Bangladesh lost $3.72b to climate change in 20 years

Over the past 20 years, Bangladesh has suffered about $3.72 billion in economic losses due to climate change, according to an analyst.

In terms of climate change vulnerability, Bangladesh is the seventh most susceptible country in the world with about 5.3 crore people subject to "very high" exposure, said Dr Syeda Zinia Rashid, senior programme officer of the Embassy of Switzerland in Bangladesh.

And although agriculture plays a vital role in accelerating the country's economic growth, the sector is the biggest sufferer of climate change vulnerability.

In such a situation, microinsurance could be an effective instrument to foster the economic resilience of smallholder farmers and micro, small and medium enterprises, she added.

Rashid made these remarks during the closing session of the first phase of the Bangladesh Microinsurance Market Development Programme (BMMDP), held at Sheraton Dhaka yesterday.

The event was organised by the Embassy of Switzerland in Bangladesh in association with Swisscontact, a non-profit organisation that carries out initiatives aiming to reduce poverty.

The BMMDP is a programme funded by the swiss embassy and anchored by the Financial Institutions Division under the finance ministry, and NGO Affairs Bureau of Bangladesh.

It focuses on developing microinsurance products, conducting research, and enhancing capacity in the country's microinsurance sector.

More than 1.5 million farmers of 51 districts were reached through BMMDP activities and 56,000 acres of land were covered under crop insurance, according to the organisers.

The programme has been branded as Surokkha, which implies protection for farmers from any inconvenience resulting from all kinds of calamities.

At the event, Planning Minister MA Mannan said agriculture is the main pillar of Bangladesh's economy as it ensures basic food security.

But the sector has been facing challenges from many natural calamities, such as riverbank erosion, cyclones, flooding and drought, over the years, he added.

In its Bangladesh Agriculture Insurance Situation Analysis, the World Bank Group in 2018 said the country's annual loss for disasters stands at $300 million.

Mannan said Swisscontact, Palli Karma-Sahayak Foundation and many other companies have introduced crop insurance for marginal farmers, which is really helpful.

Moinul Islam, member of the Insurance Development and Regulatory Authority, said microinsurance is growing in Bangladesh but not as expected by failing to keep pace with the expansion of the economy.

"This is a concern for us," he added.

Among others, Corinne Henchoz Pignani, deputy head of cooperation of the Embassy of Switzerland in Bangladesh, Md Anwar Hossain, director of the NGO Affairs Bureau, and Alamgir Kabir, head of business administration of Swisscontact Bangladesh, also spoke at the event.