How Smart are Cities without Adequate Finances?: A Comparative Analysis in South Asia (SpringerBriefs in Economics)

This book compares urban finances in cities located in two different South Asian countries and assesses their fiscal health. It uses simulation to estimate the required augmentation in financial resources by the urban local bodies (ULBs) to reach a level of city development that is significantly better compared to existing levels. The book provides a systematic analysis of the fiscal health of two city corporations in Bangladesh, viz. Dhaka North City Corporation (DNCC) and Dhaka South City Corporation (DSCC); and one city corporation in the Indian state of West Bengal viz. Kolkata Municipal Corporation (KMC). The choice of city corporations was based on the shared history and the similarity of heritage, culture, topography and socio-economic conditions. Both DNCC and DSCC as well as the KMC have a high population density, which puts immense pressure on the service delivery provided by these corporations of basic services such as water supply, sanitation facilities, street lighting, drainage and sewerage and waste disposal. This is compounded by poor fiscal health of the ULBs. Using primary data collected through surveys and personal interviews and information obtained from official documents, the book estimates fiscal gaps of the ULBs and undertakes simple simulations to estimate potential revenue enhancements and expenditure requirements to deliver services at the internationally acceptable standards. It highlights under-exploited sources of revenue which can be better realized and also identifies untapped revenue sources that can be easily introduced, in order to significantly enhance city revenues. The book is an excellent resource not only for researchers studying this topic, but also for policy makers and urban planners, particularly those from developing countries having to deal with burgeoning cities with high migrant population density. Acknowledgements DSCC DNCC Contents About the Authors 1 Introduction 1.1 Setting the Context 1.2 Early Dhaka: A Brief History 1.3 Evolution of the Local Government Structure in Bangladesh 1.4 Local Government Finances in Bangladesh 1.5 Growth of Dhaka to a Primate City 1.6 Living Conditions in Dhaka City: Select Demographic, Social and Economic Indicators 1.7 A Brief Historical Account of Kolkata 1.8 Local Government in India 1.9 Local Government Finances in India 1.10 Declining Population in KMC: A Sharp Contrast to the DCC’s Ever Increasing Population 1.11 DNCC, DSCC and KMC: ULBs of Two Different Countries but many Similarities 1.12 Purpose of the Study References 2 Finances of Dhaka City Corporations and Kolkata Municipal Corporation 2.1 Revenue Receipts in Dhaka City Corporations from 2012–13 to 2018–19 2.2 Expenditures in the City Corporations in Dhaka 2.3 Annual Growth of Revenues and Expenditures in Dhaka 2.4 Revenue Receipts of Kolkata Municipal Corporation 2.5 Growth of Revenue Receipts in Kolkata Municipal Corporation 2.6 Revenue Expenditures in Kolkata Municipal Corporation 2.7 Dhaka and Kolkata: A Comparative Picture 2.7.1 Summary Statistics of Revenues and Expenditures in Dhaka and Kolkata 2.7.2 Shares of Different Components of Revenues: KMC, DNCC and DSCC 2.7.3 Service Delivery in Dhaka 2.7.4 Service Delivery in Kolkata References 3 Fiscal Health of Dhaka and Kolkata 3.1 Revenues versus Expenditures in DNCC and DSCC 3.2 Revenues versus Expenditures in KMC 3.3 Revenue-Expenditure Gaps: Comparing Dhaka and Kolkata 3.4 Estimating Own Revenue to Gross City Product (GCP) Ratios: DNCC and DSCC 3.4.1 Method of Estimation of Gross City Product: DNCC and DSCC 3.4.2 Simulations for Revenue Capacity: DNCC and DSCC 3.4.3 Implications for Revenue Augmentation: DNCC and DSCC 3.5 Estimating Gross City Product: KMC 3.5.1 Methodology for Estimating Gross City Product: KMC 3.5.2 Simulations for Revenue Capacity: KMC 3.5.3 Implications for Revenue Augmentation: KMC 3.6 Comparing Dhaka and Kolkata: Revenue Capacity and Service Delivery References 4 Conclusions and Recommendations Appendix A Appendix B Appendix C Bibliography