© 2005 International Monetary Fund November 2005 IMF Country Report No. 05/410 [Month, Day], 2001 August 2, 2001 January 29, 2001 [Month, Day], 2001 August 2, 2001 Bangladesh: Poverty Reduction Strategy Paper Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document for Bangladesh, dated October 16, 2005, is being made available on the IMF website by agreement with the member country as a service to users of the IMF website. To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to [email protected]. Copies of this report are available to the public from International Monetary Fund x Publication Services 700 19th Street, N.W. x Washington, D.C. 20431 Telephone: (202) 623-7430 x Telefax: (202) 623-7201 E-mail: [email protected] x Internet: http://www.imf.org Price: $15.00 a copy International Monetary Fund Washington, D.C. ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution BANGLADESH Unlocking the Potential National Strategy for Accelerated Poverty Reduction General Economics Division Planning Commission Government of People’s Republic of Bangladesh October 16, 2005 ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution Table of Contents Page Table of Contents .............................................................................................................................................i List of Tables.....................................................................................................................................................iv List of Abbreviations........................................................................................................................................v Executive Summary..........................................................................................................................................xi Chapter Chapter I...........................................................................................................................................................1 Introduction..........................................................................................................................1 1.A UNLOCKING THEPOTENTIAL :THEPRSPVISION...........................................................1 1.B FROMI-PRSPTOPRSP....................................................................................................5 1.C PROCESSOFPOLICY OWNERSHIP.....................................................................................6 1.D MDGs:STATUS INBANGLADESH.....................................................................................7 1.E PROGRESSINCROSSCOUNTRY PERSPECTIVES...............................................................9 1.F FRAMEWORKOFTHEPRSP.............................................................................................10 Chapter II...................................................................................................................................................... 13 Nation’s Poverty SituationKey Dimensions and Determinants................................. 13 2.AANOVERVIEWOFPOVERTY TRENDS............................................................................... 13 2.A.1 Trends in Income Poverty................................................................................................... 13 2.A.2 Trends in Human-Poverty................................................................................................... 14 2.A.3 Trends in Inequality and its Poverty Consequences .......................................................... 15 2.A.4 Poverty Trends as per People’s Own Assessment.............................................................. 16 2.A.5 Poverty Situation beyond 2000.......................................................................................... 17 2.BLONGER-TERMCHANGES:THELESSER TOLDSTORY................................................... 18 2.CMAJORDETERMINANTS OFPOVERTY INBANGLADESH................................................. 19 2.DTHENEXUS BETWEEN ECONOMIC GROWTHAND POVERTY REDUCTION..................... 20 2.ENATURAL DISASTERS ANDPOVERTY............................................................................... 22 Chapter III......................................................................................................................................25 Participatory Consultation in PRS Formulation.......................................................................25 3.AMETHODS AND APPROACHES TOPRSCONSULTATION................................................... 25 3.A.1 Approach............................................................................................................................ 25 3.A.2 Methods.............................................................................................................................. 25 3.B STRUCTURE ANDPROCESS OFPARTICIPATORY CONSULTATION................................. 25 3.B.1 National Level................................................................................................................... 26 3.B.2 Regional Level.................................................................................................................. 27 3.B.3 Face to Face with the Poor................................................................................................ 29 3.B.4 Major Recommendations Emerging from Consultations.................................................. 29 3.CTHEMATIC GROUPS:FOCUS ONMAJOR THEMES BYTHE MINISTRIES....................... 34 3.DCONSULTATION ONDRAFT PRSP................................................................................... 42 Chapter IV.............................................................................................................................................. 45 Key Issues in Building Strategies..................................................................................................... 45 4.ABUILDING ONPASTACHIEVEMENTS.............................................................................. 45 4.BPREVENTING SLIPPAGES................................................................................................. 45 4.CADDRESSINGIMPLEMENTATION..................................................................................... 46 4.DBRINGINGEMPLOYMENT ANDTHE MESO-ECONOMY TOCENTRE-STAGE................. 47 i ©International Monetary Fund. Not for Redistribution 4.ESTRENGTHENING THEFOCUS ONWOMEN’SRIGHTS ANDADVANCEMENT................... 48 4.FUPSCALING MICRO-CREDIT..............................................................................................49 4.GBRINGINGTHE POLICY PROCESSINTO FOCUS................................................................50 4.HMAKINGGOVERNANCE WORK FORTHE POORAND FOR WOMEN................................51 4.IBENCH-MARKING FORMONITORING PROGRESS............................................................52 4.JQUALITY EDUCATION........................................................................................................52 4.KCHILDRIGHTSISSUES.......................................................................................................54 4.LCAPTURING “SPATIALITY”INTHEPLANNING PROCESS...............................................55 4.MLANDADMINISTRATION REFORMS ANDLANDUSE POLICY..........................................55 4.NURBANPOVERTY...............................................................................................................57 4.OCRITICAL INFRASTRUCTURES...........................................................................................57 4.PTECHNOLOGY....................................................................................................................57 4.QRISK,VULNERABILITY ANDSOCIAL PROTECTION.........................................................58 Chapter V....................................................................... ..............................................................................61 Roadmap for Accelerated Poverty Reduction.............................................................................61 5.AOUTLINING THEPOVERTY REDUCTION STRATEGY........................................................ 61 PARTA : STRATEGIC BLOCKS........................................................................................................... 61 5.B STRATEGIC BLOCK I: MACROECONOMIC ENVIRONMENT FOR PRO-POOR ECONOMIC 61 GROWTH............................................................................................................................. 5.B.1 Accelerating Growth for Poverty Reduction...................................................................... 61 5.B.2 Economic Growth, Investment and Savings...................................................................... 62 5.B.3 Private Sector Investment................................................................................................... 63 5.B.4 Promoting Foreign