Tuesday, 2 April 2019

Climbing the Smart Cities’ Bandwagon

Rahul Gandhi, in a tweet, ‘Promises Direct Election of Mayors To Build "Smart Cities"’, reads the news headlines. The tweet from Rahul Gandhi said that good leaders were needed to build smart cities and hence suggestion that the Mayor, who is directly elected is answerable to the people who elect him/ her. This understanding of Rahul Gandhi is true. Urban policy makers and scholars have long argued, and among them passionate policy maker late Mr. K C Sivaramakrishnan (who was urban development ministry’s secretary at the centre), that there would be responsible urban governance if mayors were directly elected by the city’s residents.

Direct elections have to be accompanied by financial and legislative powers as well. In the current situation, the city governments are extremely poor, and do not have financial wherewithal to make any significant investments without the funds coming from the state or the central governments. Many cities, particularly the small and medium ones, have so poor financial situation that they are barely able to meet salary expenditures of meagre staff (in conditions of under-staffing of the municipal governments). Thus, direct elections of the city mayors have to be accompanied by enabling them with financial powers, to enhance their financial base as well as take decisions about expenditures. Currently, in most municipal bodies, the municipal commissioner, a representative of the state government, and through whom the state level ministers, in many cases the Chief Minister, decide the expenditure priorities at the city level and interfere in the city’s affairs. Cities do not have power to decide on which items expenditures should be made.

Another enabler for the mayor to work is the power to make legislation. For example, the city does not have power to pass its Master Plan, i.e. plans for physical development; the state government approves these plans. Or the city’s government does not have power to decide taxes; the state government decides as to what taxes and at which rates should be levied by the city government! Compare this with cities in China, where the city government decides taxes. At one point in time, Beijing city was levying 31 fees on an average, only 14 of which were legal, on McDonald restaurants over and above normal taxes (Wong 1998). Fiscal decentralisation and powers to the cities to collect taxes is one important aspect of high levels of infrastructure investments in the cities of China.

In India, virtually, city government does not have any powers. In that case, the direct election of Mayors would have limited impacts. A good example of such direct elections was in Simla wherein the Mayor and deputy-Mayor were directly elected in 2012 due to amendment in the state legislation. Rajasthan, Madhya Pradesh, Uttar Pradesh and Tamil Nadu too have direct elections of mayors. But, this would not mean better municipal governance or ‘smart municipal governance’.

The news item also states that “Ahead of the 2014 national election, the BJP had promised to build 100 smart cities. But while 98 cities have been selected by the government for the flagship project, and Rs. 500 crore allocated for each, critics say progress in the project has been tardy.”[1] Tardy it is; the implementation of ‘smart cities’ programme. According to some estimate, there has been offtake of only 17% of the stated allocations under the smart cities mission (SCM). Some expenditures under what is called a project of the SCM, are from other programmes such as Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

An aside on AMRUT. The name of the programme should have been Atal Mission for Urban Rejuvenation and Transformation. But, then it does not give us a neat ‘Indianised’ acronym.
Scholars have argued that ‘smart cities’ would require ‘smart governance’. Which is true. But, direct election of mayors is a first tiny step towards it. Smart governance would require many urban reforms, two of which have been mentioned above.

What is a ‘smart city’? Everything done in a city is called smart. Sabarmati riverfront development is smart; leave aside 10-12 thousand people displaced and lives of many ruined. Research is available on the disruptions in lives of those displaced. Metro projects is also called smart. We do not know the long term financial implications of the metro projects. Whether these will lead to reduction in private vehicular movement in the cities and thus resulting in reduction in air pollution is unknown. In fact, the results are going to be too far away in terms of improving local air quality. If there is any lesson on this issue to be learnt is to follow what Chinese cities have done and how many years after which the results with regards to reduction in emissions from transport could be seen.

Smart city as an idea, comes from envisioning of city using real-time data for city management systems. For example, if the data on sewerage systems is digitsed then its clogging at any point could be monitored and quickly responded to. There could be warning about traffic congestion to decide on time and route of travel. To some extent, google maps is helping in this. The city governments or their transport departments have little role to play. A smart city would have a real data base for levying property taxes. It could warn residents about inundated areas during heavy monsoons. And so on. But, to be able to put in place data-dense city management systems would require city level data. There is very little city level data today in Indian cities. In last few years, whatever data was available online has vanished.

Another idea of ‘smart city’ is environmentally, socially and economically sustainable cities. This idea, coming from the cities of developed countries, to a great extent from the experience of American cities, wherein, the cities have sprawled due to real estate and car-industry driven suburbanisation. Indian cities too are following this pattern of real estate industry driven suburbanisation. A developer/ builder buys land from farmer (s) and creates a large real estate development away from the city. The city is then forced to build roads and provide other trunk infrastructure. Which then leads to increase in land and property prices and the developer/ builder rakes in moolah, with no ingenuity of theirs but manipulation and political connections. The land prices increase so much that cheap lands for the housing of the urban poor have to be found on the city’s periphery. That is where many of the housing under the Prime Minister’s Awas Yojana (PMAY) – Urban, are located in many cities. The poor located in such colonies struggle to commute, access education and health, and other urban amenities, for a long period of time; just because, the sprawl creates speculative profits of the real estate developers/ builders. This is hardly ‘smart city’.

The smart cities in India, are hardly about data-intense urban management or about sustainable cities. Labels such as ‘smart’ are used with almost no content. Thus, everything is ‘smart’ in any programme of the city, as already mentioned above. Thus, picking garbage is called smart. Recycling garbage is smart. Building footpaths is smart and e-payment of property tax is smart. Since everything is smart, the term smart cities has lost its meaning. Term smart has become empty of its meaning. Because even ‘jumla’ is smart. In such a situation, direct election of mayors, although a good move, would yield very little in actually making cities smart. It would have meaning only if the term smart were to mean, equitable and sustainable cities.


References
Wong, Christine (1998): ‘Municipal Finance in China: The Development of Extra-Budgetary Revenues’, paper presented at the International Municipal Finance Forum organised by World Bank, Washington DC, April 15-16.



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