Directions in Development - Countries and Regions

Despite impressive economic growth and increasing prosperity, cities in Mexico do not seem to have fully captured the benefits of urban agglomeration, in part because of rapid and uncoordinated urban growth. Recent expansion of many Mexican cities has been distant, disconnected, and dispersed, driven mainly by large single-use housing developments on the outskirts of cities. The lack of a coordinated approach to urban development has hindered the ability of cities in Mexico to boost economic growth and foster inclusive development. It also has created a fissure between new housing developments and urban services, infrastructure, and access to employment. Mexico Urbanization Review: Managing Spatial Growth for Productive and Livable Cities in Mexico provides an analytical basis to understand how well-managed urban growth can help Mexican cities to capture the positive gains associated with urbanization. To this end, the authors analyze the development patterns of the 100 largest Mexican cities using a set of spatial indexes. They then examine how the recent urban growth has affected the economic performance and livability of Mexican cities and offer recommendations for adjusting urban policy frameworks and instruments in ways that support sustainable spatial development and make cities more productive and inclusive.

Central America is undergoing an important transition. Urban populations are increasing at accelerated speeds, bringing pressing challenges for development, as well as opportunities to boost sustained, inclusive and resilient growth. Today, 59 percent of the region's population lives in urban areas, but it is expected that 7 out of 10 people will live in cities within the next generation. At current rates of urbanization, Central America's urban population will double in size by 2050, welcoming over 25 million new urban dwellers calling for better infrastructure, higher coverage and quality of urban services and greater employment opportunities. With more people concentrated in urban areas, Central American governments at the national and local levels face both opportunities and challenges to ensure the prosperity of their country's present and future generations. The Central America Urbanization Review: Making Cities Work for Central America provides a better understanding of the trends and implications of urbanization in the six Central American countries -Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama- and the actions that central and local governments can take to reap the intended benefits of this transformation. The report makes recommendations on how urban policies can contribute to addressing the main development challenges the region currently faces such as lack of social inclusion, high vulnerability to natural disasters, and lack of economic opportunities and competitiveness. Specifically, the report focuses on four priority areas for Central American cities: institutions for city management, access to adequate and well-located housing, resilience to natural disasters, and competitiveness through local economic development. This book is written for national and local policymakers, private sector actors, civil society, researchers and development partners in Central America and all around the world interested in learning more about the opportunities that urbanization brings in the 21st century.

Within the past decade the Maldives moved from poverty to middle-income status, introduced democracy, and was hailed as a Millennium Development Goal Plus country. Women face little discrimination in basic aspects of life such as primary education, health and survival – unlike in much of South Asia. This economic and social progress has yet to be fully inclusive, however, and gender inequality endures, despite constitutional guarantees to the contrary. This is at least partly due to a shift in the nature of Islamic practice in the Maldives towards more rigidly patriarchal interpretations. Women's labor force participation is high, but limited to lower echelons of the economy. Women are slightly more likely than men to be unemployed. Despite gender-equal primary schooling, girls' access to tertiary and professional education is hampered by beliefs about girls' and women's mobility, and primacy of household roles over others. Within the home, women face challenges that men do not, such as high risks of domestic violence and little control over household assets. Finally, women have limited presence in politics and governance. Men struggle with different gendered situations. Unemployment is high among young men, who also increasingly are alienated from society and family. This alienation, combined with a lack of strong alternative social structures to replace the breakdown of traditional family structures that has accompanied Maldives' development trajectory, appear to be propelling young men towards greater social conservatism, participation in gangs, drug use and violence. Nonetheless, women are more disadvantaged in more realms of life than are men. Moreover, public support for gender equality and women's rights appears to be declining. These developments are worrying for the future of gender equality in the Maldives, as well as for a more inclusive development model that would offer opportunities to both men and women.

Excise taxes on tobacco and alcohol products can be an effective instrument for promoting public health through the curbing of smoking and excessive drinking, while raising significant financing for development priorities. Designed and implement well, excise taxes represent a win-win for public health and finances. While the public policy rationale for excise reforms is strong in both developed and developing countries, realizing reforms in practice often faces significant opposition by the industry and vested interests. Low level, complex and poorly designed excise tax regimes persist. Getting the technical details right, and effectively managing the political economy of reforms, are vital to securing better excise tax outcomes. The Philippines passed in 2012, implemented, and has been results monitoring a successful tobacco and alcohol tax, dubbed Sin Tax. The reform not only greatly increased, simplified and improved the excise tax reform, but also earmarked the significant part of the large ensuring incremental revenues to helping finance Universal Health Care (UHC) for the bottom forty percent of the population. Sin Tax Reform in the Philippines summarizes both the technical and political economy aspects of tobacco and excise tax reforms. The study analyzes issues of rate structure and levels, implementation phasing, and equity impact analysis. The book is intended as a resource for audiences in both the Philippines and other countries wishing to promote successful excise tax reforms to towards between public sector governance, finances and health. For the Philippines, it highlights measures to ensure that the revenue and expenditure measures associated with the reform continue to be delivered, and can be deepened over time. The Philippines experience should prove encouraging and useful for reform champions in other countries advancing similar types of excise tax and development financing/expenditure earmarking for equitable development and public health.

