Impact of Poverty and Inequality on Economic Growth of Bangladesh

Abstract

The radiation of poverty in Bangladesh is one of the highest in the world and millions of people suffer from the anguish of poverty. The country’s poverty rose to 29.5 percent as of June, 2020 due to Covid-19, which was 20.5 percent in the last fiscal year 2019. Moreover, inequality make bad the persistence of poverty. This study attempts to focus on the poverty trends, economic growth and inequality in Bangladesh. Poverty is a multi-faced problem in the developing world and it is much more complex in rural setting. This study is also focused on to decompose inequality and poverty by rural, urban and national level household. The study is based on the analysis of secondary data which have been collected from different sources. The incidence of poverty has decreased to 20.5 percent from 31.5 percent in 2010. From the study, it is evident that, the incidence of poverty is higher in rural areas than that of the urban areas. This study tries to find the relationship among poverty inequality and growth. This study analysis GINI Index for income, Gini coefficient of per capita income of different survey years. The analysis shows a clear picture of the trend of poverty and inequality in Bangladesh. Using the Household Income and Expenditure survey of different years. This study attempt to figure out the relationship between inequality and per capita income. This study focusses on some problems of poverty and inequality and also mention some policy to eradicate of poverty and inequality.

Keywords: Covid-19, Household Survey, Inequality, Per Capita Income, Poverty

DOI: 10.7176/JESD/12-10-10

Publication date:May 31^st 2021