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					Reshaping
Economic
Geography


Policy Messages for Domestic Integration
           Concentration, a fact of life,
Half of the world’s production…..




           WDR Conference in Central Asia,   2
               February 26-27 2009
                 …at the global spatial scale…
….can fit onto 1.5% of its land, less than the size of Algeria




                     WDR Conference in Central Asia,        3
                         February 26-27 2009
                …at the national spatial scale
Even in a small country like Belgium, production is
concentrated in small areas




                   WDR Conference in Central Asia,    4
                       February 26-27 2009
                        … at the local spatial scale

     Cairo produces over half of              Bangkok generates close to half
Egypt’s GDP with 0.5% of its land             of Thailand’s GDP with < 0.1% of
                                                                       its land




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                            February 26-27 2009
              … similarly in Central Asia
             … economic landscapes are bumpy
        Kazakhstan




                                                       Kyrgyz Republic
Uzbekistan




                     WDR Conference in Central Asia,                6
                         February 26-27 2009
                                  A Bumpy Economic Landscape
                    ….. different parts of a country urbanize at different pace
                    …. and these areas present different policy challenges




Incipient stage urbanization      Intermediate stage urbanization          Advanced      stage urbanization
Popayan, Colombia                 Bucaramanga, Colombia                    Bogota, Colombia




                                      WDR Conference in Central Asia,
         Orange areas denote urban settlements—Popayan, Bucaramanga, and Bogota
                                                                                                       7
                                          February 26-27 2009
                             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,                      8
                         February 26-27 2009
                     Some are at the incipient
                        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,                 9
                   February 26-27 2009
                         … and face the challenge
…that rapid urbanization takes places when countries are at low-income levels




                            WDR Conference in Central Asia,               10
                                February 26-27 2009
              Incipient Urbanization Stages
…in Tajikistan, Uzbekistan, & Kyrgyz Republic imply….

 • Priority Policy Instrument:
    –Spatially blind institution

    – universal provision of basic amenities
      and social services

    – tax and transfer systems

    – land market institutions
                  WDR Conference in Central Asia,   11
                      February 26-27 2009
    Areas at incipient urbanization stage:
                                  Density




WDR Conference in Central Asia,      12
    February 26-27 2009
             … about facilitating Density,
building spatially blind Institutions




WDR Conference in Central Asia,        13
    February 26-27 2009
               Spatially Blind Institutions
Land market institutions are critical

--- to facilitate agglomerations
--- to encourage mobility




                     WDR Conference in Central Asia,   14
                         February 26-27 2009
                           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,                          15
                                February 26-27 2009
             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,      16
                       February 26-27 2009
                   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,                 17
                   February 26-27 2009
                   Areas at intermediate urbanization stage:
                                                  Density + Distance
In addition to providing institutions to continue building density,
   infrastructure is necessary to reduce distance due to congestion




                       WDR Conference in Central Asia,                18
                           February 26-27 2009
    …promote Density & reduce Distance
strengthen Institutions & invest in Infrastructure




        WDR Conference in Central Asia,      19
            February 26-27 2009
              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,     20
                      February 26-27 2009
                   Territorial Development Issue:
                                                         Poverty Mass

Poverty Rate




    • 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,              21
                           February 26-27 2009
Policy Response: An “I” for a “D”




  WDR Conference in Central Asia,   22
      February 26-27 2009
  APPENDIX



WDR Conference in Central Asia,   23
    February 26-27 2009
           Leading and lagging areas…




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    February 26-27 2009

				
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