urban economy
TRANSCRIPT
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URBAN ECONOMY
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IMPORTANCE OF URBAN CENTRES
Cities are the engines of economic growth.
Provide specialized services and enhances thequality of life.
Urbanization leads social-economic changes,economic development and make the processsustainable, efficient and equitable.
Contribution to GDP(from urban sector)increased from 29% in 1950-51 to 60 % in2001.
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CONTRIBUTION TO NATIONAL INCOME
Declined from 6.4 %to 6 % from 1999-2000 to2000-01,attributed by declined in growth rate inservice sector.
Source :Central Statistical Organization (Economic Survey 2000-2001),GOI
National Income (Net National Product)
685.9
806.6
941.9
1094
1224.8
1434.4
1590.3
685.9734.3
787.8852.1 890.7
9491011.2
0
200
400
600
800
1000
1200
1400
1600
1800
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00
R
s000'crore
Current Prices 1993-94
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ECONOMIC DEVELOPMENT ANDURBANISATION
Positive relationship between urbanization andeconomic development .
Lead by industrialization, commercialization
Increase in productivity, employment generationand improvement in infrastructure facilities.Employment rate has increased in private sector postreform period(5% increase).Negative in public sectors / less than 1%.
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Planning commission (Economic Survey 2000 01,GOI)
Growth Rates of Employment in Organised
Sectors
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
6
1991 1992 1993 1994 1995 1996 1997 1998 1999
Figin
%
Public Sector Private Sector Total Organised
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Employment by Industry
Public
Sector(%)
PrivateSector
(%)1990 1995 1999 1990 1999 1995
Agriculture ,Hunting etc. 5.49 5.39 5.15 8.76 8.94 8.71
Mining and Quarrying 9.66 10.16 9.26 0.99 1.03 0.87
Manufacturing 18.7 17.56 15.69 44.57 47.06 51.78
Electricity ,Gas & Water 8.97 9.35 9.62 0.04 0.04 0.41
Construction 11.34 11.64 11.07 68 0.53 0.71
Whole Sale & Retail Trade 1.5 1.62 1.63 2.19 3.08 3.23
Transport ,Storage &Communication 30.23 31.06 30.84 0.52 0.58 0.69
Finance ,Insurance ,Income,Real Estate,etc. 11.54 12.83 12.95 2.39 2.93 3.58
Communication ,Social &Personal Services 90.19 95.04 94.94 14.6 16.03 17.00
TOTAL 187.62194.6
6194.1
5 75.82 80.59 86.98
Source:Ministry of labour Economic Survey 2000-01,GOI.
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INFORMAL SECTOR EMPLOYMENT IN CITIES
49.5
28.5
46.5
61.4
53.8
65.5
0
10
20
30
40
50
60
70
Mum
bai
Kolka
ta
Ahmedab
abDe
lhi
Chennai
Banalore
Fig
in
Per
centage
Source:The State of the Worlds Cities 2001,UNCHS (Habitat)
Formal and Informal Sector Economy
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Formal and Informal Sector Economy
Formal sector economy pays high salaries butsustains smaller proportion of urban labourforce.
Informal sector has higher share of labour
force. Informal sectors mostly found in developing
countries. Informal sector is reliable even instagnant stage of economy.
Informal sector provides new employmentopportunities . Self help employment initiatives
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ECONOMIC DEVELOPMENT AND EMPLOYMENT
Share of Informal Sector to Total WorkforceCity Men (%) Women (%) Total (%)
1993 1998 1993 1998 1993 1998
Bangalore 22.5 25 80 75 32.2 34.2
Chennai - - - - 60.6 64.8
Guwahati 50 55 60 65 53 58Indore 60.4 69.1 74 86.9 63.7 72.7
Jaipur - - - - - -
Ludhiana 56.6 58.3 62.5 55. 9 59 58
Mumbai 68.3 70.8 61.2 67.1 67.5 70.3Mysore - - - - 31.1 34
Vijaywada 60 64.6 82 75.8 65.2 66
Patna - - - - - -
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The above data indicates informal sector in the city
workforce has increased ,except Ludhiana whichshows marginal decline.
Female employment ranges from 60% to 82%in 1993& 56 % to 87% in 1998
Employment opportuinities for males is also increasedin all towns from 25% to 65%.
Need to accelerate public support schemes to
promote informal sector activities to enhanceproductivity.
Provision for access to credit ,raw materials, markets,insurances and safetynets.
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Policy Initiatives
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Main Focus on decentralised,participatory anddemand driven approach.
Based upon 3-tier system started with 20
families Neighbourhood Groups (NHG),followed by 200 families NeighbourhoodCommittee (NHC) and culminating with 2000families to Community developmentSociety(CDS).
Mainly represented by poor women.
Encouraging local economic development bysupporting establishment of saving and credit
groups (Sewa Bank).
Policy Framework & Programme Initiatives
Self Help Groups
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Promoting Home Based Economic Activities:
Sustainable and Cost effective for small andmicro enterprises in urban and rural areas.
Development of Small and Micro Enterprises: Direct intervention to create employment
opportunities.(SJSRY ,SGSY,NRY,UBSP)
Focus on promoting on self employment through
micro enterprises development. Women get priority of access.
Cash subsidy is minor component and creditfacility is offered through nationalized bank.
Policy Framework & Programme Initiatives
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The need for involving people in developmentprocess is required for proper development.
Solid Waste management in urban area is goodexample in this field which includes contracted
NGOs and Community Based Organization(Rajkot,Bangalore).
Training and IEC (Information ,Education andCommunication) for human resource developmentfor educating and mobilizing the beneficiary groups.
Skilled based training for repairs and maintenance,groups of plumbing and sanitation, consumer
durables ,credit groups.
Public Private Partnerships To StimulateEmployment Opportunities
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PER CAPITA CITY IN CITIES
0
5000
10000
15000
20000
25000
30000
35000
40000
Bangolo
re
chennai
guwah
ati
Indare
JAIPUR
Ludhia
na
Mumbai
Mysore
Patn
a
Vijay
wad
a
GNP
Fig
in
No.
1993 1998
Source: India :Report on urban Indicators:GOI 2001
Ministry of Urban Development and Poverty Alleviation
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Productivity and Partnerships
Aiming at reduction of urban poverty Convergence of resources from stakeholder in
urban development .
Per capita product among all town has shown
increased during 1993-1998. Per capita City Product of all cities is higher than
GNP(All India).
Chennai is highest followed by Mumbai and
Bangalore. Gross National Product is almost double from
Rs 7902 to Rs15019 within 5 year.
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Percentage of unemployment has reduced. Decline in female employment, needs
priority.
Under DWACUA (Development of Womenand Children in Urban Areas) womensgroup have been organized for thrift andcredit to generate income and employmentopportunities .
Productivity and Partnerships
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Mains tools in accelerating the process ofurbanization and industrialization.
Preferred location based on requirementof markets mainly focus on peripheralareas of cities
These corridors also attract othereconomic activities.
Development of industrial corridors,industrial estates,SEZS.
Emergence of Transport Corridors
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Urban poverty has declined to 21% (NSSO 99-
2000) .
Poverty
Poverty in India
0
10
20
30
40
50
60
1973-74 197-78 1983 1987-89 1993-94 1999-2000
Figin%
India Rural Urban
Source: Planning Commission ,Economic Survey,2000-01,GOI
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Employment Generation-Construction Sector
Ranks 4th among 14 sectors in terms ofbackward linkages.
3rd - Total linkage with other sectors ofeconomy.
High income multiplier 1:5.
Huge employment generation potential(5
th
employment multiplier).
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Private Sector Participation
Haryana joint development model .
West Bengal Housing Board-AmbujasModel.
Shelter delivery :relatively small .
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