"Urbanization"

"Urbanization"
by P.T. Choudary, Chairman IDEAz

Key Concepts:

  • Rapid Urbanization of India is an ongoing and inevitable phenomenon.
  • Restricted Land availability in cities requires vertical growth and designated mixed use areas.
  • Urban Cities in India are unable to raise Funds & Revenues due to inability to sell or lease Land within under their limits, or Tax Vehicles or consumption or issue Bonds, as all this is done only by the State.
  • Rent control regulation does not allow for proper development and maintenance of Properties and such regulation is done not by the city but by the State.
  • Cities are controlled and bullied by Politicians dependent on Rural vote and hence cannot manage their affairs efficiently. Cities should be managed by their own Councils / Corporations.(See Smaller States - How Small - How Many?).

Key Metrics:

  • Across history all cities grew from Shanty Towns / Slums, and as the cities grow newer slums are looked at disdainfully by those who by then are better settled.
  • All that we see as culture was born from the early agglomerations of people in cities / towns then.
  • India’s Slum population is 12.5% of the Urban population and keeps growing as the City grows.
  • Urban population will soon hit 60% plus as in developed Countries. China is now at 50% up from 20% in 2000.
  • City Governments have become dependent on doles recovering only, - in Delhi 16%, Mumbai 24%, Hyderabad 48%, of the expenditure as Property Tax Revenues. In Punjab 2/3rds of the Properties are exempt from Tax. The average Mumbaite pays only about 1500 per year.
  • According to Richard Florida , urban theorist, 40 % of the largest megacities of the world are home to 18 % of the world’s population and produce 2/3rds of the global economic output and nearly 90% of the new patented inventions.

Introduction

People leave the seemingly more peaceful and cleaner environment of the village for the crowded and filthy slums of a city only because of the vastly greater opportunities and choices a city offers for employment, low paying service jobs in nearby high rent districts or in dirty recycling jobs within the slums. People rarely choose to go back to the villages except for functions / holidays. Dharavi in Mumbai, Asia’s largest slum, annually generates over US $1 bn. worth of business, some of it from exports.

The growth of the Urban population because of the ever increasing number of people moving from Rural to Urban areas is a worldwide phenomenon. However its magnitude and rate is far greater in the developing world than in the so called developed world. With the world’s population now at 7 billion and expected to be at least 9 billion by 2030 and the Urban population expected to increase to over 70%, ‘Urbanization’ and its effects on the existing Cities, is reason for alarm. Such a population shift could be catastrophic for Cities in India.

All the major Cities in the Country will soon face the collapse of all

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