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Industrial Relocation Effort to Minimize Environmental Pollution: A. PREFACE Surabaya is one of the oldest city in Indonesia.

The evidence of historical heritages shows that the existence of Surabaya has been started since 13 th century, before the colonization era. The colonization era in Surabaya started since Dutch landed in Surabaya at the early of 15th century. Dutch built Kalimas River fortress in this period and it fostered Surabaya became a center of East Indies Commerce in North part of Java. Commercial area grew in the downstream of Kalimas River, and then followed by the growing of residential area to the upstream. There were various kinds of ethnics live in the area such as: Dutch, China, and Arabic. Development of Surabaya in the earlier era city was linier the North – South side by side with Kalimas River. The development of Surabaya in the North side spurred by Tanjung Perak Seaport in the middle of 15 th century and followed by the development to the South using the river transport line that connecting the South and the North part of the city. Surabaya has a very strategic position as a regional development center in East Indonesia. Surabaya development is an integrated part of national development and it can not be separated from the development of surrounding regions. In East Java Province, Surabaya has important role in industry, trade, maritime and education activities. Local trades in Surabaya serve more than 4 million inhabitants and serve the demand of regional and national for goods and services. For such reason development in Surabaya must be integrated, useful and productive. Strategy to improve and to develop of city potency and utilization of recourses must be applied to make Surabaya be able to compete in the global market. Surabaya area is about + 32,636 hectares. Urban infrastructures namely: seaport, container terminal, international airport, bus and railway station, are available to serve the need of the city. Human resources and strategic location are the supporting factors for the development of Surabaya. The development of Surabaya makes the city becomes dynamic. Urban development in Surabaya makes the city change dynamically in many aspects. The dynamic city development is the need of the people to improve their life. The

problem is to control the development of the city so that it can be useful for society. The development of Surabaya provides improvement of urban activities, among others: industry, houses and services. Improvement of such activities in the city center can cause environment pollution. This phenomenon has been identified and be analyzed, so, as result, the industry activities have to move on to fringe area. A. PREFACE Surabaya is one of the oldest city in Indonesia. The evidence of historical heritages shows that the existence of Surabaya has been started since 13 th century, before the colonization era. The colonization era in Surabaya started since Dutch landed in Surabaya at the early of 15th century. Dutch built Kalimas River fortress in this period and it fostered Surabaya became a center of East Indies Commerce in North part of Java. Commercial area grew in the downstream of Kalimas River, and then followed by the growing of residential area to the upstream. There were various kinds of ethnics live in the area such as: Dutch, China, and Arabic. Development of Surabaya in the earlier era city was linier the North – South side by side with Kalimas River. The development of Surabaya in the North side spurred by Tanjung Perak Seaport in the middle of 15th century and followed by the development to the South using the river transport line that connecting the South and the North part of the city. Surabaya has a very strategic position as a regional development center in East Indonesia. Surabaya development is an integrated part of national development and it can not be separated from the development of surrounding regions. In East Java Province, Surabaya has important role in industry, trade, maritime and education activities. Local trades in Surabaya serve more than 4 million inhabitants and serve the demand of regional and national for goods and services. For such reason development in Surabaya must be integrated, useful and productive. Strategy to improve and to develop of city potency and utilization of recourses must be applied to make Surabaya be able to compete in the global market. Surabaya area is about + 32,636 hectares. Urban infrastructures namely: seaport, container terminal, international airport, bus and railway station, are available to

serve the need of the city. Human resources and strategic location are the supporting factors for the development of Surabaya. The development of Surabaya makes the city becomes dynamic. Urban development in Surabaya makes the city change dynamically in many aspects. The dynamic city development is the need of the people to improve their life. The problem is to control the development of the city so that it can be useful for society. The development of Surabaya provides improvement of urban activities, among others: industry, houses and services. Improvement of such activities in the city center can cause environment pollution. This phenomenon has been identified and be analyzed, so, as result, the industry activities have to move on to fringe area. Relocation of production and industrial relations The transfer by multinational companies of production activities from one country to another has become an important issue in industrial relations across Europe and especially in those western European countries that have seen a number of high-profile cases of outward relocation over recent years. This comparative study looks at the nature and extent of relocation of production and its significance for industrial relations, before examining national debates on the matter and the influence of industrial relations on relocation decisions and their implementation.

Relocation of production, whereby a firm transfers all or part of its production facilities from one country to another, is becoming an increasingly important topic for industrial relations - sometimes more than might be expected from what appears to be the actual extent of relocation processes. Relocation of production (also known as 'offshoring' or 'delocalisation') represents one of the most concrete and potentially visible aspects of the internationalisation, or globalisation, of the economy and, at the same time, usually involves restructuring and often workforce reduction in the countries where the activities to be relocated were formerly carried out.

For these reasons, relocation processes concern those who are responsible for economic policy at local and national level, since they can have an impact on economic growth and employment levels and represent an indicator of the attractiveness of specific locations for direct investment. Similarly, they attract the attention of the social partners. Trade unions are mostly interested in the economic and social impacts of relocation on the areas affected and are notably concerned about the consequences for the workers involved. Employers' organisations often underline the pressures of international competition and demand the promotion of conditions favourable to businesses, in order to avoid deindustrialisation and ensure the development of domestic economic activities, with a view to fostering economic growth and preserving employment levels. At the same time, relocation of production is usually a source of conflict and disputes at company level and often becomes a topic of collective bargaining, thereby becoming an obvious industrial relations issue. Relocation of production is a source of concern for industrial relations actors essentially when it relates to outward transfers of production, as it is far less conflict-ridden when it comes to inward movements. However, the state of industrial relations at the 'destination point' of the relocation should not be regarded as unproblematic. In fact, when labour regulation and industrial relations systems are among the reasons for relocation, it becomes evident that the question of supporting appropriate collective labour relations in destination countries may be part of the objectives of social partners and policy-makers at both the originating and destination locations. Since the start of the debate on the consequences of the internationalisation of the economy and the emergence of global production networks in the early 1990s, industrial relations researchers and practitioners have focused attention on the possible impacts on labour relations of the increased mobility of capital and of the growing bargaining power of firms vis-à-vis workers and trade unions. According to some observers, actual or even threatened relocations might trigger forms of concession bargaining and lead to 'regime shopping', whereby firms search for the locations that they believe can guarantee the most convenient regulatory regime (supposedly with a low level of labour protection), while governments and unions find it increasingly hard to resist the demands for deregulation of labour markets

and reduced labour protection, since they try to preserve existing economic activities and employment (or to attract new activities and increase employment). From this perspective, a possible outcome of such pressures on regulatory frameworks may be a 'race to the bottom' in terms of labour standards. However, many analyses and comments have underlined that this can be regarded as only a partial picture of the mechanisms at work, since institutional arrangements, including labour regulations, can represent valuable assets for firms insofar as, for instance, they can support workforce cooperation or help to provide high skills. Moreover, the costs of relocation may in many cases outweigh the expected, but often uncertain, benefits. Therefore, incentives for relocation are far from being straightforward and patterns of capital mobility do not show any general tendencies and are quite complex and varied.

The study presents:
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some considerations on the different aspects of relocation of production, with a view to understanding its relevance for industrial relations; a general assessment of the trends and prevalent features of relocation of production in European countries in recent years; a brief description of the importance and content of national debates on relocation, focusing in particular on the positions of the social partners; and an overview of the influence of industrial relations on the management and implementation of relocation of production at decentralised level.

The study is based mainly on contributions from the European Industrial Relations Observatory(EIRO) national centres in the 26 countries concerned. It provides an overview, and readers should refer to the individual national contributions for further and more in-depth information on specific countries. A complex phenomenon Relocation of production is much discussed in public debate and often treated as a relatively straightforward issue. However, in reality, it is quite a complex

phenomenon and should be considered as one of the effects of other dynamics rather than a process in its own right. As will be seen below, even data collection is quite difficult, since production transfers are hidden in the broader data on foreign direct investment, and discussions can often rely only on media reports, anecdotal evidence or, at best, ad hoc analyses. Off shoring is a component of an increasingly internationalised economy, with higher mobility of capital and a different and more dispersed organisation of production, where firms search for the most convenient locations, depending on their branch of activity and key market features, including notably the main drivers of competition. In this broad context, however, individual cases of relocation can relate to quite different situations which, in simple terms, may be exemplified by three distinct circumstances: 1. a long-term trend, whereby certain activities face a steady decline in a particular country and domestic production is replaced by imports either from foreign competitors or from domestic producers relocated abroad (or sometimes through domestic producers subcontracting to foreign firms); 2. a reorganisation of a multinational company, whereby production (as well as investment) is allocated among different existing plants. These relocation decisions may depend on the internal company structure as well as on the opportunities provided by local conditions. For instance, the existence of underutilised capacity or of pre-existing large investment in equipment in certain locations can favour the concentration of production in such sites (due to the influence on decisions of 'sunk costs'- ie costs that have been incurred and cannot be recovered). In general, it is possible to say that the logic of these decisions can be similar to company restructuring within national boundaries; or 3. a decision to discontinue production at one site and to transfer it to a new one abroad, with a view to reaping the benefits provided by the new location. 4. Relocation in the sense used in this comparative study is closer to the situations depicted in the second and third examples above, since we refer essentially to cases where all the locations involved belong to the same transnational employer. Therefore, both substitution of domestic production

by imports and subcontracting to foreign firms are excluded here. In particular, domestic production replaced by imports from domestic producers relocated abroad falls under the third situation, while subcontracting to foreign firms would be defined as restructuring, even if it must be said that the reasons underlying this strategy are probably very similar to those on which relocation of production would be based. The main differences between this sort of restructuring and relocation are probably the lack of capacity to establish a foreign location, as may be the case for many small and medium-sized enterprises (SMEs), or the wish to increase the adaptability of the production structure by relying more on external and possibly flexible contractual relationships than on internal structures, in other words relying more on 'buying' than on 'making'. 5. Moreover, relocation should not be confused with expansion abroad that leaves existing sites untouched in terms of production or employment levels and merely increases the overall production capacity or intends to create platforms to serve foreign markets. However, it should be noted that reorganisation and relocation decisions are not a one-off exercise. Once a foreign site is established, the opportunity to relocate production there could emerge for the same reasons outlined above (for instance, lower production costs and easier market access) and with far less expense or uncertainty, since the potential of the new plant has already been tested. Similarly, relocation can be a progressive and cumulative process, whereby more complex and critical activities are transferred after simple and low valueadded ones have been successfully moved initially. At the same time, activities that were formerly transferred can be moved back to the original location, if the decision proves to have been misplaced and the expected benefits are not achieved. This inherent dynamism of business decisions adds further to the complexity of relocations and makes it even more difficult to appreciate the scope and extent of the phenomenon

The role of industrial relations Despite all the different possible situations that can involve a transfer of production capacity abroad, there is a basic common feature that characterizes all relocation processes, as they are defined for this comparative study: a comparison among different locations, whereby one is eventually preferred over another for hosting certain activities. Whether this amounts to a 'zero-sum game' among the various sites, with clear winners and losers, depends on the specific conditions that accompany the transfer of production and whether it is a simple relocation or a more complex reorganization of activities across different locations, with more balanced pay-offs. In general, relocation decisions are likely to prompt conflict between trade unions and employers, notably at the plants affected by outward transfers. As a consequence, industrial relations processes and structures often contribute to defining the actual impact of offshoring at decentralised level. However, the role of industrial relations is potentially and often practically more significant, since they may influence relocation of production in different ways, as follows. 1. On a general level, industrial relations can contribute to setting the conditions that make specific locations more or less attractive for investment. This can refer to the role of social partners in the definition of economic, industrial and social policies. Policies and conditions set with a contribution from social dialogue may help not only to attract foreign investment, but also to retain domestic investment. 2. More specifically, industrial relations and collective bargaining contribute to defining the regulation of labour and some decisive components of labour costs, notably including collective wage rates. The degree of labour market flexibility can be significantly influenced by industrial relations, as can the features of vocational training systems and, as a consequence, workforce skill levels. Moreover, the collective relations climate and the balance between conflict and cooperation at all levels may be taken into consideration when a relocation decision is being considered, together with all the other variables affected by industrial relations.

3. Finally, turning to probably their most evident role, industrial relations are often involved in the management of relocation processes, since information, consultation and negotiations generally have a role in defining some elements of transfers of production. This notably refers to the impact of outward relocation on the workers involved, since consultation and collective bargaining may contribute to, for example, introducing and setting severance payments and redundancy compensation, or making available retraining and outplacement services. These collectively-agreed conditions may supplement the mandatory schemes that exist in many countries to handle restructuring and collective dismissals (TN0107201S). Indeed, the same mandatory schemes may require the involvement of the social partners and promote the role of industrial relations, as with the rules on collective redundancies set out in EU legislation. 4. Therefore, it is possible to distinguish between the impact of industrial relations on the reasons for relocation (points 1 and 2 above) and on its effects (point 3). Such a distinction is also linked to a difference in time horizon, since reference to the drivers of relocation decisions implies a medium- to long-term perspective, while management of the impact of transfers of production often imposes short-term goals. Rather than pointing to a structural difficulty or even contradiction in addressing the issue of transfers of production, these different aspects draw attention to the importance of an integrated approach, whereby due consideration of shortrun effects can be combined with awareness of the reasons underlying relocation decisions and the need to design policies to foster both the attractiveness and the competitiveness of domestic locations. As will be seen below, the positions of the social partners underline the importance of this challenge.

