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DESIGNING SMART CITIES: CASE STUDY OF INDIA FOR SUSTAINABLE
COUNTRY COMPETITIVENESS THROUGH ENTREPRENEURSHIP
Dr. Broto Rauth Bhardwaj, Head, Entrepreneurship Cell, BVIMR, ND
Kamaljeet Kaur, Associate Professor, IITM, New Delhi
Aakriti Jain, PhD scholar, BVDU, Pune
Abstract
Purpose: Sustainable development was defined as the “development that meets the needs of the
present without compromising the ability of future generations to meet their own needs.” The
breadth of the definition was meant to capture the several dimensions of development that go
beyond the usual boundaries of economic growth in order to include both the tangible
and intangible necessities of life.
Methodology: The concept of sustainable competitiveness places more emphasis than the
concept of sustainable development does on the importance of productivity as a driver of
prosperity and long-term growth. Sustainable competitiveness can be defined the set of
institutions, policies, and factors that make a nation productive over the longer term while
ensuring social and environmental sustainability.
Findings: Social sustainability, in turn, is defined as the institutions, policies, and factors that
enable all members of society to experience the best possible health, participation, and security;
and that maximize their potential to contribute to and benefit from the economic prosperity of
the country in which they live. And we define environmental sustainability as the institutions,
policies, and factors that ensure an efficient management of resources to enable prosperity for
present and future generations. Economic sustainability can implies a of production that satisfies
present consumption levels without compromising future needs. The ‘sustainability’ that
‘economic sustainability’ seeks is the ‘sustainability’ of the economic system itself.
Keywords: sustainable development, environment, smart cities
Introduction
The notion of ‘economic sustainability’ was originated by Hicks. In his classic work Value and
Capital 1939; second edition 1946 , Hicks defined ‘income’ as ‘the amount one can consume
during a period and still be as well off at the end of the period’
Fundamental to the concept of sustainable competitiveness is the notion that, although
competitiveness can be equated with productivity sustainable competitiveness can be linked to a
broader concept that focuses on aspects that go beyond mere economic outcomes to include other
important elements that render societies sustainably prosperous by ensuring high-quality growth.
Another way of looking at the concept of sustainable competitiveness is that it aims to gauge not
only whether a country has the potential to grow over the medium and long term, but whether the
national level sustainability .
MODEL OF SUSTAINABLE DEVELOPMENT
LITERATURE REVIEW
Concept of Smart Cities
Across the world, the stride of migration from rural to urban areas is increasing. By 2050,
about 70 per cent of the population will be living in cities, and India is no exception. It will need
about 500 new cities to accommodate the influx.
A 'smart city' is an urban region that is highly advanced in terms of overall infrastructure,
sustainable real estate, communications and market viability. It is a city where information
technology is the principal infrastructure and the basis for providing essential services to
residents. There are many technological platforms involved, including but not limited to
automated sensor networks and data centres. Though this may sound futuristic, it is now likely to
become a reality as the ‘smart cities’ movement unfolds in India.
In a smart city, economic development and activity is sustainable and rationally
incremental by virtue of being based on success-oriented market drivers such as supply and
demand. They benefit everybody, including citizens, businesses, the government and the
environment.
A smart city (also smarter city) uses digital technologies or information and
communication technologies (ICT) to enhance quality and performance of urban services, to
reduce costs and resource consumption, and to engage more effectively and actively with its
citizens.
A Smart City is one that uses information and communications technology (ICT) to make
its critical infrastructure, components and utilities interactive and efficient. A city can be
considered “smart” when its investment in human and social capital and communications
infrastructure actively promotes sustainable economic development and a high quality of life,
with wise management of natural resources via participatory government. A smart, safe city is an
integrated solution to challenges faced by cities worldwide. Smarter, safer cities focus on three
areas of expertise. The first is leveraging information to make better decisions. Compact, with
fairly good ‘people density’, such cities have well-connected transport infrastructure with
optimal energy and water use. The second is anticipating and resolving problems proactively.
Advanced analytics can help city leaders discover patterns and trends in structured or
unstructured data efficiently and cost effectively. The third is coordinating resources to operate
efficiently. The complexity and interconnectedness of city systems can often mask inefficiencies
that can be easily addressed by sharing information and collaborating in real time.
