How Indian urban centers are inspired by Barcelona style ”Degrowth” City Initiatives and Collaborative Consumption?

For optics, Indian cities are adapting Barcelona’s degrowth principles (strategic decrease in energy and resource consumption to ensure economic activity operates within ecological boundaries), yet there are massive controversies surrounding these efforts, and a score of projects failing to meet their targets despite their progressive intent.

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Author: Sarat C. Das

Degrowth is a diverse social, economic, and political movement that connects the dots between our dominant global economic system and the interconnected social, political, environmental, and climate crises threatening the planet. By advocating for alternative economic models, it seeks to steer humanity away from a dystopian future and toward sustainable, practical solutions.

Degrowth’s central argument is that the pursuit of infinite economic expansion is fundamentally incompatible with the Earth’s finite material resources. It advocates for abandoning GDP growth as a policy objective, urging instead a focus on indicators such as life expectancy, health, education, housing, and ecologically sustainable work to measure both human and environmental well-being.

Highly critical of free-market capitalism, degrowth emphasizes the need for robust public services, care work, self-organization, commons, relational goods, community engagement, and work-sharing. It also serves as both a critique of green capitalism and a radical alternative to market-based approaches like the Sustainable Development Goals (SDGs), challenging their effectiveness in addressing ecological overshoot and environmental collapse.

The degrowth model places a strong focus on urban centers, recognizing them as hubs of high resource consumption, economic activity, and environmental impact. Cities are central to the current growth-driven economy, with their dense populations, sprawling infrastructure, and reliance on global supply chains contributing significantly to carbon emissions, waste production, and ecological degradation. Degrowth challenges the urban model of endless expansion, advocating for smaller ecological footprints, localized economies, and restructured urban spaces that prioritize sustainability and well-being over profit-driven development.

By rethinking urban planning, economic priorities, and social organization, the degrowth model aims to transform cities from centers of overconsumption into spaces that support sustainable and equitable ways of living. For example, cities can reduce car dependency through walkable neighborhoods, cycling infrastructure, and improved public transportation. The cities can expand public and cooperative housing to counter real estate speculation and ensure affordable living. The urban agriculture and localized food systems can reduce reliance on industrial supply chains. And there can be commons-based governance and participatory decision-making to foster community resilience.

Vincent Liegey, a leading advocate of the degrowth movement, is actively exploring and promoting alternatives to the current global economic model—one that is proving unsustainable, driving climate and environmental destruction while deepening inequality, instability, and suffering worldwide.

Liegey poses a series of questions: ”“Continually reductionist approach based on Gross Domestic Product and economics, to go to a much more qualitative discussion on what is a good life. What does it mean to have a meaningful activity? To question what we produce for what kind of usage, and how do we produce these things? What does it mean to be sustainable and how do we reconnect to nature? How do we get rid of rising inequalities? How to reconsider gender equalities?”

Journalist Conrad Bower captures this dire trajectory with the phrase “going to hell in a handcart” when reflecting on the climate crisis. Writing for The Meteor, he describes how this metaphorical handcart is overflowing with luxury and disposable goods, fueled by society’s relentless addiction to consumerism.

If we fail to change course, hell may well be the future Earth, with some climate models predicting a possible five-degree Celsius rise in global temperatures—a scenario that would bring catastrophic consequences for the planet and all who inhabit it.

 

The Rise of Degrowth and Collaborative Consumption

The concept of degrowth—a planned reduction of energy and resource use to align economic activity with ecological limits—has gained traction globally as cities grapple with pollution, inequality, and climate change. Barcelona has emerged as a leader in this movement, implementing innovative urban policies such as superblocks, cooperative housing, and public transport reforms to reduce emissions, enhance livability, and promote social equity.

Barcelona has long been a pioneer in the “degrowth” urban movement—an approach that challenges the traditional model of infinite economic expansion and instead promotes sustainability, collaborative consumption, and resource-sharing. Several Indian urban centers, grappling with overpopulation, pollution, and resource depletion, have looked to Barcelona’s model for inspiration. While some initiatives have seen moderate success, others have faced major setbacks due to corruption, bureaucratic inefficiencies, and a fundamental mismatch between Western sustainability models and India’s socio-economic realities.

