A Summary by Rituparna Das

Dept of Architecture, Town And Regional Planning

IIEST, Shibpur
on selected chapters of

BANGLADESH: THE PATH TO

MIDDLE INCOME STATUS FROM AN
URBAN PERSPECTIVE
Author- Elisa Muzzini and Gabriela Aparicio

ABSTRACT
What do we understand by Growth ? Is Growth related to
Urbanization? Yes it is indeed. Growth is fueled and
sustained by an inevitable entity called -Urbanizationfollowed by its Transition and Transformation. Growth
and Urbanization occurs in tandem hence no country or
place has grown or developed without a significant Urban
Transformation and Development.
Bangladesh is no exception to it.
The authors contribution plays a remarkable role in
strengthening the knowledge and understanding of the
spatial and economic dynamics of the urbanization of
Bangladesh. In order to achieve a middle income status by
any country Urbanization is inevitable. No country has
achieved a middle income status without its Urbanization.
In order to be aware of the major scenario I have chosen
an excellent Piece by Elisa Muzzini and Gabriela Aparicio Bangladesh: The Path to Middle Income Status from an
Urban Perspective, in which the author has showed us
the trends of urbanization through the lens of garment
industry and the countries goal to reach a middle income
status by 2020.
4/8/2016

Table of Contents
Overview.......................................................................................................................... 1
Introduction ....................................................................................................................... 1
Objective............................................................................................................................. 1
Chapter -1 Envisioning The Future(A Competitive Urban Space For Growth)...................... 2
Introduction ....................................................................................................................... 2
Critical Appraisal ................................................................................................................ 2
Conclusions ......................................................................................................................... 3
Chapter -2 The Economic Growth Drivers Of Urban Areas ................................................. 3
Introduction ....................................................................................................................... 3
Critical Appraisal ............................................................................................................... 4
Conclusions ........................................................................................................................ 4
Chapter -3 Drivers and Of Obstacles To Urban Competitiveness ....................................... 5
From The perspective of Urban Growth
Introduction ....................................................................................................................... 5
Critical Appraisal ................................................................................................................ 6
Conclusions ......................................................................................................................... 6
4 Strategic directions adopted by Bangladesh to gain urban competiveness
in global economy ............................................................................................................ 6
5.Lessons learnt from this piece of work- The impact of the study ..................................... 6
References ....................................................................................................................... 7

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1.Overview
INTRODUCTION

Bangladesh seeks to attain middle-income status by 2021, the 50th anniversary of its
independence. To accelerate growth enough to do so, Bangladesh needs to build a
competitive urban space that is innovative, connected and livable. Bangladesh's urban areas
have to take proactive measures to improve and sustain all three drivers of competitiveness innovation, connectivity and livability. The results of a survey of 1,000 garment firms conducted to provide a lens through which to investigate urban competitiveness - reveal that
Dhaka City is the most productive location for garment firms in Bangladesh. However it is
falling behind in accessibility and livability because of high congestion and severe constraints
in land and housing markets and moreover it needs to gain a competitive edge in higher
value-added products and services.
Peri-urban areas of Dhaka are emerging as competitive manufacturing centers, but they suffer
from Dhaka City's congestion and have less access to infrastructure. Chittagong City has
failed to capitalize on its comparative advantage as the country's largest seaport city.
Strategically located export processing zones are higher-productivity, higher-cost locations
that are partially shielded from the inefficiencies of urban areas. Medium-size and small cities
are uncompetitive distant places, which need to foster local entrepreneurship to find their
comparative advantages. Strengthening competitiveness across Bangladesh's cities calls for
coordinated and multipronged interventions encompassing infrastructure, institutions, and
incentives to transform Dhaka into a globally competitive metropolitan region, leverage
Chittagong City's natural comparative advantage as a port city, promote strategically located
export processing zones to foster industry competitiveness and spearhead urban reforms, and
create the enabling environment for local economic development in medium-size and small
cities.
OBJECTIVE

To analyze the empirical evidences produced by the author on the drivers and constraints of
urban competitiveness through the lens of Garment factory that has been a major sector of
economic growth an industry that has thrived through the ages of the Urbanization of
Bangladesh. The survey of the garment sectors can show the variation of significant urban
competitiveness in Bangladesh.

CHAPTERS SELECTED FOR SUMMARISATION

Chapter -1 Envisioning The Future(A Competitive Urban Space For Growth)

Chapter -2 The Economic Growth Drivers Of Urban Areas
Chapter -3 Drivers and Of Obstacles To Urban Competitiveness
From The perspective of Urban Growth
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2.Chapter -1 Envisioning The Future

(A Competitive Urban Space For Growth)
1.1 INTRODUCTION

A urban growth is characterized by a large density of population , rapid urbanization

and a growing economic density, but Bangladesh has shown a exceptionally high
population density and a relatively lower economic density.
Even in Dhaka the economic output lags far behind the expected size of population density
compared to other cities of same density in an international perspective. Bangladesh having a
current economic growth of 6 % (World Bank-2012) has to achieve a economic growth of
above 8% to attain a ,Middle income Status by 2021 which means focusing on economic
density rather than population density .
1.1.1Bangladesh s urban space today Implications for The Growth
Agenda
Bangladeshs major metropolitans comprise of Dhaka and Chittagong . Dhaka is estimated to
have a population of 15 million which is roughly 3 times the population of Chittagong.
Bangladeshs urban space characterizes a high population density that is (1015 people per sq
km) and a low economic density. Dhakas urban population aligns with the countries with
similar level of economic density.
Output from Dhaka and Chittagong dominates the economic benchmark of Bangladesh.
About 10 percent of Bangladeshs population lives in Dhaka and generates 36 percent of
GDP and Chittagong 3 percent of population procures another 11 percent GDP.
Garments are Bangladeshs biggest economic success hence the economy largely lies in
export and low cost manufacturing of garments . but Bangladesh experiences a very poor
infrastructure and services which are a threat to future urbanization of it . It is observed in
spite of growth of population the GDP lags behind a certain mark.
1.2 CRITICAL APPRAISAL

1.2.1 Lack of urban and economic competitiveness

Bangladeshs urban features- Extreme high population density and extreme poor
infrastructure and urban services, are negatively affecting the overall productivity,
connectivity and the livability of the Urban Space, thereby paving a hindrance to the growth
of urbanization.
Bangladeshs economic backbone largely lies within the Garment production and Exports.
The countrys specialization with low value added garment production has served well till
to date but its highly insufficient to achieve a middle income status without a competitive
economic growth. Major constraints to achieve a Middle income Status lies within inefficient
infrastructure for exports and shifting of industries to peri-urban areas from Dhaka and
extreme congestion snapping access to infrastructures.
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Moreover having a high population density doesnt necessarily means a high economic
density. From an economic geographical perspective its the economic density that is GDP
which is more essential to bring urbanization over population density.
1.2.2 Urban Remedies
Through a A birds eye view of a middle-income Bangladesh : Taller Mountains and More Hills
Ellisa Muzzini and Gabriela Aparicio-has analyzed that as Economy mature the concept of
population density and economic growth becomes contrasting. The increase in economic
density is represented by Taller Hills. this can be achieved by shifting the economic structure
of a metropolitan area from labor intensive manufacturing towards high tech manufacturing,
increasing the quality of export, upgrading the skill mix from local and extreme cheap labor
to enhanced internationally inclined work force . Moreover Bangladesh need to increase
More Hills that is increasing the percentage of population in non agricultural sectors. The
two basic outcomes of scenarios of Lower Middle income Bangladesh 2010 are emphasizing
the path of increased economic density or the path of Urbanization to attain a Middle income
status by 2021.

