世界发展银行-Western-Balkans-and-Croatia-Urbanization-and-Territorial-Review_194页_9mb

Western Balkans and Croatia Urbanization and Territorial Review Summary

Core Content

This report provides an in-depth analysis of urbanization and territorial development in the Western Balkans and Croatia, focusing on the challenges and opportunities for cities and lagging regions. It highlights the need for policies that enhance competitiveness and address spatial disparities to promote shared prosperity and sustainable growth.

Main Findings

• Urbanization Trends:

  • Urban population growth has stalled since the 1990s.
  • Most cities are shrinking, while a few are growing.
  • Urbanization rates in the Western Balkans and Croatia are lower than in other regions.
  • Urban populations and economic activity are more dispersed in the region compared to other countries in Eastern Europe and Central Asia.

• Capital Cities:

  • Capital cities are the economic anchors of the region.
  • They are underperforming in terms of productivity and job creation.
  • Despite their importance, capital cities are not pulling their weight in driving economic growth.
  • There is a need to improve the competitiveness of capital cities through policies that enhance productivity and attract investment.

• Spatial Welfare Disparities:

  • Significant income and consumption gaps exist between regions.
  • Rural-urban income gaps are narrowing but remain substantial.
  • Poverty and inequality levels vary widely across subnational regions.
  • Lagging regions, especially those near borders, face reduced market access and lower economic potential.

• Lagging Regions:

  • These regions are often characterized by low population density and poor economic performance.
  • They have limited access to basic services and face barriers to labor mobility.
  • Policy interventions are needed to support these regions and improve their economic potential and equality of opportunity.

Key Policy Recommendations

3 Cs Framework

• CONCENTRATE: Promote the concentration of population and economic activity in cities to enhance agglomeration economies.
• CONNECT: Improve connectivity and reduce border frictions to increase market access and mobility.
• CAPACITATE: Strengthen institutional capacity and infrastructure to support economic growth and service delivery.

For Capital Cities

• Enhance Productivity: Focus on developing high-value-added service sectors and tradable industries.
• Improve Infrastructure: Invest in better roads, public services, and land administration.
• Support Enterprise Development: Streamline regulations and improve access to finance and efficient courts.
• Leverage City Authority: Expand the capacity and authority of city administrations to drive local development.

For Lagging Regions

• Invest in Human Capital: Improve education and skills training to increase productivity and reduce inequality.
• Support Local Endowments: Leverage place-specific resources to foster economic development.
• Strengthen Institutions: Address institutional deficits and improve coordination between local and national governments.
• Facilitate Mobility: Reduce barriers to internal labor mobility and improve access to opportunities.

Critical Challenges

• Data Limitations: Data availability, quality, and comparability are major constraints in analyzing urbanization and welfare trends.
• Aging Populations: Capital cities and shrinking regions face challenges due to aging demographics and declining younger worker shares.
• Low Productivity: Despite their economic importance, capital cities are not performing efficiently in terms of productivity and job creation.
• Border Frictions: These reduce market access and hinder economic development in lagging regions.

Conclusion

The report emphasizes the importance of cities, particularly capital cities, in driving economic growth and job creation. However, it also highlights the need to address the challenges faced by lagging regions to ensure more equitable development. A combination of policies that concentrate, connect, and capacitate cities and regions is necessary to achieve shared prosperity and sustainable growth in the Western Balkans and Croatia.