“Sustainable Development of

Informal Industrial
Agglomeration in Bangladesh
A Research Proposal

A Research Proposal on
 Sustainable Development of
Informal Industrial Agglomeration in Bangladesh
Course G101: Economics of Geography and Environment

Submitted to
Professor M. Maksudur Rahman, PhD
Department of Geography and Environment
University of Dhaka

Submitted by

Faiaz Irfan (Roll: 06) Mushfika Sultana (Roll: 66)

Jahin Enan (Roll: 16) Rafee Ibne Rokon (Roll: 76)
Raiyan Razi Rahman (Roll: 26) Lamim Lodi (Roll: 86)
Bibi Aysha (Roll: 36) Ashraful Islam Durjoy (Roll: 96)
Prangon Sarwar (Roll: 46) Sajid Siddiqui (Roll: 106)
Nabiha Nuha (Roll: 56)

Institute of Business Administration, University of Dhaka

Date of Submission: March 23, 2023
 Letter of Transmittal
23 March 2023

Professor M. Maksudur Rahman, PhD

Department of Geography and Environment
University of Dhaka

Subject: Letter of transmittal for Research Proposal on “Sustainable Development of

Informal Industrial Agglomeration in Bangladesh”

Dear sir,

We, the students of Section B, BBA 30th Batch, have prepared this comprehensive Research
Proposal on “Sustainable Development of Informal Industrial Agglomeration in Bangladesh”
that you had assigned to us as a requirement for the completion of the ‘Economics of Geography
and Environment’ course (course code: G101). We have done a moderate amount of research on
Informal Industrial Agglomeration and the current practices involved, especially in the
department of its development. This was both a challenging and an enlightening experience, as
we have learnt and mastered concepts that will help us in the future. We are truly indebted to you
for your overall support and kind regard in this matter.

Our analysis was both qualitative and quantitative, mainly based on primary, secondary data and
documented evidence. We hope that our Research Proposal meets your expectations.

Sincerely,

Faiaz Irfan (Roll: 06)

Jahin Enan (Roll: 16)
Raiyan Razi Rahman (Roll: 26)
Bibi Aysha (Roll: 36)
Prangon Sarwar (Roll: 46)
Nabiha Nuha (Roll: 56)
Mushfika Sultana (Roll: 66)
Rafee Ibne Rokon (Roll: 76)
Lamim Lodi (Roll: 86)
Ashraful Islam Durjoy (Roll: 96)
Sajid Siddiqui (Roll: 106)

Section B, BBA 30th

IBA-DU
 Table of Contents

Statement of The Research Problem............................................................................................1

Significance of The Research........................................................................................................2

Aims and Objectives......................................................................................................................2

A Brief Literature Review.............................................................................................................3

Proposed Methodology..................................................................................................................6

Primary Data Collection...............................................................................................................6

Secondary Data Collection...........................................................................................................6

Plan of Actions...............................................................................................................................6

Expected Outcome.........................................................................................................................7

References.......................................................................................................................................8

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 Statement of The Research Problem
The informal industrial agglomeration in Bangladesh has played a vital role in the country's economic
development, but it is often characterized by poor working conditions, low wages, and environmental
degradation. In recent years, there has been a growing recognition of the need for sustainable
development of the informal industrial agglomeration in Bangladesh.

Several studies have highlighted the challenges and opportunities of promoting sustainable development
in the informal industrial sector in Bangladesh. These studies have emphasized the importance of
improving working conditions, enhancing access to credit and technology, and strengthening institutional
support. However, there is a lack of research on the specific strategies that can be employed to achieve
sustainable development in informal industrial agglomerations in Bangladesh.

Therefore, the research problem of this proposal is to identify the key strategies for promoting sustainable
development in informal industrial agglomerations in Bangladesh, with a focus on enhancing working
conditions and promoting environmentally sustainable practices. The proposed research aims to fill the
gap in knowledge by providing evidence-based recommendations for policymakers, practitioners, and
stakeholders in the informal industrial sector in Bangladesh to promote sustainable development.

Research Questions:
● What are the current conditions of the informal industrial agglomerations in Bangladesh?

● What are the significant aspects of sustainable development for informal industrial
agglomerations?

● What are the potential benefits and challenges of sustainable development for informal industrial
agglomerations in Bangladesh?

