Samriddhi

Samriddhi Project Document
The future gains in efficiency are due to:
• A process leading to a stepwise transfer of tasks and responsibilities from PNGO to
other actors like private sector actors and local service providers from the community. In
the medium term, sustainability of interventions will be greater allowing a gradual
phasing-out of certain activities.
• Concentrating activities around selected value chains working on the basis of validated
tools and methodologies reducing the cost per process, e.g. with regard to steps to be
taken to strengthen a value chain. Working with existing structures such as associations
of service providers will improve outreach through an increased number of direct and
indirect beneficiaries.
• The new set-up simplifying operational and administrative issues. The financial
management will be simplified, leading to a further reduction in transaction costs.
2. Context
2.1 General context 4
National economy
Low integration with the world economy helped cushion Bangladesh from the negative effects of
the recent financial crisis. Annual GDP growth dipped slightly to reach a still healthy 5.9 percent
in 2009. Lower international food and oil prices combined with a bumper rice crop helped to
bring down inflation. On the fiscal side, the underutilisation of the annual development
programme budget hampers growth and poverty reduction. Meanwhile, energy shortages
continue to choke private sector investment. Inflationary pressures may re-emerge if the liquidity
overhang in the domestic banking system continues and international commodity prices rise.
Poverty
For 2008, the population of Bangladesh was estimated to be over 160 million. According to the
World Bank, in 2005, around 80% of all Bangladeshi lived with less than 2 US$ per day and
40% with less then 1 US$ a day. An increase in food prices in 2007, combined with the factors
of weak or lacking social safety nets have resulted in thousands of Bangladeshis falling back
into poverty and extreme poverty in the project intervention areas. In addition, it is expected that
the impact of the financial crisis on poverty will be more significant in 2010. Prior to the crisis,
Bangladesh was on target to cut poverty by nearly 11 percentage points between 2005 and
2010. With the impact of the crisis, the poverty rate is now projected to fall by only about 9
percentage points.
4 Data from Asian Development Outlook 2009 (Pp 117-122), Asian Development Bank; and Bangladesh
Economic Update, Economic Policy and Poverty Team, World Bank, September 2009; as well as own
data.
Intercooperation Bangladesh Page 3