WB to bankroll poor urban youths, migrants

The World Bank has approved $200 million to help Bangladesh provide support and services to the low-income urban youths impacted by the Covid-19 pandemic and the involuntary returnee migrants to improve earning opportunities and resiliency, says a press release.

The Recovery and Advancement of Informal Sector Employment (RAISE) project will help to enhance the employability and productivity of about 175,000 poor urban youths and low-income micro-entrepreneurs by helping them access services such as life-skills training, apprenticeship programs, counselling, microfinance and self-employment support. The project will assist about 200,000 eligible migrants who had been forced to return since January 2020 by sustainably reintegrating into the domestic labour market or prepare them for re-migration. The project will provide cash grants, counselling, and referrals to relevant services based on their needs and aspirations.

“International migration and urban informal sector have played a central role in Bangladesh’s remarkable success in reducing poverty over the years. However, both sectors were hit hard by the Covid-19 pandemic,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan. “The project will support both groups of workers to overcome structural barriers to employability and facilitate resilient post-pandemic growth.”

For the low-income urban youth and micro-entrepreneurs whose livelihoods have been impacted by Covid-19, the project will support an economic inclusion program that will be tailored to fit the individual needs of eligible beneficiaries. The range of services offered include: life-skills and socio-emotional counselling; on-the-job learning through apprenticeship programs; business management training and microfinance for self-employment and informal micro-enterprises.

To provide these services, the project will set up welfare centres in 32 districts. The project will also support upgrade and integration of information systems that will streamline social protection service delivery for aspiring, current and returning migrants.

“While the project will focus on the immediate needs of migrants who have returned due to Covid-19 impacts, through system development and capacity building, it will also benefit outgoing and voluntarily returning migrants, their families and communities, over the longer term,” said Syud Amer Ahmed, World Bank Senior Economist and Team Leader for the project.
The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing and has a 30-year term including a five-year grace period. Bangladesh currently has the largest ongoing IDA programme of over $13.5 billion.

The World Bank was among the first development partners to support Bangladesh and has committed more than $33.5 billion in grants, interest-free and concessional credits to the country since its independence, the media release added.