Abstract

A number of studies have established that Vulnerable Group Development (VGD) program beneficiaries are better off during the two-year benefit cycle. This study was an attempt to provide evidence using household survey data on whether the VGD program improves beneficiary household welfare over the cycle. This study was conducted in Sylhet district of Bangladesh. A structured questionnaire was administered to collect data from equal number of beneficiary and non-beneficiary households. This study used the propensity score matching (PSM) method to analyse data. The study finds a robust and positive effect of program on the beneficiary households to improve their wellbeing through improving meal frequency, per capita expenditure. The results signify consumption variability of the beneficiaries’ households. Furthermore, this behaviour of beneficiaries increases the demand for different items of good at the local market which could help enhancing the national growth. Thus the number of program beneficiary could be increased to promote the process.Â

Highlights

  • Bangladesh has accomplished a stable improvement in increasing real GDP growth at approximately five percent during more than two decades since 1990s (FD, 2011)

  • This study targeted the Vulnerable Group Development (VGD) program to measure its impact on household welfare, improving consumption diversity

  • Care was taken to ensure the representation of beneficiary households from the selected area

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Summary

Introduction

Bangladesh has accomplished a stable improvement in increasing real GDP growth at approximately five percent during more than two decades since 1990s (FD, 2011). Though the growth rate of real GDP is about five percent, it has not trickled down to the bottom level of the society (Gentilini & Webb, 2008) They suffer from insufficient income or consumption, poor health condition, low productivity of labour, poor housing condition, and others. Women or woman headed families suffer from discrimination because of their sex, limited earning capacities and opportunities; and limited access to markets, education and nutritional intake. As a result, they lead their life in the lower level of well being in the society (Sheheli, 2012)

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