Why Poverty Persists in Bangladesh’s Hill Tracts Despite Two Decades of National Progress

Despite Bangladesh’s strong national poverty reduction, research by IUBAT scholars shows that nearly half the population in the Chittagong Hill Tracts remains poor, facing overlapping deprivations in education, health, food security, and basic services due to remoteness and historical marginalization. The study argues that only place-specific, inclusive policies addressing land rights, infrastructure, climate risks, and indigenous exclusion can prevent this region from being left behind.

Produced by researchers from the International University of Business Agriculture and Technology (IUBAT) in Dhaka and an independent economist based in Kathmandu, the study examines why poverty remains stubbornly high in Bangladesh’s Chittagong Hill Tracts (CHT), even as the country has made remarkable national progress. Bangladesh reduced its poverty rate from nearly 50 percent in 2000 to under 20 percent by 2022, yet this success has not reached all regions equally. The CHT, home to 12 indigenous ethnic communities and marked by difficult terrain and historical marginalization, stands out as one of the country’s most deprived areas, raising serious questions about the country’s commitment to the Sustainable Development Goals and the promise to “leave no one behind.”

Poverty in the hills is deeper and more complex

Using data from the nationally representative Household Income and Expenditure Survey, the study looks at poverty through both income-based measures and a multidimensional approach that includes education, health, and living standards. The findings are stark. In 2016, about 46 percent of people in the CHT lived below the national poverty line, almost double the national average. More than half of households were multidimensionally poor, meaning they faced several overlapping disadvantages at the same time. Poverty levels also vary sharply across districts, with Bandarban showing extreme deprivation while Rangamati fares relatively better, highlighting strong inequalities even within the region.

Everyday deprivations shape daily life

For many households in the CHT, poverty is visible in daily living conditions. Large numbers lack electricity, safe drinking water, proper sanitation, durable housing, and basic household assets. Educational deprivation is widespread, with high dropout rates and very limited access to secondary and higher education, especially among smaller indigenous groups. Food insecurity affects around one-quarter of households overall and nearly half in the poorest districts, contributing to poor nutrition outcomes. Child underweight and mortality rates in the CHT are significantly higher than national averages, reflecting the close link between poverty, food shortages, and health.

Geography, history, and climate drive exclusion

The study shows that poverty in the CHT is driven by a combination of geography, historical neglect, and weak institutions. Steep hills, poor roads, and remoteness make it expensive and difficult to deliver public services, connect farmers to markets, or attract investment. Many villages are located hours away from all-weather roads, increasing costs and isolation. Historical policies during colonial and post-independence periods treated the region as a peripheral frontier, focusing on resource extraction rather than local development. Long-standing land disputes, incomplete implementation of the 1997 Peace Accord, and ethnic tensions have further weakened governance and discouraged economic activity.

Traditional livelihoods are also under strain. Shifting cultivation, once sustainable, has become less viable due to land scarcity and population pressure. Access to credit and technology remains limited, and microfinance reaches only a small share of households, sometimes pushing families into debt. Climate change adds another layer of vulnerability, with frequent landslides, erratic rainfall, droughts, and rising temperatures damaging crops, infrastructure, and health, while water shortages disproportionately burden women.

Why place-based solutions matter

By combining income and multidimensional poverty measures, the study makes clear that education and living standards are the largest contributors to deprivation in the CHT, followed by health and food security. These findings mirror patterns seen in other mountain and border regions across Asia, where geography and identity reinforce long-term exclusion. The authors argue that uniform, top-down development policies are unlikely to work in such settings. Instead, they call for territory-sensitive and culturally inclusive approaches, including full implementation of the Peace Accord, resolution of land disputes, investment in climate-resilient infrastructure and livelihoods, improved access to education, healthcare, electricity, and safe water, and better data on indigenous communities. Without such targeted efforts, the paper warns, Bangladesh’s national success story will remain incomplete, leaving the Chittagong Hill Tracts firmly on the margins of development.