many as 6. BRAC: ASA: ASA initiated its operation in 1978 with the commitment to bring about socio-economic development of the disadvantaged community. NGOs are also implementing microcredit programmes to strengthen the efforts of poverty reduction in the country.10 crore. 7. As per the new law.. The total outstanding loan of this sector disbursed among 188. Other than micro-credit programmes. 20.95 crore in 2011. It is also to be noted that top 30 institutions are in control of over 80 percent of the market share while three largest organisations have control over 50 percent in terms of both clients and total financial portfolios. 5. It is found that 30 organisations (excluding Grameen Bank) disbursed Tk. health. it specialised in microfinance programme and developed an exclusive client. a Micro Credit Regulatory Authority Act came into force in 2006 and a Microcredit Regulatory Authority (MRA) was established. 17. Activities of Major NGO's It is the largest non-government micro-credit provider. the cumulative saving deposits and withdrawal were Tk. 58.000 crore which is around 20 percent of total loan outstanding in which the top 30 NGO-MFIs’s share is around 50 percent. BRAC has disbursed an amount of Tk. NGOs established with the purpose of poverty alleviation have created huge job opportunities for the poor of this country by their microcredit programmes.196 are women) till June 2012.211. 24. the model is widely acclaimed.friendly model of microcredit with favourable features at low cost. It is to be noted that over 95 percent of the savers are women. During the period from July 1992 to June 2012. it also actively participates in poverty alleviation. In order to discipline mocro-credit operations of NGOs.05.079 crore and Tk. 64. education and social development initiatives. It is also observed that the amount of outstanding loan disbursed to around 6 lakh borrowers represent only 3 percent of total borrowers.045 beneficiaries (of which 5.Micro-credit Programmes of NGOs In tandem with different kinds of social programmes of different ministries of the Government. MRA certified as many as 535 NGOs for carrying out microcredit operations. no organisation can run microcredit programme without having a certificate from MRA.138.352 crore in FY 2011-12 compared to the previous fiscal year. Now.9 lakh poor people (only licensed MFIs) has increased by 19.096.588 249 . 7. 4.572. extreme poor living in char areas.013.498. It especially provides various micro-credit and training to underprivileged and marginalised groups like poor women. Over time.380 crore in FY 2010-11 to Tk. the total number of employees of all NGO-MFI in Bangladesh is 1. It is observed that the outstanding micro enterprise loan is Tk. retired and sacked employees of state owned industries. At present. Up to June 2012. MRA is mandated to monitor and regulate the activities of all the organisations.15 percent to Tk.785 crore in FY 2011-12. The amount recovered against the amount disbursed stood at Tk.

139 villages and 2. it is implementing its programmes with 5.274 of which 15. ASA has been facilitating loan insurance and life insurance (Member’s Security Fund) for its group members to protect themselves against any sudden economic shocks. 187. 222.491 crore.489. the working area spread out to 27 districts. It plays an important role for overall development of the community. BURO. In 1992. PROSHIKA: Proshika is one of the largest NGOs operating in Bangladesh.79.23. the cumulative disbursement and recovery stood at Tk.230 villages.99 crore to 1. The beneficiary coverage of this entity is 17. Bangladesh: Established in 1990 in Tangail this organisation is intended to reduce both income and human poverty by extending credit programmes to the poor.958 crore and Tk.045. although the organisation formally took off in October 1976.172 landless men and women for poverty reduction and self-employment. which extends throughout Bangladesh and covers 63 districts. 1. 4. through the state-owned commercial banks. At present. 54. To date. Currently. In the same period. It started its activities in 1990 in Tangail.677 people have availed themselves of these opportunities and 12.crore respectively. ASA’s cumulative loan disbursement and recovery stood at Tk. it has helped 36.95. 