The European Union (EU) and Germany transferred EUR 33 million (around BDT 330 Crore) to the government of Bangladesh to strengthen key areas of its social security system and build resilience to Covid-19, with a particular focus on affected workers in export-oriented industries.
The establishment in October 2020 of the government’s Social Protection Programme for Unemployed and Distressed Workers in the Ready-Made Garment (RMG), Leathergoods and Footwear Industries features as an important response measure.
With this grant, the EU and Germany recognize and support the Government’s commitment to strengthen social security in Bangladesh, along with its commitment to achieve the Sustainable Development Goals (SDGs).
This is the second disbursement from the joint EUR 113 million grant made available by the EU and Germany as part of the Team Europe’s response to fight Covid-19 and its consequences in Bangladesh.
Funds are channelled through the budget support programme on National Social Security Strategy reforms in Bangladesh.
“We encourage the government to ensure appropriate social protection system and measures that protect those who are in need. Beyond the immediate Covid-19 response, this programme represents a concrete first step towards the longer-term objective to establish adequate and sustainable social security for workers addressing different risks. The EU and its Member States are committed to support efforts to establish adequate and sustainable social security for workers, with the shared objectives to protect lives and livelihoods," EU Ambassador Rensje Teerink said.
German Ambassador Peter Fahrenholtz added: “We are pleased to join forces with the EU and support the Government of Bangladesh in mitigating the negative effects of the covid-19 pandemic on vulnerable workers in key export sectors like the RMG and leather sectors. We hope that the support will reach as many eligible workers as possible and we count on the joint efforts of the Government, the associations and the factories to achieve this.”
The programme was designed to run for two years (2020-22). It provides direct cash transfer allowances (up to 3 months) to unemployed workers who meet the eligibility criteria and whose data is verified/validated as per the guidelines.
The programme is underpinned by a robust management information system (MIS) covering end-to-end processes to target, enrol and pay eligible beneficiaries on a monthly basis.
The system was established in record-time (3 months) at Department of Labour (DoL).
It is fully operational with beneficiaries being enrolled and paid monthly, and by the end of May 2021, over 6,000 beneficiaries were enrolled and paid.
Eligible workers are identified in coordination with the employers’ associations, which include Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) and the Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association (BFLLFEA).
Transfers are processed through G2P, on the beneficiaries’ bank or mobile accounts.
The disbursement of this second payment comes after a positive decision of the Budget Support Steering Committee (SSC) of the European Commission's Directorate-General for International Cooperation and Development in June 2021.
