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Economic Highlights
India’s Manufacturing Sector:INNOVATIVE & HIGH GROWTH IMPERATIVE,Dhurjati Mukherjee,10 February 20 |
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OPEN FORUM
New Delhi, 10 February 2006
India’s Manufacturing Sector
INNOVATIVE & HIGH GROWTH IMPERATIVE
By Dhurjati Mukherjee
A transformation in manufacturing
and trade has definitely swept the entire world. There have been demands, and
quite justifiably, that the developed world has not shown magnanimity in
sharing capital and technology to the extent necessary with their Third World counterparts. But even then there have been
significant improvements in manufacturing technology of the latter countries, obviously
through their own efforts.
One may mention that the kind of
goods exported by the developing countries in 1965 were in the form or primary
commodities (85 per cent) which have shifted to manufactured goods (79 per
cent) by 1998. In fact, a great deal of
new manufacturing in the world is now taking place in countries in which just a
few decades ago, there was practically no manufacturing.
The Indian manufacturing sector
has also made rapid strides since the last decade but more explicitly in the
past three-four years. In the wake of liberalization, the manufacturing sector
got its act together after initial jitters, presenting a face of confidence and
growth. In 2004-05, the sector grew at 8.9 per cent which is expected to be
around 10 per cent, in the current financial year.
At a recent meeting of the
Federation of Indian Chambers of Commerce and Industry (FICCI), Prime Minister
Manmohan Singh said manufacturing is critical for a country evolving from a
farm-based economy. “Manufacturing is
the sponge which absorbs people who need to move out of agriculture in pursuit
of higher incomes”, he observed.
However, the Prime Minister expressed concern that the share of
manufacturing in the national income had shown a marginal improvement from 15.8
per cent in 2001 to 17 per cent in 2003.
Though the sector has overcome
basic challenges like inefficiency, quality standards and high cost of
production in recent years, India
is still way behind in manufacturing with hardly 20 per cent of the gross domestic
product. A study in Vikalpa, of the Indian Institute of Management, Ahmedabad, some
time ago found very slow improvement in manufacturing parameters in most
companies such as productivity, quality, on-time delivery, manufacturing cycle
time, procurement lead times, raw materials inventory, average unit production
costs etc.
There is thus need for further
improvement in manufacturing through technological innovations and greater
emphasis on research and development (R&D) which the country with its large
scientific and technical manpower is quite capable of doing.
The new economy of information
technology and telecommunications can help improve deficiencies in
manufacturing through better monitoring, catching defects before they arise and
computerized operations. It can help
customized production at no additional cost, thus making products more unique
and attractive to the customer. It can enable speedier innovation by cutting
the time from getting an idea to getting it converted into a product in the
market.
Though in the heavy industrial
sector, manufacturing techniques have greatly improved, the picture in the
small scale and cottage industries sector is greatly different. Most of their
products do not match international standards, while the costs of production
are relatively high. As their products are not marketed on a centralized basis,
as is being done in China If manufacturing is handled effectively by
any centralized agency, both in India
and abroad, turnover would greatly increase.
This would give an impetus to the small scale sector to develop their
manufacturing technologies and become quality conscious and cost effective.
and many other countries, these industries suffer in various ways.
Infrastructure, especially
availability of power, has also come in the way of development of small scale
and cottage industries. The Chinese
example needs to be emulated in India,
if rural industrialization is to spread all over the country which, in turn,
would generate lot of employment (and self-employment). But for this to
crystallize, the Government has to extend some subsidies, so that the
manufacturing techniques of this sector improve and become cost effective and,
at the same time, maintain a level of quality.
China’s
dominance in world markets in labour-intensive products like garments, toys,
leather goods and so on explains its emphasis on quality, costs and marketing.
However, things are changing fast
and with research and trade institutions very active, new technologies may
become available easily and this will obviously have an impact on quality and
costs in the coming years. Though
R&D expenditure in the country is still very low at around 0.80 per cent of
turnover, this is steadily increasing.
Moreover, Indian scientists, engineers and technocrats are acknowledged
to be of a high standard and their endeavours in various fields should help
transform the Indian economy in a big way.
