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  • United Nations’ World Population Prospects (WPP)

    The 2022 edition of the United Nations’ World Population Prospects (WPP) was released.

    Why in news?

    • India is projected to surpass China as the world’s most populous country in 2023.

    What is the World Population Prospects?

    • The Population Division of the UN has been publishing the WPP in a biennial cycle since 1951.
    • Each revision of the WPP provides a historical time series of population indicators starting in 1950.
    • It does so by taking into account newly released national data to revise estimates of past trends in fertility, mortality or international migration.

    Main takeaways for the global population

    (1) Slow pace of growth

    • The world’s population continues to grow, but the pace of growth is slowing down.
    • The global population is expected to grow to around 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100.
    • In 2020, the global growth rate fell under 1% per year for the first time since 1950.

    (2) Region-wise differential

    • Rates of population growth vary significantly across countries and regions.
    • More than half of the projected increase in global population up to 2050 will be concentrated in just eight countries- Congo, Egypt, Ethiopia, India, Nigeria, Pakistan, the Philippines and Tanzania.
    • Disparate growth rates among the world’s largest countries will re-order their ranking by size.

    (3) Ageing population

    • The population of older persons is increasing both in numbers and as a share of the total.
    • The share of the global population aged 65 years or above is projected to rise from 10% in 2022 to 16% in 2050.
    • The report suggests measures for ageing population by improving the sustainability of social security and pension systems and by establishing universal health care and long-term care systems.

    (4) Decline in fertility rate

    • A sustained drop in fertility has led to an increased concentration of the population at working ages (between 25 and 64 years), creating an opportunity for accelerated economic growth per capita.
    • This shift in the age distribution provides a time-bound opportunity for accelerated economic growth known as the “demographic dividend”.

    (5) International migration

    • This is having important impacts on population trends for some countries.
    • For high-income countries between 2000 and 2020, the contribution of international migration to population growth (net inflow of 80.5 million) exceeded the balance of births over deaths (66.2 million).
    • Over the next few decades, migration will be the sole driver of population growth in high-income countries.
    • In many of these countries, the outflows were due to temporary labour movements, such as for Pakistan (net flow of -16.5 million), India (-3.5 million), Bangladesh (-2.9 million), Nepal (-1.6 million) etc.

    How reliable is the UN projection, and how do they compare with India’s Census?

    • In India, of course, the Registrar General comes out with a population projection based on the Census.
    • The last such projection was released in 2019 and it was based on Census 2011.
    • The Census projection is slightly lower than the UN projection.
    • Still UN projection is widely acknowledged across the world

    What is the significance of India overtaking China?

    • That India would overtake China has been known for a while.
    • Moreover, in the past, when the world population was still at 5-billion or 6-billion levels, there was a concern about overcrowding.
    • Those concerns no longer exist because the global population is already 8 billion and several countries (including India) have achieved a replacement rate of fertility.
    • The concern now is not about the absolute numbers — India’s population is already 1.4 billion and may go up to 1.6 billion before declining.

     

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  • What is the Nord Stream 1 Gas Link?

    The Nord Stream 1, Germany’s main source of gas from Russia, was recently shut down for scheduled maintenance work.

    Why in news?

    • There are growing concerns in European countries that Russia would shut down its gas supplies in retaliation against the current sanctions against Moscow.

    What is Nord Stream 1?

    • It is a system of offshore natural gas pipelines running under the Baltic Sea from Russia to Germany.
    • Nord Stream 1 is a 1,224 km underwater gas pipeline that runs from Vyborg in northwest Russia to Lubmin in northeastern Germany via the Baltic Sea.
    • Two further pipelines under construction running from Ust-Luga to Lubmin termed Nord Stream 2.
    • Majority owned by the Russian energy giant Gazprom, the pipeline is the primary route through which its gas enters Germany.

    Worry for Europe

    • There have been growing concerns that there could be further restrictions to European gas supplies.
    • European countries rely on Russian energy for their cold winters.
    • But now they believe that Russia could weaponized their dependency as a response to their sanction due to the conflict in Ukraine.

