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Course Title: Development Finance

Course Code: FIN 4105

Assignment on
Should Bangladesh’s capital city be moved to a different location or restructured?

Submitted To:
Md. Shahidullah Kayser
Lecturer
Department of Finance
Jagannath University, Dhaka

Submitted By:

Group No.18

Date of submission: March 6, 2022

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Group List
Course: Development Finance
Course code: FIN-4105

Serial No Name ID
1 Md. Kamrul Islam Musa B170203021
2 Md. Rifat Bepary B170203035
3 Monajat Ali B170203061
4 Shahidul Islam Apon B170203102
5 Abdullah Al Mamun B160203033
6 Shirajul Islam B140203054
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Letter of Transmittal

6th March, 2022

Md. Shahidullah Kayser
Assistant Professor
Department of Finance
Jagannath University,
Dhaka-1100.

Subject: Submission of term paper.

Dear Sir,
We are pleased to submit our term paper for the course Development
Finance (FIN-4105), on the topic “Should Bangladesh’s capital city be
moved or restructured”. We have tried our best to follow your guidelines
in every aspect of the paper. It is a great learning experience for us to
work on the given topic.
We sincerely hope that this term would help you to evaluate us. We
thank you for your guidelines and kind.
supervision.

Sincerely yours,
Monajat Ali
On behalf of the students of Group-18
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Acknowledgement

We would like to express our deepest gratitude to the Almighty for

giving us the composure to finish the paper within the scheduled time.
We would also like to thank our course instructor, Md. Shahidullah
Kayser for his endurance and valuable instructions.
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Abstract

Should Bangladesh’s capital city be moved or restructured? In this

paper, we tried to evaluate all the possible answers to this question. We
presented arguments on why Bangladesh capital city should move. We
also explored why the capital shouldn’t move. According to our
findings, there are valid reasonings for both criteria. In this paper, we
wanted to present our verdict on the given argument as well.
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Table of Contain

Contain Page Number

Introduction 7
Why should restructured 8
Bangladesh’s capital city
Why Shouldn’t’ move or 9
restructured the capital city of
Bangladesh
Defense of criticism 10
Conclusion 11
Reference 12
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Introduction

What is capital City: the city or town that functions as the seat of
government and administrative center of a country or region.

Where is generally a capital city located: A town that was chosen as a

compromise among two or more cities (or other political divisions),
none of which was willing to concede to the other(s) the privilege of
being the capital city. Usually, the new capital is geographically
located roughly equidistant between the competing population centers.
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Why should restructured Bangladesh’s capital city

High density of population: In the world, there are a trend of people to move
in the capital city from all over the country to change their life standard. There is
similar situation in Dhaka. A capital city should ideally have a population of 6 to 7
million whereas Dhaka currently has a population of roughly 21.7 million (23,000
people per square km). So, it is very overcrowded. To reduces density of
population, it should restructure.
Economical redistribution: The most problematic aspect of such overdependence
on Dhaka is the saturation of economic opportunities. More specifically,
investment in such crowded cities tends to exhibit diminishing marginal returns.
No matter how many metro rails, subways or elevated expressways are added into
the infrastructure by the government, without decentralization such investment will
not bring about the intended outcomes in terms of generating revenue or
employment opportunities in the long run.
Poor infrastructure: Dhaka has three or four times less the infrastructure required
to sustain a capital. If you look at the more efficient capitals of the world like
Moscow, Washington DC, they were pre-planned in a way to allow for necessary
expansion. That is not the case for Dhaka. There is practically no place to expand
anymore.
Traffic mismanagement: It is overcrowded with insane traffic where it takes 3-4
hours to get from any point to another. About 6% to 10% of the country’s GDP is
lost indirectly to the city’s traffic congestion.
Depleting ground water: This dependency on groundwater over a long period has
taken a toll on the groundwater level in Dhaka. According to 2030 Water
Resources Group, the annual water decline rate for Dhaka city is 3 meters per year.
If the demand increases, which is likely, then this can reach up to 3.9 meters per
year this year and 5.1 meters per year in 2030. If any preventive measures are not
taken groundwater levels will fall to 100 to 150 meters by 2050. So, government
should remove capital city from Dhaka.
Pollution: Another major problem is pollution. Everywhere is pollution like Air is
polluted by motor vehicles and factory, water is polluted by factory wastage and
home garbage, Roads are polluted by hotels and restaurant garbage, human
garbage, etc. Even rivers are polluted by factory wastage.
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Why Shouldn’t move or restructured the capital city of Bangladesh

