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Drivers of and Obstacles to Urban Competitiveness from the Perspective of the Garment Sector
day) is shorter than in Chittagong City (4.9 hours a day) and peri-urban areas of metropolitan Dhaka (4.5–4.8 hours a day) (see figure 5.18 on page 82). Firms perceive access to infrastructure other than power supply as mixed. Access to public water and sewerage and social services in Dhaka City is considered broadly satisfactory, although the city is outperformed by Chittagong City. These results are in contrast with the latest available statistics, which indicate that Dhaka City has the best access to infrastructure (except drainage) in Bangladesh (USAID and others 2008). The discrepancy between perceived and actual level of services could be explained by differences in firms’ standards across locations or by high intra-urban variation in access to services that is not captured by the survey findings. The competitiveness of Dhaka City matters regardless of firms’ locations. About 57 percent of firms in peri-urban areas of metropolitan Dhaka and 55 percent of firms in Chittagong City travel to Dhaka regularly. Firms in periurban areas of metropolitan Dhaka travel to Dhaka City at least 13 times a month; firms in Chittagong City do so 3 times a month. About 25 percent of firms not based in Dhaka have an office in Dhaka City, and another 25 percent would be willing to open one. Firms in peri-urban areas of metropolitan Dhaka cite the need to deal with government paperwork as the main reason for traveling to Dhaka City; firms in Chittagong cite the need to meet with buyers (about 13 percent of Chittagong firms meet regularly with their main buyer in Dhaka City) (figure 5.3). Despite its advantages, Dhaka City has started falling behind other city locations in accessibility, and costs are beginning to outweigh opportunities. Dhaka Figure 5.3 Reasons Why Garment Firm Managers Go to Dhaka City a. Firms in peri-urban areas of metropolitan Dhaka
b. Firms in Chittagong City
19
14
30 11
44
3
53
13 5
8
Deal with government paperwork Meet with buyers Meet with suppliers
Networking Multiple reasons (all of above)
Source: Garment Firm Survey 2011. Note: Figures show percentage of firms. Dhaka City refers to the Dhaka City Corporation. Chittagong City refers to the Chittagong City Corporation.
Bangladesh • http://dx.doi.org/10.1596/978-0-8213-9859-3