Poverty in Urban Bangladesh: Trends, Profiles and Spatial Differences

Abstract

With rapid urbanisation and concomitant rise in urban poverty, a better understanding of urban poverty and urban income dynamics has become an urgent priority. One in five poor households now live in urban Bangladesh and many more urban households are aspiring to be middle class yet vulnerable to falling back into poverty. Progress in reducing poverty has slowed in urban areas, particularly in larger cities. As a result, there are now more people living in extreme poverty in urban Bangladesh (3.7 million) than in 2010 (3 million). At current rates of urbanisation and poverty reduction, more than half of poor households will live in urban areas by 2030. This paper examines what can be learned about trends and drivers in urban poverty from recent nationally representative surveys. It also analyses additional data sources on the capital city, Dhaka, to shed light on spatial inequality within the city. The paper highlights the need for increased data collection and evidence on urban poverty to inform public policy to address this emerging challenge.