Insurance scheme suggested for sustainable growth

Bangladesh Social Protection and Labor Review report focused on the issue for the country’s existing safety net programmes. The report was launched as Bangladesh Development Series by The World Bank at a seminar held yesterday in capital. Minister for Planning AHM Mustafa Kamal attended the seminar on the launch of review report as the chief guest. The report found out that Bangladesh has a large number of safety net programmes particularly focusing on equity, but lacks programmes for resilience and opportunities through social insurance. Well-designed social insurance can provide mechanisms to collectively hedge against various risks, the report suggested. Discussants at the seminar said insurance scheme is necessary to help individuals prepare for rainy days and also inclement weather. At the same time pension scheme in the private sector should be introduced and even such scheme could be small in amount which the government and business owners can take up jointly. In his address, Mustafa Kamal said the government has put more effort on ensuring insurance scheme for labour. Insurance Development and Regulatory Authority (IDRA) has been asked to come up with social insurance scheme. The review report also focused on several challenging issues and risks which require policy intervention. Firstly, poverty and vulnerability remain high due to income shocks and limited access to risk management for the poor. Secondly, job challenges among young people are high. The youth in between the ages of 15 and 24 make up about 30% of the working people entering the labour force and creating job pressure. Less participation of women in workforce is also considered a challenge towards improving labour market. The report says despite strong improvement in female literacy level, a high share of working women is engaged in non-paid family work.