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“Taking off from Poverty :
Reducing Risks and Vulnerabilities
Md.Hasan Khaled
General Manager
Palli Karama-Sahayak Foundation (PKSF)
1
Poverty & Vulnerability
Poverty is pronounced
Deprivation in well-being, having multidimensional factors;
Inability to acquire the basic goods and services necessary
for survival with dignity ;
Encompasses low levels of health and education, poor
access to clean water and sanitation, inadequate physical
security, lack of voice, and insufficient capacity and
opportunity to better one’s life. (WB)
Vulnerability refers to the inability to withstand/resist the
effects of an adverse situation.
Risk is the probability of harmful consequences, or expected
losses resulting from natural or human induced hazards and
2
vulnerable conditions.
Relationship :Poverty & Vulnerability
Poverty and Vulnerability are complex and multifaceted
concepts;
Vulnerability is most often associated with poverty
(IRCRCS);
These two are interlinked in such a way that they are in
mutually reinforcing relationship;
Poverty makes people vulnerable to various shocks
while such vulnerabilities further intensify their poverty.
3
Types of Vulnerability
1. Economic Vulnerability;
2. Social Vulnerability;
3. Climate Vulnerability.
Due to complex linkages between vulnerability and
poverty all efforts of poverty reduction should
take into account those factors which increase the
vulnerability of the poor.
4
Economic Vulnerability
Reasons of Economic Vulnerability:
Unemployment;
Low rate of wage;
Erosion of income;
Inflation.
Impacts of Economic Vulnerability. Some Examples:
Poor and middle income people cut food intake, take
lower quality of food or reduce spending on non-food items
to respond to price hike [WB 2008)
 8.5% families (2.5 million) have fallen below
poverty(CPD) global recession;
5
Out of all shocks 22% is health related shocks.
Social Vulnerability
Reasons of Social Vulnerability:
1. Unequal social systems :social interactions,
institutions and systems of cultural dynamics;
2. The socially vulnerable groups are unaware or unable
to articulate own rights;
Impact of Social Vulnerability. Some Examples:
 Dowry;
 Violence against women & children;
Apr. 400 women are victims of trafficking each month;
Boy and girl child workers respectively 73.5% & 26.5%
in the age of 5-17 Years;
An estimated 75% of rural girls in Bangladesh marry
before the age 16.
6
Climate Vulnerability
Manifestations of Climate impacts leading to Vulnerability of
the affected people
Flood
Heat Wave
Tidal Bore
Drought
Frequency,
,Intensity &
Cyclone
Salinity
Cold Wave
Severity.
Impact of Climate Vulnerability. Some Examples:
GDP losses around 1%-2%;
35 million people live in most climate vulnerable costal areas;
8% nearly 12 million people fell below poverty line due to two
floods and cyclone SIDR (MKUBOBP).
7
Poverty & GDP Trend
Years
Upper
Poverty
Reduction of poverty per
annum
GDP Growth
in percentage
Changes of
GDP Growth
1986
51.7
-
3.72
-
1991
58.8
1.42*(FLOOD 88)
3.74
0.0
1996
51.0
1.56
4.40
0.66
2000
48.9
0.28 (FLOOD 98)
5.21
0.81
2005
40.0
1.78
5.38
0.17
2010
31.5
1.70
6.00
0.62
Source: I.R.Rushidan
8
Initiatives of Bangladesh to reduce
Poverty & Vulnerability
Giving the top most priority in poverty reduction;
Endorsing initiatives for pro-poor inclusive growth &
reduction of inequality;
Taking necessary measures for eliminating geographical
disparity;
Taking initiatives to improve communication at all levels;
Giving highest emphasis on increasing human capacity;
Bringing the basic healthcare services to the doorsteps of
the poor;
Increasing expenditure in health programs;
Expanding safety net programs;
Bringing climate change issues into all development
9
planning.
Budget Allocation
Indicators
2011-12
2012-13
2013-14
2014-15
Size of Budget (in billion U$)
19.54
22.31
28.52
32.17
Size of GDP (in billion U$)
117.28
133.08
152.41
171.73
Education
2.40
2.66
3.22
3.75
Health
1.00
1.10
1.21
1.43
Food & Social Safety
0.70
0.78
1.02
1.15
Agriculture
1.81
2.44
2.14
2.27
Addressing Climate Change
0.090
0.051
Education
12.28
11.92
11.29
11.66
Health
5.12
4.93
4.24
4.45
Food & Social Safety
3.58
3.50
3.58
3.57
Agriculture
9.26
10.94
7.50
7.06
Addressing Climate Change
0.43
0.22
Budget allocation in amount (billion US$):
Budget allocation in percentage:
Budget Speech 2014-15 by Finance Minister (page 22-24))
1US$=TK.78
10
Initiatives of PKSF
Evolved/evolving from single target group based
lending program to multi-target group based inclusive
financing program;
Integrating of various development interventions like
health, education, technology transfer, skill training,
value chain interventions with financial services;
Mainstreaming disaster & risk reduction program;
Mainstreaming climate change issues in all activities
and implementing CCCP;
Piloting pro poor insurance project.
11
Key Steps to Reduce
Poverty & Vulnerability
People-centric growth;
Establish pro-poor institutions;
Increase coordination;
Increase capacity of vulnerable people.
12
13
Adoptability
Resistance (mounds)
BRI-10
16-18
BINA-8
18-20
BINA-47
20-22
14
Sustainable Poverty Reduction Is Ultimately A
Political Process
15