Business Standard
Saturday, May 26, 2012
Sponsored by  
drived banner
drived banner
  Advanced Search
RSS
Content Guide
Follow us on  
|||||Opinion|||| 
 Section Home | Editorials | Compass | BS People | Columnists | Lunch with BS
Home > Opinion & Analysis Live Markets | Commodities
 

Sanjeev Sanyal: Can Mumbai be our Global Champion?
The city must now choose between two very different futures
Sanjeev Sanyal / Feb 10, 2010, 00:54 IST

To whom does Mumbai belong? This is a question that has simmered for years and has now blown up into a major national controversy. For Mumbai, it is a question that is fundamental to its very existence as India’s pre-eminent financial, commercial and cultural hub. At a time that India is re-emerging as a major player on the world stage, its response to the above question will decide whether Mumbai will run with Singapore, New York and London or will languish as tomorrow’s Kolkata. The slope is slippery.

The age of global cities
The world is not flat as Thomas Friedman would have us believe. It is spiky, with large concentrations of population and economic activity clustered around a network of cities. These cities act as inter-connected nodes in the social, economic and cultural network that characterises the post-globalisation world. At the pinnacle of the hierarchy of cities are a handful of “Global Cities”. These hubs have become so important that the 21st century will probably be known as the “Age of Global Cities”. Indeed, it can be argued that London is today more important as a centre of finance and commerce than it was during the height of British Empire.

Most leading global cities of today are in the West — most notably London and New York, but also smaller hubs like San Francisco, Boston and Paris. However, there are now centres like Singapore and Hong Kong in Asia, as well as new competitors like Shanghai. A country derives enormous economic advantages (not to mention cultural influence and soft-power) from being host to a global city. As an aspiring world power, India needs its own global city.

What makes a successful global city?
In recent years, researchers have studied the phenomenon of global cities and have tried to explain their success. Each city has its special advantages — good universities, location, historical links, institutions and so on. However, a common theme is their openness to new ideas, external cultural influences and “outsiders”. Imagine New York without the waves of immigrants – Irish, Italian, Jews and, more recently, Asians and Latin Americans. Similarly, consider the relative trajectories of Tokyo and Singapore.

Till the early 90s, Tokyo was the most important urban hub in Asia. It was miles ahead of Hong Kong and Singapore. Yet, Tokyo is today merely a large Japanese city that has little influence on the rest of Asia. We cannot just blame this on Japan’s economic decline. After all, London has survived Britain’s decline to remain the world’s premier financial hub.

In contrast to Tokyo, tiny Singapore has self-consciously attracted foreign talent, invested in culture and created international linkages. The results are plainly visible. Singapore is not just one of the world’s largest ports, it is a formidable centre for banking/finance, education and even medical treatment. Once considered too straight-laced, it now enjoys the most vibrant night-life in Asia (sorry Hong Kong). More than 10 million foreign tourists visit it every year — double the number received by India, a country with 250 times the city-state’s population.

The decline of Kolkata tells the same story. Till the mid-60s, the city was the most important cultural, intellectual and commercial centre in India. Its industrial hinterland was the largest in Asia, excluding Japan. The city was a multi-cultural mix of Bengalis, Marwaris, Biharis, Anglo-Indians, Europeans, Jews and Armenians. It even had a vibrant China-town. However, attitudes changed from the 60s — multinationals were squeezed out, new technologies were discouraged and the teaching of English was banned. Even the works of Rabindranath Tagore could only be performed according to strictly-prescribed formulae. The result was not a renaissance of Bengali culture. Instead, Bengal has never again produced individuals of the calibre of Tagore, Satyajit Ray, Vidyasagar, Vivekanand or Subhash Bose.

The lessons of Kolkata are important for Mumbai, especially since its own rise was partly helped by its rival’s decline in the 60s. Many of the companies that drive Mumbai’s current success were originally headquartered in Kolkata, and, in some cases, are still registered there. The self-proclaimed protectors of the Marathi Manoos may want to consider what happened to the Bengali Bhadralok. Today, the Bengali middle class (including me) lives in “exile” in Bangalore, Delhi-Gurgaon, New York, London and even Mumbai. We were not exiled by foreign rule or by the invasion of migrants but by close-mindedness and the lack of imagination.

Our heavy-weight champion
Two generations after it lost its empire, London allows Britain to have a disproportionate influence on international matters. China already has two serious financial centres in Hong Kong and Shanghai. Its capital Beijing has been an Olympic host. If India wants to play on the world stage, it needs at least one heavy-weight global city that can be a financial and cultural nerve centre. Mumbai is the obvious candidate with its combination of financial muscle and Bollywood. With just 1.6 per cent of the country’s population, the city dominates India’s economic and cultural life.

Mumbai’s future is part of national strategy and we cannot allow local politics to derail it.

