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Multidimensional Poverty in Bangladesh: Current Realities, Policy Challenges, and the Vision for Inclusive Development

According to the report titled “National Multidimensional Poverty Index (MPI) for Bangladesh” published by the General Economics Division (GED) of the Planning Commission, nearly 40 million people in Bangladesh are living in multidimensional poverty. Around 24% —or one in every four people—are considered multidimensionally poor. The prevalence of this form of poverty is nearly twice as high in rural areas compared to urban areas. It is also more prominent among children than adults. Among the eight administrative divisions, Sylhet shows the highest rate of multidimensional poverty, and among districts, the highest is in Bandarban.

Nearly 40 million Bangladeshis live in multidimensional poverty, with rural areas and children most affected. Sylhet and Bandarban show the highest rates. Deprivations include poor housing, sanitation, and internet access. The government now emphasizes inclusive, rights-based development over mere economic growth to eradicate poverty and promote dignity, equality, and empowerment.

Globally, several methods are used to measure poverty. Like many countries, Bangladesh traditionally relies on the cost-of-basic-needs method, as reflected in the Household Income and Expenditure Survey (HIES) conducted by the Bangladesh Bureau of Statistics (BBS). However, according to the United Nations and many economists, this income-based method does not fully capture the deprivations and complexities of daily life experienced by poor people. As a result, the Sustainable Development Goals (SDGs) encourage countries to adopt multidimensional poverty indicators to formulate effective poverty alleviation strategies.

The GED’s MPI report is based on data from the 2019 BBS Multiple Indicator Cluster Survey (MICS). It analyzes key dimensions of education, health, and standard of living to assess multidimensional poverty. GED prepared the report with support from BBS, UNICEF, the Oxford Poverty and Human Development Initiative (OPHI), and subject matter experts.

According to the MPI report, 39.8 million people in Bangladesh are multidimensionally poor, representing 24.05% of the total population. This rate is significantly higher than the 18.7% poverty rate reported in the latest HIES (2022), which uses a monetary-based measurement. The GED report reveals that in rural areas, the multidimensional poverty rate is 26.96%, almost double that of urban areas, which stands at 13.48%. Among children, the rate is 28.70%, compared to 21.44% among adults.

By division, the highest rate of multidimensional poverty is found in Sylhet Division (37.70%), followed by Mymensingh (34.95%), and Barishal (31.57%). Other divisions report the following rates: Chattogram 27.24%, Rangpur 25.04%, Rajshahi 22.26%, Dhaka 16.95%, and Khulna 15.22%. In terms of absolute numbers, Chattogram Division has the highest number of multidimensionally poor people, with approximately 9 million, followed by Dhaka Division with over 7.5 million.

Among districts, Bandarban has the highest rate of multidimensional poverty at 65.36%, followed by Cox’s Bazar (47.70%) and Sunamganj (47.36%). The lowest rates are observed in Jhenaidah (8.66%), Dhaka (9.19%), Gazipur (9.63%), and Jashore (10.58%).

The MPI report also presents the extent of deprivation across specific indicators, regardless of whether individuals are classified as poor. The highest levels of deprivation were found in housing conditions, internet access, sanitation, and asset ownership. According to the report:

On the other hand, some indicators showed relatively lower deprivation:

Poverty, development, and poverty alleviation remain some of the most widely discussed, debated, and researched topics in economics and policy studies. The definition of poverty has long been contested among policymakers and researchers. While it is broadly accepted that poverty is a form of deprivation, it has been defined in multiple ways—through livelihoods, literacy, health, and more. No single definition has invalidated others, which is why definitions of poverty continue to expand. Furthermore, a definition of poverty that may be appropriate in one society may not be applicable in another.

Given the diversity of human societies and relative needs, shaped by social characteristics and historical experience, it is difficult to establish a universal metric for defining poverty. Adam Smith, in his seminal work Wealth of Nations, illustrated this with the example of a linen shirt. While not essential, the absence of a linen shirt might cause a laborer to feel embarrassed in public. Smith argued that poverty should be measured by addressing not only basic needs but also social needs essential for inclusion and dignity in society.

Amartya Sen, often regarded as one of the most insightful economists on poverty, defines poverty as the failure to achieve the minimum capabilities required for a life of dignity. According to this view, poverty is a multidimensional reality that cannot be assessed solely through income or consumption. It also involves issues of social status, political inclusion, and human capability.

To eradicate poverty sustainably, integrated efforts are needed to ensure employment generation and human capacity development. True empowerment of people is not possible without broad reforms in social services. Development, therefore, should not be measured merely by an increase in national income, but by the extent to which people are enabled to shape their own futures. Undoubtedly, sustainable development depends not only on strategic programs but also on active citizen participation and social inclusion.

At present, Bangladesh is undergoing a reform process under an interim government to address systemic inequalities. In line with this, the economic advisor has announced the 2025–26 national budget, aiming to build an equitable society. The government’s key goals are the construction of a zero-poverty, zero-unemployment, and zero-carbon society, which is expected to bring a fundamental shift in people’s quality of life and break the vicious cycle of inequality.

Moving away from a growth-centric model, the government is emphasizing holistic development. Instead of focusing solely on traditional infrastructure projects, the current budget prioritizes human well-being, ensuring basic rights, livelihood security, and an environment free from discrimination. A state becomes ineffective and society weakens without these essential elements. Poverty and inequality are symptoms of unsustainable economic structures.

Author: Dr. Mihir Kumar Roy

Professor and Researcher

 

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