Poverty Reduction In Bangladesh Research Articles

Impact of components of compensation on labours job satisfaction in the garments industry of Bangladesh

ABSTRACT The readymade garments (RMG) industry is a major driver of economic growth and poverty reduction in Bangladesh. It accounts for more than three-quarters of export earnings, contributes roughly 10 percent of GDP, and employs over 4 million people, the majority of whom are women, in approximately 5000 factories. The industry has faced several problems. High labour turnover is one of them, as it harms business performance and labour productivity. This study was carried out to determine various components of compensation and how they affected labourers’ degree of job satisfaction. Simple random sampling has been used to collect primary sources of data. The sample size is comprised of 151 labourers from the various garment factories in Bangladesh. This study revealed that labourers are more satisfied with their benefits Packages. In light of the higher costs associated with the inflation index, the average yearly wage or payment should be raised for compensation compared to the previous years. Furthermore, the Wage Board should periodically review workers’ basic pay and benefits to reflect changes in the country’s economic landscape. Based on the study’s findings, it is recommended that the pay structure and administration for RMG workers remain the same.

The impact of migrant remittances on poverty reduction in Bangladesh

AbstractThis study aims to assess the impact of international remittances on poverty alleviation in Bangladeshi migrant families using household surveys. A Multi‐Stage Stratified Random Sampling approach was employed to collect data from four upazilas of the Tangail and Comilla districts. The propensity score matching (PSM) method is used to evaluate the impact of returnee workers' remittances on household economic welfare that to ensure poverty alleviation. The average treatment effect in treated outcomes using the PSM technique demonstrates that the land asset, income, and expenditure scenario of migrant households has improved significantly compared to nonmigrants, indicating a notable reduction in poverty. Moreover, international remittances also improved savings and investment status substantially, along with wealth accrual and land possession. Hence, international remittances proved to be a boon for migrant families as remittances drove returnee households towards lower poverty in Bangladesh. Intervention programs that include financial literacy components (including digital banking) for safe money transfer and low interest bank loans for migration costs are required to maintain remittance inflows and sustainable reductions in poverty.

Unlocking the potential of rural informal entrepreneurship for poverty reduction in Bangladesh: A sustainable livelihoods perspective

ABSTRACT This study examines the current landscape of rural entrepreneurship in Bangladesh, a sector engaging 75% of the workforce, utilizing the Sustainable Livelihood Framework. Employing a quantitative approach, the research conducts face-to-face interviews with selected entrepreneurs. The findings reveal that 46% of entrepreneurs hold positive perspectives on five key livelihood indicators, with social capital ranking highest at 62% and physical capital lowest at 34%. Analysis of 20 indicators unveils that merely 50% of entrepreneurs express positive opinions for 12 indicators, with many responses hovering around 40%. These results paint a challenging picture of entrepreneurs’ outlook on their lives and livelihoods, providing valuable insights for policymakers, poverty experts, and development practitioners in shaping effective interventions.

Impact of Microcredit on Poverty Reduction in Bangladesh: a cross-sectional study

Purpose: Usually, microcredit is known as the providing of “small loans” to the poorer group of the population although it differs from country to country. Many poor and hardcore poor people have been taken the microcredit to reduce their poverty. This study aimed to detect the impact of microcredit on poverty reduction among different levels of poor people. Methodology: Primary data were collected using cluster sampling from the 14 different slum areas from Sylhet city in Bangladesh (n= 408) based on a semi-structured questionnaire during October 2023 to December 2023. Descriptive statistical analysis and Generalized Estimating Equations (GEE) were used to analyze the data. Findings: It was observed that among the participants 76% are male and 24% are female. Around 84.1% individuals were taking microcredit from the different NGOs and among them 91.6% got benefit from their loan and their income was increasing 14.6% as well. It was also observed that 54.4% people are anxious about their food and 15.9% people are sleeping with hunger. Results also revealed that after taking microcredit the average percentage of hardcore poor people are significantly decreased compared with non-poor. It may indicate that after taking microcredit hardcore poor people invest their loan more appropriately compare to poor and non-poor groups of people. Conclusions: Taken together, we conclude that microcredit might play better role for hardcore poor people. To get more success of microcredit and hence for sustainable development- government and non-government organizations should pay more attention to reduce the interest rate of loans.

