Lall, Somik V.2013-03-132013-03-132009-05-05https://hdl.handle.net/10986/12698Policymakers in developing countries are increasingly recognizing the necessity of developing strategies and identifying specific investment programs to reduce spatial differences in living standards within their national territories. Choosing among alternate policy instruments to support spatial convergence is not straightforward. Should the focus be social policies that support human development in lagging regions and promote migration to leading regions? Or infrastructure policies that connect lagging regions with markets in leading ones? Or investment and regulatory policies to create new clusters of economic activity in regions not favored by the market? The 2009 World Development Report (WDR) provides a policy framework for integrating lagging and leading areas within countries, prioritizing and sequencing policy instruments based on the severity of the territorial integration challenge. To operationalize the WDR's policy priorities, this report discusses analytic tools to measure the magnitude of regional disparities and identify where and in what activities specific policies and investments can be most effective. It also highlights potential economic and social tradeoffs of alternative policy instruments for pursuing spatial equity. Country case studies are provided to illustrate how these tools either inform a specific policy debate on territorial development or have been directly used to guide ongoing policy discussions between the Bank and counterparts in national and sub national governments.en-USCC BY 3.0 IGOABSOLUTE TERMSACCESS TO MARKETSACCESSIBILITYACCESSIBILITY INDICESACCESSIBILITY TO MARKETSADMINISTRATIVE REGIONSAGGLOMERATION BENEFITSAGGLOMERATION ECONOMIESAGRICULTUREAUTOMOBILEAUTOMOBILE INDUSTRYAVERAGE PRODUCTIVITYBASIC INFRASTRUCTUREBENCHMARKBOTTLENECKSCENTRAL REGIONCOMPREHENSIVE DEVELOPMENTCONCENTRATION OF PEOPLECONSUMER GOODSCONSUMPTION EXPENDITURESCROP PRODUCTIONDEMAND FOR TRANSPORTDEMAND FOR TRANSPORT SERVICESDEREGULATIONDEVELOPING COUNTRIESDEVELOPMENT POLICIESDEVELOPMENT POLICYDIVERSIFICATIONDRIVERSECONOMIC ACTIVITYECONOMIC CONCENTRATIONECONOMIC GEOGRAPHYECONOMIC GROUPINGSECONOMIC GROWTHECONOMIC IMPLICATIONSECONOMIC INTEGRATIONECONOMIC PERFORMANCEECONOMIC REGIONECONOMIC STRUCTURESECONOMIC THEORYECONOMICS LITERATUREECONOMIES OF SCALEEFFICIENCY OF INFRASTRUCTUREELASTICITIESENDOGENOUS VARIABLESEXPECTED RETURNEXPECTED RETURNSEXTERNALITIESFARMERSFIXED COSTSFOOD PROCESSINGFOOD PRODUCTSFREIGHTFREIGHT TRANSPORTFUELFUEL COSTSGDPGDP PER CAPITAGINI COEFFICIENTGROWTH ACROSS REGIONSGROWTH POTENTIALHIGH TRANSPORTHIGHWAYHIGHWAY CONSTRUCTIONHIGHWAY PROJECTSHOUSEHOLD SIZEHOUSEHOLD WELFAREHOUSINGHUMAN CAPITALHUMAN DEVELOPMENTILLITERACYINCOMEINCOME ACROSS REGIONSINCOME DISTRIBUTIONINCOME LEVELSINCREASING RETURNSINCREASING RETURNS TO SCALEINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE POLICIESINFRASTRUCTURESINTERNATIONAL BANKINTERREGIONAL TRADEINTERREGIONAL TRANSPORTLAGGING REGIONLAGGING REGIONSLAND SIZELENGTH OF MOTORWAYSLIVING STANDARDSMARGINAL PRODUCTMARGINAL PRODUCTIVITYMEASUREMENT OF POVERTYMOBILITYMONOPOLIESMOUNTAINOUS TERRAINNATIONAL INCOMENATIONAL POVERTYNATURAL ENDOWMENTSNOMINAL INCOMENUTRITIONORGANIZATIONAL STRUCTURESPER CAPITA INCOMEPER CAPITA INCOMESPERIPHERAL REGIONSPOOR HOUSEHOLDSPOOR MARKET ACCESSPOOR PEOPLEPOOR REGIONSPOORER REGIONSPOPULATION DENSITIESPOVERTY ESTIMATESPOVERTY INCIDENCEPOVERTY MAPPOVERTY MAPSPOVERTY RATESPOVERTY REDUCTIONPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTIVITYPRODUCTIVITY GROWTHPUBLIC INVESTMENTPUBLIC INVESTMENTSRAILROADRAILROADSRAILWAYRAILWAY STATIONSRAILWAYSREDUCTION IN TRAVELREGIONAL ALLOCATIONREGIONAL CHARACTERISTICSREGIONAL CONVERGENCEREGIONAL DEVELOPMENTREGIONAL DEVELOPMENT FUNDREGIONAL DIFFERENCESREGIONAL DISPARITIESREGIONAL DISPARITYREGIONAL DUMMYREGIONAL EFFECTSREGIONAL GROWTHREGIONAL IMBALANCESREGIONAL IMPACTSREGIONAL INCOMESREGIONAL INDICATORSREGIONAL INEQUALITIESREGIONAL INEQUALITYREGIONAL INFRASTRUCTUREREGIONAL LEVELREGIONAL LEVELSREGIONAL MARKETREGIONAL POLICIESREGIONAL POLICYREGIONAL PRODUCTREGIONAL PRODUCTIONREGIONAL RESOURCE ALLOCATIONREGIONAL SPECIALIZATIONREGIONAL STRATEGYREGIONAL TRADEREGIONAL TRAVELREGIONAL VARIATIONSREGRESSION ANALYSISREMOTE AREASREMOTE LOCATIONSREMOTE REGIONSRICH REGIONSROADROAD INFRASTRUCTUREROAD MAINTENANCEROAD NETWORKROAD TYPEROADSROUTESRURAL AREASSANITATIONSCHOOLINGSPATIAL DEVELOPMENTSPATIAL DIFFERENCESSPATIAL DISTRIBUTIONSPATIAL EQUITYSPATIAL IMPACTSPATIAL INEQUALITIESSPATIAL INEQUALITYSPATIAL ORGANIZATIONSPATIAL POLICYSPATIAL SCALESUBSISTENCESUBSISTENCE FARMERSTERRITORIAL DEVELOPMENTTRAFFICTRANSPORTTRANSPORT CORRIDORSTRANSPORT COSTSTRANSPORT IMPROVEMENTSTRANSPORT INDUSTRYTRANSPORT INFRASTRUCTURETRANSPORT INVESTMENTSTRANSPORT NETWORKTRANSPORT SECTORTRANSPORT SYSTEMTRANSPORTATIONTRANSPORTATION COSTSTRANSPORTATION RATESTRAVEL COSTSTRAVEL TIMETRAVEL TIMESTRUCKSTRUEUNEMPLOYMENTUTILITY FUNCTIONVEHICLEVEHICLE COSTSVEHICLESWEALTHWELFARE IMPROVEMENTSWorld Bank10.1596/12698