Geographically suitable position: Dhaka still serves as the most strategically
suitable location for a capital city in Bangladesh. For these purposes, it is generally
recommended that the capital is geographically situated somewhere central to the
country and for Bangladesh, there is no place better than Dhaka.
Extremely Expensive: To move the capital city to another place is very expensive
and it’s very tough for Bangladesh. Because Bangladesh is a developing county.
For instance, it will reportedly cost Indonesia around $32 billion and Egypt around
$45 billion each to rebuild their new capitals elsewhere.
Employment Opportunity: Capital city is a place where people come from all
over the country to look forward job opportunities. There is no other city which has
job opportunity like Dhaka. So Dhaka should remain Bangladesh’s capital city.
Reduction of government control: Decentralization reduces control power of the
government, so foreign enemy can take this opportunity and it also increase
corruption.
Transportation facilities: Transportation facilities with Dhaka is very easy from
all over the country. There is no other city like Dhaka with such facilities because
Dhaka is located in the center of Bangladesh. So, Dhaka should remain as capital
city of Bangladesh.
Education Facilities: A country’s top level educational institution should be
located in the capital city. Because students of all over the country came here.
Bangladesh’s top level educational institution such Dhaka University, BUET,
Dhaka Medical College and others top level private institution are located in
Dhaka. So capital city shouldn’t move.
No International Border: A capital city should far from international border
because of privacy concern. Dhaka has not any international border. That’s why
Dhaka should remain as capital city of Bangladesh.
Lower risk of disaster: Dhaka is far from sea about 420 km. So, there is a little
risk of disaster. For this reason, Dhaka should remain as capital city.
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Defense of criticism
 It is not always needed to be the capital city situated in the center of the
country such as Colombo located Last corner of Sri Lanka. And a country
may have more than one capital city such as Sri Lanka. Its 2 capitals city
Cotta & Colombo.
 It is expensive but the benefit of future is more than its cost. It is a long run
project. And Sri Lanka and Egypt have complete considering cost & benefit
analysis.
 Employment opportunities depend on Industrialization and through
restructured the capital city it does not reduce employment opportunities
moreover it will create new opportunities. the more investment, the more
employment opportunities.
 Decentralization makes more efficiency because decentralization can easily
ensure utilization resource. It distributes resource and duty.
 Now a day’s physical transportations are not always necessary because of
online based communication. And restructured means not move to other
place at the last corner of the country .it may be near Dhaka.
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Conclusion

Moving Bangladesh’s capital city from one place to another place is not the
perfect solution but if the city will be restructured than some problem will be
solved. According to the debate we can construct a conclusion that capital
city, Dhaka, should restructured such as some of department can move
nearby Dhaka or can increase the area of Dhak
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Reference
Panther, Klaus-Uwe; Thornburg, Linda L.; Barcelona, Antonio (2009). Metonymy and
Metaphor in Grammar. John Benjamins Publishing. ISBN 978-90-272-2379-1.

^ "What does a Capital City Mean?". 5 December 2012. Archived from the original on

31 May 2017. Retrieved 9 June 2017.

^ "Where Next: The Reasons Why (Some) Countries Move Their

Capitals". Archived from the original on 10 October 2017. Retrieved 9 June 2017.

^ Makas, Emily Gunzburger; Conley, Tanja Damljanovic (4 December 2009). Capital

in the Aftermath of Empires: Planning in Central and Southeastern Europe.
Routledge. ISBN 9781135167257. Archived from the original on 10 October 2017.

^ Turku, Finland – Britannica

^ Seymour, Michael (29 August 2014). Babylon: Legend, History and the Ancient City.
I.B.Tauris. ISBN 9780857736079. Archived from the original on 10 October 2017.

^ Berlin – Washington, 1800–2000: Capital Cities, Cultural Representation, and

National Identities, ed. Andreas Daum and Christof Mauch. New York: Cambridge
University Press, 2006, ISBN ISBN 978-0-521-84117-7, pp. 4–7.

Traffic congestion in Bangladesh-causes and solutions: a study of Chittagong metropolitan city,

Shamsher, Robaka Abdullah, Mohamad Nayeem.https://scholar.google.com/citations?
user=4AexnPAAAAAJ&hl=en&oi=sra

Traffic congestion in Bangladesh-causes and solutions: a study of Chittagong

metropolitan city, Robaka Shamsher , Mohamamd Nayeem Abdullah
https://scholar.google.com/citations?user=xrhrawYAAAAJ&hl=en&oi=sra
Solution of Bangladesh capital city’s problem, Imran Hossain ,Naima Rahman
https://www.tbsnews.net/features/panorama/should-bangladesh-move-its-capital-away-dhaka-367489
Bangladesh and capital city, Dr Kibria & md sabuj
https://www.quora.com/Does-Bangladesh-have-a-plan-to-move-its-capital
Economic Distribution and Decentralization, Dr Gomez & Mrs Gomez
https://www.researchgate.net/publication/
318762375_Economic_Restructure_Privatization_and_Redevelopment_in_Bangladesh