Saturday, December 19, 2009

Financial crisis on vulnerable households in Bangladesh

Empirical evidence found support about effects of the financial crisis on vulnerable households in Bangladesh and pointed out as a complex breakdown for globally transmitted shocks. Indeed, the food insecurity emerges as a result of this crisis and the consequent adverse impact on the economy.

Classified two fold effects on both macro and household level explains the slowdown of agricultural export, volume of trade, migration, unemployment, lowering job opportunities, upward trend of food prices, which cuts the per capita food expenditure, and a cumulative effect on households earnings that leads to child labor.

Ongoing responses and recommendations on the macroeconomic and public sectors subsidized vulnerable groups including bank and non-blank financial institutions, enhancing social protection programme (e.g. food for work, cash for work), acceleration of ADP implementations. Suggested follow up assessment on the macroeconomics and sectoral performances strengthening the present system and linkages between macro and micro levels.

Tuesday, December 8, 2009

Ongoing Impact of Global Economic Meltdown on Food Insecurity

It should be explored the linkage between the numbers of hungry people and ongoing global economic meltdown; while, the number of food insecured people in the world increased sharply.

As a result of the global economic crisis, developing countries like Bangladesh are facing declining flow of inward remittances, export earnings, foreign direct investment and foreign aid, leading to loss of employment and income, which are compounded by international food prices. And hence, marginalized and poor households have been enforced to rely on eat less proffered food and to take fewer meals and, cut back on health and education expenditures, and sell their agriculture and livestock assets.

Analysis of FAO’s RIGA database of household survey shows that the rural landless who rely on daily basis wage labor, were most affected by the low food production and high prices; one-fifth of them cutting expenditures on health and one-third were becoming further indebted to institutional and non-institutional credit institutions.

The ongoing response actions to mitigate the impact of economic crisis on food by accelerating agricultural credit, investment and social safety nets programmes remains the key devices to fight against to continuing shocks although the food and economic crises, food insecurity in terms of hunger is on the rise.
Image may be subject to copyright.