In recent times, the issues of social protection and social assistance are once again on the radar of economists, experts, and policy-makers. The importance of social protection lies in the fact that it has a welfare aspect and it is also an important instrument for reducing both poverty and inequality.
As a concept, social protection is linked to the notion of a welfare state. Social protection supports those who are outside the growth loop and cannot mend for themselves. But at the same time, social protection is also used as a policy instrument to reduce poverty and inequality in a society.
Social protection has various programs and instruments, ranging from disability assistance to unemployment insurance, from child care allowances to conditional cash transfers. Over the years, one of the social protection instruments that have been discussed in the literature is the notion of universal basic income.
There is a consensus that universal social protection is a pillar of a welfare state, as it is an ethical issue. There are, however, some debates on social protection as a means for tackling poverty and inequality. Some of these issues are conceptual and some of them are practical.
At the conceptual level, there are differences on the interpretation of the term “universal” in the context of social protection. Does the notion of “universality” mean that all citizens of the country, irrespective of any other consideration, will receive social assistance; or, does it refer to those who qualify for it to receive such assistance, irrespective of all other social assistance they receive? Second, should social assistance be unconditional such as simple cash transfers, or should it be conditional such as adhering to some pre-requisite conditions? Third, at the practical level, the issue of targeting has remained as a complex issue, because it balances between concerns of needs versus equities.
Social protection as an instrument for poverty and inequality reduction in Bangladesh needs some rethinking.
First
In the economic and social context of Bangladesh, social assistance is traditionally viewed in monetary terms, ie, allowances. But social assistance may be provided in terms of services as well -- as educational grants, health services or child benefits.
Some experts believe that these should be made conditional. This is because conditional cash transfers can bring in additional benefits in areas of children’s education, health, and nutrition since such transfers require children to go to schools or to visit health centres. Bolsa Familia -- the conditional cash transfer program in Brazil is a prime example. But others are in favour of universal social protection independent of any condition imposed.
Second
Those who are in favour of universality of social protection in Bangladesh argue on three-fronts.
- Targeted social protection has failed to reduce inequality in Bangladesh. In fact, inequalities have been widening in the country, as is evident from its income Gini coefficient, which has increased from 0.33 in 2022 to 0.47 in 2025. It seems that instead of closing the inequality gap, targeted social assistance has enhanced the gap. Thus, the efficacy of targeted social protection programs to tackle inequality in Bangladesh becomes questionable.
- A universal life-cycle social protection is a fundamental right of citizens and it should not be viewed as a charity.
- A universal social protection framework can contribute to the human development of Bangladesh. For example, universal child benefit can ensure that every child receives sufficient nutrition -- so vital in a country where two in three children are victims of food impoverishment. Similarly, universal educational scholarship can help reduce the drop out ratio in schools and can enhance the retention rate. There should be a rethinking about the old-age pension -- more than 15 million people in the country are aged more than 60 years. Similarly, through various social protection structures, people who are engaged in the informal sector of the country can be supported.
Third
Implementation of universal social protection would require some infrastructural facilities. A universal healthcare structure, for example, would require digital logistics, digital health cards, and integrated referral platforms.
Digital infrastructures may reduce corruption and leakages in the social protection system. For example, in the Fair Price Card Holder program, often, people who are non-poor are included in the program and become its significant beneficiaries.
Fourth
The inadequacies of the social protection programs in Bangladesh are well-known. Only 15% of eligible households receive the widow allowance. One major pillar of food security is the Fair Price Card program. But it serves only 5% of the population, excluding the remaining 95%. All these numbers imply that those in dire need of assistance are excluded from the social protection structure and the assistance provided is hijacked by those who are non-eligible for it.
Fifth
The resource implications of universal social protection are huge. Bangladesh is no exception. The 2025-26 national budget of Bangladesh has allocated nearly Tk12,000 crore to the country’s social protection system. One question in this regard is the adequacy of the allocated amount of resources . With the country’s tax/GDP ratio at 8%, the scale of the challenge to implement a universal social protection program in Bangladesh will be daunting.
But the other equally important issue is the efficiency and the effectiveness of the operation of the structure. If there are implementation problems, social protection will not achieve its desired objectives. An efficient and effective implementation of social protection programs in Bangladesh would require coordination between national and local governments, inter-ministerial framework and regular monitoring and evaluation of the programs. The last element will require the development and maintenance of a robust and credible data base on social protection programs.
As a part of the universal social protection system of Bangladesh, a few months ago, a universal basic income for the country has been proposed as a promising tool to reduce poverty, empower citizens, and streamline the social protection programs, even within the constraints of the current fiscal framework.
Some of the characteristics of the proposed program are:
- It would include a periodic, unconditional, and uniform cash payment system, offering financial security to all members of the society.
- Initially, a partial universal basic income would be perfect for Bangladesh.
- A poverty scorecard has been recommended as a reliable and cost-effective tool to assess poverty levels and identify target groups. The threshold of the proposed poverty score card is supposed to indicate the households’ susceptibility to poverty with the implication that those scoring below the threshold are more vulnerable to poverty, while those above are not. This will ensure an effective implementation of the program.
In moving forward with the proposal, it will be of critical importance to pay attention to some crucial issues.
First, the proposed universal basic income program has been referred to as an initiative that could be more effective than the current social safety net programs in alleviating poverty in Bangladesh. Does it mean that other social safety net programs should be scrapped? Or would it lead to a combined integrated social protection package for the country?
Second, the proposed universal basic income has indicated that the threshold of the poverty scorecard would be determined by analysing values in urban and rural areas, aligning them to represent households that fall below the upper poverty line. So there will be some targeting then.
Finally, it is good to know that like other relevant countries, the universal basic income proposal for Bangladesh is focusing on it first as a program on a limited scale and coverage.
Dr Selim Jahan is Former Director, Human Development Report Office and Poverty Division, United Nations Development Program, New York, USA.