CAN INDUSTRIAL CORRIDORS BALANCE GROWTH WITH URBAN CHALLENGES?

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THE CONTEXT: In the past two decades, the Indian government has prioritized infrastructure-led development through various means, such as substantial investments in rail, road, and metro projects, Special Economic Zones (SEZ), National Investment Manufacturing Zones (NIMZ), and industrial parks across the country. A critical strategy has been the establishment of industrial corridors connecting central states to generate employment opportunities and boost economic growth. This marks the first time economic and urban planning are explicitly linked, where industrial corridors facilitate urbanization and drive economic development.

ISSUES:

• Governance and Institutional Coordination: There is significant fragmentation and a lack of coordination between various departments and institutions involved in urban and economic planning. This results in disjointed planning efforts that fail to address future developments’ needs adequately.
• Environmental and Resource Management: Development projects often overlook environmental impact and sustainability considerations. For instance, the water-scarce district of Tumakuru faces challenges in supporting large-scale industrial projects due to inadequate water resources.
• Capacity and Training of Local Institutions: Local institutions lack the capacity and training to manage the rapid urban transformation and the demands for infrastructure, housing, and resource utilization. This gap significantly burdens local authorities, often lacking financial and technical expertise.
• Economic and Urban Planning Disconnect: There is a disconnect between economic and industrial planning and urban planning practices. This separation leads to inadequate urban planning that does not account for the upcoming industrial developments, resulting in inefficiencies and missed opportunities for integrated growth.
• Impact on Local Communities and Livelihoods: Rapid industrialization and urbanization significantly affect local communities, including potential displacement, livelihood changes, and environmental degradation. These impacts are often not fully considered in the planning and implementation phases.
• Jurisdictional and Administrative Challenges: Establishing Special Purpose Vehicles (SPVs) and other new governing bodies can suspend local governing structures, creating confusion and inefficiencies in jurisdiction and responsibilities. This can hinder effective governance and the smooth implementation of projects.

THE WAY FORWARD:

• Integrated Urban and Economic Planning: Develop a comprehensive planning framework that integrates urban and economic development, ensuring that industrial and urban planning is not isolated. The Tokyo-Fukuoka Corridor in Japan successfully integrates urban and financial planning, creating a seamless development strategy that balances industrial growth with urban needs.
• Strengthening Local Governance and Institutional Capacities: Enhance the capacities of local governance institutions to manage rapid urban transitions and industrial growth effectively. The Ruhr Area in Germany underwent a significant transformation from an industrial region to a diversified economy. The success was partly due to strengthening local governance structures and establishing regional planning associations that coordinated development efforts across municipalities.
• Environmental Sustainability and Resource Management: To address the environmental challenges of industrial development, implement robust environmental sustainability practices and integrated water resource management. The Netherlands has implemented Integrated Water Resources Management (IWRM) to manage its water resources effectively, balancing industrial needs with ecological sustainability.
• Collaborative Governance Models: Establish collaborative governance models that involve multiple stakeholders, including state and local institutions, Special Purpose Vehicles (SPVs), and private sector partners. The UK’s Greater Manchester Combined Authority (GMCA) exemplifies a successful collaborative governance model. It brings together ten local authorities to coordinate economic development, transport, and housing strategies.
• Capacity Building and Training Programs: Implement capacity building and training programs for local government staff to effectively manage urban transformations and industrial growth. Singapore’s Urban Redevelopment Authority (URA) conducts regular training and capacity-building programs for its staff and other urban planning and development stakeholders.
• Inclusive and Participatory Planning Processes: Ensure inclusive and participatory planning processes that involve local communities and stakeholders in decision-making. The participatory planning approach used in Curitiba, Brazil, has been instrumental in its successful urban development. The city involves residents in planning, ensuring that development projects meet the community’s needs.

THE CONCLUSION:

Governments must effectively integrate urban and economic development across the states to enable efficient urban transitions. This requires coordinated efforts across multiple state and non-state actors, including state and local institutions, SPVs, and industrial stakeholders. Developing an urbanization policy is crucial for envisioning future urban settlements, allowing institutions to prepare accordingly.

UPSC PAST YEAR QUESTIONS:

Q.1 The rehabilitation of human settlements is a critical environmental impact that always attracts controversy while planning major projects. Discuss the measures suggested to mitigate this impact while proposing major developmental projects. 2016

Q.2 Define the concept of the carrying capacity of an ecosystem as relevant to the environment. Explain h2016.nderstanding this concept is vital while planning for the sustainable development of a region. 2019

Q.3 National urban transport policy emphasizes moving people instead of moving vehicles. Discuss critically the success of various government strategies in this regard. 2014

MAINS PRACTICE QUESTION:

Q.1 The Indian government has prioritized infrastructure-led development by establishing industrial corridors, such as the Chennai Bengaluru Industrial Corridor (CBIC). Discuss the impact of such corridors on urban and economic growth, particularly in the context of Karnataka. Highlight the challenges faced in planning and governance and suggest measures to address these issues for a smoother implementation of mega infrastructure projects.

SOURCE:

https://thewire.in/urban/can-industrial-corridors-balance-growth-with-urban-challenges