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Overcoming Left-Behindedness : Moving beyond the Efficiency versus Equity Debate in Territorial Development

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  • Rodríguez-Pose,Andrés
  • Bartalucci,Federico
  • Nancy Lozano Gracia
  • Maria Davalos
Abstract
Territorial development theory and practice have witnessed significant change in recent times. This change has increasingly put the spatial dimension at the center of development policies. Although agglomeration-focused policies derived from urbanization and agglomeration economics were once prominent, their empirical limitations have become increasingly apparent. Greater territorial polarization and pervasive left-behindedness have underscored the need for a more inclusive territorial development approach, prompting increased interest in understanding and addressing regional disparities to ensure more equitable economic growth. This paper synthesizes the growing interest in territorial development, which has driven the adoption of what are increasingly place-based and place-sensitive approaches to development. The paper also emphasizes the need for complementarity between efficiency-driven and equity-focused interventions, while highlighting emerging topics in regional economics research, including the role of institutions, agency, and external megatrends such as the green transition. The paper concludes by advocating a place-sensitive approach that tailors policies to regional challenges, promoting economic potential, diversification, and inclusivity across all regions.

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  • Rodríguez-Pose,Andrés & Bartalucci,Federico & Nancy Lozano Gracia & Maria Davalos, 2024. "Overcoming Left-Behindedness : Moving beyond the Efficiency versus Equity Debate in Territorial Development," Policy Research Working Paper Series 10734, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10734
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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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