Urbanization And Home Ownership In Bangladesh Economics Essay

Urbanization And Home Ownership In Bangladesh Economics demonstrateBangladesh is a developing country and has a population of 160 million. Urbanization process has increased rapidly. In 1891 only 2 percent citizens lived in the cities, and in 1961 this number increased to 5 percent. Baxter (1997, p) shows that citys population was 9 percent in 1974, that increased to 10.6 percent in 1984 and 17 percent in 1992.In Bangladesh education, employment, health care and other social aspects are of importized in the cities, especially in capital of Bangladesh. As a impression Dhaka is facing a huge rate of rural urban migration. Takehiko Nomura (1996, p12) countenanced thatEmerging urbanization and the population explosion will bring more social troubles to the world poverty, environmental degradation, and shortage of lodging, food and water- factors unresolved of creating instability around the world.According to New Inter disciplineist magazine (issue 386,p 18) amongst the population of the top sixteen cities, a big proportion live in slums, amidst 40 percent and 50 percent in Jakarta (Indonesia), and a third in mega- metropolises like Dhaka ( Bangladesh), Kolkata (India) and Sao Paulo ( Brazil).In developing countries governing encumbrance is very little nigh lodgment issues. Low and middle in begin group especially who are non in the public services go for self-help lodging construction, or live as tenant. only if instantly a day there is a lot of blockage to find a plot of soil. Datta and Jones (1999) provide evidence that people purchase via family and friends. both(prenominal)times they apply for a plot in a government or self-help living accommodations association project.In Chandigarh (India) there are two types of housing, one is public or semi-public housing which is provided by government or semi- government organization for their employees and the other is private housing that is engaged by the owners themselves or rented to tenants, (San dhu 1985).There is evidence that ( atomic number 75 Forest 2002, p2) urbanization rate is higher in vitamin E and South East Asia. It comes along with economical and social changes. This growth rate is putting pressure in the real estate market. As a result prices have gone up by 20 percent.Augus, Doling and Lee (2002, p 179) have provided evidence that households in Asia have lower standard than that in westerly countries. Construction industries in Asia could not add sufficient new housing of a standard direct with those economic levels.In Hong Kong it is a common feature that people are living in an flat of less than five hundred square feet. They bay windownot afford larger floor space.It is stated that (James Lee, Ray Forest, and wai Keung tammy 2002, p20) item-by-item home-ownership is a new trend in East Asia. Only exception is Singapore, where government back up home-ownership ideas through its efforts in 1960s. It is however mentioned government of Taiwan and South Korea gives housing provision the secondary enormousness to the central goal of economic development.The Japan Housing Corporation is attempt to develop large racing shell housing sites to construct housing for middle class workers in the cities. In Japan housing enthronement reached 12990 billion yen in 1978. 94 percent of it came from private heavens investment. Housing sector is henpecked by home-ownership and private renting. regime gives subsidy for low-cost public rental housing to the low-income families.Evidence shows that (James Lee, Ray Forest and Wai Keung Tam, 2002, p 38) National Housing Authority does not snap an important role concerning housing issues in Thai debark. Rich families build their own houses, whereas middle income group depend on private sector. But Housing Bank provides loans for both developers and individual purchases.Housing is a fundamental concern in military man life. Byrne and Diamond (2007, p527) concluded thatHousing provides a necessary foundation for physical and social life. It provides shelter, security, recreation, and wealth. It plays a central role in the health and well-being of its occupants and also supports their employment and educational endeavours. Among the poor there is a severe shortage of adequate, affordable housing.Housing costs in relation to households income and the quality are the issues that come to centre- stage in constitution walls, (Marsh and Mullins 1998, p1-2). Government around the world is facing a fundamental debate more or less their role to the group who find it difficult to secure adequate accommodation for them. This issue varies between societies.Demographic and social changes becharm the housing market. The demand for housing varies with the size of the families, and the age and other characteristics of the population. loosely large families remove more spaces. If they decide to spend less on housing but tacit want more space, they have to compromise with quality. Econo mic change determines the type and quantity of housing. It also determines consumers ability. expert and organizational changes in the housing sector sack up affect the cost. Housing finance institutes also play a very important role and their change affect housing sector as well. scathe of building materials, availability of land, labour cost influences the market function.Changes in the government policy directly influence housing market. They evict straighten out it easy for low or middle income group by providing subsidies or creating special fund from where people can get secured loan. Marsh and Mullins (1998, p5) provided thatA prime example in Britain is the personal subsidies paid to low-income tenants through the housing reach formation throughout the 1980s housing