Assignment 4204
Assignment 4204
What Is Poverty?
The term poverty refers to the state or condition in which people or communities lack the
financial resources and essentials for a minimum standard of living. As such, their basic human
needs cannot be met. People and families who live in poverty may go without proper housing,
clean water, healthy food, and medical attention. Each nation may have its own criteria for
determining the poverty line and counting how many of its people live in poverty. Poverty is a
socioeconomic condition that is the result of multiple factors—not just income. These factors
include race, sexual identity, sexual orientation, and little to no access to education, among
others.
Understanding Poverty
Poverty refers to the lack of adequate financial resources such that individuals, households, and
entire communities don't have the means to subsist or acquire the basic necessities for a
flourishing life. This means being so poor as to struggle to obtain food, clothing, shelter, and
medicines.Poverty is both an individual concern as well as a broader social problem. On the
individual or household level, not being able to make ends meet can lead to a range of physical
and mental issues. At the societal level, high poverty rates can be a damper on economic growth
and be associated with problems like crime, unemployment, urban decay, education, and poor
health.Governments often put social welfare programs in place to help lift individuals, families,
and communities out of poverty. Some countries have stronger welfare states (social safety nets)
than others. For instance, the U.S. tends to be much more individualistic and shuns welfare
programs. European countries, in comparison, have a much broader range of welfare programs
and support for those in need.
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● Wage inequality: people with lower skills and education find it hard to get a job. Even if
they do, they are underpaid or exploited. This is harmful in economies that do not have a
minimum wage level or unemployment benefits as it can add to the relative poverty index.
The increase in more part-time and temporary jobs has decreased the demand and need for
full-time jobs with proper skills. Hence, there is a divide in wages.
● Unemployment: the rapid demand for more temporary jobs and part-time jobs has left
individuals underemployed and has created a limit to potential income-earning
opportunities. The changing structure of the Bangladesh economy as a result of
deindustrialisation has resulted in the loss of jobs. The Covid-19 pandemic has made things
worse: in the past years, the country has recorded the highest unemployment levels and the
number of furloughed workers. This has resulted in structural unemployment and
hysteresis.Hysteresis occurs when someone is unemployed for a long time. This deteriorates
their skills and makes it difficult for the person to find jobs. Ultimately, it leads to long term
unemployment.
● Economic inactivity: long term unemployment leads to economic inactivity as people who
are unemployed would seek more government benefits to sustain themselves. In recent
years, the percentage of people relying on state benefits has alarmingly increased, which
shows an increase in the relative poverty index.
● Regressive taxes: indirect taxes have potentially put a higher burden on the poor, therefore
causing an increase in income inequality. Although the overall tax burden has remained
unchanged, the indirect tax and VAT charged on certain goods such as petrol, alcohol and
others extract a higher percentage of income from the low-income earners especially when
they are affected by unequal wages.
Pensioners and old age: pensioners are more at risk of relative poverty as they earn significantly
less than the average. However, pension poverty has seen a sharp decline due to the rise in the
real value of state pension.
● Inheritance: this allows wealth inequality to be passed on and multiplied from generation to
generation.
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Impact and effects of poverty
Poverty is a very dangerous issue in today's society and has effects that impact not only
individuals but may result in destabilising whole economies.Some of the effects of poverty on
individuals and the economy are listed below:
● Health: high rates of poverty lead to lower life expectancy, poorer standards of health,
and underdeveloped infants. Malnutrition has been an important issue of increasing
poverty that affects children's cognitive development.
● Poor sanitation: people living in poverty are not able to access basic safe sanitation,
which makes them vulnerable to fatal diseases. This may relatively not impact as much
but it shows how it affects their situation.
● Education: reports mention people living in poverty often have to choose between eating
a meal or getting an education. In certain economies with high poverty index, children are
forced to work in order to support the family, which leaves them with poor literacy skills.
This limits their ability as adults to escape the vicious poverty cycle.
● Economy: without proper education, it is difficult to progress into a higher paying job
with good opportunities. This hinders a country’s economic growth and productivity.
Most developing countries are shown to have a high poverty rate which limits their rate
of economic growth.
● a sharp decline due to the rise in the real value of state pension.
