CHAPTER 2

RESEARCH METHODOLOGY

2.t. Introduction

2.2. Statement Of The Problem

2.3. Review Of Related Literature

A. Research Studies and Dissertations

B. Reference Books

I. Structure

II. Financial Administration -.. III. Economic Facet

IV. Welfare Facet

V. Policies and Plans

C. Journals

D. Government Publications

2.4 Importance Of The Present Study

2.5 Objectives Of Study

2.6 Hypotheses of the Study

2.7 Research Methodology

A. Primary Data

B. Secondary Data

C. Statistical Tools

2.8 Time Budgeting

2.9 Limitations of the Study

2.10 Chapter Scheme

CHAPTER 2

RESEARCH METHODOLOGY

2.1 Introduction

Economic development implies the attainment of a higher standard of living for -the common citizen. Local self-government plays a vital role in the

O

process of economic

development in so many ways. It provides both social and economic serviceso It also

serves as the best agency for executing the development plans of the higher-tier

government in its own area.

The economic concepts relevant to urban development are collectively known as

urban economICS. These urban economic concepts are modified tools of analysis

developed to help in identifying urban problems before they assume proportions and

become untraceable and to devise solutions and evacuate their likely effects for

consideration by government, politicians, experts and general public. This body of

knowledge known as urban economics also helps in increasing one's own understanding

of how an urban economy, i.e. major city or metropolitan city or any smaller urban area

works and how it is likely to react to various endogenous and exogenous forces. The

urban economic analysis also pays due attention to physical environment, social, political

and legal considerations.

Maharashtra is leading in urbanization and growth trends but the pattern is highly

imbalanced, the growth centre approach in decentralization industrial growth has already

been successfully demonstrated and similar approach in identifying urban location, which

will maximize development speed effect and promote urban development on efficiency

and equity principles at city level has been proposed.

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Pune's traditional, academic cum administrative character not withstanding, the

fifties and sixties were preparation for the change in Pune's role to that of an industrial

city. This has occurred through the' rapid improvement of infrastructure, particularly road

construction, and widening, growth of public transport and improvement of health care

through the control epidemics. These improvements were due to the most important civic

event that took place in 1950. The Pune municipality was raised to the status of a

corporation. This event stepped up people's expectations from the civic body.

Pune is labeled 'Pensioner's Paradise' and 'Oxford of the East' and "Detroit of

India". It is today's sunrise and tomorrow's software capital.

PMC has played a prominent role in the url)an economic development of Pune. In

this chapter an attempt is made by the researcher to evaluate this role of PMC in urban

economic development of Pune.

2.2 STATEMENT OF THE PROBLEM

The research highlights on "Role of Local Self Government in Urban

Economic Development with special reference to Pune Municipal Corporation".

2.3 Review of Literature

Research Studies and Dissertations:

The researcher has taken a review of four research studies in this section. Shri. P.

S. Palande1 in his thesis "The Fiscal System and Problems of Municipal Corporations: A

case study of the finances of the Pune Municipal Corporation" has studied the problems

thrown up in the wake up industrialization and urbanization and the relevant financial

responsibilities of the Municipal Corporations. A clear understanding of the

Administrative set up, Trends of Income and Expenditures, suggestions for augmenting

the financial resources, and better financial discipline

In the course of the 25 years under consideration, there has been considerable

progress public health, sanitation, medical relief, education and communication in spite

of the meager resources at its command compared to the magnitude of the problems

before.

25

One of the reasons for comparatively less attention paid to urban problems was

that Urban Government had no place in National or State level planning. There is need

for a close association of the Urban Local Body with the state government by giving civic

body an appropriate representation in the government machinery.

Prof. S.Y. Patil2 in his thesis, "Dynamics of Urban Development: A case study of

Jalgaon City." has studied the dynamics of urbanization, the theoretical framework on

urban development, historical overview of urbanization in India, development of urban

infra-structure of Jalgaon City, development of trade and commerce in the city, role of

Jalgaon city in economic development of Jalgaon district. -

His findings are high trend of urbanization, increasing masculinity of population

of Jalgaon city, high population density, constant occupational structure of the city,

cosmopolitan nature of the city, increasing literacy rate, high trend of land speculation,

increasing industrial growth, growth transport and communication and increasing trend of

working population.

There should be overall planned balanced growth of the city with a due attention

to all segments of this city. And in particular, the municipality should set up a public

relation wing to have wide publicity and public intervention.

V.G. Nandedker3 in his thesis, "Zilla Parishads as Local Governments and

Development Bodies" covers the genesis of the concept of Panchayat Raj, the statutory

pattern, introduction of district, the work of Zilla Parishad, sources of finances, and the

tie between people and Panchayat Raj.

M.P.Mangudkar4 in his thesis, "Municipal Government in Poona-(1882-1947): A

case study." Covers the history of municipal government in Poona, constitutional

development of Poona Municipality, composition of Pune Municipality, functions of

Poona Municipality, municipal finance, municipal revenue, municipal administration and

Municipal-State relations.

