PRSP

(Poverty Reduction Strategy Papers)

Presented by:

Tasnim Islam Tushin Tahmina Binte Shoshi Shompa Shaha Krishna Roy Chowdhury

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Sabikunnahar Koli
Khandakar Sonia Mst. Sharmin Akhter

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Presented For:
Moin Uddin Ahmed Couse instructor: Economy of Bangladesh Course: HE207

PRSP
Conducted every 3 years. In Association with Stakeholders and relevant development partners. From social, cultural & macro economic perspective. Bangladesh achievements: Increased its real per capita income by more than 130 percent. Cut poverty rate by sixty percent. Set to achieve most of the millennium development goals.

Unlocking the Potential: The PRSP Vision

Achievements in the fight against poverty

Reducing total fertility rate from 7.0 to 2.7 Increasing life expectancy from 46.2 years to 66.6 Rate of economic growth increased from an average of 4% in the 1970s to 6% in the 2000 Savings and investment rates increased from below 10 percent each in the 1970s to 24 percent (investment rate) and 30 percent (savings rate) in FY10. Achieving gender parity in primary and secondary education. Tripling of the production of rice, thereby achieving near self-sufficiency in normal production years. Economy is more flexible and resilient, as indicated by the ability to withstand the global financial crisis with minimum adverse effects. More capable of handling natural disasters with minimum loss of life.

Still

Still a low income country with substantial poverty, inequality and deprivation.

Most of the labor force is engaged in informal low productivity and low income jobs.
The access to secondary and tertiary education is limited Quality of education at all levels is deficient. The poor group of the population is severely disadvantaged in terms of ownership of assets and has inadequate access to institutional finance as well as to basic services including quality education, healthcare, water and sanitation. Publicly supported mitigating measures in the form of social protection programs are still inadequate. The quality of labor force is weak due to low access and low quality of education; women are especially lagging behind.

Poverty: A Multidimensional Front

Income levels Initiative horizons Food security

Human security

Poverty

Quality of life

Gender inequalities HR capacities

Asset bases

Just as poverty is multi-dimensional, the battle against poverty too has to be waged on many fronts and with unremitting vigor.

Challenges in crafting a scaled attack against poverty

Lack of better understanding of ground realities

Encyclopaedic wish list hopelessly bereft of any sense of strategic priority

finding the right balance, between growth and welfare objectives Need for credible, conceptually sound and gender-disaggregated benchmarks

Major Determinants of poverty in Bangladesh

Major Determinants of poverty in Bangladesh

Recommendations from findings:

Expansion

programs

of literacy and skill development of basic infrastructure

Provisioning Increase

female education by stipends of basic health service

Expansion Reduce

Infant Mortality Rate

Nations Poverty Situation and Key Dimensions

Poverty Generally measured by:

Income Approach
Peoples own assessment Long-term structural and behavioral trends.

Trends in Income Poverty

Table: Poverty and Inequality in 1990s and 2000s

Trends in Income Poverty

Goal of Vision 2021

Targets if achieved will transform socio-economic environment of Bangladesh from a low income economy to the first stages of a middle income economy. Citizens will have a higher standard of living- They will be better educated, will face better social justice, will have a more equitable socio-economic environment, and the sustainability of development will be ensured through better protection from climate change and natural disasters. Political environment will be based on democratic principles- More emphasis on human rights, freedom of expression, rule of law, equality of citizens irrespective of race, religion and creed, and equality of opportunities. Market economy will persist-The Bangladesh economy will be managed within the framework of a market economy with appropriate government interventions to correct market distortions, to ensure equality of opportunities, and to ensure equity and social justice for all.

The implementation of Vision 2021

The implementation of Vision 2021 Will be done through two medium term development plans, with the first spanning FY11-15The Sixth Five year plan A key focus will be on strategies, policies and institutions to help guide the private sector in helping Bangladesh achieve the goals set in Vision 2021. Fundamental task is to develop strategies, policies and institutions that allow Bangladesh to accelerate growth and reduce poverty.

How to achieve this?

Attain high economic growth such that it provides the foundations for sustainable productive employment and incomes for the growing Bangladeshi labor force. This requires strategies and actions on the: o Demand side of the labor market o Supply side of the labor market Create more employment opportunities in the manufacturing and organized service sectors and allowing a transfer of a large number of workers engaged in low productive employment in agriculture and informal services sector of the economy to these higher income job Enhance the income-earning opportunities of workers remaining in agriculture by raising land productivity and increasing diversification of agriculture production.

How to achieve this?

Increase the export potential and diversify the export base.

More focus on the ability to export well trained skilled and semi-skilled manpower to existing
as well as new destinations. This demographic dividend will need to be properly harnessed. Develop and implement a well thought out education and training strategy and associated policies and institutions. Introduction of appropriate information and communication technology (ICT) based on the implementation of the Digital Bangladesh initiative.

Reduce the growth of population.

Sixth Plans strategies for capacity development consist of four pillars:

Strengthening the civil service- develop a long term program for re-building the civil service that is grounded in the socio-political realities in Bangladesh. This includes merit-based recruitment and promotion strong training ensuring a proper incentive and work environment establishing and enforcing clear rules of business and codes of conduct seeking feedback on performance through a citizens charter. Promoting devolution to local governments- institute strong elected local governments that are vested with adequate financial autonomy and accountability for results. Much of the responsibility for delivering basic services such as irrigation, district roads, education, health, population management, water and sanitation services will progressively be decentralized to local governments.

Sixth Plans strategies for capacity development consist of four pillars:

Strengthening public-private partnerships- Partnership with the private sector for delivery of critical economic services such as electricity and roads through PPP arrangements will be further strengthened on the basis of a well-defined policy and legal framework. Government will build on the existing positive track record of collaboration with NGOs in the delivery of health, education and micro-credit services to further enhance this collaboration. Reforming planning and budgetary processes- efficient planning and budgetary systems can play an important role in helping improve the efficiency of public spending. The Government has been taking a number of steps to improve planning and budgetary processes: o One major initiative is the implementation of a Medium Term Budgetary Framework (MTBF) process as a replacement for incremental budgeting. o A second initiative is to move away from the traditional public-investment focused plans to more strategic and indicative planning that puts emphasis on strategies, programs and policies for the entire economy. o A third initiative is to link better the medium-term development plans to the MTBF process by making the plan a living document with annual review of performance.

The proper implementation of the Plan will require:

Careful monitoring and evaluation of the underlying policies and programs To achieve this, the capacities of the Planning Commission and the line ministries to undertake results-based M&E will be strengthened. Implementation of the Plan will be reviewed on an annual basis. Development spending priorities and allocations will be reassessed on an annual cycle to ensure the consistency of these allocations in light of actual resources that are available.

THANK YOU