Determinants of Rural Poverty in Bangladesh

1.1.  Introduction

Bangladesh is one of the poverty-stricken countries in the world, with a large population. Here, most of the population, especially in the rural areas, lives below the poverty line. Behind this poverty, numerous factors contribute to or exacerbate extreme poverty. Although the agricultural sector is the main source of income for this country, unfortunately, it has completely failed to create rewarding employment opportunities for the landless. Poverty hinders a country's progress.

1.2. Definition of Rural Poverty

Those who are landless farmers or small and marginal farmers are typically identified as the rural population most affected by poverty.

Rural poverty refers to poverty found in rural areas, encompassing factors such as rural society, economy, and political systems that contribute to the poverty prevalent there (Janvry et al., 2002).

Rural poverty is often discussed in conjunction with spatial inequality, which in this context refers to the disparity between urban and rural areas (Kanbur, R., and Venables, A.J., 2005).

Rural poverty is often a product of poor infrastructure that hinders development and mobility (Jazaïry et al, 1992)

1.3. Present Situation of Poverty in Bangladesh

• 31 percent of rural people presently suffer from low consumption, hunger, undernutrition, illiteracy, and basic health services.
• 24 percent live in extreme income poverty.
• About 19 percent of rural households cannot have ‘full three meals’ a day.
• Approximately 40 million people go to bed without having eaten a meal every night.
• However, 47 percent of people are staying below the poverty line, and 28 percent of our population lives under the extreme poverty line. (Report on The Daily Star, May 01, 2006).

1.4. Main Determinants of Rural Poverty in Bangladesh

1.4.1.      Rapid Population Growth

In Bangladesh, a high population growth rate is a primary determinant of rural poverty. There are about 14,97,72,364 in total Population. The Growth Rate is 1.37 and the Density of population is 1015 (Per Sq. km) (Bangladesh Population and Housing Census 2011). Another source states that 76% of the total population resides in rural areas, and 40% of the population lives below the national poverty line (World Bank, 2009).

1.4.2.      Inequitable Distribution of Wealth

As the population grows, the land is divided into smaller areas. As a result, the food production is declining. Moreover, in our country, 80 percent of the people own 20 percent of the land, and 20 percent of the people own 80 percent of the land. As a result, the poor lack access to land, and they remain impoverished.  

1.4.3.      Death of the Chief wage-earner

In Bangladesh, most families are patrilineal. Here, the father is the main earner for the family. If he dies by any cause, then the family suffers a loss. And they gradually become poor. After the father's death, the elder brothers and sisters had to maintain the family, and thus they joined different sectors earlier to earn their livelihood. As a result, it hampers education, leads to living in a slum, addiction to drugs, etc.

1.4.4.      Illiteracy

Illiteracy is one of the key factors contributing to rural poverty. Most people living in rural areas are illiterate. They lack extensive knowledge about education. Rural people are unfamiliar with the principles of systematic production. They are not aware of using scientific instruments to cultivate their lands properly.

1.4.5.      Physical Disabilities

Physical disabilities of the members of a rural family are an obstacle to the development of their financial condition. People with physical disabilities are not able to earn money for the maintenance of the family. So it is the reason for creating rural poverty.

1.4.6.      Largeness of Family

It is the most important cause of poverty in rural Bangladesh. Here, the family is extended and includes a large number of members. They have mainly a few earners, and they earn a little to support the family.

1.4.7.      Low wage

Bangladeshi workers in factories involved in leather processing, shoe manufacturing, jute yarn production, shrimp processing, and pharmaceutical production receive the world’s lowest wages. In Bangladesh, people in the workforce receive low wages. Here, a distinction is also made between males and females. For example, we see that a male receives 200- 250 TK per day, whereas a female receives 120- 150 TK per day.

1.4.8.      Habit: Drinking and Gambling

Research on drinking patterns among women generally indicates that women consume less alcohol than men (Wilsnack, 1996). In rural Bangladesh, however, alcohol consumption can have multiple adverse effects. Drinking can exacerbate mental health issues and negatively impact marital relationships, creating tension and conflict. It also harms relationships with other family members, including children, and can disrupt social life by affecting interactions within the community. Additionally, alcohol use has detrimental financial consequences and poses serious risks to physical health, making its overall impact on individuals and families profoundly harmful.

1.4.9. Unemployment

Unemployment is one of the primary factors contributing to rural poverty in Bangladesh. Rural people are unemployed. It is growing day by day. Employment opportunities are not available there.

1.4.10.  Landlessness

Landless people have no power. They are always dominated by others. Rural poverty is also created by the landlessness of the people.

1.4.11.  Chronic Shortage of Cash

It is also responsible for rural poverty. In rural areas, people have a shortage of cash. They can’t use the money for long-term investment.

