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Smart Economy in Smart Cities

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Smart Economy in Smart Cities

Part of the book series: Advances in 21st Century Human Settlements ((ACHS))

Abstract

Emerging patterns of urbanization world over show differing scenarios in different continents, requiring diverse approaches, policies, and strategies. Amazing democratization of ICT around the world leads to a discussion on sustainable, resource-conserving, and resilient smart cities, and smart city economic development appropriate to different cities, countries, and continents. It can be possible that each city in a particular country and continent may possess differing challenges to smart city economic development. When ancient rural economy gives way to urban economy, which contributes a major share of national domestic product, the emerging question is what constitutes smart city economic development. How is it different from conventional urban economy? Is the theory and practice of conventional urban economy valid in a smart city economy or is it necessary to investigate newer theory and practice of smart city economic development? What is a food shed in a smart city economy in smart cities? What a smart city industry looks like? What constitutes smart city commerce services, transportation, and communication, and how they impact on smart city economy? How do smart cities fit in the urban dynamism and policy dialogue at the global, regional, and national levels? Can smart cities and smart economy be socially inclusive? How to strategize social inclusion in smart city development? What sort of governance and institutional support would smart cities require to fulfil their role with regard to smart economy? What may constitute a Sustainable Model of smart cities economic development, and what may be Smart Cities Standards? These are some of the questions addressed in this chapter.

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Authors and Affiliations

  1. Department of Architecture, National Institute of Technology-Calicut, Kozhikode, India

    T. M. Vinod Kumar

  2. Social Research Institute (CUSRI), Chulalongkorn University, Bangkok, Thailand

    Bharat Dahiya

Authors
  1. T. M. Vinod Kumar
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  2. Bharat Dahiya
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Correspondence to Bharat Dahiya .

Editor information

Editors and Affiliations

  1. School of Planning and Architecture New Delhi (SPA-D), Calicut, Kerala, India

    T. M. Vinod Kumar

Appendices

Appendix 1

1.1 ICT Indicators for Economic Sectors

ICT use in government: Generally, Governance System is resistant to change unless great visionary politician rules the democratic institutions with absolute majority. This is very much exhibited by the fact there are many Administrative Reform Commissions, but only a fraction of recommendations are implemented in many countries. Progress of ICT use in government can be studied by the following indicators.

  1. (1)

    Number of ICT specialists employed in government works.

  2. (2)

    The number of electronic devices used in government.

  3. (3)

    The number of personal computers connected to the Internet in government offices.

  4. (4)

    The number of Internet users in government.

  5. (5)

    The percentage of institutions with Internet connectivity in all institutions.

  6. (6)

    The share of investments and expenditures for ICT products and services in total investment and expenditure.

  7. (7)

    Investments and expenditures for ICT products.

Observation of the economic and financial indicators illustrates the increases/decreases in quantitative and qualitative indicators of the smart city economic development. It is important to watch how ICTs are used for the sale and purchase products online products and changing turnover due to online sales. Growth is indicated in India by Flipkart infusing US $1 billion and Amazon India infusing US $2 billion in e-commerce business in India in later half of 2014.

Educational Sector also contributes to smart city economy. Education sector includes both educational institutions in the public and private. The calculation of indicators of urban economy in educational sector will take into account of all three levels, namely primary, secondary, and tertiary. Further, there shall be provision for continuing education for smart city citizen. The indicators that measure the progress of smart city economy in education sector are the following.

  1. (1)

    The number of PCs per 100 students.

  2. (2)

    The number of PCs connected to the Internet per 100 pupils and students.

  3. (3)

    The education institutions connected to the Internet in total number of educational institutions.

  4. (4)

    The number of students using Internet.

ICT in Public Health Sector: The use of ICT in public health sector can result in growth of smart city economy. The number of persons employed per hospital bed is generally on a higher side than large and medium industries and certain capital-intensive small industries, and therefore, health sector contributes to smart city economy in a great deal. By implementing the health sector of new electronic communications services will achieve an increase in efficiency, with lower costs. Health sector growth of smart city economy can be measured in the following indicators.

  1. (1)

    The number of ICT equipment used.

  2. (2)

    The number of personal computers connected to the Internet.

  3. (3)

    The number of medical institutions sharing Internet connection in all institutions.

  4. (4)

    The share of investments and medical expenses for ICT products and services in total investment and expenditure.

  5. (5)

    Investments and expenditures for ICT products used in health sector.

ICT in Household Sector: Analysis is also needed for the household sector and influences the degree of development of settlements. The indicators are:

  1. (1)

    Share of households with fixed telephone and mobile.

  2. (2)

    Share of households owning personal computers connected to the Internet in total households.

  3. (3)

    Share of total household expenditure on communications.

ICT in SME Sector: Another important employment generator in smart city economy is SME sector. It is important to watch how ICT products are used there.