26

Keeping the topic of research in view, the researcher has traced the secondary

data from different sources. Such available literature is suitably classified as given

below:

I. Structure 2 References

II. Financial Administration 4 References

III. Economic Facet 4 References

IV. Welfare Facet 3 References

V Policies and Plans of Local Government 5 References

VI. Journals 3 References -

VII. Government Publications ..

3 References

I. Structure

Dr. H. D. Kopardekar and G. R. Diwan5 have reviewed the work of various

Development Authorities and their contribution to the field and most important courses

for the planning professional and staff of Town Planning Departments, Municipalities,

and Authorities etc.

Every municipal body must have a President or a Chairman or Mayor and

Deputies. The Acts provide for the term of office of the Mayor, President, Vice President

and the entire council and also the powers and functions of Mayor, President, and Vice

President Etc. The Chief Officer or Commissioner is the principal executive of the

municipal Body. He is supposed to exercise powers and perform functions, which cover

a wider range than that of the president Mayor.

The Council has various committees for the various activities such as (1 )Standing

Committee, (2) Public Works Committee, (3) Education Committee, (4)Sanitation,

Medical & Public Health Committee,(5)Water Supply&Drainage Committee, (6)

Planning &Development Committee and (7) Transport Committee.

The Standing Committee plays the key role of coordination of the working

committees. The Municipal Act establishes hierarchy in the working committees with

the subjects committee subordinate to the standing committee and the council.

The local municipal authorities are responsible for preparation of the City

development plans and their implementation. The StatutolY Development plans provide

27

for overall development and improvement of city/town considering its growth in next

twenty years with provision of basic amenities and social infrastructure.

Dr.S.G M21hajan6 has given the entire complexity of Pune City from its historical

and political perspective dating from 758 to 1998 A.D. Pune was administered by Pune

city municipality established in 1857, took under its wings public health, housing water

supply, passenger transport, primary education, town planning, etc as functions of local

self-government institution. Pune city municipality was converted into Pune Municipal

Corporation in 1950. Annual reports, development control ruies, and other plans throw

light on urbanization, housing, passenger transport and other problems.

II. Financial Administration

Prof. A. H. Marsha1l7 has stated the organization of the financial work of local

authorities. It describes the ways in which dected members ensure that proper respect is

paid to finance and budgeting. The budget has long been the focal point of financial

procedure of public authorities. Public authorities, pioneers in budgeting, traditionally

regarded budgets primarily as plan!'> of expenditure.

The book studies the nature and significance of the budget, the relevant statutory

provisions, the two main types of budget-capital and revenue; the relation of both these

kinds of budget to policy making; and the form of the revenue and capital budgets. The

local authority develops and refines the budget to execute the planned expenditure with

control and authority. The constitutional structure of local government is vested with

managerial powers. The essential tasks of management are planning ahead, making

choices, setting standards, catering regular utilities and creating new utilities. As a multi­

purpose institution with a locally elected body, disposes a considerable share of National

Income.

The local government coordinates with the Center to let this aim permeate into

every comer of the country. By implementing the capital programmes as per the

decisions and designs of council, the local self-government should be concerned to see

that schemes do not lag behind Lhe programme, as well as to watch that expenditure does

not run ahead.

28

Smiti S.R. Maheshwari8 has gIven a complete gamut of local government

regarding the history, administration frame work, community development programs,

trends in urbanization, and finances of urban government, control and supervision.

History as such ranges from pre British to the present scenario. Administration

framework deals with the three-tire system of government inclusive or personnel

administration. Community development program deals with implementation of town

and rural planning in the provision of necessary utilities and amenities to the local people

in their respective areas. Trends in urbanization is concerned with dimensions like

population, land, occupational structure, provision of infrastructure faults and the -

growing competitive needs of local governments.

In order that the financial position of Municipalities is reviewed periodically, a

State Finance Commission shall be constituted by the Governor of the State within one

year from the commencement of the Constitution (74th Amendment) Act, and thereafter,

at the expiration of every five years. It has been left to the legislature of the State to

specify by law matters relating to imposition of taxes, duties, fees, etc, aU towards the

socio-economic development.

M. Nageswara Ra09 has stated that it is worthwhile dealing with the structure of

finance in order to answer a few of the question or resource mobilization and resource

utilization. Resources are classified as internal and external. The former consists of

taxes and non-taxes. Taxes comprise Octroi, property tax, profession tax, tax on carts,

carriages and animals, shop tax, advertisement tax and so forth. A non-tax source

consists of fees raised in market and slaughter houses, water charges, license fees, and

penalties and so on.

External sources of revenue are assigned revenue, compensation payment made

by the State Governments in lieu of the levy on motor vehicles, and financial transfers.

Inter-governmental financial transfers usually take place by inflow of funds from

the higher tier government to the lower tier government and help strengthen the relations

between them.

There is a need to develop remunerative enterprises such as transportation and

housing on a selective basis in a few towns and cities. In addition, local governments

should bring together schemes pertaining to urban development. In view of the rapid

29

urbanization and potential industrialization; there is great need to look into the local

public sector and its contribution to National development.

