Bangladesh: Economic Reform Measures and the Poor

IMF Working Papers, April 1, 1991

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The paper assesses the impact on the poor of the economic reforms undertaken in Bangladesh under Fund-supported structural adjustment programs.
Program-induced changes in production, employment, and incomes have benefitted the poor.
The adverse impact of program-induced price changes has been modest.
As adjustment efforts are intensified under the current structural adjustment program, more pronounced short-term adverse effects might arise, requiring compensatory measures.
The paper reviews special assistance programs for the poor, including those designed to mitigate the potential adverse effects of adjustment.
Improved targeting of assistance programs would yield sizable fiscal savings that could be used for strengthening social programs.

Anticipate more pronounced short-term adverse effects as adjustment intensifies; implement compensatory measures to shield vulnerable groups.
Strengthen and better target special assistance programs for the poor to increase effectiveness and generate fiscal savings.
Reallocate fiscal savings from improved targeting toward bolstering social programs that support income-generating capacity and employment opportunities for the poor.

Subjects addressed: Agricultural commodities, Commodities, Consumption, Income, Inflation, National accounts, Population and demographics, Prices, Wages.
Keywords highlighted in the analysis: adverse impact, Agricultural commodities, Consumption, employment opportunity, ESAF period, ESAF program, household expenditure survey, Income, income growth, income-generating capacity, income-generating opportunity, Inflation, per capita income, price change, price distortion, price increase, private sector, real wage, redistribution policy, wage employment, WP.