Dirks and Keeling [19] consider a smart city as the organic integration of systems. The
interrelationship between a smart city’s core systems is taken into account to make the system of
systems smarter. No system operates in isolation. In this sense, Kanter and Litow [34] consider a
smarter city as an organic whole––a network and a linked system. While systems in industrial
cities were mostly skeleton and skin, postindustrial cities—smart cities—are like organisms that
develop an artificial nervous system, which enables them to behave in intelligently coordinated
ways [42]. The new intelligence of cities, then, resides in the increasingly effective combination
of digital telecommunication networks (the nerves), ubiquitously embedded intelligence (the
brains), sensors and tags (the sensory organs), and software (the knowledge and cognitive
competence).
Urban Governance & Economic Development
A Smart City should enable participatory governance with widespread access to ICT by
improving public engagement and institutional responsiveness. ‘Connected’ citizens provide
feedback, register grievances quicker, thereby improving public accountability and service
quality. By maintaining anonymity of users, ICT can eliminate entry barriers for all. It can help
increase transparency and reduce corruption with the help of real-time monitoring of systems and
resources and simplify governance by eliminating intermediaries. By conveniently establishing
municipality e-services such as e-registration or e-permit, it can enhance the convenience of
establishing urban businesses. Smart Cities can also provide government or municipal councils
with effective revenue collection mechanisms by improving and streamlining tax collection, with
e-filing systems that are already prevalent. Automation eases monitoring of revenue collections,
improving overall compliance and regulation. Registering local businesses and compiling land
records via ICT boosts tax and revenue collections by blocking avenues for graft. ICT can also
provide detailed, real-time property information on urban housing projects – including on
existing stock, upcoming projects, time series like price and rental indices and land transaction
details. By conducting regular surveys and ICT-based monitoring, it is possible to cross-check
and validate new encroachments, distinguish between authorized or illegal construction and lead
to faster, transparent approval processes for residential and commercial projects. A Smart City
governance framework can extend public & social services by providing mobile phone-based
health applications to improve access of the urban poor to municipal medical services. Access to
phone banking, registration or municipal permits can help reduce transport costs for the poor.
Information collection, management and sharing via ICT can help cities respond to crime and
other emergency situations efficiently, especially via online mapping and Geographic
Information System (GIS).
Empowering cities, citizens
A Smart City framework also enables three major outcomes: typology that helps cities
benchmark relevant content based on hierarchy of physical city components; identify stakeholder
roles to define who does what; and build a catalogue of city content that is easily accessible. A
Smart City can formulate citizen-centric solutions to help urban communities choose among
different combinations of municipal tariff and service levels, while providing community
members with transparency in costs. ICT-enabled call centres can provide reliable customer
service to urban communities. In Hyderabad, for example, the ‘e-SEVA’ application enables
digital monitoring and metering of water consumption for each individual household in a
transparent manner. A Smart City should also improve participatory planning by making way for
an in-depth, instant understanding of infrastructure and social service needs, creating
opportunities for cities to deploy resources effectively. Citizens’ feedback aids decision-making
and is vital in devising city-planning solutions, where leadership of neighborhoods and
occupational groups, chambers of commerce, youth and NGOs are closely involved in
consultations and recommendations. ICT can enable the creation of urban information databases
for planning and naming city streets and neighborhoods. All these can lead to an online,
paperless, knowledge-based government that is transparent and accountable at each level. The
development of Smart Cities requires a pragmatic approach toward technological development,
powered by ICT as an instrument for sustainable development in all its dimensions.
Despite proclaimed advantages and benefits of ICTs use in cities, their impact is still unclear .
Indeed, they can improve the quality of life for citizens, but they can also increase inequalities
and promote a digital divide .Thus, city managers should consider certain factors when
implementing ICT with regard to resource availability, capacity, institutional willingness and
also with regards to inequality, digital divide and changing culture and habits .
The origin
The concept of smart cities originated at the time when the entire world was facing one of the
worst economic crises. In 2008, IBM began work on a 'smarter cities' concept as part of its
Smarter Planet initiative. By the beginning of 2009, the concept had captivated the imagination
of various nations across the globe.
