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Getting cities to work: how growth could curb urban poverty in India

Urban poverty alleviation programmes tend to be narrowly focused, either on promoting small businesses, or improving the local environment. Studies of anti-poverty strategies in India's cities have rarely been linked to more general thinking about the development process. As a result, policymakers have failed to tackle the most commanding features of urban poverty in India: casual, irregular employment, the gender dimensions of poverty and the vulnerability of households to shocks and setbacks. All are outcomes of development processes. Poverty needs tackling in the medium term and at municipal level, primarily through stronger and more participatory city institutions which can boost economic development and basic social services.

Attempts to counter urban poverty usually take one of two tacks. Either they seek to tackle the problems of the urban environment, or they involve social development programmes focused on setting up small scale businesses. If these attempts fail, it is probably because they overlook the most important antidote to urban poverty throughout history, viz processes of social and economic development. An analytical study by a University of Birmingham research group highlights a missing link between the way the causes and experience of urban poverty are seen by policymakers, and a consequent 'short-termism' of outlook that balks the formulation of effective problem-solving responses.

In India, the key distinguishing features of urban poverty are:

  • casualised, irregular access to employment for some groups, usually determined by caste and area
  • over-abundance of women and children among the urban poor, with women facing even more irregular work conditions and lower wages than men
  • vulnerability to shocks, particularly ill-health and death of earners leading to debt and loss of assets
  • adverse environmental conditions, especially lack of clean water.

Lessons from countries in which economic development has gone hand-in-hand with improvements in living conditions indicate that employment-intensive growth with health and education for girls and boys are crucial. Urban governments in India need to view cities as producers, not just consumers, of resources, and to promote growth through creating an enabling environment and building political coalitions for growth. The resources needed to improve social services are currently inadequate, and new ways to generate revenue are needed. Issues for urban policymakers to ponder include:

  • The weakness of municipal institutions. Decentralisation, building political partnerships and responsible public financing may be tools for strengthening capacity.
  • Financial constraints on service provision. To counter this, tax revenues may be increased by allowing local administrations to benefit from economic growth, to reinvest in their area.
  • Shoddy infrastructure, a major problem for private business, particularly during periods of adjustment when spending on 'lumpy' projects like essential infrastructure is postponed.
  • Maintaining law and order. Reducing levels of violence and the lack of safety which currently limit private business, community self-help associations and 'social capital' initiatives, will enhance conditions for economic growth and better public service provision.

Source(s):
Indian Urban Poverty: Where are the Levers for its Effective Alleviation? IDS Bulletin 28 (2), 94-105, P. Amis (1997)

id21 Research Highlight: 1998-May-06

Further Information:
P. Amis
International Development Department (IDD)
University of Birmingham
Birmingham
B15 2TT
UK

Tel: +44 (0) 121 414 4987
Fax: +44(0) 121 414 4989/5032
Contact the contributor: dag@bham.ac.uk

International Development Department (IDD), UK

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