Cities emerge from the spatial concentration of people and economic activities. But spatial concentration is not enough; the economic viability of cities depends on people, ideas, and goods to move rapidly across the urban area. This constant movement within dense cities creates wealth but also various degrees of unpleasantness and misery that economists call negative externalities, such as congestion, pollution, and environmental degradation.

This paper focuses on three interrelated questions on urbanization and the geography of development. First, although we herald cities with their industrial bases as "engines of growth," does industrialization in fact drive urbanization? While such relationships appear in the data, the process is not straightforward. Among developing countries, changes in income or industrialization correlate only weakly with changes in urbanization. This suggests that policy and institutional factors may also influence the urbanization process.

This Fifth Edition of the Uganda Economic Update presents evidence that if the urbanization process is well managed, it has the potential to stimulate economic growth and to provide productive jobs for a greater proportion of Uganda’s young and rapidly expanding population. In many countries across the world, the growth of cities has stimulated the establishment and expansion of productive businesses by reducing the distance between suppliers and customers. The growth of cities has also facilitated provision of social services and infrastructure through economies of scale.

As part of a national experiment in 2008, Chengdu prefecture implemented ambitious property rights reforms, including complete registration of all land together with measures to ease transferability and eliminate migration restrictions. A triple difference approach using the Statistics Bureau’s regular household panel suggests that the reforms increased consumption and income, especially for less wealthy and less educated households, with estimated benefits well above the cost of implementation.

Microfinance institutions (MFIs) in Ethiopia are offering farmers a new financial product: the SLLC-linked individual loan product

With Second Level Land Certification (SLLC), MFIs have the security of knowing the ownership and exact landholding size of farmers. This has allowed the development of an innovative individual lending product that uses the produce of the land as a form of guarantee.

How LIFT promotes formalisation
 

The vision of Ethiopia (GTP-II) is to become a lower middle-income country by 2025

The potential contribution of land based financing to the development of sustainable and equitable cities and properly serviced communities is often underestimated. Land based financing is a collective name given to a range of instruments by which local governments could expand their revenue base and generate funds that will help them to deliver services and infrastructure development and achieve their maintenance goals.

Given its vast land resources and favorable water supply, the Democratic Republic of Congo’s (DRC’s) natural agricultural potential is immense. However, the economic potential of the sector is handicapped by one of the most dilapidated transport systems in the developing world (World Bank 2006). Road investments are therefore a high priority in the government’s investment plans and those of its major donors.

Several studies have shown that the land registration and certification reform in Ethiopia has been implemented at an impressive speed, at a low-cost, and with significant impacts on investment, land productivity, and land rental market activity. This study provides new evidence on land productivity changes for rented land and on the welfare effects of the reform. The study draws on a unique household panel, covering the period up to eight years after the implementation of the reform.

The absence of a clearly defined land use policy in Kenya after years of independence has resulted in a haphazard approach to managing the different land use practices and policy responses. Land use continues to be addressed through many uncoordinated legal and policy frameworks that have done little to unravel the many issues that affect land use management. The Constitution of Kenya 2010, Kenya Vision 2030 and the Sessional Paper No. 3 of 2009 on National Land Policy all call for a clear framework for effectively addressing the challenges related to land use.

The acquisition of land by foreigners in developing countries has emerged as a key mechanism for foreign direct investment (FDI). FDI is defined by the Organization for Economic Cooperation and Development (OECD) as the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy.