Addressing the many faces of poverty

The recent publication of Bangladesh's first-ever national Multidimensional Poverty Index (MPI) by the Planning Commission's General Economics Division (GED) has brought to light a harsh reality that roughly 40 million people remain trapped in multidimensional poverty. This is a cause for serious concern, as even fifty-four years after independence, over 24 per cent of the population, or one in every four people, are trapped in poverty in its myriad forms. These sobering findings expose the fault lines in the country's poverty reduction strategies adopted thus far. Historically, poverty reduction efforts have been focused primarily on income-generating activities, and policymakers have relied on an expenditure-based method to measure poverty, which has been showing that the country made considerable headway in poverty reduction. The latest Household Income and Expenditure Survey (2022) reported a poverty rate of 18.7 per cent, leading to a sense of complacency among policymakers. 

But the MPI underscores that poverty is not solely about a lack of income. Rather, it is a complex form of deprivation encompassing limited access to education, healthcare, and basic living standards. The MPI measures poverty across ten indicators, including nutrition, child mortality, years of schooling, cooking fuel, and access to sanitation and electricity. A person is considered multidimensionally poor if they are deprived in at least one-third of these weighted indicators. Thus the MPI provides a far broader view of the actual poverty situation. Against this backdrop, the publication of the first-ever MPI report is commendable, especially since the United Nations' Sustainable Development Goals (SDGs) recommend the MPI, which reflects people's access to basic necessities and living standards. 

The report's findings also reveal a stark regional disparity. The rate of multidimensional poverty is nearly twice as high in rural areas compared to urban areas and is more prevalent among children than adults. Furthermore, the data points to a discriminatory attitude of the country's governance system towards certain segments of the population and specific regions. For example, Sylhet Division has the highest rate of multidimensional poverty at 37.7 per cent, and at the district level, Bandarban ranks highest, with over 65 per cent of its population trapped in vicious cycle of poverty. The report also breaks down deprivation by specific indicators. The highest levels of deprivation was found in housing, where nearly 62 per cent of people lack adequate flooring, walls, or roofing; followed by internet access (over 59 per cent), sanitation (more than 57 per cent), and asset ownership (nearly 45 per cent). On a more positive note, some indicators show relatively low levels of deprivation: only about 5 per cent of the population lacks access to reproductive healthcare, and around 8 per cent are without electricity. These findings point to measurable progress in specific sectors, even as broader challenges persist.

The MPI report, however, is based on data from the 2019 Multiple Indicator Cluster Survey (MICS). Since six years have passed, a new survey is urgently needed to determine whether the situation has improved or worsened.  Given the persistent inequality in the country's system of governance, it is unlikely that the affected people and regions have seen much improvement. The current interim government, which emerged from a popular uprising against discrimination, is undertaking various reforms across political, administrative, and institutional spheres. However, the core issue that fuelled the July uprising -- the need to build a truly discrimination-free Bangladesh -- appears to be relegated to the backburner. The MPI offers an opportunity for the government to set its priorities right and address the multidimensional deprivations in future national development plans.