An Investigation of Social Safety Net Programs as Means of Poverty Alleviation in Bangladesh

Mohammad Abdul Hannan Pradhan,Saidatulakmal Mohd,Jamalludin Sulaiman

doi:10.5539/ass.v9n2p139

Abstract

Bangladesh is a developing and poorer country in the world. The 2010 Household Income and Expenditure Survey (HIES) indicates around 31.6 percent of its population lives under the national poverty line. This has led to the implementation of many social safety net (SSN) programs to address the issue of poverty. In the fiscal year 2009/10, the Bangladesh government allocated 15.22 percent of total budget for SSN program that accounts to 2.52 percent of Gross Domestic Product (GDP). The main objective of this paper is to assess the impact of the SSNs programs on level of poverty reduction in Bangladesh. The study employs time series analysis on the 1996 – 2010 spending on SSN and poverty rate data. Statistical analysis indicates negative relationship between SSN expenditure and poverty rates. This implies that SSNs programs have reached the struggling poor as well as have helped the deprived part of the country’s people to pick them up of poverty situation.

Highlights

Bangladesh is a developing and poorer country in the world which is situated in South Asia
This has led to the implementation of many social safety net (SSN) programs to address the issue of poverty
During the period of 2000 to 2005, the poverty rates reduce from 48.9 percent to 40.0 percent (Finance Division [FD], 2009) and during the period of 2005 to 2010, the poverty rates reduce from 40 percent to 31.50 percent (BBS, 2011)

Summary

Introduction

Bangladesh is a developing and poorer country in the world which is situated in South Asia. The SSNs programs have protection and promotion effects on households well being and can play role for poverty reduction (Devereux, 2002; Barrientos, Hulme, & Shepherd, 2005; Slater, 2011). This subject has been treated as progressively more disputed. The key objective of this paper is to assess the relationship of SSNs expenditure on the level of poverty reduction in Bangladesh.

Poverty in Bangladesh

Data and Methodology

Relationship between Poverty Rates and SSN Expenditure

Findings

Conclusion