INCOME AND INEQUALITY(South Asia)

BANGLADESH
Bangladesh has attained an impressive economic
growth but growing income inequality in the country
remains a matter of concern. Bangladesh is set to be
among the top three fastest-growing economies in the
world by 2022, but such disparity in income
distribution among people also peaks.
 Studies show that people from low-income groups are
struggling to make two ends meet or have three
square meals a day. The latest Human Development
Index ranked Bangladesh 133rd out of 189 countries.
In Bangladesh, income inequality seems to be growing
at an alarming rate. A small section of society enjoys
most of the country's wealth, depriving the larger
sections. Income share held by the highest 10 per cent
increased from 21 per cent in 1984 to 27 per cent in
2010. Income share held by the lowest 10 per cent
declined from 4.13 per cent to 3.99 per cent.
CAUSES
 Lack of decentralisation has caused the
growing spatial inequality in income earnings.
People living in Dhaka and Chottogram earn
more than those living elsewhere.
 The public expenditure on education and
health as a share of GDP has declined in
recent years. Such low spending does not help
improve productivity of workers and is not
consistent with the effort to reduce poverty
and inequalities. There is also an increasing
inequality of opportunities, particularly to
access healthcare, education, financial
services and social protection.
 The poor cannot access privileges that the
government gives to particular businesses and
interest groups in the form of bailouts, loan
rescheduling, tax exemptions, subsidies,
licences and so on. The social protection
programmes are too inadequate to dent
poverty and regional disparities.
  The impacts of environmental degradation
are starkly visible in day-to-day life. The
polluted air and rivers, coastal degradation,
destruction of mangroves etc affect the
poorest section of the population – who are
usually the most dependant on the quality of
natural resources.