Publication: Facets of Globalization : International and Local Dimensions of Development
The chapters in this volume underscore the transformative role of globalization and urbanization, and show the interplay between these forces. Trade reform and liberalized foreign investment regimess have contributed to the spatial reallocation of economic activity toward cities, especially those cities that can attract and nurture human capital and strong connections to other markets. Global factors have, therefore, reinforced agglomeration economies in shifting economic clout toward cities, and in so doing they may be exacerbating regional disparities in incomes. The rise of cities is changing political dynamics in developing nations. It is forcing a reappraisal of existing constitutional structures and center-local relations, as well as the important--and perhaps more mundane-- arrangements for funding and organizing investment by subnational entities. At the same time, democratization is reinforcing the pressures for local autonomy. This perspective shifts the debate away from whether or not globalization is undermining the role of the central state and toward one about the appropriate allocation of responsibilities and resources to different layers of government. Strong arguments support the position that municipalities can, with the appropriate resources and political structures to ensure their responsiveness to local needs, make substantial improvements in the well-being of urban residents. Experience suggests that some state functions ought to remain with government.
“Yusuf, Shahid; Evenett, Simon; Wu, Weiping. 2001. Facets of Globalization : International and Local Dimensions of Development. World Bank Discussion Paper;No. 415. © Washington, DC: World Bank. http://hdl.handle.net/10986/14014 License: CC BY 3.0 IGO.”
Other publications in this report series
PublicationFostering Competition in China's Power Markets(Washington, DC: World Bank, 2001-03)This report proposes a strategy for developing competitive pool markets in China's power sector and for increasing energy trade between competitive pool markets areas. A three-stage approach is offered for developing the competitive pool markets. During stage 1, a mandatory competitive pool will be created with a single buyer. During stage 2, wholesale competition will be permitted. During stage 3, retail competition will be allowed, making the market fully competitive. The staged approach allows competitive market principles to be introduced immediately within existing institutions. This will allow needed skills and parallel economic reforms to be developed gradually and so facilitate increased competition in the later stages. The report also discusses key elemetns of competitive market development, including the organization of transmission services and transition issues such as dealing with stranded costs and mitigating market power among generators.
PublicationFree Trade Area Membership as a Stepping Stone to Development : The Case of ASEAN(Washington, DC: World Bank, 2001-02)This study investigates the economic impacts of accession to the ASEAN Free Trade Area (AFTA) by the new member countries of Cambodia, the Lao PDR, Myanmar, and Vietnam. The trade policies of these countries are examined, and a series of quantitative analyses were undertaken to evaluate the impacts of accession. The results showed that the static impacts of reducing tariffs against ASEAN members are beneficial, although the magnitude of the net gains is diminished by the trade diversion resulting from the discriminatory nature of the reforms. The binding commitments on protection rates under the AFTA plan provide an important initial step to more broader and more beneficial trade reforms. The study focuses on some of the key country-specific policy challenges associated with trade liberalization--such as declining tariff revenues in Cambodia, and the negative impacts on sensitive domestic industries in Vietnam. The study recommends that accession to AFTA be viewed as an important transitional step in the broader process of trade reform and institutional development needed for successful development and poverty alleviation.
PublicationAgricultural Trade Liberalization in a New Trade Round : Perspectives of Developing Countries and Transition Economies(Washington, DC: World Bank, 2001-09)This discussion paper contains seven studies, designed to a) review, and assess the impact of the implementation of the Uruguay Round (UR) Agreement on Agriculture, and, b) to analyze the key issues, interests, and options for developing countries in the new World Trade Organization's (WTO) round of multilateral trade negotiations in agriculture. Six regional case studies are presented: Sub-Saharan Africa, South Asia, Latin America, Eastern Asia, Central and Eastern Europe, and industrial countries. A quantitative analysis of the dynamics of multilateral liberalization in food, and agricultural trade is also presented. Among some of the key conclusions, it is suggested that much preparatory work was achieved in bringing agriculture fully into the multilateral trading system during the UR, and, a significant achievement was the development of a broad framework for reductions in trade-distorting policies. The UR was also successful in negotiating reduced volumes of subsidized exports, and in providing at least, minimum levels of access to markets. There were, however, a number of limitations in both what was agreed to, and in how the Agreement in Agriculture has actually been implemented, as the analyses show that the work achieved during the UR, will be of limited value, unless market distortions in agriculture can be reduced substantially. If liberal agricultural trade is to succeed, its limitations should be addressed, and policy induced distortions to agricultural production, be substantially reduced.
PublicationMeasuring and Apportioning Rents from Hydroelectric Power Developments(Washington, DC: World Bank, 2000-07)This paper deals with economic rents arising from the development of hydroelectric generation on international watercourses. The paper briefly defines the concept of economic rent and its application to hydroelectric developments. It explores two areas of precedents that shows how the concept could be applied in developments on international watercourses. First, it looks at international law on the ownership and rights of use of such watercourses. Then it looks at past instances of international watercourse development that have used the idea of rent, or rent-like concepts, to determine how to share the benefits from the development. The paper notes that international convention and practice on this topic expect that riparian countries will negotiate the sharing of benefits from international developments. What the paper then seeks is a guide to such negotiations. The paper also devotes some attention to methods for quantifying the rents generated by projects in various situations: where a competitive market exists for the project's output; where no market exists; or where the hydroelectric development is part of a multipurpose project. In general, the total benefit from a cooperative development of an international watercourse is greater than the benefits from separate independent developments. Each participant should get from the cooperative development at least as much rent as it could have obtained from an independent development.
PublicationFinancing of Private Hydropower Projects(Washington, DC: World Bank, 2000-07)This study provides an overview of the issues and challenges related to the private financing of hydropower projects in developing countries. From the very limited pool of projects that have already reached or are nearing financial closure, ten have been chosen for the study from five countries with the most active in promoting private hydro development. Collectively the case study projects provide a reasonable cross-section of private hydro schemes that have been or are being developed. The financing of greenfield private infrastructure on a limited-recourse basis in developing countries faces certain common issues irrespective of the type of project. However, hydropower faces additional difficulties caused by the site-specific nature of projects, high construction risk and long construction periods, their capital-intensive nature with a high proportion of local costs, unpredictable output subject to river flows and broader water management constraints, complex concession process to achieve transparency in the award and pricing of output, and environmental sensitivities. The study suggests the need for longer-term financing to better suit hydropower characteristics, a regulatory framework and realistic public-private risk-sharing arrangements responsive to the requirements of hydropower projects, and the careful preparation of projects by the public sector to enable their formulation on an adequate technical and contractual basis for development as a private concession.