Improved Management Information Systems for expansion of social protection programmes (in context of COVID-19 pandemic)

In Bangladesh there are more than 100 social security and social assistance programmes being implemented by more than 32 ministries. Most of the programmes in Bangladesh mostly are cash and food transfer programmes. The existing measures are criticized because of targeting, duplication and adequacy issues, which has even become more evident when efforts were made to utilise the programmes for mitigating the economic consequences of the Covid-19 pandemic. In 2015, the cabinet approved a “National Social Security Strategy” (NSSS) with the aim to bring about efficiency and effectiveness in the field of social security. The NSSS specifically highlights the journey of Bangladesh to a middle-income country and the need for programmes to protect the working population of Bangladesh. With the aim to support the increasing number of formalized works, a National Social Insurance Scheme (NSIS) is to be created. The NSIS will be exploring possibilities of providing unemployment, sickness, maternity and accidental insurance. Although some progress has been made in the cash transfer programmes, there has not been any movement on the developing the social insurance portfolio of the country. The noticeable scheme that are in development are: a) Sastho Suraksha Karmasuchi (SSK): A health coverage scheme for the households below the poverty line threshold developed by the Ministry of Health and Family Welfare. The scheme is currently operating in 03 district of Bangladesh with little signs of scale up. b) Unemployment Insurance: NSSS has entrusted the Ministry of Labour and Employment (MoLE) Bangladesh in developing the unemployment insurance scheme for Bangladesh and thus far only a feasibility study has been conducted. c) Employment Injury Insurance: This too under the MoLE has been caught in the discussion conundrum. But with the onset of the COVID 19 pandemic, the global economy is seeing depression similar to that of the 1930s. As a result of this, economic units in Bangladesh, which are seeing record drop in revenue, are having difficulty in paying employee wages. The export-oriented industry, which operates on revolving cash basis, has been hit hard because of loss of orders but also the brands and buyers cancelling orders or asking heavy discount on the products. With little or no cash coming into the business the entrepreneurs found it challenging to pay the wages of the employee plus festival bonuses. Although the Government had announced stimulus packages for the entrepreneurs, these proved to have been unattractive measures and provided little respite for the entrepreneurs. On the other side of the story, many of the employees were left with no jobs, lengthy layoffs and uncertain futures. Observing the fallout from the pandemic, many of eminent citizens academia alike have been calling for social protection measures especially contingencies covered by social insurances as a solution. Shahrat Farsim Chowdhury, lecturer, Department of Economics, East Delta University wrote in the Financial express on the 12 June 2020 “However, this is not any conventional crisis that will heal from the exact prescriptions from the previous crisis, but the government must enforce unemployment insurance for most of the people. They should find out ways to work with entrepreneurs and industries to protect the job of millions vulnerable and unprotected workers. Setting or expanding systems to enrol workers into unemployment insurance schemes with varying levels of contributions. Job losses are inevitable and indeed somewhat necessary to recover the economy. Unemployment will create an unexpected income shock. Unfortunately, private insurance for unemployment is rare in fear of the adverse selection problem. Consumption reduction arising out of unemployment not only reduces the welfare of the individual but also reduces the aggregate demand of the economy. Therefore, the government could provide short-term income support on a large scale to secure the

Project symbol

BGD/20/04/DEU

Admin unit

SOCPRO
ENTERPRISES

Start date

01/12/2020

End date

31/12/2021

Total allocation

298682

Total expenditure

Status

Closed

193055

Development Partners

Germany, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Country/Countries

Bangladesh

Outcomes

Outcome 8: Comprehensive and sustainable social protection for all