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Bangladesh's economic miracle: How did it reduce poverty by 33 million in just 20 years?
Bangladesh, a country once considered a developing country, has achieved astonishing economic growth in just two decades and has successfully reduced its poverty population significantly. Of course, the hardships and challenges along the way cannot be underestimated. Today, we will discuss how Bangladesh has made poverty reduction efforts during this period and what challenges it may face in the future.
According to the World Bank, Bangladesh has lifted more than 33 million people out of poverty since 2000, an achievement widely recognized by international agencies.
When Bangladesh gained independence in 1971, about 90% of its people lived below the poverty line. With economic reforms and trade liberalization in the early 1990s, and accelerated economic growth in the early 2000s, Bangladesh achieved remarkable progress. Especially since 2000, the annual GDP growth rate has continued to exceed 6%, and sometimes even exceeded 7%.
During this time, Bangladesh’s per capita income has also almost tripled, from US$670 per person in 2010 to US$2,068 in 2020, making it the highest per capita GDP in South Asia. Based on the current growth rate, Bangladesh is expected to become an upper-middle-income country by 2041. The data seems to show a bright future, but there are still many hidden challenges.
As the number of poor people in rural areas gradually decreases, the problem of urban poverty has not been effectively solved.
Although the overall poverty rate has declined in both rural and urban areas, the rate of reduction in urban areas is much slower than that in rural areas, and most of the urban population still faces poverty. In cities such as Dhaka and Chittagong, poverty rates have barely changed. With the acceleration of urbanization, more and more people are facing economic difficulties, especially in urban areas with insufficient infrastructure, and the quality of life remains low.
For rural areas, the challenge of poverty cannot be ignored. About 35% of rural residents live in poverty, and many families face food insecurity and lack basic services such as education and health. Moreover, rural women often suffer more discrimination and become one of the poorest groups. The inability to own land and lack basic nutrition and medical care makes their situation in society even more difficult.
The urban poverty problem in Bangladesh remains severe, with about 21% of the urban population living below the poverty line. Although many urban residents have better living standards, they are also plagued by poor living conditions and insufficient infrastructure.
In cities, especially Dhaka and Chittagong, many people are forced to live in crowded and unhygienic slums that lack basic electricity supplies and clean water and are vulnerable to natural disasters. According to data, health problems and malnutrition are widespread in these areas, and many children face stunted growth.
The main causes of rural and urban poverty include rapidly growing populations, geographical constraints and lack of economic opportunities. The terrain of Bangladesh is low and flat, and natural disasters such as floods and storms occur frequently, severely affecting the livelihoods of many poor families. Although the government has launched a series of plans and policies to reduce poverty, these plans often focus on rescuing people from extreme poverty and lack long-term sustainable development considerations.
Without enhanced support, many people may fall back into poverty after a brief period of improvement.
The Bangladesh government's economic reforms also face challenges. Although the government has taken some measures to revive the economy since the 1990s, poverty reduction has slowed. Many experts are calling for more inclusive policies to help people not only escape poverty but also cope with the challenges that may arise in the future.
In the process of intertwined achievements and challenges, whether Bangladesh can continue to maintain its momentum of poverty reduction and reasonably respond to related difficulties under the new situation will be a major issue faced by the government and the people in the future. So, can Bangladesh in the future achieve true prosperity and fairness through sustained efforts?
