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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 those without education or agricultural households are likely to be the most vulnerable. The geographical diversity of vulnerability is considerable, for example, vulnerability in 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. For the chronic 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, though 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.

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File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2009/WP2009_02.pdf
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Bibliographic Info

Paper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2009-02.

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Length: 28
Date of creation: 2009
Date of revision:
Handle: RePEc:pas:asarcc:2009-02

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Keywords: poverty; vulnerability; risks; poverty dynamics; Bangladesh;

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References

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  1. Stefan Dercon, 2003. "Growth and Shocks: evidence from rural Ethiopia," Economics Series Working Papers WPS/2003-12, University of Oxford, Department of Economics.
  2. Pramila Krishnan & Stefan Dercon, 1997. "In sickness and in health ... risk-sharing within households in rural Ethiopia," CSAE Working Paper Series 1997-12, Centre for the Study of African Economies, University of Oxford.
  3. Ligon, Ethan & Schechter, Laura, 2004. "Evaluating different approaches to estimating vulnerability," Social Protection Discussion Papers 30159, The World Bank.
  4. Robert Holzmann & Steen Jorgensen, 2000. "Social risk management : a new conceptual framework for social protection and beyond," Social Protection Discussion Papers 21314, The World Bank.
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  6. Jalan, Jyotsna & Ravallion, Martin, 2001. "Household income dynamics in rural China," Policy Research Working Paper Series 2706, The World Bank.
  7. Hans Hoogeveen, 2001. "A New Approach to Insurance in Rural Africa," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 26(3), pages 505-513, July.
  8. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
  9. Canagarajah, P. Sudharshan & Siegel, Paul B. & Heitzmann, Karin, 2002. "Guidelines for assessing the sources of risk and vulnerability," Social Protection Discussion Papers 31372, The World Bank.
  10. Tesliuc, Emil D. & Lindert, Kathy, 2004. "Risk and vulnerability in Guatemala: a quantitative and qualitative assessment," Social Protection Discussion Papers 30154, The World Bank.
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Cited by:
  1. 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.
  2. Katsushi S. Imai & Xiaobing Wang & Woojin Kang, 2009. "Poverty and Vulnerability in Rural China: Effects of Taxation," The School of Economics Discussion Paper Series 0913, Economics, The University of Manchester.
  3. 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.
  4. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
  5. 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.
  6. 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.
  7. 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.
  8. 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.

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