Inequality in Bangladesh remains stable over 12 years: WB economist
The findings are detailed in a policy research paper published in April, titled “Rebuilding 2010-2022 Poverty and Inequality Trends in Bangladesh: A Statistical Matching Approach.”
Inequality in Bangladesh has remained relatively stable over the past 12 years, according to Sergio Olivieri, senior economist at the World Bank.
Olivieri presented the findings at a seminar organised by the Bangladesh Institute of Development Studies (BIDS) on Wednesday (5 June).
His presentation, "Comparing Apples to Apples: Rebuilding 2010-2022 Poverty and Inequality Trends in Bangladesh via Statistical Matching," showed that Gini coefficients from 2010 and 2016 indicated consistent inequality levels.
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The seminar, moderated by Dr Binayak Sen, director general of BIDS, included Dr Moshiur Rahman, economic adviser to Prime Minister Sheikh Hasina.
The findings are detailed in a policy research paper published in April, titled "Rebuilding 2010-2022 Poverty and Inequality Trends in Bangladesh: A Statistical Matching Approach."
The research used a new methodology to analyse data from the Bangladesh Bureau of Statistics (BBS), highlighting the urgent need for consistent consumption data to analyse poverty, extreme poverty, and inequality over time.
It found that the 2022 poverty lines were 21% and 19% higher than the 2010 and 2016 lines, adjusted for inflation, while extreme poverty lines increased by only 6%.
These adjustments suggest that poverty rates would be higher with consistent data—the 2016 poverty rate would have been 1.7 to 2.3 points higher, and extreme poverty 3.5 to 3.7 points lower.
For 2010, poverty would have been 5.5 to 5.8 points higher, and extreme poverty 5.1 to 5.4 points lower.
Sergio Olivieri noted that using national lines would have resulted in higher poverty rates in 2010 and 2016 but lower extreme poverty rates. He added that inequality has remained stable over the past twelve years due to including previously unaccounted-for items in the 2010 and 2016 data.
The poverty rate is now 18.7%, down from 24.3% in 2016, according to the 2022 Household Income and Expenditure Survey by the BBS. Similarly, extreme poverty has decreased, with the rate dropping to 5.6% in 2022 from 12.9% in 2016.
Dr Binayak Sen noted that inequality varies in food consumption, with some unable to afford eggs or fish and others only able to afford rice.
He said that a comprehensive review shows the extreme poverty rate in Bangladesh has significantly decreased. Sergio Olivieri and his team used a new method to review data from the Bangladesh Bureau of Statistics and found the same result.
He added that it is positive that inequality has remained stable from 2010 to 2022 and should be acknowledged.
Dr Sen also mentioned ongoing concerns about rising income inequality despite the decrease in poverty, and BIDS will research this issue.