Impact of Microfinance Initiatives on Poverty Alleviation in Bangladesh

Purpose: The aim of the study was to analyze the impact of microfinance initiatives on poverty alleviation in Bangladesh. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Microfinance in Bangladesh has boosted incomes, improved housing and food security, and empowered women economically, fostering entrepreneurship and decision-making. It has also enhanced social cohesion and community development through economic participation. Despite challenges, microfinance remains crucial for poverty reduction in Bangladesh. Unique Contribution to Theory, Practice and Policy: Social capital theory, agency theory & capability approach may be used to anchor future studies on analyze the impact of microfinance initiatives on poverty alleviation in Bangladesh. Foster community engagement and social cohesion within microfinance groups through participatory decision-making processes, group activities, and capacity-building initiatives. Incorporate social capital building objectives into microfinance program design and evaluation criteria, incentivizing MFIs to prioritize community empowerment and social capital formation.

The Impact of SIPP on Improving the Livelihood and Poverty Reduction in Bangladesh: Some Case Study from Jamalpur and Gaibandha District

The Social Development Foundation (SDF), a government-led organization, is implementing an Institutional Development Fund (IDF)/World Bank-supported Social Investment Programs Project (SIPP) in various villages in Bangladesh to improve the livelihoods and poverty reduction of marginalized people. The purpose of this study is to understand how to improve the livelihoods of the poor and extremely poor using SIPP support. This study follows a qualitative methodology using thematic methods such as a case study. The study shows that the majority of beneficiaries improve their livelihoods by receiving SIPP support. This study can be useful for government policy makers, Non-Government Organizations (NGOs) and social workers.

Impact of community-based micro-finance in urban poverty reduction in Bangladesh

Purpose: This study aimed to assess the impact of community-based microfinance in reducing urban poverty with a particular focus on Sylhet City, Bangladesh. Methodology: The Community Saving & Credit (CSC) strategy of the Urban Partnership for Poverty Reduction project was chosen as a case in this study. This study used a qualitative research approach by following focus group discussions and in-depth interviews as data collection instruments. The purposive sampling method has been observed to collect data from 20 (twenty) respondents from Sylhet City Corporation's two slum areas, where the Urban Partnerships for Poverty Reduction Project was implemented like other urban areas of Bangladesh. Findings: The study findings show that implementing the Community Saving and Credit (CSC) strategy in Sylhet City has reduced poverty among those who applied for loans. It has enhanced the availability of food, made housing more affordable, diversified income sources, improved health conditions, increased access to education, and amplified the voice of women, especially those in poverty. Research implications: This research will help the government to achieve the Sustainable Development Goals (SDGs). It will also inform the government about local perceptions regarding the dimensions of escaping poverty. After knowing about the locally specific dimensions of getting out of poverty and the effect of the CBM system in reducing poverty, the government and the policymakers can plan additional steps to operate community-based microcredit systems to reduce poverty.

The Impact of Foreign Direct Investment on Poverty Reduction: Evidence from Bangladesh

This study aims to identify the contribution of foreign direct investment on poverty reduction in Bangladesh with a data period of 32 years starting from FY 1991 to FY 2022 with annual observations in real term. Besides foreign direct investment, gross domestic product, government expenditure on education, employment, and trade openness are used as control variables. Per capita consumption is used as a proxy for poverty reduction. The study goes for Johansen Co-integration test and then Vector Error Correction Model rather than Ordinary Least Squares Regression to avoid any spurious result as indicated by Augmented Dickey-Fuller test. This study finds that FDI has significantly negative relationship while Employment has almost indifferent effect on poverty reduction in the long run. However, other control variables, i.e., GDP, Govt. Expenditure on education and Trade openness have long run positive relationship in this regard. The short run causality of FDI toward poverty reduction is also insignificant in Bangladesh.

