Khairul Alam ; Dhaka- A new initiative to introduce a formal management policy for street hawkers in Dhaka has ignited a fierce debate among urban planners, economists, and legitimate shop owners.
While the government aims to bring discipline to the sidewalks, experts warn the move could create “unequal competition” and permanent urban congestion.
The Burden of Inequality
Legitimate businessmen, who operate out of permanent shops, argue that the policy favors hawkers who pay no trade license fees, VAT, or high rents.
“My shop rent is 12,000 BDT, and with electricity and staff salaries, my monthly costs exceed 30,000 BDT,” said Rezaul Karim Majhi, a cosmetics trader in Mirpur. “If hawkers are given legal space for a nominal fee, how can we compete? It feels like we are being penalized for following the law.”
The Extortion Economy
Urban planners have raised alarms over the massive scale of extortion currently surrounding the sidewalks. Investigations by the BRAC Institute of Governance and Development (BIGD) suggest that nearly 1,825 crore BDT is collected annually as “chanda” (extortion) from approximately five lakh hawkers in the capital.
This money flows into the pockets of influential political figures, “linemen,” and corrupt officials, while the government treasury receives nothing.
Critique from Urban Experts
Professor Dr. Adil Mohammed Khan, a prominent urban specialist, criticized the policy for being too Dhaka-centric. “Why is this policy only for Dhaka North and South? Cities like Chittagong, Sylhet, and Rajshahi face the same issues.
We need a national framework,” he stated. He further emphasized that while the poor deserve social safety nets, turning illegal occupation of public footpaths into a “rehabilitated” right is fundamentally flawed.
Government’s Stance
In response, Md. Rabiul Islam, Deputy Secretary of the Local Government Division, clarified that the policy is a pilot project starting in Dhaka. “Our goal is not profit, but discipline. The fees collected are strictly for administrative costs like QR-coded smart cards and identification,” he explained.
Sidewalk Conditions and Re-occupation
Despite eviction drives in April that temporarily cleared areas like Gulistan and New Market, hawkers have already returned to the footpaths.
Under the new policy, hawkers must leave at least five feet of space for pedestrians and cannot sit near metro stations or major intersections.
However, residents remain skeptical about whether these rules will be enforced once the “smart cards” are issued.