1 Strengthening Urban Management India: Unlocking the Potential of Indian Cities 2004 Trends in Urbanization and Need for Good Urban Governance Dr A.. Narender Administrative Staff College of India Bellavista Hyderabad

2 The Urban Context Mankind is going through one of the most radical turning points in the demographic history. An unprecedented shift of human settlements from rural to urban areas

3 The Urban Context Urbanization has emerged as positive historical and irreversible force The economic base is shifting from agricultural and industry based to trade and service based

4 The Global Urban Context The 1994 revised UN estimates show that 45 percent or 2.5 billion of the world population lived in urban areas in mid-1994 By 2005, half of the world population is expected to be urban residents and by the end of 2025, more than 60 percent of them will live in urban areas.

5 By 2025, about 80 percent (4 billion) of world’s 5 billion urban people are expected to live in the less developed regions. In 1994, of 2.5 billion urban people of the world, 1.7 billion or 68 percent lived in the less developed regions of Asia, Africa and Latin America. Within the less developed regions, most of the world’s largest agglomerations are found in Asia. The Global Urban Context

6 9 out of 15 largest urban agglomerations were in Asia in 1994 and the number may go up to 10 by 2010 with Mumbai moving up from 15 th place in 1980, to second in 2010 and Dhaka from 21 st position in 2000 to 11 th in 2010 and to 9 th in 2015.

7 The Urbanization of Poverty An accompanying feature of urbanization is shift in poverty from rural to urban areas The absolute number of poor in urban areas is increasing while that of rural areas is decreasing Slums and informal settlements have grown significantly and can not be ignored

8 Indian Urban Context million constituting 26%-1991, 285 million constituting 28% in 2001 Ranked 58th in the world in terms of Level of Urbanisation (83 low income countries)-Pakistan (33%), Nigeria (36%), Philippines (43%), Egypt (47%) Urbanisation ; ; ; ; Decadal growth ; ; ; ;

9 Indian Urban Context India has the second largest urban system in the world after China 285 million people reside in urban areas contributing 60 percent to the national income. There are about 35 metropolitan cities in the country and the number may go up to 45 by 2010.

10 Indian Urban Context By 2021 India is expected to have 41% of urban population constituting 550 million people- metropolitan cities 75 Contribution to national income %; %; %

11 Andhra Pradesh Decadal variation India Decadal variation Census year Urban Table showing the comparative trends in growth rates since – India & Andhra Pradesh

12 Key Observation India has experienced slow urbanization process It has not been paid adequate attention Its potential is not been understood and utilized fully

13 Reasons for Slow Urbanization Contribution of rural-urban migration declined between and , both in absolute and proportionate terms Municipal boundaries did not change significantly Small contribution of reclassification of areas The contribution of natural increase significantly larger both in absolute and proportionate terms Net result is slow pace of urbanisation

14 Explanations- Rural Policy Bias Political representation in Parliament fixed on the basis of 1971 population (17%)- urban areas are under represented Deliberate attempts to reduce migration by emphasising rural development and poverty alleviation programmes- IRDP, NREP(JRY), public sector banking loans, subsidised infrastructure Decline in rural poverty %; %; %s

15 Industrial Location Policies Controls on industrial growth in cities and urban areas Policy to promote backward area development The impact expected to be limited due to low employment potential of industry

16 Improved Rural Income and Employment Ratio of per capita incomes between rural and urban areas declined from 1:2.45 in to 1:2.31 in to 1:2.16 in to 1:2.0 in 2001 (estimated) Increased share of non-agricultural incomes Favourable terms of trade for agriculture Rural urban commuting and increased urban sprawl due to high cost of urban living

17 Importance of Urbanisation India has the second largest urban system in the world after China 285 million people reside in urban areas contributing 60 percent to the national income. There are about 35 metropolitan cities in the country and the number may go up to 45 by 2010.

18 Importance of Urbanisation By 2021 India is expected to have 41% of urban population constituting 550 million people- metropolitan cities 75 Contribution to national income %; %; % “Cities are engines of productivity and growth and national economic growth and poverty reduction efforts will be increasingly determined by the productivity of cities and towns”(MUD&PA, GOI)

19 Challenges of Urbanisation Inevitable and irreversible process of urban growth  The large base of urban population with substantial number of poor and vulnerable groups  The complex, intense and dynamic nature of urban problems

20 Challenges of Urbanisation Poverty, shelterlessness, pollution, congestion and crime are increasingly becoming urban Problems of limited resource base and limited capacities have only accelerated drastic deterioration of the urban environment. The urbanization process may lead to social exclusion of the poor, vulnerable and marginalized groups

21 Service Challenges Access to safe drinking sources – 82 percent Access to tap water – 65 percent; within premises – 42 percent Average per capita supply – 54 to 160 lpcd Access to toilets – 63 percent; within premises – 33 percent (estimated) Connections to sewerage – 28 percent (estimated)

