SHAPING THE FUTURE HOW CHANGING DEMOGRAPHICS CAN POWER HUMAN DEVELOPMENT

BOX 6.3:
Developing Delhi’s metro rail system
The Delhi metro rail system provides an interesting
example of how mass transportation systems are
being developed and managed in major urban
centres of developing Asia. Construction for the
railway system began in the mid-1990s and over
two decades encountered various technical challenges,
such as the need to tunnel under old, fragile
buildings and avoid disruptions to the mobility of
residents, as well as political hurdles involved in
resettling residents and reimbursing landowners.
Today the 216-kilometre rail system consists of
modern, air-conditioned, eco-friendly trains. With
160 stations, the system connects the busiest parts
of the city, including the international airport. Plans
call for extending it to suburban areas through
express lines.
A successful public-private partnership was key to
securing funding for the project. The Government
of India formed the Delhi Metro Rail Corporation
(DMRC) to oversee implementation and financing.
Most funding came in the form of low-interest loans
from the Japan Bank for International Cooperation
and the Japan International Cooperation Agency,
with matching grants from the governments of
Delhi and India. Up to 15 percent of funding was
derived from a ‘value capture’ scheme, where the
Corporation drew some proceeds from commercial
property development around metro stations.
The DMRC has been recognized for pioneering
the world’s first metro system to purchase carbon
credits. These help to reduce greenhouse gas
emissions by 0.63 million tons every year, on top of
reductions from vehicles taken off the streets due
to the new public transport system. All stations have
energy efficient buildings; several are powered
with solar energy.
Source: Delhi Metro Rail Corporation Limited 2016, Siemens Report 2014.
better tax assessment and collection practices.
They can ensure more equitable distribution of
public resources, and plan more systematically
for infrastructure investment, operations and
maintenance. Those at more advanced stages
can explore alternative instruments of finance
to increase fiscal self-reliance, such as user fees,
real estate taxes, municipal bonds, land-based
financing instruments, development impact
fees and public-private partnerships (Box 6.2).
Promote inclusiveness. Urban exclusion, social
or otherwise, is a critical impediment to
human development in cities. Conscious and
comprehensive analysis of patterns of exclusion,
which can be gained in part through engaging
directly with excluded groups, needs to inform
urban planning, development and investment
strategies. When excluded groups play key roles
in making decisions on these, such as through
community-based budgeting and similar exercises,
the actions that result may be better suited
to meeting their needs, doing more to reduce
exclusion and enhance human well-being.
Every effort should be made to integrate
all marginalized people, who may include rural-urban
migrants, slum dwellers, youth, older
people, women and girls, and people with
disabilities, among others. All urban residents
should be able to access essential services and
decent work, which initially may require targeted
spending, for example, on infrastructure that
closes longstanding gaps in transport, and access
to water and electricity. Street lights can help
reduce instances of gender-based violence and
harassment. Repairing potholes and installing
ramps on sidewalks ease access for the disabled
and elderly. The fact that gender pay gaps are
often wider in urban areas 12 suggests scope for
awareness campaigns, engagement with employers
and enforcement of anti-discrimination
statutes, and may also indicate a need for the
provision of services such as childcare that reduce
the burdens of unpaid care work.
Build more environmentally sustainable cities.
The environmental and other costs of poorly
managed urbanization can be excessive and difficult
to reverse, making it far more cost-effective
to plan now for sustainable urban development.
Forward-looking environmental, social and
economic policies need to be central to urban
development agendas. These can be designed
through citizen participation, and aim for inte-
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