MDG Report 2012 - United Nations in Bangladesh

Indicator 1.1a: Proportion of population below national upper poverty line (2,122 kcal/day)Bangladesh has been successful in achieving significant reduction in poverty since 1990. Thisis shown in Figure 2.2. National poverty headcount ratio declined from 56.7 percent in 1991-92 to 31.5 percent in 2010. A notable feature of poverty reduction between 2005 and 2010was a significant decline in the incidence of extreme poverty. The percentage of populationunder the lower poverty line, the threshold for extreme poverty, decreased by 29.6 percent (orby 7.4 percentage points), from 25 percent of the population in 2005 to 17.6 percent in 2010.The incidence of extreme poverty declined by 47 percent (or by 7 percentage points) in urbanareas and 26 percent (or by 7.5 percentage points) in rural areas.Figure 2.2: Long-Term Poverty Trends (Headcount Ratio)Source: HES1991-92 and HIES, various years, BBSThe decline in headcount ratio was greater than population growth during 2005-2010 periodwhich led to a decline in the absolute number of the poor people. The size of the populationbelow the upper poverty and the lower poverty lines declined by nearly 8.58 million and 8.61million respectively during the period. The level and distribution of consumption among thepoor improved as well, as is evident from reductions in the poverty gap and squared povertygap measures by 28 percent and 31 percent respectively. Real per capita consumptionexpenditure during the 2005-2010 period increased at an average annual rate of 16.9 percent,with a higher rate of increase in rural areas as compared with the urban areas. This shows thatthe economic conditions and incomes of the rural people, especially the poor, have improvedsignificantly as a result of the pro-poor and pro-rural policies of the government.Figure 2.3: Projected Head Count Ratio for 2015Source: Projection is made based on various rounds of HIES data of BBS24