Economic Growth and its Impact on Transportation in Bangladesh
Bangladesh has experienced remarkable economic growth over the past decade, with its Gross Domestic Product (GDP) per capita increasing annually by more than 5%. This growth has not only surpassed that of neighboring India but has also led to a substantial rise in the number of vehicles on the roads. As the nation’s economy flourishes, there has been a significant increase in both the demand for transportation and the investment in road infrastructure to support this surge in mobility.
Dynamics of Public and Private Transport Expansion
The expansion of the road transport fleet in Bangladesh, as reported by the Bangladesh Road Transport Authority (BRTA), includes a diverse mix of vehicles, with registrations hitting 4,471,625 by June 2020. This increase aligns with a steady rise in per capita income, which notably grew by 9% in the fiscal year 2021-2022. The growth in vehicle numbers not only reflects higher personal income but also the expanding necessity and capability of the population to travel for work and leisure.
Insights from the Kuznets Curve Analysis on Transport
The application of the Kuznets Curve to Bangladesh’s transport sector reveals distinct patterns for public and private vehicles. Public transport initially followed the Kuznets hypothesis, where an increase in economic prosperity led to greater use of public transportation, which eventually declined as incomes continued to rise, pushing people towards private vehicle ownership. In contrast, the number of private vehicles consistently rose with increasing income, highlighting a preference for personal transport due to the inadequacies in public transport services. This shift underscores the need for continued investment and reform in public transportation to meet the needs of a growing economy.