Poverty Reduction In Bangladesh Research Articles

Does a “Blue Revolution” help the poor? Evidence from Bangladesh

AbstractThe rapid growth in aquaculture production, globally and in Bangladesh is well documented. Over 2000–2010, per capita production of aquaculture grew 76%, while the consumer price of fish declined 45%. Previous studies have suggested pro‐poor effects of aquaculture based on fish production and consumption patterns. This study attempts to quantify the contribution of aquaculture to income growth and poverty reduction in Bangladesh, using household survey data and a microsimulation approach based on an expanded version of Deaton's concept of net benefit ratio. We estimate that aquaculture's contribution to income growth between 2000 and 2010 was 2.1%, including both price and quantity effects. This income growth was translated into poverty reduction of 1.7 percentage points. Although these estimates seem small, they represent almost 10% of the overall poverty reduction in Bangladesh during the first decade of the 21st century. Put differently, of the 18 million Bengalis who escaped poverty during 2000–2010, about 1.8 million of them managed to do so because of the rapid growth in aquaculture, which contributed to rural income while making fish more accessible to consumers.

Contributions of Agriculture, SMEs and Non-SMEs toward Poverty Reduction in Bangladesh

This paper studies the contributions of bank-based financing to agriculture, SMEs and non-SMEs in the overall poverty reduction in Bangladesh. Annual data are used from 1980 to 2015. ARDL bounds testing approach is applied for evidence of cointegration among the variables and VECM is subsequently estimated. The empirical results show that financing of non-SMEs significantly reduces overall poverty in the long run. To this effect, SMEs play a marginal role in the current state of affairs. In contrast, agricultural financing reveals, otherwise.

Parliament and Poverty Reduction in Bangladesh: Role of the MP

This article explores the role of Members of Parliament (MPs) in poverty alleviation in Bangladesh. Under the existing party-dominated parliamentary system, MPs do not have really much to do at the national level; their role is to play second fiddle to their party leaders. What most MPs now do is to try to get involved in different kinds of activities at the local level. The government often remains receptive to demands of the MPs for greater local level involvement for two reasons: first, it can be seen as a strategy to compensate the MPs for their lack of genuine involvement in national policymaking; second, it is used as a strategy to exert centralised political control over the locality, especially to discourage the emergence of any ‘autonomous’ local power. Using MPs for centralised control has negative implications for the development of local level representative institutions and democracy deepening in the country.

Microcredit and poverty reduction in Bangladesh: average effects beyond publication bias

We review the empirical evidence on the impact of microcredit on poverty in Bangladesh. Drawing on evidence from eight empirical studies with 221 estimates, we examine the impact of microcredit on three proxies of poverty – income, assets, and consumption/expenditure. After addressing issues of publication selection bias, we find that the effect of microcredit on assets and income is statistically not significant. Evidence shows a positive but weak effect of microcredit on consumption/expenditure. Meta-regression analysis reveals that sources of variations in the existing literature such as study design, data characteristics and empirical methodology can explain the differences in reported estimates.

Legal Framework of Poverty Reduction in Bangladesh: An Analysis From The International Human Rights Law

Abstract not availableNorthern University Journal of Law Vol.IV 2013; p.83-98

Gender Considerations for Rural Poverty Reduction in Bangladesh

UNICEF (2010), ADB (2011) and GOB (2011) reports reveal that Bangladesh has made significant progress in its social development areas; however, it still lack behind to eradicate poverty and sustain its social development. An initiative, rural non-farm economy (RNFE), has been introduced in Bangladesh to address poverty, social development and to empower rural women financially. RNFE has made contribution to match male–female parity in work participation and also to attain economic empowerment for women by enabling them to engage in economic activities without violating the social norms. The study indicates that women RNFE participants should get more income support and better health care facilities to maintain their subsistence and to get rid of poverty, while men RNFE participants should get more support to get involved in high-income RNFE activities and promote RNFE income growth.

