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World Bank approves $200 million to help Dhaka support urban poor, migrants

  • Published at 01:43 pm March 17th, 2021
World Bank
File photo of the World Bank Group logo on the building of the Washington-based global development lender in Washington DC, US Reuters

Mercy Tembon said the project will support both groups of workers to overcome structural barriers to employability and facilitate resilient post-pandemic growth

The World Bank on Wednesday approved $200 million to help Bangladesh provide support and services to the low-income urban youth impacted by Covid-19 and the involuntary returnee migrant workers in order to improve their earning opportunities and resiliency.

The Recovery and Advancement of Informal Sector Employment (RAISE) project will help about 175,000 poor urban youths and low-income micro-entrepreneurs enhance employability and productivity by helping them access services such as life-skills training, apprenticeship programs, counselling, microfinance, and self-employment support. 

To help about 200,000 eligible migrants who have been forced to return since January 2020 either sustainably reintegrate into the domestic labour market or prepare for re-migration, the project will provide cash grants, counselling, and referrals to relevant services based on their needs and aspirations, the World Bank said in a release.

“International migration and urban informal sector have played a central role in Bangladesh’s remarkable success in reducing poverty over the years. However, both sectors were hit hard by the Covid-19 pandemic,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.

She said that the project will support both groups of workers to overcome structural barriers to employability and facilitate resilient post-pandemic growth.

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For the low-income urban youths and microentrepreneurs whose livelihoods have been impacted by Covid-19, the project will support an economic inclusion program that will be tailored to fit the individual needs of eligible beneficiaries.

The range of services offered include life-skills and socio-emotional counselling; on-the-job learning through apprenticeship programs; business management training; and microfinance for self-employment and informal microzenterprises.

Through a comprehensive program, the project will also help low-income migrants, many of whom have returned with high debt burdens, by providing counselling to help determine immediate needs and aspirations; socio-emotional counselling to support their reintegration into the community; referrals to technical, vocational or business management training to upgrade their skills and enhance their ability for self-employment; and cash grants.

To provide these services, the project will set up 32 district welfare centres.  The project will also support upgrade and integration of information systems that will streamline social protection service delivery for aspiring, current, and returning migrants.

“While the project will focus on the immediate needs of migrants who have returned due to Covid-19 impacts, through the systems development and capacity building, it will also benefit outgoing and voluntarily returning migrants, their families and communities, over the longer term,” said Syud Amer Ahmed, World Bank Senior Economist and Team Leader for the project.

 He mentioned that It will also focus on the needs of female returnees, including psychosocial counselling and referrals to gender-based violence-related services, as well as ensuring specific outreach activities to support their economic reintegration.

The credit is from the World Bank’s International Development Association (IDA), which provides concessional financing, has a 30-year term, including a five-year grace period. Bangladesh currently has the largest ongoing IDA program totalling over $13.5 billion.