DHAKA, June 18 (BSS) – The Asian Development Bank (ADB) today approved a US$250 million policy-based loan to the government of Bangladesh to help finance reforms aimed at improving the inclusiveness and responsiveness of the country’s social development and resilience program.
Bangladesh has made remarkable progress in reducing poverty over the past two decades, said an ADB press release here.
The poverty incidence declined from 48.9 percent in 2000 to 20.5 percent in 2019, it added.
However, while many people were lifted from extreme poverty, a considerable number continue to live at a subsistence level, ADB said.
The coronavirus disease (COVID-19) pandemic has significantly affected the socioeconomic situation of Bangladesh with the decline of the country’s gross domestic product to an estimated 5.2 percent in fiscal year (FY) 2020 from 8.2 percent in FY 2019.
“Enhancing social protection support is critical to cushioning the effects of the pandemic,” said ADB Senior Social Sector Specialist for South Asia Hiroko Uchimura-Shiroishi, adding: “ADB supports the government’s intention to leverage the COVID-19 pandemic as an opportunity to strengthen its social protection programs as an essential means of building the resilience of the poor and supporting an inclusive recovery.”
The Strengthening Social Resilience Program will include institutional and policy reforms to address cross-sector issues of social development in Bangladesh. These include improving the coverage and efficiency of the social protection system through improving the administrative efficiency of social protection management.
The program will expand its outreach to vulnerable women by increasing the coverage of both the old age allowance for women over 62 and the allowance for widowed, deserted, and destitute women in 150 sub-district units or upazilas, according to the release.
Other reforms include promoting the use of mobile financial services and simplifying identification and documentation requirements for opening a bank account and broadening the scope of social protection from mere poverty relief to life cycle social and health responses, including social insurance system.
ADB will also provide a technical assistance grant to support program implementation, policy analyses, and capacity development for social development-related ministries. The technical assistance is estimated to cost $1.2 million which will be financed on a grant basis by the Japan Fund for Poverty Reduction.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members – 49 from the region.