Number of internally displaced people jumping alarmingly: CPD

The number of internally displaced people due to natural disasters jumped to an alarming level in recent years and ultimate destinations of the these homeless people are slums in large cities due to absence of security of livelihood and lack of job opportunity in the disaster-prone areas, revealed a study of the Centre for Policy Dialogue (CPD).

The study further revealed that this alarming trend puts tremendous pressure on the already overcrowded, unsafe and unhealthy city slums with limited access to basic services such as water, sanitation, electricity, and transportation.

The CPD disclosed the study in a dialogue, titled "Establishing a Blended Finance Mechanism Involving Climate Funds in Bangladesh: Opportunities and Challenges", held at a hotel in Dhaka on Saturday.

At the dialogue, experts and economists from both the government and private sector stressed on developing the micro, small and medium enterprises (MSMEs) at the local level to create job opportunity for the displaced people and developing skills of people in the disaster-prone areas through government and private financing.

Presenting the keynote at the event, Dr Wasel Bin Shadat, senior visiting fellow of the CPD, said natural disasters internally displaced 1.2 million people each year on average in 2008-2020 period and the number reached 4.4 million in 2020.

He said about 2.7% of the total population of the country has been displaced internally due to the natural disasters and the rate is highest in Bangladesh in South Asian countries.

"The number of urban population has significantly increased from 56.61 million in 2015 to 62.87 million in 2020 due to huge inflow of internal migrants, mostly driven by the centralised and urban-centric growth culture and lack of employment and income generating opportunities in the local city centres," he added.

The study urged the development of SMEs to create job opportunities as the sector accommodates about 25% of the total labour forces and 80% of industrial employment.

The study identified the high cost of capital and access to financing from the formal banking channel as the major obstacles to SME growth in Bangladesh.

At the event, Professor Mizan R Khan, deputy director of the International Centre for Climate Change and Development, said the development strategy of the government is Dhaka centric.

"Capital market of the country is not developed, there are huge problems in the banking sector and taxation policy is also ill. How would blending finance be formulated and how will it work?"

Dr AK Enamul Haque, professor of economics department of East West University, said the Basic Bank was formulated to finance the SMEs in the country, but the bank failed to achieve the goal. The Japan International Cooperation Agency provided a fund to ensure compliance in the RMG sector, but the fund has not been utilised.

Dr Md Mafizur Rahman, managing director of SME Foundation, said the CMSMEs are facing a serious lack of financing despite a huge stimulus announced by the government.

He said, "A huge number of scams have occurred in the banking sector including the Hallmark and PK Halder in the presence of regulation of the central bank. How would blended financing work?"

Dr Fahmida Khatun, executive director of CPD, said people at risk came to the city in the hope of a better life as there were no job opportunities in the area. However, they have to live in slums as there are no job opportunities in the city.

She said all these people could have stayed in the villages if they had the job opportunity.