2. Chapter-2 The Economic Growth Drivers And Obstacles in the

Perspective of Garment Industry.
2.1 INTRODUCTION

Industries serve as an economic backbone of a country. It is considered as one of the major

drivers of Urbanization. The garment sector in Bangladesh is one of the major industry that
has thrived along the ages of urbanization. It serves as Bangladesh largest export industry
amounting to 40 percent of formal industrial employment. It has paved a large economic
growth since 1977 after the establishment of first garment industry at Chittagong. Now
Bangladeshs main garment producing centers are Dhaka, Chittagong and the peri urban area
of metropolitan Dhaka. The industry predominantly lies in the urban fabric producing 93
percentage of garment sector jobs. This chapter is an original evidence placed by the authors
on urban competitiveness based on a survey on garment sector on 2011.
2.2 CRITICAL APPRAISAL
2.2.1How Dhaka became the kingpin of garment industry
Jute served as the major business backbone and export industry of Bangladesh from 1950s1960s. but after the major fall during 1970s after emergence of substitute materials. After
suffering a major Financial loss resulting economic instability, Bangladesh insisted upon
developing manufacturing of garments and exports under the General Agreement of Tariffs
and Trade of the Multi Fiber Agreement. In 1977 , Desh garments in Chittagong with
venture with Korean company Daewoo was an unparallel success . garment industry is now
the prime economic Driver of Bangladeshs socio economic development. Almost 2.5 million
of population in engaged in Garment industry.
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2.2.2The Economic Growth Drivers Of Bangladesh

In order to identity the economic growth drivers, the author has first defined the tiers of
Bangladeshs urban space followed by a survey of the garment firms in 6 location where
production is concentrated.
A . Political administrative- Bangladesh has 6 urban bodies namely Dhaka, Chittagong,
Khulna, Rajshahi, Barishal and Sylhet. Bangladeshs urban population was 19 million at
2001 from political administrative perspective. In 2011 Dhaka city was split into two
administrative sectors( north and south Dhaka).
B. Metropolitan -Bangladesh comprises of metropolitan areas , city corporations and
municipalities. Though these urban bodies doesnt have political power they are just
economic centers. The author has observed that the urban features has spilled over the peri
urban areas surrounding the corporations. Dhaka, Chittagong, Khulna, Rajshahi, falls under
metropolitan zone where as Gazipur, Kamadrasul, Narayangang, Savar and Tongi are defined
as peri urban areas.
C .Statistics -According to 2001 statistics the urban population is estimated to be 29.4

million( Bangladesh bureau of statistics ).

D. Economic- it is observed that peri urban areas have a larger number of non farming
activities which are responsible for accounting the economic growth. Farming activities are
higher in the city centre than periurban areas of Bangladesh. From economic perspective the
urban population was estimated to be 19 million at 2001.

(Bangladesh: The Path to Middle Income Status from an Urban Perspective Author- Elisa
Muzzini and Gabriela Aparicio Source Bangladeshs 2001 census data, Bureau of Statistics)

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2.2.3 The Economic Obstacles Of Bangladesh