Importance of relocation processes and recent trends Attempts to assess the scale of relocation processes and recent trends in this area are confronted with a substantial lack of clear-cut indicators. One approach might be to analyse data on employment levels in different sectors in order to identify branches where there has been a net decline in a particular country - these jobs

might have been transferred to other countries. In a sense this is probably true, but in fact this simply means that they have been substituted by jobs in firms abroad. When we talk about relocation, according to the definition adopted in this comparative study, we refer to firms that deliberately transfer production from one country to another. In other words, we need data on transnational companies that reallocate their production capacity to existing or new foreign locations. The importance of relocation in national debates The sensitivity and topicality of relocation of production is essentially linked to outward transfers, due to their direct impact on employment, their connection with concerns about the competitiveness of firms and their common association with the challenges of a globalised economy. As a consequence, it is not surprising that the debate on relocation is more developed in countries where the fears of losing competitive advantages to emerging and low-cost economies are high - see table 3 below. Conversely, the issue of delocalisation is marginal in countries where inward relocation prevails, though the picture is changing to some extent in a number of these countries, as new trends are emerging. In general, the EIRO national reports confirm that outward relocations characterise EU 15 countries, while inward transfers affect to a greater degree CEECs. CEECs also benefit from relocations from non-European countries, especially by US-, Japan- and Koreabased multinationals, which set up in, or move to, these countries their production facilities designed to serve the European market. Accordingly, the issue of relocation is more relevant for governments, social partners and the public at large in western Europe than in the CEECs. Finally, in Baltic countries, where the impact of either inward or outward relocation has been particularly limited, the importance of delocalisation in the national debate and for the social partners is especially low (see table 3). However, some specific features should be pointed out. Ireland has long been, and still is, a preferred destination for FDI and relocations, especially in the information and communications technology (ICT) sector and in services. Ireland thus appears as an intermediate case, where the two-fold nature of relocation is clearly evident and the challenge - faced by all European countries - of combining policies to attract foreign investment, especially in high value-added activities, and

to avoid relocations of low-skilled and labour-intensive productions, is maybe more evident. In central Europe, the case of Slovenia is to some extent atypical for an area where inward relocations seem to prevail, since outward transfers of production to neighbouring countries and sometimes China are reportedly predominant, mainly in labour-intensive, low value-added sectors. Also among new EU 10 countries, the same can be said of Malta, where relocations to eastern Europe or northern Africa are threatened and implemented to an increasing degree, and Cyprus, where the delocalisation of most of the textiles and garment industry to eastern Europe and the Middle East has been accomplished in the latest decade. Finally, in central Europe the position of some of the countries that were among the main destinations of delocalisation in the 1990s, such as Hungary and the Czech Republic, is changing, as they seem to be increasingly targeted for the location of higher-quality and higher value-added activities, including in the service sector, while cases of outward relocation of lower value-added production are emerging, for instance in the textiles and metalworking sectors. Here, again, it may be possible to speak of 'intermediate' positions, as in Ireland, where policymakers and the social partners are confronted with new challenges. The prevalent direction of relocations from EU 15 countries to CEECs or Asia, especially China, as reported from many countries, suggests that firms are apparently searching for locations that allow lower production costs, including labour costs, and provide easier access to expanding markets in lower-income economies. The products affected are prevalently those characterised by mature markets, where the competitive edge of costs and prices is often decisive. The main sectors where this is reported are car manufacturing and automotive components, textiles and clothing, shoes, metalworking, and electric appliances and components - see table 3 below. These are important traditional mass-production sectors, which often require relatively simple technologies and a low-skilled labour force. As a consequence, the impact on employment levels in the countries from which the production is being relocated can be substantial and the need for retraining and reskilling can be great. This is an increasing source of concern in the European countries where outward relocations prevail. Bangladesh and Industrial Sector Industry

Bangladesh will have within a decade a sizable industrial sector where manufacturing will account for at least 25 per cent of the GDP and at least 20 per cent of the employed workforce. This will mean a considerable rise from the figure of 10 per cent around which the sector's share in GDP and employed population have hovered for most of the past two decades. A vibrant and dynamic private sector will be the principal actor in Bangladesh 's industrial arena. The industrial sector of Bangladesh will be competitive in the liberalized internal market as well as in the external market. The industrial sector of Bangladesh shall have a dominant export orientation. The goal of external competitiveness implies the pursuit of industrialization in accordance with the dynamic comparative advantage of the economy. Given Bangladesh 's resource endowment, the principle of dynamic comparative advantage means production of labor intensive manufactures with skill upgradation and productivity growth as its cutting edge. This however, does not preclude the possibility of Bangladesh having a niche high-tech industrial subsector that may be externally competitive. Dispersal of small and medium industries will constitute an important element in the industrial policy approach. Industrial development will be sustainable from the point of view of environmental concerns and resource availability. Industrial Policy 1999 aims at addressing these concerns building on earlier efforts and gains towards industrialization of Bangladesh economy. INFRASTRUCTURAL IN BANGLADESH FACILITIES AND UTILITY SERVICES

GENERAL: The investors will, in general, find the infrastructural facilities and utility services available in Bangladesh to be adequate. Bangladesh is now trying to establish itself as the next rising star in South Asia as a location for foreign investment. The government has implemented a number of policy reforms designed to create a more open and competitive climate for private investment, both foreign and domestic. The issues relating to infrastructural facilities and utility services have been given high priorities in those policy reforms and implementations.

COMMUNICATION: The transport sector of Bangladesh consists of a variety of modes. The country being a flat plain, all three modes of surface transport i.e. road, railway, and water are widely used in carrying both passengers and cargo. More than half of Bangladesh has access to an all-weather hard surface road within three miles distance. There has been a dramatic expansion of road network in recent years. In 1997, the total length of paved road under the Roads and Highways Department stood at more than 20,000 kilometers. It is increasing over time. It is estimated that mechanized road transport carry about 70% of the country's total passenger and cargo volume. Ports and important business centers are well connected by roads and highways. In recent years, construction of a number of bridges such as the Bangabandhu Jamuna Bridge , Meghna Bridge ,Meghna-Gumti Bridge , Bangladesh China Friendship Bridge , Shambhuganj Bridge and Mahananda Bridge have been completed. The 4.8 kilometer long Bangabandhu Bridge which has been opened to traffic in June, 1998, is the eleventh longest in the world. It has established a strategic link between the East and West of Bangladesh, has integrated the country, is generating multifaceted benefits to the people and promoting inter-regional trade. Apart from quick movement of goods and passenger traffic, it is facilitating transmission of electricity and natural gas and has integrated the telecommunication link. About 32% of the total area of Bangladesh is effectively covered by the railways. It connects all the administrative and business points of the country. Railway container service from Chittagong port to Dhaka are available. About two-thirds of Bangladesh is a wetland laced with a dense network of rivers, canals and creeks. The navigable waterways vary between 8372 kilometer during the monsoon to 5200 kilometer during the dry season. Bangladesh Inland Water Transport Authority has been established by the government for maintenance of navigability of ports and channels. The entire coast along the Bay of Bengal is 710 Kilometer long. There are two major ports in the country. ChittagongPort , the oldest port, has been an entry point for at least 1000 years. The Mongla Port in Khula region serves the western part of Bangladesh . World‟s reputed shipping lines are operating through these two ports.

There are now 11 operational airports in Bangladesh . Of these, the airports at Dhaka, Chittagong , and Sylhet serve international routes. WATER: Water is supplied by the Water and Sewerage Authority (WASA) in the metropolitan areas. Very high priority is attached regarding availability of water in industrial areas. GAS: Natural gas supply is available in major industrial areas. TELECOMMUNICATION: Comprehensive telecommunication services such as fully automatic telex, fax, e-mail, internet, telephone including international direct dialing are available. ELECTRICITY: In Bangladesh , electric power is generated in hydro, steam, gas-turbine, and diesel power plants. All the generating stations are interconnected through a national grid. INDUSTRIAL LAND : Once an industrial project is registered, the entrepreneur is eligible to apply for allotment of land to the government. Price of land in most of the industrial estates/ areas is relatively lower than the market rate. These estates are developed with necessary infrastructure facilities such as electricity, gas, water, sewerage, etc. Industrial plots are allotted by Bangladesh Export Processing Zones Authority (BEPZA) and Bangladesh Small and Cottage Industries Corporation (BSCIC) in industrial areas developed by them. Plots in other industrial estates/areas, owned by the government or owned/controlled by any local authority, are allotted on the recommendation of the Board of Investment (BOI). Ready-made Garments The ready-made garment industry in Bangladesh is not the outgrowth of traditional economic activities but emerged from economic opportunities perceived by the private sector in the late 1970s. Frustrated by quotas imposed by importing nations, such as the United States , entrepreneurs and managers from other Asian countries set up factories in Bangladesh , benefiting from even lower labor costs than in their home countries, which offset the additional costs of importing all materials to Bangladesh . Bangladesh-origin products met quality standards of customers in North America and Western Europe , and prices were

satisfactory. Business flourished right from the start; many owners made back their entire capital investment within a year or two and thereafter continued to realize great profits. Some 85 percent of Bangladeshi production was sold to North American customers, and virtually overnight Bangladesh became become the sixth largest supplier to the North American market. After foreign businesses began building a ready-made garment industry, Bangladeshi capitalists appeared, and a veritable rush of them began to organize companies in Dhaka, Chittagong, and smaller towns, where basic garments-men's and boys' cotton shirts, women's and girls' blouses, shorts, and baby clothes--were cut and assembled, packed, and shipped to customers overseas (mostly in the United States). With virtually no government regulation, the number of firms proliferated; no definitive count was available, but there were probably more than 400 firms by 1985, when the boom was peaking. After just a few years, the ready-made garment industry employed more than 200,000 people. According to some estimates, about 80 percent were women, never previously in the industrial work force. Many of them were woefully underpaid and worked under harsh conditions. The net benefit to the Bangladeshi economy was only a fraction of export receipts, since virtually all materials used in garment manufacture were imported; practically all the value added in Bangladesh was from labor.

SMALL AND COTTAGE INDUSTRIES 1. Small Industry means an industrial undertaking engaged either in manufacturing process or service activity whose total fixed investment excluding the prices of the land, expenses for inland transportation and commissioning of machinery appliances and duties and taxes , is limited to taka three crore i.e. Tk. 30 million (including initial working capital). In the case of BMRE, even of the total investment limit exceeds Tk. 30 million, it would still be considered as a small industry. However , the extent of extended investment for BMRE shall not be more than 50% of the total investment limit. 2. 'Cottage Industry ' means an industrial unit either engaged in manufacturing or servicing generally run by the family members either as full time or part time and the total investment is limited to taka five lac (Tk.500, 000). 3. For the development and expansion of Small and Cottage Industries, BSCIC will be responsible for the registration, determination of import entitlement of raw materials and packing materials, issue of import pass book recommendation for local raw materials, allotment of land in its own industrial zones, and also for providing assistance in all other matters. 4. BSCIC will provide financial types of small and cottage industries; in this case, BSCIC shall have to mobilize its own fund. The fund to the banks may not be utilized for this purpose. 5. During the selection of investors for small and cottage industries, special priority shall be given to women educated unemployed, skilled technicians, laborers, engineers, wage- earners and those depended upon them. 6. Small Industries of the textile sector will enjoy similar facilities as those of small and cottage industries from the Bangladesh Small and Cottage Industries Corporation. 7. BSCIC will continue its efforts in creating infrastructure facilities in the growth centers similar to those available in the industrial estates. In the regions, where there are no industrial estates, the relevant authorities on the recommendation of

BSCIC, will provide infrastructural facilities to the small and cottage industries on a priority basis. Irrespective of the amount of investment, BSCIC will approve the plans and lay-outs of the buildings of all the industries situated in the BSCIC, industrial states and are their controlling authorities, but for the sake of expansion of small industries, no permission shall be granted for the establishment of any new large or medium industry in the BSCIC industrial estates. 8. To assist in the marketing of products of small and cottage industries, the government, semi-government and autonomous bodies will ensure the purchase of these products, as per rules and the government purchase policy. By utilizing their own funds, the Thana Parishads will also try to support BSCIC and the related institutions by organizing fairs and exhibition, setting up of sales and exhibition centers and providing infrastructural facilities like setting up of special Hat Corner. 9. The Jurisdiction, Sector and amount of investment and the type of production to be controlled by the Board of investment and the BSCIC will be clearly demarcated. 10. Small and cottage industries which have been granted credits by financial institutions/banks must be registered with BSCIC. 11. A Review committee will be formed in the Ministry of Industries with members from BSCIC, Bangladesh Bank, relevant banks/financial institutions and representatives from Chamber of Commerce and Industry and NASCIB for reviewing the implementation of the investment schedule of the small and cottage industries and monitoring the credit, policy being followed by the banks and other financial institutions. 12. Machinery/spare parts required by the new and existing heavy and medium industries and Government. Semi-Government and Autonomous bodies have to be procured from small industries and in these cases subcontracting will be given preference. 13. In addition to the existing facilities, the following special incentives and facilities will be provided to intensify the expansion of small and cottage industries: a. Small Industry Credit Guarantee Scheme will be introduced with joint collaboration of Bangladesh Small and Cottage Industries Corporation,

Government / Private General Insurance Corporation, Government / Private General Insurance Corporation / companies. b. Based on the recommendation of the BSCIC, the National Board of Revenue will provide tax holiday to appropriate small and cottage industries. c. To assist the sub-contracting banks and financial institutions will make provisions for funds in accordance with their rules; the sub-contracting industries shall enjoy incentives and facilities similar to those provided in the SCI sector irrespective of their locations. Traditional and other sectors Traditional Sectors The industrial sector produces around 10 percent of GDP, and long-term national strategies in the late 1980s did not anticipate a major increase in that percentage. The greatest need and the greatest opportunities remained predominantly in the agricultural sector. Eastern Bengal was known for its fine muslin and silk fabric before the British period. The dyes, yarn, and cloth were the envy of much of the pre modern world. Bengali muslin, silk, and brocade were worn by the aristocracy of Asia andEurope . The introduction of machine-made textiles from England in the late eighteenth century spelled doom for the costly and time-consuming handloom process. Cotton growing died out in East Bengal , and the textile industry became dependent on imported yarn. Those who had earned their living in the textile industry were forced to rely more completely on farming. Only the smallest vestiges of a once-thriving cottage industry survived. At independence, Bangladesh was one of the least industrially developed of the populous nations. Annual per capita consumption of steel and cement was only about one-third that of India , for example, and electric power consumption per capita was less than one-fifth. Other Industries Not all industrial growth in Bangladesh was stimulated by anticipation of foreign sales. The national economy stood to benefit equally from domestic production that could eliminate the need for imports of one kind or another. A good example of import substitution manufacturing was the pharmaceutical industry, a field that

attracted both foreign and domestic investment in the first decade of independence, based on the large potential domestic market. The Drug Ordinance of 1982 introduced controversy and claims by foreign firms that they were victims of discrimination vis-à-vis local pharmaceutical firms. The foreign firms found that the ordinance restricted the kinds of drugs they could manufacture, import, and sell; specifically, foreign pharmaceutical firms could no longer manufacture drugs that Bangladeshi-owned companies were capable of producing. The difficulties foreign investors have encountered seem to have been limited essentially to this one industry, and even there the foreign firms already established have managed to cope more or less successfully. In 1988 one United States firm announced a decision to expand its Bangladeshi manufacturing operations by moving into production of highly specialized medicines with greater profit margins. Public sector corporations produced a substantial part of the country's paper and newsprint requirements, as well as carrying on sugar-refining operations at modest-sized mills in several parts of the country. They also produced about 100,000 tons of steel per year, 1 million tons of petroleum products, and gasoline pumps, radios, television sets, bicycles, paints and varnishes, cement, and industrial chemicals. INDUSTRIAL SECTOR EXPANSION MEASURES As a complement to building a vibrant economy and achieving a sustainable growth, the government has been taking comprehensive package of measures for expansion of the industrial sector and consolidation of the industrial base for the last few years. Moving along the path of free market economy, almost all industries except defense have been made open to private sector. To accelerate the pace of industrialization, the process of approval of projects has been simplified. Identical provisions have been made in respect of bank loans, tax holiday, duty concessions and extension of other facilities for setting up industrial projects without any discrimination between the local and foreign entrepreneurs.

