43pc families cut food expenditure: CPJ survey

In the survey, 42 per cent of the families in December said they had cut food costs and 33 per cent said they had taken up low paid jobs. And 26 per cent said they had broken into their savings

Food assistance at the Korail slum, Dhaka during the coronavirus pandemic
Collected

Most people have cut down on their food expenditure to cope with the financial hardships resulting from the coronavirus outbreak. The latest records put this number of people at 43 per cent of the population. Outside of this, there are those who are dipping into their savings for survival. Then again, there are those who are taking up low paid labour for whatever wages they can get.

These facts were revealed in a survey carried out by BRAC’s Centre for Peace and Justice (CPJ). The results of the survey were published on Monday at the CIRDAP auditorium in the city.

The survey indicated there had been some improvement in people’s income. Last June 64 per cent of the people said their income had decreased. In December this was 53 per cent. Even so, more than half of the families have failed to return to their previous level of income. In the meantime, the prices of essentials have been shooting up.

In the survey, 42 per cent of the families in December said they had cut food costs and 33 per cent said they had taken up low paid jobs. And 26 per cent said they had broken into their savings.

The rate of borrowing has decreased, but that does not mean the people’s situation has improved. Many have not been able to repay their previous loans and so do not qualify for fresh loans
Nahida Akhter, CPJ Research Assistant

CPJ ran the survey, ‘Voices from the Margins and Inclusive Policy Response to Covid-19 Pandemic’, in three phases. The first phase was conducted in June last year, the second phase in September and the third in December. The samples for the survey were 1500 families who mostly comprised urban slum dwellers, rural poor, ethnic minorities of the hills and plains, families headed by women and families with disabled persons, in 40 upazilas of 20 districts.

The British government’s Foreign, Commonwealth and Development Office (FCDO) and the Covid Collective Platform of Sussex University’s Institute of Development Studies provided assistance for the survey.

The survey report was presented by CPJ’s senior researcher Mrinmoy Samaddar, research assistants Nahida Akhter and Hossain Mohammad Omar Khaiyyam. The survey results were presented on six factors – knowledge about Covid-19, awareness and behaviour, vaccine reach, impact and vulnerability, crisis management strategies, state measures and social integration.

Earlier, surveys had revealed decrease in people’s income during the pandemic, increase in the rate of poverty and the predicament of the people. For instance, in June 2020 Bangladesh Institute of Development Studies (BIDS) indicated that due to coronavirus, 16.4 million (1 crore 64 lakh) people had fallen below the poverty line anew. A joint survey carried out by the BRAC Institute of Governance and Development (BIGD) and the Power and Participation Research Centre (PPRC) said that during the coronavirus pandemic 32.4 million (3 crore 24 lakh) people had become poor. The results of this survey were published in November last year.

Then again, in January last year the South Asian Network on Economic Modelling (SANEM) said that the country’s upper poverty rate had increased to 42 per cent, which had been around 21 per cent before the outbreak of the novel virus. The government, however, denies the issue of new poor.

The government has declared that it will provide food at subsidised costs to 10 million (1 crore) families. That is good, but it needs to be determined how this assistance reaches the people who need it
Mushtuq Husain, advisor, IEDCR

Speaking to Prothom Alo, SANEM’s executive director Selim Raihan said, “From the very outset we have been saying that the government should carry out its own survey. Then decisions must be taken accordingly. If not, it will not be possible to understand the actual situation.”

Concerning the CPJ survey, he said the situation has hardly improved. And now the prices of essentials have gone up and one can easily understand the condition of the people.

Loans for survival

The survey indicated that last June 66 per cent of the families took loans for the sake of survival. In December this decreased to 34 per cent. In December too, one third of those who took loans did so to buy food. One fourth took loans to repay previous loans and others used the money for medicines, medical treatment and so on. They took loans from moneylenders, relatives and friends.

Concerning the loans, CPJ research assistant Nahida Akhter said that the rate of borrowing has decreased, but that does not mean the people’s situation has improved. Many have not been able to repay their previous loans and so do not qualify for fresh loans.

She said that an elderly woman from a Dhaka slum had told her that her two daughters worked in the readymade garment industry. However, though prices of essentials had been increasing her daughters wages hadn’t gone up and so they were unable to make ends meet. They eat two meals a day. They still owe Tk 200 of a loan taken from someone and this is another cause of concern.

Cutting costs

In June, September and December, people cut their food budgets to meet costs. In June 42 per cent of the people, in September 56 per cent and in December 43 per cent, said that they were trying to manage family costs by cutting expenditure on food. Then there was breaking into savings. Around 25 to 30 per cent of the families were surviving on their savings. In September, 26 per cent of the people said they had sent their school-going children to work. On the brighter side, this fell to 1 per cent in December.

As soon as the spread of Covid fell, so did government assistance. In June last year, 28 per cent of the families received government money and food assistance. This fell to 11 per cent in December.

Vaccine

The survey report said there was a gradual growth in awareness that Covid-19 was a dangerous and contagious disease. There was also an increase in positive response to the need for the vaccine. Even so, there are 31 per cent families where a member even in December didn’t register for the vaccine.

Discussion

The survey report recommended payment of cash to marginalised people rather than distribution of rations and food, provision of microcredit from banks, registration with the local government offices for relief assistance, coordinating between banks and mobile finance platforms to provide cash, etc.

Among the guests speaking at the event, advisor of the Institute of Epidemiology, Disease Control and Research (IEDCR) Mushtuq Husain said, the government has declared that it will provide food at subsidised costs to 10 million (1 crore) families. That is good, but it needs to be determined how this assistance reaches the people who need it. The previous initiative of the government to provide money through mobile phones was a failure.

Chairing the meeting, CPJ executive director Manzoor Hasan said Covid has impacted marginalised people in multiple ways.