Leveraging the Potential of Argentine Cities Muzzini, Eraso Puig, Anapolsky, a Framework for Policy Action Lonnberg, and Mora
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A Framework for Policy Action for Policy A Framework Cities of Argentine the Potential Leveraging DIRECTIONS IN DEVELOPMENT Countries and Regions Muzzini, Eraso Puig, Anapolsky, Anapolsky, Puig, Muzzini, Eraso Leveraging the Potential of Lonnberg, and Mora Lonnberg, Argentine Cities A Framework for Policy Action Elisa Muzzini, Beatriz Eraso Puig, Sebastian Anapolsky, Tara Lonnberg, and Viviana Mora Leveraging the Potential of Argentine Cities DIRECTIONS IN DEVELOPMENT Countries and Regions Leveraging the Potential of Argentine Cities A Framework for Policy Action Elisa Muzzini, Beatriz Eraso Puig, Sebastian Anapolsky, Tara Lonnberg, and Viviana Mora © 2017 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 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. 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All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights @ worldbank.org. ISBN (paper): 978-1-4648-0840-1 ISBN (electronic): 978-1-4648-0841-8 DOI: 10.1596/978-1-4648-0840-1 Cover illustration: © Florencia Micheltorena. Used with permission. Further permission required for reuse. Cover design: Debra Naylor, Naylor Design, Washington, DC. Library of Congress Cataloging-in-Publication Data have been requested. Leveraging the Potential of Argentine Cities • http://dx.doi.org/10.1596/978-1-4648-0840-1 Contents Foreword xxi Acknowledgments xxv About the Authors xxvii Abbreviations xxix Overview 1 Part I Urbanization Trends and Spatial Patterns 7 Part II Diagnostics of Urban Policies 22 Notes 43 References 45 Chapter 1 Introduction 49 Summary 49 Introduction 49 Structure of the Report 55 References 55 Chapter 2 Urbanization and Growth 57 Summary 57 Introduction 58 Urban Hierarchy 58 Urbanization and Economic Development 60 Urbanization and Growth: A Historical Perspective 64 Notes 68 References 69 Chapter 3 Spatial Demographic Trends 73 Summary 73 Introduction 74 Demographic Trends 74 Migration Trends 94 Notes 101 References 102 Leveraging the Potential of Argentine Cities • http://dx.doi.org/10.1596/978-1-4648-0840-1 v vi Contents Chapter 4 Spatial Economic Trends 103 Summary 103 Introduction 104 Economic Trends 106 Productivity and Agglomeration Economies 118 Economic Dynamism 125 Sectoral Composition of Employment: Role of Tradable Sectors 132 Employment Growth Drivers of Agglomerations 141 Notes 149 References 151 Chapter 5 Urban Expansion Patterns 153 Summary 153 Introduction 154 Expansion Trends of Agglomerations 155 Sprawl and Agglomeration Economies 158 Metropolitan Buenos Aires’ Changing Patterns of Expansion 164 Expansion of Peri-Urban Areas 168 Notes 172 References 173 Chapter 6 Territorial Planning 175 Summary 175 Introduction 175 Institutional Framework for Territorial Planning 177 Challenges of Territorial Planning 181 Notes 191 References 191 Chapter 7 Municipal Finance 193 Summary 193 Introduction 194 Municipal Finance Overview 197 Municipal Revenues 202 Local Expenditures 213 Notes 221 References 222 Chapter 8 Housing 225 Summary 225 Introduction 226 Sector Overview 226 Constraints in the Housing Market 236 Leveraging the Potential of Argentine Cities • http://dx.doi.org/10.1596/978-1-4648-0840-1 Contents vii Government’s Programs to Address Challenges in the Housing Market 245 Notes 252 References 252 Chapter 9 Urban Transport 255 Summary 255 Introduction 256 Sector Overview 256 Institutional Setting 263 Challenges in Urban Transport 268 Impact of Transport Policies on Agglomeration Economies: The Case of Metropolitan Buenos Aires 282 Notes 285 References 286 Chapter 10 Local Economic Development 291 Summary 291 Introduction 292 National Initiatives for Regional and Local Economic Development 292 Challenges and Initiatives for Local Economic Development 299 Local Economic Development: Case Studies 307 Notes 318 References 318 Chapter 11 Measuring Prosperity and Livability: Spatial Patterns of Cities’ Performance 321 Summary 321 Introduction 321 Measuring Prosperity 324 Measuring Livability 335 Notes 352 References 353 Chapter 12 Moving Forward: A Framework for Action 355 Summary 355 Introduction 355 Priority 1: Promote Sustainable and Efficient Spatial Development 360 Priority 2: Position Municipalities as Competent and Accountable Service Providers 365 Priority 3: Encourage Sustainable and Efficient Housing Development 371 Leveraging the Potential of Argentine Cities • http://dx.doi.org/10.1596/978-1-4648-0840-1 viii Contents Priority 4: Promote Efficient, Sustainable, and Equitable Urban Transport 378 Priority 5: Power the Long-Term Economic Growth of Argentine Cities 389 Notes 403 References 403 Appendix A Argentina’s Regions, Provinces, and EPH Agglomerations 407 Note 411 References 411 Appendix B Estimating Subnational Gross Domestic Product with Nighttime Light Data 413 Notes 415 References 416 Appendix C Measuring Prosperity and Livability: Methodology 417 Methodology for Estimating the Prosperity Index 417 Methodology for Estimating the Livability Index 419 Note 421 References 421 Boxes O.1 Agglomeration Economies 2 O.2 Argentina’s Geography and Urban Space 4 O.3 Livability Index: An International Comparison with the Economist Intelligence Unit Liveability Ranking 31 1.1 Argentina’s Geography and Urban Space 53 2.1 Urbanization from an Economic Geographic Perspective 61 2.2 A Tale of Two Cities—Buenos Aires and Chicago in the 1990s 67 3.1 Applying a Density-Based Urban Definition to Argentina 76 4.1 Nighttime Light Data 105 4.2 Estimates of Agglomeration Economies: A Review of the Literature 121 4.3 Cities’ Structural Transformation and Economic Development Trends 133 4.4 Benchmarking Analysis: Oxford Economics Data and Selection of Comparator Cities 136 4.5 Location Quotient and Employment Growth Rate Analysis 141 5.1 Urban Expansion Analysis—Methodology 154 5.2 Urban Expansion of Metropolitan Buenos Aires 166 6.1 Territorial Administrative Models in Argentina 178 Leveraging the Potential of Argentine Cities • http://dx.doi.org/10.1596/978-1-4648-0840-1 Contents ix 6.2 Support to Municipalities for the Development of Land Use Plans in the Province of Santa Fe 182 6.3 The Governance Challenge of Updating Land Use Regulations: The Case of Luján 183 6.4 Challenges of Integrating Planning with Infrastructure Service Provision: The Case of Neuquén 184 6.5 Interjurisdictional Coordination Mandated by the Law: The Case of the Matanza-Riachuelo River Basin 187 6.6 The Challenges of Increasing Density in City Centers: The Case of Salta 189 6.7 Innovation in Land-Based Financing: The Case of Rosario and Trenque Lauquen 190 7.1 Methodology for Municipal Finance Analysis 196 7.2 Transfers