Urban Infrastructure Financing and Delivery in India and China

This comparison is not restricted to Mumbai and Shanghai but also to Bangalore and Hangzhou, Delhi and Beijing and so on. The Chinese and Indian economies are expected to be the growth engines of the global economy. In this process cities are expected to play an important role, through their transformation into "World Class" cities, a term now doing rounds in the policy circles in Mumbai, to be achieved through massive infrastructure investments made in them. In China, this has been possible because of the decentralized administrative and fiscal system in China. In contrast, in India, the system of urban infrastructure is currently evolving and making a transition from a centralized to a decentralized system. This paper: (i) compares the Chinese and Indian financial systems to explain differences in the quantum of funds available in cities in both countries; (ii) looks at urban responsibility allocations in terms of institutions; and (iii) compares capital investments made by one city each in the two countries, in Beijing (China) and in Mumbai (India). Copyright Institute of World Economics and Politics, Chinese Academy of Social Sciences 2006.