● Homelessness, or extreme poverty, carries with it a particularly strong set of risks for
families, especially children. Compared to children living in poverty but having homes,
homeless children are less likely to receive proper nutrition and immunization. Hence, they
experience more health problems. Homeless women experience higher rates of low‐birth‐
weight babies, miscarriages, and infant mortality, probably due to not having access to
adequate prenatal care for their babies. Homeless families experience even greater life stress
than other families, including increased disruption in work, school, family relationships, and
friendships.Poverty can create considerable stress for families. As per the family stress
model, poverty can contribute to interparental conflict, which plays a key role in family
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dynamics and can be a precursor to negative child outcomes. Conflict can also arise between
children and parents because of economic pressures. For example, children may resent
parents for having to work late or not being able to provide small luxuries. Finally, the living
conditions associated with poverty - notably overcrowded housing and housing instability -
can negatively affect all family relationships, including sibling relationships
● Poverty can make it difficult for parents to maintain a work-life balance that allows them to
spend time at home caring for their children and to be active and involved with school,
extracurricular activities, and community life. Parents on a low income are more likely to
work long hours in precarious jobs that do not provide basic supports like parental leave and
sick pay. Low-income workers typically also have less flexibility and choice than other
parents (for example, they must rely on public transportation and do not have access to
work-from-home options)
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Major Types of Poverty
1. Absolute poverty
2. Relative poverty
Absolute poverty: Also known as extreme poverty or abject poverty, it involves the scarcity of
basic food, clean water, health, shelter, education and information. Those who belong to absolute
poverty tend to struggle to live and experience a lot of child deaths from preventable diseases
like malaria, cholera and water-contamination related diseases. Absolute Poverty is usually
uncommon in developed countries.
It is measured as the percentage of the population living below the international poverty line of
US$0.90 a day in 2011 prices.” In other words, if you are living on less than $0.90 a day, you are
considered to be in absolute poverty.
Relative Poverty: It is defined from the social perspective that is living standard compared to the
economic standards of population living in surroundings. Hence it is a measure of income
inequality. For example, a family can be considered poor if it cannot afford vacations, or cannot
buy presents for children at Christmas, or cannot send its young to the university.
In most developed countries, the official poverty line is set at 50% of the median household
income. This means that if you are earning less than 50% of what the average person in your
country is earning, you are considered to be in relative poverty.
Meaning
Absolute poverty is a state of being in which a person lacks the necessities of life, such as food,
clothing, and shelter. In contrast, relative poverty is a condition in which a person’s income is
insufficient to meet his or her needs when compared to others in society.
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Causes
The causes of absolute poverty are many and varied, but they can be grouped into three main
categories: natural disasters, economic factors, and political factors. Natural disasters include
things like droughts, floods, and earthquakes that can destroy crops or homes and leave people
without food or shelter. Economic factors such as inflation or a country’s debt can also lead to
absolute poverty. And finally, political factors such as war or corrupt governments can also
contribute to absolute poverty.
Impact
The impact of absolute poverty is both immediate and long-term. In the short term, people who
are living in absolute poverty lack the necessities of life and are often forced to go without food,
clean water, shelter, and medical care. This can lead to disease, malnutrition, and even death. In
the long term, absolute poverty can trap people in a cycle of poverty that is difficult to escape.
Children who grow up in absolute poverty are more likely to drop out of school, have difficulty
finding jobs as adults, and live in poverty themselves as adults.
Conclusion
Absolute poverty is the state of being without basic human needs such as food, water, and
shelter. Relative poverty, on the other hand, is a measure of income inequality that compares
people’s incomes to those of others in their society. It looks at how well off the poorest members
of society are in comparison to the rest of the population. While both types of poverty are serious
issues that need to be addressed, relative poverty is generally seen as a bigger problem because it
can trap people in a cycle of disadvantage. This is why many countries now use relative poverty
measures when developing policies to reduce poverty.
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Trend & Magnitude of Poverty
The number of people worldwide who live on less than $1.90 a day is known as a global poverty
trend. Bangladesh has recorded remarkable progress in improving welfare and halving the
poverty rates since 2000. However, the pace of job creation and poverty reduction slowed over
the last decade. Estimated poverty went from 13.47 in 2016 to 10.44 in 2022 (using the
international poverty line of $2.15).
The latest official poverty statistics for 2016/17 show that 24.3 percent of the population live
below the upper poverty line while half of them live under the extreme poverty line, based on
strata specific national upper and lower poverty lines. The national estimates for 2016 thus
represent sustained progress in reducing poverty. Bangladesh's continued progress in reducing
poverty reflects sustained economic growth supported by a demographic dividend, sound
macroeconomic policies, and an acceleration in readymade garment exports.
Yet, recent trends suggest a deceleration in the rate of poverty reduction during a period of faster
economic growth. As the country is rapidly urbanizing, its rural and urban areas did not
experience the same level of poverty reduction. The national poverty rate fell in both rural and
urban areas, but the speed of reduction was much slower in urban Bangladesh.
The rural areas reduced poverty impressively between 2010 and 2016, accounting for 90 percent
of the poverty reduction although poverty fell more slowly among households engaged in
agriculture than among households in industry and services. But, in urban areas, progress has
been slower and extreme poverty has not decreased.
Urban poverty reduction was mainly driven by welfare gains among households engaged in
manufacturing and construction. However, job creation in manufacturing is seen to slow down,
limiting the number of households that benefit from this. Overall, poverty reduction from 2010 to
2016 has continued to be delivered by changes in labor income rather than transfers.
