Remarks by USAID India Mission Director George Deikun at the National Media Conclave “Globalizing Indian Cities: Partnership for Change” May 17, 2006, Hotel Le Meridien, New Delhi

May 17, 2006

Photo Credit: Vikas Narula

Good morning and a warm welcome to all of you who have joined us this morning. Thank you for taking time out of your busy schedules to participate in this event The media as well as other civic minded institutions have an important role to play when it comes to municipal services. That is why we have asked you to participate in today’s discussions.

It is clear that the media is already very interested in the issues that face India’s cities. Every day there are stories on urban issues in both the print and electronic media. This is helping to build awareness and educate the public on a range of issues. At the same time there are many issues facing Indian cities that do not receive enough coverage, or the coverage does not tell the whole story.

Why are cities in this country so important? Today the country’s population living in cities is approximately 285 million, the world’s second largest urban population. By the year 2030, it is estimated that over 45% of Indians will be living in cities. Cities contribute between 55-60% of India’s GDP. With better municipal services these figures could be even higher.

Despite all of this, we are all painfully aware of the major gaps in city services such as water and sanitation, power, solid waste management and drainage. Indeed, there is not a single Indian city with 24/7 water supply. Despite these shortages, roughly half the water that is treated and pumped through city systems is wasted or lost. Cities cannot afford to continue to tolerate these practices.

At the root of the problem is not simply investment. There is a major lack of capacity to develop what are called “bankable projects.” Equally important are the absence of enabling regulatory frameworks and unsustainable tariffs. Tariffs don’t even cover the cost of operations, not to mention the replacement of worn-out infrastructure.

There are examples in India of market-based financing and partnerships between the public and private sector playing a role in the improvement of service delivery. However, the regulatory environment and lack of cost recovery restrict the use of these approaches. USAID is proud to have helped launch the first concession for water supply in India, in Tirupur, Tamil Nadu.

Whether infrastructure is built and/or managed by the public or private sectors or a partnership of the two; better management is needed to improve city services. Better management will mean increased cost recovery and more diligence in responding to the needs of customers. We do believe that government has a leading role in urban service delivery – particularly as a facilitator of investment and regulator. Public private partnership is only one mechanism to improve services. It can be very powerful when properly utilized as part of an overall strategy for services delivery.

To improve customer service and the cost recovery of services, reform is necessary. Recently, one of the most important steps taken to improve service delivery in Indian cities has been the launch of the National Urban Renewal Mission. The government has allocated 50,000 crore Rs. as an incentive fund to improve city services. The disbursement of these funds has been linked to the implementation of crucial reforms such as ensuring service delivery to the poor and the development of sustainable tariffs.

There is still a need for the general population to better understand why these reforms are necessary. Education and awareness building about these reforms and the need for better management of city services will help to build demand and responsibility in the population for improved services such as water and sanitation. The media can help to articulate the views of the citizenry so that decision makers and politicians are motivated to look at all options to improve services to citizens.

Much of the education, awareness building and articulation will come from the newspapers, magazines, and TV shows that reach the general public. This is why USAID wholeheartedly supports the ideas behind this conclave. We believe that media can accelerate change.

For instance, the media can make a greater effort to ensure accurate, balanced reporting on water-related issues. Analytical and evidence-based reporting can be very newsworthy and it can help to sell newspapers and build audiences.

At USAID, we’re committed to the process of public engagement. Over the next few years we will be looking for other ways we can help improve the public dialogue on urban service delivery and build a constituency for real change.

During the course of this morning, we will hear from world class experts on urban service delivery. But my colleagues and I most look forward to hearing your ideas on how the media can participate in improving India’s cities.

Thank you