Formal management structure of informal market: A case study of Bou Bazar of Dhaka, Bangladesh

Abstract

The increasing importance of the informal market economy as a livelihood strategy in urban areas across developing countries, particularly in Bangladesh, secures an important position for the low- and middle-income people of a city. This study focuses on Bou Bazar market of Dhaka, Bangladesh, to examine the spatial, temporal, and managerial dynamics of a market characterized by a unique structure that combines both formal and informal elements of a market. Thus, it allows the investigation of a distinct type of market model, which has the potential to perform better than pure informal markets. The study involved Focus Group Discussion with different stakeholder groups, a series of interviews, and the utilization of different Participatory Rapid Appraisal (PRA) tools for data collection. Qualitative analysis was employed through clustering, grouping, and comparison within the collected data. Key findings include increased vendor diversity driven by growing demand, efficient use of public space with limited operating hours, improved vendor satisfaction through balancing their autonomy, external management with stakeholder collaboration and a discretionary policy of service fee which could not be assigned to any useful purpose other than exploitation. The study suggests that formal management of any informal market offers comparative advantages to ensure inclusive economic growth that can be a beneficial learning for other developing countries as well.