URBAN GOVERNANCE IN INDIA

Challenges and Responses:

A Framework for Reforms

Planning Commission
January 25, 2007
 Outline

•The Urban Context

•Views of City Government - different perspectives

•The Reality of Urban Governance

•Frequently Suggested Solutions

•Framework for Urban Governance

•Specific Action Agendas

•External Factors/ Developments to consider

•Benefits of the Framework

•Taking it forward
 The Urban Context

•Economic growth closely linked to urbanisation

•North America/ Europe were 50% in 1940s, 80% now

•Cities the gateways to globalisation

•80% of all FDI into China in 1990 went to top 20 cities

•Urbanisation a complex process

•No controllable set of factors

•Policy makers reversing traditional bias

•Historical denial of urbanisation beginning to change
 Views of City Government
Special
Urban Poor Interest
Groups City
Bureaucrat
Urban
Middle State
Class Bureaucrat
Community
Based
Orgns ParaStatal
Agency

NGO TypeB
City
Politician

NGO TypeA
State
Politician

Infrast’ure
Players National
Politician
Multi/
Bilateral
Agencies Opinion
Business Leaders
Community Media
•Constant
Views of City Government
vulnerability
•Minimal authority
•Anchor of city
•High expectations
services
•HR challenges
•Want legal housing
•Too much political
•Forced often to seek Special interference
political patronage Urban Poor Interest
Groups City •Too many agencies
Bureaucrat •2-year tenure
Urban
Middle Class State
Bureaucrat

Community
Based Orgns ParaStatal
Agency

NGO TypeB
City
Politician

NGO TypeA
State
Politician

•Minimal understanding
Infrast’ure
of the system Investor National
•Made to feel political Politician
irrelevant
Multi/ •No authority to make
Bilateral decisions
•High level of agitation, Agencies Opinion
no avenues to engage Business Leaders •Complex system
•Poor often seen in
Community Media •Too much
adversarial terms interference from
•Low opinion of political higher political
representatives players
•Move on to next level
•Look out for myself
•Aggressive approach
Views of City Government
to procure rights for
•Too many changes
marginal communities
required
•Adversarial attitude
•Too many legacy
towards business and
institutions
development Special •No possibility of
Urban Poor Interest
Groups City dramatic change
Bureaucrat •Torn about
Urban
Middle Class State decentralisation
Bureaucrat

Community
Based Orgns ParaStatal
Agency

NGO TypeB
City
Politician

NGO TypeA
State
Politician

Infrast’ure
Investor National
•Demands for Politician
infrastructure Multi/
Bilateral
•“End justifies Agencies Opinion •Frustrated by urban
the means” Business Leaders
management
Community Media
•Less patience •Decentralisation only
for long-term to my level
reform •Opportunities for
strengthening base
•Mixed knowledge of
Views of City Government
•Issue-based advocacy
urban issues
(environment/ heritage/
•Difficulties in
disabled etc.)
maintaining grassroot
•Often removed from
energies
core reform discussions
•Challenges to Special
•Mixed approach to
network, scale, Urban Poor Interest
Groups City other stakeholders
sustain Bureaucrat
Urban
Middle Class State
Bureaucrat

Community
Based Orgns ParaStatal
Agency

NGO TypeB
City
Politician

NGO TypeA
State
Politician

Infrast’ure
Players National
Politician
Multi/
Bilateral
•Focus on service Agencies Opinion
Leaders •Mixed knowledge of
options and Business
Community Media
pricing urban challenges
•Partial ability to •Focus on visible
influence reforms changes e.g. “keep my
•Weak grassroot/ street clean”
public support •Incomplete solutions for
change
 Views of City Government
•Fuzzy accountability to
•Reform-oriented at city government and
the expense of being citizens
marginalised •Relief to have freedom
•Collaborative attitude -“Let me run” attitude
causes confusion Special
•City governments do
Interest
•Frustrated at pace of Urban Poor
Groups City not have expertise to
change Bureaucrat
manage services
Urban
Middle Class State
Bureaucrat

Community
Based Orgns ParaStatal
Agency

NGO TypeB
City
Politician

NGO TypeA
State
Politician

Infrast’ure
Players National
Politician
Multi/
Bilateral
Agencies Opinion
•Project-based Business Leaders •Little opportunity to bring
approach Community Media real change
•Increasing •Frustrated at people’s
recogniition of expectations
need for reforms •Watching and reporting •Personal interest in specific
the tamasha! projects
•Minimal impact on reforms
 The reality of Urban Governance

