Transcript 19 th century

Reshaping
Economic
Geography
Policy Messages for Domestic Integration
Concentration, a fact of life,
Half of the world’s production…..
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…at the global spatial scale…
….can fit onto 1.5% of its land, less than the size of Algeria
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…at the national spatial scale
Even in a small country like Belgium, production is
concentrated in small areas
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… at the local spatial scale
Cairo produces over half of
Egypt’s GDP with 0.5% of its land
Bangkok generates close to half
of Thailand’s GDP with < 0.1% of
its land
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… similarly in Central Asia
… economic landscapes are bumpy
Kazakhstan
Kyrgyz Republic
Uzbekistan
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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
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Advanced
stage urbanization
Bogota, Colombia
Orange areas denote urban settlements—Popayan, Bucaramanga, and Bogota
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As urbanization advances,
the functions of cities change
… and they deliver different types of scale economies
Popayan, Colombia
Bucaramanga, Colombia
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Bogota, Colombia
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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%
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… and face the challenge
…that rapid urbanization takes places when countries are at low-income levels
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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
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Areas at incipient urbanization stage:
Density
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… about facilitating Density,
building spatially blind Institutions
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Spatially Blind Institutions
Land market institutions are critical
--- to facilitate agglomerations
--- to encourage mobility
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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
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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
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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%
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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
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…promote Density & reduce Distance
strengthen Institutions & invest in Infrastructure
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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
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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
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Policy Response: An “I” for a “D”
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APPENDIX
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Leading and lagging areas…
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