Home
/
RELIGION & LIBERTY ONLINE
/
Lessons from India’s ‘private city’
Lessons from India’s ‘private city’
Jan 24, 2026 9:12 PM

Given the acceleration of urbanization around the world, many are wondering how local governments and city planners will keep up with the pace. While advocates of free markets routinely argue for fewer top-down restrictions and more privatization of local services, others argue for increased controls and more advanced central planning.

In most corners of the world, the norm is far closer to the latter, with the quality of solutions varying from city to city. In select regions, however, private firms are managing to grab large swaths of land while also taking the reins of a range of public services, from infrastructure to security and policing to utilities and transportation.

One such place is Gurgaon, India, a district to the southwest of Delhi that has transformed from village to large industrial city in a matter of decades.Until six years ago, the city had no municipal government, despite having a population of two million.

In a new study, “Lessons from Gurgaon, India’s private city,” economists Shruti Rajagopalan and Alexander Tabarrok examine what we might learn from its struggles and success.

For a brief history and overview of the city, ReasonTV offers a great snapshot:

The story offers a fascinating case study on the role of government, the challenges of urbanization and industrialization, and the blind spots e with any ideological approach.

In the case of Gurgaon, economic growth was originally spurred by the removal of restrictions on land acquisition and development. Yet the privatization of public services came mostly from the lack of government response amid that growth. “Private developers responded with initiative to the lack of public infrastructure in all these areas,” write Rajagopalan and Tabarrok. “Compared to the Indian average the net result has been good but not great. The public sector neither built infrastructure nor established a plan with set-asides and rights of way for future infrastructure.”

The authors list a range of benefits and positive results from those services, as well as key challenges. For example, one of the biggest problems in Gurgaon remains a lack of regulation and ownership mon areas and public lands, resulting in a tragedy of mons that leads to sewage dumping, air pollution, and groundwater depletion. In these and many other cases, the answer isnot be one-size-fits-all for local governments strapped for resources. If there is no feasible way to implement or enforce the necessary laws and regulations, increased private investment and management of public lands may be the right solution.

But while economists remain mostly focused on the economic and politicalresults of these situations, countless questions remain on the role of religion and civil society in such a scenario. As Rajagopalan and Tabarrok duly note, having robust local institutions may serve as a “third solution” to such problems, though the speed of growth presents challenges here, too:

A third solution is the evolution of local institutions that deal with free-rider problems and externalities from the ground up (Ostrom, 1990). In Gurgaon, there has been a slow emergence of citizens groups, environmental groups, and resident welfare associations to monitor mons. Citizen groups, for example, have used judicial activism as a tool to prevent overextraction of groundwater for construction purposes. The expansion of civil society in Gurgaon, however, is slow. A rapidly changing urban region with newly arriving people with little history of interaction is far from the ideal landscape for the evolution of a mons (Ostrom, 1990).

As for what we might learn, the takeaways are messier than we might prefer. Gurgaon offers great inspiration and encouragement about the possibilities of privatization. It demonstrates what human beings can mon good, even when self-interest is sitting in the driver’s seat. But it also demonstrates that despite those benefits, economic growth and privatization are not, themselves, the answer. Gurgaon may be a “private city” that ranks better than the average in all of India, but the net results are “good but not great,” as the authors remind us.

Good laws, private property, and rightly aligned incentives are important, but they are not enough. In those corners where urbanization and population growth continue to accelerate at breakneck speeds, local governments should continue to learn from cities like Gurgaon and leverage the power of privatization. But before and beyond all that, citizens and workers, new and old, will do well to remember the importance of those mediating institutions and the foundation they’ll provide where incentives and economic growth fall short.