The Nigeria Urbanization Review serves the critical and timely purpose of understanding the challenges and opportunities of urbanization in Nigeria. The country's rapid urban population growth and expansion is examined in relation to the account of its recent urban economic growth in order to seek for ways to finance urban development, particularly the provision of urban public goods and services. The objective of this analytical program is to provide diagnostic tools to inform policy dialogue and investment priorities on urbanization. This report serves the critical and timely purpose of focusing attention on the challenges and opportunities of urbanization in Nigeria. The executive summary at the front summarizes the key trends of Nigeria's urbanization and sets out a framework to structure core urban challenges in view of underlying causes. Detailed analyses follow in the subsequent four chapters. In Chapter 1, the dynamics of Nigeria's urbanization process are presented, with particular attention to the country's rapid urban population growth, the very large-scale urban expansion, and the stubborn persistence of high levels of urban poverty, inequality and regional disparity. Chapter 2 provides an account of Nigeria's recent urban economic growth, in view of the nature of the concentration of economic activity across the country's states and cities, and of the limited performance of urban and regional economies in generating higher levels of employment and improving business climates. Chapter 3 turns to description and assessment of land management, urban planning and housing provision procedures and systems, which face a variety of challenges with regard to costs, affordability, capacity, equity and efficiency. Finally, Chapter 4 deals with the financing of urban development, particularly the provision of urban public goods and services, which is in need of both substantial finance and institutional and systemic improvements and reform.

Vietnam has attained a strong record of economic growth and poverty reduction since the adoption of market-based economic reforms and pro-poor policies starting in the mid-1980s. Much of this achievement was driven by an untapped, rapidly-growing labor force and the enablement of greater labor participation in higher-productivity sectors of the economy. Yet, as Vietnam has restructured its economic activity towards manufacturing, more mechanized primary sector production and, increasingly, services, and as the labor force is projected to expand at a markedly lower rate than before, finding new sources of productivity improvements has become the key to sustaining economic growth going forward. Improvements in freight logistics can unlock productivity gains across the Vietnamese economy for years to come. The shippers and carriers that operate the supply chains that connect Vietnam to the global economy generally perceive that logistics costs in Vietnam-those incurred when moving, storing and inspecting goods-are more onerous than in peer economies like China, Malaysia and Thailand, even as they are also perceived to be more competitive than those in other developing Asian countries. While many factors may contribute to costly logistics, the main source of underperformance in Vietnam's logistics sector appears to be the inventory-carrying implications of unreliable freight itineraries, unpredictable inspection and clearance procedures, and an uncertain planning, legal and regulatory framework. By making commerce more predictable, particularly for regional and inter-continental trade, more efficient logistics can lower the cost of doing business, boost competitiveness, attract investment and generate employment. In short, efficient logistics can become a driver of lasting growth. Directed at industry practitioners and policy makers alike, this report highlights five key initiatives to improve the reliability and cost-effectiveness of transportation and logistics in Vietnam's domestic and international supply chains. These include: (i) modernizing the customs system more broadly to enable goods clearance in a consistently timely manner; (ii) enhancing regulatory transparency to minimize discretion in the regulation of commerce; (iii) promoting multimodal transport corridor planning; (iv) enhancing competition and professionalism in the trucking industry; and (v) deploying capacity more strategically at major gateways, particularly at Cai Map-Thi Vai.

Sri Lanka has shown remarkable persistence in low female labor force participation rates-at 36 percent from 2015 to 2017, compared with 75 percent for same-aged men-despite overall economic growth and poverty reduction over the past decade. The trend stands in contrast to the country's achievements in human capital development that favor women, such as high levels of female education and low total fertility rates, as well as its status as an upper-middle-income country. This study intends to better understand the puzzle of women's poor labor market outcomes in Sri Lanka. Using nationally representative secondary survey data-as well as primary qualitative and quantitative research-it tests three hypotheses that would explain gender gaps in labor market outcomes: (1) household roles and responsibilities, which fall disproportionately on women, and the associated sociophysical constraints on women's mobility; (2) a human capital mismatch, whereby women are not acquiring the proper skills demanded by job markets; and (3) gender discrimination in job search, hiring, and promotion processes. Further, the analysis provides a comparison of women's experience of the labor market between the years leading up to the end of Sri Lanka's civil war (2006–09) and the years following the civil war (2010–15). The study recommends priority areas for addressing the multiple supply- and demand-side factors to improve women's labor force participation rates and reduce other gender gaps in labor market outcomes. It also offers specific recommendations for improving women's participation in the five private sector industries covered by the primary research: commercial agriculture, garments, tourism, information and communication technology, and tea estate work. The findings are intended to influence policy makers, educators, and employment program practitioners with a stake in helping Sri Lanka achieve its vision of inclusive and sustainable job creation and economic growth. The study also aims to contribute to the work of research institutions and civil society in identifying the most effective means of engaging more women- and their untapped potential for labor, innovation, and productivity-in Sri Lanka's future.

