SOCIAL SAFETY NET PROGRAMMES IN BANGLADESH*

1. SOCIAL SAFETY NET PROGRAMMES IN BANGLADESH* Barkat-e-Khuda** *Paper prepared for the UNESCO – ICSSR Research Meeting on Social Protection Policies in South Asia, organized in collaboration with the Center for the Study of Regional Development (JNU), the Institute of Human Development (IHD) and the Social Protection in Asia network (SPA) on 18 – 19 March 2010 at ICSSR, New Delhi. **Professor of Economics, Dhaka University, Bangladesh

2. Introduction Publicly-funded, non-contributory transfer programmes targeted to the poor and vulnerable populations have a long history. Such programmes are quite common in developed countries, and are also increasingly becoming common in developing countries. Such programmes should cover three groups: the chronic poor, the transient poor, and other vulnerable groups. Such programmes should follow both the “promotion approach” and the “protection approach”, and be motivated by both equity and efficiency considerations.

3. Introduction (contd.) At the minimum, such programmes should consist of two main elements which help to realize respective human rights, also referred to as “social protection floor”. Social safety net programmes are not without controversy. The proponents of such programmes consider them as a means of ensuring that the benefits of economic growth are shared widely among the population. The critics, however, consider such programmes as wasting scarce public resources and question whether resource-poor countries can afford such programmes.

4. Country Context Bangladesh has a large population, with increasing numbers of both the young and the older population groups. The average farm size is much smaller now than before, with increasing landlessness and rise in the number of marginal farmers. Bangladesh is prone to natural disasters and is being affected by river erosion, thereby forcing people to migrate to other areas, especially to the over-crowded Dhaka city. Until the late 1980s, literacy level and school enrollment were quite low, especially at the secondary level and more so for girls. Bangladesh has achieved some improvement in the health sector in Bangladesh. However, there are areas of concern: high maternal mortality and double burden of diseases.

5. Country Context (contd.) 85 percent of births take place at home and only18 percent of babies are delivered by medically trained providers. The labour force participation rate is 59 percent: male: 87 percent and female only 29 percent The total employed labour force was around 47 million in 2006: males 36 million and females only 11 million. Female employment is largely poverty-driven. Most employment is in the informal sector (about 80%). Unemployment rate is 4 percent. However, there is considerable underemployment (25%), significantly higher among females (68%) than males (11%), and higher in rural (28%) than urban areas (14%). Forty percent of the population lives below the poverty line.

6. Social Safety Net Programmes (SSNP) The priority of the present government is poverty reduction by ensuring social security and empowerment and employment generation. In the FY2008-09 budget, the government allocated 15.2% of the total development and non-development budget and 2.25% of the total GDP for social security and social empowerment. The social safety net measures are broadly divided into four types: provision of special allowances for the various underprivileged groups employment generation for poverty reduction food security based activities provision of education, health and training SSNP have been undertakenby thesuccessivegovernments; however, those are predominantly rural-based.

7. SSNP (contd.) • Some of the major past/ongoing SSNP can be divided under four broad categories: • employment generation programmes • programmes to cope with natural disasters and other shocks • incentives provided to parents for their children’s education • incentives provided to the families to improve their health status

8. SSNP (contd.) Employment Generation The FFW programme has generated seasonal employment for large numbers of people. Also, it produced other benefits. Several constraints limit the potential benefits of the FFW programme. Leakage is quite high.

9. SSNP (contd.) The Rural Development (RD) Programme helped in building public infrastructure and developing other natural resources. Leakage is quite high. The Employment Generation Programme (EGP), developed to respond to an emergency situation resulting from the hike in food prices, faced various problems re: beneficiary selection, types of activities to be undertaken, delayed fund disbursement, etc.

10. Food-security: One-quarter of the Vulnerable Group Feeding (VGD) Programme women were quite old. The foodgrain delivery system was not very well organized. The beneficiaries themselves were not fully aware regarding the exact amount of foodgrain to be received. The quality of foodgrain was not always good. Leakage:15%.

11. SSNP (contd.) • In response to the 1998 devastating floods, the government used two direct transfer relief programmes (GR and VGF) to mitigate the sufferings of the seriously-affected households. • Transfers were small compared to the needs of the households. • Leakage: 20%. Incentives for schooling: • The government undertook a number of programmes to increase enrollment in primary and secondary schools, especially for girls by providing stipends. • Such projects achieved their desired objectives: increased enrollment and attendance in primary and secondary schools and closing the gender gap. • Other low-income countries could replicate this programme.

12. SSNP (contd.) The SFP, targeted to schools in chronically food insecure rural areas and urban slums in Dhaka city, provided fortified biscuits to elementary school children six days a week during the school year. The SFP achieved its desired objectives of increased enrollment and attendance and improved nutritional status and health of children attending schools. Other low-income countries with low school enrollment in elementary schools and low child nutritional status could replicate this programme. Incentives for better health: The government is committed to achieving the MDG goal of reducing maternal mortality to 143 (from over 300 now) by 2015.

13. SSNP (contd.) Accordingly, the government has taken up a number of measures, including the provision of maternal health voucher scheme (MHVS). The overall goal of the MHVS is to reduce maternal mortality among poor and vulnerable pregnant women by increasing awareness and demand for maternal health services among poor pregnant women, and increasing institutional delivery. The MHVS components include various maternal health services and small cash payments to the beneficiaries There was an increased awareness and demand among pregnant women for ANC and delivery at the facility level, resulting in increased access to, and utilization of, maternal health services by poor pregnant women and those in the hard-to-reach areas. Other low-income countries with high neonatal and maternal mortality could replicate this programme

14. Lessons Learned Several important lessons have been learned from the various SSNP in Bangladesh. These include the need for: • high political commitment • sustained strong commitment of key decision-makers • developing strong partnerships, both at the national and lower levels of government • ensuring role for all concerned • better targeting of the beneficiaries • sustained interest of the beneficiaries and their families in the perceived and actual benefits • minimizing leakages

15. Lessons Learned (contd.) better coordination among different agencies in implementation activities addressing various constraints hindering effective implementation improved monitoring and supervision at different levels adequate time for preparation following proper process of selection of the types of work to be undertaken rather than on an ad hoc basis ensuring timely transfer of funds at the field level

16. Lessons Learned (contd.) considering different rates rather than flat rate, based on coverage and needs at the field level improving the foodgrain delivery system including larger cash transfers or credit as part of the medium-term relief to the flood-affected households xvii reviewing appropriate fee structure for greater involvement of the private sector giving adequate consideration to patient safety concerns and improvement in quality of care and services.

17. Conclusions and the Way Forward Despite some leakages and constraints hindering effective implementation of the SSNP in Bangladesh, several SSNP have achieved their desired objectives Those which have not fully achieved their desired objectives should be able to do so, if constraints hindering their effective implementation are duly addressed. Such programmes need to be continued and further strengthened in the future, given the unfavourable socio-economic and health conditions of a sizeable proportion of the Bangladeshi population. Such “promotional” and “preventional” programmes deserve high priority to ensure the rights and entitlements of the disadvantaged groups, including those living in informal settlements in urban areas.

18. Conclusions and the Way Forward (contd.) The programme efficiency should be enhanced to reduce leakages. The government allocates only 2% of its GDP to the SSNP. The government should increase its allocation to such programmes, if the government’s commitment of poverty reduction from 40% in 2008 to 15% by 2021 is to be achieved. For this, the government should mobilize additional domestic resources and motivate the development partners to provide the required resources.

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