Wednesday, December 15, 2004

Lessons from Bangalore

Lessons from Bangalore
How To Get Infrastructure For Growth
The Economic Times Editorial



THE debate on Bangalore’s infrastructure has rapidly degenerated into a blame game between members of the present government and supporters of the previous SM Krishna regime. Underlying the facts and figures that are being bandied about is a rather depressing reality that does no credit to either side. The present government is clearly finding the task of developing Bangalore’s infrastructure a heavy burden. And if things are as bad as some claim they are today, there was clearly something wrong with the infrastructure policy of the earlier regime as well. Neither side, nor indeed most state governments, are willing to learn the larger lessons of Bangalore’s infrastructure crisis. This crisis can be traced to the project-centric approach of consecutive Karnataka governments, irrespective of party or factional affiliation. This approach identifies specific problems with grand projects. The pressure on air travel leads to a demand for a huge glamourous airport. The pressure on the city’s roads leads to passionate pleas for investment in a metro rail. And so on. Since these projects are chosen for their glamour rather than their economic viability, they need state support to get off the ground. The pressure on the state’s finances is so intense that the support is not enough to keep down the prices charged for this infrastructure. These higher costs directly or indirectly raise the costs of working in cities like Bangalore, leading to industry seeking other pastures and leaving politicians with no option but to point fingers at each other.

A more effective response to the crisis in Bangalore and other cities like it would be to also consider less glamourous measures to reduce the pressure on the infrastructure. More effective urban planning would dramatically reduce the distance between the residence and the workplace, thereby reducing the pressure on roads. A more cost-effective approach to infrastructure projects like airports will release scarce state resources for investment in other essential infrastructure like water supply. And a more cost-effective infrastructure would make the city more competitive globally. But first state governments must recognise that glamourous projects are not always the best means of achieving an effective infrastructure.

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