Challenges of Urbanization in Bangladesh

Table of Contents
Chapter 1.....................................................................................................................................................3
Introduction:...............................................................................................................................................3
Chapter 2.....................................................................................................................................................4
Major Issues of the Urbanization in Bangladesh:........................................................................................4
Objectives of the Report:............................................................................................................................5
Chapter 3.....................................................................................................................................................6
Review of Past and Recent Scenario of the Challenges of Urbanization in Bangladesh...............................6
3.1 A General Analysis of Urbanization in Bangladesh - Past and Present...................................................7
3.1.1. The Scenario of Urbanization of Bangladesh in Past (1901-1991):................................................7
3.1.2 The Scenario of Urbanization of Bangladesh in Present (2001-Present):.......................................9
3.2 Analysis on the Impact on Urbanization in Different Sector in Bangladesh – Present and Past...........10
3.2.1. Urbanization in the Education sector - Present and Past Analysis:..............................................10
3.2.2. Impact of Urbanization on Employment rate - Present and Past Analysis:..................................11
3.2.3. Impact of Urbanization on Poverty Rate - Present and Past Analysis:.........................................12
3.2.3.a - National Level:.....................................................................................................................12
3.2.3.b - Rural Level:..........................................................................................................................13
3.2.3.c - Urban Level:.........................................................................................................................13
3.2.4. Impact of Urbanization on Agriculture - Present and Past Analysis:............................................14
3.2.5. Impact of Urbanization on Other Sectors - Present and Past Analysis:........................................15
3.2.5.a - Electricity:............................................................................................................................15
3.2.5.b - Water Supply:......................................................................................................................15
3.2.5.c - Sanitation:...........................................................................................................................16
3.3 Urban and Rural development and governance..................................................................................16
Chapter 4..................................................................................................................................................19
Strategies to mitigate the challenges of urbanization faced by Bangladesh..............................................19
4.1 Diminish the gap between rural and urban wage............................................................................20
4.2 Policy of rural job creation..............................................................................................................21
4.3 Improving city governance..............................................................................................................23
4.4 Reduction of the urban poverty......................................................................................................24

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Challenges of Urbanization in Bangladesh

Chapter 5..................................................................................................................................................26
Recommendation......................................................................................................................................26
Chapter 6..................................................................................................................................................28
Conclusion.................................................................................................................................................28
References................................................................................................................................................29

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Challenges of Urbanization in Bangladesh

Chapter 1

Introduction:
Urbanization commonly refers to a process in which an increasing proportion of an entire

population lives in cities and suburbs of cities. Traditionally, it has been closely related with

industrialization. Urbanization forces industrialized economic growth and transition from

agricultural based income and employment to non-agriculture based income. Rapid urbanization

causes shift in rural livelihood base and often result in migration of the agricultural based

laborers to factory based or non-firm based activities in the cities. Thus, urbanization, migration

and development are connected. The relationships between migration and urbanization and

development has a great economic impact on the country. According to the recent trend in

Bangladesh, people are moving to the big cities and leaving the rural life and agricultural based

tasks. As a result overall agricultural production decreased in last few years. Historically,

Bangladesh was largely rural country. However, these people also causing a big challenge for the

government to resettle. A large number of people moving toward the cities without having any

proper work, skills, place for live and getting involved in illegal activities. They are migrating to

cities with the hope of better life standards but actually it‟s not the real case. In research its says

that people migrated from rural areas to the capital city of Bangladesh are living very pool life,

no permanent jobs, majority people works in the non-firms like rickshaw pulling, hawker, day

labor etc. Their earning is very low, lives in slumps, and doesn‟t have access to the basic medical

facilities. These will impact on overall development in the context of Bangladesh. Since goal of

development is aimed at improvement of the quality of life of an individual human being, or

his/her family, government facing various challenges to development their status and also trying

to reduce the migration to the urban cities.

