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CII CII 14th Quality Summit 14th Quality Summit Sustainable and Inclusive Sustainable and Inclusive Growth Through Quality and Competitiveness Growth Through Quality and Competitiveness Public Public ² Private ¶Partnerships·: Private ¶Partnerships·: Is the growing trend towards partnership Is the growing trend towards partnership the answer the answer to Urban Renewal and Conflicts of Inclusiveness to Urban Renewal and Conflicts of Inclusiveness

Ramesh_Ramanathan_Janaagraha

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8/6/2019 Ramesh_Ramanathan_Janaagraha

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CIICII

14th Quality Summit14th Quality SummitSustainable and InclusiveSustainable and Inclusive

Growth Through Quality and CompetitivenessGrowth Through Quality and Competitiveness

PublicPublic ²² Private ¶Partnerships·:Private ¶Partnerships·:Is the growing trend towards partnershipIs the growing trend towards partnership

the answerthe answerto Urban Renewal and Conflicts of Inclusivenessto Urban Renewal and Conflicts of Inclusiveness

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´The private sector's immense resources makeit an irresistible yet potentially overpowering'partner' for public initiatives.

How do corporations give something back totheir communities?

As communities and businesses struggle with

seemingly differing motivations and needs, weneed to consider ways they can work togetherto form partnerships for inclusive growth touplift the ¶Quality of Life· of the massesµ

OutlineOutline

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�Great deal of interest in the city�Corporates�NGOs, Communities�Various other actors: Rotary etc

�Sporadic one-off examples of involvement

�Adopting circles, schools, hospitals�Building segments of roads�Police stations, traffic management

�Frustration at lack of ´BIG PICTUREµ engagement�No opportunity to see the full picture

�Shut out of the decision-making process

�Desire to see both short-term and long-term issues�Acknowledgement that band-aids wont suffice�Willingness to put long-term platforms in place

Situation with City Stakeholders in most citiesSituation with City Stakeholders in most cities

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Views of City GovernmentViews of City Government

Urban

Middle

Class

Multi/

Bilateral

Agencies

NGO TypeA

Urban Poor City

Bureaucrat

State

Bureaucrat

ParaStatal

Agency

City

Politician

State

Politician

National

Politician

Media

Business

Community

Infrast·ure

Players

NGO TypeB

Community

Based

Orgns

Opinion

Leaders

Special

Interest

Groups

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Views of City GovernmentViews of City Government

Urban

Middle Class

Multi/

Bilateral

Agencies

NGO TypeA

Urban Poor City

Bureaucrat

State

Bureaucrat

ParaStatal

Agency

City

Politician

State

Politician

National

Politician

MediaBusiness

Community

Infrast·ure

Investor

NGO TypeB

Community

Based Orgns

Opinion

Leaders

Special

Interest

Groups

�Minimal understandingof the system�Made to feel politicalirrelevant�High level of agitation,no avenues to engage�Low opinion of politicalrepresentatives

�Constantvulnerability�Anchor of city

services�Want legal housing�Forced often to seekpolitical patronage

�Minimal authority�High expectations�HR challenges

�Too much politicalinterference�Too many agencies�2-year tenure

�No authority to makedecisions�Complex system�Too muchinterference fromhigher politicalplayers�Look out for myself

�Demands forinfrastructure�´End justifiesthe meansµ�Less patiencefor long-termreform

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�Enormous Day-to-Day Challenges�Solid waste management ² thousands of tonnes/day�Water supply�Sanitation systems and treatment plants

�Multiplicity of agencies�Ad-hoc measures of past left behind legacy problems�Genuine technical skills issue with local government

�New ideas need new skills�PPPs/ Outsourcing/JV Agreements use complex contracts�Creation and monitoring of Service-Level Agreements difficult for local govt

�Rapid economic activity�Urban growth running faster than solutions can catch up�Very little reliable data being generated to track this

The reality of Urban GovernanceThe reality of Urban Governance

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�Urban poverty issues� Multiple factors: land rights/ permanent and seasonal migration/beneficiary identification�Multiple institutional jurisdictions (example: basic services with localgovernment; public distribution system/housing with state departments)

�Weak administrative systems�Weak human resources with minimal training�Poorly designed Cadre and Recruitment Rules�Dysfunctional internal systems ² finance, land records, personnel etc.

