Around 30 per cent of the city's population is made up of people from Bangladesh, India, Pakistan, Africa and the Caribbean. The great majority of these non-white people live in the inner-city ring of deprivation. In some areas, they account for over 60% of the population. It is clear that deprivation in the City is partly to do with ethnicity and discrimination.
It has required the help of the media to promote and spread the image of the 'new' post-industrial Birmingham. It has also required much regeneration in the city's core area and inner ring to provide the modern offices and shops that are an essential part of its new economic role and the city's 'new face'. Although the city has successfully changed its image and has recently enjoyed strong economic growth, there are problems. Growth has placed a great strain on the city's transport system, with many roads and the central railway station overloaded during peak periods. Adding to the transport issue is the fact that many of the higher skilled jobs have gone to commuters from the surrounding West Midlands. At the same time, high rates of unemployment exist in inner-ring districts. In short, the benefits of Birmingham’s successful transformation have not been distributed evenly throughout the city. This will be illustrated in the next section, which looks at urban deprivation. The sad fact is that the city's now prosperous core is almost surrounded by a ring that, despite much regeneration, still contains old and inadequate housing, poor services and poverty. Many of the residents of such lagging areas feel increasingly disaffected. Birmingham's population still shows strong polarisation.
Dhaka is the capital of Bangladesh, and it has a population of nearly 7 million people and it is three times the size of Birmingham but there are link between them. Both cities have been involved in the global shift in manufacturing. Dhaka has experienced urban change; transnational corporations have been drawn to Dhaka by its large supply of very cheap labour. HSBC banking and Siemens electronics are two TNCs that operate in Dhaka.
The city has become particularly involved in the clothing and garment industry. It’s 'sweat shops' now produce clothes that are sold in the shops of most MEDC cities. The city has benefitted greatly from the growth of clothing manufacturing but there is still around 25% of unemployment in Dhaka. One cause of the unemployment is because of the high rate of population growth which is around 4% per year. The growth was caused by large volumes of rural -urban migration and high levels of fertility.
Another reason for the high unemployment rate is because of the population growth exceeding the rate at which new jobs are being created. This is a common situation that LEDC cities face. People are forced to find other ways to make a living, even though they are willing to work long hours for very low wages, this is called the informal economy. This may involve selling in the street, shoe-shining, rubbish collecting or recycling. Begging, petty crime and prostitution are other, less legal ways of scratching a living. These activities make up the informal economy.
The driving of rickshaws in Dhaka is very popular and it is the most common informal activity, with nearly half a million people involved. There is very little public transport so rickshaws play a vital part in keeping the city moving. However, the large amounts of rickshaws add to congestion on busy and inadequate roads. Over 500,000 children are estimated to be involved in the informal economy, most of which will work from the early hours to late at night, earning no more than 12p per day to help their families. Many of these children will beg and scavenge to domestic service and collecting money from public vehicles, such as minibuses. These children work in vulnerable conditions. They are exposed to hazards, such as traffic accidents, street crime, violence, drugs, sexual abuse, toxic fumes and waste products. These extremely poor working conditions lead to serious health problems for the children.
In Dhaka there are not many statistics which show how widespread deprivation, like most LEDC cities, but there is lots of visible evidence that show that deprivation is happening and it is a serious problem. People are malnourished and poorly clothed which is obvious evidence. Illegal shanty
Settlements are scattered around on land regarded by developers as being unsuitable for development mainly because of flood risks. The city’s residents also suffer a very high crime rate and frequent outbreaks of political and religious violence.
Urban change has led to social and economic challenges in MEDC cities such as Birmingham and LEDC cities such as Dhaka. Both cities have been experiencing urban growth; Birmingham’s population is becoming increasingly diverse. More than a third of the population is now from black and minority ethnic communities, and by 2026 it is expected that no single ethnic group will form most of the city's population. Where as in Dhaka the population has been growing at a pace of almost four per cent a year and is the the fastest among the South Asian cities, as all the major manufacturing industries are concentrating here, attracting masses of migrants.
Issues and problems arise mainly because those whose job it is to manage urban areas fail to appreciate the scale and speed of growth. As a result, the provision of basic things such as water and sewage treatment, transport, housing and social services tends to fall behind the rising level of demand. It is in this widening gap between demand and supply that many of the issues associated with urban growth are occur.