The Asian Development Bank (ADB) approved a USD 250 million loan on Friday to assist the government of Bangladesh in operationalising and institutionalising critical reforms aimed at enhancing the efficiency, coverage, and effectiveness of the nation’s social protection system.
This funding, provided under Subprogram 2 of the “2nd Strengthening Social Resilience Programme,” focuses on bolstering protective and preventive measures to mitigate vulnerability, exclusion, and poverty risks.
The initiative is designed to improve the management of the social protection system, broaden its scope, and offer better protection for vulnerable populations.
Key reforms include the development of contributory social protection schemes, which are anticipated to help alleviate longer-term fiscal pressures.
Specific targets under the programme include expanding the widow allowance to support at least 250,000 additional vulnerable women.
Furthermore, adaptive social protection will be enhanced through climate-adaptive measures integrated into a core workfare programme.
In a push for financial inclusion, the programme aims to increase access to financial services for women entrepreneurs by at least 15% through a targeted refinancing scheme by the Bangladesh Bank.
These initiatives are expected to yield significant micro-level outcomes, such as improved productivity, increased female labour force participation, and accelerated poverty reduction.
These factors are projected to create positive macroeconomic effects and contribute to inclusive economic growth.
ADB Country Director for Bangladesh, Hoe Yun Jeong, noted that the programme represents an important milestone in Bangladesh’s transition towards a more modern, inclusive, and resilient social protection system.
He stated that by expanding coverage for vulnerable groups—particularly women—and introducing contributory protection mechanisms, the reforms 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 added.
With Inputs from UNB
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