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21. Latin American Urban Development into the 21st Century

Author:
Ravi Kanbur, Dennis Rodgers, and Jo Beall
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper argues for a more systemic engagement with Latin American cities, contending it is necessary to reconsider their unity in order to nuance the 'fractured cities' perspective that has widely come to epitomise the contemporary urban moment in the region. It begins by offering an overview of regional urban development trends, before exploring how the underlying imaginary of the city has critically shifted over the past half century. Focusing in particular on the way that slums and shantytowns have been conceived, it traces how the predominant conception of the Latin American city moved from a notion of unity to a perception of fragmentation, highlighting how this had critically negative ramifications for urban development agendas, and concludes with a call for a renewed vision of Latin American urban life.
Topic:
Development, Poverty, and Urbanization
Political Geography:
Latin America

22. The Impact of Foreign Direct Investment on Developing Countries' Terms of Trade

Author:
Konstantin M. Wacker
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper first shows that important economic arguments in favor of the Prebisch- Singer hypothesis of falling terms of trade of developing countries have implicitly relied on the role of multinational corporations and foreign direct investment. As of yet, the relationship between the latter and terms of trade has not been empirically investigated. In order to start closing this gap in research, data on 111 developing countries between 1980 and 2008 is analyzed using panel data methods. The empirical results suggest that there is no reason to believe multinationals' activities were responsible for a possible decrease of the developing countries' net barter terms of trade. On the contrary, foreign direct investment seems to play a positive role for developing countries' terms of trade.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment

23. Are Electoral Coalitions Harmful for Democratic Consolidation in Africa?

Author:
Danielle Resnick
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Electoral coalitions are becoming increasingly popular among opposition parties in Africa because they offer many advantages with respect to reducing party fragmentation and increasing incumbent turnovers. At the same time, however, they are often comprised of parties that are defined predominantly by their leaders' personalities and exhibit little differentiation in terms of their policy orientation. Based on a dataset spanning all opposition coalitions since 2000 in Africa's electoral democracies, this paper demonstrates not only that coalitions rarely defeat incumbents but also that they are only competitive when major opposition parties are involved. More significantly, the paper highlights that in many countries, a sizeable share of total electoral volatility is due to fluctuations in voting for opposition parties that have belonged to coalitions. The paper argues that such volatility reflects the inability of coalition members to build loyal constituency bases over time, which is critical for party development and broader consolidation.
Topic:
Democratization, Development, and Politics
Political Geography:
Africa

24. Determinants of Industrial Embeddedness: Evidence from African Manufacturing Firms

Author:
Abdelrasaq Na-Allah
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Recent developments in policy initiatives as well as some current practical events have combined to put the spotlight on the issue of industrial embeddedness in sub-Saharan Africa. Though extant research documents some stylized facts, as determinants of its manifestations, their relevance to realities in the sub-continent, have until now been overlooked. Yet, it is difficult to ignore the fact that its constituent economies possess some peculiar attributes with potentially significant implications for embeddedness behaviour. Using data for the country of Lesotho, a probit model is estimated to ascertain the veracity of some of the widely acclaimed explanatory factors. We find, as we argue, that among all, the issue of supply potentials appears the most important.
Topic:
Development and Industrial Policy
Political Geography:
Africa

25. Cocaine Cities: Exploring the Relationship between Urban Processes and the Drug Trade in South America

Author:
Ignacio A. Navarro
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The relationship between the cocaine trade and urban land markets in South America has been overlooked by the mainstream economics and urban studies literature. This paper examines two avenues through which the cocaine trade can have a large impact on urban development in producer countries: (i) through an employment multiplier effect similar to that of other legal exports, and (ii) through money laundering using urban real estate. We test our hypotheses using the Bolivian case and find that urban growth patterns are closely related to fluctuations in cocaine production. Further, even though our estimates suggest that the cocaine trade affects urban growth through the two avenues presented in the paper, we find that formal urban employment generated by the cocaine trade has a modest effect on urban growth and most of the effect seems to be explained by money laundering using real estate and other paths.
Topic:
Corruption, Crime, Narcotics Trafficking, and Urbanization
Political Geography:
South America and Latin America

