Data and statistics suggest that disparities between rural and urban areas in socioeconomic indicators appear to be narrowing. The Power and Participation Research Centre (PPRC), in its national survey titled “State of the Real Economy”, found that Bangladesh has made notable progress in reducing the inequality between villages and cities.
This progress can largely be attributed to the expansion of paved road networks and the nationwide electrification programme, along with a growing aspiration for change among the people.
The PPRC survey indicates that this progress reflects the people’s desire and initiative for transformation, achievements that must be preserved.
Following July, the interim government appears to have prioritised political reforms over economic ones. Yet, the July movement was not merely political in nature; it also embodied a profound yearning for economic and cultural liberation.
A climate of fear in business
Field visits across various regions reveal a concerning deterioration in law and order, accompanied by extortion, looting, forced occupation and transfer of ownership of business establishments.
These conditions have created a climate of fear among large, medium and small scale entrepreneurs. Many have downsized or even shut down their businesses, leading to a reduced flow of money at the local level.
Secondly, the fragile condition of several banks has left small-scale investors in a difficult position.
Thirdly, as numerous government projects have reached completion and the number of new ones has declined, employment opportunities for the working class at the grassroots have diminished.
The PPRC survey also notes that inflation has risen in the aftermath of the mass uprising, meaning the value of money has decreased. The overall economy has slowed down, putting pressure on rural livelihoods.
Many rural inhabitants are migrating to cities in search of work and are being absorbed into the informal sector.
Although disparities between rural and urban areas in various indicators have decreased, the lack of decisive economic action by the government in the post-uprising period has begun to reverse this progress.
For example, according to the Bangladesh Bureau of Statistics (BBS), Household Income and Expenditure Survey 2022, the national poverty rate stood at 18.7 per cent. However, the PPRC’s 2025 survey shows that the rate has increased to 27.93 per cent.
Some key findings from the PPRC survey highlight the persistence of rural-urban inequality are –
Housing: In rural areas, 16.6 per cent of respondents live in concrete houses, compared to 37.8 per cent in urban areas. Conversely, 43.6 per cent of rural respondents live in tin-shed houses, compared to 29.2 per cent in cities.
A significant 91.5 per cent of rural residents and 59.8 per cent of urban residents live in their own homes, reflecting a distinct pattern of asset ownership.
Access to safe drinking water: Villages slightly outperform cities in this area. 98.6 per cent of rural respondents report access to safe drinking water, compared to 97.4 per cent in urban areas.
Electricity access: There is little difference between rural and urban areas in terms of electricity connections. The rate stands at 98.3 per cent in rural areas and 98.7 per cent in urban areas.
However, connection alone is not the full story. The experience of power availability, specifically the frequency and duration of load-shedding differs significantly between villages and cities, exposing another layer of inequality in everyday life.
Higher healthcare costs in both urban and rural areas
According to the survey, the average monthly income of rural and urban respondents is Tk 29,205 and Tk 40,578, respectively. Urban respondents tend to spend more than they earn, while rural respondents are generally more inclined to save.
The majority of respondents’ income is spent on food. However, both urban and rural households reported a significant increase in healthcare expenses.
Diseases linked to lifestyle changes such as high blood pressure, diabetes, cancer and heart disease have become increasingly prevalent across both demographics. Interestingly, education costs are higher in rural areas than in cities.
The PPRC survey further reveals insights regarding the use of information and communication technology (ICT). The rate of smartphone ownership stands at 71 per cent in rural areas and 79.6 per cent in urban areas.
Only 2.4 per cent of rural respondents own a computer or laptop, compared to 9.6 per cent of urban respondents. Among the youth population, 76.8 per cent in rural households and 79.8 per cent in urban households possess smartphones.
Internet usage is reported by 65.41 per cent of rural respondents and 76.63 per cent of urban respondents. These statistics point towards a new, technology-driven economic trend. Nonetheless, disparities in spending and consumption patterns remain more pronounced in urban areas.
In Bangladesh, ownership of personal and collective assets is increasing, yet the bulk of wealth continues to accumulate in the hands of a few individuals and groups.
The process of inequality is ongoing. Existing laws, policies and planning mechanisms often serve group interests more effectively than public welfare. Within this complex economic equation, assessing rural-urban equality or inequality, remains a formidable challenge.
The urban economy is described as the birthplace of collusive capitalism, with villages acting as its suppliers. As a result, the rural economy is being exploited to sustain urban affluence.
A particular class of urban residents continues to amass wealth, while villages are being drained of their resources. Such inequality cannot easily be detected through superficial observation or structured surveys.
For instance, a new form of project-based agriculture has emerged in rural areas, primarily financed by wealthy individuals from urban or semi-urban centres.
This model involves multiple stakeholders – the landowners, middlemen, deep-tube-well operators and project financiers. Consequently, even if a farmer owns a small plot of land of one bigha, he can no longer cultivate it independently.
Deep-tube-well operators often maintain collusive arrangements with project investors, restricting farmers’ freedom to use their own land. On paper, the farmer remains the owner, but in reality, he has lost his autonomy over cultivation. Thus, urban capital is steadily penetrating rural economies, creating a new form of neo-colonialism in agriculture.
Similarly, those obtaining leases for ponds or enclosures often gain exclusive control over these water bodies. Others are barred from extracting even small amounts of water, leaving adjacent farmlands vulnerable during the dry season.
In short, villages are being subjugated and reshaped to serve urban needs, gradually losing their distinct identity. Moreover, the public’s sense of ownership over common property is diminishing.
Inequality fosters social unrest and a sense of deprivation among citizens, which in turn perpetuates further inequality. To build a humane and dignified society, Bangladesh must adopt an equitable and welfare oriented economic model
The widening rural-urban divide poses a major obstacle to equitable development, citizens’ rights, justice, economic progress and the growth of democracy. Nobel Laureate economist Joseph E. Stiglitz, in his book “The Great Divide”, argues that inequality is the root cause of societal division.
In the early years following independence, Bangladesh prioritised a nationalist economic policy, guided by programme-based development planning that aligned with a politico-economic philosophy.
However, the country has since shifted towards an ad hoc, project-based approach, effectively transforming Bangladesh into a project-governed state.
Interests of common people get less importance
Under the current neo-liberal development paradigm, the interests of ordinary citizens receive limited priority. In their book “Neoliberal Economic Development in Bangladesh”, Mohammad Tanzimuddin Khan and Mohammad Sajjadur Rahman demonstrate how Bangladeshi society has evolved from welfarism to market-oriented commodification, where profit and competition dictate the definition of prosperity.
Similarly, renowned economist Anu Muhammad, in his book, “Development Re-examined: Construction and Consequences of Neoliberal Bangladesh”, observes that law and the state have become instruments of capital accumulation.
Consequently, the rich grow richer, while the poor become poorer. As one segment of society accumulates vast wealth, another struggles to meet even its basic needs. Although per capita income has risen, the unequal distribution of wealth prevents the achievement of inclusive and balanced development.
Inequality fosters social unrest and a sense of deprivation among citizens, which in turn perpetuates further inequality. To build a humane and dignified society, Bangladesh must adopt an equitable and welfare oriented economic model. A Bangladesh free from inequality requires a clear, just and inclusive path forward.
* Khan Md. Rabiul Alam is a communication professional and educator.