.. Fredrick Carlson!O has stated in his article that fiscal policy making at the local

level involves three distinct allocation decisions: setting the mixed between the private

and local public spending, setting the mix between different spending categories and

determining the inter-temporal distribution of spending. These will be referred to as the

revenue, spending, and borrowing decisions respectively.

vVhen communities have different preferences for the size, composition, and inter­

temporal distribution of public spending there is a strong case for decentralizing revenue, -

spending, and borrowing decisions to local authorities.

The center controls local revenues by setting inter- governmental grants, the type

of taxes the local sector may levy, and in some cases determine upper and lower limits on

tax rates. Spending decisions are regulated by categorical grants or statutory and

administrative arrangements. Borrowing regulations take the form of ceilings on interest

payments, budget balance requirements, or borrowing limits for individual authorities.

III. Economic Facet

John R. Meyer and John Quigley!! explain how development of a local economy

means jobs, prestige, wealth and tax revenues. Public policies to stimulate local

economies are therefore politically attractive at all levels of government. In planned

economic development, strategists might keep in mind that although the city presently

finances its municipal services through the property tax, perhaps that will change. The

case study of New Haven clearly explains the development processes in various sectors.

The problems posed by lack of space available at appropriate prices in the city

undoubtedly discourage businesses which require a large area for storage of materials and

equipment. Construction, then, does not appear to be a sector that can be counted upon to

play a major role in any economic development program. New establishments in the

wholesaling sector are also choosing to locate elsewhere due to labour intensive use of

scarce land resources.

The research and science-based service industries are found to be growing faster.

New Haven is a home to a substantial medical complex and could thus serve as a modest

30

base for more life-study servIce related endeavors. Manufacturing industries still

dominate the 'export' sector and they appear more susceptible the city development

. policy.

Employers who came to the City Government to seek help in relocating to a larger

track of land felt that the city had been inadequate in its aid. It was clear that it was not

forthcoming in most circumstances because the sites were not available within the city. In

contrast, a number of firms cited the good working relationships that existed between

them and suburban governments.

Gunnar Myrdal 12 has stated that the task of economic science is to observe and -

describe empiflcal social reality and to analyze and explain casual relations between

economic facts. Utilitarians are never tempted to speculate too wildly about the essence

of the state. It is for them the sum of its members and therefore is neither absolute

reason, nor organism, nor a 'super organism'. By defining social utility as sum of

individual utilities, they make it more difficult to fall into the trap of endowing a super

individual personification with the general will or a 'folk-soul'. The theory of 'wealth' or

'welfare' or 'Volkswirts chaft' becomes a theory of how a nation, guided by a common

purpose, runs or ought to run its economic afIairs.

Politics is an art which is circumscribed by the actual and the possible, and

precisely for this reason can it look to economic science for assistance. The way capital

movements and distribution of labor between districts or countries should produce

'common good', 'general welfare', or 'world economy'. Theories have been devised to

establish the 'population optimum'. Principles have likewise been formed for the 'right',

'just', or 'equitable' distribution of taxation. Indeed, the theory of public finance is still

commonly expounded as a body of doctrines, which lays down what system of taxation

we ought to impose. The classical economists, neo-classical economists and the later

economists had to draw lines between the original nature of economics and its mixture

with politics, philosophy, science, etc. What promotes the welfare of the society has

always been an open question to all economists.

Ami Sverrison13 has stated two different network approaches, social network

analysis and analysis of socio and technical networks and identifies a number of features,

which characterize the most dynamic local economic cultures. The local government as a

31

political institution has a strong economic facet to safeguard economic stability through

public revenue, public expenditure, and making private sector economically progressive.

Most local economies tend to be inward oriented and they are far from

connections with global economic culture. The development of such connection is

necessary for the sustained development of local economies, yet, they rarely develop the

point where they can out to larger markets. Planned economies invariably give more

importance to economic side in their policies. Critics have focused mainly on the

negative social consequences of these policies for the poor and powerless: economic

planning, state capitalism and protectionism have had few advocates in the 1990s. -

Earlier experiments in free market economies, from the nineteenth centliry on, have

usually led to the revival of regulatory efforts in order to secure social and political

stability and the continued legitimacy of the State.

N.R. Rao l4 has stated that the time has ripened to take more seriously our local

government to understand nor merely in their management and performance, but more as

an expression of our faith in direct democracy and creative freedom. Exercise of

freedom, both individual and collective, at the local community level, can be as well

creative freedom, and purposeful at National or State level. If freedom is a necessity,

urban government is emerging as the most necessitous area of its development. Local

government is no more just an extension of state administration. The local-self

government encourages local initiative and derives the citizens' energies into constructive

channels towards economic development throughout its political and financial powers.

In this country, fortunately, the Constitution, the Union and State governments

and also the political parties, have all taken kindly to local government in principle and

appear to be concerned about their good going.

