Bangladesh gets $300m from World Bank to build resilience against Covid-19
Unemployed or under-employed youth and returnee migrants will be trained to increase their employability
The World Bank has given Bangladesh $300 million to boost the rural economy and build resilience against the pandemic.
The Bangladesh government and the World Bank signed an agreement to help about 750,000 poor and extreme poor in 20 districts come out of poverty and gain the ability to absorb Covid and any future shocks.
Through income-generating activities, entrepreneurial support, as well as skills development, the Resilience, Entrepreneurship and Livelihood Improvement (RELI) Project will boost the rural economy in about 3,200 villages, said a press release on Tuesday.
Built on the success of the first and second Social Investment Program Projects and on the Nuton Jibon Livelihood Improvement Project, the RELI project will mobilize, develop, and strengthen community organisations, finance their plans and provide cash and loans for income-generating activities.
"The Covid-19 pandemic has negatively impacted the poor in rural areas, particularly women, by limiting their income and economic opportunities," said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.
Ninety percent of the beneficiaries will be women. The project will also help build health and nutritional awareness.
"When a woman earns more, her family and the community are better off," said Mercy Tembon.
Further, the project will support rural entrepreneurs and producer groups with market linkages, including e-commerce platforms, partnerships with local governments, and promotional activities.
It will also provide skills development training to the unemployed or under-employed youth and returnee migrants to increase their employability.
"The project is aligned with the 8th Five-Year Plan and the Bangladesh Delta Plan 2100," said Fatima Yasmin, secretary, Economic Relations Division, of Bangladesh.
"Through community mobilization and climate-smart agriculture practices, the project will help rural women withstand any future shocks like the pandemic without falling back to poverty."
The project will provide training to almost 490,000 people on climate risk, adaptation, and resilience building. It will also build 5,120 climate-resilient small-scale infrastructures.
The agreement was signed by Fatima Yasmin and Mercy Tembon on Monday.
The credit from the WB's International Development Association has a 30-year term, including a five-year grace period.
The World Bank is among the first development partners to support Bangladesh following its Independence.
Bangladesh currently has one of the largest IDA programs totaling over $14 billion. Since Independence, the World Bank has committed more than $35 billion in grants, interest-free, and concessional credits to the country.