On Monday, the Asian Development Bank (ADB) and the government of Bangladesh signed a $250 million loan agreement to bolster the country’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 at a ceremony held at ERD in the capital.
“The Second Strengthening Social Resilience Program aims to accelerate reforms to expand coverage, improve efficiency in social protection, enhance financial inclusion for disadvantaged populations, and address diverse protection needs,” said Edimon Ginting.
Building on the initial program completed in June 2022, this second phase will improve the policy, regulatory, and institutional framework for social protection in Bangladesh.
The ADB program supports the government’s Action Plan Phase II of the National Social Security Strategy (2021-2026) to enhance the social protection system’s capacity to prevent and mitigate vulnerabilities.
Key objectives include improving management efficiency of social protection programs, enhancing protection for vulnerable groups, and expanding the scope of social protection through contributory schemes. This initiative aims to reduce vulnerability, exclusion, and poverty risks.
The program introduces a verification scheme for beneficiaries of cash-based social protection programs to reduce leakages and consolidates two protection programs for people with disabilities to enhance efficiency and effectiveness.
Climate adaptation measures will be integrated into the social protection framework to bolster resilience against climate-induced vulnerabilities. This includes identifying individuals most at risk from climate change-induced disasters to provide appropriate assistance.
ADB’s support will also enhance protection for vulnerable women and transgender individuals by increasing beneficiaries under the widow allowance program and expanding livelihood support for transgender people.
Additionally, Bangladesh Bank is doubling funding for the Small Enterprise Refinancing Scheme for Women Entrepreneurs, improving financial service access for women-owned small businesses.
The program aims to strengthen governance 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 insurance schemes.
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 to support implementation, technical and policy analyses, and capacity building for relevant government agencies.
