Reforming urban governance is about making our city management systems better and more efficient. Cities are growing rapidly, and with that growth comes a host of challenges like traffic congestion, waste management, housing shortages, and pollution. To tackle these issues, we need modern, transparent, and accountable governance systems that can handle the complexities of urban life. Improving urban governance involves adopting new technologies, ensuring better coordination between various government agencies, and involving citizens in decision-making processes. The goal is to create cities that are not only livable and sustainable but also capable of providing a high quality of life for all residents.
Tags: GS – 2, Polity & Governance– Federalism – Transparency & Accountability– Urban Governance – Issues Relating to Development- Government Policies & Interventions
Context:
- In the past three decades, India has evolved from a stagnant economy to the third-largest globally, with urbanisation increasing significantly.
- By 2036, 600 million people (40% of the population) will reside in urban areas, contributing nearly 70% to GDP, up from 31% in 2011.
- Effective urban governance is crucial for managing infrastructure, ensuring the maintenance of essential systems like roads, water supply, and sanitation, and promoting sustainability.
- Despite progress, cities still grapple with challenges such as poor governance, inadequate infrastructure, and insufficient services.
What is Urban Governance?
- About :
- Urban governance refers to the systems, processes, and practices used to manage and develop cities.
- It involves decision-making frameworks and institutions that guide urban planning, service delivery, and overall urban administration.
- Significance:
- Quality of Life: Enhances the living standards of residents.
- Urban Resilience: Improves the city’s ability to withstand and recover from challenges.
- Sustainable Development: Promotes environmental sustainability and social equity.
- Key Elements:
- Stakeholders: Includes local governments, citizens, businesses, and non-governmental organisations (NGOs).
- Policies and Regulations: Covers laws and regulations related to land use, zoning, housing, transportation, and environmental management.
- Service Delivery: Manages essential services such as water supply, waste management, transportation, and public safety.
- Participatory Governance: Encourages citizen involvement in decision-making to ensure transparency and accountability.
- Sustainability: Aims to balance economic growth with social equity and environmental protection.
Present Mechanism of Urban Governance in India:
74th Constitutional Amendment Act, 1992:
- Introduction: The amendment inserted Part IX-A into the Constitution, establishing urban local bodies (ULBs) as institutions of local self-government.
- Articles Added: Introduced Articles 243P to 243ZG and a new Twelfth Schedule to the Constitution.
- Empowerment: Provided states with the authority to delegate 18 functions, including urban planning, land use regulation, water supply, and slum upgradation, to ULBs.
Types of Urban Local Bodies:
- Municipal Corporation: Manages large cities like Bangalore, Delhi, Mumbai, and Kolkata.
- Municipality: Operates in smaller cities, known by various names such as municipal council, municipal committee, or municipal board.
- Notified Area Committee: Established for rapidly developing towns or those lacking basic amenities.
- Town Area Committee: Found in smaller towns with limited authority.
- Cantonment Board: Manages civilian areas within cantonments.
- Township: Provides basic facilities to staff and workers in colonies near industrial plants.
- Port Trust: Manages ports in coastal areas.
- Special Purpose Agency: Handles specific functions or activities related to municipal corporations or municipalities.
Steps Taken to Improve Urban Governance:
Smart Cities Mission (SCM):
- Launch Year: 2015
- Objective: Transform 100 cities to enhance core infrastructure and create a clean and sustainable environment through “Smart Solutions.”
- Focus: Sustainable and inclusive development to improve citizens’ quality of life.
Allocation of Funds for Pollution Control:
- Date: December 2023
- Scope: Identified 131 million-plus/non-attainment cities (those exceeding National Ambient Air Quality Standards (NAAQS) for five consecutive years).
- Action: Prepared City Specific Clean Air Action Plans and allocated funds to improve air quality.
Pradhan Mantri Awas Yojana (PMAY):
- Objective: Housing for All by 2022
- Implementation: Ministry of Housing and Urban Affairs (MoHUA)
- Benefit: Provides home loan interest subsidies to make urban housing affordable for the poor.
Swachh Bharat Mission-Urban (SBM-U):
- Launch Year: 2014
- Ministry: Ministry of Housing and Urban Affairs
- Objective: Promote cleanliness, sanitation, and proper waste management in urban areas.
Urban Platform for Delivery of Online Governance (UPYOG):
- Purpose: National reference platform for delivering municipal services online.
- Principle: Utilises National Urban Innovation Stack principles.
AMRUT Scheme:
- Full Form: Atal Mission for Rejuvenation and Urban Transformation
- Launch Year: 2014
- Objective: Ensure every household has access to tap water and sewerage connections.
Challenges in Urban Governance:
Lack of Autonomy:
- Issue: Urban governance is part of the state list in the Indian Constitution, leading to varied administrative frameworks and limited autonomy for Urban Local Bodies (ULBs).
- Impact: Many city-level functions are managed by state-controlled parastatals, reducing local management control.
Draining Financial Resources:
- Issue: India has the world’s lowest property tax collection rate. An RBI survey revealed a significant decline in municipal corporation revenues with rising expenditures.
- Impact: Limited property tax coverage and inadequate taxation powers stress municipal finances.
Multiplicity of Agencies:
- Issue: Special-purpose agencies under state supervision complicate governance and financial management.
