Resource information
Despite strong economic growth,
investment in basic urban infrastructure -- water supply,
wastewater removal and treatment, roads, and other
capital-intensive systems -- has failed to keep pace with
urban growth, leaving a critical urban infrastructure
deficit. At the same time, urban lands in these many
developing countries are among the most expensive in the
world. Much of this land is owned by public authorities.
Significant parts of it lie vacant, unused for public
service provision or inappropriate for conversion to
higher-valued economic activity. A composite public-sector
balance sheet for India's urban areas would show an
asset mix strong on public-sector landholdings but weak on
infrastructure. This raises the following questions: Can
some excess public-sector land be exchanged for
infrastructure, in a manner that is politically acceptable
and economically efficient? Can public land sales be a
realistic source of finance for critically needed urban
infrastructure investment? This paper considers the policy
context that has shaped different land-disposal and
earmarking initiatives, provides details about the actual
workings of institutions, and examines international
experience in infrastructure investment. This study
contributes to the consultative process underway in India to
consider strategies to unlock public land values to help
finance urban infrastructure investment.