● How can sustainable development be achieved in informal industrial agglomerations in

Bangladesh?

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 Significance of The Research
Informal industrial agglomerations in Bangladesh play a crucial role in the country’s economy by
providing employment opportunities to a significant proportion of the population reducing poverty in
Bangladesh. The significance of this research lies in the understanding of how sustainable development of
informal industrial agglomerations can be achieved in Bangladesh.

Firstly, such knowledge can help identify the strengths and weaknesses of the sector and guide
policymakers in designing effective policies and programs to promote sustainable development.

Secondly, research on this topic can help identify the challenges and barriers that impede the sustainable
development of informal industrial agglomerations such as inadequate access to finance, limited
infrastructure and weak governance.

Thirdly, research on this topic can help generate evidence-based policy recommendations that can guide
policymakers in their decision-making. This research can provide insights into the potential impacts of
different policy options on the sector’s sustainability, including their economic, social, and environmental
implications.

Aims and Objectives

The aim of this research paper is to find ways to ensure sustainable development of informal
agglomeration in Dhaka, specially in Zinzira. This paper seeks to understand the methods to establish
sustainable development of informal agglomeration in the periphery of Dhaka which will enhance its
significance and contribution to the national economy. Moreover, the paper also intends to analyze the
current situation of the places, their shortcomings towards a sustainable development model and finally
suggest effective and efficient ways to promote the sustainable development of the region.

To achieve these objectives, the research paper pursues the following aims:

1. To determine the parameters of sustainable development of the informal industrial agglomeration

and evaluate the current state of these regions with respect to these criteria.
2. To understand the current position and potential of Bangladesh in achieving the sustainable
development goals.
3. To present recommendations and proposals outlining feasible and effective measures in order to
ensure the sustainable development of these regions.

The outcomes of this research will serve to deepen our understanding of the most effective strategies to
achieve sustainable development of the informal industrial agglomeration in Bangladesh, particularly the
periphery of Dhaka.

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 A Brief Literature Review
Our literature review intends to provide a comprehensive analysis of the current state of research on
sustainable development of informal industrial agglomeration so that we can balance the positive and
negative aspects of informal industrial agglomeration in Bangladesh while mitigating its environmental
impacts. Sustainable development of these agglomerations is crucial to ensure the wellbeing of the
population, the economy, and the environment. There are a few parameters through which we can
measure how sustainable the agglomeration is and how to make it better. Those parameters are described
below along with the current standing of Bangladesh with respect to those parameters:

1. Participatory Planning

Participatory planning involves engaging the local community in the planning and decision-making
process to ensure that their needs and preferences are considered (Mitra, 2015). Participatory planning
typically involves a range of activities, including community meetings, workshops, surveys, and focus
groups. These activities are designed to gather input from a broad range of stakeholders and to encourage
dialogue and collaboration between different groups. In Bangladesh, usually powerful owners,
stakeholders take most of the key decisions without considering the well-being of the local communities.
Focus groups are not very active as well. Proper surveys and workshops are barely done which leave us
with inadequate data as well.

2. Sustainable Land Use

As land is very limited, proper use of it is very important in the informal agglomeration of our country. If
the very limited land that we have is used properly, making informal agglomeration survive will be much
easier. Islam and Ahmed (2019) argue that sustainable land use planning in informal settlements should
focus on preserving natural resources and promoting green spaces. This can be achieved through the
implementation of appropriate zoning regulations, which can help to prevent the encroachment of
informal settlements into ecologically sensitive areas. The development of green spaces can also help to
improve the overall livability of informal settlements by providing recreational areas, improving air
quality, and reducing the urban heat island effect. In Bangladesh, most of the settlements in the informal
agglomeration are illegal and they do not abide by the rules and codes of the government. New buildings
and factories add up to the previous ones in an unplanned way making things more complex.

3. Access to Basic Services

Access to basic services such as water, sanitation, and healthcare is not only essential for the wellbeing of
the population, but also for the sustainability of informal agglomeration of the country. According to
Islam and Ahmed (2019), lack of access to basic services is a key issue in informal settlements, where
most of the urban poor live. One of the main barriers to accessing basic services in Bangladesh is poverty,
which can limit people's ability to pay for services such as healthcare or education. In addition,
inadequate infrastructure and poor service delivery systems can make it difficult for people to access
basic services even if they can afford them.

