ABSTRACT
Despite rapid reduction in poverty, rising inequality is a big issue for policy in Bangladesh. Obviously, ‘when inequality creates discriminatory outcomes, it becomes a human rights issue’ too. In Bangladesh, rising vertical inequality that concentrates greater amounts of wealth among a small group of elites along with horizontal inequalities that marginalize specific groups and communities undoubtedly create discriminatory outcomes. Despite resource constraints, many tools are available for reducing poverty and inequality. Universal social protection policy, including health care and microinsurance, can ensure access to basic services and social protections for all. Similarly, an effective and progressive tax system can produce a more equal distribution of wealth. For the medium term, Bangladesh needs to create effective economic institutions and proper policy incentives, while also pursuing sound macroeconomic policies and efficiency-enhancing reforms over time. The key for Bangladesh is to build a robust middle class and reduce extreme poverty and social marginalization for creating a more equitable society.