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Challenges of Urbanization in Bangladesh

Chapter 2

Major Issues of the Urbanization in Bangladesh:

According to the Bangladesh bureau of statistics, in 2017 the rate of the urban population in

Bangladesh is 35.8% of total population. The estimated rate of urbanization is 3.19% (2015-

2020). In 1974-81 the urban population was 10.03%. The number of urban people is grown

rapidly in these years because of some specific reasons. In Bangladesh there is some basic forces

that trigger the urbanization and the migration of the population towards the cities. The causes of

migration to a city are generally defined as a push-pull model. Push factors, including population

pressure, shortage of lands and lack of employment opportunities. In the absence of sufficient

industrialization the pull factors are few. There is considerable evidence that cities in Bangladesh

offer better economic and social opportunities than the rural area. The report seeks to address the

past scenarios, major causes, and the way forward for this issue. The initial trigger for

urbanization is the industrialization. It has expanded the employment opportunities. Rural people

have migrated to cities on account of better employment opportunities. If we consider the

garment sector we can see majority of the people came to urban to working in the factories. It

helps the economy of Bangladesh by exporting the garments but also brings the challenge of

unplanned urbanization. In addition, Social factor like better education facilities, better standard

of living also causes a large migration in to the cities. Lastly, the society modernization,

development in communication also resulting in massive urbanization. In this report seeks the

solution to this issues by analyzing the past scenarios, with the current policies and programs

taken by the government.

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Challenges of Urbanization in Bangladesh

Objectives of the Report:

Urbanization holds both promise and problems for a country. And how could the problems be

eliminated and could the promises be achieved, urban policy initiatives are very important. To

address promises and prospects, problems and challenges of urban transition, some objectives

should be addressed. Main objectives of the report are to find out the nature and trend of

urbanization in Bangladesh, to find out the causes of urbanization in Bangladesh, to find out the

prospects of urbanization in Bangladesh, and to find out the policy issues related to urbanization

in Bangladesh with some recommendation for better urban planning

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Challenges of Urbanization in Bangladesh

Chapter 3

Review of Past and Recent Scenario of the Challenges of Urbanization in

Bangladesh

Urbanization is a positive side of a country. It portraits that, that country is moving towards

economic, social and financial growth. Nonetheless, this positive side sometimes may carry a lot

of negative side too. In Bangladesh, urbanization is now on that path. Watching the accelerating

growth in of urbanization, people of rural area is moving towards the mega cities of Bangladesh

with a great magnitude. As a result, the most core problem of urbanization has become that the

th
mega cities has become the most densely populated places. Bangladesh is the 7 most populated

country in the world with a population of 154 million. 1 Once the population growth was very

much high in Bangladesh but after 1991 it started to decrees, while the population growth was

decreasing in Bangladesh, the urban population growth was increasing. During the period of

1974 to 1981 the urban population growth was at its pick, which was 10.66%. In 1974 the urban

population was 6.27 million, which had been doubled in 1981 and in 2011 it stands at 42.11

2
million which means 28.4% of the population of the country lives in urban areas.

1
Government of Bangladesh: Bangladesh Population Census. Census, 1991 BBS.
2
Ahmed, S., & Ahmed, M. Urbanization and Economic Development of Bangladesh: The Primacy of Dhaka
and Competitiveness [Ebook].

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Challenges of Urbanization in Bangladesh

Figure 1.3: Showing Growth rate of urban population in Bangladesh

From this statistics it is clear that the growth is pretty much high, as a result, it has become

challenging to maintain the actual standard of urbanization at present than before. The

consequences of urbanization have effect on different sector, which can be easily identified by

looking the present scenario with the past scenario of urbanization.

3.1 A General Analysis of Urbanization in Bangladesh - Past and

Present

3.1.1. The Scenario of Urbanization of Bangladesh in Past (1901-1991):

Urbanization of Bangladesh has several parts and dimension. It has seen many phases of

urbanization. In 20th century Bangladesh had witnessed several types of growth in Urbanization.

The growth of urbanization has been divided into 4 parts from 1901 to 1991

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Challenges of Urbanization in Bangladesh

1. Period of sluggish growth (l90l - l92l)

2. Period of moderate growth (l92l-1941)

3. Period of rapid growth (1951- 1974)

4. Declining period (1974-1991)

The urban population of Bangladesh was only 25 thousand in 1991. On the other hand, it was

22,455 thousand in 1991. Still, in past, less people were living in urban area. The level of

urbanization was 2.43 percent in 1901, which increased to 2.64 percent by 1921. Then the rate

was quite low in terms of the actual population of that time. The reason was assumed that during

that period the British colonial government may be attributed to the profit motive strategy to

destroy indigenous industries and to build up industrial-commercial agglomeration around this

area. Political reasons were also one of the reasons.

