The effect of Globalization on Mumbai Chaitik Doshi F09074 Contents Introduction2 Mumbai ??? A Cultural Diversity3 A Brief History4 A Glocalised World5 Mumbai Urban Infrastructure Project6 Navi Mumbai International Airport11 Mumbai ??? A Global Financial Hub13 A Dangerous City to Live In14 Mumbai 2020: A Vision17 References18 Introduction Globalization has been an integral part of India’s progress. It has opened up new avenues for growth. One of the biggest impacts of globalization has been to IT (Information Technology) and BPO (Business Process Outsourcing) sector.
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These two sectors have progressed at never before pace. Key reasons for this is easy and cheap availibilty of skilled workforce with English speaking and technical expertise. Big enterprises have found it economically feasible to set up operations in India due to technologies like VOIP, internet, email etc. As a new Indian middle class has developed around the wealth that the IT and BPO industries have brought to the country, a new consumer base has developed.
International companies are also expanding their operations in India to service this massive growth opportunity. Notable examples of international companies that have done well in India in the recent years include Pepsi, Coca-Cola, McDonald’s, and Kentucky Fried Chicken, whose products have been well accepted by Indians at large. Globalization in India has been advantageous for companies that have ventured in the Indian market. Population has worked to their advantage. By imply increasing their base of operations, expanding their workforce with minimal investments, and providing services to a broad range of consumers, large companies entering the Indian market have opened up many profitable opportunities. Indian companies are rapidly gaining confidence and are themselves now major players in globalization through international expansion. From steel to Bollywood, from cars to IT, Indian companies are setting themselves up as powerhouses of tomorrow’s global economy. Mumbai ??? A Cultural diversity
The name “ Mumbai” is an eponym, etymologically derived from Mumba or Maha-Amba????? the name of the Hindu goddess Mumbadevi????? and Aai, “ mother” in Marathi. The former name Bombay had its origins in the 16th century when the Portuguese arrived in the area and called it by various names, which finally took the written form Bombaim, still common in current Portuguese use. After the British gained possession in the 17th century, it was anglicised to Bombay, although it was known as Mumbai or Mambai to Marathi and Gujarati-speakers, and as Bambai in Hindi, Urdu.
The name was officially changed to its Marathi pronunciation of Mumbai in 1995. Mumbai formerly Bombay, is the capital of the Indian state of Maharashtra and the financial capital of India. With an estimated population of thirteen million, it is the second most populous city in the world. Along with the neighbouring suburbs of Navi Mumbai and Thane, it forms, at nineteen million, the world’s fifth most populous metropolitan area. Mumbai lies on the west coast of India and has a deep natural harbour. Mumbai’s port handles over half of India’s maritime cargo.
Mumbai is the commercial and entertainment center of India, generating 5% of India’s GDP and accounting for 25% of industrial output, 40% of maritime trade, and 70% of capital transactions to India’s economy. Mumbai is one of the world’s top ten centres of commerce by global financial flow, home to such important financial institutions as the Reserve Bank of India, the Bombay Stock Exchange, the National Stock Exchange of India and the corporate headquarters of many Indian companies and numerous multinational corporations. The city also houses India’s Hindi film and television industry, known as Bollywood.
Mumbai’s business opportunities, as well as its high standard of living, attract migrants from all over India and, in turn, make the city a potpourri of many communities and cultures. Mumbai ??? A Brief History Artifacts found near Kandivali in northern Mumbai indicate that these islands had been inhabited since the Stone Age. In 1534, the Portuguese appropriated the islands from Bahadur Shah of Gujarat. They were ceded to Charles II of England in 1661, as dowry for Catherine de Braganza. The population quickly rose from 10, 000 in 1661, to 60, 000 in 1675.
In 1687, the British East India Company transferred its headquarters from Surat to Mumbai. The city eventually became the headquarters of the Bombay Presidency. The opening of the Suez Canal in 1869 transformed Bombay into one of the largest seaports on the Arabian Sea. Over the next thirty years, the city grew into a major urban centre, spurred by an improvement in infrastructure and the construction of many of the city’s institutions. The population of the city swelled to one million by 1906, making it the second largest in India after Calcutta.