Countries like South Korea, UAE and China began to invest heavily into their research and
formation. Today, a number of excellent precedents exist that India can emulate, such as those in
Vienna, Aarhus, Amsterdam, Cairo, Lyon, Málaga, Malta, the Songdo International Business
District near Seoul, Verona etc.
CASE STUDY METHODOLOGY
The main objective of this study is to analyse the factors of sustainable development such as
Social, Economic and Environment and how these helps in building smart cities with the help of
APP model (Momaya, 1998). This includes assets-process-performance for enhancing
competitiveness.
CASE STUDY OF INDIA
Assets: The cities with ongoing or proposed smart cities include Kochi in Kerala, Ahmedabad in
Gujarat, Aurangabad in Maharashtra, Manesar in Delhi NCR, Khushkera in Rajasthan,
Krishnapatnam in Andhra Pradesh, Ponneri in Tamil Nadu and Tumkur in Karnataka. Many of
these cities will include special investment regions or special economic zones with modified
regulations and tax structures to make it attractive for foreign investment. This is essential
because much of the funding for these projects will have to come from private developers and
from abroad. Table1 shows the assets for making the country achieve sustainable
competitiveness.
Table1: Assets for making the country achieve sustainable competitiveness
Business, Infrastructure and Employment Asset Parameters for Sustainable
Entrepreneurship for Enhancing Country Competitiveness
BUSINESS INFRASTRUCTURE EMPLOYMENT
environment
BUSINESS growth and
development
ESTABLISHED
Industries
GROWTH Industries
EMERGING Industries
E-governance and
citizen
services
needs and availability
Smart energy
management
Smart water
management
Smart waste
management
Urban mobility
Smart communications
Smart environment
Smart spaces
Smart healthcare
Smart surveillance
Affordable housing
Entertainment,
Recreation: arts, sports,
growth and opportunity
Education facilities
Incubators, skill
development centres,
Specialised business
parks, hubs, etc
PROCESS OF SUSTAINABILITY
Social Sustainability Process
Sustainability is essentially an anthropocentric concept of inter- and intra generational
justice (Grunwald 2001), claiming the right to a dignified life to humans (Littig 2001). One core
element is its commitment to the social cohesion of societies, the aversion against social
exclusion and discrimination (including gender) and the need to foster citizens’ participation in
public affairs. Access to social processes, and access to the benefits of the modern society for
most of the population most of the time is one critical orientation, including the right to a
dignified standard of living for all citizens. Social sustainability comprises every citizen’s right
to actively participate in his/her society as an essential element. The precondition for this is the
access to the respective societies’ resources, including a variety of aspects: physical access
demands the existence of the appropriate technical, social and institutional infrastructure, legal
access calls for the right to make use of it, economic access means the affordability of using it,
educational access is supported by appropriate (life-long) learning opportunities, and
participatory access stresses the influence on the evolution of such infrastructures. Access is not
a demand restricted to individuals: social groups, including minorities will claim the same right,
resulting in an unavoidable overlap of social and institutional sustainability concerns.
In the most basic sense, ‘social sustainability’ implies a system of social organization that
alleviates poverty. In a more fundamental sense, however, ‘social sustainability’ establishes the
nexus between social conditions _such as poverty. And environmental decay _see Ruttan,
1991..This theory of social organization identifies a negative linkage between sustained
colonization, sustained poverty levels, and sustained natural resource exploitation. There is a
divergence of opinion in development theory whether ‘environmental sustainability’ is a
prerequisite of economic growth and poverty alleviation, or economic growth and poverty
alleviation are needed before ‘environmental sustainability’ can even be addressed.
There is some evidence that ‘environmental sustainability’ may be a necessary pre-
condition of sustained economic growth. For example, the United States has been expanding the
amount of its land area covered by trees since the 1920s and actively managing its soils since the
1930s. These measures have greatly improved America’s productivity in paper products and
foodstuffs since the Great Depression. On the other hand, some developing countries, for
example, Costa Rica, are jeopardizing their long-term socio-economic prospects by engaging in
rapacious resource depletion. Net losses of natural capital in these nations imperil social gains
from improvements in financial, technical and human capital _see Repetto, 1992. The latter
position was defended by the late Indian Prime Minister Indira Gandhi, on the grounds that very
poor countries must accept temporary environmental degradation in order to meet immediate
needs of food and shelter before they can pursue permanent economic and environmental
improvements. Her view was that developing countries simply cannot afford to put
environmental protection before economic development. In contrast to this view, the theory of
‘social sustainability’ posits that the alleviation of poverty need not entail environmental decline.
