The world has been obxerving the United Nations International Day for Eradication of Poverty for some years now. Analysts have not only tried to define the connotations of poverty but have also given their observations on the varied denotations of this word with regard to alleviation or reduction of this state within the context of consolidating development and building a sustainable future.
It needs to be understood that this has special significance after the COVID-19. We now need to create a greener and fairer economy by not confining ourselves only within factors like better technology and greater investment. We need to 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. This will assist us to better evaluate the economic and social policies, strategies and priorities adopted over the last two decades.
It will also enable us to avoid repeating the mistakes that, in more ways than one, have contributed to environmental degradation, unsustainable growth, emergence of different inequalities and social injustice. We can then identify the activities that need to be nurtured.
Social scientists and economists agree 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. However, 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.
This has already been demonstrated by Bangladesh and Sri Lanka in the manner in which they have reduced their maternal mortality rate. 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 South Asian 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.
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 and information networks.
These two factors play a significant role in helping to achieve market reforms. Digitalization and improvement in connectivity are today expanding our horizons just as the technology of the steam engine, a century and half ago, helped to spur the dramatic decreases in poverty levels.
Such technology also helps bring economic freedom by making financial services accessible to the poor. It is also facilitating those below the poverty line to having a safe place not only to save money but also to receiving loans. Mobile banking is also addressing 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 also 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 a rise 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 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. 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 this 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.
In Bangladesh also we have sometimes observed foreign aid serving the interests of the donor more than the recipient. Critics have also argued that some of the foreign aid is stolen by corrupt governments and officials, and that higher aid levels sometimes erode the quality of governance.
Economists also sometime refer to some other drawbacks within the aid system- that aid is excessively directed towards the salaries of consultants from donor countries and that aid is sometimes not spread properly, neglecting vital, less publicized areas and that aid is not sometimes properly coordinated among donors, leading to a plethora of disconnected projects rather than unified strategies. One hopes that our experience from the past will help us to overcome such challenges- particularly in the eradication of poverty- both rural and urban.
The last issue that needs to be addressed for poverty eradication in Bangladesh as in other developing countries is the question of gender equality and mainstreaming. We have already moved forward in this regard. We have already taken several inter-active and positive steps and I am confident that our authorities will continue to enable the women to access services to enhance their well-being. The decision to fix the lowest age of marriage at 18 will be a reassuring measure and will help us to attain the SDGs.
We have to also remember that within the poverty reduction matrix, making employment opportunities available is just as important as increasing income and access to basic needs. In this context, Bangladesh has focused on universal public education. This plays a significant role in preparing youth for basic academic skills and many trade skills as well.
Apprenticeships clearly build needed trade skills. If modest amounts of cash and land can be combined with a modicum of agricultural skills, subsistence can give way toward modest societal wealth. Similarly, education for women will allow for reduced family size—an important poverty reduction event in its own right.
Muhammad Zamir, a former Ambassador, is an analyst specialized in foreign affairs, right to information and good governance, can be reached at <[email protected]>