•Enormous Day-to-Day Challenges

•Solid waste management – thousands of tonnes/day
•Water supply
•Sanitation systems and treatment plants

•Multiplicity of agencies
•Ad-hoc measures of past left behind legacy problems
•Genuine technical skills issue with local government

•New ideas need new skills

•PPPs/ Outsourcing/JV Agreements use complex contracts
•Creation and monitoring of Service-Level Agreements difficult for local govt

•Rapid economic activity

•Urban growth running faster than solutions can catch up
•Very little reliable data being generated to track this
 The reality of Urban Governance

•Urban poverty issues

• Multiple factors: land rights/ permanent and seasonal migration/
beneficiary identification
•Multiple institutional jurisdictions (example: basic services with local
government; public distribution system/housing with state departments)

•Weak administrative systems

•Weak human resources with minimal training
•Poorly designed Cadre and Recruitment Rules
•Dysfunctional internal systems – finance, land records, personnel etc.

•Massive financial requirements

•Rs 28,000 crores/annum for the next 10 years for urban infrastructure
•Minimal support from centre/states

•Rural-urban issues
•Urban growth primarily at fringes
•Complex Governance and equity challenges
 Multiple factors impacting Urban Change
Many factors contribute to shaping vibrant cities*
No. Factor
1 Effective decentralisation of government functions

2 Efficient Financial Management Systems

3 Defining and monitoring Service Levels

4 Adequate provision of well-located low-income housing

5 Relevant and rapid infrastructure provisioning

6 Efficient collaboration between different agencies

7 Institutionalised Citizens' participation

8 Uniform demarcation of administrative jurisdictions

9 City planning recognising economic/environmental factors

10 GIS for Spatial Information Management

11 Guaranteed Land Title System

12 Effective Zoning. Land-Conversion and Enforcement Policies

13 Efficient Land Market Assessment process

14 Periodic regional economic mapping

15 Regularly updated and centralised Land Records System

* “White Paper on Sustainable Cities”, Swati Ramanathan

 Multiple factors impacting Urban Change
Factors have inter-dependencies among them:
No. Factor No. of No of
Dependents* Dependencies*
1 Effective decentralisation of government functions 7 4
2 Efficient Financial Management Systems 6 8
3 Defining and monitoring Service Levels 7 6
4 Adequate provision of well-located low-income housing 6 12
5 Relevant and rapid infrastructure provisioning 2 12
6 Efficient collaboration between different agencies 12 7
7 Institutionalised Citizens' participation 7 6
8 Uniform demarcation of administrative jurisdictions 8 2
9 City planning recognising economic/environmental factors 5 10
10 GIS for Spatial Information Management 9 1
11 Guaranteed Land Title System 6 3
12 Effective Zoning. Land-Conversion and Enforcement Policies 4 9
13 Efficient Land Market Assessment process 7 8
14 Periodic regional economic mapping 5 7
15 Regularly updated and centralised Land Records System 8 4
*: shows the degree of inter-dependence between factors
Need for a Comprehensive Framework for Reforms
•Many inter-dependent factors
•Difficult to un-bundle reforms

•Reforms cannot be separated from institutions

•Recognition of the process of change

•High price to pay for incomplete/insufficient reforms

•Slower national economic growth
•Poorer quality of life for citizens

•Multiple approaches to change

•“This is how change happens”
•“Can we be more efficient in how we manage this?”

•Purpose of a Comprehensive Framework

•Pull all reform ideas together
•Suggest Action-Steps to move forward
 A Framework for Urban Governance
The entire Metropolitan Region as the footprint of governance
METROPOLITAN PLANNING COMMITTEE

REGIONAL METROPOLITAN
SPATIAL DATA TRANSPORT
CENTRE AUTHORITY
CONCERNED PARA-STATALS,
CONCERNED LOCAL
SPECIAL-PURPOSE VEHICLES,
GOVERNMENTS
STATE GOVT DEPARTMENTS

LAW & ORDER EDUCATION ALL PUBLIC TRANSPORT

RURAL URBAN AGENCIES
(BUS/RAIL/AIR/TAXI/
PWR DISTRIBN. REVENUE AUTO/RTO etc.)

TALUK /ZILLA URBAN LOCAL PUBLIC HLTH INDTL. DEVMT.

