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Lessons From World Development Report : Economic growth will be unbalanced, but development can still be inclusive-that was

the message of World development report, As economies grow from low to high income, production becomes more concentrated spatially. Some places, cities, coastal areas, and connected countries-are favored by producers. As countries develop, the most successful ones also institute policies that make living standards of people more uniform across space. The principle for a successful spatial transformation, getting the immediate benefits of concentration of production, and the long term benefits of a convergence in living standards, is economic integration. Understand the spatial transformations necessary for progress Higher Densities, shorter Distances, and fewer Divisions

Unleash the market forces that promote economic concentration and social convergence Agglomeration, Migration, and Specialization

Calibrate policies to the economic geography of places Institutions which unitehelping labor and capital move to opportunity Infrastructure to connectbut do not expect production to spread out Interventions that targetbut only where necessary

What to expect: unbalanced growth, and inclusive development

Implications for India : For years, Mumbais planners went the other way, tightly regulating the height of buildings to control densities and, instead of relaxing these regulations to accommodate growth, further reducing allowable densities. Many poor people in Mumbai cannot afford public transport, and end up walking or riding a bicycle to work. Better infrastructure will connect them to prosperity. But while national programs such as the Jawaharlal Nehru National Urban Renewal Mission will improve urban infrastructure and public services in the countrys largest cities and state capitals, they will have to be accompanied by institutional reforms to make land markets work and provide basic services everywhere, especially in slums. But should such slums be tolerated, improved, or uprooted? The answer, from centuries of experience is that success comes with sequenced measures: first institute land markets and provide essential services such as security, schools and sanitation, and improve transport. Then, with well-timed and targeted interventions, slums can be fully integrated into cities. The issue of urbanization how to make Indias towns, cities, and metropolises work for a more inclusive development is one of the most important

policy issues confronting the nation today. What are the core elements of an efficient and inclusive urbanization strategy? (a) A large part of urbanization is generally over by the time a country reaches middle-income, viz., income levels of about $3,700 per capita; (b) the relationship between countries income levels and urbanization rates is not different for early and later developers; and (c) urban settlement patterns are similar between countries at different stages of development, and tend to remain stable over time. For the strategy to be rigorous, it must be grounded in analysis that identifies the role of urban settlements: (a) Towns enable firms and farms to exploit economies of scale; (b) cities allow firms in similar industries to localize and become efficient; and (c) metropolises encourage learning and innovation that comes from urban diversity. First, institutions. Spatially blind institutions such as functional land markets and basic social services schools, security, and sanitation in rural and urban areas are a large part of an economic integration strategy, and the role of central governments is primary. This is still an unfinished agenda in Indias villages, towns and cities. Then, infrastructure as well. In areas that are rapidly urbanizing such as Delhi and its neighboring regions, in addition to the institutional foundation, investments in connective infrastructure to prevent early congestion are now important so that the benefits of rising density are more widely shared. Coordination between central and provincial governments is necessary to deliver these services. Finally, interventions where necessary. Policymaking is hardest for advanced urbanizers such as uppermiddle income Brazil, or Chinas booming coastal area, and the Greater Mumbai region. In such places, requiring in addition to institutions and infrastructure, well-designed and targeted interventions such as slum upgrading programs or formal housing schemes to reduce within-city divisions. The role of local governments becomes pivotal as urbanization reaches an advanced stage. Even when strictly prioritized and sequenced, this seems like a tall order for a developing country. The experience of successful countries shows that it can be done. But the policy debates on urbanization are too often narrowly focused on places left behind by growing cities and urban enclaves. The emphasis then turns to interventions such as rural development programs and slum upgrading schemes. World Development Report 2009 proposes instead to focus on the interactions between lagging and prospering places, which are pulled together by the forces of agglomeration, migration, and specialization. If viewed through the lens of economic geography, Indias teeming urban agglomerations would no longer be seen by concerned citizens as a necessary evil. Migration from rural areas would be seen not as a failure of development policy, but as a sign of the desire of people to prosper. And the social and environmental stresses that come with geographic transformations would no longer considered in isolation from the enormous benefits that come from spatial specialization. And what is the main implication for policy? Spatially targeted interventions should not be seen as the

main instrument for helping people who have been left behind in the rush to cities. Indias central and state governments have far more potent policy instruments for helping people in villages and slums: they can build the common institutions that unify all places, and put in place infrastructure to connect some places to others. Spatially targeted interventions that have been the staple of urbanization and regional development policies in India should be used sparingly and in conjunction with never instead of unifying institutions and connective infrastructure. If history is any guide, better policies do not mean that India will urbanize without slums. But with better institutions and infrastructure half of Mumbais 20 million people would not have to live in slums. Slums are a reflection of good labor markets and bad land markets. How else can one explain that cities like Mumbai can both inspire filmgoers with uplifting success stories and horrify newcomers with stratospheric land prices?

International Coffee Organization (ICO)

The International Coffee Organization (ICO) is the main intergovernmental organization for coffee. It is based in London and was established in 1963 under the auspices of the United Nations when the first International Coffee Agreement (ICA) entered into force in 1962. It has continued to operate under the 7 successive Agreements negotiated since then (the latest one being ICA 2007, which entered into force on 2 February 2011). It has 65 members (33 exporters and 32 importers), representing the 97% of world coffee production and over 80% of world consumption. ICOs mission is to strengthen the global coffee sector and to promote its sustainable expansion in a market-based environment, while its basic aim is to contribute to an increase in the living standards of all coffee sector participants. In this respect, it (a) provides a platform of discussion on the problems, potential and challenges of the sector that facilitates international cooperation and coordination of policies; (b) promotes market transparency through a wide range of relevant statistics; (c) undertakes innovative market development activities to deepen the coffee market; (d) promotes training and information programmes on production, financing and other activities; and (e) implements projects.

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