benefit was seen as the primary(prenominal) component of government policy towards housing and yet the housing benefit system is the responsibility of the Department of Social Security.In Britain central g overnment rely upon local authorities about housing. Housing associations help implementing policies which is formed centrally.Meyerson and Terrett (1962,p70) gives evidence that in U.S.A. government provides better homes to low- income families through public housing. In order to do that The Housing Act of 1949 extended its aid for low rent housing program.Government can monitor private sectors activity concerning the quality issues. Besides through its fiscal and regulatory policy it can influence them. It can try to influence the amount of property of particular types that is produced and consumed. Sometimes it can negotiate pricing policy as well.Countrys economy always plays a vital role. And changes in this sector create a strong impact in citizens life. If unemployment grows people may not afford individual and independent households.Housing expenditures varies in different countries. Meyerson and Terrett (1962, p60) have provided that in developed countries the first and lar gest item in every familys budget is food and beverages. But in the developing countries the largest expenditures for the families is housing. It is further mentioned housing expenditures vary with cable and education within each income class.Affordable housing refers to low-cost homes to either rent or buy, (Ratcliffe and Stubbs 1996, p482). It can be considered for the people in low or middle income group. Normally it is related to large- scale housing project. In the developed countries it is often seen as new settlements and urban villages. They are meant to be low- cost housing.Ratcliffe and Stubbs (1996, p486-491) further mentioned that a new settlement is a private sector sponsored new town where 2000 to 10,000 people can live. An urban village is a mixed-use mixed-ownership urban development based on public- private sector co-operation. It covers about two hundred acres. It not only provides housing but also provides small businesses, shops. It develops community feelings a mong people.In multi- family buildings people maintain personal relationships to manage the property well. This practise can be reflected in the national level, (Byrne and Diamond 2007).Consumers attitude towards housing aspects need to be considered to understand the housing market function. It has evidence that (Meyerson and Terrett 1962, p86) customer thinks about the number of the manners, not about the floor spaces. They will prefer a three room house rather than a two room house of greater dimensions. Customers also put their maintenance on improvements in equipment and layout. They want information about its relative value, and its conformity to codes and ordinances. They consider the characteristics of their possible neighbourhood.Some people want to live far from the madding crowd. But they like to earn their living by operative in the metropolitan labour market. They think improvement in the transport system can make it possible for them.Home building is supported by a group of people and institute, such as building materials suppliers, contractors, subcontractors, architect, labour and lending institutions. Meyerson and Terrett (1962, p106) describes a large-scale builder activities thatSince he produces groups of houses from similar or alike plants at one location during a single undertaking, he is in a position to oblige important economies in the purchase of land, the mass construction of structures, the purchase of supplies, and the scheduling of labour and equipment.The case of DhakaIt provides evidence that (Islam, 2004) home ownership rate is very low in Dhaka. It can be compared with approximately Indian cities, such as Delhi or Bombay.Rents are very high in Dhaka. Dhaka city Corporation (DCC) has fixed rent in different zones, but it is not followed properly.Bangladesh has the National Housing policy which was formed in 1993. It was amended in 1999 and in 2004. Government does not directly involve itself in the housing sector. Bake r (2007) provides that government acts as facilitator or enabler and trying to increase the access to land and housing. It is trying to modify infrastructure both for the individual and the private sector. Through Bangladesh Bank (BB) it is trying to promote housing finance institutions.Islam (2004) shows that out of one million units in Dhaka metropolitan areas private sector housing companies delivered 48 thousands housing units, public sector contributed 100,000 units and co-operative sector delivered only two thousand units.Baker (2007) has provided that main consumers of private sector housing are upper and middle income groups. He further added their minimum income should be fifteen thousand (Bangladeshi Taka) per month.Land prices are very high in Dhaka. It is considered to be the main obstacle both for self-help housing construction and private sector housing companies. Baker (2007) provides evidence that it can be compared with the suburban of New York. Dhanmondi is the mos t dear(predicate) area where the price stands at 3500 taka per square foot, (around$60). In Gulshan land price stands at 3194 taka per square foot, and in Baridhara at 3000 taka per square foot. Land in the less expensive area (such as Pallabi, Shamoli) is around 1600 taka per square foot. It is notable that there is a real scarcity of developable land in Dhaka city.Public land occupies some colony for public service holder, military cantonment and other government related institutions. But it is accepted that the use of public land is badly managed and need to be addressed to make the maximum use.