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        by MAMANDO PAIN
    Mumbai wants to become like Shanghai

A leading American environmental scientist, Jesse Ausubel, last week told an Australian oil and gas conference travellers wanting to see a 21st century city should visit Singapore or Shanghai rather than New York or Paris.
It is easier to understand Singapore’s role as one of the world’s most modern cities since it had already highlighted its desire to become “a global city” some 35 years ago, pinpointing productivity growth as a lynchpin for rapid economic progress.
What this means is that the Port of Singapore Authority can move many more shipping containers than almost any other port in the world, measured in terms of units moved per worker or per hour around the clock.
This is reflected in relatively higher wages for port workers.
Tiny Singapore, with a population of 4.5 million, is also among the world’s top three crude oil refining centres even though it does not produce a drop of crude oil and the operator of one of the world’s most profitable international airlines.
Yet Singapore is a far cry from Shanghai, a small city-state versus the commercial capital of the world’s most populous nation.
What they have in common is that both are undergoing rapid transformation as social and financial centres, with billions of dollars invested every year in the upgrading of infrastructure.
In both cases, change is driven by authoritarian governments that set specific national directions and back these up with vast capital expenditures, in contrast to the largely private sector driven urbanisation of the western world.
Three years ago, Indian prime minister Manmohan Singh announced that India’s key commercial city, Mumbai, should become like Shanghai by 2010, a plan that is likely to be stymied by its relatively poor infrastructure and the fact that 60% of its people live in slums.
Some of the catching up seems almost impossible for Mumbai, where democratic forms of government ensures that almost any major infrastructure project will suffer hold ups from political activists and environmental groups.
This is a sharp contrast to China’s ability to bulldoze through many national projects.
Like Shanghai, Mumbai has a population of 18 million people.
But rapid population growth will make it the world’s most populous city with 28.5 million people by 2020, second only to Tokyo.
One of India’s newspapers, The Times of India, described Mumbai and Shanghai as “two of Asia’s greatest cities, washed by the seas, blessed by history”.
A typical example of why Shanghai is hurtling itself into the future, a point mentioned by the American environmental scientist, Ausubel, is the US$1.3 billion magnetic levitation train from Pudong airport to downtown Shanghai.
It is the world’s fastest train, taking eight minutes for the 50km journey.
An Indian journalist in London, Salil Tripathi, discusses the formidable challenges for Mumbai’s plans in a detailed article, “Bombay’s Growth Gets Shanghaied”, in the latest issue of the Far Eastern Economic Review.
The large Indian city has made an attempt to brush aside obstacles to development with 90,000 makeshift homes demolished last year, mainly affecting the poor and some middle class people.
The demolitions only stopped, Tripathi wrote, when national government officials realised that poor people living on prime land – housing costs in the city average US$52.74 per square foot a year – “may not make economic sense and may be an eyesore, but have the right to vote”.
Tripathi suggests it is “a good thing” that Bombay may never become like Shanghai, given national and local political processes.
“As the home of India’s financial capital and as the home of Bollywood, Bombay combines the drive of Manhattan with the hype of Hollywood, creating a unique amalgam of ruthless efficiency and unexpected emotionalism.
“Parts of the city run incredibly well – such as the lunch distribution business of dabbawallahs, and the overloaded trains that carry more passengers with greater frequency and for longer hours than comparable mass transit systems in the world.
“As a trading city, Bombay has thrived by being open to money, people and ideas, a city where anyone can make it big – as a movie star or a tycoon – and the divisions of caste, language and religion, which plague mainland India, doesn’t seem to matter to most of its inhabitants most of the time.”
Bombay, he writes, is home to a staggering 80% of India’s mutual funds and its two stock exchanges account for 92% of India’s stock market turnover.
Where once Indians suggested New York should be the role model for Mumbai, the suggestion that China may overtake the United States as an economic power in the decades to come has made “many in Bombay want to look at Shanghai”.
Tripathi writes that the chief minister of Maharashtra state, Vilasrao Deshmukh, has announced a US$6.5 billion infrastructure development programme that includes a metro rail link, a variety of highways and beautification of the city’s airport.
But therein lies a dilemma. The author notes that three out of five Mumbai residents live in slums – they includes the city’s police force, lower court lawyers and other skilled and unskilled workers.
“Displace them, and you destroy the network of relationships that continue to make the city hum.”


       

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