It aims to alleviate poverty within the existing resource base of a society.
Basic needs and equity in development have been the focus of the United Nations
development Programme ’s series of Human Development Reports. In addition to calculating
the Human Development Index, which offers a different measure of development success from
per capita GNP or GDP, the Human Development Reports focus each year on a different aspect
of social and economic development, such as democratic governance (1993), gender inequity
(1995), and poverty (1997). While the HDI does not explicitly include any environmental
measures, the 1994 report discussed the relationship between sustainability and equity, arguing
that ‘the concept of sustainable development raises the issue of whether present life-styles are
acceptable and whether there is any reason to pass them on to the next generation.
Because intergenerational equity must go hand in hand with intragenerational equity , a major
restructuring of the world’s income and consumption pattern s may be a necessary recondition
for any viable strategy of sustainable development’ (UNDP, 1994). The issue of environmental
sustainability is intertwined with that of poverty and inequity. The causative relationship runs
both ways – increased poverty and loss of rural livelihoods accelerates environmental
degradation as displaced people put greater pressure on forests, fisheries, and marginal
lands.
Lipton (1997) and Scherr (1997) emphasize the relationship between population growth,
social, conditions, and resource degradation. Reed (1997) notes that the social component of
sustainability includes issues of distributional equity, provision of social services, gender equity,
population stabilization, and political accountability and participation. The relationship of the
human development paradigm to sustainability is discussed by Haq (1995) and Chambers
(1992). Interrelationships between development, population growth, and environmental
sustainability are prominent in the exposition of human development concepts by Sen (2000).
PERFORMANCE
Environment and Sustainability Performance
In practical terms, the theory of ‘environmental sustainability’ suggests a planning process that
allows human society to ‘live within the limitations of the biophysical environment’ _Goodland,
1995.
Cities represent 75% of energy consumption and 80% of CO2 emissions on a global basis, and
represent the largest of any environmental policy challenge. Therefore, sustainability and the
environment are the most critical components in the functioning of any city.
There is a clear distinction between the two terms (i.e. sustainability and the environment) that
needs to be made. According to the Brundtland Commission (1999), sustainable development
refers to the environmental, economic and social aspects, whereas environmental aspects refer to
the physical and biological surroundings of a city.
The major attributes included under this dimension are the following:
city infrastructure and governance
energy and climate change
pollution and waste
social, economy and health
Multiple studies conducted in this field suggest that each of these attributes encompasses a series
of more granular categories and components, as described below.
Categories and components of the environment and sustainability dimension
City infrastructure and governance
Policy and management Infrastructure
• Integrated environmental management
• Strategy
• Municipal administration
• Effective conservation
• Urban planning
• Buildings and physical infrastructure
• Mobility, transportation and traffic
• Public safety
Energy and climate change
CO2emissions Energy
• CO2 from energy production
• Emissions per capita
• Energy performance
• Conservation
Pollution and waste
Waste Air Water Noise
• Waste
• Management
• Wastewater •
treatment
• Urban particulate
sand air quality
• Indoor air pollution
• Local ozone
• Regional ozone
• NOx and SOx
• Drinking water
• Water quality index
Water stress
• Water management
• Noise pollution
Economic performance and Sustainability of Enterprises
The economic dimension of the smart city argues a means to achieve urban economic growth.
Smart city approaches require robust financial planning and investments, thus need to be
informed by knowledge anchored in local context. This requires inclusive governance marked by
stakeholder engagement -- harmonizing public and private sector priorities and ensuring civil
society participation, including marginalized and vulnerable groups, in local public decision-
making processes. Financial models also need to be well designed, focused on cost-effective and
sustainable solutions and conducive to foreign investment. This aspect focuses on developing a
realistic and implementable financial plan that is crucial to the successful implementation of
planned city extensions.
In particular, the smart city is expected to “sustain the innovation economy and wealth of cities,
maintain employment and fight against poverty through employment generation” (Schaffers et
al. 2011).