    What are Europe’s alternative sources of energy?

    • As an alternative source for energy, European countries have increasingly turned towards the US, from whom they purchase liquified natural gas (LNG) that comes via ships.
    • Since ship-delivered gas ends up being far more expensive, there are also attempts to get non-Russian pipeline gas from Norway and Azerbaijan.
    • While EU countries were earlier seeking to phase out fossil fuels and emphasize renewable forms of energy, many are now returning to coal to deal with the energy crisis.

     

     

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  • LINK INSIDE || Join the Pioneers of the most Successful Mentorship Program live on YouTube with Sajal and Sudhanshu Sir || Session at 3:00 PM Today

    LINK INSIDE || Join the Pioneers of the most Successful Mentorship Program live on YouTube with Sajal and Sudhanshu Sir || Session at 3:00 PM Today

    The Session will start at 3:00 pm Today on our Official YouTube channel. Link will be shared at 2:00 pm today. CLICK TO JOIN

    Dear Aspirants,

      We are delighted to invite you to our Live Session on You Tube with Sajal Sir who scored the highest marks in GS in 2017 mains with Sudhanshu sir who has made Current Affairs along with the Answer Writing like a cake walk that even toppers feel writing mains is like writing Civilsdaily Test Series.

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    During the webinar mentors will provide you tips on how to balance your current affairs, general Studies and Optional throughout the year along with how to maintain the consistency. They will help you in different segments such as-

    1. How Toppers’ notes are different from normal or just qualified aspirants.
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  • [Burning Issue] Enforcement Directorate (ED): Dreaded nightmare of Indian Politicians & Businessmen

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    Context

    • The Enforcement Directorate (ED) is in the news now and often for summoning a range of personalities from politicians to celebrities as well as NGOs.
    • Many states often accuse the agency of being a tool used by the Centre to coercively engage politicians for vested interests.
    • The timing of the ED cases is making politicians see red. Opposition parties usually allege that raids by Central agencies like the ED and the CBI pick up the pace before crucial polls.

    Is the ED a tool to investigate financial skulduggery or a stick to browbeat opposition leaders? Let’s check.

    What is Enforcement Directorate (ED)?

    • ED was formed in 1957 to look into cases of foreign exchange-related violations, a civil provision.
    • It goes back to May 1, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
    • Now, the ED falls under the finance ministry’s Department of Revenue.
    • But in 2002, after the introduction of the PMLA, it started taking up cases of financial fraud and money laundering, which were of criminal nature.
    • It was then tasked for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
    • Today, it is a multi-dimensional organisation investigating economic offences under the:
    1. Prevention of Money Laundering Act (PMLA)
    2. Fugitive Economic Offenders Act
    3. Foreign Exchange Management Act
    4. Foreign Exchange Regulation Act (FERA)

    Its establishment

    • When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
    • Therefore, there was a need to control and prevent the laundering of money.
    • The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
    • The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
    • So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).

    At what stage does the ED step in when a crime is committed?

    • Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
    • Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
    • This will be done to find out if any laundering has taken place.

    What differentiates the probe between the local police and officers of the ED?

    Case study:

    • If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
    • If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
    • But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
    • Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
    • Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
    • If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.

    Roles and functions of the ED

    • Summon, Search and seizure: The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
    • Arrest and detentions: On the basis of that, the authorities will decide if an arrest is needed as per Section 19 (power of arrest).
    • Attachment of property: Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning. It is not necessary to summon the person first and then start with the search and seizure.
    • Filing of chargesheet: If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.

    Centrestage of our debate: Over-reach by Investigation Agencies

    Why is ED comes to picture frequently?

