referanced: 8th five year plan of bangladesh prepared by : S M Sium Contact : +8801785060830 or smsium98@gmail.com

1. By S M Sium
Dept of Geography and Environment
University of Dhaka
POVERTY AND INEQUALITY
REDUCTION STRATEGY
– According to 8FYP -

2. CONTENTS
Introduction
Past Progress with Poverty Reduction
Rural & Urban poverty status
Factors That Helped Achieve Poverty Results Outcome
Emerging Issues on the Poverty Front
8FYP Targets for Poverty Reduction
Main Elements of the Poverty Reduction Strategy
Multidimensional Poverty Index (MPI)
PROGRESS WITH REDUCING REGIONAL DISPARITIES
Poverty Reduction Progress during the Seventh Plan
Eighth Plan Strategy for Poverty Reduction
Strategy for Addressing the Poverty Problems for the Lagging Regions
PROGRESS WITH INCOME INEQUALITY REDUCTION
Strategy for Better Income Distribution
Summary & Suggestions

3. Bangladesh was born 50 years
ago in last month amid
genocide, squalor and
starvation.
Henry Kissinger famously referred to ..
Bangladesh then as a “basket case,” and
horrifying photos from a famine in 1974
sealed the country’s reputation as
hopeless.

4. 10%
100%
20%
40%
60%
80%
Could we change his
speech ?
2016 1970
Poverty
24% 80%

5. Past Progress with
Poverty Reduction
2000-2016
50m
40m
30m
20m
10m
Extreme Poor Poor
2000 2005 2010 2016
1.45%
1.54 %
It constitutes an impressive
average decline of 1.45 &
1.54 percentage points per
year
70m
60m
39.1
46.6
20.7
26.0
55.1
34.6
62.8
44.0

6. Causes of Rural &
Urban poverty
One of the biggest cause of rural poverty is due
to the fast-growing population rate. It places
huge pressure on the environment, causing
problems such as erosion and flooding, which in
turn leads to low agricultural productivity.
The causes of urban poverty are due to the
limited employment opportunities, degraded
environment, bad housing and sanitation

7. Rural & Urban
poverty status
The rural poverty rate was 52.3% in 2000,
while the urban poverty rate was 35.1%,
yielding a poverty gap of 17.2 percentage
points. This gap was reduced to only 7.5
percentage points by 2016, with rural
poverty falling to 26.4% and urban
poverty to 18.9%.

8. Factors That Helped Achieve
Poverty Results Outcome
Growth, sectoral transformation, and
employment creation
agriculture continued to create new jobs during 2000-2010,
whereas during 2010-2016, agriculture employment fell.
External employment and remittances
External migration has provided a major source of
employment for both urban and rural workers, but
especially rural workers.
Access to microcredits
The scale and outreach of microcredits have continued to
expand with a positive impact on poverty reduction through
the financing of micro enterprises that support off-farm job
creation, smoothing of consumption and the build-up of
assets.
Special Initiatives of Hon’ble Prime Minister
Hon'ble Prime Minister has designed 10 special
initiatives with effort to building a middle income country
free of poverty and hunger by 2021 and a
developed country by 2041. These initiatives are now in
different stages of implementation

10. Emerging Issues on the Poverty Front
1
GDP growth accelerated during 2010-
2016, the rate of reduction of poverty
slowed down for both poverty and
extreme poverty. This suggests that the
growth elasticity of poverty (GEP) has
fallen. The GEP has been relatively
stable between 2000 and 2010 but has
fallen significantly during 2010-2016.
The reduction in elasticity is large for
extreme poverty for 2010-16.
2
after falling dramatically
during 2000-2010, urban
poverty progress stagnated in
2016.
The importance of job creation
in manufacturing and
construction is particularly
important for urban poverty
reduction
3
there has been an
increasing concentration of
population just above the
moderate poverty line
suggesting an increase in
vulnerability to shocks. The
experience with COVID-19
illustrates this

