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Compensating Displacement: The Politics of Urban Land Acquisition in
Bangladesh
Craig Johnson and Iftekharul HaqueDepartment of Political Science and International Development Studies University of Guelph, Canada
Annual World Bank Conference on Land and PovertyWashington DC, March 24, 2014
ObjectivesTo understand Land acquisition process for urban
expansion in Dhaka, Bangladesh. Compensation principles used for land
acquisition. Effects on livelihood of displaced
population.
What you can buy for . . .
$250,000 A new three-bedroom apartment in older part of Dhaka.
$1.5m A new three-bedroom apartment in the most desirable areas of Dhaka.
$2m A 4000 sq. ft. apartment in north Gulshan, one of Dhaka’s most desirable addresses
Source: The Financial Times, March 14, 2014
Bottom Five Livable Cities-2013
136. Harare (Zimbabwe)137. Lagos (Nigeria)138. Port Moresby (Papua New Guinea)139. Dhaka (Bangladesh)
140. Damascus (Syria)Source: The Economist
Growth of Dhaka City
1951 1961 1974 1981 1991 2001 20100
2
4
6
8
10
12
14
0
200
400
600
800
1000
1200
1400
1600
1800
Population (in million) Area (sq km)
Population (million)
Area (sq km)
Investment Options in Dhaka
Ahmed (2011)
Bank fixed deposits
Commerce Industry
Stocks (2006-2011 average)
Land holdings in Dhaka city (1972-2010 average)
0
20
40
60
80
100
120
140
12
3038
125
Average gross annual rate of return (%)
Dhaka’s Changing Land Use
Source: Dewan and Yamaguchi (2009)
Methodology A six-month study in Dhaka’s Eastern
fringe key informant interviews Politicians Bureaucrats Urban Planners Academics Real Estate companies Survey of 200 households FGDs with affected populations
Government led housing projects RAJUK: Developing projects in 8500 acres
of land (3 major projects)
Land acquired from general public.
Compensation: Based on historic value
Detailed Area Plan: Dhaka
Purbachal New Town
Jhilmil Residential area
Private Housing Projects
Price and Distribution of Government Plots
2600 6818
77922
0
20000
40000
60000
80000
100000
Purbachal (Government)
Uttara third phase(Government)
Bashundhara Residential Area
(private)
Price per katha (in USD)
40.02
20.29
14.09
8.74
7.93 8.94
Officials of government and autonomus organization
Expatriate
Business man
Private Service
Compensation for the affected
Others
Comparison of land price per katha (720 square feet) between government and private township projects
Allotment of plots among different professionals in Purbachal New Town Project (%)
Compensation Very low rate compensation Lengthy process of receiving compensation Difficulties in receiving compensation: Bureaucracy Corruption Middleman Rehabilitation for only owners of large area of
land Livelihood restoration was completely ignored
Housing projects by private developers Numerous private land developers but few
very big players. Expanding fast in fringe areas. Purchase land directly from land owners. Offer a competitive market price. Rehabilitation and livelihood restoration
are ignored. Forced purchasing and Land grabbing.
Incidence of forced purchase by real estate companies
Forced to sell Land filled with sand0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%65.90%
40.46%
% of respondents
Agricu
lture
Shop
keep
er (s
mal
l)
Smal
l Bus
ines
s
Day la
bour
er
Land
Age
nt0
10
20
30
40
50
60
49.14
8.576.28
2.29 2.29
37.71
1215.42
5.71 6.71
20002010
Distribution of household heads according to major occupations (%)
42.29
57.71
Occupation changed in last ten yearsOccupation Unchabged in last ten years
Occupation changed from 2000-2010 (%)
Policy Options Rehabilitation, Resettlement and livelihood
resettlement Easy and quick compensation process Housing for lower and middle income
population Improved land governance
Thank You!