reshaping economic geography in latin...

of 19 /19

Author: others

Post on 13-Mar-2020




0 download

Embed Size (px)


  • 2

    Reshaping Economic Geography in Latin America. We also published 3

    policy booklets for the regions with the most complex challenges of economic

    geography: (a) Development in 3D -- Central Asia; (b) Africa’s Development

    in 3D; and (c) Pacific Islands: Development in 3D.

    iii. We made a movie out of the report because the subject of economic geography is both complicated and interesting. The idea was to make the

    subject simpler, and to show the human side to the economic arguments

    presented in the report. The film contains stories of people from Brazil,

    India, Nigeria, Turkey and China, and also stories from Russia. BBC World

    News showed a longer version of this film in January 2009 for 2 weeks.

    iv. Dissemination and discussion of the WDR2009 has been co-hosted by governments (e.g., the Prime Minister‟s Offices, Ministries of Finance,

    Ministries of Planning, and Ministries of Foreign Affairs) in the following

    countries during 2008-2010: Armenia, Australia, Belgium, Bhutan, Bolivia,

    Brazil, China, Colombia, Cote d‟Ivoire, Czech Republic, Denmark, Egypt,

    Ethiopia, Finland, France, Georgia, Germany, Greece, India, Indonesia, Iran,

    Israel, Japan, Kazakhstan, Kenya, Korea, Malaysia, Moldova, Morocco,

    Nepal, the Netherlands, Norway, Peru, the Philippines, Poland, Portugal,

    Russia, Serbia, Singapore, South Africa, Spain, Sri Lanka, Sweden,

    Switzerland, Thailand, Tunisia, Uganda, Ukraine, United Kingdom, United

    States, Uzbekistan, Vietnam, West Bank and Gaza, and Yemen.

    Video conferences were held to discuss the Report for the following countries: Afghanistan, Mongolia, Tajikistan, Kyrgystan, Burundi,

    Rwanda, and Tanzania. WBI Marseille also organized a 2-day WDR

    event where officials from Algeria, Lebanon, Iraq, Iran, Egypt, Oman,

    Yemen, and Jordan participated.

    v. Copies of the WDR2009 were mailed to Ministers of Planning and Ministers of Finance in over 90 developing countries. Several thousands of researchers

    and authors whose work the WDR2009 cited; and professors teaching course

    on economic development, urban economics, regional science, and trade were

    notified via email about the WDR2009.

    vi. Since the publication of the WDR2009, there are several area-, country-, and region-specific reports using the principles and insights of the WDR. These

    operationalizations include the following reports, respectively, on Mindanao,

    the Philippines; Chongqing, China; Sri Lanka, Iran, Central Asia, and North

    Africa and Middle East.

    vii. A course on the WDR2009 was developed and delivered to a few hundreds of officials from China‟s National Development and Reform Commission

    working on China‟s 12th

    5-Year Plan in April 2010.

    viii. A second edition of the WDR2009 Overview Volume with revisions and new materials was published in April 2010.

    ix. Operationalization of the WDR2009 continues: Work on Russia, Egypt, and Colombia is ongoing and their reports are expected in FY2011.,,contentMDK:21966026~pagePK:64257043~piPK:437376~theSitePK:4607,00.html

  • 3

    Selected Reviews of the WDR 2009:

    ―With this report the World Bank has once again shown itself to be worthy of the title

    ‗knowledge bank‘… In my view the authors of the WDR have succeeded in giving the

    debate on growth and distribution an extra geographic dimension.‖ Bert Koenders,

    Minister for Development Cooperation of the Netherlands

    ―Having read and benefited from nearly all of the 30-plus Development Reports the

    World Bank has published, I would rate Reshaping Economic Geography as by far the

    most comprehensive, productive and effective. It is simply a magisterial work. A new

    practical economic geography was needed, and the report provides it superbly. By

    casting economic development in ―topographic‖ terms at varying levels of scale, the

    report generates new comparative opportunities and novel insights. The World

    Development Report 2009 should be required reading for students of economic

    geography.‖ Harm J. de Blij, Professor Emeritus, Department of Geography,

    Michigan State University.

    ―The World Bank 2009 World Development Report is a masterpiece. By proposing to

    reshape economic geography, it is not always politically correct but it provides a lot of

    food for thought, particularly on the role of urbanization in development. ….. Reshaping

    Economic Geography is a much welcome and provoking must-read for all human

    settlements experts.‖ Daniel Biau, Director for Regional and Technical Cooperation,


    "Vor uns liegt das bedeutendste wirtschaftsgeographische Werk seit Paul Krugmans

    "Geography and Trade" von 1991... sei der diesjährige Weltentwicklungsbericht

    insbesondere auch Studenten und Schülern empfohlen".

