Urbanization and the Geography of Development
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World Bank, Washington, DC
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This paper focuses on several
interrelated key questions on the geography of development.
Although we herald cities with their industrial bases as
'engines of growth,' does industrialization in
fact drive urbanization?1 What economic activities do cities
of different sizes undertake? Does this change as countries
develop? If so, what are the policy implications? Do
development policies have a big-city bias? If so, what does
this imply for growth and inequality, and what are
appropriate place-based policies? Should countries have
policies concerning optimal city sizes or city-size
distributions? Urbanization is central to the development
process. Employment shifts out of agriculture into industry,
and industrial production proceeds most effectively in
cities, with their agglomeration economies. Cities are thus
viewed as engines of growth. While such relationships appear
in the data, the process is not straightforward. Among
developing countries, changes in income or industrialization
correlate only weakly with changes in urbanization. This
suggests that policy and institutional factors may also
influence the urbanization process, weakening the link
between industrialization and urbanization. The relationship
between industrialization and urbanization is absent in
Sub-Saharan Africa. Finally, the author will look at city
sizes and city-size distributions. Factors determining both
aspects are complex and poorly understood. It is hard to be
proscriptive about either individual city sizes or overall
city-size distributions. The best policies strengthen
institutions in the relevant markets so that market forces
can move the economy toward better outcomes. That said, the
role of public-private interaction and the details of what
institutional reforms different situations require are controversial.
Palabras clave
ACCESS TO CAPITAL, ACCOUNTING, AGGLOMERATION BENEFITS, AGGLOMERATION ECONOMIES, AIRCRAFT, AUTOMOBILE, AUTOMOBILE PRODUCTION, AUTOMOBILES, BANK PRIVATIZATION, BARRIOS, BIG CITIES, BUSINESS SERVICES, CAPITAL CITIES, CAPITAL MARKETS, CAPITALS, CARS, CENTRAL BUSINESS DISTRICT, CITIES, CITY DEVELOPMENT, CITY DISTRICTS, CITY INDUSTRIES, CITY LEADERS, CITY PLANNING, CITY PRODUCTIVITY, CITY SIZE, COMMERCIAL BANKS, COMPANY TOWNS, COST OF TRANSPORT, DECENTRALIZATION, DIESEL, DIESEL FUEL, ELASTICITY, ELASTICITY OF VEHICLE TRAVEL, EXTERNALITIES, FACTORING, FINANCIAL SERVICES, FISCAL AUTONOMY, FUEL, FUEL PRICES, HIGH TRANSPORT, HIGHWAY, HIGHWAYS, HOUSING, IMPACT OF TRANSPORT, INDUSTRIAL ENTERPRISES, INDUSTRIAL OUTPUT, INDUSTRIAL STRUCTURE, INDUSTRIALIZATION, INDUSTRIALIZATION PROCESS, INFRASTRUCTURE INVESTMENT, INSPECTION, INSURANCE, INTERGOVERNMENTAL TRANSFERS, LABOR COSTS, LABOR MARKETS, LAND DEVELOPMENT, LAND MARKETS, LAND TITLING, LARGE CITIES, LAWS, LEVEL PLAYING FIELD, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LOCAL PUBLIC SECTOR, MARKET DISCIPLINE, MEGACITIES, METROPOLITAN AREAS, MOBILITY, MONIES, NATIONAL HIGHWAY SYSTEM, NATURAL RESOURCES, NEIGHBORHOODS, NET LOSSES, POPULATION GROWTH, PRICE CHANGE, PRIVATE BANKS, PRIVATE VENDORS, PROPERTY RIGHTS, PUBLIC DEBT, PUBLIC INVESTMENT, PUBLIC SERVICE PROVISION, PUBLIC SERVICES, PUBLIC UTILITIES, QUALITY OF LIFE, RAIL, RAIL NODES, RAIL TRANSPORT, RAILWAY, RAILWAYS, REAL ESTATE MARKETS, REGIONAL BANKS, REGULATORY SYSTEMS, REORGANIZATION, RING ROADS, ROAD, ROAD NETWORK, SERVICE CENTERS, SERVICE PROVISION, SOCIAL TENSION, SPRAWL, SUBURBAN AREAS, SUBURBAN RAIL, SUBURBS, TAX, TENURE SECURITY, TOWN GOVERNMENTS, TOWNS, TRADE FLOWS, TRANSPARENCY, TRANSPORT, TRANSPORT ACCESS, TRANSPORT COSTS, TRANSPORT INFRASTRUCTURE, TRANSPORT INVESTMENT, TRANSPORT INVESTMENTS, TRANSPORT SERVICES, TRANSPORTATION, TRANSPORTATION INFRASTRUCTURE, TRAVEL COSTS, UNEMPLOYMENT, URBAN, URBAN AREAS, URBAN BIAS, URBAN CENTERS, URBAN CONCENTRATION, URBAN CONGESTION, URBAN DEVELOPMENT, URBAN ECONOMICS, URBAN ENVIRONMENTS, URBAN FRINGE, URBAN GROWTH, URBAN INFRASTRUCTURE, URBAN LAND, URBAN MIGRATION, URBAN POPULATION, URBAN POPULATION GROWTH, URBAN RESEARCH, URBAN SECTOR, URBAN SPRAWL, URBAN STRUCTURE, URBAN TRANSFORMATION, URBANIZATION, URBANIZATION PROCESS, VEHICLE, VEHICLE TRAVEL COSTS