Many provincial governments passed enabling Acts with provision for election,

financial resources, etc,. The functions handed over to local bodies under the provincial

Municipal Acts were: (i) the maintenance of roads, street lighting, upkeep of municipal

property and buildings; (ii) public health, vaccination, sanitation, drainage, water supply

and measures against epidemics; and (iii) education. Whatever be the other related

factors, the role of local bodies in welfare promotion is recognized.

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IV. Welfare Facet

K. J. Charles l5 has stated that knowledge regarding health broadly comes from

three sources-formal education, social education and custom and folklore. Poor people

have little formal education but their custom and traditions contain both wisdom and

spurious knowledge. Social education undertaken by public authorities to educate the

poor regarding maintenance of health and prevention of disease could have very great

value in improving the health of the nation.

There is an urgent need for government agencies, medical authorities and other

voluntary agencies to reduce the vast potential talent in social education for bringing

about an improvement in the health and well-being of society.

Historically, improvement in environmental sanitation has played a far more

decisive role in the eradication of many diseases than medical facilities. Such diseases as

plague, cholera and smallpox disappeared from the present-day developed countries as

their environmental sanitation improved with economic growth.

A. Megric Freeman III and Robert H. Haveman 16 have stated that if public

expenditures are to serve the public interest, society should undertake all projects whose

implementation adds more to the welfare of society than its subtracts. This proposition is

perhaps the most basic one in public expenditure economics. Its primary characteristic is

that it is one-dimensional; that is, all projects effects are measured in units of welfare.

The only comparison that it requires is that between increments (benefits) to social

welfare and decrements to social welfare (costs).

This simple proposition can be applied directly to proposed government

investment if there is some common denominator for measuring all project effects. For

many of the goods and services produced both the private and public sectors, this

common denominator does exist. We call it money or dollars. However, to apply this

common yardstick, especially to public expenditure analysis, two things are necessary.

First, all the beneficial and detrimental effects must be quantifiable. We must be able to

talk about so many pairs of shoes, or so many houses, or so many tonsillectomies.

Second, we must be able to attach some number of dollars or price to each unit of the

beneficial or detrimental effects of which we are speaking. This price must reflect the

33

value of the effect to those people who are benefitted or hanned by it, that is, their

willingness either to pay for obtaining it or to pay for avoiding it, as the case may be.

Edwin S. Mills 17 has stated that the welfare economics is a branch of economic

theory concerned with evaluating the perfornlance of the economic system. In order to

decide whether the system is perfonning well and whether a change in government policy

would improve its perfonnance, a yardstick it needed by which to measure perfonnance.

Such a yardstick is called a 'value judgment'. The major element of progress in welfare

economics during recent decades has been to make value judgment explicit rather than

implicit.

Welfare economics begins with the idea that the purpose·of economic activity is

to produce goods and services for people to use. It leads to the broad judgment that

economic system should be evaluated by the efficiency with which it produces goods and

services and by the efficiency and equity with which it distributes them for people's use.

For many purposes, goods and services can be defined narrowly as inputs and outputs

trade on markets. But for some purposes it is desirable to broaden the definition to

include the valuable goods and services provided by the government to upgrade the

quality of living in the name of welfare.

Fred W. RiggslS has stated in his research article about the impact of changing

environment on politico-administrative system, in short, immediately led to

considerations about how decision makers can affect their environment, leading thus to

"environmental Administration".

When one talk about "environmental politics" one typically discusses what ought

to be done and the processes by which popular support can be secured for necessary

legislation. What guidelines, nonns, or standards ought to apply, and how should we in

principle cope with energy shortages, the depletion of resources, the pollution of air and

water, and the population explosion? It we were to add considerations about justice,

equality, freedom, and stabiJity to our calculus, and even more intangible but meaningful

index might be created, a "Social and Psychological Quality of Life Indicator".

34

Poverty is a very serious matter. It is degrading and demoralizing. Most of our

commonly identified urban problems are directly linked with poverty. The main

explanation for the existence of slum housing is the poverty of its inhabitants. Violent

crime is closely linked with poverty. Aud children of poor families are at a disadvantage

in school and in labour markets. But poverty was not invented in urban slums, and it is a

mistake to focus public policy entirely on the urban poor.

V. Policies and Plans

Nevenka Hrovatin l9 has stated in his research article that public enterprise had

been subject to tremendous changes in the last two decades:' Many countries have started

comprehensive privatization programs to overcome the problems that in over-whelming

public sector were imposing on them. Privatization is usually accompanied by regulation

or deregulation if companies remain monopolies after privatizations. This article is

primarily concerned with recent changes in public utilities. In contrast to other papers in

this issue, this addresses different aspects of public enterprises in developing countries.

This paper deals with various forms of transformation of public utilities in particular, in

the context of the EU countries.

1. N. Khosla20 Director of 'The Indian Institute of Public Administration', as

editor has stated that the Poona city development plan is concerned with only those

functions which fall within the administrative jurisdiction of the corporation.

Alternatively, one could think of including the functions of other authorities also.

