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Reshaping Reshaping
EconomicEconomic
GeographGeographyy
Policy Messages for Domestic Integration
WDR Conference in Central Asia, February 26-27 2009
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Concentration, a fact of life,Half of the world’s production…..
WDR Conference in Central Asia, February 26-27 2009
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…at the global spatial scale…
….can fit onto 1.5% of its land, less than the size of Algeria
WDR Conference in Central Asia, February 26-27 2009
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…at the national spatial scale
Even in a small country like Belgium, production is concentrated in small areas
WDR Conference in Central Asia, February 26-27 2009
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… at the local spatial scale
Cairo produces over half of Egypt’s GDP with 0.5% of its land
Bangkok generates close to half of Thailand’s GDP with < 0.1%
of its land
WDR Conference in Central Asia, February 26-27 2009
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… similarly in Central Asia… economic landscapes are bumpy
Kazakhstan
UzbekistanKyrgyz Republic
WDR Conference in Central Asia, February 26-27 2009
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A Bumpy Economic Landscape
….. different parts of a country urbanize at different pace
…. and these areas present different policy challenges
Incipient stage urbanizationPopayan, Colombia
Intermediate stage urbanization Bucaramanga, Colombia
Advanced stage urbanization Bogota, Colombia
Orange areas denote urban settlements—Popayan, Bucaramanga, and Bogota
WDR Conference in Central Asia, February 26-27 2009
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As urbanization advances, the functions of cities change
… and they deliver different types of scale economies
Popayan, Colombia Bucaramanga, Colombia Bogota, Colombia
WDR Conference in Central Asia, February 26-27 2009
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Some are at the incipientstage of urbanization
Per capita GDP Urban share
Kazakhstan US$ 5,060 57%
Turkmenistan US$ 3,000 43%
Uzbekistan US$ 730 37%
Kyrgyz Rep US$ 590 34%
Tajikistan US$ 460 25%
WDR Conference in Central Asia, February 26-27 2009
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… and face the challenge
…that rapid urbanization takes places when countries are at low-income levels
WDR Conference in Central Asia, February 26-27 2009
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Incipient Urbanization Stages
• Priority Policy Instrument:
–Spatially blind institution
– universal provision of basic amenities and social services
– tax and transfer systems
– land market institutions
…in Tajikistan, Uzbekistan, & Kyrgyz Republic imply….
WDR Conference in Central Asia, February 26-27 2009
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Areas at incipient urbanization stage:
Density
WDR Conference in Central Asia, February 26-27 2009
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… about facilitating Density, building spatially blind Institutions
WDR Conference in Central Asia, February 26-27 2009
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Land market institutions are critical
--- to facilitate agglomerations--- to encourage mobility
Spatially Blind Institutions
WDR Conference in Central Asia, February 26-27 2009
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Historical and contemporaneous examples of land market institutions
Land tenure security, private property rights:• England 16th century: enclosure movement in 1500; Enclosure Act 1604• Denmark 18th century: Abolition of “villenage”: 1760 communal to private land
holding• USA 19th century: 1862 Homestead Act – the foundation of strong property rights• Cambodia 20th century: land tenure security; land registry; land administration,
conflict resolution;
Ease of land use conversion; versatile zoning law:• London: 18th --19th century: Land Enquiry Commission; 1832 Reform Acts; Land
valuation decrees; The Housing of the Working Classes Act 1890 and Cheap Trains for London Workers Bill 1890
• NYC: 19th - 20th century: 1916 zoning resolution; 1938 City Planning Commission; 1961 zoning law.
• Hong Kong 20th century: 1935 Housing Commission and Town Planning Ordinance (amended overtime); 1963 first land-use strategy “Zoning Plan;”
• USA, 1930s-40s: Wagner-Steagall Housing Act of 1937, good intra-urban public transport systems
• Sweden, 1960s-70s: Royal Housing Commission in 1945; Million Homes Programme • Korea, 1980s-90s: universal provision of basic amenities; property rights; and
subsidized credit for slum dwellers to become home owners
WDR Conference in Central Asia, February 26-27 2009
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Spatially Blind Institutions
Universal provision of basic amenities and social services:
--- to generate portable assets for the population so people can move to places with economic opportunity
--- to equip every place to be ready for urbanization (industrialization)
--- to ensure comparable levels of basic living standards across areas
WDR Conference in Central Asia, February 26-27 2009
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Some places are at the intermediate stage of urbanization
Per capita GDP Urban share
Kazakhstan US$ 5,060 57%
Turkmenistan US$ 3,000 43%
Uzbekistan US$ 730 37%
Kyrgyz Rep US$ 590 34%
Tajikistan US$ 460 25%
WDR Conference in Central Asia, February 26-27 2009
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Areas at intermediate urbanization stage:
Density + DistanceIn addition to providing institutions to continue building density,
infrastructure is necessary to reduce distance due to congestion
WDR Conference in Central Asia, February 26-27 2009
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…promote Density & reduce Distance strengthen Institutions & invest in Infrastructure
WDR Conference in Central Asia, February 26-27 2009
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Spatially blind Institutions and Spatially connective Infrastructure
• London: 18th --19th century: Land valuation decrees; underground; The Housing of the Working Classes Act 1890 and Cheap Trains for London Workers Bill 1890
• NYC: 19th - 20th century: 1916 zoning resolution; 1938 City Planning Commission; 1961 zoning law.
• Hong Kong 1930s-80s: 1935 Housing Commission and Town Planning Ordinance (amended overtime); 1963 first land-use strategy “Zoning Plan;”
• Bangkok 2000s: zoning and parking spaces; traffic demand controls
WDR Conference in Central Asia, February 26-27 2009
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Territorial Development Issue:
Poverty Rate
Poverty Mass
• Main Policy Instrument: Institutions e.g., universal provision of basic and social services
• Secondary Policy Instrument: Infrastructure that connects some places to leading areas
WDR Conference in Central Asia, February 26-27 2009
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Policy Response: An “I” for a “D”
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APPENDIX
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Leading and lagging areas…