Leveraging Urbanization in South Asia
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Leveraging Urbanization in South Asia Leveraging Urbanization in South Asia Managing Spatial Transformation for Prosperity and Livability Peter Ellis and Mark Roberts © 2016 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 18 17 16 15 This work is a product of the staff of The World Bank with external contributions. The fi ndings, interpre- tations, and conclusions expressed in this work do not necessarily refl ect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Contents Foreword . xi Acknowledgments . xiii Abbreviations . xv Overview . 1 Introduction . 1 Urban prosperity and livability below potential . 2 Urbanization—Messy and hidden . 3 Congestion constraining the benefits of agglomeration . 4 Addressing deficits in urban governance and finance . 5 Three additional areas for policy action . 7 Moving forward: Leveraging urbanization for greater prosperity and livability . 9 Notes. 10 Introduction . 11 Summary . 11 The growing recognition of urbanization’s importance . 12 A framework for assessing urbanization and city performance . 12 Sources of agglomeration economies and congestion forces . 14 Notes. 17 References . 18 Part 1 PATTERNS OF URBANIZATION AND STRUCTURAL TRANSFORMATION 1 Leveraging Urbanization for Prosperity and Livability . 23 Introduction . 23 South Asia’s recent urbanization in global and historical perspective . 24 Livability of South Asia’s cities . 31 Looking ahead—Leveraging urbanization for prosperity and livability . 37 Notes . 39 References . 40 v vi CONTENTS 2 Spatial Patterns of Subnational Performance and Urban Growth . 43 Introduction . 43 Measuring differences in subnational performance . 44 Variations in the level and pace of urbanization across South Asian countries . 51 Urban population growth and its drivers . 53 Population growth across urban hierarchies and geographic space . 59 Rapid relative expansion of urban footprints and the rise of the multicity agglomeration . .61 Spatial patterns of economic growth . 65 Growth of major agglomerations . 66 Spatial deconcentration of manufacturing . 68 Summary . 71 Notes. 72 References . 74 Part 2 POLICIES FOR IMPROVED LEVERAGING 3 Revitalizing Urban Governance and Finance . 79 Introduction . 79 Basic government and intergovernmental structures and decentralization policy . 81 The empowerment deficit . 84 The resource deficit . 87 The accountability deficit . 93 Where empowerment, resources, and accountability meet: Implications for urban service delivery . 97 Bridging gaps in urban empowerment, resources, and accountability . 102 Notes. 106 References . 106 4 Planning and Managing Spatial Structure and Connectivity . 109 Introduction . 110 Developing a system of well-connected and productive cities . 112 Managing urban expansion and rejuvenating city cores . 123 Urban governance in spatial and transportation planning in cities . 134 Notes. 146 References . 146 5 Providing Affordable Land and Housing . 149 Introduction . 149 Impact of urbanization on housing . 150 The consequences of failing to provide affordable housing: At least one in four urban dwellers lives in slums . 152 Overcoming housing supply constraints: A two-pronged approach . 155 Key recommendations ..