Obviously, the functions for inclusion in the city development plan would not be uniform

throughout India, and even if we think of uniform list of functions as the planning

commission levied or tried to do, the authorities involved will differ from state to state

and even from place to place in single state. The reason is quite simple.

For historical reason, we have in our urban areas a number of authorities other

than the municipality or the municipal corporation. For instance, there is the Housing

Board; in certain cases there is an Improvement Trust. If you take the case of

Maharashtra, apart from Nagpur where there is an improvement trust, no other city in that

state has an improvement trust. In U.P, on the other hand, apart from the five corporation

towns most of the municipal towns have got improvement trust working alongside the

35

municipalities. Thus, the moment one thinks in terms a number of authorities to be

included along with their functions in the framework of city development plan; it gives

rise to a complicated situation.

M.\'. Mathur and Iqbal Narain21 have stated that from very early stages of Indian

planning, the idea of planning from below has in principle been accepted. It may be

worthwhile to examine to what extent planning from below is necessary and possible.

Looking at the nature of national economic plan, it is obvious that there can be no such

plan, which is entirely based on ideas and programs emanating from various functional

and regional agencies.

Planning would necessarily require an overall ~design and a balanced program of

development of different sectors and regions, taking into account the overall requirements

of the economy'; and this function can only be carried out by a central planning

organization.

The Planning Commission has emphasized the importance of district, block and

village plans for many years now. But what this means in terms of planning organization

and methods has hardly been worked out. It is necessary, therefore, that concrete

measures for developing area-planning organization should be taken at an early stage.

Ram Viranjan Tripathl2 has stated that the achievement of a high rate of

economic growth in underdeveloped countries necessitates government planning of the

development process. The importance of tiscal policy as an instrument of economic

growth will differ according to the role assigned to the operation of government in the

process of economic development. Thus a policy for cumulative economic development

requires the application of large investment expenditures for the creation of social

overhead capital, which in tum will facilitate the development of both manufacturing

industries and agriculture.

If the rate of economic deVelopment of underdeveloped countries is to be

accelerated, main reliance has to be placed on the creation of external economies through

the availability of social overhead capital. This alleviates the glaring inequality of

income and the objective of increasing the rate of capital formation. Large-scale

improvements in health, education and training expand productive capacity, and they lead

to an increase in the resources of the economy as investments increase the fund of

36

physical capital. The development of transport, soil improvement and river development

are examples of physical investments which fall in the category of economic overhead

capital the returns from which are too remote and too slow to materialize to attract private

investors. Thus the role of public sector in the disposal of and command over national

resources tends to increase. This is associated both with a tremendous increase in the size

of the public expenditure as well as a fundamental change in its composition.

Kamal N ayan Kabra23 has stated the critical review of the experience of planning

and its theoretical understanding, in our view; rescue its essential kernel which the third

world, not withstanding the bandwagon of globalization, liberalization and marketisation,

can hardly afford to do without. This require'S a sharp departure from the nearly

exclusive protectionist and economy-centered view of social processes, particularly of

development and planning.

In simple words, for each strategy, a range of alternative methodologies of

planning, including implementation, is available. At the same time no choice concerning

the methodology of planning forecloses one's options regarding the strategy. Similarly,

both the strategy and methodology of development planning are two distinct sets of

issues from those relating to the agency, organization and stake-holders who command,

control and carry out the different components or stages of the planning process. Thus

the three components of the planning process do not have to be clubbed together as more

of them necessarily impose any particular choice with respect to the others.

In India and similarly placed third world countries (now viewed as 'big emerging

markets' by the West), this kind of transition to a methodology of planning capable of

being adequate to its onerous responsibilities and tough challenges is greatly hampered

by the pervasive sway of neo-classical economics, partly sharing the role with Keynesian

macro-economics and the long-term growth theories.

From the Fourth Plan onwards, many a step has been initiated to institute lower

level of planning. This is a step in the evolutionary process of national level macro

planning which displays the interaction of the kind of factors we are trying to highlight.

37

VI. Journals

H.D. Kopardekar and S.M.Y.Sastrl4 in their article, "The role of Local

Government in development in India, have stressed the necessity of redefining the role of

local government that local government bodies from being merely regulatory and

maintenance bodies performing a few basic, elementary functions, the local bodies must

assume a dynamic role in development. And they should be considered as fit institutions

for being involved in the development process has been the theme of a number of recent

studies and conferences.

S.R.Samanth25 in the Atticle, "Keeping Singapore Clean", mentions steps that

were taken by the Ministry of Environment'Government of Singapore, several measures

were taken such as; educating the people through publicity, propaganda campaigns and

educational exhibitions in public places, by posters, leaflets, car-stickers and banners,

through press, radio television, cinema slides, educational talks and film shows were

organized by the participating organizations for their staff.

Apart from these measures Members of Parliament together with community

leaders organized educational activities at the constituency level and made house-to­

house visits to educate residents and spread the message of keeping Singapore clean.

Competitions to pick the cleanest premises were organized by participating organizations.

E.Vayunandan and Dolly Mathew26 have said that, "According to Cohen and

Uphoff, participation is the involvement of the people in the decision-making processes,

in implementing the development programmes, sharing the benefits and evaluating such

programmes.

Participation here is referred to the consultation, involvement, and empowerment

of the people. It implies that people participate in decision making, design, formulation,

implementation, evaluation and monitoring of various programmes and development

projects concerning them. People work as partners with the government projects

concerning them. People work as partners with the government and various othet

agencies in initiation and fulfillment of goals.

38

VII. Government Publication

The "Hand Book of Basic Statistics of Maharashtra State27" gIves year-wIse

statistical tables for Income and Expenditure of Municipal Councils and Municipal

Corporations. These tables show revenue amounts such as Municipal rates and taxes,

Income from other sources. Expenditure amounts on general administration, public

lighting, water supply, drainage conservancy and Sanitation, public works and others.

It also gives the Constitution of Municipal Corporations, the number of municipal

corporations and councils and the number of their councilors.

The "Maharashtra Act No. XXXVII of 196628. The Maharashtra Regional and

Town Planning Act, 1996 (as modified up to the 13th August 2003) gives the constitution

of Regional Planning Boards, Terms of office and conditions of service of members,

Powers and duties of Board, survey of region and preparation of regional plan,

publication of regional plan development plan, town planning scheme, budgeting and

accounts and etc.

The "Bombay Act No.LIX of 194929:_ The Bombay Provincial Municipal

Corporations Act, 1949 gives Constitution of Corporation and Municipal Authorities,

various committees and their powers, Municipal Funds and Accounts, borrowing powers,

Municipal Taxation and Revenue, Budget and Expenditure, and various functions and

duties.The "Bombay Act No. III of 1959 (The Bombay Village Panchayats Act, 1958)

gives establishment and constitution of Panchayats, administrative powers and duties,

budget and accounts, taxation and recovery of claims, financial assistance to panchayats,

and functions and duties.

2.4 IMPORTANCE OF PRESENT STUDY

The powers and policies of the national government play an important role in the

implementation of macro economic policy to permeate economic development

throughout the country in a balanced manner. The problem faced by local government are

important matter of study as they compete with private sector and also cope up with the

technological progress in their administration and successfully and efficiently implement

the local policies in order to promote rapid economic development of the corporation

jurisdiction.

39

Since its inception in 15th February 1950, the Pune Municipal Corporation has

played a significant role in all-round development of Pune City. Its jurisdiction was

extended to cover thirty-eight surrounding villages and hence its responsibility has

increased to cope with all dynamic changes occurring due to liberalization and

globalization.

Due to the phenomenal growth of Pune as an important region for education and

information technology, there is a great need for the Pune Municipal Corporation to play

a vital role to provide many amenities along with good city infrastructures. In addition to

it, Pune is now on World map because of the forthcoming new international airport at

Moshi region, further fast developing trade and commerce, the Pune Municipal

Corporation in this context is unique in its character.

2.5 OBJECTIVES OF THE STUDY

The main objectives of this research study are given as under:

1. To study the history of Local Self Government in respect of urban economic

development.

2. To analyze critically Geo-physical, Historical, socio- economIC aspects of the

development of 'Pune City' which comes under Pune Municipal Corporation.

3. To analyze the trends in developmental activities in Pune Municipal Corporation

and public involvement in them.

4. To highlight the future key factors in the process of development.

5. To pin point the problems of socio-economic development of Pune city and to

suggest remedies.

40

2.6 HYPOTHESES TESTED IN THIS RESEARCH STUDY ARE STATED

BELOW:

1. The Local Self Government has played a dominant role III socio-economic

development of a region.

2. The infrastructure facilities of Pune are conducive to socIo-economIc

development.

3. There is close relationship between infrastructural availability and economIC

development.

4. The socio-economic development of city is the outcome of efforts of voluntary

agencies, Local Self"Government and government administration.

5. Political Governance has positive relation with economic development.

2.7 RESEARCH METHODOLOGY

The research analysis is based on primary and secondary data.

A. Primary Data

The Researcher has analyzed the functions of PMC in context of the economic

development of Pune City and for the same the researcher has collected the primary data

through field work.

I. Selection of Pune City

Pune city is selected for the purpose of study on the basis of purposive sampling

method. Pune city is the home town of the researcher and hence the selection.

II. Selection of Zones

There are fourteen zones (Prabhag) with an average of nine wards in each. Out of

these Fourteen Prabhags four Prabhags were selected on the basis of

A. Geographic Location

B. Demographic Features

C. State of development of particular ward.

The researcher has selected four Prabhags (Zones) on the basis mentioned above.

These Prabhags are located East, South, West and North part of Pune having different

characteristics such as residential Zone, Industrial Zone, Commercial Zone; Table 2.1

gives the details of the same.

