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| United States Institute of Peace

BANGLADESH has seen impressive economic growth in recent decades, with gross domestic product rising at over 6 per cent annually. Landmark projects like the padma bridge and metro rail reflect the nation’s ambition for modernisation, offering better connectivity and economic opportunities. It has been suggested that 5 per cent of gross domestic product be dedicated to mega projects, signalling a push to achieve middle-income country status.Ìý

However, this rapid development comes with hidden costs: environmental degradation, displacement of communities, and rising inequality.Ìý


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Promises

Bangladesh has made significant strides with key projects reshaping its economy. The Padma Bridge, for instance, is projected to boost GDP by 1.23 per cent annually, potentially transforming lives in previously inaccessible regions by enhancing trade and connectivity. The Dhaka metro rail, launched in 2022, has alleviated congestion and improved urban mobility. Energy access has reached 100 per cent, up from 47 per cent in 2000, while the textile industry, accounting for over 80 per cent of exports, has made Bangladesh the world’s second-largest garment exporter, driving employment and foreign exchange. The poverty rate in Bangladesh has reduced from 24.3 per cent in 2016 to 10.44 per cent in 2022, based on the international poverty line of $2.15, reflecting the broader social benefits of economic growth.

These infrastructure, energy, and industry advancements have significantly improved livelihoods and positioned Bangladesh as a rising economic force. However, beyond these headline achievements, the uneven distribution of development benefits and the underlying social and environmental costs present a more complex picture.

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Hidden costs

BANGLADESH’S development success masks a growing inequality crisis. With a Gini coefficient of 0.482 in 2023, income disparity is widening as urban centres like Dhaka and Chattogram thrive while rural areas fall behind. This uneven growth aligns with Thomas Piketty’s argument in ‘Capital in the Twenty-First Century’, which shows how unchecked capital accumulation deepens inequality.

The divide extends beyond income, affecting education, healthcare, and employment access. Urban areas boast private services, while rural communities face underfunded public ones. Digital exclusion further exacerbates this, with rural students lacking essential online resources. Such inequalities undermine social cohesion and fuel political unrest, as seen in protests over what began as the quota reform movement but later evolved into a broader movement against the government. Until these issues are addressed, development will remain paradoxical — benefiting a few while marginalising many.

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Environmental costs

WHILE industrialisation has driven Bangladesh’s GDP growth and job creation, it has also caused severe environmental damage, often regarded in political economy as the ‘externalities’ of development. Industrial waste, especially from the textile sector, has polluted rivers like the Buriganga, making them toxic with chemicals such as lead and cadmium. Simultaneously, unchecked urban sprawl has worsened the unequal distribution of environmental harm. As David Harvey explains, capitalist urbanisation commodifies natural resources, offloading environmental damage onto marginalised communities and future generations.

The expansion of infrastructure has also taken a toll on forests, with Food and Agriculture Organisation data indicating a 16.3 per cent loss of forest cover since 1990. This deforestation accelerates soil erosion and flooding, perpetuating cycles of degradation that disproportionately impact the poor. Moreover, the government’s emphasis on short-term economic gains over long-term environmental sustainability reflects a broader global trend. As Naomi Klein argues in ‘This Changes Everything: Capitalism vs the Climate’, development under global capital flows often prioritises immediate industrial needs, sidelining ecological concerns. This approach intensifies climate vulnerabilities in Bangladesh, exacerbating global warming and worsening its environmental crises.

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Climate vulnerability

SOCIAL contract theory, as articulated by Rousseau and Hobbes, argues that development should enhance collective welfare. However, Bangladesh’s development model has brought prosperity to some while increasing vulnerability for others. As the country expands along its coasts and grows industries, it becomes more susceptible to climate change. The World Bank estimates that by 2050, up to 17 per cent of Bangladesh’s land could be submerged due to rising sea levels — an example of Ulrich Beck’s ‘risk society’, where modernity’s promises of control over nature create new risks that disproportionately affect marginalised communities.

The exacerbation of climate vulnerability in Bangladesh reflects global power imbalances. Despite contributing minimally to global carbon emissions, Bangladesh faces the consequences of climate change, a situation rooted in colonial-era inequalities. Postcolonial theorists like Dipesh Chakrabarty highlight how the global capitalist system continues to impose environmental burdens on former colonies, with Bangladesh bearing the brunt of climate change despite its minimal contribution.

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Social costs

THE displacement caused by megaprojects like the padma bridge highlights how development can deepen inequality. Amartya Sen’s theory of development as freedom argues that development should expand individual freedoms, but many displaced communities in Bangladesh receive little compensation, demonstrating how development fails to promote true human flourishing. The Padma Bridge project, for example, marginalises already vulnerable populations.

Additionally, the unequal distribution of development benefits — where urban areas thrive while rural regions fall behind — exacerbates inequality. According to Karl Marx’s theory of accumulation by dispossession, development wealth concentrates in the hands of a few, while rural populations bear the brunt of the costs. This inequality is further compounded by urbanisation’s environmental destruction, placing even more strain on the disadvantaged.

In Bangladesh, development is shaped by elites prioritising growth and infrastructure over marginalised communities and the environment. The hidden costs of development expose the contradictions in the nation’s pursuit of modernity, where the promise of progress often comes at the expense of social justice and environmental equity.

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Rethinking global development frameworks

BANGLADESH’S development challenges are emblematic of broader global inequalities, particularly in the Global South. As nations like Bangladesh rapidly industrialise, they are caught in a paradox where economic growth exacerbates environmental degradation and deepens social inequalities. The Paris agreement, despite its ambitious goals, has been criticised for failing to offer concrete, binding commitments from developed nations, which have historically been the largest contributors to global carbon emissions. For countries like Bangladesh, which contribute minimally to global warming yet face some of its most severe consequences, the agreement offers little more than the hope of future assistance — a reality that many see as diplomatic appeasement rather than substantive action.

This critique aligns with postcolonial theory, which argues that the global development framework, shaped by historical power imbalances, continues to impose unjust burdens on developing nations. The Paris agreement’s reliance on voluntary commitments from high-emission nations and its focus on mitigation rather than reparation reveal a fundamental flaw in global environmental governance. For Bangladesh, this reflects the larger issue of development being framed as a zero-sum game where the global south is left to grapple with the costs of growth while the benefits remain disproportionately concentrated in the global north.

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Way forward

TO ADDRESS the hidden costs of development, Bangladesh’s development model must prioritise local contexts, cultural values, and indigenous knowledge systems rather than adhering to the hegemonic prescriptions of ‘developed’ nations. Sustainable development should be redefined to reflect the needs of its people, focusing on equitable resource distribution, community-driven climate adaptation, and environmental preservation rooted in local traditions. Policies must prioritise the well-being of marginalised groups while balancing growth with ecological responsibility.

Globally, Bangladesh must challenge the dominant development paradigm by advocating for an equitable climate framework that includes reparations from high-emission nations. True progress for Bangladesh lies in reclaiming its agency in shaping a development path that reflects its values, mitigates environmental harm, and fosters equity — a model that resists external impositions and inspires a rethinking of global development norms.

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Abdullah Al-Rayhan is a researcher.

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