Dhaka's preeminence and the paradox

Dhaka District's preeminence on account of the capital city it hosts is quite logical. But such a primacy is not axiomatic. In many countries commercial capitals outstrip their administrative capitals particularly on the strength of economic muscle. Even in Bangladesh, Chattogram had the potential of surpassing Dhaka. Now Dhaka's supremacy is both a blessing and a bane. The paradox could not be more glaring when the district's GDP and per capita income are taken into account as against its poverty rate compared with the national average. A new economic analysis based on the Economic Position Index (EPI), only the second homegrown economic index in the country developed by the Dhaka Chambers of Commerce and Industry (DCCI), finds that Dhaka District alone boasted 46 per cent of the national GDP estimated at $462 billion in the financial year 2024-25. Following this, its inhabitants enjoy nearly double the per capita income estimated at $5,164 as against the national average of $2,820.

That this striking contrast is due largely to the capital city is understandable. This megacity has not only remained the centre of administration but also served as the throbbing commercial, economic and employment hubs of the nation. Development of the DCCI index (EPI), as its president claims, was necessary to overcome the limitations of local and international indices tracking the business environment. Since the existing indices fail to capture the 'real dynamics and drivers of economic activity, the EPI has been developed to present a quarterly authentic picture. However, the duration of the study of only two months from February to March has its own limitation because seasonal variation of commerce and economic activities cannot be ruled out. Even the number of respondents 654 respondents ---365 from manufacturing sector and 289 from service sector may not present an accurately representative picture.

But about the concentration of wealth and opportunities, there is hardly any dispute. This megacity is home to the country's highest number of millionaires. In contrast, it also hosts the largest number of slum dwellers in the country. They and the poor living in all across the district account for the 19.6 per cent poverty rate as against the 19.2 per cent national average. Thus the paradox is not just theoretical but also a stark reality. The poor and marginal segments of the district fare far worse than their counterparts living elsewhere in the country. It can be compared with the darkness right below the lamp. The inequality is more glaring here than in the rest of the country.

Yet the metaphor highlighting disorder concerning concentration of blood in the face depriving the rest of the body applies to the accumulation of wealth in this megacity. It deprives not only the hapless slum dwellers and the poor living in the district but also the entire population sans the fortunate few. To the unease of the economists and development practitioners, the disparities and discrimination are hardly narrowing down. Lately those are rather yawning. Now that the leaders of the DCCI have made the focus on distribution of wealth sharper, courtesy of the (EPI), they should work together with other chambers of commerce and the government to find a step-by-step solution to the socio-economic discrimination. No economy stands a bright prospect on staggeringly unequal opportunities and distribution of wealth.