Development of Poverty in Bangladesh in Face of the Rising Food Prices

The population in Bangladesh, one of the poorest countries in the world, is threatened by food commodities prices development. Since the poor allocate, proportionally, more of their income on consumption of food products, it is reasonable to assume that any rise in commodity prices around the world, hits the poorest countries to a relatively larger extent. At the same time, domestic economies of the poor countries are not any more resistant to absorb growing food prices and project them into the domestic price level. In the last month of the rst quarter of 2011, prices of food have increased by almost four percent, being the largest increase in the last four decades. This leads to the imminent danger of an increase in poverty. In this paper, the impact of increasing prices of food on the level of poverty in Bangladesh is researched, using the partial equilibrium model. Also some of the indicators of poverty in Bangladesh are estimated and compared over time.