1. Reshaping Economic Geography Policy Messages for Domestic Integration

2. WDR Conference in Central Asia, February 26-27 2009 2 Concentration, a fact of life, Half of the worlds production…..

3. WDR Conference in Central Asia, February 26-27 2009 3 …at the global spatial scale… ….can fit onto 1.5% of its land, less than the size of Algeria

4. WDR Conference in Central Asia, February 26-27 2009 4 …at the national spatial scale Even in a small country like Belgium, production is concentrated in small areas

5. WDR Conference in Central Asia, February 26-27 2009 5 … at the local spatial scale Cairo produces over half of Egypts GDP with 0.5% of its land Bangkok generates close to half of Thailands GDP with < 0.1% of its land

6. WDR Conference in Central Asia, February 26-27 2009 6 … similarly in Central Asia … economic landscapes are bumpy Kazakhstan Uzbekistan Kyrgyz Republic

7. WDR Conference in Central Asia, February 26-27 2009 7 A Bumpy Economic Landscape ….. different parts of a country urbanize at different pace …. and these areas present different policy challenges Incipient stage urbanization Popayan, Colombia Intermediate stage urbanization Bucaramanga, Colombia Advanced stage urbanization Bogota, Colombia Orange areas denote urban settlementsPopayan, Bucaramanga, and Bogota

8. WDR Conference in Central Asia, February 26-27 2009 8 As urbanization advances, the functions of cities change … and they deliver different types of scale economies Popayan, Colombia Bucaramanga, Colombia Bogota, Colombia

9. WDR Conference in Central Asia, February 26-27 2009 9 Some are at the incipient stage of urbanization Per capita GDPUrban share KazakhstanUS$ 5,06057% TurkmenistanUS$ 3,00043% UzbekistanUS$ 73037% Kyrgyz RepUS$ 59034% TajikistanUS$ 46025%

10. WDR Conference in Central Asia, February 26-27 2009 10 … and face the challenge …that rapid urbanization takes places when countries are at low-income levels

11. WDR Conference in Central Asia, February 26-27 2009 11 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….

12. WDR Conference in Central Asia, February 26-27 2009 12 Areas at incipient urbanization stage: Density

13. WDR Conference in Central Asia, February 26-27 2009 13 … about facilitating Density, building spatially blind Institutions

14. WDR Conference in Central Asia, February 26-27 2009 14 Land market institutions are critical --- to facilitate agglomerations --- to encourage mobility Spatially Blind Institutions

15. WDR Conference in Central Asia, February 26-27 2009 15 Historical and contemporaneous examples of land market institutions Land tenure security, private property rights: England 16 th century: enclosure movement in 1500; Enclosure Act 1604 Denmark 18 th century: Abolition of villenage: 1760 communal to private land holding USA 19 th century: 1862 Homestead Act – the foundation of strong property rights Cambodia 20 th century: land tenure security; land registry; land administration, conflict resolution; Ease of land use conversion; versatile zoning law: London: 18 th --19 th 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: 19 th - 20 th century: 1916 zoning resolution; 1938 City Planning Commission; 1961 zoning law. Hong Kong 20 th 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

16. WDR Conference in Central Asia, February 26-27 2009 16 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

17. WDR Conference in Central Asia, February 26-27 2009 17 Some places are at the intermediate stage of urbanization Per capita GDPUrban share KazakhstanUS$ 5,06057% TurkmenistanUS$ 3,00043% UzbekistanUS$ 73037% Kyrgyz RepUS$ 59034% TajikistanUS$ 46025%

18. WDR Conference in Central Asia, February 26-27 2009 18 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

19. WDR Conference in Central Asia, February 26-27 2009 19 …promote Density & reduce Distance strengthen Institutions & invest in Infrastructure

20. WDR Conference in Central Asia, February 26-27 2009 20 Spatially blind Institutions and Spatially connective Infrastructure London: 18 th --19 th century: Land valuation decrees; underground; The Housing of the Working Classes Act 1890 and Cheap Trains for London Workers Bill 1890 NYC: 19 th - 20 th 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

21. WDR Conference in Central Asia, February 26-27 2009 21 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

22. WDR Conference in Central Asia, February 26-27 2009 22 Policy Response: An I for a D

23. WDR Conference in Central Asia, February 26-27 2009 23 APPENDIX

24. WDR Conference in Central Asia, February 26-27 2009 24 Leading and lagging areas…