5. 1. and balance at the end of June 2012 stood at Tk. socio-economic development and empowerment of women. the activities of Proshika are going on in more than 24. It has 250 . 1. ASA has been assisting 46 NGOs with technical supports and also with loan funds since 1995. Up to June 2012.25.361. Society for Social Services (SSS): This organisation started its operation from Tangail in 1986.06.504 crore (as of end of June 12). At the beginning. 860 unions.72.120 women to organise themselves into groups within its operational area. 4.16. and 7. while loan outstanding (principal) was Tk. a sum of Tk.107 are females. more than 1. Since 1985 it has been working for the socio-economic development of grass root level through implementation of several integrated programmes.26 crore against 14. Up to June 2012.36. SSS was registered with Directorate of Social Services in February 1987.70. 3. it worked as an attached cell of Ministry of Agriculture and Forestry. SWANIRVAR BANGLADESH: It came into being in 1975 through the joint efforts of the Government and NGOs. To promote the role of regional small and emerging NGOs in poverty alleviation. TMSS: Thangamara Mohila Sobuj Sangha (TMSS) is a national non-government organisation that works for poverty alleviation.380 slums of 59 districts.574 beneficiaries and recovered a sum of Tk. Up to June 2012.454 crore respectively.90 crore has been disbursed to 1.425 million borrowers. it got recognition as a partner organisation of PKSF. It began its operation in a few villages of Dhaka and Comilla districts in 1975. Then in 1990 and 2007 it got its registration from the NGO Bureau and Micro Credit Regulatory Authority respectively.530 projects to create employment/self-employment opportunities for the poor. Total loan recovered during this year is Tk.106.17.48 crore respectively.385 families. it has disbursed a total of Tk.29 crore. It covers 135 upazilas.074 households have overcome poverty.39. Till 2011. 66 muniticipalities. The loan was disbursed among 4. Since inception. 49.78 crore and Tk. During FY 2011-12. PKSF and other sources Swanirvar Bangladesh disbursed a sum of Tk.806.

Upto June 2012.96 475976 237.82 1088.01 606. 1.44 127176 108105 19071 197.46 299158 154.15 262.48 101.11 220.078.89 413.10 330. other NGOs are also contributing to the process of socio-economic development of the country.13 4793.28 6281107 251 .62 49454.95 6674058 4716922 1957136 312 298 8209 6759 3552 6110.3 75.42 10258954 9859718 399236 2899.45 870.93 548.63 58498.8 457. 5.32 crore and Tk.42 2759.71 9971 10524 553 571.65 682.74 181.42 124.91 Beneficiaries 410292 BURO.16 337.85 6065.247.39 5310317 5140494 169823 6232.88 Recovery 276.94 129894 126332 3562 96.73 84.47 crore and Tk.18 2579. family planning.5 746938 1090.04 209.84 4837099 4708234 128865 4261.18 94.56.80 64870 53872 10998 1361.57 104702 97342 7360 131.) Recovery (Tk. up to June 2012.07 crore respectively.16 11873.81 368579 ---- 1642.82 5988134 3917566 2070568 288 331 20076 2149 13214 4131.97 7276677 5144662 2132015 267 284 261062 193698 67364 6142.21 2926.23 Beneficiaries 329318 SHAKTI FOUNDATION Disbursement 404.05 1043541 711.88 7399.85 6027 513.69 99826 176. pre-primary education.54 94945 90565 4380 91.26 602273 813.22 1492 .66 19668077 18518895 294006 3258.05 4345 4034 8379 991.03 277.65 661.02 115470 150.26 126.91 101864 98807 3057 96.65 110.13 1175. It also actively participated in healthcare.32 5125.125.97 145.99 68587 179.73 1149947 1933.67 6387577 4115687 2271890 3317.56 839059 236.21 4362 7091 2729 514.01 1109.65 50134 ---- 137. Besides these.61 3712 6455979 4303787 2152192 317 343 15030 11478 17927 4836. 