    Ans. Money laundering

    • Money laundering is the process of making significant amounts of money obtained through criminal activities, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.
    • As a result, it provides an incentive for money launderers to “legitimize” their ill-gotten gains through money laundering.
    • The money generated is referred to as ‘dirty money,’ and money laundering is the act of converting ‘dirty money’ into ‘legitimate’ money.
    Prevention of Money Laundering Act (PMLA)

    PMLA, 2002 is an Act of the Parliament of India enacted by the NDA government to prevent money laundering and to provide for the confiscation of property derived from money laundering.
    It was enacted in response to India’s global commitment (including the Vienna Convention) to combat the menace of money laundering.
    PMLA and the Rules notified there under came into force with effect from July 1, 2005.
    The act was amended in the year 2005, 2009 and 2012.

    Why ED mostly grips Politicians?

    • Exposing rampant corruption: It is not always ironic to say that most politicians are never corrupt. We have a very inglorious past of political corruption.
    • Selective witch-hunt: The ED has often been attacked for initiating investigations, raiding and questioning leaders of opposition parties, be it under the current regime or under past governments.

    Issues with PMLA

    • Misuse of central agencies: PMLA is being pulled into the investigation of even ordinary crimes by the Enforcement Directorate.
    • Seizing of assets: Assets of genuine victims have been attached. The ED could just walk into anybody’s house.
    • Politically motivated raids: In all this, the fundamental purpose of PMLA to investigate the conversion of “illegitimate money into legitimate money” was lost.
    • Opacity of charges: Petitioners pointed out that even the Enforcement Case Information Report (ECIR) – an equivalent of the FIR – is considered an “internal document” and not given to the accused.
    • Vagueness over evidence: The accused is called upon to make statements that are treated as admissible in evidence.
    • Harassment: The ED begins to summon accused persons and seeks details of all their financial transactions and of their family members.
    • Against individual liberty: The initiation of an investigation by the ED has consequences that have the potential of curtailing the liberty of an individual.

    Allegations against ED

    • Huge discretions: The ED is the only Central agency in the country that does not require permission from the government to summon or prosecute politicians or government functionaries for committing economic offences like money laundering.
    • Used for petty crimes: PMLA is pulled into the investigation of even “ordinary” crimes and assets of genuine victims have been attached.
    • Actual purpose denigrated: PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from the trade in narcotics.
    • Violations of Rights: PMLA was enacted in response to India’s global commitment to combat the menace of money laundering. Instead, rights have been “cribbed, cabined and confined”.
    • Functional opacity: There is also a lack of clarity about ED’s selection of cases to investigate. We often see ED raiding houses of opposition parties suddenly.
    • Poor rate of conviction: We have hardly read the conclusion of cases by ED. Meantime media-trial tears off the accused person’s credibility which is the most desired intent.
    • Under-trials and slower prosecution: ED has been focusing on keeping the accused in custody rather than actually proving the charges against them.

    Challenges to ED

    • ED being dragged to court: The petitions against the ED had the effect of slowing down the investigations, as officers have to defend themselves in court.
    • Foul crying politicians: There are attempts to cover up unexplained, high-value transactions that fall within the PMLA’s ambit
    • Investigation of foreign transactions: Getting information on accounts and money stashed abroad to establish a trail is the biggest challenge they face.

    Way forward

    • The fight against corruption is intimately linked with the reform of the investigations.
    • Therefore the adjudicating authorities must work in cooperation and ensure the highest standards of transparency and fairness.
    • ED has been walking a tightrope to safeguard its integrity by speeding up investigations and court procedures.
    • The need of the hour could be systemic fixes—and not shrill calls to throw the baby out with the bathwater.
    • It is unlikely that corruption can be substantially reduced without modifying the way government agencies operate.

    Conclusion

    • What the ED is caught in is really an image crisis.
    • The trust in premier investigating institutions, and their credibility, is at stake.

  • The West has a chance to wean India off Russian weaponry

    Context

    Perturbed by India’s reluctance to condemn the Russian invasion of Ukraine and keen to bind the country closer in confronting China, Western governments have launched a fresh push to wean India, the world’s biggest importer of arms, off its long dependence on Russian weaponry.