A slight growth in the level of urbanization and growth rate was however, recorded in the period

of 1921-1941. In between, 1941 and 1951 the annual average growth rate decreased from 3.66 to

1.70 though proportion of urban population increased. A significant increasing trend was found

in all respects from 1961 and it has been continuing since then. During the period of 1961- 1974

was the highest ever, observed in urban population. The annual growth of 9.04 was also highest

ever. This sharp acceleration of urban population growth during the period of 13 years (1961-

1974) may be attributed to some industrial development in the 1960s and the emergence of

Bangladesh as a sovereign nation. In l98l the country had over 13.5 million urban people with

15.05 percent of urbanization accompanied by 115.76 percent intercensal increase and an

average annual growth rate of 7.99.ln case of l99l census the above rates were respectively 65.89

percent and 5.19 which are also less than that of1981. Similar results were also observed for the

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Challenges of Urbanization in Bangladesh

census year of 2001. This indicates that urbanization in Bangladesh after 1974 is increasing but
3
at a decreasing rate.

3.1.2 The Scenario of Urbanization of Bangladesh in Present (2001-Present):

Urbanization in Bangladesh has some spatial characteristics. There is regional variation in the

level of urbanization. It ranges from a high of 90% for the district of Dhaka to a low of less than

15% for greater Faridpur, Tangail, Patuakhali and Sylhet (Rahman, Z, 2014). Chittagong and

Khulna, having large cities within the district, also had higher levels of urbanization. Urban

population is also characterized by its heavy concentration in a few cities. Dhaka alone has

nearly 40% of the total urban population, while the top four cities (Dhaka, Chittagong, Khulna

and Rajshahi) together have about 55% of the total urban population of the country (BBS,

2011).4

In the coming decades the urban population in Bangladesh will continue to grow but the rate of

growth of urban population may go down to some extent. However, it would still be around 3.6%

in the year 2015. By that time, the total national population would rise to 185 million, the urban

population to around 68 million, and the share of the urban population to 30%. In the not too

distant future, more than 50% of Bangladesh population (of around 200 million) would be urban

with over 100 million people (Rahman, Z, 2014).5

3
Jahan.M.A.R. & ,Sarwar, “Spatial and Temporal Patterns of Urbanization in Bangladesh”
4 Alam, Z. (n.d.). Urban Transition in Bangladesh Causes, Consequences (Problems, Prospects) and Policy
Issues.
5 Alam, Z. (n.d.). Urban Transition in Bangladesh Causes, Consequences (Problems, Prospects) and Policy Issues.

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Challenges of Urbanization in Bangladesh
Urban Population %
200

180

40
160

140 35

120 30

100
25
P opulation millions

80
20
60
15
40
10
20

5
0
1950

1960

1970

1980

1990

2000

2010

2020

2030

1950

1960

1970

1980

1990

2000

2005

2015

2030
Figure 2.3.1.2: Showing urbanization in Bangladesh
Figure 3.1.2: Showing urbanization in Bangladesh

From (figure 3.1.2) we can see that by 2030 the urban population can be around 80 millions.

That means a growth of around 38% in the urban population.

3.2 Analysis on the Impact on Urbanization in Different Sector

in Bangladesh – Present and Past

3.2.1. Urbanization in the Education sector - Present and Past Analysis:

Most children in Bangladesh attend school at the primary level, even if they do not all complete

this level. Incomplete primary school tends to mean a failure to gain literacy. In the (figure 3.2.1)

we can see that literacy rate has increased significantly from 1981 to 2016. According to

UNESCO Bangladesh it has an adult literacy rate of 72.76%. While the male literacy rate is

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Challenges of Urbanization in Bangladesh

75.62%, for females is 69.9%. Though some might argue that this data includes that the person

who can only sign their name, but these data has been used in many research and papers.

Date Adult literacy Adult Adult Adult literacy Adult literacy Adult
rate female literacy rate literacy rate 15-24 rate 15-24 literacy rate
male rate female male 15-24
2016 69.90% 75.62% 72.76% 93.54% 90.91% 92.24%

2011 46.74% 47.45% 47.08% 72.65% 55.75% 65.71%

2007 43.74% 49.83% 46.66% 67.49% 54.27% 61.87%

2001 40.82% 53.90% 47.49% 60.26% 67.16% 63.62%

1991 25.84% 44.31% 35.32% 37.99% 51.74% 44.68%

1981 17.97% 39.73% 29.23% 27.15% 44.36% 35.65%

Figure 3.3.2.1: Showing literacy rate in Bangladesh

In education sector urbanization has a positive impact. Urbanization plays a big role in the

education system. Also the Education Board of Bangladesh is expanding the perimeters to adapt

the changes. There are 9 intermediate and Secondary Education Boards in Bangladesh.

3.2.2. Impact of Urbanization on Employment rate - Present and Past Analysis:

Unemployment Rate in Bangladesh remained unchanged at 4.20 percent in 2017 from 4.20

percent in 2016. Unemployment Rate in Bangladesh averaged 3.85 percent from 1991 until

2017, reaching an all time high of 5.10 percent in 1997 and a record low of 2.20 percent in 1991 6

(figure 3.2.2). The overall structure of employment did not change dramatically over this period.

Not all the people in the rural area are in the agriculture business. What is perhaps surprising is

the high proportion of those employed in urban areas who work in the agricultural sector –

6 Gavin Jones, E., Mahbub, A., & Haq, I. (2016). Urbanization and Migration in Bangladesh (p. 33). UNFPA.

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Challenges of Urbanization in Bangladesh

almost one quarter. Of course, the proportion working in agriculture is much higher in rural

areas-over half. By contract, twice as high a proportion of workers in urban areas than in rural

areas work in manufacturing, and twice as high a proportion in services, but the proportion

7
working in construction, trade and transport is not very much higher in urban than in rural areas.

Figure 4.3.2.2: Showing Bangladesh’s Unemployment Rate

3.2.3. Impact of Urbanization on Poverty Rate - Present and Past Analysis:

Headcount Index (HIES cost of basic need - CBN)

3.2.3.a - National Level: According to Bangladesh Bureau of Statistics, the number of people

living below the upper poverty line was 56.7 percent of total population in 1991-92 whereas 41.1

percent of the total population was living under the lower poverty line. In 2010, these

proportions came down to 31.5 and 17.6 percent respectively. Indeed, during 1991-2010,

headcount index fell by on average 3.21 percent per year in case of Upper Poverty Line, and it

7 Gavin Jones, E., Mahbub, A., & Haq, I. (2016). Urbanization and Migration in Bangladesh (p. 33). UNFPA.

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Challenges of Urbanization in Bangladesh

was 4.6 percent per year for Lower poverty line. According to HIES 2010, for the period 2005-

10, annual rate of poverty reduction were 4.67 percent and 6.85 percent, for upper and lower

poverty lines respectively. These annual rates are higher than the long-term (1992-2010) average

rates of 3.21 percent and 4.60 percent respectively.

3.2.3.b - Rural Level: In terms of upper poverty line, about 58.8 percent population in rural areas

was poor in 1991-92, which fell to 35.2 percent in 2010 at 2.81 percent average annual decline.

In terms of lower poverty line, headcount index fell from 43.8 percent to 21.1 percent at an

annual rate of 3.98 percent. During 2005-2010, poverty and extreme poverty rates declined by

4.28 and 5.90 percent respectively both of which were higher than long-term (1991-2010)

8
averages (i.e., 2.81 percent and 3.98 percent respectively).

Figure 5.3.2.3: Showing Poverty line in Bangladesh

3.2.3.c - Urban Level: Poverty headcount rate has always been lower in urban areas in

comparison with rural areas. In 1991-92, about 42.8 percent of families in urban areas were

living below upper poverty line which declined at an annual rate of 3.80 percent and dropped to

21.3 percent in 2010. On the other hand, with respect to lower poverty line, poverty headcount

8 Poverty and equality journey towards progress. (2015). Ministry of finance Bangladesh, pp.7,8.

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Challenges of Urbanization in Bangladesh

rate declined from 24.0 percent in 1991-92 to 7.7 percent in 2010 at an annual rate of 6.12

percent. During 2005-2010, poverty and extreme poverty rates dropped by 5.59 and 12.01

9
percent respectively. In other words, poverty declined at record-high rates during this period.

3.2.4. Impact of Urbanization on Agriculture - Present and Past Analysis:

A declining trend in the growth of agricultural sector has recently been noticed, which, in turn,

contributed to decelerating growth in GDP in the country. Though there was an increasing trend

in growth in agriculture from 1990 to 2010, since the FY2010-11 the rate of growth has been

10
falling. One of the major reasons is urbanization -showing in the figure 3.2.4.

Rate of Growth in Agriculture Sector

Fiscal Year Growth
Rate
1980-81 3.35
1985-86 3.40
1990-91 2.40
1995-96 3.20
2000-01 3.20
2005-06 4.90
2009-10 5.20
2010-11 5.10
2011-12 5.15
2012-13 2.25
2013-14 2.20 est.
Bangladesh Economic Update, Volume 5, No. 3, March 2014, Unnayan Onneshan
Figure 6.3.2.4: Showing declining growth of Agriculture sector in Bangladesh

The rate of growth in agriculture was 5.24 percent in FY2009-10, whereas in FY2010-11,

FY2011-12 and FY2012-13 the ratewas5.13 percent, 3.11 percent and 2.17 percent respectively.

