The European Union (EU) has transferred €35 million to Bangladesh to advance the national social protection reforms, in line with the 2015 National Social Security Strategy and its action plans.
This payment was made against the government's progress in achieving agreed targets within the framework of the EU budget support operation (2019-2025) in social protection, amounting to €247 million, said a press release.
Budget support is a means of delivering effective aid to partners' countries and of backing them to accelerate social reforms, based on their national and international commitments and priorities.
It also aims to strengthen the capacity of the partner country in the implementation of the policy and public finance systems, and in improving the accountability of the government towards its citizens, reads the press release.
In the fiscal year 2021-2022, in line with its commitments, the government of Bangladesh strengthened its social protection institutional arrangements, increasing the number of beneficiaries paid through the Government to People (G2P) system and further developing the current Single Registry into a comprehensive database of social protection beneficiaries, for better targeting, inclusion and monitoring.
Moreover, on the program reforms, the government of Bangladesh increased the coverage of the Mother and Child Benefit Program by 20%, bringing the total number of beneficiaries from €1.045 million in FY 21-22 to €1.254 in FY 22-23 and launched the country's first employment injury insurance (EIS) scheme, reads the press release.
This scheme will provide financial coverage for all workers in the 100% export-oriented apparel industry in Bangladesh, for long-term benefits in the event of death and permanent disability arising out of workplace accident and injuries.
Finally, through the approval of the Labour Management Information System project, the government of Bangladesh paved the way for the establishment of a Digital Workers' Registry, which is an essential feature for the timely and effective delivery of social protection benefits, reads the press release.
The EU Ambassador, Charles Whiteley, said: “Social Protection is a human right and a major tool to tackle poverty and social exclusion. It is also a powerful socio-economic stabilizer and a key tool to build political stability.”
“I commend the important progress of the government of Bangladesh in achieving the agreed budget support targets and especially the decision to increase investment in the early years and to develop a government-owned workers' database. Under the global challenging economic context, social protection expenses should not be relegated to the second plan. The EU will keep working hand in hand with the government of Bangladesh to increase its domestic resource mobilization and strengthen a sustainable national social protection system to enhance people's resilience in times of crisis and shocks”, he adde
The disbursement of this payment comes after a positive decision of the Budget Support Steering Committee of the European Commission's Directorate-General for International Partnership in March 2023.
