(The following are parts of a study done by the KDA)
Analysis at three levels for the city of Khulna:
National, regional and local.
National context:
Export structure has undergone major transformation in which jute has been replaced by ready-made garments
Informal economy:informal activities in the cities in Bangladesh are expanding at rapid rate. Through these informal activities, the small entrepreneurs maintain vital links between the rural and urban areas as well as other forms of backward and forward linkages. In the absence of such informal sector, the formal sector of the urban area could not provide employment to such large number of labour force.
Infrastructure: The present trend of urbanization and macro economic characteristics in the country and the role of urban sector in the GDP suggest that the urban sector will play a dominant role in the national development. In particular construction of the Bangabandhu Jamuna Bridge, other bridges and an excellent road network system throughout the country will boost the emergence and development of growth centres, semi-urban centres and strengthen the rural-urban continuum in the country. Such a situation will lead to further growth of the cities, particularly the big ones like Khulna. Thus Khulna will have to be ready to accommodate increased population and provide required services to these (migrants) additional people.
The KDA believes that migration will occur towards Khulna thus the city will grow.
Performance of Khulna at the regional level
The city of Khulna serves the whole south-western region of the country in terms of providing transport and trade network, port facilities, producing industrial goods, and providing health and educational facilities. The region of Khulna is rich in terms of raw materials and cheap labour force for industries. Khulna region contributes to about 82 percent of the shrimp production and 74 percent of the shrimp farms. Eight percent of the nation’s export earnings come from shrimps and frozen food which is mainly concentrated in the Khulna region. The export is mainly done through Mongla port.
The KDA assumes that in the future, Khulna will continue to play the economic role that it is playing now. The KDA also assumes that its manufacturing sector will be further expanded, if required infrastructure, policy support including credits and investment opportunities are given. New industries can also be set up in appropriate locations.
Strong agricultural base around Khulna city: the hinterland of Khulna is highly rich in production of paddy, vegetables and horticulture of several varieties.
Local context
Traditionally Khulna city has been functioning as a large employment centre. Despite the fact that many industrial units have become sick.
The KDA assumes that prospects for employment will rise with the completion of Rupsha Bridge and the possible installation of gas grid. The study team also assumes that decentralization of administration and industry and gradual incentives of investment away from Dhaka will facilitate economic activities and generate employment in cities like Khulna. (national policy)
Forecast for private investment is extremely difficult because of lack of data and stability.
Housing: there is at this time no shortage of housing in Khulna but it lacks quality. (illegal housing ?)
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