This presentation discusses poverty in Bangladesh. It begins with defining poverty and outlining different approaches to measuring poverty, including headcount ratio, direct calorie intake, and cost of basic needs methods. It then reviews the historical background of poverty in Bangladesh and trends showing a decline in poverty rates from 48.9% in 2000 to 31.5% in 2010. Causes of poverty include slow economic growth, income inequality, lack of assets and employment. Strategies to reduce poverty focus on promoting growth, social safety nets, microfinance, and addressing climate change impacts.

1. Welcome to My Presentation

3. Presentation outline
INTRODUCTION
CONCEPT OF POVERTY
APPROACHES TO POVERTY MEASUREMENT
HISTORICAL BACKGROUND OF POVERTY IN
BANGLADESH
TRENDS OF POVERTY
CAUSES OF POVERTY
STRATEGIES TO REDUCE POVERTY
CONCLUSION

4. Introduction
Poverty alleviation is the major
developing agenda in Bangladesh
Decreased to 24 percent from 70
percent in early 1970s

5. 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.

6. Approaches to Poverty Measurement
Income
poverty
measurement
Head
count
ratio
method
Direct
calorie
intake
(DCI)
method
Cost of
basic
need
(CBN)
method

7. 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

8. Direct Calorie Intake (DCI) Method
Absolute
poor
• Calorie intake of less than
2,122 kcal per capita per
day
Hard-
core poor
• If less than 1805 kcal per
capita per day

9. Cost of Basic Needs (CBN) Method
A household with per capita expenditure below
the poverty line is considered as poor

10. Cost of Basic Needs (CBN) Method
Under this method, three steps are involved:
Estimation
of food
poverty
line
Estimation
of lower
and upper
allowances
for non-
food items
Estimation
of lower
and upper
poverty
lines.

11. 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

12. 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.

13. Multidimensional Poverty Index (MPI)
MPI is measured using ten indicators:
Years of
schooling
Child
school
attendance
Child
Mortality
Nutrition
Electricity
Sanitation
Drinking
water
Floor
Cooking
fuel
Assets
ownership

14. Historical background of Poverty in Bangladesh
Discrimination
against East
Pakistan
Industrialization
in West Pakistan
took place at the
cost of
deprivation of
the province in
the East
one third of the
national wealth of
Bangladesh was
damaged in 1971
Crop failure and
disruptions in flow
of food aid to the
country in 1974
aggravated the
situation
People below
the poverty line
in Bangladesh
reached 83% in
1975
In 1981-82,
the figure
was 74%
The economy was
in stagnation and
suffered a new
setback because of
devastating floods
of 1987 and 1988
Almost half of the
country's
population lived
below the national
poverty line during
the period 1990-
2004

15. 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.

16. 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.

17. Trend of Incidence of Poverty Estimated
through CBN Method (For Upper Poverty line)
50.1 48.9
40
31.5
From 1995 to 2010
National

18. Trend of Incidence of Poverty Estimated
through CBN Method (For Upper Poverty line)
50.1 48.9
40
31.5
54.5
52.3
43.8
35.2
From 1995 to 2010
National
Rural

19. Trend of Incidence of Poverty Estimated
through CBN Method (For Upper Poverty line)
50.1
48.9
40
31.5
54.5
52.3
43.8
35.2
27.8
35.2
28.4
21.3
From 1995 to 2010
National
Rural
Urban

20. Trend of Incidence of Poverty Estimated
through CBN Method (For Lower Poverty line)
35.1 34.3
25.1
17.6
National
From 1995 to 2010

21. Trend of Incidence of Poverty Estimated
through CBN Method (For Lower Poverty line)
35.1 34.3
25.1
17.6
39.4 37.9
28.6
21.1
National
Rural
From 1995 to 2010

22. Trend of Incidence of Poverty Estimated
through CBN Method (For Lower Poverty line)
35.1 34.3
25.1
17.6
39.4 37.9
28.6
21.1
13.7
20
14.6
7.7
National
Rural
Urban
From 1995 to 2010

23. 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.

24. Causes of Poverty
Stagnant
economic
growth
(around 6%)
Inequitable
distribution
of income
Lack of
access to
productive
assets
Lack of
employment
opportunities
Lack of
education
and skills
Over
population
Natural
disaster
(floods,
cyclone,
drought,
etc.)
Inadequate
adoption of
modern
agricultural
technologies
Political
instability
Lack of
good
governance

25. 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.

26. Strategies for Poverty Reduction
Promote growth
Enhance the access of
the poor to production
inputs
Expand employment
opportunities through
connectivity with
growth poles
Undertake
entrepreneurship
development scheme
for the returnee
migrant
Stimulate women’s
participation in the
labor force
Promote overseas
labor market
Enhance the access
of poor to micro
finance
Strengthen the
coverage of social
safety net
programmes
Mitigate the adverse
consequences of
climate change

27. Allocation Pattern of Social Safety Net Programmes
24,042.80
26,654.01
30,636.00
37,546.00
(2012-13) (2013-14) (2014-15) (2015-16)

28. 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.

29. 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