Home
/
RELIGION & LIBERTY ONLINE
/
Lessons from India’s ‘private city’
Lessons from India’s ‘private city’
Jul 1, 2026 1:07 PM

Given the acceleration of urbanization around the world, many are wondering how local governments and city planners will keep up with the pace. While advocates of free markets routinely argue for fewer top-down restrictions and more privatization of local services, others argue for increased controls and more advanced central planning.

In most corners of the world, the norm is far closer to the latter, with the quality of solutions varying from city to city. In select regions, however, private firms are managing to grab large swaths of land while also taking the reins of a range of public services, from infrastructure to security and policing to utilities and transportation.

One such place is Gurgaon, India, a district to the southwest of Delhi that has transformed from village to large industrial city in a matter of decades.Until six years ago, the city had no municipal government, despite having a population of two million.

In a new study, “Lessons from Gurgaon, India’s private city,” economists Shruti Rajagopalan and Alexander Tabarrok examine what we might learn from its struggles and success.

For a brief history and overview of the city, ReasonTV offers a great snapshot:

The story offers a fascinating case study on the role of government, the challenges of urbanization and industrialization, and the blind spots e with any ideological approach.

In the case of Gurgaon, economic growth was originally spurred by the removal of restrictions on land acquisition and development. Yet the privatization of public services came mostly from the lack of government response amid that growth. “Private developers responded with initiative to the lack of public infrastructure in all these areas,” write Rajagopalan and Tabarrok. “Compared to the Indian average the net result has been good but not great. The public sector neither built infrastructure nor established a plan with set-asides and rights of way for future infrastructure.”

The authors list a range of benefits and positive results from those services, as well as key challenges. For example, one of the biggest problems in Gurgaon remains a lack of regulation and ownership mon areas and public lands, resulting in a tragedy of mons that leads to sewage dumping, air pollution, and groundwater depletion. In these and many other cases, the answer isnot be one-size-fits-all for local governments strapped for resources. If there is no feasible way to implement or enforce the necessary laws and regulations, increased private investment and management of public lands may be the right solution.

But while economists remain mostly focused on the economic and politicalresults of these situations, countless questions remain on the role of religion and civil society in such a scenario. As Rajagopalan and Tabarrok duly note, having robust local institutions may serve as a “third solution” to such problems, though the speed of growth presents challenges here, too:

A third solution is the evolution of local institutions that deal with free-rider problems and externalities from the ground up (Ostrom, 1990). In Gurgaon, there has been a slow emergence of citizens groups, environmental groups, and resident welfare associations to monitor mons. Citizen groups, for example, have used judicial activism as a tool to prevent overextraction of groundwater for construction purposes. The expansion of civil society in Gurgaon, however, is slow. A rapidly changing urban region with newly arriving people with little history of interaction is far from the ideal landscape for the evolution of a mons (Ostrom, 1990).

As for what we might learn, the takeaways are messier than we might prefer. Gurgaon offers great inspiration and encouragement about the possibilities of privatization. It demonstrates what human beings can mon good, even when self-interest is sitting in the driver’s seat. But it also demonstrates that despite those benefits, economic growth and privatization are not, themselves, the answer. Gurgaon may be a “private city” that ranks better than the average in all of India, but the net results are “good but not great,” as the authors remind us.

Good laws, private property, and rightly aligned incentives are important, but they are not enough. In those corners where urbanization and population growth continue to accelerate at breakneck speeds, local governments should continue to learn from cities like Gurgaon and leverage the power of privatization. But before and beyond all that, citizens and workers, new and old, will do well to remember the importance of those mediating institutions and the foundation they’ll provide where incentives and economic growth fall short.

