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Poverty Alleviation: Present situation and future planning

Prepared for : Mr. If tekhar Amin Chowdhury

Course teacher

Prepared by : 1. Md. Mohin Chowdhury

ID: 041-18-285

2. Anamika Haque
ID: 041-18-246

3. Aziz Ahmed
ID: 041-18-268

4. Franklin Bishwas
ID: 041-18-262

Daffodil International University

102, Sukrabad, Dhanmondi, Mirpur road, Dhaka-1207

Date of submission: 17 November 2005

Learners group
Daffodil International University
102, Sukrasbad, Dhanmondi
Dhaka 1207

November 17, 2005

Mr. Iftekhar Amin Chowdhury

Lecturer, summer 2005
Daffodil International University

Faculty of Business and Economics

Dear Mr. Chowdhury:

Subject: Submission of the report on Poverty Alleviation: Present situation and future planning

We are the students of B com (Hon’s), 3rd batch and we have prepared our report to fulfill our
Business Communication course requirement.

We have prepared our report on Poverty Alleviation in a document related information basis
our report based on three parts. First, SAARC and its operation for Poverty Alleviation,
Second, Government and third, NGOs effort for Poverty Alleviation.

We think this report will help us to know the present situation of Poverty as it is yet on of the
major challenge for Bangladesh and also its reduction process Thank you.

Sincerely yours

1. Md. Mohin Chowdhury

ID: 041-18-285

2. Anamika Haque
ID: 041-18-246

3. Aziz Ahmed
ID: 041-18-268

4. Franklin Bishwas
ID: 041-18-262

First, we praise for Almighty Allah that we are able to prepare this important report. We are
grateful to our course teacher Mr. Iftekhar Amin Chowdhury who has assigned us to prepare a
report on any present and important problem. We think it is a vital opportunity for us to
observe the present poverty situation in Bangladesh. We are very delightful to prepare this
report. We think this report will help us to prepare any assignment in hear future. We express
great fullness to MD. Zobih ullah Director, IMED, M/O. planning, Grameen Bank Head
office and our library teacher who help us to provide relevant document that is required to
prepare our report
Executive Summery
SAARC beginning in December 1985 has been working for promoting the economic
aspiration of the people of South Asia .The population of about one third are poor on that
region .SAARC selected poverty Alleviation as the overreaching goal of all activities .So it
has formed In the present South Asian commission on poverty Alleviation (ISACPA). The
last SAARC summit in Dhaka recognize poverty is the key challenge in the region .It has also
formed SAARC poverty Alleviation fund to eradicate poverty in 2006 -2015 and this period
is known as the SAARC decade of poverty Alleviation
Bangladesh government and non government Organization (NGO) particularly
Grameen Bank ,Proshika and Asia development Bank have declare battle for poverty
eradication .Bangladesh government recently prepare National strategy for accelerated
poverty reduction (PRSP) in order to achieve the millennium development goals (MDGs) to
reduce poverty in half by 2015 .
Poverty Alleviation: Present Situation & Future Planning
Table of contents
Executive Summary
Organization part:
Chapter one:
1.1 Origin of the report
1.2 Objective of the report
1.3 Sources of information
1.4 Methodology
1.5 Limitation of the study
Chapter two: An overview of SAARC and its operation
1.7 Objectives
1.8 About Association
1.9 SAARC priority project: Poverty Alleviation
1.1o Dhaka declaration of the 7th Summit for poverty Alleviation
1.11 Last SAARC Summit in Dhaka
1.12 Dhaka declaration of 13th SAARC Summit and future planning
Project part:
1.1 Introduction
1.2 Scope of the study
1.3 Objective of the study
1.5 Source of data
Chapter two:
Chapter three:


1.1 Measurement of poverty incidence in Bangladesh:

1.2 Poverty Rate
1.3 By FEI Method
1.4 By DCI Method
1.5 By DCI Method in Bangladesh (Hard-Core poverty)
1.6 Poverty Gap and Squared poverty Gap
1.7 Present situation of poverty in division (per head)
1.8 Per capital expenditure on consumer goods and services.
1.9 Per head Income and Expenditure
1.10 Distribution population according to their occupation
1.11 literacy rates
1.12 Sanitation of health
1.14 Natural disaster

Government present poverty eradication programme

1. Safety Net programmes

2. Old age allowance programmed
3. Allowance scene for window and distressed women.
4. Rural maintains programmer
5. The vulnerable Development Programmed
6. Rural in Infrastructure Development
7. Food for Education, cash for Education.
8. Female secondary stipends programmed
9. Natural Disaster program.
10. Housing fund.
11. Investing in people: Education.
12. Early children Development and pree-school

Non-government organization

1 Introduction:
2. Bulding people organization
4. Training:
5. Employment and Income Generating (EIG) Activities:
6. PROSHIKA Savings Scheme (PSS)
7. Economic-Social Security Programme (ESSP)
8. Education:
9. Healths and Nutrition
10. Legal Literacy and Legal Aid
11. Human development programme.
12. Group Training
13. Workshops
14. Staff Training
16. Group Federation
17. Group Development Stages
18. Area Expansion


1. Strategies and Policy Dialogue
2. Their Activities
3. Loans and Technical Assistance

Future Planning.
1. Trade policy and poverty.
2. Supporting RMG Sector.
3. Promoting Employment.
4. Development of Entrepreneurship.
5. Development of ICT for Growths and Poverty Reduction
6. Expanding Telecommunication Programmed
7. Expanding Internet facilities for Rural People
8. Tacking Corruption.


