Social Protection for the Poor:
A Study on Micro-Health Insurance in Bangladesh
Prepared By
Hedayet CHOWDHURY [First Author]
Department of Economics
Kazakhstan Institute of Management,
Economics and Strategic Research (KIMEP)
Republic of Kazakhstan
&
Department of Development Studies
University of Dhaka, Bangladesh
and
Mohammed Abu Eusuf [Second Author]
Department of Development Studies
University of Dhaka
Bangladesh
Contact person:
Md. Hedayet Ullah CHOWDHURY
Department of Economics
Kazakhstan Institute of Management,
Economics and Strategic Research (KIMEP)
4 Abai Avenue
Almaty 050010
Republic of Kazakhstan
Tel. +7-3272-704251
Email: mhedayet@gmail.com
chedayet@kimep.kz
Social Protection for the Poor:
A Study on Micro-Health Insurance in Bangladesh
Abstract:
As Households and individuals of developing countries face various risks that plunge them into
poverty and vulnerability the study made an attempt to describe social protection (SP) activities,
particularly to identify all programs related to Micro-health insurance in Bangladesh and to develop
a Social Protection Index (SPI), which summarizes a country's SP activities. Though microinsurance is relatively a new concept in Bangladesh, it is experiencing a steady growth since its
commencement in 1993. The savings of the poor people not only create fund for investment but also
integrate the poor section with the national economy. Micro-insurance can be a good source of
investment in industrial sector. It can be another model like micro-credit, which has already brought
reputation for Bangladesh. Micro-credit and micro-insurance together can contribute to poverty
reduction drive in rural areas. Due to inadequate outreach of the public services and formal health
insurance provided by the private sector, different Non Government Organizations have initiated
various Micro Health Insurance (MHI) schemes for the poor people of Bangladesh. The aim of the
micro-insurance is to reach the poor, as a tool to fight poverty and to promote equal access to health
services. MHI can be defined as a type of health insurance where accessibility to health services is
ensured to individuals and families through affordable premiums and low prices for health services.
Social Protection for the Poor:
A Study on Micro-Health Insurance in Bangladesh
1.1 Introduction:
The main challenge of the developing countries is to achieve sufficient sustainable growth to secure
and ensure the inclusion of the poor and the children in the development process. The pastexperience reveals that growth alone is not sufficient for generating inclusive societies. Households
and individuals face various risks that plunge them into poverty and vulnerability. Individuals are
helpless, and societies have to take steps to reduce their vulnerability, cope with the shocks and
gradually eradicate the poverty. Risks are of diverse nature and include natural disasters, civil
conflicts, economic downturns, environmental hazards, deterioration of law & order situation and
malgovernance etc.
Asian Development Bank (ADB) identified four main types of risks to the poor. 1 These are: (a) those
related to the individual life cycle, (b) economic, (c) environmental and (d) social and governance
related. Some risks affect all groups of population equally; others have more intense impacts on the
poor. The poor are, however, worst affected by all risks. They are highly vulnerable to risks and
constantly fighting to minimize the adverse affects and to avoid sinking further into poverty. Social
risk is a dynamic concept and perpetually strikes the affected people to push them into the conditions
that are more vulnerable. The poor, poorer and the poorest are the worst victims, as they have fewer
assets, reserves, opportunities and protections to cope with the multifarious risks. Coping strategies
and risk reduction interventions and actions are what the poor need to help them fight against
poverty.
Social protection presents a variety of instruments to be put in place to reduce the risk of population,
particularly of the poor. The long-term solution lies on the good social, economical and political
1
Please see the Table A1of the Appendix for details.
development decisions that address the causes of vulnerability and reduction of the effect of risks.
The ADB has defined Social Protection (SP) as the set of policies and programs designed to reduce
poverty and vulnerability by promoting efficient labor markets, diminishing people's exposure to
risks, and enhancing their capacity to protect themselves against hazards and the interruption/loss of
income. Furthermore, Social Protection is defined as comprising five major kinds of activities: (1)
labor-market policies and programs, (2) social insurance, (3) social assistance, (4) micro-and areabased schemes, and (5) child protection.
Considering the above reality micro-insurance has gained a considerable currency in Bangladesh for
reducing the risk and vulnerability of the poor. Though it is relatively a new concept, it is
experiencing a steady growth since its commencement in 1993. The savings of the poor people not
only create fund for investment but also integrate the poor section with the national economy.
Micro-insurance can also be a good source of investment in industrial sector (Please see the figure
A1 of the Appendix). It can be another model like micro-credit, which has already brought
reputation for Bangladesh. Micro-credit and micro-insurance together can contribute to poverty
reduction drive in rural areas. Due to inadequate outreach of the public services and formal health
insurance provided by the private sector, different Non Government Organizations have initiated
various Micro Health Insurance (MHI) schemes for the poor people of Bangladesh. The aim of the
micro-insurance is to reach the poor, as a tool to fight poverty and to promote equal access to health
services. MHI can be defined as a type of health insurance where accessibility to health services is
ensured to individuals and families through affordable premiums and low prices for health services.
There are twenty organizations so far we could report at present that provide thirty-six schemes. The
schemes presented fall into five categories of micro insurance, namely health (39%), life (36%),
loans/capital (19%), livestock (6%) and disaster (3%).
1.2 Objectives:
The objectives of the present study are (i) to highlight the SP activities related to Micro-health
insurance in Bangladesh and (ii) to estimate an index based on the cost, coverage and distribution
of micro-health insurance and other related programs of SP activities in Bangladesh.
1.3 Sources of data and methodology of the exercise:
Though Bangladesh is not particularly very strong in documenting and maintaining necessary data,
this study has made a serious effort at collecting and collating the relevant data from various offices
and as well as published sources. For formulating and constructing the SPI, three following elements
of SP activities need to be considered:
•
Cost or Expenditure
•
Coverage and
•
Distribution
Each of the elements needs to be measured for each of the main categories (e.g. five categories
namely (1) labor-market policies and programs, (2) social insurance, (3) social assistance, (4) microand area-based schemes, and (5) child protection) of social protection programs. Ideally, the social
protection programs within each category were first identified. Then for each specific program
expenditure, coverage, distribution were calculated from secondary data or simulation method.
The following section gives in brief the formulation of three indexes, one for each element.
Social Protection Index- Cost (IEP , IE )
Total cost of pth program is denoted by EP in year.
Then I EP =
same year.
EP
where EP Total Cost for the pth program and Y is the Gross domestic product of the
Y
5
IE =
∑E
p =1
Y
P
.
If instead of EP, the per capita expenditure
⎛
⎞
E
e p ⎜⎜ e p = P ; where BP = beneficiaries ⎟⎟ is known
BP
⎝
⎠
Then I EP =
BP eP
Y
5
IE =
∑B e
P P
p =1
Y
Social Protection Index - Coverage (ICP , IC)
Coverage is the second element of the social protection Index. The coverage is to be related to either
the target beneficiaries or actual beneficiaries. The difference between the two varies from program
to program. However, for convenience, beneficiaries (actual) would be preferred. The beneficiaries
will be compared to the reference population for specific program and the total population for
composite indicator.
Let MP is the beneficiaries of pth program.
