Bangladesh University of Professionals (BUP)

Faculty of Business Studies (MBA Professional)

Course Name: Business Economics (BUS 8403)

Term Paper
Topic: "A study on Social safety net programs and Bangladesh perspective”

Submitted To:

Prof. Mohammad Amzad Hossain

Bangladesh University of Professionals

Submitted By:

Name:
Roll:
Section: 20(B)
Session: Jan 19
Date: 14-04-2020
 Letter of Transmittal

14 April 2020

Prof. Mohammad Amzad Hossain

Faculty of Business Studies

Bangladesh University of Professionals

Subject: Submission of the Paper on “A study on Social safety net programs and
Bangladesh perspective”

Dear Sir,

With due respect, I would like to submit here with the report on “A study on Social safety
net programs and Bangladesh perspective” for your kind consideration, I found the class
paper work very interesting that was assigned to me.

I am pretty much optimistic that the preparation of this report would enrich my practical
knowledge. It is an immense pleasure for me to submit the paper which is prepared as a
partial requirement of the course named Business Economics (BUS-8403) of MBA
(Professional). I have gone through internet, different books, articles, journals, interview of
authorities for this report and getting the relevant information about the assigned topic.

Sincerely yours

Section: 20(B),
MBA Professional
Bangladesh University of Professionals
Introduction:

Social security net program, is a lot of arrangements and projects planned for
decreasing social and financial hazard and powerlessness of poor people,
improving their ability to ensure themselves against risks and loss of salary
including under crisis circumstances. Social insurance program incorporates
contingent or genuine money moves or nourishment help to poor families
regularly through open works program, arrangement of joblessness benefits,
working of abilities through preparing projects to build work efficiency and
salary, putting resources into progressively beneficial horticultural exercises to
improve family unit dietary status and pay, and supporting families to get to
essential instruction and essential medicinal services administrations. An
exhaustive social security framework covers all fragments of a defenseless
populace including the jobless, handicapped, wiped out, matured, vagrants,
ladies headed family units, road kids, and so on.

Today, the quantity of individuals living underneath the destitution line in

Bangladesh is assessed to be 35 million. A critical piece of this populace is
secured by microcredit program. It offers a wide based chance to lessen
destitution. In the course of the most recent four decades, the microfinance
business has thought of a scope of choices in acquiring, reserve funds and
protection to low pay individuals. Microcredit is meeting the credit needs of
these individuals who in any case would not approach any credit office other
than taking advance from cash banks at high loan fees. The combined advance
dispensing of nine huge NGOs and Grameen Bank together remained at Tk
679,615 crore in 2018-2019. They spread a sum of 37 million borrowers.
It is all around perceived that microcredit alone can't pull all the destitute
individuals out of neediness. One supposition for microcredit to succeed is the
capacity of borrowers to put resources into pay winning exercises—with regards
to Bangladesh which are, poultry raising, goat raising, bovine stuffing,
vegetable cultivating, little scope cultivating, fisheries, ceramics, bamboo items,
and so forth. The greater part of the borrowers are dynamic ladies and men. The
accomplishment of microcredit depends on creation and promoting of their
produces and thusly, those not all that ambitious won't adventure at obtaining.
The most unfortunate of the poor typically maintain a strategic distance from it.
In this way, a huge part of defenseless populace needs different kinds of help to
assist them with rescuing of neediness.

Bangladesh has received a Social Security Strategy. In 2018-19, an aggregate

sum of Tk 64,176 crore was assigned from government spending plan for social
security net projects. The portion was 13.81 percent of the yearly spending plan
and 2.53 percent of the GDP.

Overview of Social Safety Net of Bangladesh:

Social security net program recognizes the fundamental need of the people for instance cover,
nourishment, training, fabric and wellbeing.

