Although Bangladesh has achieved much in the way of poverty reduction and human development, progress has been slower in some urban areas.
Issues such as slow-down of quality job growth, low levels of educational attainment (notably among the youth), and lack of social protection measures have taken the wind out of the proverbial urban reduction “sail.” As the country starts fresh in the new year, it is an opportune time to reflect on some of the key issues affecting urban poverty.
Despite the steady growth in Gross Domestic Product (GDP), successive Household Income and Expenditure Surveys (2005 to 2010 and 2010 to 2016) suggest that Given the accelerating rate of urbanization, it suggests that more people live in extreme poverty in 2016 than they did in 2010. With nearly 44% of the country’s population projected to be living in an urban setting by 2050, this issue is only likely to intensify.
Several factors may be driving this trend. Absence of education and skills dampen labor market participation and productivity. Among those who participate in the labor-force in urban areas, 19% of men and 28% of women are illiterate. For those who received at least some training, a recent study shows that only 51% of eighth-grade students met equivalent competency in the native language subject (Bangla). The figures were markedly lower for other subjects. Similar trends carry through to technical diploma and tertiary level institutes. As a result, many prospective employers report reluctance to hiring fresh graduates.
The Dhaka Metropolitan Area is the economic and political center of Bangladesh and has been the country’s engine of economic growth and job creation. This has contributed to Bangladesh having one of the fastest rates of urbanization in South Asia.
Today, more than one-third of Bangladesh’s urban population lives in Dhaka, one of the world’s most densely populated cities with 440 persons per hectare – denser than Mumbai (310), Hong Kong, and Karachi (both 270).
Dhaka is also one of the least livable cities in the world. It is ranked 137 on livability out of 140 cities, the lowest for any South Asian city surveyed. The low livability in Dhaka disproportionately affects vulnerable populations, such as the poor, women, and the elderly.
Imagine a state-of-the-art processing plant that harnesses laser-sorting technology to produce a whopping 15,000 tons of raisins a year, linking up thousands of local farmers to international markets and providing job opportunities to women.
To find such a world-class facility, look no further than
In Afghanistan’s volatile business environment, let alone its deteriorating security, Rikweda’s story is an inspiration for budding entrepreneurs and investors.
It also is an illustration of the government’s reform efforts to create more opportunities for Afghan businesses to open and grow, which were reflected in the country’s record advancement in the Doing Business 2019 index, launched today by the World Bank.
And Afghanistan is not the only South Asian country this year that took a prominent place among top 10 improvers globally.
. Its ranking has improved by 23 places this year and puts India ahead of all other countries in South Asia. This year, India is ranked 77th, up from 100th last year.
An ever-growing urban population with overflowing and at times chaotic vehicular traffic can make life difficult even for the most well-abled pedestrian.
The challenges become higher for a person with a disability.
‘How can I go out of my home?’ asks Tajkia Mariam Jahan, a wheelchair user from Dhaka, who was confined to her home for seven years due to the road environment.
The city roads are unwelcoming not only for people in a wheelchair like her but also for persons with all types of disabilities.
Hawa Aktar, a woman with hearing impairment, needs clear, visible signs and signals on road crossings and from vehicles. And Bashir Uddin Molla, a student with visual impairment, needs sounds and guidance when she is walking.
None of these facilities are available to people with disabilities living in Dhaka.
Together with more than 1,500 academics, scientists, and policymakers, we participated last week in the Rice Olympics.
The event—formally known as the International Rice Congress (IRC)—provides a unique window on the latest innovations and policies about the globe’s most important staple crop.
“Rice isn’t just a crop,” said Rajan Garjaria, Executive Vice President for Business Platforms at Corteva Agriscience. “It’s a way of life. A place can be made or broken, based on their rice crop.”
The Congress discussed a breadth of topics, but what stood out the most is that rice can be instrumental in making people healthier and in sustaining the planet.
The South Asia Food and Nutrition Security Initiative (SAFANSI), a World Bank partnership that aims to improve food and nutrition security across the region, participated in the Symposium on Sustainable Food Systems and Diets and presented its latest research on linkages among food prices, diet quality, and nutrition security.