41

Sr. Zone Name of the No Number Prabhag

1 6 Hadapsar

2 1 Aundh

3 12 Tilak Road

4 8 Sangamwadi

Total source

Table 2.1 Selection of Zones

Geographical Location

East

West

South

North

Source: PYlC Record

Sample size

1

1

1

1

4

The zone wise detail description is narrated in following paragraphs:

A. Hadapsar (Zone No 6)

Basis

Industrial

Residential

Commercial

Residential

Hadapsar is an area of industrial concentration whereas Aundh and Sangamwadi

are mainly residential hubs. Whereas, Tilak road ward is a commercial area. These

features have its impact on the population density as well as the availability of the

economic and social infrastructure.

It is located in the East. It is a new suburb of Pune close to Industrial belt of

Hadapsar with a railway line linking up to Miraj. It is famous as a marketplace for

vegetables and other agricultural goods where farmers directly sell these items. It is also

well known for two SEZs: Magarpatta city and Fursungi IT Park, have given Hadapsar a

new dimension of development. Up until 1980 Hadapsar was a small village surrounded

by farms. Hadapsar is also seeing a lot of real estate activity.

B. Aundh (Zone No.1)

Aundh is located in the west of Pune. It is the area where the researcher resides.

It was earlier known for its Chest Hospital. Now it is known for its posh localities

populated by software engineers. Since around mid 1990' s, it has developed significantly

as a residential area with proximity to the University of Pune and one of the Software

Technology Parks in India. It is a fast growing area in tenns of I.T companies,

International Schools, sports city, beautiful Pashan water tank, and High-rise apartment

buildings.

42

C. Tilak Road (Zone No 12)

It is located in the South of Pune city. It is generally known as the commercial

centre of Pune. It is well known also for Parvati on one hand and SP College on the other

hand. It has significant developments and it is the prime location in Pune city.

D. Sangamwaadi (Zone No)

Sangamwadi is located to the North of Pune. It is known as residential zone. It covers

Dhanovri, Vidhya Nagar, Yerwada and Deccan College Area. Deccan College is well

known educational institute, where as Yerwada prison and Yerwada gaon are important

centers.

III. Selectioir of Wards.

The selection of wards is done on the basis of purposive sampling method. The

researcher has obtained the primary information in respect of the wards and the zones.

The researcher has selected three wards from each four zones. The details are given in

Table 2.2

Table 2.2

Selection of wards -

Sr. Total

Selected Pecentage Selected zone No. of Name of Wards

No. Wards wards of selection

1 Hadapsar 11 3 27.27 1 ) Magarpatta

2) Hadapsar Gaon

3) Sadhana vidyalaya

2 Aundh 9 3 33.33 1) Pune university 2) ITI Aundh

3) Aundh Gaon

3 Tilak Road 10 3 1) Parvati Gaon 30.00

2) Dandekar pul-Dattawadi

3) Janata Vasahat

4 Sangamwadi 12 3 25.00 1) Yerawada Prison

2) Yerwada Gaon

3) Deccan college

Source: PMC Records

43

Vi. Selection of Corporators

The researcher has to undertake the research in respect of the role of PMC in

Urban Development in Pune for the period of 8 years from 2000-01 to -.2007-08

considering this time limit researcher has obtained the list of corporators from the

selected Wards/Prabhags. The researcher has contacted twelve corporators as shown in

table 2.3.

V. The Selection of Beneficiaries

The selection of the sample followed the population proportion to sample size for

each of the wards. Based on the random sampling method, in each ward, the first starting

point i.e., (i'voter ID number was selected and then based on the total population and the

number of starting points to be identified, intervals were calculated. Further, the interval

number was added to the first voter ID number to get subsequent starting points in the

same ward. This methodology was adopted for all the wards for selection of the starting

points. For example, if ward population is 10,000 and as per distribution of population in

the ward we select 20 starting points, the interval will be 500(i.e., population divided by

number of starting points) so the first starting point voter should have his voter ID

number between 1 and 500. Once the first voter was identified, suppose 240, based on

random numbers generated; the second voter selected would be 240+500=740. The third

voter would be 740+500=1240 and so on. Once the voter numbers of all starting points

in each ward were arrived at the specific voters' addresses, sex and age of all members of

household were taken from Pune Municipal Corporation. The specific addresses were

traced and 20 interviews were conducted at each starting point of a specific ward.

44

Sr. No. I--

1

2

...

3

4

Table 2.3 Selection of Corporators

Prabhag Ward

1. Magarpatta Hadapsar (42)

Hadapsar 2. Hadapsar Gaon (91)

3 Sadhana Vidyalaya (93)

1 .Pune University (26)

Aundh 2. Aundh ITI (31)

3 Aundh Gaon (27)

1. Parvati Goan (101)

Tilak Road 2 . Dandekar Pul-Dattawadi (103)

3. Janata Vasa hat (114)

1. Yerwada Prison Press (6)

Sangamwadi 2. Yerwada Goan (18) 1--

3. Deccan College (21)

Source: PMC record

The researcher has collected the list of voters from these selected twelve wards.