11. Poverty Reduction Progress
during the Seventh Plan
1
Moderate poor =24.8%
Extreme Poor = 12.9%
2
3
4
Moderate poor=18.6%
Extreme Poor=8.9%
Moderate poor=22.3 %
Extreme Poor=11.2%
Moderate poor=21%
Extreme Poor=10.4%
2016
2017
2018
2019
The Seventh Plan sought to
reduce moderate poverty from
24.8% in 2015 to 18.6% by
2020 and extreme poverty
from 12.9% to 8.9% over

12. 1
This requires
attention to the
composition of GDP
growth and its job
creation potential
3
a large number of jobs will
need to be created in the
first year of the 8FYP to
absorb the many domestic
unemployed in the informal
sector and those who are
returning from overseas
from loss of jobs owing to
COVID-19.
2
The high concentration
of near-poor close to
the poverty line means
that a large population
is heavily exposed to
shocks like COVID-19
4
the PP2041 and SDG-01
objective of securing the
target of elimination of
extreme poverty by FY2031
requires special attention to
social protection, health,
education, and training
focused on the extreme poor
Eighth Plan Strategy for
Poverty Reduction

13. 8FYP Targets for
Poverty Reduction
The average growth rate
projected for the Eighth
Plan is 8.0 percent per year.
The government will adopt all
policies including job creation and
income transfers to restore the
COVID-19 infected poverty situation
to the long-term poverty reduction
path of PP2041 by FY2022. This is
the only way that Bangladesh
would be able to eliminate extreme
poverty by FY2031.

14. Reversal of
COVID-19
induced poverty
01
Main Elements of the Poverty
Reduction Strategy
Job creation
through growth
and structural
change
02
Strengthening
education and
training focused
on the poor
03
Implementation
of the Bangladesh
Delta Plan 2100
(BDP2100)
04
Promote job
creation and
income earnings
from external
migration
05
Continued growth
of microcredit
services
06
Towards a
Universal Health
Care System for
Bangladesh
07
Strengthening the
implementation
of NSSS
08

15. A
The government, during the 7th FYP, has taken
initiative to develop the National Multidimensional
Poverty Index (MPI) and linked Child
Multidimensional Poverty Index (C-MPI)
B
The MPI analysis will help the government to establish
a robust baseline for tracking progress in non-
monetary poverty reduction over time and to identify
and target the poorest areas or the poorest sub-groups
within those areas.
C
37.6% of the total population (58.0 million) was
MPI poor in 2014, this proportion has been reduced
to 24.1% of people (39.2 million) in 2019, meaning
that 18.8 million people moved out of poverty
during those years.
What
is
it???
Multidimensional Poverty Index (MPI)

16. PROGRESS WITH REDUCING
REGIONAL DISPARITIES
Source : World Bank Poverty Assessment 2019

17. 8FYP Strategy for Addressing the Poverty
Problems for the Lagging Regions
Establishment of Char
Development Board
labor training to lagging
districts
Focusing agriculture
research
partnership
with NGOs
Refocusing ADP
Prioritizing BDP2100
Focusing agriculture research
Enhance access
to ICT services
Improve access of
lagging districts

18. PROGRESS WITH INCOME INEQUALITY
REDUCTION
HDS
Human development
strategy with an
emphasis on
alleviating the access
gap for the poor is
one powerful
instrument.
SI
A better strategy for
social inclusion by
eliminating physical
and social barriers is
another important
instrument
,
Bangladesh has already stabilized consumption inequality at
around a Gini coefficient value 0.32

19. Strategy for Better
Income Distribution
Strengthening Land Management
Redistributive Fiscal Policies
The importance of a strong fiscal re-distributive
system epitomized by better tax
compliance/administration, higher direct tax
revenue, and cash transfers on improving
equity is shown with an illustration from
Bangladesh.
• computerization of land records
• simplification of land transactions

20. Our Achievements
• Human Development Index: ranked 135th.
• Global Peace Index: ranked 97th.
• Global Hunger Index: ranked 75th.
• Global Health Security Index: ranked 113th.
• Global Education Index: ranked 142nd.
• Population Below Poverty line: ranked 80th

21. Thank You