HOW can Life in Cities be made better?
24
HOW can Life in Cities be made better? The Analysis
-
Upload
askhowindia -
Category
News & Politics
-
view
1.171 -
download
6
description
Transcript of HOW can Life in Cities be made better?
!
HOW can !Life in Cities !
be made better?!!
!
The Analysis
The Analysis
Better LIFE in CITIESCities are important because that’s where India now lives …1951: 80% in Rural 20% in Urban
Census Towns: 5%!Other Cities: 10%!Metros (1mn+): 5%!Mega Cities (10mn+): 0%
Source: Urban India 2011 : Evidence, Indian Institute for Human Settlements
2011: 52% in Rural 48% in UrbanCensus Towns: 17%!Other Cities: 18%!Metros (1mn+): 9%!Mega Cities (10mn+): 4%
The Analysis
Better LIFE in CITIESCities are also important as their number is rapidly growing …
2011: 50
Metros with 1mn+ population
2031: 681951: 5
2011: 3
Mega Cities with 10mn+ population
2031: 61951: 0
Source: McKinsey Global Institute Analysis
The Analysis
Better LIFE in CITIESBut when India is faced with so many challenges, why worry about Cities? !Is worrying about cities, worrying about a few urban elite?!!
!
!
!
!
!
!
!
!
!
!
Well, NO … because Better Cities have a great impact, on everyone!
The Analysis
Better LIFE in CITIESThe Impact !Better Cities mean …
Better Economic Growth for India
Better Job Creation for Growing Population
Better Life for All, !Rich and Poor
Better Cities are critical to achieving !Economic growth and Poverty reduction.
The Analysis
Better LIFE in CITIES
Maharastra: Urbanisation 40% | per capita GSDP Rs 30,000
Punjab: Urbanisation 35% | per capita GSDP Rs 30,000
Karnataka: Urbanisation 35% | per capita GSDP Rs 20,000
Rajasthan: Urbanisation 25% | per capita GSDP Rs 15,000
Source: 2005-06 Data, Indian Institute for Human Settlements Report
As an example …!Cities have more productive jobs …
… so more urban the state, the more prosperous it is.
The Analysis
Better LIFE in CITIES
70% 70% of jobs in cities are in the volatile informal sector
Source: 2005-06 Data, Indian Institute for Human Settlements Report
But all is not well …
… so could Cities decline into Social chaos?
While Rural poor !are decreasing, !!
Urban poor !are increasing
1983!
25 mn2004!
22 mn2004!
8 mn
1983!
7 mn
40% 40% of the countries slum dwellers live in 1mn+ cities
The Analysis
Better LIFE in CITIESSo, What would make !Life in a City better? Affordable !
Housing
Streamlined !Transport
Efficient !Utilities
Social!Infrastructure
The Analysis
Better LIFE in CITIESAffordable !
HousingWhy? Undersupply!!!
!
!
!
!
Because Developers’ success depends on hoarding land and getting clearances, not on making affordable quality housing.!A Planning Commission study estimates that Developers need over 30 clearances from diverse agencies like tree-cutting department and civil aviation. And to corner land banks and procure clearances, developers resort to rampant corruption and inefficient resource usage.
Key Fact: In Berlin, one-bedroom apartments in 2012 were selling for as little as $55,000; and four bedroom houses in Rhineland for $ 80,000. Equivalent properties in Mumbai were 10 times that amount.
The Analysis
Better LIFE in CITIESAffordable !
HousingWhy Underdeveloped?!!
!
!
!
!
It does not make financial sense for city government to increase supply.!City govt bears additional expenses of providing roads, water, sewage, etc, for additional Supply, but income of stamp duty goes to State govt and taxes from increased economic activity go to Central govt.!!
Result: Maximum residential FSI in major cities around the world is above 10, while in India it does not exceed 4 and is often much lower.
Key Fact: On an average, 25% of the population of cities, lives in slums. And in some cases like Mumbai, slums account for 54% of population.
The Analysis
Better LIFE in CITIESStreamlined !Transport
Continued Indifference?!!
!
!
!
!
1. JnNURM: 57% funds for roads & flyovers, only 33% for MRTS/buses!
2. Vehicle Tax on Public Bus is several times higher than on a Car
Key Quote: A developed country is not where poor people travel in cars; it is one where rich people use public transport.!- Gustavo Petro, Mayor of Bogota
Source: Report on Indian Urban Infrastructure & Services, Mar 2011, !by the High Powered Expert Committee chaired by Dr Isher Judge Ahluwalia
The Analysis
Better LIFE in CITIESStreamlined !Transport
Collective Culpability?!!
!
!
!
!
1. Cars and Two wheelers make up 85% of vehicles on India’s roads, but account for only 29% of trips. !
2. Of the 127 cities / towns monitored under the National Air Quality Monitoring Program, only 3 have low air pollution
Key Fact: Public transport to Total urban transport, India: 22%!Upper middle income countries, South Africa, South Korea, Brazil: 40% Lower middle income countries, Philipines, Venezuela, Egypt: 49%
Source: Report on Indian Urban Infrastructure & Services, Mar 2011, !by the High Powered Expert Committee chaired by Dr Isher Judge Ahluwalia
The Analysis
Better LIFE in CITIESEfficient Utilities?
Social Infrastructure?
1. 41% of Firms in cities owned or shared a generator (2006) !2. No Indian city has 24 x 7 water - supply ranges from 1 to 6 hours!3. 55% population of Class 1 towns have access to Latrine (2001)!4. Less than 40% compliance with Municipal Solid Waste Management Rules
on segregation, collection and sweeping (2004)
Schools, hospitals, open spaces in cities well below acceptable quality standards, and not close in even quantitative terms.
The Analysis
Better LIFE in CITIES
Increased investment
Hence the AskHOW Questions for MPs!How will you strengthen and improve governance of Cities?!How will you increase financial strength of Cities?
The HPEC says: India cannot afford to get its urban strategy wrong, but it cannot get it right without bringing about a fundamental shift in the mindset which separates rural from the urban. !Challenge of managing urbanisation will have to be addressed through a combination of…!
Strengthening the framework for governance and financing
A comprehensive capacity building programme at all levels of government
HPEC: High Powered Expert Committee on Indian Urban Infrastructure & Services (Chair: Dr Isher Judge Ahluwalia)
The Analysis
Better LIFE in CITIES
The 74th Constitutional Amendment Act of 1992 mandated a role for elected Urban Local municipalities and a recommendation was made to State Governments, to devolve a specified set of functions to the local bodies.
The ability of the ULBs to deliver urban services depends on !a) devolution of funds and functions (including land use planning) and!b) helping them build capacities to fulfil their responsibilities.
The Governance ChallengeKey Fact: Only 50% of the allocated funding under JnNURM sub-mission UIG has actually been released. Cities don’t have the readiness to utilise the Funding available.
The Analysis
Better LIFE in CITIESThe Governance ChallengeKey Fact: 9 different Central Govt ministries have programs for Cities
Ministry of !1. Urban Development !2. Social Justice &
Employment !3. Women and Child
Development !4. Labor and Employment
The issues they address are !1. Housing / Shelter
(4 ministries) !2. Livelihoods /
Employment (4 ministries) !
3. Health (4)
4. Education (4) !5. Nutrition / Food
security (6) !6. Social Security (2) !7. Poverty
Alleviation (4)
5. Housing and Urban Poverty Alleviation !6. Human Resource Development !7. Health and Family Welfare !8. Consumer Affairs, Food & Public
Distribution !9. Ministry of Rural Development
The Analysis
Better LIFE in CITIES
Unified Command!!
!
!
!
• One ministry at Central Govt level, for Urban Affairs and Housing!
• One Department of Urban Affairs and Housing at state govt level
• Unified command over a city under an empowered and accountable Mayor
HPEC Recommendations for !