Apart from guarantee for full security of investment and arrangement for easy repatriation of dividends and invested capital, provision has also been made to grant permanent residence/citizenship to foreign entrepreneurs making large investments. The Privatization Board has been transformed into the Privatization Commission and strengthened further to expedite transfer of public sector industrial units as well as government shares in other industrial enterprises to the private sector. A good number of government-owned industrial units and government shares in other industrial enterprises have already been off-loaded to private hands. In order to rejuvenate the prospective sick industries, a Special Committee has been formed for identifying such industries and allowing remission of interest on loans taken by them. Based on recommendations of the committee, the government will pay 50% of the interest remission in the form of bonds to the concerned banks. A number of fresh measures has been taken during the year under report under the new industrial policy of 1999 for development and nourishment of industrial sector. With a view to creating funds for long term industrial finance, arrangement has been made for issuance of 5- year and 7-year government-guaranteed Industrial Development Bonds worth Tk.500 crores through the Agrani Bank, and 5-year Bangladesh Industrial Development Bonds worth $100 million through the Sonali Bank. For enabling financial institutions to provide long term industrial finance as well as strengthening the capital market of the country, a US$57.69 million Financial Institutions Development Project (FIDP) has been put in place during the year under report. Technical and financial assistance will be given to the financial institutions from this project in securitization of their loan/lease and issuance of their medium and long term debentures/bonds. Two new organizations, namely, the Infrastructure Facilitation Center and the Infrastructure Development Company Limited have been established to help development of industrial infrastructure in the country. Necessary law has been enacted for establishment of Private Export Processing Zones (PEPZ) in the country. Initiative has already been taken to set up four

PEPZs, one each at Mongla, Ishwardi, Saidpur and Comilla. Besides, the process of establishment of 5 Industrial Parks and High-tech Parks in the country has been started. As a result of these measures, the potential for strengthening of the pace of industrialization in the country has been brightened. A total of 1,563 industrial projects involving a total investment outlay of Tk.17, 215 crores (1428 local and 135 joint venture/100% foreign) were registered during 1999-2000. The amount of investment during the year was 15.4 per cent higher than in the previous year. Alongside increased registration of industrial projects, the amount of industrial loans disbursed during the year also increased. Compared to the level in the preceding year, the amount of working capital finances and term loans disbursed in the industrial sector during 1999-2000 increased by 33.3% to Tk.12,309 crores (wthe previous year. Alongside increased registration of industrial projects, the amount of industrial loans disbursed during the year also increased. Compared to the level in the preceding year, the amount of working capital finances and term loans disbursed in the industrial sector during 19992000 increased by 33.3% to Tk.12,309 crores (working capital Tk.10,681.74 crores, and term loans Tk.1,627.26 crores). The Credit Guarantee Scheme which was introduced for encouraging expansion of employment creating and income generating small industries by mobilizing small entrepreneurial initiatives in the country remained in operation during the year under report. Credit covered by guarantee under the Scheme against loan given to investors in small industries stood at Tk.27.23 crores as on 30th June, 2000. Under the Khudra Uddyog Rin Karmosuchi (Small Initiatives Credit Scheme) introduced for self-employment of the voluntarily retired officers/staff, a total of Tk.4.92 crores were disbursed up to 30th June,2000 against which refinance provided by Bangladesh Bank stood at 3.69 crores.

Xxxxxxx In 1972, the year after its establishment, Bangladesh nationalized most of its industries and set up nine corporate conglomerates to oversee the state-owned enterprises (SOEs). The lack of commercial orientation inhibited investment and growth, including in the traditional jute industry, and the emerging leader, the garment industry. From the mid-1980s, the government shifted to encouraging private investment, but the industrial sector remained closely regulated. In 1991, in the post-Cold War international environment, and with the end of military rule, the government inaugurated a new Industrial Policy planning investment liberalization, the interim restructuring of several large parastatals, as well as the gradual privatization of public enterprises in all but the airways, railways, and mining sectors. Political resistance to privatization was very strong, and in the early 1990s restructuring resulted in some output decline. With a new government, in the period 1996–2001, 33 SOEs were sold by the state, but the Economist Intelligence Unit reported that these were smaller operations, and that the divestments did not significantly lessen the government's dominance of the industrial sector. The flood of 1998, which covered about two-thirds of the country, accelerated confrontational politics over the SOEs. 1999 industrial growth only reached 2.5% due to flood disruption. The public sector employs about one-third of the formal labor force and accounts for over 40% of the country's manufacturing and utility assets. 1999 industrial growth only reached 2.5% due to flood disruption. The World Bank reports that for the two fiscal years to mid-2001, losses by SOEs rose seven fold, from $80 million to $591 million. According to the Asian Development Bank (ADB), the garment industry, which employs 1.5 million workers, about 80% of whom are women, has been adversely affected since 2000 by US grants of quotas and duty-free access to Sub-Saharan African countries. By ADB figures, Bangladesh garment exports declined 4% to 6% June to August 2001. In fiscal 2000/01 the leading industrial goods produced and their increases or decreases by volume included jute products, 380,00 tons, up 11%; textile yarn (produced by SOEs), 58.5 million kg, up 2%; textile fiber products (produced by SOEs),11.7 million kg, down 0.8%; paper, 55,000 tons, up 0.7%; petroleum products, 1.5 million tons, up 15%; fertilizers, 1.8 million tons, down 5%; cement,

157 million tons, up 13%; sugar, 177,000 tons, up 43%; ready-made garments, 68.2 million, up 2.3%; mild steel rod, 142,000 tons, up 7.6%; tea, 52,725 tons, down 2.7%; leather and leather products, 22.5 million sq m, up7.8%; and soaps and detergents, 48.3 million tons, up 1.3%. By value of export receipts, the leading manufactured exports in 2000/01 were ready-made garments ($3.3 billion), knitwear ($1.4 billion), frozen food ($370 million), leather products ($234 million) and jute products ($222 million). Raw jute exports brought in $66 million and tea exports earned $24 million in 2000/01. Recent discoveries of large natural gas reserves and plans for new power plants throughout the country were slated to boost industrial growth in 2000 and beyond. However, as of late 2002, plans for the development of natural gas resources continue to be delayed by political rows over the participation of foreign companies

Set up industries outside Dhaka, get low-interest loan

st. Dhaka Chamber of Commerce and Industry and SME (Small and Medium Enterprise) Foundation jointly organised the fair where a total of 26 banking and other financial institutions participated to showcase their different financial products and programmes. Hasina asked both the public and private banks to disburse collateral free loan to the SME entrepreneurs and charge low interest from them. She also asked the banks to ease the conditions of giving loan to women entrepreneurs to create more opportunities for them. She said the World Bank has given Tk 112.32 crore to Bangladesh including $10 million fund for re-financing the SME sector. A total of Tk 206.39 crore has been

disbursed among 2,341 SME entrepreneurs from this fund through 14 banks and 14 financial institutions. "I have already held an important meeting with the minister and officials of the housing and public works ministry on how to expand the capital city as it has already become heavily congested," Hasina said. She said the government is now planning to import power from India and Bhutan to meet the growing demand for power in the country. Hasina also said her government making a long-term plan to generate power keeping in mind the demand for it up to 2021. She suggested entrepreneurs for using solar panels in their offices, as prime minister's office is also now using it, to reduce the burden on national power grid. Chairperson of the SME Foundation Aftab-ul Islam and president of Dhaka Chamber of Commerce and Industry Zafar Osman jointly chaired the inaugural session. At the inaugural session Finance Minister AMA Muhith, as a special guest, said the large-scale industries of the country could provide only 12 percent of the total employment generation while the SME sector does the rest. Bangladesh Bank (BB) Governor Dr Atiur Rahman said the central bank had taken a comprehensive programme to promote the SME sector and a separate department had been opened in the BB to this end. Industries Minister Dilip Barua and Commerce Minister Faruk Khan, among others, also spoke at the inaugural session. Most of the garments factories and other small factories have been set up within the area of metropolitan Dhaka city, capital of Bangladesh. It accelerated population growth in the capital. Indeed over population is one of the acute problems in Dhaka metropolis. Number of vehicles exceeded the capacity of roads. Traffic jam has virtually paralyzed the capital. Frequent labour unrest in garment factories creates an unbelievable situation in the capital.

It is high time to re-locate the factories in different districts adjacent to high ways e.g., Dhaka-Chittagong, Dhaka-Sylhet, Dhaka-Barisal, Dhaka- Dinajpur, DhakaKhulna etcetera to reduce population of the capital and reduce labour unrest. The low lying areas adjacent to high way and easy to provide fuel gas and power (electricity) facility are to be given priority. High valued three or two cropped lands for cultivation are to be avoided. The chosen lands are to be developed with silt from nearby river or cannel. Water carrying capacity of the river concerned would be increased that would facilitate increased fish growth and reduce severity of flood effect in monsoon season. The people concerned have to keep in mind that not more than 50 factories should operate in a particular location. It would also help to reduce spreading of labour unrest. Making a hub of factories, now-a day is not a pragmatic decision, as it leads to create an environment that is porn to labour unrest. It is true that garments industry is a major economic sub-sector in Bangladesh economy. To aid the factory owners government has to develop mini industrial villages in different districts by the high ways that would create atmosphere for re-location of the garments and accessory factories and for setting up new factories. Developing mini industrial villages by the high ways would facilitate employment to workers of different geographic locations. Engagement of manpower with low cost by the entrepreneurs would be easy. The workers would be able to have opportunity of job in nearby locality from their residences. Problem of housing, education to their kids, medical service etcetera would be relatively easier comparing to costly Dhaka city. Re-location of factories would aid to reduce traffic jam in the capital as well. It would help to reduce population of the capital to a mentionable extent. To develop a habitable environment in the capital, these difficult functions are to be performed. We have no time to wait. Bangladesh Small and Cottage Industries

Corporation with the active aid by relevant ministries needs to take projects to perform the difficult works.

DCCI for four industrial zones around Dhaka Star Business Report The Dhaka Chamber of Commerce and Industry (DCCI) yesterday urged the government to set up four industrial zones around Dhaka to decongest the city, during a meeting with Industries Minister Dilip Barua. The chamber leaders call for efforts to fix energy and transportation problems and reduce banks' lending rates for rapid industrialisation. They said the absence of technological know-how is the main constraint to achieving industrial goals. The observations came when the newly elected board of directors of the chamber led by its president Asif Ibrahim met the minister at his office, said a statement. DCCI proposed to relocate Old Dhaka's shoe factories and readymade garments manufacturing units in two separate industrial parks outside the city. “Separate

industrial parks for the units could be set up in Sonakanda in Keraniganj,” said Ibrahim. The chamber sought government initiative to develop infrastructure, solve energy crisis, lower bank's lending rates, reform tariff structure, and improve communication systems for industrial growth. The minister said negative politics and propaganda are the key barriers to the country's economic progress. “We need to work together with positive mentality to achieve industrialisation.” Barua said the bank's lending rate should be single-digit to ensure industrial growth, which is around 13 percent currently. Relocation of existing industries from Old Dhaka is under consideration of the government, he added. Ibrahim said the government could use a public-private partnership framework to fix infrastructure problems and power crisis. He emphasised the capacity building of National Productivity Organisation, Department of Patent Development and Trademark and Bangladesh Standard and Testing Institution. “It is also the right time to think over the decentralisation of industrial establishment, which will ease the load of Dhaka city,” said Ibrahim. Industries Secretary KH Masud Siddique, DCCI Senior Vice President TIM Nurul Kabir and Vice President Nasir Hossain, were also

A plan to make Dhaka city free from chaos A city of the size of Melbourne, Australia is nearing the population of entire Australia. Serious gas, electricity, water crisis, massive traffic congestion, water logging after mild to moderate rain, air pollution, noise pollution, mosquito menace, deteriorating law and order situation, etc., off and on stall city life to a virtual standstill in Dhaka. Government after government talk of remedial measures but fail to do anything. Rather unplanned growth and development complicates situation and compounds problem. Rivers around the city are almost dead, city canals are non existent. We know about these problems. Let us not look

back .Let us see what can be done to confront the crisis at hand. Present government is committed to digital Bangladesh. In this modern age of technology boom is it necessary that all government ministries should remain confined in one place at Bangladesh secretariat? Much of the congestion of Dhaka city will be eased if government ministries can be spread over and across Dhaka's suburbs and adjoining districts. Narayanganj, Savar, Keraniganj and Gazipur can be ideal locations for relocating several ministries. Only the ministries of defence, finance, planning, home, information and foreign affairs can retain their offices in Dhaka and other ministries may be moved out in phases to places outside Dhaka. These ministries can be connected via fibre optic cables and secure VPN... then we are talking about a really digital Government of Bangladesh (GoB). Energy and power, communication, forest and environment, food and agriculture ministries can go to Gazipur, port and shipping, textile, jute and industry can go to Narayanganj, health, education, labour and manpower, science and technology, youth and sports can go to Savar. Commerce, land and cultural affairs ministries can be relocated to Keraniganj. Why can not the Chittagong Hill Tracts (CHT) affairs ministry be based at Rangmati? These ministries can be connected via fibre optic cables and secure VPN. Once relocated after setting up infrastructures the existing facilities of these ministries can be appropriately used. Gazipur, Savar and Narayanganj can have better road and other communications. E-Governance can be put in place. Then gradually all garments factories, leather and other polluting industries must be moved out of Dhaka to specific locations. Major portion of garments industries can go to Keraniganj and Gazaria. Garments pally (village), leather industry to leather complex at Nabinagar. Government must clean residential areas like Dhanmondi, Banani, Gulshan, Uttara, Malibagh, and Lalbagh from all kinds of commercial activities. It is appropriate time to relocate BDR headquarters and army headquarters to appropriate places outside Dhaka. These two establishment situated in congested

city areas are causing serious bottlenecks for traffic movement. Wonder why democratic government cannot take such decisions. What useful purpose these establishments are serving to national cause occupying busy areas in Dhaka city. Why Dhaka Cantonment cannot go to Gazipur and BDR Headquarters to Keraniganj? Simultaneous to above actions, government must connect Narayanganj, Savar, Gazipur and Keraniganj with Dhaka through elevated express highways and fast moving railway. Some multistoried parking facilities must be set up in city centres. More long body NGV buses should be introduced and all old polluting vehicles, slow moving human haulers, mini taxi cabs must be removed as soon as possible. Fifty per cent of city congestion and 50 per cent load on city utilities will be relieved from taking these measures. In the meantime, government must move positively to free city canals and city surrounding rivers of unauthorised occupations, save rivers from pollutions, undertake massive dredging and excavations to retrieve navigability. City circular rail, road and river communication must not remain a dream any more. We should do everything possible to confine Dhaka's population to below 10 million under any circumstances. Otherwise, whatever we do and whatever we plan nothing will work to improve traffic congestion and serious energy crisis. The Prime Minister chairs Cabinet meetings regularly. These meetings occasionally must also be held outside Dhaka to address the problems there. Government must try to cut down its size. It must not involve in day to day business of state-owned enterprises (SOEs). Government's role must be confined to policy making and auditing performance of SOEs. SOEs must run corporate business commercially and be governed by their board of directors. Private sector must be the driving force. Independent regulators must regulate all businesses through transparent policies. It is unfortunate to accept that our loving city Dhaka is the dirtiest and noisiest capital city of the world. We must act positively rising above all political divide to rescue Dhaka from current unbearable situation.

If major government offices including BDR and army installations can be moved out of Dhaka in phases as suggested and if RMG and leather industries can also be relocated, we can gradually make Dhaka habitable for all and return to old lovely Dhaka that we can all take pride on.

Relocation of EU industry - an overview of literature

Executive summary The phenomenon of relocation, sometimes also referred to as delocalization, outsourcing or offshoring, is a subject that often causes popular concerns. To assess whether these concerns are justified, one needs to have a clear and comprehensive overview of the available data on the size and effects of relocation. This study strives to shed some light on key elements by providing a broad overview of the existing literature on relocation. The term itself rather complicated, with no unanimously accepted definition, and

consequently a difficult data analysis background. However, for the purpose of this study, the following definition can be used: "relocation" means the closing or scaling down of a firm‟s activities in the home market following the shifting of parts of the production chain abroad. No data are currently available in Europe to quantify the size of relocation directly. However, several proxies (such as statistics on employment, restructuring, trade and investment and surveys) can be used to get a sense of its magnitude. Even if it is difficult to obtain a comprehensive view, the data derived from these proxies do not provide clear evidence of relocation at the EU level as a whole. Relocation seems to be limited in size and the net effect of relocation on job losses and the European economy seems to be relatively small. However, some sectors and regions seem to have been hit harder by relocation. Data suggest that the sectors sensitive for relocation are: textiles, clothing and leather, electromechanical engineering and the chemical/pharmaceutical sector. Also, looking at the future, worrying signs are the fact that services and R&D are increasingly relocated. Even if the size of this new phenomenon seems to be limited, hard evidence still lacks and the trends are worrying. Turning towards the policy options, most studies propose a balanced approach, tackling the causes of relocation (costs differences and market expansion), while at the same time devising a proactive industrial policy to strengthen the industrial base in Europe, invest in the knowledge society and improve the overall framework conditions.

Introduction The phenomenon of relocation, sometimes also referred to as delocalization, outsourcing or offshoring, is a subject that is receiving considerable attention. Factories closing down and companies moving abroad often receive broad press coverage and cause public concern; a concern that is sometimes echoed by fears that Europe might lose its industry (and maybe also R&D and ICT services) to other, low-cost countries, with significant negative impacts on European employment. To see whether these concerns and fears are justified, one needs to have a clear and comprehensive overview of the available data on the size and effects of relocation. This report attempts to shed some light on key issues by providing a broad overview of the existing literature on this subject. Without striving to be complete, it intends to review the existing evidence and to present the different views that play a role in the public and academic debate. Definitions First of all it is useful to look at what exactly the term "relocation" means. From a review of policy and academic papers and from discussion with stakeholders it becomes clear that a single, clear cut definition of the term does not exist, reflecting the loose boundaries of the concept.1 In many studies, the term "relocation" is used, rather interchangeably, together with other terms, such as outsourcing, offshoring and delocalization. For a better understanding, it is useful to examine in greater detail how these terms relate to one another.

Relocation can be classified using two factors: the location of the business activities (in the home country or abroad) and the way these activities are managed (outsourced to third parties or kept in own management). This provides us with the following chart: 1 See for example: EU Competitiveness and industrial location, Bureau of European Policy Advisers, European Commission, 2005. IP/A/

Relocation is the darker area in the chart and can thus take the form of offshore

outsourcing (outsourcing of business activities to a third party abroad) or of direct foreign investment (relocating production to a foreign branch or subsidiary abroad). Furthermore, it is often associated with the (originally French) concept of delocalization, meaning that the relocated activities need first to have been located domestically. Relocation therefore encompasses both the ideas of „substitution‟ and of „transfer‟.2

Traffic, air to get better if factories relocated Say researchers Tawfique Ali Hundreds of unauthorised factories in the inner-city areas must be relocated to improve the capital's traffic congestion and pollution levels, claim experts. Professor Nazrul Islam, a noted urban researcher, said, “Relocating the garment and tannery industries will significantly help improve the city's messed-up transport situation.” A survey relating to Dhaka's Detailed Area Plan (DAP) shows 12,206 manufacturing industrial buildings occupy 1,528 square kilometres in the area under Dhaka Metropolitan Development Plan (DMDP). This contravenes DMDP (1995-2015), which clearly prohibits any industrial buildings in the Dhaka Metropolitan Police (DMP) area since it was approved in 1997. Over two million garment workers are also living within the DMDP area. Nazrul Islam, also chairman of University Grants Commission, claims this figure is too high. Dr Ishrat Islam, assistant professor of urban and regional planning at Buet, said relocating factories will not only relieve the capital's congested roads, but will also provide the workers with better living standards. She said the foremost reason behind the garment workers' unrest is the deplorable standard of living in shanty towns. She urges the government to establish industrial parks with housing, educational and medical facilities.

Professor Jamilur Reza Chowdhury, a noted civil engineer and transport expert, said most of the industrial workers travel to work along the main roads on foot. As there is often no designated pedestrian footpath, this contributes to traffic congestion. Faruque Hassan, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Daily Star at a workshop on November 1 that at least 1,000 of 4,800 BGMEA members operate factories at the heart of the city. “We want to relocate the units out of the capital. But we cannot get gas or electricity supplies outside,” he said. Shaheen Ahmed, president of Bangladesh Tanners Association, said 65,000 workers are employed at 194 tanning units at the city's Hazaribagh tannery estate. The High Court ruled that tanneries must be shifted to Savar by February 2010, and the industries ministry has handed over 154 plots to the tanners there. However, the tanners are asking for more time to negotiate with the government on compensation. According to a DAP survey, 526 industrial units were set up in the DMP area between 1997 and 2005. AKM Alamgir Kabir Dewan, who did his master's thesis at Buet on industrial distribution and trends, said until 2005, there were 1,120 industrial units in the DMP area, while the number of those set up in the DMDP area between 1997 and 2005 was 998. DMDP earmarks Savar municipality, Dhaka EPZ, Gazipur and Tongi as special incentive zones for industrialisation. Abdul Kader Chowdhury of the Public Works Department division-2 (Dhanmondi) said a government survey found that 147 residential plots in Dhanmondi have been turned into commercial premises, while 261 are being partially used for commercial purposes.

Delwar Hossain Dulal, vice-president of Gulshan Society, said there are at least 100 factories in Gulshan's residential area. “An unauthorised industrial unit is set up in connivance with DCC, Rajuk, Desa, Wasa and Titas Gas officials,” he said. DCC has not issued any fresh trade licences in designated residential areas since 2007, following the caretaker government's decision to halt new trade in those areas. Prof Sarwar Jahan, president of Bangladesh Institute of Planners, said the DMDP structure plan deems industries and factories in the areas in or near the centre of Dhaka city unacceptable.Environmentalist Prof Muzaffer Ahmad said Dhaka's 1954 master plan was designed to protect the residential areas from commercial and industrial invasion. But it has failed in its purpose. The Experience of Industrial Relocation in Korean Cities with special reference on Ulsan Metropolitan City

It is widely known that South Korea has rich experiences of industrial relocation due to her rapid industrialization over the postwar period. Of several cases of industrial relocations in Korea, the case of Ulsan Metropolitan City, where petrochemical and nonferrous metal firms are relocated and concentrated in an industrial park, “Onsan,” is regarded as s showcase with regard to the scale of urban industrial development and its impact on environment. As matter of fact, the issue of industrial relocation is not a brand-new agenda. The industrial relocation and its environmental implication have been long debated among multi-stakeholders, particularly policymakers over recent decades in Asia. In particular, as the robust Asian economy had been emerged since the 1980s,

many Asian city governments had paid special attention on the issue. Because of rapid urbanization driven by economic growth, the city governments in Asia encounter enormous environmental problems. Of several urban environmental problems, the pollution of core area inherited from stationary pollutant sources such as industrial plants is increasingly serious as urban expansion proceeds. Given environmental degradation in built-up areas, the city governments had once enforced to relocate or push out these industrial endowments out of their jurisdiction by either close-down or eviction of polluting industries. Yet, the city governments soon recognized that such legal measure turned out to be “short-eye solution,” only mitigating environmental problems in temporal basis. Currently, the developing Asian cities make intensive endeavor to relocate the polluting industries, including pulp & paper, leather, dying, and others, into industrial parks equipped with centralized pollution treatment facilities. The main concern of industrial relocation remains at how to promote the relocation of individual firms at designated industrial park through effective financial modality, while little attention is paid to the socioeconomic and environmental consequence of industrial relocation in longer perspective However, the lesson drawn from the industrial relocation in Onsan reveals that such an approach would come to end with a burden of socioeconomic and environmental costs unless other significant factors, including institutional capacity (role of local and national governments) and management capability (jurisdiction over planning, implementation, enforcement, coordination, monitoring, other), are deliberately considered at integrated manner. The pitfalls of industrial relocation policy in South Korea drawn from the case of Onsan are several; (1) too

much focuses on the relocated firm; (2) strong priority on financial modality; (3) little attention on environmental consequence of industrial relocation in long-term perspective; and (4) lack of stakeholder participation.

For example, the development process of Onsan industrial park, in which central and local governments allowed target industries to negotiate land acquisition with landlords in order to facilitate the swift completion of industrial relocation, caused reckless industrial estate development. As a result, the governments at both central and local level have been asked to pay unintended costs such as the relocation of residents along with financial compensation due to environment-related diseases. This paper aims to examine what kinds of policy components related to industrial relocation should be considered through reviewing the Korean case of industrial relocation as well as to offer more innovative policy options toward sustainable urban environmental management in Asia. Following brief introduction of urban development in Ulsan, this paper reviews the steps to carry out relocation program and incentives or supporting policies with special focus on the details of development process. This paper is expected to provide relevant policy recommendations for Ho Chi Minh City in the progress of their pilot project on industrial relocation and to disseminate the experience of industrial relocation in Korean to other Asian cities in Asia-Pacific region as further reference. 2. Background information of Ulsan Metropolitan City The City of Ulsan, a port city and industrial hub, is located at the southeastern end of the Korean Peninsula.

(see Fig. 1). This industrial city is one of the seven largest cities in Korea which has about one million inhabitants with one thousand and fifty-five square kilometers of total area. The fertile land is created by the Taehwa River. Onsan and Bang-eo-jin ports, which are connected to Ulsan Bay. The land of 63 million square meters along with the seashore provides the foundation for the development of Ulsan as an industrial city. In addition, the downtown area of Ulsan is divided into a new and old section, and the periphery of the city, consisting of agricultural lands and green belt.

Being located adjacent to Pusan, which is the second largest city in South Korea and plays as one of the major marine transportation hubs in Northeast Asia, Ulsan is an ideal logistics and trading post for the robust Korean economy. Currently, Ulsan is becoming a main gateway to marine cargo transportation; 11 weekly trips on 14 sea routes to Japan; 10 weekly trips on 11 routes to Southeast Asia; 4 weekly trips on 4 routes to China. At present, Ulsan Port has a 90 berth capacity and handles about 135 million tons of ocean cargo. This accounts for 19.3% of the nation‟s total cargo handling. It handles 53% of the nation‟s entire petroleum imports and 45.7% of the nation‟s total auto exports. By 2011, when a new port is completed with capacity of

29 berths, the annual cargo handling capacity of Ulsan Port will reach to 30 million tons. Since then Ulsan district was raised to the status of Ulsan eup (a town) on April 1st, 1931, and raised to that of Ulsan City on June 1st, 1962 as well as designated as a special industrial zone. The now merged urban and rural Ulsan was inaugurated on Jan. 1st, 1995, and Ulsan was raised to the status of Ulsan Metropolitan City which comprises of four districts and one county on July 15, 1997 The road ratio (road/land ratio) of municipal area is 25.5%, highly above the average of Korea‟s seven major cities. The city has convenient one or two-hour-connections with the major metropolitan areas of Pusan and Daegu via the Seoul-Pusan Expressway and 5 national road routes. As a result, any locality in the country can be reached within one day. There is a rail system with links to ports and national industrial complexes. The comprehensive transportation links to ports, railroad and highway create an ideal logistics base. There is a domestic airport with regular flights to Seoul and Jeju Island. Gimhae International Airport is within one-hour driving. Given the location and other socioeconomic advantages, Ulsan, becomes the industrial capital of the robust South Korean economy. Ulsan: Korea’s Industrial Capital Ulsan is the biggest industrial city in South Korea, consisting of a number of industrial parks at both national and local level (see Table 1). As of 2002, this industrial city has 6 national and regional industrial parks and three local industrial parks are expected to be open by 2011. Two national industrial parks are established by central government, while the rest of industrial parks are operated by either local government or quasi-public

sector. With regard to municipal structure concerned with industrial relocation, there is division of works among several departments of the city government in Ulsan. Two developmentrelated departments (Economic & Trade Bureau, Construction & Transportation Bureau, Urban Affairs Bureau) are mainly charged for the related issues of industrial relocation (planning, implementation, enforcement, coordination, monitoring, and others), while Environment Bureau is responsible for environment protection. একটি ফিগার আছে...।

