The World Bank in Bangladesh

Page 33

Approach EGPP targets the most vulnerable in society in a number of ways. Firstly, a greater proportion of funds are channelled to the poorest upazillas, especially along the coastal regions. Secondly, only households with less than ½ an acre of land and where the head is a manual labourer are eligible. Thirdly, wages are set at below market wage level to attract only those who need the money the most. Furthermore, one third of all beneficiaries must be women. EGPP is a new generation of safety net programs that sets aside part of the budget for improving transparency and monitoring. For the first time in the history of Bangladesh, wages to manual labourers are being paid through banks minimising the chance of leakage. Furthermore, improved public disclosure as well as a new grievance redress system contributes towards better governance. Finally, funds are released when agreed targets are met. This results-based approach creates incentives for efficiency and allows for innovation making EGPP the dynamic program it is today. Since the World Bank’s support to the program in 2010, EGPP has provided over 105 million employment days and distributed a total of US$ 207 million of wage income. With only four years in operation, the EGPP has become one of the largest safety net programs in Bangladesh.

With the money I earn from building roads, at least I have enough to put food on the table — Halima, day laborer in Kapasia.

Results in Numbers

630,000 ultra-poor employed per year. 95% of beneficiaries engaged in manual labour

and own less than ½ an acre.

1,489,000 of beneficiaries from women

headed households.

50 million work days created per year. 100% of payments made via banks or formal financial channels.

US$150 million allocation in FY 2013, up by US$ 25 million from the previous year.

Towards the Future

© Shehab Uddin

Recognizing its positive results, the Government of Bangladesh increased the allocation for EGPP by 20% from US$ 125 to US$ 150, the highest increase for any program in the current FY. The program is expecting to reach a further 630,000 thousand people in the coming fiscal year and to deliver a further 24 million employment days. With the constant threat of natural disasters and global warming creating longer and harder lean periods, the support provided by EGPP is needed more than ever before so that a crop failure or a poor harvest does not turn into a famine.

The World Bank in Bangladesh

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