'Life is about choice'; but impoverishment cannot be the choice of life. Blaming individuals because of being poor is like blaming the whole society. Poverty is a socio-economic challenge for a country. GDP (Gross Domestic Product) growth rate, industrialisation and per capita income are progressing well in Bangladesh, but poverty as an impediment still exists in the country. 1.5 crore people of Bangladesh are ultra-poor and more than three crore are living below national poverty line.
To quote Rabindranath Tagore, "The village has fallen into the medieval period; city is in the modern era, the gap between the two is large". It is exactly so. The difference between urban and rural conditions in the country is too yawning. Technological advancement, industrialisation, educational institutions, i.e. all development ventures are located in the urban sectors. The rural areas are always deprived of all development projects such as those related to technological advancement, industrialisation etc, although 80 per cent population of the country live in villages.
There are many reasons behind the seemingly uncontrolled poverty rate. One of them is the top-down approach in the economy. There is a common logic behind this approach. When economic growth or GPD growth increases at the centre or core, it helps develop economic growth on the peripheries as well, like the trickle-down effect. In reality, the trickle-down effect does not work in the long run. Aggregate economic growth or GDP growth does not ensure equitable distribution of income. The income gap between the owners and workers of industries continues to rise.
Inequitable income distribution is another challenge to the elimination of poverty. Gini coefficient shows the state of income inequality between rich and poor citizens of a country. Gini coefficient of 2016 is 0.39 in Bangladesh. In 2014, it was 0.31 for the country. Because of inequitable distribution, income gap is increasing between the rich and the poor. Rich people become richer day by day, and the poor become poorer and find themselves confined to the poverty trap.Â
The urban-centric development projects do not help in alleviating poverty rate in Bangladesh. Eighty per cent of the country's total population lives in rural areas. Lack of job opportunities or industries and unemployment are high in the rural region. There exists a close relationship between poverty and unemployment. If the rural people do not have employment, they inevitably become poor. The poverty rate is also high in rural areas, at 36 per cent, compared to 28 per cent in urban areas. Poor people cannot meet the basic needs of their families. Many people cannot afford adequate diets and suffer from spells of food shortage.Â
The positive news is that poverty rate is decreasing in the country. Presently, the annual national poverty rate and extreme poverty rate in the country are 23.2 per cent and 12.9 per cent respectively. (HIES-2016). In 2010, the national poverty rate was 31.5 per cent and extreme poverty rate 18.5 per cent.Â
On the graph, the national poverty curve and extreme poverty curve both are sloping downward. In 2005, the national poverty rate was 40 per cent. In 2016, the national poverty has decreased 16.8 per cent.Â
General Economics Division (GED) senior secretary Prof. Shamsul Alam says, "The government has put special emphasis on poverty alleviation and pledged to eradicate poverty through planned economic development. If poverty reduction continues at the present rate, extreme poverty in the country may be eliminated by 2028."Â
At this point the issue of inclusive development appears. It is about ensuring progress in living standard and economic sustainability of every single individual in the country as well as "leaving no one behind". Economic growth is not sufficient for reducing poverty rate. Government and policy makers have to attach more priority to inclusive development rather than economic growth. Inclusive development is of great importance for alleviation of poverty rate in our country. This type of development is an imperative and the most important stage facilitating sustainable development. Â
Micro-level development or rural development is another prerequisite for eliminating poverty. Both the poverty rate and the percentage of population are quite higher in rural areas compared to the urban region. More than 80 per cent people in the rural region depend on agricultural productivity for their survival. But farmers are not familiar with modern technology; as a result the amount of agricultural productions is also low. On the other hand, unemployment and underemployment rates are high at the rural level. Low standard of living, scarcity of healthcare facilities, lack of educational opportunities and scarcity of jobs --- all are stark reality for farmers in their everyday lives. Poverty rate in the northern part of the country is higher than in the southern segment of the country. Lack of sufficient food is common in many pockets. Farmers turn out to be the main victims. Many farmers get caught in the vicious cycle of poverty. Governments should increase investments in the rural parts of the country and enlarge job opportunities for the unemployed people by setting up new industries. Governments have to encourage foreign investors or multinational companies to invest in rural areas. The micro-level development is more effective and efficient than the developments at macro level in order to demolish the cycle of poverty.
The writer is studying for his BachelorÂ
in Social Sciences (BSS) degree inÂ
Development Studies at Dhaka University.
Poverty eradication: Micro approach
FE Team | Published: May 29, 2017 20:47:54 | Updated: October 17, 2017 16:15:42
Poverty eradication: Micro approach
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