There are stipends for political dissidents, microcredit programs, etc. Populaces generally
youngsters, impaired people and ladies have been given fundamental worry in Social Security
Net Projects. The SSNPs have been commonly considered in two portions, for example,
Social Insurance and Social Strengthening. They are executed over both improvement
spending plan and non-advancement spending segment. Social insurance incorporates the
nourishment security, new assets for programs and above all money move stipends and
money move (extraordinary). Social strengthening contains the miniaturized scale credit,
stipends, lodging and restoration, improvement programs and different assets.

Since freedom of Bangladesh in 1971, 70 percent of the occupants lived under the destitution
line, the two key instruments of social security nets exist here are called nourishment supply
and help work that is engaged with serving the individuals who are experiencing fiascos and
other characteristic disasters. Imperative upgrades in diminishing broad neediness have been
made by utilizing refined security net occasions at the progression of time. The
administration of the state has been prevailing with a blend of immediate and auxiliary
wellbeing net projects for destitution mitigation under the administration of various services.

Bangladesh has an ample range of social safety net programmes.

Numerous specifically designed social safety net programmes are being
directly operated by the Government of Bangladesh. These programmes
try to address both income poverty and human poverty. While income and
employment generating projects are being run, on the other side some
other programmes are also being operated with the motto to help human
development through ensuring education, health, nutrition and water and
sanitation. In designing the development strategy Government of
Bangladesh focus mainly on elimination of poverty and inequity, set
priority on activities targeting the extreme poor, women in poverty,
landless poor, and other disadvantaged groups. In this regard a strong
and expanded social safety net is the main emphasis of the present
government’s vision to protect the poor from all types of social, economic
and natural shocks

Bangladesh has adopted a Social Security Strategy in 2015. In 2018-19, a

total amount of Taka 64,176 crore was allocated from government budget
for social safety net programmes. The allocation was 13.81 percent of the
annual budget and 2.53 percent of the GDP.Today, the number of people
living below the poverty line in Bangladesh is estimated to be 35 million. A
significant part of this population is covered by microcredit programme. It
offers a broad-based opportunity to reduce poverty. Over the last four
decades, the microfinance industry has come up with a range of options in
borrowing, savings and insurance to low income people. Microcredit is
meeting the credit needs of these people who otherwise would not have
access to any credit facility other than taking loan from money lenders at
high interest rates. The cumulative loan disbursement of nine large NGOs
and Grameen Bank together stood at Tk 679,615 crore in 2018-2019.
They cover a total of 37 million borrowers.
Safety net programs in Bangladesh

Type Program Examples

Cash transfers
Conditional cash transfers
Public works or training based cash or in
kind transfer
Employment Generation Programme (EGP)
Emergency or Seasonal Relief
Old Age Allowance
Widowed and Distressed Women
Allowance
Disabled Allowance
Primary Education Stipend Programme
Stipends for Female Secondary Students
Rural Maintenance Programme
Food-for-Work
Vulnerable Group Development (VGD)
Vulnerable Group Feeding (VGF)
Gratuitous Relief (GR)
Test Relief (TR)
Open Market Sale (OMS)

Scenario of this program:

The significance of a progressively deliberate and far reaching system for wellbeing net
writing computer programs is progressively being worried over the arrangement universe.
Yearly cost on wellbeing net projects adds up to Taka 64,176 Crores which is roughly 2.53%
of Gross domestic product (2018-19). The arrangement of projects incorporate remittances
for populace bunches with extraordinary requirements, nourishment security and calamity
help programs, open works/business projects, and projects concentrated on human
improvement and strengthening. The most elevated allotment - 44.3% - is for Nourishment
Security and Catastrophe Help programs. Those projects with a urban concentration up 'til
now stay miniscule, at just 0.7% of the all out distribution. The greater part of the security net
projects are actualized through government channels. Be that as it may, non-government
channels assume a significant steady job especially in those projects concentrated on
supportable graduation. 97 percent of yearly allotments are spent through 30 significant
projects. Notwithstanding, not the entirety of the those projects recorded in government
spending reports can carefully be classified as security nets the same number of these are
more in the idea of sectoral advancement programs. The stock plainly sets up that wellbeing
nets are a significant approach center. Questions, be that as it may, flourish.