Our honorable course teacher of Business Communication, Mr. Iftekhar Amin Chowdury
have assigned us to prepare a report of any significant topic in Bangladesh and it is one of the
requirement to cover our course. To accomplish this requirement, we select this important
topic. From this report we will know the current situation of poverty and how Bangladesh try
to overcome this problem as it is one of the poor country in South Asia and also a member of
SAARC.We also know from this report, how Government and NGOs have deal with poverty


Our main objective of the report is to gain a basic knowledge of any present problem and
how to overcome this problem. It will also help us to fulfill our course requirement. Poverty
Alleviation is one of the priority project of SAARC and to achieve the Millennium
Development Goals (MDG), Bangladesh Government and NGOs should operate their
activities more efficiently than past. So this report also provides some information that is
important to solve poverty, one of the major problems in Bangladesh.

We collect major part of information from Internet, Book on SAARC SUMMIT in 1993 and also from the Daily
Star (renewed daily Newspaper).

We prepare our report (Organization part) about SAARC on document related information
basis and we collect information from Internet, Book on SSARC SUMMIT in 1993 and also
from The Daily Star.


We are not able to collect any important book on SAARC and we rely on Internet and Daily Newspaper.

South Asian Association for regional Cooperation (SAARC) has completed its 20 years on 8
December last. Now it is enter in third Decade. SAARC was essentially conceived for
promoting the economic aspirations of the people in the region. SAARC could not as yet be
vigorous as other regional groupings.
Last SAARC summit in Dhaka:

The thirteenth SAARC summit was held in Dhaka from 12-13 November. Bangladesh Prime
Minister Begum Khaleda Zia was elected the new chairperson of SAARC as Bangladesh
hosted the summit. Prime Minister Khaleda Zia said that historic 13 th summit marked the
beginning of a new phase, the third cycle of SAARC activities. She also said that this summit
focused on a set of activities, such as Poverty Alleviation, Economic cooperation, Combating
terrorism, Disaster management and addressing social challenges. Prime minister said that the
summit recognized poverty as the greatest challenge for the region. She also informed that
everyone reached at the conclusion that development cannot be achieved fully without
regional cooperation and they are confident that SAARC countries will now move forward.

Reference: Karim, 2005, The Daily Star, 14 November, p.1-15

Dhaka Declaration of the 13th SAARC summit and future
The heads of state or Government reached a decision to declare the decades of 2006-2015 as
the SAARC decade of poverty alleviation, during the decade attempt both at the national and
regional level will continue to make a sense of commitment and immediate step to free South
Asia form poverty.
Head of state or Government welcomed the valuable work Asian commission on poverty
Alleviation (ISACPA). They also signed the SAARC development goals (SDG) that were
recommended by the commission. They believed that ISACPA will continue its advisory and
advocacy role this is eradicate poverty. They also endorsed the priorities for action that was
identifying in the report of ISACPA gained from 12th summit.
They decided to give importance on formulation and implementation of concrete regional
programme and projects as well as foreign partnership among all stakeholders.
For focused and comprehensive examination of poverty related issues the heads of
state/Government selected to replace the three-tier mechanism on poverty alleviation by at
two-tier .One, which comprises the ministries with poverty Alleviation.
The heads of state /Government reached a decision to form a SAARC Poverty Alleviation
fund (SPAF) that will contribute both voluntary and assessed.

They called upon the Finance Ministers to constitute recommendations on the operational
modalities of the fund and also considered the result of the meeting of financial express.
From this purpose, they host Pakistan to the next meeting of finance Ministers. Finance or
Planning Ministers will be decided the operational modalities of the SPAF. They expressed
same opinion that SPAF shall function inside the SADF to be reconstituted, SAARC
Development fund (SDF) to help all SAARC projects and programmes as the umbrella
financial institution and comprising three windows – Social windows, Infrastructure windows
and Economic window. As it is the last summit, so all of its commitment and agreement will
be held on future planning.
(Reference: Text of Dhaka declaration of the 13th SAARC summit, 2005, The Daily Star, and

Bangladesh is one of the poor countries in the South Asia. In Bangladesh, over four million
people (one third of total population) remain poor after the thirty-year of independent.
(Ahmed, poverty eradication-MD Gand, Bangladesh, 2005, p.10). There is some good news
that according to Human Development Report 2003 Bangladesh, it has already achieved
Millennium Development Goals (MDGs) in respect of removing gender disparity ensuring
pure drinking water for poor people. To achieve the Millennium Development Goals and to
meet the challenge of reducing poverty, Government has approved a fundamental strategy of
seeking collaboration from NGOs and private sector. Government has also give topmost
priority to poverty reduction and formulated Unlocking the Potential, National Strategy for
Accelerated poverty Reduction (PRSP).

We have specified our study on Poverty Alleviation. From this purpose, we focus on activities
of SAARC, regional association for cooperation for the peoples of South Asia, Government
of Peoples Republic of Bangladesh and NGOs. We focus that Government has taken some
measures recently, specially preparing Poverty Reduction Strategy Paper and make
commitment to implement it. We also study on Book of Finance Division, Bangladesh
Economic Review 2004 and 2005.


Our objective of the study to observe the present poverty situation in Bangladesh and how to overcome this
problem in shortest possible manner. We would like to make commitment that as we are the student, also future
of the nation, we always try to contribute to eradicate poverty in Bangladesh.Millennum Development Goals
will achieved in 2015 and we are not known as poor nation in the world.


We prepared this report when all kinds of institutions from which we can collect information
were closed due to Eid Festival. We also want to mention that we are not able to get proper
recommendation from our course teacher as our university was closed at that time.


We collect major part of data from Bangladesh Economic Review 2004 and 2005.