26. Growth and Recovery in a Time of Default: Lessons from the Role of the Urban Sector in Argentina

Author:
Michael Cohen
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
International narratives on Argentina's recovery from the crisis of 2001-02 tend to emphasize the role of rising commodity prices and growing demand from China. Argentina is said to have been 'lucky', saved by global demand for its agricultural exports. The international narrative has also been used by local agricultural exporters to justify their objections against higher export taxes during periods of high commodity prices. These narratives are not correct. Data on the country's recovery show that it was not led by agricultural exports but was fuelled by urban demand and production. When the Convertibility period ended and the peso was devalued in 2002, price increases for imports stimulated the production of domestic goods and services for consumers. This production in turn generated multiplier effects which supported small and medium-sized firms and helped to create many new jobs. This later produced a revival of the construction and then the manufacturing sectors as well.
Topic:
Agriculture, Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:
China, Argentina, and Latin America

27. Socio-Spatial Implications of Street Market Regulation Policy: The Case of Ferias Libres in Santiago de Chile

Author:
Lissette Aliaga Linares
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Unlike in most Latin American cities, street vendors organized in farmers' markets popularly known as ferias libres in Santiago de Chile, gained legal recognition early in the twentieth century. Since then, comunas, or local municipalities, have provided vendors with individual licenses that stipulate the place and time of operations, and have defined a clear set of rules regarding customer service. However, this early legal recognition has not necessarily overcome the embedded conflict over the economic use of public space. As supermarkets become spatially positioned along the main streets within easy access of the city's transportation system, feriantes, or licensed street vendors, are being relocated in less profitable areas. Moreover, coleros, or unlicensed vendors, are still flourishing despite efforts to restrict their numbers.
Topic:
Economics and Markets
Political Geography:
Latin America and Chile

28. A New Way of Monitoring the Quality of Urban Life

Author:
Eduardo Lora and Andrew Powell
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
A growing number of cities around the world have established systems of monitoring the quality of urban life. Many of those systems combine objective and subjective information and attempt to cover a wide variety of topics. This paper introduces a simple method that takes advantage of both types of information and provides criteria to identify and rank the issues of potential importance for urban dwellers. The method combines the so-called 'hedonic price' and 'life satisfaction' approaches to value public goods. Pilot case results for six Latin American cities are summarized and policy applications are discussed.
Topic:
Economics and Urbanization
Political Geography:
Latin America

29. Significance of Public Space in the Fragmented City: Designing Strategies for Urban Opportunities in Informal Settlements of Buenos Aires City

Author:
Flavio Janches
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This article surveys the problem of urban marginalization by one of its more critical expressions in the contemporary city: the slums. The aim is to define an urban design strategy for the integration of those settlements as part of the city context, which enables to find solutions for the conflict improving these communities quality of life.
Topic:
Poverty, Sociology, and Urbanization

30. Exchange Rate Regimes and Trade: Is Africa Different?

Author:
Mahvash Saeed Qureshi and Charalambos G. Tsangarides
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper revisits the link between exchange rate regimes and trade in the context of Africa's exchange rate arrangements. Applying an augmented gravity model that includes measures of currency unions and pegged regimes, the paper compares Africa's experience with that of the world. Our results suggest that both currency unions and direct pegs promote bilateral trade in Africa vis-à-vis more flexible exchange rate regimes,and that their effect is almost double for the region than that for an average country in the world sample. Further, we find evidence that the effect of conventional pegs is at least as large as that of currency unions in Africa, and that the benefits of fixed exchange rate regimes stem through channels in addition to reduced exchange rate volatility.
Topic:
Economics, International Trade and Finance, Bilateral Relations, and Monetary Policy
Political Geography:
Africa