Monday, July 11, 2011

The rural-urban divide in governance

Where do India's political and administrative energies get spent? What is the ratio of distribution between rural and urban Indias?

The McKinsey Global Institute (pdf here) estimates that cities will provide the overwhelming share of economic growth (70%), new jobs (70%), and tax revenues (85%) by 2030. It may be therefore appropriate to illustrate this with the following Venn Diagram.

However, the prevailing political and therefore administrative paradigm in India suffers from an excessive rural-focus. Villages are the central focus of our attention. Another Venn Diagram represents the distribution of our administrative bandwidth.

The commonest justification for this rural focus is that India lives in its villages (nearly 70% of the population lives there) and rural growth should be the priority. However, there is growing evidence, here and here, that urbanization and urban growth are among the most potent rural economic growth and poverty reduction strategies.


sai prasad said...

This will change surely and certainly with population in cities increasing and with them getting more representation in Legislatures

Anonymous said...

Urbanization in India need to be more strategically effected in creation of more metros that are in even reach across the rural landscape. Agree that urbanization has tremendous scope in mitigating poverty and GDP gains; but the current trend is for a finite number of super metros, prompting heavy migration from far across. This means that the desirable rural-urban connection or exchange isn't very efficientor lacking in most cases.

Anonymous said...

it is indian to depend on foreign analysis/data and think too much about the system and feel bad. india lives in rural areas is an eternal saying and now is the time to strategize and see that the theme changes and lasts forever as"india thrives on rural areas".

Anil Nilugonda said...

The venn diagram is good, but adding another red circle ( with a small opening, conveying it can increase in size) would actually give a better picture of political and administrative energies spent.