Progress in poverty reduction

The evaluation of the global lending agency came out loud and clear in its report ‘Bangladesh Development Update’ published on recent.



Its Bangladesh office Chief Economist Zahid Hossain presented different aspects of the report at a press conference in Dhaka on last week. The agency’s Country Director for Bangladesh Johannes Zutt was present at the press meet.

The Washington-based lender observed that Bangladesh performed well in poverty eradication, human resources development and manpower export.

Though it praised the developments in power and gas sector, it expressed dissatisfaction over progress in transport and communications.

After the World Bank scrapped its plan to finance the Padma bridge project, it advised the government to finish the project work promptly.

The agency forecast 6.2 percent GDP growth in the current 2014-15 fiscal year, but feared an increase in food inflation.

Evaluating the overall economic condition, Hossain said: “Bangladesh is advancing, but at a pace, which is less than its potential.”


Progress in poverty reduction

The World Bank in its report has said Bangladesh's “poverty incidence is projected to decline to 24.47 percent by 2014”.

Data with the national statistical agency, the Bangladesh Bureau of Statistics (BBS), says 57 percent people were living under the poverty line in 1990 while the rate came down to 31.5 percent in 2010.

It is 3 percentage points higher than the UN's Millennium Development Goals (MDGs) target of 28.5 percent to be achieved in 2015.

Only two days earlier, claiming only 26 percent of the country's population was currently below poverty line, Finance Minister AMA Muhith anticipated poverty to reduce to half of the current level by 2021.

He also hoped the country would be poverty-free in 2030.

The World Bank report also praised Bangladesh's progress in human resources development.

According to the UN Human Development Report 2014, Bangladesh graduated from Low Human Development (LHD) category to Medium Human Development (MHD) category in 2013.

The report said total domestic employment increased from 51.9 million in 2010 to 56.5 million in 2013.

Increase in manpower export is contributing to curbing unemployment rate in the country, said WB's Bangladesh office Chief Economist Zahid Hossain.
Growth 6.2 percent

The government's GDP growth target rate in the current fiscal was 7.3 percent. The World Bank had projected less growth but sounded happy with it.

In 2013-14 FY, Bangladesh’s economy grew at a rate of 6.1 percent. But the bank says political stability since January, increase in remittance inflows, expected recovery in exports, and a buoyant consumption demand than last year, bodes well for growth in the current FY, which is projected at 6.2 percent.