With regard to South Asia, Bangladesh has made tremendous progress in closing the opportunity gap between low and high-income groups.
Surprisingly, considering the substantial gender disparities in South Asia, girls benefit more than boys from living in a city, according to the World Bank's latest regional economic update.
South Asia's continuous economic expansion has lifted over 250 million people out of extreme poverty and improved living conditions during the last two decades.
According to the report, while the region as a whole is experiencing inequality, there is a significant difference between countries. Bangladesh, Sri Lanka, and Bhutan have slightly higher mobility and equality of opportunity than their neighbours in the region.
The report also indicated that there is an urban premium within countries.
This indicates that being born in a city increases one's chances of moving further ahead than one's parents (in terms of schooling) and, more broadly, various circumstances do not confine accomplishment as tightly as they do in rural places.
The "11th South Asia Economic Policy Network Conference on Social Progress in South Asia," co-hosted by the Brac Institute of Governance and Development (BIGD) and the World Bank.
A two-day conference, Expanding Opportunities: Toward Inclusive Growth, began on Tuesday (May 9).
In his opening remarks Abdoulaye Seck, country director for Bangladesh of the World Bank and Bhutan said Bangladesh has made significant progress in bridging gaps between low and high-opportunity groups, particularly in the education sector.
He also added that South Asian countries must continue to reduce socioeconomic disparities as they lead to differences in access to jobs, earnings, consumption, and welfare, and impact overall growth.
Reducing inequality of opportunity and increasing economic mobility in South Asia is important because it is an essential part of broadening the tax base, said Hans Timmer, chief economist of the World Bank.
Therefore, eliminating obstacles to mobility is not merely a long-term agenda, but should be a central part of current reform programs that aim to make the fiscal outlook more sustainable, and help South Asia achieve its full potential, he said.
Imran Matin, BIGD executive director also said that the high levels of inequality of opportunity and low intergenerational mobility in South Asia are not only unjust but also impede long-term economic growth.
“Policies to address it will create a more equitable society and help unlock the region's full potential. We should remember that lack of social progress means lack of social justice,” he also added.
According to the report, South Asia has seen an unprecedented combination of shocks over the last three years, and transitioning from recovery to growth necessitates guaranteeing inclusive economic development, according to the World Bank's latest regional economic assessment.
To that end, the report recommends continuing to improve primary education quality and expanding access to secondary and higher education, evaluating and strengthening affirmative action policies aimed at "low opportunity" groups, and policies to improve the business climate for small and medium-sized businesses, which account for the majority of job opportunities for the less well-off.
Furthermore, because urban regions tend to offer more chances for social mobility, lowering labor movement obstacles can have a substantial equalizing effect.
However, economic growth has not benefited all groups equally, and social progress remains elusive.
South Asia has among the world's highest inequality of opportunity.
Shirin Sharmin Chaudhury, speaker of the Jatiya Sangsad said, although the progress of South Asian countries is visible in terms of social development, further improvement is needed in some areas including maternal mortality, unemployment, and malnutrition.
The government has emphasized on social security programs to improve the condition of Bangladesh. Proper implementation of these programs are necessary as achieving inclusive growth is needed.
Between 40% and 60% of total inequality in the region is driven by circumstances out of an individual's control such as place of birth, family background, caste, ethnicity and gender.
Intergenerational mobility is also among the world's lowest, less than 9% of individuals whose parents have low levels of education reach education levels of the upper 25%.
Inequality of opportunity is not only unfair, but it is also inefficient as it prevents an optimal allocation of talent and reduces incentives to accumulate human capital, and derails long-term economic growth.
The two days long conference provides academics and researchers a platform to discuss South Asia's economic outlook and how socioeconomic disparities prevent the region from achieving its development goals.