The recently-released draft
report on national strategy for manufacturing by the National Manufacturing
Competitiveness Council has recommended enhancement of government focus on
imperatives, creating conditions for growth of the sector; lowering cost of
manufacture; investing in innovation through emphasis on R&D; strengthening
education and training; adoption of
global best practices; promotion of small and medium industries; enabling
public sector manufacturing industries to emerge big and strong; infrastructure
development; creating a monitoring mechanism and measuring performance.
There is today an integration of
national economies into the international economy through trade, direct foreign
investment, flow of technology and flow of workers. Thus people, capital, technology products and
services are expected to flow freely into India. Efficiency and value engineering have already
been recognized as tools for global competitiveness
which the country will have to pursue more vigorously in the coming years.
In such a situation,
manufacturers have to change radically to compete successfully with foreign
entrants and develop ways and means to expand operations and enter new and
unexplored markets. As trade with the
neighbouring countries as also with ASEAN nations is destined to increase
rapidly in the coming years, there has to be sustained efforts to tap these markets
with a wide range of products. ---INFA
(Copyright,
India News and Feature Alliance)
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Climate Change Conference:INTERNATIONAL PRESSURE MAY YIELD RESULTS,by Dhurjati Mukherjee,2 February |
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OPEN FORUM
New Delhi, 2 February 2006
Climate Change Conference
INTERNATIONAL PRESSURE MAY YIELD RESULTS
By Dhurjati Mukherjee
The recent Climate Change
Conference has agreed to a road map to extend the Kyoto Protocol beyond 2012,
as Ministers of about 180 different countries agreed to launch new open-ended
world talks on ways to fight global warming, overcoming objections by the US
which had resisted taking part to broader discussions. It was agreed that this was one of the most
productive UN Climate Change Conferences ever.
In fact, the Montreal talks followed a
twin track, one pursuing negotiations to advance Kyoto and the other under the broader UN
Framework Convention on Climate Change (UNFCC).
The US,
the world’s largest emitter of greenhouse gases, and Australia
refused to ratify the Kyoto Protocol but are members of the parent treaty and Washington had initially
refused to support a broader dialogue, fearing it might be a binding commitment
for cutting emissions. Under the Kyoto Protocol about 40 industrialized nations
have to cut emissions by an average 5.2 per cent below 1990 levels by
2008-12. However, developing countries
such as China and India
have no targets under the Kyoto Protocol as rich industrial states have to take
the lead in cutting emissions after fuelling their economies with coal, oil and
gas since the days of the Industrial Revolution.
The agreement on a Kyoto renewal road map
would give members seven years to negotiate and ratify accords by the time the
first phase ends in 2010. Most countries
agree that deeper cuts will be needed to avoid climate chaos in the coming
decades. As it is well known that global warming has been a subject of great
concern with increasing build-up of gases from burning fossil fuels, power
plants, autos and factories.
Though there has been a sigh of
relief at the success of this Conference, it remains to be seen whether it
would be possible to bring about deeper cuts in emissions, as was felt
necessary by most countries as also by Jennifer Morgan, the climate change
expert at the WWF, to counter the devastating impacts of climate change. However,
a report released on the eve of the Montreal Conference said that developed
countries, taken as a group, have achieved “sizeable emission reductions”. Compared to the 1990 levels, overall
greenhouse gas emissions by the developed countries have dropped by 5.9 per
cent in 2003.
In spite of this finding, there
is evidence that global warming has been affecting countries around the world.
Some scientists believe the effects would be disastrous for tropical countries
like India
where floods and cyclones have intensified in recent years. There is lot of scientific debate not just on
the extent of climate change but its severity and the resultant impact on human
society.
The accumulation of greenhouse
gases raises average global temperature which could melt polar ice caps, adding
water to the sea, causing a rise in sea levels.
In some areas, warmer temperatures will also mean more rainfall but that
doesn’t translate into better crop productivity. While the impact will vary around the world,
the Intergovernmental Panel on Climate Change has estimated that the average
rise in the temperatures would be between 1.4 and 5.8 by the year 2100. However, a section of scientists feel that
global warming has already begun to affect crop yields in most parts of the
world and specially in the tropical countries.
