Bangladesh's extreme poverty rate drops to 12.9 percent, says World Bank

[Homo Sapiens]

http://bdnews24.com/economy/2016/10...ty-rate-drops-to-12.9-percent-says-world-bank
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Bangladesh's extreme poverty rate drops to 12.9 percent, says World Bank
Chief Economic Correspondent bdnews24.com

Published: 2016-10-03 13:48:04.0 BdST Updated: 2016-10-03 15:39:52.0 BdST

Bangladesh's extreme poverty rate has dropped to 12.9 percent of the total population in 2015-16, the World Bank says.

In its 'Bangladesh Development Update', released on Monday, the multi lateral lending agency said it has come down from 13.8 percent in the previous 2014-15.

WB Dhaka office's Lead Economist Zahid Hussain highlighted the key features of the report on Monday at a media conference.

He said they have calculated the rate of extreme poverty based on Bangladesh's 7.1 percent GDP growth in FY 2016.

"Bangladesh's achievement is better than India, Pakistan and Bhutan," said Hussain, the author of the report launched on Monday.

The World Bank said in a statement that under the new poverty line based on 2011 purchasing power, 28 million, or 18.5 percent of Bangladeshis lived in extreme poverty in 2010.

More than 16 million people in Bangladesh graduated from extreme poverty between 2000 and 2010.

“The success of Bangladesh’s development experience in innovations such as conditional cash transfers, gender equity in education, and successful family planning is reflected in its notable reduction of poverty and improvement in the lives of its citizens,” the statement quoted WB Country Director Qimiao Fan saying.

Also read:

 

[Homo Sapiens]

05:00 PM, October 03, 2016 / LAST MODIFIED: 05:18 PM, October 03, 2016
Bangladesh can end extreme poverty by 2030: WB
Bangladesh 64th among 154 poorest country, reports say
Star Online Report

The World Bank said Bangladesh has done an impressive job in reducing poverty over the last decade and has the potential to end extreme poverty by 2030 if it takes firm steps to make growth more inclusive to benefit all Bangladeshis.

Two new reports titled ‘Bangladesh Development Update’ and ‘Poverty and Shared Prosperity 2016: Taking on Inequality’, published today, find that Bangladesh is making sustained progress in poverty reduction and increasing opportunities.

Under the new $1.90 poverty line based on 2011 purchasing power, 28 million, or 18.5 percent of Bangladeshis lived in extreme poverty in 2010, according to the reports.

More than 16 million people in Bangladesh graduated from extreme poverty between 2000 and 2010, the reports said.

Achieving the goal of reducing extreme poverty to less than 3 percent of Bangladeshis by 2030 will require economic growth becoming more inclusive with the poorest 40 percent of society receiving greater benefits from development.


Video
To End Extreme Poverty by 2030, We Need to Tackle Inequality
However, the reports also show that the country is currently the 64th poorest out of the 154 countries and much remains to be done. The development update stresses increasing resilience to security, financial, and trade shocks along with weaker than expected global trade and growth.

To move to the next level and realise its goals of becoming a middle income country by 2021 and overcoming extreme poverty by 2030, the country needs to sustain its economic and remittances growth, create more and better jobs, focus on energy and transportation infrastructure, and make progress on improving the quality of health and education.


World Bank Group President to visit Dhaka later this month
World Bank Group President Jim Yong Kim plans to travel to Bangladesh later this month as part of a global End Poverty Day campaign. His visit is intended to draw attention to Bangladesh’s impressive record in dramatically reducing extreme poverty.

“I’m very much looking forward to seeing firsthand Bangladesh’s progress in improving the livelihoods of tens of millions, empowering women, and enhancing the quality of education,” Kim said.

“Many developing countries in the world can learn important lessons from Bangladesh to reduce extreme poverty and to promote sustainable development,” he added.
http://www.thedailystar.net/country/bangladesh-can-end-extreme-poverty-2030-wb-1293463

 

[TopCat]

For extreme poverty 12.9 is still too high. With the current rate it will take another 13 years to bring that down to zero.

For extreme poverty 12.9 is still too high. With the current rate it will take another 13 years to bring that down to zero.

Saying so, these ppp and cash based poverty calculation is grossly flawed. They should use commodity and caloric based poverty calculation.

 

[kobiraaz]

The new 5 year plan which ends in 2020 Targets extreme poverty rate 8.5% after 2020 which will be achieved surely.

@Nilgiri Could you help us to find out the inconsistencies in this report?

 

[Nilgiri]

For extreme poverty 12.9 is still too high. With the current rate it will take another 13 years to bring that down to zero.



Saying so, these ppp and cash based poverty calculation is grossly flawed. They should use commodity and caloric based poverty calculation.

That is what MMRP methodology uses. BD should adopt that.

@Nilgiri Could you help us to find out the inconsistencies in this report?

Given World Bank in its report clearly states:

India’s poverty rate, the result at the US$1.90 poverty line would have been a substantially lower 12.4 percent in 2011/2012. The application of the methodology is still being tested. Its adoption would eventually lead to a substantial downward revision of the poverty numbers in India.

It means two things:

a) The measurement of poverty is in transition right now. I only really care about World Bank's official poverty report based on MMRP due later. Transient reports based on transient methodologies have only limited utility. It will be more clear from 2020 onwards as there is a fundamental series break (just like done with HDI some years back).

b) This quote by this person:

"Bangladesh's achievement is better than India, Pakistan and Bhutan," said Hussain, the author of the report launched on Monday.

is patently wrong.

@Khan_21 @LA se Karachi

This is the only such report I could find from this year titled this way:

http://documents.worldbank.org/cura...t-update-Moving-forward-with-fading-tailwinds

http://documents.worldbank.org/cura...-Bangladesh-Development-Update-April-2016.pdf

It has nothing in its body about these figures in the OP.

The only statement of interest I could find was:

By the end of 7th FYP, poverty and extreme poverty will be lowered to 18.6 percent and 8.9 percent respectively.

 

[Cyberian]

Well done Bangladesh, Mubarrak ho.

 

[Pandora]

What is the scale for extreme poverty? Is it same as 3$ a day or less?

 

[Russell]

No need for WB statistics - the eye test alone tells us extreme poverty has been cut drastically in the last 15-20 years.

There was a time when beggars would go around door to door asking for breakfast and lunch - that 'tradition' is virtually gone. And I don't mean just in Dhaka city, where due to apartment security guards, we don't see beggars anymore (traffic signals and the footpaths are their hangout spots now) . But, even in smaller towns and villages.

 

[Michael Corleone]

@Basel just so you don't boast a lot... mutual information sharing

 

[Nilgiri]

No need for WB statistics - the eye test alone tells us extreme poverty has been cut drastically in the last 15-20 years.

There was a time when beggars would go around door to door asking for breakfast and lunch - that 'tradition' is virtually gone. And I don't mean just in Dhaka city, where due to apartment security guards, we don't see beggars anymore (traffic signals and the footpaths are their hangout spots now) . But, even in smaller towns and villages.

Welcome back!

 

[kobiraaz]

What is the scale for extreme poverty? Is it same as 3$ a day or less?

$3 is the poverty level which is @present 23%. 1.9$ is the extreme proverty level which is @present 13%.

 

[Russell]

Welcome back!

Lord knows for how long...The ban hammer keeps being brought down on me and simply because I speak the ugly truth

 

[kobiraaz]

Lord knows for how long...The ban hammer keeps being brought down on me and simply because I speak the ugly truth

Lots of Indians have been using this forum for years without getting Banned. Mods never ban anyone for rational criticism.

 

[Nilgiri]

Lord knows for how long...The ban hammer keeps being brought down on me and simply because I speak the ugly truth

I am taking it easy and reading more and posting less because of it.

 

[Nilgiri]

This is not correct. We have discussed this before. There is no way that Bangladesh has cut the percent of people living on $1.90 or less a day from 43.7% to 13% and those on living on $3.00 or less a day from 77% to 23% in just 5 or 6 years. That's ludicrous. No country could do that. Not even China, Japan, or South Korea back in their high growth years. The definition of extreme poverty being used by Bangladesh does not correspond to these figures. The World Bank continues to show this:

http://databank.worldbank.org/data/reports.aspx?source=poverty-and-equity-database

Its why we will have to wait on this price level data that has been vetted supposedly by the ADB.

The World Bank is generally more discerning and cautious, I would like to see how it materialises over the next few years in their own reports.

What it suggests was the poverty was never as high as 43% or whatever....rather than a crushing drop like you are saying.