22 Urban Poverty Issues Urban poor increased from 60 to 76 million rural reduced from 261 million to 244 million in India Urban poor in A.P. increased from 4.75 in to 7.45 in Lack of access to land and housing Non-availability or inadequate access to civic amenities-water and sanitation Inadequate access to social infrastructure- health and education

23 Urban Poverty Issues Lack of regular employment or gainful and productive employment Threat of livelihood Threat of eviction Exposure to social violence Diseases and epidemics Marginalisation and social exclusion

24 Slum Population (2001) 47Faridabad 44Meerut 23Ludhiyana 35Nagpur 33Kolkata 49Mumbai Slum Population (%)City

25 Policy Issues Addressing Poverty Extending land tenurial rights and housing Providing civic amenities and social infrastructure Providing employment and livelihood Involving the poor and addressing their needs and priorities

26 Policy Issues Addressing Poverty Addressing the needs of most vulnerable groups- working children, street children, school dropouts, pavement dwellers, female headed households, rag pickers Social safety nets- food security, girl child protection, widow pensions

27 How to Address These Challenges? These Challenges Can only be addressed through Effective and Good Governance

28 What is Good Urban Governance? “ Is perhaps the single most important factor in eradicating poverty and promoting development……” Kofi Annan, Secretary General, United Nations

29 Good Urban Governance It extends beyond the conventional law- enforcing, service providing domain of the state to imply a process of development which is participatory and takes into consideration the interests of all stakeholder groups in society, especially of the most excluded and disadvantaged sections.

30 Good Urban Governance Good governance is seen as a process that promotes and encourages sustainable socio-economic, human and cultural development of societies and people

31 Good Urban Governance The 1999 Human Development Report for South Asia goes one step further to introduce the concept of Human Governance, conceptualised as “governance… which is dedicated to securing human development”. It is described as being composed of three dimensions of good governance – good political governance, good economic governance, and good civic governance

32 Good Urban Governance A process of development which is participatory and takes into consideration the interest of all stakeholder groups, especially the most excluded and disadvantaged

33 Principles of Good Governance Participation Rule of law Transparency Responsiveness Consensus orientation Equity Effectiveness and efficiency Accountability Strategic vision

34 Participation All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively.

35 Rule of law Legal frameworks should be fair and enforced impartially, particularly the laws on human rights.

36 Transparency Transparency is built on the free flow of information. Processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them.

37 Responsiveness Institutions and processes try to serve all stakeholders

38 Consensus Orientation Good governance mediates differing interests to reach a broad consensus interest of the group and where possible on policies and procedures.

39 Equity All men and women have opportunities to improve or maintain their well-being.

40 Effectiveness and efficiency Processes and institutions produce results that meet needs while making the best use of resources.

41 Accountability Decision-makers in government, the private sector and civil society organisations are accountable to the public, as well as to institutional stakeholders.

42 Strategic Vision Leaders and the public have a broad and long- term perspective on good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded

43 GUG-A Holistic Approach GUG Mun Mgmt & capacity building Service to the poor Decentralization Municipal finance Environment Transparency & civic engagement

44 Approaches to Good Governance Decentralisation- Acts, Institutional Arrangements, Centre-State Relations, Functions of Elected Officials Municipal Finance- RIP, Accounting Reforms, Pricing and cost Recovery Enviroment- Strategy, Status Reports, Community Awareness, Integrated Waste Management Systems, Solid Waste Rules 2000, Monitoring

45 Approaches to Good Governance Integration of Poor- Participatory Poverty Assessment, Participatory and Micro Planning, Land and Shelter, Sharing of Information and Best practices Civic Engagement- Public Consultations, Citizen Charter, Report card System, Single Window Cell And Customer Care Centers

46 Approaches to Good Governance MunicipalManagement and Capacity Building- IT and MIS, PPP, HRD and Organisational Strategies, Capacity Buiding Programmes for Political, Administrative, Functional and Operative Grass Root Level Functionaries including NGOs CBOs, Innovative Methods of Learning including Distance Learning, IECs, Internal Report Card Systems, Sharing of Best Practices

47 Conclusion Good urban governance requires a fundamental shift in philosophy, approach and functioning of cities and city governments Recognizing cities as engines of economic growth and poverty reduction is central to the concept of good urban governance Good urban governance requires a holistic and comprehensive approach

48 Conclusion The goal of good urban governance is sustainable delivery of high quality services, economic growth and poverty reduction It promotes a development process which is participatory, consultative and inclusive It enables the creation of efficient, productive, equitable and livable cites and urban centres

49 The Way Forward Devolution of powers and strengthening the revenue base of ULBs Encourage innovation and best practice sharing Capacity building of decision makers Incentivize ULBs to reforms – City Challenge Fund HRD and institutional development Commercialization and customer orientation

50 The Way Forward Incentivize ULBs to serve the poor Participatory and consultative approaches to service delivery Public Private Community Partnerships for Service Delivery Implementation of MIS and GIS

51 Thank You