India, home to some of the world’s most polluted and congested cities, has looked to Barcelona for inspiration. With Delhi’s air quality index (AQI) nearing 500 (On November 18, 2024, Delhi recorded its worst air quality of the season, with a 24-hour AQI reading of 491, classified as “severe plus.”) —equivalent to smoking 50 cigarettes a day—and urban sprawl exacerbating inequality, Indian policymakers and activists are exploring degrowth-inspired solutions. However, while some initiatives show promise, others have been marred by corruption, failed execution, and resistance from vested interests.

 

The “Degrowth” Model and Its Relevance to India

Degrowth is a socio-economic philosophy that prioritizes reducing consumption, increasing local self-sufficiency, and minimizing environmental impact rather than relentless economic expansion. Barcelona’s urban planning under the “superblocks” initiative has significantly reduced vehicular traffic, repurposed public spaces, and promoted alternative transportation modes like cycling and walking.

In India, where cities are growing at an unprecedented rate, degrowth concepts—such as limiting private vehicle use, fostering local economies, and repurposing urban spaces—are seen as potential solutions to pressing urban challenges. However, implementing these ideas in Indian cities has been anything but straightforward.

 

Barcelona’s Degrowth Blueprint: Lessons for India

Reclaiming Streets and Rethinking Urban Living

Cities worldwide are reimagining their streets and housing policies to prioritize people over cars and profits. Barcelona has led the way with its superblocks, a transformative urban planning model that restricts car movement within 400×400-meter zones, giving priority to pedestrians, cyclists, and public transport. The result has been a dramatic reduction in pollution and a resurgence of community spaces. Barcelona’s air quality improvements are striking—its PM2.5 levels dropped to just 6 µg/m³, a stark contrast to Delhi’s 250+ µg/m³ average, which remains one of the highest in the world.

 

Policy Tools for Financial Sovereignty

To ensure cities remain livable and accessible, financial policies must support public welfare over speculative interests. Barcelona and other progressive cities have embraced innovative fiscal strategies such as:

• Land Value Taxation (LVT): By taxing vacant properties, Barcelona ensures that land is utilized for public benefit rather than private speculation. The revenue generated is directed toward affordable housing projects, preventing gentrification and displacement.
• Public Banks: Cities like Berlin have explored state-owned banks that fund urban development and degrowth projects without relying on private profit motives, ensuring that public money serves public needs.
• Debt Audits: Barcelona’s citizen-led audits of municipal debt exposed exploitative loans and financial mismanagement, setting a precedent for similar investigations in Greece and other debt-burdened nations.

 

Indian Adaptations: Struggles and Lessons

Indian cities have attempted to adopt elements of these progressive urban policies, with mixed results.

• Chennai’s Pedestrian Plaza: Inspired by Barcelona’s superblocks, T. Nagar, a historic shopping district, was transformed into a pedestrian-friendly zone. However, weak enforcement and illegal vendor encroachments have undermined its effectiveness, illustrating the challenges of sustaining pedestrian-first policies in high-density commercial areas.
• Delhi’s Chandni Chowk Redevelopment: A similar effort was made to pedestrianize Chandni Chowk, one of Delhi’s oldest and busiest markets. However, opposition from traders and a lack of last-mile connectivity resulted in only a partial success. The project highlighted the need for better integration with public transport and stakeholder engagement.

 

Cooperative Housing & Affordable Living

As real estate prices continue to soar, cities are seeking alternatives to speculative property markets. Barcelona’s Sostre Cívic cooperative housing model has emerged as a sustainable and affordable solution. Under this system, tenants secure below-market-rate rentals through 75-year leases, ensuring housing remains collectively owned and insulated from market fluctuations.

 

Indian Experiments: Challenges in Housing Reform

India has experimented with cooperative and affordable housing models, but deep-seated issues limit their impact.

• Mumbai’s Slum Rehabilitation Authority (SRA): Drawing inspiration from cooperative housing, the SRA promised free apartments to slum dwellers in exchange for redeveloped land. However, corruption, eligibility disputes, and substandard construction have left many residents in worse conditions than before. Instead of empowering communities, the scheme has often benefited developers more than the urban poor.
• Bengaluru’s Collective Housing Societies: Some cooperative housing initiatives have emerged in Bengaluru, but land mafias, bureaucratic red tape, and speculative interests hinder their scalability. Without stronger governance and financial support, these projects struggle to provide a viable alternative to traditional real estate markets.

 

A Need for Systemic Change

Barcelona’s urban policies offer valuable lessons for India’s growing cities. Whether through superblocks, cooperative housing, or financial sovereignty measures, prioritizing people over profit remains key to building equitable, sustainable, and resilient urban spaces. However, without stronger enforcement, community engagement, and financial transparency, these progressive ideas risk being watered down or co-opted by vested interests. For Indian cities to truly reclaim their streets and housing for the people, systemic change is essential.

 

Public Transport & EV Infrastructure

Electric Mobility: Barcelona’s Success and India’s Mixed Progress

Barcelona has made significant strides in sustainable transportation, expanding its electric bus fleet, bike-sharing program (with 400+ stations), and over 1,000 EV charging points. These efforts have yielded tangible environmental benefits, cutting CO₂ emissions by 8,989 tons in 2023. By integrating electric mobility with urban planning, the city has demonstrated how proactive policies can drive cleaner, more accessible transportation systems.

India’s Mixed Progress: The Case of Delhi

India has taken steps toward electric mobility, but implementation challenges continue to hinder large-scale adoption. Delhi’s Electric Vehicle (EV) Policy, launched to promote sustainable transport, introduced subsidies for EVs and charging stations, showing early promise. However, inconsistent power supply, high costs, and unpredictable policy shifts have slowed its impact.

Policy Uncertainty and Implementation Gaps

One of the biggest challenges for Delhi’s EV policy has been inconsistency in execution. The Delhi Electric Vehicle Policy 2020 was initially set to expire in August 2023 but was extended until March 2025. Despite this extension, EV registrations in Delhi plummeted by 85% from January to November 2024, highlighting growing uncertainty among consumers and businesses. A key factor behind this decline was the abrupt withdrawal of incentives. In September 2024, the Delhi government removed the road tax waiver for electric cars and two-wheelers without prior notice. This sudden policy shift led to a sharp rise in EV prices, discouraging potential buyers and causing a significant drop in sales. The lack of clear, long-term directives has undermined consumer confidence, making it difficult for India’s EV market to achieve the momentum seen in cities like Barcelona.

The Way Forward

For India to truly transition to electric mobility, policies must be stable, transparent, and well-communicated. Incentives should be consistent, infrastructure investment must match demand, and public confidence in EV adoption must be actively maintained. By learning from global leaders like Barcelona, Indian cities can accelerate their transition to cleaner, more sustainable transportation systems.

Impact on Gig Economy Workers

• The policy’s ambitious targets have also raised concerns among gig economy workers.The Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023 mandates a complete transition to EVs by 2030 for aggregators and delivery service providers.Given that many gig workers use personal vehicles with a lifespan of 10-15 years, this requirement imposes a financial burden, especially considering the higher upfront costs of EVs compared to internal combustion engine vehicles.Additionally, the current charging infrastructure is deemed inadequate, further complicating the transition for these workers. ​

 

Comparative Performance with Other States

• While Delhi’s EV registrations have declined, other states like Maharashtra and Karnataka have reported growth in EV sales during the same period.This disparity suggests that policy inconsistencies and the suspension of key incentives in Delhi have discouraged potential buyers, whereas other states have maintained or enhanced their support for EV adoption. ​

Finally, we can conclude that Delhi’s EV Policy, though well-intentioned, faces challenges due to inconsistent implementation, ambitious mandates affecting vulnerable worker groups, and a lack of sustained incentives. Addressing these issues requires clearer, long-term policy frameworks, adequate support for affected stakeholders, and a stable incentive structure to rebuild confidence and promote the adoption of electric vehicles in the capital.

Hyderabad Metro: A PPP project initially hailed as a success now struggles with low ridership and financial disputes.

In 2008, a consortium led by Maytas Infra, a company promoted by the family of Satyam Computer Services founder B. Ramalinga Raju, was awarded the Hyderabad Metro project. Concerns were raised about the project’s viability, especially regarding the allocation of 296 acres of prime land for commercial exploitation. E. Sreedharan, the then Managing Director of Delhi Metro Rail Corporation, cautioned that this could lead to a significant political scandal, suggesting that the consortium had a hidden agenda to extend the metro network to private land holdings for substantial profit. Following the exposure of a massive financial fraud involving Satyam Computer Services in January 2009, the Andhra Pradesh government reviewed its decision and subsequently canceled the concession agreement with the Maytas-led consortium due to their failure to achieve financial closure and provide a performance guarantee. ​

Delays in construction, lack of last-mile connectivity, and suspension of work on certain routes, such as the Old City stretch between Mahatma Gandhi Bus Station and Falaknuma, resulted in a cost escalation of approximately ₹2,600 crore. The total project cost increased from the initially estimated ₹16,571 crore to ₹18,971 crore, marking a 16% rise.

