1. POVERTY CONCEPTS FOR DEVELOPMENT PLANNING IN BANGLADESH Shamsul Alam, M.A. Econs. Ph.D (Newcastle) Member (Senior Secretary) General Economics Division (GED) Planning Commission Government of the People’s Republic of Bangladesh

2. Understanding Poverty Concepts and Indicators GED, Planning Commission

3. Definition of Poverty Nelson Mandela: Poverty is not natural rather it is man made out of sociopolitical and economic context. United Nations: Poverty is a human condition characterized by the sustained or chronic deprivation of the resources, capabilities, choices, security and power necessary for the enjoyment of an adequate standard of living and other civil, cultural, economic, political and social rights. GED, Planning Commission

4. Types of Poverty Primary Poverty: The incapability of having an income (expenditure) needed to buy the bare necessities of life. Secondary Poverty: A situation where real incomes are adequate to meet the minimum needs but the poor do not spend the money for satisfying these needs. GED, Planning Commission

5. Types of Poverty (Cont.) Absolute Poverty: Inability of an individual to meet the minimum requirement of life. Relative Poverty: Income inequality in society creates relative poverty. Perceived poverty relative to wealth of others. GED, Planning Commission

6. Methods of Measuring Poverty Poverty Gap Ratio: Mean distance separating the population from the poverty line (with the non-poor being given a distance of zero), expressed as a percentage of the poverty line. Squared Poverty Gap: Measures severity of poverty, takes into account not the distance separating the poor from the poverty line, but also the inequality among the poor. GED, Planning Commission

7. Pro-poor growth  Focuses attention on the extent to which poor women and men are able to participate in, contribute to and benefit from growth, as measured by changes in the incomes of the households in which they live and the assets they and their children acquire to earn higher incomes in the future (OECD, 2006). Benefits of growth create opportunities for poor also.  Provides greater opportunity for the poor to participate in the growth process, thus promoting equity.

8. Poverty & Inequality Scenario in Bangladesh GED, Planning Commission

9. MDG Progress Report 2013, GED 9 Poverty at a glance through MDG indicators Indicators (Six Indicators have been shown) Base Year 1990-91 Current Status Target 2015 Status of Progres s Proportion of people below national upper poverty line (%) (CBN method) 56.724.47 (2014 est) 29.0= Poverty gap ratio (%)17.06.58.0  Employment to population ratio (15+), (%) 48.559.3For all  Prevalence of underweight children under –five years of age (6-59 months), (%) 66.031.9 (2013) 33.0=  On track, = Goal met,  Need attention

10. Head Count Poverty Ratio MDG Progress Report 2013, GED

11. Long Term Poverty Trends MDG Progress Report 2013, GED

12. Poverty Gap Ratio MDG Progress Report 2013. GED

13. Share of Poorest Quintile in National Income GED, Planning Commission

14. Share of Poorest Quintile in National Consumption MDG Progress Report 2013, GED

15. Coefficients of Income Gini and Expenditure Gini MDG Progress Report 2013, GED 1991-921995-96200020052010 GiniIncomeExp.IncomeExp.IncomeExp.IncomeExp.IncomeExp. National0.3880.2600.4320.3100.4510.3340.4670.3320.4580.321 Urban-0.310-0.3700.4970.3730.4970.3650.4520.338 Rural-0.250-0.2700.3930.2790.4280.2840.4300.275

16. Poverty Scenario in Bangladesh Extreme Poverty Map 2010  Poverty maps provide disaggregated poverty estimates to better understand the geographical variations in poverty incidence;  The maps also provide a good indication of where the most food insecure areas of the country are;

17. Poverty Scenario in Bangladesh (Continued) Poverty Map 2010  Rangpur and Barisal Divisions have the highest incidence of poverty;  Chittagong and Sylhet Divisions have the lowest incidence of poverty;

18. Poverty Scenario in Upazila Level Richest Upazilas in 2005 UpazilaZila Poverty Rate- upper (%) 2005 Rank 2005 Poverty Rate- upper(%) 2010 Rank 2010 Double Mooring Chittagong 0.1010.011 DhanmondiDhaka 2.5021.375 MotijheelDhaka 3.1031.303 KotwaliDhaka 3.9045.8825 SutrapurDhaka 4.0054.5817 RamnaDhaka 4.7063.8212 TejgaonDhaka 5.7075.2821 GulshanDhaka 8.6083.348 MirpurDhaka 8.6096.6626 KotwaliChittagong 9.90100.272