1) Financial structure As of 2001, total budget of the city is 975,100 million Korean won (SelfSufficiency Rate of Fiscal Resource: 66.2%) and substantial share of the annual budget channels into municipality-affiliated public enterprises responsible for the provision of urban services, including water supply, drainage, and other public services. As in other aspects of industrial relocation, the financial role of city government is quite limited due to poor financial capacity. In addition, the share of financial contribution is differentiated by the level of government with regard to public expenditures in industrial relocation. একটি ফিগার আছে...। Ulsan, an industrial hub of the postwar growth in Korea, demonstrates another example of urban environmental management associated with industrial pollution. In particular, the case of Ulsan illustrates the time-lag between cause and pressure in urban environment. Prior to the 1970s, the city suffered less

environmental problems, despite heavy-polluting industries were located in most industrial complexes. Yet, as the HCI (Heavy and Chemical Industrialization) of the Korean economy was driven by the central government and Ulsan accounted for the predominant share in terms of industrial production, the city has unveiled a variety of industry-related environmental problems since the late 1970s. Up to the date, the agglomeration of heavy industry and the population growth in Ulsan are still the major factors to compound environmental problems. Facing these environmental challenges, the government enacted a wide range of user-charge measures, focusing on the reduction of emission and waste since the late 1980s. The major environmental charging systems include Emission Charge System in 1983, Deposit refund for waste disposal in 1992; waste treatment charge system in 1993, Environmental improvement charge system, volume-based collection fee for domestic waste in 1995. These measures contribute to some extent to secure financial resources for environmental management as well as to reduce the discharge of pollutant. Due to such intensive efforts made by city government, several environmental indices show that Ulsan had achieved substantial improvement of environmental quality since the mid-1990s (see Table 3 & 4). একটি ফিগার আছে...।

Critical Environmental Issues Relating to Tanning Industries in Bangladesh THERE are at present 214 tanneries in Bangladesh:200 of them in the city of Dhaka and 14 others scattered all over the country. Covering an area of25 ha, Hazaribagh in the heart of Dhaka city is the centre of the entire leather industry of Bangladesh.Nearly 149 tanneries of the 200 producers ofleather and leather products are located in theHazaribagh area. Fifty three of these 149 operateall year round (Enamul Haque et al. 1997).Tanneries in Hazaribagh were started in 1960by Punjabi traders from what was then Pakistan.The industries grew and, after the independenceof Bangladesh in 1971 , became a 'cash cow' toearn foreign currencies. In terms of foreignexchange earnings, hides and leather are amongthe five leading commodities in Bangladesh(Khatun and H uq 1994; Enamul Haque et al. 1997).It has been estimated that about 13 500000 piecesof hides and skins from all over the country arebrought to Hazaribagh every year for processing.The peak time of collection is during the Muslimfestival of animal sacri flce, the Eid-ulAdha. Theseindustries influence local and foreign exchange andalso the environment of Bangladesh. Effect on Economy The leather industry sector is the fourth largest foreign exchange earner of the country, contributing about 6% of total export earnings. Export earning from the leather industries sector in 1995- 96 was US $237.79 million, of which US $211.70 million was from leather exports, and US $26.09 milliol) from export of finished leather products. The leather sector provides about 10000 jobs in Dhaka alone. It has been reported in a survey that manufacturing industries in and around Dhaka city provide about 270000 jobs,

which is around 25% of the total employees in the city (Emranul Huq and Hossain 1996), and the leather industry provides about 4%.

28

INDUSTRIES During the last more than 50 years there has been substantial growth in industrial sector in the N C T of Delhi. The growth has been attributed due to better road transport, telecommunication network, and regular power supply, Liberalization and economic policies has brought deregulation and industrial policy requirements for investment and expansion. But simultaneously there has been growth of industries in unorganized sector drawing the attention of related quarters and constant monitoring by the Hon‟ble Supreme Court. This has resulted in establishment of new industrial estates like Bawana and Bhorgarh for resettlement of industries which were operating in the residential areas.

Urban Consolidation Approach for Dhaka City: Prospects and Constraints

Abstract

Dhaka, the capital of Bangladesh, is experiencing incessant process of urban expansion but mostly in an unplanned manner. To accommodate the growing population and various urban uses the city is experiencing vertical expansion in the inner city areas and horizontal expansion by encroaching the peripheral land. The Dhaka Metropolitan Development Plan (DMDP) 1997-2015 proposed strategies of Urban Consolidation to optimize the city growth in the established urban areas by vertical expansion and through infill development on vacant land. But there is no such organized program undertaken to implement the consolidation strategies stated in the DMDP. This explorative study is an attempt to find the potentiality of urban consolidation process in Dhaka. The research aims to investigate the qualitative and quantitative status of available amount of vacant and underutilized land for redevelopment to ensure the optimum utilization of the scarce urban land.

Pollution industry-made
Industries got a whacking yesterday as experts and environmentalists maintained that rivers around Dhaka are getting polluted wholesale by industrial waste. Even industries with effluent treatment plants do not run those facilities. The capital's sewage is also mostly untreated and dumped into the rivers as the Dhaka Water Supply and Sewerage Authority (Wasa) has very few waste treatment facilities. The pollution situation is even compounded as no single entity has the complete authority to deal with the pollution that has already rendered the Buriganga biologically dead and threatened the existence of three other rivers--Turag, Balu and Shitalakhya. The experts recommended immediate setting up of a high-powered "national river authority" in the style of the Ganga Commission and Hooghly Commission in India to deal with the pollution of the four rivers that surround Dhaka. There is already the National Coordination Committee on Environment but it has not had a meeting since 1997 and become ineffective. They also said actions must be taken immediately to stop industries from polluting rivers.

The Daily Star conference room became a buzzing place for brainstorming yesterday morning as over a dozen experts and environmentalists along with State Minister for environment Mustafizur Rahman and Industries Minister Dilip Barua met at a roundtable titled "River Pollution: How to Save Our Rivers". The Daily Star Editor Mahfuz Anam moderated the roundtable. Managing Director of Dhaka Wasa Shahjahan Ali Mollah revealed how inadequate Wasa facilities are to treat sewage and said the raw waste is dumped into the rivers, which has in turn rendered the river water unusable. He said loads of medicines are being used to treat water at the Sayedabad water treatment plant and even a newly undertaken plant would serve as a temporary solution to the problem. Another big World Bank project to build a treatment plant for industrial waste will only solve 10 percent of the problem. He admitted that unless major programmes are taken to stop industrial pollution Dhaka would face a severe water crisis in the near future. Chairman of Bangladesh Inland Water Transport Authority (BIWTA) Md Abdul Mannan Howladar mentioned that his organisation has little power to free the rivers from encroachment. And BIWTA's dredging capability is ruefully inadequate--it only has seven dredgers that were bought about 35 years ago. He said dredging is a must to augment flow in the rivers around Dhaka but pollution has accumulated so thick in the Buriganga that normal dredgers are ineffective and BIWTA does not have specialised dredgers. Chief Conservancy Officer of Dhaka City Corporation Muksudur Rahman Chowdhury said the tanneries must be relocated from the city's Hazaribagh to save the rivers. He said waste collection in the growth centres outside, which fall under union parishads, have to be strengthened to stop pollution of the rivers. Industries Minister Dilip Barua said industries do not have social responsibility to care for environment and often they do not operate their effluent treatment plants. He affirmed that industrialisation must take care of all environmental concerns. He said installation of effluent treatment plants will be made compulsory for industries and efforts will be taken to expedite disposal of a case that has stuck relocation of the tanneries from Hazaribagh. Chief Executive of Bangladesh Environmental Lawyers Association (Bela) Syeda Rizwana Hasan said the usual threat of industries that workers would lose job should not deter the authorities from taking action against polluters.

Professor of Bangladesh University of Engineering and Technology (Buet) Dr ABM Badruzzaman said he had found that most industries with effluent treatment plants do not run them. Moreover, Wasa dumps sewage just a little away from its own intake plant. He mentioned that Wasa covers only 30 percent of the city with sewage network and the treatment plant can treat only 20 percent of the sludge. Buet Professor Mujibur Rahman said the Shitalakhya and Balu rivers must be saved first and for that industries and environment ministries have to take up a five-year plan and start working right away. He said industrialisation at the pollution control zone of Shitalakhya must be stopped. Prof Mujibur pointed out that storm sewage lines bring solid waste to the Buriganga and these lines must be diverted to the Pagla sewage treatment plant. He said unless pollution could be stopped, funds for water treatment plants would be unavailable. Khawaja M Minnatullah, a World Bank environment specialist, said water in the rivers around Dhaka is so polluted today that the Syedabad water treatment plant has virtually become a wastewater treatment installation. He maintained that pollution from Hazaribagh tanneries have permanently polluted the shallow aquifer of the city. He said Dhaka city is approaching a public health crisis and even bottled water will not be safe enough for drinking because of the amount of background pathogen. Kamal Abdul Naser Chowdhury, additional secretary to the information ministry and former convenor of the government instituted river pollution mitigation committee, cited the example of the Singapore river and said it was also a dead river with pollution but it was rejuvenated in 10 years. With concerted efforts the rivers around the Buriganga could also be brought to life in course of time.

g

on

a

Sleeping

Volcano?

By Khondkar Abdus Saleque, Shama Ishteak

April 08, 2008 Bangladesh

Living in Dhaka is not really like living in the crater of an active volcano but it is like living on a sleeping volcano which may erupt any time and engulf everything. Dhakaites are not fully realizing what crisis is emerging for them. In 37 years of independence the capital of Bangladesh, the historic city which bears many symbols of national pride like Language Martyr monument, Monument for martyred freedom fighters, Historic relics of Mogul Dynasty unfortunately have become a concrete slum perspiring for fresh air& thirsty for pure drinking water. The dilapidated state of the city mirrors the poor state of affairs of the entire nation. The water of the rivers around the city is polluted, air is poisonous obnoxious particles, gas, electricity and water are getting scarce. At last 20%of the population is living in slums in inhuman condition. Cost of living has sky rocketed beyond normal peoples reach. This is not what the liberation war was fought. Our valiant freedom fighters did not make supreme sacrifice for a Dhaka city life like this. Many people talk of realizing the dreams of freedom fighters, many talk about ideals of liberation war. But we should all be ashamed for our failures at our respective positions to serve the nation with commitment. Time is fast running out. We must wake up from hibernation, mobilize our efforts and resources and do everything possible to remedy the situation. We need national consensus to meet the challenge; we need very focused and committed planners and work force. We need active participation of all citizens .If country like Thailand can do it , if Vietnam can do it , then there is no reason we can overturn the tide and make our Capital a nice and beautiful city. Quoting a PHD research paper of Jahangir Nagar

University one leading daily of Bangladesh in its main headline printed a very alarming report. Bangladesh capital Historic Dhaka is fast turning into an inhabitable city. Air & water are saturated with poisonous elements, sound pollution reaching unacceptable limits, gas electricity, and water supply crisis looming large, rapid depletion of sub surface water level making the city vulnerable to mild earth quake. In this situation sensible citizens of Bangladesh and Bangladeshi‟s abroad must not keep their fingers crossed and must pull together all the resources to make appropriate plan to save the historic city from emerging crisis. We can not let our dear city to remain in crisis for ever. We must c rise above political divide to join the fight to save Dhaka. Report states that at peak hours Dhaka air at Motijheel Commercial Area has been found to contain 100 ppm of Carbon Monoxide, the sound level reaches 80 decibels. The report also indicates that the water of Buriganga River contains alarming amount of organochloric compound which may cause cancer like DDT or may obstruct Endocrine (causing genetic problems leading to men turning women) .A survey of the Environmental Chemistry Department of the University evidenced that the water of Buriganga at half a kilometer of Hazaribagh Tannery contains about 28ppm chromium which is extremely dangerous. Usually Buriganga water contains 6-10 ppm Chromium. The wastes of Tanneries at Hazaribagh are responsible for this menace. According to the guidelines of World Health Organization (WHO) water must not contain more than 1 ppm of Chromium. This alarming level of Chromium in River water which in many ways used for human consumption is causing serious threat for human life in the city. But unfortunately Rajuk and Dhaka City Corporation are doing nothing to mitigate this menace. We have a Department of Environment (DOE), we have a very active Civil Society but wonder why this very alarming situation is escaping every ones attention. We understand the tanneries from Hazaribagh will be relocated soon to outskirts of Dhaka but if the wastes are not treated properly and disposed off carefully these will continue to pollute another water stream.

Dhaka city is expanding in all direction east to west, north to south, population is increasing in geometric progression but the civic amenities can no t keep pace with the growing demand. The capacity of various utilities can no longer meet the rapidly increasing demand. Supply of pure drinking water, safe accommodation for the growing population, appropriate sanitation, municipal waste collection, supply of electricity and gas for about 150 Million city dwellers are progressively turning into serious crisis. In this serious situation the news about Dhaka city air reported to containing higher proportion of lead and CO must be considered very alarming. Serious noises, unacceptable sound level is causing hearing problem. In no modern cities these days the automobiles blow horns in the heart of the city. The water of rivers around Dhaka city is nothing but poison. Even WASA Water treatment plant in Sayedabad finding it very difficult to treat the poisonous water of Sitalakya. But the helpless shelter less people from villages and rural people are migrating to Dhaka compounding the problem still further. City dwellers are already affected with various contagious water borne disease. Dhaka has already turned into a slum of concrete. Dhaka city is more than 400 years old. Over these years the population has increased many folds. The city did not have appropriate maser plan. DIT master plan of pre liberation days could not be appropriate for a capital city. Moreover after independence all activities were concentrated in Dhaka. The other cities like Chittagong, Khulna, and Rajshahi were not given proper attention . For Higher education, Health Care, Business and Job Opportunities people from all over the country flooded the city. Very corrupt and mis manged public sector utility companies never made appropriate perspective planning. The gas, electricity, water infrastructures can not support the increasing demand. In many city suburbs which are basically meant for domestic dwelling have turned into commercial and mini industrial areas. Hundreds of Ready Made Garments and other small industries in Malibagh, Moghbazar, Mohdpoor, Meerrpoor, Mohakahlai, Bonani areas have created enormous pressure on the utility supply infrastructures. The situation in Old Dhaka areas is more pathetic. Unless the city suburbs are freed from this undesirable mushroom industrial growth this situation can not be remedied. Ready Made Garments (RMG) is our major export earner. It should be relocated in a planned manner to the outskirts of Dhaka as soon as possible. It was reported in the recent past that Meghnaghat area is possibly going to be the relocated location. Instead of concentrating in one place it may be relocated in other direction also .Another hub for RMG and other small industries can be set up in Gazipoor Area and a third one on the other side of Buriganga.also. If only the RMG and Tanneries moved out of the City about 2 million people will be relocated and Dhaka city utility services will be relieved to a great extent. Off course appropriate utility infrastructures and accommodation facilities in relocated areas must be built. The adjoining districts of Dhaka like Narayanganj, Manikganj, Munshiganj, Gazipoor, Tangail, Mymensingh, Norshingdi, and Comilla must be developed appropriately so that people get attracted to live there. The road train communication must be improved so that people can move to and fro from these districts to work in Dhaka. Head quarter of some government offices must be moved out to the divisional Head quarters like Chittagong, Rajshahi,

Khulna,

Sylhet,

and

Barishal.

Serious thoughts must be given to water pollution of Turag, Buriganga and Siatalakhya rivers. The research report indicates that proportion of suspended solids, turbidity, color, total alkalinity, acidity, total hardness , dissolved oxygen , COD, BOD,CO2 , NH3,Nitrate, Coli form in the river water around the city are many times higher than the acceptable limit. The report termed the Buriganga water as silent killer. To address this situation we have no way but to be very harsh with the industries which are polluting the rivers. Government must form a task force to monitor the waste treatment of all industries. The committee may have representatives of Rajuk, DCC, DOE, University Teachers and Ministry of Environments. If any industry can not meet the environment standard that industry must be closed. All citizens around the rivers must be conscious and alert and must encourage all to keep river waters free from pollution. Another serious problem is sound pollution. Dhaka city does not have enough roads to accommodate about 1 million mechanized transports. The transport owners have very little respect for traffic rules. Traffic jam, smoke emitting old transports, high sound blowing horns makes life of city dwellers unbearable on every working day. City desperately needs underground and overhead transportation. If we could have city circular road and rail and metro and sky train's people could have more comfortably used public transports. A poor country like Bangladesh would not have so many motor vehicles if we remained honest. Government may declare that some areas of city centre on a given radius would be out of bound of motorized vehicle from 10AM till 5 PM. The only transport will be rickshaws and bicycles. People must learn to work. The train movement with in the city areas to Kamlapoor must also be restricted from 6PM to 6AM. Beyond these hours all trains bound for Dhaka must terminate journey at Tongi, Uttara or Cantonment station. Railway must have their own NGV buses to move the commuters in to city areas from Uttara, Tongi and Cantonment stations. The sound level in residential area must not exceed 45 Decibel but in no residential area it is less than 70 decibel. For industrial area the limit is 80decibel but it is hardly less than 120 decibel in Dhaka. Sound pollution has reached alarming level .It has already become unbearable for our children, for our elderly people. Dhaka is among the 6 cities of South Asia which by 2010 will be included as 2o mega cities of the world. The other cities are Kolkata, Bombay, Delhi, Karachi and Lahore. Each of these cities has population of more than 15 million. These cities other than Dhaka have already taken up massive redevelopment and infrastructure up gradation. But in Dhaka everything is moving in unplanned way. We are thinking big, talking tall but doing very little. We are having regular seminars, symposiums and making thousands of recommendations but everything for us is crisis management. When India was divided in 1947 into Pakistan and India Dhaka had a population of 2 lakhs only. In 1971 its population was 1million. Now in 37 years it has grown to 13 million. In 61 years since 1947 the population has grown 65 times. The unitary system of government has

concentrated admintration, trade and commerce, industrialization in Dhaka. But the road infrastructures, utility infrastructures, sanitation etc never planned to meet the growing demand. Every other mega cities have city circular roads, sky roads, much improved sanitation and drainage system. Slums are also a curse and menace for Dhaka. Even Kolkata is developing much better than Dhaka.

Being situated at the centre of flood plain Dhaka experience devastating flood almost every year. The rivers around Dhaka are silted due to lack of drainage, city canals are filled out by grabbers. Even mild showers cause water logging. After 1988 flood 300 KM city protection dam was built. But for some reason only 18KM in the eastern part was not built. Consequently 55Sq KM area in the east remains vulnerable to flooding. Surface water treatment facility is inadequate. Massive drainage of subsurface water has caused drawdown of water table. Landslide and earth quake catastrophe may not be ruled out. We must immediately take up the following actions. • Free the Buriganga, Siatalakhya, Turag rivers from illegal occupants. • Move Secretariat to Shere Bangla Nagar. Various ministries may be relocated to Different areas of the city and some to other divisional head quarters. This will ease traffic congestion of Motijheel Area. • Free all residential areas from commercial and industrial units. • Ban all kinds of untreated waste disposals to the rivers and water ways. • Undertake massive dredging to increase holding capacity and maintain all season navigability of the rivers. • Recover and regenerate the city Canals to retrieve the drainage of water to manage water logging. • Set up recycled Water Treatment plants and pipe these for industrial use. • Built City Circular Road and Energy Ring main around the City. • Build Metro (Underground Rail) and sky rail whichever suits our condition. • Take out Dhaka Cantonment military establishment out of the city at Gazipoor. The residential accommodation of army families can remain there. This will create lot of option to ease traffic congestions. Dhaka Cantonment alone creates an obstacle to free flow of traffic from Gazipoor to the City Areas. • Gradually relocate Kamlapoor Railway outside the city towards Gazipoor. However shuttles may run from Gazipoor to future city circular rail junction. • Allow only CNG vehicles to move within the city area. • Introduce the method of municipal waste disposal and management well practiced in other modern cities. City dwellers have National ID cards. The domestic wastes must be disposed in identified bins that may be allocated for each property owner or those living on rent. There can be separate bins for recycles, kitchen wastes and garden refuses like any modern city. DC may allocate a particular day of the week to lift the wastes from different locations and then the

wastes

may

be

either

recycled

or

used

for

power

generation.

The above actions will require huge investment. If government can ensure proper regulatory mechanism and transparency in management many private sector developers may be interested. For all these we will need very strong Metropolitan Governance under City Corporation., a 20 year Master plan for the mega city and very committed managerial capability. Can our future generation live in a modern mega Dhaka City?

Environmental Pollution Situation and Industrial Relocation Program in Ho Chi Minh City

The contradiction between industrial development and environmental pollution in Ho Chi Minh City (HCMC) has been becoming a big challenge for the city in the integration and sound development process.

In the HCMC area, there are over 30,000 industries and small-scale industries with more than 480,000 workers. These industries produce a big quantity of goods, obtaining 1/3 industrial production value in the whole country. Besides the achievements the industry branch contributes to the city, environmental pollution issues due to industrial activities are more and more seriously. In the resident centralized main areas such as District 5, 6, 11, Tan Binh District and the districts located around the city centre such as District 8, 9, Thu Duc District, District 12, etc., environmental pollution situation is very serious. In technological aspect, generally, a minority of industries is modern, and the rest is average and obsolete. In addition, investment level for environmental protection is still low, industrial activities and small – scale industrial activities have been polluting the environment in many aspects such as air pollution, surface water and underground water pollution, smoke and dust pollution, and noise, etc.

Xxxxxxxxxxxxx
Selim Mansoor

In this modern age of technology boom, is it necessary that all government ministries should remain confined in one place -- the Bangladesh Secretariat? Much of the Dhaka city's congestion will be eased if government ministries can be spread over and across its suburbs and adjoining districts. Narayanganj, Savar, Keraniganj and Gazipur can be ideal location for relocating several ministries. Only the ministries of defence, finance, planning, home, information and foreign affairs can retain their office in Dhaka and other ministries may be moved out in phases to places outside Dhaka. These ministries can be connected via fibre optic cables and secure virtual private network (VPN). This is more so because then we are talking about a really digital Government of Bangladesh (GoB). The ministries of energy and power, communications, forest and environment, food and agriculture can go to Gazipur, port and shipping, textile, jute and industry can go to Naraynganj. Likewise, the ministries of health, education, labour and manpower, science and technology, youth and sports can be moved out to Savar; commerce, land, and cultural affairs to Keraniganj. Why the Chittagong Hill Tracts (CHT) affairs division or ministry cannot be based at Ranagmati? All these ministries can be also connected via fibre optic cables and secure VPN. Once relocated after setting up infrastructures, the existing facilities of these ministries can be appropriately used. Gazipur, Savar and Narayanganj can have better road and other communications. E-Governance can then be put in place. Then gradually, all garments factories, leather industry and other polluting industries must be moved out of Dhaka to specific locations. A major portion of readymade garments RMG) industries can go to Keraniganj and Gazaria Garments pally (garments village), leather industry to leather complex at Nabinagar. The government must clean residential areas like Dhanmondi, Banani, Gulshan, Uttara, Malibagh, and Lalbagh from all kinds of commercial activities. It is appropriate time to relocate the Border Guard and Army Headquarters to appropriate places outside Dhaka. These two establishments, situated in the capital city, do at times cause serious bottlenecks, directly or indirectly for traffic movement. We wonder why democratic government can not take and implement such decisions. What useful purpose such establishments are serving to the national cause, occupying such large areas in the capital city? Why can not Dhaka Cantonment be moved to Gazipur and the Border Guard Headquarters to Keraniganj?

Simultaneous to such actions, the government should take appropriate moves to help connect Narayanganj, Savar, Gazipur and Keraniganj with the capital city through elevated express highways and fast moving railway. Some multi-storied parking facilities must be set up in the city centres. More long-body natural gas vehicles (NGV) buses should be introduced and all old polluting vehicles, slow-moving human haulers and mini-taxi cabs must be removed as soon as possible. Fifty per cent of city congestion and also 50 per cent load on city utilities will be relieved from taking of such steps. If major government offices including the border guard and army installationscan be moved out of Dhaka in phases and if RMG and leather industries can also be relocated, we can gradually make Dhaka habitable for all, and return to the old lovely Dhaka that we can all take pride on.

HAZARIBAGH LEATHER INDUSTRY AND SLUMS IN BANGLADESH

NTRODUCTION

Bangladesh has a very limited stock of known mineral resources (only natural gas is being extracted commercially), and the economy is heavily dependent on small-scale agriculture. Agriculture accounts for about 40 per cent of Bangladesh's GDP and about 60 per cent of employment. Landless small farmers and as well as urban informal groups constitute 50 per cent of Bangladesh's population. Fifty three per cent of rural population are virtually landless and the result of that a very large percentage of urban population live in slums. For example 30 per cent of the population (about 2 million) in Dhaka live in more than 1500 slums and squatter settlements, where density of settlements is over 6178 persons per hectare and per capita living space available is lower than one square meter. The structural conditions of the shelters are one of the worst in the world. The settlements live without open space, streets, water, gas and electricity, water, sanitation and sewerage facilities.

Since these settlements are illegal the Government or International Aid Agencies have hardly any project to improve living quality of the poorest population of the country. Like many other cities of the developing countries the population of Dhaka city increased by almost 200 per cent in seven years (1974-81) due to the increasing developments of landless peasants. The present economic development increasingly widens the gap between the poor and the rich. The limited agricultural land does not allow any further expansion along with the fast expanding population of working age. In view of this problem the Government of Bangladesh is planning for a rapid increase in industry, commerce and services (55.7 per cent of GDP). At present industrial manufacturing accounts for about 10 per cent of GDP in Bangladesh and 10 per cent of total employment, and contributes about three-quarters of total merchandise exports. The earliest industries in Bangladesh were based primarily on agricultural products like jute, sugarcane, tobacco, forest raw materials, and hides and skins. During the mid-sixties a modern industrial base emerged as heavy industries like steel, machine tools, electric machines, diesel plants, refineries, pharmaceutical plants and other chemical industries were set up. From 1985 to 1990 the industrial sector achieved an average annual rate of growth of 4.02 per cent. In recent years, the major source of industrial growth has been in textiles, with ready-made garment manufacture expanding from insignificance in the 1970s to the leading export earner today. Leather tanning and brackish water shrimp farming have also expanded rapidly and are expected to grow further. With the increase of unplanned and socially and environmentally degraded industries Bangladesh poses a new challenge. Pollution and human-induced hazards are particularly serious in the developing nations, because industrial production is heavily concentrated in one or two city regions or 'core regions' within each nation. The industrial areas in Bangladesh are situated in the midst of densely populated regions. There are many hazardous and potentially dangerous polluting industries situated in the cities of Bangladesh. In Dhaka at Tejgaon area, food processing industries are situated along with chemical and heavy metal processing industries. In Tongi a pharmaceutical industry is situated near a pesticide producing industry.

