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.

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,

UN-Habitat.

"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

India

―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

Lanka)

―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

Kazakhstan)

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

languages:

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

(China)

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

objectives

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

divisions;

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

languages.

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

policies.

- 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

inclusive.

- 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

Approach.”

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

Trade.”

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

Gone?”

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

Agreements.”

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

areas.”

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.”

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

countries.”

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

Equity.”

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.”