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Challenging the Frontiers of Poverty Reduction
Targeting the ultra poor
A Special Investment program
to combat ultra poverty
Rabeya Yasmin
Director , BRAC

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Global Poverty
• 1.5 billion of world population in ultra poverty
• Poverty rates across the globe are falling, but there are populations not
affected by these trends

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Bangladesh Poverty Record
Head Count poverty declined from 70% in 1973-74 to 32%
in 2010
Still we have – 17% population in lower poverty line

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Still we have ultra poor –
94 % landless
32% of household cannot afford two meals a day
1.3% can consume egg 3 times/week
17% can consume small fish 3 times a week
58% HHs do not use sanitary latrine
7% HHs head has primary education
(Source: A joint study by the London School of Economics and Research and Evaluation Division
of BRAC , 2007)

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About BRAC
• Founded in Bangladesh in 1972, BRAC is considered “by most
measures the largest, fastest-growing non-governmental organization
in the world.” (Source: Economist, 2010)
• BRAC has been at the forefront of poverty alleviation in 10 counties
reaching 100 million population
• BRAC creates opportunities for the poor
• BRAC believes and acts on holistic approach

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BRAC’s quest for a meaningful investment in to the
lives of the poorest
Insights from BRAC’s deep and extensive presence at the
grassroot
Conventional Microcredit was not the best solution for
the ultra poor
The challenge is to design a sustainable market based
livelihood program for the poorest

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New Innovation
- In 2002 BRAC launched a special program called :
“Challenging the Frontiers of Poverty Reduction –Targeting the Ultra
Poor”
- Objective Achieve sustainable economic and social changes in the
lives ultra poor by creating assets, skills, hope and aspiration at
household level
Assist the ultra poor in getting access to the mainstream development
programs

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Targeting the Ultra Poor
Program Strategy
program works in two approaches :
1. Full Grant based Special Investment
program for the poorest among the lower
poverty line
2. Credit plus grant investment for the ultra
poor who are marginally less deprived

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Targeting
Indentify program location
Locations with very high and high
poverty incidence selected using
Govt. poverty map
Identify poorest households
•Participatory Wealth ranking exercise
•Door to door survey y front line supervisors
•Verification by mid level managers

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Program Supports
Full grant Special Investment
Program
Credit plus grant approach
1. Asset transfer; weekly stipend.
Build economic asset base, ensure regular cash
flow, improve livelihoods.
1. Soft Loan replaces Asset
Transfer for this category.
Loan terms : flexible loan size, flexible
savings, six-montly loan
2. All other supports remain the
same.
Enterprise development, life skill training,
tailored made health care,
Community mobilization works.
2. Enterprise development and life skill
training
To ensure good return from assets transferred,
awareness of rights and justice
3.Tailor made health intervention.
Improve health seeking behavior, reduce income
erosion in health
4. Engaging with the community.
To create supportive/ enabling environment at
village level,ensure long term sustainability of
improved livelihood of the ultra poor members.

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Participatory Wealth Ranking Exercise
Targeting
Community participates in a spatial
mapping and wealth ranking
exercise to
identify community members in the
most need
Community participates
in a spatial mapping and
wealth ranking exercise
to identify community
members in the most
need

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Goat rearer
Cow rearer
Duck rearer
Vegetable grower
ASSET
TRANSFER
We offer 12 options
of enterprise

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STIPEND
To allow the client breathing room,
and time to start earning income
from her assets, the client receives
a cash transfer or stipend, and in
some cases a food to supplement
their diet.

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Training / handholding
Client receives weekly home visits
and training on how to use their
asset, on health and hygiene
matters, basic skills and literacy,
and general support and
counseling
Program participants
receiving class room
training at BRAC office

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Tailored Health Intervention
Panel doctor give
prescription to Program
participant
BRAC Health staff
visiting a TUP
member
Tube well installed
for safe drinking
water at a TUP
household

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Mobilizing community Support
Free Coaching for
poorest children
Village committee
Meeting
Donating Warm Cloths

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Graduation out of ultra poverty
Coverage
2002- 2013 , 1.4 million poorest families
covered by BRAC in Bangladesh
Concept of Graduation
Graduating into a better life from the
most deprived condition
Participation in mainstream market
based economic activities

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Impact
 Longitudinal Impact Study over 8 year
 Randomized Control Trial applied
Results so far highly impressive :
95 % graduated from extreme poverty trap by obtaining :
Significant Increase in Income
Significant shift in Occupational choice
Food Security
Social Inclusion

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Insights ?
•Poorest should not be seen as permanent charity cases
•Comprehensive Targeted Programs needed
•Exit plan

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Join us in the movement to end ultra-poverty.
Contact us to learn more
BRAC Centre
75 Mohakhali
Dhaka 1212
Bangladesh
rabeya.y@brac.net
BRAC USA
110 William Street, 29th Floor
New York, NY 10038
USA
susan@bracusa.org

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Thank You !