The last SAARC summit in Dhaka was held in 12-13 November and here the heads of state
or government declared the decade of 2006-2015 as the SAARC decade of poverty
Alleviation. So, if it implemented, then there will be no poor in the south Asian region. We
have also seen that government and NGOs want achieve an millennium development goal
(MDGs) that is to reduce poverty in half by2015. It is indicated that some poor will remain
other region on the world. We can say that everyone aim is unique, to reduce poverty in south
Asia and particularly in Bangladesh should receive top-most priority.
To measure poverty situation in Bangladesh we discuss or take two areas
1. Government
2. Non government Organizations (NGOs).


Measurement of poverty incidence in Bangladesh:

At first in Bangladesh in 1973-74 “Household Expenditure survey “(HES) was started. At last
HES were done in 2000. From 1991-92 it was used as “Food Energy intake “ (FES) process
and “Direct calorie intake “(DCI). By this process every day under the 2122 kilo calorie were
called absolute poverty and under the 1805 kilocalorie called hard-core poverty. In 200 to
measurement poverty used “Cost of basic needs “(CBN).

Bangladesh statistics burro start survey after four years. At first it was held in 1004 and after
that poverty Monitoring survey (PMS) was started in 2004 .In this survey FEI and DCI were
also used. To measure correct result this survey was divided in to two parts one Urban and
second Rural. In Urban monthly expenditure is 905.90 and Rural is 594.00 Tk.

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Poverty Rate:
In the chart dividing by two parts Urban and Rural measure the poverty rate. Here are two

By FEI method:

By the “ Food energy intake “(FEI) method in 1999 the rate of poverty was 44.7%,
but now in 2004 reducing rate 42.1%. At the some time in urban area 43.3% reduce to 37.9%
and in rural area 44.9% reduce to 43.3%.

FEI and DCI method to measure poverty

Area FEI method in DCI method in

% %
1999 2004 1999 2004
National 44.7 42.1 46.2 40.9
Urban 43.3 37.9 49.9 43.6
Rural 44.9 43.3 45.6 40.1

poverty rate accoring to (FEI)


national Urban rural

#Source: Bangladesh statistics burro, poverty measurement survey 2004

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

By DCI method:
By the Direct Calorie intake we can measure that poverty rate is declining Firstly. In 1999
poverty Rate was 46.2%. But now by reducing the rate is 40.9%. In the same time in urban
area 49.9% reduce to 43.6% and in rural area 45.6% reduce to 40.1%. By this method we can
see that reducing rate of poverty in Urban is fast then rural area.

Poverty rate according to


40 1999
20 2004
national Urban rural

#Source: Bangladesh statistics burro, poverty measurement survey 2004

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

By DCI method in Bangladesh (Hard-Core poverty)
In Bangladesh 1999 to 2004 Hard-core poverty also changes. In 1999 the National, Urban
and Rural area poverty was 24.9%, 27.3%, and 24.5%. But in 2004 it’s become reduce to
18.7%, 20.8%, and 18.2%.

DCI method in Bangladesh (Hard-core poverty)

Hard-core Area 1999 2004

poverty National 24.9 18.7
(< 1805 kilo Urban 27.3 20.8
Calorie.%) Rural 28.5 18.2

Hard-core poverty measure by

(DCI) method

20 1999
10 2004
national Urban rural

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Poverty Gap and squared poverty Gap:
Poverty Gap measure difference between poverty curve to poor people and present situation
of poverty. Another side-squared poverty Gap measure too many corruption between poor
people .In the chart National in 1999 poverty Gap and Squared Gap were 11.1 and 4.1. But
now it is 10.9 and 3.9. In Urban area at the same time it was 11.2 and 4.2. But now it is 11.1
and 4.5. In the Rural area it was 11.1 and 4.0, but now it is 10.9 and 3.8.

Poverty Gap and squared Poverty Gap in 1999 and 2004

Area 1999 2004

Poverty Squared Poverty gap Squared
gap poverty gap poverty gap
National 11.1 4.1 10.9 3.9
Urban 11.2 4.2 11.1 4.5
Rural 11.1 4.0 10.9 3.8

poverty gap and squared poverty

gap in 1999

10 Poverty gap
Squared poverty






*(Reference- Bangladesh Economy Review. Poverty alleviation, June20)

Present situation of poverty in division (per head)
From the chart in Rajshahi division in 2004 the rat of property was 61.6. It was more than
another division the lowest rat is 28.4 in Sylhet.

Area Per head Poverty gap Squared

poverty Gap
National 42.1 10.9 3.9
Rural 43.3 10.9 3.8
Urban 37.9 11.1 4.5
Barishal 39.3 11.1 4.3
Chattagong 36.3 8.1 2.7
Dhaka 33.0 7.7 2.6
Khulna 46.4 11.5 4.1
Rajshahi 61.6 18.1 6.9
Sylhet 28.4 8.0 2.9

*(Reference- Bangladesh Economy Review. Poverty alleviation, June20)

Poverty gap
8 0 10.9 Urban
18.1 10.9 Barishal
11.5 Dhaka
7.7 11.1 Khulna

Squared poverty Gap
2.9 3.9
6.9 3.8 Chattagong
4.5 Dhaka
2.6 2.7 4.3

(Reference- Bangladesh Economy Review. Poverty alleviation, June20)

Poverty rate in Family:

From the chart the number of member in family in 1-2 changes to 7-8 cause of increasing
Poverty rate. The rate of poverty is to much minimum in 1-2 members family
Members of National Urban Rural
All 42.1 37.9 43.3
1-2 26.8 21.9 27.7
3-8 38.7 30.9 41.2
5-6 45.8 44.6 46.1
7-8 46.3 42.6 47.1
9-10 40.3 40.4 40.3
11+ 32.5 30.5 33.0

