TDS Desk:

The program focuses on improving social protection system management, expanding its coverage and scope, and enhancing protection for vulnerable populations

The Asian Development Bank (ADB) on Friday approved a $250 million loan to support the government of Bangladesh in operationalizing and institutionalizing critical reforms to improve the efficiency, coverage, and effectiveness of the country’s social protection system.

The subprogram 2 of the “2nd Strengthening Social Resilience Program” aims to strengthen protective and preventive social protection measures to reduce vulnerability, exclusion, and poverty risks.

The program focuses on improving social protection system management, expanding its coverage and scope, and enhancing protection for vulnerable populations.

Reforms under the program include the development of contributory social protection schemes, which is expected to help ease longer-term fiscal pressure.

The widow allowance program will also extend support to at least 250,000 additional vulnerable women, while adaptive social protection will be strengthened through initiative climate adaptive measures under a core workfare program.

In addition, access to financial services for women entrepreneurs will increase by at least 15% through the Bangladesh Bank’s targeted refinancing scheme.

The initiatives under the program are expected to generate significant micro-level outcomes, including enhanced productivity and efficiency, increased female labor force participation, and greater poverty reduction, leading to positive macroeconomic effects and contributing to inclusive economic growth.

ADB Country Director for Bangladesh Hoe Yun Jeong said the program represents an important milestone in Bangladesh’s transition towards a more modern, inclusive, and resilient social protection system.

He said by expanding coverage for vulnerable groups – particularly women – and introducing contributory protection mechanisms, the reforms, introduced by this program, will help reduce poverty risks while supporting long-term economic stability.

“ADB is proud to partner with Bangladesh in building a system that is more efficient, adaptive, and better equipped to promote inclusive growth and shared prosperity,” Jeong said.