- Examples: Entities like the State Transport Corporation and Water Supply Department create financial and operational challenges for municipal bodies.
Unplanned Urbanisation:
- Issue: Rapid urban growth without proper planning leads to inadequate municipal services and infrastructure.
- Examples: Delhi’s 1,799 unauthorised colonies and issues with water pipeline projects highlight the strain on urban services.
Environment Concerns:
- Issue: High pollution levels and poor waste management affect urban quality of life.
- Statistics: Urban India generates about 42 million tons of municipal solid waste annually, with 72% coming from tier-I cities. Recent studies show a rise in PM2.5 levels in NCAP cities.
Low Public Participation:
- Issue: Despite high literacy rates, residents often show limited engagement with urban governance.
- Impact: Insufficient public involvement in waste management and pollution control exacerbates governance challenges.
Way Forward for Urban Governance:
The Three F’s for Urban Governance:
- Concept: Transfer of ‘Functions, Finances, and Functionaries’ to city governments.
- Example: The People’s Planning model in Kerala, where 40% of the State’s plan budget was allocated directly to local bodies, empowering them with significant responsibilities such as planning and execution.
Investing in Infrastructure:
- Requirement: According to the World Bank, India needs to invest approximately $55 billion (1.2% of GDP) annually in urban infrastructure.
- Current Financing: Central and state governments finance 72% of urban projects, with only 5% coming from commercial sources.
- Recommendation: Increase the role of private capital in funding urban infrastructure to ensure sustainable development.
Strengthening Municipal Revenue:
- Model: Scandinavian countries effectively manage urban functions by allocating a portion of income tax revenue to urban governments.
- Property Tax: Finance Commissions advocate for enhancing property tax revenues to improve municipal finances.
- Example: The 12th Finance Commission encouraged the use of Geographical Information System (GIS) and digitisation to enhance property tax administration.
Strategic Property Management:
- Challenge: Local bodies often hold underutilised properties.
- Solution: Monetise these properties through public-private partnerships (PPP) to develop commercial spaces, markets, or parking lots.
- Recommendation: The World Bank suggests using PPPs for financing and expertise in infrastructure projects. The 14th Finance Commission also recommended enabling municipalities to levy a vacant land tax.
Capacity Building for Urban Local Bodies (ULBs):
- Objective: Improve both institutional and human capacity within ULBs.
- Action: Focus on developing the skills required to execute bankable projects effectively and efficiently.
Municipal Bond and Social Stock Exchange (SSE):
- Municipal Bonds: Debt securities issued by state or local governments to finance capital expenditures, such as infrastructure projects.
- Social Stock Exchange (SSE): Platform for social enterprises to raise capital focusing on social impact alongside profit generation.
- Recommendation: Develop the municipal bond market and SSE to attract investments for local needs and generate revenue for local bodies.
Need for Behavioural Change:
- Approach: Treat cities as crucial centres of governance where democratic decentralisation and active people’s participation can drive transformation.
- Example: The Indore model of waste management, a decentralised and community-driven approach, demonstrates the potential for significant improvements through local engagement and innovation.
UPSC Civil Services Examination, Previous Year Question (PYQ)
Prelims:
Q:1 The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country provides for which of the following? (2011)
- Constitution of District Planning Committees.
- State Election Commissions to conduct all panchayat elections.
- Establishment of State Finance Commissions.
Select the correct answer using the codes given below:
- 1 only
- 1 and 2 only
- 2 and 3 only
- 1, 2 and 3
Ans: C
Mains:
Q:1 Do government’s schemes for up-lifting vulnerable and backward communities by protecting required social resources for them, lead to their exclusion in establishing businesses in urban economies? (2014)
Q:2 Discuss the recommendations of the 13th Finance Commission which have been a departure from the previous commissions for strengthening the local government finances. (2013)
Source: HT
FAQs
Q: What is urban governance?
- Answer: Urban governance refers to how cities and towns are managed and run. It involves the roles and responsibilities of local government bodies, how decisions are made, and how public services are delivered to residents.
Q: Why does urban governance need reform?
- Answer: Urban governance needs reform to address issues like inefficiency, lack of accountability, and inadequate services. Improved governance can lead to better management of resources, more effective delivery of services, and a higher quality of life for urban residents.
Q: What are some common problems in urban governance?
- Answer: Common problems include poor infrastructure, traffic congestion, pollution, insufficient public services like water supply and sanitation, and a lack of transparency in decision-making. These issues can affect the overall functioning and livability of cities.
Q: How can urban governance be reformed?
- Answer: Reforms can include decentralizing decision-making to give more power to local bodies, improving transparency and accountability, investing in smart city technologies, and engaging citizens in the governance process. Better planning and management of resources are also crucial.
Q: What benefits can come from reforming urban governance?
- Answer: Reforming urban governance can lead to more efficient and responsive city management, improved public services, reduced pollution, and better infrastructure. This can enhance the quality of life for residents, attract investment, and promote sustainable urban development.
To get free counseling/support on UPSC preparation from expert mentors please call 9773890604
- Join our Main Telegram Channel and access PYQs, Current Affairs and UPSC Guidance for free – Edukemy for IAS
- Learn Economy for free- Economy for UPSC
- Mains Answer Writing Practice-Mains Answer Writing
- For UPSC Prelims Resources, Click here
