Dr. Zaheer Allam
Mauritius is on the brink of municipal elections, and with people feeling the need to change urban leadership after 10 years, this presents a chance to reshape urban governance for real, lasting change. As our cities further cement themselves as true powerhouses of the national economy, it’s time to rethink how they are funded, managed, and envisioned for the future.
For years, municipal financing here has depended on annual allocations from the central government. Yet, when you look at places like the United States, metropolitan areas produce nearly 85% of the national GDP. In Europe, cities contribute between 60% and 70% of economic output. These numbers underline a simple truth, that cities are not just places for local administration—they are major economic engines. In return central governments invest back in them, as a percentage of national GDP. Taking this as an inspiration, a promising idea for us would be for the central government to set aside roughly 2-3% of the national GDP for municipalities. This change would allow local leaders to break free from the constraints of earmarked, project-specific funds and instead invest where their communities need it most. It also opens the door for neighbourhood projects and participatory budgeting, letting residents vote on the improvements they want to see in their areas, and allow investment in ‘softer’ dimensions, such as cultural events, childcare and elderly services, jobs training, recreational services, etc.
Beyond central funding, cities should also have the ability to secure their own revenue. Here, we abolished the municipal tax, and trade licenses do not bring much. In view of the required investment scale for sustainable and inclusive development, we need to think bolder if we want to reach financial autonomy. In Germany, for example, many cities have successfully boosted local incomes by using innovative measures like special economic zones and local taxes. On the other side, in the United States, tax incentives have attracted tech companies and startups that have, in turn, sparked urban renewal and job creation. This approach creates a multiplier effect, where more investment leads to better infrastructure, which then attracts even more businesses, talent, and innovation. We do know that diversifying revenue sources can stimulate economic growth, but ensuring this as local level can lead to investments in public infrastructure and social services are both strategic and sustainable for longer terms.
Another crucial area for reform is the structure and quality of municipal leadership. At present, key roles like that of the mayor – earning around Rs 40,000 monthly – often lack the competitive edge needed to attract top-tier talent, with this salary being roughly nine times lower than what a minister earns. To face modern urban challenges head-on, cities need to build teams that are well remunerated and include positions such as Chief Sustainability Officer, Chief Innovation Officer, and Chief Technology Officer. These roles are not just add-ons, they are essential for tackling issues like climate change and digital transformation. Some Scandinavian cities have shown that when local leadership is bolstered by these specialized roles, service delivery and policy innovation see real improvements. Updating compensation and embracing these new roles could be transformative for Mauritius.
It’s also time to revisit what we expect from a municipality. If we posit on the prospect that national ministries take over responsibilities like waste collection or issuing building permits, we will face the fact that the unique role of the municipality gets lost… But in fact, municipalities should be the driving force behind an urban vision, handling public works and delivering social services that directly affect daily life! Consider Barcelona, where the city government has established comprehensive services—from public housing initiatives and community centers to childcare and elder care programs—all under one roof. Similarly, in many Canadian cities, municipal-led efforts include subsidized housing, after-school programs, accessible healthcare facilities, and recreational centers, all of which contribute to a higher quality of life and stronger community bonds. For Mauritius, redefining the municipal role to incorporate similar direct services could foster a more immediate and impactful connection with its residents.
We also need to look back to assess our development paths, as over the past decade, Mauritius has experienced a dramatic transformation. Large-scale developments, smart city initiatives and real estate policies have pushed economic growth. But with modernization come new challenges. Outdated planning and development policies, coupled with the urgent need for environmental sustainability, require cities to reconcile rapid technological advances with the pressing challenges of climate change. Modern urban planning must be agile and forward-thinking, continuously updated to address both current issues and future demands. Today, a reassessment of policy guidelines is not just a bureaucratic necessity, it’s a critical move to keep our urban planning in line with our rapidly changing world.
At the heart of all these changes is the need for a clear urban vision. Rather than relying on rigid, all-encompassing plans, many cities today are choosing to work from a set of guiding principles. One example is the “15-minute city” concept, on which I have contributed in Paris, which has taken the world by storm. This idea is straightforward, leading to its popularity: every resident should be able to access essential services within a 15-minute walk or bike ride. In Paris, studies have shown that nearly 90% of residents can meet this benchmark, a statistic that speaks volumes about the potential for decentralized urban services. Adopting this vision in Mauritius would require close coordination among municipal departments and even between different levels of government, which is real hassle, but it could significantly simplify urban living and boost community resilience. Although challenging, it could make urban life simpler and strengthen community bonds. This work is too demanding for mayors to treat as a side job, especially when their pay is so low. They need to be fully focused on driving these changes.
Integrating these reforms means a collaborative effort among policymakers, urban planners, and local communities. The international data is clear – cities with fiscal autonomy, innovative leadership, and a coherent, forward-looking vision tend to perform much better. Shifting to a model where municipalities receive about 2-3% of national GDP, have the power to generate their own revenue, and attract high-caliber leaders isn’t just an ambitious dream, it’s a necessary evolution. Such a transformation could set a new benchmark in the region, ensuring that local governments are ready to meet both current challenges and future opportunities, and even encourage cities to compete with one another, leading to better and cheaper services for urban residents and dwellers.
Real reform in municipal governance is no easy task. It involves rethinking long-established financial models, restructuring local government roles, and updating policies to reflect the realities of today’s world. But the benefits are substantial, leading to improved quality of life for residents, a more competitive and resilient urban economy, and a deeper sense of civic engagement. With municipal elections on the horizon, there’s no better time to learn from international best practices, adapt them to our unique context, and put in place provisions for true change.
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ACCROCHE
“At the heart of all these changes is the need for a clear urban vision. Rather than relying on rigid, all-encompassing plans, many cities today are choosing to work from a set of guiding principles. One example is the “15-minute city” concept, on which I have contributed in Paris, which has taken the world by storm. This idea is straightforward, leading to its popularity: every resident should be able to access essential services within a 15-minute walk or bike ride. In Paris, studies have shown that nearly 90% of residents can meet this benchmark, a statistic that speaks volumes about the potential for decentralized urban services.”
