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Dhaka River Basin (Bangladesh)

Socioeconomic Development

Dhaka is one of the populous and mega cities in the world and it will become fifth larger city by 2030 in terms of population. Population of Dhaka was 2.8 million in 1981, which is now around 15 million. The Population growth rate is 6% and population density is 200 per 100 decimal where over 40% of the population lives in slums.

Bangladesh has been facing severe economic problems. This country has a per capita income of only US$781 as per Bangladesh Ministry of Finance 2010. Feeding 160 million people with a piece of land measuring 147,570 square kilometers is really challenging. Having an annual budget of USD $ 23.37 billion, this country is struggling to meet the basic needs for its citizens. Bangladesh is marching toward achieving a middle-income status. Total size of GDP was about US$110 billion in 2011. It has Steady GDP growth rate (about 6%) despite global economic meltdown and per capita GDP was US$755 in 2011. External debt has declined to 23% of GDP in 2011, from the peak of 45% in 1994. External debt service in relation to export of goods and services has declined to 3% in 2011, from the highest 30% in 1980. Dependence on foreign aid declined to 2% in 2011, from its historical high of 10% in 1980. Bangladesh in the only country in South Asia enjoying external current account surplus in recent years and foreign exchange reserve has touched US$12 billion mark this year (2012) for the first time since independence of the country.

Economy has been transforming from its agrarian base to a dynamic manufacturing and service oriented base. Share of industrial sector has increased to 30% of GDP in 2010 from less than 20% in 1990s. Agriculture sector also performed well, since it was strongly promoted by the state. Rapid transformation in economy is largely attributed to the emergence and tremendous growth of the export-oriented readymade garments (RMG) sector. RMG sector accounts for more than 40% of the manufacturing base, and about 80% of the total export.

Table: Brief macro-economic scenario

Indicators

2009 (actual)

2010 (actual) 2011 (actual) 2012 (projected) 2013 (projected) 2014 (projected) 2015 (projected) 2016 (projected)
GDP growth (%) 5.7 5.8 6.3 6.7 7 7.2 7.6 8
National savings (% of GDP) 29.6 28.8 28.3 29.8 30.4 31.1 32.8 33.8
Export (% change) 10.1 4.2 15 16 16 16.5 16.5 17
Bemittance (Billion US$) 9.7 11 11.5 12.4 13.6 15.1 17 19
Foreign exchange reserve (Billion US$) 7.5 10.7 10 12 13.2 14.5 15.6 16.7

 

Table: Trend of transformation of broad sectoral shares in GDP

Share in percentage (Average growth rate in percent)

Sector 1981 1986 1991 1996 2001 2006 2010 2011
Agriculture 33.07 (3.31) 31.15 (3.31) 29.23 (2.23) 25.68 (3.10) 25.03 (3.14) 21.84 (4.94) 20.29 (5.24) 19.95 (4.96)
Industries (Manufacturing) 17.31 (5.13) 19.13 (6.72) 21.04 (4.57) 24.87 (6.98) 26.20 (7.45) 29.92 (9.74) 29.93 (6.49) 30.33 (8.16)
Service  49.62 (3.55) 49.72 (4.10) 49.73 (3.28) 49.45 (3.96) 48.77 (5.53) 49.14 (6.40) 49.78 (6.47) 49.72 (6.63)

Water usage in socio-economic activities

An increasing demand for both surface and groundwater comes from irrigation in the basin. It accounts for 58.6% of total demand for water. However, in setting priorities for allocating water during critical periods, the National Water Policy gives this sector a relatively low priority and sets the following order: domestic and municipal uses, non-consumptive uses (e.g. navigation, fisheries and wildlife), river regime sustenance and other consumptive and non-consumptive uses including irrigation, industry, environment, salinity management and recreation. Fisheries, navigation and environment sectors demand 40.7% while demand for household and industrial use is 0.7%.

 

References and further reading:

Kabir, A., Parolin, B. (2012) Planning and Development of Dhaka – A story of 400 years, University of new south wales, Kensington, NSW 2052, Australia.

Community report, Zila: Dhaka, June 2012, Population and housing census 2011, Bangladesh bureau of statistics Statistics and informatics division, Ministry of planning, Government of the people’s republic of Bangladesh. 

Community report, Zila: Gazipur, June 2012, Population and housing census 2011, Bangladesh bureau of statistics Statistics and informatics division, Ministry of planning, Government of the people’s republic of Bangladesh.

Community report, Zila: Narayanganj, June 2012, Population and housing census 2011, Bangladesh bureau of statistics Statistics and informatics division, Ministry of planning, Government of the people’s republic of Bangladesh. 

DWASA (2012) Management information system (MIS) report, http://www.dwasa.org.bd/

Hoque, M. A. (2004) Hydrostratigraphy and aquifer piezometry of Dhaka City, Postgraduate Thesis, Institute of Water and Flood Management, BUET, Dhaka, Bangladesh, 37 pp.

Hossain, F. et. al. (2013) Water Resources Vulnerability in the Context of Rapid Urbanization of Dhaka City (a South Asian Megacity),  Elsevier Inc., USA.

Majumder, J. R. (2011) A snapshot of socio-economic development of Bangladesh Looking from multiple perspectives.

Rahman, M. A. et al. (2013) Hydrogeological analysis of the upper Dupi Tila Aquifer, towards the implementation of a managed aquifer-recharge project in Dhaka City, Bangladesh, Hydrogeology Journal 21: 1071–1089, Springer-Verlag Berlin Heidelberg, Germany.

Rahman, S., Hossain, F. (2008) Spatial assessment of water quality in peripheral rivers of Dhaka City for optimal re-location of water intake point. Water Resour Manag, 22: 377–391.

Statistical Year Book of Bangladesh (2010) Bangladesh bureau of statistics Statistics and informatics division, Ministry of planning, Government of the people’s republic of Bangladesh. 

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