Integration of waqf-Islamic microfinance model for poverty reduction

Purpose – This paper aims to develop an integrated waqf-based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the high cost of funds, high interest rate charges and poor human resource quality of the recipients. Islamic MFIs have recently evolved with the hope of overcoming these financial, ethical and human capital deficiencies faced by the conventional financial institutions. Moreover, a good number of integrated models have been proposed to enhance the role played by Islamic MFIs. Most of these models, however, lack empirical justifications. Design/methodology/approach – The research uses survey techniques. A total of 381 respondents were included in the survey. The integrated waqf-based Islamic microfinance model (IWIMM) was earlier on developed using literature and intellectual discussions. There are six constructs presenting the IWIMM, namely, waqf resources, IsMF, takaful, project financing, human resource development and poverty alleviation. In the survey instrument, 45 items represent the six constructs, but only 26 items have been retained after factor analysis. Structural equation modelling has been adopted to examine the relationship among the constructs. Findings – The results show that there are significant relationships between IsMF and takaful, waqf resources and human resource development, takaful and human resource development, IsMF and human resource development and, waqf resources and project financing. The results also indicate that poverty alleviation is possible through the integration of these constructs. Research limitations/implications – Though the paper has studied conventional and Islamic MFIs in Bangladesh, one of the populated Organisation of Islamic Cooperation (OIC) member countries and also where poverty incidence is high, further studies need to be conducted in other OIC member countries to adopt the model in line with practical and regulatory environment of those countries. Similarly, the study is based on the perception of the respondents, which limits the generalization of the result. Practical implications – The paper proposed a model that has the potential of being applied for poverty alleviation programmes in most of the OIC member states. Originality/value – The present paper has developed an IWIMM for poverty reduction.

Addressing multiple dimensions of gender inequality: the experience of the BRAC Gender Quality Action Learning (GQAL) programme in Bangladesh

Recent analyses have highlighted that poverty reduction in Bangladesh has been accompanied by growing inequality in society, measured by household income. This article considers what the implications are for development actors who are concerned with empowering the poor in society, and who understand poverty from a gender and women's rights perspective. We draw on experience from BRAC's work to address these issues, focusing on the Gender Quality Action Learning (GQAL) programme. A focus on women's self-employment alone does not result in challenging the structures of patriarchal inequalities. Gender inequality and its link to economic inequality needs to be much more centrally positioned than it currently is in development discourse. Currently economic empowerment is widely seen as a potential route to gender equality, but the GQAL programme shows work to challenge gender inequality is necessary as an entry-point to ensure effective economic empowerment.

Microfinance Helps to Rural Women for Poverty Reduction in the District of Bogra, Bangladesh

The primary objective of this study was to examine the role of microfinance programs in poverty reduction among the poor women in Bogra District. The study was based on data collected from a total of 400 microfinance beneficiaries, which was recruited using a simple random sampling in the year 2011. The study findings suggested that there was no significant relationship of microfinance on specific variables such as household income, education opportunities, employment, health, nutrition, sanitations facilities and womens empowerment in the district of Bogra. Only housing status of microfinance beneficiaries had improved during their membership periods. This study proposed a poverty reduction model that includes various aspects including political and social policy reformulations; natural disaster management; employment opportunities;financial assistances; zakat and social safety nets; proper healthcare for the poor; education and knowledge institutions; technical or skills development training; vocational education; development infrastructure and shelter; womens empowerment and capacity building; as well as womens human rights and social justice in order to be more effective in understanding and finding solutions to mitigate poverty in general. Micro-Finance Institutions (MFIs) to reduce poverty in the country. It is also conceded by a good number of economists and MFIs that the programs are successful in the poverty reduction in Bangladesh. However, it is estimated nearly 45% of the country's population lives below poverty line (2).The prime objective of the study would be examining the impact of microfinance programs in poverty reduction initiatives in Bangladesh An effective poverty reduction program will only consider the poor as change agents. The poor do not need aid; they need opportunity to get empowered to improve their living standard (3). The study by Ahmad (2009), approximately 1000 of microfinance institutions and services are in existence and operational in serving 17 million active borrowers in more than total of 85,000 villages in Bangladesh. The largest microfinance sector reaches 37% of Bangladeshi household, which is amongst the highest coverage in the world (4). However, the effectiveness of microfinance programs is not considered to improve the living standards of the Bangladeshi poor communities (5,6). The major part of this study was dedicated to evaluate the microfinance programs in Bangladesh. There was a scope to study the sustainability of short term gains of poor people in Bangladesh. Therefore, this study attempted to evaluate whether the microfinance projects are imperative for poverty reduction in Bangladesh. Amid all these remarks, it is vital to scrutinize the effectiveness of micro-financing initiatives in poverty reduction, with special references to Bangladesh.