    ―This is the most important work on economic geography since Paul Krugman's

    Geography and Trade in 1991, and is specifically recommended for students.‖

    Frankfurter Allgemeine Zeitung (Germany)

    ―Hats off to [the] World Bank! This was the comment coming from all or most who

    attended the Conference on the World Development Report 2009 and Implications for Sri

    Lanka organized by the local think-tank, Institute of Policy Studies. The World Bank

    should be thanked for coming out with this great book ...‖ The Nation (Sri Lanka)

    ―In that dreadful year of 1809 no one could have even imagined that, at some stage in the

    distant future, Sweden and Finland would be among the world's twenty wealthiest and

    technologically most advanced countries… Three main factors have driven economic

    development over the last fifty years: communications, trade and economic integration…

    This year‘s World Bank Report, Reshaping Economic Geography, shows emphatically

    the importance of economic integration for the development of welfare.‖ Carl Bildt,

    former Prime Minister and current Minister for Foreign Affairs of Sweden at the

    Conference on the future of Finnish-Swedish relations -Landmark Year 1809

  • 4

    “The report is an extremely well-crafted document. It is compact, instructive and

    informative, and reads well. Its tripartite divisions of scale (local, national, and

    international), development dimensions (density, distance, and division), and solutions

    (institutions, infrastructure, and interventions) creates a sort of Rubik‘s Cube of

    development problems and solutions at different geographical scales which allows both

    for a simple understanding of the complexity of development and provides,

    simultaneously, basic guidelines but also an array of options about how to address

    development issues in different parts of the world. The ‗development in 3-D‘ idea

    becomes extremely appealing and contributes to make economic geography sexy. But

    perhaps the greatest novelty of the report lies in its policy recommendations….” Andrés

    Rodriguez-Pose, Professor of Economic Geography, London School of Economics,

    in Journal of Economic Geography.

    ―The 2009 World Development Report has been universally hailed as a step forward in

    the thinking of the World Bank. It represents a break with the Bank‘s traditional

    approach in which space is considered as neutral for economic development, and

    provides irrefutable proof of the importance of economies of localization and scale for

    the start, growth development and maintenance of economic activities in a given area.‖

    Jean-Pierre Elong Mbassi, Secretary General of the United Cities and Local

    Governments of Africa, in Villes en Développement

    ―The bank‘s research yields lots of new insights.‖ The Economist.

    ―A controversial report, no doubt, but a useful one, if it forces a policy rethink.‖ CNBC


    ―We need to use these types of reports to make the world a less miserable place live in…

    and ensure that people have better access to health, education and other services… the

    findings would help in driving policy and investment, especially in rural areas.‖ Pravin

    Gordhan, Minister of Finance of South Africa

    ―Economic development is both a cause and a consequence of urbanization…. But until

    now the literature has lacked an accessible account of the other direction of causation, by

    which urbanization propels economic growth. World Bank Development Report 2009

    provides that account in an elegant and compelling manner ... This is a volume that is

    meant to start a conversation, even to provoke, and because its thesis runs counter to the

    conventional wisdom, it will probably succeed in doing so when a more cautious

    academic treatment might have failed… WDR 2009 is also notable for the extent to

    which it illustrates spatial economic patterns and change in map form, drawing upon

    several newly available bodies of work….‖ Mark R. Montgomery, Professor, State

    University of New York at Stony Brook, in Population and Development Review

  • 5

    “Ce rapport, s’il est rigoureux dans son « regard », ses notes, ses schémas et ses cartes,

    tire à juste titre certaines sonnettes d’alarme mais incite aussi à l’action : accompagner

    les connexions et les connectivités qui tissent chaque jour une nouvelle géographie, ne

    pas avoir peur de ces nouveaux espaces et se concentrer sur leur corrélation avec les

    concentrations humaines et le développement qu’ils produisent … C’est pourquoi il

    convient de saluer l’effort de la Banque mondiale, qui ont, grâce au rapport 2009 sur le

    développement dans le monde, réintroduit l’espace et la gestion des transformations

    spatiales dans ce « temple de la pensée économique » que constitue la Banque mondiale”