Some parts of Europe may find the
Mediterranean-type climate favourable, but its bad news for agriculture elsewhere,
not to mention the ski resorts of the Alps. Traditional tourism hot spots such as Spain and Greece could find their summer
temperatures are simply too sizzling, tempting holiday-makers to vacation
further north. Extreme heat waves such
as the one that struck Western Europe in 2003
are set to increase in frequency in a warming world, causing wildfires, loss of
crops and a rise in summer deaths.
The severity of monsoon rains is
expected to increase in Asia which may mean more flooding for the inhabitants
of countries of Bangladesh
and India. The last two years are witness to such
increase. To the east, regions such as Indonesia and the Pacific Rim are expected to
receive less rain as EI Nino events grow more severe and divert warm waters,
which feed rain clouds, towards South America.
Africa
is more at risk than most from the dangers of encroaching desertification.
Although overall global rainfall is predicted to increase, drought-prone
regions look set to expand as rising temperatures strangle plant communities
that previously helped to retain water in the soil. This could have disastrous impacts on food
production for the continent. In
sub-Saharan Africa, increasing tropical
rainfall could exacerbate problem of malaria, already responsible for around a
deaths every year.
The Australian dry continent
stands to become even more so if EI Nino events become commonplace. Warming of ocean waters has already damaged
the Great Barrier Reef, the world’s largest
living structure. Since 1998, the Reef
has undergone two ‘bleaching’ events in which huge numbers of corals throw off
the coloured algae that live alongside them, as a result of stress caused by
rising temperatures.
Antarctica, which has potential
to break off the world’s climate, may be in danger as climatologists believe
that the break up of the West Antarctic ice sheet would dump huge amounts of
fresh water into the ocean and raise sea levels by as much as several metres
over the course of the century.
Thus the world wide scenario
appears to be quite disturbing. In India, also recent studies indicate
that global warming in the last few years has had wide ranging
consequences. A drop in wheat
production, for example, in 2003-04, was attributed to warm weather. A three-year research project supported by
the UK Government and the Indian Ministry of Environment and Forests has
revealed that climate change, in the not-too-distant future, could increase the
frequency of weather events, radically change the appearance of India’s
forests, reduce rice and wheat yields and create conditions conducive to
mosquito-transmitted diseases.
Keeping all this in mid, there is
need to view the issue of climate change not just a problem of emission but of
a cultural change of outlook – in education, in social discourse and in
techno-economics. There is every
likelihood that social, economic and technological changes will be more rapid
and will have greater impacts on human population. But unless these are integrated into climate
change strategies, they could act at cross purposes.
For example, tax reform and
fiscal incentives for long-term technological shifts have to be politically
buttressed if they are not to succumb to destruction by competitive global
markets. Moreover, it is well known that
climate change is a global problem that needs a global commitment through local
action. Thus it is necessary to think
and act both globally and locally with commitment and support of the political
machinery.
Above all, the solutions have to
be adaptive, evolutionary, learned and shared. As Rayner and Malone (1998)
aptly concluded: “To commit oneself, one’s family, firm, community or nation to
just one viewpoint is to gamble that it will turn out to be right. It is far
more likely that all will be partly right and all will be partly wrong.
Recognizing this, and stewarding
the land of intellectual pluralism necessary to maintain viewpoints and a rich
repertoire of policy strategies from which to choose, is what promoting social
resilience, sustainable development and climate change governance is all
about”. Thus there is hope that the
perception of climate change and the need for clean energy and sustainable
development would be accepted and implemented globally. ---INFA
(Copyright,
India News and Feature Alliance)
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Population Control:RURAL UPLIFT IMPERATIVE, Dhurjati Mukherjee, 24 January 2006 |
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OPEN FORUM
New Delhi, 24 January 2006
Population Control
RURAL UPLIFT IMPERATIVE
By Dhurjati Mukherjee
Stablizing population growth can
only be possible through rapid economic development and increase in the per
capita income of the people. The developed
countries of the world like the USA,
Germany, the UK, France
and Russia
all have a population growth ranging from 0.2 to one per cent. This indicates
that the developed regions would not face any significant population increase,
while the developing regions are likely to grow from 4.8 billion to 7.8 billion
by the year 2040. It is thus quite clear
that backwardness and illiteracy have been the principal reasons for accelerating
the pace of population growth.