9 major NGOs have disbursed and recovered Tk.93 7370847 7108155 262692 8428.78 8054415 7614326 440089 8626.15 89544 202.93 124260 107333 16927 119.08.88 4955114 4501373 453741 119 136 70726 50704 20022 54957.08 7658.22 5292.91 61.38 152.12 5498293 4319440 1178853 222 353 178272 124790 53482 6866.23 410.46 147.95 11932 25242 13310 656.85 4227 3831 396 409.79 359.68 377. insurance and also remittance services.27 376710 590.74 385201 248219 216952 106.24 111.03 4955114 4501373 453741 4806 4968 2812127 1769223 1042904 13321. savings.10 6013045 5572196 440849 2004 (cumulative) 2005 2006 2007 2008 2009 2010 2011 (In Crore Taka) Up to June 2012 2012(cumu lative) 394.03 167113 147. water and sewerage management.93 41855 31311 10544 768.36 70. The status of micro-credit programmes of the NGOs is presented in the table below: Table 13.05 4935685 4297896 637790 207 238 137929 89654 48275 5276.27 700.93 133.87 5036. the total disbursement of credit and its recovery stood at Tk.89 1106.96 728.78 137. The number of beneficiaries stood at 2.45 331329 375.26 230235 159876 12019 75.73 305.701.82 5656257 4531002 1125255 195 225 171268 125708 45560 8670.99 8406.23 4688.11 181990 153.566 259.32.84 196 273286 318.99 8359993 8027262 332731 7375.54 3626.47 5059.58 465. women development and empowerment.839 70727 625482 5534.13 156108 140.72 6377.10: Status of Micro-Credit Programmes of Major NGOs NGO BRAC Disbursement (Tk. Bangladesh Disbursement Recovery Beneficiaries 537.34 22462 305.9 7560 8090369 7796769 293600 7568. On a cumulative basis.865.06 1848154 841. 1.9 123803 103614 20189 157.33 1082789 5865.28 crore respectively.26 6770338 6302946 467392 5138.86 985182 1191.92 2822.78 7727.46 157517 118.29 1795274 1506107 289167 447.2 133.86 939.97 14936 14124 812 292. disaster management etc.26 6013045 5572196 440849 64211.45.) *Beneficiaries Female Male ASA Disbursement Recovery *Beneficiaries Female Male PROSHIKA Disbursement Recovery Beneficiaries Female Male Swanirvar Bangladesh Disbursement Recovery Beneficiaries Female Male Caritas Disbursement Recovery Beneficiaries Female Ma0le TMSS Disbursement Recovery 9604.schemes of loan. on a cumulative basis. 5.90 161. plantation and social forestry.69 16519 10863 5656 1208.71 6934.

85 4955.74 3148.76 11577.3 17267.01 16220. Upto June 2012.1 12429.09 7184.52 130.77 204.51 7675.08 15419909 613.44 4802.59 6105.87 362636 351050 11586 16841.77 10295.8 457. education loan.66.13 13488307 946.48 423367 409188 14179 145078.504.61 612. of beneficiaries (cum.55 369883 353981 15902 17740.) Female 7174896 (cum.NGO Society For Social Services(SSS) Disbursement Recovery *Beneficiaries Female Male Total Disbursement Recovery *Beneficiaries 2004 (cumulative) 2005 2006 2007 2008 2009 2010 2011 2012 Up to June 2012(cumu lative) 341.09 413785 402706 11079 22891. 68. Grameen bank provides different kinds of services to address the diverse needs of the poor.90 68504.25 recovery (%) No.) 368880 190535 228696 236104 237096 245058 295913 317871 325203 4573681 6161452 6972351 7290604 7659739 7980581 8057039 8054249 7543776 4764216 6390148 7208455 7527700 7904797 8276494 8374910 8379452 8113 15118 9519 3653 2175 29 17 3 1258 279 648 246 86 40 7 1 2 98.55 18575.19 15716964 748.69 383.82 5019.06 11686054 260.54 4590.14 422075 401786 20289 20870.55 3769.90 and the amount recovered was Tk. It provides credit coverage to 81.57 12888.66 96.47 132247. The status of micro-credit programme of Grameen Bank is shown in Table 13.8 556.488.49 30492095 165.55 260110 253387 6623 10087. the total amount of disbursement by the bank stood at Tk. the total number of members stood at 83.11 97.54 lakh were females.89 2567 81382 8379452 8054249 325203 * No.62 15706.78 3489.71 184591 179511 5080 7887. Grameen Bank Upon completion of the pilot programmes on collateral-free loan.07 25608701 Source: Concerned NGOs.11.29 12742586 354.98 15111795 432.16 10762.53 832. It also provides credit to street beggers.16 below.24 6908.64 16715014 523.2 16882.82 356483 342208 14275 16565.49 98.20 96.95 98.95 423367 409188 14179 13657. Micro-Credit Programmes of Grameen Bank Cumulative up to June Cumulative 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Up to June '04 Disbursement Recovery Rate of 91.61 98.08 '12 76488.06 310.34 8754. of beneficiaries is not cumulative Micro-Credit Programmes of State-owned Commercial Banks (SOCBs) and Public Specialised Banks 252 .98 9276.89 320110 311383 8727 13045.52 5561.81 97. of Branches No. the Grameen Bank started its operation as a loan provider for the poor in 1983.74 20015. 76.382 villages of 64 districts and delivers products like home loan.37 2581. Table 13.89 20356.72 12995009 4045.79 lakh of which 80.89 96.) Male (cum.81 8851.02 293. of 45909 villages * No.

