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Coping with Change: The Need to Restructure Urban Governance and Finance in India

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  • Richard M. Bird

    ()
    (University of Toronto)

  • M. Govinda Rao

    (National Institute of Public Finance and Policy, New Delhi)

Abstract

Over 330 million people live in India’s 5,165 cities, with 35 cities having a population of over a million. Three (Mumbai, Delhi, and Kolkata) of the 10 largest metropolises in the world are in India. Over two-thirds of GDP originates in urban agglomerations in the country. However, urban governance and finance in India leave much to be desired in terms of providing services to the country’s burgeoning urban population and with respect to its flexibility in accommodating different needs and pressures and its lack of resiliency in adapting to shocks, whether natural or manmade. This paper draws on lessons from fiscal federalism theory and experiences of governance institutions and financing systems around the world to identify some key reforms needed to ensure more citizen participation and greater accountability in urban governance, and to augment and strengthen the capacity of Indian cities to deliver more adequate services and provide needed urban infrastructure.

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Bibliographic Info

Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper1203.

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Length: 33 pages
Date of creation: 13 Jan 2012
Date of revision:
Handle: RePEc:ays:ispwps:paper1203

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Keywords: India; metropolitan areas; governance; finance;

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  1. R.Kavita Rao, 2009. "Goods and Services Tax for India," Working Papers id:2055, eSocialSciences.
  2. Kornai, Janos, 1986. "The Soft Budget Constraint," Kyklos, Wiley Blackwell, vol. 39(1), pages 3-30.
  3. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  4. M.Govinda Rao & Simanti Bandyopadhyay, 2009. "Fiscal Health of Selected Indian Cities," Working Papers id:2058, eSocialSciences.
  5. Robert P. Inman & Daniel L. Rubinfeld, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 43-64, Fall.
  6. Weingast, Barry R., 2009. "Second generation fiscal federalism: The implications of fiscal incentives," Journal of Urban Economics, Elsevier, vol. 65(3), pages 279-293, May.
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