The number of poor people in the country has increased due to coronavirus. This is a new problem that has emerged. That is why they must not be excluded from the discussion about development. They should be paid due attention. These new poor must be taken into account in the new budget. Special assistance must be provided to those who have lost employment during the Covid crisis so that they can get back a livelihood.
There must be two types of planning for the new poor – primary and long term. Primarily they may be provided with financial assistance. Earlier, initiative had been taken to provide these 5 million (50 lakh) families who were in a crisis, with a down payment of Tk 2,500 each. Many did not receive this money. If an allocation is kept in the budget to facilitate financial independence for the new poor, this can be quite effective during the crisis. The sooner that this financial assistance is provided, the better. So with no further delay, initiative must be taken in this forthcoming budget.
If the new poor are to be identified under an extensive programme, then the non-government sector’s support will be required alongside the government’s initiative. The NGOs have be included in this initiative. One of our studies reveals that around 25 million (2.5 crore) people have been freshly pitched into poverty due to coronavirus. It will be a significant step if at least 50 per cent of them can be provided with financial assistance in the coming budget.
The main problem of the new poor is that their income has decreased. Expenses have not decreased. The cost of water and electricity has gone up. The prices of essentials are also on an upward trend. So the daily living expenditures of these families have increased. Then there is the pressure on inflation. It will also be significantly beneficial for them if the government does not hike water and electricity prices.
As part of the long-term plan, the new poor must be given the scope to return to their original livelihoods. They are skilled in their respective occupations and want to return to those professions. Not being able to do so, they are being obliged to take up unskilled occupations.
The government is providing stimulus funds to small and medium entrepreneurs. That is where the topic of the new poor must be raised. The stimulus must be conditional to re-employing the laid off workers. The government and the private sector can work together in devising an overall strategy for the purpose.
The new poor do not have much space in the prevailing social safety net programmes. There is no separate social safety net programme for the urban poor. However, during this coronavirus pandemic, the number of urban poor has increased further. So it is essential to take up a new social safety net programme for the urban poor. The new and the old poor must receive benefits from this programme.
Food assistance is provided under the social safety net programme. This must continue, with an increase in the number of beneficiaries. It should not be just food assistance. The food assistance strategy needs to be redesigned, keeping the need for nutrition assistance in mind. The social safety net programme has certain components under which mere token assistance is provided. This token assistance should be shelved and durable assistance ensured.
* Hossain Zillur Rahman is an economist and former caretaker government adviser
* This opinion appeared in the print and online edition of Prothom Alo and has been rewritten for the English edition by Ayesha Kabir