Of late, I have visited Khulna on several occasions relating to my research works. But each time I went there, I found its face fading away. It all started with the declining importance of jute in the economy, as Khulna supplies most of the jute and jute goods. More painfully, the continuous closure of industries at Khalishpur -- the life blood of Khulna's industrial involvement -- turned the tide against it.

It is very sad that while industries lose economically due to rampant corruption of the management -- as elsewhere -- the poor workers have to pay the price in terms of losing jobs following the closure of business. We have noticed that many industries in Bangladesh closed down over the years on the plea of non-profitability, but no actions have so far been taken to punish the main actors responsible for such an outcome.

Before I tell the sad story about Khulna, I shall draw a few statistics from the Statistical Year Book 2004. As can be gleaned, Khulna Division embraces 10 districts: Bagerhat, Chuadanga, Jessore, Jhinaidaha, Khulna, Kushtia, Magura, Meherpur, Narail and Sathkhira. The total area is 22,274 sq km -- roughly one fifth of Bangladesh's total area -- and holds 15.36 million people. The total GDP is about 12 per cent of Bangladesh GDP, and population is also 12 per cent. The per capita GDP is roughly $355 compared to the national average of $363. According to Household Income and Expenditure Survey (HIES) 2000, Khulna Division (including Barisal) is the home of roughly 18 per cent of the poor people in Bangladesh. Poverty level (head count) is 48 per cent.

Khulna holds historic ramifications also. For example, the first provisional Government of Independent Bangladesh took its oath in Meherpur mango orchard under Meherpur district. The historic inputs should have induced more enthusiasm for the development of that part of the country. The major trading point with India, called Benapole, lies in Jessore. Roughly two-thirds of the trade with India takes place through that border. The famous Sundarban, and the second sea port, Mongla, belong to Khulna. More importantly, perhaps, a large portion of shrimp export is made from Khulna. Paper and sugar mills are located in that part of the country.

However, the pervasive presence of extremists in that region tends to stall much of the progress and prosperity that could easily take place. Khulna's development is also being deterred by the exploitation of water bodies for shrimp cultivation by an unscrupulous few. In fact, the poor need protection from the state against the grabbing of their ponds by the powerful.

Now it takes about seven hours or so to reach Khulna from Dhaka. Thanks to the growth of the private sector, luxurious coaches operate in a competitive environment to make the trip relatively more comfortable. There is a growing feeling that the construction of the Padma bridge could make Khulna more vibrant. Hopefully, the bridge will be constructed. That would help gas supply and, thus, promote a robust growth of industries and transport. Non-farm activities could spread across the region to reduce poverty level. As salinity increases, saline resistant crops could keep farmers on an even keel. For that to happen, special allocations are needed for research and extensions.

I met a few businessmen at the Khulna Chamber of Commerce and Industries.The Chamber people complained about the bank interest rate now allegedly running at 15-17. In fact, Bangladesh has the highest interest rate in this region which makes business and trade uncompetitive. Of course, this is the problem all around, but since the transaction cost is very high in Khulna, the pin, perhaps, pinches more there.

Mongla port needs special arrangement for exports and imports. Discussions with the business community reveal that the port needs proper dredging to facilitate movement of cargo ships. A deep sea port is an option to ponder on. The golden fiber of Bengal, jute, should stage a comeback, with all its attended multiplier and linkage effects, to get Khulna thriving. But for that to happen, the government has to come up with some visionary ideas.

Like Chittagong rose to its present height as a major port city, Khulna should also develop as a major port city. Mongla lies only 40 km from Khulna, whereas Chittagong is roughly 800 km from Khulna. The southern part of Bangladesh needs to reduce transport costs (30 per cent more than eastern part) to compete in world markets.

I would like to see Khulna develop for strategic reasons also. The growth of extremists in that part of Bangladesh could possibly be curtailed through massive investments in roads, highways and education. Both physical and human infrastructure of Khulna need a boost to fight against socio-economic odds prevailing there. Khulna division needs to be integrated with Bangladesh and overseas markets through the construction of bridges and dissemination of emerging technologies. To go back to its glorious past, Khulna needs more attention from the government, at least more than it has received so far.

Abdul Bayes is a Professor of Economics at Jahanigirnagar University.