Publication: Unlocking Land Values to Finance Urban Infrastructure
Loading...
Other Files
1,764 downloads
Date
2008
ISSN
Published
2008
Author(s)
Editor(s)
Abstract
Urban growth throughout the developing world has created a challenge for financing infrastructure. Investment in infrastructure is needed to provide basic services for newly developed parts of urban areas. It is needed to meet the demand for a safer and more reliable water supply, higher standards for the removal and treatment of wastewater and solid waste, and the transportation requirements of a population whose expectations of mobility rise with household incomes. Infrastructure investment also is essential to the economic productivity of cities. This book examines an important additional option for local infrastructure finance: capturing land value gains for public investment. Land values are highly sensitive to infrastructure investment and urban economic growth. Public works projects such as road construction, water supply, and mass transit investment produce benefits that are immediately capitalized into surrounding land values. Many cities in developing countries have underused public lands that would be more valuable if sold and converted into infrastructure assets. Tapping land values was a large part of the investment strategy of Western countries in financing urban infrastructure during the 19th century, when cities were growing most rapidly. As part of the overall financing mix, using land assets for infrastructure finance has several advantages. Most instruments of this type generate revenues upfront, making it easier to finance lumpy investment projects. Mobilizing finance from land transactions also generates price signals that increase the efficiency of urban land markets and help rationalize the urban development pattern.
Link to Data Set
Citation
“Peterson, George E.. 2008. Unlocking Land Values to Finance Urban Infrastructure. Trends and Policy Options; No. 7. © World Bank. http://hdl.handle.net/10986/6552 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication The Integrated Urban Development Strategy for Ploiesti Growth Pole 2014-2020(World Bank, Washington, DC, 2016)In 2012, the World Bank signed five agreements with MRDPA for advisory services, out of which one relates to the growth poles policy and to its improvement for the programming period 2014-2020. This agreement has three components: 1) an analysis of the growth poles policy, 2) energy efficiency studies for each growth pole; and 3) a review of the Integrated Development Plans prepared by the growth poles for the period 2007-2013. In this context, South Muntenia Regional Development Agency, through the coordinator of Ploiești Growth Pole, requested the World Bank, under a project funded by ERDF through the Technical Assistance Operational Program 2007-2013, to support the Growth Pole in implementing the recommendations stemming from the previous analysis with: 1) updating the Integrated Development Plan for 2014-2020; and 2) proposing an improved institutional framework for coordinating the planning, implementation and monitoring of projects under this plan. The current document of the Integrated Development Plan belonging to Ploiești Growth Pole was developed during the period 2008-2009 and approved and submitted to South Muntenia RDA in April 2010. It contains a total number of 93 projects with a total value of RON 5,136,143,583.91, out of which 762,515,322.81 are EU funds, and the remainder comes from the national budget and the beneficiaries’ own contribution. In the process of updating the plan, the implementation status of these projects will be studied further, while attention will be also given to the unimplemented projects in order to see whether they will be included in the documentation, depending on their response to the new development conditions of the growth pole.Publication Handshake, No. 4 (January 2012)(International Finance Corporation, Washington, DC, 2012-01)This issue includes the following headings: mass rapid transit: a tool for urban expansion; financing: beyond sovereign guarantees; and low-income housing: lessons from Latin America.Publication Handshake, No. 12 (January 2014)(Washington, DC, 2014-01)This issue of the Handshake, IFCs quarterly journal on public-private partnerships, contains the following topics of interest: weighing the options: burn or bury?; waste and climate: supporting governments; community engagement: integrating Indias informal sector; an interview with the director of the documentary Trashed; and bonus: podcast with 2013 CNN hero on community cleanups.Publication Handshake, No. 11 (October 2013)(International Finance Corporation, Washington, DC, 2013-10)This issue includes the following headings: donors: aid versus trade; investment: seeking strong partners; power: hydro heats up; water: sanitation solutions; and first person: African Development Bank PresidentPublication Handshake, No. 7 (October 2012)(International Finance Corporation, Washington, DC, 2012-10)This issue includes the following headings: road: Brazils competitive drive; rail: speeding toward tomorrow; logistics: MIT expert on why logistics clusters matter; and interview: UPSs sustainable strategies.
