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ALLEVIATING POVERTY IN BANGLADESH

Government and Opposition Must be Clear about Policy Premises

POLICY ISSUES

Rehman Sobhan
**This Is the first part of a three-part series on alleviating poverty in Bangladesh. The second part will be published tomorrow.
THE Bangladesh Inat itule for Development Studies (BIDS) organised s workshop on 13 and 13 March to present the findings of a two year study on an Analysis qf Poverty Trends In Bangladesh. The study Involved Dr Mahabub Hossain former DO. BIDS. Dr. Hussain Zillur Rahman. Dr. Btnayak Sen. Dr. Omar Haider Chowdhury and Ma. Shamtm Hamid. The work rank* as one of the beat to date tn Bangladesh on reviewing poverty trends, analysing the cauaea of poverty and from this identifying an agenda for poverty alleviation The work from the study provided a substantive input into the Task Force Report on Poverty Alleviation. where Dr. Mahabub Hossain was the convenor. which spelt out the basis for an immediate action plan for an assault on poverty in Bangladesh during the 1990s.
If one draws upon the findings of this study questions may be raised on the definitive character of the poverty estimates of the study and particularly Its trend over time. One can also raise questions about the comprehensiveness of the explanatory powers of the model defining the dynamics of poverty. But until some one comes foreword with more reliable primary data on household income and further refines their tools for analysing poverty the BIDS study will serve as a landmark study on poverty and will remain a valuable resource for defining a strategy for poverty alleviation In Bangladesh tn the near future.
That the country needs a viable strategy for poverty alleviation is evident from the fact that we still have close to 40% of our population living in conditions of poverty. This is one of the highest level of poverty in South Asia itself host to the largest share of the world's poor. Given the most conser vative estimate used in the study of people living in con ditlons of poverty, in absolute numbers this Involves a lot of people, enough to generate concern at the potential for social unrest originating from such a large number of people living in condiUorts of chronic insufficiency
Statements f Intent
The incumbent government indicated some concern for the problem of poverty when the Prime Minister agreed to Inaugurate the workshop and before a large audience spelt out some quite positive state menta about the commitment of her government to alleviate poverty. Similar statements were registered by the Planning Minister who chaired the concluding session of the workshop on 13 March which extended from 3 pm to 8 30 pm on a Friday afternoon during the month of Ramaan and was attended by. among others, a number of senior civil servants as well as the Resident Representatives of the World Bank and the UNDP tn Dhaka
The concluding session of the workshop was also attended by Mr. Tofeyl Ahmad a front bench Awaml League Member of Parliament He too spent 5 hours participating In the discussion. The day before the workshop Awaml League Working Committee had also .been tn session discussing Its economic platform where poverty alleviation was placed at the top of the agenda.
It would this appear that the government, the principal opposition party and the donors have all reaffirmed a commitment to alleviate poverty as Indeed have all segments of the senior bureaucracy. academics and professionals. One cannot dismiss these commitments as mere rhetoric In the absence of a concrete agenda for action The Task Force report on Poverty Alleviation has put on record some quite concrete suggestions for action and even costs these Initiatives at about Tk. 1200 crores, per year which seems a quite modest sum. around 12% of total public expenditures in the revenue and development bud-gets.
The BIDS study and the Task Force Report are hardly the last word on the subject but if anyone is really interested In doing something about poverty then they pro vide the basis for a serious dis cussfon of the problems and possibilities within the gov emment, in parliament, in the media and tn various public fora This discussion can iden tify the weaknesses In the available evidence which can underwrite concrete Issues for further study It can spell out some of the practical dtfficul ties for a government to realise the pohry actions suggested In the Task Force report but can at the same time Identify alternative measures. What is however central to our discussion is that neither the gov eminent, nor the opposition, nor the donors, nor the public can lake refuge in the plea that we did not know the extent of the problem of poverty, nor Its nature, and that practical suggestions were not at hand to suggest remedial actions It thus follows that In the face of the available evidence and concrete proposals for action to tackle poverty failure to act on the part of the government within the framework of the forthcoming ADP for 1992-93 or of the Opposition to raise this Issue tn Parliament will be Interpreted as a failure of will and political Intent on both their parts Public statements by both parties on poverty alleviation will thus be seen as rhetorical tn content with lit lie attempt by them to Invest either their political authority or In the case of the govern ment their budgetary resources to effectively tackle the social and moral disease of poverty.
What Indeed may the gov emment and opposition do tn the next 3-4 months to regls ter their commitment to the task of poverty alleviation? In the remainder of this discussion 1 will spell out In sum maty form a possible agenda for action for the concerned parties, drawing heavily upon the findings of the BIDS study and the recommendations of the Task Force report on Poverty Alleviation
The Premise of a Policy for Poverty Alleviation
Both parties should be clear about the premise for taking up a position on poverty alleviation Since both the govern menl and opposition came to parliament with the votes of what were mostly people who fall below the poverty Une. they have a democratic responsibility to Improve the conditions of their con stituenta within the lifetime of this parliament Failure to do so will not only bring the cred Ibillty of the government Into question but may raise doubts about the efficacy of a democratic process where the con cems of the majority of the electorate cannot be effectively registered 1n parliament. If such a parliamentary systems Is ever threatened by the enemies of democracy this same parliament should not be too upset If the same electorate who first challenged autocracy In the streets and then voted this Parliament to power prefers to remain a silent spectator to the demise of what they deem to be a par llament which appears to be insensitive to their deprivations.
The government must also take into account that when they go to the Paris Consortium meeting every year with their begging bowl seek Ing commitments of another S2 billion in aid they do so tn the name of the deprived majority of their population. Whilst successive government may possess many good quail ties of head, heart and appearance the legislatures of moat donor countries do not appropriate funds for such qualities tn the rulers but open their1 purse strings In the expecta tlon that their largesses will Improve the conditions of life of the poor Conspicuous failure to Improve the conditions of life of the poor of Bangladesh over these 20 years could thus be seen as a fraud perpetuated by successive gov ernments tn Bangladesh on the tax payers of the donor coun tries a fraud connived at by the aid bureaucrats of the multilateral institutions and gov ernments of donor countries. Thus the credibility of the GOB. particular donor govern menta. multilateral agencies and Indeed the whole system of aid dependent development will remain In question as along as such hlghlevels of poverty persist In such countries as Bangladesh.
Moving beyond the political compulsion to tackle poverty Is the purely functional need to do so In order to accelerate the development process. A country where the majority of Its population remain too poor to purchase the products of a dynamic agricultural and Industrial sectors cannot prosper unless It can make a breakthrough Into the International market. To feed clothe, house, educate and look after the health of 110 million Bangladesh through generating purchasing power in their hands, provides an unparalled dynamic for sustained growth of the Bangladesh economy
To reallocate resources to the poor will thus not only make good market sense it will also be efficient if we ac cept the prevailing track record of the poor as hard working, creative, self sacrificing. patriotic, productive and above all efficient. Innumerable studies at BIDS and elsewhere have reported on the efficiency of agriculture, particularly small Including tenant farmers, handloom weavers, the Dotal KhaJ entrepreneurs, the versatility of our informal sec for. the spirit of adventure of our migrant workers demon strata the rich potential of the poor segment of our popufo tlon. But this class remains starved of access to public re sources. What resou roes are committed tend to be monopolised by a narrow ehtr This class Is as Inclined to use such public resources or Indeed their directly generated financial surpluses In non productive uses and even export of capital rather than employment creating Investments This class tend Io manage their Investments with no conspicuous efficiency service their loan obligations irregularly If at all and do Huie to establish their competitive worth In the market place The one example to the con trary, the garment exporting Industry have had the advan tage of guaranteed market quotas In the United State, but have still done well In general Ing new avenues of employ ment and export with every little official assistance A so ciety which neglects the hardworking poor, whilst rewarding a largely Indolent af-fiuent class prospering under aid financed state patronage can hardly expect to realise sustained growth, become self reliant or Indeed be taken seriously as an agent of develop ment either by Its own people or In the International community. If we keep this above perspective In mind as the rationale for poverty alleviation strategy In mind then the following agenda for Immediate action may appear both more urgent and relevant for our de vetopment priorities In the 1990s We are pleased to announce that an eminent economist q/ Bangladesh. Prof Rehman Sobhan. now Joins the rank of guest columnists of The Dally Star A former director and now a fellow of the Bangladesh Institute for Development Studies IBIDSI, Prof Sobhan served as a member of the first Planning Commission of Bangladesh and. some 20 years later, was appointed as an Adviser to the Interim Government of the Acting President of Bangladesh. Justice Shahabuddln Ahmed. Prof Sobhan will be writing two separate columns for this Star: 'Policy Issues' and somewhat more reflective pieces under the title 'In My View'.