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  • 1
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (52 pages)
    Parallel Title: Erscheint auch als Li, Yue Private Cities: Implications for Urban Policy in Developing Countries
    Keywords: Common Property Resource Development ; Communities and Human Settlements ; Cost Of Land ; Law and Economics ; Legal Products ; Legal Reform ; Local Government Capacity ; Local Public Good ; National Urban Development Policies and Strategies ; Policy Making ; Political Economy Approach ; Private Investor ; Private Sector Development ; Private Sector Economics ; Regional Urban Development ; Social Policy ; Technology ; University Press ; Urban Development ; Urban Economic Development ; Urban Economics ; Urban Land ; Urban Land Development
    Abstract: Institutional weaknesses limit the capacity of local governments to support efficient urbanization in developing countries. They also lead to the emergence of large developers with the clout to build entire cities. This paper analyzes the urbanization process when local governments are weak and large developers are powerful. Results from a non-cooperative game setting with minimal assumptions show that multiple equilibria can emerge depending on key institutional parameters of the model and the nature of the game, but all of them are inefficient. In this simple setting, increasing the capacity of the local government may not lead to better outcomes, because it may crowd out urban land development by the more effective private investor. Subsidizing the large investor can ensure efficiency, but it makes the rest of society worse off. Selling the rights to the city can be Pareto efficient, but only provided that the price at which the rights are sold are sufficiently high. However, more analytical and empirical work is needed before these analyses can be deemed relevant in practice. Competition among jurisdictions, time consistency challenges, and the social implications of private cities deserve special attention
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  • 2
    Language: English
    Pages: 1 Online-Ressource (274 pages)
    Series Statement: Urban Development
    Parallel Title: Erscheint auch als
    Keywords: Charter Cities ; Competitive Cities ; Infrastructure ; Local Development ; New Cities ; Private Cities ; Urban Economics ; Urban Planning
    Abstract: Institutional constraints and weak capacity often hamper the ability of local governments in developing countries to steer urbanization. As a result, there are not enough cities to accommodate an unabated rural-urban migration and many of those that exist are messy, sprawling, and disconnected. The flipside is the emergence of entire cities--more than gated communities or industrial parks--led in whole or in part by private actors. To date, little systematic research has been conducted on the conditions that are necessary for such unusual entities to emerge, on the roles played by private actors, or on the consequences for efficiency and equity. 'Private Cities: Outstanding Examples from Developing Countries and Their Implications for Urban Policy' aims to fill this gap. Using an analytical framework that draws on urban economics and political science, it includes inventories of private cities in the Arab Republic of Egypt, India, Indonesia, and Pakistan and provides structured reviews of 14 outstanding examples across all developing regions. Nongovernment actors turn out to be diverse--they include not only major companies and large developers but also business associations, civil society organizations, and even foreign countries. The way local governments interact with these nongovernment actors varies as well, from deliberate neglect to joint ventures. Private actors take on some--but not all--local government functions, while at times embracing unconventional roles. And while private cities tend to be economically successful, they can lead to environmental degradation, social segregation, and even institutional secession. Increasing the capacity of local governments in developing countries will take time.Along the way, inefficient spatial development patterns may be locked inches There is a case for selectively tapping into the comparative advantage of significant private actors while actively using policy tools to avoid the potential shortcomings. In the spirit of a publicprivate partnership for urbanization, land value capture would be at the center of this approach
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