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Per head income and expenditure:

From the chart we can notice per head income increases in urban area than rural area. In
National per head income was 948Tk in 1999 but now in 2004 it is 1118Tk. In poor people
area it increases 602Tk – 631Tk and in non-poor area 1228-1466Tk. In Urban area in 1999
total poor and non-poor peoples per head income was 1678Tk, 902Tk, 2270Tk. Now in 2004
it is 1923Tk, 922Tk, and 2532Tk. Another side in rural area in 1999 total poor and non-poor
people income was 839Tk, 559Tk, 1067Tk and now it is 897Tk, 562Tk and 1152Tk. In 1999
total poor and non-poor peoples expenditure was 824Tk, 446Tk and 1128Tk but now it is 979
Tk, 482Tk, 1341Tk. In urban area at the same time 1285Tk, 613Tk, 1798Tk to changes in
1627Tk, 641Tk, and 2228Tk. It is also seeing in rural area.

Area Per head income Per head expenditure

Total Poor Non- Total Poor Non- Total Poor Non- Total Poor Non-
poor poor poor poor
Nation 948 602 1228 1114 631 1466 824 446 1128 979 482 1341
Urban 1678 902 2270 1923 922 2532 1285 613 1798 1627 641 2228
Rural 839 559 1067 897 562 1152 755 422 1026 805 445 1080
*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Per head income

2000 National
1000 Urban
500 Rural
Total Poor Non-poor

Per head expenditure

2000 1798

1500 1285 National

1128 1026
1000 824 755 Urban
446 422
500 Rural
Total Poor Non-poor

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Distribution population according to their occupation:
In the chart shows distributed population according to their occupation. In 1999 dependent
people on their own agriculture land total, poor and non-poor are 19%, 11.6% and 24.3% off
all people in Bangladesh. But in 2004 its percentage are 12.0%, 9.4%, and 13.9%.

Occupation 1999 2004

Total Poor Non-Poor Total Poor Non-poor
Owner of land 19.0 11.6 24.3 12.0 9.4 13.9
Own 5.6 5.1 5.9 4.5 4.3 4.7
land owner
Lend farmer 2.3 2.5 2.2 3.5 3.7 3.4
Labor 19.5 29.3 12.3 14.5 23.2 8.5
Another 3.1 3.5 2.9 10.6 10.8 10.2
Administrative 0.9 0.1 1.4 0.8 0.1 1.3
Occupation 0.4 0.1 0.6 0.5 0.1 0.7
Teaching 1.5 0.6 2.1 2.2 0.6 3.3
Business 12.7 10.0 14.8 14.7 9.7 18.2
Labor 8.0 10.4 6.3 13.4 13.7 13.3

Another 25.1 24.8 25.3 18.9 19.4 18.6

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Literacy rate:
In chart we shows literacy rate base on age 5 years, 7years, 15years and above that.
According to the poverty survey 2004 also show 5 years or above 5 years literacy rate is
44.4%. In 2001 it was 42.5%. At the same time male literacy increases 2% and female
literacy increases 2.1%. 7 years or above 7 years male literacy rate is 51.1% and female is
42.9%. It was 49.6% and 40.8% in 1999.

Male/female Literacy rate Literacy rate Literacy rate

(%) 5 years or (%) 7 years or (%) 15 years
above above or above
2001 Pms- 2001 Pms-2004 2001 Pms-
2004 2004
All 42.5 44.4 45.3 47.0 47.5 49.2

Male 46.4 48.4 49.6 51.1 53.9 55.0

Female 38.4 40.4 40.8 42.9 40.8 43.3

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Literacy rate (% )5 years or above

60 46.4 48.4
42.5 44.4 40.4
38.4 All
20 Female
2001 Pms-2004

Literacy rate (% ) 7 years or above

60 49.651.1
45.347 40.842.9
40 2001
20 Pms-2004

All Male Female

Literacy rate (% ) 15 years or above

60 53.9 55
40 2001
20 Pms-2004

All Male Female

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005)

Situation of health:
In 1999-2004 health quality become increases .In 1999 seeks population was 18.4%. But now
it is 1.8%. In 1999 poor seek people was 17.8% become reduce to 15.3% in 2004. At the
same time now poor people rate is change 19.3% to 16.17%.

Area Seek people in percentages

1999 2004
Total Poor Non-poor Total Poor Non-
National 18.4 17.4 19.3 15.8 15.3 16.1
Urban 16.6 15.0 17.6 13.6 14.7 12.9
Rural 19.6 18.7 20.3 16.4 15.4 17.1

Seek people parcentages in 1999

20 National
5 Rural
Total Poor Non-poor

Seek people parcentages in 2004

15 National
10 Urban
5 Rural
Total Poor Non-poor

*(Reference- Bangladesh Economy Review. Poverty alleviation, June2005

Government present poverty ereducation

The government is firmly committed the miseries of the hard core and the unprivileged
community. This why the Government after taking office has been allocating resources every
year from the non-development under social safety net. Besides, the Government while
continuing the programmes undertaken earlier has adopted new programmes that would
contribute to the welfare of the poor and also the unprivileged community. Side by side, the
Government has also revitalized the micro –credit programmes to further extend the social
safety-net programmes including poverty reduction.
Programmes undertaken under social safety net programmes are as follows.

