The Asian Development Bank (ADB) and the government of Bangladesh have signed a $250 million loan agreement to bolster Bangladesh’s social protection system.
Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Edimon Ginting, ADB’s Country Director, signed the agreement today at a ceremony held at the ERD in the capital.
“The Second Strengthening Social Resilience Program aims to accelerate reforms by increasing the coverage and efficiency of protection, improving financial inclusion for disadvantaged people, and strengthening the response to diversified protection needs,” stated Country Director Edimon Ginting.
Building on the first Strengthening Social Resilience Program completed in June 2022, this second initiative seeks to improve the policy, regulatory, and institutional framework for social protection in Bangladesh. This program aligns with the government’s Action Plan Phase II of the National Social Security Strategy (2021-2026), aiming to enhance the social protection system’s protective and preventive capabilities.
According to a press release, the program will improve efficiency in social protection program management, increase protection for the most vulnerable populations, and expand the scope of social protection by introducing contributory schemes. These measures aim to reduce vulnerability, social exclusion, and the risk of further poverty.
The program will introduce a beneficiary verification scheme for cash-based social protection programs to minimize leakages. It will also merge two cash-based protection programs for people with disabilities to improve efficiency and effectiveness.
To address climate vulnerability, the program will integrate climate adaptive measures into social protection, including identifying individuals most at risk from climate change-induced disasters to ensure appropriate assistance.
ADB’s support will enhance protection for vulnerable women and transgender people by increasing the number of beneficiaries under the widow allowance program and extending the livelihood support program for transgender individuals.
Additionally, Bangladesh Bank will double its funding for the Small Enterprise Refinancing Scheme for Women Entrepreneurs to improve access to financial services for women small business operators.
Another key objective of the program is to strengthen the governance mechanism of the employment injury scheme pilot, particularly in the ready-made garments sector. It also supports establishing a tripartite committee comprising workers’ associations, employers’ associations, and the government to advance social protection for workers under the Ministry of Labour and Employment, a crucial step in developing the country’s social insurance schemes.
To support the implementation, technical and policy analyses, and capacity building of relevant government agencies, ADB will provide a $1 million grant from its Technical Assistance Special Fund (TASF 7) and another $1 million grant from the ADB-administered Community Resilience Partnership Program Trust Fund under the Community Resilience Financing Partnership Facility.
