Wednesday, August 29, 2007

Artificial City.

India-shining is undoubtedly the 'Tree' whose seeds were sown almost a decade ago. The BPO revolution caused by opening India's market to foreign investment and successive disinvestment spree of govt owned corporations has lead to asymmetrical growth of indian economy. There should be no reason why Indian govt feel contented for the current economic growth because what they kept doing was not far-sighted prudent decisions but the no-other-option-way or common-sense approach of handling things. Opening up the market in 1991 was not owing to far-sighted expertise of indian govt, rather it has been tremendous pressure from WTO and USA. Indian textile export to developed market was on the verge of getting shut, so the only-option-left was to open up the market.

It coincidently happened that IT revolution boomed in world arena and india proved to be the cost-effective destination for IT companies. This resulted in outsourcing back-end business processes to India. Not many cities had good-enough infrastructure, so IT companies basically mushroomed around four metros. Later on, Special economic zone policies were promoted by central and state governments. This resulted in forming new cities.. the artificial cities... The reason why I call them artificial is.. Such cities do not possess proper population density in it. Such cities have many high-earning professionals and many ultra-low class people who cater to doing menial tasks. These cities miss the middle class crowd which is very essential for economic sustenance of any place. Due to high percentage of high-earning professionals (henceforth called high class), such places become costly for no reasons. In general, a natural city, like mumbai, kolkata, delhi etc has small percentage of high class, small percentage of low class and very high percentage of middle class. Owing to this, living cost at such places doesn't shoot up generally.

Crime rate at artificial cities are generally high as compared to natural cities. This is owing to inherent human nature of jealousy and frustration. In artifical city, a very low class individual from local village always witnesses very high class people and feels wreteched and frustrated. If he happens to be juvenile youth, no other reason he seeks to commit crime. Economic asymmetry at artificial cities are mainly cause of extra-inflation, and high-crime rate prevailing at such places.

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