 Are every single basic hazard and vulnerabilities being tended to?

 Are there critical holes and duplication?

 Is program expansion just spreading tokenism?

 Are practical outcomes being advanced?

 Do wellbeing nets in destitution commanded nations like Bangladesh need to grasp

objectives of advancement close by the objectives of security?

The development of wellbeing net projects in Bangladesh has seen various advancements
throughout the years. A few developments were a reaction to significant emergency
occasions while others were steady unfurling of an arrangement plan.

The first round of advancements was during the 1970s when in light of the overwhelming
starvation of 1974, nourishment for-work was altogether scaled-up and the Grameen try
different things with miniaturized scale credit took off.

The second round of advancements occurred in the late 1980s. Here too the advancements
were a reaction to successive surges of 1987 and 1988 when the requirement for all-climate
framework expected high need. Workfare developments joining objectives of street upkeep,
social ranger service and ladies strengthening were propelled.
In the mid 1990s, a few projects were propelled as nourishment for-training program while in
the late 1990s recompense programs took off with center around older and defenseless ladies.

In mid 2000s, there was a widening of program center with programs progressively joining
security and advancement objectives.

At long last, in the late 2000s, geographic focusing on turned into a conspicuous core interest.
The future motivation also is pointing towards more developments, especially in the
emphasis on a national information base of poor people, just as in the plan of a thorough
social assurance system.

Budget of Social Safety Net of Bangladesh

 (Tk in Billion)

Coverage:

Despite the fact that extensively focused at the extraordinary poor, wellbeing net projects use
numerous qualification criteria to recognize their particular objective gatherings. By and by,
these are regularly dubious and need exhaustiveness. The average wellbeing net objective
family unit is:

• No land or land up to 10 decimals,

• Average pay per individual every day beneath Tk. 30 (43 US pennies),
• A money related profile where obligations surpass investment funds by a normal of
around Tk. 2500 (US$36).

• A more noteworthy nearness of impeded individuals, for example, defenseless ladies.

• About a fourth of family units have individuals taking an interest in MFI.

A change from prior occasions is that target family units remain nourishment uncertain
however such uncertainty is better comprehended as healthful weakness. Current objective
family units are not described by huge scope hunger consistently. Nonetheless, a dominant
part miss milk and meat in their week after week diet. Target family units are consistently
presented to financial stuns. Generally huge of these regarding greatness and repeat are
sickness related enormous uses, catastrophic events and loss of domesticated animals.

There are various significant social assurance activities in Bangladesh. A portion of these are:
mature age remittance that profited 4,000,000 individuals in 2018-19; widow and down and
out ladies recompense for 1.4 million individuals; maternity stipend for poor moms gave to
seven lakh ladies, and a working lactating mother help program which profited 2.5 lakh ladies
during that year.

Different projects incorporate remittance for the monetarily wiped out crippled residents,
stipend for the incapacitated understudies, a wellbeing system to give free physiotherapy and
different medications to the debilitated individuals, and backing to non-government shelters
profiting 98,000 vagrants. There is arrangement for open market offer of nourishment things
for low salary individuals which profited 12 million individuals in 2018-19. The Defenseless
Gathering Advancement Program, Powerless Gathering Taking care of Program and
Unwarranted Help Program give nourishment help and business age openings. The Ashrayan
venture bolsters the landless and destitute families through salary producing exercises like
crafted works, poultry, pisciculture, cultivating, agribusiness, dairy cattle raising, and so on.
One House One Ranch venture is for close to landless families to grow family cultivates
centring on fisheries, poultry, dairy cattle raising, nursery, kitchen and vegetable planting.
The Complete Town Advancement Program helps the poor in the neediness hit regions with
independent work. Palli Daridro Bimochon Establishment works in 357 upazilas and has
helped 20 lakh country individuals with independent work and salary creating exercises in
2018-19. Little Ranchers Improvement Establishment assists with destitution decrease of
little ranchers and landless rustic individuals in 173 upazilas. Palli Karma Sahayak
Establishment works for destitution lightening through social security net and ladies'
strengthening programs with the assistance of 278 accomplice associations in 164 upazilas.

