Bangladesh's Journey of Rural Development and Poverty Reduction

“Extreme poverty anywhere is a threat to human security everywhere”-Kofi Annan, Seventh secretary-
General of the United Nations.
The infamous quote 'Bangladesh is a bottomless basket' made by then US Secretary of State Henry Kissinger
in 1974 has already been proved wrong because Bangladesh has boldly caught the eyes of international observers
of the contemporary world such as IMF ,UNDP ,World Bank,World Economic Forum and praised as a “Role
Model of Development & Poverty Alleviation” in the world media for accomplishing outstanding success and
remarkable phenomenal progress in every socio-economic indicators.The small economy is known today as the
'tiger economy' of Asia.
Rural Development:
“Rural development is a process that seeks to improve the economic and social well-being of rural
communities.” – Bill Clinton
Rural Development planned change towards the improvement of the economic and social lifestyle of the rural
poor through increased production, equitable distribution of resources, and empowerment. Rural development
aims at building the capacity of these target groups to control their surrounding environment accompanied by
wider distribution of benefits.
Indicator of Rural Development:
The key elements of rural development in Bangladesh are:
(a) Poverty alleviation and raising the living standards of the rural poor.
(b) Equitable distribution of income and wealth.
(c) Wider employment opportunities.
(d) Participation of the local people in planning, decision making, implementation process, benefit sharing,
evaluation of rural development programmes.
(e) Empowerment or more economic and political power to the rural masses to control the use and distribution
of scare resources.
Importance of rural development:
“Development of the countryside is the key to the development of the nation.” – Narendra Modi
1. For a country like Bangladesh, rural development is important. The reason behind this is that most of the
people of the country are living in the villages.
2. There is a direct link between the rural development and the development of our national economy.
3. The rural sectors contribute about two-thirds of the GDP.
4. We can achieve our cherished goal of financial development by the development of our villages which hold
the key to our success.
5. Encompass improved productivity.
6. Increased employment and thus higher incomes and health.
Poverty in Bangladesh:
Despite rapid economic growth, poverty remains a major issue However, since economic reforms and trade
liberalization of early 1990s, along with accelerated economic growth since early-2000s, Bangladesh have
experienced a dramatic progress in reducing poverty. The remarkable progress in poverty alleviation has been
recognized by international institutions. According to World Bank, “more than 33 million Bangladeshi people
have been lifted out of poverty since 2000”
Past Progress with Poverty Reduction:

Page 1 of 4
“Bangladesh is a relatively young country, having gained independence a little over 50 years ago. Despite
its youth, however, the country has made exceptional strides in reducing poverty and boosting shared
prosperity over the last five decades.”-The World Bank
The rate of poverty reduction in Bangladesh has slowed in recent years. By using it based on the official poverty
line, which relies on the "cost of the basic needs approach", Bangladesh has made impressive progress in reducing
poverty. Bangladesh has experienced a uniform and steady decline in poverty rates from 2000 to 2022. The
poverty rate has been halved, from 48.9% in 2000 to 18.7% in 2022, constituting an impressive average decline
of 1.54 percentage points per year. Extreme poverty declined from 34.3% to 6.5% during the same period (Table-
1). BBS Report on "Household Income and Expenditure Survey-2022"

Year Poverty Rate %

1972 88%
2023 18.7%
Source: BBS
Poverty(upper poverty line Extreme Poverty (lower poverty line)
2000 2005 2010 2016 2022 2000 2005 2010 2016 2022
National 48.9 40.0 31.5 24.3 18.7 34.3 25.1 17.6 12.9 5.6
Urban 35.3 28.4 21.3 18.9 19.9 14.6 7.7 7.6
Rural 52.3 43.8 35.2 26.4 37.9 28.8 21.2 14.9
Source: BBS report titled "Household Income and Expenditure Survey"

Source: Bangladesh Economic Review 2023

Page 2 of 4
Rural development plays a key role in poverty alleviation. Sustainable Development Goal (SDG) 1—"ending
poverty in all its forms, everywhere"—is said to be the most ambitious goal of the 2030 Agenda. Bangladesh
has committed itself to achieve the SDGs. Thus poverty alleviation ("poverty eradication" is far too ambitious
and not realistic) is a central focus of development for the government.
Causes of poverty in Bangladesh:
More than 3.3 million Bangladeshis live in extreme poverty. Poverty remains a serious problem that hinders
Bangladesh’s ambition of becoming a middle-income country. The causes of poverty are mentioned below:
 Prevalence of natural disasters.
 Lack of infrastructure.
 Colonial exploitation and neglected by the government of Pakistan.
 Industrial backwardness.
 Underdeveloped agricultural systems.
 Farm labor and wage reduction.
 High population growth and density.
 Lack of technical knowledge and limited employment opportunities.
 Rising commodity prices.
 Rising landlessness.
 Lack of female education.
 Lack of capital and unequal distribution of wealth.
 Social and political unrest.
 Impact of global recession and recent inflation.
 Imperfect utilization of natural resources etc.
Ways to eradicate poverty in Bangladesh:
In order to remove the curse of poverty from the society by accelerating the pace of economic development of
Bangladesh, we have to solve the above problems. For this purpose the following measures may be adopted:
 Agricultural and Industrial development.
 To control of population growth.
 Use of natural resources.
 Technical Education and Training.
 Solution to unemployment problem.
 Development of infrastructure and transport system.
 Social and religious bigotry.
 Formulating a sound land reform policy.
 Opportunities for farm laborers should be increased and wages should be changed.
 Foreign trade should be expanded.
Although dealing with the causes of poverty in Bangladesh are complex, the country has made extraordinary
developments since the time of its independence in 1971. Once dismissively called a “basket case” due to
rampant poverty, it is described now as “the land of impossible attainment:” it moves up regardless of
hurdles.
Government Initiatives in Rural Development:
In Bangladesh, rural development programs are mostly operated by the Local Government (District, Thana and
Union levels) and Rural Development Board of Bangladesh. The government of Bangladesh has adopted a
number of policies to reduce poverty in rural areas. The government has also implemented some following
projects for rural development,

Page 3 of 4
  Bangladesh Rural Development Board (BRDB)
Poverty alleviation through the development of the rural economy is one of the pledges of the present
government. BRDB has successfully implemented 118 projects programmes. At present, BRDB is operating 5
ADP listed projects/ programmes regarding poverty alleviation and social empowerment.
 Bangladesh Academy for Rural Development (BARD)
Bangladesh Academy for Rural Development (BARD) Cumilla is the pioneer institution for training, research,
action research and innovation for rural development in Bangladesh.
 Rural Development Academy (RDA)
The academy arranges training courses on modern technology transfer, skilled development and human resource
development.
 Palli Daridro Bimochon Foundation (PDBF)
PDBF operates 403 offices in 357 Upazilas in 55 districts. In order to create self-employment and increase
financial capacity through income-generating activities, loan assistance of Tk. 12,866 crore has been provided to
the beneficiaries. PDBF's activities have directly and indirectly provided employment to approximately 22 lakh
people and about 65 lakh people have been benefited. About 97% of the beneficiary members of PDBF are
women.
 Bangabandhu Academy for Poverty Alleviation and Rural Development (BAPARD)
BAPARD mainly conducts training and research and arranges training programmes for government and non-
government officials. It organizes conferences and seminars related to rural development and poverty alleviation
as well.
Role of NGOs in Poverty Reduction and Rural Development:
“Overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a
fundamental human right, the right to dignity and a decent life.— Nelson Mandela
The NGO has taken some significant initiatives to handle the poverty situation and rural development in
Bangladesh considering certain aspects stated below:
 Humanitarian Progress and Structural Development of Organizations for Rural Poor.
 Employment Generation.
 Organizing Groups and Participation of the Beneficiaries.
 Innovating Appropriate Technology for Small and Seasonal Farmers.
 Targeting Poor Rural Women as Beneficiary.
 Creating Facilities for Poor to Enjoy Government Owned Khas Land and Properties.
 Health, Nutrition and Hygiene.
 Relief and Rehabilitation Projects.
 Informal and Non-formal Education.
 Micro Credit.
Conclusion:
“Bangabandhu for Independence and Sheikh Hasina for Economic Emancipation”-- The Asian Age
Since independence, the country has made exceptional strides in reducing poverty and boosting shared prosperity
over the last five decades. Building on this success, the country is now setting the stage for further economic
growth and job creation by ramping up investments in energy, inland connectivity, urban projects, and transport
infrastructure, as well as prioritizing climate change adaptation and disaster preparedness on its path toward
sustainable growth. With its strong growth performance, Bangladesh is well poised to achieve its vision of
becoming a high-income country by 2041.
Engineer’s BCS Care

Page 4 of 4