Inequality measured by the Gini index was 32.4 in 2016, with very little change since 2000. The
welfare gap between eastern and western Bangladesh has re-emerged. The stronger progress of
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poverty reduction in the eastern regions widened the gap between eastern and western
Bangladesh that had narrowed between 2005 and 2010. This is likely driven by the fact that
structural changes lag in the west, with most of the fast growing and job creating sectors
concentrated in the east.
The COVID-19 pandemic reversed progress in poverty reduction and disproportionally affected
the poor mainly through job losses and reduced earnings, especially among women. Although
employment levels improved, earnings did not bounce back to pre-pandemic levels. Concerns
further remain for the poor and vulnerable groups, including due to the relatively higher inflation
partly due to the Ukrainian crises. A considerable welfare challenge also exists due to the
conditions of the displaced Rohingya population (DRP) - though these appear to be largely
localized.
The DRP are highly vulnerable, the majority of whom would be unable to meet basic needs
without aid. To sustain the gains made and reduce the vulnerability of households, consistent
support is needed. Bangladesh’s urban areas and urban population have been growing rapidly.
Since independence, the urban population of Bangladesh has grown at an average annual rate of
nearly 6%, while the national population growth rate was about 2.2% at that time.33. The growth
of the urban population is imbalanced between different sub-cities and more than 60% of the
Bangladeshi urban population is mainly concentrated in four big cities; Dhaka, Chittagong,
Khulna and Rajshahi. About 20.5% of the population lived below the national poverty line in
2019.The proportion of employed population below $1.90 purchasing power day in 2022 was
2.7%.
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Poverty Alleviation
Poverty reduction is one of the world's most important challenges, and it is proposed the private
sector has an important role to play in creating the economic growth, employment and
purchasing options needed for significant poverty reduction. Poverty is highly correlated with
many negative measurable aspects of standards of living and therefore reducing poverty can have
a positive impact on the lives of millions of people around the world. There is much to learn
about poverty reduction through examining examples in Asia, as it is the region of the world
which has both the most people currently living in poverty and has had the most success in
reducing poverty.
Bangladesh has achieved outstanding development in poverty alleviation during the last decade
as a result of the dedicated efforts of the government and the proper and effective
implementation of various public and private development activities. According to the household
income and Expenditure Survey (HIES) 2016, the poverty rate declined to 24.3 percent in 2016,
which was 40.0 percent in 2005. The Government has been working diligently to adopt and
implement bold, strong, people-centric and inclusive policies for poverty reduction.
Bangladesh’s success in poverty reduction through the pursuit of appropriate poverty reduction
strategies, such as expanding social safety nets for people vulnerable to poverty, financial
incentives, encouraging micro savings, effective disaster risk reduction programmes and building
resilience against the effects of climate change, etc. has attracted the attention of global poverty
alleviation experts. Besides, different government and non-government institutions, autonomous
bodies carry out various activities including providing microcredit to accomplish the
government’s efforts of poverty reduction. In addition, the government offers allowances for
widows, destitute women, old aged people and so on. In FY 2020-21 a total of TK. 95,683 crore
has been allocated in the revised budget to ensure the poor population's social safety. The
stagnation, though temporary, caused by the ongoing corona pandemic in global economic
activity, including that in Bangladesh, has brought challenges to progress in reducing poverty
reduction. A sum of TK.2,500 each has been provided to protect the selected 35 lakh poor
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families nationwide who faced sudden unemployment and income loss due to the pandemic.
Therefore, the poverty situation in Bangladesh did not worsen to a scale of catastrophe during the
pandemic. On the other hand, the government is also taking effective and deliberate steps to
address the potential impact of the recent second wave of the COVID-19 pandemic on the
country's poverty situation (Bangladesh Economic Review 2021).
Ministries engaged in implementing social safety-net programmes have been grouped into five
clusters, each with a lead co-coordinating ministry. The thematic programme clusters are (1)
social allowance, (2) food security and disaster assistance, (3) social insurance, (4)
labour/livelihood interventions and (5) human development and social empowerment.
Implementing ministries have the responsibility of designing and effective implementation of
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programmes. The implementing ministries will have to coordinate with other ministries in their
own cluster.
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Allowance for the Financially Insolvent Disabled Citizens
During the period 2012-13, the programme started to improve the standard of living of the
people of Gypsy, Dalits and Harijans by transforming them into skilled manpower. The
programme was implemented in seven districts of Dhaka, Chattogram, Dinajpur, Patuakhali,
Jessore, Naogaon and Habiganj districts as a pilot project, respectively. Now, this programme is
being implemented in 64 districts. The amount allocated in FY2019-20 is about 9.23 crore. The
total number of beneficiaries in the FY2019-20 is 10,000 thousand.
