Editorial
CPD study on plight of the poor
The recipe for alleviation merits consideration
The Centre for Policy Dialogue in a timely study has fathomed a new depth in the sea of poverty. In the 15-month period from January 2007 to March 2008 the gross income of poor people plummeted by 36.7 percent. The income erosion of up to 30.5 percent alone has resulted from paying for the high food bill, the predominant item in the rather bare purchase list of the poor.
In consequence, 8.5 percent people comprising 25 lakh households have fallen below the poverty line. This aggravation of the poverty situation being the outcome of the unprecedented food price hike and the inflationary pressure is not likely to significantly ease off. This is owing to the high international oil price introducing imported inflation into our import dependent economy together with high cost of inputs for productivity.
We are entirely in agreement with the CPD suggestion that the government distribute rice and wheat amounting to 30 lakh tonnes through the social sector and social sector safety net programmes in the next fiscal year. In this context, we take heart from the news that the government is going to incorporate four new social safety net programmes worth Taka 3000 crore in the next budget. The flagship project worth Tk 2400 crore envisages employment of two million ultrapoor for hundred days in a year. Another important component of the safety net approach is Tk 300 crore fund to face climate change related adaptation challenges.
It is estimated that the subsidies for the current fiscal year amounting to Tk 6000 crore might need to be nearly trebled to cushion off the effects of the fuel, food and fertiliser price hikes on the mass of the people. The developed world community should feel obliged to give grants for food and agriculture inputs to the developing countries falling prey to the global climatic changes which are largely the creation of the environment unfriendly development strategies and lifestyles of the big economies.
While raising the fuel prices the government ought to be sensitive to the purchasing capacity of the people who use kerosene and the farmers who have to buy diesel for irrigation.
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