As capital of the Bombay Presidency, it was a major base for the Indian independence movement, with the Quit India Movement called by Mahatma Gandhi in 1942 being its most rubric event. After India’s independence in 1947, it became the capital of Bombay State. In the 1950 the city expanded to its present limits by incorporating parts of Salsette island which lay to the north. The late 1970s witnessed a construction boom and a significant influx of migrants, which saw Mumbai overtake Kolkata as India’s most populous city.
This influx caused unrest among local Maharashtrians who worried about the loss of culture, jobs, and language. The city’s secular fabric was torn apart in the riots of 1992??? 93, after large scale sectarian violence caused extensive loss of life and property. A few months later, on March 12, a series of co-ordinated bombings at several city landmarks by the Mumbai underworld killed around three hundred people. In 1995, the city was renamed Mumbai by the Shiv Sena government of Maharashtra, in keeping with their policy of renaming colonial institutions after historic local appellations.
There have also been terrorist attacks, sponsored by Islamic extremists, on public transport buses in past years. A “ Glocalized” World Glocalization is a term that was invented in order to emphasize that the globalization of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture it is marketed in. The term combines the word globalization with localization. Across much of the world, India is still known as a land of elephants and maharajahs. But one day, it might be known for Tata.
Headquartered in Mumbai, The Tata group symbolizes the quintessential Indian firm. A person in the US or UK may never have heard of the Tata Group. But there is a fair chance you have sipped a Tata drink, put on Tata shoes or slept in a Tata hotel in New York, London or Sydney. Your company’s software may be made by Tata. The ball bearings in your power drill may be from Tata. When you last checked e-mail, telephoned Beijing or used Skype, Tata’s 60, 000 kilometers, or 37, 000 miles, of deep-sea cables may have connected you. The Three stages of Globalization
The world has gotten used to the notion of India as an outsourcing powerhouse teeming with low-cost labor. But India is now emerging as a new kind of powerhouse: a fount of the next generation of global mega-corporations. This is the third wave of globalization. The first wave was colonialism, and the second wave was the penetration of developing countries by multinationals from the United States, Europe and Japan. Growing up in a country with a prickliness about foreign domination, Tata has learned to tread lightly in overseas markets.
It now benefits from an image as the un-multinational – a company that comes to places like South Africa and Bangladesh saying that it wants to learn rather than teach and to help build a nation, as it did in India, rather than merely seize market share. Mumbai Urban Infrastructure Project Mumbai handles major part of the port traffic of the country. With rapid urbanisation and industrialisation during the last three decades, the population growth has been mainly in the suburbs i. e. north of Mahim and Sion while the population growth in the island city has remained more or less stagnant.
The population in the suburbs increased from 5 million in 1981 to 8. 8 million in 2001, while the population in the island city increased from 3. 28 million to 3. 30 million during the same period. The city of Mumbai with its present population of over 12 million generates more than 10 million daily passenger trips catered by suburban railway and public transport bus services provided by BEST. The ever growing vehicular and passenger demands, coupled with constraints on capacity augmentation of the existing network, have resulted in chaotic conditions during peak hours.
The five main north-south roads in the suburbs are not fully developed to the planned width, have many bottleneck points and constraints due to large number of intersections with major and minor roads. Similarly, the major east-west links proposed in the Wilbur Smith Associate Study of 1962 have not been finalised. During the last 4 decades there has been growth in vehicular ownership in Greater Mumbai, particularly in the suburban areas, resulting in immense pressure and increasing bottlenecks.
The vehicular population in the last four decades increased from 1. 5 lakhs in 1971 to 1. 29 million in 2001. The World Bank funded MUIP focuses mainly on strengthening of mass transport particularly improvements in suburban railway services in terms of efficiency and capacity, with very few proposals of road improvements. On the above background and looking beyond MUIP improvements and considering the future travel demand by growing population, it has been considered necessary to take urgent steps to strengthen the road infrastructure in Mumbai.