In a world where high growth and competitiveness
has become the order of the day, it is imperative that the development process
has to be ushered in a big way. Scarcity
of resources made worse by rising population and governance problems have
retarded the development process in Third World
countries. Also, areas of regions within these countries, which are backward
and where education has not spread, the rise of population has been more acute.
India has 2.4 per cent of the
land mass of the world but it has around 17 per cent of the population and this
has been increasing at the rate of 1.9 per cent per annum, while that of the
world has been moving at 1.4 per cent per annum. It is estimated that there would be 10 billion
people in the world by 2050. According
to the UN Commission on Population and Development, India,
Pakistan, China, Indonesia
and Nigeria
are among five countries that account for almost half the annual growth of 100
million of the world’s population.
China has launched commendable and
drastic family planning programmes over the last decade. It is estimated that its population will
increase from the present 1250 million to approximately 1500 million in the
year 2025. On the other hand, India’s record has been far from satisfactory
and present reveal that the country’s population will cross that of China
in the first quarter of this century.
The reasons for India’s failure
to attain success in controlling population may be attributed to the following
factors: Backwardness, specially in the BIMARU States with special reference to
Bihar; inadequate awareness generation and spread of literacy at the grassroot
level in some of the remote areas of the country; lack of common civil code and
the government’s reluctance to impose this fearing backlash from the minority
community; high levels of gender inequality and poor initiative to make women
conscious and aware of the need for family planning; superstitious beliefs and lack
of initiative by the panchayats to spread and implement family planning
rigorously.
The vicious circle of poverty,
population explosion and environmental degradation has greatly affected India, as also many other Third
World countries. If the
population remains uncontrolled, it would be disastrous for the country’s
economy. The growth rate of the economy,
which has reached respectable levels in the last two years, may get diluted if
the population increase is not stabilized in the coming years.
It is encouraging to note that
social infrastructure development, that is, adequate emphasis on health and
education has already been initiated. There is an urgent need to inculcate
family planning education in a massive way, especially in Bihar,
Jharkhand, Madhya Pradesh and eastern Uttar Pradesh. Education is undoubtedly a powerful weapon to
combat increase in fertility rate, poverty and unemployment.
The panchayats need to be
involved and well-known personalities from all religious communities have to be
mobilized to lead this family planning campaign. It may be pertinent here to mention that the
National Planning Health Survey of 1998 found that women on an average ended up
producing 0.7 more children than they actually wanted because of various
factors, including non-availability of contraception services. In high population growth States this gap is
much higher.
India’s growth and economic
performance may lose its momentum if, at this juncture, family planning is not
practised by a major segment of the population in a big way. As is well known, natural resources are
getting depleted and it would be virtually impossible for the country to make
its presence felt in the international scene if the population growth cannot be
controlled.
The scarcity of water resources,
the per capita availability of land of the depleting fossil fuels is a world
wide trend and populous countries like India would have to be more
cautious in the coming years. Already since the green revolution, foodgrains
output growth has lost the race against population increase.
Somewhat neglect of the rural
sector and also of its impoverished population by the Indian planners may also
be attributed to the unplanned population growth. But presently the emphasis on
physical infrastructure development, especially in the areas of roads and
highways and better connectivity, and also some positive initiative sin the
power sector, may witness transformation of the rural scenario which could help
reduce population growth.
In an over-populous country like India
where the density of the population is around 320 per sq.km. (compared to
around 135 per sq. km of China),
all efforts at development will not achieve the desired results if the
population growth is not curbed.
Socio-economic advancement will be jeopardized if the growth rate is not
brought down to below 1.5 per cent per annum.
If the southern states of the country can achieve this, why not their
northern counterparts? Superstitious
beliefs and fundamentalist attitude to life should give way to a modern outlook
of life and living.
