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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

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Strengthening Urban Management: IndiaAdministrative 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


Assumptions
Assumptions

  • 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


What are india s current urban problems
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


How can bank help address problems
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


What kind of typical state level activities required
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


What kind of typical local level activities required
What kind of typical local level activities required?

  • 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


What kinds of infrastructure services
What kinds of infrastructure services?

  • 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


What criteria to be used to determine who gets the funds
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


What s the process
What’s the Process?

  • 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


What s in it for whom
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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