    ―The Report is not only rigorous in its insights, its analyses, its patterns and its maps, but

    also rightly challenges us to take actions to accompany the spatial transformations and

    their correlations with human concentrations and development… The World Bank should

    be praised for having reintroduced space and spatial transformations into the

    development policy debate…‖ Regis Koetschet, Director General, International

    Cooperation and Development, (Ministry of Foreign and European Affairs (France)

    ―The World Bank‘s 2009 World Development Report is a provocative intervention for

    South Africa. At its heart is a detailed analysis of the relationship between economic

    success and geography, drawing on rich historical evidence worldwide.‖ Business Day

    (South Africa)

    ―Tom Friedman has got his challenger. The world is not flat, says the World Bank, in its

    latest World Development Report …‖ Business Standard (India)

    ―I simply love this book. It is fantastic. It is all about what many of us in Sri Lanka

    working in the fields of poverty, inequality and regional development have been

    subconsciously looking for. This book theoretically conceptualizes and articulates many

    things which we have observed and developed an instinct about, over the last decade at

    least.‖ Ramani Gunatilaka, Research Fellow of the Institute of Policy Studies (Sri


    ―This provides us an empirically-based message and perspective that we need.‖ Zarko

    Sunderic, Head of the Poverty Reduction Strategy at the Office of the Deputy Prime

    Minister of Serbia.

    “Очевидно как важны такие исследования для Казахстана, страны с огромными пространствами и рассредоточенностью населения… Поэтому есть смысл

    прислушиваться к советам Всемирного банка и других институтов развития.”

    ―The report is very important for Kazakhstan, a vast country with dispersed

    population…its recommendations should be adhered to…‖ Газета (Gazeta


  • 6

    “Так что стоит сделать выводы.”

    “We should face reality and make use of the Report‘s findings.‖ Деловой Казахстан

    (Delovoi Kazakhstan)

    ―El nuevo informe replantea nuestra estrategia de desarrollo y es de particular

    importancia para nuestro país, medida que avanzamos en un proceso de

    descentralización económica, política y administrativa. Los gobiernos y el sector

    privado deben coordinar sus esfuerzos para que los beneficios del crecimiento

    económico en el Perú y en otros países, llegan a todos, especialmente a aquellos que

    durante años se han quedado atrás.”

    ―The report re-frames our development strategy and is of particular importance to our

    country as we go about a process of economic, political and administrative

    decentralization. Government and the private sector need to unite and coordinate their

    efforts to that the benefits of economic growth in Peru and in other countries, reach

    everybody, especially those who for years have been left behind." Peter Anders Moores,

    President of the Lima Chamber of Commerce, Peru.

    ―I want to recognize the empirical richness of the report, replete with stylized facts—

    statistical data, graphs, tables, examples and case studies.‖ Ray Hudson, Pro-Vice

    Chancellor and Professor of Geography, Durham University, England.

    ―This is an impressive research and policy document. The particular strength of the

    report is in recommending sound spatial policies for countries that are undergoing rapid

    economic development and industrialization.‖ Stephan Klasen, Professor of University

    of Gottingen in Rural 21: The International Journal for Rural Development

    ―The report calls for a new contract for Africa -- one which focuses far greater attention

    on encouraging more regional integration and more porous borders -- to help offset the

    secular deline in cross-border African migration. The new approach could be an

    important way to help African cities reach their full potential as drivers of growth.‖

    Robert M. Buckley and Thomas D. Buckley in Environment and Planning A

    ―This report should make a contribution to stimulating thinking on the relationships

    between geography and economics, which has already given rise to passionate debate in

    the English-speaking countries.‖ Olivier Walther, Geographer, Centre for Population,

    Poverty and Public Policy Studies (Luxembourg) in European Journal of Geography

    ―What makes the report so interesting [is] the way they challenge previously accepted

    concepts of development strategies.‖ Asia Views in Tempo (Indonesia), Newsbreak (the

    Philippines), Today (Singapore), Bangkok Post and Malaysian Business,

  • 7

    "Ver la economía a través de la lente de la geografía es muy valioso… [El informe

    muestra]... la importancia de 'clusters', es decir, sitios en los que las empresas se

    retroalimentan y permiten que haya un crecimiento económico en centros urbanos."

    "Looking at the economy through the lens of geography is very valuable …Urban centers

    are needed to create places where businesses can benefit from reinforcement

    mechanisms…" El Comercio (Ecuador).

    ―In research[ing] some data for a chart, I took a peek at the World Development Report

    2009... Wow… Loads of cartograms and maps and some interesting solutions...‖ Hugo

    Ahlenius of Nordpil Custom Maps and GIS.