N is the population, then
I CP =
MP
N
5
IC =
∑M
p =1
P
N
Social Protection Index - Distribution (IDP , ID)
The third element of SPI is distribution. Beneficiaries are classified into two groups: poor and nonpoor. The Poor are those who fall below the poverty line and Non-poor are those who live above the
poverty line.
Clearly, Population
Where
H
1- H
P
NP
= Poor + Non-Poor
= P + NP.
= HN + (1- H)N.
= Head count poverty Index
= complement of H, [H+(1-H)]= 1
= HN,
= (1- H)N = N - P
BP = beneficiaries of the program.
B
BP I P = no of beneficiaries who are poor.
BP I P
B IP
= P
P
HN
5
B IP
=
I D = ∑ I DP = ∑ P
P
p =1
I DP =
∑B
P
IP
HN
1.4 Social Insurance Program: An Overview of the Micro Health Insurance in Bangladesh
There is no formal definition of social protection in Bangladesh. However, many poverty reductions,
social security programs mention that the implementation of the program will help protect the
socially disadvantaged and vulnerable groups from shocks. This is not altogether surprising as the
term social protection has only been adopted by IFIS in recent years. The programs as specified in
the budget Speech, PRSP document and other policy papers reveal that most departments of almost
all ministries are involved in poverty reduction programs. The main Ministries involved with social
protection, social security and poverty reduction are Ministry of Social Welfare, Ministry of Food
and Disaster Management, Ministry of Labor and Employment, Ministry of Women and Children
Affairs, Ministry of Local Government and Rural Development, Ministry of Youth etc.
As per the thematic paper prepared for providing input to the on-going PRSP finalization process
social insurance program includes all programs that cover the risks associated with unemployment,
sickness, maternity, disability, industrial injury and old age. In Bangladesh there is no provision for
social insurance schemes particularly for the poor people by the public sector. However, there are
some provisions for sickness and maternity allowances for Government employees. In addition, the
Government covers the following schemes for the public sector employees. However, the number of
beneficiaries of these programs is not available. Moreover, it is not possible to separate the poor
beneficiaries from the total employees, as the percentage of poor population in the Government
service is unknown. Nor all the class of employees can be categorised as the poor.
Table1: Pension and Gratuities 2002-03 (in thousand Tk.)
Economic Description
Budget
Pensions and Family Pensions
880,20,00
Gratuities
810,45,00
Pension for Meritorious and Praiseworthy Deeds
1,10,00
Medal for good performance
1,03,00
Medical Allowance to Pensioners
80,00,00
Source: Ministry of Finance: Budget Database
The following Table 2 presents various social insurance programs implemented by a number of nongovernmental organizations.
Table 2: Social Insurance Program (2002-2003)
Program
Micro Health Insurance
Bangladesh (MHIB)
Micro Health Insurance
(MHI)
Proshika Savings
Scheme (PSS)
Life & Micro Health
and Livestock Insurance
Schemes
Insurance Scheme for
IGA group members
Micro Insurance/
Emergency Fund
Customers Security
Fund (Micro-insurance)
Beneficiaries Life
Insurance
Sajida Health
Risk Fund
Risk Management
Scheme
Welfare program for
the hard-core poor
Apatkalin Tahbil
Apatkalin Tahbil
Institution/Agency
Target
Beneficiaries
(Number)
Expenditure
(Million)
BRAC
10000
35200
0.394172
Poor
Beneficiary
(Number)
35200
Grameen Kalyan
800000
26410
1.999982
26410
Proshika
NA
13010000
9.03
13010000
Dustha Shastho
Kendro(DHK)
30
2258
0.026354
2258
Care Bangladesh
10000
18368
0.115
18368
Integrated
Development
Foundation (IDF)
BURO Tangail
100000
216000
1.867139
216000
NA
106103
0.3
106103
Society for Social
Services (SSS)
Sajida Foundation
Association
of
Development
for
Economic and Social
Help
Technical Assistance
for Rural
Development (TARD)
100000
100500
0.574
100500
10000
30005000
50035
4343
8.269028
0.012
50035
4343
30005000
6419
0.019
6419
Association
for
Rural Save and
Human
Emancipation
(ARSHE)
Community
Development Center
(CODEC)
Bonaful
> 3000
501
0.0039
501
30005000
3221
0.38875
3221
500010000
21830
0.05
21830
Gono Grameen Bima
Delta life Insurance
Co Ltd
NA
757869
41.839562
757869
Total
14359057
64.888887 14359057
Source: ILO (2003), Micro Insurers: Inventory of Micro Insurance Scheme in Bangladesh
Though there are number of private organizations providing health insurance program, but the cost
of these services is not affordable to the poor. In this reality, in 2001 ILO launched a project named
Women’s Empowerment through Employment and Health (WEEH) to empower income-poor
women in Bangladesh. The objectives of this program are to increase the poor people’s access to:
•
•
•
•
decent employment,
income opportunities,
viable community health insurance systems and
quality health care services.
It is assumed that introduction of this program will contribute to poverty reduction and socioeconomic development. Basically WEEH has two sub-projects:
•
•
Micro Health Insurance for Poor Rural Women in Bangladesh (MHIB)
Women empowerment through Decent Employment (WEDE)
Against this background, the following sub-sections will give a brief overview of all programs
related to micro-health insurance in Bangladesh initiated by different non-government
organizations.
1.4.1 Micro-Health Insurance Bangladesh (MHIB) was initiated by BRAC in November 2001. The
objective of this project is to contribute to the empowerment and improvement of the wellbeing of
the poor women and their families by promoting access to quality health care through an affordable
micro-insurance initiative. The project is designed for achieving three primary goals:
(a)
(b)
(c)
contribute to woman’s empowerment
increasing access to BRAC’s health care initiatives for poor women and
their families
increasing awareness of preventive healthcare including
The target of the project is to cover persons of various occupations (subsistence agriculture, animal
husbandry, fishing, trade and crafts etc) in the 573 villages in which BRAC operates. The project
insured primary health and pathological services. The scheme is in operation with technical
assistance /co-operation from ILO-STEP. Benefit package and contributions of Micro-Health
Insurance scheme are shown below:
Package
Benefits
Yearly contribution
Health care: general
benefit package
Discount
prices
for
consultation:
Tk,
8
for
members (Tk. 10 for nonmembers)
50% discount on normal
deliveries
10% discount on medicines
Free yearly health check up
Coverage of referral costs:
Tk. 500 to Tk. 1,000
(Ultra poor my benefit from
same services without having to
pay a premium)
ANC check-up at BRAC
mobile/satellite clinic
Monthly supply of iron tablet
and folic acid
Provision of Safe Delivery Kit
for home delivery
Support
for
post-delivery
complications
Support in the event that
newborn babies suffer from
diarrhea or pneumonia within
28 days of birth
Tk. 100 for a family up to 6
persons
(Tk. 250 for non-member)
Tk. 150 for a family up to 8
persons
(Tk. 300 for non-member)
Tk. 200 for a family of more
than 8 persons
(Tk. 350 for a non-member)
Health care: pregnancy
related care package
Tk. 50 for a member
Tk. 70 for a non-member
No.
of
Beneficiaries
30, 625 (6,125
families)
plus 1,085 (217
families)covered
without
premium under
the ultra-poor
program
1,465 women
1.4.2 Grameen Bank (GB) commenced the “Micro Health Insurance” (MHI) in 1997. It is
operated by Grameen Kalyan (GK), which is a member of the Grameen Family. The project was
intended to provide primary health care services to GB members who involved in various
occupations including subsistence agriculture, animal husbandry, fishing, trade and crafts as well as
general people living within its operational areas at an affordable cost to the poor. The priority areas
of the scheme are preventive and promotional health care services with special emphasis on family
planning and reproductive, internal and child health care
1.4.3 PROSHIKA has a number of policies and activities to cover financial risks of its group
members and health-related vulnerabilities of the society. PROSHIKA Savings Scheme (PSS) is
one of these activities began in 1997 for covering risk of natural disasters, life, loans, livestock and
property. Target population of this scheme is group members including landless and marginal
farmers. According to the scheme if a member dies or loses the homestead through a natural disaster,
she is reimbursed double the amount of her/his savings as damages. The family gets their savings
deposit multiplied by the number of years of savings.
