CPD proposes Tk 300b cash transfer for 19m households

The Centre for Policy Dialogue (CPD) proposes Tk 300 billion direct cash transfer for 19 million households as financial support. This will be about one per cent of the gross domestic product (GDP).

 This can be done by providing with Tk 8,000 per month for two months to each household-- close to the lower poverty line-- for a family of four members, considering current prices of commodities.

 The vulnerable groups and marginalised communities are relatively more exposed to the threat of COVID-19 pandemic. Many of them do not get any social protection benefits. Daily wage earners and workers of informal sectors are critically suffering from the economic slowdown. In this context it is necessary to bring in a comprehensive stimulus package, particularly for vulnerable households.

CPD shared this proposal through a virtual media briefing on “COVID-19: CPD’s initial assessment of public policy interventions and proposals for food and income security of the marginalised” on Monday, says a press release.

This media briefing was organised under CPD’s flagship programme Independent Review of Bangladesh’s Development (IRBD).

Towfiqul Islam Khan, senior research fellow of CPD, made the keynote presentation at the media briefing on behalf of the IRBD research team.

Mr Khan noted in his presentation that lack of good governance has been undermining government's various initiatives to support the citizens during this national crisis.

An in-built technology induced mechanism can be put in place to implement the proposed cash transfer programme. It will help the government to reduce leakages and avoid selection bias and control corruption, suggested Mr Khan.

The CPD paper mentioned that the lists of people in need which are being prepared by the local administration and local government machineries will be helpful. This proposed programme should have an in-built mechanism where the vulnerable citizens can apply for inclusion. Hot-line numbers need to be designated where citizens can call and apply for inclusion in the programme.

 The ‘local rapid action committee’ will need to be set up involving local administration, local government representatives, local police and appropriate number of NGO representatives and volunteer organisations (including community-based organisations) working in that particular region who will approve these applications within 24 hours. Besides, for a transparent implementation of the incentive programmes the list of beneficiaries should be disclosed though government websites which can be facilitated by Access to Information (a2i), the CPD paper emphasised.

The event began with introductory remarks by Dr Fahmida Khatun, executive director of CPD. She noted that ensuring transparency is a must for effectiveness of the incentive programmes announced so far. She urged the government to come up with concrete allocation for the vulnerable groups so that they can survive during the COVID-19 crisis.

Professor Mustafizur Rahman, distinguished fellow of CPD, and its Research Director Dr Khondaker Golam Moazzem were also present at the event and shared their views through responding to questions from the media.