Why Dhaka is losing to the urban competiveness of peri -urban areas?
Dhaka is experiencing Dispersion due to certain urban constraints like , heavy congestion of
the city, leading to less accessibility to infrastructures and communication, high cost of land,
rise of more housing sectors and moreover there is limited number of alternative industries to
counterpart the shifting of major garment industries. Dhaka has the highest Congestion Index
in South East Asia in which an average commute time of 50 min can reach more than 2
hours. wasted time on street congestion leads to a loss of 3.2 million business hours per day
followed by environmental costs and business loss of passenger transport .
ban on city trucks due to congestion has given rise to shipping costs.
No living up gradation of garment sector workers with a very low 41 percentage access to
water supply. The environment is infested with crime and confusion l leading to a poor urban
infrastructure for housing and accommodation. Dhaka has reportedly lesser frequency of
garbage collection and disposal compared to peri urban areas.
Hence Dhaka faces a gradual decline in industrial base and economic growth. Peri-urban
garment firms are more land efficient, better accessibility to transport and highways, lower
crime rates, and have opted for a integrated vertical business model.
Comilla has experienced a vibrant urban base due to its strategic location on the DhakaChittagong Corridor. It is enjoying a competitive base in cotton textiles and footwear and
paid minor attention to garment sector.
2.2.3.1 Failure of Chittagong city to align itself to the competitive
urbanization.
Chittagong city is the best performing city in terms of land use , viability , cost of land and
housing accommodation for workers and urban mobility. But Chittagong is comparatively
less competitive to Dhaka in field of market, and access to skilled labors, suppliers and
business.
Unfortunately in spite of its strategic location near to the sea port, Chittagong has suffered
economic loss and stagnancy due to the non functionality of the sea port , Bangladeshs
seaport being the most inefficient sea port of the world. Therefore its hampers the major
export business slowing down the urban economy of Chittagong.

2.2.4Conclusion
Bangladeshs urban features- Extreme high population density and extreme poor
infrastructure and urban services, are negatively affecting the overall productivity,
connectivity and the livability of the Urban Space, thereby paving a hindrance to the growth
of urbanization.
Bangladeshs economic backbone largely lies within the Garment production and Exports.
The countrys specialization with low value added garment production has served well till
to date but its highly insufficient to achieve a middle income status without a competitive
economic growth. Major constraints to achieve a Middle income Status lies within inefficient
infrastructure for exports and shifting of industries to peri-urban areas from Dhaka and
extreme congestion snapping access to infrastructures.
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4 Strategic directions to be adopted by Bangladesh to reach a middle

income status by 2020 ( aligning with the authors view)
A competitive urbanization is indispensable to accelerate growth in both the sectors that is
economic and spatial. The country needs to adopt proactive measures to sustain the all three
drivers of competitiveness
Innovation
Connectivity
Livability
1 The Dhaka metropolitan needs to evolve a diversified economy with highly skilled human
resources .
2 It need to be connected internally and with its per urban areas.
3 Both Dhaka and Chittagong needs to build urban competitiveness globally for increasing
productivity and economy.
4 Leverage citys natural comparative advantage as a port city by expanding and improving
operational infrastructures and zones
5 Importance to be given to upgrade and improve existing housing , livability and amenities
to promote a sustainable urban space.
6 Foster a vertical business model by promoting entrepreneurships , competitive business
models, higher value added industries and internationally mobile workforce.
7 Promote integrated land management and transportation in order to cut down business loss
promoting strategically located EPZs to strengthen industry competitiveness and spearhead
urban forms.
8 Upgrade infrastructure in order to transform peri-urban areas of metropolitan Dhaka in to
globally competitive manufacturing centers.
9 Moreover local government with close partnership with private institutions has an
important role to play as a coordinators , convertors , and facilitators to offer entrepreneurship
and innovation. They can support research and Development (R & D) and innovations
through upgraded business models and knowledge networking with universities and
institutions.
10 Development of business environment in small and medium sized cities to add on to the
overall economic growth of Bangladesh.

5.Lessons learnt from this piece of work- The impact of the study.
The lessons learnt from the analysis can shed light how to create a better urban environment
benefiting not only the garment sector but other urban based issues and sector as well.
How such factors affect or effect an urban scenario of a region are necessary considerations
for future planning and executing master level plans for overall development of a country,
state or region.
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References
1.Bangladesh bureau of statistics 2009 . economic census Dhaka
2.Haider. Mohammed .2007. Competiveness of the Bangladesh readymade garment industry
in major international market. 3(1),3-27.
3.World Bank .2010. competitiveness and growth in Brazilian cities. Local policies and
actions for innovation. World bank 2012. Bangladesh : Towards accelerated , inclusive and
sustainable growth : An overview : World Bank.

THANK YOU

MURP-151,IIEST SHIBPUR