The twenty-first century will witness a rapid urban expansion in the developing world. India, it is believed, will be at the forefront of such a phenomenon. This book acknowledges the role of agglomeration externalities as the cornerstone of urban public policy in India.
Arguing that hypotheses of over-urbanization and urban bias theory—which articulated a negative view of urbanization—are based on fragile theoretical as well as empirical foundations, this book calls for proactive public policy to harness planned urbanization as resource. India requires agglomeration-augmenting, congestion-mitigating, and resource-generating cities as engines of economic growth, including rural development.
The book provides a large number of practical examples from India and abroad to enable policy-makers undertake reforms in urban and regional planning, financing, and governance to meet the challenges of urbanization in India. It combines theory and practice to draw lessons for an urban agenda for India and recognizes the central role of cities in catalysing growth and generating public finance for economic development.
Chapter 3: Spatial Planning, Transportation, and Land Use*
Spatial Planning, Transportation, and Land Use*
Cities and Spatial Planning
Structural and geographic transformations accompany economic development. Economic activities cluster in cities and their regions in these processes. The co-location of firms, households, and institutions leads to agglomeration externalities, manifested in returns to scale, density, accessibility, and networking. Spatial planning, transportation, and land use, when integrated with economic drivers of cities augment agglomeration economies, mitigate congestion diseconomies, and facilitate resource mobilization for planned urban development. In particular, public transportation, by connecting to the “economic mass”, acts as a catalyst in regional economic development. However, master planning in India paid little attention to the economics of cities. This model treats city as a physical entity. Master plans did not address the phenomena ...