Political factors also contributed to the delays. For instance, the All India Majlis-e-Ittehadul Muslimeen (AIMIM) party faced allegations of hindering the metro’s extension into Hyderabad’s Old City, with critics claiming that the party’s leadership was obstructing progress to maintain political influence. ​

Despite these challenges, significant portions of the Hyderabad Metro are operational, providing much-needed connectivity in the city. However, ongoing issues related to financial viability, political interventions, and project management continue to pose challenges to its full realization and efficiency.

Despite the setbacks, there are lessons Indian cities can learn from Barcelona’s successes:

• Localized Adaptation: Instead of copy-pasting Barcelona’s model, Indian cities must develop degrowth strategies suited to local socio-economic realities.
• Stronger Public Engagement: Urban planners should work closely with local communities and businesses to ensure their interests are considered.
• Transparent Governance: Anti-corruption measures and strict accountability frameworks must be implemented to ensure proper use of funds allocated for sustainability projects.
• Infrastructure Overhaul: Without reliable public transportation and well-maintained pedestrian zones, degrowth initiatives will remain impractical.

 

Indian Cities Adopting Barcelona’s Degrowth and Collaborative Consumption Models

Bangalore’s Failed “Car-Free Zones”

Inspired by Barcelona’s superblocks, Bangalore attempted to implement pedestrian-only zones in key commercial districts like Brigade Road and Church Street. However, the initiative crumbled due to poor planning, resistance from local businesses, and inadequate enforcement.

Controversy: Reports surfaced of corruption within the Bangalore Metropolitan Transport Corporation (BMTC), where officials allegedly took bribes from auto-rickshaw unions and parking contractors to sabotage the project. Without robust public transport alternatives, the car-free zones only led to increased traffic congestion in surrounding areas.

Mumbai’s Struggle with “Commons-Based Sharing” Initiatives

Barcelona has successfully implemented various forms of collaborative consumption—such as public bike-sharing and community-run cooperative businesses. Mumbai, in an attempt to replicate this, introduced the “Aapli Bike” public bicycle-sharing system in 2019. However, the project was marred by corruption and poor execution.

Controversy: A scandal erupted when investigative reports revealed that contracts had been awarded to a politically connected company that failed to deliver on promises. Within a year, many bicycles were either stolen or abandoned due to lack of maintenance, rendering the initiative ineffective.

Delhi’s Green Corridors and Failed Sustainable Infrastructure Projects

Taking inspiration from Barcelona’s green spaces and urban renewal projects, Delhi’s administration launched its “Green Corridor” initiative, aiming to create pedestrian-friendly pathways and bicycle lanes.

Failure: What was meant to be a public-friendly, environment-conscious initiative turned into a logistical nightmare. The bicycle lanes were soon encroached upon by vendors and illegal parking, while poor urban planning led to increased traffic congestion elsewhere.

Corruption Allegations: Reports surfaced that funds allocated for tree-planting initiatives were siphoned off by contractors who submitted fraudulent invoices for trees that were never planted.

Hyderabad’s Smart City Project and the Ghost of Overambition

Hyderabad’s Smart City initiative sought to incorporate Barcelona’s degrowth philosophy by promoting mixed-use urban spaces, shared mobility, and low-carbon infrastructure. However, most of these projects remain incomplete or abandoned due to excessive bureaucratic red tape and misallocation of funds.

Controversy: The Telangana government allocated large sums to build “eco-friendly” housing and waste-to-energy plants, but media reports later exposed how contracts were given to firms with no prior experience, leading to significant delays and project failures.

 

Other Global Adaptations and Lessons

Southern Urban Experiments

• Kerala, India: Partnered with cooperatives to decentralize 40% of its budget to local councils.
• Porto Alegre, Brazil: Pioneered participatory budgeting in the 1990s, though later eroded by neoliberal shifts.

Degrowth Finance Beyond Cities

• Regional Mutual Credit Systems: Catalonia’s RESnetwork enables interest-free trade among SMEs 7.
• EU-Level Reforms: Proposals for degrowth bondsto fund cross-border green transitions, akin to wartime financing 

 

Challenges and Controversies of Barcelona degrowth model

Capitalist Co-optation

Critics argue Barcelona’s reforms are “degrowth lite”—limited by Spain’s capitalist framework. For example:

• The city’s “green growth” rhetoric sometimes masks concessions to tourism and real estate lobbies.
• Cooperative housing remains a niche (under 5% of stock), failing to disrupt broader speculation.

