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Addressing Regional Inequality Issues in Bangladesh Public Expenditure

Listed author(s):
  • Chowdhury Shameem Mahmoud

    (Centre for Policy Dialogue)

  • Syed Naimul Wadood
  • Kazi Sabbir Ahmed

Traditionally development effort of Bangladesh government have aimed at achieving equitable economic growth. The concept is an overriding factor in formulating national policy strategies of poverty alleviation. In this context, the objectives of poverty alleviation are mostly designed with social development factors, particularly improvements in health and education indicators. One of the most important policy documents Unlocking the potential : National Strategy for Accelerated Poverty Reduction (the PRSP paper which was extended till June 2008), and other government documents embody such with great importance (Medium Term Budget Framework 2007- 2010 documents on website of the Ministry of Finance. Since returning to democracy in 1991, Bangladeshs economy has achieved a steady growth rate with concomitant fall of poverty incidences at an accelerated pace. In fact, the country experienced more than 10 percentage point fall in poverty rate between 2000 and 2005 (Table 1), which is indeed a commendable achievement aligned to other better performances that Bangladesh has been experiencing for the last three decades since independence. One feature of this development is, however, less assuring. Regional analysis of poverty incidences shows that reduction rate is not equal across the country, rather the situation is worsening in some cases. Such picture reflects an unequal progress in overall economic activity throughout the country.

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Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22293.

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Date of creation: Jan 2008
Handle: RePEc:eab:develo:22293
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  1. Philip Keefer & Stuti Khemani, 2005. "Democracy, Public Expenditures, and the Poor: Understanding Political Incentives for Providing Public Services," World Bank Research Observer, World Bank Group, vol. 20(1), pages 1-27.
  2. Tam, Mo-Yin S & Persky, Joseph, 1982. "Regional Convergence and National Inequality," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 161-165, February.
  3. Sanjeev Gupta, 1998. "Does Corruption Affect Income Inequality and Poverty?," IMF Working Papers 98/76, International Monetary Fund.
  4. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August.
  5. Vito Tanzi & Hamid R Davoodi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 97/139, International Monetary Fund.
  6. Anwar Shah, 2005. "Public Expenditure Analysis," World Bank Publications, The World Bank, number 7436, September.
  7. Atlas, Cary M, et al, 1995. "Slicing the Federal Government Net Spending Pie: Who Wins, Who Loses, and Why," American Economic Review, American Economic Association, vol. 85(3), pages 624-629, June.
  8. Keefer, Philip & Khemani, Stuti, 2003. "Democracy, public expenditures, and the poor," Policy Research Working Paper Series 3164, The World Bank.
  9. Edna Loehman & Robert Emerson, 1985. "A Simultaneous Equation Model of Local Government Expenditure Decisions," Land Economics, University of Wisconsin Press, vol. 64(4), pages 419-432.
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