Policies for efficient and equitable growth of cities in developing countries

Abstract

The unprecedented rate of urban growth in developing nations has created massive new tasks for national and local policy makers. This paper, which was prepared as a background paper for World Development Report, 1979, attempts to delineate the major policy issues which arise in the efforts to adapt to the growth of cities in developing countries, and it discusses policies designed to increase the efficiency and equity of urban development. Particular areas covered by this paper include urban employment, income redistribution through the fiscal system, transportation, housing, and social services (i.e., education, health, and related services). The policy instruments which are considered include public investment, pricing, taxation, and regulation. Throughout, it is emphasized that many of these policy instruments can be used in ways that improve both the efficiency and the equity of the development of cities, without a conflict between these goals. The paper does not attempt to address in a comprehensive manner the issues of overall national spatial policy, nor those relating to the administration and finances of urban government, since these are extensively treated in other forthcoming World Bank publications.

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