As many as 4.22 151.26 260.16 249.29 15808 18.25 72.22 53.967 beneficiaries have been covered by the credit facilities during FY 2011-12.22 19.06 74 351252 Rupali Bank Ltd.68 19.63 11629.27 63.19 75 62.85 3670490 485. On a cumulative basis.26 42.34 97. the cumulative credit disbursement and recovery stood at Tk.09 100.57 678.49 76.95 851.59.67 1535905 58.26 0 Agrani Bank 100.51 51.9 71 124483 560.52 553.9 425.47 97. Up to June 2012.19 16634 17.43 115383 339.23 21.54 crore respectively.49 104387 210.84 194675 30.54 54.61 251856 676.62 486.18.37 60. 253 .83 50083 54.42 78 632506 6163.99 1230.69 97.23 34.44 290.27 49356 98.73 14.27 76 108254 5686.63 400.11 84.73 99.79 88 16236 18.12: Status of Micro-Credit Disbursement of SOCBs and Public Specialised Banks (In Crore Taka) Bank 2004 (Cumulative) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Upto June 2012 10567.75 106. of beneficiaries 1345.4 288.41 878. of beneficiaries 982.82 99.24 75.61 66.44 743.23 69 12251 29. The recovery rate against the disbursed credit was 97.51 255.84 95.07 212.89 crore and Tk.81 81.37 82.54 87 1.02 43.06 158978 33.22 8004.7 30033 14.46 96.71 14.99 13.6 268.82 45.08 921.93 355.11 199190 557. the number of beneficiaries is 1.24 39% 1.03 15.48 189560 456.66 336.4 835399 193.317 Sonali Bank Disbursement Recovery Rate of recovery No.021 1726.44 percent.14 42435 182.53 47.16 139903 487.00 35 164906 723.92 31849 55.31 47761 47. 22110.28.23 28535 1459.22 88.81 86.99 100073 290.6 96 5954 847.02 677 165.06 87.06 4423.28 11333 344.02 77.31 2984784 Janata Bank 1869.09 145080 497.52 201841 410.37 106.56 95.4 93 16121 27.19 35044 52.92 400.32 59117 57.38 828.09.3 179188 617.36 512.66 30.95 68.99 101220 193.53.54 54.613. of beneficiaries Disbursement Recovery Rate of recovery No. of beneficiaries 158.34.06 177. Table 13. of beneficiaries Disbursement Recovery Rate of recovery No.17.83 74 124653 631.23 812.39 127.22 80.43 51. 21545.1 52028 53.23 71 93030 726.28 47834 29.28 29.24 63 130921 722.08 227.86 37.94 412.09 116.61 17.666 3837.37 3870.045 Bangladesh Krishi Bank Disbursement Recovery Rate of recovery No.84 103.The status of credit disbursement of 4 SOCBs and 2 public specialised banks is shown in Table 13.75 106.46 208478 755.36 1321.25 1912408 Rajshahi Krishi Unnayan Bank (since 2000) Disbursement Recovery Rate of recovery No.

27 77640 13316.563 28020 329889 58239 103819 2055161 Disbursement up to June' 12 (cumulative) 1444.71 1569. The status of micro-credit disbursement programme of other commercial and specialised banks is shown in Table 13.62 3458 22.1 486875 2161.67 Development of Microfinance Sector in Bangladesh: The microfinance sector is playing a significant role in the socio-economic development process in Bangladesh by providing credit facilities to the disadvantaged community of the country.5 169.012 27924 62679 7983 97858 1028546 Total 851246 1683 22702 659.00 95. **Cumulative figures are given according to the information given by the Bank.2 60.53 879.04 142.61 445568 1128.023 crore.46 1272.79 87.26 4904.65 4242 16.28 415736 1931.6 542087 2646.89 21545.06 58.12 601393 1015.45 72. the total number of beneficiaries was 20.35 3949.85 100 69.45 1643.22 7520 15. Total Source: Concerned Banks.67 17.96 98 95.61 686.32 22060. The following table presents the development of this sector in Bangladesh.55.99 908.64 77.99 2374. 19. 254 .78 23.161 and the cumulative disbursement of credit stood at Tk.48 -96.95 491848 1281.25 5672 21.09 10.95 108.60 347.13 below: Table 13.63 112.5 4 1591.02 11.44 2804 16.550 96 267210 50256 5961 1026613 Male 255373 1347 21370 554.05 1169.26 5584740 1078.15 63.08 5431 11.27 34.66 259874 4 34967 12853613 Source: Concerned Banks. of beneficiaries Total disbursement Recovery Rate of recovery o.95 23.89 83. Female 595872 336 1332 105.88 14.54 97.69 18. As of June 2012.16 71.21 99.14 63.33 137.7 85. Uttara Bank Ltd.83 2397.48 33977 15.78 19023 Rate of Recovery (%) 97.of beneficiaries 28.35 2524.97 12.49 5402 16.61 4885. Micro-Credit Programmes of Other Commercial and Specialised Banks Other commercial and specialised banks are also conducting micro-credit programmes to alleviate poverty and create self-employment opportunities alongside the state-owned commercial banks.50 9134 165.28 5.Disbursement Recovery Rate of recovery No.87 11963.13: Micro-Credit Programmes of other Commercial and Specialised Banks (In Crore Taka) Number of Beneficiaries Commercial and Specialised Banks Ansar-VDP Development Bank Social Islami Bank Limited National Bank Limited Islami Bank Limited The Trust Bank Limited BASIC Bank Limited (up to Mrch’09) Pubali Bank Ltd.67 83.79 109.

82 82.94 18.3 1.1 2.09 2008 over 2007 28297.51 255.15: Status of Micro-Credit of different Ministry/Division/Department Ministry/Di vision Department/ Division RAKUB Ministry of Finance (Banking division) Disbursement Recovery Rate (%) Rural Development & Cooperative Division BRDB Disbursement Recovery Rate (%) BARD Disburseme nt Recovery Rate (%) RDA Disbursement Recovery 3791. Source: Micro Finance Survey 2009 Micro Credit Programmes of Administrative Ministries/Divisions The Government has been allocating funds to implement micro-credit programmes for poverty alleviation by different administrative Ministries/ Divisions/Departments.55 44.45 1.32 98 99 97.661 0.11 5.75 99.11 101.19 17.22 (*N=744) Organisations/ Institutions Cumulative disburseme nt of loan 179003.34 38.57 Recovery rate (%) Disbursement to Borrowers by (1) MFI-NGOs (2) Grameen Bank (3) PDBF (4) RDS (IBBL) Wholesale Lending PKSF *N refers to MFI-NGOs.16 98.63 90 *167. In order to sustain the micro-credit programmes for poverty reduction.19 4.34 519.05 6.25 168.25 871.36 127.07 93 0.06 680.58 94 0.6 5.68 19.22 80.04 30.69 691.32 158.30 26.26 2.41 27.37 60.44 634.15 3433.48 635.181.77 670.9 1602.23 69 June 2004 (Cumulative) 2004-05 2005-06 2006-07 2007-08 2008-09 2009--10 2010-11 2011-12 Cumulative Upto June 2012 29.1 167.99 13.99 3.26 27.69 14. Table 13.43 65.95 68.28 344.69 9.78 96.79 87. the Government emphasises on developing small entrepreneurs.28 29.52 94 0.67 19.84 30.61 17.41 2008 25.77 720.46 123315.37 2927.30 9272.04 94 1.87 29138.4 93 27.73 14.29 18.08 654.84 99.41 1396.22 88.00 6574.01 1.94 1..26 507.09 Recover y rate (%) (*N=535) Cumulative disbursement of loan 112601.22 99.15 0.63 crore of which Tk.09 737. 