Image: “Panorama” by Dinesh Pratap Singh (CC BY-SA 3.0)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
More than compassion needed for Europe’s refugees
“Irrespective of the political forces at play,” says Trey Dimsdale in this week’s Acton Commentary, “there is no arguing with the fact that such a large number of displaced immigrants presents a monumental humanitarian crisis in which survival es the initial, but not final, concern.” Prior to 2014, fewer than 300,000 refugees and migrants arrived in the European Union each year. Due to war and unrest in the Middle East and North Africa, that relatively slow trickle more than quadrupled...
Samuel Gregg on the fracturing of France
With the first round of the French election results in, and no major candidates even managing to get a quarter of the total votes, two candidates remain: Marine Le Pen of the National Front, a populist and nationalist party, and Emmanuel Macron, the center-Left candidate of the “En Marche!” (“On Our Way”) political party. Samuel Gregg covers the current politically disjointed state of Francein a new article for First Things. He maintains an attitude of skepticism and uncertainty towards France’s...
Taxes on unhealthy food do nothing but hurt the poor
Throughout history, societies have found peculiar ways to reinforce social hierarchies and class-based discrimination. mon way is to prohibit certain social classes from being able to purchase a good. These types of laws that regulate permitted consumption of particular goods and services are known as sumptuary laws. A prime example is the 16th-century French law that banned anyone but princes from wearing velvet. Modern America is mitted to the appearance of egalitarianism to make laws that directly ban poor people...
Remembering Kate O’Beirne
Longtime Acton Institute friend and supporter Kate O’Beirne passed away this past weekend. Below are Father Robert Sirico’s thoughts on this plished woman: I feel like I have always known Kate O’Beirne, so the passing of this woman of keen intellect, sharp wit and fearless rhetoric in confronting the nostrums of our day leaves me feeling very, very sad. It is painfully sad to think that the occasions of sharing National Review cruises or panel discussions with her or having...
Why J.D. Vance is bringing venture capital to the Rust Belt
As Americans continue to face the disruptive effects of economic change, whether from technology, trade, or globalization, many have wondered how we might preserve or revivethe regions that have suffered most. For progressives and populists alike, the solutions are predictably focused on a menu of government interventions, from trade barriers to wage minimums to salary caps to a range of regulatory constraints. For conservatives and libertarians, the debate has less to do with policy and more to do with the...
Marine Le Pen’s economics unite populist Right and far-Left
Emmanuel Macron may have won the first round of the French presidential elections on Sunday, but Marine Le Pen won a political victory of her own. The statist undercurrent running through her nationalist and populist policies successfully bridged the gap between France’s “far-Right” and socialist Left, according to Marco Respinti in a new essay for Religion & Liberty Transatlantic. Mainstream French politicians have sought bine disparate ideological strands since at least Charles de Gaulle, who presented his foreign policy as...
Humans care about economic fairness, not economic inequality
A new study published in the science journal Nature Human Behaviour finds that in most situation people are unconcerned about economic inequality as long as distributions of wealth are fair: There is immense concern about economic inequality, both among the munity and in the general public, and many insist that equality is an important social goal. However, when people are asked about the ideal distribution of wealth in their country, they actually prefer unequal societies. We suggest that these two...
Acton books distributed to schools by Theological Book Network
The Acton Institute recently donated a number of titles on faith, work, and economics to the Theological Book Network which will distribute them to its partner institutions in what it calls the ‘Majority World’ (‘Majority World’ is a term coined to replace earlier sometimes anachronistic or misleading terms like ‘Third World’ or ‘Developing World’). The Theological Book Network is a Grand Rapids based non-profit, mitted to the creation and development of Majority World leaders by providing access to educational resources...
Audio: Victor Claar on whether Trump’s budget is un-Christian
Victor Claar speaks at Acton University On Saturday, Victor Claar, Professor of Economics at Henderson State University and Affiliate Scholar at the Acton Institute, joins host Julie Roys and Jenny Eaton Dyer of Hope Through Healing Hands on Moody Radio’sUp For Debateto discuss how Christians should respond to President Trump’s first budget proposal, especially as it relates to proposed cuts in US foreign aid. Dyer argues that Christians should be deeply concerned about the proposed cuts, while Claar argues that...
Price Controls and Communism
Note: This is post #30 in a weekly video series on basic microeconomics. What happens when price controls are used munist countries? As Alex Tabarrok explains, all of the effects of price controls e amplified: there are even more shortages or surpluses of goods, lower product quality, longer lines and more search costs, more losses in gains from trade, and more misallocation of resources. (If you find the pace of the videos too slow, I’d mend watching them at 1.5...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved