Measuring Multidimensionality. State of Poverty in Bangladesh 2013

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1 Measuring Multidimensionality State of Poverty in Bangladesh 2013

2 Measuring Multidimensionality State of Poverty in Bangladesh 2013 Shrabon Prokashani 132 Aziz Super Market (2nd floor) Shahbag, Dhaka 1000 Bangladesh Telephone: (88 02) Mob: First published: October 2013 Unnayan Onneshan 16/2 Indira Road, Farmgate, Dhaka-1215, Bangladesh. Cover designed by Rabin Ahsan The Unnayan Onneshan is a progressive think-tank that undertakes research for advancing ideas and building constituencies for social transformation. The institute advances critical scholarship, promotes inter-disciplinary dialogue and amplifies grassroots perspectives. The public-interest research institute works in collaboration with national partners, international organisations and leading universities. The Unnayan Onneshan was registered in 2003 as a not-for-profit trust to contribute towards search for solutions to endemic poverty, injustice, gender inequality and environmental degradation at the local, national and global levels. The philosophy and actions of the organisation focus on pluralistic, participatory, and sustainable development. We seek to challenge the narrow theoretical and policy approaches derived from unitary models of development. The mission is to advance science-led independent research, evidence-based new approaches to public policies, innovative alternative solutions on the ground, and empowering capacity building and community-based management for contributing towards progressive social transformation. The vision is an egalitarian world free from all forms of inequality, injustices, discrimination and exploitation. All rights are reserved. No part of this publication may be reproduced or transmitted in any from or by any means without prior permission in writing from the publisher. Any person or organization that does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. ISBN: Price : Tk. 350, $ 5, 8 Published by Rabin Ahsan

3 The SPB 2013 Team EDITOR Rashed Al Mahmud Titumir COORDINATOR K. M. Mustafizur Rahman Team Members Md. Al Amin Islam Md. Ayub Ali Shahid Md. Adnan

4 Contents List of Figures List of Tables List of Abbreviations Preface Chapter 1 POVERTY MEASUREMENTS: COMPARING DIFFERENT APPROACHES Rashed Al Mahmud Titumir & K.M. Mustafizur Rahman IX XI XIII XV Chapter 5 SOCIAL EXCLUSION AND POVERTY IN BANGLADESH Md. Ayub Ali Chapter 6 AN INTROSPECTION FOR A ZERO POVERTY DEVELOPMENT FRAMEWORK Rashed Al Mahmud Titumir & K.M. Mustafizur Rahman Chapter 2 STATE OF POVERTY IN BANGLADESH: AN APPLICATION OF MONETARY APPROACH Md. Al Amin Islam Chapter 3 CAPABILITY APPROACH AND STATUS OF POVERTY IN BANGLADESH Md. Al Amin Islam Chapter 4 PARTICIPATORY APPROACH TO POVERTY MEASUREMENT IN BANGLADESH Md. Ayub Ali

5 List of Figures Figure 2.1 Trends of poverty in Bangladesh 22 Figure 2.2 Incidence of poverty by the size of 26 household Figure 2.3 Incidence of poverty by the level of 29 Figure 2.4 Monthly household income, 31 expenditure, inflation and incidence of poverty Figure 2.5 Depth and severity of poverty 33 Figure 2.6 Income, expenditure, food inflation and calorie intake 35 Figure 2.7 Food poverty trend in Bangladesh 37 Figure 2.8 Food poverty and hunger in Bangladesh 39 Figure 3.1 Life expectancy at birth 49 Figure 3.2 Per capita gross national income 50 Figure 3.3 Expected years of schooling 51 Figure 3.4 Mean years of schooling 52 Figure 3.5 Trends of human development index 53 (HDI) in Bangladesh Figure 3.6 HDI and inequality adjusted HDI of 54 Bangladesh Figure 3.7 Maternal mortality ratio (per 100, live births) Figure 3.8 Share of adolescent fertility rate to total fertility rate 57 Figure 3.9 Labour force participation rate in 58 Bangladesh Figure 3.10 Participation of women in national 59 parliament Figure 3.11 Gross enrollment rate at secondary and 61 higher Figure 3.12 Gender inequality index 63 Figure 4.1 Social participation 72 Figure 4.2 Literacy rate 75 Figure 4.3 Literacy rate (7+ years) 76 IX X Figure 4.4 Literacy rate (15+ years) 77 Figure 4.5 The rate of participation at primary 78 Figure 4.6 The rate of participation at secondary 79 Figure 4.7 The rate of participation at higher 80 secondary Figure 4.8 The rate of participation at tertiary 81 Figure 5.1 Percentage of widowed, divorced and 101 separated people Figure 5.2 Rate of reduction on poverty among 102 widowed, divorced and separated people Figure 5.3 Increase rate of aged people 103 Figure 5.4 Trend of poverty among the landless 105 people (upper poverty line) Figure 5.5 Rate of increase among the lowest percent income groups Figure 5.6 Rate of increase among the lowest percent income groups by regions Figure 5.7 Unemployed people in Bangladesh 109 Figure 5.8 Unemployment by region 110 Figure 5.9 Unaffordability to take medicine by 111 region Figure 5.10 Trend of poverty among the uneducated 112 household head Figure 5.11 Net percentage of population suffering 113 from disabilities in 2010 Figure 6.1 Composition of the Multiple Poverty 125 Index- Dimensions and Indicators Figure 6.2 Labour in informal sector 131 Figure 6.3 Incidence of Poverty by Division 133 Figure 6.4 Yearly Agricultural Land for Every Person (ha per person) in Bangladesh 133

