Economic Impacts
"For as far as I could see, there were these people living in huts and shanties...and when I asked about it they told me, "those people are the ones displaced by the rising sea. It washed away their homes, so they live here now, on higher ground." I could hardly believe their misfortune, but climate change is very real and has an incredible impact on the lives of the people in Bangladesh." - Karen Adams, on the poverty she witnessed when visiting Bangladesh [1]
In past years, Bangladesh's economy has been affected by climate change in ways that include:
- Bangladesh has had a shaky but increasing economy since its independence in 1971 [2]
- poverty has been (and still is) very common
- green banking was introduced a few years ago and quickly grew in popularity - it was an easy way for people to contribute to reducing the negative impacts on the environment and therefore reducing climate change [3]
- the agricultural and garment/service sectors have very high employment [4]
- the agricultural sector especially has been at the mercy of the predictable monsoon rains - historically, if farmers are unable to work with the routine flooding and rains, the crops have been lower [5]
- there has always been high employment for those that want work, cheap labour jobs in the garment industry (read: sweatshops) usually do not turn away prospective employees - however, these jobs usually pay very little and do not pay enough to improve the lives of those in poverty [6]
In the present, the economic effects have changed to better tackle the challenge of climate change:
- promote climate-resilient crops and improve food security
- improve the security, reliability, availability, and sanitation of drinkable water
- improve the ability of people and buildings on the coast to withstand the effects of climate change
- enhance the ability of the government to assess and address the impacts of climate change (ie. research, information processing)
- the farmers rely on the predictability of the monsoon rains, but as it has become increasingly unpredictable, those in the agricultural sector have a difficult time knowing when to plant or harvest crops - this means failed crops and no income [7]
- the routine rainy-season flooding now has been found to leave behind salt deposits that ruin the land and the crops - this happening year after year has left many farmers starving, without any way to make money, and forced into poverty [8]
- Dhaka has become the central location of those living in poverty, where approximately half of the inhabitants live on less than $1 per day [9]
- flooding and natural disasters have washed away the homes, belongings, and savings of many families and communities, meaning that they must rebuild their lives with no money
- annually, an estimated 1% of the country's GDP is spent on damage from natural disasters/flooding/storms or lost production [10]
- the shrinking amounts of cultivatable farmland cannot provide for the growing population, not enough food to sell
- the country has been given (US) $110 million in grants from the Pilot Program for Climate Resilience (PPCR) in order to improve crucial areas regarding climate change, including [11]:
- promote climate-resilient crops and improve food security
- improve the security, reliability, availability, and sanitation of drinkable water
- improve the ability of people and buildings on the coast to withstand the effects of climate change
- enhance the ability of the government to assess and address the impacts of climate change (ie. research, information processing)
In the future, the effects the economy will face are expected to resemble things similar to:
- buildings will better be able to withstand climate change, increased storms, flooding, and cyclones, etc.
- the government will better be able to assess climate change and make the appropriate actions necessary
- the agricultural sector will have better stability and provide better-paying jobs for those that would like them due to the more reliable, climate-resilient crops, and farmland that was once uncultivatable due to salt deposits can be used again (in theory)
- the grants from the PPCR will hopefully be spent in the intended manner and will bring about positive impacts towards climate change [12]:
- buildings will better be able to withstand climate change, increased storms, flooding, and cyclones, etc.
- the government will better be able to assess climate change and make the appropriate actions necessary
- the agricultural sector will have better stability and provide better-paying jobs for those that would like them due to the more reliable, climate-resilient crops, and farmland that was once uncultivatable due to salt deposits can be used again (in theory)
- as natural disasters, floods, cyclones, and storm surges increase, it is expected that the percentage of Bangladesh's GDP that must be spent on repairs and lost production will also increase - but by how much it is not known
- overall, poverty will worsen as more and more people are displaced by rising sea levels and are forced to move to the slums
- families will need to pay more frequently to repair damage caused by worsening weather
1 Telephone Interview. 3 Nov. 2014.
2 "Impacts of Climate Change Bangladesh." Web. 1 Nov. 2014.
3 "Economic Status." Virtual Bangladesh. Web. 3 Nov. 2014.
4 Ibid.
5 "About Bangladesh - Economy." UNDP in Bangladesh. Web. 1 Nov. 2014.
6 "Economy Bangladesh." Infoplease. Infoplease. Web. 4 Nov. 2014.
7 "Bangladesh Resisting Climate Change."Interest Geo. Web. 4 Nov. 2014.
8 "Climate Change Bangladesh." NCDO. Web. 4 Nov. 2014.
9 "GDP and Production." Virtual Bangladesh. Web. 4 Nov. 2014.
10 "Climate change and Bangladesh." The Daily Star. N.p., n.d. Web. 28 Oct. 2014. <http://www.thedailystar.net/supplements/climate-change-and-bangladesh-4891>.
11 "Bangladesh Climate Investment." Climate Investment Funds. Web. 4 Nov. 2014.
12 Ibid.
2 "Impacts of Climate Change Bangladesh." Web. 1 Nov. 2014.
3 "Economic Status." Virtual Bangladesh. Web. 3 Nov. 2014.
4 Ibid.
5 "About Bangladesh - Economy." UNDP in Bangladesh. Web. 1 Nov. 2014.
6 "Economy Bangladesh." Infoplease. Infoplease. Web. 4 Nov. 2014.
7 "Bangladesh Resisting Climate Change."Interest Geo. Web. 4 Nov. 2014.
8 "Climate Change Bangladesh." NCDO. Web. 4 Nov. 2014.
9 "GDP and Production." Virtual Bangladesh. Web. 4 Nov. 2014.
10 "Climate change and Bangladesh." The Daily Star. N.p., n.d. Web. 28 Oct. 2014. <http://www.thedailystar.net/supplements/climate-change-and-bangladesh-4891>.
11 "Bangladesh Climate Investment." Climate Investment Funds. Web. 4 Nov. 2014.
12 Ibid.