Family Card could lift 1.23cr people out of poverty, study finds

The Family Card programme, if fully implemented and reaching its target population, could lift 1.23 crore people out of poverty, according to a study by Research and Policy Integration for Development (RAPID).

Mohammad Abdur Razzaque, chairman of RAPID, presented the findings today (12 March)  at a seminar held at a hotel in Gulshan, Dhaka. Citing the 2022 Household Income and Expenditure Survey (HIES), he noted that the overall poverty rate in Bangladesh stands at 18.7%.

"Simulations using HIES 2022 data suggest that providing Tk2,500 per month to all poor and vulnerable households through the Family Card programme would significantly reduce poverty and vulnerability," Razzaque said.

He added, "Overall poverty would decline from 18.7% to 11.3%, while extreme poverty would fall from 5.6% to 2.2%. The vulnerable population – those within 25% above the poverty line – would decrease from 15.3% to 5.9%, reducing by about two-thirds."

The study also estimated that, in absolute terms, full coverage under the scheme would lift 1.23 crore people out of poverty, reduce the number of extreme poor by 56 lakh, and move 1.56 crore people out of vulnerability.

Prime Minister Tarique Rahman had promised the nationwide rollout of the Family Card programme prior to the election as part of his party's manifesto. Following the government's formation, steps to implement the scheme have already begun, with a pilot programme underway in Dhaka's Korail slum.

Razzaque told The Business Standard that if the promised funds are correctly distributed to households below the poverty line, the country could see tangible poverty reduction results in the year of implementation.

Three-story house owner got into the list: Welfare secretary  

Addressing issues during the data collection phase, Social Welfare Secretary Mohammad Abu Yusuf highlighted challenges and complaints regarding programme targeting. 

"We have received complaints that even a family with three-story houses got listed in the programme. How did this happen? During data collection, the field collectors reported being influenced by an opposition party, whose personnel apparently manipulated the process," he said. Abu Yusuf added that ensuring proper coordination remains a major challenge for the programme.

Highlighting past shortcomings, the seminar noted that approximately 63% of poor people did not benefit from any form of social safety net under previous government programmes.

The seminar, organised by RAPID with support from UK International Development, emphasised the importance of proper data collection and a transparent selection process to ensure that the Family Card reaches genuine beneficiaries. Abu Yusuf moderated the event, while Mohammad Abu Yusuf attended as the chief guest.