Cities and Private Planning

Cities and Private Planning

Property Rights, Entrepreneurship and Transaction Costs

Edited by David Emanuel Andersson and Stefano Moroni

Through comprehensive case studies of privately planned cities and neighbourhood in Asia, Europe and North America, this book characterizes the theoretical basis and empirical manifestations of private urban planning. In this innovative volume, Andersson and Moroni develop an understudied aspect of urban planning and re-evaluate conceptions of our urban future.

Chapter 10: Lessons from Gurgaon, India’s private city

Shruti Rajagopalan and Alexander Tabarrok

Subjects: economics and finance, austrian economics, institutional economics, urban economics, urban and regional studies, cities, urban economics, urban studies


The world’s urban population quadrupled between 1950 and 2000. By 2050, it will have doubled again. Total population and the rate of urbanization are both increasing faster in the developing than in the developed world. In India, for example, the urban population will triple between 2000 and 2050. Between 2015 and 2030, urban populations in India will increase by 268 million. The McKinsey Global Institute (2010) estimates that such an expansion will require over a trillion US dollars in capital investment including 700 to 900 million square metres of new commercial and residential space every year–on the order of a new Chicago–and 2.5 billion square metres of roads as well as 7400 kilometres of metros and subways. The problem with these numbers is not the expense required for expansion. Increases in the overall population and in the urban population (where productivity is higher than in rural regions) as well as improvements in national productivity will likely generate more than enough wealth to support the expansion. The problem is political and organizational. Many currently less-developed countries, including India, remain high in corruption and low in efficiency, especially in the administration of their towns and cities.

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