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Integrated Governance for Large Cities
This was essential as urban centres are the growth
engines for the countyr’s as economy, already contributing over 50 per
cent of the country’s GDP. According to Mr M Ramachandran, Secretary,
Ministry of Urban Development, the task on hand was a significant one,
specially as the country today has the world second largest system of
urban settlements. “With over 5,161 towns and cities, we today face
challenges on all urban governance issues, beit drinking water, urban
transport, solid waste management or housing. What is
important that there should be commonality in all development efforts,
targeting all sections of society.” Integrated Governance: Accepting
that market forces were going to shape the urban structure of the
future, the speakers agreed that there was need to take governance in
urban centres to the local level, bringing the governors and those
governed onto a common platform.
“Today, the recommendations of
the 74th Amendment on giving more powers to urban local and bodies and
panchayats have yet to be implemented by many states. And, if people at
the local level are not involved in the development process, growth
will not be inclusive,” added Ramachandran. Our current model of
governance does not provide for any institutional involvement of
citizens or devolution of decision-making to the lowest unit, he added.
Agrees
Dr Jairaj Phatak, Municipal Commissioner, Municipal Commission of
Greater Mumbai, “today,MCGM presents one of the best and largest models
of urban governance in India. This has been possible as we have
implemented a number of steps that take governance to the people. While
the first phase of such changes involved only the inner administration
processes, in the second phase we have significantly increased the
citizen interface.” As a result, today, there are a large number of
services that have been available to Mumbaikars through the use of ICT
technologies. And, recognising the fact that not everyone is IT-savvy,
MCGM has also significantly simplified the procedures and norms to
ensure faster service delivery to all citizens.
This
improved delivery of government services to citizens, speakers pointed
out, was not limited to MCGM alone. Today,local bodies in areas as
apart as Jammu and Kanpur had realised the importance of IT in
government service delivery, becoming more citizen-centric in the
process. Emphasised Mubarak Singh, Commissioner, Jammu Municipal
Corporation, “today, permissions for building houses, complaints on
illegal constructions, and issue of births and death certificates are
all available online.
And, while enabling the citizens,
this has enabled us to check malpractices that were associated with
such services in the manual mode.” Concurs Prakash Rane, Managing
Director, ABM Knowledgeware, “it is not only technology that has
enabled easier availability of services to the citizens. Instead, it is
the blending of administrative reforms with ICT that led to this
paradigm shift in the mode of delivery of government services.”
However,
he conceded that we have just opened the doors to more citizen
interface in governance, with the major challenge being in
capacity-building, both within government departments and among
citizens as also in overall awareness about such initiatives. Taking
the technology point a notch further, Niraj Prakash, General
Manager-Public Services, SAP, said that it was necessary that for
IT-enablement of governance, work on both the back-end and the
front-end takes place simultaneously.
“Also, the technology that
is adopted must be relevant to the needs of the services being offered
and by the people it is being offered. We should be able to integrate
such technology with other process being used by different department
and even upscale the services that are made available.”
Accepting
the role that ICT could play in improving governance, Mr Ramachandran
said that it was because of this that the Central Government was
considering issuing benchmarks for IT enablement of urban local bodies
like it has issued in the case of drinking water, solid waste
management, sewerage and drainage. More importantly, he pointed out
that the challenge before urban planners was how to improve and expande
the economic and social infrastructure of cities, ensure access to
basic services at affordable prices, including security of tenure in
land and housing, and strengthening municipal governments and their
functions.
“Balanced development matters not only for the sake
of social justice, but also for social cohesion and economic
development. Inequalities within cities have the potential to turn into
social protests and generate instability. It is, therefore, at this
level that such issues need to be addressed.”
Financial
Inclusion Taking on the issue of balanced development in the urban
areas, speakers in the special plenary on “Financial Inclusion for the
Urban Poor” were unanimous that today the urban poor were one segment
of society for which there were no directed policies or programmes. In
fact, they agreed that while the stringent ‘know-your-customer’ norms
had been eased for the rural poor, the urban poor continued to be
denied this facility. As
K J Udeshi, Chairperson, Banking Codes and Standards Board of India,
pointed out “the urban poor are today not the focus of any group, have
no links with the banking or the insurance sectors and, in fact, were
today one of the most excluded sections of society. Today, while anyone
can open an account in a post office, with just a photograph, the KYC
norms made it impossible for them to open bank accounts.”
A
major reason for such exclusion, the speakers noted, was because they
lacked the group identity that came naturally to the rural poor given
the small size of their habitations. “This prevented them from taking
advantage of the cluster approach or the self-help group approach to
access various financial services,” pointed out Sanjay Bhargava, Chief
Mentor at the Eko Group.
This was even though the urban poor
were located in areas where proximity to banks was not an issue, with
most major urban centres having more than one bank branch in a radius
of 5 km. What was needed here, the speakers emphasised, were measures
that enabled the urban poor to establish a link with the banking an
insurance sectors. Stressing that the insurance sector was ready to
extend coverage to the urban poor also, M Ramadoss, CMD, Oriental
Insurance Co Ltd, said that they were restrained in this regard by the
regulatory framework that governs the sector.
“Today, in case of
any insurance product, it is mandatory that the premium is paid in
advance for the policy to become effective. And, this is something that
is not possible for the urban poor to do.” Here, he stressed that, if a
suitable linkage developed between the urban poor and the banking
system, the banks could help the accountholder by financing the cost of
the premium.”
Making
social security an issue, the speakers stressed on the need to set up a
national body to cover the urban poor, who today were mainly in the
unorganised sector. “Such a body could be used to extend a large number
of financial products to the urban poor even as it covered their social
security needs. It would also enable banks to extend group-based
products to them,” added M Narendra of Bank of India.
Conceding
that the challenges faced by the banking sector in improving outreach
was the urban poor’s lack of collateral security, difficulty in
evaluating and monitoring cash flow cycles and human resources
constraints, the speakers agreed that there was the need for more
innovative services.
It is not that the poor are unbankable,
what is needed are innovative products that meet their immediate needs,
they pointed out. One reason why this was happening was because of the
stereotype that the banking system had come to represent.
Today,
technology is yet to be seen as a facilitator with most banks
continuing to rely on systems of accounting that are archaic in nature.
“If technology regulations are made permissive, the cost of
transactions in case of low-value urban accounts would come down
substantially, enabling access to various financial services by a
greater number of people,” pointed out Mahesh Jain.
“It is not
that the urban poor today need financial services that are very
different from those being used by the affluent sections, be it
savings, loans or remittances, what they needed was primarily access to
these services without the long-winding procedural overhangs that they
carry,” noted S K Kale of NABARD. Today, a vegetable vendor is ready to
pay atrocious rates of interest just because of the easy access and
simple rules that such loans come with. Banks and insurance companies
have to innovate to facilitate greater financial inclusion, he added.
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