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RURAL BANGLADESH - PreventionWeb

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Socioeconomic Profiles of WFP Operational Areas and Beneficiaries<br />

This section will discuss household ability to save and use credit toward building productive<br />

livelihoods strategy.<br />

3.1 SAVINGS<br />

Approximately 35 percent of the households in the study population save. Survey results<br />

indicate that savings increase according to household socioeconomic status. Approximately<br />

half of the non-vulnerable households regularly save, whereas only a quarter of the invisible<br />

poor reported regular savings. Saving behaviour varies significantly across regions;<br />

households living in the Northwest save most (46 percent) while the lowest proportion of<br />

households able to save are located in the Haor region (26 percent). The proportion of<br />

female-headed households able to save is significantly lower (21.5 percent) than their maleheaded<br />

counterparts (36 percent).<br />

Figure 16: Household Savings by Socioeconomic Status<br />

% of household<br />

90<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

Yes<br />

No<br />

Does any HH member save?<br />

Non 2 3 Most<br />

Vulnerable<br />

vulnerable<br />

Households socioeconomic status<br />

The advent of the Grameen Bank and other microfinance institutions, which stipulate<br />

savings as a requirement for membership, has promoted household savings into what is<br />

becoming a widespread livelihood strategy in rural Bangladesh. Under this model, a savings<br />

account is a prerequisite for micro-credit. There are, in addition, other forms of savings<br />

available in villages, such as local formal and informal savings groups (samities) and the<br />

formal insurance savings programs.<br />

Savings is highly correlated with household membership in NGOs, CBOs or Grameen.<br />

Interestingly, more than half of all non-vulnerable households who save are also members of<br />

NGOs or the Grameen Bank. Typically member households of NGO or Grameen keep their<br />

savings in these organizations. Almost 25 percent of the vulnerable households are able to<br />

save and more than 60 percent of the non-vulnerable households reported keeping their<br />

savings in an NGO or Grameen, although almost one-third (32 percent) of the nonvulnerable<br />

households have some savings in commercial banks.<br />

Table 23: Average Household Savings by WFP Priority Zone<br />

WFP Zone CHT Coast Drought NW Char Haor Totals<br />

Mean Taka<br />

Std<br />

4433.74 6470.87 4391.70 3520.60 2934.18 3802.50 3709.28<br />

Deviation 9121.21 13529.71 9584.14 8036.49 5057.94 9454.91 8328.68<br />

52

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