Is Poverty Rising in Bangladesh Due to Political Instability?
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Synopsis
Bangladesh is grappling with a significant rise in poverty, primarily driven by political instability and economic downturns. As the interim government struggles to deliver on promises, millions face the harsh realities of poverty. This article delves into the urgent issues affecting the nation's economy and the challenges faced by its citizens.
Key Takeaways
- Poverty is rising in Bangladesh, affecting millions.
- The employment rate has dropped to 56.7 percent.
- Over 55 percent of urban households' income is spent on necessities.
- Many citizens are one shock away from falling into poverty.
- Strong policy interventions are necessary to address the growing gap.
New Delhi, Oct 29 (NationPress) Poverty is escalating in Bangladesh, as the ongoing political turmoil in the post-Hasina era has resulted in a downturn in both investment and industrial advancement, as reported by the Asian Lite newspaper.
The publication references statistics from the World Bank, indicating that economic growth is projected to slow to 4 percent in FY25. Consequently, poverty levels, defined by the international poverty threshold of $3 – 2021 PPP, are expected to rise to 8.9 percent, pushing an additional 3 million individuals into poverty.
The challenging macroeconomic environment is evident in the worsening labor market conditions. The employment rate has decreased to 56.7 percent in 2024, with the service sector witnessing considerable job losses. Furthermore, youth and women in the agricultural sector often find themselves in low-skill and low-wage positions. The lack of opportunities in urban regions for young graduates and women forces many to seek employment in low-paying service jobs, the article notes.
The interim administration led by Mohammad Yunus, which took power over a year ago, has not fulfilled its commitment to achieving macroeconomic stability through fiscal and monetary strategies to combat inflation and satisfy IMF loan requirements. Instead, the economy has regressed, facing severe poverty and unemployment challenges along with a slowdown in growth.
A recent study by the Power and Participation Research Centre (PPRC) reveals that more than one in four citizens in Bangladesh currently live below the poverty line, marking a significant increase from the 2022 estimates. This alarming trend has prompted policymakers and international development agencies to reconsider Bangladesh's developmental trajectory.
PPRC findings indicate that over 55 percent of urban household expenditures are now devoted to basic necessities such as food, limiting available funds for health, education, and savings.
Consequently, concern extends beyond just those living in poverty; many individuals are merely one economic setback or climate-related shock away from falling into poverty. A significant portion of the population is precariously positioned at the brink of economic deprivation.
A PPRC study highlights that the consumption shortfall gap has doubled since 2022. This widening gap between actual consumption and poverty thresholds underscores the urgent need for robust policy mechanisms to elevate affected individuals above the poverty line.
“There is a growing consensus that the interim government has not met the expectations of Dhaka’s minority communities or maintained law and order, silencing dissenting voices. The leadership has failed to demonstrate the anticipated statesmanship. Following disappointing outcomes on human development, the interim government has also faltered in upholding human rights,” the Asian Lite article further elaborates.
Point of View
It is imperative to acknowledge the complexities surrounding poverty in Bangladesh. The current socio-economic climate demands a nuanced understanding and a commitment to seeking solutions that uplift all citizens, ensuring a path towards sustainable development.
NationPress
29/10/2025
Frequently Asked Questions
What is the current poverty rate in Bangladesh?
The current poverty rate in Bangladesh is projected to rise to 8.9 percent, with over 3 million people being pushed into poverty due to economic instability.
How has political instability affected Bangladesh's economy?
Political instability has led to a decline in investment and industrial growth, resulting in slowed economic growth and increased poverty levels.
What sectors are most affected by the rising poverty?
The service sector has experienced significant job losses, while youth and women in agriculture face low-skill, low-wage employment.
What measures are needed to address the poverty situation?
Robust policy mechanisms are essential to close the gap between actual consumption and poverty lines, helping lift individuals above the threshold.
What role does the interim government play in this crisis?
The interim government, led by Mohammad Yunus, has struggled to fulfill promises of economic stability, contributing to the worsening poverty situation.