Many academics associate smart cities with resilient economies and Richard Florida’s “creative
class” (2002). There is extensive literature on regional competitive advantage and what
characteristics, beyond technological capacity, make areas like Silicon Valley more resistant to
failure, including collective innovation and a culture of openness between firms and a region’s
institutions (Saxenian, 1994).
A positive correlation exists between urban wealth and the “presence of a creative class, the
quality of and dedicated attention to the urban environment, the level of education, multimodal
accessibility, and the use of ICTs for public administration” (Caragliu et al., 2011).
These elements are seen as the basis for a new strategic agenda for European cities and align
with the six-part conceptualization of the smart city—smart people, living (lifestyle), economy,
mobility, environment, and governance. There is much skepticism regarding these economic
growth possibilities, however, both from a practical and ideological point of view.
At a concrete level, Lee (2011) questions the economic feasibility of ICT-driven urban growth
due to institutional resistance to ICT, referring to the difficulty and cost of integrating existing
technologies into a single system as a barrier to the implementation of smart cities. The level of
government that will drive the knowledge-based economy is also in question because local
government often lacks the “policy tools and jurisdictional authority to effectively manage” their
new role (Coe et al., 2010). At the same time, the federal government is often too inflexible to
adapt to the dynamic economic development patterns generated by ICT (Coe et al., 2010).
The concentration of creative workers anticipated in the smart city could exacerbate existing
class divides and cater increasingly to its “smart” workers (Hollands, 2008). Hollands (2008)
sees the smart city as a neoconservative scheme that rewards entrepreneurialism at the expense
of progressive policies, pinpointing the emphasis on business-led development as a neoliberal
characteristic inherent to the smart city. Similarly, through his series on smart cities for Fast
Company, Lindsay (2010a; 2010b; 2010c; 2010d) deconstructs the rhetoric behind smart city
implementation in PlanIT Valley, Songdo, and several other “instant cities,” revealing that the
economic ambitions driving ICT companies may not seek to achieve urban growth as much as
corporate growth.
Many scholars express distrust at the focus on economic development, instead advocating for
more inclusive visions that recognize how new information networks can promote engagement
(Coe et al., 2001).
Economic Sustainability Issues for Managing Entrepreneurship
Coffs Harbour City Council has identified a number of economic issues that need addressing in
the OLC Settlement Strategy. These are itemized in the diagram (below), and are categorized
generally under the following headings:
_ Business;
_ Employment; and
_ Infrastructure.
The following section of the document explores research of the economic sustainability issues
identified by Council under these broad categories as being pertinent to this OLC Settlement
Strategy. Key economic considerations for the Coffs Harbour LGA are shown on the map (left)
Strategic Implementation and Direction and Conclusions
Creating Vision of Smarter Cities in India
According to IBM’s report from the IBM Institute for Business Value, "A Vision of Smarter
Cities", in the next 20 years, for every minute, on an average 30 Indians will migrate from rural
areas to smarter cities for their livelihood. So as per this prediction, India needs
(http://www.ibm.com/smarterplanet/in/en/sustainable_cities/ideas/) to create 500 new cities in
the forthcoming 20 years. In addition to this according to a study by consulting firm of Booz &
Company also an average of 30 people will move from rural areas to the city for every minute in
India, so the country is set to build 500 new cities over the next 20 years to house 700 million
more city dwellers by 2050, (www.thecitiesoftomorrow.com/news/india-smart-cities).
Establishing two smart cities in each of India's 28 states in the country under phase II of the
Jawaharlal Nehru National Urban Renewal Mission (JNNURM): that is the goal of the wide-
range in project introduced by the Indian government to inject smart technology into cities home
to between 500,000 and one million people an ambition that goes hand in hand with seven other
smartcity projects already underway. The smart cities project is not meant for metropolitan cities.
It is for smaller cities with half a million to one million population cities like Ujjain, and
Jabalpur, as officially cited. Bigger cities are already covered under other schemes.
According to 2011 census, about 32% of India’s population lives in urban areas. It is projected to
grow and reach 40% in a decade and 50% in about 30 years. The JNNURM was launched in
2005 by the Government of India to last for a period of seven years. Upgrading social and
economic infrastructure in cities, provision of basic services to urban poor, introducing reforms
to strengthen municipal governance are the principal strategies adopted in this JNNURM
mission. The aim of the Mission is to encourage reforms and fast-track planned development of
identified cities. The Mission also focuses on inclusive growth of cities with safe drinking water,
improved public transport, sustainable environment, and standardized service level. Community
participation in urban local bodies is also part of the mission. One of the basic reasons for
investments flocking in to the smaller cities is available properties and affordable prices.