    2. Outputs

    Main products (see next 2 pages): The World Development Report 2009

    (English), and its 12 foreign language editions.

    Commissioned background notes and papers (see Annex 1)

    A documentary based on the

    WDR2009 (in English with

    subtitles in the following


    Chinese, Japanese, Vietnamese,

    Thai, Bahasa (Malay-Indonesian),

    Turkish, Russian, Polish, Arabic,

    French, Portuguese, and Spanish.

  • 8

    WDR Companion Volumes:

    WDR 2nd

    Edition Overview

    WDR Coursebook for Policymakers


    Policy Booklets:

  • 9

    Operationalizations of the WDR2009:

  • 10

    3. Major Difficulties

    There were no real difficulties, but the main challenge was to complete the background

    work within the tight deadline required to ensure the World Development Report adhered

    to the annual production cycle. There were three components to the work for which the

    major challenges is listed below:

    i. Preparation of background notes: Alignment of background notes to WDR chapters and timely delivery were challenges. The smaller the gap between the

    format and content of the background notes and the specific sub-topics of chapters

    the less time was needed to synthesize findings. This Report drew heavily from

    economic history spanning 2 centuries, and also new data and materials. The

    background work for the report was intensive.

    ii. Consultations during the preparation of the report: Ensuring adequate consultation while having enough time to physically write the document was a challenge. The

    consultation was extensive and hence time consuming. This WDR not only had a

    panel of academic advisors but also a panel of policy makers nominated by VPs

    (all 6 regions).

    iii. Report copyediting, layout, publishing, translation: It‟s a herculean task to ensure a proper page layout for over 400 pages, consistent color-coding, and the accuracy

    of figures after copyediting. The WDR overview and full report were translated

    into 11 foreign languages (Arabic, Bahasa Indonesian, Chinese, French, German,

    Japanese, Russian, Spanish, Portuguese, and Vietnamese). The team spent a lot

    of resources (financial and time) to improve the quality of translation through

    review and rewriting.

    4. Surprises [describe any outcomes of the research, beneficial or otherwise, that were unexpected at the outset. Further details should be included in the full report.]

    i. An overwhelming number of requests from client countries to do a country- or area-specific report following the WDR principles: We received man specific

    requests from the Ministry of Finance, Ministry of Planning, or Ministry of

    Regional Development to assist them to produce a report specific to their

    countries. We‘d tried to accommodate as many request as we could but given that

    the WDR team has disbanded and dispersed after the Report‘s completion, we

    ended up having to turn down many requests.

    ii. A strong interest from developed countries in this Report: Developing countries are expectedly keen on the debates -- examined in the Report --- on urbanization,

    territorial development and international integration. However, developed

    economies e.g., the European Commission, New Zealand, USA, Korea, etc. the

    Baltics were very interested in the findings and messages of the WDR as well as

    in engaging in the discussions.

  • 11

    iii. Overall a good reception of the Report despite its ―unconventional‖ messages: The Report has opened many conversations. Whilst many have praised the

    Report, there were also those who said they were not ready to agree with the

    messages. Nevertheless, many amongst these skeptics also confessed that the

    Report has made them think differently and view the issues from a new

    perspective. Critics and skeptics all expressed appreciation for the clean

    structure, clever ways of conveying complex issues in a comprehensible manner,

    rich and rigorous analyses, and comprehensive literature review.

    5. Full Completion Report

    Background and motivation

    Places do well when they promote transformations along the dimensions of economic

    geography: higher densities, as seen in the growth of cities; shorter distances, as workers

    and businesses migrate closer to density; and fewer divisions, as nations thin their

    economic borders and enter world markets to take advantage of scale and specialization.

    The changes along these three dimensions—density, distance, and division—are visible

    in the parts of the developing world that are now prospering. World Development Report

    2009 concludes that these transformations are essential, and should be encouraged.

    This conclusion is not without controversy. Slum-dwellers now number a billion, but the

    rush to cities continues. Globalization has benefited many, but not the billion people

    living in remote areas of developing nations. And even as others grow wealthier and live

    ever longer lives, poverty and high mortality persists among the world‘s ―bottom billion‖

    living trapped without access to global markets. Concern for these intersecting groups

    often comes with the prescription that growth must be made spatially balanced.

    This report has a different message: economic growth will be unbalanced. To try to

    spread out economic activity is to discourage it. But development can still be inclusive,

    in that even people who start their lives far from economic opportunity can benefit from

    the growing concentrations of wealth. For rapid and shared growth, governments must

    promote economic integration.