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In 2016, the branding program of Honorable Prime minister ''Food Friendly Programme'' was
launched. Under this programme, 50 lakh ultra-poor families (Widows, elderly, women-led
families, women-led downstream poor families) living at the union level are enlisted. The
families enlisted in this programme are distributed 30kg of rice per month in the workless
month/lean season at Tk. 10/kg. In the current FY 2020-2021, 4.87 lac MT of rice have been
distributed under this programme.
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SDG
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by
the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and
ensure that by 2030 all people enjoy peace and prosperity.
The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in
others, and that development must balance social, economic and environmental sustainability.
Countries have committed to prioritize progress for those who're furthest behind. The SDGs are
designed to end poverty, hunger, AIDS, and discrimination against women and girls.
The creativity, knowhow, technology and financial resources from all of society is necessary to
achieve the SDGs in every context.
1. No poverty
2. Zero hunger
3. Good health and well beings
4. Quality education
5. Gender equality
6. Clean water and sanitation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry innovation and infrastructure
10. Reduce inequalities
11. Sustainable cities and communities
12. Responsible consumption and production
13. Climate action
14. Life bellow water
15. Life on land
16. Peace justice and strong institution
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17. Partnership for the goal
NO POVERTY
Eradicating poverty in all its forms remains one of the greatest challenges facing humanity.
While the number of people living in extreme poverty dropped by more than half between 1990
and 2015, too many are still struggling for the most basic human needs.
As of 2015, about 736 million people still lived on less than US$1.90 a day; many lack food,
clean drinking water and sanitation. Rapid growth in countries such as China and India has lifted
millions out of poverty, but progress has been uneven. Women are more likely to be poor than
men because they have less paid work, education, and own less property.
Progress has also been limited in other regions, such as South Asia and sub-Saharan Africa,
which account for 80 percent of those living in extreme poverty. New threats brought on by
climate change, conflict and food insecurity, mean even more work is needed to bring people out
of poverty.
The SDGs are a bold commitment to finish what we started, and end poverty in all forms and
dimensions by 2030. This involves targeting the most vulnerable, increasing basic resources and
services, and supporting communities affected by conflict and climate-related disasters.
1. By 2030, eradicate extreme poverty for all people everywhere, currently measured as people
living on less than $1.25 a day
2. By 2030, reduce at least by half the proportion of men, women and children of all ages living
in poverty in all its dimensions according to national definitions
3. Implement nationally appropriate social protection systems and measures for all, including
floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
4. By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal
rights to economic resources, as well as access to basic services, ownership and control over land
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and other forms of property, inheritance, natural resources, appropriate new technology and
financial services, including microfinance
5. By 2030, build the resilience of the poor and those in vulnerable situations and reduce their
exposure and vulnerability to climate-related extreme events and other economic, social and
environmental shocks and disasters
7. Create sound policy frameworks at the national, regional and international levels, based on
pro-poor and gender-sensitive development strategies, to support accelerated investment in
poverty eradication actions
IN OUR ASPECT
Goal 1 to 6: No poverty, zero hunger, good health and well-being, quality education, gender
equality and clean water and sanitation: There were 31.5 per cent population below the upper
poverty line in 2010, but the figure came down to 24.3 per cent in 2016. Undernourished
population were 16.4 per cent in 2016, but the figure came down to 14.7 per cent in 2017. The
under-five mortality rate was 125 in 1995, but it came down to 28 in 2019. The incidence of
malaria was 4.3 per 1000 in 2015, which reduced to 1.6 per 1,000 in 2019.
Now, 74.5 per cent of the children are developmentally on track in health, learning and
psychosocial well-being with 71.4 per cent males and 78 per cent females. The adult literacy rate
was 53.5 per cent in 2005 but 73.9 per cent in 2018. Bangladesh is ranked in the 68th position
among 153 countries in 2014 in the Global Gender Gap Index but the rank improved to the 50th
position in 2019. Now, Bangladesh is the seventh in terms of women’s political empowerment.
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In 2015, 89 per cent of household members used improved sources of drinking water but in
2019, it increased to 98.5 per cent. In 2015, 63 per cent of household members used improved
sanitation facilities, but in 2019, it increased to 84.6 per cent. In 2015, there was less tendency
among households about hand-washing facility with soap and water, but in 2019, 74.8 per cent of
the households are reported to be practicing hand-washing facility with soap and water.
Goal 7 to 12: Affordable and clean energy, decent work and economic growth, industry-
innovation and infrastructure, reduced inequality, sustainable cities and communities, responsible
consumption and production: In 2015, 74.44 per cent of people had access to electricity but now,
more than 92 per cent of people have access to electricity. The proportion of population with
access to clean fuels and technology was 7.24 per cent in 2000, but the figure increased to 19 per
cent in 2019. The average annual growth rate of the real GDP per capita was 5.1 per cent in the
2014–15 financial year, but the figure increased to 6.91 per cent in the 2018–19 financial year.
