Introduction

Poverty alleviation is the major

developing agenda in Bangladesh

Decreased to 24 percent from 70

percent in early 1970s
What is Poverty?
Lacks the financial
resources and essentials to
enjoy a minimum standard
of life

Malnutrition, ill health,

poor housing conditions,
and illiteracy

Absolute deprivation,
Relative deprivation.
Approaches to Poverty Measurement
Head
count
ratio
method

Income
poverty
measurement
Cost of
basic Direct
need calorie
(CBN) intake
method (DCI)
method
Head count ratio method
If Q is the number of poor in a population of size N, then the
head count index can be written as
Direct Calorie Intake (DCI) Method
• Calorie intake of less than
2,122 kcal per capita per
Absolute
poor day

• If less than 1805 kcal per

Hard- capita per day
core poor
 Cost of Basic Needs (CBN) Method

A household with per capita expenditure below the

poverty line is considered as poor
Cost of Basic Needs (CBN) Method
Under this method, three steps are involved:

Estimation
Estimation Estimation
of lower
of food of lower
and upper
poverty and upper
allowances
line poverty
for non-
lines.
food items
Cost of Basic Needs (CBN) Method

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

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

Multidimensional Poverty Index (MPI)

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

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

Multidimensional Poverty Index (MPI)
MPI is measured using ten indicators:
Years of
schooling
Child
Assets school
ownership attendance

Child
Cooking Mortality
fuel

Floor Nutrition

Electricity
Drinking
water
Sanitation
Trends of poverty
During the period from 2000 to 2005, the rate
of income poverty declined from 48.9 percent
to 40.0 percent.

The compound poverty reduction rate per year

was recorded at 3.9 percent.
Trends of poverty
During the period from 2005 to 2010, the rate
of income poverty declined from 40.0 percent
to 31.5 percent.

The compound poverty reduction rate per year

was recorded at 4.67 percent.
Trend of Incidence of Poverty Estimated
through CBN Method (For Upper Poverty line)

50.1 48.9

40
31.5
National

From 1995 to 2010

Trend of Incidence of Poverty Estimated
through CBN Method (For Upper Poverty line)
54.5
52.3

50.1 48.9 43.8

35.2
40
31.5 National
Rural

From 1995 to 2010

Trend of Incidence of Poverty Estimated
through CBN Method (For Upper Poverty line)
54.5
52.3
50.1
48.9 43.8

40 35.2
35.2 National
27.8 31.5 Rural
28.4
21.3 Urban

From 1995 to 2010

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

35.1 34.3

25.1
National
17.6

From 1995 to 2010

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

39.4 37.9
35.1 34.3
28.6
National
25.1
21.1 Rural
17.6

From 1995 to 2010

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

39.4
35.1 37.9
34.3
28.6 National
25.1 Rural
20 21.1
17.6 Urban
13.7 14.6

7.7

From 1995 to 2010

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

This indicates that the MDG related to

poverty reduction has already been
achieved by Bangladesh.
Causes of Poverty

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

It has already been entered into the lower middle income

country.

The Government aims at reducing poverty rate at 22 and 15

percent by 2015 and 2021 respectively.
Strategies for Poverty Reduction

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Miitig
nhance caeete
entrepreneurshipthe access a ccee of
PtoepdPdh
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ptis
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tei
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ancmpotrrso
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so
rue
n
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t ith s c isi h nc ceort
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Allocation Pattern of Social Safety Net Programmes
37,546.00

30,636.00

26,654.01
24,042.80

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

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

In last budget which was 124,657.90 crore (26.41% of total budget) against the
total of 239,664.00 crore.
Conclusion
Bangladesh is trapped in the 6 percent growth trajectory for the
time being; its ultimate target is to transcend this cycle and move
onto a higher growth path to transform country into a developed
nation by 2041

Mutual tolerance and responsible behavior from all political

parties will promote democratic culture and ensure greater
welfare of the people