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The European Union (EU) on Thursday disbursed nearly Tk 2.3 billion (EUR 24 million) to Bangladesh for supporting the country’s key national reforms in social security.
With this grant, the EU recognises and supports Bangladesh government’s commitment to the eradication of poverty and extreme inequalities as well as to achieve the Sustainable Development Goals, a press release said on Thursday.
Effective and inclusive social protection systems are essential to safeguarding people in need when a crisis hits, such as the ongoing Covid-19 pandemic emergency, it said.
In this regard, the EU ambassador to Bangladesh Rensje Teerink said the Covid-19 pandemic has created a public health emergency with immediate and long-term economic consequences for millions of Bangladeshis who are at a heightened risk of being pushed into poverty or extreme poverty.
“Ensuring a safety net for all is critical to mitigate these impacts. The EU stands ready to join forces with the Government of Bangladesh and development partners to enhance the preparedness of the national social
protection system,” she said.
Social protection lies at the heart of the European social model and represents a fundamental area of cooperation in Bangladesh, the EU envoy observed
This is the first disbursement under the EU sector budget support programme on National Social Security Strategy (NSSS) reforms in Bangladesh, signed in June 2019.
The disbursement of this first payment comes after a positive decision of the Budget Support Steering Committee of the European Commission’s Directorate-General for International Cooperation and Development in April 2020.
The NSSS sets an important roadmap to enhance the governance, institutional capacity and accountability of the social security system to better serve the needs of Bangladeshis who are living in poverty or are vulnerable.
The programme of support to NSSS reforms intends to provide a total of EUR 130 million as budget support linked to jointly-agreed performance indicators, reports BSS.