Spatial The World Bank Introduction REGIONAL AND TERRITORIAL DEVELOPMENT: THE WORLD BANK’S EXPERIENCE Marisela Montoliu Head, Spatial and Local Development Team The World Bank European Commission’s “Open Days” Brussels, October 8, 2008

Spatial The World Bank Introduction Why the World Bank focus on regional development now? World Development Report 2009: Reshaping Economic Geography Purpose of this session – Introduction of cases and presenters

Spatial The World Bank Regional Development: Increasingly important for the Bank’s clients… Identified as client concern in virtually all Country Assistance Strategies (CASs) Significant component in client countries’ budgets

Spatial The World Bank Regional Development: …and the Bank has responded… A strategic “pillar” in about 75% of CASs Diverse policy instruments –Targeted interventions, including Significant participatory community development portfolio Lagging region development schemes –Connecting infrastructure –Broadbased policies

Spatial The World Bank Regional Development: …and the Bank has responded, but… A strategic “pillar” Diverse policy instruments –Targeted interventions, including Significant participatory community development portfolio Lagging region development schemes –Connecting infrastructure –Broadbased policies Poor sub-national data to assess results Room for better coordination Too much, Too soon? Uneven assessment of spatial impact Need for a better framework to address economic geography issues

Spatial The World Bank World Development Report 2009: Reshaping Economic Geography Building geographic data platform for benchmarking New paradigm on spatial dynamics of growth and development A policy framework for policy prioritization and sequencing WDR 2009 to be launched on November 12, Messages presented at this session are preliminary. Final version is embargoed till November 12, and it is not for newswire transmission, web postings, or any other media use.

Spatial The World Bank World Development Report 2009: New paradigm Local: Concentration of people in cities will outstrip concentration of economic mass –A billion people in the world’s slums National: Spatial disparities in living standards will widen as economic mass concentrates in leading provinces –A billion people in remote and lagging areas International: Poor people will be trapped in isolated countries that are not developing –The new ‘Third World’: Collier’s “Bottom Billion” Usual policy concerns at different scales:

Spatial The World Bank Drivers of geographic transformations Efficiency, diversification Agglomeration economies Enterprises and workers move in Concentration World Development Report 2009: New paradigm Agglomeration economies Factor and product movements

Spatial The World Bank World Development Report 2009: New paradigm Growth will be unbalanced –Trying to spread out economic production amounts to fighting the forces of economic growth Development can still be inclusive –Persistent spatial disparities in living standards are neither desirable nor inevitable Integration is the way to get both unbalanced growth and inclusive development –Changing debates on urbanization, regional development, and global integration from spatial targeting to spatial integration WDR 2009 Messages:

Spatial The World Bank World Development Report 2009: Policy framework for spatial integration Broad-based Policies (“Institutions”)  –Level the playing field, break down barriers, and develop portable assets  facilitate factor and product mobility Infrastructure to connect leading and lagging  –Improves access to markets  promotes inter regional trade Targeted Incentives for lagging areas  –Reduce business startup and operating costs  encourages production and private investment

Spatial The World Bank World Development Report 2009: Policy framework for spatial integration Sparsely populated lagging areas (China, Russia). Densely populated lagging areas in countries without major divisions (Brazil, Mexico). Densely populated lagging areas in areas with significant divisions (India, Nigeria). A typology of countries:

Spatial The World Bank World Development Report 2009: Policy framework for spatial integration Sparsely populated lagging areas (China)

Spatial The World Bank World Development Report 2009: Policy framework for spatial integration Sparsely populated lagging areas (Russia)

Spatial The World Bank World Development Report 2009: Policy framework for spatial integration Densely populated lagging areas in countries without major divisions (Brazil)

Spatial The World Bank World Development Report 2009: Policy framework for spatial integration Densely populated lagging areas in areas with significant divisions: India

Spatial The World Bank World Development Report 2009: Policy framework for spatial integration Applying policy framework to typology: Dimensions and policy options 1D (Distance)2D (Distance + Density) 3D (Distance + Density + Division) “Institutions”  Infrastructure  Incentives 

Spatial The World Bank What would we like to achieve in this session? Illustrate and probe the framework through ongoing Bank regional experiences –Greater Mekong Subregion – Mathew Verghis –Russia – Zeljko Bogetic –India – Ahmad Ahsan –Middle East and North Africa – Alex Kremer –Sum-up and implications for action (with references to Latin America and Africa) – Somik Lall Hear your views; learn from you

Spatial The World Bank Hear your views, learn from you… A view of the world from the perspective of economic mass… and Europe at the heart

Spatial The World Bank Hear your views, learn from you… …and also a continent that is diversifying…

Spatial The World Bank Hear your views, learn from you… …and also a continent that is diversifying…

Spatial The World Bank THANK YOU