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The Pattern and Determinants of Poverty in Rural Bangladesh: 2000-2010

Author

Listed:
  • Osmani, S. R.

    (Professor of Economics)

  • Latif, Muhammad Abdul

    (Director (Research and Knowledge Management))

Abstract

Three aspects of rural poverty in Bangladesh have been examined in this paper: (i) trend of poverty over the decade of the 2000s, (ii) evolving pattern of poverty among different population groups over the same decade, and (iii) identification of the major determinants of poverty in rural Bangladesh. For the first two exercises, data from the Household Income and Expenditure Survey (HIES) 2000 of the Bangladesh Bureau of Statistics were compared with data from a large-scale survey of rural poverty carried out in 2010 by the Institute of Microfinance in Dhaka. The third exercise was based solely on the 2010 survey. The major findings of the paper may be summarised as follows. First, rural poverty has declined at an accelerated pace over the decade of the 2000s, which is consistent with the observed rapid growth of the economy as a whole combined with a stable distribution of consumption expenditure. Second, poverty reduction has been a broad-based phenomenon. This is evident partly from the fact that, not just overall poverty, extreme poverty has also declined sharply in this period. Furthermore, when the population is classified according to various characteristics such as land ownership, educational status, occupation, etc., it is found that poverty has declined within each stratum, signifying broad-based poverty reduction. Third, despite the generally broad-based nature of poverty reduction, the rate of decline was not equal for everyone; some groups have fared slightly better than others—for example, the self-employed people as well as non-farm wage labourers have done better than agricultural wage labourers, who have experienced the smallest decline in poverty among all occupational groups and still remains the poorest group of all. Finally, an econometric analysis of the determinants of poverty helped identify a number of factors that can make significant contribution to poverty reduction, namely access to assets (both land and non-land assets), greater availability of working members within the household, education, access to non-farm employment opportunities, access to microcredit and foreign remittance, and greater connectivity, all of which have straightforward policy implications.

Suggested Citation

  • Osmani, S. R. & Latif, Muhammad Abdul, 2013. "The Pattern and Determinants of Poverty in Rural Bangladesh: 2000-2010," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 36(2), pages 1-41, June.
  • Handle: RePEc:ris:badest:0554
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    References listed on IDEAS

    as
    1. Osmani, S. R., 2010. "Realising the Right to Development in Bangladesh: Progress and Challenges," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 33(1-2), pages 25-920, March-Jun.
    2. Beatriz Armendáriz & Jonathan Morduch, 2010. "The Economics of Microfinance, Second Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262014106, April.
    3. Khan , Azizur Rahman, 2005. "Measuring Inequality and Poverty in Bangladesh: An Assessment of the Survey Data," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 31(3-4), pages 1-34, Sept-Dec.
    4. Zaman, Hassan & Narayan , Ambar & Kotikula, Aphichoke, 2012. "Are Bangladesh's Recent Gains in Poverty Reduction Different from the Past?," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(1), pages 1-26, March.
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    Cited by:

    1. Khan, Adnan, 2020. "A Bibliography Search on International Migration and Remittances Literature during the period of 1971-2020: A Case of Bangladesh," MPRA Paper 108143, University Library of Munich, Germany, revised 2020.
    2. Khan, Adnan & Mrs, Sultana, 2021. "International Remittances Literature: A Study in Bangladesh during the period of 1971-2020," MPRA Paper 108290, University Library of Munich, Germany, revised 2021.
    3. S. R. Osmani & Meherun Ahmed, 2013. "Vulnerability to Shocks and Coping Strategies in Rural Bangladesh," Working Papers 21, Institute of Microfinance (InM).

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    More about this item

    Keywords

    Rural Poverty; Trends of Poverty; Determinants of Poverty;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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