88.59 18.19 677.Table 13.77 7940.53 47.13 28.84 505.60 17. The Finance Division in cooperation with the other ministries is working together in this direction.99 1.01 2423.97 crore was recovered.59 66.23 21.71 36.96 17.01 93 6.16 796.49 73232.70 94176.77 122.151 5.71 14.14 96.57 2.98 862.19 5.08 5.91 780.279 6210.24 98.85 91 9.1.23 6.14: Development of Microfinance Sector in Bangladesh (In Crore Taka) Up to December’09 Up to December’08 Up to December’07 Annual change of loan disbursement in 2009 2009 over 2008 38104.73 887.84 103. The cumulative credit disbursement up to June 2012 stood at Tk.90 8310.51 Recove ry rate (%) (*N=612) Cumulative disburseme nt of loan 140898.59 91 84.041.03 15.22 20944.09 90 0.82 2292.22 19.91 6.31 32.00.46 98 99 99.09 6. 1.295 86.39 49831.38 674.39 683.10 0.3 9.22 99.95 6.02 98 100 96.934.90 4972.65 3275.18 89 3.63 41890.86 474.84 8339.80 1736.11 Growth of loan disbursement in 2009 (%) 2009 27.25 72.36 35679.23 0.68 96.06 74 255 .

54 75 41.256 98.49 82.33 93 2.07 10.88 25.81 27.97 2.49 5.25 101.45 181.07 22.13 21.58 76798.9 37.036 101 2.62 23.43 99.76 0.58 3.32 6.97 3.59 51.41 8.76 5292.33 7.32 10112.07 66.38 836.86 53.97 67 85.57 243.58 89 3.6 0.64 66.51 4676 88.71 102.75 6.89 13.3 197.96 21.64 1.26 8. 00 94.033 - .1432 104.23 11116. 15 12359.21 4164.01 54.8 5.61 90.341 0.34 92.7 *Ministry of Social Welfare 572.83 28.99 1.43 2.06 25.4 0 16.37 18.64 0.7 12148.03 251.3 83.8 163.95 7.7687 .85 8.98 11.99 13.31 Dept.67 143.31 104 0.213 0.46 8377.8 13.28 - - - 99.37 14.65 25.27 5.24 105 10.35 8580.36 64.71 74.97 13.89 154.667 104.4 294.02 68.31 90 3.78 13.92 71.66 35.63 42.66 6003.5287 96.6 0.21 93.15 63.42 256 .74 25.81 4.919 191.26 4.88 12184.76 62 90 62.54 52.76 41.11 .47 4.46 9.14 95.08 71.264 0.39 107.86 25.956 4956.451 105.55 87 16152.52 9.73 58.0 - - 58.02 73.Ministry/Di vision Department/ Division June 2004 (Cumulative) 2004-05 2005-06 2006-07 2007-08 2008-09 2009--10 2010-11 2011-12 Cumulative Upto June 2012 Rate (%) 85.97 9284.429 0.79 95 68.6 10.71 41.94 23.64 - 0.27 98 81 46.64 3.5 - 2 - 1.18 56.11 86196.3382 0.94 42. of Women Affairs *Ministry of Women and Children Affairs Disbursement Recovery Rate (%) Jatiyo Mohila Sangstha Disbursement Recovery Rate (%) Dept.62 90.30 90 61.46 17.98 78.71 54.66 24.5 32.13 10.3512 104 0.95 1.96 9.02 96 1002.64 16.8 186.5 - 23.55 0.41 81 64.98 5496.38 17.564 4.33 89 9.11 27.59 40.76 - 86.25 57.33 79 67.65 93 83.78 3171. of Social Welfare** Disbursement Recovery Rate (%) **Ministry of Fisheries and Livestock Dept of Fisheries Disbursement Recovery Rate (%) Dept of Livestock Disbursement Recovery Rate (%) Ministry of Industries BSCIC Disbursement Recovery Rate (%) SERWTCI Disbursement Recovery Rate (%) (Agricultural credit) Ministry of Agriculture Disbursement Recovery Rate (%) Cotton Development Board Disbursement Recovery Rate (%) 21.64 67 83 46.32 10.3 55.66 30.26 89.08 90.26 89 30.97 91 11.27 157.96 99 13132.54 4.44 522.8402 7.71 19.7 69.67 22.61 12.2942 0.22 80.92 - - - 263.26 3.51 40.2 53.02 32.3531 103.64 66.61 15785.58 27.16 73 44.35 75.12 0.92 25.563 3.8 74 57.58 5.22 101.7829 102 6.997 7.3 16.

