Transforming Smaller Urban Centres through Local Economic Development

14.11.2024
At the World Urban Forum 12 Egypt in Cairo, hosted by the UN-Habitat, PRABRIDDHI project showcased its “Bangla Local Economic Development (LED) Model” highlighting the power of decentralised urban governance to empower secondary cities and drive resilient communities.
International experts and stakeholders unite at World Urban Forum 12 to drive inclusive and sustainable urban development. 

Jointly funded by the Governments of Bangladesh and Switzerland, and co-implemented by the Local Government Division (LGD) and Swisscontact, the project introduced the transformative “Bangla Model” that prioritises sustainable growth and inclusive governance in secondary cities. This initiative showcases how the LED model can be adapted globally for sustainable urban development.

Markus Ehmann, Team Leader of PRABRIDDHI Project and Rukhen Uddin Ahmed, Senior Advisor – Govt. Relations and LED of PRABRIDDHI showcase the importance of local governance in fostering sustainable urban transformations. 
"Even with limited resources, much can be achieved when the public and private sectors work together and plan accordingly."
Markus Ehmann, Team Leader of PRABRIDDHI

The potential of secondary cities – empowering regional urban centres for balanced growth

In Bangladesh, cities like Bogura and Jashore are key examples of secondary cities with vast potential. Secondary cities refer to smaller urban centers outside of the main metropolitan or capital city. These cities are often regional hubs that serve as important links between rural areas and larger economic centres, playing a critical role in national economic networks. However, secondary cities frequently receive less attention and fewer resources compared to major urban centres, leaving them with limited infrastructure, services, and development support.  

By focusing on these cities, initiatives such as the PRABRIDDHI project support balanced urbanisation, addressing the unique social and economic needs of these communities. This approach enables localised development that not only strengthens the economies of these smaller cities but also reduces over-reliance on larger cities like Dhaka. By empowering secondary cities, PRABRIDDHI aims to decentralise growth, enhance regional equity, and create resilient urban communities that contribute to the broader national economy.

The session on “Sustaining Local Economic Development in Secondary Cities,” was opened by an inspiring welcome address by Ms. Valérie Liechti, Head of International Cooperation at the Embassy of Switzerland in Egypt, that set the stage for a dynamic discussion on local economic growth.

"In many countries and municipalities, numerous revenue streams remain underutilised, despite a wealth of opportunity. Unlocking these streams requires capacity-building, and we can look to examples in Bangladesh, where municipalities have implemented reforms and are reinvesting generated revenues into local economic development."
Ms. Valérie Liechti, Head of International Cooperation at the Embassy of Switzerland in Egypt
"After overcoming the setbacks of past challenges, the government is committed to driving local economic development in secondary cities through initiatives such as PRABRIDDHI. These efforts are laying the foundation for sustainable economic growth, and as a government, we are committed to expanding these models to ensure the long-term resilience of our cities and the nation as a whole."
Mr. Mohammad Mahbubul Haque, Joint Secretary of the Urban Development 2 Branch of the LGD, under MoLGRD&C, and Project Director of PRABRIDDHI

Through collaborative, locally driven solutions, PRABRIDDHI is helping secondary cities build sustainable economic foundations while addressing challenges like unemployment and inequality. These efforts align with global development goals, including SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 11 (Sustainable Cities and Communities).

Distinguished panellists at the world café share insights and experiences on "Local Actions for Sustainable Cities and Communities."

Collection of case studies

Introducing a method for LED requires convincing stakeholders, achieving quick wins, and ensuring long-term progress. To succeed, it is essential to engage municipalities and decision-makers while also forming new governance structures that support local economic growth. 

This booklet presents seven examples of local initiatives that have transformed economies in secondary cities with no prior experience or knowledge of LED.  

These cases are drawn from Bangladesh, a rapidly growing and densely populated country. In each example, the cities faced limited resources, struggling to pay salaries and provide basic services. Despite these challenges, over just five years, 58 LED initiatives have been implemented, significantly impacting service delivery, employment, quality of work, and local entrepreneurship. Each case highlights how urgent urban economic challenges were tackled head-on. Together, they reveal seven secrets for success.

2020 - 2025
Bangladesh
Entrepreneurial ecosystems
PRABRIDDHI – Local Economic Development
PRABRIDDHI focuses on building the capacity of an urban or rural territory to create a competitive advantage for its enterprises through a broad set of activities and improve the economic well-being of its people and workers.