It is quite clear that differing impacts created in different dimensions-social, economic, healthcare, transport connectivity and education- through climate change as well as infectious diseases like- Ebola, Monkeypox, Dengue and Covid - have clearly underlined the need for us to work together in all sub-regions to reduce the diverse impacts through the creation of a greener and fairer economy.
Analysts have observed that we must not confine ourselves only within factors like better technology and greater investment. We need to also move forward by enhancing social, economic and environmental interdependence among the stakeholders. This will require a ‘mutually respectful’ relationship between individuals, communities and nations and also the sharing of knowledge as it continuously evolves.
Economists and social scientists broadly agree that that one method for reducing existing poverty is to encourage the creation of opportunities- be it in the form of new micro-entrepreneurship or through the potential of new employment prospects. However, while following such a path, we also need to remember that the prospect of new enterprises and foreign investment can be driven away because of inefficient institutions, corruption, the weak rule of law and excessive bureaucratic burdens.
We need to remember here that long run economic growth per person is achieved through increases in capital (factors that increase productivity), both human and physical, and technology. Improving human capital, in the form of health, is particularly needed for economic growth and nations, according to most economists associated with the health sector, do not comparatively need large investments to gain this additional factor. Knowledge on the cost effectiveness of healthcare interventions can be elusive but educational measures to disseminate what works and what is available for disease control can make a major difference. Effective projects like promoting hand washing is cost effective as a health intervention measure but can cut deaths from the major childhood diseases like diarrhea and pneumonia by half. Such simple measures will be especially helpful in Bangladesh rural areas where personal hygiene is sometimes overlooked.
We must not forget that better health among children, particularly those studying at the primary and secondary levels has crucial relevance in the equation for creating human capital. Education is an important determinant for economic growth and reduction of poverty. Any disruption in that process can harm the creation of physical capital. This has been noticed not only in many countries in Africa and Latin America but also in certain areas of rural South Asia including Bangladesh.
In Bangladesh, we have also sometimes observed foreign
aid serving the interests of the donor more than the recipient. Critics
and socio-economic analysts associated with
the civil society have also argued that some of the foreign aid is stolen by
corrupt government officials, and that higher aid
levels sometimes erode the quality of governance.
There are two other areas where Bangladeshi authorities, particularly the present government, have been attaching attention. That needs to be carried forward more extensively to reduce poverty within our country. They relate to improvement in our infrastructure such as roads, transportation facilities and information networks. These factors play a significant role in helping to achieve market reforms. Digitalization and improvement in connectivity are today expanding horizons in all parts of the world. One is reminded in this context of how the simple technology of the steam engine, a century and half ago, helped to spur the dramatic decreases in poverty levels.
Better use of technology also helps bring economic freedom by making financial services accessible to the poor. It also facilitates those below the poverty line towards having a safer place not only to save money but also to receiving loans. Currently, mobile banking is trying to address the problem of the heavy regulation and costly maintenance of saving accounts. This is also helping to create entrepreneurship at the grass-roots level and contributing towards reduction of poverty. We need to focus seriously as to how this process can be moved forward in Bangladesh within a more accountable framework.
While we take necessary steps with regard to reduction of poverty, we also need to remember that increases in employment without increases in productivity might lead to an increase in the number of “working poor”. This is why some economists are now underlining that reduction of poverty must also in parallel take precaution about promoting the creation of "quality" and not just "quantity" pertaining to labour market policies. In order to understand the connotations and the denotations of such a matrix we need to carefully understand how China and South Korea are taking measures to ensure this effective process.
In Bangladesh, our authorities have been focusing on our rural hinterland because it is clear that growth in the agricultural productivity of small farmers is, on average, at least twice as effective in benefiting the poorest half of a country’s population as growth generated in nonagricultural sectors. Keeping this factor in view, Bangladesh has started improving water management as an effective way to help reduce poverty among farmers. With better water management, they can improve productivity and potentially move beyond subsistence-level farming.
We also need to understand that access to irrigation has provided families living in the former ‘Monga’ areas with opportunities to diversify their livelihood activities and potentially increase their incomes. It has also enabled crop diversification.
Our authorities, in this regard, need to seriously consider using renewable energy- solar power to facilitate these dynamics.
Any consideration on reduction of poverty in general and Bangladesh in particular would not be complete without reference to the question of development or tied aid as provided by donor countries. A major proportion of aid from donor nations is ‘tied’, mandating that a receiving nation buy products originating only from the donor country. Consequently some NGOs, especially in Africa have argued that Western monetary aid often only serves to increase poverty and social inequality, either because it is conditioned with the implementation of harmful economic policies in the recipient countries, or because it's tied with the importing of products from the donor country over cheaper alternatives.
(Muhammad Zamir, a former Ambassador, is an analyst specialized in foreign affairs, right to information and good governance, can be reached at <muhammadzamir0@gmail.com>)
