Turning around the least liveability: a cost-benefit framework for Dhaka

Turning around the least liveability: a cost-benefit framework for Dhaka

The aim of this chapter is to seek smart solutions to key socio-economic, environmental, and infrastructural issues facing Dhaka city, the capital of Bangladesh. Specifically, a cost–benefit analysis (CBA) is employed to assess the suitability of selected intervention strategies for a liveable Dhaka city from the perspective of society. This study investigates the following key research questions: (i) How can Dhaka, a rapidly growing city, become liveable (interventions)?; (ii) How much is the liveability worth (costs)?; (iii) What are the socio-economic, health, and environmental benefits of interventions (benefits)?; and (iv) Are the interventions worth undertaking (net benefit)?

The research findings are based on two focus group discussions and a number of key informant interviews in the study area, as well as on an extensive review of published documents. Economic analysis revealed that the benefit–cost ratio at 10% discount rate and internal rate of returns of the project are 1.92 and 42%, respectively, which indicate the project is attractive, both financially and economically. However, this leaves policymakers, planners, development partners, and concerned citizens to make value judgment calls when interpreting these numbers. The results, which should be interpreted alongside the social and political imperatives of a rapidly growing megacity, suggest an immediate intervention to avoid any further deterioration of the environment and social structure.

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