Small Town Governance: What are the governance challenges facing small cities?

CASI has launched the first systematic set of studies on the political economy of “small-scale urbanization” in India. A significant percentage of urban residents across the Global South live in small towns. In India, the percentage of citizens living in cities with populations less than 100,000 residents equals those living in million-plus cities. Indeed, 85% of India’s towns have less than 100,000 people. Yet little is known about the political economy of these urban local bodies. What governance challenges do small towns face? Why are small towns so unsuccessful in raising tax revenues? Why do they often fail to spend the funds provided to them by central and state governments? 

This project has yielded numerous outcomes. The first paper from this project was published in the American Political Science Review, and is accessible here. Two other working papers are being prepared for submission, both of which have been presented at various academic conferences and workshops. Finally, CASI organized a policy workshop in New Delhi to disseminate findings from this research to a group of scholars and policymakers. This workshop was held in March 2025, in collaboration with UPIASI, and the Directorate of Local Bodies in the Indian state of Rajasthan.