July 29, 2011

A tale of two cities: How Bangalore is losing out

When two nations started upgrading one of their cities, one nation aimed to make it an industrial & manufacturing hub, the other aimed to upgrade it to be their only and biggest IT hub. Coincidently, both these cities are located at the south of the respective nations. But then, one nation chose a port city (to exploit the sea trade), while the other ignored the very economy of sea and chose a landlocked city. One has a land size of 7,434.4 sq km with a population of 9.94 million while the other has an expanse of 741 sq km but has a population of 5.7 million. These two nations are none other than the favourite choices of economic critics – China and India. While China went ahead with Guangzhou on their industrial spree, India settled down for Bangalore to make it India’s biggest IT hub. Both Bangalore and Guangzhou laid their founding stones in the early 90s, and by the end of 20th century, had established themselves as an IT and industrial hub respectively. But then, the differences between and effective output by both these hubs now are more startling than their similarities.

China has always been of high interest to me since my childhood due to the books on Mao Tse Tung that I had read. However, the surge in interest came when I went to China for the first time. The way the nation hits you is stupendous! If you were not to know which country you had come to – and if you were not even shown how the people looked – then looking at the roads and buildings, you could easily mistake it for any Western developed nation, quite unlike India or its best cities like Bangalore. And Guangzhou has been at the very centre of this mind numbing development. To put the difference between the two cities into a better perspective, in the 2010 Pricewaterhouse Cooper’s Global GDP City Ranking Index, Bangalore ranks 84th with a GDP of $69 billion while Guangzhou ranks 44th with a GDP of $143 billion – almost twice that of Bangalore. Let’s take a look into the journey of these two cities on the basis of some key parameters to bring about the key differences.

China developed Guangzhou into its most efficient and dynamic industrial hub with a GDP of $143 billion and a per capita income of $13,111. Women’s employment rate in Guangzhou was 70.84% in 2010 (which increased by three fold since the last one decade) and around 2.5 million urban women are working in the city. Women constitute 40 percent of the total workforce. Better lifestyle and financial freedom also escalated the social fabric of the city. The most important factor, when it comes to women development, was that the life expectancy rate is now pegged to have reached 81.33 years (again, an increase by 4.5 years in the last one decade). Even the education rate has seen a major surge; more than 49 per cent of total graduates are women and can be seen actively working in the health, science, technology and education sectors.
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29 comments:

SudiptoatLarge said...

Dear sir, I wish to report a violation of ethical conduct and dishonesty in your organization, Planman Realty. can you let me know to whom I should address my mail?
Thanks,
Sudipto Mukherjee

Aggarwal Kunal said...

@Arindam Choudhary, It seems you always criticize your own country. You, yes you always speaks and does nothing

Anil Kumar Singh said...

How to crack CAT in one year.

vijaykumar said...

Over 168 Japanese, Chinese, Korean, Thai Buffet Items in an all you can enjoy special

sujit said...

You have to hand it to the Chinese. They have a multi-stage long-run business strategy for China Inc. that is working to perfection. It is amazing that a group of former Communists have applied ‘modified free market’ strategy far better than the American blueblood capitalists, and have created an economy whose size will overtake America’s far sooner than we believed or expected.

vijaykumar said...

World Mobile News ZipDial showing how to cash in on missed calls: Bangalore-based start-up ZipDial is base...

sujit said...

According to the purchasing managers' index released by HSBC bank in July, Chinese manufacturing activity has been declining this year and is likely to decline further in the third quarter.

Technology Journal said...

Theory of timeline.

I think the factors of production and the infrastructure of India is moving forward but the people are moving backward.

All the Indian news confirms this. Sir you talked a lot about developing India and its poor, but what about teh mental health of people in India,
can it be improved by using revital.

People of cities are as hostile as their counterparts in hinterlands. I have experienced serious rascism in many parts of India's so called cosmopolitans.

May be you are well known and respected for your ideas.

pramod singh kandasi said...

On the broader issue of China-India relations, Dai and Menon reviewed the all-round and rapid growth of bilateral relations since the beginning of the century, agreeing to make concerted efforts to boost the bilateral strategic cooperative partnership that benefits the two nations.

Sunil Bhardwaj said...

The best of times: Bangalore is emerging as the software capital of the world while Shanghai is already the hardware factory of the world.

pramod singh kandasi said...

India and China have made progress on greater bilateral investment and market access when Indian Prime Minister Manmohan Singh and Chinese President Hu Jintao met for at a high profile meeting on Thursday morning in Brazil’s capital city of Brasilia.

pramod singh kandasi said...

I do not think India should try to "grow as rapidly as China." Growth is not just an economic issue. Growth has to be aimed within a relevant country context. India has its own unique past, a very different present, and will chart her own version of the future. In that future, the most critical component is to keep democracy safe.

Sunil Bhardwaj said...