Financial Development and Poverty Reduction in Bangladesh: Evidence from the ARDL Bound Testing Approach

This paper investigates how financial development is related to poverty reduction in a developing nation such as Bangladesh. Employing the ARDL bound testing approach to cointegration, the study finds that the variables representing poverty reduction and financial development are cointegrated. The long-run and the short-run estimations indicate that financial development reduces poverty. In particular, on average, a 1 percent increase in financial development reduces poverty by 0.6 percent in the long run, and in the short run, the rate is 0.4 percent. The results are robust even when controlling for military expenditure and macroeconomic stability variables. The study also discovers that even though military expenditure may seem innocuous in the short run, it hurts poverty reduction in the long run.

Impact of Microfinance on Poverty Alleviation: A Study in the Southern Part of Bangladesh

Poverty is the incapability of a person to meet his basic need like food, cloth, and shelter. Every country has to face poverty across the world. Bangladesh has also been suffering from poverty. Micro Finance Institutions in Bangladesh are trying to reduce the poverty alleviation over the country. The purpose of this study is to identify the impact of different microfinance services to poverty reduction in Bangladesh. A structured questionnaire was used to collect the data from respondents in Barishal division, Bangladesh, and OLS regression was estimated to find out the impact of microfinance services to the poverty reduction in Bangladesh. Results show that micro-credit mostly influences poverty reduction. Savings, micro-insurance, and training also influence the poverty reduction in Bangladesh. The implication of the study is that microfinance service provisions should be more user-friendly for the customers so that the services can be advanced to the locals of the different regions of Bangladesh for facilitating the rapid economic growth. Financial education may be introduced for a better understanding of microfinance services collection, usage, and for return policy. Policymakers may also provide some guidelines to fight poverty for their rest of life.

Assessment of Islamic microfinance on poverty reduction in Bangladesh

Assessment of Islamic microfinance on poverty reduction in Bangladesh

Assessment of Islamic microfinance on poverty reduction in Bangladesh

The main objective of Islamic microfinance institutions (IsMFIs) is to uplift the socio-economic status of the poor. This is essential to evaluate the effects on the Islamic microfinance (IsMFs) program and its participants. This research attempts to analyse the multilevel effect of IsMFIs at the enterprise level and social level in Bangladesh. Rural development schemes (RDS) are considered as baseline tools for measuring the effects on the social and enterprise levels. Primary data have been collected from the program's participants, which are the two leading IsMFIs in Bangladesh, by employing cross-sectional design with the stratified random sampling method. IsMFIs appear to spur the social and enterprise of the program's participants. The analysis indicated a powerful and positive effect of system participation on financial efficiency and enterprise resource foundation. This study proposed a model that has the potential of being applied for poverty alleviation programmes in Bangladesh.

Poverty alleviation through self-sustaining new entrepreneurs program: a case study in Bangladesh

Purpose- One of the significant challenges facing many countries in the world is poverty. Mass poverty and unemployment can be eliminated through entrepreneur development. This study focuses on introducing how the new entrepreneurs (NE) program can help poverty alleviation in Bangladesh. Methodology- The case study was used to capture the NE program process and context. The data collection was done by in-depth interviews with respondents who are business owners of different small business. Findings- The result of this study showed that the NP program has significant effect on poverty reduction in Bangladesh. The NP program is the process that provides trainees with knowledge, skills, and financial support to create a professional businessman for poverty and unemployment reduction. Conclusion- Entrepreneurship is central to the economic growth and development of any nation. The NE program is the resourcefulness of traditional entrepreneurship whose mission is to change the society. The NE program is a sustainable solution for reducing poverty. Adequate attention must be given to the growth of new entrepreneurs.

Decomposing Rural Income into Sectors to Identify Their Likely Contributions to Rural Poverty Reduction in Bangladesh

The article estimates the contribution of total income from each sector to the overall rural income. It tests if the poor, who are concentrated in the lower-income quintiles, gain most from farm or non-farm sources of income growth. Also, within the farm or non-farm income, what are the relative contributions of its different sources. The dominance of agriculture is still there for the lowest quintile of rural households, farming still being the dominant sub-category. Over 1991–2010, a 13 per cent decrease in per capita real income from agricultural wages for all rural households and a 41 per cent decrease in that for Quintile 1 rural households contradict the earlier finding that increases in real wages were one of the main contributors to poverty reduction. Quintile-wise decomposition suggests that a substantial income enhancement was realised at upper quintiles of rural households. It also appears from the quintile-wise decomposition that the efficiency enhancement was realised more at upper quintiles leaving a relatively smaller effect on poverty reduction.

The Impact of Social Safety Net Programmes on Poverty Reduction in Bangladesh: An Evidence from Old Age Allowance

Poverty among the rural poor elderly people is a crucial issue for Bangladesh since most of the people live in a rural area and rural people are more poor and vulnerable compared to the urban population. The Old Age Allowance Program (OAAP), under Social Safety Net Programmes (SSNPs), is one of the initiatives and interventions of government to solve this problem. This study tried to explore the effectiveness of OAAP for reducing poverty among its beneficiaries, rural poor elderly people, through qualitative methodology by applying semi-structure interview and secondary sources. The findings of the present research showed that OAAP has a positive impact on reducing poverty among the rural poor elderly people. Especially OAAP ensures the access of its beneficiaries to improve food and calorie, including increasing their status within their families as well as in society. However, outcomes also suggested ensuring more transparency during the enlisting stage of beneficiaries along with increasing allowance money and coverage, involving local civil society during the primary stage of enlisting beneficiaries, more publicity program for raising awareness among the targeted people, reducing complexity during withdrawal of allowance etc. Therefore, allocation of this benefit can be distributed based on the area, and the demographic structure of a particular district and Upazila and age can also be reduced for the rural poor women.

Co-operative Investment Policy as a Tool to Accelerate the Entrepreneurship and Improve the Poverty Condition in Bangladesh

Bangladesh is one of the poorest countries in the world with low GDP/capita and minimum purchasing power. A third of the total population (24.3%) lives below the national poverty line ($2/day) while a half of them do live in extreme poverty level ($1.25). It’s now a national issue as high rate of poverty is the cause of permanent economic downturn and socio-economic depression in Bangladesh. Many policies have been applied by government and NGOs since its independent in 1971 to alleviate the poverty but no policy has brought a remarkable outcome. The main purpose of the study is to examine the causes for high rate of poverty in Bangladesh and insufficiency of the government agencies that are working to alleviate the poverty and propose innovative approaches to growth of entrepreneurship to bring sustainable economic growth and improve the poverty condition. The study is based on structural and semi-structural questionnaires and face to face interview. A total of 60 structural and same numbers of semi-structural questionnaires were given to 100 recipients of various age, sex, education, profession and economic levels regarding the factors to get feedback. In this research, a cooperative investment policy and a government action plan have been drawn up based on coordination between the various agencies, which allow the impoverished section of the population to save and invest collectively in order to involve them in entrepreneurship to lift themselves out of the poverty cycle and bring sustainable development. The aim of the research involving the impoverished population to entrepreneurship through co-operative investment policy and promoted government mechanisms to improve the poverty condition in Bangladesh. Search tasks: *To examine the major reasons for the high rate of poverty in Bangladesh. *To explore the impacts of entrepreneurship to accelerate the economic growth and improve the poverty condition in Bangladesh. *To discover the most effective ways to involve the impoverished population to entrepreneurship. *To develop a co-operative investment policy and an integrated government strategy covering all financial, administrative, supervisory and regulatory aspects that will regulate the state's action to accelerate the entrepreneurship and achieve economic growth. Subject of the research cooperative investment policy and improved government mechanism for poverty reduction in Bangladesh through entrepreneurship growth. Object of the research the rate of poverty, entrepreneurship. Keywords: Impoverished Population, Co-operative Investment Policy, Entrepreneurship, Government Performance, Sustainable Development.

Rural Transformation, Occupational Choice and Poverty Reduction in Bangladesh during 2010-2016

Between 2010 and 2016, 90 per cent of the poverty reduction of Bangladesh occurred in rural areas. The gains in poverty reduction were largely driven by non-agricultural sectors (i.e., both industry and services). This paper describes the recent evolution of employment and wages in rural Bangladesh. The analysis highlights the increasing trend into non-farm employment in the rural sector and some of the factors linked to the choice of non-farm jobs. The paper relies on the Household Income and Expenditure Surveys for 2010 and 2016 with additional evidence drawn from the Labour Force Surveys. Overall, there has been a more pronounced non-farm orientation of jobs in rural areas since 2010. This process has been observed for both males and females, and for those with higher education levels. Better connectivity and microfinance are also positively linked with off-farm employment. The increase in non-farm employment was much faster in Eastern than Western divisions of the country, which can partly explain the re-emergence of the East-West divide in terms of welfare after 2010.

