Informality in Transport Sector of Bangladesh: Causes and Effects

Abstract

Road transport system of a country contributes in the economy in many ways. Road 
transport in Bangladesh is mainly dominated by private sector. Unauthorized illegal 
collection of subscriptions through extortions is a common problem in road transport of 
Bangladesh. The purpose of this paper is to explore the existing situation of extortion and 
bribery in the transport sector of Bangladesh. Case studies were done in Dhaka city for 
buses and trucks. Two focus group discussions (FGDs) were conducted with truck drivers
and helpers. A total 46 in-depth interviews of key informants (e.g. bus drivers and 
conductors, representatives of bus-truck owner association and workers union) were 
done. Results reveal that the extortion in bus and truck is happening under different 
banners and phases, and do vary according to the amount of subscription and 
involvement of extortionists. Per kilometer subscription of extortion is much higher in 
intra-city bus service compared to inter-city bus and truck service. However, the total 
subscription of extortion and the number of extortion hotspots is more in inter-city bus 
and truck service. The rampant practice of extortion in transport sector has many direct 
and indirect effects on transport costs. The findings of this paper could be helpful for 
transport operators, transport authorities and policymakers to understand about extortion 
in transport sector of Bangladesh.