Just read an article on Wired on ideas for smoother traffic flow. Some ideas suggested are not having any signs or signals at intersections, so drivers are more cautious and so on. Well, it kind of works that way here in Pune, with people ignoring signals, pedestrians walking on streets instead of footpaths, cyclists and bikers zipping through the footpaths at times to avoid a long queue of vehicles and so on.
And plus, the potholes, speed-brakers and gutters (which are not aligned with the road height) do ensure the vehicles don't race beyond a particular limit.
I guess the Indian road authorities had this all figured out much, much earlier!