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4. Adequate infrastructure

Adequate infrastructure such as roads, transportation systems, and communication networks, is necessary
for economic development and improved living standards. According to Islam and Ahmed (2019),
informal settlements in Bangladesh often lack access to basic infrastructure such as roads, water supply
systems, and sanitation facilities, which can exacerbate health and safety issues and limit economic
opportunities. To address these issues, infrastructure development in informal settlements in Bangladesh
has focused on the provision of basic services such as water and sanitation, as well as the development of
transportation infrastructure to improve connectivity and mobility. Initiatives such as the "City Region
Development Project" and the "Secondary Towns Infrastructure Development Project" have been
implemented to provide better infrastructure services to informal settlements. However, the authors note
that infrastructure development efforts in informal settlements have often been hindered by a lack of
funding and resources, as well as a lack of coordination between government agencies and other
stakeholders. To address these issues, Islam and Ahmed (2019) recommend a more integrated and
participatory approach to infrastructure development, which involves the active participation of
communities and stakeholders in the planning and implementation of infrastructure projects.

5. Livelihood Diversification

Diversification of livelihoods can enhance the economic resilience of informal agglomerations (Jenkins et
al., 2018). According to Hossain et al. (2017), informal settlements in Bangladesh are characterized by
limited access to formal employment opportunities and high levels of poverty, which can leave residents
vulnerable to economic shocks. To address these challenges, livelihood diversification programs have
been implemented in informal settlements in Bangladesh, aimed at supporting the development of small
businesses and self-employment opportunities. These programs include microfinance initiatives,
vocational training programs, and support for entrepreneurship and small-scale agriculture. However,
Hossain et al. (2017) note that these programs often face significant challenges, including limited access
to financial resources, inadequate infrastructure, and limited access to markets. To overcome these
challenges, the authors recommend a more integrated and participatory approach to livelihood
diversification, which involves the active participation of communities in the design and implementation
of livelihood programs.

6. Waste Treatment and Disposal Methods

Due to the increase of urbanization, urban population, and urban economic activity, the collection and
disposal of urban solid waste is a concern in the majority of Bangladesh's metropolitan areas (GoB,
2020). Most green category manufacturing companies are free from environmental risks (Talukder &
Jahan, 2016). Talukder and Jahan (2016) also highlighted that the safety and working conditions in this
light engineering industry (LEI) predominant in Zinzira are subpar, and the packed clusters of LEIs have
subpar waste disposal systems. It is well known that these solid wastes must be disposed of in accordance

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with standards to increase productivity and improve the safe working environment. More than 90% of the
raw materials used in Bangladesh's LEIs sector come from ship-breaking businesses, according to a
number of authors (Majumder & Dey, 2020; Sazzad, 2019; Talukder & Jahan, 2016). Since it lessens the
need for mining to produce raw metal in the steel industry from pig iron, recycling scrap iron and steel
from the shipbreaking business is a green practice (Zakaria et al., 2012). The LEIs sector has the potential
to make a greater impact on SDGs 1 and 8 through promoting economic growth and significant job
creation.

While industrialization enables communities to benefit from agglomeration economies, the two processes
are typically closely entwined (UNIDO, 2015). Well-run, highly linked cities can use technology to their
advantage to promote greater inclusiveness and equity, enhance societal well-being, and foster greater
economic growth while consuming fewer resources, emitting fewer greenhouse gasses, and incurring
fewer social costs. In this regard, green industries can contribute to combining increased productivity and
innovation with lower prices and fewer environmental impacts while providing the environmental
services required by municipalities to improve city living (UNIDO, 2015). The government has taken
many initiatives to promote green industries and pursue sustainable development of informal industrial
agglomerations.

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 Proposed Methodology

Primary Data Collection

The primary data collection will be conducted mainly on site. We will visit Zinzira of Dhaka city which is
an area rich in informal industrial agglomeration. We will conduct surveys in this area to obtain a holistic
view of the current practices in the industry and measure whether the practices are sustainable or not
according to the parameters of sustainable development. The surveys will be aimed towards the
employees at the industry who can inform us about the working conditions and the operating mechanism
of the industry.

