95pc people suffer income losses: BRAC survey

The lockdown and social distancing measures to contain the spread of the COVID-19 pandemic forced 95 per cent people across the country to suffer a loss in their income, according to a survey.

The survey, conducted by BRAC, also stated approximately 51 pc of the respondents said their household income was reduced to zero after the public holiday was declared in late March.

Around 62pc of low income wage earners saw their work  opportunities reduced. The pandemic left around 28 per cent of the respondents economically inactive.

A total of 2,317 respondents (68pc from rural areas and 32pc from urban) of different socio-economic backgrounds from 64 districts joined the survey conducted from May 9 to 13.  

Of them, 37pc were men and 63pc women. The survey analysis shows that daily wage earners have gradually started to regain their livelihood. However, many of them and their families will still need support for at least three more months to recover from the hardship caused by the pandemic.

The findings of the perception survey titled ‘COVID-19 awareness and economic impact’ were revealed in a digital press conference on Tuesday.

Abul Kalam Azad, former principal coordinator (SDG Affairs) of Prime Minister’s Office, Sudipto Mukherjee, resident representative of UNDP in Bangladesh, Mizanur Rahman Khan, joint editor of Prothom Alo, Shameran Abed, senior director and Nobonita Chowdhury, director of  BRAC joined the event as panellists.

KAM Morshed, senior director of BRAC moderated the conference.

Speaking at the conference, Abul Kalam Azad lauded the BRAC’s initiative and said all microfinance institutions (MFIs) and NGOs need to follow its footsteps in returning savings to low-income people.

“The government is trying to finance the labour-intensive sectors so that it can help create more jobs. Skills development training for migrant workers can also help them get back their jobs in the current crisis,” he said.

BRAC’s Senior Director Shameran Abed accredited the role of MFIs in reaching cash assistance to vulnerable people and enterprises.

“Getting money to people through banks is challenging since banks lack capacity. A new mechanism is needed and the mobile banking system is already delivering. Once identified, people are getting easy access to finance through the system, he said.

BRAC, with the help of donors and partners, has provided emergency cash support to 360,000 families. Under the microfinance programme, savings were returned to 500,000 members to support their economic recovery process. 

Sudipto Mukherjee stressed the concerted efforts to avert the crisis posed by the pandemic.

“We cannot afford to leave anyone behind. That is more important than being concerned about duplication. Universal protection is required for a welfare state like Bangladesh,” he said.

Suggestions to tackle the crisis includes strict introduction of a ‘pro-poor’ lens to review and implement the recovery and rehabilitation plans as well as the provision of stimulus declared by the government.

Speakers at the event emphasised transparency in delivery of assistance and stimulus packages to different private sectors.

They also urged the authorities to engage NGOs and community-based organisations to monitor the listing of beneficiaries and stressed cash transfer through mobile banking for distribution.

Preparing a database of beneficiaries to avoid duplication and introducing a mechanism to quickly handle complaints were also recommended in the programme.