EU donates nearly Tk573 crore for Bangladesh's social safety net

The European Union (EU) on Sunday transferred a grant of 45 million euros ($488.5 million or Tk573.15 crore) to the government for further boosting the country’s social safety schemes, as the bloc was pleased at the government’s recent successful execution of several social protection reforms.

This substantial payment is part of the EU's broader commitment to support Bangladesh's social protection system under an ongoing budget support mechanism worth 247 million euro.

EU Ambassador Charles Whiteley said, “I commend the Government of Bangladesh for its efforts to enhance its social protection system, emphasising its significance within the Team Europe Initiative (TEI) on Decent Work, co-chaired by the EU, Denmark, and the Netherlands."

Over the past three years, he said, the EU and its member states have implemented more than 40 active programmes in decent work, social protection, and technical and vocational education and training (TVET) in Bangladesh, worth over 500 million euro.

In particular, he said, the EU, Denmark, Sweden, and the Netherlands are collectively funding the new flagship programme titled “Advancing Decent Work in Bangladesh” with a budget of 23 million euro, aimed at expediting labour reforms in line with international standards.

"This effort is crucial for Bangladesh's future enlistment under the EU’s Generalized Scheme of Preferences Plus (GSP+) for sustaining the South Asian country’s duty-free access to the EU market beyond 2029," said Ambassador Whiteley.

The Team Europe approach contributes to the EU Global Gateway Initiative, reinforcing engagement with global partners for growth and stability.

Bangladesh's strategic location in South Asia, coupled with its economic growth and vibrant society, positions it as a key partner in promoting sustainable development in the region, observed the ambassador.

He also underscored that “in the global challenging economic context, the fight against poverty and inequality has become paramount.”

Social protection is a powerful tool in this battle, safeguarding the most vulnerable segments of the society. It is essential that investments in social protection not only remain steadfast but are boosted, he added.

The European Union reaffirms its commitment to supporting Bangladesh in this endeavour and the block is determined to leave none behind, Whitley said.

Through this partnership, the government of Bangladesh has committed itself to implementing crucial actions for improving social protection institutions as well as programmes, and, for ultimately helping the poor and vulnerable people against unforeseen climate and other shocks.

Successful implementation triggers the release of EU funds, said the EU Embassy in Dhaka.

In fiscal year 2022/2023, the GoB upgraded digital governance institutions such as the Single Registry Management Information System and the Government to People digital payment platform.

This infrastructure enables policymakers to make informed decisions for those most in need and facilitates the direct delivery of benefits to beneficiaries, mitigating the risk of pilferage and leakages.

Additionally, the GoB improved the central Grievance Redress System, allowing all Bangladeshi citizens to file complaints against specific schemes, if they believe their rights have been violated.

This system promotes transparency, empowers citizens to exercise their rights, and holds institutions accountable.

Moreover, the Mother and Child Benefit Programme saw a rise in beneficiaries, ensuring that more families can provide nutritious food for their children during their critical first 1,000 days.

Additionally, the GoB initiated the Employment Injury Scheme pilot in the Ready-Made Garment (RMG) sector.

This pilot offers income replacement options for permanently disabled workers and dependents of deceased workers, covering all factories within the export-oriented RMG sector.

The GoB is also developing a digital workers’ database to further streamline the delivery of social benefits to the working age population.

The disbursement of EU’s latest 45 million euro payment comes after a positive decision of the Budget Support Steering Committee of the European Commission's Directorate-General for International Partnerships in May 2024.