It has been observed in Kerala,
where the literacy rate is very high, that there has been a drastic decline in
the population growth. Also in most of the north-eastern States,
where women are professionally engaged and not at all backward, the fertility
rate is quite low. A shift in gear in contraceptive application, that is,
contraceptive research and its long-term research should be aimed at men rather
than women.
Control of population does not
rest entirely in the hands of the Government or even the non-Governmental
organizations (NGOs). Its success
depends on people’s participation in the family planning programme and getting
themselves educated. If education
spreads among women and the under-privileged sections, the fertility rate would
go down, as has normally been the experience in the Third
World.
Public-private partnerships need
to be effectively marshaled to achieve this through various awareness
generation measures and simultaneous uplifting the condition of the grassroot
masses. There has to be a realization
that adding more population in a world where resources are getting scarcer and
poverty is not much in decline (judged by numbers) would only create problems
for the developing nations in the not-so-foreseeable future. ---INFA
(Copyright,
India News and Feature Alliance)
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Citizens Need Stake in State:NATIONAL SECURITY AND ITS DANGERS. Col. P.K. Vasudeva (Rtd.),19 Jan 06 |
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OPEN FORUM
New Delhi, 19 January 2006
Citizens Need Stake in State
NATIONAL SECURITY AND ITS DANGERS
By Col. P.K. Vasudeva (Rtd.)
Terrorism is nothing new in India. The country has been fighting it since times
immemorial. We have been facing insurgency since 1960s in the North-East, since
1989 in Jammu and Kashmir and since mid-1980s in
Punjab. It was at its worst ebb after the 1984
riots. Delhi
has always been a vulnerable city. The assassination of Indira Gandhi in
October 1984, the transistor bombs and the random terrorist attacks that struck
the city through the 1980s led to the stepping up of security for the VIPs in
the Union Capital.
This heightened security left
most of the citizens out of the purview, who instead had to learn to put up
with the inconveniences that accompany “VIP security”. At the same time, such
lopsided security implied that it could never be foolproof. The series of bomb blasts in crowded market
places in the capital, followed months
after the blasts that struck some of the city’s cinema halls, and comes four
years after the attack on Parliament in December 2001. In recent years other Indian cities, such as
Mumbai, Kolkata, Ahmedabad and Jehanabad have been victim of terrorist strikes.
The recent serial blast in Delhi
that killed 61 innocent civilians and injured hundreds others has once again
focussed attention of the civil society in India with regard to terrorists and
killers who are prepared to snuff out innocent lives with impunity at the time
and place of their own choosing.
Prime Minister Manmohan Singh
conveyed in no uncertain terms to Pakistan’s
President, Parvez Musharraf at the SAARC meeting in Bangladesh
that Pakistan
has a hand in blasts which took scores of lives of young and old and was
concerned with such dastardly acts of terrorism. The UN has also sent a similar message albeit
somewhat indirectly to Pakistan
that any kind of terrorism from across the border must be curbed and the export
of terrorist activities across neighbours should be crushed.
While this has served to focus
attention on those responsible for the October 29 blasts, the fact remains that
as a class of activity, these incidents are bound to take place whenever those
diabolical intentions planned to do so, the glory inference being that the civil
society security agencies in the country are quite helpless in altogether
preventing such activities.
This shows complete failure of
intelligence on the part of intelligence agencies and also complacencies on the
part of civil and para-military forces in Delhi
who have not been able to keep a track of terrorist movements not only at one
place but at a series of places. How can
the Government instil confidence among civil society and ensure maintenance of
peace to every citizen of the country and justify the exorbitant expenditure on
the national security forces.
The crucial bit of action, which
the security agencies must take for prevention of such occurrences altogether,
which most of the people will argue insensibly, is quite an impossible task for
any society as densely populated and porous as India’s. Even the war against the civil terrorism of
all types must continue with the utmost resolve at the command of the nation’s
security agencies strength and continuous efforts are made to make it a hard
battle for the perpetrators of the violence.
