Staff Reporter :
The government has taken an initiative to modernize the system of transferring cash incentives to beneficiaries of social safety net programmes with the World Bank (WB) financial assistance.
The WB will provide U$$ 300 million to materilaise the modernization.
An agreement to this effect was inked at Economic Relations (ERD) Division between the government and the WB on Sunday. ERD Additional Secretary Mahmuda Begum and World Bank Country Director Qimiao Fan signed the agreement on their respective sides.
“The government is committed to develop a digitized modern social protection service delivery system,” said Mahmuda Begum at the signing ceremony.
“This project is a critical step towards this vision and aligned with the National Social Security Strategy’ 2015,” she said.
Apparently, this initiative came a long after allegations that the cash incentives for the beneficiaries of social safety net programmes does not reach target people and often misappropriated through disbursement channels.
The government currently provides cash incentives to 6.5 million poor across the country, officially which is a major cash transfer programme.
The Cash Transfer Modernization Project will help the Department of Social Services (DSS) to modernize the country’s four major social protection programs. These are (i) Old Age Allowance (ii) Allowances for the Widow (iii) Deserted and Destitute Women (iv) Allowance for the Financially Insolvent Disabled and (v) Stipends for Disabled Students.
The aim of this modernization is to improve transparency and efficiency of cash transfer programs for the poorest and vulnerable, including the elderly, widows, and people with disabilities.
“Automated and transparent social protection service delivery system is critical to help reduce administrative costs and errors in identifying the most vulnerable people with greater accuracy and transferring cash in a timely manner,” said Qimiao Fan.
He said the WB is helping the government building common digital platforms to better administration of safety net programs.
In fiscal year 2017-18, Bangladesh spent about $5.8 billion on social protection or about two percent of its Gross Domestic Product.
A WB statement said that the DSS has already started digitizing beneficiary records of its cash transfer programs and the project will help further strengthen case management and payment processes.
The credit is provided by the International Development Association, the World Bank’s concessional lending arm, which provides grants or zero-interest loans. The credit has a 38-year term, including a six-year grace period, and a service charge of 0.75 percent.
The World Bank was among the first development partners to support Bangladesh following its independence. The World Bank has since committed more than $29 billion in grants and interest-free credits to the country. Bangladesh currently has the largest IDA -program totaling $11.3 billion.
The government has taken an initiative to modernize the system of transferring cash incentives to beneficiaries of social safety net programmes with the World Bank (WB) financial assistance.
The WB will provide U$$ 300 million to materilaise the modernization.
An agreement to this effect was inked at Economic Relations (ERD) Division between the government and the WB on Sunday. ERD Additional Secretary Mahmuda Begum and World Bank Country Director Qimiao Fan signed the agreement on their respective sides.
“The government is committed to develop a digitized modern social protection service delivery system,” said Mahmuda Begum at the signing ceremony.
“This project is a critical step towards this vision and aligned with the National Social Security Strategy’ 2015,” she said.
Apparently, this initiative came a long after allegations that the cash incentives for the beneficiaries of social safety net programmes does not reach target people and often misappropriated through disbursement channels.
The government currently provides cash incentives to 6.5 million poor across the country, officially which is a major cash transfer programme.
The Cash Transfer Modernization Project will help the Department of Social Services (DSS) to modernize the country’s four major social protection programs. These are (i) Old Age Allowance (ii) Allowances for the Widow (iii) Deserted and Destitute Women (iv) Allowance for the Financially Insolvent Disabled and (v) Stipends for Disabled Students.
The aim of this modernization is to improve transparency and efficiency of cash transfer programs for the poorest and vulnerable, including the elderly, widows, and people with disabilities.
“Automated and transparent social protection service delivery system is critical to help reduce administrative costs and errors in identifying the most vulnerable people with greater accuracy and transferring cash in a timely manner,” said Qimiao Fan.
He said the WB is helping the government building common digital platforms to better administration of safety net programs.
In fiscal year 2017-18, Bangladesh spent about $5.8 billion on social protection or about two percent of its Gross Domestic Product.
A WB statement said that the DSS has already started digitizing beneficiary records of its cash transfer programs and the project will help further strengthen case management and payment processes.
The credit is provided by the International Development Association, the World Bank’s concessional lending arm, which provides grants or zero-interest loans. The credit has a 38-year term, including a six-year grace period, and a service charge of 0.75 percent.
The World Bank was among the first development partners to support Bangladesh following its independence. The World Bank has since committed more than $29 billion in grants and interest-free credits to the country. Bangladesh currently has the largest IDA -program totaling $11.3 billion.
