City power and urban fiscal crises: the USA, China, and India

This essay comparatively examines the current urban fiscal crisis in US, Chinese, and Indian cities from the perspective of city power. The urban fiscal crisis in the USA is closely linked to the subprime mortgage crisis of 2008 as municipal governments largely depend on property tax as revenue sources. In China, municipal debt has increased sharply since 2008, not because of the recession, but because of the binge borrowing and overinvestment in infrastructure under the state stimulus programme, which was initiated by the central government to minimize the effects of the global recession on the Chinese economy. In India, cities have been in a perpetual state of fiscal crisis due to the stalled devolution of power from state to municipal governments. The comparison on authority, responsibility, and fiscal autonomy of city governments in the three countries demonstrates that the urban fiscal crisis has to be understood in plural terms, as the various assemblages of city power have given rise to a multitude of urban fiscal crises with different origins and consequences.