WB: Bangladesh still has much to do to beat extreme poverty

“To reach its goal to become a middle-income country by 2021 and to end extreme poverty by 2030, Bangladesh must sustain its economic growth and create more and better jobs,” he said at an event in Dhaka. The event, which took place at Osmani Memorial Auditorium, was organised by the Economic Relations Division in observance of International Day for the Eradication of Poverty. Addressing the event, the World Bank chief said Bangladesh should focus on developing energy and transport infrastructure and improving the quality of health care, education and governance to strengthen anti-corruption measures. Putting emphasis on private sector investment and governance, he said the World Bank Group was looking forward to working with Bangladesh to promote such investment by strengthening governance and improving the investment climate. At present, foreign direct investment in Bangladesh is less than 1.7% of the GDP, which is far below than that of most countries. Kim highly appreciated Bangladesh’s effort to eradicate poverty, saying the country is a lesson for other countries in ending extreme poverty. “Bangladesh’s impressive record in dramatically reducing poverty gives us hope that this trend will continue and other countries can do the same.” According to Bangladesh Bureau of Statistics, annual poverty rate has come down to 23.2% as of April-June 2016 from 48.9% in 2000. Extreme poverty stood at 23.2% from 34.3% during the same period. Kim said looking back at Bangladesh’s history, the educational attainment of Bangladeshi women was among the lowest in the world in 1991, whereas at present primary school enrolment for girls in Bangladesh is the same as in India and higher than in Bhutan, Nepal and Pakistan. Referring to the contribution of organisations such as Brac and Grameen Bank in reducing poverty, Kim said large NGOs and private sector companies brought micro-finance, investments in female-owned small businesses and other initiatives to empower poor people. He said Bangladesh also recognised that investment in people is just as important as investment in so-called hard infrastructure like bridges, roads and energy. These investment in people support an educated and healthy workforce that can help Bangladesh compete effectively in the global economy, he added. Kim addressed the private sector’s role in eradicating poverty and said women’s employment more than doubled in the span of a decade: in 2003, seven million women were employed, which increased to 17 million by 2013. Some four million women, mostly from poor rural areas, are currently employed in the ready-made garment sector, he added. Kim said he was also impressed by the record economic growth and investments in Bangladesh despite many challenges. “Bangladesh, for instance, is exceptionally vulnerable to severe cyclones, accounting for 70% of all storm surge in the world, but with an active community participation, Bangladesh has adapted itself to climate threats, putting in place early warning systems, cyclone shelters, evacuation plans, coastal embankments and reforestation schemes.” Since 2000, the economy has been growing consistently at 6% on average every year, and that growth has lifted millions of people out of poverty, the World Bank chief added. Referring to World Bank data, Kim said 20.5 million Bangladeshis overcame poverty between 1991 and 2010. The poverty rate dropped to 18.5% in 2010 from 44.1% in 1991, he added.