Fiscal Dependence

Despite autonomy efforts, Barcelona relies on Spain’s central government for 40% of its budget, constraining radical policies. Austerity mandates during crises (e.g., post-2008) forced cuts to social programs 

Scalability

Mediterranean models like Barcelona’s thrive in dense, activist-rich cities but struggle in car-dependent or neoliberal contexts (e.g., U.S. suburbs)

 

Controversies & Challenges in India’s Degrowth Transition

Corruption & Mismanagement

• Mumbai Coastal Road Project: A $2.2 billion mega-project aimed at reducing congestion has been criticized for environmental violations, cost overruns, and displacing fishing communities.

Initially slated for completion by the end of 2022, the 10.6 km coastal road project faced a 16-month delay due to a court-ordered stay and the COVID-19 pandemic, pushing the deadline to July 2023. Further complications, including adverse weather conditions and construction challenges, have extended the expected completion date to May 2025. These delays have led to significant cost escalations. The Brihanmumbai Municipal Corporation (BMC) reported a cost overrun of ₹1,243 crore due to construction delays. Additionally, specific sections of the project experienced increased expenses; for instance, the segment from Priyadarshini Park to Baroda Palace saw its original cost rise by ₹99.79 crore.

In September 2021, BJP leader Ashish Shelar alleged financial irregularities amounting to ₹1,000 crore in the MCRP, citing concerns over the quality of materials used and potential mismanagement. The following month, Shelar increased the alleged amount to ₹1,600 crore, prompting demands for a Special Investigation Team (SIT) probe. The BMC refuted these claims, stating that between October 2018 and December 2020, work worth ₹683.82 crore had been executed without any financial misconduct.

To address the delays, the BMC imposed fines totaling ₹31 crore on three contractors for missing deadlines. Despite these penalties, concerns remain about the adequacy of such measures given the scale of the project’s budget overruns.​

The Mumbai Coastal Road Project exemplifies the complexities and challenges associated with large-scale urban infrastructure developments. Addressing these issues requires enhanced project management, transparent financial oversight, and proactive measures to mitigate delays and cost escalations.

• Smart City Mission Failures: Under India’s Smart Cities Mission, many projects—like Pune’s intelligent traffic system—remain incomplete due to fund diversion and contractor scams.

​India’s Smart Cities Mission (SCM), launched in 2015 to modernize urban infrastructure across 100 cities, has faced significant challenges leading to delays and unmet objectives.​ As of January 2023, 68 out of the 100 designated smart cities had not achieved their physical targets. In contrast, 32 cities exceeded their planned projects, with some completing up to four times the initial number. This disparity suggests an uneven implementation of the mission’s objectives.

The SCM initially proposed investments totaling ₹2,05,018 crore. However, by early 2023, only 7,821 projects worth ₹1,81,349 crore had been initiated, and 5,343 projects valued at ₹1,00,450 crore were completed. Furthermore, the mission faced a significant budget reduction of 70%, leaving just ₹2,400 crore from the revised estimates of 2023-24, casting doubt on the completion of pending projects.

 

Implementation Challenges

Several factors have impeded the mission’s progress:​

• Administrative Hurdles: Delegating decision-making and implementation to Special Purpose Vehicles (SPVs) and relying on consultants led to biased decisions and increased social inequalities.

• Funding Issues: Many cities struggled to secure funds through Public-Private Partnerships (PPPs) and loans. Only 6% of projects were funded via PPPs, and about 50 cities couldn’t generate any funding through this route.
• Lack of Basic Services: The focus on technological integration overshadowed the need for essential services. Many citizens still lack access to basic amenities, highlighting a misalignment between project goals and ground realities.

The Smart Cities Mission’s shortcomings underscore the complexities of urban transformation in India. Addressing these challenges requires a holistic approach that prioritizes essential services, ensures equitable development, and fosters genuine public participation to create sustainable and inclusive urban environments.

 

Resistance from Political & Business Interests

• Car Lobby Opposition: Attempts to pedestrianize Indian streets often face pushback from automobile lobbies and politicians reliant on petrol taxes.

Efforts to pedestrianize streets in India have faced significant resistance from powerful automobile lobbies and political stakeholders who benefit from petrol taxes and vehicle-centric urban planning. While pedestrian-friendly streets are known to improve public safety, air quality, and overall urban livability, the push to reduce car dominance often encounters institutional and economic roadblocks.