Old-Age allowance programme:

The number of the elderly 9above 60 years) has been estimated to be 7.6 billion as recorded
in the 2000 census .The Government has introduced the “Old-Age programme ‘ in the rural
area .At the present this programme is operating in 42,991 wards of six division. Each
beneficiary receives Tk 165 per month. In the 2003/2004 budgets, the allocation was Tk 1.8
billion for this programme.(Unlocking the potential , National Strategy for poverty
Reduction,2005 )

Allowance scheme for Widowed and distressed Women:

Woman suffer when they become widowed, divorced or abandoned by their husband .To deal
this problem, the GOB introduced the “Widow Allowance “scheme in September, 1999. In
2003/04 the allocation for this programme was Taka900 million. At present a total of 4488
unions are covered under this programme.

Rural Maintenance programme (RMP):

The rural Maintenance Programme (RMP) is basically a “cash for public works” programme
with built-in provision for skill training for women. Starting in 1983, the RMP now runs in
4140 unions .The focus of the RMP is fourfold

(a) Maintenance of roads in the rural areas.

(b) Creation of employment for disadvantaged rural women.
(c) Development of the management capacity of the bottom-tier of the government.
(d) Providing women with skill training.
However the beneficiary receives a regular daily wages of Tk. 43 for full four years .An
amount of Tk.10 is compulsorily saved everyday.

The Vulnerable group Development (VGD) Programme:

The Vulnerable Group Development (VGD) programme is targeted to provide food and
development services to the poorest women in the areas. The immediate objectives of the
VGD programmes are: to increase the income earning capacity of the beneficiary women by
(a) Imparting training.
(b) Encouraging savings.
(c) Providing credit.

Rural infrastructure Development programme (RIDP):

RIDP is one of the largest food based safety net programmes in the country. In 2002/03 the
food used for wage payments was nearly 300 thousand metric tons for RIDP. In the 2001/02,
the budgeted allocation for RIDP was Tk.9.9 billion.

(Referency: Unlocking the potential, National strategy for accelerated poverty reduction,
2005, P.72-73)

Food for Education (FFE)/Cash for Education (CFE):

The main cause of this is the Pervasive poverty of the parents forcing them to send their
children to the work .The Food for Education (FFE) programme was designed to encourage
poor families to send their children to school. The Food for Education has been converted
into cash for Education where households with qualifying pupils receive Tk.100 per month
for one pupil and Tk.125 per month if more then one pupil is enrolled. This is fully financed
by the government and it is the largest conditional cash transfer programme in the country
with an annual budget of about Tk.6.6 billion. Till June 2001, the programme has been in
operation in 1254 Unions of 464 Upozilas, with coverage of 17,811 schools.
(Referency:Unlocking the potential , National Strategy for poverty Reduction,2005 )

Female Secondary Stipend Programmes:

Female secondary stipend programmes are targeted at all girls in rural areas, to encourage
them to attend secondary schools. The Female school Stipend Project (FSSP), financed by the
governments and covering 282 Upazilas, the female Secondary School Assistance Project
(FSSAP), financed by government and the World Bank.

(Referency:Unlocking the potential , National Strategy for poverty Reduction,2005 )

Non-Government Organization (NGO)


PROSHIKA tries to reduce poverty from Bangladesh. They take many programmes to reduce
poverty .It a non-government Organization.


PROSHIKA has organized 21,193 urban poor into 1,163 primary groups including 864
women's groups (Table 1) under UPDP this year alone. PROSHIKA introduced its Urban
Poor Development Programme (UPDP) in 1990 to reduce the vulnerabilities of the urban
poor who are deprived of the basic needs of life such as food, safe drinking water, proper
health-care, education opportunities, clothing, proper housing and sanitation facilities, etc.
Besides, constant threats of slum eviction make their livelihood precarious. PROSHIKA
helps them restore their basic human rights and save them from the uncertainty of their
livelihood through this programme.
UPDP activities have so far reached 2,101 urban slums and 328 urban wards. Of these, 1,162 slums
and 129 wards were brought under the programme against the target of 1,518 and 134 respectively
during the last five (July 1999-June 2004) years. (Reference:

Building People's Organization:

The number of women group members is 15,793. However, 13,478 primary groups have been
formed against the target of 12,000 since the beginning of Phase VI FYP.

The urban group members, like their rural counterpart also receive different human and skill
development training for capacity building and tapping income and employment opportunities.
During the reporting period, a total of 3,756 human development-training courses were held with
40,991 participants of whom 1,047 were women. Besides, a total of 169 human development
workshops were organized for 3,559 participants including 2,762 women.

Employment and Income Generating (EIG) Activities:

Although the risk of loan realization in urban settings is very high because of eviction, arson and
continuous movement of population, PROSHIKA assists its urban group members with credit
support along with appropriate training. However, in most cases, the realization rate has been good
since the inception of this programme. Often the hoodlums tend to disrupt the EIG activities of the
poor in urban slums but Slum Federations themselves resolve those problems.
During the year 2003-2004, the urban group members of whom 84 per cent projects were
implemented by the women group members implemented a total of 15,263 projects. The amount of
loan disbursed against these projects was Tk. 1,117 million. .(

PROSHIKA Savings Scheme (PSS)

During the reporting year, 355,802 urban group members have saved Tk. 188.32 million. The
savings balance as on 30 June 2004 stands at Tk. 394.77 million. A compensation of Tk. 2.12 million
has been paid to the family members of 211 deceased group members this year.

Economic-Social Security Programme (ESSP)

The group members have deposited Tk. 28.46 million under the ESSP programme. The net savings
under ESSP unto 30 June 2004 stands at Tk. 53.75 million.

Although PROSHIKA decided not to establish any new NFP schools or adult literacy centers during
the period due to the lack of necessary operational funds, yet a total of 267 NFP schools have been
established with enrolment of 8,010 girls and boys during the year.