The Total number of voters of these wards is 1, 63,728 as per the census report of 2006-

07. It means the average number of voters is 13,644. The researcher has selected 240

voters from these twelve wards as indicated in Table 2.4 Thus the selection is based on

stratified random sampling. Out of the total Population of 1,63,728 from twelve wards the

selected sample 240. It comes to 0.15% per ward.

45

Table 2.4

Selection of the Beneficiary Voters

Sr. ~ otal Voter~/ Total Prabhag Ward Sample

No Beneficiaries Selected

1. Magarpatta (42) 14579 20

1 Hadapsar 2. Hadapsar Gaon (91) 13546 20

3 Sadhana vidyalaya (93) 12470 20 1 .Pune University (26) 14050 20

2 Aundh 2. Aundh ITI (31) 15488 20 3 Aundh Gaon (27) 13980 20 1. Parvati Goan (101) 12433 20

3 Tilak Road 2 . Dandekar Pul-Dattawadi (103) 14201 20 :'""J ... 3. Janata Vasahat (114) 11953 20 1. Yerwada Prison Press (6) 14986 20

4 Sangamwadi 2. Yerwada Goan (18) 12960 20 3. Deccan College (21 ) 13082 20

Total 163728 240

Source: PMC record 2006.

VI. Selection of the office bearers of the Pune Municipal Corporation

The main Stakeholders in Pune Urban Development are the elected

representatives, and Office-bearers. The details are given below.

A. Elected Representatives

The researcher has selected Four Zones for the purpose of study viz. Hadapsar,

Aundh, Tilak Road and Sangamwadi and also selected three wards each from these four

zones. Hence total number of selected Corporators is twelve.

Further the researcher has interviewed the dignitaries like Mayor, Deputy Mayor.

In addition to it following Office-bearers is also contacted by her. They were

served questionnaires and had a personal discussion with them to procure information

about urban development in Pune.

1. Municipal Commissioner

2. Municipal Secretary

3. Executive Engineer Public Works

4. Member of Standing Committee

46

5. Executive Engineer Electrical

6. Additional City Engineer

7. Asst. Commissioner for Town Planning

8. Asst. Commissioner for Slum Improvement and Social Welfare.

Thus the researcher has selected

A. Corporators 12

B. Mayor 01

C. Office Bearers 08

Total 21 -..

VII. Questionnaire

Three separate questionnaires are prepared, one each for the following groups:

1. Beneficiaries (i.e. voters) - citizens

2. Selected Corporators.

3. Office-bearers of Local-self Government.

First questionnaire is for selected voters. It covers the personal information of the

respondents along with the basic problems faced by them and the suggestions to the

problems and their views about implementation of policies of the Corporation for the

benefit of the citizens.

Second questionnaire IS for the Corporators. It covers his/ her personal

information, hislher role as a Corporator, hislher contribution to the development of the

city, hislher awareness of the problems of Pune City.

Third questionnaire is for the Office-bearers of Pune Municipal Corporation. The

researcher ascertained the views of office-bearers in respect of government policies for

the development ofPune city.

The information was collected from Municipal commissioner by the unstructured

interview method.

The researcher conducted a pilot survey to finalize the questionnaire.

47

B.SECONDARY DATA

The researcher collected the secondary data from following institutions and

libraries.

1. Pune Municipal Corporation

2. Offices of the Selected Zones

3. Tilak Maharashtra Vidyapeeth Library

4. Gokhale Deemed University Library

5. Spicer Memorial College Library

6. Yashvantra Chavan Development Academy Library -..

7. Pune University Library

C. STATISTICAL TOOLS

The researcher has used necessary Pie-diagram, bar diagram, charts, and Maps,

whenever necessary to analyze primary and secondary data.

2.8 TIME BUDGETING

The researcher concentrated on her study of role of PMC III economIC

development for the period of 8 years from 2000-0 I to 2007-08.

2.9 LIMITATIONS OF THE STUDY

The maximum efforts were made to have personal contact to get primary data

from Office-bearers of PMC. However the concerned office bearers may not be

contacted for any difficult situations.

The secondary is obtained from concerned offices with maximum cooperation

from these officials.

Time, money and energy of the researcher are the limitations in completing the

task.

48

2.10 THE CHAPTER SCHEME

This thesis consists of eight chapters.

First chapter is the introduction giving conceptual frame work of the research topic

along with the brief account ofPMC as Local Self Govemment.

The Second Chapter explains the research methodology, objectives of the study,

hypothesis of the study along with review of related literature.

The Third chapter gives the history of Local-Self Government. -

The Fourth Chapter is the analysis of geo-physical, historicarand socio-economic

aspects of Pune City.

The Fifth chapter highlights the views of citizens in Pune in respect of the role of

Local Self Government in Urban Economic Development.

The Sixth chapter explains the perceptions of the Corporators and Office Bearers as

the Stakeholders in Urban Economic Development.

The Seventh chapter explains the evalution of the achievements of PMC in respect

of Urban Economic Development ofPune city.

The last chapter gives summary of findings and recommendations along with scope

for further research.

49

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52