Growth with Equity: A Bangladesh Perspective

Abstract

This article examines the growth and inequality situation in Bangladesh and the interlinkages between growth, poverty and equity. The experience of the past dec ade reveals that higher economic growth and reduced poverty are accompanied by a more unequal income distribution. It is significant that the higher GDP growth has not resulted in rapid declines in poverty due to the rise in income inequality. Growth of agriculture has been found to be least associated with rise in inequality. The pro-poor stance of the government is evident in the increased allocations to poverty alleviation and social sectors, particularly schemes for micro-credit. The article suggests that the government should simultaneously promote policies for encouraging growth and poverty reduction and not leave the task of poverty reduc tion to the market.