The question that needs to be
asked is: Is it being done today? The
answer appears to be “No”, because if such an action was indeed taken by the
agencies concerned there will be little scope to tighten the security in and
around Delhi.
Only after the incident the
security forces start checking the ordinary citizens at the entry and exit
points of the crowded places and get slack after sometime. Would it not be a
trifle for the security agencies to allot more people and equipment for such
duties throughout the year, which would accomplish the task before the tragedy
is struck instead of waiting for some more lives to be lost?
The same sort of preventive
action should be taken to reduce the risk of terrorist attacks in crowded
bazaars, and shopping malls, not to speak of crowded public transport such as
buses and trains where the impact of such explosions could be maximum, because
of the closed physical nature of the environment.
All the major airports all over
the country have stringent entry-check stipulations throughout the year, which
have certainly made the job of the terrorists more difficult. Terrorists cannot be wiped out from the
Indian society, but certainly the pressure on them can be increased manifold to
make their existence difficult. Can we
expect the national security agencies which exist for the safety and welfare of
their countrymen to fulfil their task effectively by becoming more vigilant?
The step that is being mooted is
the establishment of a separate terrorist intelligence agency involving
different wings of the army, the police and the para-military forces that will
enable the pooling of information, technical and other resources. Without the active involvement of the citizen,
however, these moves will have little impact.
There is enough indication of the
state slipping into its usual complacency.
While the state agencies, especially the police personnel need to become
more accessible, citizen groups too can come together to ensure greater
vigilance whether it is through installation of closed circuit cameras or
security personnel engaged in monitoring the city’s public spaces.
It is time that terrorism and the
response to it evoked a reaction, not by bringing in laws that deny the
ordinary citizen his/her liberties, but also in truly empowering the
individual, helping in creation of a “citizen” who has stake in the state and
in the well- being of a fellow citizen.---INFA
(Copyright,
India News and Feature Alliance)
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Urban Renewal: NEW PROJECT TO TRANSFORM CITIES,Dhurjati Mukherjee, 12 January 2006 |
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OPEN FORUM
New Delhi, 12 January 2006
Urban Renewal
NEW PROJECT TO TRANSFORM CITIES
By Dhurjati Mukherjee
Cities have strongly emerged as
the prime engines of the Indian economy and generators of national wealth. It is evident that the future of India is
inescapably urban. As the National Commission of Urbanization states,
urbanization is the inevitable concomitant of economic change which is being
witnessed in the country. With a total urban population of over 300 million and
35 metropolitan cities and metropolises, it is time that the nation perforce
invests in the destined social and economic functions of cities and ensures
that cities deliver a quality of life that would enable them to become national
assets and engines of growth.
At such a juncture, the new
project of the Union Government, Jawaharlal Nehru Urban Renewal Mission which
seeks to improve the quality of life in 60 cities with a million-plus
population, including all State capitals, has undoubtedly been a major step
forward. The seven-year plan with a
budget of Rs. One lakh crore is expected to focus on infrastructure which would
mean anything from road repairs and new flyovers to basic services for the poor,
such as housing, drinking water supply and improved slum sanitation.
Though the endeavour appears to
be extremely ambitious and should greatly help develop cities, sincerity and
resources are vital for accomplishing this rather difficult task. This is
because most of the big cities have a large percentage of the population who live
in slums, squatter settlements, pavements and railway tracks and upgradation of
these colonies as also rehabilitation, wherever necessary, has become
imperative. Thus the Mission’s
main objective of creating the much-needed infrastructure and developing basic
services for the poor is expected to transform the cities and make them engines
of development.
However, to achieve these
objectives it is necessary to solicit the support of all stakeholders,
including the NGOs and CBOs who have been working with the poorer communities
in the city slums. Any development plan
would have to be finalized keeping into consideration the needs and demands of
the lower echelons of society. But this
is rarely done and without planning from below, the success of meeting the
requirements of the poorer sections can never be achieved. Thus, the strategy
to develop the cities is very crucial at this juncture and, as the Prime
Minister aptly pointed out at the launch of the Mission, it should evolve a people-centred
approach.
