पोस्ट्स

फेब्रुवारी, २०१७ पासूनच्या पोेस्ट दाखवत आहे

From Competitive Federalism to Competitive Sub-Federalism: Cities as Dynamos

इमेज
Competition among ULBs..  CEA wants more competitive urban local body to tackle the problems of urban areas and cities. It sounds good. But will it solve the problems? Let’s see. We should focus more on the root of given problem. The stagnated primary sector and low wages in rural area is the main reason. There are several models on migration (Lewis model of migration, Harris-Todaro model etc.). Logic is very simple. People will move from one sector to another (or from rural to urban) until the wages in both sectors (both areas) get equated. But problem is that the rural wages and agricultural (and wages in primary sector) are increasing but as urban formal sector’s (and tertiary and secondary) wages are also increasing. So they are not being equated by any kind of transformation. We can see the difference between daily wages in agricultural and non-agricultural sector. And that difference is actually expanding informal sector which is responsible for low standard of living