Nearly 80 per cent of ethnic households in plainland have no access to credit: Report

Nearly 80 percent of households of plainland ethnic minority communities have no access to credit, be it from formal or informal sources, as per a new study report published on Wednesday.

These households are afflicted by poverty. In contrast, the national average for poverty stricken people in rural areas was 20.5 percent in 2022.

Moreover, the average monthly per capita income per member of the households is about Tk 1,600. The national average for rural areas was Tk 6,091 in 2022. On top of it, there is hardly any household with formal land entitlements or ownership.
Bangladesh Poverty Watch Report-2023 published the report which was jointly prepared by Institute for Inclusive Finance and Development (InM) and Center for Inclusive Development Dialogue (CIDD).

It was launched at Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP) in Dhaka.

"Although non-government organisations and microfinance institutions have wide coverage of their activities in the plains, very few of the plainland ethnic communities have so far been included in their programmes," the report said.

It happens for constraints on both demand and supply sides, it said. The study was based on 300 people comprising members of plainland ethnic and river gypsy (bede) communities and sex workers, from June to September 2023

The report said over 30 ethnic groups are living and working in tea plantations, where living conditions are generally unsatisfactory and they face specific forms of discrimination, said the report.

River gypsy communities are vulnerabilities in extreme social, economic and political spheres, all arising from poverty, substandard living conditions and a lack of access to education, it said.

They are often subject to human rights violations, primarily due to discrimination and racial violence, the report said.

Sex workers face extreme difficulty to access to their fundamental rights, such as living in constant fear of eviction and sex trafficking and having little to no access to law and social practices, healthcare and alternative employment opportunities.

"In terms of inclusive growth, without addressing these vulnerable groups, Bangladesh would not be a Smart Bangladesh," said Mustafa Kamal Mujeri, executive director of the InM.

This will not be possible without going out to their rural roots and identify their problems, he suggested.
Qazi Kholiquzzaman Ahmad, chairman of InM, said there are ample government policies to address the challenges faced by vulnerable groups.

"But there is a lack of coordination and a tendency to ignore the policies. The poverty rate has reduced but it did not come about for the low-income groups," he said.

MA Mannan, former planning minister and chairman of a planning ministry standing committee, said, "We have to take action to reduce it."

He also underscored the need to reduce unnecessary spending and to focus on projects which would bring substantial returns for the country.

Syed Nuruddin Ahmed, managing trustee of the CIDD, and Farhana Nargis, research fellow of the InM, also spoke.