Decentralization and urban development in India

As we approach 21st century Indian polity has been striving for establishing democratic goals through modernizing its political administrative institutions. With a change in development paradigms, the focus of development planning has shifted to participation in decision making and giving priorities to their local needs. “Decentralization has, not only an administrative value, but also a civic dimension, since it increases the opportunities for citizens to take interest in public affairs; it make them get accustomed to using freedom. And from the accumulation of these local, active, persnickety freedoms, is born the most efficient counterweight against the claims of the central government, even if it were supported by an impersonal, collective will” (UNDP, 1999) Decentralization can enhance political stability more responsive to people at lower levels, it generates opportunities for political activities at those levels who aspire to a role in government. The imperatives of decentralized planning in India have been repeatedly emphasized in the five year plan documents in our country. However, the progress in this direction remained slow and faltering despite frequent changes in the policy prescriptions.

With the rapid urbanization that is now expected in ensuing decades in India, it would be better to decentralize the instrument of infrastructure provision so that the agencies providing such infrastructure services are able to finance themselves and can respond flexibly to the changing demand of growing city. Urbanization is both a driver and a consequence of economic growth. Expansion of economic activities and industrialization lead to evolution of cities as growth centers. This urban center facilitate sustained economic growth in three major ways-through the real sector, by raising the productivity of output and employment,-through the financial sector, by mobilizing and channeling saving and allowing accumulation of wealth in the form of urban real estate,-and through fiscal flows, providing major share of governments tax revenue(world bank, 2000). It would be better if private agencies are given more opportunities to perform the function of financing, planning and management of urban infrastructure services, which is a daunting task given in the expected huge growth in urban population and improvement in the quality of urban infrastructure services especially in large cities, making the demand for urban infrastructure more heterogeneous than what has been witnessed in the past. Smaller cities have found it particularly difficult to cope with the increasing demands on services because of inadequate financial resources.