    Economic integration should be the pivotal concept in the policy debates on urbanization,

    territorial development, and regional integration. Instead, all three overemphasize place-

    based interventions. Reshaping Economic Geography reframes these debates to include

    all the instruments of integration—institutions, infrastructure, and interventions. By

    using a calibrated blend of these measures, today‘s developers can reshape their

    economic geography. If they do this well, they will experience unbalanced growth, and

    inclusive development.

  • 12

    Original objectives of the research, along with any changes and their justification; note their consistency with Bank, DECRG and KCP


    There was no change in the original objective of the research. The objectives were to

    help Bank staff, development partners and client governments better understand the

    importance of place for prosperity. These objectives were achieved through the

    publication and dissemination of the World Development Report 2009 (WDR2009)

    Reshaping Economic Geography.

    As the annual flagship publication of the World Bank, consistently the most widely read

    and purchased document produced by the World Bank, the WDR 2009 hopes to

    contribute to a better understanding of economic geography in development, and to

    influence the developing world and development community to pursue sustainable and

    inclusive development. This WDR will place special emphasis on Sub-Saharan Africa

    due to the geographic pattern of development in the continent. In particular, the WDR

    will assess the potential for increasing economic growth, by recognizing the spatial

    constraints and dimensions, in sub-Saharan African stagnating countries.

    The WDR, by its nature, discusses issues which are relevant to all regions in which the

    World Bank operates. This report did not prescribe specific policy blueprints, but

    highlighted lessons and experiences for over a century of development experiences

    through large samples of countries over time, specific country case studies, and many

    examples of public interventions which are appropriate for addressing concerns under

    diverse conditions, and suggested principles for policy making.

    Assessment of the extent to which the objectives have been met, with

    explanations of any shortfall.

    The objectives have been fully met. The World Development Report has been written and

    published, and well-received. The report has raised awareness amongst policymakers

    and development practitioners about the importance of place for prosperity. The report

    enhances one‟s understanding of the interactions of government policies, economic

    geography, growth and poverty. Specifically, the report highlighted dimensions and

    significance of spatial factors that shape economic development; and recommended

    public actions to facilitate spatial transformations necessary to promote growth and

    inclusive development, as well as to address social and environmental challenges arising

    during these transformations.

    Country participation and ownership were pursued early on through a series of open

    consultations with stakeholders at various levels. In particular, complementary funding

    were also sought to allow consultations in each of the six major regions.

    Broad Analytical Approach and Specific Methods

  • 13

    We began with a review of existing knowledge and literature, including consultations

    with experts in academia, government and the civil society. The broad analytical

    approach used was multi-variate statistical analyses of household data and firm data from

    the following surveys commonly fielded in developing countries: household income and

    expenditure surveys; demographic and health surveys; multiple indicator cluster surveys;

    and labor force surveys for household information; and enterprise and employers surveys

    for industry information. Censuses data were also used. This approach was

    complemented with (i) a review of the literature, (ii) qualitative information from focus-

    group discussions and semi-structured interviews, and (iii) case studies.

    The earlier background preparation stage included the following outputs:

    (i) background literature reviews;

    (ii) compilation of a database of country-specific demographic, human development,

    socioeconomic indicators, by spatial cuts;

    (iii) statistical tabulations and econometric analyses; and

    (iv) preparation of background studies for a number of sections in the final report

    At the stage of refinement of the analyses, we had carried out quantitaive analyses (e.g.,

    cross-country regressions, and micro-econometrics or spatial econometrics within-

    country) and also qualitative analyses (e.g., country case studies and regional work).

    Furthermore, there was a lot of research and documentation of historical analyses from

    OECD countries' experiences.

    The outputs during the refinement stage included:

    (a) country case studies and regional work throughout all world regions, i.e., East Asia,

    Africa, South Asia, Middle East, Eastern Europe and Central Asia;

    (b) collaboration with and capacity building of local institutes and researchers;

    (c) historical analyses of the US, EU, and Japan experiences, and a compilation and

    assessment of territorial development policies for a sample of countries; and

    (d) preparation of a global database on measures related to density, distance, and


    Results: What have we learnt so far?

    The report analyzes the early experience of developed countries and draws practical

    implications for urbanization policies in today‟s developing countries. For the poorest

    countries in Africa and Asia that are landlocked or otherwise isolated from world

    markets, the Report discusses promising approaches to regional integration that combine

    institutional cooperation, shared infrastructure, and special incentives. In growing

    middle-income economies, general prosperity can camouflage areas of persistent poverty.

    For such countries, the Report outlines strategies to foster domestic integration and help

    the poor in the least fortunate places.

  • 14

    As the world‟s economy grows, people and production are concentrating, pulled as if by

    gravity to prosperous places—growing cities, leading areas, and connected countries. As

    it did decades ago in today‟s high-income countries, the drive to density in low- and

    middle income countries can increase the sense of deprivation as the economic distance

    between prosperous areas and those left behind widens. And although rapid advances in

    transport and communication increasingly bind together geographically distant

    communities around the world and open new opportunities for exchange, political

    divisions that obstruct the flow of people, capital, and goods remain. Part one of this

    Report defines the spatial dimensions—density, distance, and division—and describes

    their evolution with economic development. Chapters 1, 2, and 3 show how the economic

    geography at the local, national, and international scales is changing, and how the scope

    and pace of these changes compare with transformations in the economic geography of

    North America, Europe, and Japan when they were at similar stages of development. This

    broad sweep of stylized facts informs the analysis in part two and the policy discussions

    in part three of the Report

    Among the most striking features of economic growth is its unevenness across space.

    Spatial concentration of economic activity is both a condition for and an outcome of

    development. But the large geographic disparities in living standards that come with

    economic growth and globalization may also threaten their sustainability. Many

    governments in developing countries have instituted policies to facilitate the spatial

    transformation necessary for development, and to mitigate the resulting geographic

    differentials in social welfare. The WDR 2009 addresses what the governments and

    international community can do to mitigate adverse spatial consequences of current

    development policies and promote more balanced and sustainable outcomes.

    The innovative value is to use the spatial lens to look at economic development. The

    WDR examines three spatial dimensions: (i) density, (ii) distance, and (iii) division to

    inform policy debates on changing geographic pattern of economic activities and the

    consequential spatial disparity of outcomes. Growing spatial disparities generally reflect

    efforts of firms and consumers to exploit economies of scale, due to growing urban and

    concentration of economic activities and international trade. Spatial differentials can

    dampen economic growth, and often pose concerns for governments. The WDR 2009

    analyzes these phenomena to inform policy debates on rural-urban shifts and the size and

    structure of cities; lagging and leading regions, and the role of regional policy; and

    domestic and international boundaries, and the importance of trade barriers.

    Policy decisions that affect economic geography, i.e. those that impinge or affect the

    location decisions of firms and workers should not be made independent of market

    forces. Likewise, governments do not want the market to work independent of their

    actions. Policies should harness market forces for the progressive objectives of

    efficiency and growth on the one hand and equity on the other. How can this be done?

    Market forces of agglomeration, migration, and specialization bring about a more efficient spatial structure of production where economic activity conglomerates in

    few parts of a country. A progressively more uneven landscape of economic

  • 15

    activity is a natural part of the development process. To try to spread out

    economic production too much, too far, or too soon is to discourage economic

    growth and development.

    By harnessing the productivity and benefits from economic concentration, governments can institute policies to ensure spatial equity in living standards.

    Universal provision of basic amenities and social services; robust, versatile, and

    responsive land and labor market regulations are the institutional bedrock of

    policies that can lead to a more even landscape of social welfare. Such

    institutions that help to unify large nations allow even those who start their lives

    far away from economic opportunities to benefit from the rising concentration of

    economic activity in relatively few places.

    Dissemination details (including future plans)

    The findings of the World Development Report have been widely disseminated. Since the

    Report‟s launch in November 2008, it has been presented in many countries (see Section

    1 on achievements) and also internally on several occasions in the Bank. The team also

    gets regular invitations to speak in guest lectures, academic seminars, policymaker fora,

    and practitioners conferences.

    To contribute to the dissemination efforts, the book has been translated into 10 languages

    (Arabic, Bahasa Indonesia, Chinese, French, German, Japanese, Russian, Spanish,

    Vietnamese, Hindi), and the complete WDR webpage is also available in Arabic, French

    and Spanish. Also, a set of 15 policy briefs has been developed as well to provide easier

    access to the report‟s main messages. These policy briefs have been translated to 6


    Impact—within and outside the Bank

    The most important policy issues at the local, national and international level are,

    respectively, how to manage urbanization; how to manage disparities of resources and

    living standards between poor and prosperous regions within a country; and how to make

    a better economic union that benefit all countries in a sub-region (of the world). The

    Report has contributed to and reframed the debates of urbanization, territorial

    development, and international integration, inside and outside of the Bank.

    The World Development Report argues that advanced economies have done well and

    some of the prospering emerging economies are doing well because they have promoted

    the spatial or geographic transformations necessary for progress. Some countries like the

    US, France, and Japan reshaped their economic geography along these lines in the past,

    and some like China are reshaping it now. These will be the changes that will help

    developers in other parts of the world, including those in South Asia.

    These changes can be measured along three dimensions of economic geography:

    Higher densities, as seen in the growth of cities.

    Shorter distances, as workers and businesses migrate closer to density.

  • 16

    Fewer divisions, as countries thin their economic borders, and access world markets to take advantage of scale and specialization

    These dimensions and terms have now become a part of any discussions related to spatial

    transformations inside and outside of the Bank. Using the concepts (e.g., the 3Ds) of the

    Report at ease in conversations among staff about the debates, and also amongst seminar

    participants during discussions on development and geography is an indicator of the

    impacts and influence of this Report

    Implications for future research

    There are several analytical areas that would benefit from further research:

    i. Drivers of spatial transformation are under-studied esp. in developing countries: In the past generation, there has been a slow revolution in economic thought,

    brought about by the recognition of imperfectly competitive markets, due mainly

    to increasing returns to scale, spillovers, and circular causation. A new way of

    thinking has transformed the classical analysis of industrial organization,

    economic growth, and international trade, and has delivered what were at first

    controversial, but now widely accepted, implications for the progress of

    developing countries. The interplay among scale economies, factor mobility, and

    transport costs is under-studied, and more research should be done especially in

    developing countries to explain how these formidable forces have been shaping

    the spatial transformations.

    ii. The challenges of urbanization are under-researched: Urbanization has been a defining feature of twentieth century development in rich countries. In this

    century, it will be equally important for developing countries. But in the absence

    of solid evidence on many of the aspects of urbanization, debates are often

    dominated by skeptical views. Concern revolves around three questions: Will

    urbanization be beneficial? For all? What are the trade-offs?

    Is urbanization delivering growth?

    Urbanization is necessary for development. But is it also sufficient? Africa is said to

    experience „urbanization without growth‟ and highly urbanized countries in the ECA

    region have seen sluggish growth in non-resource sectors. Our tools and data to measure

    urbanization benefits are incomplete. Improvements will help inform urbanization


    - How do agglomeration processes in currently developing countries differ from those experienced in industrialized countries?

    - How can we better measure agglomeration effects in developing countries?

    - Is urbanization in Africa really different and are cities in highly urbanized CIS countries delivering growth?

  • 17

    Is urbanization equitable?

    The economics of agglomeration is characterized by increasing returns and cumulative

    causation. Does that mean that winners take all? How urban growth is distributed across

    cities, how it benefits people in cities (of different sizes and in different areas), and how

    growth is shared with rural areas determines whether urbanization-driven growth is


    - What are the mechanisms that determine growth and poverty outcomes across the settlement hierarchy?

    - How can new spatially detailed datasets help us understand distributional issues across cities, within cities, and between cities and rural areas?

    - What is the evidence on growth and poverty across and within cities, and how do urbanization processes affect urban-rural linkages?

    Is urbanization sustainable?

    Local environmental quality first deteriorates, then improves with economic growth. But

    both carbon emissions and urbanization tend to increase with rising incomes. Countries

    where city sizes may double over the next few decades must find ways to limit the carbon

    intensity of their urban areas.

    - If dense cities are more carbon efficient, what are the impacts of policies that promote density?

    - How can we better measure or estimate city carbon emissions, their causes and their consequences?

    - Does density help or hurt poor people‟s access to housing, and what is the role of transport to overcome sustainability-equity trade-offs?

    iii. Policy experiences of territorial development and their impacts in advanced countries are seldom evaluated nor documented: A major factor determining the

    speed and smoothness of the transition from middle to high income status of a

    country is the geographic organization of economic activity. This is because

    successful development requires not only an economy's structural transformation,

    but also its spatial transformation. The key question, therefore, is how public

    policy can facilitate market-driven adjustment processes in the geographic

    distribution of economic activity, while ensuring access to basic amenities and

    social services throughout its enormous territory. That is to say, how can the

    enhancement of spatial efficiency, which tends to be associated with

    agglomeration, migration, and specialization be achieved without unduly

    compromising spatial equity? Many developing and developed countries have

    pursue place-based policies to address the problems of lagging regions. However,

    their effectiveness is seldom studied rigorously.