    India’s concerns after Ukraine war

    • India has grown increasingly alarmed about China, following deadly border clashes in 2020.
    • Since the war in Ukraine began, it has also worried about Russia’s reliability as an arms supplier and about the quality of some of its weapons.
    • Diversification away from Russia: India, though insistent that it has every right to choose its own suppliers, is already diversifying away from Russia. 
    • The share of weapons it imports from Russia has fallen sharply, to around 50% between 2016 and 2021, down from 70% during the previous five-year period.
    • Western help for diversification: It has welcomed Western help in fulfilling its ambition to make more of its own weapons.

    Joint arms production plan

    • As the West cannot compete with Russia on price and remain reluctant to share their most cutting-edge technology, they are counting on joint arms production.
    • Western leaders have been vocal about their willingness to help India arm itself.
    • At a ministerial meeting in Washington in April, American officials discussed helping India to make advanced weapons, including reconnaissance aircraft and a system for combating aerial drones.
    • On visits to Delhi that month, Boris Johnson, Britain’s prime minister, and Ursula von der Leyen, the European Commission’s president, also proposed joint arms ventures.
    • Despite avowed interest from both sides, such a shift faces many challenges.

    Challenges

    • Dominance of PSUs: India’s arms industry, technically open to private investment since 2001, has long been hampered by the dominance of a small number of state-owned giants such as Hindustan Aeronautics Limited (HAL).
    • Inefficiencies: State-owned arms-makers remain notoriously inefficient.
    • They also retain long-running tie-ups with Russia, making Western governments wary of accepting India’s demands for the transfer of more advanced technology.
    • Low presence of private sector: The share of defence production in the hands of the private sector, which is a more natural partner for big Western defence manufacturers, is about a fifth—scarcely higher than it was five years ago.
    • Lack of industrial capacity and skill: Both the state and private sector still lack the industrial capacity and skilled workers to produce highly specialised defence technology at scale—especially military aircraft.
    • Trust issue: While Western companies worry about inadvertent technology transfers to Russia, India worries about the reliability of its Western partners.
    • Past record: Many see America, which in the past has imposed sanctions on India for its nuclear-weapons programme, as a fickle supplier.
    • More recently America refused to sell India its Patriot missile system, prompting India to fall back on a Russian alternative and thereby put itself at risk of American sanctions once more.

    Way forward

    • Liberalisation of defence sector: As a step to liberalise the industry as part of his push towards self-reliance, in 2020 India raised the limit on foreign ownership of defence firms from 49% to 74%.
    • Ordinance Factory Board was dissolved into small units to corporatize the entity.
    • Lockheed Martin, a big American defence manufacturer, last year approved the manufacture of wings for the f-16 fighter jet by its joint venture with Tata.
    • The company has also pledged to produce a more advanced fighter, the f-21, in India, provided it wins a multi-billion-dollar contract to supply 114 fighter jets.
    • Big deals like those would provide incentives for foreign governments to approve more technology transfer and for Western manufacturers to make the investments needed to spur India’s indigenisation drive.

    Conclusion

    Russia’s war and China’s muscle-flexing have opened a door for India and the West to walk through, but crossing the threshold will require some resolve on both sides.

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  • As GST compensation ends, state governments need to be provided certainty of revenues

    Context

    The five-year transition period after the adoption of the Goods and Services Tax (GST) on July 1, 2017, came to an end on June 30, 2022. With this, the era of GST compensation that the state governments were entitled to has ended.

    High estimated loan issuance

    • Many state governments have asked for the compensation period to be extended by a few years.
    • To tangibly assess the near-term outlook for state finances, we have to rely on the states’ own estimates for their market borrowing requirements for the second quarter of 2022-23.
    • The indicative calendar of market borrowings by 23 state governments and two Union territories for the second quarter has pegged their total state development loan issuance — the primary source of financing state government deficits — at Rs 2.1 trillion.
    •  This projected issuance is 29 per cent higher than the same period last year, and at an eight-quarter high.
    • This high level of issuance projected by states reflects concerns that some of them might rightfully have regarding the uncertainty of their cash flows in the post-GST compensation era.
    • High dependence on GST compensation: Of these 23 states, Tamil Nadu, Andhra Pradesh, Haryana, Punjab and Gujarat have indicated large increases in borrowings.
    • Most of these states have an above-average dependence on GST compensation.

    Implications of discontinuation of GST compensation

    • Alter the revenue compensation: The discontinuation of the GST compensation flows would alter the revenue composition of some states adversely, particularly those with a relatively larger share of such receipts in their overall revenue streams.
    • Increase in debt level: To offset a portion of the associated revenue loss, such states are likely to enhance their borrowings and/or to undertake some expenditure adjustments in the quarters ahead.

    Adjustment of borrowing limit of the States by the Centre

    • At the time of communicating to states their annual borrowing limits for the ongoing year, we understand that the Centre had informed state governments that their off-budget borrowings for the past two years (2020-21 and 2021-22) would be adjusted from their borrowing ceiling this year.
    • Data on off-budget borrowing: It appears that the calculation of the adjusted borrowing limit required the submission of detailed data by the state governments related to their off-budget borrowings for the last two fiscal years, followed by a thorough assessment of the same by the Centre.

    Need for early step up in tax-devolution

    • On the whole, though, states appear to have entered the year with a comfortable cash flow position.
    • This follows from the back-ended release of the tax devolution to states for 2021-22 — nearly half of the full-year amount was released in the fourth quarter.
    • Additionally, the total amount was also well above the revised estimate, providing an unexpected gain to states.
    • This may have allowed them to temporarily withstand the changes related to their borrowing permission.
    • Subsequently, the release of the GST compensation grant of Rs 869 billion for several months in May is likely to have further eased their cash flows.
    • If the government does decide to step-up tax devolution to the states in the near term, instead of back-ending it as was done in the last year, it may reduce the size of state borrowings in the second quarter.
    • But more significantly, such revenue certainty, despite the end of the GST compensation era, may embolden states to ringfence their capital spending, providing a positive impulse to the economy.

    Conclusion

    The discontinuation of the GST compensation flows would alter the revenue composition of some states adversely, tax devolution to the states in the near term could cushion the blow of the discontinuation.

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    Back2Basics: Compensation under GST regime

    • The adoption of the GST was made possible by the States ceding almost all their powers to impose local-level indirect taxes and agreeing to let the prevailing multiplicity of imposts be subsumed under the GST.
    • While the States would receive the SGST (State GST) component of the GST, and a share of the IGST (Integrated GST), it was agreed that revenue shortfalls arising from the transition to the new indirect taxes regime would be made good from a pooled GST Compensation Fund for a period of five years that is set to end in 2022.
    • This corpus in turn is funded through a compensation cess that is levied on so-called ‘demerit’ goods.
    • This GST Compensation Cess or GST Cess is levied on five products considered to be ‘sin’ or luxury as mentioned in the GST (Compensation to States) Act, 2017 and includes items such as- Pan Masala, Tobacco, and Automobiles etc.
  • 12th July 2022 | Prelims Daily with Previous Year Questions

    12th July 2022 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1058]

    [WpProQuiz_toplist 1058]

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  • 11th July 2022 | Prelims Daily with Previous Year Questions

    11th July 2022 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1057]

    [WpProQuiz_toplist 1057]

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  • (Live Now) Imp Webinar #UPSCskill: LIVE Answer Writing for UPSC Mains PYQs | Tackling GS Paper 4 – Ethics Case studies and Theories | Register-Get Free Resources

    (Live Now) Imp Webinar #UPSCskill: LIVE Answer Writing for UPSC Mains PYQs | Tackling GS Paper 4 – Ethics Case studies and Theories | Register-Get Free Resources

    Join Zoom Meeting

    https://us06web.zoom.us/j/87196341775?pwd=Qlh1WC9BMk9iMkxydmZJbWwyaGZJdz09
    Meeting ID: 871 9634 1775 Passcode: 924329

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    click and book your slot (free) | live webinar with dinesh sir, senior ias mentor

    Ethics paper in UPSC mains is designed to evaluate the ‘Ethical Competence’ and not the bookish knowledge about ‘Ethics’. There are certain skills you need to master Answer Writing for Paper-4.

    • How to Complete the paper on time even if all questions are not known? Completion of the entire question paper is needful. UPSC doesn’t look for the best answers. It wants the appropriate usage. So, how to illustrate values in the simplest and in the least possible words in time is going to be elaborated in this live session.
    • How to write ethics-oriented answers even though questions could have been asked in other GS papers. Ethics norms instruct about right or wrong. So, how to charge your answers with ‘Transparency’, ‘Accountability’, and ‘Right Attitude’ is surely focused in the webinar
    • Writing course of action of case studies in most ethical ways along with practical approach. Even an ideal solution wouldn’t fetch marks, if it seems unworkable. Focusing this, How to frame your answers based on peripheral problems in a case study will be discussed.
    • How to use examples and can make our own examples. The best possible ways of creating the most relevant experiences/examples from current, social issues, professional life, your area of interest, etc. will surely be talked over here.
    • How to have a grip on recent trends in Ethics paper!
    • Do and don’t of ethics paper. The most common mistakes will also be discussed. Mistake-prone: If there are no real-life cases, never let it go without them. Be prepared to make your point from the lives of social reformers, leaders, civil servants, etc., and other respected people.

    It is easier said than done. It takes a certain level of knowledge, experience, and practice. But, like any other skill, it could be learned and mastered under a teacher/mentor. 

    Webinar on 11th July, 7 pm – Sunday

    Dinesh Sharma sir will be taking a LIVE webinar on coming Monday. This is a must for those who want to learn and master Answer Writing skill to score 110+. We will be taking up and solving LIVE previous year’s UPSC Mains question and case studies for Ethics questions.

    Register for the webinar. Submit your query and get Telegram group + access to FREE resources. Dinesh sir will also share a special compilation of PDFs with you post-webinar.

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    About Dinesh Sharma sir

    Dinesh sir is a senior IAS mentor at CivilsDaily and he has been mentoring UPSC aspirants and rankers for more than 4 years now. Dinesh sir has an experience of 2 UPSC interviews and 3 UPSC Mains. He is a passionate mentor and has students’ interests in mind always. He is a public policy enthusiast and is always ready to counsel or mentor UPSC aspirants.

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  • The road to productivity

    Context

    The commute time for the labour force to the workplace plays a very important role in determining their productivity in cities.

    Issue of long travel time to work

    • Labour market: Cities are labour markets where the labour force exchanges their labour and creates knowledge spillovers.
    • Relation between commute time and productivity: The commute time for the labour force to the workplace plays a very important role in determining their productivity in cities.
    •  The longer the commute time in a city, the smaller is its effective labour market and vice-versa.
    • Difference between nominal and effective labour market: While the nominal labour market of the city refers to all jobs created in the metropolitan area, the effective labour market refers to the jobs accessible within a certain commute.
    • Importance of effective labour market: The larger a city’s effective labour market, the greater its agglomeration economies and knowledge spillovers will be.
    • From the viewpoint of enlarging a city’s effective labour market and economic output, it is therefore very important to keep the commute time short and commuting cost cheap within a city as it keeps growing in population.

    Way forward

    • One way in which urban local bodies (ULBs) directly impact the city’s economic output is through their infrastructure.
    • Increase in tax base: Road length has a positive effect on the city’s tax base.
    • Motivation to pay texes: This is because roads lead to easy access to jobs and increased economic activity; that also gives the public more confidence and motivation to pay taxes.
    • Cities should not view investment in road networks as expenditure; rather, roads add to the city’s revenue base which the city can use to improve infrastructure and public services.

    Conclusion

    Investing in roads not only reduces travel time and enlarges effective labour markets of cities and their economic output, but also improves access to schooling for children as well as healthcare, thereby upgrading human development. This is indeed the road to the $5 trillion economy along with improvement in human well-being.

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