Property Rights, Entrepreneurship and Transaction Costs
Edited by David Emanuel Andersson and Stefano Moroni
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.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.