Moreover, the special initiatives taken by the respective governments in providing the smaller
cities with infrastructural facilities and creation of SEZs, has played a vital role in promoting
these small towns into cities of the future. Keeping in view all the congenial factors necessary for
setting up corporate infrastructure, the investing companies ranging from pharmaceuticals to
financial institutions, automobiles to the IT & ITES (IT-Enabled Services) sectors; to the retail
and real estate sector are opting for the smaller cities transforming them into India's fastest
growing cities in a matter of few years.
1. Lavasa The dream of India’s first smart city is now inching closer to reality in Lavasa. It is a
private, planned city being built near Pune. Touted as India’s first smart city, My City
Technology– a joint venture set-up by Lavasa Corporation and Wipro – signed a definitive
agreement for Cisco who is the giant of networking technology to participate in its development.
According to The Wall Street Journal, among the digital experiences, Lavasa homes will offer
are touch panel automation, occupancy-based lighting, door sensors, motion sensors, beam
detectors and on-call transport services. The city is boasting of City by assets tracking
automatically through RFID tags, all residential & buildings are connecting by secure IP,
networking technologies to help centralize management operations, logistic supply centers
boasting of roads, airport, rail, dry dock and operation centre and smart transportation and JIT
delivery.
2. GIFT (Gujarat International Finance Tec-City) Designed as modern recreation of India's
architectural past, mirrored twins of the Gateway. It will house over a million people with
millions more commuting there daily. Well placed between the political and commercial capitals
of Gujarat. GIFT is a public-private partnership, it will India's first major super tall Central
Business District project that is designed to be the focal point of both the world's and India's
booming financial services market by providing companies with all those things Mumbai is still
developing: comprehensive infrastructure, power, virtualized office space, a well designed,
planned & expandable urban form.
3. Kochi Smart City Kochi is an IT Special Economic Zone under construction in Kochi, Kerala
(Framework Agreement. kerala.gov.in, 2007), (Agreement reached on Smart City project. The
hindu.com (2011-02). Smart City (Kochi) Infrastructure Pvt. Ltd. is a joint venture company
formed to develop the Kochi Smart City project. Government of Kerala (16% share), TECOM
Investments (84% share), a subsidiary of Dubai Holding are the main investors of the company.
“The four-storeyed building project of 22 lakh sq. ft. spread over 50 acres will be located on the
banks of Kadambraya at Edachira near Kakkanad. The project will be ready in two years
timeframe”. From this the NASSCOM forecast that the Indian Information Technology (IT)
industry will exceed $300 billion by 2020.
4. Bangalore Prof. em. Dr. techn. Jörg Schönharting said that Bangalore is going to be a Smarter
City through an Indo-German-Research Project mainly via Smart Mobility including (Noise,
Pollutants); (E-Mobility, Car Sharing); (Information, Traffic Management); (Walkability,
Distances, Modal Split); (High Occupation Rate); (Smart PT, Linkage with Private); (Safety,
Accessibility, Costs); (Energy Efficiency). The Government of Karnataka has inked an
agreement with networking solution provider Cisco for a pilot programme to develop the
roadmap for an intelligent, smart and sustainable Bangalore city. The pilot programme would
aim at developing replicable ICT solutions to help promote sustainable, intelligent urban
development practices in the city. The company also unveiled its blueprint for "Intelligent
Urbanization," a global initiative to help cities around the world use the network as the next
utility for integrated city management, better quality of life for citizens and economic
development. Bangalore's traffic police departments that are beginning to employ smart
technologies. They have 180 cameras around the city managed from a control room.
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m/smarterplanet/us/en/smarter_cities/overview/index.html
http://www.forrester.com/pimages/rws/reprints/document/82981/oid/1-LTEQ9N
27.http://euronet.uwe.ac.uk/www.sustainable-cities.org/indicators/ECI%20Final%20Report.pdf
28 .http://www.itu.int/en/ITU-T/focusgroups/ssc/Pages/default.aspx