What Works for Working Women? Unpacking the Constraints on Female Labour Force Participation in Bangladesh

During the last five years, urban poverty reduction in Bangladesh has stagnated and, perhaps without coincidence, this has also been a period in which urban female labour force participation (FLFP) rates have also fallen. Understanding factors that constrain FLFP in urban areas is increasingly important to understanding how to ensure urban income growth and poverty reduction, as Bangladesh continues to urbanise. This paper explores factors that constrain women in slums and low-income neighbourhoods in Dhaka from engaging in the labour market and supplying their labour to wage or self-employment. It uses unique individual level data on labour market participation, time-use, norms and skills, both cognitive and non-cognitive. The data reconfirm well-known patterns about female labour force participation: that it is higher among low-income neighbourhoods and women with low education, and it is higher among younger unmarried women. The paper also highlights the correlation between soft-skills and type of work. In addition, the paper quantifies the important correlation between the need for childcare, safety in public spaces and at work.

Foster, Greer and Thorbecke Class of Poverty Measures to Assess the Role of Rural Microenterprises in Poverty Reduction in Bangladesh

Due to diminishing trend of cultivable land and some other realities, microenterprises are increasingly being popular among rural marginalized and impoverished people of Bangladesh as a means of their livelihood and a way to reduce their poverty. In this context, these enterprises require assessment of their economic activities and their contribution to rural economy particularly the assessment of their role in poverty reduction. Therefore, we assess the impact of rural microenterprises in poverty reduction providing quantitative measures of poverty in terms of various indices using Foster, Greer and Thorbecke (FGT) class of poverty measures. This study also provides the classification of households according to poverty status. The case-control study design has been employed in the present study. Case and control groups have been respectively defined as rural households that own and don’t own microenterprises as their main sources of income. Some socioeconomic indicators at a certain level have been considered as matching criteria. The households satisfying all these matching criteria are the eligible ones for the study. A sample of 360 households (180 cases and 180 controls) have been selected applying two stage sampling design, where primary sampling units (villages) have been selected following standard systematic probability proportional to size sampling and the secondary sampling units (households within the village) have been selected by systematic random sampling. From the findings, it is evident that, in respect of upper poverty line, the incidence of poverty is over 1.5 times in control than in case households, while the depth and severity of poverty are 2 times more in control than in case households. On the other hand, in respect of lower poverty line, the incidence of poverty is about 2 times in control than in case households, whereas the depth and severity of poverty are nearly 2.5 times more in control as compared to case households. This indicates that much lower poverty remains in the households that own microenterprises as compared to their counterpart. Consequently, it is concluded that rural microenterprises play a considerable role in poverty reduction. Our findings suggest that policies in favour of developing more new microenterprises and enriching the existing ones would help to reduce the poverty in Bangladesh. To promote new micro-entrepreneurs in rural areas, policy makers should take some motivational programs like financial support, technical support, training on entrepreneurship development etc.

Neoliberal Governmentality, Public Microfinance and Poverty in Bangladesh: Who are the Actual Beneficiaries?

Most of the earlier studies examined the impact of microfinance on poverty reduction. Few studies emphasized on the broader policy framework and implementation process—the actors and factors associated with the process, which are critical to make an impact. This study is an attempt to explore whether public microfinance service reaches to the poorest through qualitative case study evidence. Some quantitative studies argued that non-profit-oriented Microfinance Institutions (MFIs) have greater outreach than profit-oriented MFIs. This study argues that even the non-profit MFIs could not reach to the poorest through adoption of neoliberal governmentality by demonstrating the Bangladesh Rural Development Board (BRDB), a public organization dedicated for poverty reduction in Bangladesh, as a case. The study found that neoliberal policy of market solution of poverty problem provides a financial market for the better off instead of the poor.