As is well known, there has been
a paradigm change in most Indian (if not Asian cities) cities during the course
of decade or so. There are five negative aspects of the changes. One, the globalization policies have resulted
in the establishment of corporate sector industries, increased tourism and a
rapid increase in the middle class. Consequently, there has been demand for
land for industrial, commercial and middle class residential purposes. As a
result, poor communities are being evicted from public land that they had
occupied in or near the city centres. The
increase in land prices has also adversely affected the lower middle income
groups. Two, due to increase of immigration and lack of low cost housing in the
cities, living conditions in slums and squatter settlements have deteriorated
due to over-crowding and lack of basic services. Three, increase in automobiles
has polluted the environment and caused increase in environment-related
diseases, affecting mainly the squatter settlers and the pavement dwellers.
Four, curtailment of Government
subsidies has directly affected the poorer sections that have to pay more for
education and health. Especially the deterioration of the health sector and
emergence of high-cost nursing homes has been a cause of serious concern for
the poor who cannot afford the cost.
Five, increase in real estate development has led to the strengthening
of the nexus between politicians, developers and the business community due to
which building laws and zoning regulations have become strict with a view to
beautify the city. This has affected the
poor communities, including pavement dwellers and street hawkers, who are being
evicted from public lad, in most cases without any rehabilitation.
Deficiencies in urban
infrastructure and basic amenities have acquired alarming proportions in the
developing countries, including India,
due to the declining trend in investment and financial support from the State
governments to the urban local bodies. The possibility of generating large funds
by these bodies from their resources being limited, the gap between demand and
supply has widened in recent years. It
was thus necessary that the Centre make available resources for the development
of cities which presently the Mission
would seek to do.
Municipalities are in an unsatisfactory
state on account of inability to properly tap and utilize proceeds from
property tax because inadequacies in the valuation system and inefficiencies in
the collection system, the Prime Minister rightly observed. He called for
improvements that would enable city-level institutions to become financially
viable and capable of generating resources.
Meanwhile, tax exemption for
municipal bonds and guidelines for their issuance, fiscal incentives for
private sector participation in urban infrastructure, permitting FDI inflows
into city hardware have heralded the possibility of ensuing changes. It ma be mentioned here that some states and
cities have taken the initiative in introducing accounting reforms, setting up state
level urban municipal funds and attempting private sector in civic services
though the overall national impact has been limited.
The current Mission for providing basic amenities should
encourage involvement of local bodies, private agencies, non-governmental
organizations and communities in a integrated manner to achieve the task. The government fund constitutes only a part
of the total resources that may be required for urban renewal and the remaining
is expected to come from institutional sources, private entrepreneurs and the
residents themselves.
Sustainable municipal efficiency
is thus called for. This needs capacity
not merely within the municipal ranks of elected representatives and officials
but also outside among civil society stakeholders. Thus, capacity building for good urban
governance is very much necessary. Such
capacity building, in any event, needs to be demand-based and should cover a
wide spectrum of stakeholders and should address itself to a sufficiently large
and widespread to achieve impact.
Urban governance needs serious
attention and necessary reforms. As the Prime Minister said: “cities have not
been enabled to look inward and build on their inherent capacities, both
financial and technical, and instead are still seen in many States as “wards”
of State governments. He wanted this to
change and informed, in this connection, that many cities like Mumbai, Bangalore and
Thirvananthapuram have come up with citizen’s initiative for urban renewal.
Thus, the renewal programme of
the populous and big Indian cities is very much needed at a time when
infrastructure upgradation to international standards has become a necessity.
The big question that the Mission
has to keep in mind is the fact that both the rich and the poor have to exist
peacefully in a city and the interests of both the groups have to be protected.
While the Government has been
giving prime land to the corporate sector at relatively low prices in the
metros of Mumbai, Delhi, Kolkata and Bangalore, there is also a
need to give land rights to the urban poor which unfortunately is not being
done. The city in Third World countries
like India
should have a balanced approach; both the powerful corporate entities along
with the poor communities should be able to live and their livelihood. ---INFA.
(Copyright,
India News and Feature Alliance)
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