It's time to rethink eliminating social inequality in Bangladesh

Many countries across the world, both rich and poor, are experiencing rapid growth in the gap between the wealthiest people in society and everyone else over the past 30 years. This inequality crisis is characterised by a situation in which just eight men own the same wealth as the poorest 3.5 billion people. Failure to address this growing crisis is undermining social and economic progress and, crucially, the fight against poverty.

Oxfam's global research has shown that, since the turn of the century, the poorest half of the world's population has received just 1% of the total increase in global wealth, while the top 1% has received 50% of the increase.

Inequality is detrimental to all. It has been linked with crime and insecurity, lower economic growth, poor health, and other negative outcomes. The consequences for the world's poorest people are particularly severe. The widening gap between rich and poor is hindering the fight against poverty, damaging economies, and fuelling public anger across the globe.

Bangladesh – time to fight inequality and end poverty for good governance

Bangladesh is transitioning from a least-developed country to a middle-income nation, with aspirations of becoming a high-income country by 2041. The country has registered consistent economic growth for over a decade. Bangladesh gained its independence through bloodshed, with inequality and discrimination between the Eastern and Western wings of Pakistan serving as the primary catalysts. As a result, three pillars—equality, human dignity, and social justice—were enshrined in its Declaration of Independence. Achieving these objectives remains imperative for the country.

In 2015, the leaders of 193 governments committed to reducing inequality as part of the Sustainable Development Goals (SDGs). Bangladesh is among those countries, and there is no doubt that both the government and civil society are making strides towards achieving its 17 targets.

However, stark economic inequality and significant disparities persist across different socio-economic aspects of people's lives. These include inequalities in access, outcomes, and quality of education, healthcare, judicial, and public services. These disparities are accompanied by growing income inequality and a slowdown in the rate of poverty reduction, despite steady economic growth in recent decades (UNDP, 2023).

There are external challenges, as Bangladesh is subject to global forces beyond government control, such as pressures to lower wages and tax rates. The worldwide system of tax havens, which limits the government's ability to act, is a clear example. Nevertheless, despite these global constraints, most development organisations believe that the government has considerable power to reduce the gap between rich and poor. If this were not the case, there would not be such variation in policy actions across different countries. Therefore, it is vital to measure and monitor government policy commitments to reducing inequality.

At the same time, it is crucial to examine how inequality is obstructing efforts to end poverty in Bangladesh. The government and other relevant stakeholders must take pragmatic steps to address this issue and implement policies that benefit all citizens.

Government efforts and the way forward

We acknowledge the Government of Bangladesh for its significant and commendable role in reducing poverty, supported by sustained economic growth. During the recent Economic Summit at the World Economic Forum in Davos, Switzerland, the Honourable Chief Adviser of Bangladesh stated:

"We must ensure that inequality across societies does not widen in times of faster growth. Wealth creation should be inclusive and must trickle down to the bottom millions. The less developed communities or countries should not lag behind. We must meet the aspirations and demands of our youth. We need to extend our hands to others across South Asia through our knowledge, experience, expertise, investments, and integration."

Bangladesh has experienced various ups and downs. One way to eliminate social inequality is not to discard past policies but to build upon those that have already instilled hope and played a positive role in socio-economic development. Collaboration among political parties, civil society, and intellectuals is essential in strengthening and sustaining effective policies.

Moreover, conscious groups in society must continue to exert pressure to ensure that political parties include pledges to reduce social inequality in their election manifestos. These pledges should also be accompanied by clear implementation strategies. By working together, Bangladesh can take decisive steps towards reducing inequality and ensuring a more just and prosperous future for all.

Monjur Rashid is a Researcher, Social Analyst and Policy Advocate

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.