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.