The Asian Development Bank (ADB) and the government of Bangladesh have signed a $250 million loan agreement to enhance the country's social protection system. The agreement was signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Edimon Ginting, Country Director of ADB, at a ceremony in the capital today.

The Second Strengthening Social Resilience Program aims to accelerate reforms that increase the coverage and efficiency of social protection, improve financial inclusion for disadvantaged people, and strengthen responses to diverse protection needs. This program builds on the first Strengthening Social Resilience Program, which was completed in June 2022.

"The program helps improve the policy, regulatory, and institutional environment for social protection in Bangladesh," said Edimon Ginting. The initiative supports the government's Action Plan Phase II of the National Social Security Strategy (2021-2026), aiming to enhance the protective and preventive capacity of Bangladesh's social protection system.

The program aims to improve the management of social protection programs, enhancing their efficiency and effectiveness. It will place particular emphasis on increasing protection for vulnerable groups, including women, transgender individuals, and people with disabilities. To expand social protection, contributory protection schemes will be introduced to mitigate vulnerability and the risk of poverty. A verification scheme will be implemented for cash-based social protection programs to ensure beneficiaries' survival and minimize leakages. The program will also incorporate climate-adaptive measures into social protection systems to boost resilience against climate change-induced disasters. Additionally, the coverage of livelihood support programs for transgender people and the number of beneficiaries under the widow allowance program will be expanded. Bangladesh Bank will double its funding for the Small Enterprise Refinancing Scheme for Women Entrepreneurs, enhancing financial services access for women small business operators. The program will also concentrate on improving the governance mechanism of the employment injury scheme pilot, especially in the ready-made garments sector.

A tripartite committee comprising workers' associations, employers' associations, and the government will be established to further develop social insurance schemes for workers. Furthermore, the ADB will provide two $1 million grants: one from its Technical Assistance Special Fund (TASF 7) and another from the ADB-administered Community Resilience Partnership Program Trust Fund under the Community Resilience Financing Partnership Facility. These grants will support program implementation, technical and policy analyses, and capacity building for relevant government agencies.

ADB's commitment to this initiative highlights its dedication to fostering a prosperous, inclusive, and resilient Bangladesh through robust social protection measures.