Health and Nutrition

The urban slum dwellers are deprived of such facilities like safe drinking water, medicare,
education, sanitation and other services. Hence, sufferings from various communicable diseases due
to their poor living conditions are very common in the urban slums. As such PROSHIKA conducts
training courses on health and nutrition education for the urban group members to make them aware
of their health and about the necessary preventive and curative measures against common diseases.
PROSHIKA also provides services like supplying of safe drinking water and sanitation facilities for
A total of 5,049 sanitary latrines and 309 household filters have been distributed in the urban slums
during the reporting period.

Legal Literacy and Legal Aid

PROSHIKA provides these urban group members with legal aid and primary knowledge of civic
rights as well as family and inheritance laws to help them resist these situations. For this, helps are
sought from PROSHIKA appointed lawyers, the lawyers' forums and human rights organizations, if
During the last five years a total of 2,079 legal briefs were prepared and notices served. Moreover,
legal aid was provided in 2,396 cases, and 100 legal literacy-training courses were held for the group
members. (Reference:
HDT is one of the key components of PROSHIKA's development process. The programme helps the
group members develop analytical skills and positive attitudes towards social change, and allows
them to acquire management and operational skills as well as to best utilize their potential as human
The HDT programme also offers several training courses for the development of PROSHIKA
staff members to make them conversant with the culture, values, development process and
the policies of the organization.

During the last five years (1999-2004), HDT has organized 1,044,755 training courses for
16,440,985 group members. Besides, 911 staff training courses were conducted for 23,271 staff
More than 20 million people have been provided with PROSHIKA's human development training
(HDT) so far.
Training courses are also organized for the staff of other NGOs and government agencies to build
their capacities in different areas.

Group Training

This year, PROSHIKA conducted 16,221 centrally organized, GTC, village and group-based human
development training courses for 225,175 participants of which 168,636 were women.
The HDT courses for the group members and the leaders of the federations are as follows:
a) Social Analysis and the Techniques of Building Organizations;
b) Development and Organization;
c) People’s Organization Management;
d) Health and Nutrition Education;
e) People’s Theatre;
f) Non-formal Primary Education;
g) Methods and Techniques of Participatory Training of the Trainers
(TOT); and
h) Environment and Development.
PROSHIKA offers training both in formal and non-formal settings. Formal training courses are held
at PROSHIKA's Human Resource Regional Human Resource Development Centers (RHRDCs) in
Chittagong, Mymensingh and Bogura. Besides, the HDT programme organizes a number of non-
formal training courses at the villages where it works. (Reference:

Workshops are also organized for the group members in order to review their understanding
on different issues and make further plan of actions accordingly. During the reporting year a
total of 816 workshops were organized for 15,415 group members.

Staff Training
During the reporting period, a total of 1,147 PROSHIKA staff members including 261 women,
participated in 51 HDT courses.
The following HD training courses are organized for the staff of PROSHIKA, other NGOs and
government agencies:

1. Orientation on PROSHIKA and Its Activities;

2. Sustainable Development Strategies and Poverty Eradication;
3. Sustainable Development and Poverty Eradication: Philosophy,
Principles and Strategies
4. Development Programme Management: PROSHIKA Context;
5. Methods and Techniques of Participatory Training (TOT);
6. TOTS on Group-based Training;
7. TOTS on Development and Disaster Management;
8. Women in Management;
9. People's Theatre;
10. Healths and Nutrition Education;
11. Understanding the Art of Advocacy and Building Advocacy Skills;
for Sustainable Development
12. Financial Management of Development Activities;
13. Accounting and Financial Management of Development
14. Training of Trainers (TOT) on Non-Formal Primary Education
15. Training of Trainers (TOT) on Adult Functional Literacy.


PROSHIKA believes neither poverty eradication nor sustainable development can be
achieved alone. Collective efforts are essential to fight against the forces that facilitate the
process of under-development.

Hence, in order to empower the poor, PROSHIKA organizes the landless, the marginal and
small peasants, the occupational working people like fishers, weavers and artisans, the slum-
dwellers, and the women of all the above categories to form 'primary group'. Through a
process of empowerment involving human and skill development training, the group
members help themselves and engage in different income-generating activities with
assistance from PROSHIKA Financial Service. A primary group is called samiti and consists
of 18-20 members of same gender.

Since there beginning of the Phase VI FYP PROSHIKA formed 72,105 primary groups
against the target of 75,600 groups. Of these, 4,335 groups including 3,011 women's group
have been formed for the reporting period. The number of members belonging to these
groups is 68,462 of which 47,231 are women.

Table 1 provides an account of the primary groups formed during the reporting period.

Table 1: Primary Group Formation

Achievement, 2003-2004
Group Till-to-
Types Target Achievement % of Achievement

2,143 3,011 141 94,317

Men's Groups 5,579 1,324 24 51,419

Total 7,722 4,335 56 145,736

As always, the group members were provided with PROSHIKA support services such as non-formal
education, training, credit, technical assistance, etc., which helped them, change their socio-
economic condition. Besides, constant counseling by the PROSHIKA workers helped them achieve
group cohesiveness.
Group Federation:

In order to achieve greater alliances among the poor, federations are formed with
representatives from primary groups at the village, union and upazila levels as well as at the
urban slum and ward levels. The federations play an effective role in achieving greater
alliances among the poor. The federations protect the interest of the poor at all administrative
levels and undertake various socio-economic programmes in a participatory method to
strengthen their capacity. Thus they acquire access to private and public resources, services
and institutions. The group federations at the village, union, upazila, slum and ward levels,
are called Village Federations (VFs), Union Federations (UFs), Upazila Federations (UZFs),
Slum Federations (SFs) and Area Federations (AFs) respectively.

Table 2 shows the number of federations formed at various levels during the reporting year.