The contribution of the manufacturing sector to the real GDP was 22.85 per cent in the 2017–18
financial year, but it reached 24.21 per cent in the 2018–19 financial year. In 2011, the net ODA
received (in percentage of the gross capital formation) was 4.08 in 2019, but it is now 4.69.
Bangladesh’s foreign direct investment for 2017 was $1.81 billion, but in 2019, it increased to
$1.91 billion.
More than 60 per cent of the urban population is concentrated mainly to four metropolitan cities:
Bangladesh has begun to work on smart city and take several initiatives both at the public and
private levels. The city of Jessore has recently developed the first integrated landfill and resource
recovery facility in Bangladesh under which it is recycling daily municipal wastes into biogas,
electricity and fertiliser. The Sylhet City Corporation has also promoted the green city concept
and the recycling of wastes into fertiliser at citizen’s initiative.
Goal 13 to 17: Climate action, life below water, life on land, peace and justice strong
institutions, and partnerships to achieve the goal: The number of death, missing persons and
directly affected persons attributed to disasters were in an alarming stage but the number has
declined over the years. It now stands at 12,881 with a target of 1,500 by 2030.
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No measures were previously taken to protect marine areas, but Bangladesh has successfully
expanded its marine protected area with the introduction of four zones around the Swatch of No
Grounds in the Bay of Bengal. The proportion of terrestrial and freshwater biodiversity covered
by protected areas was 1.7 per cent in the 2013–14 financial year, but it was more than 3 per cent
in 2018. As of 2015, the number of victims of human trafficking was 0.85 for every 100,000
population but as of 2018, it decreased to 0.61.
However, in case of Goal 1 to 6, progresses are on track but special attention is required to
people below the upper poverty line. In case of Goal 7 to 12, a good progress is made but slow
progress is observed in increasing foreign direct investments. Integrated landfill and resource
recovery facility need to be spread to large cities. To build sustainable cities, Dhaka along with
other large cities need due attention immediately. All the city corporations need to adopt the
green city concept and recycle wastes into fertiliser. In case of Goal 13 to 17, progresses are
noticeable but the number of victims of human trafficking need to be brought to zero.
Moreover, more national and international partnerships to achieve the goals are urgently
required. Based on the above progress status, the government needs to reformulate goal-wise
action plans to foster the progress and give a combined drive to achieve SDGs by 2030.
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Challenges in obtaining “No Poverty” goal in SDG
Poverty eradication is important for the reduction of inequalities that currently exist among
people and for the socio-economic and political stability of countries left behind. The UN High-
Level Political Forum on Sustainable Development (HLPF) meets every year for global
monitoring of the SDGs, under the auspices of the United Nations economic and Social
Council. High-level progress reports for all the SDGs are published by the United Nations
Secretary General.
Eradicating poverty has been made more difficult by the COVID-19 pandemic in 2020. Local
and national lockdowns led to a collapse in economic activity that reduced or eliminated sources
of income and accelerated poverty.
COVID-19 has caused an increase in global poverty. It was estimated that 71 million people
have been pushed into extreme poverty in 2020. The lock down has led to a collapse in economic
activities hence causing reduced income leading to accelerated poverty. It is reported that young
workers are two times more seemingly to be suffering from unemployment than their elders.
There are projections that Sub-Saharan Africa will have the highest rate of increasing poverty
because it already has more populations living close to the international poverty line.
COVID-19 has further increased the challenges of achieving zero poverty goals as well as other
SDG goals by 2030. Though many alternative measures are being deployed to get the relevant
data, the available tools and methods have not been able to sufficiently address the continuously
evolving climate.
In order to achieve and sufficiently monitor the progress of SDGs, decision makers as well as
stake holders need access to timely and reliable data. As countries got locked down in 2020 due
to the COVID-19 pandemic, many data collection activities that rely on direct interviews were
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suspended. The pandemic interrupted data collection. Decision-makers did not have access to
reliable data, especially in the early months.
Furthermore, COVID-19 exposed the inadequacy in the global food chain. The pandemic had a
resounding impact on fragile nations; for example, 15.6 million Yemeni nationals were estimated
in September 2020 to be practically starving on a daily basis with millions more being driven
into a state of distress.
Unfortunately, a United Nations report predicts that Sub-Saharan Africa will see the largest
increase in extreme poverty in 2020, with an additional 26 million people living below the
international poverty line because of the pandemic. This figure returns Sub-Saharan Africa to
2015 poverty levels, implying a loss of 5 years of progress in the region. Therefore, now more
than ever, it is crucial for Africa to focus on improving the lives of the poorest and most
marginalized through creating a sustainable, just, and equitable society in all aspects of life.
African countries face two further challenges in trying to reduce inequality and invest in growth
and development: Illicit Financial Flows (IFFs) and the rising debt crisis.
