ADB Boosts Bangladesh's Social Protection System with $250 Million Loan

ADB Principal Social Sector Specialist, Hiroko Uchimura-Shiroishi, emphasized that the program aligns with Bangladesh's National Social Security Strategy Action Plan Phase II (2021–2026).

The Asian Development Bank (ADB) has approved a $250 million policy-based loan to enhance Bangladesh's social protection system. This initiative, building upon the success of the first Strengthening Social Resilience Program completed in June 2022, aims to bolster the policy, regulatory, and institutional framework for social protection in the country.

ADB Principal Social Sector Specialist, Hiroko Uchimura-Shiroishi, emphasized that the program aligns with Bangladesh's National Social Security Strategy Action Plan Phase II (2021–2026). It seeks to fortify the protective and preventive capacity of the social protection system by improving program management efficiency, enhancing protection for vulnerable groups, and expanding the scope of social protection through contributory schemes.

Key features of the program include the implementation of a beneficiary survival verification scheme for cash-based social protection programs to minimize leakages, as well as the consolidation of cash-based protection initiatives for people with disabilities to enhance effectiveness. Additionally, climate adaptive measures will be integrated into social protection to bolster resilience against climate-related disasters.

The ADB's support extends to vulnerable groups, particularly women and transgender individuals, by increasing the beneficiaries under the widow allowance program and expanding coverage of the livelihood support program for transgender people. Bangladesh Bank will double its funding for the Small Enterprise Refinancing Scheme for Women Entrepreneurs to enhance access to financial services for women small business operators.

Furthermore, the program aims to strengthen governance mechanisms in the employment injury scheme pilot, focusing on the ready-made garments sector. It also advocates for the establishment of a tripartite committee comprising workers' and employers' associations, along with the government, to oversee social protection for workers under the Ministry of Labour and Employment.

To support program implementation and capacity building, ADB will provide a $1 million grant from its Technical Assistance Special Fund (TASF 7) and another $1 million grant from the ADB-administered Community Resilience Partnership Program Trust Fund under the Community Resilience Financing Partnership Facility. These funds will facilitate technical and policy analyses and capacity building initiatives for relevant government agencies.