Poverty is one of the most challenging issues especially in Bangladesh, which needs to be addressed through the multidimensional lens. Poverty alleviation in all its forms remains one of the greatest challenges humanity continues to face. Understanding poverty holistically as a multi-faceted and complex process is crucial for proper targeting of the government, and the donors including the NGOs. Rapid growth in countries such as China and India have reduced poverty by millions, however, there has been uneven progress. Over the past years, poverty alleviation programmes were mainly targeted for the vulnerable groups, communities affected by climate-related calamities in the rural areas. However, as urbanisation is growing rapidly in recent years, the number of the rural poor is gradually declining. On the other hand, there is an exodus of rural migrants into the cities which is causing urban poverty. Yet, the governments have given less attention to urban poverty.
Rural poverty has traditionally been higher than urban and this inequality although decreasing has continued. The rate of rural poverty was 42% and the rate of urban poverty was 23% across the world (The World Bank, 2020). It was found that 8 out of 10 poor people were living in rural areas in Bangladesh. However, the rate of urban poverty gradually increased during recent years (The World Bank, 2019).
In most countries of the world, the overarching goal of poverty reduction and deprivation requires strategies to drive the rural economy to expand the opportunities of people living in the rural areas. Migration is predominantly occurring in rural poverty which also largely contributes to urban poverty and increases pressure on already tight labour markets as well as on the social infrastructure of already congested urban areas. Effective policies for the reduction of rural poverty continue to be a vital factor in building inclusive societies and requirements for balanced growth.
Urbanisation is a global phenomenon that is rapidly increasing where 55% of the global population live in urban areas, and it is estimated that by 2050, 70% of the population will live in those areas (The World Bank, 2020). Compared to rural areas, urban areas have greater social and economic development, more labour opportunities, and access to more diverse and better essential services. However, urban regions also suffer from poverty. The rising population is causing an increase in poor people in the urban regions. As the rural population growth stagnates, the urban population will continue increasing. Changes in population dynamics are giving rise to urban poverty. It has been forecasted that by 2035, the majority of individuals in extreme poverty will live in urban areas. These challenges have been addressed in the Sustainable Development Goals (SDGs).
Poverty had been gradually declining until 2019. Due to the ongoing pandemic, an estimated 60 million urban poor residing in the low-income settlements across different regions of Bangladesh are despondent due to the lack of work opportunities, loss in income, Water, Sanitation and Hygiene (WASH) facilities, insufficient access to healthcare and rise in violence against adolescents & women. The amount spent on food has also reduced significantly. All these led to the emergence of the 'new poor' which is rather a new notion. Lack of income during the pandemic has forced many to return to rural areas, but the government is yet to pay attention to these 'new poor' in a bigger way.
Rural-urban migration is a major contributory factor for urbanization. However, the ongoing pandemic has caused reverse migration especially during the lockdown period in Bangladesh.
It is difficult to survive in big cities like Dhaka or Chattogram without any income, especially when people live hand to mouth. As a result, people rush to their hometowns or villages before every lockdown. The urban areas are highly concentrated zones of informal workers, who are the most affected by the pandemic. But this reverse migration is putting additional stress on the rural labour market which is already running at the overcapacity. The people who migrated from the urban areas were mostly employed in the daily labour or service sector whereas there is no demand for these kinds of jobs in the rural places.
Poverty still remains mainly a rural challenge. Many developing countries have high rural populations where 80% are in poverty. The situation of the rural poor is made worse by inadequate access to public services, infrastructure, and social protection. The Covid-19 pandemic has aggravated the situation by decreasing incomes, mobility, and food security. However, the eradication was disproportionately concentrated in rural areas and the majority of advancement took place in rural areas in Bangladesh.
Rapid urbanization has led to the concentration of poverty in urban areas more than in rural regions over time resulting in 'urbanisation of poverty'. This is because the cities are overcrowded and are unable to create enough opportunities. There are not enough jobs and facilities for all. Cost of living in urban areas is also higher than in rural areas. A significant portion of their income is spent on housing since the demand for housing is very high compared to supply in cities, specifically in large cities such as Dhaka and Chattogram. Many live on the outskirts of the cities to save on their housing. But additional cost and time of travel and lack of urban facilities do not make them better off either.
The pandemic has been an eye-opener on the needs of the urban poor. The urbanization of poverty has to be controlled and stopped by active policy interventions by the government. These should be attempted in several ways. Firstly, the urban poor need support through a comprehensive social net programme. Secondly, more investment is required in basic amenities such as healthcare, education, water, and sanitation in poor urban areas. Thirdly, they should have access to finance which can help the youth and the women become entrepreneurs. Fourth, skill development, training, and access to technology will help the poor find better jobs. Fifth, better urban planning and investment are needed for improving the conditions of slums and housing of the poor. Finally, urban poverty can be tackled to a large extent by developing the rural economy which is already transforming. More investment in rural infrastructure and facilities will inhibit migration from rural to urban areas and decrease stress on the cities. Without attending to the urban poor, several economic and social ambitions including poverty reduction and sustainable cities are not achievable. These goals are at the core of sustainable development.
Nevertheless, urban poverty faces several challenges in the context of focus, general vulnerability to crimes, economic and social problems, research, the potential for change, healthcare, inequalities, and external shocks such as the Covid-19 pandemic. Donors and policymakers pay less attention to dealing with urban poverty which causes a hindrance in the overall poverty alleviation. To ensure proper distribution of resources and alleviate poverty, we need to understand that rural and urban poverty are critical and multidimensional and that rural-urban migration is the main reason for urbanisation. Urban poverty in Bangladesh is not statistically updated on databases, with locations, population sizes and natures of slums across the country along with political resistance, incorporating urban poverty into national plans and policies.
Nabila Noshin is currently pursuing her Masters' in Development Studies at North South University.
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