  1. (1)

    Share of enterprises that have personal computers.

  2. (2)

    Share of employees using personal computers.

  3. (3)

    Share of enterprises with Internet access.

  4. (4)

    Share of the number of employees using the Internet.

  5. (5)

    Share of enterprises with website.

  6. (6)

    Share of enterprises that sell via the Internet.

  7. (7)

    Share of enterprises purchasing on the Internet.

Tourism and heritage (both cultural and natural resources) are another component of smart city economy which contributes to income growth. The related indicators are as follows:

  1. (1)

    Share of cultural institutions holding personal computers.

  2. (2)

    Share of employees using personal computers.

  3. (3)

    Share of cultural institutions with Internet access.

  4. (4)

    Share of employees using the Internet.

  5. (5)

    Percentage of institutions of cultures with website.

  6. (6)

    Share of cultural institutions that sell over the Internet.

Tourism sector generates large revenues, which make this sector a pillar of economic development in smart cities, and hence the implementation of new ICTs.

  1. (1)

    The percentage of tourism that have personal computers.

  2. (2)

    Share of employees using personal computers.

  3. (3)

    Share of employees using the Internet.

  4. (4)

    The percentage of tourism industrial units with website.

  5. (5)

    The percentage of tourism that provides services via the Internet.

Similar ICT indicators can be developed for key economic sectors of smart cities.

Source: Authors

Appendix 2

2.1 Composition and Functions of Metropolitan Planning Committee (MPC) in India

Article 243ZE. Committee for Metropolitan Planning.

  1. (1)

    There shall be constituted in every metropolitan area a MPC to prepare a draft development plan for the Metropolitan area as a whole.

  2. (2)

    The Legislature of a State may, by law, make with respect to

    1. (a)

      The composition of the MPCs;

    2. (b)

      The manner in which the seats in such Committees shall be filled:

Provided that not less than two-thirds of the members of such Committee shall be elected by, and from among, the elected members of the Municipalities and Chairpersons of the Panchayats in the, Metropolitan area in proportion to the ratio between the population of the Municipalities and of the Panchayats in that area;

  1. (a)

    The representation, in such Committees of the Government of India and the Government of the State and of such organization and institutions as may be deemed necessary for carrying out the functions assigned to such Committees;

  2. (b)

    The functions relating to planning and coordination for the Metropolitan area, which may be assigned to such Committees;

  3. (c)

    The manner in which the Chairpersons of such Committees shall be chosen.

  1. (3)

    Every MPC shall, in preparing the draft development plan,

    1. (a)

      Have regarded to:

      1. (i)

        The plans prepared by the Municipalities and the Panchayats in the Metropolitan area;

      2. (ii)

        Matters of common interest between the Municipalities and the Panchayats, including coordinated spatial planning of the area, sharing of water and other physical and natural resources, the integrated development of infrastructure, and environmental conservation;

      3. (iii)

        The overall objectives and priorities set by the Government of India and the Government of the State;

      4. (iv)

        The extent and nature of investments likely to be made in the Metropolitan area by agencies of the Government of India and of the Government of the State and other available resources whether financial or otherwise;

    2. (b)

      Consult such institutions and organization as the Governor may, by order, specify.

  2. (4)

    The Chairperson of every MPC shall forward the development plan, as recommended by such Committee, to the Government of the State.

Functions of MPCs are as follows:

As per 74th Constitution Amendment Act legislature of the State may, by Law, make provisions regarding functions relating to planning and coordination for the metropolitan area that may be assigned to MPC. Accordingly, it is suggested that the following functions may be assigned to MPCs:

  1. (i)

    Preparation of Draft Development Plan for Metropolitan Area.

  2. (ii)

    Coordination of plans prepared by the Municipalities and Panchayats in the metro area including coordinated spatial planning of the area.

  3. (iii)

    Coordination and sorting out of common issues involving Panchayats and Municipalities in the metro area including sharing of water and other physical and natural resources.

  4. (iv)

    Allocation of resources made available by the state and central government to local-level institutions.

  5. (v)

    Phasing and prioritization of development works or works involving number of Panchayats or urban area.

  6. (vi)

    Advice and assistance to local bodies in preparation of development plans.

  7. (vii)

    Serving as a link to disseminate development objectives, policies, and priorities of Central and State Governments among various local bodies by formulating operational guidelines so that the same may be considered while preparing plans of the respective local bodies.

  8. (viii)

    Resolution of conflicts and to avoid areas of overlap between different agencies operating in the metropolitan area.

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Vinod Kumar, T.M., Dahiya, B. (2017). Smart Economy in Smart Cities. In: Vinod Kumar, T. (eds) Smart Economy in Smart Cities. Advances in 21st Century Human Settlements. Springer, Singapore. https://doi.org/10.1007/978-981-10-1610-3_1

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