Bangladesh rural electrification program: A success story of poverty reduction through electricity

The purpose of this paper is to present an analysis of the impact of electricity in poverty reduction in rural Bangladesh. This impact has been analyzed using comparisons between 'with' and 'without' electricity situations. Retrospective information has been collectcd to understand inter-temporal changes in asset situation of various economic categories. It has been argued that access to electricity (at household and outside household) reduces both economic poverty and human poverty (in education and health). In many ways, the poor electrified households were found to be better off than even the rich in the non-electrified villages. The spill-over effect of electricity on the non-electrified households of electrified villages is much pronounced. Electricity has a profound impact on human capital formation through knowledge building mediated through electricity-driven media exposure. It is recommended that in order to accelerate the process of economic development, strengthen pro-poor orientation in the growth process and to further human development in Bangladesh, access to electricity of the households and social and economic institutions should be expanded. Rural electrification should be viewed as one of the key strategies for national poverty reduction.