Exactly 145 years later, the high-tech world is looking at the unfolding tale of two cities, Bangalore and Shanghai. Like Dickens' introduction to his novel, it is the best of times for Bangalore and Shanghai. The two cities are like yin and yang. They are as different from each other as they are similar. And they are in a great rush to catch up with the First
World.

pramod singh kandasi said...

At least in the next few years, India is unlikely to grow as fast as China. China leads India in foreign investment, a key contributor to economic growth, by a margin of 10 to 1, because foreign investors, who can place their money anywhere, see more opportunities and less obstacles in China.

ANUP KUMAR said...

"I won't be gone again, in this manner. I am as rickety as a hackney-coach, I'm as sleepy as laudanum, my lines is strained to that degree that I shouldn't know, if it wasn't for the pain in 'em, which was me and which was somebody else, yet I'm none the better for it in pocket; and it's my suspicion that you've been at it from morning to night to prevent me from being better for it in the pocket, and I won't put up with it, Aggerawayter, and what do you say now!"

pramod singh kandasi said...

India is waking up and catching up fast. I will not be surprised to see India having a higher rate of growth. However, it will be hard for India to catch up with China on the size of its market and the absolute size of its growth. China dominates in manufacturing and has the market size and spending power domestically. India is strong in technology/IT services, which may be high value but not high volume. However, this can change as India starts to get into production and as Chinese companies start to buy Indian companies and set up production in India.

subhash said...

Bangalore's MG Road is one of the busiest roads. Earlier known as South Parade, MG Road or Mahatma Gandhi Road was the heart of Bangalore Cantonment. The British garrison was housed closeby pre-independence and the mounted soldiers would take their customary outing along South Parade every Sunday evening. Also the odd car that went past ! My parents, now in their 49 th year of marriage, loved to watch as a young married couple. And my grandfather was a regular at the Plaza and the Ham Shop. Both grandpa and dad recounted descriptive stories of the tall, British soldiers and their uniforms as they bought tickets for the movies.

pramod singh kandasi said...

India will continue to lag until governmental leaders further open their eyes to the lesson of China and accelerate the economic reform process. That is happening, but it takes time. India must further the reforms in order to attract foreign direct investment. They are far behind. That FDI brings in talent and technology and expertise, easily as important as the capital itself.

sujit said...

Mercer Survey and other impromptu interviews conducted across India declare Bangalore as the best Indian city to live in. We can see scores of Indians discussing on popular blogs in the ever expanding virtual world that they would prefer to live in Bangalore any given day. Bangalore emerges on the top slot towering over other industrial/IT hubs of the country like Hyderabad, Delhi and Gurgaon.

simran said...

To writer Rudyard Kipling, Kolkata was “The City of Dreadful Night”. To novelist Dominique Lapierre, it is “The City of Joy”, and to architectural conservationist Manish Chakraborti, it is “The City that Needs Saving”.

simran said...

To writer Rudyard Kipling, Kolkata was “The City of Dreadful Night”. To novelist Dominique Lapierre, it is “The City of Joy”, and to architectural conservationist Manish Chakraborti, it is “The City that Needs Saving”.

harvinder said...

It highlights the slow pace of urban research in India even after Patrick Geddes report on planning in six Indian cities in 1915.

simran said...

To writer Rudyard Kipling, Kolkata was “The City of Dreadful Night”. To novelist Dominique Lapierre, it is “The City of Joy”, and to architectural conservationist Manish Chakraborti, it is “The City that Needs Saving”.

pramod singh kandasi said...

India can accelerate its growth rate if its manufacturing sector makes a larger contribution. For this to happen, several policy changes have to be made. The two key ones, to my mind, are labor market reforms -- labor market regulations currently hobble manufacturing, while leaving services relatively unscathed -- and the facilitation of investment in infrastructure, particularly power and transport.

pramod singh kandasi said...

India can accelerate its growth rate if its manufacturing sector makes a larger contribution. For this to happen, several policy changes have to be made. The two key ones, to my mind, are labor market reforms -- labor market regulations currently hobble manufacturing, while leaving services relatively unscathed -- and the facilitation of investment in infrastructure, particularly power and transport.

preeti said...

The promise of rice for Re 1 a kg during the 2006 assembly elections in Tamil Nadu lured most of the labourers back to their villages. We were forced to look for labourers from Orissa and Bihar. Now, with freebies galore being promised by parties contesting the upcoming Tamil Nadu assembly election, the remaining workers from the state are also likely to leave,” said Santosh V, a land developer.

sailaxmi said...

Very demoralizing, but bitter truth. Let's keep up our strategic and motivated planning in our own businesses and the change is inevitable in years to come.

sailaxmi said...

Not only Bengaluru whole karnataka...... has been polluted due to this state govt. As a localate i agree that this BJP govt. is the worst govt. that not only Karnataka but whole India had never seen....... This silly yadurappa...... has thought govt. is his own property.... This fool sheds tears like woman to give up power....... These people are the real terrorists...... WhY dont this karnataka political parties learn to rule by looking at Gujarath govt.....its realy shame.... On ourself to ellect these people as our leaders..........

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