1.4.12.  Corruption

Corruption exists both in rural and urban areas of Bangladesh. Corrupt individuals are becoming richer by the day. However, the common people in rural areas are deprived of their basic rights.

1.4.13.  Malnutrition

Malnutrition is a significant problem in rural Bangladesh, largely due to poverty. Here, most people do not receive a full meal or access to medical facilities. Unhealthy people don’t do hard work; as a result, they remain poor.

1.4.14.  Child Marriage

Most of the village parents consider their female children a burden on society. As a result, they arrange the early marriage of their female children.

1.4.15.  Gender Discrimination

However, women in Bangladesh are dominated by a patrilineal and patriarchal kinship system, which enforces the social and economic dependence of women on men and prescribes the relatively lower status of women. Although there has been steady progress in reducing gender inequality in different sectors (education, health, employment, etc.), there exists a huge inequality in these sectors of Bangladesh, and the participation of women is very low compared to their male counterparts. Gender inequality has emerged as a significant obstacle to achieving the development target.

1.4.16.  War and Terrorism

Due to the war, prices have increased, which is why rural people suffer greatly. In the course of war, crops, roads, and houses are destroyed. It also hampers our business sectors. As a result, it causes famine.

Bangladesh famine of 1974	Bangladesh famine of 1974
Period	1974-1977
Total deaths	1 million
Observations	War
Relief	None provided
Impact on demographics	The population of Bengal declined

(From Wikipedia, the free encyclopedia)

1.4.17.  Absence of food reserves

Bangladesh is an agriculture-based country. Here, most people are directly or indirectly involved in agriculture. Most of the crops are produced in the rural area, but they don’t reserve food for the future. As a result, the rural people suffer from a lack of food.

1.4.18.  Crime and Violence

Crime and violence are also responsible for the rural poverty in Bangladesh.  It hinders the country's progress.  Crime and violence are also acute in rural Bangladesh. For this reason, rural people can’t improve their financial condition.

1.4.19.  Natural Calamities

Bangladesh is highly vulnerable to the impacts of climate change, with about two-thirds of its land lying less than five meters above sea level, making it one of the most flood-prone countries globally. The country has experienced severe climate-related disasters, including Cyclone Aila and Cyclone Sidr, as well as extensive river erosion. For instance, Cyclone Sidr alone resulted in the deaths of approximately 4,000 people.

1.4.20.  Communication System

The communication system is also a contributing factor to rural poverty. For an underdeveloped communication system, the business sector can’t develop. Rural people often lack access to modern lighting due to an underdeveloped communication system. In rural areas, most of the roads are muddy. As a result of the rainy season, people depend on boats.

1.4.21.  Lack of Education

Governments of developing countries often struggle to afford to provide quality public schools, especially in rural areas. Whereas virtually all children in industrialized countries have access to an education. Poor people also often forego schooling to concentrate on making a minimal living. A report states that in rural Bangladesh, individuals aged 7 and above can write a letter for communication (Literate), at a rate of 54.1% (The Bangladesh Literacy Survey, 2010).

1.4.22.  Lack of Public Awareness

In rural areas, there is also a lack of public awareness. The rural population is generally less educated. Most of them are illiterate. As a result, they do not know the ways to remove poverty.

1.4.23.  Political Factors

Sometimes village politics are very dangerous. Bad political leadership hampers a country's improvement.  Political instability is also a significant contributor to rural poverty. For example, we can observe an unstable situation in the elections for the chairman or members.

1.4.24.  Inadequate policies of the Government

Governance refers to the way in which power is exercised in managing a country’s social and economic resources to promote development. Good governance is a critical prerequisite for poverty reduction, as it provides the regulatory and legal framework necessary for the effective functioning of land, labor, capital, and other factor markets. In rural Bangladesh, the lack of effective governance has resulted in the improper distribution of essential utilities, leading to a gradual impoverishment of village communities over time.

1.4.25.  Lack of Industrialization

In rural areas, there is no industrialization. Rural people often lack job opportunities. Most of them are unemployed. As a result, they are absorbed in poverty.

1.4.26.  Inadequate Housing

In rural areas of Bangladesh, people are building houses to destroy the cultivable lands. The cultivable lands are declining day by day, and they are becoming poorer.

1.4.27.  Conservative Idea

Conservative ideas also affect rural poverty. For that reason, women often don’t go outside for work. Prejudice is more prevalent among rural people than among urban people. So, a conservative idea is responsible for rural poverty.

The other causes that are responsible for rural poverty are mentioned below:

•          Dowry
•          Family  Decline
•          Exploitation
•          Illness
•          Depression

1.5.            Poverty Profile in Bangladesh: Lower Poverty Line( Extreme Poverty)

Division	2005	2005	2010	2010
	Rural	Urban	Rural	Urban
Barisal	37.2	26.4	27.3	24.2
Chittagong	18.7	8.1	16.2	4
Dhaka	26.1	9.6	23.5	3.8
Khulna	32.7	27.8	15.2	16.4
Rajshahi	35.6	28.4	16.4	14.4
Rangpur			29.4	17.2
Sylhet	22.3	11	23.5	5.5

1.6.     Poverty Profile in Bangladesh (Lower Poverty Line

Division	2005	2005	2010	2010
Division	Rural	Urban	Rural	Urban
Barisal	54.1	40.4	39.2	39.9
Chittagong	36	27.8	31	11.8
Dhaka	39	20.2	38.8	18
Khulna	46.5	43.2	31	35.8
Rajshahi	52.3	45.2	29	32.2
Rangpur			44.5	27.9
Sylhet	36.1	18.6	30.5	15

1.7.            Bangladesh Poverty Headcount

Area	Upper  poverty line	Upper  poverty line	Lower  poverty line	Lower  poverty line
	2005	2010	2005	2010
National	40.0	31.5	25.1	17.6
Rural	43.8	35.2	28.6	21.1
Urban	28.4	21.3	14.6	7.7

According to the table above, the rural poverty rate in Bangladesh has decreased. Some basic causes are given below.

—      Over the 40 years since liberation, Bangladesh has achieved significant economic and social progress, with per capita income increasing fourfold and poverty reduced by more than half.

—      The country was recognized by the UN for achieving one of the Millennium Development Goals (MDGs) through a substantial reduction in child mortality.

—      By 2015, the MDG target for reducing the national poverty headcount rate was set at 29.4%.

—      Bangladesh Bank’s monetary and credit policies aim to maintain price stability and promote inclusive economic growth.

—      The country is on track to achieve most of the MDGs by or before 2015.

—      Poverty, measured by the upper poverty line of 2,122 kcal food intake, declined from 57% to 49% during the 1990s and further to 40% by 2005.

—      Life expectancy improvements have been experienced equally among both poor and rich populations.

—      Child mortality fell by two-thirds, while maternal mortality decreased by three-quarters.

—      Family planning initiatives have empowered women, contributing to lower fertility rates, better health, increased autonomy, and poverty reduction.

—      Bangladesh successfully mitigated declines in rural household incomes that usually exacerbate extreme poverty.

—      Real agricultural wages increased by 59% between 2000 and 2010, compared with a 42% rise across all sectors.

—      Around 6 million Bangladeshis work abroad, sending back USD 13 billion in FY 2011-12, roughly 14% of national income.

—      Between 1980 and 2010, Bangladesh’s Human Development Index (HDI) improved by 81.1%, surpassing India (62.2%), Pakistan (57.6%), and Sri Lanka (28.3%).

—      (References: Disbursement and recovery of BSCIC for FY 2010-11 & Banking System in Bangladesh, Atiur  Rahman, PhD, 2012)

1.8.   Way to Poverty Alleviation in Rural Areas

·         Control Population Growth

·         Ensure Education

·         Promoting Gender Equality

·         Increase Food Production

·         Female Secondary Stipend Programs

·         Employment Opportunities

·         The Role of Family

·         One house, one Farm

·         Development in agriculture

·         Increase Income

·         Create Public Awareness

·         Provide Coordination

·         Reduce Corruption

·         Create Industrialization

·         Development of Cottage Industry

·         Infrastructure Development

·         Ensuring Proper Distribution of Wealth And Land

·         Ensuring Medical And Housing Facilities

·         Political Stability

·         Community Policing

·         Adequate law and Enforcing Agencies

·         Accountability

·         Reduce Prejudice

·         Remove Discrimination

·         Eradicate Violence

·         Remove Social Problems

·         Create More Job Sectors

·         Provide Trainings For the Rural People and so on.

1.9. Conclusion

From the above discussion, we can conclude that rural poverty is a vital factor hindering the progress of rural development in Bangladesh. There are many determinants that contribute to rural poverty, such as rapid population growth, illiteracy, low wage rates, malnutrition, and unequal wealth distribution. To alleviate rural poverty in Bangladesh, we must take several necessary steps, including controlling population growth, ensuring access to education, promoting gender equality, increasing food production, implementing female secondary stipend programs, and providing employment opportunities.

 

 

 

References

—  Banking System in Bangladesh & its Role in Poverty Reduction by Atiur Rahman, Ph.D.

—  www. Weakipedia.com

—  Report on The Daily Star, May 01, 2006

—  Disbursement and recovery of BSCIC for FY 2010-11

—   Bangladesh Population and Housing Census 2011