Trapped in poverty
Forty-two percent of rural households cannot move out of poverty sustainably, while 13 percent households are trapped in extreme poverty, a BIDS study has found.
The paper was presented at the three-day annual BIDS Conference on Development-2021, which concluded yesterday.
The study found that 87 percent of the rural households are trapped between extreme poor and moderately poor, implying their daily income fluctuates between USD 1-2 per day, but cannot move more than USD 2 per day.
Maria Eugenia Genoni, Mansur Ahmed, Pablo Tillan and Madhur Gautam, four World Bank economists, conducted the study titled "Bangladesh Rural Income Diagnostics" by surveying 62 villages and analysing data from a range of recent surveys and censuses conducted by the government and the UN organisations.
According to the researchers, Bangladesh has some remarkable achievements in reducing rural poverty, but these achievements have neither been uniform nor sustainable.
Researchers also pointed out the over-dependency on agriculture, particularly rice cultivation, as the major reason behind such fragile achievements in poverty reduction.
"Although many crops offer farmers higher returns than rice, most farmers continue to grow rice due to lack of a supportive agricultural policy from the state," commented Maria.
Sixty percent rural women of working age remain engaged in unpaid agricultural activities. Their earning potential remain largely untapped because of this very reason, the study also found.
The researchers recommended three steps to increase income of rural households, namely diversification and modernisation of agriculture by focusing more on higher value-added crops, livestock and fishing products; engagement of women to skilled and paid works; and development of small cities and towns so that more men and women can engage in non-agricultural and paid activities.
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