  • 18

    Annex 1: Background papers for the World Development Report 2009

    Behar, Alberto. 2008. “Neighborhood

    Growth Effects: An Annual Panel Data


    Brulhart, Marius. 2008. “An Account of

    Global Intra-Industry Trade, 1962-2006.”

    Cali, Massimiliano. 2007. “Urbanisation,

    Inequality and Economic Growth:

    Evidence from Indian States.”

    Clemens, Michael A., Claudio E.

    Montenegro, and Lant Pritchett.

    2008. “The Great Discrimination: Borders

    as a Labor Market Barrier.”

    Coulibaly, Souleymane. 2008. “On the

    Complementarity of Regional and Global


    Hewings, Geoffrey, E. Feser, and K. Poole.

    2007. “Spatial/Territorial Development

    Policies in the United States.”

    Kilroy, Austin. 2007. “Intra-Urban Spatial

    Inequalities: Cities as „Urban Regions‟.”

    Kroehnert, Steffen, and Sebastian Vollmer.

    2008. “Where Have All Young Women


    Mayer, Thierry. 2008. “Market Potential

    and Development.”

    Montenegro, Claudio E., and Maximilian

    L. Hirn. 2008. “A New Disaggregated Set

    of Labor Market Indicators using

    Standardized Household Surveys from

    Around the World.”

    Nelson, Andrew. 2007. “Accessibility

    Background notes for the World Development Report 2009

    Abreu, Maria. 2008. “Effectively Dealing

    with Slums.”

    Alva, M., and A. Behar. 2008. “Factors

    That Contribute to (or Detract from)

    Successful Outcomes in African Regional


    Andersson, Martin. 2007. “Spatial

    Disparities in Taiwan.”

    Cali, Massimiliano. 2008. “Urban

    Agglomeration Policy in China.”

    Chen, Yang. 2008. “China: A Case Study

    of 1D-2D-3D areas.”

    Cornelson, Kirsten. 2008. “Egypt and

    South Africa: A Case Study of 1D-2D-3D


    Crafts, Nicholas. 2007. “European Growth

    in the Age of Regional Economic

    Integration: Convergence Big Time?”

    Crafts, Nicholas. 2007. “Spatial Disparities

    in 19th Century British Industrialization.”

    Hay, Simon I., Dave L. Smith, and Robert

    W. Snow. 2008. “Is a Future for Human

    Malaria Inevitable?”

    Kilroy, Austin. 2008. “The Role of Cities

    in Postwar Economic Recovery.”

    Klink, Melissa. 2008. “Nigeria and South

    Africa: A Case Study of 1D-2D-3D areas.”

    Layke, Christian, and Stephen Adam. 2008.

    “Spatial Allocation of Public Expenditures

    in Nigeria.”,,contentMDK:23079928~pagePK:478093~piPK:477627~theSitePK:477624,00.html

  • 19

    Model and Population Estimates.”

    Nelson, B., and A. Behar. 2008. “Natural

    Resources, Growth and Spatially-Based

    Development: A View of the Literature.”

    Roberts, Mark. 2008. “Congestion and

    spatially connective infrastructure:

    the case of London in the 19th and early

    20th century.”

    Roberts, Mark, and Uwe Deichmann. 2008.

    “Regional Spillover Estimation.”

    Uchida, Hirotsugu, and Andrew Nelson.

    2008. “Agglomeration Index: Towards a

    New Measure of Urban Concentration.”

    Manners, P., and A. Behar. 2007. “Trade in

    Sub-Saharan Africa and Opportunities for

    Low Income Countries.”

    Markussen, Thomas. 2008. “Policies for

    improved land use in developing


    Naudé, Wim. 2007. “Density, Distance and

    Division Spotlight on Sub-Saharan Africa.”

    Oh, Jinhwan. 2008. “Korea: A Case Study

    of 1D-2D-3D areas.”

    Roberts, Mark. 2008. “Social and Spatial


    Satterthwaite, David. 2007. “Expanding the

    Supply and Reducing the Cost of Land for

    Housing in Urban Areas in Low- and

    Middle-Income Nations.”

    Te Velde, Dirk Willem. 2007. “Regional

    Integration, Growth and Concentration.”

    Treyvish, Andrey. 2008. “The Downfall of

    the Soviet Union: A Spatial Explanation.”

    Vidler, Cam, 2008. “Turkey and Russia: A

    Case Study of 1D-2D-3D areas.”