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Poverty in Bangladesh: Building on Progress

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Poverty in Bangladesh: Building on Progress Report No. 24299-BD Poverty in Bangladesh: Building on Progress December, 2002 Poverty Reduction and Economic Management Sector Unit South Asia Region, World Bank Document of the World Bank and Asian Development Bank CURRENCY EQUIVALENTS Taka (Tk.) US $1.00=Tk. 57.9 (June 2002) GOVERNMENT’S FISCAL YEAR July 1 – June 30 ACRONYMS AND ABBREVIATIONS ADP Annual Development Program IMF International Monetary Fund ABC Assessment of Basic Competency IMR Infant Mortality Rate BANBEIS Bangladesh Bureau of Educational I-PRSP Interim Poverty Reduction Strategy Paper Information and Statistics LFS Labor Force Survey BBS Bangladesh Bureau of Statistics LGED Local Government Engineering Department BDHS Bangladesh Demographic and MDG Millennium Development Goals Health Survey MFI Micro Finance Institutions BHDR Bangladesh Human Development Report MMR Maternal Mortality Rate MWCA Ministry of Women’s and Children’s Affairs BIA Benefit Incidence Analysis M&E Monitoring and Evaluation BINP Bangladesh Integrated Nutrition program NA National Accounts BRAC Bangladesh Rural Advancement Committee NCB National Commercial Bank CBN Cost of Basic Needs NEC National Economic Council CDF Credit Development Forum NGOs Non-Governmental Organizations CMR Child Mortality Rate NIPORT National Institute of Population research CNS Child Nutrition Survey and training CPD Center for Policy Dialogue PA Poverty Assessment DHS Demographic and Health Services PAC Public Affairs Center PARC Public Administration Reform Commission ESP Essential Services Package PCE Per Capita Expenditures ERD External Relations Department PER Public Expenditure Review FFE Food For Education PETS Public Expenditure Tracking Survey FFW Food For Work PFDS Public Food Distribution System FMRSP- Food Management and Research Support PKSF Palli Karma Sahayak Foundation IFPRI Project -International Food Policy PMED Primary and Mass Education Division Research Institute PPRC Power and Participation Research Center FSS Female Secondary Stipend RD Rural Development GDP Gross Domestic Product REB Rural Electrification Board RMP Rural Maintenance Program GIE Gini Income Elasticity RNF Rural Non-Farm GOB Government of Bangladesh SMC School Management Committee GR Gratuitous Relief SOE State-Owned Enterprise HES Household Expenditure Survey SSC Secondary School Certificate HIES Household Income and TNO Thana Nirbahi Officer Expenditure Survey TR Test Relief HKI Helen Keller International UDC Union Disaster Committee HSC Higher Secondary Certificate UNDP United Nations Development Program IFPRI International Food Policy UP Union Parishad Research Institute UPVGD Union Parishad Vulnerable Group Development VGD Vulnerable Group Development IGVGD Income Generation Vulnerable Group VGF Vulnerable Group Feeding Development WFP World Food Program IMED Implementation Monitoring and WHO World Health Organization Evaluation Division Vice President: Mieko Nishimizu, SARVP Country Director: Frederick T. Temple, SACBD Sector Director: Sadiq Ahmed, SASPR Sector Manager: Sanjay Pradhan, SASPR Task Managers: Salman Zaidi, Rinku Murgai, SASPR Report No. 24299-BD Poverty in Bangladesh: Building on Progress December, 2002 Poverty Reduction and Economic Management Sector Unit South Asia Region, World Bank Document of the World Bank and Asian Development Bank CONTENTS EXECUTIVE SUMMARY.................................................................................................................................................i 1.PROGRESS IN POVERTY REDUCTION DURING THE NINETIES:...................................................................... 2 1.1.INTRODUCTION AND OVERVIEW:............................................................................................................... 2 1.2.TRENDS IN THE ECONOMY: ......................................................................................................................... 3 1.3. TRENDS IN CONSUMPTION-BASED POVERTY AND INEQUALITY MEASURES:.................................. 4 1.4. TRENDS IN NON-INCOME MEASURES OF LIVING STANDARDS:.......................................................... 9 1.5. PROFILE OF THE POOR:..............................................................................................................................14 2. ACCELERATING GROWTH: THE ROLE OF KEY PRIVATE AND PUBLIC ASSETS....................................... 18 2.1. PROFILE OF SOURCES OF INCOME AND ASSET PORTFOLIOS:............................................................ 19 2.2. LABOR EMPLOYMENT AND EARNINGS:.................................................................................................. 21 2.3. LAND AND COMMON PROPERTY RESOURCES:...................................................................................... 26 2.4. IMPROVED ACCESS TO CREDIT:................................................................................................................ 30 2.5. OVERALL ECONOMIC ENVIRONMENT AND COMPLEMENTARY PUBLIC ASSETS: ......................... 33 3. INVESTING IN HUMAN CAPITAL: EDUCATION, HEALTH, AND CHILD NUTRITION .............................. 44 3.1. OVERVIEW OF RECENT PROGRESS IN EDUCATION:............................................................................ 44 3.2. BENEFIT-INCIDENCE ANALYSIS OF EDUCATION EXPENDITURES:.................................................. 48 3.3. OVERVIEW OF RECENT PROGRESS IN HEALTH:................................................................................... 51 3.4. BENEFIT-INCIDENCE ANALYSIS OF HEALTH EXPENDITURES: ......................................................... 54 3.5. CHILD MALNUTRITION: ............................................................................................................................. 56 4. REDUCING VULNERABILITY: PUBLIC SOCIAL SAFETY NET PROGRAMS................................................... 66 4.1. RECENT PROGRESS IN REDUCING VULNERABILITY:........................................................................... 66 4.2. MAIN SOCIAL ASSISTANCE PROGRAMS IN BANGLADESH:.................................................................. 67 4.3. TARGETING EFFECTIVENESS OF FOOD-ASSISTED TRANSFER PROGRAMS:.................................... 70 4.4. ASSESSMENT OF LEAKAGE FROM FOOD-ASSISTED TRANSFER PROGRAMS:................................... 75 4.5. IMPROVING THE IMPACT OF THE PUBLIC SAFETY-NET:..................................................................... 78 5. SCORING PROGRESS: .......................................................................................................................................... 84 TECHNICAL APPENDIX:..................................................................................................................................... 92 APPENDIX TABLES AND FIGURES................................................................................................................... 95 REFERENCES ...................................................................................................................................................... 110 List of Tables Table 1.1. Trends in CBN Poverty Measures.................................................................................................... 4 Table 1.2. Regional Trends in Poverty ............................................................................................................... 5 Table 1.3. Total Number and Distribution of Poor in Bangladesh: 2000 HIES ........................................ 6 Table 1.4. Trends in Inequality: Gini Coefficients ........................................................................................... 7 Table 1.5. Trends in Various Indicators of Malnutrition .............................................................................. 10 Table 1.6. Literacy Rates in Bangladesh........................................................................................................... 11 Table 1.7. Percentage of Children Currently Enrolled in School ................................................................ 12 Table 1.8. Poverty Incidence by Level of Education of Household Head ................................................ 14 Table 1.9. Poverty Incidence by Occupation of Household Head.............................................................. 15 Table 1.10. Rural Poverty Incidence by Land Ownership............................................................................ 15 Table 1.11. Housing Conditions by Sector and Poverty ............................................................................... 16 Table 2.1. Gini Decomposition by Source of Income .................................................................................. 19 Table 2.2. Trends in the Labor Market, 1991-2000........................................................................................ 21 Table 2.3. Unemployment and Under-employment ...................................................................................... 23 Table 2.4. Rice Market Participation Status, Rural Areas.............................................................................. 28 Table 2.5. Farm Size and Degree of Crop Diversification............................................................................ 29 Table 2.6. Distribution of Loans by Financial Sector, Rural Areas............................................................. 30 Table 2.7. Main Source of Finance for Setting-up Family Business............................................................ 31 Table 2.8. Per-capita Expenditures & Community Infrastructure
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