6 List of Tables Table 1.1 Comparison of different approaches to poverty 9 Table 6.2 Income inequality in Bangladesh 132 Table 6.3 Indicators of rights 140 Table 6.4 Indicators of equality 142 Table 6.5 Indicators of justice 144 Table 2.1 Divisional differences in poverty 24 Table 2.2 Table 3.1 Table 4.1 Table 4.2 Table 4.3 Table 5.1 Table 5.2 Table 5.3 Table 6.1 Incidence of poverty by ownership of land Persons (15 years and above) employed in major occupation (in thousands) Population in employment and in working-age (in millions) Frequency distribution of employment types Binary logistic regression analysis of poverty alleviation, controlling for selected covariates Rate of increase of aged (65+years) people from to 2010 by regions Rate of increase in household having no land in the rural areas The percentage of population without Changes in employed and unemployed population compared to (in percent) XII XII

7 List of Abbreviations AFR Adolescent Fertility Rate AIDS Acquired Immunodeficiency Syndrome BBS Bangladesh Bureau of Statistics BDT Bangladeshi Taka CBN Cost of Basic Needs CI Confidence Interval FAO Food and Agriculture Organisation FESP Female Secondary Education Stipend Project FSSAP Female Secondary School Assistance Programme FSSP Female Secondary School Project GDI Gender Development Index GDI Gender-related Development Index GDP Gross domestic product GEM Gender Empowerment Measure GHI Global Hunger Index GII Gender Inequality Index GNI Gross National Income GoB Government of Bangladesh HDI Human Development Index HIV Human Immunodeficiency Virus HSC Higher Secondary Certificate IFAD International Fund for Agricultural Development IHDI Inequality-adjusted Human Development Index IHDI Inequality-adjusted Human Development Index MDG Millennium Development Goal NGOs NORAD OLS PG SE SPG SPSS SSC STDs STIs TFR UDHR UNDP USD WB Non-Governmental Organizations Norwegian Agency for development Ordinary Least Square Poverty Gap Standard Error Squared Poverty Gap statistical package for social science Secondary School Certificate Sexually Transmitted Diseases Sexually Transmitted Infections Total Fertility Rate Universal Declaration of Human Rights United Nations Development Programme United States Dollar World Bank XIII XIV

8 PREFACE The book contains measurements of poverty through applications of major approaches, first of its kind in Bangladesh. Measuring poverty by a single indicator or approach namely monetary approach falls short of representing the dynamics of poverty within a country. The book reveals that the measurement of poverty is complex and there are various problems associated with the different approaches of measuring poverty. Hence, the chapters provide trends of poverty in Bangladesh and identify analytical limitations of the mainstream approaches and intervention strategies. Finally, the book proposes a set of indicators based on new five fundamental principles of rights, equality, justice, sustainability and partnership for development through historic responsibility for a zero-poverty post 2015 development framework. The findings suggest that Bangladesh has made progress in reduction in income-poverty since independence, yet the rate of decrease has slowed down in recent years. This is mainly associated with challenges like unemployment, inequality, environmental degradation and climate change, XV decreasing agriculture land etc. The current anti-poverty strategies suffer from a number of weaknesses which can be classified into four broad categories. First, the strategies have a number of embedded weaknesses in its instruments. Second, the central framework seems to promote dominant neoliberal policies which have questionable effects on people s lives and development. Third, the institutions have failed to address the power imbalances that exist between different classes. Finally, the orthodox prescriptions have intrinsic inabilities to address long-term structural bottlenecks. Fundamentally, poverty is interlinked to, and emanates from, the functioning of society and such comprehension is strikingly different from those based on orthodox formulations. This is a product of a team effort. We acknowledge valuable contribution from the young and energetic team members. Special thanks go to Shahid Md Adnan and A. Z. M. Saleh for their support in giving an excellent outlook to the final version. We also recognise the valuable services provided by Md. Abu Hossain, Azmol Hossain, Nayeem Mohammad Firoz and Md Rejaul Karim. We would also like to express gratitude to the staff of the Shrabon Prokashani, particularly its energetic publisher Robin Ahsan for their excellent support and services. XVI

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