Through microcredit, small amounts of loan are given to poor women and
men to help them become self-employed or initiate small-scale income
generating activities that would help them come out of poverty. This poor
segment of the population is unable to access credit from the formal
financial sector due to their inability to arrange collateral. Most
microcredit programmes adopt group centered lending approach and they
are run by non-government organizations.

It is well recognized that microcredit alone cannot pull all the poor people
out of poverty. One assumption for microcredit to succeed is the ability of
borrowers to invest in income-earning activities—in the context of
Bangladesh which are, poultry raising, goat rearing, cow fattening,
vegetable gardening, small-scale farming, fisheries, potteries, bamboo
products, etc. Most of the borrowers are active women and men. The
success of microcredit is based on production and marketing of their
produces and therefore, those not so enterprising will not venture at
borrowing. The poorest of the poor normally avoid it. Therefore, a
significant portion of vulnerable population needs other types of support
to help them bail out of poverty.

Critical Evaluation:
Security net projects plainly affected recipient government assistance. Be that as
it may, the measurements and elements of this effect has likewise been mind
boggling.

Notwithstanding the blossoming center around social wellbeing nets with

respect to both government and non-government entertainers, free and
exhaustive appraisals on results have been moderately constrained. The vast
majority of these attention primarily on process issues for example inclusion,
advantage bundle, focusing on and recipient profiles, as opposed to on results.
Such a circumstance isn't constrained to Bangladesh. There are various applied
and methodological difficulties in surveying results. The arrangement of
wellbeing net projects address various elements of powerlessness and it is
significant for an appraisal practice not to fall into the snare of looking at apples
and oranges. For instance, programs tending to transient nourishment instability
may not contrast well and projects concentrated on tending to basic neediness.
The proper outcome to search for in the previous is utilization smoothening and
the counteraction of a further slide in destitution status while in the last
mentioned, the suitable outcome is graduation for example a procedure of
upward ascent in an expansive scope of family unit pointers prompting a break
from the positions of poor people.

A second applied concern is about reversibility in results. Appraisal practices

regularly fall foul of over-idealistic ends when a portion of the revealed gains
end up being reversible in the short-to-medium term. A fitting time interim
between program investment and evaluation is a key methodological concern.
Social Wellbeing Nets in Bangladesh is free and extensive evaluations on
results have been moderately restricted. The arrangement of security net
projects address various components of powerlessness.

A third concern is about attribution. What amount of the watched changes in

recipient government assistance inferable from program cooperation?
Utilization of control gatherings and the foundation of a sound counterfactual is
the acknowledged methodological gadget to limit this issue. Be that as it may,
building up a significant examination based on with and without control
bunches presents specific difficulties when wellbeing net sort programs have
become pervasive particularly in destitution inclined regions.

At long last, evaluation practices should know about the double test of
surveying singular projects wherein the issues are sufficiency, value, cost-
viability, maintainability, and surveying the general framework wherein the
issues are fittingness, balance between program center, and, procedure issues,
for example, advancements and leave approach.

Recipient recognitions on by and large program sway are commonly positive

yet just half evaluate this effect as 'solid' as recognized from 'moderate'. Such
evaluation fluctuate across programs and are resolved both by the size of the
arrangement for assistance and nature of the execution procedure. Recipient
recognitions are that most projects have had a pay sway. Different effects have
been on resource increment, expanded work, school participation and so forth.
Be that as it may, to what degree such effects are strong or are reversible in the
short to medium term can't be derived from the recognition information.