Role of Bangladesh Small and Cottage Industries Corporation in Poverty Reduction

This study investigates the role of Bangladesh Small and Cottage Industries Corporation (BSCIC) in poverty reduction of Bangladesh. A total of 91 workers are surveyed who work in BSCIC estates and non-BSCIC manufacturing firms in the south-west region of Bangladesh. This study has used both panel and cross-section approaches. The study findings indicate that BSCIC has a significant role in industrial expansion and poverty reduction in Bangladesh. The regression results reveal that BSCIC significantly influences household consumption and poverty reduction. A 1 per cent increase in income from BSCIC will increase the yearly household consumption by 0.73 per cent, whereas it is only 0.36 per cent in case of non-BSCIC income. The impact of income increase on consumption is more than double for the BSCIC group households in comparison with non-BSCIC group households. In cross-section analysis, the purchasing power parity (PPP) at local currency of US$ 1.25 is considered in this study to construct poverty line. The result shows that, for an increase in the income from BSCIC by US$ 1 per month, income over poverty line increases (or the poverty gap decreases) by US$ 0.028 per month per household on average. Therefore, this study suggests for planned expansion of BSCIC for poverty reduction in Bangladesh.

Impacts of Rice-Prawn Farming System on Farm Productivity, Food Security and Poverty Alleviation in Bangladesh: A Case Study in Khulna District

The present study was undertaken to assess the impacts of rice-prawn gher (RPG) system on farm productivity, food security and poverty reduction in Bangladesh. In this study, farm survey data, extracted from a comprehensive questionnaire from two study villages viz. Bilpabla (RPG farming) and Chanchra (year-round modern variety–YRMV) located in Khulna and Jessore district, respectively were analyzed deliberately. This study consists of a random selection of ninety farmers from Bilpabla Village and one-hundred farmers from Chanchra. The study indicates that RPG farming system has significant impacts on farm productivity. On an average, yield of modern variety (MV) was reasonably higher in RPG farming system than that of YRMV farming system. In addition, the households engaged in RPG farming system (Bilpabla Village) have simultaneously generated more household income and per capita income (more than twice), relative to YRMV farming system (Chanchra Village). Moreover, the households of Bilpabla are superior to those households residing in Chanchra in terms of physical, social and economic access (purchasing power) which permits them to acquire and consume well-balanced food as well as sufficient calorie intake. Therefore, the RPG farming system had significant impacts on food security and poverty reduction.The Agriculturists 2014; 12(2) 126-136

On the causal nexus of remittances and poverty reduction in Bangladesh

The aim of this article is to investigate the causal relationship between remittances and poverty reduction in Bangladesh over the period 1976 to 2010. This issue is of fundamental importance for the developing economy of Bangladesh. We apply newly developed methods by Hacker and Hatemi-J (2006, 2012) that are based on simulations and are robust to the violation of statistical assumptions especially when the sample size is small, as is the case in this article. Our estimation results reveal that causality nexus of poverty and remittances is bi-directional. We also find that the causal impact of poverty reduction on remittance is stronger than the reverse impact. This finding implies that Bangladeshi policy-makers can influence remittances through poverty reduction in the long run.

Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh

This paper contributes to the literature by investigating the relationship between financial development, economic growth and poverty reduction in Bangladesh using quarter frequency data over the period of 1975–2011. This issue is of importance for developing economics given the role of financial sector in mobilizing and allocating savings into productive investments. We use an innovative empirical approach based on ARDL cointegration with structural breaks. Our findings show that a long-run relationship between financial development, economic growth and poverty reduction exists in Bangladesh. Financial development helps to reduce poverty, but its effect is not linear.

Monitoring Progress in Child Poverty Reduction: Methodological Insights and Illustration to the Case Study of Bangladesh

Important steps have been taken at international summits to set up goals and targets to improve the wellbeing of children worldwide. Now the world also has more and better data to monitor progress. This paper presents a new approach to monitoring progress in child poverty reduction based on the Alkire and Foster adjusted headcount ratio and an array of complementary techniques. A theoretical discussion is accompanied by an assessment of child poverty reduction in Bangladesh based on four rounds of the demographic household survey (1997–2007). Emphasis is given to dimensional monotonicity and decomposability as desirable properties of multidimensional poverty measures. Complementary techniques for analysing changes over time are also illustrated, including the Shapley decomposition of changes in overall poverty, as well as a range of robustness tests and statistical significance tests. The results from Bangladesh illustrate the value added of these new tools and the information they provide for policy. The analysis reveals two paths to multidimensional poverty reduction by either decreasing the incidence of poverty or its intensity, and exposes an uneven distribution of national gains across geographical divisions. The methodology allows an integrated analysis of overall changes yet simultaneously examines progress in each region and in each dimension, retaining the positive features of dashboard approaches. The empirical evidence highlights the need to move beyond the headcount ratio towards new measures of child poverty that reflect the intensity of poverty and multiple deprivations that affect poor children at the same time.

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

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.

Economic growth and child poverty reduction in Bangladesh and China

This paper analyzes child poverty in Bangladesh and China during periods of rapid economic growth. It compares the extent as well as profile of child poverty in both countries. Comparisons on the extent of child poverty over time and across countries are made using a decomposition framework attributing child poverty differences to differences in three components: mean child income, demographic circumstances and the distribution of child income. Child poverty is found to be more extensive in Bangladesh than in China, and is very much a problem for rural children in both countries. The results show that economic growth can reduce child poverty but does not always do so. For understanding changes over time and across countries in the extent of child poverty, it can be necessary to also consider changes/differences in the distribution of child income as well as in the demographic composition.

Impact of microcredit on poverty alleviation among rural women: A case study of Panchagarh District in Bangladesh

Although women constitute almost half of the total population of Bangladesh, they experience adverse situations in terms of socio-economic inequality and gender disparity. Especially, rural women are the most deprived section of the society and a majority of them are extremely poor. They have very limited access to economic and income generating activities outside their home and consequently, the less opportunity to contribute to their families and get out of poverty. MFIs are contributing significantly to poverty reduction in Bangladesh by creating income generation and self-employment opportunities for the poor people by providing microcredit. This study attempts to assess the role of microcredit programme in reducing poverty of rural women. The study is based on empirical data collected through interview from the two groups of rural women e.g. ‘with credit’ and ‘without credit’ rural women. The ‘with credit’ respondents are the members of microcredit programme of Grammeen Bank, one of the largest MFIs in Bangladesh. The findings demonstrate that, the ‘with credit’ women have a much lower percentage of poverty in terms of its incidence (80%), intensity (28%) and severity (12%) compared to the ‘without credit’ respondents (99, 59 and 37% respectively). It was also found that educational attainment of the respondents and income earners in the family contribute positively to reduce poverty situation among the ‘with credit’ households more, as compared to ‘without credit’ households. Therefore, it can be concluded that microcredit programme helps the rural women to reduce their poverty more effectively. Key words: Rural women, poverty alleviation, microcredit, Bangladesh.

