INDIAN URBAN POVERTY - WHERE ARE THE LEVERS FOR ITS EFFECTIVE ALLEVIATION

This article reviews the literature on the causes of urban poverty in India, and explores possible policy responses. According to the author , urban poverty programmes have failed to address the most important m echanism through which urban poverty can be reduced: the general proce ss of social and economic development. Municipalities have an importan t role to play in providing a basis for this development: creating con ditions that facilitates economic growth (including law and order), pr oviding health and education, and improving the local environment. To do this, municipalities require access to revenues, a taxation system that rewards them for good performance, the right political coalitions , and commitment to work with the private sector and NGOs.