While the World Bank and the IMF have expressed concerns, no sector of the economy is currently demonstrating encouraging progress. Both domestic and foreign investment activities remain slow. According to a report by Prothom Alo, although 78 thousand jobs were created in the ready-made garments sector over the past 15 months, nearly 100,000 people lost their jobs during the same period.
Over 86 per cent of employment in the country is within the informal sector, where there is no guarantee of a minimum wage. In such circumstances, poverty reduction becomes increasingly difficult.
Another significant factor contributing to the economic slowdown is political uncertainty. It is our view that if the ambiguity surrounding the electoral process is resolved, business confidence may be restored, thereby encouraging investment. This, in turn, could lead to greater employment opportunities. Therefore, to break the cycle of poverty, what is urgently required are strong and innovative policy programmes.