Policy Responses to the Spatial Concentration of the Poorest in Lagging Regions

The spatial concentration of the poorest in regions within countries is a persistent and increasing feature of income inequality in many countries. High and rising spatial inequalities pose a significant development challenge. What types of policies effectively address these inequalities? Should we invest more in the places where the poor concentrate, or in the places that create jobs? When investing in lagging regions, what types of investment should be made? What are the factors that determine what the appropriate strategy should be?

Ravi Kanbur is the T.H. Lee Professor of World Affairs, International Professor of Applied Economics and Management, and Professor of Economics, Cornell University. Somik Lall is Senior Economist in the Spatial and Local Development Unit at the World Bank. Maximo Torero is Director of the Markets, Trade and Institutions Division at IFPRI. Xiaobo Zhang is Senior Research Fellow in the Development Strategy and Governance Division at IFPRI.