World Bank Approves $200M to Strengthen Social Resilience in Bangladesh

The SSPIRIT project is designed to support people throughout different phases of their lives, including youth, people with disabilities, injured persons, and women in climate-vulnerable regions.

In a significant step towards enhancing social resilience and reducing poverty in Bangladesh, the World Bank’s Board of Executive Directors has approved $200 million in financing to expand and modernize the country’s social protection system. The newly approved initiative—titled Strengthening Social Protection for Improved Resilience, Inclusion and Targeting (SSPIRIT)—is expected to directly benefit more than 3 million of Bangladesh’s poorest and most vulnerable citizens, with a strong focus on inclusion, efficiency, and long-term economic empowerment.

This transformative program is being implemented in partnership with Bangladesh’s Ministry of Social Welfare and the Ministry of Finance. It marks a crucial evolution in the country’s approach to social assistance, with the introduction of cutting-edge digital platforms, dynamic databases, and a new model that integrates livelihood support services with traditional cash transfers.

A New Era in Social Protection

Despite notable progress in social development, Bangladesh still faces critical gaps in its safety net coverage. While the country allocates around 3 percent of its Gross Domestic Product (GDP) to social protection initiatives, almost half of the poor population remains excluded from any form of government assistance.

Gayle Martin, the World Bank’s Interim Country Director for Bangladesh, emphasized the importance of modernization in her remarks:

“As Bangladesh continues its journey toward upper-middle-income status, the country must ensure its social protection system evolves to meet the changing needs of its population. The SSPIRIT project represents a critical step in making social safety nets more effective, inclusive, and responsive to shocks—whether economic, climate-related, or health-related.”

The SSPIRIT project is designed to support people throughout different phases of their lives, including youth, people with disabilities, injured persons, and women in climate-vulnerable regions. At least 50 percent of the project’s beneficiaries will be women, reinforcing gender equity as a key pillar of the program.

Dynamic Social Registry: A Data-Driven Approach

One of the cornerstone innovations of the SSPIRIT initiative is the establishment of a Dynamic Social Registry—a digital platform that aims to centralize, update, and coordinate data across various social protection programs. The registry will serve as a real-time, evidence-based system for identifying and enrolling beneficiaries, ensuring that support is extended to those most in need, as well as allowing flexibility to include new households during crises.

This registry will link existing beneficiary databases and identify individuals eligible for additional support services such as employment assistance or vocational training. It will also help determine which households are ready to “graduate” from cash support into self-reliant livelihood programs.

Empowering Pathways Out of Poverty

Shrayana Bhattacharya, Senior Economist at the World Bank and the SSPIRIT Task Team Leader, underscored the importance of combining financial aid with developmental services:

“We’re moving beyond temporary relief. By combining cash assistance with tailored livelihood packages—including skills development, mentorship, and financial incentives—we are creating sustainable, dignified pathways out of poverty for millions of families.”

Through this approach, the project aims to shift the focus from short-term aid to long-term economic inclusion. Households will receive customized support depending on their unique needs and challenges, allowing them to transition from dependency on state aid to self-reliance and resilience.

Lower Costs, Greater Efficiency

In addition to empowering the poor, the SSPIRIT project will also make the social protection system more cost-effective and transparent. By digitizing many aspects of service delivery, the initiative will significantly reduce administrative and transaction costs for the government, allowing funds to be redirected to beneficiaries.

The project also includes strengthening core safety net programs such as the Old Age Allowance and Widow Allowance, which are implemented by the Department of Social Services. Modernized delivery systems will improve transparency and help prevent duplication and leakage of funds.

Building on Decades of Partnership

The SSPIRIT project builds on a rich legacy of World Bank-supported initiatives in Bangladesh’s social protection landscape. It integrates insights and lessons from successful programs such as the Cash Transfer Modernization Project, the Recovery and Advancement of Informal Sector Employment (RAISE) Project, and the Safety Nets Systems for the Poorest Project.

Since its support for Bangladesh’s reconstruction after independence in 1971, the World Bank has committed over $45 billion in concessional financing to the country. This latest initiative reflects a long-standing commitment to helping Bangladesh achieve inclusive growth and development.

Looking Ahead

The launch of SSPIRIT comes at a critical time as Bangladesh faces a complex mix of development challenges—from the impacts of climate change to urbanization and shifting demographics. By building a robust, agile, and inclusive social protection system, the government and its development partners aim to ensure that no one is left behind in the country’s journey toward shared prosperity.

With the right tools, data systems, and targeted interventions, the SSPIRIT project holds the promise of transforming millions of lives, helping the poorest citizens not only survive—but thrive.