The importance of urbanisation – a lesson for India

On July 30, 2010, in Uncategorized, by Sanjeev Sabhlok

In a 1996 term paper on urbanisation in India (here) I made "a reasonable projection… that about half a billion additional people will have to be accommodated in the towns and cities of India within the next 30 years." That was on the basis that India would follow policies of freedom.

It is a well known relationship in economics that the extent of urbanisation is correlated with the economic success of a nation, as evident from this chart:

 Source: Working paper of the Commonwealth Treasury, Australia.

India's urbanisation continues to remains extremely low, and very badly managed. Apart from ensuring the policies of freedom that I've advocated elsewhere, the way to do it properly is to seriously empower local decision making. For details see this article in Freedom First


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