Tannery industries of Hazaribagh also situated in a heavily populated residential area. These examples are repeated in the cities of Chittagong, Khulna and other smaller cities of Bangladesh. The Government of Bangladesh has not shown much interest in environmental impact created by the industries, whereas government's concern to create jobs usually meant that when a new factory is proposed - by local, national or international business or agency - little attention is given to the likely environmental impacts.
Tanneries discharge 21,600 square meters of liquid wastes daily

Tanneries in the city's Hazaribagh area discharge some 21,600 square meters of liquid wastes everyday. "These harmful wastes, including chromium, lead, sulphur, ammonium, salt and other materials, are severely polluting the capital city and the river Buriganga," State Minister for Environment and Forest Jafrul Islam Chowdhury said this while he was visiting the Hazaribagh industrial area yesterday. (UNB, November 2003)

Many urban dwellers live on sites prone to hazards - rarely the government tries to help reduce risks or to respond rapidly and effectively, if a disaster happens. Hazardous sites are often occupied illegally; the risk of eviction from such sites is small because of any commercial value or because they are publicly owned and the government shall not force their eviction for political reasons. The outcome of this are:
 

Houses are built without providing basic amenities like water and sanitation; Slum-lords manipulated the whole show by renting the houses to others and expropriating exorbitant amount of money;

There are many disasters which have an impact which goes far beyond a particular house or neighbourhood, as a result of industrial or other accidents. Bhopal shows an example, when an industrial accident in 1984 released methyl iso-cyanate and caused the death over 3000 with perhaps 100,000 or more seriously injured or poisoned. The situation like Bhopal threatens many places in Bangladesh. While the most polluted industries are decreasing in the industrial countries a rapid increase in more environmentally

degraded industries (without effluent treatments) occurring in the developing countries. The economic development in Bangladesh is producing more landless people and at the same time the landless and jobless poor are gathering in cities slums . A typical example is Hazaribagh leather industry in Dhaka. The leather industry is situated in the midst of a densely populated residential area surrounded by slums, where people are living ignorantly in the one of the worst polluted areas in the world. The condition to describe the living conditions of the slums is beyond authors capability (see Figures). The leather export is growing and at the same time conditions of the poor are deteriorating. A case study of Hazaribagh industrial area is proposed in this paper. BACKGROUND

Leather sector also produces 150 tons solid waste a day

The leather industry sector, which is the fourth largest foreign exchange earner of the country contributing about six per cent of total export earnings, produces 150 metric tons of solid waste every day contaminating the environment and water of the metropolis. 59 per cent of the total wastage comes from processing of hides and skin, and accumulates in the swamp-sludge, experts in the environment sector said. The experts said, "part of the solid waste is collected by the Dhaka City Corporation (DCC) and taken to landfill sites." A recent research conducted by Professor S M Imamul Huq, Chairperson of Soil, Water and Environment Department of Dhaka University revealed that out of 214 tanneries in the country, except for two BATA and Dhaka Leather Complex-none of the tanneries has a treatment plant as required by the law. Rice and wheat were grown in a pot experiment in soils from the tannery area. The wheat showed delayed maturity and stunting growth while rice showed late flowering and maturity with dark green colour. In another experiment it was observed that application of tannery effluents to soils of differing textures resulted in reduction of yield of rice, the research said adding that the adverse effect was more pronounced in light soils than in heavy soils. The effluent was also found to negatively affect performance, nodulation and growth of mung beans (dal). In his research article named "Critical Environmental Issues Relating to Tanning Industries in Bangladesh," Professor Imamul Huq said, "most of the waste effluents are subjected to natural decomposition in the environment, causing serious pollution problems affecting soil, water, air and human life." The finding said that the existing industries in most cases do not have any effluent treatment plants for neutralising the toxicity and harmful effects of their pollutants. The research recommended building of appropriate waste treatment plants for neutralising harmful chemicals before disposal of the waste into the environment and called upon the government to fix a legal limit value for discharge of tannery effluent to surface water. Stressing the need for treatment methods to combat pollution including segregation of processed waste water, sedimentation, neutralisation and biological treatment, the paper said that about half the tanneries apply some kind of solid waste reuse, while 90 per cent of the finished trimming

wastes

are

used

by

the

local

shoemakers.

The research said, "the process of tanning produces both liquid and solid wastes. Solid wastes are from the initial and final stages of processing while the effluents are produced mostly during tanning and dying." The 149 operating tanneries produce 14910 metric tons of effluents or waste water during the peak time, about 9100 metric tons during the off-peak period, the research paper said adding that the effluents contain dissolved lime, hydrogen sulfide, acids, chromium dyes, oils, organic matter and suspended solids. "The waste water is discharged into open drains and ultimately finds way onto land surface and into natural waters in the vicinity," the research revealed. It says "about 3000 tons of sodium sulfide and nearly 3000 tons of basic chromium sulfate are used each year for leather processing and tanning." The other chemicals used in the tanning industry are non-ionic wetting agents, bactericides, soda ash, calcium oxide, ammonium sulfate, ammonium chloride, enzymes, sodium bisulfate, sodiumchlorite, sodium hypochlorite, sodium chloride, sulfuric acid, formic acid, sodium formate, sodium bicarbonate, vegetable tannins, syntans, resins, polyurethane, dyes, fatemulsions, pigments, binders, waxes, lacquers and formaldehyde. Out of 214 tanneries, 200 are located near the capital‟s river systems – the Turag to north-west, the Buriganga to the south-west and the Sitalakhya to the south-east, with Turag flowing into the Buriganga. The tanneries discharge the effluents and wastes into the river system causing a large area of acid sludge alongside the flood protection embankment and the liquid wastes are dumped in the river through a flood control regulator-cum-sluice. During monsoon months, the flood protection embankments protect Dhaka from heavy flooding while making it difficult to flush-out waste water, thereby creating environmental hazard. During the dry season the waste water is flushed out into the river causing pollution of the river water and affecting the aquatic flora and fauna. The dumping of the solid wastes is seriously affecting the soil and plants, besides vitiating the air, groundwater and human health. The water quality of the river Buriganga during wet season and dry season are heavily polluted so that dissolved oxygen in the river water is found to be nil during the dry season and no fish or other aquatic animals can live in this condition. (Source: The Independent, May 09, 2006)

The annual supply of hides and skins in Bangladesh is estimated to be about 13.95 million square meters. Only 15-18 per cent of the total supply is needed to meet the domestic requirements and the rest about 11.81 million square meters remains surplus for export. The small leather industry of Indian-subcontinent developed Indian vegetable tanned crust over a hundred years ago to preserve the hide in the safest way to suit Indian conditions. The development of leather processing industry was started in Bangladesh in the late 1940s. Until mid 1960s, the leather was dominated by vegetable tannage for supply to W. Pakistan, Iran and Turkey. Manufacture of wet blue, the chrome tanned semiprocessed leather started featuring in 1965. There was a rapid growth of tanning industry in Bangladesh during 1970s and by the end of 70s. Until 1980-81, the export from leather sector was almost 100% in the form of wet blue, the chrome tanned semiprocessed leather In 1977 the Government of Bangladesh imposed export duty on wet blue leather so that the industry produces crust and finished leather. With the ban on wet blue export from July, 1990, the leather industry of Bangladesh is entering into second phase of its development, the conversion of finished leather into further value added leather products to earn more foreign exchange. Promotion and Protection Act of 1980 provides protection of foreign investment in Bangladesh. There are German, Italian etc. joint venture plants are established in Bangladesh (M/S H. H. leather Industries Ltd, M/S BATA, M/S Lexco Ltd, M/S Apex Tannery Ltd). The operation in tanning which give rise effluents may be categorised into pre-tanning and post-tanning processes. Pretanning is employed mainly for the removal of impurities from the raw materials. These consist largely of protein (blood, hair, etc.) and the process chemicals employed include salts, lime and sulphides. The tanning processes themselves are used to alter the characteristics of skin or hide and their effluents contain chromium and vegetable or synthetic tanning. Post-tanning process include coloration and produce effluents typical of these addition processes; that is, containing residues of dyestuffs or pigments and larger quantities of auxiliary chemicals.

The process chemicals employed are a variety of inorganic and organic materials, affecting total solids, pH, COD and of particular importance are the applicable quantities of sulphide and of heavy metals. Hazardous chemicals for leather and dyes treatments are Ammonium Bicarbonate, Chromic Acetate, Ethylene Glycol Monoethyl Ether, Methylamine, o-Nitrophenol, Toulene Diamine, 2,4,5-Trichlorphenol, Zinc Hydrosulfite, Zinc Sulfate, tertButylamine, Cadmium Nitrate, Cadmium (II) Acetate, Copper(2)Nitrate, 1,4-1,8 Dichloronaphthalene, Nickel Sulfate, o-Xylene, Zinc Nitrate etc. For example Chromic Acetate shows the following characteristics (Sax, 1986):
     

Potential for Accumulation: Positive Food Chain Contamination Potential: Positive, can be concentrated in food chain. Etiologic Potential: Chrome ulcer Carciniogenecity: Potential, higher occurrence of lung cancer Acute hazard Level: Extremely toxic if ingested or inhaled. Corrosive to living tissue. Degree of Hazard to Public Health: Highly toxic material via ingestion or inhalation. Corrosive to skin and mummer; potential carcinogenic.

At present in Bangladesh the tanner's basic wet process technique is to treat the stock with increasing concentrations of process chemicals using water as the carrier. In order to ensure full penetration of the thickest hide or skin in the batch, these concentrations are in excess of what is needed and the unabsorbed chemicals are discharged in the effluent, where they are a waste and cause expensive treatment problems. While the Chemical companies in the Federal Republic of Germany, the United States, the United Kingdom, Switzerland, Spain and Italy provide short term training on the application of their chemicals, Whereas they do not provide any assistance how to treat toxic effluents that increasingly contaminate surface and ground water. Consultant provide technological transfer and management either on arm's length fee paying basis on assignment or financed by the World Bank, UNIDO, ITC or other United agencies.

The small cottage tanners of Hazaribagh producing sandal leather out of cow heads are probably the only tanning group in the world using waste tanning liquor from the modern tanners as their process liquor. But after using these waste are eventually discharged, as are all other tannery discharges in the Hazaribagh tanning effluents into the streets, gutters and sewers which ultimately enter surface and ground water. According to Dittfurth and Röhring (1987) about 250 different toxic chemicals and heavy metals like cadmium, chromium, arsenic, zinc etc. are used by the leather industry. When the local industry was basically a vegetable tanning complex, this effluent might have been high in BOD and unpleasant but particularly dangerous. There is, in addition, an extremely hazardous air pollution occur in Hazaribagh which is not known in any other places of the world. The rest treated hides and skins are cooked in open air to obtain glue for the local market. They burn treated leather pieces instead of coal or wood as it is cheaper. The smog and the smell like a witch cooking pot and it is beyond author's capability to narrate. The most hazard occurs when the poorer group uses poisonous treated leather pieces as an alternative fuel to cook regular meals. No body knows how much harm and potential carcinogen diseases will occur to the slum inhabitants. There is no warning from the Government or aid giving agencies or their representatives. This is the vicious circle that the poorest groups are the worst victims of the foreign currency earning schemes. We welcome the directives by the High Court to the government on relocation of the tanneries from Hazaribagh area to Savar in eighteen months' time. We were nothing short of happy when the Prime Minister had announced quite a while ago her government's decision to relocate the tannery plants from a densely populated area to a more suitable exclusive zone. But sadly it has so far remained a declaration of intent only and a mere announcement. The agencies concerned have made little headway in relocating the tannery industrie. Big concerns or influential persons (about 80 per cent of the members of the parliament in Bangladesh are traders ) do not care for environment or existing laws:

Tannery being built defying High Court order

It also asked the government to explain why it should not be directed to shift the industries from the area within 18 months. The new industry is springing up just opposite to the Shikdar Medical College inside the embankment in Hazaribagh. Half of the construction is already complete with the owner dredging out the river and filling up the low land. Nurul Alam is the owner of the new industry named 'Millat Tannery' and he is well aware of the High Court order. "I know about the order and the government's relocation procedure. But it will take time. So I am investing on this. I will also shift my industry when others will shift theirs," Nurul Alam said. He believes nothing will happen in two to three years, as the government's project regarding relocation of the tannery industry has not been approved as yet at the Executive Committee of the National Economic Council meeting Meanwhile, the water of Buriganga river has become black and mucky due to continuous inflow of untreated tannery effluents. The tannery units release nearly 22,000 cubic metres of untreated toxic waste everyday to the Buriganga River. According to the local people, the condition of the river is the worst (Daily Star March 25, 2003).

Toxic tannery waste Factory relocation stuck in red tape

posing

health

risk

Buriganga river posing serious threat to human health as relocation of the factories is caught in bureaucratic tangle. Reluctance of the owners to move those flouting High Court orders is also delaying the process. The HC directives, demands of the civil society and campaigns by the media have all gone in vain as the tannery owners and the government have been blaming each other for not taking action in this regard. In June 2009, the HC expressed frustration over industrial pollution, and observed that the government has not taken any step to prevent pollution by industries.

The court in its judgement ordered the authorities concerned to complete relocation of the leather industry to Savar by February 28, 2010. Failing to do so, the government had filed a petition with the HC seeking two more years for the job. The HC then extended the time till August 28 the same year asking the industries ministry to submit a report within six months on the actions taken to move those out of the city's residential areas. But the government again failed to do the job and kept on seeking more time from the court every six months. "We're trying our level best. But I'm not sure when they will be relocated," said Mahbubur Rahman, project director of Savar Leather Estate of Bangladesh Small and Cottage Industries Corporation (BSCIC), who is also responsible for implementing the relocation. Asked why they are taking so much time, he said, "It took nearly one year to complete the technical evaluation of the central effluent treatment plant (ETP) and submit it to the government. "But surely, things are progressing. We've recommended four ETPs with five million cubic metres of toxic waste treatment facilities for 155 industrial units." The relocation process started nearly 10 years ago following a HC verdict in 2001. The government undertook a project to develop the leather estate at Harinbari in Savar at the cost of Tk 500 more than five years ago. The estate, however, remains unused and empty. Sources say the relocation is being delayed as the government and the tannery owners could not reach any consensus about compensation and bank loan. Even the project director is unaware about the compensation and loan issues -- two major demands of the tannery owners. The polluters who earn around Tk 1,600 crore by exporting leather goods remain adamant demanding compensation of Tk 1,090 crore from the government along with soft loan and readymade central ETPs at taxpayers' money. "We're asking Tk 1,090 crore in compensation. But we haven't heard anything from the government yet," said Shahin Ahmed, president of Bangladesh Tanners' Association. Now the government proposes for sharing the cost of setting up the central ETPs, which will require more than Tk 300 crore. "But we signed a memorandum of

understanding in 2003 with the government, and the government agreed to set up ETPs at its cost," said Shahin. He also said they demand the compensation, as they will have to build new infrastructures and repair machinery that will be damaged during relocation. Although the environmental protection laws require the tanners to set up ETPs in their factories, they never did so causing serious environmental peril. The residents of the city's western part continue to suffer from adverse effects of pollution caused by tanneries in Hazaribagh, Dhanmondi, Basila, Kamrangirchar and surrounding areas. The dreadful stink of the tanneries can be smelt from miles away in residential areas like Rayerbazar and Zigatola. Hazaribagh tanneries, an export-oriented cluster of industries, produce some 20,000 cubic metres of toxic waste laden with chromium and at least 30 other toxins every day. The toxic waters flow into the Buriganga through the Rayerbazar sluice gate. Locals allege they frequently require treatment for skin diseases, fever, cough, gastroenteritis, asthma and diabetes. A tanner said the major obstacle to the relocation is that most of the land and property is mortgaged against bank loans. Until the banks release the mortgaged property, it is impossible to move their factories (P. Roy, May 28, 2011).