19. Poverty Scenario in Upazila Level (Cont.) Poorest Upazilas in 2005 UpazilaZila Poverty Rate- upper (%) 2005 Rank 2005 Poverty Rate- upper(%) 2010 Rank 2010 AlikadamBandarban 78.40142.88108 GalachipaPatuakhali 76.80225.96327 ThanchiBandarban 76.70353.0532 DashminaPatuakhali 76.60421.76377 ShyamnagarSatkhira 75.70550.1950 DimlaNilphamari 75.70635.22197 RumaBandarban 75.40742.30116 RowangchhariBandarban 75.40832.91228 KaliganjSatkhira 74.90947.9665 Kala ParaPatuakhali 74.201020.31391

20. Poverty Scenario in Upazila Level (Cont.) Richest Upazilas in 2010 UpazilaZila Poverty Rate- upper (%) 2010 Rank 2010 Poverty Rate- upper(%) 2005 Rank 2005 Double Mooring Chittagong 0.0110.101 KotwaliChittagong 0.2729.9010 MotijheelDhaka 1.3033.103 Biman BandarDhaka 1.31411.3016 DhanmondiDhaka 1.3752.502 CantonmentDhaka 1.54612.1026 Kushtia SadarKushtia 3.04722.5064 GulshanDhaka 3.3488.608 MirpurKushtia 3.35917.4045 BheramaraKushtia 3.411039.70201

21. Poverty Scenario in Upazila Level (Cont.) Poorest Upazilas in 2010 UpazilaZila Poverty Rate- upper (%) 2010 Rank 2010 Poverty Rate- upper(%) 2005 Rank 2005 Char RajibpurKurigram 68.82173.9012 PhulbariKurigram 68.48265.8043 RajarhatKurigram 67.69364.0046 UlipurKurigram 65.32466.9034 BhurungamariKurigram 65.14568.2027 NageshwariKurigram 64.96670.3020 MhendiganjBarisal 64.37768.4026 HizlaBarisal 62.26860.2066 Haim CharChandpur 61.30930.80373 ChilmariKurigram 61.071069.0023

22. *More developed road and transport system *Large number of social safety nets programs. Empowerment is possible through targeted SSNPs *Inflow of remittance money *Micro credit *Rural biased credit facility Growth Drivers in Poverty Reduction GED, Planning Commission

23. Distribution of Benefits of Safety Net Programmes by Economic Status in Rural Bangladesh : Poverty GroupShare of beneficiary households(%) Share of total funds received (%) Extreme Poverty24.525.6 Moderate poor15.114.8 Marginally non-poor14.616.6 Well off45.842.9 Total100.0 Source: Osmani,s.r.(2015), Linking Equity And Growth In Bangladesh, Background Paper 7 th Five Year Plan

24. Impact of Disaster on Poverty & Inequality & Reducing Poverty GED, Planning Commission

25. Mainstreaming Climate,Poverty and Disaster Management Poverty remains the main development agenda in last 4 decades. Gender, Disability, Human Rights has become integral part of poverty when mainstreaming is concerned. Environment has become a mainstreaming agenda since 1992 Disaster has become a policy agenda since 1991 Climate change has become a priority policy agenda since 2004 Poverty-Gender-Environment-Climate-Disaster nexus has become an agenda since 2010

26. Impact of Disaster on Poverty & Inequality  Disasters usually mean higher government expenditure and/or part reallocation of already committed financial resources.  Disasters also mean a fall in government revenue because they cause a reduced level of economic activity.  Disasters can also dampen investment and reduce long term economic growth. GED, Planning Commission

27. Impact of Disaster on Poverty & Inequality (Cont.)  disasters and the destruction of assets (even by river erosion) of the poor can trap families in chronic poverty because they will not have the necessary income to rebuild their homes, replace assets and meet basic needs. In other words, disasters can be a source of poverty.  Poverty has direct linkages with different types of vulnerability including physical, social and economic of the communities at risk. GED, Planning Commission

28. Reducing Poverty- 3 Pronged Planned Approach  Promoting opportunities (encouraging effective private investment; expanding into international markets; building the assets of poor people; addressing asset inequalities across gender, ethnic, racial and social divides; getting infrastructure and knowledge to poor areas – rural and urban).  Facilitating empowerment (laying the political and legal basis for inclusive development; creating public administrations that foster growth and equity; promoting inclusive decentralization and community development; promoting gender equity; tackling social barriers; supporting people’s social capital).  Enhancing security (creating a modular approach to helping poor people manage risk; developing national programmes to prevent, prepare for and respond to macro-shocks – financial and natural; designing national systems of social risk management that are also pro-growth; addressing civil conflict; tackling the HIV/AIDS epidemic).

29. 7 FYP Approach  Creating more jobs.  Job creating growth.  Sectoral emphasis for growth.  Public investment planning.  Redesigning Social Security Programs.  Devolution of power with responsibilities for ensuring greater participation.  Promoting migrant workers and inward remittances.  Provision of Agricultural Subsidies GED, Planning Commission

30. Ending Many Thanks GED, Planning Commission