A study of food aid leakage in Bangladesh

The estimated average leakage in the Vulnerable Group Development (VGD) programme due to short ration and undercoverage is 8 percent of the total wheat allotment. These losses are low by international and Bangladesh standards, and are due, in part, to monitoring and evaluation throughout the system and women's empowerment at the union level to hold programme managers accountable." from Text

Opportunities and challenges in agriculture and garments

"For the past two decades, Bangladesh has enjoyed steady growth in per capita incomes enabling a significant reduction in poverty. An increase in rice productivity, achieved through a combination of improved seeds, increased fertilizer use, and public and private investments in irrigation, played a major role in the increase in incomes. Among the other major factors were a large expansion in textile exports, made possible by changes in world demand, Bangladesh trade liberalization, and macro-economic stability; and increases in workers remittances. In order to accelerate or even maintain income growth rates and poverty reduction, future policies must be carefully designed to capture the benefits and minimize the risks of international trade and a constantly changing international environment. A proper assessment of the impact of such policies and economic developments on the poor requires a comprehensive framework to analyze interactions between different sectors as well as linkages between macro and micro levels. In this paper we construct a social accounting matrix for 1999/2000 and develop a computable general equilibrium model (CGE) with special treatment of the rice and wheat sectors. We then present simulations of the effects of (i) rice productivity shocks, (ii) a decline in the world rice price, and (iii) a reduction in RMG exports, reflecting an end to preferential access to RMG markets for Bangladesh goods.... Overall, these simulations illustrate the importance of trade policy and links between Bangladesh and the world economy. International trade offers the potential to prevent a decline in real prices of rice if productivity of paddy production increases and to benefit from increased export earnings. It has also permitted a large increase in RMG export earnings. However, changes in international markets could threaten welfare of some Bangladesh households, as well, as illustrated by the simulations of lower import prices of rice that could sharply reduce farmer incomes, and of a decline in textile export earnings that could sharply reduce female urban employment and urban household incomes....[T]hese simulations show that the Bangladesh economy and household incomes are clearly linked with the global economy, particularly through foodgrain trade and the RMG sector. Efforts to alleviate poverty and raise the incomes of the poor should not neglect these linkages, particularly in cases where these poverty alleviation interventions are large enough to have major effects on the real exchange rate and female labor earnings." Author's Abstract.Equilibrium (Economics) Models ,

Wider impacts of microfinance institutions: issues and concepts

The paper distinguishes between a 'wider' definition of wider impacts (which takes into account feedbacks from impacts to institutional performance) and a 'narrower' definition, which does not. In respect of both definitions, the paper sets out a typology of the effects which need to be measured (cultural, economic, social and political) and of the levels at which each of these impacts needs to be assessed (local, regional and national). The purpose is not to set out a blueprint for specific studies but rather to offer a framework which may be useful for guiding the methodology of such studies. Copyright © 2004 John Wiley & Sons, Ltd.

Food aid distribution in Bangladesh

"The International Food Policy Research Institute (IFPRI) conducted a comprehensive study of the efficiency of food distribution in food aid-supported programs in Bangladesh. The capacity and efficiency of the food distribution system was assessed from entry ports to targeted beneficiaries. The study identified problems in the whole food distribution system, determined the level of losses, leakages, and other lapses at various stages, and recommended solutions. The study has three components: (1) food discharge at harbors, (2) the public food distribution system, and (3) food distribution to program beneficiaries. This brief summarizes the main findings and a few of the many key recommendations of the third component of the study." from TextFood aid ,Food distribution ,Leakage ,

Food aid distribution in Bangladesh: leakage and operational performance

Donors support a number of targeted food-based programs in Bangladesh that are widely credited with providing poor people access to food and improving their food security. However, inefficiency in the food distribution system may be hindering the realization of the full benefits of these programs. The International Food Policy Research Institute (IFPRI) conducted a comprehensive study of the efficiency of food distribution in food aid-supported programs in Bangladesh. The study has three components: (1) food discharge at harbors, (2) the public food distribution system, and (3) food distribution to program beneficiaries. The capacity and efficiency of the food distribution system was assessed from entry ports to targeted beneficiaries. The study identified problems in the whole food distribution system, determined the level of losses, leakages, and other lapses at various stages, and recommended solutions

Implementation of policies for reducing chronic poverty: PRS country study Bangladesh

