Megacities

FP's guide to the coming urban age.

BY RICHARD DOBBS | SEPT. / OCT. 2010

Over the next two decades, the world will see a burst of urban expansion at a speed and on a scale never before witnessed in human history. But not all the world will take part. When you hear about the coming urban age, it's really a story about rising Asia and the two countries that will define this new era of the megacity: China and India. Half of Asia will become urbanized, and nearly a billion people will shift from countryside to cityscape. Trillions of dollars will need to be spent on roads, trains, power plants, water systems, and social services. And it's going to happen in less than half the time that it took the West. China and India will account for two-fifths of the world's urban growth, but they are pursuing wildly different strategies for managing this shift. Beijing's approach is systematic: The government has invested ahead, allocated land, plotted out transportation networks, and given its cities the freedom to raise capital. New Delhi, meanwhile, hasn't done enough to prepare. So while China has embraced a future of office parks and high-speed rail, India is just waking up to its new urban reality.  

 

Richard Dobbs is the director of the McKinsey Global Institute and a Seoul-based director of McKinsey & Company.

ROBERTFPCOMM

6:24 PM ET

August 16, 2010

HUH?

Where are these #'s coming from? Yes, they "need" this much new stuff, but who says they're going to get it? China already has acres of empty urban apartments and is facing fast-rising labor costs. India, well--they need a lot more than some new cities and I bet they're not going to get that either!

 

SESLIHOBI

2:34 AM ET

September 23, 2010

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ALI

5:32 PM ET

August 18, 2010

india?

I dont understand how india can meet these standards with 400 million people living worse life than poor african states?

 

FAIRANDBALANCED

8:16 PM ET

August 23, 2010

Yeah

It probably bugs you when you hear India and China mentioned together in any article that even remotely suggests the new reality that these two will be the major players in the world. Sure the article points out the issues with infrastructure not keeping up with urban growth. It will be more of a challenge for India since it is a democracy and does not have the luxury of making far-reaching sweeping changes by diktat unlike China. Hopefully, they will figure out a way to address these issues. At the very least they can take consolation (for whatever it is worth) in the fact that they are not a banana republic like their neighboring pariah nation, Pakistan.

 

YOYAKS

1:01 AM ET

August 24, 2010

But Ali, in many places, the

But Ali, in many places, the standards rival Europe and maybe even the US. India is a land of contradictions!

Sixty years of independence cannot overcome the lost centuries of colonization. Growth is slow but certain; like the budding of plants in a forest razed. The challenge is to to bring about a quantum growth without destroying the nation.

 

ARYABHAT

3:41 AM ET

August 24, 2010

Those 400 Million are developing fast

Ali, Much to your discomfort, many of those under developed states (e.g Bihar) are developing fast - much faster then African states, Europe or your beloved Pakistan!

Of course they need to be supported. But don't forget, In India Govt revenue is rising 30% every year and GDP is rising 9%.

In 1980s economy grew by 5%, in 1990s it grew by 6-6.5%, in 2000s itgrew by 7.5% with 2010s predicted on 9%. Could you please see the direction of the graph?

So slowly but surely progress would come.

 

BILL888

5:35 PM ET

September 5, 2010

Don't talk that way about democracy...

I am confused on how you talk about democracy in India. What you are saying is that democracy has slowed the growth of the economy and the ability to make further development. I don't think the American or the European will agree with you. Remember the France and American? France had redeveloped further after world II. The American had developed the whole of the west in a century. India had grip on its destiny for 60 years. It should be half way like the American and France. So, you blame on the democracy system of government? Look at Singapore. I don't think they are socialist. Wake up! My friend.

 

ONN

12:46 AM ET

August 24, 2010

No

Speculation, speculation, speculation...of course, it never works out that way with the pretty graphs, charts, and statistics.

 

SESLIHOBI

2:34 AM ET

September 23, 2010

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YOYAKS

1:08 AM ET

August 24, 2010

Its a challenge to grow

Both these countries have shown that they can beat the predictions and overcome the colonial hangover.

China is well on the path to growth and prosperity. India needs to get those disparate millions to work collectively on a shared vision, while addressing their individual needs. Hopefully, the democracy should take care of that and the paradigm shift from agro based economy to and industrial one. The growing free market and competition should take care of the economic growth part.

The challenge is to achieve growth and ensure prosperity without causing the earth to fall apart.

 

WATTY

1:00 PM ET

August 24, 2010

India should stop emulating US growth model

India's elite is totally preoccupied in aping the US, while ignoring the sustainability of the US growth model in the Indian context. Life in an Indian city is already a nightmare. More of the same growth is clearly a prescription for disaster.

The basic infrastructure to provide adequate power, safe water, sanitation, transportation etc is antiquated or non-existent. Can Indian roads handle any more traffic or its sewers handle more high-rise apartments? Schools that once used to have playgrounds are now like chicken coops stacked in crowded buildings. City parks and the majestic roundabouts have all disappeared.

India should shift its priority to developing its rural economy and also shift manufacturing activity to labor and land abundant rural areas to reverse the urbanization trend. For the first time Indian GDP associated with manufacturing has surpassed agriculture. Further erosion of the rural and agriculture segment will involve a very high economic and human cost.

 

TBISWAS

6:27 PM ET

August 24, 2010

Future does not have to be a reflection of the past, it better n

A linear projection of the present or the immediate past into the future is always the easiest thing to do, but not necessarily the most intelligent thing to do. Richard Dobbs' article and/or the sources of his data also chose this easier path to look into the future.

Just consider one simple fact. Almost 70% of the labour force in most of the developed countries and even some of the developing countries like India are engaged in information processing activities. Why do a lot of them have to continue to commute up to five hours a day to primarily use a computer at the work place that is generally connected to a lot of other computers?

With increasingly cheaper communication costs and faster broadband services, I hope the day is not too far when a lot of these jobs will be shifted to homes as a cost-saving measure, thus reducing the demand for transportation infrastructure. Appropriate use of fiscal tools (incentives and penalties) can make this happen faster, and hopefully, long before people are forced to stop breathing by polluted air.

Any intelligent forecasts of the future will be meaningless unless such possibilities are taken into account.

Tridib K Biswas

Visiting Professor
Graduate School of Business
The University of the South Pacific
Fiji

 

SOMEBODY

10:49 PM ET

August 24, 2010

Israel and Palestine will boom in peace times

Jew/Arab cooperation will bring salvation from gloomy predictions.

 

CHUNKYNUT

3:56 AM ET

August 25, 2010

Second Section

Spain has a population of about 46 million, the second section states that with 68 cities with more than 1 million inhabitants and 212 million living in those cities India has a urbanised population of more than the population of Spain.
... By about 150 million it does! Have I missed something?? The predicted population of Spain isn't going to be that much in 2030!
The US - China comparision is closer by a long shot.

 

PASSPORT ADMINISTRATOR

9:40 AM ET

August 26, 2010

It Should Be Brazil, Not Spain

Thanks for pointing out the error. When we uploaded our print edition to the Web, Brazil somehow got changed to Spain. I'm working to correct the error right now. FP regrets the error.

 

CARADOC

6:21 AM ET

August 25, 2010

Colonization?

"Sixty years of independence cannot overcome the lost centuries of colonization."

How many centuries was that? And you do know that India was not a nation before France, Portugal and of course Britain came along, right? It was a tangled mess of petty kingdoms, more often at war with each other than not. Britain didn't hold India back because there was no India to hold back. Before Britain, there was no common language, no common culture, and only the most ad hoc forms of diplomacy and foreign relations. In short, it was barely out of the Dark Ages.

Read any objective history of the British Empire and you'll understand that in many, many cases, it was the most reluctant of Empires, often having to accept protectorates it didn't want to be responsible for purely because their rulers saw Britain as the best of the worst in terms of colonialism, ie. we either join the empire of our choice or get swallowed, robbed and abused by someone else.

As for world population, the key term to remember is 'Entropy'. By the time we figure out there's too many people in the world it'll be too late. We need to assume we have too many right now, this week!

 

WATTY

12:39 PM ET

August 25, 2010

To CARADOC: Ignorance is bliss

CARADOC's ignorance of India's history before colonization is amazing!

Interestingly such ignorant right wing red neck nut jobs in the west seem to have a lot in common with the women hating taliban and their xenophobic mullahs of Pakistan.

 

MUSTNOTSLEEP14

11:28 AM ET

August 31, 2010

You are an idiot. India

You are an idiot. India accounted for 1/3 of world GDP (despite not being a nation-state in the technical term) before the British came in and pillaged the land dry. When India finally got independence, their share of world GDP was absolutely pitiful. Do not act as if Britain did not get rich off the misery of their colonies, because that idea is laughable. Do some reading into South Africa if you really want to hate the British.

 

PITNEY LODNES

1:15 PM ET

August 27, 2010

Things are changing

As of now the labor is pretty cheap in India in comparison to US / Europe. But do feel that it will start changing soon. Pitneylodnes

 

FP FOREVER

10:14 AM ET

August 28, 2010

Excess Capacity

It has been said that both India and China have enough excess capacity to absorb every job in the US and still have excess capacity. That may not be true but serves a point. One, how poor these two countries really are and two, the danger to the US if it does not accept this fact.

 

NAIUY

6:46 AM ET

September 15, 2010

When India finally got

When India finally got independence, their share of world GDP was absolutely pitiful. it will take more than prison to keep this tycoon away from the company he founded." Search for m2ts converter ? flv to wmv converter. Hulu Downloader The fact that the government hires militias like the Salwa Judum to spy and intimidate ordinary people is clearly a prescription for disaster. How can any civilized government justify empowering militias to hunt and kill fellow citizens to serve the interests of the privileged few?

 

SESLIHOBI

2:35 AM ET

September 23, 2010

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