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➢ Illicit financial flows
IFFs are money that is illegally earned, transferred, or utilized through certain commercial
activities like hiding the real owners of companies through illegal shell companies; organized
criminal activities like poaching, drugs, arms and human trafficking, oil and mineral theft; and
corrupt practices which play a key role in facilitating these outflows. Rich multinational
corporations, tax havens, and individuals are responsible for most of IFFs from the world’s
poorest countries. There is a higher concentration of IFFs in certain sectors, notably the
extractives and mining industries, which tend to end up in rich developed countries and trade
partners of Africa. Looking back at the past two decades, endless tax-related scandals like
Luanda Leaks, Mauritius Leaks, Lux Leaks, Swiss Leaks, the Panama Papers, and Paradise
Papers, among others, have exposed the issue of IFFs and raised public and political concerns
about dealing with them.
This is money that is being lost to a continent that is already suffering from a lack of revenue.
IFFs are therefore not a “victimless crime” - they are harmful to individuals and society. It also
has a striking developmental impact as it plays a major role in increasing the degree of
socioeconomic inequality in Africa and globally through taking away money required for
health, education, infrastructure, and other public goods and services.
Growing debt
Undeveloped countries also face an imminent financial crisis caused by rising debt problems
due to borrowing from both public and private external creditors. With COVID-19, some
African countries have asked for debt cancelation and debt relief to help them recover from the
pandemic’s devastating health and economic effects.
However, for example, for a landlocked, resource-rich country like Zambia that only achieved
lower middle-income status in 2011, the spiraling heavy external debt burden and recent default
on its debt repayment are blamed by some of its citizens on political elites’ mismanagement,
corruption,
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Human Resource Development
HRD is the process of increasing the knowledge, the skills, and the capacities of all the people in
a society. In economic terms, it could be described as the accumulation of human capital and its
effective investment in the development of an economy. In political terms, human resource
development prepares people for adult participation in political processes, particularly as citizens
in a democracy. From the social and cultural points of view, the development of human
resources helps people to lead fuller and richer lives, less bound by tradition. In short, the
processes of human resource development unlock the door to modernization.
Human Resource Development (HRD) was first proposed as a term, it appears, in 1964 by
Harbison and Myers. Since then, several fields (most notably, organization development and
training and development) have come together under this nomenclature (McLagan, 1989), both
as a field of practice as well as an academic field or discipline. Much of the published literature
on the definition of the field has been focused in the west (originally, in the U.S. (Weinberger,
1998), and, increasingly, in Europe). More recently, there have been efforts to define the
growing field of HRD from a broader perspective (McLean & McLean, 2001), and efforts have
been undertaken to explore the emerging field of National HRD (Lynham, Paprock, &
Cunningham, 2006; McLean, Osman-Gani, & Cho, 2004). Much less effort, however, has gone
in to exploring what, in the current age of globalization (Friedman, 2005), has become critical for
the field—definition of international or cross-national HRD. There has certainly been a
substantial body of literature, many of which will be reviewed in the literature review, focusing
on the practice of HRD in an international or cross-national context and the development of
foundational concepts and theories related to international/cross-national HRD.
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capacity to question a continual focus by organizations on efficiency and performance. However,
it must also be conscious of its business role. Both objectives must be pursued side-by-side. The
article outlines a framework of activities that HRD may use to reorient the agenda, hold
organizations accountable, provide leadership on CSR, sustainability, and ethics, and at the same
time ensure that the organization is profitable and successful.
Human Resource Development is a development model that is about much more than the rise or
fall of national incomes. It is about creating an environment in which people can develop their
full potential and lead productive, creative lives in accordance with their needs and interests, thus
bringing the focus back onto people. People are the real wealth of nations. Development is thus
about expanding the choices people have, to lead lives that they value and improving the human
condition so that people will get the chance to lead full lives. And it is thus about much more
than economic growth, which is only a means if a very important one of enlarging people’s
choices. Fundamental to enlarging these choices is building human capabilities the range of
things that people can do or be in life. Human development disperses the concentration of the
distribution of goods and services that underprivileged people need and centers its ideas on
human decisions. By investing in people, we enable growth and empower people thus
developing human capabilities. The most basic capabilities for human development are to lead
long and healthy lives, to be knowledgeable, to have access to the resources and social services,
needed for a decent standard of living and to be able to participate in the life of the community.
Without these, many choices are simply not available, and any opportunities in life remain
inaccessible among mass population of a country.
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Functions of Human Resource Development
Human Resource Development (HRD) plays a crucial role in economic development by
enhancing the skills, knowledge, and capabilities of a country’s workforce. Here are some key
functions of HRD in economic development.