Image: “Panorama” by Dinesh Pratap Singh (CC BY-SA 3.0)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Federal Courts Block Contraception Mandate
As 2013 ing to a close, federal courts issued rulings on three injunctions sought by religious non-profits challenging the Affordable Care Act contraceptive coverage mandate rules: • Preliminary injunctions had been awarded in 18 of the 20 similar cases, but the 10th Circuit denied relief to the Little Sisters of the Poor, a group of Catholic nuns from Colorado. However, late in the evening on December 31, Supreme Court Justice Sotomayor issued a temporary injunction blocking enforcement, and ordered a...
It’s 2014, Obamacare Is Now The Law, And It’s ‘Awful’
As of Jan. 1, 2014, Obamacare – or the Affordable Health Care Act – is now law. Harking back to Nancy Pelosi’s now infamous remark, “But we have to pass the bill so that you can find out what is in it away from the fog of the controversy,” we’ll now find out how it will work. Given the incredibly rocky start, things don’t look good for the Health Care Act. One sign: documentary filmmaker Michael Moore (who usually loves...
Rev. Sirico: Pope Francis, without the politics
Writing in The Detroit News, Rev. Robert A. Sirico looks at Pope Francis’ recent Apostolic Exhortation, the “much talked about, but little-read” document titled “The Joy of the Gospel” with a special emphasis on how the pontiff understands the problem of poverty. The president and co-founder of the Acton Institute notes how Francis “speaks boldly through effective and moving gestures.” Excerpt: It is no surprise that the man who took as his model and name the model of il poverello...
The Godly Stewardship of Money
I certainly like where Dr. Calder ends up, but I’m not quite so sure about the argumentation he uses to get there. This short video is worth checking out: “Breaking the Power of Money” (HT: ESN blog). Breaking the Power of Money – Dr. Lendol Calder from InterVarsity twentyonehundred on Vimeo. Is it because students have unconsciously divinized money that they can’t bring themselves to tear a dollar bill in half? Or is there an implicit bias against the seemingly...
Notre Dame To Comply With HHS Mandate
Notre Dame University announced yesterday that it ply with the HHS mandate requiring employers to include contraception, abortifacients and abortion coverage in health care packages for employees. The university made the announcement after a federal judge last week denied the university’s request for exemption of the Obama administration’s law. An emergency stay was also denied by the Seventh District Court of Appeals. Failure ply with the law means the university would now have to pay fines of $100 per day...
Cooperation Makes Markets Thrive
In a recent piece for the Wall Street Journal, Emory economics professor Paul H. Rubin makes an interesting argument about the way economists tend to over-elevate and/or misconstrue the role petition in the flourishing of markets. “Competition plays a supporting role,” he argues, but “cooperation makes markets thrive”: The way we use the petition instead of cooperation fosters anti-market bias. “Competition” carries a negative connotation because it implies winners and losers, and our minds naturally feel sympathy for the losers....
14 Can’t-Miss Predictions for 2014
At the beginning of 2013, piled a list that included 1,034 predictions for ing year. I later went through and narrowed it down to the top 500 that I was absolutely certain would happen. Even after cutting the list down, though, I only managed to achieve a 67% accuracy rate. (Unfortunately, I forgot to post that list in public so it is difficult to verify. You’ll just have to take my word for it.) This year, in an attempt to...
Why Aren’t Natural Law Arguments More Persuasive?
As an evangelical who is extremely sympathetic to natural law theorizing, I’ve struggled with a question that I’ve never found anyone address: Why aren’t natural law arguments more persuasive? We evangelicals are nothing if not pragmatic. If we were able to recognize the utility and effectiveness of such arguments, we’d likely to be much more open to natural law theory. But conclusions based on natural law don’t seem to be all that useful pelling those who are unconvinced. Indeed, not...
Acton University 2014 Speaker Spotlight: Andy Crouch
Can we boil down the idea of mon good” to just 7 words? Andy Crouch is willing to try. As executive editor of Christianity Today, and author of Playing God: Redeeming the Gift of Power, Crouch is all about culture, human flourishing and mon good. Crouch told Acton’s Manager of Programs Mike Cook a bit of what he plans to discuss at this year’s ActonU: mon good’ provides a basis for personal choices, shared effort, and social policy deeply rooted...
The Inauguration of Income Inequality Politics
One of the key words at Bill de Blasio’s inauguration as New York City’s mayor was “inequality.” The politics of e inequality were pervasive in the remarks of former President Bill Clinton, who swore de Blasio into office, as well as the prayer of the Rev. Fred Lucas, a Sanitation Department chaplain, who prayed during the invocation for New Yorkers to be emancipated from ‘the plantation called New York City.’ e inequality as evidence of an unjust society may the...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved