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Easing Bangladesh's headaches

Shahid Alam looks at some options
COMPACT Townships and the Magical 10% is an absorbing little book by Salim Rashid, a former Professor of Economics at the University of Illinois, Urbana-Champaign (USA). Seven chapters try to drive home the case for introducing compact townships in Bangladesh in order for it to attain "the magic of 10 percent economic growth." He believes that, just as some East Asian countries have attained the magical 10% growth at some points of time, Bangladesh has the potential to achieve the same, provided certain conditions are met. Rashid offers a few suggestions towards realizing this figure, but he is also aware that not everyone will be on the same wavelength with his ideas. Therefore, he mentions these caveats towards the end of the book: "There are those who do not believe in 10 percent economic growth; this monograph is not for them. There are those who believe that 10 percent growth is worthwhile only if we can do without any significant changes to 'grameen' Bangladesh; this monograph is also not for them. It is for those who believe that the first requirement of Bangladesh is economic growth."
The author begins with a premise that not many would disagree with: that economic development equates with human development. Comparing the three factors of production of land, labour, and capital, he concludes that human labour and intelligence are of paramount importance. Keeping that in mind, Rashid further assumes that anomaly in land allocation is the principal obstacle to long-term sustained growth in Bangladesh. For alleviation of this problem, he proposes the creation of Compact Townships (CT), which seek "to build small, yet economically viable and ecologically sound, urban islands in rural Bangladesh. The provision of urban benefits in rural areas is the best way to enrich rural Bangladesh and preserve the prosperity of the cities." He elaborates on the CT concept as applied in practice: "A Compact Township (CT) is an agglomeration of houses, hospitals, schools, markets, rural industries and local governmental units that provide al) basic services to a population of about 20,000. Eventually some 6000-7000 of these will become the basic rural landscape of Bangladesh, supplemented by a scattering of homesteads and some remaining number of the existent 70,000 villages."
The economic principle behind introducing CT is to "economise on land by seeking profitable measures that compactify land use, beautify habitation, and utilize agglomeration economies." And the putative benefits from CTs: "This will save land, allow economical infrastructure and decentralization of hospitals, schools, markets, industries and government, permit marketing of HUNTA (high value non-traditional agriculture), provide employment, raise rural incomes and encourage food security. In other words: the root of a solution lies in providing urban facilities in rural areas (italics in original)." This is quite an innovative approach, one that, on the face of it, appears to be sound. If implemented, and properly executed, it could also conceivably rid Dhaka of the opprobrium of seemingly being a perennial worst livable city of the world (as judged by the reputed Economist Intelligence Unit for the last two years, as well as in some other years). As it is, it resembles a glitzy mega-slum, and the way things are going, the once pleasant large town of wide spaces and greenery, and
almost unheard-of traffic snarls will become an even more acute urban nightmare for its constantly expanding population.
Rashid has experienced the gargantuan challenge of trying to convince influential persons of taking a serious look at his proposal. He laments that, in spite of having formulated the idea in 1998 and having promoted it since then, except for BUET's URL programme, "neither bureaucrats nor academics have been willing to provide any active support...." While his has been a conviction waiting to get implemented, he is also canny enough not to view it as the panacea to put paid to all other remedies: "I have no special attachment to the CT if it is not viable." Nonetheless, in the very next sentence, he betrays his preference for his own idea to take root above anything else: "But let me repeat: what are the alternatives? How will the needs of another 100 million people be met in the coming decades (italics in original)?”
The author advocates pro-poor growth because, otherwise, one could easily visualize a scenario where the economy could have a fast growing GDP, but also be weighed down by poverty. He is worried that, if the current trends continue, the 250 million people who are projected to populate this country at the end of the 21st century will not have enough sustainable land to support them, especially as new housing is gobbling up agricultural land at the rate of one percent per year. Besides his CT suggestion, there is no denying the wisdom of his words that,".. .to achieve sustained 10 percent growth for the next 40 years we need to think forty years ahead, envision where we wish to be and extrapolate back to see what this implies for economic policy today."
Rashid argues for markets to work efficiently, and identifies key sections of the society who will need to contribute towards this end: "Markets work well only when they are embedded in societies. It is the bureaucracy plus the politicians, what may be called the 'bureaupolity', that is of critical importance in ensuring a smooth embedding. A despondent bureaupolity
cannot succeed in such a task. The bureaupolity must simultaneously believe firmly in 10 percent growth and acquire the intellectual depth to stand firm against the pretensions of economic 'science'." That last sentence is wonderfully tongue-in-cheek, but he also urges the assistance of non-resident Bangladeshis, who have time and resources, to create the critical mass for making viable eco-tourism oriented CTs.
Rashid has several kinds of CTs in mind. Different chapters flesh out the skeletal suggestions he sets forth in the introductory chapter. For example, Chapter 3 deals with "Transported Oriented CTs: Highway Bazaars", Ch 4 with "Production Oriented CTs: RMGs", Ch 5 with "Farm Oriented CTs: Mini Dairies", and Ch 6 with "Eco-Tourism Oriented CTs: Sarankhola”. He stresses on the need for RMG relocation and the creation of CTs oriented around that sector to ease congestion on the capital city as well as for economic efficiency: "If RMGs agree to move into small complexes of, say, 20,000 people along any area where there is both transport and power, then we will have the possibility of agglomerated self-governing areas which provide housing, schools, hospitals, computer centres, etc., for their own population — in other words, the creation of Compact Townships."
He suggests that the BCMEA should help out the government in realizing such a scheme, but, when he had talked with the organization in 2008, he received what, to him, were myopic ideas that could do more harm than good. Its suggestion for an RMG 'farm', the author believes, "may just work to keep up RMG profits, but how will this provide an additional advantage to the lives of the hundreds of thousands of workers? What about housing, education, hospitals, and pensions for these workers? To upgrade products we must upgrade workers.... This is one of the crucial questions distinguishing social from private gain."
Regarding transport-oriented CTs, he is scathing about the roles played by the key figures in the sector: "...while bureaucrats and engineers spend so much time and effort in securing foreign funds, closer attention to domestic rearrangements would expand our capabilities and provide significant addition to GDP transport value added." The chapter on "Eco-Tourism Oriented CTs" provides some positive indications in terms of Rashid's CT proposal. Granted that the respondents of his survey were drawn from one upazila, Sarankhola, and, therefore, the results cannot be extrapolated in the context of the entire country, but the results could be viewed as encouraging, and, at the very least, encourage a scientific national survey on the same subject. Regarding the Sarankhola survey, Rashid finds: "In the sample, about 86 percent people of the area said they were willing to move to a Compact Township if they could get easy access to education, healthcare, fresh drinking water, agricultural land, market places and alternative employment facilities." Food for thought for people concerned about Bangladesh's future with expanding population, limited space, and the woes of a glitzy mega-slum called Dhaka city. Compact Townships and the Magical 10% contains some interesting ideas that could eventually work out for the benefit of Bangladesh and its people.
SHAHID ALAM IS AN EDUCATIONIST, ACTOR
AND FORMER DIPLOMAT