1.Unfair trade rules and tariffs: Tariffs and trade barriers limit a country's access to
international markets. This can hinder the export of goods and services, stifling economic
growth, and job creation. It often result in higher prices for imported goods, which can lead to
increased living costs for consumers. This can reduce their purchasing power and overall
standard of living. Tariffs often result in higher prices for imported goods, which can lead to
increased living costs for consumers. This can reduce their purchasing power and overall
standard of living.
2.Attracting foreign Investments: Create a stable and predictable regulatory framework that
protects investors' rights, ensures fair competition, and minimizes bureaucratic hurdles.
Transparency and consistency in regulations are essential. A stable political environment reduces
the risks associated with investing in a country. Ensure political stability, rule of law, and respect
for property rights. Offer targeted incentives such as tax breaks, subsidies, or grants to foreign
investors. These incentives can make investing in your country more attractive. Invest in
infrastructure like transportation, energy, and telecommunications. Modern and efficient
infrastructure reduces business costs and enhances the ease of doing business. Other benefits of
attracting foreign investments are-
Skilled Workforce: Develop a skilled and educated workforce through investments in education
and vocational training. A skilled labor pool is often a significant attraction for foreign investors.
Access to Markets: Highlight your country’s access to regional and global markets. A large and
growing consumer base can be a compelling reason for foreign companies to invest
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Trade Agreements: Participate in regional and international trade agreements to provide foreign
investors with preferential access to markets. Bilateral investment treaties (BITs) can also protect
foreign investors’ rights.
Promotion and Marketing: Actively market your country as an investment destination. This
includes participating in trade fairs, hosting investment forums, and showcasing success stories.
Create Attractive Work Opportunities: Develop a robust job market with competitive salaries
and benefits to make working in the home country more appealing.
Invest in Education and Training: Strengthen educational institutions and vocational training
programs to ensure that professionals receive high-quality education and skill development
opportunities at home.
Research and Innovation: Foster an environment that encourages research, innovation, and
entrepreneurship. This can help retain professionals who are motivated to contribute to
advancements in their fields
Quality of Life: Improve the overall quality of life by investing in healthcare, infrastructure, and
public services. A better quality of life can be a strong incentive to remain in the home country.
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4.Investment in local and cottage industry: Investment in local and cottage industries plays a
vital role in promoting economic development, especially in regions with limited access to large-
scale industries. Here's why such investments are important and how they contribute to economic
development;
Job Creation: Local and cottage industries are often labor-intensive, providing employment
opportunities to a significant portion of the population, reducing unemployment, and raising
living standards.
Income Generation: These industries help diversify sources of income for individuals and
households, increasing overall economic stability and reducing income inequality.
Rural Development: Investment in local and cottage industries can revitalize rural and less
developed areas, stemming the flow of people migrating to urban centers in search of work.
Entrepreneurship Promotion: Local and cottage industries empower local entrepreneurs and
foster a culture of self-reliance and innovation.
Investing in local and cottage industries can lead to inclusive economic development by
empowering local communities, preserving cultural heritage, and diversifying economic
opportunities, ultimately contributing to the overall growth and stability of the economy.
Human Capital Development: Education equips individuals with the knowledge, skills, and
abilities needed to participate effectively in the workforce. A well-educated population is a
valuable asset for any economy.
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Innovation and Technological Advancement: Education fosters a culture of innovation and
entrepreneurship. Educated individuals are more likely to develop new technologies, start
businesses, and drive economic growth through innovation.
Improved Productivity: Educated workers tend to be more productive, leading to higher levels
of output and economic efficiency. This, in turn, boosts the overall competitiveness of an
economy
Workforce Flexibility: Education provides individuals with the ability to adapt to changing
labor market demands. It enables workers to switch careers, acquire new skills, and remain
relevant in evolving industries.
Research and Development: Education institutions are hubs for research and development,
driving scientific and technological advancements that contribute to economic growth.
6.Woman empowerment:
Women’s empowerment is not only a matter of social justice but also a critical driver of
economic development. When women are empowered, they can contribute significantly to a
nation’s economic growth and prosperity. Here are ways in which women’s empowerment
contributes to economic development.
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Improved Health and Education Outcomes: When women have control over resources and
decision-making, they tend to prioritize investments in health and education for their families,
leading to healthier, more educated populations.
Better Family Planning: Empowered women often have greater control over family planning
decisions, leading to smaller and healthier families, which can contribute to economic
development through a demographic dividend.
Social Stability: Empowered women can contribute to social stability and reduce conflict,
fostering a more conducive environment for economic development.
Political and Civic Engagement: Women’s empowerment can lead to increased political and
civic engagement, influencing policies that promote economic development and gender equality.
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Importance of Human Resources Development
Human resources are significant on the grounds that a country’s improvement generally relies on
Human resources which incorporates human expertise, innovation, thinking, and information,
that prompts a country’s power. Just human expertise and innovation change regular substances
into an important asset. Consequently, considering its significance, knowing both in quantitative
and subjective terms, the size, pace of development, the arrangement, appropriation, and any
remaining segment elements of the populace of Bangladesh is very fundamental.
