The World Bank has warned that Bangladesh’s urban progress is being held back by deep-rooted institutional and governance weaknesses that limit cities’ ability to manage rapid growth.
In its Bangladesh Development Update, the Bank said overlapping responsibilities among ministries, weak fiscal decentralization and poor coordination have led to inefficiencies in planning and investment. Subnational governments account for less than 5 percent of total public spending, one of the lowest shares among comparable economies, leaving local authorities dependent on central transfers.
The report also highlighted a shortage of skilled staff, fragmented data systems and outdated city master plans that fail to reflect new industrial and demographic realities. Without stronger local institutions, it warned, Bangladesh risks worsening congestion, inequality and environmental strain as urbanization accelerates.
The Bank urged clearer division of authority, improved transparency, and modern data tools to guide urban policy.