Spence, MichaelAnnez, Patricia ClarkeBuckley, Robert M.2012-03-192012-03-192009978-0-8213-7573-0https://hdl.handle.net/10986/2582Structural change is a key driver of rapid growth: countries diversify into new industries, firms learn new things, people move to new locations. Anything that slows this structural change is also likely to slow growth. Because urbanization is one of the most important enabling parallel processes in rapid growth, making it work well is critical. Urbanization's contribution to growth comes from two sources: the difference between rural and urban productivity levels and more rapid productivity change in cities. In the early decades of development, when the majority of the population is still rural, the jump from rural to urban employment makes a big contribution to growth. As cities grow larger, the second effect faster gains in urban productivity - begins to dominate, as it operates on a larger base. Mortgages can improve households' ability to buy decent housing. But finance relaxes demand constraints only. Unless it is accompanied by measures to increase supply, better finance may result in overshooting prices. This volatility can jeopardize macroeconomic stability. In a typical pattern, strong income growth leads to a rapid increase in housing demand. An injection of liquidity from some source, often overseas, may help over stimulate the market, leading to over optimism and a dangerous concentration of wealth in real estate.CC BY 3.0 IGOABUSEACCOUNTINGAGGLOMERATION ECONOMIESAGRICULTURAL DEVELOPMENTALMBANKSBARRIOSBETTERMENT LEVIESBORROWINGBUDGET CONSTRAINTSCAPITAL EXPENDITURESCAPITAL MARKETSCENTER FOR DEVELOPMENTCENTRAL GOVERNMENTSCITY COUNCILSCITY DEVELOPMENTCITY DWELLERSCITY SIZECLIMATE CHANGECULTURAL CHANGEDEBTDEMOGRAPHIC TRANSITIONDEVELOPING COUNTRIESDEVELOPMENT STRATEGIESDISEASESEASTERN CARIBBEAN CENTRAL BANKECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC PRODUCTIVITYECONOMICSEXTERNALITIESFEDERAL RESERVE SYSTEMFEMALE EDUCATIONFEWER CHILDRENFINANCIAL MARKETSFISCAL CAPACITYFISCAL POLICYFISCAL RESPONSIBILITYGOVERNMENT INTERVENTIONGOVERNMENT POLICIESGOVERNMENT SUPPORTGREEN REVOLUTIONGROSS DOMESTIC PRODUCTHOUSINGHOUSING DEMANDHOUSING MARKETSHOUSING STOCKHOUSING SUBSIDIESHUMAN CAPITALHUMAN LIFEHUMAN SETTLEMENTSILLITERACYILLNESSIMMIGRANTSIMPORTANT POLICYINCOME DISTRIBUTIONINCOME INEQUALITYINDUSTRIAL DEVELOPMENTINDUSTRIAL REVOLUTIONINDUSTRIALIZATIONINFANTINFANT MORTALITYINFANT MORTALITY RATEINFANT MORTALITY RATESINSURANCEINTEREST RATESINTERNAL MIGRATIONINTERNATIONAL TRADEINVENTORYLABOR FORCELABOR MARKETLABOR MARKETSLABOR SUPPLYLAND MARKETSLAND PRICESLAND TAXESLAND USELARGE CITIESLARGE NUMBERS OF PEOPLELAWSLEGAL FRAMEWORKLEGAL STATUSLEGISLATIONLICENSESLIMITED RESOURCESLOCAL AUTHORITIESLOCAL COUNCILSLOCAL GOVERNMENTLOCAL GOVERNMENT OFFICIALSLOCAL GOVERNMENTSLOCAL PUBLIC FINANCELOW-INCOME COUNTRIESMACROECONOMIC STABILITYMASS IMMIGRATIONMEGACITIESMODERNIZATIONMORTALITYMORTGAGE LENDINGMUNICIPAL FINANCEMUNICIPALITIESNATIONAL BOUNDARIESNATIONAL GOVERNMENTSNATIONAL RESEARCH COUNCILNUMBER OF WORKERSPER CAPITA INCOMEPOLICEPOLICY DECISIONSPOLICY MAKERSPOLICY RESEARCHPOLICY RESPONSEPOLLUTIONPOOR HOUSEHOLDSPOOR PEOPLEPOPULATION GROWTH RATESPOPULATION INCREMENTSPOPULATION MOVEMENTSPOPULATION SHIFTPOPULATION SHIFTSPOVERTY REDUCTIONPRACTITIONERSPRIMATE CITIESPROPERTY TAXESPUBLICPUBLIC FINANCEPUBLIC HOUSINGPUBLIC POLICYPUBLIC RESOURCESPUBLIC SERVICESRATE OF GROWTHRATES OF GROWTHRATES OF URBANIZATIONREAL ESTATE MARKETSREGIONAL INEQUALITIESRENTAL VALUE OF PROPERTYRICHER COUNTRIESRURAL AREASRURAL DEVELOPMENTRURAL POPULATIONRURAL POPULATIONSRURAL POVERTYRURAL­URBAN MIGRATIONSANITATIONSCHOOL ATTENDANCESECONDARY CITIESSECURITY OF TENURESERVICE SECTORSSERVICED LANDSEWAGESEWAGE TREATMENTSEWER SYSTEMSSEWERAGESEWERAGE SYSTEMSSLUMSSOCIAL INFRASTRUCTURESPATIAL DISTRIBUTIONSPONSORSSTATE UNIVERSITYSUBSIDIARYSUSTAINABLE DEVELOPMENTTAX RATESTAXATIONTECHNICAL CAPACITYTOLERANCETOWNSTRANSACTION COSTSTRANSITION ECONOMIESTRANSPORTTRANSPORTATIONUNEMPLOYMENTUNFPAUNITED NATIONS POPULATION FUNDURBANURBAN AGGLOMERATIONURBAN AGGLOMERATION ECONOMIESURBAN AGGLOMERATIONSURBAN AREASURBAN BIASURBAN DEVELOPMENTURBAN ECONOMICSURBAN ECONOMIESURBAN EMPLOYMENTURBAN ENVIRONMENTURBAN INFRASTRUCTUREURBAN LABORURBAN LANDURBAN LAND USEURBAN MIGRATIONURBAN POLICYURBAN POORURBAN POPULATIONURBAN POPULATION GROWTHURBAN POPULATION GROWTH RATESURBAN POPULATIONSURBAN POVERTYURBAN PROJECTSURBAN SECTORURBAN SECTORSURBAN TRANSITIONURBAN WORKERSURBANIZATIONURBANIZATION PROCESSWAGESWARSWASTE WATERWATER SUPPLYWATER TREATMENTWorld Bank10.1596/978-0-8213-7573-0