World Bank finances Bangladesh to create jobs, recover from COVID

The Third Programmatic Jobs Development Policy—the last in a series of three credits—focuses on key reforms to create quality and inclusive jobs, while supporting the government’s response to the COVID-19 crisis. It supports policies to modernise the trade and investment regime; improve social protection for workers; and help youth, women, and vulnerable people access quality jobs, said the World Bank in a press release.

“The COVID-19 pandemic has had a disproportionate impact on the poor and vulnerable population,” said Mercy Tembon, World Bank country director for Bangladesh and Bhutan. "This financing supports government policies to protect those most affected by the pandemic and create more and better jobs as Bangladesh continues its journey towards its vision of becoming an upper-middle income country.”

The pace of job creation has slowed in recent years, and the COVID-19 pandemic has exacerbated the situation. The Jobs Development Policy Credit series has helped the government protect 5 million jobs, and enabled firms to continue paying their workers’ wages. It also supported the migrant workers who have had to return to Bangladesh due to the pandemic. The programme will also support informal micro-entrepreneurs in recovering by extending micro-finance facilities, the release said.

“The government has taken fast and proactive measures to protect the poor and vulnerable population and to mitigate the adverse impact of the COVID-19 pandemic on formal and informal businesses,” said Fatima Yasmin, secretary, economic relations division, government of Bangladesh. “This programme has helped protect the jobs and income of millions of poor and vulnerable people while laying the groundwork for building resiliency to future shocks.”

The programme has already resulted in reducing costs of starting a business; making the skills development sector more labour-market relevant; strengthening labour regulations for improved working conditions; and promoting quality daycare to enable more women to join the labour force.

The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing and has a 30-year term, including a five-year grace period. Bangladesh currently has the largest ongoing IDA programme totalling over $14 billion. The World Bank was among the first development partners to support Bangladesh and has committed more than $35 billion in grants, interest-free and concessional credits to the country since its independence.

Fibre2Fashion News Desk (KD)