Can Vietnam balance economic growth with environmental responsibility? This report argues that promoting waterborne transport offers a path to lower-carbon growth. Facilitating Trade through Competitive, Low-Carbon Transport examines Vietnam's inland and coastal waterways, highlighting the need for strategic investments. It identifies bottlenecks hindering efficient waterborne freight transport and proposes policy and infrastructure interventions. Discover how Vietnam can promote economic growth, expand opportunity, and increase competitiveness while bolstering environmental sustainability. This report is for policymakers, transport planners, and logistics professionals.

Argentina's path to economic prosperity is through efficient, sustainable and economically thriving cities. Not only are cities a spatial concentration of people, but also they generate agglomeration economies by concentrating ideas, talent, and knowledge. Argentina is one of the most urbanized countries in Latin America, with 90 percent of Argentine people currently living in cities. Argentina's cities are geographically and economically diverse, and its largest urban area – Metropolitan Buenos Aires – is one of Latin America's urban giants. Argentine cities need to address three main challenges to leverage their economic potential. Argentina's current patterns of urban development are characterized by (a) high primacy and unbalanced regional development, (b) limited global economic footprint of urban economies, with employment concentrated in nontradable and resource intensive sectors, and (c) unplanned low-density urban expansion. Argentine cities thus face the challenges of moving toward a more balanced regional development, transitioning from local to global cities, and from urban sprawl to articulated densities to take full advantage of the benefits of agglomeration economies. To address these challenges, Argentina needs the leadership of the federal government; the coordinating power of provinces; and the capacity of empowered, financially sound municipalities. Argentine cities also need system-wide policy reforms in areas such as territorial planning, municipal finance, housing, urban transport, and local economic development. Leveraging the Potential of Argentine Cities: A Framework for Policy Action aims to deepen our empirical understanding of the interplay between urbanization and agglomeration economies in Argentina by asking the following: (a) What are the main trends and spatial patterns of Argentina's urbanization that underlie agglomeration economies?, (b) Are urban policies leveraging or undermining the benefits of agglomeration economies?, and (c) Are Argentine cities fully reaping the benefits of agglomeration economies to deliver improvements in prosperity and livability? By addressing such questions and exploring their implications for action, this study provides a conceptual framework, empirical data, and strategic directions for leveraging the potential of Argentine cities.

Cte d'Ivoire seeks a development strategy to reach middle-income status-a challenge that would require annual growth rates averaging 10 percent over the next 13 years. Global experience of both developed and emerging economies shows that GDP per capita rises with increased urbanization. However, Cte d'Ivoire's economy is underperforming relative to its level of urbanization. The country's urbanization has been negatively correlated with income per capita since the late 1970s, and poverty has been increasing. Rather than consider development of cities individually, successful urbanization plans in Cte d'Ivoire should consider the country's cities as a portfolio of assets, each differentiated by characteristics that include size, location, and density of settlements. The authors of Diversified Urbanization: The Case of Cte d'Ivoire identify three types of cities on the basis of their contribution to growth and job creation: Global Connectors, Regional Connectors along major corridors for regional transport and trade, and Domestic Connectors of localization economies for agribusiness. Stakeholders from the national government, local governments, and the private sector have a shared vision for urbanization in the country-cities that are planned, structured, competitive, attractive, inclusive, and organized around development poles. To achieve this vision and the goal of middle-income status, Ivorian policy makers need to act urgently to support diversified urbanization across all city types. This book identifies important constraints and opportunities along four dimensions: planning, connecting, greening, and financing cities.

Morocco 2040: Emerging by Investing in Intangible Capital documents the major economic and social strides made by Morocco over the past 15 years and analyzes the economic conditions for accelerating the pace of economic catch-up by 2040. A virtuous yet realistic scenario suggests that with higher productivity gains Morocco could double its current pace of convergence with Southern European countries. In one generation, Morocco's standard of living could reach about 45 percent of that of Spain, its immediate Northern neighbor, compared to the current rate of 22 percent. To lay out the possible pathways for Morocco to become the first North African country to attain upper middle income status, the Book then investigates the policies that could bring about such a virtuous scenario of accelerated economic convergence. It shows that sustaining higher productivity gains for 25 years would require greater efforts at building Morocco's institutional, human and social capital-what is also known as intangible capital. Accumulating such intangible capital necessarily take a number of different forms and the Book proposes a four-pronged approach. First, by strengthening Morocco's market institutions for a more efficient allocation of capital and labor and international integration. Second, by strengthening Morocco's public institutions to strengthen the rule of law and justice, modernize the public administration, and improve the quality of public service delivery. Third, by strengthening Morocco's human capital, especially education, health and the development of early childhood. And fourth, by strengthening Morocco's social capital through greater gender parity and increased interpersonal trust and civism in society. By placing more of a priority on its intangible capital, Morocco would be advancing a social contract based on the promotion of a more open society. It would be taking a route that is partly new, but which is also the logical outcome of many economic and social diagnoses and pressing calls for change.