Users also downloaded
Showing related downloaded files
Publication Doing Business 2020(Washington, DC: World Bank, 2020)Doing Business 2020 is the 17th in a series of annual studies investigating the regulations that enhance business activity and those that constrain it. It provides quantitative indicators covering 12 areas of the business environment in 190 economies. The goal of the Doing Business series is to provide objective data for use by governments in designing sound business regulatory policies and to encourage research on the important dimensions of the regulatory environment for firms.Publication Poverty and Shared Prosperity 2020(Washington, DC: World Bank, 2020-10-07)Previous Poverty and Shared Prosperity Reports have conveyed the difficult message that the world is not on track to meet the global goal of reducing extreme poverty to 3 percent by 2030. This edition brings the unwelcome news that COVID-19, along with conflict and climate change, has not merely slowed global poverty reduction but reversed it for first time in over twenty years. With COVID-19 predicted to push up to 100 million additional people into extreme poverty in 2020, trends in global poverty rates will be set back at least three years over the next decade. Today, 40 percent of the global poor live in fragile or conflict-affected situations, a share that could reach two-thirds by 2030. Multiple effects of climate change could drive an estimated 65 to 129 million people into poverty in the same period. “Reversing the reversal” will require responding effectively to COVID-19, conflict, and climate change while not losing focus on the challenges that most poor people continue to face most of the time. Though these are distinctive types of challenges, there is much to be learned from the initial response to COVID-19 that has broader implications for development policy and practice, just as decades of addressing more familiar development challenges yield insights that can inform responses to today’s unfamiliar but daunting ones. Solving novel problems requires rapid learning, open cooperation, and strategic coordination by everyone: from political leaders and scientists to practitioners and citizens.Publication Poverty and Shared Prosperity 2016(Washington, DC: World Bank, 2016-10-02)Poverty and Shared Prosperity 2016 is the first of an annual flagship report that will inform a global audience comprising development practitioners, policy makers, researchers, advocates, and citizens in general with the latest and most accurate estimates on trends in global poverty and shared prosperity. This edition will also document trends in inequality and identify recent country experiences that have been successful in reducing inequalities, provide key lessons from those experiences, and synthesize the rigorous evidence on public policies that can shift inequality in a way that bolsters poverty reduction and shared prosperity in a sustainable manner. Specifically, the report will address the following questions: • What is the latest evidence on the levels and evolution of extreme poverty and shared prosperity? • Which countries and regions have been more successful in terms of progress toward the twin goals and which are lagging behind? • What does the global context of lower economic growth mean for achieving the twin goals? • How can inequality reduction contribute to achieving the twin goals? • What does the evidence show concerning global and between- and within-country inequality trends? • Which interventions and countries have used the most innovative approaches to achieving the twin goals through reductions in inequality? The report will make four main contributions. First, it will present the most recent numbers on poverty, shared prosperity, and inequality. Second, it will stress the importance of inequality reduction in ending poverty and boosting shared prosperity by 2030 in a context of weaker growth. Third, it will highlight the diversity of within-country inequality reduction experiences and will synthesize experiences of successful countries and policies, addressing the roots of inequality without compromising economic growth. In doing so, the report will shatter some myths and sharpen our knowledge of what works in reducing inequalities. Finally, it will also advocate for the need to expand and improve data collection—for example, data availability, comparability, and quality—and rigorous evidence on inequality impacts in order to deliver high-quality poverty and shared prosperity monitoring.Publication Poverty and Shared Prosperity 2018(Washington, DC: World Bank, 2018-10-17)The World Bank Group has two overarching goals: End extreme poverty by 2030 and promote shared prosperity by boosting the incomes of the bottom 40 percent of the population in each economy. As this year’s Poverty and Shared Prosperity report documents, the world continues to make progress toward these goals. In 2015, approximately one-tenth of the world’s population lived in extreme poverty, and the incomes of the bottom 40 percent rose in 77 percent of economies studied. But success cannot be taken for granted. Poverty remains high in Sub- Saharan Africa, as well as in fragile and conflict-affected states. At the same time, most of the world’s poor now live in middle-income countries, which tend to have higher national poverty lines. This year’s report tracks poverty comparisons at two higher poverty thresholds—$3.20 and $5.50 per day—which are typical of standards in lower- and upper-middle-income countries. In addition, the report introduces a societal poverty line based on each economy’s median income or consumption. Poverty and Shared Prosperity 2018: Piecing Together the Poverty Puzzle also recognizes that poverty is not only about income and consumption—and it introduces a multidimensional poverty measure that adds other factors, such as access to education, electricity, drinking water, and sanitation. It also explores how inequality within households could affect the global profile of the poor. All these additional pieces enrich our understanding of the poverty puzzle, bringing us closer to solving it. For more information, please visit worldbank.org/PSPPublication Supporting Youth at Risk(World Bank, Washington, DC, 2008)The World Bank has produced this policy Toolkit in response to a growing demand from our government clients and partners for advice on how to create and implement effective policies for at-risk youth. The author has highlighted 22 policies (six core policies, nine promising policies, and seven general policies) that have been effective in addressing the following five key risk areas for young people around the world: (i) youth unemployment, underemployment, and lack of formal sector employment; (ii) early school leaving; (iii) risky sexual behavior leading to early childbearing and HIV/AIDS; (iv) crime and violence; and (v) substance abuse. The objective of this Toolkit is to serve as a practical guide for policy makers in middle-income countries as well as professionals working within the area of youth development on how to develop and implement an effective policy portfolio to foster healthy and positive youth development.