The Asian Development Bank (ADB) and the government of Bangladesh on Tuesday signed an agreement for a $250 million policy-based loan to further improve the social protection system in Bangladesh for supporting the vulnerable population against socio-economic challenges.
The Ministry of Finance’s Economic Relations Division Secretary Fatima Yasmin and ADB Country Director for Bangladesh Edimon Ginting virtually inked the agreement on behalf of their respective sides, a press release said.
The program aims to accelerate reforms in increasing the coverage and efficiency of social protection, improving the financial inclusion of disadvantaged people, and strengthening the response to diversified protection needs.
The loan is the second subprogram of the Strengthening Social Resilience Program (SSRP) approved in 2021, which helped implement institutional and policy reforms that strengthened the inclusiveness and responsiveness of social protection in Bangladesh.
Edimon Ginting said, “ADB remains committed to help Bangladesh accelerate the socio-economic recovery and assist the government to promote an integrated social protection program.
“The integrated social protection program will improve social safety net management; deepen financial inclusion; address needs based on demographic, geographical, age, gender, and other diversities; and widen the coverage and efficiency of social protection.”
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The reforms supported under the program will help improve efficiency by digitalisation and integration of systems as well as harmonisation of the government’s social protection programs, read the release.
Greater financial inclusion of the disadvantaged will be broadened by improving the usability of mobile financial services through the quick response code payment services, particularly in rural areas. The program also supports a contributory protection scheme by focusing on an employment injury scheme.
This contributory protection scheme will offer protection to a wider population and help augment government financing for social protection.
The reforms will help Bangladesh bring at least 80 per cent of social protection programs with cash-based benefits under a standardised and integrated management system with connection to the G2P platform by June 2023.
At least 60 per cent of cash-based social protection benefits will be delivered to disadvantaged women, and social protection program fragmentation will be reduced in three ministries.
The number of active mobile financial services accounts will be increased annually by 5 per cent. At least 50 mobile clinics will start operating in 10 city corporations. At least one social insurance scheme (contribution-based protection scheme) will be initiated on a pilot basis by 2023.
As of 2021, ADB’s cumulative assistance to Bangladesh since 1973 amounted to about $48 billion through loans, grants, and cofinancing. ADB’s active portfolio in the country stands at around $11 billion with 50 projects as of April 2022.
