Little being done to reduce inequality

As per Oxfam's latest "Commitment to Reducing Inequality Index", Bangladesh ranked 148 among 157 (where a lower number means better performance) countries surveyed. That means we are only ahead of a handful of countries like Bhutan and trailing other countries in the region that includes the Maldives, Sri Lanka, Afghanistan, Pakistan, India and Nepal. The index is based on government action on social spending, tax and labour rights, which are considered essential to reduce the gap. We have not done well on social spending (score 146), slightly better on taxation (103) and dismal on labour rights (148). Those countries in the world where governments are taking strong policy measures to fight inequality are doing better. In Bangladesh, taxation is neither gender sensitive nor are we broadening our tax base to bring more people under the tax net.

Bangladesh scored very poorly on labour practices. Readymade garments sector, which is by far one of the largest employer of workers, is an area that needs greater focus. Workers are entitled to Tk 5,300 (USD 68) per month which happens to be the lowest minimum wage of all garment workers globally. It is also far below the living wage demanded by RMG workers. But then workers in other sectors are entitled to Tk 1,500 (USD 19) per month, which means they are even worse off.

The wage gap in the country is widening and the government should formulate plans to increase progressive taxation and clamp down on tax dodging by both institutions and individuals. There is a need to give more rights to workers by allowing greater unionisation in industry and putting a check on poor labour practices. Finally, the government needs to seriously increase spending on health, education and broaden overall social safety net programmes.