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From independence to middle-income: How can Bangladesh reverse its fate of 90% poverty?
Bangladesh is a country that faced severe challenges after independence. However, with rapid economic growth and policy reforms, the country has made remarkable achievements in reducing poverty. Since economic reforms and trade liberalization in the early 1990s, Bangladesh's poverty rate has fallen alarmingly. According to a World Bank report, more than 33 million Bangladeshis have been lifted out of poverty since 2000. Data for 2020 show that the country's per capita income has tripled, from less than US$700 in 2010 to US$2,068, making Bangladesh successfully promoted to a middle-income economy.
According to World Bank statistics, Bangladesh's poverty rate plummeted from 90% to 9% between 1972 and 2018.
Economic growth has not only improved people's living standards, but also brought the female labor force participation rate to 50%, ranking among the best among South Asian countries, and the female primary education enrollment rate has reached 98%. These achievements fully demonstrate Bangladesh's progress in gender equality and education, and have become the focus of the international community.
The current situation of poverty in Bangladesh
According to the World Bank, Bangladesh’s national poverty line remains challenging, especially between urban and rural areas. Although overall poverty rates are falling, urban poverty is not declining as fast as in rural areas. At the same time, with the acceleration of urbanization, especially in Dhaka City, the problem of poverty has become increasingly prominent.
In 2010, the proportion of extremely poor people in the city was 7.7%, and by 2016 it had only dropped slightly to 7.6%.
Rural and urban poverty
In rural areas, nearly 35% of the population lives below the poverty line. They face chronic food insecurity and lack adequate education and health services. In urban areas, about 21% of the population also lives in poverty. Despite high standards of living in cities, people living in poverty still face a lack of housing, health and basic services.
Urban poverty is not just a problem of living standards, but also a crisis of health, education and social welfare.
Causes of poverty and environmental impacts
Poverty in Bangladesh is not only the result of economic factors, but is also affected by population growth and environmental degradation. With the population growing by up to a million people each year, resources are under undue pressure. Environmental problems, such as flooding and climate change, are making the livelihoods of farmers and poor households increasingly difficult.
Bangladesh’s annual economic losses due to environmental degradation are close to US$6.5 billion, equivalent to 3.4% of GDP.
Government’s response
Faced with these challenges, the Bangladeshi government has attempted to reduce poverty by launching various economic projects and policies. However, these policies often lack sustainability and long-term support, leaving many people unable to maintain stable economic status. The newly proposed Graduation Plan attempts to address the various causes of extreme poverty. However, this is still insufficient to meet the challenges of the future.
Future Outlook
According to the Bangladesh government's plan, the country is expected to eradicate poverty within the next ten years. However, can economic growth be sustained? Can governments provide adequate support and resources to people living in poverty to build their resilience? These issues remain unresolved, and the entrenchment of poverty will require sustained efforts to change. How can Bangladesh ensure that the fruits of this economic growth reach every citizen?
