World Bank Helps Bangladesh Create Inclusive and Quality Jobs and Recover from the COVID-19 Pandemic
The World Bank’s Board of Executive Directors on March 26 approved a $250 million credit from the International Development Association (IDA) to help Bangladesh create more, better, and inclusive jobs and protect more than 5 million jobs as part of the government’s response to the COVID-19 crisis, while laying the groundwork to accelerate recovery and build resilience.
The Third Programmatic Jobs Development Policy Credit—the last in a series of three credits—is supporting the government of Bangladesh to develop a stronger policy and institutional framework to modernize the trade and investment regime; improve social protection for workers; and help youth, women and vulnerable populations access quality jobs.
“Bangladesh has had strong economic growth in recent years, but the pace of job creation has slowed, especially in the manufacturing sector. The COVID-19 pandemic increased the challenges and the poor and women have been hit the hardest,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan. “This financing will help Bangladesh create more and better jobs and expand support for both formal and informal workers affected by COVID-19 crisis.”
This financing will support the government in its efforts to protect the earnings of workers affected by the COVID-19 crisis and enable firms to continue paying their workers’ wages, while also supporting informal micro-entrepreneurs to recover from the shock by extending micro-finance facilities. The program will also help streamline business and investment services, reducing the cost of starting a business, and supports reforms to align the skills development sector with labor-market demands.
“Although income and job losses due to the pandemic have impacted people from
all walks of life, women are most at risk of exiting the job market,” said Aline Coudouel, World Bank Lead Economist and Task Team Leader for the project. “This series of programs promotes quality daycare for children in a bid to bring more women to the job market and supports actions to create a more inclusive labor market for women, youth, and migrants.”
With this program, total World Bank financing for the Programmatic Jobs Development Policy Credit series stands at $750 million. 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 totaling over $14 billion. The World Bank was among the first development partners to support Bangladesh and has committed more than $35 billion in grants and interest-free and concessional credits to the country since its Independence.
Source: World Bank
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