WORLD DEVELOPMENT REPORT, WDR 2009 RESHAPING ECONOMIC GEOGRAPHY CONSULTATION - MENA REGION MAY 5-6, 2008 DRAFT CONCEPT NOTE The World Bank publishes each year a World Development Report (WDR) focusing on a major issue of development policies. Such WDRs constitute reference documents for the world development community These reports are prepared by the Development Economics Vice-Presidency, currently under the direction of Chief Economist Justin Lin (who succeeds François Bourgignon). The topics of the last three reports were: WDR 2008: Agriculture for Development WDR 2007: Development and the Next Generation WDR 2006: Equity and Development The World Development Report is one of the vehicles used by the World Bank to engage in and promote dialogue with the development community. Each year, the different aspects of development are discussed through the report s main topic, chosen to reflect current development issues. The report seeks to analyze a wide range of issues and is not intended to focus on the Bank s operations since there are many other ways to evaluate the Bank s performance and policies. The variety of debates is essential for the report. This is why, each year, the Bank s WDR unit consults with experts, stakeholders, and decision-makers worldwide. It collects their comments on successive versions of the draft document thus benefiting from the different points of view that will contribute to enrich the report. The World Development Report 2009 will focus on spatial disparities and development policy. A consultation is being organized for the Middle East and North Africa Region in Marseilles, for May 5-6, 2008. The consultation, an initiative of the French government, will be organized by the Marseilles Office of the World Bank (WBI/KNA MENA) and will relate to consultations conducted in Africa. 1
ISSUES DISCUSSED IN THE DRAFT VERSION OF THE WDR 2009 The current version of the WDR 2009 is based on the principle that the concentration of economic activity is inevitable and in general desirable for economic growth, but that disparities in welfare levels within a territory are not. The policies best suited to reinforce economic concentration and at the same time limit spatial disparities are based on a more adequate integration of markets. Hence, the report suggests analyzing the different types of approach that will make possible exploiting the advantages of economic concentration while ensuring that individual well-being does not depend exclusively on the location of agents. The WDR will present the broad stylized facts, the principal determinants of spatial transformations, and the policy implications of these findings. Three dimensions: The WDR will summarize how the economic topography of the developing world is changing. It will document the increase in density of economic activity, the decline of distance between economic agents and markets, and the persistence of division between and within countries due to natural, cultural and policyrelated barriers. Three determinants: The Report will analyze the determinants of how concentration takes place, by distilling the literature on economic geography for policy-relevant insights. It will illustrate the interplay between scale economies, factor mobility and transport costs by examples from developing and developed countries. Three debates: The Report will complement the analysis of why economic activities are concentrated with an understanding of where they are located by recognizing the influence of natural endowments and political and social institutions. The Operational Units of the World Bank will enrich the debates on the rural-urban transition and territorial development within countries, and regional integration among countries. These elements will structure the report and will be illustrated with examples of successful and unsuccessful public policies. The report will feature prominently the situation in Sub-Saharan Africa characterized by the greatest fragmentation (largest amount of countries, large part of the population in land-locked countries, high costs of transport). The report aims at answering three questions concerning a possible balance between economic activity concentration and spatial equality in living standards: While three quarters of the world s economic activity is concentrated in cities, three quarters of the world s poor live in rural areas. What type of urbanization pattern can best bridge the gaps between the poor living in rural areas and the economic opportunities offered by cities? Even if most poverty is found in the most active regions, the impact of poverty in lagging regions is stronger. What could be the possible solutions for lagging regions: should it be envisaged to bring economic activities to lagging regions or rather to connect their inhabitants to the more dynamic regions within the same country? 2
