India’s urban landscapes are poised on the edge of potentially transformative change. However, these changes hinge on overcoming key challenges, especially in terms of governance and infrastructure. This editorial analysis delves deep into ten actionable strategies that could empower Indian cities to effectively confront these challenges.
From financing and digital public finance management to innovative staffing solutions, these strategies seek to bolster city systems and bring about enduring improvements. These tools, some of which have already proven their efficacy in India, await the courage and innovation of leaders to employ them.
Rapid Urbanisation Challenges
- Despite the creation of metro rail networks in many cities, the rejuvenation of lakes and riverfronts, the empowerment of women through self-help groups, and the initiation of urban employment schemes, city dwellers await improved governance and service delivery.
- Even with increased government investment in solutions, problems continue to outpace these efforts, and new challenges emerge due to rapid urbanisation.
- India’s rapid urbanisation, with over 400 million citizens living in more than 4,900 cities, has surpassed what the Union or state governments can handle through their programmes.
Need For Robust City Systems And Institutions
- There’s a pressing need for robust city-level systems and institutions capable of delivering responsive governance that adapts to different contexts and communities in various states and districts.
- Municipalities should not merely implement state government schemes; they should govern cities as independent entities with a single point of political accountability.
Framework For Responsive And Adaptive Governance
- To establish responsive and adaptive governance in cities, a framework is required that includes the following city systems:
- Urban planning and design
- Urban capacities and resources
- Empowered and legitimate political representation
- Transparency, accountability, and citizen participation
- These tools of change can deliver adaptive governance in cities.
Ten Instruments Of Change
Spatial Development Plans
- Modern spatial planning laws should be the foundation for preparing, implementing, and enforcing spatial development plans.
- Our current master planning and town and country planning laws need an overhaul.
- Approximately 40% of state capitals lack active master plans.
- The National Urban Spatial Planning and Development (NUSPD) guidelines, established in 2014, can serve as a model.
Streets and Public Spaces
- Design standards for our streets and public spaces must be mandatory.
- These standards should provide guiding principles for the design, contracting, execution, and maintenance of roads, footpaths, and public utilities.
- Currently, no Indian state has such standardised guidelines.
- The Tender SURE model, first launched in Bengaluru and now expanding to 20 cities in five states, could be a model for others.
Constitutional Amendment Act
- Only a segment of the 74th Constitutional Amendment Act, which empowered urban local bodies, has been fully enforced by the states.
- This is due to flaws in its design.
- A new constitutional amendment is necessary.
- It should acknowledge the city as a unique governance and economic unit.
- It should also introduce a single point of political responsibility and overcome spatial and functional fragmentation in governance, service delivery, and accountability.
Metropolitan Governance
- India must adopt a metropolitan governance model for cities with populations over a million.
- The existing fragmentation across municipalities, gram panchayats, and city and state departments hampers regional challenges like air quality and water supply conservation.
- It also inhibits the advantages of agglomeration economies in these cities.
Modernising Municipal Acts and City Councils
- Our municipalIties and city councils require modernisation.
- These councils serve as our city parliaments.
- Regular elections to city councils and five-year mayoral terms are important.
- Councils need substantial powers and oversight over parastatals.
- City councils should have improved physical and digital infrastructure.
- Council proceedings should be live webcast.
- Leadership development programs for first-time councillors are crucial.
- A nationwide peer network of councillors is needed to empower mayors and councils.
Civic Technology In 21st-century Governance
- Civic technology is crucial in 21st-century governance.
- It enables real-time communication among citizens, councillors, and ward-level officials.
- It ensures radical transparency in hyperlocal budgets and civic works.
- Participatory budgeting can deepen democracy in cities and foster voice and agency at the grassroots.
- The JAGA mission by the Odisha government is a good example. 25% of municipal budgets have been allocated to over 3,000 urban poor communities. This has given rise to a fourth tier of governance – the Slum Dwellers’ Associations.
Municipal Taxation And Transfers
- Municipal taxation and transfers are necessary, especially for cities with a population of less than 500,000.
- These resources are needed to fulfil cities’ obligations to their citizens.
- A share of GST should be devolved to cities.
- Central finance commissions should allocate larger amounts to cities.
- State finance commissions should be functional.
- Property taxation and user charges need reform.
Municipal Borrowings
- Indian cities need to tap into the Rs 70 lakh crore of long-term capital in insurance and pension funds.
- To unlock this capital, trust between municipalities and markets is crucial. It should be based on timely and credible financial reports.
- The Ministry of Housing and Urban Affairs’ national municipal finance portal can help. The portal has published audited annual accounts of over 3,500 municipalities in India.
Digital Public Finance Management
- Despite the capital shortage, cities struggle to utilise eligible funds.
- Digital public finance management systems can facilitate timely transfers of grants and track the progress of projects.
- The government portal already manages over Rs 1 lakh crore of 15th Finance Commission grants digitally. This model can be scaled up for other schemes at the Union and state levels.
Tackling Staffing Shortages In Municipalities
- Municipalities face a serious shortage of skilled staff.
- Innovative models from within governments and the gig economy can help. Examples include passport seva kendras, income tax centralised processing centres, and Urban Company.
- Such models can increase revenues, cut costs, and improve service levels for citizens.
Way Forward
Indian cities face numerous challenges daily, indicating deeper issues with governance. Quick fixes won’t solve these problems; what’s needed are strong city systems. The ten tools for change could bring about significant improvements in India’s cities through reliable city systems. Many of these tools have already been used in India and are waiting for brave and creative leaders to implement them.
Source: Govt efforts to develop Indian cities are outpaced by new challenges. We need these 10 fixes, The Print (December 19, 2023)