1. BANGLADESH: More and Better Jobs to Accelerate
Shared Growth and End Extreme Poverty
Bangladesh Systematic Country Diagnostic
Wednesday July 19, 2017

2. Outline of Presentation
Using and Supplementing the Available Diagnostic Work
Poverty trends and profile
Poverty maps
Labor market and gender analysis
Analytic/Other Inputs from IFC and Sector Colleagues
Energy, Transport, Trade, Urban, Climate Change CCSA etc.
External Consultations and Validation

3. Bangladesh’s Much Improved Economic Performance

4. Pace of poverty reduction has picked up considerably since 2000
Poverty Headcount Rate (percent) * Projections
2000
2005
2010
2015*
Upper Poverty Line
National
58.8
51.0
48.9
40.0
31.5
24.8
Urban
44.9
29.4
35.2
28.4
21.3
Rural
61.2
55.2
52.3
43.8
Lower Poverty Line
42.7
34.4
34.3
25.1
17.6
12.4
23.3
13.7
19.9
14.6
7.7
46.6
38.5
37.9
28.6
21.1
PPP$1.25 Poverty Line
70.2
60.6
58.6
50.5
43.3
35.7

5. Benefits of growth have been equitably shared across the population
Income Inequality in Bangladesh: 2000 – 2010
2000
2010
Gini (National)
0.307
0.299
Rural
0.271
0.273
Urban
0.368
0.330
Population share
80%
74%
20%
26%
Source: HIES 2000 and 2010

6. More and better jobs have enabled millions to move out of poverty
13.8m net new jobs added between 2002/03 and 2013
10.5m outside agriculture vs. 3.3 in agriculture
share of agriculture in total employment now 45 percent
share of manufacturing up from 14 to 21 percent
Women’s employment up 7m (16.8m in 2013)
gender gap narrowed, particularly among lower age cohorts
# women in manufacturing up sharply (from 1.7m to 3.8m)
In FY14, est. 8m Bangladeshis working overseas sent home $14.5b in remittances
Considerable potential/need for further improvement
nearly half the workforce remains in agriculture
only 1 out of 8 workers in formal sector employment(2010)
unemployment among youth much higher than national average (20+ percent among urban women)
gender gap in participation rates and employment patterns remains quite large, and warrants further investigation.

7. Key Drivers: Remittances, Higher Labor & Farm Incomes, Demographic Changes

8. Considerable potential remains to expand labor-intensive manufacturing
Promising sources of job creation in Bangladesh (millions)
Today
In ten years
Ready-Made Garments
3.7
10.6
Footwear, leather/plastic goods, toys, electronics
1.5
5.0
Light engineering
0.6
2.0
Shipbuilding
0.2
0.4
Agribusiness
3.0
ICT/Pharmaceuticals
0.5
Total
8.0
23.0

9. Bangladesh has done well; however many other countries did even better
GDP per capita
(Current USD)
GNI per capita, Atlas
1980
2013
% change (annual)
China
193
6,807
11.4
220
6,560
10.8
South Korea
1,778
25,977
8.5
1,900
25,920
8.2
Sri Lanka
273
3,280
7.8
280
3,170
7.6
Vietnam
239*
1,911
7.7
220**
1,740
9.0
Thailand
683
5,779
6.7
710
5,340
6.3
Indonesia
536
3,475
5.8
510
3,580
6.1
India
271
1,499
5.3
270
1,570
5.5
Philippines
685
2,765
4.3
700
3,270
4.8
Bangladesh
958
4.6
1,010
4.7
Pakistan
296
1,275
4.5
340
1,360
Source: World Development Indicators. * Data for 1985; ** 1989.

10. Rapid Urbanization Poses a Major Challenge, but is also a Key Opportunity
Making urbanization work better for poor people could potentially have a transformative impact on accelerating the pace of poverty reduction in Bangladesh
Rapid urbanization is adversely impacting economic performance and general livability of urban settlements. The urban population of Bangladesh more than doubled between 1990 and 2010, and is projected to continue to grow rapidly.
Inadequate and poor quality of urban services, including transport, water supply and sanitation. Most government safety net programs are exclusively for urban areas; slum population tends to be excluded from public service delivery systems, and often have to pay much higher prices for key services and amenities
Transform Dhaka and Chittagong into globally-competitive metropolitan regions
Improve urban government in second-tier cities

11. Considerable spatial variation in poverty incidence

12. Infrastructure Ranking Infrastructure Score (Overall)
Infrastructure quality in Bangladesh lags behind its regional competitors
Country
Overall Ranking
Infrastructure Ranking
Infrastructure Score (Overall)
Electricity
Roads
Railroad
Port
China 28 46
4.7
5.2
4.6
4.8
Thailand 31 48
5.1
4.5
2.4
Sri Lanka 73 75
4.0
3.7
4.2
India 71 87
3.6
3.4
3.8
Cambodia 95
107
3.1
3.0
1.6
Pakistan
129
119
2.7
2.1
2.5
4.4
Bangladesh
109
127
2.9
Myanmar
134
137
2.0
2.8
1.8
2.6
Source: World Economic Forum, Global Competitiveness Report ; Ranking out of 144 countries

13. Looking Ahead: Key Priorities for Action

14. BANGLADESH: More and Better Jobs to Accelerate
Shared Growth and End Extreme Poverty
Bangladesh Systematic Country Diagnostic
Wednesday July 19, 2017