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Vulnerability and poverty in Bangladesh

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  • Md. Shafiul Azam

    ()

  • Katsushi S. Imai

    ()

Abstract

This study estimates ex ante poverty and vulnerability of households in Bangladesh using Household Income and Expenditure Survey (HIES) data in 2005. Our results show that poverty is not same as vulnerability as a substantial share of those currently above the poverty line is highly vulnerable to poverty in the future. The study finds that agricultural households or those without education are likely to be the most vulnerable. The geographical diversity of vulnerability is considerable, for example, vulnerability in a coastal division, i.e., Chittagoan Division is almost double to that of Dhaka and almost four times higher than Khulna Division. It is suggested that ex ante measures to prevent households from becoming poor as well as ex post measures to alleviate those already in poverty should be combined in evaluating poverty. In designing policies one should take note of the diverse nature of poverty and vulnerability. For the chronically poor who lack economic assets, priority should be given to reduction of consumption fluctuations and building up assets through a combination of protective and promotional programmes. Access to financial services, for example, through micro credit programmes, might help poor households build up assets as it smoothes income and consumption, enables the purchase of inputs and productive assets, and provides protection against crises. On the other hand, the transient poor and high vulnerable non-poor households are most likely to benefit from combination of prevention, protection, and promotion which would give them a more secure base to diversify their activity into higher-return, higher risk activities. [Working Paper No. 141]

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:2675.

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Date of creation: Jul 2010
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Handle: RePEc:ess:wpaper:id:2675

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Keywords: poverty dynamics vulnerability Bangladesh poverty risk;

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References

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Citations

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Cited by:
  1. Xiaobing Wang & Woojin Kang & Katsushi S. Imai, 2010. "Poverty and Vulnerability in Rural China: Effects of Taxation," Working Papers id:2886, eSocialSciences.
  2. José Roche, 2013. "Monitoring Progress in Child Poverty Reduction: Methodological Insights and Illustration to the Case Study of Bangladesh," Social Indicators Research, Springer, vol. 112(2), pages 363-390, June.
  3. Manoj K. Pandey, 2013. "Elderly's Health Shocks and Household's Ex-ante Poverty in India," ASARC Working Papers 2013-01, The Australian National University, Australia South Asia Research Centre.
  4. Raghbendra Jha & Katsushi S Imai & Raghav Gaiha, 2009. "Poverty, Undernutrition and Vulnerability in Rural India: Public Works versus Food Subsidy," Working Papers id:1907, eSocialSciences.
  5. Raghav Gaiha & Katsushi Imai & Woojin Kang, 2007. "Vulnerability and poverty dynamics in Vietnam," The School of Economics Discussion Paper Series 0708, Economics, The University of Manchester.
  6. Katsushi S. Imai & Raghav Gaiha & Woojin Kang & Samuel Annim & Ganesh Thapa, 2012. "Does Risk Matter? A Semi-parametric Model for Educational Choices in the Presence of Uncertainty," The School of Economics Discussion Paper Series 1226, Economics, The University of Manchester.
  7. Md. Faruq Hasan & Katsushi S. Imai & Takahiro Sato, 2012. "Impacts of Agricultural Extension on Crop Productivity, Poverty and Vulnerability: Evidence from Uganda," Discussion Paper Series DP2012-34, Research Institute for Economics & Business Administration, Kobe University, revised Feb 2013.
  8. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
  9. World Bank, 2012. "Bangladesh - Towards Accelerated, Inclusive and Sustainable Growth : Opportunities and Challenges, Volume 2. Main Report," World Bank Other Operational Studies 12121, The World Bank.
  10. Sabina Alkire and Jose Manuel Roche, 2011. "Beyond Headcount: Measures that Reflect the Breadth and Components of Child Poverty," OPHI Working Papers ophiwp045, Queen Elizabeth House, University of Oxford.
  11. Katsushi S. Imai & Raghav Gaiha & Ganesh Thapa, 2012. "Does Non-farm Sector Employment reduce Rural Poverty and Vulnerability? Evidence from Vietnam and India," Discussion Paper Series DP2012-25, Research Institute for Economics & Business Administration, Kobe University, revised Nov 2012.
  12. Hardeweg, Bernd & Wagener, Andreas & Waibel, Hermann, 2013. "A distributional approach to comparing vulnerability, applied to rural provinces in Thailand and Vietnam," Journal of Asian Economics, Elsevier, vol. 25(C), pages 53-65.

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