�Massive financial requirements

�Rs 28,000 crores/annum for the next 10 years for urban infrastructure�Minimal support from centre/states

�Rural-urban issues�Urban growth primarily at fringes�Complex Governance and equity challenges

The reality of Urban GovernanceThe reality of Urban Governance

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Factors have inter-dependencies among them:

Urban Change requires multiple factors to be addressedUrban Change requires multiple factors to be addressed

*: shows the degree of inter-dependence between factors

No. Factor No. ofDependents*

No ofDependencies*

1 Effective decentralisation of government functions 7 4

2 Efficient Financial Management Systems 6 8

3 Defining and monitoring Service Levels 7 6

4Adequate provision of well-located low-income housing

6 12

5 Relevant and rapid infrastructure provisioning 2 12

6 Efficient collaboration between different agencies 12 7

7 Institutionalised Citizens' participation 7 6

8 Uniform demarcation of administrative jurisdictions 8 2

9 City planning recognising economic/environmental factors 5 10

10GIS for Spatial Information Management 9

111 Guaranteed Land Title System 6 3

12 Effective Zoning. Land-Conversion and Enforcement Policies 4 9

13 Efficient Land Market Assessment process 7 8

14 Periodic regional economic mapping 5 7

15 Regularly updated and centralised Land Records System 8 4

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�The Classic Definition�Private delivery of civic services

�Privatisation of transport/water/power etc�Building of specific projects with private sector involvement

�The Indian definition

�Bringing the private sector into public decision-making, e.g.BATF

�Larger discussions about POLITICS and GOVERNANCE�Who should really decide�Who are the key players in public decision-making�What is the role of business and markets

�How will the existing system ² political and administrative ² react�Why are Indians so uncomfortable with Politics

Defining Public Private ¶Partnerships·Defining Public Private ¶Partnerships·

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�Different stakeholders will want different things�Private sector - flyovers, airports, power etc

�Urban middle class ² mass transport, convenient retail outlets etc�Urban poor ² affordable housing, water supply, schooling, etc

�There are common requirements among the stakeholders

�Good roads don·t hurt anyone�Predictable power supply will benefit all�Quality water will improve everyone·s life

�There are scarce resources to meet all requirements�Per capita capital cost for urban infrastructure: Rs 50,000

�Total cost in India: $300 billion

�Managing these competing claims is the process of Politics�Urban middle-class and above need to get more engaged�India one of the few countries that demands nothing of citizens

Facing up to the IssueFacing up to the Issue

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�Govt needs the funds and the skills of the private sector�Innovative funding mechanisms can tap private funding

�Various governance processes can benefit from private skills

�Context must be to enable this process, rather than distort it�Private sector interests cannot ride roughshod over others

�There are no clear answers anywhere in the world�All countries have figured out their way by experimentation�Felix Rohayton ² New York·s Municipal Assistance Corporation

�One solution could be to bring city·s stakeholders together�A ´CITY CONNECTµ Platform�Can succeed if designed and implemented correctly

PublicPublic--PrivatePrivate--Partnerships can still workPartnerships can still work

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�Membership�All Industry forums: CII/ FKCCI/ BMA etc�Other city organisations: Rotary/ Concerned NGOs

�Opportunities for thematic engagement�Engagement with government on specific themes with anchors�´Quality in Public Governanceµ processes

�Periodic and public review mechanisms�Full progress report by all relevant agencies�Well-designed with meaningful information

�Sustainable long-term platform�Supported by Industry forums�Rotational leadership

How will CITY CONNECT functionHow will CITY CONNECT function

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�Does not distort the existing Political process

�Creates the platform for ´Inclusiveµ development

�Sensitises different actors to each others· perspectives

�Provides key inputs and value to Govts ² state & local

�Addresses short-term and long-term issues of the city

Benefits of CITY CONNECTBenefits of CITY CONNECT

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�Urban Management among most complex public mgmt challenges

�Democracy perceived as India·s strength

�Need to deepen our democratic processes at various levels

�PPP needs to be interpreted in this light

�City Connect could be a platform for inclusive change

Summary and ConclusionsSummary and Conclusions

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Thank YouThank You