Among the low-income people badly hit by the coronavirus-induced economic slowdown, about 86 per cent of them are not earning enough to meet their daily necessities.
About 62 per cent of working people lost their jobs at some point mostly in April and May 2020 when the 'general holiday' was declared due to the pandemic.
More than 85 per cent of the employed people in the pre-COVID period who had lost the jobs became unemployed for more than one month.
And, earning of more than 40 per cent of the working groups has decreased than the pre-COVID-19 period. Although the employment situation has slightly improved, most of the jobless people still remain unemployed.
A significant number of people has lost jobs in the service sector. They have switched their jobs from the service sector to the agriculture sector for the sake of lives and livelihoods. Around 90 per cent of them engaged in self-employment, contributing family members and day labourers.
A household survey titled ‘Income and Employment Situation in COVID Times: How the People Are Coping?’ reveals the data. The survey was conducted upon a total of 2,600 selected households between late January and early February this year.
On 5 May, the survey report was published in a virtual meeting organised by Citizen’s Platform for SDGs, Bangladesh. Centre for Policy Dialogue (CPD) and Oxfam in Bangladesh jointly conducted the survey while the European Union financed the initiative.
CPD’s senior research fellow Towfiqul Islam Khan presented a keynote paper. Citing the survey report, he said about 78 per cent of the surveyed individuals reduced expenditure while at least 5 per cent of people had to sell their properties to cope with the impact of the COVID-19 pandemic.
It recommended on more allocation for the social safety net programme. It continued that public investment needs to be increased so that people get jobs. Moreover, incentive package would be beneficial for the small and medium entrepreneurs to access soft loan.
Taking part to the discussion, CPD chairman professor Rehman Sobhan questioned whether the government recognises the research findings or not. He emphasised that the government would take the results of the research into cognisance for devising the policy interventions.
Former advisor to the caretaker government, Tapan Chowdhury, said despite the pandemic, substantial investments were made in industries, which is a hopeful scenario. “Good days are coming. We need policy support by the government,” he said.
CPD’s distinguished fellow Debapriya Bhattacharya said that people have to reduce their dietary budget because of the pandemic that adds new poor as well as intensifies discrimination in the country.
“Lower-income people have been affected most due to the pandemic. Despite this, the government is happy with the GDP growth. Relating the GDP growth with development amid data deficiency is nothing but looking for a black cat in a dark room,” he said.
He added that the government lacking proper data or discouraging data-based fact finding also lacks accountability. He questioned the effectiveness of the Covid-19 response including cash incentives by the government. “There is a continuous risk of natural calamities in the countries. Hence, the government needs to design mid-term as well as inclusive development planning to help people cope with Covid-19."
Rizwanul Islam, former special advisor on growth, employment and poverty reduction of International Labour Organization (ILO), observed that policymakers tend to glorify the GDP growth and concerned about Bangladesh’s position among the South Asian nation. “But a small number of people benefits from the outcome of GDP growth,” he said.
“Indeed, we need GDP growth,” he questioned, “Is the GDP growth inclusive? How much have we reduced the unemployment rate with this? To what extent could we bring down the poverty rate? What have we done to eliminate discrimination?”
"There are around 150 social safety net programmes. There is no unemployment allowance. Some people who are over 70 years old are given allowance which is equal to three days' wage,” Rizwanul said.
Citing that Bangladesh Bureau of Statistics did not update the household survey since 2016, Rizwanul requested, “Please do it now”.
Dhaka Chamber of Commerce and Industry president Rizwan Rahman said the government must include the non-government organisations to support the Covid-19 hit small enterprises.
He added that only 200,000 people could get overseas employment in 2020 while the number was less than the usual count of 700,000 during the pre-Covid period.
Bangladesh Employers’ Federation president Kamran T Rahman said demands have to be created in the economy. He expressed his hope that export and overseas employment would increase if the global Covid-19 situation improves.
The government should take steps to create demands of products in the domestic markets, he said.
Razequzzaman Ratan, president of Samajtantrik Sramik Front (Socialist Labours' Front) called for a rationing system for the workers so that they can meet their food needs at low cost.
Business Initiative Leading Development’s chief executive officer Ferdaus Ara Begum recommended that the government can follow a model of Cambodia that helped distribution of government support twice among 300,000 affected people properly.
CPD’s executive director Fahmida Khatun, Oxfam in Bangladesh’s country director Dipankar Datta, BGMEA vice president Shahidullah Azim, and Eco-Social Development Organization’s executive director Shahid Uz Zaman, among others, also spoke.
* This report appeared on the online and print editions of Prothom Alo, has been rewritten in English by Sadiqur Rahman