Resolving the Governance Challenge
HPEC: High Powered Expert Committee on Indian Urban Infrastructure & Services (Chair: Dr Isher Judge Ahluwalia)
The Analysis
Better LIFE in CITIES
HR Capacity Creation!!
!
!
!
• Set up five Indian Institutes of Urban Management (anchored in existing IIMs or as standalone excellence institutions) !
• Infuse funds and new talent into existing Schools of Urban Planning
HPEC Recommendations for !
Resolving the Governance Challenge
The Analysis
Better LIFE in CITIES
HR Capacity Building!!
!
!
!
• 300 officers from IAS and other central services trained annually as urban specialists!
• Transparent search-cum-selection process in the appointment of the Municipal Commissioner, with minimum of three years tenure of Management team!
• Develop dedicated IT cadre with a Chief Information Officer for the larger cities
HPEC Recommendations for !
Resolving the Governance Challenge
The Analysis
Better LIFE in CITIES
Key Fact: Spending on Urban infrastructure is 6% of GDP in South Africa and 7.4% of GDP in Brazil, but in India it is a paltry 0.9% of the GDP.
The 74th Amendment recommended devolution of functions, but did not insist of devolution of revenues. State Finance Commissions have been set up to propose devolution of funds, but rarely done adequately, and hence ULBs have little ability to predict availability of funds.
• Investment required ~Rs 40 lakh crores over 20 years (or Rs 2 lakh crores /year), compared to expenditure of 1.6 lakh crore in 2012 - a 25% increase is to be sustained!
• But Cities will need to meet 2/3rd of their expenditure through their own revenues by 2031. So Cities have to increase their own spending from Rs 0.50 lakh crores in 2012, to Rs 1.2 lakh crores (up 140%) by 2022 and Rs 1.5 lakh crores (up 300%) by 2032.
The Financing Challenge
The Analysis
Better LIFE in CITIES
Taxes!!
!
!
!
• Strengthen legal ability of Cities to levy taxes !• Reform Property Tax system for wider net, and better
recovery: From 56% coverage and 37% recovery, if we move to 85% coverage+recovery: Revenues grow 340% (from 0.2% to 0.68% of GDP)!
• 13th Central Finance Commission boldly recommends automatic fund transfer to local governments through a percentage of the divisible pool of taxes
HPEC: High Powered Expert Committee on Indian Urban Infrastructure & Services (Chair: Dr Isher Judge Ahluwalia)
HPEC Recommendations for !
Resolving the Financing Challenge
The Analysis
Better LIFE in CITIES
Land Value based charging!!
!
!
!
• Conversion /betterment /impact / development charges, as well as FSI should be priced on the basis of land value!
• And land value appreciation must be captured by Govt (not by Developers and speculators) and funds must be used to build and renew City infrastructure
HPEC Recommendations for !
Resolving the Financing Challenge
The Analysis
Better LIFE in CITIES
User Charges!!
!
!• User-charges (for water, waste management, etc) to be recovered
separately, and not through Property Tax • User-charges should cover operating, and capital servicing costs !• Automatic indexation for charges to cover cost increases - Water
charges cover only 30-35% of O&M expenses. For poor, water supply is very costly: they cannot go to work on days that water is to be collected)!
• Parking fee to raise revenue and encourage public transport. Average daily parking rate in India cities is around US$ 2 (Rs 90), while cities in other developing countries charge US$ 10-15 (Rs 450-675) per day.
HPEC Recommendations for !
Resolving the Financing Challenge
IN CONCLUSION!
Please Ask your Lok Sabha candidate
www.AskHowIndia.
org
Creative Partner!MeriMaaCineMAA
More? F
ollow
AskHow
India
on
How will land use planning and transport planning be
integrated to encourage use of public transport?
How will single point responsibility for City
planning and management be established ?
How will more !land / space be released !
to make housing affordable?How will !
Cities' have enough Funds?
How will Cities' management capability
be strengthened?