82 69. 8 93.***Upto Dec2011  Rate of recovery has been calculated as follows: Rate of recovery = (Recovery/Disbursement) x100 257 .38 73 35.37 2.04 74.26 212.11 3.Ministry/Di vision Department/ Division June 2004 (Cumulative) 2004-05 2005-06 2006-07 2007-08 2008-09 2009--10 2010-11 2011-12 Cumulative Upto June 2012 Dept of Agr Ex Disbursement Recovery Rate (%) 306.92 1.10 90.11 79.99 10.08 57.86 1.44 60.66 62.37 73.98 43.65 1. 6 13337.67 51.7 306.81 31.6 55.41 61.87 44.63 88934.75 124.59 98.66 58.33 3.77 Ministry of Liberation war Affairs*** Disbursement Recovery Rate (%) Disbursement Total Recovery 9349.03 61.22 Ministry of Land Disbursement Recovery Rate (%) Local Govt.37 62.71 Ministry of Youth and Sports Dept.19 5121.11 71.21 3.36 1.24 179.28 5942.15 48.13 85.04 55.09 Ministry of Land Local Govt.52 90.26 70.16 154.15 6955.37 109.06 61.53 90.51 942.97 38 6475.5 45.6 2.91 5.61 18.3 2.44 52. Division 23.95 84.1 .28 98 31.53 215.46 95.65 10.68 3.22 82.45 8.47 81.93 4.68 1.76 .77 52.72 2.67 5.69 0.86 9.6 63.21 407.18 60.69 2.17 201.3 8 5797.08 54.59 4.92 65.54 77.69 2.82 5.59 15.63 57.Division Disbursement Recovery Rate (%) 55.82 42 6386.45 51.02 74.77 57.3 13070.04 47.77 72.32 87.89 16.76 60.83 93.05 35.06 10.76 5.12 34.06 97.95 21.85 39.58 2.32 9.26 70.38 34 96 31.82 42 9659. of Youth Disbursement Recovery Rate (%) 546.49 4.05 83.86 50.6 2.43 37.53 3.31 4.97 88.01 90.93 7.75 61.99 0 69.95 8.16 21.55 3869.5 3.84 40.92 1.31 88.42 51.59 87.71 32 10326. *Upto July 2012.63 44.592 2.4 12114.43 81 0 8.25 75 27.13 0 0 490.8 84 93.67 Disbursement Source: Concerned Ministries and Bangladesh Bank.61 57.97 144.28 461.22 1079.09 90.19 100181.38 98 368.14 6.34 43.95 83.61 81.41 27 22063.08 2.98 71.44 56 13245.52 56.16 3.29+ Ministry of Textile and Jute Bangladesh Handloom Board (BHB) Disbursement Recovery Rate (%) 29.58 293.68 108.79 79.65 56 14276.7 7.16 100.16 0.09 94.25 3.41 2.66 96 6 3.21 10975.41 0.** Data for FY 2010-11 is Upto Dec10.66 75.82 20.37 20723.46 124.