Nonetheless, we should recognise that legitimate local aspirations need to be accommodated. This is not just an issue for Mumbai. We are entering and era of rapid urbanisation that will see 350 million people absorbed into urban India in the next three decades. Frictions between locals and migrants will soon arise in Bangalore and Gurgaon, and eventually even in Lucknow and Patna. We need to create mechanisms that help the “locals” compete in the rapidly-changing urban environment (for instance, by investing in vocational training), while at the same time making it clear that street violence will not be tolerated.

I hope that Mumbai will eventually make the right choice. If not, the mega-city of Delhi-Noida-Gurgaon will have to take on the burden of becoming India’s heavy-weight champion. Perhaps, Kolkata will grab the opportunity to make a comeback!

Sanjeev Sanyal is the author of The Indian Renaissance: India’s Rise after a Thousand Years of Decline, published by Penguin

New Ipad Application :Business Standard's all new IPad App
Click here to download for free
Arrow Other Stories     
- Markets end flat
- SAIL to add 5 mn tonne capacity in FY13
- NHPC FY12 net up 28% at Rs 2,772 cr
- Aarti Industries Q4 up nearly 27% at Rs 28.24 crore
- BPCL posts four-fold jump in Q4 net at Rs 3,963 cr
  Read Business news in 
- Journey on, We are by Your Side. Click here to know more
- Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol.
- The Best Seller is Also the No. 1 in Mileage. Click here
- Watch The Film Here. Click here to know more..
- Leader in Passenger Car & Automobile Tyres. Click here
- 1 billion in saving for Unilever without any tangles.
- A Brand New Server at a Price That Fits Your Budget. Click here
- Learn How One City is Running on FOOD SCRAPS.
- One Partnership Endless Possibilities. Click here to know more
- Helping doctors detect diseases earlier, saving costs & extending lives.
- 36 Lakhs can get you a pool of Luxuries. Click here
- Which is the best plan for your daughter
- Check out the TRUE COLOURS of your Stocks, Now for FREE!
- One of the leading business schools in the world.Know More
- Invest in Real Estate. Villas in Bangalore starting @ Rs.66 lacs
Sorry, comments to this story are closed
Latest Messages
Posted by: ritu
I am marathi myself.I dont think so Shivsena represent me.I am not senti about marathi language but it isnt mean i do havent had issue with immigration.Why cant immigration take place without increase in slum area, increase in crime rates? I dont think so marathi people wont welcome people from outside if these two huge issues are avoided successfully.Mumbai already is 80% slum.There is some limit to our tolerance.Wont you go mad if Kolkatta become 80% slum?
Posted by: viksdes
This is once chance India can't afford to loose. City's make the nations international image, Mumbai stands far taller in terms of it's hardworking and a bit more disciplined citizens ( both Marathi manoos and non Marathis included ). Openess of mind and acceptance to ideas has never been our strongest forte as civilization. We let that trait behind a long time back.
Posted by: sanjay
Very well said. I am a maharashtrian and feel sorry for the attitude of rigional political parties. This will lead into diminishing value of mumbai and soon other cities would take over. I belive other cities also should grow but not at the cost of growth of mumbai. This will help our nation to grow faster. But as a maharashtrian i would like marathi to be heared in mumbai which has alomost lost its base. Hindi has taken over marathi. I think mumbaikars should learn and start speaking marathi. But obviously violence is not the key to drive this.
Table for Two
  Now available at Special price
  Rs.280/- Only

  Buy Now
BS POLL
UPA 2 has completed three years. How do you rate its performance?  Read the story
  Good
  Average
  Bad
Submit
Most Popular
Read
E-Mailed
Commented
   
- Reddy rules out rollback of rise in petrol prices
- Ajit Singh meets striking pilots
- IPL on turning track, broadcast revenue down by a third
- FIIs bet heavily in Indian market, but in Singapore
- No country for easy skill development
 
 More  
Tax Shastra
  Now available at Special price
  Rs. 360/- Only

  Buy Now
  Hot Searches  
 
Apalya |  Air India |  GAAR |  Agni  |  Solar eclipse |  Satyamev Jayate |  SRK |  Aamir Khan |  IPL |  Ertiga |  Sarfaesi Act |  Vodafone |  JP Morgan |  Transfer pricing |  Rupee |  Kingfisher Airlines |  Silver |  Provident Fund |  income tax refund |  iPhone |  Reliance Industries |  SEBI |  BSNL |  BSE |  NSE |  Mukesh Ambani |  Anil Ambani |  Infosys |  Pranab Mukherjee |  Sonia Gandhi |  Rahul Gandhi |  New Pension Scheme |  Reliance |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |  B-School |  Sensex |  Tax calculator |  Home Loan |  Personal Finance |  inflation |  oil prices |  Barack Obama |   
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring BS Books
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World | General News
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Contact Us