9 Poverty and equality journey towards progress. (2015). Ministry of finance Bangladesh, pp.7,8.
10 Alam, Z. (n.d.). Urban Transition in Bangladesh Causes, Consequences (Problems, Prospects) and Policy Issues.

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Challenges of Urbanization in Bangladesh

This falling growth in agriculture has been causing the share of agriculture in GDP to decline

over the recent years. For instance, in FY2009-10, the share of agriculture in GDP was 20.29

percent, whereas in FY2010-11, FY2011-12 and FY201213the share was 20.01 percent, 19.42

percent and 18.70 percent respectively. As a result of this declining contribution of agriculture to

national income, the growth of GDP in the country has also been found decelerating. If the

current trend persists, the agricultural growth rate might reach as low as 2.09 percent in FY

2013-14.11

3.2.5. Impact of Urbanization on Other Sectors - Present and Past Analysis:

3.2.5.a - Electricity: Electricity is provided by two public electric distribution entities called

Dhaka Electricity Supply Authority (DESA) and the Dhaka Electric Supply Company (DESCO).

They both buy power from the publicly owned generation entity called Power Development

Board (PDB). An estimated 90% of population in Dhaka has power connections, which

compares favorably with the rest of the country. Per capita consumption is 45kw/hour and

demand is growing at 12% per year. However, there are high system losses, around 20-30%.

Load shedding, especially in summer, is common due to insufficient peak load capacity. DESA‟s

collection efficiency has improved recently, but losses still remain high.12

3.2.5.b - Water Supply: Some 70% of Dhaka‟s population has now access to piped water. Piped

water is provided by an autonomous water agency, the Dhaka Water and Sewerage Authority (D

WASA). The D-WASA currently obtains most of its water from an over exploited aquifer.

11 Alam, Z. (n.d.). Urban Transition in Bangladesh Causes, Consequences (Problems, Prospects) and Policy
Issues.
12 Zaman, A., Tariqul Alam, K., & Islam, M. (2010). Urbanization in Bangladesh: Present Status and
Policy Implications. ASA University Review, 4(2), 5-16.

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Challenges of Urbanization in Bangladesh

Because of the high rate of population growth, access to piped water seems to be decreasing.

Dhaka‟s groundwater level is rapidly declining due to over-use. It dropped 20 meters in last

decade. Future development of surface water sources is in danger because of industrial pollution.

DWASA is unable to meet full demand of the city. There is high system loss of 40% and

collection efficiency is around 80 percent. However, deficits have gone down in recent years

both in absolute liters and as percentage of demand. There are also significant complaints arising

from the long time it takes to get connection, illegal payments, and inadequate supply

3.2.5.c - Sanitation: In 1998, only 15 percent of Dhaka‟s population had access to sewerage

connection through D-WASA, while about 30% of the population had no access to any type of

sanitation. This population basically uses roadside drains or other spaces causing tremendous

health hazards through water and air pollution. The system of household waste disposal is

similarly inadequate. It is estimated that about 3,200 metric tons of solid waste is produced per

day. Only about 50% is collected by the city authority for proper disposal. Overall, the sanitation

management is grossly inadequate, posing a tremendous health challenge.13

3.3 Urban and Rural development and governance

Bangladesh has only a recent record of planned urban development. Efforts were made in the

1960s and the 1970s14 for a national urban planning system, which would have taken into

consideration such aspects as location, size, spacing and function of urban centers; however, this

remained a 'paper plan'.15 Instead, planned development was considered on an individual city

13 Zaman, A., Tariqul Alam, K., & Islam, M. (2010). Urbanization in Bangladesh: Present Status and
Policy Implications. ASA University Review, 4(2), 5-16.
14 Ahmed, S. (2018). Public Finance and Urban Development in Bangladesh. Bangladesh. Economists’
Forum, Chapter 11, 5 - 21.
15 Bangladesh Population Census 2001, Dhaka, Bangladesh Bureau of Statistics, Government of Bangladesh

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Challenges of Urbanization in Bangladesh

16
basis. The four largest cities were brought under master plans in the late 1950s and early 1960s.

Each of these cities was given an urban planning and development authority to prepare their

master plans and to develop their cities in keeping with such plans. These authorities, rajuk for

Dhaka, CDA for Chittagong, KDA for Khulna and RDA for Rajshahi, prepared plans through

either UN support or local private consulting groups as their own in-house planning capability

1718
was very limited. Development authorities are now able to prepare some local area plans.

Development authorities undertake schemes as recommended in the master plans and are under

the jurisdiction of the Ministry of Housing and Public Works. By contrast, urban local

governments, referred to as city corporations, are under the jurisdiction of the Ministry of Local

Government and Rural Development. City corporations are responsible for carrying out a variety

of functions including conservation, maintenance of roads, street lighting, maintenance of parks

and playgrounds, lakes, delivering various social services and so on. There are also a variety of

other agencies responsible for different urban services such as: water, sewerage and drainage,

transportation, gas, telephones, security, education, health and other services. In fact, in the case

of Dhaka, as many as 41 different governmental organizations are involved in the city's planning

and development activities. Such a multiplicity of organizations creates problems in coordination

and good governance. In the case of Dhaka, the problem has been so serious that a separate

committee for good governance and development for the city was established under the Office of

the Prime Minister.19

16 Bangladesh Population Census 2001, Dhaka, Bangladesh Bureau of Statistics, Government of Bangladesh
17 Afsar, R., 1998, “Rural-urban migration and development: evidence from Bangladesh”, in R. Bilsborrow (ed.),
Migration, Urbanization and Development: New Directions and Issues, Dordrecht: Kluwer Academic Publishers.
18 Ahmed, S. (2018). Public Finance and Urban Development in Bangladesh. Bangladesh. Economists’
Forum, Chapter 11, 5 - 21.
19 Islam, M.A. 2003, Population Momentum in Bangladesh, in Demographic Dynamics in Bangladesh:
Looking at the Larger Picture. Dhaka: Centre for Policy Dialogues, UNFPA and Pathok Shamabesh, pp 1-21.

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For other large cities, coordination and governance problems are generally settled by initiatives

of the respective city mayors. For the cities and towns for whom separate urban planning and

smaller development bodies do not exist, responsibility for initiating urban plans rests with the

city administration, that is, the pourashavas.20 However, since pourashavas lack their own urban

planners, master plans are normally prepared for them by either the Urban Development

Directorate (UDD), the Local Government Engineering Department (LGED), or by private

21
consultancy firms under the supervision of UDD and LGED. Some support is now being given

to 22 such cities in setting up urban planning departments or cells within their offices under the

Urban Governance and Infrastructure Improvement Project (UGIIP). [Nazrul Islam]22

20 Islam, M.A. 2003, Population Momentum in Bangladesh, in Demographic Dynamics in Bangladesh:

Looking at the Larger Picture. Dhaka: Centre for Policy Dialogues, UNFPA and Pathok Shamabesh, pp 1-21.
21 Ahmed, S. (2018). Public Finance and Urban Development in Bangladesh. Bangladesh. Economists’
Forum, Chapter 11, 5 - 21.
22 Islam, N, 2002, Urbanisation and Urban Development in Bangladesh on the Threshold of the
Twenty-First Century, edited by A M Chowdhury and Fakrul Alam, Dhaka

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Chapter 4

Strategies to mitigate the challenges of urbanization faced by

Bangladesh

Rapid urbanization in developing countries like Bangladesh has been a quandary of economic

development and environmental afflictions. It is difficult to get full benefit of urbanization from

economic growth perspective as it brings some challenges as well. From economic point of view

demand of consumer goods rapidly increases because of the flow of population from rural side to

urban side. At the same time it creates scope to increase the supply as there are more labors

available. However to compare the service stipulation and income earning opportunities are not

increasing at the same pace. Thus the country is facing lack of infrastructure services, increased

urban unemployment, social insecurity and many other challenges. There is still an increasing

flow of people from rural to urban areas in spite of growing unemployment in developing

countries. This high labor migration rate from the rural to urban sectors creates many problems

for developing countries. In low income countries like Bangladesh urbanization hamper

economic development as there are scare capital resources. These challenges interrupt some

major central government policy implementation as well. Based on the challenges, this paper

briefly recommends some strategies that need to be taken.

The relationship between urbanization and economic development has long been a popular issue

of debate. Should a developing country encourage urbanization? While this is a real dilemma in

Bangladesh, because of a highly unfavorable land-population balance. The question is not

whether Bangladesh should urbanize; the question is how Bangladesh will handle the challenges

of urbanization. Here is some possible answers to that question-

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4.1 Diminish the gap between rural and urban wage

There is a large residual gap between urban and rural living standards in developing countries

like Bangladesh mostly because of the gap of wage. In almost every developing country, there

are large gaps in average income per head between rural and urban areas, or relatedly, between

agricultural and non-agricultural workers. Sometimes rural households considering a move

(either temporary or permanent) can face unemployment risk. The gap between rural and urban

areas should be minimized.

