Poverty Reduction and Social

Safety Nets in Bangladesh

Presented To

Dr. Salehuddin Ahmed

Professor
Department of Business Administration
Brac University
Presented By

Farzana Rahmn Koly

ID No. : 14364037

Kamrul Ahsan
ID No. : 14364096

Sankar Debnath
ID No. : 15164031

Shakir Mahmud
ID No. : 14364038

Faria Binta Mostafiz

ID No. : 14364082
 Poverty & Few Facts

Poverty is the lack of basic necessities that all human beings must have: food and water, shelter, education,
medical care, security, etc. A multi-dimensional issue, poverty exceeds all social, economic, and political
boundaries.
4.4 billion people live in developing countries
Three-fifths lack basic A quarter do not have
sanitation adequate housing

Almost one third have no A fifth have no access to

access to clean water modern health services
 Poverty in Bangladesh

Bangladeshis one of the world's most densely populated countries with 150 million people, 31% of whom live below
the nationalpoverty lineof US $2 per day. In addition, childmalnutritionrates are currently at 48%, in condition that
is tied to the low social status of women in Bangladeshi society.
Share of Population below National Poverty Line

Infant Mortality Rate

Employment ratio

Source: ADB
Poverty Alleviation & Social Safety Net

Poverty alleviation involves the strategic use of tools such as education, economic
development, health and income redistribution to improve the livelihoods of the worlds poorest
by governments and internationally approved organizations.
The social safety net is a collection of services provided by the state or other institutions such
as friendly societies, including welfare, unemployment benefit, universal healthcare, homeless
shelters, and sometimes subsidized services such as public transport, which prevent
individuals from falling into poverty beyond a certain level.

Some form of income insurance to help people through short-

term stress and calamities (World Bank 1990)

Safety nets are programs which protect a person or household

against two adverse outcomes in welfare: chronic incapacity to
work and earn (chronic poverty); and a decline in this capacity
from a marginal situation that provides minimal livelihood for
survival with few reserves
Social Safety Net Programmes
Why are Safety Nets Important?

Safety nets protect a person or household in three types of situations

(1) when there is chronic incapacity to work and earn (e.g., the severely disabled, elderly,
young orphans etc.)

(2) when there is an unpredictable "idiosyncratic" shock (e.g., sudden death or serious
illness of bread-winner)

(3) when there is an unpredictable community "covariate" shock (e.g., economic

recession, bad harvest, flood)

Safety net programs serve two important roles

(1)Redistribution for situations such as (e.g., income transfers, food

supplement programs)
(2)Insurance for situations (e.g., public works programs, drought relief).
Social Safety Net Programmes in Bangladesh
Social Safety Net Programmes in Bangladesh (cont.)
Impact of Social Safety Net Programmes

o Social Impact

o Economic Impact

o Ensure livelihoods

o Increase Purchasing Power

o Relieve Deprivation
A Case Video
Limitation Social Safety Net Programmes

SSNPs facilitate culture of dependency

Lack of coordination

Lack of integrated national policy

Transparency and Accountability

Favoritism and Nepotism

Impact on Savings and Borrowing

Delayed and Uncertain Disbursement

Recommendations

The target group of the Government project is very limited. It must be expended throughout the
country.

The allocation of Government budget should be increased to make programmes effective and
extensive.

An effective monitoring process is the crucial requirement for the success of all the development
initiatives under Social Safety Net Programme.

Effective measure must be taken to check the losses in the intermediary level so that the poor can
take the best possible benefits from Government project.

Small and landless farmers have to be organized and be motivated in co-operative farming.

To reach the desired goal a co-ordination between the Government and NGOs activities is a very
much required.

Modern information and communication technology can be effectively used to increased rural
production and effective marketing process.
Development Milestones of Vision 2021

Poverty Reduction
and National Growth

Education and
Employment

Health and
Family Welfare

Power Generation
Looking forward to a poverty free Bangladesh
Thank You