Economy in 'continuity of crisis', people's well-being must be prioritised: Hossain Zillur

Bangladesh's economy is facing a "continuity of crisis" and policymakers must focus on people's well-being alongside macroeconomic indicators, said Power and Participation Research Centre (PPRC) Chairman Hossain Zillur Rahman.

He made the remarks while presenting the organisation's latest research report, State of the Real Economy: Household Realities and Policy Options Towards Strengthening Economic Democracy, at a dissemination event in Dhaka today (25 August).

Hossain Zillur said the economy, even one year after the July mass uprising and on the verge of graduating from Least Developed Country (LDC) status, is facing challenges similar to those seen during the Covid-19 pandemic, high inflation in 2023, and ongoing political uncertainty in 2024–25.

According to the research, poverty in Bangladesh has risen by nearly 10%, reversing earlier progress. It also found that about 18% of families, though above the poverty line, remain at extreme risk of falling back into poverty.

The report identified five new types of vulnerabilities that worsen people's lives.

These include the burden of chronic diseases, with 51% of households having at least one member suffering from such conditions. 

Female-headed households are particularly vulnerable, accounting for almost 24% of the ultra-poor.

Among the poorest 40% of families, debt levels are at least double their savings. Food insecurity remains severe, as 8.8% of ultra-poor families reported being unable to afford even one meal in the last month.

Hossain Zillur also highlighted stagnation in achieving Sustainable Development Goals (SDGs), noting that 36% of households still rely on unhygienic toilets, signalling slow progress in safe sanitation.

On employment, the report described the situation as an "employment emergency."

While 38% of respondents identified as employed, many work less than 40 hours a week, reflecting disguised unemployment.

Female labour force participation remains low at 26%, and 45% of workers are self-employed, indicating widespread job uncertainty.

Despite the challenges, the PPRC chairman pointed to several positive indicators.

He cited remittances, digital readiness, and a large domestic consumer market as sources of resilience.

About 74% of families own smartphones, signalling growing digital capacity, while the domestic market is valued at nearly $211 billion.

The report made a set of policy recommendations. In the short term, it called for new social protection programmes to help reduce the cost of treatment for chronic diseases.

For the medium term, it suggested forming a public-private task force to address the employment crisis.

In the long run, the PPRC recommended that the government regularly collect and analyse socioeconomic data and incorporate people's perspectives into economic planning, focusing on equity, justice, and citizens' well-being alongside GDP growth.

"The reality is difficult, but urgent action is needed," Hossain Zillur Rahman said.