Rapid Urbanization, Poverty and Capabilities in Bangladesh

The main purpose of this paper is to examine the causes and consequences--in particular, the policy implications-- of the ongoing urbanization in Bangladesh. Like many other Asian developing countries, a rapidly increasing share of the population of Bangladesh migrates to urban centers in search for employment opportunities outside agriculture in industrial enterprises or the services sector. For the first time in its history, the urban population is growing faster than the rural population, At the same time, the labor force in non-agriculture is growing faster than the labor force in agriculture. But the employment opportunities in either sector are not growing adequately. This paper attempts to analyze the emerging trends and patterns of urbanization in Bangladesh within a dynamic dual-dual framework with a strong emphasis on rural-urban migration and the informal sectors. The analysis pinpoints, among other things, the need to build up productive capacities in order to create adequate employment and incomes for the rapidly growing population---particularly in the urban areas.The development of productive capacities, which is a precondition for the creation of productive employment opportunities, is a centra