Human resources are viewed as a significant sort of asset for achieving monetary improvement
in a country. Among different kinds of assets, HR is the most dynamic sort of asset. Subjective
and quantitative advancement of HR is particularly expected for the appropriate usage of regular
assets of the country.
Increased Productivity
Human resources have been assuming a significant part in the financial improvement of a
country. Schultz, Kendrick, and Harbison have made a few significant examinations as of late to
bring up that a significant piece of the development of public results in the USA can be credited
to expanded efficiency which has been for the most part acknowledged out of the capital
arrangement. In this association, Prof. Galbraith was of the view that “we presently get the
bigger piece of modern development not from more capital venture but rather from an interest in
men and upgrades achieved by further developed men.”
Development of Skills
Slow development in immature nations is for the most part coming about because of the absence
of interest in human resources. These nations are experiencing the absence of basic abilities
expected for their modern area and furthermore deal with the issue of the excess workforce in
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their ranch area. The arrangement of human resources is particularly critical for the economic
development of the younger nations. In this way, the immature nations are experiencing a lack of
fact-prepared and profoundly gifted and taught people and the created nations are keeping up
with an elevated degree of venture on the advancement of labor supply assets. For a country to
achieve a high degree of development through human resources, a huge amount of effort should
be put into human development to achieve the goals now.
Because of human asset improvement, the creation increments as the proficient and gifted
laborers can utilize all assets available to them. With the bestowed information, laborers attempt
to expand their results and pay. The accomplishment of professional abilities helps the specialists
and all classifications of labor to acquire more elevated levels of pay in different callings. The
advanced education and preparation at higher instructive set up like schools and colleges
ordinarily empower laborers to contribute generously towards the quicker extension of results in
specialized, designing, machine building, bookkeeping, the board, and so forth. Besides, further
developed well-being offices can upgrade the actual limit of laborers. Accordingly, this
multitude of elements decidedly contributes toward expanded yield.
Human asset improvement as human resources development can make essential expansion to the
useful limit of a country in silly ways. Overhauling the mechanical situation alongside further
developed information and expertise can modernize the creation advancements and, in this way,
can add to the useful limit of the country overall. The movement of innovation from unfamiliar
nations can make ready for the reception of present-day innovation into creation and in this way
can work on the usage limits. Besides, human resources arrangements can advance the higher
development of the economy by adding an actual supply of capital to the country.
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Raises Per capita Income
Through human resources expansion, improvements in human assets can increase per capita
income. Bestowing information can work on the efficiency of laborers and accordingly, can raise
the per capita pay.
Human asset improvement can make individuals educated, gifted, and in great shape. This can
likewise change the mentalities of individuals and work on individual characteristics of
individuals. Such changes are helpful for the advancement of imaginative limits and business
ventures which typically propels individuals to really buckle down, face challenges, do
investigate and apply them to deliver new items, and furthermore, foster new cycles of creation.
Every one of these can fill in as a device for monetary change.
Human resources improvement can make ready for working on personal satisfaction for
individuals overall. This can be made conceivable through enhancements in the three parts of the
Human Development Index (HDI), i.e., increase in per capita pay, higher instructive fulfillment,
and expansion in the future.
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Resource Allocation & It's Effectiveness
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5. Choose a dedicated resource allocation tool
If we’re in a situation where we need to distribute limited resources among multiple projects or
our colleagues from other projects hog resources violently, a resource allocation tool will help us
solve the issues fairly.
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The Effectiveness of Resource Allocation
The optimal resource allocation brings a lot of effects to the business/organisations towards
Development:
● Optimises the workload of team members: A bold team setup gives an overview of the
available workforce capacity and shows how much work can be done.
● Improves time management: Proper resource allocation helps resource managers
estimate the actual hours to complete the tasks.
● Increases employee engagement and satisfaction: A robust resource allocation is done
with people, their needs, and their talents in mind.
● Eliminates project risks: Motivated team members meet deadlines more frequently and
increase their projects’ success rates. Add up the planned team workload and refined time
management system.
● Identifies and eliminates the skills gaps: A strategic resource allocation involves skill
gap analysis, which gives insights into the company’s entire workforce and enables to
target the resources on those skills that require the most attention for the organizational
needs.
● Simplifies planning for upcoming projects: Optimal use of project resources is key to
closing the skills gap and avoiding talent shortage.
● Increases ROI: Employee rotation and upskilling are more cost-efficient than hiring new
people for every project.
● Results in a better brand positioning: Happy team members strengthen the employer
brand in the eyes of both the customers and potential recruits.
2.Save Money
3.Boost Productivity
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4.Improve Time Management
7.Strategic Planning
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