From Informality to Unemployment

Recently, in Dhaka, the capital of Bangladesh, the police evicted all the street vendors who were doing business in the city. The Daily Star newspaper of Bangladesh, published an article highlighting the implications of this action.

There were an estimated 100,000 people who made their livelihood as street vendors in the city. These vendors have an estimated 1 million dependants who survive on their income. This could have a socially and economically destabilizing impact on the city. But the government has not come up with any initiatives to rehabilitate the affected people, despite its earlier pledges to allot alternative spaces for these businesses. Although this eviction is unconstitutional, Bangladesh is under a State of Emergency. In this situation, the fundamental rights of the citizens are suspended, and no one can try to resist by protesting or demonstrating publicly.

The article also mentions the deeply embedded corruption and political patronage which allowed the illegal businesses to flourish for so long.

Around 50 percent of the tolls go to local political kingpins’ pockets, 15 percent to party activists, 15 percent to the police and the rest to the ‘linemen’- the ones employed to collect the tolls for their bosses. A large number of Dhaka City Corporation(DCC) staff collects tolls from the street vendors as well.” The article goes on to add that ” the political party leaders are also involved in “selling possessions” on sidewalks in busy areas…Vendors having “possessions” do not have to pay the daily tolls.

The cost of buying a legitimate business spot is almost impossible for these vendors. Also, in most cases, the shops are allotted to members and supporters of the ruling party.

It remains to be seen if the interim government is serious about any long term strategy to reform these businesses. When a new government is elected, would they continue the reform process, or simply revert back to the old practices?

Published Date: February 05, 2007