Other programmes include allowance for the financially insolvent disabled

citizens, stipend for the disabled students, a health programme to provide free
physiotherapy and other treatments to the disabled people, and support to non-
government orphanages benefiting 98,000 orphans.  There is provision for open
market sale of food items for low income people which benefited 12 million
people in 2018-19. The Vulnerable Group Development Programme,
Vulnerable Group Feeding Programme and Gratuitous Relief Programme
provide food assistance and employment generation opportunities. Different
projects support the landless and homeless families through income generating
activities like handicrafts, poultry, gardening, agriculture, cattle rearing, etc.

One House One Farm project is for near landless households to develop family
farms centering on fisheries, poultry, cattle rearing, nursery, kitchen and
vegetable gardening. The Comprehensive Village Development Programme
helps the poor in the poverty stricken areas with self-employment.  Palli Daridro
Bimochon Foundation works in 357 upazilas and has helped 20 lakh rural
people with self-employment and income generating activities in 2018-19.
Small Farmers Development Foundation helps with poverty reduction of small
farmers and landless rural people in 173 upazilas. Palli Karma Sahayak
Foundation works for poverty alleviation through social safety net and women’s
empowerment programs with the help of 278 partner organizations in 164
upazilas.

A key issue in this way is to have bits of knowledge into the dynamic parts of
the effect question. Advantageous experiences from FGDs draw out a portion of
these elements. For instance, in the instances of Mature Age and Widow
recompense programs, advantage bundle is little however for the recipients the
more prominent importance lay in the guaranteed normality of the advantages
and the engaging open doors these little advantages opened for these helpless
individuals to be autonomous in a portion of their customized consumptions, for
example, medication and recreation things. Observations information alone can't
give a premise to a strong appraisal of program sway. Regular craving was
divided and ceaseless shortage status evoked from 30% to 9%. In examination,
there has been just unassuming normal increment in per capita month to month
salary - 14.5% balanced for expansion.
In spite of the fact that a few projects have enrolled a higher pace of salary
change, this has been restricted to 28%. As opposed to salary, change in normal
reserve funds has been certain and emotional - an expansion of 170% with
extent of families sparing likewise ascending from 25% to 61%. There is
nonetheless, significant variety across programs. Normal landownership size
has indicated a minor decay however land access through the rent advertise has
demonstrated an expansion. On the personal satisfaction marker of sanitation,
extent of family units utilizing clean toilets has multiplied from 32% to 69%. By
and large, there has been an improvement in neediness status as far as the extent
of family units who were self-surveyed as ceaseless shortage declining from
30% to 9%.

Conclusion

The arrangement of Government spending plan must be smarter to make

programs employable and wide-running. State Possessed Banks and business
establishment need to pay more commitment on Little and Medium Endeavors
(SMEs) instead of business conveniences. To make master labor the quantity of
provincial advancement preparing establishments ought to be intensified, which
will upheld to accomplish improvement. The administration ought to fortify the
nearby level functionaries with the goal that suitable individuals could get the
offices. Diminish defilement and nepotism in giving the offices of Social
Wellbeing Net Projects (SSNPs). Important to limit layers when offices are
conveyed to needy individuals. The Administration venture is insufficient for
the objective gathering. It ought to be consumed all around the Nation.
Extraordinary poor can have the option to get the advantage of this. Current
innovation can be effectively utilized for improved rustic creation. Present day
data and specialized apparatuses can be effectively utilized in the advertising
framework. Provincial infrastructural Advancement is particularly fundamental.
Far reaching account overseeing and dispensing game plan to affirming
appropriate transference of assets at the field level. Coordinated effort among
Government and NGO for appropriate help conveyance to poor. Solid political
duty is the most significant prerequisite to guarantee the accomplishment of the
projects.