A new analysis urges cities in Bangladesh to become engines of inclusive growth by aligning jobs, services and public investment with where people and firms are gathering. The study finds fast and mostly unplanned urban growth has focused jobs and people around Dhaka and Chattogram, making a clear job corridor. This corridor now holds a large share of the nation’s wage work and drives much of the country’s manufacturing and exports. Clustered firms gain from being close to workers, suppliers and buyers, and this creates new chances for hiring and business growth. At the same time, concentration brings higher land and transport costs, traffic, pollution and the risk that poorer households are left out. Many medium and large firms are moving from city centers into nearby towns such as Gazipur, Savar and Narayanganj, and new pockets of growth are forming. These peri urban moves signal chances but also a need for better roads, housing, water, drainage and energy where jobs are growing. To steer growth in a fair way, the analysis sets out four practical priorities for planners and leaders. First, link spatial planning with public investment so roads, utilities and services follow where jobs and factories are locating. Second, devolve power and resources to local governments so they can deliver services, raise money and plan for local needs. Third, align special economic zones and export processing areas with real market demand and local labor pools to boost job creation. Fourth, treat Dhaka and Chattogram as metropolitan regions and use metro scale investment tools to plan across towns and municipalities. Together these steps can lower costs for firms, make services work better and spread good jobs to more places. For workers and families, this could mean easier access to schools, clinics and steady work near home. For small business owners, clearer plans and local support can make it easier to expand and hire more people. The report also recommends practical short term actions that can help right away. Simple maps of where growth is happening, better road links to ports and factories, and shared utilities in industrial zones can make a quick difference. Local training tied to nearby jobs and targeted support for housing and drainage are small steps that can yield fast results. The analysis stresses that market forces have already shaped where firms cluster, so public policy should work with those forces rather than fight them. At the same time, public spending has been misaligned in places, and better budgets and coordination are needed to avoid waste and risk. The message is hopeful and practical: with clearer rules, sensible public spending and stronger local leadership, cities can create more and better paying jobs. Pilots that bring city leaders, planners and private firms together can show what works and then be scaled to more towns and districts. By acting now, Bangladesh can turn urban growth into wide shared gains, build safer neighborhoods and help more people move out of poverty.
Cities as Growth Engines: How Bangladesh Can Turn Urban Expansion into Jobs
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