Transcript Strengthening Urban Management: India Administrative Staff College of India – Hyderabad January 20-24, 2003 New Approach to World Bank Urban Projects In India: Performance.

Strengthening Urban Management: India
Administrative Staff College of India – Hyderabad
January 20-24, 2003
New Approach to World Bank Urban Projects
In India: Performance Driven-Incentive Based
The World Bank’s overarching goal is poverty reduction
Richard M. Beardmore
Senior Urban Specialist
World Bank
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Assumptions
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Economic growth in India is increasingly
dependent on towns and cities
More growth requires better functioning cities
India’s urban poverty, while generally on the
decline, is still significant: 80 million people
Appropriate urban development is one avenue for
urban poverty reduction
The urban poor require empowerment, security,
and opportunities in order to improve their
quality of life
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What are India’s current urban
problems?
Inadequate urban services
 Weak urban governance and management
 Lack of conducive infrastructure finance
systems
 Wrong incentives created by current
system of devolution of funds
 Ineffective land management
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How can Bank help address
problems?
Work with reform-minded States
 Work at State and Local level at the same
time
 At State level, assist with policy reform
 At local level, link access to Bank
resources to achievement of
implementation of policy reforms
 Target investments largely at low-income
communities
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What kind of typical State-level
activities required?
Legislative reform: repeal of ULCA,
reform RCA, rationalize stamp duties
 Financial management: establish ULB
borrowing framework
 Benchmarking system : municipal
performance measurement
 Streamline land management system
 Establish cadre of urban managers
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What kind of typical local level
activities required?
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Human resource development
Property tax reform
Expand computerized registration processes
throughout all ULBs
Develop citizen charters to increase
accountability to local population
Strengthen capacity of community groups to play
role in selection/management of services
Invest in priority infrastructure services
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What kinds of infrastructure
services?
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Area upgrading, incl water supply and sanitation
Access: roads, foot paths, bus stops
Storm water drainage
Solid waste management
Street lighting
Serviced areas for markets
Parks and green spaces
Off-site links to city wide network services
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What criteria to be used to
determine who gets the funds?
Tentatively…..
 Measure of severity of poverty within
jurisdiction
 Benchmarked level of property tax
collection
 Operating ratio less than 1
 Debt service less than 30%
 others
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What’s the Process?
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State and local level reforms introduced, giving
priority to URIF reforms
Consultative planning process for priority
services at community level proceeds in parallel
ULBs identify further administrative reforms and
critical city-wide infrastructure
All ULB proposals put in form of action plan for
review by State agencies
Approved items are funded for eligible ULBs
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What’s in it for whom?
Need for financial support to local level
from State reduced
 ULBs gain financial strength, increased
creditworthiness, more autonomy as a
result of policy reform
 Urban poor receive benefit of investments
at community level and greater role in
urban decision making
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