A compensation fund under the PSS has been created to compensate for the death of group members,
damages to their houses or homesteads caused by river erosion, tornado, etc. Two per cent of the
savings balance of the groups is transferred to this compensation fund on 30th June every year.
In case of destruction or damage to the homesteads and houses by river erosion, cyclone, or tornado,
twice the amount of the savings deposit of the member is paid as compensation, yet the member's
savings deposit remains intact. The member enjoys the same right on that deposit like other
members.
In case of the death of a group member, the member's family receives the savings deposit multiplied
by the number of years of savings with PROSHIKA. But the amount is never less than double the
deceased's savings balance. The compensation will have to be paid, completing all the related steps,
within three months of the death of a member.
Proshika adopted the Economic-Social Security Programme (ESSP) scheme and put into effect
from July 1999 to facilitate group members for saving more money for their future benefit to ensure
a secured future for the group members. This scheme will cover housing, education, health and
some other facilities for the regular savers as well.
In 1990, Livestock Compensation Fund (LCF) was introduced by Proshika to pay for loss caused
by the sudden death of farm animals and poultry. The groups contribute 3-5 per cent of the purchase
value of the animals in this fund. The fund, covers death risk of cattle, goat, and chicken and has so
far paid over Tk. five crore (50 million) to the affected group members.
PROSHIKA considers a disabled person very much a part of its development process and
accordingly started a pilot project, Disability and Development. To raise people's awareness on
disability 23,800 people have been given orientation on the issue through 1,720 discussion sessions
in eight ADCs. A total of 644 disabled people and members of their families have been included in
the PROSHIKA organized groups and 465 children with disabilities were admitted to the local
schools and PROSHIKA-NFP schools. Besides, 879 people with physical disabilities have been
provided with home therapy or exercises. Centre for Disability and Development (CDD) of Savar
and Centre for Rehabilitation of the Paralyzed (CRP) provided necessary technical support and
relevant training.
1.4.4 Dushtha Shastha Kendra started life & micro health and livestock insurance schemes in 1995
with a view to provide supports for primary health care especially for woman and children. The
schemes targeted to poor, landless, and marginal farmers - low income groups within both informal
and formal economy.
1.4.5 CARE Bangladesh introduced a micro-insurance scheme under the heading of “Insurance
scheme of IGA group member” in 2000. The micro insurance scheme is a part of SHAHAR
(Supporting Household Activities for Health, Assets and Revenue) project activities being managed
by 14 partner NGOs, taking part in the scheme. The SHAHAR project implemented by CAREBangladesh aims to establish household livelihood security for vulnerable urban households. The
target population of this insurance scheme is limited to geographical area and persons involved in
trade and crafts.
1.4.6 Integrated Development Foundation (IDF) started a micro health insurance scheme in 1997
for helping the family of the group members if they are seriously sick or in case of death of an
earning family member. So the target population of the MHI scheme is the IDF group members
involved in subsistence and cash crop agriculture, animal husbandry, trade && crafts and fishing.
IDF specifically focuses on assisting the poor, landless, destitute women and children, small farmers
and disabled persons. IDF offers two types of benefits to insurance holders:
a).
b).
grants for death of a family member and
grants for medical treatment
The scheme was designed to cover the risk of primary health, life, accidents and hospitalization. The
Micro-health Insurance scheme provided by IDF is closely tied to IDF’s micro-credit program, and
subscription to the MHI scheme is compulsory for IDF borrowers. The total number of families
covered by IDF through its 26 branches in 19 thanas of 4 districs was 29,700 in 2002. The total
population covered so far y the MHI is 120,000.
1.4.7 Young Power in Social Action (YPSA) introduced a Micro Health Insurance in March 2003
to cover the risk of primary health and credit (credit insurance only available to micro-credit
members) of subsistence farmers, fishermen, artisans, day-labourers and landless people.
Package
Benefits
Yearly contribution
Health
Subsidised medical services include::
Consultation with doctor (Tk. 5 per
visit)
Medicine: 40% discount
Pathological tests: 30% discount
Normal delivery: 40% discount
Free yearly medical check-up
One-time Tk. 200-500 grant in case of
hospitalisation
In case of death of policyholder,
nominee receives Tk. 5,000 – adjusted
to outstanding micro-credit debt, if any.
In case of death of policyholder,
outstanding debt cancelled, and total
savings with YPSA is returned to
nominee
Tk. 75 for families up to 6
members (Tk. 100 for nonmembers)
Tk. 125 for families up to
11 members (Tk. 150 for
non-members0
Life
Loan insurance
No.
Beneficiaries
2,080
Tk. 10
3,500
1% of loan amount (e.g. a
5,000 loan insurance costs
Tk. 50)
4,000
of
1.4.8 Society for Social Services (SSS) promotes the socio-economic condition of the rural and
urban disadvantaged and poverty stricken people through savings fund generation, credit operation,
health services (preventive and curative), education, technical co-operation, development of
disadvantaged rural and urban children, rehabilitation of sex worker's children and joint action.
Package
Benefits
Life insurance
Nominee receives equal amount of loan
disbursed (up to Tk. 5,000) in case of
death of policy holder. Nominee also
exempted from repaying any upstanding
debt owed by policy holder.
Basic (preventive and curative)health
care free of cost by medical assistants.
Basic (preventive and curative) health
care at 50% discount by certified MBBS
doctors.
Health
Contributions
(yearly)
0.5% of yearly
loan
No.
of
Beneficiaries
95,000
women
and 6,500 men
Tk. 20
1.4.9 Sajida Foundation started to work in 1999 to provide primary and secondary health care
through Sajida health centre, satellite clinics and referral services for tertiary care by partnership with
other institutions. The target population of this scheme is Sajida’s micro-finance groups engaged in
trade and crafts and mostly within the informal economy.
Package
Health-Family
Card
Benefits
Antenatal Care
Free general treatment
Normal delivery for Tk. 225
Free annual check-up
Pathological service at 20 % discount.
Interest free treatment loans up to Tk.
5,000.
Hospitalisation at 30% discount.
Free referrals
Contribution
Tk. 100-150 per
year (depend on
basis of loan
size)
No. of Beneficiaries
50,035
1.4.10 Panna Samity Sangsad (PSS) introduced loan & life insurance scheme in 2003 as a part of its
regular programme activities. The target population of this scheme is limited to geographic
operational area of PSS involved in cash crop farming, trade and crafts and informal economy
employment.