Table 2: Federation Formation

Achievement, 2003-2004 Group
Types Target
% of Achievement Achievement

Village Federations (FVs) 4349 1328 31 14,316

Slum Federations (SFs) 401 210 52 1,803

Union Federations (UFS) 442 109 25 1,216

Upazila Federations (UZFs) 55 11 20 115

Area Federations (AFs) 7 2 29 26


Group Development Stages

GDS is a holistic means of measuring the progression of groups through poverty levels. All
members enter the groups at the very first level of poverty called GDS 1.The system is based
on 16 management and 26 socio-economic indicators on a scale from 1 to 5 in terms of their
self-development status. Whenever the annual income of all the members of a group reaches
Tk. 48,000 and all the members of the group become literate, and are aware about primary
health care, gender and environmental issues, as well as their civil and political rights, the
groups is treated as a poverty-free group, and achieve GDS 4 or 5 status. During the last five
years, 46,453 primary groups, consisting of 714,661 households have been able to reach the
stages of GDS 4 and 5. A total of 1,177,844 poor households came out of poverty since
PROSHIKA's inception. During the reporting period a total of 11,126 primary groups have
reached the status of GDS 4 and 5, which translates into 171,169 households.

Table 3: Poverty-Free Households and Beneficiaries Since Inception

Particulars Total Poverty-Free

Households 2,102,788 1,177,844

Beneficiaries 11,565,334 6,478,142

After reaching the poverty-free stage, the groups do not require PROSHIKA's support
services any more but remain in the group network and play a vital role in the group
federations. The following programmes are also available for such groups.

1. The members of these groups due to their upgraded financial capability can
undertake relatively larger employment and income generating activities with the
credit support from PROSHIKA's Small Economic Enterprise Development
(SEED) programme.

2. They participate in the elections of local government bodies and institutions and
are provided with special training for further leadership development.

3. They act as resource persons in imparting training and building group networks,
and also play active role in different forms of social mobilization.


Area Expansion
Every year PROSHIKA expands its programme activities to newer areas in order to achieve a
very high and sustainable impact on poverty. This year, PROSHIKA expanded its activities to
136 new villages, 21 unions, 5 upazilas, 31 slums, 2 wards, and one district where the poor
are not involved in any development activities conducted either by any government agency or
an NGO. PROSHIKA has, so far, expanded its activities to 23,430 villages, 1,817 unions, 267
upazilas, 2,101 urban slums and 328 wards, under 57 districts. Of these, 10,654 villages, 597
unions, 85 upazilas, 1,162 urban slums and 129 wards were for the period of last five years of
Phase VI FYP against the target of 6,817 villages, 390 unions, 47 upazilas, 1,518 slums and
134 wards.

Achievement, 2003-2004
Area Coverage till-
Achieve- to-date
Areas Target % Of Achievement

Village 80 136 170 23,430

Slum 40 31 78 2,101

Union 2 21 1,050 1,817

Wards 1 2 200 328

Upazila — 5 — 267



Poverty Reduction in Bangladesh

Strategy and Policy Dialogue

ADB operations continued to focus on poverty reduction. The key emphasis was on
infrastructure, human development, governance, and environment. Policy dialogue with the
government contributed to fostering reforms in the energy, transport, education, and urban
sectors. In the energy sector, the thrust was on further progress toward autonomy and
commercialization of sector entities. In the transport sector, the focus was on formulating the
national land transport policy and on enhancing the efficiency of port operations through
computerization and environmental improvements including containing oil spills.

Their Activities
►The assistance program emphasized development of SMEs,

• Improved quality of secondary education,

• Improved urban flood protection,

• Enhancing port capacity,

• Meeting international port security and environmental standards.

For the development of SMEs, the stress was on strengthening the policy environment and
improving access to credit and support services. A gender action plan will ensure the
participation of women entrepreneurs in policymaking, training programs, and credit fund

►ADB's assistance will boost efficiency and security at Bangladesh's Chittagong Port. The
emphasis will be on installing modern computer systems to expedite cargo processing which
will lead to lower shipping and port-handling charges and will foster greater international
trade. Several procedural and operational improvements will be addressed. These include
enhancement of personnel skills, a strategic plan for increasing productivity and cutting costs,
support for the preparation of an anticorruption strategy, modernization of procedures,
revisions to tariffs, and better environmental management.

►ADB undertook a joint mission with the World Bank to help the government to conduct
flood damage rehabilitation needs assessment following the severe flooding in the country
during July–August 2004.

Loans and Technical Assistance
ADB approved seven loans for five projects totaling $249.5 million for SME development,
for improving the quality of secondary teaching, for integrated flood protection of secondary
towns, for Chittagong Port trade facilitation, and for the Grameenphone telecommunications
project to expand the cellular network in Bangladesh. Twelve technical assistance grants
totaling $6.3 million were also approved.
Trade policy and poverty:

Bangladesh’s trade policies area. Designaheted both medium term imperatives and long-term
programes outlook. It is important to link trade with poverty reduction strategy and it is also
hard work both analytically and practically with a view to formulation of policies.
Bangladesh for the phasing out of the MFA regime. If trade would hot be considered as a
component of overall development, an exclusive focus on trade for poverty alleviation will
not be successful, the objective of sustained poverty alleviation will really on sustained
growth and progress of productive capacities. The sufficient export growth with employment
generation. Export success will have great impact on poverty alleviation if the export-
oriented sector accumulates adequate employment opportunities like the RMG.
(Reference: Unlocking the potential, National strategy for accelerated poverty reduction,
2005, P.72-73)

Supporting the RMG Sector:

The Government of Bangladesh has played an instrumental role in faciliting the private sector
driven growth of RMG exports, such as back-to-back LC, and bonded warehouse facility.
Government has also campaigned for duty free access, both developed and some developing
countries. A national coordination council has been formed to deal with the problems of the
RMG sector on a priority basis. The council has recently submitted its report to the Prime
Minister and provides specific recommendations on CBW, ROO, SAARC accumulation and
trade facilitation aspects. Commerce ministry led several Ministries and leading NGOs will
participate to provide improved training and rehabilitation work for displaced RMG Workers
(Reference: Unlocking the potential, National strategy for accelerated poverty reduction,
2005, P.72-73)

Promoting Employment:

Poverty is multidimensional and it is because lack of access to various entitlements, most

important is access to good productive employment. Poverty is alleviation largely depend on
labor market structure and process. The private sector play an in impotent role in the
economy and it is increasing. The future prospect of employment generation depends
generally on employment friendly growth of the private sector but government also create
with the help of public sector employment and generation of employment consequent on
public expenditure. The strategies for generation of productive employment will give priority.

I) Strengthening role of public investment in employment with the help of its direct and
cutaytic support to economic, physical and social infrastructure building and private
investment and labor market regulation

I) Implementing active labor market policies and active labor market policies help to
support employment generation. In these way:
i) Directly by public works and enterprise development and also help to
eradicate poverty with the help of increase work and income.

ii) Indirectly by increasing workers skin and capacities through training

and retraining
(Referency: Unlocking the potential, National strategy for accelerated poverty reduction,
2005, P.72-73)

Entrepreneurship Development:

Development of Entrepreneurship will serve poor people to operating in the informal

economy in the Urban and in the rural non-fram sector to set up new activities. Scale up the
exiting ones and increase productivity. (Unlocking the potential, National strategy for
accelerated poverty reduction, 2005, P.74)

Development of ICT for Growth and poverty reduction:

The Government of Bangladesh identified that Information and Communication Technology

can make an overreaching impact on development that is had the ability to overcome.
Contains of social, economic and geographical isolation, diversify access of information and
education. The poor people thus will participate in more of the decisions that will make a
great impact in their lives. ICT is regarded as an indispensable tool in the fight against
poverty and ICT has the power to provide hation with an unprecedented opportunity to
implement vital development goals poverty reduction basic health care etc. the Government
has invited certain moves and offer some programmes through which standard education
using ICT can be made accessible to the poor.
Some policy also taken by the Government and these are:
1) Formulation of a National ICT policy.
2) Adoption of e-Government Initiatives in selected areas.
3) Legislation of ICT ACT, etc.
(Referency:Unlocking the potential, National strategy for
Accelerated poverty reduction, 2005, P.101)
Expanding Telecommunication Facilities

It is realized that accessed tale-density boosts economic growth and simple access to
telecommunication facilities has been vital for success of any ICT initiative for the poor.

Necessary steps have taken to present new services like data communication and country
wide digital networks connecting all districts. Bangladesh Telecommunication Regulatory
communication (BTRC) has been established and it is encourage private sector participation
is fixed telecom-services and increasing tele-density and tele-access in the country.
Besides encouragingly private participation in the sector, Government identifies the urgently
for more reforms in BTTB. (Unlocking the potential, National strategy for Accelerated
Poverty reduction, 2005, P.102)

Expanding Internet facilities for Rural people:

To provide internet facilities for the poor at a low cost and to bring about drastic change in
their livelihoods, moderns technology will be introduced in all sectors of the economy. From
this purpose Government has initiated a number of projects and programmers. (Unlocking the
potential, National Strategy for Accelerated Poverty Reduction, 2005,p.102)

We have study about the poverty Alleviation and we propose some measures that can reduce
poverty, as it is one of the major problems of Bangladesh. These are the measures can be
taken eradicate poverty:
1. Although SAARC contribution in the South Asia region is very little but the last
summit in Dhaka is renewed a turning point. Poverty is something that affect day to
day lives of million in the region concrete effort to reduce poverty needs to be
demonstrated so that common people could pin down hope in the SAARC process.
2. During the last summit, SAARC poverty Alleviation fund (SPAF) has been formed
and we think every heads of state or Government will give top most priority to utilize
the facility of the fund.
3. Bangladesh Government has taken several measures for the women’s but to reduce
poverty, women’s employment is essential.
4. Countries economic stability tackling corruption should receive priority to eradicate
5. Human resource development and to reduce illiteracy is a must to eradicate poverty.
6. Promoting employment, specially for youth, skilled oriented programme should be
introduced receive priority.
7. Three quarters of the countries total population and 85% of the poor live and earn
their livelihood in the rural areas. So eradicate poverty, rural areas should be focused
for development so that it will help to achieve high growth of GDP.
8. Micro-credit to become more effective in poverty reduction, a Humber of
recommendations are put forward. The poor must be reached with micro-credit
through innovative approaches with respect to changes in credit delivery mechanism,
diversified financial services and complementing micro-finance with non-financial
interventions. The up scaling of micro-credit is needed to continue support to mature
clients, new entrepreneurs and tomorrow’s poor.

In Bangladesh, a person per day income is 13.5 and it is almost impossible for any person to
meet his basic need. So this is the time to implement the activities of SAARC, Government
and NGOs. Antipoverty innovations such as micro-credit have gone on to the world renown.
We hope that Bangladesh will achieve the Millennium Development Goals (MDGs), that is to
reduce poverty in half by 2015 and also achieve the SAARC Development Goals (SDGs) and
we are not known poor country in the world. Dhaka Declaration of the 13th summit was to
2006-2015 as the SAARC poverty eradication Decade and to implement this, combine effort
will need.
Statistical Appendices: