Dr Atiur questions research data on new poor

Unnayan Shamannay Chairman Dr Atiur Rahman has raised questions regarding the number of new poor amid the Covid-19 crisis – unearthed in recent studies conducted separately by research organisations Sanem and Bangladesh Institute of Development Studies (BIDS).

Dr Atiur – who is also a former governor of the Bangladesh Bank – at a webinar on Sunday said, "The production of agricultural goods grew by 3%, exports rose 15% and remittance went up by 39%. So, unless income inequality is rampant, the poverty rate should not increase from 21% to 43% after the pandemic struck Bangladesh.

"The BIDS also says the rate of poverty has increased from 21% to 28%. This is also a bit too much, as many macroeconomic indicators are stable."

Addressing the event, titled "Protection of Lives and Livelihoods: Reflection on National Budget" and organised by the Democratic Budget Movement, Dr Atiur continued as the chief guest, "There is no denying that the Covid-19 crisis has created new poverty.

"But organisations must provide a credible figure regarding this issue, otherwise no one will accept it. The finance minister has not accepted such figures either. The government should conduct a survey through the Bangladesh Bureau of Statistics on this issue as soon as possible."

When speaking about how a budget should be under the current precarious situation, Dr Atiur said, "Thousands of entrepreneurs had launched their ventures amid the pandemic. They have no trade license, permanent address or TIN certificate. So the banks are not giving them loans.

"The budget should have contained proposals about these people, as it was introduced as a budget of lives and livelihoods. The authorities should come up with an easy system to support them."

He recommended using the mobile financial services to verify the identity of these entrepreneurs and which will give them the opportunity to apply for loans. 

Dr Atiur pointed out that many small and medium entrepreneurs did not receive the assistance provided under the Covid-19 stimulus package due to the lack of an effective distribution method.

He continued, "Authorities are saying that 83% of the stimulus package has been implemented. But 100% of the money went to the big entrepreneurs, while small and medium ones received nothing. 

"We must find a way to deliver the money to these people so that they can safeguard their lives and livelihoods. But the budget mentions no specific way to achieve this feat."

Dr Atiur then spoke in favour of suspending the parliament's budget session, and recommended that the parliamentary standing committee members from different sectors discuss major issues regarding the budget so that it can be inclusive.

Speaking at the event, Lawmaker Fazle Hossain Badsha said, "There was an attempt to hold a discussion through parliamentary standing committees, but it did not go anywhere. The lawmakers do not get many opportunities to speak about the budget, how will it be inclusive?"

He continued, "The government should focus more on the health sector to safeguard and recover the people's lives and livelihoods. But the proposed budget did not reflect this at all. We need 13 crore doses of the Covid-19 vaccine.

"However, the proposed budget has no guidelines on how these doses will be imported and distributed, and who will manufacture them. These issues should have been included there."

ActionAid Country Director Farah Kabir said, "The proposed budget should have focused more on the education and youth sectors, but this is not the case. There are no guidelines regarding skill development and employment of youths who are ready to enter the job market."

Terming the health sector budget as inadequate, she added, "Under the current circumstances, protecting the people's health is the most important issue here. We cannot protect their livelihoods unless we protect their lives first."

"Those who died of Covid-19 must have left their families in serious trouble. But we all know about the corruption and irregularities in the health sector. If the education and mental health sectors in Bangladesh become troubled, what good will the GDP growth do?" she added.