 

Influence of the Automobile Lobby

India’s automobile industry, one of the largest in the world, holds substantial influence over policy decisions. Major car manufacturers, fuel companies, and auto part suppliers lobby against pedestrianization, fearing a decline in vehicle sales, reduced fuel consumption, and constraints on road space for private transport. These industries argue that:

• Reduced road access harms businesses: Automobile companies often claim that restricting vehicle movement in key urban areas will reduce footfall for businesses dependent on car-owning customers.
• Car sales drive economic growth: The auto industry contributes significantly to GDP and employment, making policymakers hesitant to implement pedestrian-first policies that could slow its expansion.
• Road infrastructure is built for vehicles: Many infrastructure projects prioritize flyovers, highways, and expressways, reinforcing the notion that roads exist primarily for motorized transport.

 

Political Dependence on Petrol and Vehicle Tax Revenue

The Indian government collects a substantial portion of its revenue from fuel taxes, road tolls, and vehicle registration fees. Any policy that promotes walking, cycling, or public transport threatens to reduce this income. Several state and central authorities oppose pedestrianization due to:

• Loss of petrol and diesel tax revenue: The high tax rates on fuel contribute significantly to government funds. A shift toward pedestrian and non-motorized transport could lower fuel demand, impacting revenue streams.
• Political pressure from transport unions: Autorickshaw and taxi associations, reliant on urban congestion for business, resist pedestrian-friendly changes that might affect their routes and income.
• Public backlash from car-owning voters: Politicians are reluctant to alienate middle-class and affluent voters who own cars and perceive pedestrianization as a restriction on personal freedom.

 

Case Studies of Resistance

Several Indian cities have proposed pedestrian-friendly zones, only to face opposition:

• Connaught Place, Delhi (2017): A plan to pedestrianize the inner circle of CP was abandoned after protests from traders, vehicle owners, and businesses fearing revenue loss. The project was shelved indefinitely.
• Church Street, Bengaluru: While initially facing resistance from car users and businesses, the project succeeded after proving that pedestrianization increased commercial activity and foot traffic. However, expanding this model has been slow due to pushback from vehicle owners.
• Mumbai’s Marine Drive Pedestrianization Proposal: Plans to limit vehicular movement in favor of wider sidewalks and cycle lanes faced strong opposition from car lobbies and local politicians, leading to delays in implementation.

 

The Path Forward: Overcoming Opposition

For pedestrianization to succeed, urban planners and policymakers must:

• Provide economic incentives: Demonstrate that pedestrian-friendly streets boost local businesses, as seen in global cities like Barcelona and New York.
• Invest in public transport alternatives: Expanding metro networks, bus rapid transit, and cycling infrastructure can reduce car dependence without alienating motorists.
• Gradual implementation: Instead of sudden bans, cities can introduce timed pedestrian zones, car-free weekends, and hybrid traffic management strategies.
• Public awareness campaigns: Engaging citizens in the benefits of pedestrian-friendly urban spaces can build support against the influence of car lobbies.

Despite the opposition from automobile lobbies and petrol tax-dependent politicians, India’s urban future must prioritize pedestrians for safer, healthier, and more sustainable cities. Strategic policy decisions, backed by economic evidence and public support, can help break the dominance of car-centric planning and create more livable urban spaces for all.

 

Real Estate Speculation: Barcelona’s cooperative housing clashes with India’s builder-politician nexus, where land is treated as a speculative asset rather than a public good.

In global cities like Barcelona, cooperative housing models have emerged as a progressive alternative to speculative real estate markets, promoting affordability, community ownership, and resistance to gentrification. In contrast, India’s real estate sector remains dominated by a powerful builder-politician nexus that treats land as a speculative asset rather than a public good. This fundamental difference in approach has resulted in vastly different urban housing landscapes, with cooperative housing struggling to take root in India due to entrenched political and economic interests.

 

Barcelona’s Cooperative Housing Model

Barcelona has pioneered cooperative housing as a response to skyrocketing property prices and corporate-driven real estate speculation. This model emphasizes:

• Non-speculative ownership: Residents collectively own buildings through cooperatives, preventing resale for profit and ensuring long-term affordability.
• Public land leasing: The city government supports cooperatives by providing long-term leases on public land at low costs, ensuring housing remains a public resource rather than a private commodity.
• Community-led development: Housing decisions are made democratically, emphasizing sustainable, inclusive, and resident-driven urban planning.

Examples like La Borda and Sostre Cívic showcase how cooperative housing can provide affordable, high-quality homes without falling prey to market speculation.

 

India’s Builder-Politician Nexus: Land as a Speculative Asset

India’s urban housing sector operates under a vastly different paradigm, where land and housing are not seen as essential rights but as financial instruments for speculation and profit. The real estate market is shaped by:

a) Politician-Builder Collusion

The builder-politician nexus involves real estate developers working closely with politicians and bureaucrats to manipulate land use policies, acquire land at low prices, and inflate property values. This results in:

• Land hoarding: Builders and investors buy large land parcels and keep them undeveloped to drive up prices.
• Illegal land conversions: Agricultural or public land is reclassified for commercial development, often benefiting private entities rather than the general public.
• Weak rental and cooperative models: Unlike Barcelona, rental housing and cooperative living are sidelined in favor of speculative buying and selling.

b) Luxury Development Over Affordable Housing

• Focus on high-end real estate: Developers prioritize luxury apartments, gated communities, and commercial complexes over affordable housing, catering to wealthy investors rather than middle-class and lower-income residents.
• Vacant homes, unaffordable cities: Millions of housing units remain unsold or unoccupied as developers wait for property values to appreciate rather than selling them at affordable prices.

c) Public Land Privatization

Unlike Barcelona, where the government retains control over public land for cooperative housing, Indian cities often privatize land under the guise of development. Public housing schemes frequently fall into the hands of private developers, resulting in:

• Evictions and displacement: Slum redevelopment projects displace residents to peripheral areas, while the reclaimed land is used for luxury projects.
• Failure of government housing schemes: Initiatives like the Pradhan Mantri Awas Yojana (PMAY) struggle due to corruption, land acquisition hurdles, and delays.

 

Why Cooperative Housing Struggles in India

Efforts to introduce cooperative housing in India have been largely unsuccessful due to:

• Lack of policy support: The government does not prioritize land leasing for cooperatives, unlike Barcelona.
• Regulatory challenges: Cooperative societies are often mismanaged and plagued by internal disputes and corruption.
• Speculative real estate culture: Land ownership is seen as an investment tool rather than a social good, making non-speculative models unpopular.

 

The Path Forward: Can India Adopt Barcelona’s Model?

To shift toward a more sustainable and inclusive housing market, India must:

• Reform land policies: Introduce long-term public land leasing for affordable and cooperative housing.
• Break the builder-politician nexus: Implement stricter regulations on land hoarding and speculative practices.
• Promote community-driven housing: Provide incentives for cooperative and rental housing to reduce market speculation.

Barcelona’s cooperative housing model provides a compelling alternative to real estate speculation, but India’s entrenched builder-politician nexus prevents similar initiatives from flourishing. Without systemic reforms, housing in India will continue to serve as a financial asset for the wealthy rather than a basic right for the public.

Cultural & Implementation Barriers

• Informal Economy Clashes: Barcelona’s superblocks work because of strict enforcement. In India, street vendors and informal settlements often resist top-down urban planning.
• Lack of Citizen Participation: Unlike Barcelona’s deliberative democracy approach (e.g., citizens’ assemblies), Indian urban planning remains bureaucratic and exclusionary.

 

Case Studies: Successes & Failures

Success: Surat’s Water Recycling Model

Surat, inspired by Barcelona’s sustainability efforts, became India’s first city to recycle wastewater at scale, reducing dependence on freshwater sources.

Failure: Delhi’s Odd-Even Scheme

Modeled after car-restriction policies in Barcelona and Mexico City, Delhi’s odd-even vehicle rationing failed due to poor public transport backup and exemptions for VIPs.

Mixed Results: Aatmanirbhar Smart Cities

The Smart Cities Mission borrowed Barcelona’s IoT-based solutions (smart bins, LED streetlights) but many projects remain underutilized or abandoned due to poor maintenance.

 

Why Barcelona’s Model Faces Resistance in India

Socio-Economic Divide and Resistance from Businesses

Unlike Barcelona, where local businesses and residents were actively engaged in the degrowth movement, Indian businesses—especially small traders—view these initiatives as threats to their livelihoods. Car-free zones and pedestrianized markets often see strong pushback from shop owners fearing reduced footfall and sales.

Bureaucratic Corruption and Lack of Political Will

Many sustainability projects fail in India due to corruption at multiple levels. Funds meant for green initiatives are frequently misappropriated, and contracts are awarded based on political affiliations rather than competence. Additionally, enforcement of sustainability policies remains weak due to vested interests in real estate and automobile industries.

Infrastructural Challenges and Poor Urban Planning

Barcelona’s degrowth success relies on well-planned public transportation and pedestrian-friendly infrastructure. In Indian cities, public transport remains unreliable, and pedestrian spaces are often encroached upon. Without strong infrastructure support, degrowth initiatives are difficult to sustain.

Cultural Differences and Public Perception

In Barcelona, degrowth aligns with a broader cultural movement toward minimalism and sustainability. In India, however, urban aspirations are still centered around upward mobility, car ownership, and high consumption, making degrowth a hard sell.

 

The Way Forward: Can India Truly Embrace Degrowth?

1. Strengthening Local Governance

• Municipal Bonds & Participatory Budgeting: Indian cities must move beyond central funding and adopt Barcelona-style financial autonomy.

Barcelona leverages municipal bonds to fund green transitions, such as renewable energy projects and public transport, bypassing reliance on central government grants or private financiers. For example, the city’s superblocks (car-free zones) were partly financed through local bonds, ensuring community control over urban redesign.

Participatory budgeting—a hallmark of Barcelona’s democratic governance—allows residents to allocate portions of the municipal budget (e.g., €30 million annually) to projects like cooperative housing or cycling infrastructure. This aligns with degrowth’s emphasis on collective decision-making over austerity or top-down austerity.

Further, the Sostre Civic housing cooperative exemplifies financial autonomy: residents pay below-market rates for homes under 75-year leases, removing properties from speculative markets. Funding comes from member contributions, ethical banks, and municipal land grants. Similar models like La Borda use collective savings and low-interest loans to build cost-neutral housing.

The mechanism that operates was decommodification (assets are held in commons trusts, preventing private profiteering) and community land trusts (CLTS) in which public land is leased to cooperatives at nominal rates.

Unlike public-private partnerships (PPPs), Barcelona’s public-commons collaborations prioritize grassroots groups over corporations. For instance:

• Energy Cooperatives: Som Energia, a renewable energy coop, partners with the city to decentralize energy grids, funded by citizen shares.
• Local Currencies: The Eco currency, pegged to the euro, circulates in community networks to bolster local trade

Indian example of Community-Led Urban Labs: Pilot projects like Kochi’s People’s Urban Living Lab show promise in integrating informal workers into planning.

 

Policy Reforms

• Land Value Taxation: To curb speculation, cities like Bengaluru could adopt Barcelona’s vacant property tax to incentivize affordable housing.
• Stricter Pollution Laws: Enforcing Barcelona-style low-emission zones in Delhi and Mumbai could reduce vehicular pollution 1.

 

Cultural Shift: From Growth to Well-Being

As journalist Alvaro Alvarez notes, degrowth requires “a mindset shift away from billionaire valorization”. India must redefine success beyond GDP—focusing on clean air, equitable housing, and public health.

 

Autonomy as Radical Pragmatism

Barcelona’s financial autonomy demonstrates that degrowth is not just austerity but reclaiming economic sovereignty—from cooperative housing to democratic budgeting. Yet its contradictions reveal the tension between local action and systemic change. As scholar Matthias Schmelzer notes, “Degrowth finance must dismantle growth’s infrastructure while prefiguring the next system” . For cities worldwide, the lesson is clear: autonomy requires both bold policy and relentless grassroots pressure.

Key Sources:

• Barcelona’s cooperative housing 
• Degrowth finance critiques 
• Global adaptations 

 

A Rocky but Necessary Transition

While Barcelona’s degrowth model offers valuable insights, its direct application in Indian cities has faced significant hurdles due to corruption, infrastructural inefficiencies, and cultural mismatches. While some cities have attempted to implement sustainable urban initiatives, most have either failed outright or been marred by controversy. If India truly wants to embrace degrowth and collaborative consumption, it must develop solutions that address local challenges rather than blindly imitating Western models.

Barcelona’s degrowth model offers viable solutions for India’s urban crises, but corruption, political resistance, and cultural inertia remain major hurdles. While some initiatives—like Surat’s water recycling—show promise, others collapse under poor governance and vested interests.

For India to truly adopt degrowth, it must democratize urban planning, curb real estate speculation, and prioritize ecological limits over endless expansion. The road ahead is fraught with challenges, but the alternative—unbreathable air, unaffordable cities, and unchecked inequality—is far worse.

As a serial TedX speaker and young environmentalist Vimlendu Jha warns: “We cannot have private solutions to public problems. Air pollution can only be solved through collective action.”

(The author is Editor of Manager)