With a view to supplement MUTP, MMRDA initiated the process for an ambitious project known as Mumbai Urban Infrastructure Project (MUIP) with the main objective of road network improvements and efficient traffic dispersal system in Greater Mumbai. Objectives * To prepare a traffic dispersal model for efficient mobility and connectivity. * To develop major North-South road links in suburbs including a Mass Rapid Transit Connectivity. * To strengthen / augment the East-West Connectivity in the suburbs. * To provide efficient / fast pubic transport corridors. To facilitate safe and convenient movement for pedestrians (Subways / FOBs / Footpaths) including Station Area Traffic Improvement Schemes (SATIS). * To provide high capacity uninterrupted road connection to both the Airports. * To remove level crossings in Mumbai * To provide bus terminals / bus depots and to create facilities for passengers. Master Plan MUIP Master Plan has been prepared taking in to account the previous studies and project proposals that were not implemented till now Project Implementation : The Government of Maharashtra approved the Master Plan at an estimated cost of Rs. , 647/-crores. After completing the necessary formalities MMRDA has taken up the work of 18 corridors (155 Kms. ) for execution such as Eastern Express Highway, Western Express Highway, S. V. Road, LBS Road, Andheri Ghatkopar Link Road, Main Linking Road, Sion Dharavi link Road, Ghatkopar Mulund Link Road (Part) and other important roads around MIDC, SEEPZ and International Airport (Under ASIDE Scheme) worth @ Rs. 1438 crores. The work on these corridors in available fronts and the process of handing over these corridors to MCGM is in progress.
Two elevated road works are under JNNRUM and under MUIP as per details given below: 1. Sahar Elevated road: The work has been recently under taken for construction i. e. from 9/1/2008 with the total cost of Rs. 287 crores with completion period of 2 years 2. Eastern freeway: The work has been recently under taken for construction i. e. from 9/1/2008 with the total cost of Rs. 531 crores with completion period of 5years | | Landscaping and Beautification of MUIP road Corridors on BOT basisThe beautification of MUIP road corridors especially medians has been taken up through Private participation.
The beautification and land-scaping is proposed to be carried at no cost to MMRDA and the Agency will be required to maintain the landscaping of the respective sections for a period of 5 years. The developer/Agency will be allowed to display their logo/emblem in the gardens. In all 51 contracts have been awarded after inviting the proposals through open bidding. Substantial sections of about 100 kms have been developed by the developers on Eastern and Western Express highways, J. P. road, Sakivihar Road, BKC Main Road, and some corridors at BKC before nset of Monsoon so that the gardens would survive and achieve visible growth by the end of monsoon. The balance will be completed in due course. Erection of bus shelters on Eastern and Western Express HighwaysWith a view to change the landscape of the important city corridors MMRDA has taken up street furniture works like land scaping, beautification, Road markings, signages, etc. Before MUIP was taken up the Eastern and Western Express Highways were having no footpaths, nor bus shelters.
MMRDA in consultation with BEST finalized the specifications for state of art bus shelters (on lines of Toronto, Singapore designs) and invited bids on BOT basis for erection and maintenance of 151 bus shelters. Due to the issue of property taxes only one bid has been received. The bids have been reinvited after resolving the above issues. Ms. RBPL and have been appointed for erecting the Bus queshelter on WEH and M/s JCD for Easter Express Higway, JVLR and BKC. The work is expected to be completed in next 3 months. | ??| The Resettlement and Rehabilitation of Project Affected Persons About 35000 slum families are affected by MUIP.
For smooth implementation of MUIP, it is necessary to rehabilitate eligible slum dwellers. The rehabilitation and resettlement of PAPs affected by MUIP will be undertaken according to the Government of Maharashtra’s policy of slum rehabilitation and by using powers of Slum Rehabilitation Authority vested in MMRDA. Thus about 21000 slum families can be rehabilitated in the schemes which are approved at various sites e. g. Poonam Nagar??? Majas, Oshiware??? Goregaon, Anik??? Chembur, Anik Bhakti Park??? Chembur, Borla??? Ghatkopar-Mankhurd Link Road, Tata Nagar-Mankhurd, Kanjurmarg(W)-LBS, Bhandup. | ??| | |
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Bandra ??? Worli sea link project: Bandra Worli sea link has been considered as an engineering marvel and one of the most highly recommended projects for all transport studies done in the metropolitan over the past 40 years. Mahim causeway was the only link connecting western suburbs to the island city of Mumbai. The existing north south western corridor was highly congested during peak hours it resulted in a bottleneck at mahim causeway. Vehicular traffic admeasuring about 1, 20, 000 PCU travels on the Mahim causeway everyday and during peak hours and it takes about forty minutes to travel from Mahim causeway to Worli, a distance of about 8 km.
Construction of the project link has provided an additional fast moving outlet from the island city to the western suburbs & thereby providing much needed relief to the congested Mahim Causeway. This link is also a part of the western freeway. | | | Navi Mumbai International Airport Enhancement in aviation facilities in Mumbai is absolutely essential for keeping the leadership of Maharashtra in attracting Foreign Direct Investment thereby creating a place of pride for itself and add to the prosperity of its people.
Therefore a second airport in the Mumbai Region has become imperative, as the existing airport at Mumbai, is fast reaching saturation level. To meet the growing demand of air travel CIDCO is soon going to develop a new airport. The location of the proposed airport at Navi Mumbai has been considered on several parameters. Prominent among these is the fact that Navi Mumbai is expected to absorb the future growth in population, business and commercial activity of the region.
The availability of physical and social infrastructure coupled with environmental friendly site with minimum resettlement and rehabilitation makes the Navi Mumbai airport project technically and financially viable. The airport would be one of world’s few ” greenfield” international state-of-art airport offering world class facilities to passengers cargo, aircrafts and airlines. The site of airport is located in an area of 1140 hectares accommodating two parallel runways for independent parallel operation with provision of full length taxi ways on either side of the runways.
The airfield has been designed to accommodate the new large aircrafts compatible to aerodrome code 4-F, conforming to specifications of International Civil Aviation Organisation (ICAO). Navi Mumbai International Airport will support the rapidly growing air travel needs of Mumbai Metropolitan Region. It is expected to absorb annually 10 million passengers in its first operational year 2012, doubling to 20 million by 2020 followed by 30 million passengers in 2025 and ultimately 40 million by 2030.
The Navi Mumbai Airport is proposed to be developed through public-private participation in which CIDCO/AAI will hold 26% equity and rest will by held by private developer to be raised through public bidding. The growth in resident population in Navi Mumbai, rapid development of its Central Business District, coupled with economic activities such as Special Economic Zone, Jawaharlal Nehru Port Trust, Thane-Belapur and Taloja industrial areas and the huge catchment area ranging from Pune to South Mumbai would assure a steady growth rate in traffic at the new airport, thus assuring steady revenues to the investors.
In addition the project opens-up the state’s vast hinterland rich in agriculture, floriculture, hi-tech high value industries to world market. Thus making the airport to act as a focal point for emergence of a transshipment centre in the Asian region. The SPC would also be entitled to special benefits/incentives currently available on infrastructure development projects. The SPC mission would be to build and operate airport that will become exemplary worldwide based on top quality services, high safety standards and above all commitment to customer satisfaction.
The proposal of development of Navi Mumbai Airport is under active consideration of Ministry of civil aviation G. O. I. and recently ‘ in-principle’ approval have been granted by Union Cabinet G. O. I.. Accordingly CIDCO has initiated the necessary studies such as master plan, detail project report etc. to enable to prepare procurement documents to initiate the bidding process and complete the same within 15 to 18 months, so as to commence the construction of airport from late 2008 and open the airport for operation by late 2012.
Mumbai : A Global Financial Hub Driven by high trading volumes for equities and a good presence of global banking and financial services firms, Mumbai has grabbed a place in the world’s top ten financial flow hubs list, beating Hong Kong and Beijing. Mumbai has been ranked tenth among the world’s biggest centres of commerce in terms of the financial flow volumes by a survey compiled by Mastercard Worldwide, which takes into consideration size of financial services network, besides equity, bond, derivatives and commodity contract transactions.
The list, lead by London and New York on the first two slots, include two other Asian cities — Tokyo at fifth and Seoul at sixth positions, but does not have any representation from China — another emerging Asian economy. The other cities include Chicago, Frankfurt, Paris, Madrid and Milan. The Asia/Pacific, Middle East and Africa (APMEA) region boasts of three cities which got included in the premier league — Tokyo, Seoul and Mumbai due to their high trading volumes in bonds and equities. The list is, dominated by European cities with as many as five of the top ten positions on financial flow metrics.
The financial flow dimension is an integration of five indicators — financial services network, equity transactions, bond transactions, derivatives contracts traded and commodities contracts traded — all carrying equal weightage. The financial services network includes the presence and intensity of global banking institutions, insurance companies and global securities companies. These top-ranking centres of commerce conform to the network of global financial transactions and flow; although more detailed analysis would show specialisation between the centres in areas such as bonds, derivatives and equity trading.
The MasterCard study also ranked the world’s top cities in terms of their performance as overall centres of commerce in the global economy, where Mumbai was at 45th position, while London, New York and Tokyo stood at the top three positions. China got represented by three cities in the top-50 list, with Hong Kong grabbing the fifth position, Shanghai at 32nd and Beijing at 46th position. However, Mumbai was the only Indian city on the list. This index consisted of six dimensions?? — legal and political framework, economic stability, ease of doing business, financial flow, business centre and knowledge creation and information flow.
Mumbai, however, did not figure in the individual top-ten list on the five metrics other than financial flow. Earlier last year, a committee was set up to draw an outline to turn Mumbai into a global finance centre. The committee submitted its report in April this year and suggested fixing a 2007-2020 timeframe for the city’s evolution from India’s financial hub to an International Financial Centre. A Dangerous City to Live In The experience of India is of enormously increased migration into the cities; and Mumbai continues to attract thousands each year who simply have nowhere lse to go. The cheerful proponents of corporate-led projects, those who speak of turning Mumbai into another Singapore believe that the market mechanism will provide the most effective answer to the city’s problem. They portray market forces as a kind of impersonal bailiff who will more or less painlessly evict Mumbai’s five or six million poor. Alas, they will have to be assisted by real flesh and blood; a military operation far greater even than the scale of Mrs Gandhi’s relocation of the city’s poor during the Emergency of 20 years ago.
Not everybody recognizes the wisdom of appointing market forces as the arbiters of their lives. In November 1994, the Civic Executive Health Officer denied that Mumbai is a centre for malaria, TB, polio, hepatitis, gastro-enteritis and now aids. He insisted that ‘ civic services are working optimally. But most of our efforts get neutralized, sometimes even defeated, by the huge concentrations of slums, mostly unauthorized, which have abysmal hygienic conditions and are the ideal breeding ground for disease. What he did say was that the urban poor are there to service industries that are dangerous to life. A Supreme Court lawyer, M C Mehta, warned that Mumbai is sitting on a live volcano because of the danger from the chemical industries in the city. Hospitals in the city could not cater for the thousands who could be affected by major gas leakages. There are virtually no exit routes from the city, so the people are captive. The Mumbai Environmental Action Group pointed out that the Government has relaxed stringent environmental regulations in the name of liberalization.
A report in January 1995 prepared in co-operation with the World Bank, non-governmental organizations and the government studied the Mumbai Metropolitan region from 1992-1994. It presented a story of pollution, inadequate landfills, hazardous industrial wastes and rampant diseases. Sewage in the city is not treated before discharge into the Arabian Sea at any of the three Corporation areas. All sewers overflowed into coastal waters adjoining Mumbai, which made them unfit for recreational use throughout the year.
Hundreds of septic tanks overflow into the ground, causing flies and mosquitoes to breed. Over 5. 5 million people live in slums, where enteric and respiratory disorders are common, and gastro-enteritis, tuberculosis, malaria and filaria are rampant. A Crowded City: Mumbai’s Population Explosion A study late in 1994 shows that planners are indifferent to the urban poor. Inadequate budget allocation, bad municipal administration, widening gaps in the demand and supply of services and infrastructure have damaged the physical environment and the quality of life.
But there are limits to what can be done to improve civic services in isolation from conditions of life in the hinterland. It is cheaper to spend on rural development and undertake activities which would make it possible for people to stay in the villages and not migrate to the urban areas, thus adding to the number of slumdwellers. According to the World Resources Institute in Washington, the last 20 years have done little for poverty abatement in India, but contributed significantly to environmental degradation.
In the three highly industrialized states of Maharashtra (of which Mumbai is the capital), Gujarat and Tamil Nadu, per capita incomes are above the national average, yet deaths in urban areas from respiratory and waterborne diseases are disproportionately high. In 1988 these three states with 20. 6 per cent of India’s population had 40 per cent of fatalities from water-borne diseases and 48 per cent of respiratory diseases, defying the logic that higher per capita income leads to better health standards.
Industrial houses dumped hundreds of thousands of tons of hazardous wastes on fallow or public lands without any proper safeguards, thus making their way into the air or water bodies. Ccities cannot be dealt with in isolation from the wider environment. The whole thrust of economic development cannot be separated from the growth of cities. We cannot restrict our campaigns to Mumbai alone ??? we must support those which are part of a wider process. The degradation of the Himalayas through deforestation is also part of a development that has its repercussions on Mumbai.
Only by looking at the dynamic relationship between the rural districts and the cities can you understand what is happening. There were alternatives. A municipal plan was published for Mumbai in 1977. The land has been released hectare by hectare at the sweet will of the owners; and then only for housing schemes that will benefit the rich. In the presence of all this, the politicians and officials are speaking another language. The former Sheriff of Mumbai had a vision for the city, of tree-lined boulevards, fountains and playgrounds. ‘ There will be no slums. The streets will be clean with wide pavements unencumbered by awkers. People will stroll through pedestrian plazas. The night will be brilliant with majestic buildings and fountains. ‘ In fact, the liberalization programme has meant that this has been the worst time for the poor since Independence. To earn the foreign exchange needed to service its $90 billion debt, India is exporting increasing quantities of foodstuffs. And yet within the country prices of all the basics have risen dramatically, with double-digit inflation. In 1939 the basic wage required to sustain life was 30 rupees a month. By that reckoning in 1994 the minimum should be 1, 951.
Nowhere in India is this reached. Delhi comes closest with 1, 420; Tamil Nadu has 1, 000 and West Bengal 750. Mumbai 2020: A Vision Does the financial capital of India need a monument twice the size of Qutb Minar with a revolving restaurant on the top floor? Or does it need 3 lakh more hawker licenses and slum development? Does it need McKinsey to draw its development plan or does it need a dialogue between the haves and the have nots? Are slums that recycle the city’s wastes better than unhealthy slum rehabilitation concrete cubicles? Is Vision 2020 the panacea for Mumbai’s ills?
The Vision 2020 plan for Mumbai seems like it is ‘ To the capitalist, by the capitalist, for the capitalist. ‘ BMC [Brihanmumbai Municipal Corporation] collects Rs 12 crore through license fees, while Rs 1, 500 crore goes as hafta to police and civic authorities. There are 3. 2 lakh hawkers in the city, while the Supreme Court has allowed just about 17, 000 licenses. A Mumbai Development Fund will be set up to overhaul infrastructure and health facilities, create more jobs and improve housing and governance. As long as citizens feel the money is being spent rightly they will contribute.
What is the point of spending crores on the beautification of Marine Drive when 70 per cent of Mumbai lives in the suburbs? Mumbai, as it exists today was never planned. Bombay was a reclaimed creek where agricultural land had been turned to industrial use and now it was being de-industrialised for housing. Mumbai has about 12 lakh cars but 60 to 70 lakh people travel in local trains everyday. While Mumbai may be an epitome of a financial centre for developing countries in a globalized world, it is also a conduit for the export of the country’s wealth to the rest of the world, on terms that certainly do not favour the Indian people.
Redistribution of wealth is of primary importance, and all players, including the government and private institutions have a moral responsibility to see to it that all sections of the society benefit from the fruits of globalization. The Task Force for Vision 2020, outlines a new Mumbai cleaner, more beautiful, with more flyovers and radio-connected taxis. The Task Force for Vision 2020 denies that it is an elitist plan for Mumbai. Poverty alleviation should drive the services. Turning informal markets into formal markets is the key to growth.
In plain speak, that is turning the black market white. When you go to a movie hall, you see the main window saying ‘ houseful’ while tickets are being sold in black. The trick is to ensure “ the main window” remains open. There is a need to enforce the rule of the law. Globalization has to benefit all sections of society, sooner or later. References * www. rediff. com * www. newint. org * www. nationalgeographic. com * www. businessweek. com * www. mpcb. mah. nic. in * www. wikipedia. org * www. bandraworlisealink. com