Overall, the event underscored and discussed relevant strategies to transform nutrition security challenges into opportunities.
"I have a four-year-old son back in my village. I want to make a better life for him,” says Sharmin Akhtar, a 19-year-old employee in one of Dhaka’s many flourishing garment factories.
Like thousands of other poor women, Sharmin came down to Bangladesh’s capital from her village in the country’s north to seek a better job and create a more prosperous future for her family—leaving behind a life of crushing poverty.
Today, as we mark End Poverty Day 2018, it’s important to note that Sharmin’s heartening story is one of many in Bangladesh and the rest of South Asia, where economic growth has spurred a dramatic decline in extreme poverty in the last 25 years.
And the numbers are striking:
Even more remarkable, South Asian countries experienced an increase in incomes among the poorest 40 percent of 2.6 percent a year between 2010-2015, faster than the global average of 1.9 percent.
It’s worth thinking about how far South Asia has come – but remaining clear-eyed about how far we must go to finish the fight against extreme poverty.
Indeed, it is increasingly clear that
True, the extreme poverty rate is significantly lower in India relative to the average rate in Sub-Saharan Africa. But because of its large population, India’s total number of poor is still large.
And while there has been a substantial decline in the numbers and rate of people living below $1.90 in South Asia, the number of people living on less than $3.20 has declined by only 8 percent over 1990-2015 because of the growing population.
Just look around the world: .
To meet that challenge and be able to compete in the global economy, countries need to prepare their workforces now for the tremendous challenges and opportunities driven by technological change.
To that end, .
The Index will be released on October 11 at the Bank’s Annual Meetings in Bali as part of the Human Capital Project, a global effort led by the Bank to accelerate investments in people for greater equity and economic growth.
No doubt, any country ranking gets high visibility and, sometimes, meets controversy. But I hope it triggers a dialogue about policies to promote investments in people.
To be clear, —or the “frontier”.
The index, irrespective of whether it is high or low, is not an indication of a country’s current policies or initiatives, but rather reflects where it has emerged over years and decades.
The index ranges from 0 to 1 and takes the highest value of 1 only if a child born today can expect to achieve full health (defined as no stunting and survival up to at least age 60) and complete her education potential (defined as 14 years of high-quality school by age 18).
In 2011, Bangladesh and India flagged off the first of their border haats, representing an attempt to recapture once thriving economic and cultural relationships that had been truncated by the creation of national borders.
Border Haats are local markets along the Indo-Bangladesh border that stretches 4100 Kms and runs through densely populated regions.
Conceived as Confidence Building Measures between India and Bangladesh, 4 Border Haats were set up between 2011 and 2015.
- Balat (Meghalaya) – Sunamgunj (Sylhet)
- Kalaichar (Meghalaya) – Kurigram (Rangpur)
- Srinagar (Tripura) – Chagalnaiya (Chittagong)
- Kamalasagar (Tripura) – Kasba (Chittagong)
Initially only local produce was permitted for trade. But subsequently, the range of items has been broadened to include goods of household consumption.
But border haats are not only about trade.
A decade of strong economic growth helped Bangladesh reach lower middle-income status while sharply decreasing its poverty rate, a remarkable achievement. But like many countries in the world, such progress has come at considerable environmental cost.
The monetary cost to the Bangladeshi society of environmental degradation in urban areas, measured in terms of foregone labour output was equivalent to about one percent of the Gross Domestic Product (GDP) annually. If one takes into account the broader welfare impacts of mortality attributed to environmental risks, the economic cost is equivalent to 3.4 percent of the national GDP. Noncompliant industries and inadequate waste management of hazardous and nonhazardous materials are polluting the cities' air as well as surface and ground water. The study also indicated that many rivers around Dhaka are polluted.
Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the world’s most dynamic regions.
It's also one of the least integrated.
A few numbers say it all: Intra-regional trade accounts for only 5 percent of South Asia’s total trade; Intra-regional investment is smaller than 1 percent of overall investment.