Extortion on Dhaka’s streets is a common phenomenon that increases exponentially in the month leading up to Eid. The only reason the scope for this kind of extortion exists is because over-regulation is such a persistent problem in the nation.
Many street vendors will set up shop on sidewalks in the city in an effort to peddle their wares. While this, in itself, is illegal, we think it is important to address the root cause that gives rise to all of these activities.
Bangladesh is an extremely bureaucratic country, bound by out-dated and illogical regulations that make it extremely difficult, if not impossible, to set up a business. Especially if one is not politically well-connected, or is not in a position to invest large sums.
We are a nation that puts up unnecessary barriers for small businesses and their owners – as opposed to shoring up small business owners and providing them greater opportunity and improving the country’s overall economy.
This is the reason that many in Bangladesh will circumvent procedures and set up businesses illegally, thus putting themselves in a position where unscrupulous political leaders and law enforcers can take advantage of the situation.
The government would do well to think about how difficult they have made it for entrepreneurs in Bangladesh, and take initiatives to improve the situation.
These could include anything from streamlining the small business licensing process to providing public spaces where street vendors can ply their trade.
The benefits of such actions would reverberate at all levels, with the government able to collect licensing fees and rent (from public vendor areas); the vendors no longer being taken advantage of by extortionists; and pedestrians in the city gaining access to usable sidewalks.