Economic Growth and Child Poverty Reduction in Bangladesh and China

This paper analyzes child poverty in Bangladesh and China during periods of rapid economic growth in both countries. It compares the extent as well as profile of child poverty in both countries. Comparisons on the extent of child poverty, over time and across countries, are made using a decomposition framework attributing child poverty differences to differences in the three components mean child income, demographic circumstances and the distribution of child income. Child poverty is found to be more extensive in Bangladesh than in China, and is very much a problem for rural children in both countries. The results show that economic growth can reduce child poverty but does not do so always. For understanding changes over time and across countries in the extent of child poverty, it can be necessary to also consider changes/differences in the distribution of child income as well as in the demographic composition.

Unintended Consequences of Micro-Credit in Bangladesh: An Evaluation from Human Security Perspective

With the objective of evaluating the performance of micro-credit and its impact on poverty reduction in Bangladesh from a human security perspective, this paper identifies three unintended, yet fundamental, consequences: the exclusion of the hardcore poor from the program, producing hardcore poverty through irresponsible operation and the erosion of the value of charity. Embracing the norm of human security in micro-credit would be helpful in addressing these counter-consequences. This would require NGOs to redesign micro-credit operation in order to include all the poor, to develop social safety nets for the borrowers so that they are not pushed downwards in times of lose, and to identify alternative sources of fund so that the NGOs can continue providing charitable welfare services for the poor.

Indigenous chicken genetic resources in Bangladesh: current status and future outlook

SummaryLivestock, especially poultry, is a promising sector for poverty reduction in Bangladesh. Approximately 140 millions chickens are scattered throughout 68 000 villages in the country, mostly of indigenous, non-descript type. The production system for indigenous chickens is smallholder backyard scavenging in nature with each family keeping an average of 6–7 chickens to meet family requirements, and from which a cash income can also be derived when necessary. Indigenous chickens produce about 75% of the eggs and 78% of the meat consumed domestically. Among said indigenous chicken genetic resources, non-descript Deshi, Aseel and Naked Neck breeds are noteworthyThe non-descript Deshi chicken constitutes about 90% of the indigenous population. Also known as ‘Murghi’, they have undergone unknown periods of natural selection and are a reservoir of excellent genetic diversity. They show high levels of morphological and phenotypic variability and increased fitness under natural settings. Studies reveal that they may be regarded as one breed or population because of the small genetic distances among them. Deshi chickens are characterized by black (75%) and red (25%) plumage colour; black (39%), yellow (32%) and white (29%) shank color; black (99%) eye color; bright red (59%) and pale (41%) comb colour; white (82%) and yellow (17%) skin colour; no definite (61%) and lacing (17%) feather pattern; medium (70%) and large (19%) body size; single comb (97%) and rudimentary spur (98%); medium egg size (80%); light brown (67%) and white (27%) egg shell colour. Regarding production traits, Deshi chickens have average hatch weight of 29 g; body weight at 4, 8, 12 weeks; weekly weight gain (0–12 weeks) of respectively of 77, 175, 315, 24 grams; age at first egg (175 days); weight of pullet (0.9 kg); mature body weight (1.3 kg); hatchability (52%); fertility (83%); annual egg production (45 -50 eggs); 9% mortality up to 500 days of age.The indigenous chicken population of Bangladesh has been undergoing genetic erosion since the 1960s, following the introduction of improved stock from developed countries. Efforts to sustain commercial hybrid broiler and layer chicken farming under intensive and semi-intensive production models have been tested, but efficiency of systematic characterization, screening, breed improvement and conservation programmes with the indigenous Deshi chickens at the smallholder village levels (in-situ) of Bangladesh are yet to be tested. Such an initiative may help to save these creatures from the grip of thethreat of extinction. This in turn may help to sustain village chicken production system in Bangladesh and could be a useful micro-economic strategy in the on-going poverty alleviation process in the country.