Poverty to drop to half by 2021: Muhith

Finance Minister AMA Muhith anticipates poverty to reduce to half of the current level by 2021.

Speaking at a national seminar on 'Poverty Alleviation and Social Development: Role of Micro-Credit' on Sunday, Muhith said acute poverty was on its way out in Bangladesh.

"Poverty won't be around in Bangladesh for much longer. So I don't want to talk of poverty alleviation, but of poverty eradication. Only some disadvantaged people like old and physically handicapped will need social security," said a confident-sounding Muhith.

"Twenty-six percent of our population is below poverty line now. That will drop to 14 to 15 percent by 2021. Any country where only 14-15 percent people are poor can no longer be called a poor country."

Muhith said only five percent of microcredit beneficiaries had defaulted although the amount of default loans was increasing in the banks.

"Changes can be brought in rural lives if we can utilise these microcredits for productive purposes,” he said.

The Microcredit Regulatory Authority (MRA), Palli Karma-Sahayak Foundation (PKSF) and Institute of Microfinance co-organised the two-day seminar.

PKSF Chairman Qazi Kholiquzzaman Ahmad said poverty alleviation with only microcredit was not possible. "Microcredit helps a bit of progress but sustainable development was not possible with it."

He said the standard of living had to be uplifted for sustainable development and a social capital was needed for this.

PKSF's Managing Director Abdul Karim said microcredit played a huge role in alleviating poverty in Bangladesh.

He added that the PKSF had loaned out Tk 1.74 billion to various organisations and around 10 million people had benefitted.

The seminar informed its audience that 40 million people were still living below the poverty line in Bangladesh.

About 700 MRA-registered organisations were working on microcredit in Bangladesh with a customer base of 33 million.