1.4.11 Association of Development for Economic and Social Help (ADESH) initiated its MicroInsurance Scheme in July 2002 with a view to cover the risk of life and loans of trade and crafts
occupations. Under the benefit package of this insurance scheme -Risk fund – in case of death of
insurance holder, nominee receives Tk. 2,000.
1.4.12 Since 1995 Technical Assistance for Rural development (TARD), which is a non-profit
voluntary organization devoted to promote development efforts in Bangladesh, offers life insurance
under the “Risk Management Scheme” to cover the risk of life of “specific social group within the
informal economy”. The premium is covered by the interest on micro-credit loans on yearly basis. The
contribution for the scheme is covered with the 15% interest rate charged for micro-credit loans. In
case of death of policyholder, nominee receves up to Tk. 10,000. The amount is dependent upon the
amount borrowed from TARD – (Tk. 10,000 limit). Another benefit of the scheme is the
cancellation of outstanding debt from micro-credit loans.
1.4.13 “Welfare Program for the Hard-core Poor” is a Micro-Insurance Scheme introduced by the
Association for rural Save and Human Emancipation (ARSHE) in 2000 with a view to cover the
risk of accidents and loans of “income poor of the informal economy” engaged in subsistence agriculture,
animal husbandry, fishing, trade and crafts. The life insurance policy is tied to micro-credit, with a
limit of Tk. 12,000. A credit member may purchase a policy up to the amount of his/her loan. In
case of death of policyholder before loan recovery, ARSHE offers exemption of the rest of the loan to
policyholder’s family. Premium is 0.05% of total loan amount, charged yearly. In case of
accident/injury, policyholders are given a lump-sump amount of Tk. 500-1,000 for treatment. Each
case is considered individually, after which the decision on appropriate amount is taken by ARSHE
management.
1.4.14 Community Development Centre (CODEC) is a development NGO that has been working
with the coastal poor fisher folk communities since 1985. The insurance scheme “Apatkalin Tahbil”,
which is started in 1992, aims to secure the welfare of its target groups by providing facilities for
health, fire hazards and family compensation in case of death. Under this scheme, the insurance
holder pays Tk. 25 per year for CODECs combined package of Health and Life. In case of death
policyholder, nominee receives Tk. 2,000. In case of accident/injury or need of hospitalization,
policyholder receives Tk. 1,000. In case the policyholder is the victim of fire hazard, family members
are entitled to food and clothing for one month.
1.4.15 In 1999 a micro-financed institution based insurance scheme was introduced by Ghashful for
life risk coverage of its micro-credit members and lower/middle income groups engaged in animal
husbandry, fishing, trade and crafts. Under this scheme, a life insurance policy-holder pays Tk. 10
per month. Benefits for nominee, in case of death of policy holder, are:
a).
b).
Tk. 5,000 if death occurs after 1 year and
Tk. 10,000 if death occurs after 3 years.
1.5.16 By targeting the urban folk of Chittagong in the formal and informal economy engaged in
animal husbandry, fishing, trade and crafts, in 1997 Banaful started a Micro-Insurance Scheme
named “Apatkalin Tahbil” for covering risk of primary health. The insurance scheme is run
independently by Banaful as a part of its micro-credit activities.
Package
Benefits
Primary health
Doctor consultation:
Tk. 15
Paramedic consultation: Tk. 10
Consultation on family planning
contraceptives: Tk. 10
Contribution
No.
of
Beneficiaries
1.5% of yearly 21,830
loan account
and
1.5.17 In 1988, Delta life insurance company commenced a new insurance scheme named “Gono
Grameen Bima” (GGB) to cover the life risk of all low income earners aimed at the low-income
groups living in the villages, with clients mostly involved in small trading or other income generating
activities. Initially the scheme was designed to make the service available to those who most needed
insurance (low-income people) and for those who lack the financial resources or security and are
unable to leave their family with financial security upon death). The objectives of the GGB are:
•
to promote savings habit among the low income groups in rural areas
•
to promote financial security to the dependents of the policy holder and
•
to improve the socio economic conditions of the policyholder through Micro-insurance and
micro credit.
"Gono-Grameen Bima” currently has 11 lakh policyholders in villages all over the country. It
employs over 11,000 field organisers, 57 percent of them are women. The service creates
employment and consumer base in villages.
1.5 Estimation of Social Protection Index:
In this section of the study, we synthesize the information and findings obtained from review of
current social protection activities in Bangladesh in order to derive SP indicators. The derived
indicators are used in the construction of social protection index.
In accordance with the methodology discussed in section 1.3, the following items are considered:
•
Annual expenditure on social protection as percent of GDP in 2002-03 FY,
•
Coverage of social protection programs beneficiaries as percent of reference population and
•
Distribution impact of SP Coverage of poor population as percent of total poor
1.5.1 Social Protection Expenditure
The study identified only those programs that are targeted to the poor. Some programs are found to
operate since inception and some programs are year specific. For a good number of programs, either
the target population or the beneficiaries are given but the expenditures on specific programs are not
given. Likewise, in most cases, the total outlay is given without referring number of beneficiaries.
However, given the constraints, component wise breakdown of SP expenditure is given in Table A3.
In our Tables, NA means, Not Available.
1.5.2 Coverage of Social Protection
Coverage is the second proposed component of SPI. As mentioned in section 1.3, for
calculation of coverage indicator, we need the following information:
•
Total beneficiaries in the program
•
Reference population of the program
It is clear that exact data for the above two items are required for the construction of coverage SPI. It
is to be mentioned here that data are missing for most activities. The following points are therefore
important:
•
Quantification of number of beneficiaries for most programs is not possible
•
Some programs have multiple target groups
•
Some population are covered by multiple programs
•
Some programs did not mention the population targeted
Table A4 presents the number of beneficiaries on social protection programs by sub component.
For calculating coverage of SPI for all the programs taken together, we used the total poor as
reference population (Table A5).
It is seen (Table A5) that labor market programs covered nearly 40 percent of unemployed and
underemployed, totaling 16.5 million in 2002-03. Social insurance program covered more than 20
percent of all the poor of the country. The Social assistance program covered nearly 10 percent of all
the poor. Micro-credit covered around 18 percent of rural destitute households having land less than
0.5 acres. The performance of Bangladesh in case of child protection is very low, only 4.7 percent
children of the poor families covered by the child protection programs. Taking all the beneficiaries
are together, it has been found that 30.57 percent of population were covered by SP activities during
fiscal year 2002-2003.
1.5.3 Distributional Impact of SPI Program
This is the third proposed component of SPI. This indicator represents poor beneficiaries as percent
of total poor of the country. This was done as follows:
Estimated total poor of the countries = 49.8 % of all population = 66.75 million
Estimated beneficiaries for each component (Table A6)
Estimate poor Beneficiaries for each component (Table A6)
Distributional index =
Poor Beneficiaries
. 100
Poor Population
The indices and distributional impact indicators are shown in Table A6. Component wise
distribution reveals that social insurance and micro area credit program are the two major
components that account for 21.50 percent and 17.95 percent of poor beneficiaries respectively. The
detailed distribution of annual social protection indicators has been presented in additional tables A7,
A8 and A9.
The summery of SP indicators has been presented in table 3.
