Bangladesh Leather Policy: Impact & Unexpected Consequences

The Role of U of A Economics Researcher in the Emerging Economy

Are you aware of the significant impact that economic research can have on an emerging economy? An esteemed economics researcher from U of A’s Sam M. Walton College of Business is making waves in his field. Together with his international colleagues, they’re working tirelessly to develop sustainable policies geared towards benefiting developing countries.

Bangladesh’s Rapidly Growing Economy

In the heart of Asia, surrounded by India, Myanmar, and the Bay of Bengal, lies Bangladesh. This country boasts one of the fastest-growing economies among developing nations. Its economy thrives chiefly on textile and leather industries, which export products like garments, footwear, fabric, and jute yarn, amongst other goods.

The Environmental Impact of Tanneries

However, with great economic growth comes the responsibility of managing the impact on the environment. Tanneries, vital to the leather industry, employ heavy metals such as chromium, lead, copper, zinc, nickel, and cadmium in processing their goods. If not properly managed, these toxics compounds can seep into water supply systems, causing possible contamination of drinking, bathing, and irrigation water sources.

The Hazaribagh Tanneries and Related Pollution

The Dhaka metro area in Bangladesh was once home to Hazaribagh, a cluster of 250 tanneries providing employment for around 50,000 workers. Unfortunately, these tanneries were a major source of environmental pollution. Hazardous waste from these tanneries accounted for an estimated 40% of the total waste in the area.

Government Intervention for Environmental Sustainability

To combat this issue, the Bangladesh government decided to relocate the tanneries. The new location in the Dhaka suburb of Savar also saw the establishment of a water treatment plant. However, this solution raised the question – at what cost?

In-depth Socio-economic and Health Impact Study

Md. Amzad Hossain, an assistant professor of economics at the Sam M. Walton College of Business, alongside fellow researchers, undertook an in-depth study of the socio-economic and health impacts resulting from the tannery relocation. The International Growth Centre, a London-based global research nonprofit, awarded the researchers a $35,000 grant for this crucial study.

The Researchers’ Mission

The researchers aim to present their findings to the Bangladesh government and other stakeholders in Dhaka. Their goal is not just to present these findings but to urge these stakeholders to develop comprehensive policies concerning water and air pollution. This would protect workers from potential hazards such as expensive housing costs, job losses, and medical problems.

Future Regulations and Insights

The relative effectiveness of the tannery relocation policy will be evaluated to gain vital insights for future regulations. The findings of the research could be used to balance economic growth and environmental well-being, not just in Bangladesh, but also in other developing countries facing similar industrial and environmental challenges.