Bangladesh’s IPRSP was finalised in June 2003 and the full PRSP was finalised in January 2006. The broad objective of the Bangladesh study is to assess progresses made in implementation of policies (in PRSP) aimed at reducing chronic poverty. All policies and programs (often not explicitly backed by a written policy), which are deemed either directly or indirectly to have reduced chronic poverty are within the scope of the current study. In the process the study identifies areas where improvements may be made in policy and policy processes relevant for reducing chronic poverty in the country. In realising the broad objective, the study team undertook a mapping exercise, identified policy space meant for the chronic poor, assessed in selected areas if these were implemented, and assessed possible determinants of implementation. The study involved desk reviews and analyses of secondary data. The team also undertook field studies through interviews and FGDs for selected programs/projects in selected areas. The study was undertaken during October 2006 till February 2007, with additional inputs obtained till May 2007. These were difficult times for Bangladesh – the elected government made way for a caretaker government to oversee the parliamentary election in late October 2006, after several changes there is now a caretaker government undertaking major administrative and political reforms with supports from the military. While one would hesitate to predict on any outcome, there is a broad consensus that politics, policymaking and policy implementation will no more be the same in Bangladesh. In such a context, the findings of the study will hopefully be useful inputs to shaping a new future

OPPORTUNITIES AND CHALLENGES IN AGRICULTURE AND GARMENTS: A GENERAL EQUILIBRIUM ANALYSIS OF THE BANGLADESH ECONOMY

For the past two decades, Bangladesh has enjoyed steady growth in per capita incomes enabling a significant reduction in poverty. An increase in rice productivity, achieved through a combination of improved seeds, increased fertilizer use, and public and private investments in irrigation, played a major role in the increase in incomes. Among the other major factors were a large expansion in textile exports, made possible by changes in world demand, Bangladesh trade liberalization, and macro-economic stability; and increases in workers. remittances. In order to accelerate or even maintain income growth rates and poverty reduction, future policies must be carefully designed to capture the benefits and minimize the risks of international trade and a constantly changing international environment. A proper assessment of the impact of such policies and economic developments on the poor requires a comprehensive framework to analyze interactions between different sectors as well as linkages between macro and micro levels. In this paper we construct a social accounting matrix for 1999/2000 and develop a computable general equilibrium model (CGE) with special treatment of the rice and wheat sectors. We then present simulations of the effects of (i) rice productivity shocks, (ii) a decline in the world rice price, and (iii) a reduction in RMG exports, reflecting an end to preferential access to RMG markets for Bangladesh goods. The simulation results suggest that increases in productivity of rice, a key to the gains in rice production and fall in real rice prices that helped Bangladesh to reduce rural poverty in the last two decades, still have the potential to benefit most households. However, in the absence of intervention in domestic markets, the resulting decline in real rice prices reduces real incomes of larger farmers. If trading links can be established and exports prevent a price fall, however, both producers and consumers enjoy real income gains. Reduced Bangladesh textile (RMG) exports affect all households through the depreciation of the real exchange rate required to offset the decline in export earnings as well as through the overall reduction in labor demand. According to the simulations, a 25 percent decline in RMG export (excluding knitwear) volume would lead to a 6.0 percent decrease in wage payments to unskilled female labor in non-agricultural sectors and a 0.5 to 1.0 percent decline in the real incomes of urban poor households. Overall, these simulations illustrate the importance of trade policy and links between Bangladesh and the world economy. International trade offers the potential to prevent a decline in real prices of rice if productivity of paddy production increases and to benefit from increased export earnings. It has also permitted a large increase in RMG export earnings. However, changes in international markets could threaten welfare of some Bangladesh households, as well, as illustrated by the simulations of lower import prices of rice that could sharply reduce farmer incomes, and of a decline in textile export earnings that could sharply reduce female urban employment and urban household incomes. Moreover, the simulations illustrate important general equilibrium considerations that need to be taken into account in policy analysis, including large changes in the real exchange rate needed to avoid an a substantial increase in the current account deficit in the case of a decline in RMG exports. Further analysis is needed to better quantify the magnitude of the key linkages with alternative model specifications and parameters, and in different policy scenarios. In addition, work is needed on policy alternatives to offset the potential adverse impacts of declines in terms of trade and export opportunities. Nonetheless, these simulations show that the Bangladesh economy and household incomes are clearly linked with the global economy, particularly through foodgrain trade and the RMG sector. Efforts to alleviate poverty and raise the incomes of the poor should not neglect these linkages, particularly in cases where these poverty alleviation interventions are large enough to have major effects on the real exchange rate and female labor earnings