Description Of The Dhaka City : Dhaka city is more than 400 years old. Over these years the populationh a s i n c r e a s e d ma n y f o l d s . L i v i n g i n Dh a k a i s n o t r e a l l y l i k e l i v i n g i n t h e c r a t e r o f a n active volcano but it is like living on a sleeping volcano which may erupt any time andengulf everything. Dhakaites are not fully realizing what crisis is emerging for them. In37 years of independence the capital of Bangladesh, the historic city which bears manys ymbols of national pride like Language Martyr monument, Monument for martyredfreedom fighters, Historic relics of Mogul Dynasty unfortunately have become a concreteslum perspiring for fresh air& thirsty for pure drinking water. The dilapidated state of thecity mirrors the poor state of affairs of the entire nation. The water of the rivers aroundthe city is polluted, air is poisonous obnoxious particles, gas, electricity and water aregetting scarce. At last 20%of the population is living in slums in inhuman condition. Costof living has sky rocketed beyond normal peoples reach. This is not what the liberationwar was fought. Our valiant freedom fighters did not make supreme sacrifice for a Dhakacity life like this. Many people talk of realizing the dreams of freedom fighters, many talk a b o u t i d e a l s o f l i b e r a t i o n w a r . B u t w e s h o u l d a l l b e a s h a me d f o r o u r f a i l u r e s a t o u r respective positions to serve the nation with commitment Problems Of Dhaka City: Bangladesh capital Historic Dhaka is fast turning into an inhabitable city. Air &water are saturated with poisonous elements, sound pollution reaching unacceptablel i mi t s , g a s e l e c t r i c i t y, a n d w a t e r s u p p l y c r i s i s l o o mi n g l a r g e , r a p i d d e p l e t i o n o f s u b surface water level making the city vulnerable to mild earth quake.Dhaka city is expanding in all direction east to west, north to south, populationis increasing in geometric

progression but the civic amenities can theg r o wi n g d e ma n d . Th e c a p a c i t y c a n n o l o n g e r me e t t h e r a p i d l y.

no

t keep pace with of various utilities

Air Pollution In Dhaka CityMuhammad MahadiEnvironmental Science Discipline.Khulna University.. increasing demand. Supply of pure drinking water, safe accommodation for the growing population, appropriate sanitation, municipal waste collection, supply of electricity andgas for about 150 Million city dwellers are progressively turning into serious crisis. Int h i s s e r i o u s s i t u a t i o n t h e n e ws a b o u t Dh a k a c i t y a i r r e p o r t e d t o containing higher p r o p o r t i o n o f l e a d a n d C O m u s t b e c o n s i d e r e d v e r y a l a r m i n g . S e r i o u s n o i s e s , unacceptable sound level is causing hearing problem. In no modern cities these days theautomobiles blow horns in the heart of the city. The water of rivers around Dhaka city isnothing but poison. Even WASA Water treatment plant in Sayedabad finding it verydifficult to treat the poisonous water of Sitalakya. But the helpless shelter less peoplefrom villages and rural people are migrating to Dhaka compounding the problem stillfurther. City dwellers are already affected with various contagious water borne disease.Dhaka has already turned into a slum of concrete.

Dhaka has very high air pollution level : Air pollution has become a matter of great concern for us in recent years. Those who areliving in cities in Asian countries including Dhaka, have already realized how seriouslyair pollution has been poisoning life and degrading the environment. People living inmajor towns of Bangladesh experience the problems of air pollution in varied degrees.F a u l t y v e h i c l e s , e s p e c i a l l y d i e s e l r u n v e h i c l e s , b r i c k

kilns, dust from roads andconstruction sites and toxic fume s f r o m i n d u s t r i e s c o n t r i b u t e t o a i r p o l l u t i o n . Industrialization and mechanized vehicles are two major sources of air pollution in anycountry. Those are unavoidable accompaniments of increased economic activity of anycountry. The number of automobiles has been increasing in Dhaka city at the rate of atleast 10 per cent annually, which has been contributing to air pollution on the one handand traffic congestion on the other.T h e ma i n p o l l u t a n t s f r o m g a s o l i n e p o w e r e d i n t e r n a l c o mb u s t i o n e n g i n e s a r e c a r b o n monoxide, hydrocarbons, nitrogen oxides, sulphur dioxide particulates of lead compounda n d u n b u r n e d c a r b o n p a r t i c l e s . E mi s s i o n s f r o m d i e s e l e n g i n e s a r e s mo k e , c a r b o n monoxide, unburned carbon, nitrogen oxides and sulphur dioxide.

Air pollution seriously affects the respiratory tract and causes irr i t a t i o n , h e a d a c h e , asthma, high blood pressure, heart ailments and even cancer. If this trend of air pollutioncontinued, those living in major cities including the metropolis, will become exposed tot h e s e a i l me n t s a n d a l s o o t h e r c o mp l i c a t i o n s . T h e me n t a l f a c u l t y o f c h i l d r e n w i l l b e adversely affected by lead pollution, which can also affect the central nervous system andcause renal damage and hypertension.In this context, it can be recalled that the average annual deaths from air pollution-relatedd i s e a s e s i n D e l h i i n c r e a s e d

t o 1 0 ,0 0 0 f r o m t h e l e v e l o f 7 , 5 0 0 i n e a r l y 1 9 9 0 s a s w a s revealed in a World Bank study in late 1990s. The level of small particles -- less than 10mi c r o n - - p r e s e n t i n t h e a i r wa s v e r y h i g h , wh i c h c o u l d c a u s e s e v e r e l u n g c a n c e r , according to Delhi based Centre for Science an Environment (CSE).The air quality of Dhaka city shows that the concentration of suspended particles in theambient air is many times higher than normal. This air, which the city dwellers and roadusers regularly breathe, contains lead in concentrations reportedly almost ten times higher than the government safety standard set by the Department of Environment(DOE).About 50 tons of lead are emitted into Dhaka city's air annually and the emission reachesi t s h i g h e s t l e v e l i n d r y s e a s o n ( N o v e mb e r J a n u a r y) , r e v e a l e d a s t u d y c o n d u c t e d b yscientists of Bangladesh Atomic Energy Commission (BAEC). The density of lead in theair of Dhaka city in dry season reaches 463 monograms, the highest in the world. Thelead concentration in the polluted air of Mexico city is 383 monograms and in Mumbai,India it is 360 monograms per cubic meter.The Environment Conservation Act, 1995 and the Environment Conservation Rules, 1997have been enacted by the Parliament. Under the Rules of 1997, Ambient Air QualityS t a n d a r d s , V e h i c u l a r E x h a u s t E mi s s i o n S t a n d a r d s , R i v e r T r a n s p o r t ( M e c h a n i z e d ) Emission Standards and Gaseous Emission for Industries or Projects Standards have beenset

s a fundamental right, includes theright to a healthy environment.What we find is either absence or little effective cooperation of the members of the p u b l i c a n d t h e c o n c e r n e d a g e n c i e s w i t h t h e D e p a r t me n t o f E n v i r o n me n t ( D O E ) i n implementation of laws and regulations to help reduce air pollution. DOE gets littlecooperation also from the transport owners and their employees including drivers in thisregard. DOE's initiatives for daily monitoring of vehicles at certain city points sometimesdo not succeed due to non-availability of members of law enforcing agencies.It may be recalled here that New Delhi in an attempt to reduce air pollution prohibitedi n i t i a l l y 2 0 ye a r o l d v e h i c l e s f r o m p l yi n g o n c i t y s t r e e t s i n l a t e 1 9 9 0 s . T h e y s t a r t e d phasing out 17 year old vehicles from the end of 1998. It was followed by elimination of 15 year old vehicles in 1999.Besides registration of new

auto-rickshaws with front engines was banned from 1996 andregistration of old defense service and government auctioned vehicles was banned from1998. All these steps of the New Delhi authorities have created some favorable impacts inreducing air pollution and in the process have been improving the air quality.The pollutants in the ambient air of Delhi decreased by 4-40 per cent in case of So2, 4-13 per cent in case of NO2, 6-17 per cent in case of particulate matter, 3 per cent in case of Carbon Monoxide and 11-60 per cent in case of lead during 1998, Centre for Science andEnvironment (CSE), a Delhi based nongovernment organization estimate showed.In the past our attempts to prohibit plying of old vehicles in city streets failed either for political reasons or in the face of resistance by transport owners and their employees. Butif our neighboring countries can improve air quality of their cities by banning use of oldvehicles and also relocating some of their polluting industries, authorities in Bangladeshcan also do so

It is time to phase out old and black smoke emitting vehicles from city roads as our rightto live in healthy environment largely depends on it. Good governance helped curb air p o l l u t i o n i n c i t i e s l i k e B a n g k o k , K o l k a t a , K a t h m a n d u a n d L a h o r e w h i l e w e a k administration caused the increase of air pollution in Dhaka and Karachi. The problemshould be h igh on the agenda of the government as well as political parties. Let us hopethat the issue gets the priority it deserves.

Contribution of urban transport system to Dhaka's air pollution : Air pollution in Dhaka is serious due to increasing population andassociated motorization. Although existing air quality monitoring data is limited, it has been clearly shown that the average ambient concentrations of suspended particulatema t t e r ( S P M ) a n d a i r b o r n e l e a d a r e h i g h e r t h a n t h e B a n g l a d e s h n a t i o n a l a mb i e n t a i r quality

standards and much higher than the WHO guidelines. The city's average SPMlevels are about 2 times higher than the Bangladeshi standard of 200 µg/m 3 in residentiala r e a s a n d a r e mo r e t h a n 1 0 t i me s h i g h e r t h a n t h e WH O guidelines of 120 µg/m 3 (24hours) in commercial areas. Lead levels are also high compared to other cities in theworld. Although there is a lack of time-series data, the ambient air quality measurementsavailable for 1990 and 1996 onward indicate that the air pollution is worsening.Diesel vehicles found causing 80pc of air pollution in cityDiesel-run vehicles account for more than 80 per cent of the air pollution inDh a k a a s mo s t o f t h e m f a i l t o c o mp l y w i t h t h e a p p r o v e d e mi s s i o n s t a n d a r d , s a i d a recently published survey report.About 60 per cent of the city dwellers consider motor vehicles as the main source of air pollution, about 55 per cent consider diesel-run buses to be most polluting the air and 22 per cent feel that diesel-run trucks cause the air pollution.

Nearly 60 per cent of the dwellers said they contract diseases because of air pollutiona n d 8 8 p e r c e n t b e l i e v e d s m o k e a n d d u s t a r e t h e m o s t i m p o r t a n t a i r p o l l u t a n t s . The public perception of air polluti o n wa s r e v e a l e d i n t h e s u r v e y, S t a k e h o l d e r s Perception on Air Pollution by Diesel Vehicles in Dhaka City, conducted by the Air Quality Management Project of the Department of Environment and the World Bank. The air quality project director, Mohammad Nasiruddin, said in 2004, they conducted astudy, Roadside Vehicle Emission Testing Programme in Dhaka, where they surveyed2,140 vehicles of all types to identify the principal contributors to air pollution.„At theend of the study, we found 90 per cent of human haulers followed by 60 percent diesel -run minibus

have failed to comply with the approved emission standard, as their smokecapacity is higher than 80 Hartridge Smoke Units (HSU),‟ he said, The study suggested aset of recommendations that included retirement of oldtechnology vehicles following atime-bound road map, introduction of low sulphur diesel, imposition of a total ban on theimport of all types of old vehicles and switchover to natural gas as the main source of transport fuel. The visible signs of ambient air quality of Dhaka is indicating an upwardtrend in gross emissions in recent years. Motor vehicles, especially the two strokes enginevehicles (TSEV) are responsible for the increase in emissions of both local pollutants andgreen house gases due to the rapid growth in the number and use of motor vehicles. Datashows that number of registered vehicles in Dhaka has grown by 60% from 1990 to 1996.TSEVs have outgrown all other types of vehicles. The following table shows the vehicle population by type, utilization, and fuel economy

Air pollution making Dhaka city inhospitable : The volume of poisonous particles in the city air has reached far beyond the permissible level for human body in recent years.The Dhaka city dwellers are always at a serious health risk due to the highly polluted air,warned health experts.T h e i n c r e a s i n g l y h i g h c o n c e n t r a t i o n o f t o x i c e l e me n t s i n t h e a i r i s c a u s i n g a f o g g y blanket in the city sky at present, according to the experts of Air Quality ManagementProject (AQMP) under the Department of Environment (DoE).The AQMP, which has been monitoring the air quality of the city since 2002, has recentlylunched a website to inform the people about the air quality on daily basis.The website reveals that the air quality of the city is lethal for human body especiallyduring winter and post winter.The AQMP advised the city dwellers to stay indoors as much as possible during this timeto avoid health hazards from the pollution.According to the

website, poisonous carbon monoxide, sulphur dioxide, nitrogen dioxide,suspended particulate matter (PM-10) and particulate matter (PM-2.5) exist in Dhaka's air beyond permissible level for human body.

Industrial pollution
t is a matter of utmost concern that many industrial units in the country keep releasing toxic gas and chemicals into the environment, to the peril of human health, crops and aquatic resources. What is supremely ironical is, while the owners of these industrial units as responsible citizens contribute significantly to the growth of the economy and generation of employment opportunities, they prefer to remain indifferent to the vital issue of environment pollution and the resultant damage to eco-system. It is mainly industrial pollution which left the rivers of Dhaka city biologically dead, as 60 percent of the total effluents dumped in the rivers are industrial wastes while the rest are household wastes. Pollution of the city rivers has reached such a level that the groundwater system, where aquifers are recharged from riverbeds, is also being contaminated. Although the Bangladesh Environment Conservation Act (ECA) clearly prohibits pollution of rivers, and makes it mandatory to set up Effluent Treatment Plants (ETP) for certain categories of industries, but no success has been seen yet. According to the Department of Environment (DoE) statistics, there are around 7,000 industries in and around the capital, around 200 of which have ETPs, but many of them do not use the plants in order to maximize profit by cutting the cost of running those. According to the Environment Conservation Rule 1997 under ECA, every industry of certain categories must have inhouse ETPs, otherwise they would not get environmental clearance from DoE, which is mandatory for getting power and gas supply. The pollution that has set in the rivers Buriganga, Turag, Balu and Shitalakkhya has made it almost impossible to treat their water. The overall situation suggests it could not be any graver. Repeated notices of the DoE protests from environmentalists, warnings from environment experts, and the High Court's directives for the government to stop pollution of rivers -- nothing could refrain industrialists from their vile practice of dumping effluents in the rivers. While industrialization is necessary to boost our economy and create employment opportunity, it is equally essential that factory owners obey the laws and install protective measures of international standard. It is time for the relevant ministries and departments to enforce anti-pollution laws, especially in the industrial field. It is at the time of issuing licenses for industries that the applicants should commit themselves to stringent environmental criteria before they are authorized to set up units. Then, there should be oversight bodies to monitor their performance from time to time.