The Asian Development Bank (ADB) and the Government of Bangladesh on Tuesday signed an agreement for a $250millionpolicy-based loan to further improve the social protection system in Bangladesh for supporting the vulnerable population against socioeconomic challenges.
Fatima Yasmin, Secretary, Economic Relations Division, and Edimon Ginting, Country Director, ADB,virtually signed the agreement on behalf of Bangladesh and ADB, respectively. The program aims to accelerate reforms in increasing the coverage and efficiency of the social protection, improving the financial inclusion of disadvantaged people, and strengthening the response to diversified protection needs.
The loan is the second subprogram of the Strengthening Social Resilience Program (SSRP) approved in 2021,which helped implement institutional and policy reforms that strengthened the inclusiveness and responsiveness of social protection in Bangladesh.
“ADB remains committed to help Bangladesh accelerate the socioeconomic recovery and assist the government to promote an integrated social protection program”, said Country Director Edimon Ginting.
“The integrated social protection program will improve social safety net management; deepen financial inclusion; address needs based on demographic, geographical, age, gender, and other diversities; and widen the coverage and efficiency of social protection” Mr. Ginting added.
The reforms supported under the program will help improve efficiency by digitalization and integration of systems as well as harmonization of government’s social protection programs.
Greater financial inclusion of the disadvantaged will be broadened by improving the usability of mobile financial services through the quick response (QR) code payment services, particularly in rural areas.
The program also supports a contributory protection scheme by focusing on an employment injury scheme. This contributory protection scheme will offer protection to a wider population and help augment government financing for social protection.
The reforms will help Bangladesh bring at least 80% of social protection programs with cash-based benefits under a standardized and integrated management system with connection to G2P platform by June 2023.
At least 60% of cash-based social protection benefits will be delivered to disadvantaged women, and social protection program fragmentation will be reduced in three ministries. The number of active mobile financial services accounts will be increased annually by 5%. At least 50 mobile clinics will start operating in 10 city corporations.
At least one social insurance scheme (contribution-based protection scheme) will be initiated on a pilot basis by 2023.