While growth is faster and more sustained in countries with better access to world markets, part of the population is deprived of economic opportunities due to geographical or political barriers. How can connections be reinforced between countries so that the poorest can benefit from international integration and grow faster? Finally, the draft report presents the principal messages expected as a result of the analysis with regards to: Urbanization strategies (continue with rural development strategies; urban strategies aimed at reducing congestion; urban finance and city management plans; evaluating the impact of the climate change); Territorial development (regional development policies aimed at stimulating resources in lagging regions and promoting the integration of markets; development of infrastructure); and Regional integration (promoting the emergence of regional champions and positive spill over to neighboring countries). CONSULTATION MIDDLE EAST AND NORTH AFRICA REGION The World Bank will conduct three consultations in Africa in April 2008 in the cities of: Abidjan, Dar Es Salam, and Pretoria. For the Middle East and North Africa Region, the consultation will take place during a workshop in Marseilles, May 5-6, 2008. In view of the region s specific characteristics and the previous consultations conducted in other countries, the workshop will focus on the following three thematic issues: A) Urban-rural transformation and the emergence of slums B) Territorial development and decentralization C) Regional and global integration Moreover, as contribution to the debates, a special session will be devoted to the presentation of the WB Urban Strategy. This question is particularly important for the Middle East and North Africa Region, considering its rapid urbanization (65% of the population is now concentrated in urban areas and it should reach 75% in 2030 which means 80 to 100 millions more inhabitants in cities). Chaired by Frannie Léautier, consultant and former Vice-president of the World Bank Institute (WBI), the consultation will mobilize some thirty high level participants, national and local decision makers, experts and researchers from the Middle East and Africa, and some fifteen observers representatives of various donor organizations. 3
The draft program of the workshop is as follows: 1. Day 1: May 5, 2008 Morning: General Introduction and Topic A - Welcome by the organizers, KNA-MENA, followed by opening remarks by the representative of the French Ministry of Foreign Affairs - General presentation of the WDR by Mr. Gill, head of the WDR unit - Opinion of an international expert: Mr. Arnaud, Consultant - Consultations in Africa: Mr. Ndiaye, Executive Secretary of the Municipal Development Program (Benin); and Mr. Kouadio, Professor/Researcher at the ENSEA (Ivory Coast). - Presentation of Topic A by the WDR Unit, World Bank, followed by comments of Mrs. Kharfi, Director, Territorial Planning (Algeria) - Summing up of the first conclusions of Topic A by the rapporteur, Mr. Lavinal, World Bank Afternoon: Special Session: The World Bank s Urban Development Strategy and first day Conclusions - Presentation of the special session by Ms. Joshi-Ghani, Sector Manager, Finance Economics & Urban Department, World Bank - Brief summary of the conclusions by the rapporteur, Mr. Mayet, Consultant (France) - First day conclusions - Reactions by the observers - Summing up by Frannie Léautier 2. Day 2: May 6, 2008 Morning: Session on WB Urban Strategy and Topic B and Topic C - Introduction of Topic B of the World Bank WDR Unit, and comments by the discussant Mr. Chorfi, Director General, Urbanism & Architecture (Morocco) - Brief summary of the first conclusions of Topic B by the Rapporteurs: Mr. Veltz, researcher, School of Civil Engineering (France). - Introduction of Topic C of the World Bank, WDR Unit and comments by the discussant, Mrs. Sobhi, Vice-president GAFI (Egypt) - Brief summary of the first recommendations for Topic C by the rapporteur: Mr. Reiffers, Professor, University of Aix-Marseille (France). 4
Afternoon: Challenges for the Middle East and North Africa and General Conclusions - Presentation by Mr. Kremer, Senior Economist, World Bank General conclusions - Observers reactions - Conclusions by Mr. Gill, Head of the WDR Unit, World Bank - Work perspectives for WBI/KNA-MENA, by Jean-Eric Aubert - Overall summary by the Chair: Mrs. Frannie Léautier The workshop should allow to: - make suggestions for the World Development Report 2009 (WDR) - make suggestions for the urban development strategy of the World Bank - evoke the main challenges for territorial development in the area in the MENA region - examine opportunities for the work program of WBI/ KNA-MENA, particularly within the context of the organization of the WB symposium of urban research, to be held in France, in mid-2009. At the end of the workshop, the four rapporteurs will prepare within a 15-day period a summary report by thematic issue. The reports, presentations, and video-tape of the sessions during the workshop will be published online in the WDR web site and the WBI/KNA MENA website (www.euromedina.org), as well as in a CD Rom. The draft report will be presented to the World Bank Board of Directors in June 2008 taking into account the outcomes of all the consultations carried out. *********************** 5