Secondary Data Collection

Secondary research has been conducted on pre-existing literature such as academic journals and
publications on the topic of sustainable development of informal industrial agglomerations in the context
of Bangladesh.

Plan of Actions

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 Expected Outcome
The concept of sustainability is applicable to all aspects of working industries– the financial, employment
and environmental. This becomes all the more relevant in the context of informal agglomerations. The
paradoxical nature of this phenomenon is that its profitability and undeniable economic contributions are
accredited to being hugely unregulated. Using this research proposal as reference, we can touch several
unexplored touchpoints in the informal industrial agglomerations in Bangladesh. It is mentionable that it
is not feasible to propose or expect a total revamp of informal industries by asking or obligating them to
install Effluent Treatment Plants (ETP). Since these are often small-scale businesses with modest return
on investments (ROI), they are unable to implement costly systems to flush out toxic wastes and ensure
sustainability standards. In order to prevent these industries from incurring losses while also improving
the sustainability aspects, the Government can establish “industrial parks” for such agglomerations so that
multiple industries can use the same ETP. For informal industries, the green approach has to be proposed
as a slow transitional process rather than an imposed obligation. Loans need to be popularized for this
purpose in a scale that matches the ROI of the particular factory. These businesses may not have
collaterals to put up against loans which is why they can rarely access loan facilities, whereas financial
institutions usually grant big companies loans without keeping mortgages. Such discrepancies can be
addressed in light of this research; it can be concluded that infrastructural inadequacy and lack of access
to basic resources which characterize informal industries make them more eligible to needing loans than
established corporations. This proposal will help us take these factors into consideration and come up
with sustainability policies not attuned to the established global standards but rather with a subjective
perspective, so that we can adjust them to the informal agglomerations in a way that does not hamper
their profitable nature or sustainable knowledge spillovers. This proposal can act as a basis for
policymakers to identify issues needed to be addressed firsthand and suggest ways to do so.

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 References
 Mitra, S. (2015). Participatory planning and community empowerment: Reflections on the case of
Kolkata, India. Journal of Planning Education and Research, 35(4), 423-436.
 Islam, M. A., & Ahmed, A. U. (2019). Participatory planning for sustainable urban development
in Bangladesh: A critical review. Journal of Environmental Management, 237, 140-148. doi:
10.1016/j.jenvman.2019.02.040
 Jenkins, R. O., McGranahan, G., & Jacobi, P. (2018). Economic diversification for urban
resilience. Environment and Urbanization, 30(2), 437-454.
 Hossain, M. S., Rashid, S. F., & Bhuiya, A. (2017). Livelihoods and social protection for the
urban poor: A study of three informal settlements in Dhaka, Bangladesh. PloS one, 12(2),
e0171782
 GoB (2020). Bangladesh Voluntary National Reviews (VNRs) 2020- Accelerated action and
transformative pathways: realizing the decade of action and delivery for sustainable development.
Government of the People’s Republic of Bangladesh (GoB).
https://sustainabledevelopment.un.org/content/documents/26302VNR_2020_Bangladesh_Report.
pdf
 Talukder, M.A. & Jahan, S.M. (2016). Light Engineering Business Ecosystem in Bangladesh: A
Study on Institutional Preparedness. IOSR Journal of Business and Management, 18(12), 16-26
 Majumder, S. & Dey, S. (2020a). Light Engineering Industry Sector in Bangladesh: Challenges
and Prospects. The Cost and Management, 48(01), 46-57.
http://www.icmab.org.bd/wpcontent/uploads/2020/03/5.Light-Engineering.pdf
 Zakaria, N.M.G., Ali, T. M., & Hossain, K.A. (2012). Underlying Problems of Ship Recycling
Industries in Bangladesh and Way Forward. Journal of Naval Architecture and Marine
Engineering.
 Sazzad, A. (2019, January 22). Light engineering sees an emerging business hub. The Daily
Industry. http://www.dailyindustry.news/ light-engineering-sees-emerging-business-hub/
 UNIDO (2015). The 2030 Agenda for Sustainable Development: Achieving the industry-related
goals and targets. United Nations Industrial Development Organization (UNIDO). Vienna,
Austria. https://www.unido.org/sites/default/files/2015-12/ISID_ SDG_brochure_final_0.pdf

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