It is visible that there is a gap between agricultural, fishery sector and manufactuting sector.

Though over the years both sectors are growing in a upward direction but the gap is constant.
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 The principal objective of income distribution policy of a government is to minimize the

absurd inequality of income of its citizens, which arises mainly due to differences in their

incomes based on location. According to a survey of Bangladesh Bureau of statistics

(BBS), Bangladesh is one of the countries of the world having the highest inequality rate

in income distribution. Its GDP growth rate is upward, but the income distribution

situation is worsening gradually. As a result, the gini-index of income in equality rose to

0.483 in 2016 from 0.467 in 2005.

 One of the major approaches of rural urban migration is the „push-pull theory of internal

migration‟, where the push factors for Bangladesh are poverty, a declining man-land ratio

and income inequality. On the other hand a major pull factors is the higher urban wage

rate. An aggressive rural progress agenda for a long period of time can shrink the wage

gap and may make the rural sector more striking. That will reduce migration of people

from rural to urban area.

 To implement the strategy the rural sector should given higher additional capital. The

main emphasize should be on agricultural development, that will also create increased

employment in the production of food.

4.2 Policy of rural job creation

Higher investment in rural sector can result in the reduction of urban to rural migration. Rural

job opportunities in Bangladesh are fragmented and inadequate. Faster and more inclusive rural

growth with job creation will require greater agricultural diversification together with stronger

rural non-farm enterprise development. This is not an easy task. Concerted efforts are required in

a range of government policies. It is encouraging that key policymakers, academia and think tank

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researchers, development partners as well as private sector partners are thinking deeply about

this.

 Employment in low productive and non-formal sectors like, agriculture has very little

potential to get expected gain from the population age structure advantage. In that case

entrepreneurship development can play a vital role for self-employment and generating

paid employment in rural areas. A balance development between urban and rural business

can create opportunities for rural population.

 The small, medium, micro enterprises should get enough support to run their business in

rural areas. By enforcing regulatory framework that generates an environment

encouraging to investment can be helpful in balancing out the development. A shift in

production from rice to higher-value crops will considerably trigger rapid growth in

incomes, and create more and better on-farm and non-farm jobs, especially for women

and youth.

 Investment in and expansion of the rural non-farm enterprises (RNFEs) must be a priority

for Bangladesh. Livestock and fisheries also suggest remarkable potential, but struggle

because of inadequate government support. It can provide powerful source of job

generation in rural areas.

 In view of the growing importance of non-farm activities in rural areas, the government

will need to support services that provide incentive to these activities. These include

further efforts to intensify rural electrification, further improvements in rural roads,

higher public spending on rural health and education, and supply of rural credit.

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Mala Rani Das- A case study on microfinance

Mala Rani Das, at age of 35, makes cleaning stand with long, thin sticks gathered from coconut

tree leaves. She earns Tk100 ($1.20) a day. That takes her monthly income to Tk3, 000 ($35.94)

to run a family of 7 members.

Rani is a member of a 15-member, credit group whose objective is to help its members get small

loans provided by Bhairab pourashava’s poverty reduction program. The amount of loans for a

person ranges from Tk5, 000 ($59.90) to Tk50, 000 ($599.02) depending on the borrower’s

repayment record. Rani was able taken out a loan of Tk10, 000 ($119.80) with the help of this

program. Now she has developed her own business of making pottery items and earning a

healthy amount.

“This is amazing. This is happening in a country where a large number of people live on only $2 a

day,” says Md. Shahin, the mayor of Bhairab.

4.3 Improving city governance

Good governance, an efficient loom in sustainable urban development, involves sufficient

transparency, accountability, decentralization, participation and control, which Bangladesh is

lacking in. Due to mono-centric in nature, there is a huge pressure of population on Dhaka city.

Local governments should feel full ownership in improving governance reforms, considering

these reforms as an opportunity to improve their financial and administrative shortcomings. They

have been able to adapt to the new governance practices within a short period of time.

 There should be proper implementation of the governance improvement action plan,

achievements needed to be sustained beyond project implementation. Local government

or municipal authority should be independent. The central government should provide

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overall master plan and guidelines of the development facilitating service resources, and

funds.

 Establishing decentralization to appropriate levels for achieving greater coordination

among public sector agencies could be a strategy of the plan. To bring about more

balanced urban growth and ease the pressure on the resources and infrastructure of the

bigger cities, the development of pourashavas, is of prime importance. Pourashavas have

the potential to improve living conditions, economy, and infrastructure in short, an

alternative destination for those who would otherwise migrate to larger urban centers.

 Improvements in urban governance for urban poverty must, therefore, be two fold,

including the strengthening of municipal governments with resources and the ability to be

more accountable and responsive to their low-income residents and the argument of

powerful interests necessary to secure commitment at the national level.

4.4 Reduction of the urban poverty

Popular approaches to poverty reduction in Bangladesh have remained focused on rural areas

mainly. A core constant problem has been that urban poverty is not accorded the necessary

priority. Urban poverty rate is the percentage of the urban population living below the national

urban poverty line. Urban poor lack employment and income, got inadequate housing services,

lives in an unhealthy environment with limited social protection. The gap in urban public health

service is also glaring considering Bangladesh‟s remarkable performance in health indicators.

The urban poor are mostly employed in low-paid jobs in the informal sector with limited access

to formal sector employment. They have limited access to land and mostly settle in sub-standard

or poor quality housing built on vacant public and private land. Utility services such as water

supply, sanitation and garbage disposal services are poor in quality or non-existent. They also

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suffer from poor nutrition, insufficient access to health care services and limited access to

education. Extreme poverty in urban areas did not change over time. The proportion of the urban

population living in extreme poverty was 7.7 percent in 2010 and 7.6 percent in 2016.

Considering the rapidly growing urbanization trend, tackling urban poverty will be increasingly

important to achieve the country‟s poverty reduction agenda. Home-based production (or cottage

industry) can be an important income-generating activity among the poor. In view of the

potential importance of home-based production for the urban poor, the regulatory framework

should be adjusted to permit those activities while maintaining safety and providing

infrastructure. The urban local government can provide infrastructure and services which would

increase efficiency and productivity of home-based activities. If proper information and advisory

services can be ensured it can become an income generating source. The 2016-17 Household

Income and Expenditure Survey (HIES), provided poverty estimates at quarterly intervals and at

the district level. These data will allow smarter design and targeting of poverty alleviation

programs.

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Chapter 5

Recommendation
The challenge facing the world today is to minimize the negative effects and build the benefits.

Infrastructure needs to be improved. Opportunities should be created within rural areas to

prevent migration to cities.

The challenges of future urbanization in Bangladesh are gigantic. Poor management, inefficiency

and lack of coordination among implementing agencies combined with insufficient financial

resources have been aggravating the situation. Failure to address them with a strong and

coordinated planning will have disastrous consequences. Sound planning and well thought out

strategy, strong coordination and a compact implementation plan supported by ample finance is

essential.

Other measures to take

- Urban infrastructure improvement policy needs to be taken seriously to mitigate the challenge

of urbanization. It should cover the improvement or expansion of roads and bridges, drainage,

low-cost sanitation, solid waste management, municipal facilities, slum improvement.

- Implementation of Dhaka metropolitan building construction rules. This rule covered mainly

maximum ground coverage of Dhaka. One of the crucial challenges is to create housing for the

overflowed population in Dhaka city. The pressure of urban housing ultimately put focus on

governments land management policies and practices.

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- There need to more private sector participation in delivering solid waste management services.

To ensure a healthy environment proper and secure storage facility for hazardous waste should

be pursued by appropriate safe final disposal. Voluntary services of private sectors are desired.

- CUS (center for urban studies), BELA (Bangladesh Environmental Movement Lawyer

Association), BAPA (Bangladesh Poribesh Andolon- Bangladesh Environmental Movement) are

working with a vision of sustainable city. These organizations need to be supported and

strengthened.

- developed urban transportation system should be embraced by increasing the number of large

sized buses, introducing rapid bus transit, elevated expressways and rail based mass transit

systems.

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Chapter 6

Conclusion
There are lots of challenges in urban environment of Bangladesh have to face to attain

sustainable development. Major challenges in urban sector were housing and infrastructure,

industrialization, lack of land, water supply and waste management. Government of Bangladesh

should address these problems properly and need to take proper plan to overcome these

challenges. Government need to step to aware the people and compliance with the law. It is

tough to face all of the challenges. But the government should prioritize the challenges and need

to resolve these challenges. We should be strategic and stay focused to overcome these

challenges. In every stages of development we have to face new challenges. But it is natural and

we should take a proper plan to face these challenges. In future we need to study on identify the

implementation strategy to sustainable development of urban environment.

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