Urban Governance and Development of Informality in China and India

Informal Real Estate Markets, Eugenie Birch, Shahana Chattaraj and Susan Wachter, eds, University of Pennsylvania Press, Forthcoming

27 Pages Posted: 21 Aug 2014 Last revised: 9 Sep 2014

See all articles by Arthur Acolin

Arthur Acolin

University of Washington - College of Built Environments

Shahana Chattaraj

University of Pennsylvania

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ; University of Pennsylvania - Finance Department

Date Written: August 18, 2014

Abstract

This chapter contrasts the process of urbanization in China and in India. It characterizes the differences in outcomes with regard to the provision of urban infrastructure and the development of informality in each country. The role of local autonomy and governance structures help to explain extraordinary differences in per capita levels of infrastructure and in levels of informality in urban real estate and labor markets. In China, incentives for local urban growth, combined with the practice of Hukou — household registration permit limiting access to the rapidly developing cities — has resulted in massive growth of a formally housed new urban middle class but with important social and environmental limitations. In India, on the other hand, urbanization, although slower, occurs outside of formal institutional processes without adequate financing and delivery of public goods and services, resulting in large-scale informality. The chapter concludes with a comparison of the challenges faced by China and India in managing their continued urban growth.

Keywords: Urbanization; China; India; Urban Governance; Informal Markets; Comparative Urban Development

JEL Classification: O18; O21; R14; R21; R51; R52

Suggested Citation

Acolin, Arthur and Chattaraj, Shahana and Wachter, Susan M., Urban Governance and Development of Informality in China and India (August 18, 2014). Informal Real Estate Markets, Eugenie Birch, Shahana Chattaraj and Susan Wachter, eds, University of Pennsylvania Press, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2482706

Arthur Acolin (Contact Author)

University of Washington - College of Built Environments ( email )

224 Gould Hall
Box 355726
Seattle, WA 98195
United States

Shahana Chattaraj

University of Pennsylvania ( email )

Philadelphia, PA 19104
United States

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104-6330
United States
215-898-6355 (Phone)

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

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