Reshaping Economic Geography Policy Messages for Domestic Integration

WDR Conference in Central Asia, February Concentration, a fact of life, Half of the worlds production…..

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

WDR Conference in Central Asia, February … 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

WDR Conference in Central Asia, February … similarly in Central Asia … economic landscapes are bumpy Kazakhstan Uzbekistan Kyrgyz Republic

WDR Conference in Central Asia, February 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

WDR Conference in Central Asia, February 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 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%

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

WDR Conference in Central Asia, February 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 Areas at incipient urbanization stage: Density

WDR Conference in Central Asia, February … about facilitating Density, building spatially blind Institutions

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

WDR Conference in Central Asia, February 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

WDR Conference in Central Asia, February 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 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%

WDR Conference in Central Asia, February 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, February …promote Density & reduce Distance strengthen Institutions & invest in Infrastructure

WDR Conference in Central Asia, February 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

WDR Conference in Central Asia, February 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 Policy Response: An I for a D

WDR Conference in Central Asia, February APPENDIX

WDR Conference in Central Asia, February Leading and lagging areas…