The State of Urbanisation: Yesterday, Today and Tomorrow

Executive Summary

This summary is adapted from the valedictory lecture delivered by Rakesh Mohan, President Emeritus and Distinguished Fellow, CSEP at the International Conference titled “Inclusive and Sustainable Urban Development in the Global South” on August 12, 2023. The conference was hosted by the Institute for Human Development, New Delhi.

The lecture emphasises how the process of urbanisation is associated with higher economic growth, increased productivity, and structural change in the development process resulting in the transfer of people from rural to urban areas and from agriculture to manufacturing and service sectors.

Large cities increase overall economic productivity, which leads to higher incomes, potentially greater social welfare, and better quality of life, mostly because of agglomeration economies. A great deal of research across the world suggests that productivity increases with city size. People benefit in many ways by being around other people; face-to-face contact is crucial for the welfare of both personal lives as well as economic activities.

What are some of the challenges facing urban development in the global South, and the policy implications of these trends and challenges? Mohan argues that city governments must be restructured urgently and made more powerful, competent, and accountable to create dynamic, vibrant, and liveable cities. He also brings attention to the need to increase the prestige of municipal corporations, particularly among young people, to encourage them to consider working in urban governments in exciting technical roles. They would help in shaping the future of cities, and this would also promote inclusive and sustainable urban development.

The lecture recommends devising policies to encourage research to study the phenomenon of industrialisation and urbanisation in India, for manufacturing to be located in towns and cities, though with precautions to reduce pollution and harmful emissions. Additionally, it calls for a unified system of governance empowered and competent enough to supply or facilitate essential urban services for their citizens.

Valedictory Address by Rakesh Mohan

Watch the full session

All content reflects the individual views of the speakers. The Centre for Social and Economic Progress (CSEP) does not hold an institutional view on any subject.