Home
/
RELIGION & LIBERTY ONLINE
/
Lessons from India’s ‘private city’
Lessons from India’s ‘private city’
Jan 31, 2026 7:31 AM

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
Acton Media Alert – Kishore Jayabalan on Vatican Radio
Vatican Radio in Rome turned to Kishore Jayabalan, Director of Instituto Acton, ment on a recent Italian court ruling which held three Google executives criminally responsible for a YouTube video depicting a teenager with Downs Syndrome being bullied. Vatican Radio’s short article on the matter is here; the audio is available via the audio player below. [audio: ...
Joseph E. Stiglitz: An Economist in Freefall
In this week’s Acton Commentary, I review a new book by economist Joseph E. Stiglitz, Freefall: America, Free Markets, and the Sinking of the World Economy. Text follows: A rare growth industry following the 2008 financial crisis has been financial mentaries. An apparently endless stream of books and articles from assorted pundits and scholars continues to explain what went wrong and how to fix our present problems. In this context, it was almost inevitable that one Joseph E. Stiglitz would...
Popes Say No to Socialism
Popes in Rome have attempted to steer the Catholic flock away from the “seductive” forces of socialist ideologies threatening human liberty, which since the late 1800s have relentlessly plucked away at “the delicate fruit of mature civilizations” as Lord Acton once said. From Pius IX to Benedict XVI, socialism has been viewed with great caution and even as major threat to the demise of all God-loving free civilizations, despite many of their past and present socio-political and economic “sins.” In...
Acton Media Alert: Sirico on the BBC
On Monday, Acton Founder and President Rev. Robert A. Sirico took to the airwaves of the BBC and squared off against Oliver Kamm of the London Times in a spirited debate over the merits of Michael Moore’s latest “documentary,” Capitalism: A Love Story. Audio from the BBC3 show Nightwaves is available via the audio player below. [audio: ...
The Problem of Nuclear Power Proliferation
In today’s Acton Commentary, I examine the overtures President Obama has been making lately to usher in “a new generation of safe, clean nuclear power plants in this country.” I call for in part a “level playing field” for nuclear energy, which includes neither direct subsidy from the government nor bureaucratic obfuscation. The key to the latter point is to avoid the kind of breathless concern over the countries involved in the manufacture of ponents for elements of the stations....
The Establishment Clause
The other day with Schools Of Government, I bemoaned the number of undergrads and graduate students in the United States who are stamped by the “academic” majors and programs within universities for the expressed purpose of preparing them for bureaucratic life and perhaps leadership in the municipalities, state and federal governments of these United States. Depending on whose numbers you use, over 25% of our economy is government – and growing. And since government operates on OPM – other people’s...
Preview: R&L Interviews Nina Shea
Nina Shea In the next issue of Religion & Liberty, we are featuring an interview with Nina Shea. The issue focuses on religious persecution with special attention on the ten year anniversary of the fall munism in Eastern Europe. A feature article for this issue written by Mark Tooley is also ing. Tooley is president of the Institute on Religion and Democracy in Washington D.C. In regards to Shea, the portion of the interview below is exclusively for readers of...
The RTT Ruse
On February 25th, while Barack Obama chatted about ObamaCare with members of Congress, the Federal Department of Education – lead by its cabinet level chief Arne Duncan who’s also from Chicago – prepped for release to the public his and his boss’s second assault on our freedom; this time a scheme to further intrude on your child’s education. As an announcement from two think tanks put it: “generationally important Tenth Amendment issues [were] opened on two fronts—the prospect of centralizing...
Die Hard — The Welfare State
[news video expired/removed] No, that’s not the new Bruce Willis movie. That’s the spectacle we’re witnessing now of general strikes in Greece in response to proposed austerity measures designed to keep the country from the fiscal abyss — and maybe dragging down other European Union members with it. But Americans shouldn’t be too smug. Despite some very substantial differences in political culture and economic vitality, the United States is showing early signs of the mass hysteria, the widespread delirium tremens...
Acton’s William F. Buckley Tribute Video
Saturday February 27 was the second anniversary of the death of the conservative giant William F. Buckley, Jr. I first saw Buckley in person when Ole Miss hosted Firing Line in 1997. I read National Review in High School even though I admit I did not always understand some of his words at that age. It was a wonderful reminder of the importance of intellectualism and conservatism, and that I still had a lot to learn. The political left too...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved