Bangladesh Poverty

PracticalProjectDEZA
TermPaper
WhyisBangladeshsuccessfulinitsfightagainstpoverty?
Findingsandfurtherpotential
Authors
OliverClarke
BeatriceFssler
RaphaelaKfeler
FabiaMetzger
Supervisors
Dr.UrsHeierliUniversityofSt.Gallen
Dr.JacquelineSchmidDEZA
May2012
SchoolofEconomicsandPoliticalSciences(SEPSHSG)
ExecutiveSummary
ThepresentstudyaddressestheprogressmadeintheareaofpovertyalleviationinBangladesh
andanalyzesthereasonsforthesuccess.Inordertobettercapturethecomplexityofthisprocess,
we have developed a theoretical model. This assesses poverty not only by means of monetary
indicators,butalsowithlesstangiblenonmonetaryandalternativeindicators.Thispaperdiscusses
poverty alleviation in the case of Bangladesh in three different thematic sections: Politics, Society
andIdentity;Economy;SanitationandEducation.
First we shall look at Politics, Society and Identity, an area which is hard to measure with
indicators,butiscriticaltopovertyalleviation.GovernmentsinBangladeshhaveconsistentlyfocused
on poverty alleviation as one of their main policy fields. More importantly, the unstablestability
created by the conflict between the Awami League (AL) and the Bangladesh National Party (BNP)
combined with the focus on antipoverty policies has created an environment in which the private
sectorhasbeenabletoexpandandcivilsociety,especiallyNGOs,havesteppedintofulfilldutiesthe
government was unable to. Further, the change in the role of women was identified as another
essential factor. By mobilizing the females in society, much progress was made in the areas of
hygiene, contraception and infant mortality, which has done much to reduce the birth rate and
thereforetackletheproblemofoverpopulation.Theeconomicindependenceofwomenhasfurther
helped to increase education for children. Womens participation in the workforce has greatly
increasedtheeconomicstrengthofthecountry.TheintrinsicmotivationoftheBangladeshipeople
toprevailagainstalldifficultieswasfurtheridentifiedasanimportantfactorofsuccess.
Secondly,stableeconomicgrowthinallsectorsofGDPduetoincreasedproductivityhasfavored
thepoorby generating employment.A boost in exportsisfavorabletodomesticeconomicactivity
andemploymentgeneration.Thereforethegarmentindustry,accountingfor70%ofexports,playsa
big role in poverty reduction. Further areas such as ship building, ship breaking and construction
have created a considerable amount of jobs, providing the poor with income opportunities.
Moreover, rural development is due a key factor for poverty alleviation, due to the size of the
agriculturesector.Thankstoproductivitygains,theshareofselfconsumptionhasdeclinedandself
sufficiency is nearly achieved. Growth of the rural nonfarm sector has also generated employment
andleadtoanincomeincreasesintheagriculturesector.Thus,thedecreaseoffaminevulnerability
combinedwiththeemploymentgeneratedinthenonfarmsector,havesignificantlycontributedto
povertyalleviationinruralareas.Lastbutnotleast,remittanceshaveadditionallyincreasedoverall
income.
The third thematic chapter identifies considerable improvements in sanitation and education.
Practices such as the CommunityLed total Sanitation (CLTS) program, successful NGO projects and
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localfocushaveledtoprogressinwatersupplyandsanitation.Ineducation,primaryandsecondary
school enrollment, among other indicators, has significantly increased. The governments efforts in
thelatterfieldplayanimportantroleinthisprogress,asdoesthecontributionofNGOs.
However, we also identified some prevailing challenges Bangladesh must face. First of all
Corruption, political repression and Human Rights abuses are still an often reported problem. In
addition, infrastructure supply has to keep up with both substantial population and economic
growth. Industry diversification is also a primary goal to be addressed. Moreover it must be taken
into consideration that many of Bangladeshs comparative advantages are based on poor working
conditionsandlowwages.Besidesthechallengeofprovidingaccesstowater,thereisalsoaneedto
focusmoreonitsquality.Sanitationstilloffersalotmorepotentialwithspecialregardtopopulation
density.Alsointhefieldofeducation,notonlymustaccessbeimprovedbutalsoqualityinsured.
To conclude it can be stated that Bangladesh does show unique progress in poverty alleviation.
Despite being confronted with many challenges, the Bangladeshi seem to have tackled the task of
development in an impressive manner. The particular interplay of factors such as civil society
empowerment, economic growth and improvements in the fields of sanitation and education has
beenidentifiedasthekeytosuccessfulpovertyalleviationinBangladesh.
Index
ExecutiveSummary............................................................................................................2
Index..................................................................................................................................4
TableofFigures..................................................................................................................6
ListofAbbreviations..........................................................................................................7
1. Introduction................................................................................................................8
2. Measurabilityandindicatorsofpovertyalleviation.....................................................9
2.1. Definitionofpoverty................................................................................................................9
2.2. Terminologyofpovertyalleviation........................................................................................10
2.2.1. Objectiveversussubjectivepoverty...............................................................................10
2.2.2. Transitorypovertyversusstructuralpoverty.................................................................10
2.2.3. Absolutepovertyversusrelativepoverty......................................................................10
2.2.4. Combatedpovertyversushiddenpoverty.....................................................................11
2.2.5. Conclusionoftheterminologyofpoverty......................................................................11
2.3. Measurementandindicatorsofpovertyalleviation..............................................................11
2.3.1. Monetaryindicators.......................................................................................................11
2.3.2. Extensionbyclassicalnonmonetaryindicators............................................................13
2.3.3. Extensionwithalternativeindicators.............................................................................14
3. ThecaseBangladeshfindingsandreasonsforitsprogress......................................16
3.1. Politics,societyandidentity..................................................................................................17
3.1.1. Findingsforprogress......................................................................................................17
3.1.1.1. Politicallandscape..................................................................................................17
3.1.1.2. Civilsociety.............................................................................................................19
3.1.1.3. Genderequalityandempowermentofwomen.....................................................20
3.1.1.4. Religion...................................................................................................................21
3.1.2. Reasonsforprogress......................................................................................................22
3.2. Economy................................................................................................................................23
3.2.1.1. SectorialcontributiontoGDP.................................................................................23
3.2.1.2. Industry...................................................................................................................24
3.2.1.3. Agriculture..............................................................................................................27
3.2.1.4. Remittances............................................................................................................28
3.2.1.5. Microfinance...........................................................................................................28
3.2.2. Reasonsforprogress......................................................................................................29
3.2.2.1. Economicgrowth....................................................................................................29
3.3. WatersupplyandSanitation..................................................................................................31
3.3.1.1. IncreasesinWSS.....................................................................................................31
3.3.1.2. Highnumberofwellsforwateraccess...................................................................32
3.3.1.3. ProgressforMDG(sanitation)................................................................................32
3.3.1.4. ReductionofIMR....................................................................................................32
3.3.2. Reasonforprogress........................................................................................................33
3.3.2.1. CommunityLedtotalSanitation.............................................................................33
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3.3.2.2. Successfulprojects..................................................................................................34
3.3.2.3. Localfocus..............................................................................................................34
3.4. Education...............................................................................................................................35
3.4.1.1. Increasedprimaryandsecondaryschoolenrollment.............................................35
3.4.1.2. Highsubsidizededucationalsystem.......................................................................35
3.4.1.3. ConformitywithMDG(education).........................................................................35
3.4.1.4. Increaseinenrollmentofgirls................................................................................35
3.4.2. Reasonforprogress........................................................................................................36
3.4.2.1. Nationalprojectsandobjectives............................................................................36
3.4.2.2. Internationaleducationsupport.............................................................................36
3.4.2.3. NGOrunnonformalschools..................................................................................36
4. Developmentpotential.............................................................................................37
4.1. Challengesforpolitics,cultureandidentity..........................................................................37
4.1.1. Corruption......................................................................................................................37
4.1.2. Humanrightsabusesandpoliticalrepression...............................................................37
4.1.3. Domesticviolence..........................................................................................................38
4.2. Economicchallenges..............................................................................................................38
4.3. ChallengesforWatersupplyandSanitation..........................................................................39
4.4. ChallengesforEducation.......................................................................................................39
5. Conclusion.................................................................................................................40
Bibliography.....................................................................................................................41
TableofFigures
Figure1:GDPGrowth(%).Source:BangladeshBureauofStatistics,2012..........................................23
Figure2:MDGSanitationachievementinBangladesh.Source,WSSCC,2012.....................................32
Figure3:MostimportantprogressesinWSSinBangladesh.Sourceownillustration,datesource:
UNICEF,2012................................................................................................................................33
ListofAbbreviations
ADB
AsianDevelopmentBank
BRAC
BangladeshRuralAdvancementCommittee
CIDA
CanadianInternationalDevelopmentAgency
CLTS
CommunityLedtotalSanitation
DEZA
DirektionfrEntwicklungundZusammenarbeit
etc.
Etcetera
EHC
EssentialHealthCare
FDI
ForeignDirectInvestment
FSSAP
BangladeshFemaleSecondarySchoolAssistanceProgram
HIES
HouseholdIncomeandExpenditureSurvey
GB
GrameenBank
GDP
GrossDomesticProduct
GoB
GovernmentofBangladesh
IDA
InternationalDevelopmentAssociation
SHEWB
Sanitation,HygieneEducationandWaterSupplyinBangladesh
million
MDG
MillenniumDevelopmentGoals
NGO
NonGovernmentalOrganization
OTEP
OralTherapyExtensionProgram
UN
UnitedNations
UNDP
UnitedNationsDevelopmentProgramme
UNICEF
UnitedNationsChildrensFund
WB
TheWorldBank
WSS
watersupplyandsanitation
1. Introduction
Despitebeingdescribedasabasketcaseinthe1970s,Bangladeshhassinceachievedtheposition
ofarolemodelformanyotherdevelopingcountries.DoraRapold,ambassadorandcoordinatorof
theDEZAinDhakastatesthatnoothercountryhasdevelopedsomucheconomicallyandsociallyin
thelast30years.Bangladeshnowadaysprovidesfoodforitspopulationonitsownapopulation
which has doubled in that time. How does a country with so many challenges manage to reduce
povertydespiteagrowingpopulation?(DEZA,2006)
Thepresentpaperspurposeistodeterminewhichfactorshaveplayedamajorroleinthefight
against poverty in Bangladesh. If the findings of the paper support the thesis that Bangladesh has
indeedachievedsubstantialprogressinpovertyalleviationdespitefacingdemandingchallengessuch
asahighpopulationgrowth,climatecatastrophesandashortageofnaturalresources,thesecould
beappliedtoothercountriesfacingsimilarconditions.
Thepaperisstructuredintothreemajorsections.Inafirststep,theterminologyandmeaningof
povertywillbeanalyzedinordertofindacommondefinitionofthephenomenaaddressed.Based
on this, an overview of the main concepts of poverty will be given as preparation for further
research. As a last step of the theoretical part, the current literature on poverty alleviation will be
discussed in order to define the major measures and indicators of poverty. The goal of the
theoretical part is on the one hand to provide a common fundament on which the case of
Bangladeshcanbediscussedandontheotherhandtodevelopacoherentandsuitablemodelthat
canbeappliedtothefieldofresearch.
The following chapters then focus on the case of Bangladesh. First, the different aspects of its
politics, society and identity will beexamined and the reason for success in these fields evaluated.
Thesecondsectionthencommitsitselftotheindustrialandagriculturalperspective,beforeinathird
section sanitation and education are evaluated. After each segment, we will review the essential
findingsanddrawpreliminaryconclusions.
In a last step the analyzed indicators will be criticized and further development potential
identified.LastbutnotleastwewillsumupthefindingsandconcludewhetherBangladeshcanbe
seenasarolemodelintermsofdevelopmentachievementsandifsowhichfactorscontributedmost
tosuccessfulprogressinpovertyalleviation.
2. Measurabilityandindicatorsofpovertyalleviation
Povertyhasbeenanissuefacedthroughouthumanhistorybutitsperceptionhaschangedover
time.Whereaspovertywaslongregardedasaninevitableaspectofsocietyandthereforeaccepted,
ithasbecomeamajorpreoccupationofhumanbeings(RioGroup,2006,p.17).Althoughitisnot
accepted as a given anymore, the problem is not solved yet. On the contrary: In 2010, about one
thirdoftheworldspopulationwasstilllivinginextremepoverty(UnitedNations,2010).TheUnited
Nations (UN) has determined poverty reduction as their number one goal in the United Nations
MillenniumDevelopmentGoals(MDGs)andstrivestohalveabsolutepovertybytheyear2015.
One of the main obstacles that reduce the effectiveness of poverty alleviation is the lack of a
universallyaccepteddefinitionofpoverty.Alivelyacademicdebateisongoingaboutwhatpovertyis,
how it can be measured and finally how this phenomenon and its consequences can be reduced.
However,howonedefinesordescribesithassignificantconsequencesforanypotentialsolution
(Werhane, Kelley, Hartman, & Moberg, 2009). The following chapter will cover this matter and
contribute to the clarification of the definition of poverty based on the present poverty alleviation
literature. In a second step these findings will be applied in order to define a reasonable set of
indicators for measuring poverty. These indicators will then be analyzed and future development
potentialidentifiedinthefollowingchapters.
2.1. Definitionofpoverty
Thedefinitionspectrumofpovertyisvast.However,alldefinitionsstatethatthecontestedand
multidimensional term poverty contains more than just monetary aspects. The difficulty lies in
finding a definition that is broad enough but at the same time still operable. The Canadian
InternationalDevelopmentAgency(CIDA)forexampledefinespovertythus:Povertyisdeprivation
and powerlessness. It is the lack of sufficient assets and income to satisfy basic human needs for
food, water, shelter and clothing. It is the lack of education, skills or tools to acquire income or
assets.Anditisthelackofabilityorpowertochangethesituation(GoetheUniversity,1995).This
definitionmanagestoincludeasmanyaspectsofpovertyaspossiblewithoutlosingapplicabilityand
practicability.
The next chapter will in a first step introduce the basic concepts of poverty. To reduce the
complexityandtoincreasethecomparability,inasecondstep,differentapproachesformeasuring
poverty will be researched in order to create a suitable model for analyzing the case of poverty
alleviation in Bangladesh. Nevertheless it should be mentioned at this stage that the results of the
analysescanonlyberegardedaspartiallyreliable.Thereasonisthatevenifacommondefinitionof
poverty could be established, there is a low degree of comparability over time and between
countries due to for example different income definitions (gross income, net income, expenditure)
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and units (person, household, household per capita). To minimize these errors of measurement,
indicatorsshouldbechosenpreciselyandconsistentlyovertimeanddifferentareas.
2.2. Terminologyofpovertyalleviation
Poverty is not a precise term but comprises many different subcategories. So before trying to
conceptualizeandmeasurethemultidimensionalphenomenonofpoverty,acleardistinctionofthe
notion has to be established. The following chapter will cover a selection of the most important
categoriesofpovertyandwillpointouttheirsimilaritiesanddifferences.
2.2.1. Objectiveversussubjectivepoverty
Objectivepovertyoccurswhenapersonslifestandardfallsbelowadefinedlimit.Thiscaneither
berelatedtoacertainincomelimitortothelackofsatisfactionofbasicneeds(food,water,medical
careetc.).Suchconcepts,oftenreferredtoasthebreadline,havetobedefinedonacountrybasis
sincepurchasingpowervariesbetweencountries.Onthecontrarysubjectivepovertyarisesfromthe
comparisonwithareferencegroup.Itdescribestheindividualsensationofbeingpoorincontrastto
othersinthisreferencegroup.Anexamplewouldbeaworkingclassfamilylivinginanupperclass
area.(Ravallion,2003)
2.2.2. Transitorypovertyversusstructuralpoverty
Poverty has different dimensions in terms of duration since it can be either a permanent or a
temporaryphenomenon.Transitorypovertyontheonehandisashorttermconditionwhichwillbe
resolvedforthepersonconcernedafteracertaintime.Thiskindofpovertyarisesineitheracyclical
(harvest season, seasonal unemployment e.g. according to the tourist season etc.) or an acyclical
manner (change in economy, the working poor etc.). On the other hand people who suffer from
structural poverty have little chance of overcoming their exclusion from society since they often
belong to a fringe group. Thus the latter group is typically in need of external help to solve their
povertyproblem.(Willke,2011)
2.2.3. Absolutepovertyversusrelativepoverty
Absolute poverty correlates with the level of income and the level of expenditure under which
basic needs can no longer be supplied. The World Bank for example established 1.25$ income per
day as the absolute poverty borderline. The International Development Association (IDA) on the
otherhandestablishedacertainpercapitaincome,calorieingestion,lifespanandinfantmortality
and birth rate as reference indicators for absolute poverty. In contrast, relative poverty compares
living conditions with the respective social and sociogeographic environment of a human being.
Thuspovertyisforexamplerelatedtothemediannetequivalentincomeandtakesintoaccountthe
complexityofdistribution.Thisincludessocioculturaldepletionasatokenofrelativepovertydueto
10
a lack of participation in social activities. The terms of absolute and relative poverty both reveal
inaccuracies.Whiletheformerfacestheproblemofnotconsideringthelivingconditions,thelatter
termdoesnottakeinaccounttheactualstandardofliving.(Ravallion,1994)
2.2.4. Combatedpovertyversushiddenpoverty
Combated poverty is statistically documented whereas hidden poverty often consists of a huge
number of unreported cases. Combated poverty is mainly observed in western civilizations where
countermeasurestoreducepovertyarepresent.Incontrarypeoplelivinginhiddenpovertyareoften
hindered from accepting help because of their shame. Of course intransparency due to a lack of
statistical data on the population, as is the case in for instance shanty towns, contributes to an
increased number of unreported cases. Last but not least some governments are not interested in
disclosing actual poverty data in order to protect their image and prevent pressure from
internationalorganizations.(Willke,2011)
2.2.5. Conclusionoftheterminologyofpoverty
The terminology of poverty and poverty alleviation is elusive. There is a huge variety of terms
correlatingtopovertyanditisimportanttofirstclarifytheseterms,indicatorsandmeasures.Onlyif
all parties agree on a certain terminology misunderstandings can be prevented and effective
measures can be introduced. Therefore the next chapter will try to determine clear indicators in
ordertoallowaneffectiveandcoherentresearchinthefollowingchapters.
2.3. Measurementandindicatorsofpovertyalleviation
After defining the different terms and aspects of poverty, indicators for measuring this
phenomenonshallbeaddressed.Ithastobestatedthatneithertheselectionoftheindicatorsnor
thedeterminationofthepovertyborderlinesarefullyobjectivebutrathernormative.Theindicators
notonlydepicteconomicrelationsbutarecloselyinterlinkedwithsocial,moral,ethicalandpolitical
questions. The assortment of indicators that will be discussed in this chapter is based on the most
current research and literature and the goal is to create an appropriate, comprehensive but still
adaptablemodelforfurtherapplicationinthispaper.
2.3.1. Monetaryindicators
Themostpopularandconventionalwayofmeasuringpovertyaremonetaryindicators.Thereisa
wide range of different key figures that exist. Three of them will be introduced according to their
depthofanalyses.
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a) Incomeperspective
Oneofthemostisolatedwaysofmeasuringpovertyistheincomeperspective.TheWorldBank
defined 1.25$ (PPP) per day as a reference for absolute poverty. This measurement on one hand
simplifiesacomplexissuebutontheotherhanddisregardsthedifferentstandardsoflivingatthis
rate according to local circumstances, as mentioned before. A little more differentiated is the
European Unions definition of 60 percent of the median of the net equivalent income as the
breadline.Throughthisstrategy,thekeyfigureisabletoavoidbiasesoftheresultsduetooutliers.
(GoetheUniversity,2005)
b) Perspectiveofincomeandwealthdispersion
The perspective of dispersion does not end the analyses at rating income and wealth but also
investigatesitsdistribution.OneofthemostfamouskeyfigurescombiningtheseaspectsistheGini
Coefficient
.Theresultslieinarangebetween0(entirelyequaldistribution)and1(complete
maldistribution).WhiledevelopedEuropeancountriestypicallyshowaGiniIndexof0.25to0.35,the
US shows an index above 0.40 and the worlds estimated index lies even higher at around 0.60.
Although the Gini Index allows for the quantification of differences in welfare policies it has to be
takenintoconsiderationthatthecomparisonbetweenlargeandsmallcountriescanbemisleading.
(Debraj,1998)
c) AdditiveCoefficients
AmongthemonetaryindicatorstheFosterGreerThorbeckekeyfigure
offers
one of the most integrated metrics. This indicator includes various aspects of poverty such as the
extent(headcountratio),theintensity(totalpovertygap)aswellasthemaldistribution(GiniIndex).
Theadvantageofthismeasureisthatalthoughincludingonlymonetaryinformation,itaimstoalso
take into account how severe the injustice of distribution is. For this reason the FosterGreer
Thorbecke metric will be favored among the solely monetary key figures in the present paper.
Although on one hand the criticism of this metric is that the distribution among the poor is not
included,ontheotherhandkeyfigureswithanevengreaterextenttendtolosetheirapplicability.
(GoetheUniversity,1995)
d) Conclusionofmonetaryindicators
Although a wide range of monetary indicators exist, they can be regarded as imperfect for the
present purpose of analyzing poverty alleviation in Bangladesh. Firstly because errors in
measurementoccur,secondlymisinterpretationstendtohappenandlastbutnotleastadegreeof
onesidedness can be observed. For these reasons the metrics have to be expanded in the next
chapter.
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2.3.2. Extensionbyclassicalnonmonetaryindicators
The monetary indicators addressed shall now be extended by wellestablished nonmonetary
metricsinordertogetamorebalancedresultoftheanalyses.Thisisregardedasimportantbythe
World Bank or the European Union since it cannot be assured that a reduction of income poverty
necessarily also improves the nonmonetary dimensions of poverty (for example because the
requiredmarketdoesnotexist).
a) Crimeandcorruption
Crime and corruption have a big influence on a countries development. As long as corruption
occurs,governmentmeasuresandforeigndevelopmentaidwillnotbeeffective.Also,ifpeopledo
notfeelsafe,theytendnottotrustofficialinstitutionsandprocedures.Forexamplesavingmoneyin
a bank is then regarded as unsafe which brings less money into circulation and allows illegal
businessesandlabortoflourish,whichleadstolittleprotectionfromexploitation.(Jansen&Birger,
2005)
b) Economyandinfrastructure
Some of the nonmonetary factors that add a lot of value to society are economic growth and
infrastructure conditions. Both of them are closely interlinked since economic growth attracts
companies which are likely to invest in infrastructure or put pressure on governments in order to
facilitate their business. The other way around an improvement of the local infrastructure often
reduces the barriers for a prosperous economy. If both economic growth and infrastructure are
provided,themobilityofpeoplecanbeincreasedandunemploymentreduced.(Kraay,2003)
c) Lifespan,birthrate,infantmortalityandpopulationgrowth
Life span, birth rate, infant mortality and population growth are closely connected. If infant
mortalitycanbedecreased,thebirthratecanbereduced,whichconsequentlyleadstoaslowdown
ofpopulationgrowth.Inmanypoorcountrieschildrenrepresenttheretirementprovisionformany
families.Ifmorechildrenreachadulthood,fewerchildrenhavetobeborn.Havingsmallerfamilies
canimprovethefinancialsituationwhichresultse.g.inlesshunger,betterhealthcareandtherefore
alongerexpectedlifespan.(Debray,1998)
d) Healthandnutrition
Hungerisoneofthemostobvioustokensofpovertyandisthereforeoftenusedbycharitiesfor
fundraising. But also malnutrition in terms of unbalanced and unhealthy eating habits is a very
common problem of the poor. Fresh vegetables and fruit are often more expensive than fast food
whichleadstooverweightandillnessessuchasdiabetes.(Fields,2001)
13
e) Educationandunemployment
Education is important in at least two dimensions. It opens up job opportunities with better
salaries and women with higher education tend to have less children and in a later stage of their
lives. This is directly linked to lower population growth as well as to a higher budget at families
disposal.(Fields,2001)
f)
Conclusionofclassicalnonmonetaryindicators
Although the model for measuring poverty became more balanced through the inclusion of the
classical nonmonetary indicators it still seems insufficient for the present case of Bangladesh.
Especiallyinordertodiscoverslightdifferencesbetweenthirdworldcountriestheincorporationof
additionalindicatorsneedstobeexamined.
2.3.3. Extensionwithalternativeindicators
The monetary and classical nonmonetary metrics shall now be extended by less popular non
monetaryindicators.Thisenablesthefurtherresearchofthispapertoidentifycertainadvantagesor
disadvantages in the fight against poverty of Bangladesh in comparison to other countries facing
similarsituations.
a) Constructionsector
The dynamics within the construction sector provide a lot of information about the health of a
society.Ontheonehand,theconstructionsectoroffersalotofjobsformanydifferentprofessions
especiallyforuneducatedpeople.Ontheotherhand,newconstructionssignalanadvancementof
theeconomyandinfrastructure.Itisalsoasignalforahigherincomeleadingtotheneedforhousing
whichdisburdensslums.(Heierli,2012)
b) Smallscaleenterprisesceneandmicrocredits
Microloansespeciallytowomenwereprovedtohaveahugeimpactonpovertyalleviation.
Thelackofaccesstothefinancialsystemisasevereproblemandhindersmanypoorpeoplefrom
disburdening themselves from poverty and helplessness. To be able to establish a small scale
businesscaneffectivelysupportawholevillageandduetothesystemofsharingrisks,thereciprocal
responsibilitycanbeimproved.(Spiegel,2006)
c) Sanitation
Sanitationasanimportantpartofeducationhasgreatinfluenceonforexamplethementioned
infantmortalitywhichisinterlinkedwithpopulationgrowth.Alsothespreadofmanyillnessescanbe
avoidedandtheawarenessoflifequalityintroduced.(Heierli,2012)
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d) Genderequality
The status of gender equality offers a lot of information about a societies development status.
Many patriarchal societies suffer under their exclusion of women from positions of power and the
workforce,sinceitisproventhatwomenforexamplearebetterathandlingmoney.(Ravallion,2003)
e) Identity,empowerment,solidarity,selfresponsibilityandgovernment
A lot of former colonial countries suffer from a lack of identity. Managing the balance between
tradition and the modern age is a major task in order to shoulder the responsibility for ones own
situationanddevelopment.Empowermentplaysamajorroleinpovertyalleviation.(Werhaneet.al.,
2009)
f)
Informationandmedia
The access to information is very important since it for example prevents exploitation, because
evenremotefarmersknowtheactualmarketpricesoftheirgoods.Themediacanalsoextractsome
degree of counterweight towards political power. Finally, the absence of censorship and the
possibilitytovoiceonesfreeopinionisanimportantmetricofasocietiesdevelopment.(RioGroup,
2006)
g) Conclusionofmeasurementandindicatorsofpovertyalleviation
The integrated consideration of monetary, classical nonmonetary and alternative indicators
offersabalancedmodeltoanalyzeBangladeshspovertyalleviation.Thefollowingchapterswillnow
build on this basis to get an objective picture of Bangladeshs efforts on poverty alleviation.
Neverthelessitshouldbestatedthatpovertyresearchoftenfacespooraccesstoreliabledataand
the problematic is that important statistics and databases often require a fee to access the
information(GoetheUniversity,1995).
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3. ThecaseBangladeshfindingsandreasonsforitsprogress
Following, Bangladeshs development will be approached through multiple indicators based on
the previous chapter that analyze progress. First, the area of politics, society and identity will be
examinedtounderstandthecurrentsituationandBangladeshsrecenthistoricbackground.Thenthe
economic situation will be analyzed to show the dynamics within the different sectors and other
economicfactors.FurtheranassessmentofWatersupplyandSanitationwillshowwhatBangladesh
has reached so far. Finally, the area of Education, which is another very important field for
development, will be examined in order to provide information about current tendencies for
Bangladeshsfuture.Thethematicareasandindicatorschosenwereidentifiedasveryimportantfor
thefightagainstpovertyintheparticularcaseofBangladesh.Thisselectionwasfurtherconfirmedby
expertswithanindepthknowledgeofthecountry.Eveniftheyhadtobesplitformethodological
reasons,theyremainhighlyinterconnected.
Findings in these areas show Bangladeshs current situation in regard to progresses made. In a
secondstepthereasonsforthisprogressisexaminedtoprovideaplatformforfurtherdevelopment,
especiallyforfurtherstrategiesforthefightagainstpoverty.
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3.1. Politics,societyandidentity
Themosturgentneedinourcountryisnottoplacebeggingbowlsattheirhands,buttomake
themconfidentoftheirownpower,tomakethemrealizethatamanunitedwithothersisacomplete
entity,whereasanalienatedindividualisbutapowerlessfragment
RabindranathTagore
Successfullyfightingpovertymeanshelpingpeopletoachieveapositionwheretheyarecapable
of helping themselves. This means empowering the people. For this paper, we will define
empowermentasfollows(Dietzel,2011):
Increasingeconomicindependence
Improvingaccesstoinformation
Ensuringparticipationinthepoliticalprocess
Strengtheningcivilsocietyandorganizations
Therearemanyfactors,whichcontributetothesefactors.Thischapterwilllookatthecultural,social
andpoliticalframeworkinBangladeshandseektodetermineaspectsthathavehadapositiveeffect
on empowerment and the fight against poverty. It will further attempt to identify particularities in
the Bangladeshi identity, which have allowed the country to make significant progress under very
difficultcircumstancesandagainsttheexpectationsandpredictionsoftheinternationalcommunity.
3.1.1. Findingsforprogress
We shall now look more specifically at the political landscape, civil society, gender equality and
religioninBangladeshanddetermineareaswhereprogresshasbeenmade,beforeinthenextstep
analyzingthereasonsforthisprogress.
3.1.1.1. Politicallandscape
A stable political landscape and wellfunctioning institutions are essential in contributing to the
empowerment of the Bangladeshi people, by providing a solid legal framework for economic
development and employment, assuring a free press and providing important information,
protectingandallowingcivilsocietytoevolveandmostdirectlyensuringfreeandequalopportunity
for political participation. Bangladeshs politics are dominated by the struggle between the Awami
League (AL), led by Sheikh Hasina, daughter of the assassinated hero of the revolution Sheikh
Mujibur Rahman, and the Bangladesh National Party (BNP), led by Khaleda Zia, widow of the
assassinated former president Ziaur Rahman. This two party system is in many ways an ongoing
vendettabetweenthetwofamilies(Economistb,2011a).
After a phase under a caretaker government, the elections in 2008 looked like they could be a
pivotalpointforthecountry.Propelledbyawaveofnationaloptimism,theALunderSheikhHasina
17
won a landslide victory in what have been described as the fairest elections in the countries short
history. Hopes were therefor high, that the League would use its power to strengthen democratic
institutions, fight corruption and especially pursue national reconciliation, putting an end to the
destructive cycle of winnertakesall politics between itself and its longstanding rival the BNP
(Economist, 2011b). However, these hopes have been sourly disappointed. The hopes that the
government elected in 2008 would bring the promised change to the political system were soon
reducedgreatly.Insteadofreachingout,SheikhHasinaseemstobefollowingastrategyofcrushing
the opposition and possibly forcing them to boycott the next elections, by for instance filing
corruptionchargesagainsthernemesisKhaledaZiaandmembersofherfamily.Mostworryingwas
maybe the hasty scrapping of a constitutional provision for a caretaker administration to run
elections, a provision notably insisted upon by Sheikh Hasina during her time in opposition. These
developmentsdonotbodewellfortheElectionsin2013(Economistb,2011a).
Despitetheseproblemsinthepoliticalestablishment,thetworivalpartieshaveatleastinsome
waysheldeachotherincheckpreventingtheestablishmentofanautocraticregime.Thishascreated
abipolarinstablestabilitywhichhasatleastallowedtheprivatesectorandcivilsocietytogrow.
Onpovertythegovernmentcaninallpresentarelativelygoodtrackrecord,asfightingpovertyhas
long been a central policy goal of the Bangladeshi government. In all five year plans considerable
emphasishasalwaysbeenplacedonalleviatingpovertywithprogramstoimprovetheruralpoors
access to production means, develop agriculture and expand infrastructure, and further focus on
programstoimprovedrainage,floodcontrol,educationandgenerateemployment(Abu&Rahman,
2007).Thisconstantfocusonpovertyalleviationshowsthedeterminationofthepoliticalleaderson
allsides,toachievetheMDGsfortheircountryandimprovethesituationofthepoor.However,as
weshallsee,duemanyshortcomingsinthepoliticalsystem,manyprogramshaveperformedbelow
expectations.Thegovernmenthasoftenfailedtoexpandtheprogramsfarenoughtocoverthemost
poor.Ithasbeenfurtherbeencriticizedforfollowingaprogramofreliefratherthandevelopment,
whichis seen as an unsustainableapproach.Thismaybeaccountedtothelackofskill and human
resources available to the government (Abu & Rahman, 2007). Therefore much still remains to be
done,inordertoincreasetheefficiencyandeffectivenessofsuchprogramsandensuresustainable
results.Theunstablegovernmentaccordinglyalsohasnegativeinfluencesongovernmentprograms.
Bangladesh comes in at rank 120 on Transparency Internationals Corruption Perception Index

(TransparencyInternational,2011),whichisasignificantimprovementinashortperiodfrom147in
2008.Thisshowsthatthenewgovernmentvowtotacklecorruptiononalllevelshasatleastshown
some shortterm improvements. However, Bangladesh still remains one of the most corrupt
countriesintheworldandsofareachnewgovernmenthasaccuseditspredecessorsofcorruption
and has vowed to change the situation, only to itself again be accused of corruption after ceding
18
power (Zafarullah & Noore, 2001). Therefore it is still too early to say, whether this trend will
continue.
3.1.1.2. Civilsociety
Civil Society is a complex ever changing system of organizations such as NGOs, community,
academicandreligiousorganizationstonamebutafew.Civilsocietyhasbeenseenascontributing
tothecommunityscapacitytoparticipateinandbenefitfromdevelopmentactivities.Astrongcivil
society has further been identified by as a crucial prerequisite for democracy (Rahman, Waded &
Eusuf2000).Bangladeshhasaverydiversecivilsocietythatfulfillsawiderangeofservices,including
areasthatshouldbecoveredbythegovernmentsuchaseducation,sanitationandhealth.Weshall
firstfocusontheNGOs,andthenlookatsomeoftheyoungemergingactorssuchaslaborunions
andwelleducatedstudents.
a) NGOsinBangladesh
Few countries have as many NGOs as Bangladesh. There are over 26000 officially registered
NGOsinBangladesh(Lam,2006).Thisfactcanbetracedbacktothebeginningsofthecountry;after
the liberation war the countries resources were depleted, leaving the country dependent on
international aid for their food supply. During the 70s the countries disastrous economic situation
continuedtoattractforeignaidandhasfurthercontinuedtodosountilthepresentday,especially
NGOs.Inaddition to foreignNGOs, manyBangladeshiNGOshavenemergedandgrownovertime,
gaining knowhow and support from the international NGOs and profiting from their closeness to
societyanddeeperculturalunderstandingtoaddressimportantissueseffectively.NGOshavebeen
rightly credited with major achievements in improving the welfare of the poor (Rahman, 2006).
NotablytheGrameenBank(GB)pioneeredthesystemofmicrocredits(Wahid2006),whichhashad
a profound impact especially on the empowerment of women and the strengthening of local
communitiesBangladesh(Chowdhury&Chowdhury,2011),whichwillbefurtherdiscussedlater.
The Bangladesh Rural Advancement Committee (BRAC), now the worlds largest NGO, has also
made significant contributions in the areas of education, health and sanitation, which have had a
strongeffectonreducinginfantmortalityandincreasingliteracyrates.Thesearebuttwoexamples
of many successful NGOs in Bangladesh that have managed to establish themselves. It is hard to
determine,whymanyoftheseprogramshavebeenparticularlysuccessfulinBangladeshcompared
to other countries, however the high number of NGOs indicates the special position they hold in
Bangladesh. Further, the wide range of topics covered by NGOs is special, where NGO have taken
over some government roles, in such areas as education. The high population density may have
contributedtothefastdisseminationofimportantinformationandmayhavemadethemanydoor
todoorprogramsmoreefficienttoconduct.
19
Also, much can be read about the intrinsic motivation of Bangladeshi people to get actively
involved, which would help to further explain the high number of NGOs. These two last points
remain assumptions, as no specific research has yet been conducted on the effect of population
density on development success and the intrinsic motivation and identity is extremely difficult to
showempirically.
b) Emergingcivilsociety
Ahigheverincreasingnumberofyoung,welleducatedpeopleareemerging.Thanksalsotomany
education programs such as the BRAC University. These young people are getting involved in their
communitiesandpolitics.Theintroductionoffirstthevotingpassandsoonanationalidentitycard
has made it easier to partake in elections and the political process. Political empowerment is an
importantfactor,especiallyinthiscountrywhichhasaveryyoungpopulation,manyofwhomhave
hadenoughofthefeudbetweenthetwofamiliesandtheirobsessionwiththepastandinsteadwish
to focus on the future of their country (Economist, 2008). Labor unions have also slowly begun to
emergeoverthelastdecade,inordertoprotectandfurthertherightorworkers.Minimumwagesin
Bangladesh remain one of the lowest in the world, though the government at least raised the
minimumwagefrom1,200to2500Takain2010.Thisisatleastastartandanacknowledgmentof
certain rights for workers. However, this sum is still only half of what workers were aiming for.
Further important labor rights remain open, such as official union recognition and holiday time.
Local communities are essential in conducting programs, especially in rural areas. Many programs
such as microcredits, but also sanitation programs make the local communities work together to
achieve their goals. This strengthens the local communities, builds their confidence and also
empowerswomen.
3.1.1.3. Genderequalityandempowermentofwomen
An important area where much improvement can be seen in Bangladesh is the area of gender
equalityandempowermentofwomen.ThishashelpedtoshapetheidentityofBangladeshipeople
in general and especially of the female population. We shall see that this again has played an
importantroleintheprogressmadeagainstpoverty.Bangladeshisbuiltonaverypatriarchalsociety
with a purdah system where women are taught to stay at home, refrain from expressing their
opinions and seek permission from men regarding any financial or household decisions they take
(Chowdhury&Chowdhury).However,inrecentyearstheroleofwomenhaschangedsignificantly,
especiallyinruralareas.Therearemanyreasonsforthisevolution.Weshalllookatoneofthemain
factorswhichhaveledtothis,namelymicrofinance.
20
a) EmpowermentthroughMicrofinance
Sincetheinitiationofmicrofinanceinthe1970s,ithashelpedtoestablishanenvironmentthat
hasledtoanimprovementofthesocialandeconomicstatusofwomeninBangladesh.95%ofthe
microfinance credits that are given out for instance by the GB go to women borrowers, mainly
becausetheyaremorereliableanddonotspendthemoneyonalcoholorgambling,asisoftenthe
case with male borrowers (Chowdhury & Chowdhury). Therefore women have been specifically
targetedbysuchinstitutions.Thishashadthefollowingeffects.Firstlyithasgivenwomenacertain
degree of financial independence and making male family members reliant to a certain degree on
theirloans.Thisimprovesthestatusintheirfamiliesandtheirbargainingpower.Thiscanbeseenin
thefactthatwomenwhoreceivedaloanaremorelikelytosendtheirchildrentoschoolandarealso
more likely to work outside their household, which means that they are more likely to take
responsibilityfortheeconomicsituationofthefamilyandalsoareabletopersuadetheirextended
familyofthevalueofeducation(Chowdhury&Chowdhury).Secondly,thesystembywhichgroupsof
womenborrowmoneyhasledtowomengatheringtogether,givingthemasocialgroupoutsidetheir
own household. This has improved exchange on important topics such as hygiene, family planning
and contraception. Thirdly and possibly the most important fact, which is however also the most
difficulttomeasureempirically,istheeffectthishashadontheselfesteemofwomen.Theaccessto
moneyandtheireconomicparticipationcombinedwiththeincreasedrolewomenmaythusplayin
thedecisionmakingprocessmeansthatwomenarevaluedmorebytheirmalecounterparts,which
againincreasestheirsenseofselfvalue(Mahmud,Shah&Becker,2012).
3.1.1.4. Religion
Religion plays an important identification role in Bangladesh. Close to 90% of the population is
Muslims,withthesecondlargestreligiousaffiliationbeingHindu,withabout9%.Furtherminorities
include Christians and Buddhists. This distribution is visible in the form of Islam practiced in
Bangladesh,whichisinfluencedbytheHindutraditionandthereforehassomeparticularities,which
againstrengthenstheroleofReligioninidentification.Thoughoriginallyintendedasasecularstate,
amendments to the constitution in the time from 1977 to 1988 reinstated Islam as the official
religionofthecountryandacommitmenttotheIslamicwayoflife,thoughthecurrentmovementas
soughtwaystomoveawayfromthisdevelopmentbacktowardssecularpolitics(seeAFP,2010).The
constitution does, however, contain the right to practice the religion of ones choice, within the
confinesofthelawandmorality.
Religiousleadershaveastrongvoiceinlocalcommunitiesandarewidelyrespectedbythepeople
of Bangladesh. Making use of this strong influence is an important aspect of supporting efforts for
alleviating poverty. There have been moves in this direction, with such programs as Leaders of
21
influenceandtheImamTrainingAcademy,whichseektoeducatereligiousleadersontopicssuch
as sanitation, health, gender equality and education so that they can then carry the gained
knowledgeintothelocalcommunity(IslamicFoundation).Ithasalsobeenshown,thatwithoutthe
support of local religious leaders, many programs are unsuccessful. Therefore it is important to
continueandexpandsuchprograms.However,fundamentalistIslamicmovementssuchasthepose
a constant threat to the progress which has been made so far, especially on the issue of gender
equalityandeducationofgirlsandthereligiousfreedomofminorities.
3.1.2. Reasonsforprogress
Thoughitisdifficulttodetermineconcretereasonsintheareaofsociety,cultureandidentityfor
the progress Bangladesh has made in fighting poverty, as these aspects are strongly correlated to
each other and are further influenced by the other areas discussed in this paper, there are
nonetheless some particular aspects which provide some clues as to why this process has been
successfulbyempoweringtheBangladeshipeople.
First, though dominated by a poisonous conflict between the AL and BNP and riddled by
corruption, politics in Bangladesh have consistently focused on poverty alleviation as one of their
mainpolicyfields,andthoughfacedwithmanyproblems,thisfocusatleastshowsadetermination
in Bangladesh to reduce poverty. More importantly, the unstablestability created through has
created an environment, where the private sector and civil society have been able to expand. The
shortcomingsofthegovernmenthaveledcivilsocietyactors,especiallyNGOs,tostepinandfulfill
dutiesthegovernmentwasunableto.Furtherthecontinuingsupportthroughinternationalaidhas
allowed these NGOs to grow and acquire the necessary knowhow to conduct programs more
efficientlyandeffectivelythanthegovernment.
Secondly, the change in the role of women is another essential factor which has contributed
greatly to the progress made in fighting poverty. By mobilizing the females in the society, much
progresshasbeenmadeintheareasofhygiene,contraceptionandinfantmortalitywhichhasdone
muchtoimprovefamilyplanning,thusreducingthebirthrateandthereforetacklingtheproblemof
overpopulation (Chowdhury & Chowdhury). The economic independence of women has further
helpedtoincreaseeducationforchildren,anessentialaspectforthecontinuingprogressthroughout
future generations. Women participation in the workforce has greatly increased the economic
strength of the country, especially the textile industry which remains one of the leading economic
driversinBangladesh(thiswillbefurtherdiscussedinthechapteroneconomicdevelopment).
Finally,andmaybemostimportantlyandatthesametimethemostdifficulttomeasure,isthe
intrinsicmotivationoftheBangladeshipeopletoprevailagainstallharshoddsandadversities.
22
3.2. Economy
InBangladesh,therehavebeenmeasurableimprovementsinmonetaryindicatorsoverthepast
years.Forexample,theaveragemonthlyhouseholdincomereached11480Tk.in2010,comparedto
only7203Tk.in2005(WBG&BBS,2010).Further,asindicatedinthefirstchapter,itiscrucialtolook
at classical, nonmonetary indicators such as economic growth as well for the following reason:
Economicgrowthcancreateavirtuouscycleofpovertyreductionthroughemploymentgeneration
(Zaman, 2011). As we can see in the figure below Bangladesh has registered a positive GDP real
growth rate over the past years and which has further increased since 2009. In 2011 the economy
grewatarateof6.7%.
Figure1:GDPGrowth(%)
Source:BangladeshBureauofStatistics,2012
Inthefollowingsectionwewillanalyzethefactorswhichleadtogrowthanddiscusswhetheritis
sustainable and in favor of the poor or not. For this purpose we intend to additionally develop
alternativeindicatorssuchasthedynamicsinthedifferentsectorswhichcomposeGDP,theroleof
remittancesandtheimpactofmicrocreditsonpovertyalleviation.
Inordertoexplainthemostimportantdevelopmentsthathaveoccurredinthedifferentsectors
whichgenerateemployment,wewillanalyzethecontributionofthemajorsectorstoGDPaswellas
thelabormarketsegmentation.
3.2.1.1. SectorialcontributiontoGDP
Theindustrysectoraccountedfor28.6%ofGDPin2011(CIA,2011)andwithastrongreboundin
exportsandariseindomesticdemanditsgrowthpickedupfrom6.5%in2010to8.2%in2011(ADB,
2011). Compared to 2007 where it accounted for 20.6% of GDP, the industry sector has gained a
considerableshareoftotalGDP.In2007only11%ofthelaborforcewasemployedintheindustry
sector (CIA World Factbook 2007 cit. in Eurasia Center). In contrast, most recent data in the CIA
WorldFactbookshowsthatatleast30%ofthetotallaborforcefindsoccupationinthissector.
23
Theagriculturesectoremployed63%oflaborforcein2007comparedto45%to50%in2010(CIA,
2011). This drop was compensated by the rise in the industry sector. Share of GDP recorded a
relativelymoderatedecreasefrom19.9%in2007to18.6%in2011.Itisremarkablethatdespiteless
human capital, the output growth rate of the agriculture sector is at 5% and the share of GDP
decreased.Thisfactclearlyindicatessignificantproductivitygainsinagriculturesectoractivitiesand
outflowofpeopletoothersectors(WBG,2008).
TheservicessectoraccountsforhalfofBangladeshsGDP(53%).In2007itwasslightlyhigherat
59%(CIA2007cit.inEurasiaCenter)whileamountofthelaborforceemployedhasstayedmoreor
less constant. Registered growth in the sector is driven by demand largely for services linked to
agriculturalandindustrialexpansion.In2011sectorgrowthedgedupslightlyfrom6.5%in2010to
6.6% due to growth in export and import boosted demand for transport and financial services.
Moreover, telecommunications is growing strongly because of rising income and the entry of new
products. All in all, sector activities, including wholesale and retail trade, transport,
telecommunications, health services, education, and financial services have improved overall
performance(ADB,2011).
Noting that half of the GDP consists of the services sector, only 26% of the labor force finds
occupation in services, which is relatively low. For that reason and adding the assumption that
growthintheservicesectorisgeneratedbytheincreaseddemandofagrowingmiddleclassbased
ontheexpansionoftheindustryandagriculturesector,ouranalysisofserviceswillnotbefurther
conducted.EveniftheshareofGDPintheservicesectorismuchhigher,dynamicsandchangesare
more pronounced in industry and agriculture (labor force, GDP share growth). For this reason, we
willexaminethelattersectorsinthefollowing.
3.2.1.2. Industry
Inthefollowingsectionwewillanalyzethedifferentindustriesinmoredetail.Eveniftheindustry
sectoralsocomprisesofminingandquarrying,manufacturing,electricity,gasandwatersupply,and
construction(BBS,2011),weselectedthedomainsofmostimportanceaccordingtothesupervising
expertsadvice.Theselectioncriteriaarelaborintensity,exportsshareandproductivitygains.
a) Garmentindustry
Bangladeshistheworldsthirdlargestproducerofreadymadegarmentsandnearlydoubledits
garmentexportsfrom2004to2009.Theindustryemploysbetween2.5and4millionpeople,more
than any other industrial segment. By the end of 2009 garment exports accounted for more than
80%ofthecountrystotalexports(NYTimes,2010).About4800factoriesproduceclothingmainlyfor
the European and American market. 80% of the employees are young women (DEZA, 2009).
24
Notonlydoesgoodperformanceofthissectorofferjobstomanywomenwhowereexcludedfrom
thelabormarketbefore,butitisalsocriticalfordomesticeconomicactivity.Exportsimportanceto
domesticgrowthhasbeenapproachedintermsoftheacquisitionofforeignexchangefortheimport
of goods and services. Thus, export growth is seen by development planning exercises as a
determinant of import capacity, which in turn, is a determinant of the level of domestic economic
activities.Addedtothesubstantialincreaseinthevolumeofexports,inrecentyears,Bangladeshhas
beenachievinganimportantchangeinthecompositionofexportsawayfromtraditionalitemssuch
asjuteandjuteproducts,towardsnewmanufacturedproducts(Sultan,2008).
When reflecting further and looking at Bangladeshs comparative advantages in the global
clothing production market, it comes out that wages are 2030% lower than in India and even 30
40%lowerthaninChina.Infact,Bangladeshhasthelowestgarmentwagesintheworld,according
to labor rights advocates. Moreover, the country has a literacy rate of only 55 % compared with
morethan92%inChina.Asaresult,workersinBangladeshareonlyonefourthasproductiveasthe
Chinese in making clothes, according to a report by the Center for Policy Dialogue. Another
disadvantageisthatmostofBangladeshsuffersblackoutssixtosevenhoursaday.Inadditionthe
competiveness of Bangladeshs exports is partly dependent on Chinas currency policy. If the
Renminbiwastradedmorefreely,Bangladeshsexportswouldbemorecompetitive,butastronger
Renminbi could also hurt Bangladesh by raising the price of machinery and fabric imported from
China.AccordingtoAhmedMushfiqMobarak,anassistantprofessorofeconomicsattheYaleSchool
ofManagement,Chinaisitsbiggestsupplier.
As we can see, despite the fact that the garment industry has provided a lot of regular income
opportunities, poor working conditions are reality. But factory owners argue that a big increase in
wageswouldmakeBangladeshuncompetitivecomparedtoVietnamandotherbigproducers,which
have higher labor costs but also have better infrastructure and are more efficient producers
(NYTimes,2010).Asaresult,Bangladeshscomparativeadvantageischeaplaborforce.However,the
bigpictureshowsthattheboostofexportsisfavorabletodomesticeconomicactivityandtherefore
toemploymentgeneration.
b) ShipbuildingandShipbreakingindustry
Bangladeshisanimportantglobalshipbuilder,focusingonsmallandmediumsizedships,while
traditional shipbuilding nations, such as China and Korea supply large ships. With a long maritime
history, Bangladesh counts on 100,000 skilled and semiskilled workers within this industry. The
countryscomparativeadvantagesinshipbuildingareafavorablegeographiclocation,cheaplabor,
and the presence of industryrelated education and training institutions close by (Positive
Bangladesh,2010).
25
Concerningtheshipbreakingandrecyclingindustry,BangladeshtogetherwithIndiaandPakistan,
accountfor7080%oftheinternationalmarketforshipbreakingofoceangoingvessels.Chinaand
Turkey account for most of the rest. The ship breaking and recycling industry provides more than
50% of Bangladeshs steel supply and is therefore an important strategic industry. Moreover, it
createsasignificantnumberofdirectandindirectjobs,estimatedatover500,000,forsomeofthe
poorestandmostmarginalizedsegmentsofthepopulation(WBG,2010).Astudyconductedbythe
World Bank states that most workers in the ship breaking yards are migrant workers from poorer
regions. Working conditions have historically been poor for the majority of these workers. Indeed,
theuseofpersonalprotectiveequipmentislimited,exposuretohazardousmaterialsisfrequentand
unsafeconditionsarenotrare.ComparedtoPakistanforexample,theWorldBanksoverallfindingis
thatshipbreakingundertheprevailingenvironmentalandoccupationalhealthregulatoryconditions
isamorecompetitiveindustryinBangladeshthanitisinPakistan(WBG,2010).
In ship building and ship breaking, similar to the garment industry, we conclude that through
creationofconsiderableamountofjobs,thepoorareprovidedincomeopportunities.However,the
qualityofworkingconditionsremainstobequestioned.
c) Constructionindustry
TheconstructionsectorinBangladeshhasbeenexperiencingstronggrowthsincetheearly1990s
andaccountsfor10%ofGDP(NewsToday,2011).Tomeetthedemandofagrowingmiddleclassin
urban areas, where highrise apartment complexes are being built, growth in this sector has been
especially pronounced. Ten years ago, the construction sector's share of GDP was 7.7% (at current
market prices). This industry has also generated growth in related industries, such as transport,
storage, communications, housing, and trade services. An additional positive consequence is that
Bangladeshs cement imports have precipitously fallen. Cement production from around 200,000
tons in 1992/93, increased to 2.4m tons in 2001/02 due to the encouragement of international
investorstoinvestinthelocalcementsector(TheEconomistIntelligenceUnit,2003).Itisessentialto
increase the share of locally available construction materials in order to avoid dependencies on
foreignprices.
Inpostindustrialeconomies,anewroleoftheconstructionsectorasanalternativeindicatorhas
emerged (Ruddock & Lopes, 2006). Studies over the last three decades, based on macroeconomic
analysis,haveattemptedtomodeltherelationshipbetweenacountryslevelofconstructionactivity
and its stage of economic development. Despite the quality of available data there are also
limitationstothisapproach,asthedynamicsofconstructionactivityasanagentinthepromotionof
economicgrowthineconomiesatdifferentstagesofdevelopmentcanbeconsiderable(Ruddock&
26
Lopes, 2006). In the case of Bangladesh, data listed above indicates high levels of construction
activityandthereforeeconomicdevelopment.
3.2.1.3. Agriculture
As70%oftheBangladeshipopulationliveinruralareasandhalfthelaborforceisemployedin
the agriculture sector (CIA, 2011), agricultural development is a key driving force of poverty
reductioninthiscountry(WBG,2008).Agriculturehasbeengrowingstronglyataround5%overthe
lasttwoyearsduetogoodperformancesofthecropandhorticulturesubsector,aidedbyfavorable
weather and better access to credit and extension services. Production of fisheries, poultry and
livestock, despite low productivity growth, rose as a result of a stronger demand created by a
growingpopulation,higherincomelevel,andrapidurbanization(ADB,2011).
Due to these developments, there has been a decisive shift in rural areas, away from low
productivitydailywageworkinagriculture(thetotalincomefromthisactivitywasactuallyfallingby
2.7%peryearinrealtermsover200005),towardsdailywageworkoutsideofagricultureandinto
salaried employment (which constitutes about a 6% annual increase in income). More agricultural
income is channeled through the market, and the extent of subsistence agriculture is gradually
declining(WB,2008,p.55).Infact,between2000and2005theshareofselfconsumptionfellfrom
46% to 42% of total production (WBG, 2008). As a consequence of productivity gains in the
agriculturesector,importsoffoodgrainsdroppedby30%(ADB,2011)and96%ofriceconsumption
inBangladeshisselfproduced(Netz,2011).Thus,Bangladeshhasachievedaconsiderablesuccessin
attaining near selfsufficiency, which is essential to avoid famines generated by inflation
sensitiveness. In fact, the country has been able to maintain food security reasonably well (Islam,
2006).
The growth of agricultural productivity has also promoted a favorable development in the rural
nonfarm sector. This sector comprises irrigation equipment and chemical fertilizers, services for
processing, storage and marketing of additional agricultural produce, and the demand for trade,
transport, construction, education and health care services. Agricultural growth has generated
opportunities for employment and income in the rural nonfarm sector through its effects on the
demandforproductsandserviceslistedabovebecausefarmhouseholdsspendalargerproportion
of additional income on purchasing nonfarm goods and services (CPD, 2004). The rural nonfarm
sector even surpassed agriculture as a main source of income in rural areas in 2005. Indeed, this
sector plays a significant role given that according to findings by the World Bank, poverty rates
among households in the nonfarm sector are as much as 10% lower than for the rest of the rural
population.Giventhattheshareofruralhouseholdsengagedinactivitiesoutsideofagriculturegrew
27
from49%to54%between2000and2005,andtheshareofincomefromtheseactivitiesgrewfrom
50%to55%(WBG,2008),theremusthavebeenapositiveimpactonpovertyalleviation.
Because of the agriculture sectors size, rural development is key for poverty alleviation. As we
havestatedinthissection,thankstoproductivitygains,theshareofselfconsumptionhasdeclined
andselfsufficiencyisnearlyachieved.Growthoftheruralnonfarmsectorhasbeenakeydriverfor
employmentgenerationandincomeincreasesintheagriculturesector.Toconclude,thedecreaseof
famine vulnerability and employment generated in the nonfarm sector, have significantly
contributedtopovertyalleviationinruralareas.
3.2.1.4. Remittances
Money transfers of Bangladeshi emigrant workers to their home country have significantly
contributedtotheincomeofpoorpeople.Accordingtothe2010HouseholdIncomeandExpenditure
Survey (HIES) (BBS & WBG, 2011), about 12.28% of households reported some kind of migration
either within the country (8.60%) or abroad (3.97%). The average amount of remittance is 151.89
thousand Tk. per recipient household. Between 2000 and 2005 the World Bank registered a yearly
growthby6%inforeignremittances.In2009,remittancesofexpatriateswereashighas$9.7billion
and accounted for about 25% of the countrys GDP (Economywatch, 2010). The amount of
remittancesrosein2010withaninflowofaround$11billion.66%ofremittancescomefromArabic
countries (Netz, 2011). Most migrants are male and belong to the 2544 agegroup (BBS & WBG,
2011).
Thanks to remittances, nonlabor income in rural areas, where most poor people live, has been
expandingfasterthanlaborincome(WBG,2008).AsanimportantsourceofincomeforBangladeshi
population,remittancesareafundamentalfactorforpovertyreduction.
3.2.1.5. Microfinance
Concerningmicrocredits,in2010,32.03%ofthehouseholdsreportedreceivingloansduringthe
last twelve months. While 23.7% of total loans were received in urban areas, the proportion was
significantlyhigherinruralareas(35.08%).Thekeysourcesofloansin2010wereGB(21.11%),ASA
(18.37%),andotherNGOs(14.29%).Creatingbusinesses(23.73%)andagriculture(21.09%)werethe
primaryreasonsfortakingloans(BBS&WBG,2011).
Inadditiontofactorssuchassufficientnutrition,accesstosanitationandeducation,onwhichwe
willelaborateinthenextchapter,accesstofinancialservicesisnecessaryandevenoneofthemost
importantconditionsforescapingfromthepovertytrap,accordingtoBardhanandUdry(1999).The
microfinancemovementqualifiesasarevolutionasitradicallyoverturnedestablishedideasofthe
poor as clients of financial services. As a GB innovation, it has spawned a variety of lending
28
methodologies demonstrating that it is possible to provide costeffective financial services to the

verypoor(Woller2002,cit.inIslam,2006).
Microcredit, or its wider term microfinance, is the extension of small amounts of collateralfree
institutional loans to jointly liable poor group members for their selfemployment and income
generation. In the case of Bangladesh, on one hand some sources claim that these practices have
contributedtoafairdistributionofgrowthbenefits(Netz,2011),apositiveimpactonenterpriseand
householdincome,assetaccumulationaswellashouseholdconsumption.Asaresulttheystatean
overall positive influence of microcredits on social welfare indicators. On the other hand, critiques
indicate that the GB does not reach very far down the poverty spectrum. Apparently, of the very
poorwhodoreceivemicrocreditoftheGB,ahighpercentageoftendropsoutafteronlyafewloan
cycles (Islam, 2006). Further, a study of the World Bank found out that despite the doubling of
microcredit in Bangladesh over the period of 20002005, evidence seemed not to register a
proportionalriseinthenumberofenterprisesandincome(WBG,2008).TazulIslamsuggestsinhis
book Microcredit and Poverty Alleviation that by only providing microcredits, the needs of the
poor are not met. Rather, a wider range of clientresponsive, flexible, quality financial and non
financial services should be developed namely open access savings accounts, contractual savings
schemesandlifeinsurances(Islam,2008).
Toconclude,literatureshowsadividedopiniontowardsthequestionwhethermicrofinancehas
beeneffectiveinpovertyreductionornot.Yet,itisagreedonthatasetofmeasuresonprovisionof
microfinanceservicesforthepoor,maybeundertakenandthepreviouschapterbeforeshowedthat
microfinancehasplayedasignificantroleinpromotingwomenempowerment.
3.2.2. Reasonsforprogress
Bangladesh attained a respectable 6.7% growth in GDP in 2011, aided by conductive policies,
strongexportgrowthandfavorableweather,accordingtotheAsianDevelopmentBank(ADB)(ADB,
2011). GDP growth was broad based since agriculture, industry, and services sectors all improved
theirperformancethroughproductivitygains.
3.2.2.1. Economicgrowth
Economic growth in Bangladesh is, in comparison to other countries, very much in favor of the
poorest (Netz, 2011); because many low skilled workers were given the opportunity to count on
regular income over the past years. Thanks to employment generation in the different industries,
nonfarmsectorandservices,anewmiddleclasshasemerged.Themiddleclasshigherdemandfor
services,aswellasruraldevelopment,industrygrowthandremittances,havegreatlycontributedto
increasesinGDPpercapita(WBG,2008).Thesedevelopmentsarealsoincreasinglyleadingtoarise
of average monthly household expenditure, not only in urban areas but also in rural areas.
29
Furthermoretheamountofhouseholdsusingmobilephonesincreaseddramatically:From11.3%in
2005to63.7%in2010(WBG&BBS,2011).Ontheotherhand,thereisadividedopiniononwhether
microcredits have contributed to poverty alleviation in economic terms, even if access to financial
servicesisessential.
In summary, productivity gains and employment generation are key factors associated with
income increases and subsequent poverty reduction (WBG, 2008). According to the World Bank,
muchofthepovertyreductiontookplaceintheslowgrowthyears.Thisfacthasledtoclaimsthatit
ispossibletoimprovelivingstandardsbymeansotherthanextremeeconomicgrowthalone.Onthe
other hand, it is only since the growth acceleration of the 1990s that poverty reduction has been
achievedafteraperiodofstagnationduringthe1980s(WBG,2008).
30
3.3. WatersupplyandSanitation
Water supply and sanitation (WSS) is one of the most important areas in the fight against
poverty because "investing in sanitation improves health, prevents child deaths and increases
productivity. It also makes good economic sense: a return of around $9 for every dollar invested"
(WaterAid,2011).Safedrinkingwaterandhygienearedirectlyinterlinkedwiththehealthofhuman
beings. A small increase in better WSS can already have a positive effect on the overall situation
(WaterAid,2011)."Governmentsintheworld'sLeastDevelopedCountrieshaveanopportunityto
realizehugegainsfortheirpeoplebyaddressingthebasicneedsforbettersanitation,goodhygiene
andsafedrinkingwater"saidTanzaniansMinisterforLandsandHumanSettlementsin20111.
In the following chapter the most outstanding findings of Bangladeshs WSS progress will be
presentedandthereasonsforthissuccessdiscussed.
Bangladeshs WSS is a very challenging sector, as it has undergone remarkable progress in the
recentyearsdespitestillfacingmanyproblems.
Inthefieldofwatersupply,Bangladeshcouldbeseenasawaterrichcountryduetoitslocation
at a river delta and on the coast. But the evidence shows that the applied practices for using the
water resources are not very efficient. The reasons for this are the low water quality of the river
(which is polluted), the salty unusable water from the coast and fluctuations of quality due to
monsoon and dry season (ADB, 2007). The main source of drinking water is groundwater, but it is
naturallycontaminatedwitharsenic,whichreducestheavailabilityofsafewater(WSSC,2012).
Sanitationontheotherhandisahugechallengeinitselfbecauseoftheverydensepopulation.
Sanitation coverage in Bangladesh was until recently very low (Uddin, 2010), mainly because of
limited attention given to hygiene, the unsafe management of human excreta and the increasingly
high population density. However, the latest developments have slightly improved the situation,
whichhasanoverallimpactonthepopulationsdevelopment(ADB,2007).Thefollowingcomposes
thefindingsforprogressinthefieldofWSS:
3.3.1.1. IncreasesinWSS
TheimportantimpactofWSSonpovertyreductionexplainsthenumerousnationalprograms,but
alsotheinternationalsupportinthisfield.Uptonow,nationalwatersupplyandsanitationprograms
wereofteninefficient;NGOs,internationalorganizations,internationaldevelopmentaidandpublic
private partnerships became main players and sometimes even replaced government tasks (ABD,
2007). But still, the Government of Bangladesh (GoB) has a promising ongoing project (Sanitation,
1
ProfessorAnnaTibaijuka,TanzanianMP,MinisterforLandsandHumanSettlementandChairoftheWaterSupplyand
SanitationCollaborativeCouncil(wateraid,2011)
31
HygieneEducationandWaterSupplyinBangladesh(SHEWB)project),whichwaslaunchedin2007
bytheDepartmentofPublicHealthEngineering(ADB,2012).Thisinterplayofvariousactorshashad
an overall positive impact on the situation in Bangladesh and made it possible to increase the
number of people using improved drinking water sources between 1990 and 2008 by 37.8 m.
Additionally,39.7mpeoplegainedaccesstoimprovedsanitationfacilitiesbetween1990and2008
(WSSC,2012).
3.3.1.2. Highnumberofwellsforwateraccess
Thetotalnumberof7.0mwellsisagreatsuccessforwateraccess,especiallyinruralareas.
Theaveragenumberofpeopleservedbyonewellis20.Wellshaveensuredabasiclevelofdrinking
watersupplytomostofthepopulation,althoughthepooroftenstillhavenoaccessclosetotheir
homes(ADB,2007).
3.3.1.3. ProgressforMDG(sanitation)
EvenifBangladeshisbehindboththeMDGsforWSSandthegovernmentstargettoprovidefull
sanitationcoverageby2010,thereareimprovementscomparedtorecentyears(ADB,2007).Target
CoftheseventhMDGisHalve,by2015,theproportionofpeoplewithoutsustainableaccesstosafe
drinkingwaterandbasicsanitation(Uddin,2010).ThegraphicbelowshowsBangladeshsprogress
inthisfieldandtheprognosesfortheachievementoftheMDG.
Figure2:MDGSanitationachievementinBangladesh
Source:WSSCC,2012
3.3.1.4. ReductionofIMR
The improvement in WSS has had a remarkable effect on the reduction of child mortality.
Bangladesh has achieved rank 48 in 2010 from rank 143 in 1990 for under5 infant mortality. This
meansthattheInfantMortalityRate(per1000livebirths)hasfallenfrom99in1990to39in2010
32
(UNICEF,2012).ThefourthMDGhasthereforebeenachievedevenbefore2015(UNDP,2012).This
achievement has a positive correlation with the population growth: with less infant mortality,
familiescanbetterplanbirths,astheyknowthatthebabywillsurvive.Especiallyinsocietieswhere
males count more than females for economic reasons, a reduction of infant mortality has a great
impactontheoverallpopulationgrowth(SDC,2012).
The following graphic illustrates the most outstanding progresses of Bangladesh in the area of
water supply and sanitation. As mentioned before, the most remarkable achievement is the
reductionofInfantMortalityinthelastyears.
Figure3:MostimportantprogressesinWSSinBangladesh
Facts
1990
2009
WaterSupply(safewater)
72%
80%
SanitationFacility
20%
54%
InfantMortalityRate(per1000livebirths)
99(Rank143)
39(Rank48)
Source:Ownillustration,datesource:UNICEF,2012
3.3.2. Reasonforprogress
Following,themostimportantreasonforBangladeshsprogressinWSSwillbeintroduced.First,
the approach of CommunityLed Total Sanitation, then other successful projects and last the new
localfocus.
3.3.2.1. CommunityLedtotalSanitation
CommunityLed Total Sanitation (CLTS) is a new approach, developed in Bangladesh in 1999, to
increase WSS. When the government decided to achieve 100% sanitation coverage by 2010, many
projectswerelaunched.Howevermostoftheseprojectswereinefficientasonlyprovidingsanitation
facilitiesdidnotautomaticallyleadtousageofthese(CLTS,2012).Often,theyalsodidnotreduce
hygieneproblems.ThereforetheCLTSwasamoresuitabletechniqueforachievingthisgoalthrough
an innovative methodology of mobilizing communities directly (Water Aid, 2012b). The aim was to
reachthepopulationdirectlythroughsmallprojectsandthusenhancepeoplesownwilltoachieve
bettersanitation(ABD,2007).LargeNGOspracticedthistechniquealloverthecountryandtheGoB
and BRAC also supported the project. In 2003, they launched the national sanitation program
Country Strategy Paper for Community Led Total Sanitation (WAACC, 2012). Such cooperations
betweenNGOsandthegovernmentwereveryimportantforprogress(ABD,2007).
33
The CLTS achieved overall progress in sanitation development by simply increasing awareness
that defecation in the open increased the spread of diseases (Water Aid, 2012). CLTS triggers the
communitysdesireforchange,propelsthemintoactionandencouragesinnovation,mutualsupport
andappropriate local solutions,thus leadingtogreaterownershipandsustainability(CLTS,2012).
CLTShadagreatimpactonWSSinBangladeshandcanthereforebeseenasoneimportantreason
forprogress.
3.3.2.2. Successfulprojects
As discussed in the previous chapter, the number of governmental programs, international
developmentaidandNGOprojectsintheareaofWSSisveryhighinBangladesh.Manycooperations
andprogramshavebeenthesourceofprogress.Inparticular,theemergenceoflargeNGOsinthe
last decades has played a very important role, as they developed strategies to directly reach the
population through simple and inexpensive means. However, their strategies were not always
harmonizedwithgovernmentprograms(ABD,2007).AnexampleisBRAC,whichprovidesEssential
HealthCare(EHC)inBangladesh(BRAC,2012).BRAClaunchedtheOralTherapyExtensionProgram
(OTEP).OTEPisusedtosavemanylivesfromdehydrationduetodiarrhealdiseases.Withasimple
process of mixing salt and sugar with water and feeding this mixture to sick children, the aim of
increasedchildsurvivalinBangladeshwasachieved(AgainsttheOdds,2012).BRACreachedalarge
proportion of the population by the door to door technique (BRAC, 2010). OTEP led to a great
successagainstchildmortality,asitprovidedaninexpensive,simplewaytoavoiddehydrationand
canthereforebeseenasareasonforprogress.
3.3.2.3. Localfocus
Thelocal(community)focushasbecomeveryimportantandakeystoneforprogressinalmostall
areasofpovertyreduction.Thecommunityempowermentprogram(CEP)ledtodifferentcorporate
values and mostly also to a higher awareness for the importance of sanitation, which led to great
progressinWSS(BRAC,2012).Themarketapproachonthelocallevelisanotherreasonforsuccess.
Private involvement creates a new entrepreneurship that often functions more effectively than
publicprograms(Poverty,2012).Aloneoutofthe7.0mconstructedwells,5.5mwereconstructed
bytheprivatesector(ADB,2007).GenerallocalfocusleadstoprogressinWSSthroughadifferent
awarenessandmoreefficiency,e.g.throughprivateinvolvement.
34
3.4. Education
Education provides human beings with knowledge and skills that are necessary for them to be
ableimprovetheirownlives.Itisaveryimportantfield,becauseitcreatessustainabledevelopment,
asknowledgeissomethingthat,oncegained,noonecantakeaway(StrommeFoundation,2011).In
regardtothis,goodeducationisamainreasonforthereductionofpoverty.
The currentsituation in thefieldofeducationinBangladeshisa veryintenseissue.Bangladesh
hasdevelopedaneweducationalsystem,withnewgoals,inthelastdecade.Bangladeshsprimary
education system is one of the largest in the world, with 18m children enrolled in 62000 primary
schools. The system is divided in four levels: primary school, secondary school, higher secondary
level and tertiary school (Globeserver, 2012). Education was always important in Bangladesh, but
especially in recent years the educational system has made much progress (Tripod, 2012). In the
followingthemostremarkableadvancementswillbepresented.
3.4.1.1. Increasedprimaryandsecondaryschoolenrollment
The number of enrollments in primary school has increased from 73% in 1990 to 87% in 2009,
whereasthedropoutrateinprimaryschoolhasdecreasedform53%in1990to43%in2009(SDC,
2009). Through improvements in the educational system, better access to school was established.
Providingschoolfacilitiesalsoinruralareasgeneratedanoverallincreaseinenrollments.Secondary
schoolsreceivedadvancements,whichalsoledtoanincreaseinenrollments.
3.4.1.2. Highsubsidizededucationalsystem
Bangladeshsgovernmenthassubsidizedtheeducationsysteminordertoprovideeducationfor
all. Article 17 of Bangladeshs constitution says: All children between the age of six and ten years
receiveabasiceducationfreeofcharge(UNICEF,2012b).Thisisanimportantstepforeducationin
Bangladesh.
3.4.1.3. ConformitywithMDG(education)
WhentheUNDPannounceditsMDGfor2015,Bangladeshwasoneofthefirstcountriestoadapt
theirobjectivesofEducationForAll(EFA).WiththeaforementionedArticle17Bangladeshmadethe
MDG its own goal. Bangladesh is on a good way to eventually achieve universal primary school
enrollment (SDN, 2012). But it will be difficult to achieve universal access and completion by 2015
(WBG,2012).
3.4.1.4. Increaseinenrollmentofgirls
The enrollment of girls in primary schools has undergone a tremendous change: female
enrollment (as a percentage of total enrollments) increased from 33% in 1991 to 48% in 1997 and
35
close to 55% in 2008 (WBG, 2012b). That means the proportion of girls in primary schools is high
thanofboys.Insecondaryschoolsitincreasedby16%inthelast15yearsandattheuniversitylevel
by 11% (GIZ, 2012). Bangladesh has achieved one of the key MDG gender party in primary and
secondary schooling. Bangladeshs success in female secondary school education is now well
establishedandthesuccesshasbroughtarevolutiontowomansstatusinthesociety(WBG,2012).
3.4.2. Reasonforprogress
The progress of Bangladeshs education system has many reasons and indicators. The most
efficientonesare:NationalprojectsandobjectivessupportbyinternationalactorsandtheNGOrun
nonformalschools.
3.4.2.1. Nationalprojectsandobjectives
Bangladesh has done a lot for a better education system in recent years, through reforms and
nationalprojects.Oneoutcomeisanationwideintegratededucationsystem,whichgivesaccessto
schooltoalmostallchildren.TheoverallobjectiveEFAisnowcontainedinBangladeshsconstitution
andcontributesalottotheincreasedenrollmentsinprimaryschools(Globserver,2012).Secondary
level enrolment also improved through better national governance. One project in particular,
Bangladesh Female Secondary School Assistance Program (FSSAP), has had a great impact on the
growing enrollments of girls in secondary schools. A central aim was to improve girls access to
secondaryeducationthroughscholarships(WBG,2012b).Anotherapproach,whichledtoprogressin
schoolenrolment,wasthefoodforeducationmovement(Globserver,2012).
3.4.2.2. Internationaleducationsupport
Despite national projects, Bangladesh receives enormous international support through
cooperations,partnershipsandindependentprojectsinthefieldofeducation.TheFSSAPgotmuch
support by the World Bank, as well as development aid from other countries (WBG, 2012b). The
UNDPhasalsohadanimportantrolethroughtheMDG2,whichBangladeshiscommittedtofulfill
(Globserver,2012).
3.4.2.3. NGOrunnonformalschools
In the area of education, NGOs are also an important actor. Meanwhile they provide a great
number of NGOrun nonformal schools; the largest one is run by BRAC. Their aim is to reenroll
studentswhohaveleftschoolbeforecompletion.Themainobjectiveofnonformalprimaryschools
istodevelopaschoolmodelfortheunderprivilegedandprimaryschooldropouts,especiallygirls,to
completethe5yearprimaryschoolsyllabusin4years(BRAC,2012).TheprogramofBRACisvery
reputedandfunctionswell(BRAC,2012).Thisformofeducationisanimportantpartoftheprogress,
asthemajorityofbeneficiariesarethepoorestandmostdeprived(SDC,2009).
36
4. Developmentpotential
Inthefollowingchapterthedevelopmentpotentialofthefourexaminedareaswillbepresented.
This, to show which challenges still face Bangladesh, but also to provide areas with development
potential for further strategies on poverty reduction. After having seen the progresses and the
reasonsforit,thedevelopmentpotentialisimportant,becausethefocusshouldnotonlylayonwhat
isworkingwell,butalsowhereproblemsremain.
4.1. Challengesforpolitics,cultureandidentity
Intheareaofpolitics,cultureandidentity,Bangladeshstillfacesmanychallengeswhichmuchbe
addressedinordertoincreasetheeffectivenessofgovernmentprogramsandinternationalaidand
allowthefurtherempowermentoftheBangladeshipeople.
4.1.1. Corruption
Corruption remains a problem encountered on all levels of Bangladeshi politics, which has a
profound negative influence on all government programs. Corruption weakens public service
delivery,misdirectspublicresources,andholdsbackthegrowththatisnecessarytopullpeopleout
ofpoverty(WorldBank2000).Thisholdstrue,asthemainproblemfacinggovernmentprogramsis
thelackofeffectivenessandefficiencyofthegovernmentaid.Itisestimatedthat50%offundsare
diverted away from the target group into overhead costs, hardware, and foreign and local
consultancies.Thisrepresentsaveryhighlevelofdeliverycosts,whichshowaprobleminthedesign
ofthepovertyalleviationprojects.Thisisfurtheraggravatedbytransactioncostsofteninformof
bribes,paidbythepoortopoliticalintermediariesinordertoaccesswhatshouldbyrightsbetheirs,
and made even worse by corruption in the government, which leads to thefts of funds by public
functionariesalongtheway(Sobhan,1998).
4.1.2. Humanrightsabusesandpoliticalrepression
Especially when it comes to human rights, namely political rights and rights of workers,
Bangladeshstillhasmuchroomforimprovement.
Though Bangladesh has a free press, the number of attacks and murders on journalists in
Bangladeshishighlydisturbing.TheCommitteetoProtectJournalists(CPJ)hasrepeatedlycalledon
the government of Bangladesh to vigorously investigate and prosecute all those who murder,
assault or threaten the country's journalists, in order to end a long cycle of violence against the
media and enable journalists to do their jobs safely (CPJ, 2004). Since 1997, at least eleven
journalists in Bangladesh have been killed in reprisal for their work. Dozens more have been
assaulted or threatened. The government still fails to investigate many of these attacks and
prosecutionsareveryrare.
37
Politicalrightsarealsoinjeopardy.Protestandstrikesin2012,calledoutbytheBNPinresponse
tothedisappearanceoftheirorganizingsecretaryIliasAli,werebrutallyrepressedbypoliceforces,
leavingatleasttwopeopledead(AssociatedPress,2012)Thisisonlyoneofmanysimilarincidents,
thatagainhighlightthefragileandarbitraryway,inwhichthegovernmenttreatsitspopulationand
seekstoundermineandsuppressanyformofopposition.
4.1.3. Domesticviolence
Thepatriarchalsocietyhoweverstillremainsastrongforcehinderingthefurtherempowerment
ofwomen.Domesticviolenceisstillprevalent,especiallyinruralareasofBangladesh,includingacid
attacksasaformofrevengeoroutofjealousy(Bandyopadhyay,Mridula&Khan,2003).Therefore,
womenwhomaybeempoweredthrougheconomicindependenceoutsidetheirhouseholdmayface
violenceintheirownhousehold.Anapproachtoreducingthisproblemmaybetoreintegratemales
inthemicrofinanceprocess,therebyforcingthemtoalsotakeresponsibility.
4.2. Economicchallenges
Despitesubstantialprogressindicatedintheformerchapter,therestillremainsomechallenges.
First,tobecompetitiveagainstindustrycompetitors,infrastructuremustbeextended.Moremustbe
investedinpowerplantsandnaturalgasfieldsforexample(NYTimes,2010).AccordingtotheADB,
infrastructure shortage remains the major challenge. Severe shortages in port and transportation
facilities impede the countrys growth potential from being realized. This fact might unfortunately
makepoorworkingconditionsremainoneofthefewcomparativeadvantages.Inaddition,theflows
offoreigndirectinvestment(FDI)continuetoberestrainedbyaweakdomesticinvestmentclimate
andtheglobalfinancialcrisis.Toreducethelargeinfrastructuredeficit,privatesectorparticipationin
infrastructureprovisionshouldbeenhanced,forexamplethroughpublicprivatepartnerships.Policy,
legalandregulatoryreformsmayimprovethebusinessenvironmentandasaresultencouragemore
FDI. Higher FDI could significantly raise factor productivity and managerial efficiency as well as
reducemarketisolationandtechnologicalbackwardness(ADB,2011).
Moreover,toraisetheshareofmanufacturinginGDPto30%asenvisionedintheSixthFiveYear
Plan, Bangladesh would need to diversify its industry. The export market faces the challenge of
developingindustrieswithdemonstratedexportpotential.Currently,thegarmentindustryaccounts
for around 70% of total exports. For instance, industries such as leather, pharmaceuticals, light
engineering,shipbuilding, jute goods, frozenandprocessedfoodsandagriculturalproducts,plastic
toysandplasticproducts,medicalinstruments,toiletries,ceramicandmelamine,electronicsgoods
and other labor intensive products do have high export potential as well. Prospects for domestic
marketoriented industries are encouraging too because of rising demand, rapid urbanization, and
growingintegrationofagriculturewiththeindustrysector(ADB,2011).
38
4.3. ChallengesforWatersupplyandSanitation
The challenges that Bangladesh faces in the WSS sector are manifold and multidimensional.
Bangladesh will probably not achieve the MDG for sanitation by 2015. Lack of water access,
especially in rural areas, is still a very difficult topic and puts Bangladesh far behind others (SDC,
2012).Furthermorethewaterqualityisatremendouschallenge.This,especiallyafterthediscovery
ofarseniccontaminatedwaterin16%25%ofallexistingwellsin1993.Unfortunately,although80%
of the population have access to some form of improved water supply, arsenic contamination of
wellshascomplicatedthesituationbycausinghealthproblems(ADB,2007).Arseniccontaminated
waterisespeciallyabigissueinruralareas,aspeopledonothaveotheroptionstogetwater.Inthe
last years the government and many other actors have tried to face the problem, but amount of
arseniccontaminatedwaterhasonlyreducedslightly(SDC,2012).
Sanitation is an even more delicate topic in Bangladesh. Sanitation facilities are still very scarce
withonly50%coverage,inruralareasevenless.Opendefecationposesaserioushealththreat.The
awarenessofsanitationhasgrownbutitisstillverydifficulttoreachthewholepopulation.Thehigh
densityofpopulationisalsoafactor,whichduplicatesproblemsofsanitationveryquickly,especially
whenitcomestohygiene(GIZ,2012).
4.4. ChallengesforEducation
Even though Bangladesh has made much progress in providing education, there are still many
issuesthatneedattention.Accesstoschools,especiallyinruralareasisstillamainproblem,which
explainstheenrollmentrateofonly80%in2009(UNICEF,2012).Butevenmoreproblematicisthe
dropout rate of 48% in primary schools. This can be explained through the opportunity costs
students have. Even if every child could go to school, sometimes they just are not able to as they
havetohelpathomeorearnmoneyfortheirfamily(SDC,2009).Anotherconcernisthelowrateof
learning achievements (WBG, 2012). Even after completion of primary school many children have
very low skills. 70% of all children after five years of primary school cannot read and write (GIZ,
2012).Thislowlearningachievementisrelatedtothelackofsufficientandqualifiedteachers(28%
ofallteachersareuntrained)(WBG,2012).Teachersareoftenunderpaidanddonotgettheneeded
training for teaching (GIZ, 2012). Another issue is the lack of infrastructure and adequate school
material. Without school books it is also difficult for teachers to achieve learning progress (GIZ,
2012).
Thesechallengesforeducationshow,thatthereisstilltheneedforimprovementandthatevenif
educationisprovidedtoallchildren,qualityplaysapivotalroleforlearningachievements.TheMDG
2hasthereforestilladeficitinregardtothediscussedissues.
39
5. Conclusion
InordertoevaluateBangladeshsprogressinpovertyalleviation,anintegratedmodelconsisting
ofmonetary,nonmonetaryandalternativefactorswascreated.Sincepovertyisamultidimensional
concept,itisofhighcomplexitytoassesstheimpactofthefightagainstit.
Firstofall,BangladeshsconsistentfocusonpovertyalleviationincombinationwithavividNGO
presence and international attention offers good conditions for the fight against poverty. Another
essentialfactoristhemindchangeinthesocietyintermsoftheroleofwomen,familyplanningand
even more important the Bangladeshi identity and empowerment. These developments show
that Bangladesh has to a certain extent rehabilitated itself and overcome its historic trauma. The
secondfieldofresearchshowedthateconomicgrowthindeedisverymuchinfavorofthepoorest.
The major indicator for this is an emerging middle class that acts in the role of consumers as a
multiplier of prosperity. But not only the industrial but also the agricultural sector has improved,
which has helped to avoid an unreasonable migration into cities. Two other important drivers for
development are education and sanitation. The nationwide approach to such projects on the one
hand as well as the local and selfgovernmental character on the other hand is an essential
advantage.
Despite substantial progress indicated in the former section, there still remain some challenges
forBangladesh.FirstofallCorruption,politicalrepressionandHumanRightsabusesarestillanoften
reportedproblem.Inadditioninfrastructuresupplyalsohastokeepupwiththeenormousgrowth
andindustrialdiversificationisalsoaprimarygoaltobeaddressed.Moreovermanyadvantagesare
based on poor working conditions, which hopefully will be improved. Last but not least in water
accessaswellaseducation,therehastobeashiftoffocusfromquantitytoquality.
TosumupitcanbestatedthatBangladeshdoesshowauniqueprogressinpovertyalleviation.
Despite confronted with huge challenges, the Bangladeshi seem to have mastered the task of
developmentinanimpressivemanner.Still,therearemanyproblemstobefaced,butBangladesh
candefinitelyberegardedasakindofrolemodelforothersocalledbasketcases.
Indeed,ahighgrowthrate,complementedwitheffortssuchassocialprotectionprograms(health,
education,andemployment),hasthepotentialtoliftmillionsoutofpoverty.
HasanuzzamanZaman,JournalofPoverty,2011
40
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