PANCHAYATS GOVERNMENTS
PLANNING & WOMEN &
GRAMA WARD ZONING CHILD W’FARE
PANCHAYATS COMMITTEES
ECONOMICS & WATER &
STATISTICS SANITATION
GRAM/WARD AREA SABHAS
SABHAS ENVIRONMENT URBAN POOR
& FORESTRY SERVICES
 Key Elements of the Framework

•Recognition of Regional Footprint beyond local govts

•Metropolitan Planning Committee, as per Article 243ZE of COI
•MPC spans rural and urban areas
•DPC substitutes for MPC in less urban regions

•Decentralisation to Local Governments

•Supported by appropriate accountability mechanisms
•Synchronisation of rural/ urban structures

•Establishment of co-ordination mechanisms

•Between para-statals and local governments
•A realistic alternative to complete absorption of agencies

•Ensure Accountability of Local Governments

•Formalised Community Participation
•Disclosure
 Specific Action Agendas
1 METROPOLITAN PLANNING COMMITTEE 10

REGIONAL METROPOLITAN
SPATIAL DATA 4 TRANSPORT 5
CENTRE AUTHORITY
X
3 CONCERNED PARA-STATALS,
CONCERNED LOCAL
SPECIAL-PURPOSE VEHICLES,
GOVERNMENTS
STATE GOVT DEPARTMENTS

2 LAW & ORDER EDUCATION ALL PUBLIC TRANSPORT

RURAL URBAN AGENCIES
(BUS/RAIL/AIR/TAXI/
PWR DISTRIBN. 9 REVENUE 7 AUTO/RTO etc.)

TALUK /ZILLA URBAN LOCAL 6 PUBLIC HLTH INDTL. DEVMT.

PANCHAYATS GOVERNMENTS
PLANNING & WOMEN &
GRAMA WARD ZONING CHILD W’FARE
PANCHAYATS COMMITTEES
ECONOMICS & WATER & 9
STATISTICS SANITATION
GRAM/WARD AREA SABHAS
SABHAS ENVIRONMENT URBAN POOR 8 X
& FORESTRY SERVICES 3
ALL RELEVANT
REGULATORY
2 AUTHORITIES 9
 Specific Action Agendas

1 •Permanent MPC, with coordination powers

•Constitution with Elected Representatives and Experts
•Master Planning Procedures and Technical Groups

2 •Completely revamped Municipality Law

•Direct Election to Mayor
•3-tier structure of Municipality/ Ward Committee/Area Sabha
•Formal Citizen Participation in Municipal affairs
•Mandatory quarterly disclosure of performance

3 •Co-ordination mechanisms on all Municipal Services as

per Schedule XII (and Schedule XI)
•Alignment of Jurisdictions based on Ward Boundaries
•Joint Budgeting/ Reporting cycles
 Specific Action Agendas

4 •Establishment of Spatial Data Centre

•Real-time GIS for planning and coordination across agencies

5 •Establishment of Integrated Transport Authority

•Planning and coordination across all Public Transport Agencies

6 •Implementing Muncipal Reforms at City-level

•Financial Reforms in Budgeting, Accounting, MIS
•HR and Capacity Building

7 •Urban Land Reforms

•Simplified Land Records Management
•Guaranteed Land Title
 Specific Action Agendas

8
•Integrated Services for the Urban Poor
•Provision of Low-Income Housing
•Other Urban Poor Programmes

9 •Defining and ensuring service outcomes

•Establish qualitative and quantitative benchmarks
•Management and Monitoring Processes
•Equitable outcomes for the poor

10
•Development & Delivery of Comprehensive City Plans
•Regional Fooprint
•Involvement of multiple stakeholders
•Creation of appropriate infrastructure
•Rigorous enforcement – e.g. zoning/land-use
•Regular mapping/monitoring of economic activities in the city
 External Factors/ Developments to Consider

•Announcement of JNNURM
•Substantial Financial Incentive for Urban Reforms
•Reforms include 2 3 6 9
•Additional Financial Support for Urban Poor Programmes 8

•Funding support for E-Governance Initiative

•Spatial Data Centre Establishment 4

•Major Disruptive Transport Initiatives in most cities

5
•Airports & Mass Transit Systems not as Integrated Transport
 Benefits of the Framework

•Provides a complete response to urban challenges

•Captures most solutions being aired

•Recognises regional and rural-urban issues

•Applies across a state, rather than a specific city

•Identifies the specific changes that are required

•Integrates all current national initiatives and trends

•Allows for prioritisation of reforms and timelines

Thank You