Resource information
The chapters in this volume underscore
the transformative role of globalization and urbanization,
and show the interplay between these forces. Trade reform
and liberalized foreign investment regimess have contributed
to the spatial reallocation of economic activity toward
cities, especially those cities that can attract and nurture
human capital and strong connections to other markets.
Global factors have, therefore, reinforced agglomeration
economies in shifting economic clout toward cities, and in
so doing they may be exacerbating regional disparities in
incomes. The rise of cities is changing political dynamics
in developing nations. It is forcing a reappraisal of
existing constitutional structures and center-local
relations, as well as the important--and perhaps more
mundane-- arrangements for funding and organizing investment
by subnational entities. At the same time, democratization
is reinforcing the pressures for local autonomy. This
perspective shifts the debate away from whether or not
globalization is undermining the role of the central state
and toward one about the appropriate allocation of
responsibilities and resources to different layers of
government. Strong arguments support the position that
municipalities can, with the appropriate resources and
political structures to ensure their responsiveness to local
needs, make substantial improvements in the well-being of
urban residents. Experience suggests that some state
functions ought to remain with government.
