Over 6cr BD people vulnerable to sliding back into poverty: WB
Reza Mahmud :
Political corruption is making Bangladesh’s economic development non-sustainable, say economists citing the World Bank (WB)’s latest report that showed one-third of the country’s population vulnerable to sliding back into poverty.
The WB report said, despite years of development gains, nearly 6.2 crore people — about one-third of Bangladesh’s population — remain highly vulnerable to falling back into poverty if struck by illness, natural disasters, or other economic shocks.
Economists said, huge diversities of political corruptions are prevailing in the country which is keeping its economic progress legging behind.
When contacted, Dr. Zahid Hussain, former Lead Economist of the WB, Dhaka Office, told The New Nation on Tuesday that, “The WB in its report has not mentioned ‘corruption’ as a word which played the vital role behind the non-sustainability of the country’s economy.”
Political corruption has made the economic sustainability in various sides of the country including development projects to investment in education, health and electricity, Dr. Zahid said.
Contacted, eminent economist Professor Dr. Muinul Islam told The New Nation that, “It is not difficult to get the reason behind the risk of poverty in Bangladesh.”
He said, about 6pc of the population become lower of poverty level in the past one year.
The WB report unveiled on Tuesday warns that poverty reduction has slowed since 2016, with projections indicating that poverty may even rise between 2022 and 2025.
From 2010 to 2022, Bangladesh made substantial progress, lifting 3.4 crore people out of poverty and significantly improving access to electricity, education, sanitation, and other essential services.
Extreme poverty declined from 12.2% to 5.6%, and moderate poverty from 37.1% to 18.7%, the report titled “Bangladesh Poverty and Equity Assessment 2025” noted.
However, the pace of improvement has weakened. Since 2016, economic growth has become less inclusive, and income inequality has widened as wealthier households captured a larger share of income growth.
The World Bank observed that while rural areas remained the main driver of poverty reduction — largely due to agriculture — the progress in urban areas lagged. By 2022, one in every four poor individuals lived in a city.
The way forward The assessment highlights four priority policy areas to accelerate poverty reduction and reduce inequality:
Strengthen the foundations needed for productive employment, Create more and better jobs for the poor and vulnerable, Ensure markets work for the poor through investments in modern processing and supportive regulations, and Build resilience through stronger fiscal policies and better-targeted social protection programmes.
“Bangladesh has long been recognised for its achievements in reducing poverty.
But changing global conditions, heightened climate vulnerabilities, and slower job creation have weakened labour income,” said Jean Pesme, World Bank country director for Bangladesh and Bhutan. “A business-as-usual approach will not accelerate poverty reduction.”
He emphasised that expanding job opportunities-especially for youth, women, and marginalised groups-is the most effective path to reducing poverty and protecting human dignity.
A pro-poor, climate-resilient, employment-oriented strategy is essential for inclusive and sustainable growth, he added.
The World Bank found that job creation in manufacturing has stalled, with employment shifting to less productive sectors-disproportionately affecting women and young people.
One in five young women is unemployed, while one in four educated young women remains out of work.
In urban areas, employment growth outside Dhaka has stagnated, and female labour-force participation continues to fall. Half of all youth aged 15 to 29 are employed in low-paying jobs, indicating significant skill mismatches.
“For millions of Bangladeshis, migration-domestic and international-serves as an effective path out of poverty,” the report states. Remittances have reduced poverty, especially among poorer households.
However, domestic migrants often live in overcrowded, inadequate urban conditions, while international migration remains accessible mostly to wealthier families because of high upfront costs.
Though Bangladesh has expanded its social assistance coverage, the programs remain poorly targeted and inefficient.
In 2022, 35% of the richest households received social protection benefits, while half of the poorest were excluded.
Subsidies are similarly misdirected, with wealthier families receiving the majority of support for electricity, fuel, and fertiliser.
“Bangladesh has made progress in reducing regional disparities, particularly the traditional East-West divide,” said Sergio Olivieri, World Bank senior economist and co-author of the report.
“However, climate risks are creating new spatial inequalities, especially between rural and urban areas.”
He added that Bangladesh can regain momentum in poverty reduction by implementing innovative policies that improve connectivity, expand quality urban employment, develop pro-poor agricultural value chains, and ensure that social protection systems effectively reach those who need them most.