What will the $2000 Tata car mean for traffic jams in Dhaka?
Some possibilities:
1. The traffic jams will get better - rickshaws and autorickshaws will be crowded out as more people who used to use them will now be able to afford the $2k car (or perhaps, $2k taxis)…
2. The traffic jams will get worse. Autorickshaws and rickshaws will not be driven out of the market, but their fares will drop because of pressure from $2k taxis and cars.
I think 2 is more likely. Autorickshaw drivers will likely be less badly affected as they might be able to jump across to driving the $2k car (which will cost a little bit more than the monopolistically-priced CNG autorickshaw) But rickshaw-pullers will see their already meagre earnings drop. This really is (or should be) the bigger issue, than the worry about traffic jams…
3 comments
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April 30, 2007 at 8:25 am
Asif
Of course it should be the bigger issue, but as we all know the mythical “average Bangladeshi” is always a middle-class man (yes, man!), not the poorer majority.
May 2, 2007 at 12:12 pm
Fugstar
i dont think deshis who can afford cars would buy indian ones unless they couldnt help it. East asia is simply better at cars. Indian cars boil their passengers!
smart road network, cab driver unions and ricksha redesign would be good places to start.
May 2, 2007 at 7:45 pm
Shamshir
Yes, but it’s a $2K car. I’m not pushing it - but the market dynamics and the sheer affordability of it will.