Why would a country change its capital city? | The Economist
- 5 years ago
In the past century no less than eight countries have changed their capital city. Although expensive to build, such an effort can provide a lasting economic boon.
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Why would any country go to the trouble of changing its capital city? In the past century, no fewer than eight countries have done just that.
Brazil's government relocated it's capital from overcrowded Rio de Janeiro to the planned city of Brasilia in 1961. Designed for half a million people, in the 56 years since its population has increased eight-fold, and is continuing to rise.
Other purpose built capitals have seen even greater population growth. That influx of people can also transform economic activity in new capital cities. In fact, the federal district of Brasilia has a better performing economy than any other state in the country.
Productivity in the rest of Brazil seems weak by comparison. 40% of jobs in Brasilia are in the public sector but a new capital doesn't come cheap. Brasilia cost a reported $19.5 billion in today's terms.
So which will be the next country to relocate its capital? Plans have been tabled to build a new Egyptian capital west of Cairo in the desert.
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Why would any country go to the trouble of changing its capital city? In the past century, no fewer than eight countries have done just that.
Brazil's government relocated it's capital from overcrowded Rio de Janeiro to the planned city of Brasilia in 1961. Designed for half a million people, in the 56 years since its population has increased eight-fold, and is continuing to rise.
Other purpose built capitals have seen even greater population growth. That influx of people can also transform economic activity in new capital cities. In fact, the federal district of Brasilia has a better performing economy than any other state in the country.
Productivity in the rest of Brazil seems weak by comparison. 40% of jobs in Brasilia are in the public sector but a new capital doesn't come cheap. Brasilia cost a reported $19.5 billion in today's terms.
So which will be the next country to relocate its capital? Plans have been tabled to build a new Egyptian capital west of Cairo in the desert.
Daily Watch: mind-stretching short films every day of the working week.
For more from Economist Films visit: http://films.economist.com/
Check out The Economist’s full video catalogue: http://econ.st/20IehQk
Like The Economist on Facebook: https://www.facebook.com/TheEconomist/
Follow The Economist on Twitter: https://twitter.com/theeconomist
Follow us on Instagram: https://www.instagram.com/theeconomist/
Follow us on LINE: http://econ.st/1WXkOo6
Follow us on Medium: https://medium.com/@the_economist