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 8: Cities and Public Policy: An Urban Agenda for India
Cities and Public Policy: An Urban Agenda for India
India's Pace of Urbanization
Structural transformation, urbanization, and clustering of economic activity in cities present a unique opportunity to India to enhance economic growth by harnessing the external economies of agglomeration. However, India's urbanization process has been rather slow.1 According to United Nations, the share of world's urban population in 2011 was 52.1 per cent. The figure for Asia for the same year was 45.0 per cent, while figures for Africa, Europe, Northern America, Latin America, and the Caribbean were 39.6, 72.9, 82.2, and 79.1 per cent respectively. With 31 per cent of population living in urban areas in 2011, India is less urbanized compared to many developing countries ...