Abstract

This paper provides an overview of the major current debates on infrastructure policy. It reviews the evidence on the macroeconomic significance of the sector in terms of growth and poverty alleviation. It also discusses the major institutional debates, including the relative comparative advantage of the public and the private sector in the various stages of infrastructure service delivery as well as the main options for changes in the role of government (i.e. regulation and decentralization). Document type: Book

Abstract

Agglomeration economies are among the most important factors to increase firm productivity. However, there is little evidence supportive of this in Africa. By applying the conditional and nested logit models, this paper examines the relationship between firm locations and infrastructure accessibility in Rwanda. It is found that agglomeration economies matter to even one of the smallest countries in Africa. It is also found that infrastructure availability has an important role in affecting the firm location decision. Electricity access and transport connectivity to the domestic and international markets are found to be important to attract new investment. In addition, the quality of local labor supplied, measured by educational attainment, is found as an important determinant of firm location, while the effect of labor costs remains inconclusive. Document type: Book

Abstract

Developed at the request of the Mexican G20 Presidency for consideration by the Finance Ministers and Central Bank Governors at the G20 Leaders' Summit in Mexico, and jointly prepared with the Asian Development Bank, this policy paper positioned green transport in the context of cities development. Urban transport determines the shape of a city and its ecological footprint. Many cities in low and middle income countries are at a crossroads. Policy decisions taken now, while car use is still relatively low and cities retain a relatively transit friendly, compact urban form, will affect how people will live in their cities for many decades into the future. A new paradigm of urban transport can be part of the solution to reversing the deteriorating situation in some cities of developing countries, and supporting others to embark on a sustainable, low carbon, green growth path: developing a city for people rather than cars, and including public and mass transport as a major component of the modal structure. Implementing such a new paradigm can be truly transformational. This joint World Bank and Asian Development Bank paper lays out six aspects, which are most difficult to align, yet, are critical to ensure the sustainability of urban transport systems, visionary leadership, integrated strategy for land use and urban transport, coordination among agencies, domestic capacity, adequate cost recovery, and private participation in the operation and construction of urban transport systems. The paper proposes a set of new initiatives for G20 leaders' consideration, including the development of an umbrella toolkit to guide policy makers in charge of urban planning to make transport decisions best suited to their local contexts.

Abstract

Over the last century, the urban spatial structure of cities has transformed dramatically from the traditional monocentric configuration to varying forms of decentralized organization. This paper reviews the theory and empirical evidence to understand the urban morphology of jobs and land use within a city. This survey highlights four broad insights: (i) The evolution of monocentric to polycentric centers has been accompanied by structural changes in the city. (ii) The internal geography of a city is an outcome of the trade-off between the pull from agglomeration economies and the push from congestion. (iii) The presence of externalities implies that the equilibrium spatial organization achieved by profit-maximizing firms may not necessarily be optimal. This justifies the role of public policy in addressing the associated market failures. (iv) The productive edge and competitiveness of a city can be enhanced by introducing policies that increase the overall connectivity to take advantage of economic opportunities across the metropolitan area. The survey also puts together a wide range of policy instruments that are useful in closing the gap between equilibrium urban spatial structure and the optimal outcome. Document type: Article