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Bangladesh
>> Regional Overview >> Bangladesh Overview
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 1997
Last updated: 52
Introduction
Bangladesh is one of the poorest, most densely populated and disaster-prone countries on earth. Yet the country enjoys natural advantages for agriculture due to its delta location, and attracts industries such as garment assembly, which draw upon the country's large labor force. Bangladesh is also blessed with a substantial natural gas reserve. Bangladesh is an important country for U.S. assistance, not only because of its size, prospects and need, but also because of its potential as a leader of the moderate Islamic world, and as a positive force for regional peace, stability and growth in South Asia.
U.S. foreign policy objectives in Bangladesh encourage stable democratic governance, respect for human rights, and market-oriented economic growth. USAID's program supports these foreign policy objectives and also serves U.S. global interests in stabilizing world population, eliminating hunger and food insecurity, protecting human health, promoting environmentally responsible growth and providing humanitarian assistance in times of disaster.
Development Challenge
USAID has been a major donor in Bangladesh since 1971, and has contributed to the country's outstanding progress in the population, health, and agriculture sectors, as well as in rural electrification, food security and disaster relief and planning. For example, contraceptive prevalence rose from 8% in 1974 to 54% in 2000, and the total fertility rate has dropped from over 6.3 births per woman to 3.3. Child mortality has decreased from 52.4 per 1000 in 1989 to 29.7 per 1000 in 1999. The proportion of Bangladesh's population with incomes below the poverty line has declined by about 28% since 1983. Through better planning and adoption of early warning systems, the number of deaths from major disasters has been dramatically reduced.
Despite such accomplishments, Bangladesh continues to face enormous challenges in assuring that food, energy, shelter, and other essential goods and services are available to a population that is expected to surpass 200 million by the year 2026. Approximately 40% of the Bangladeshi population remains in poverty, with over half of all children affected by some form of malnutrition.
Economic growth in Bangladesh rebounded to approximately 5.5% in real terms in 2000 following a downturn due to massive floods in 1998. Even with sustained strong economic growth, the country still faces a lengthy effort to lift a significant portion of its population out of poverty. Continued donor support is vital to sustain its safety net and many of its current social sector programs. Even the recent gains in economic growth and employment are vulnerable due to serious policy, infrastructure, and institutional constraints. Efforts to reduce state control of key industries, improve infrastructure, liberalize trade policy and strengthen the financial system would enhance Bangladesh's prospects for accelerated growth. Although the country returned to democracy in 1991, Parliament is barely working and there is no dialogue between the major political parties. The political situation will be increasingly fragile during 2001 due to the upcoming parliamentary elections. The challenge for the new leadership will be to raise the quality of governance, address corruption, and strengthen rule of law, in particular as relates to the legal rights of citizens, particularly women and the poor.
Other Donors
In 1999, the donor community provided new funding of about $1.9 billion for development activities in Bangladesh, of which the United States contributed just over 4%. Approximately 75% of all donor assistance contributed to priorities in the areas of roads and transport, energy, agriculture and rural development, health and family welfare, water resources, education and religious activities. Most major donors provide funding to Bangladesh. The five largest donors are the World Bank, the Asian Development Bank (ADB), Japan, the European Union, and USAID.
FY 2002 Program
USAID's strategic plan for Bangladesh covers the period FY 2000 through FY 2005. There are six strategic objectives, whose prospects for the budget request year are presented below. (One is closing.)
USAID will maintain its leadership role in family planning and health/child survival activities aimed at meeting the objective of "Fertility Reduced and Family Health Improved" (388-001). USAID will continue to emphasize polio eradication, as well as HIV/AIDS prevention for high-risk groups to contain its still limited incidence in Bangladesh. The Government of Bangladesh (GOB) provides most of the funding for the national family planning and health program, with an annual budget of approximately $400 million. The GOB supports the delivery of family planning and health services through its rural and urban infrastructure of facilities and personnel.
USAID support will continue for economic growth activities. The newly-created objective "Growth of Agribusiness and Small Business" (388-005) will help to improve the enabling environment for agribusiness, aquaculture, small and medium enterprises, and micro-finance; and assist individual entrepreneurs and businesses to improve their products, services, and market access. Activities under "Improve Management of Open Water and Tropical Forest Resources" (388-06) to preserve open water and tropical forest resources will upgrade floodplain and forest management practices at the community level. To achieve its objective of "Improved Performance of the Energy Sector" (388-007), USAID will continue its long-standing support for Bangladesh's rural power program while implementing new activities to foster deregulation of the power sector and development of the nascent natural gas sector. The USAID regional program South Asia Regional Initiative/Energy plays a complementary role for regional cooperation, training, and policy in the energy sector.
The P.L. 480 regular Title II program assists Bangladesh's poorest families. Households in disaster-prone areas will also continue to benefit under the new objective, "Improved Food Security for the Most Vulnerable Groups" (388-008). Activities under the objective ensure food availability through the government's safety net and promote policy changes to minimize the public sector's role in grain import. The imported food commodities support a Food for Education program to encourage families to keep primary school-age children in school. Proceeds from the sale of food finance the Cooperative for Assistance and Relief Everywhere (CARE) and World Vision programs to upgrade community infrastructure and enhance disaster preparedness. During major natural disasters, humanitarian assistance is a major component of USAID assistance to Bangladesh, through the P.L. 480 Emergency Title II program and USAID's Office of Foreign Disaster Assistance (OFDA). In the fall of 2000, the U.S. Embassy declared a disaster when localized severe flooding displaced households and disrupted agriculture and transport in southwest Bangladesh. USAID provided $1 million of relief commodities and $625,000 of food through the P.L. 480 program to assist 100,000 flood-affected families.
USAID's earlier democracy/governance (DG) objective, and its successor, "Strengthened Institutions of Democracy" (388-009), seek to strengthen civil society, local government, parliament, and human rights. A recent DG initiative will continue in FY 2002 to support Transparency International-Bangladesh's efforts to raise awareness of corruption issues in the public and private sectors. In this election year, USAID activities to help enhance the responsiveness of Parliament will include pre-election surveys, technical assessments, planning and procedures for domestic monitoring, and arrangements for international election observers. In 2001, USAID will initiate new activities to promote civil society advocacy of human rights and to support development of a national constituency for local government. Bilateral activities in the democracy and governance area are complemented by the USAID regional South Asia Regional Initiative/Equity and the Department of State's South Asia Democracy program.
In addition to these bilateral and regional activities, USAID's Global Bureau has an activity to increase the use by women and men of voluntary practices that contribute to reduced fertility; and the Bureau for Humanitarian Response has an activity that demonstrates U.S. educational and medical technologies and practices.
Activity Data Sheets
- 388-001 Fertility Reduced and Family Health Improved
- 388-003 Improved Representation of Interests of Women and the Rural Poor
- 388-005 Growth of Agribusiness and Small Business
- 388-006 Improved Management of Open Water and Tropical Forest Resources
- 388-007 Improved Performance of the Energy Sector
- 388-008 Improved Food Security for Vulnerable Groups
- 388-009 Strengthened Institutions of Democracy
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
