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!