As Bangladesh graduates from the Least Developed Country (LDC) status, it is imperative that the government start investing in a more comprehensive social insurance system alongside the development of conventional safety nets. Our economy suffers from a number of challenges when it comes to the equitable distribution of wealth, and with the recent inflation this is an issue that will only get worse in the future.
Despite our imminent graduation to developing status, there are still a number of challenges that our nation will need to contend with such as the absence of tariffs on our imports and the ability to manufacture medicine at lower rates.
While the government has introduced a pension scheme, participation has been staggeringly low. A more comprehensive social insurance system, the government has the opportunity to reduce costs related to traditional social safety net programs.
However, the specific numbers paint a more grim picture: There are more than 30 million people engaged throughout various sectors in Bangladesh, but two-thirds of them have no insurance in case of workplace incidents which render them unable to work. While the nation is far from the days of Rana Plaza and Tauren Fashion, workplace accidents are still prevalent enough to warrant an overhauled social insurance system.
Without preparation, such a feat is impossible.
To that end, it would behoove the government to coordinate with experts and listen to the recommendations as prescribed by the Centre for Policy Dialogue when they state that a platform should be provided for collaborative discourse when it comes to policy support for social insurance.
Bangladesh is enjoying unprecedented levels of growth. Let’s make sure everyone benefits from this.