Table 3: Summary of Annual Social Protection Expenditure and Indicators (2002-2003)
SP Component
Labour Market Programs
Social Insurance Programs
Social Assistance Programs
Micro/ Area-wide programs
Child protection Programs
Total
Indicators of Social Protection Expenditure
SP expenditure as % of GDP
SP expenditure per capita (Tk.)
Coverage (%)
Poor beneficiary as % of total Poor
population
Expenditure (Tk. million)
7950.53
64.89
27643.09
61815.81
334.10
97808.42
Distribution (%)
8.13
0.07
28.16
63.20
0.34
100
3.25
729.75
30.57
55.42
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
Notes:
GDP (Tk. million)
Total Population (million)
Total poor population (million)
Total poor population as % of total
population
: 3005800.00
: 134.03
: 66.75
:
49.8
It is seen that the SP programs covered 55.4 percent (multiple count) of all poor (66.75 million)
of the country. However, total beneficiaries constitute 30.57 percent of the total population. But
from expenditure point of view, only 3.25 percent of GDP was spent on SP activities targeted for
poor people.
•
•
Total SP expenditure as percent of GDP: 3.25
Per capita SP expenditure = Tk. 729.75
= US $ 12.58 ( 1 US $ = Tk. 58.00)
1.6 Concluding Remarks
Collecting information on SP activities both from the government and non-government sources has
not been an easy task. The collected data were not of similar kind either. So we had to make
numerous working assumptions and adjustments to make them user-friendly.
We have not deliberately combined these three indicators into a single Social Protection Index (SPI).
We need to first agree on the relative weight, which should be given to each indicator. Despite all
the limitations indicated, the attempt at constructing SPI is in itself a laudable venture, particularly
at a time when Bangladesh opted for preparing PRSP. Monitoring implementation process of PRSP
will be highly desirable. SPI could be an important tool for such a monitoring effort.
The vision of Bangladesh's poverty reduction strategy is to substantially reduce the poverty within
the next generation, hopefully, by 2015.The government has given top-most emphasis on the poverty
reduction. The prime strategy is to use all routes. With many roots and multidimensional
characteristics, all routes matter for the poverty reduction strategy. The strategic elements of antipoverty policies and institutions will cover 5 broad avenues:
•
Accelerate and expand the scope for pro-poor economic growth for increasing income and
employment of the poor
•
Human development of the poor for raising their capability
•
Support Women's advancement and closing gender gap
•
Provide "Social Protection to the Poor" against all kinds of shocks and vulnerability
•
Influence participatory governance, enhance the voice of the poor and improve non-material
dimension of well-being including security, power and social inclusion by improving the
performance of anti-poverty and disaster preparedness and mitigation institutions.
The above interventions, as expected, will have maximum impact on poverty, especially in
minimizing the severity of poverty, where these are targeted to the poor, regardless of the places
where they live.
References
ADB (2001), Social Protection Strategy
ADB (2004), Quarterly Economic Update Bangladesh, Bangladesh Resident Mission
Action on Disability and Development (2004), Strengthening the Disability Rights Movement in
Bangladesh- Annual Report 2003
Action Aid International (2004), Global Progress Report (2003)
Bangladesh Institute of Development Studies (2002), Fighting Human Poverty, Bangladesh Human
Development Report 2000
Buro Tangail (2004), Annual Report (2002-2003)
BRAC (2003), Annual Report 2002
Credit and Development Forum (2004), CDF Annual Report (2002-2003)
Department of Social Services (2002), Appropriate Resources for Improving Street Children’s
Environment, Ministry of Social welfare, Government of Bangladesh
------------------------------------- (2002), An Introduction to Development Projects, Ministry of Social
welfare, Government of Bangladesh.
Delta Life Insurance CO. Ltd. (2004), Annual Report-2003
Dhaka Ahsania Mission (2004), Annual Report(2002-03)
Government of Bangladesh (2004), Bangladesh Economic Review 2004, Ministry of Finance
------------------ (2004), Bangladesh Budget Documents 2004 - 2005, Ministry of Finance
------------------ (2003), Bangladesh Economic Review 2003, Ministry of Finance
------------------ (2003), Bangladesh Budget Documents 2003 - 2004, Ministry of Finance
------------------ (2003), Statistical Year book of Bangladesh 2000, 2001, Bangladesh Bureau of Statistics
------------------ (2003), Report of the Household Income and Expenditure Survey 2000, Bangladesh
Bureau of Statistics
------------------ (2003), Population Census 2001, Bangladesh Bureau of Statistics
------------------ (2003), Report of the Labour Force Survey Bangladesh, Bangladesh Bureau of Statistics
------------------ (2003), Two years of Development, Ministry of Social Welfare
------------------ (2002), Bangladesh Economic Review 2002, Ministry of Finance
------------------ (2002), Bangladesh Budget Documents 2002 - 2003, Ministry of Finance
------------------ (2002), Statistical Year book of Bangladesh 2001, Bangladesh Bureau of Statistics
------------------ (2000) Mid term Review of the Fifth Five Year Plan (1997-2002), Planning
Commission, Ministry of Planning.
------------------ (1998), The Fifth Five Year Plan 1997-2002, Planning Commission, Ministry of
Planning.
Grameen Bank (2003), Annual Report 2002
Grameen Bank (2002), The Grameen Generalized System
ILO (2003), Women’s Empowerment through Employment and Health, Micro Insurers Inventory
of Micro Insurance Schemes in Bangladesh
Micro Industries Development Assistance and Services (MIDAS), Annual Report (2002)
Micro Industries Development Assistance and Services (MIDAS) (2004), List of Training Courses
Conducted by MIDAS
Naila Kabeer (2003), Safety Nets and Safety Ropes: Addressing Vulnerability and Enhancing
Productivity in South Asia. In Crook Sarah et al, social Protection in Asia. The Ford Foundation.
Har Anand Publication
Nijera Kori (2004), Annual Report (2002-2003)
Palli Karma- Sahayak Foundation (2004), Annual Report (2003)
------------------ (2004), Micro Credit Programs in Bangladesh: Giving a chance to the Poor
Plan Bangladesh (2003), Overview of Plan Bangladesh’s Activities
Proshika(2003), Sustainable Contribution Poverty Eradication Impact Assessment Study 2002
Proshika (2002), Crossing the Poverty Barrier: The Journey Ahead- Activity Report (July 2001- June
2002)
Sagar, MSM (2003), “Poverty and Microfinance Program, Association for social Advancement
(ASA) Experience”, Paper presented at the International Seminar, PKSF, Dhaka (8-9), January.
Save the Children UK (2004), Children and Young People Participating in PRSP Processes
------------------ (2004), Annual Report (2003/2004)
UNDP (2003), The Macroeconomics of Poverty Reduction: The Case of Bangladesh
World Bank and ADB (2003), Poverty in Bangladesh: Building on Progress
Yunus, M (2002), Grameen Bank at a Glance.
APPENDIX
Table A 1: Social Risks - Risk Assessment and Risk Reduction Measures
Risk Assessment
Risk Reduction Measures
Type of Social Risks to
Household or Informal
Options for Public Sector Options for Private
the Poor
Mechanisms
Intervention
Sector mechanisms
Lifecycle
• Provision of health
• Health nutrition
• Women as family
• Hunger, children's
services
policy/ services
welfare providers
stunted development
• Health, disability,
• Social insurance
• Extended family,
• Illness /injury/
life insurance, and
policy; mandatory
community support
disease (including
reinsurance
insurance for illness,
HIV/Aids)
• Hygiene, preventive
disability,
life,
old
age;
• Micro insurance
• Disability
health
micro insurance
• Old-age annuities
• Asset/savings
• Old age
• Social assistance
depletion
• Death
• Child protection
• Debt
• Migration
Economic
• End of source of
• Diversified sources of
• Sound macroeconomic • Employment
livelihood (i.e., crop
livelihood
and sector policies to
generating private
failure, cattle disease)
• Unemployment
• Low income
• Changes in prices
basic needs
• Economic crisis
and/or transition
Environmental
• Drought
• Flood, rains
• Earthquake
• Landslides
Social/Governance
• Exclusion, losing
social status/capital
• Extortion, corruption
• Crime, domestic
violence, social
anomie
• Political instability
• Private
transfers/extended
family support, child
labor
• Depletion of
assets/savings
• Reduced consumption
of basic goods
• Debt
• Migration
•
•
•
•
promote economic
opportunities
Particularly, regional
and rural development
policies, including
micro insurance
Labor market policies
Education and training
Social funds
sector investment
• Agricultural/
livestock insurance,
reinsurance micro
insurance
• Banking services to
the poor, micro
finance
• Providing training
• Migration
• Community action for
resource management
• Private
transfers/extended
family support
• Assets/savings
depletion
• Environmental policy
and infrastructure
investment
• Catastrophe
prevention, mitigation
programs including
insurance against
natural disasters
• Agricultural/livestoc
k catastrophe
insurance and
reinsurance
• Maintaining
community networks
(reciprocal gifts,
arranging marriages,
religious networks)
• Community pressure
• Women's groups
• Migration
• Promotion good
governance, antidiscriminatory
policies, and
anticorruption
practices
• Public information
campaigns
• Providing security and
equal access to justice
• NGOs and CBOs
• Good corporate
governance securing
fair employment
opportunities and
provision of services
regardless of race,
gender, age, social
status or political
affiliation.
Legend: CBO = community based organization, HIV/AIDS = Human Immunodeficiency Virus/Acquired
Immunodeficiency Syndrome, NGO = nongovernmental organization.
Source: ADB (2001)
Table A2: Components and Sub-Components of Social Protection
Labour Market Programs
Direct employment generation (micro-enterprise development and public works)
Labour exchanges and other employment services
Skills development and training
Labour legislation (including minimum age, wage levels, health and safety, etc.)
Social Insurance Programs
Programs to cover the risks associated with unemployment, sickness, maternity, disability, industrial
injury and old age
Social Assistance and Welfare Programs
Welfare and social services targeted at the sick, the indigent, orphans and other vulnerable groups
Cash/in-kind transfers (e.g. food stamps)
Temporary subsidies for utilities and staple foods
Micro and Area-based schemes (community-based)
Micro-insurance schemes
Agricultural insurance
Social funds (usually involving the construction, operation and maintenance of small-scale physical
public utility and social infrastructure)
Disaster preparedness and management
Child protection
Early child development activities - e.g. basic nutrition, preventative health and educational programs
Educational assistance (e.g. school-feeding, scholarships, fee waivers)
Health assistance (e.g. reduced fees for vulnerable groups)
Street-children initiatives (UCEF)
Child rights and advocacy/awareness programs against child abuse, child labour, child rehabilitation
trafficly etc.
Youth programs to reduce health risks (especially HIV/AIDS and drugs) and anti-social behaviour.
Family allowances (e.g. in-kind or cash transfers to assist families with young children to meet part of
their basic needs.
Source: Extracted from Vietnam Report, (Derived from I. Qrtiz ed, Defining an Agenda for Poverty Reduction Proceedings of the First Asia and Pacific Forum on Poverty, Volume 2, p. 57, ADB, Manila, 2002; ADB, Social
Protection Strategy, pp. 14-22, Manila, 2001.)
FIGURE A1
GONO
BANAFUL
GASHFUL
CODEC
ARSHE
TARD
ADESH
SATU
Sajida
SSS
IDF
CARE
DSK
GK
150
135
120
105
90
75
60
45
30
15
0
BRAC
Micro-Health Insurance in Bangladesh: Benefit paid as % of contribution
collected
Table A3: Annual Expenditures on Social Protection Programs by sub-component (2002-2003)
SP COMPONENT/PROGRAMS
INSTITUTION/AGENCY EXPENDITURE
(MILLION TAKA)
LABOUR MARKET PROGRAMS
Rural Social Service (RSS)
MSW
202.275
Food/Cash for work
MFDM
271.3472
Test Relief (TR)
MFDM
165.5
Employment Generation of Women
Care Bangladesh
716.154421
Through Rural Maintenance
Programme
State Owned Enterprise Retrenchment
Ministry of Finance
6595.26
Programme
7950.536621
SUB-TOTAL
SOCIAL INSURANCE PROGRAM
Micro Health Insurance Bangladesh
BRAC
0.394172
(MHIB)
Micro Health Insurance (MHI)
Grameen Kalyan
1.999982
Proshika Savings Scheme (PSS)
Proshika
9.03
Life & Micro Health and Livestock
Dustha Shastho
0.026354
Insurance Schemes
Kendro(DHK)
Insurance Scheme for IGA group members
Care Bangladesh
0.115
Micro Insurance/ Emergency Fund
Integrated
Development 1.867139
Foundation (IDF)
Customers Security Fund (Micro-insurance) BURO Tangail
0.3
Beneficiaries Life Insurance
Society for Social Services 0.574
(SSS)
Sajida Health
Sajida Foundation
8.269028
Risk Fund
Association of Development 0.012
for Economic and Social
Help
Risk Management Scheme
Technical Assistance for
0.019
Rural Development
(TARD)
Welfare program for the hard-core poor
Association for Rural Save 0.0039
and Human Emancipation
(ARSHE)
Apatkalin Tahbil
Community Development 0.38875
Center (CODEC)
Apatkalin Tahbil
Bonaful
0.05
Gono Grameen Bima
Delta life Insurance Co Ltd
41.839562
SUB-TOTAL
64.888887
SOCIAL ASSISTANCE
Rural social services
MSW
27.4
Vocational training, employment
MSW
0.159642
generation, family welfare and social
education for destitute women
Old age allowance
MSW
749.5455
Widowed and deserted women
MSW
397.73775
Honorary allowance for hard-up freedom
MSW
300
fighters
Vocational training, employment
generation, family welfare and social
education for destitute women
Old age allowance
Widowed and deserted women
Honorary allowance for hard-up freedom
fighters
Financial assistance for treatment and
rehabilitation of burnt affected poor people
Govt. rehabilitation center for vagabonds
Treatment facilities for poor and
disadvantaged patient
Vulnerable Group Feeding (VGF)
Gratuitous Relief (GR)
Food Based Social Safety Net Program
Adasha Gram Project(shelter for poor
families)
Housing Fund for Distressed
Asrayan project (rehabilitation program for
landless poor)
Skill training program
Slum improvement project in Dhaka City
Corporation (1991-96)
Urban basic service delivery project for slum
dwellers by DCC (1996-2000)
Support for basic services in urban (2001-02)
Environmental sanitation Hygiene and
water supply in urban slum and Fringe
project (1999-01)
Dhaka integrated flood protection project
for slum dwellers (1999-00)
Education program for blind and domb
Integrated education program for blinds
Literary program for destitute women(social
welfare)
Vulnerable Group Development
--- Integrated Food Security
---School feeding
---Rural Development
Allocation for welfare of disabled person
Providing Primary health care service
SUB-TOTAL
MICRO
AND
AREA
BASED
PROGRAMS
Grameen Bank
ASA
BRAC
Proshika
MSW
0.159642
MSW
MSW
MSW
749.5455
397.73775
300
MSW
4.9
MSW
MSW
1.2
NA
MSW
MSW
MFDM
ML
997.13734
10
18000
1999
MFDM
MH
535
570.6
MWCA
DCC
11
1.14
DCC
42.9
DCC
DCC
10.3
54
DCC
89
MSW
MSW
MSW
0.32
0.45
17.7
WFP
3802.5
MSW
MSW
10
11.1
27643.09023
GB
8562.50
20014.818
20700.00
4389.22
BRAC
Proshika
Buro, Tangail
Employment Loan
KarmaSangsthan Bank
(Employment Bank)
RDRS
Caritas
1082.665
275.00
RDRS
393.229
Caritas, Bangladesh
901.343
Thengamara Mohila Sabuj Sangha (TMSS)
1500.841
Swanirvar Bangladesh
458.30
Shakti Foundation for Disadvantaged
842.786
Women
Bangladesh Extension Education Services
365.31
(BEES)
Micro Finance Program
MSW
NA
Interest Free Loan
MSW
NA
Interest Free Loan for Destitute Women
MSW
79.80
Program on Rehabilitation of Acid- Burnt
MSW
150.00
Women and then Physically Handicapped
Loan for Housing
MSW
50.00
Micro Finance for Poor Men and Women
RDD
1800.00
Through Pally Daridra Bimoson
Foundation (PDBF)
(Sub –total)
61565.812
Disaster Management
Program on mitigating risk from natural
MSW
250.00
disaster
SUB-TOTAL
61815.812
CHILD PROTECTION
Financial Allocation for Orphan Children
MSW
124.0
Eradication of hazardous child labor
MoLE
34.6
Community Learning Community Health
Plan Bangladesh
175.5
Care Family Economic Security Enabling
Environment
SUB-TOTAL
334.1
GRAND TOTAL
97808.42
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
Table A4: Beneficiaries of Social Protection Programs in Bangladesh by sub-component (20022003)
SP COMPONENT/PROGRAMS
INSTITION/AGENCY Beneficiaries
(Number)
LABOUR MARKET PROGRAMS
Rural Social Service (RSS)
Self Employment for Destitute Women
(Sewing Machine)
Employment Creation Through LGED’s
Rural Infrastrature Development Program
Providing Training Program
Providing Vocational Training
Primary Health Care Training
MSW
MSW
292113
1000
MLG
259739
MSW
MSW
MSW
8058
66761
21682
Employment Generation of Women
Through Rural Maintenance Programme
Proshika- Human Development Training
Practical skill Development Training
Urban Power Development Program –
Human Development Training and PSD
National Training and rehabilitation center
for blinds
Education and training program for
mentally disabled children
State Owned Enterprise Retrenchment
Programme
SUB-TOTAL
SOCIAL INSURANCE PROGRAMS
Micro Health Insurance Bangladesh (MHIB)
Micro Health Insurance (MHI)
Proshika Savings Scheme (PSS)
Life & Micro Health and Livestock Insurance
Schemes
Insurance Scheme for IGA group members
Micro Insurance/ Emergency Fund
Customers Security Fund (Micro-insurance)
Beneficiaries Life Insurance
Sajida Health
Risk Fund
Risk Management Scheme
Welfare program for the hard-core poor
Apatkalin Tahbil
Apatkalin Tahbil
Gono Grameen Bima
SUB-TOTAL
SOCIAL ASSISTANCE PROGRAMS
Rural social services
Vocational training, employment generation,
family welfare and social education for
destitute women
Old age allowance
Care Bangladesh
41610
Proshika
Proshika
Proshika
4835289
64593
963859
MSW
52
MSW
61
Ministry of Finance
41086
6595903
BRAC
Grameen Kalyan
Proshika
Dustha Shastho
Kendro(DHK)
Care Bangladesh
Integrated Development
Foundation (IDF)
BURO Tangail
Society
for
Social
Services (SSS)
Sajida Foundation
Association
of
Development
for
Economic and Social
Help
Technical Assistance for
Rural Development
(TARD)
Association for Rural
Save
and
Human
Emancipation (ARSHE)
Community
Development
Center
(CODEC)
Bonaful
Delta life Insurance Co
Ltd
35200
26410
13010000
2258
18368
216000
106103
100500
50035
4343
6419
501
3221
21830
757869
14359057
MSW
MSW
50435
294
MSW
499662
Widowed and deserted women
Honorary allowance for hard-up freedom
fighters
Vocational training, employment generation,
family welfare and social education for
destitute women
Old age allowance
Widowed and deserted women
Honorary allowance for hard-up freedom
fighters
Financial assistance for treatment and
rehabilitation of burnt affected poor people
Govt. rehabilitation center for vagabonds
Treatment facilities for poor and
disadvantaged patient
Vulnerable Group Feeding (VGF)
Gratuitous Relief (GR)
Food Based Social Safety Net Program
Adasha Gram Project(shelter for poor families)
Housing Fund for Distressed
Asrayan project (rehabilitation program for
landless poor)
Skill training program
Slum improvement project in Dhaka City
Corporation (1991-96)
Urban basic service delivery project for slum
dwellers by DCC (1996-2000)
Support for basic services in urban (2001-02)
Environmental sanitation Hygiene and water
supply in urban slum and Fringe project (199901)
Dhaka integrated flood protection project for
slum dwellers (1999-00)
Education program for blind and domb
Integrated education program for blinds
Literary program for destitute women(social
welfare)
Vulnerable Group Development
Integrated Food Security
School feeding
Rural Development
Allocation for welfare of disabled person
Providing Primary health care service
SUB-TOTAL
MICROCREDIT AND AREA BASED
PROGRAMS
Grameen Bank
ASA
BRAC
MSW
MSW
266000
50000
MSW
294
MSW
MSW
MSW
499662
266000
50000
MSW
7680
MSW
MSW
2487
284066
MSW
MSW
MFDM
ML
MFDM
MH
647664
64.97
100000
15500
15000
16000
MWCA
DCC
21181
31000
DCC
200000
DCC
DCC
200000
25000
DCC
100000
MSW
MSW
MSW
346
479
19245
WFP
2300000
250000
1200000
250000
4539
74108
6630750.97
MSW
MSW
GB
BRAC
640796
154509
574788
Proshika
Buro, Tangail
Employment Loan
RDRS
Caritas, Bangladesh
Thengamara Mohila Sabuj Sangha (TMSS)
Swanirvar Bangladesh
Shakti Foundation for Disadvantaged Women
Bangladesh Extension Education Services
(BEES)
Micro Finance Program
Interest Free Loan
Interest Free Loan for Destitute Women
Program on Rehabilitation of Acid- Burnt
Women and then Physically Handicapped
Loan for Housing
Micro Finance for Poor Men and Women
Through Pally Daridra Bimoson Foundation
(PDBF)
SUB-TOTAL
Disaster Management
Program on mitigating risk from natural
disaster
SUB-TOTAL
CHILD -PROTECTION
Rehabilitation of orphan Children through
i) Marriage
ii) Employment
iii) Education and Training
Financial Allocation for Orphan Children
Rehabilitation of the Minor (0-7) Children
(baby homes)
Day Care Center for the Children of Low
income Employed Women
Training and Rehabilitation of Destitute
Children
Eradication of hazardous child labor
Vocational Training Programme for Working
Children
Job Placement Programme for Working
Children
Employment Generation Livelihood Skill
Training
Advanced Vocational Training and Job
placement
Community Learning Community Health
Care Family Economic Security Enabling
Proshika
KarmaSangsthan Bank
(Employment Bank)
RDRS
Caritas
42774
36137
9185
204
38572
42125
18146
23802
17423
MSW
MSW
MSW
MSW
4702
10259000
15726
15000
MSW
RDD
2930
NA
11895819
MSW
50000
11945819
MSW
MSW
MSW
316
143
1440
25833
124
MSW
101
MSW
1895
MoLE
Dhaka Ahsania Mission
5000
527
268
1000
UCEP Under Privileged
Children Education
Programme
Plan Bangladesh
2192
1450000
Environment
SUB-TOTAL
1488839
40.98 (million)
GRAND TOTAL
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
For calculating coverage of SPI for all the programs taken together, we used the total poor as
reference population (Table A5).
Table A5: Beneficiaries and Reference Populations of Social Protection Programs in Bangladesh
(Coverage of Social Protection Indicators, 2002-2003)
SP Component
Labour Market
Programs
Social Insurance
Beneficiary
(Million)
Reference
Population
(Million)
Coverage
(%)
Comments
Percent of unemployed and
underemployed in the labor force
Poor population, cumulative data in
14.36
66.75
21.50
case of beneficiary available
Social Assistance 6.63
Poor Population
66.75
9.90
Micro/ Area-wide
Rural poor population owning land
11.95
66.30
17.95
programs
less than 0.5 acres
Child protection 1.48
31.50
4.71
Poor children of age 18 and below
All components
40.98
134.03
30.57
All population; multiple counts.
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
The last column of Table A5 gives the procedure of working out reference population.
6.56
16.5
39.98
Table A6: Poverty Targeting Rates (Distributional Indicators)
Component
All
Poor
Beneficiary
Beneficiary
(million)
(million)
Distribution
al index for
SP* (%)
Poor
Beneficiary as
percentage of
total poor
beneficiary
1. Labour market
6.56
3.50
5.24
9.47
2. Social Insurance
14.36
14.36
21.50
38.82
3. Social Assistance
6.63
5.71
8.55
15.43
4. Micro/Area –wide program
11.95
11.94
17.89
32.29
Child protection
1.48
1.48
2.22
4.01
All Component
40.98
36.99
55.4
100.00
Note: * Poor beneficiary as percent of total poor population (poor population = 66.75 million).
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
Table A7: Distribution of Annual Social Protection Indicators by total beneficiary (2002-2003)
SP Component
Labour Market Programs
Social Insurance
Social Assistance
Micro/ Area-wide programs
Beneficiary (Million)
6.56
14.36
6.63
11.95
Distribution (%)
16.0
35.04
16.17
29.16
Child protection
1.48
3.61
Total
40.98
100.00
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
Table A8: Distribution of Annual Social Protection Indicators by expenditure (2002-2003)
SP Component
Expenditure (Tk. million) Distribution (%)
Labour Market Programs
7950.53
8.13
Social Insurance
64.89
0.07
Social Assistance
27643.09
28.16
Micro/ Area-wide programs
61815.81
63.20
Child protection
334.10
0.34
Total
97808.42
100
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
Table A9: Distribution of Annual Social Protection Indicators by poor beneficiary (2002-2003)
SP Component
Poor beneficiary (Million)
Distribution (%)
Labour Market Programs
3.50
9.47
Social Insurance
14.36
38.82
Social Assistance
5.71
15.43
Micro/ Area-wide programs
11.94
32.28
Child protection
1.48
4.0
Total
36.99
100
Source: Authors’ estimate based on “Social Protection Index on Committed Poverty Reduction”
Table A10: Economic Indicators
Indicators
2000-01
GDP at Current Price (billion Taka)
2535.5
GDP at constant price (billion Taka)
2157.4
(Base Yr. 1995-96)
Per Capita GDP at constant price (Taka)
16613
US$
362
Sectoral Share of GDP at
Agricultur
25.03
constant price (%)
e
Industry
26.20
Services
48.77
Consumption as % of GDP
82.0
Private
77.5
Public
4.5
Investment as % GDP
23.1
Total Govt. Expenditure as % of GDP
15.4
Gross Fixed capital formation (billion
585.4
Taka)
Inflation Rate (base 1995/96)
2.8
Source: Bangladesh Economic Review (various years)
2002-03
2003-04
3005.8
3325.7
Annual growth
percent
9.5
2371.0
2501.8
5.1
17772
389
18504
421
3.65
23.47
22.83
27.24
49.30
81.8
76.4
5.4
23.4
13.4
27.80
49.37
81.7
76.3
5.4
23.6
13.5
703.5
784.2
2.8
5.9
Table A11: Total population, labor Force, participation rate
Number (millions)
Indicator
1995-96
1999-2000
Total Population
120.3
127.5
Popln 15+
69.4
74.2
Labour Force
36.1
40.7
Dependency ration (economic) - 138 percent
Labour Force participation
54.0
54.9
rate
87.0
84.0
Male
15.8
23.9
Female
Unemployment rate
3.5
4.8
Male
2.8
3.4
Female
7.8
7.8
Child labour as percent of
Child Popln
Male
Female
Source: LFS 1999-2000, BBS August 2002
Table A12: Incidence of Poverty Head Count Ratio (in pecent)
Division
National
Rural
Bangladesh
49.8
53.1
Barisal
39.8
40.0
Chittagong
47.7
48.4
Dhaka
44.8
52.9
Khulna
51.4
52.2
Rajshahi
61.0
62.8
Source: BBS, Household Income and Expenditure Survey 2000, BBS 2003.
Annual growth rate
1.54
1.69
1.30
0.4
-0.89
10.9
8.2
5.0
0.0
7.0
9.7
4.0
Urban
36.6
37.9
44.0
28.2
47.1
48.1
Table A13: Trends in Poverty and Inequality
Indicator
1991/92
2000
Change per year (in percent)
National 58.8
49.8
-1.8
Headcount Rate
Urban
44.9
36.6
-2.2
Rural
61.2
53.1
-1.6
National 17.2
12.9
-2.9
Poverty Gap
Urban
12.0
9.5
-2.5
Rural
18.1
13.8
-2.8
National 6.8
4.5
-4.5
Squared Poverty Gap
Urban
4.4
3.4
-2.8
Rural
7.2
4.8
-4.4
National 0.259
0.306
1.9
Gini Index of
Urban
0.307
0.368
2.0
Inequality
Rural
0.243
0.271
1.2
Source: BBS, Household Income and Expenditure Survey, 2000, & World Bank, March 2003