Contents -- Overview -- The frontiers of development thinking -- Globalization and localization -- Supranational issues -- Subnational issues -- Translating policies into actions -- Introduction New Directions in Development Thinking -- Building on past development experiences -- The many goals of development -- The role of institutions in development -- The record and outlook for comprehensive development -- A changing world -- Chapter 1 The Changing World -- International trade -- International financial flows -- International migration -- Global environmental challenges -- New political tendencies in developing countries -- Emerging subnational dynamics -- Urban imperatives -- Implications for development policy -- Chapter 2 The World Trading System: The Road Ahead -- How the global trading system benefits developing countries -- WTO mechanisms for promoting and maintaining liberal trade regimes -- Sustaining the momentum for trade reform -- International trade and development policy: the next 25 years -- Chapter 3 Developing Countries and the Global Financial System -- The gathering pace of international financial integration -- Toward a more robust and diversified banking system -- The orderly sequencing of capital account liberalization -- Attracting foreign investment -- Revitalizing international macroeconomic cooperation -- Chapter 4 Protecting the Global Commons -- The link between national and global environmental issues -- Moving from national to international action -- The ozone treaties: a success story -- Climate change -- Biodiversity -- Exploiting the links between global environmental problems -- Chapter 5 Decentralization: Rethinking Government -- What is at stake? -- From centralized to decentralized governance -- Balancing political power between central and local interests.

The structure, functions, and resources of subnational governments -- Making subnational governments accountable -- Policies for the transition -- What lessons for the future? -- Chapter 6 Dynamic Cities as Engines of Growth -- What makes cities grow? -- The national government's role in urbanization -- Local policies for urban economic growth -- Chapter 7 Making Cities Livable -- The unfinished urban agenda -- Learning from the past -- Service provision in developing countries -- Looking ahead -- Chapter 8 Case Studies and Recommendations -- Making the most of trade liberalization: Egypt -- Reforming weak banking systems: Hungary -- Macromanagement under fiscal decentralization: Brazil -- Improving urban living conditions: Karachi -- Cultivating rural-urban synergies: Tanzania -- The shifting development landscape at the dawn of the 21st century -- Bibliographical Note -- Appendix Selected Indicators on Decentralization, Urbanization, and the Environment -- Selected World Development Indicators -- Index -- Boxes -- 1 Lessons from East Asia and Eastern Europe -- 2 Social capital, development, and poverty -- 3 Explaining power project outcomes in Sub-Saharan Africa -- 4 The Comprehensive Development Framework -- 5 A holistic approach to development in past World Development Reports -- 6 Institutions, organizations, and incentives -- 7 Trends in disease and health care -- 8 Sustainable development -- 9 The growing threat of water scarcity -- 1.1 The global macroeconomics of aging -- 1.2 The international Chinese network -- 2.1 Regional trading arrangements and the global trading system: complements or substitutes? -- 2.2 Building technical expertise on trade policy: the Integrated Framework for Trade and Development in the Least-Developed Countries -- 2.3 Child labor: how much? how damaging? and what can be done? -- 3.1 A continuing role for aid.

3.2 What causes financial contagion? -- 3.3 Subnational governments face commitment problems too -- 3.4 Mitigating the commitment problem: the role of the World Bank -- 4.1 Global environmental issues -- 4.2 Preserving the ocean commons: controlling overfishing -- 4.3 The Global Environment Facility -- 4.4 NGOs and efforts to preserve the international environment -- 4.5 Falling costs for renewable energy -- 4.6 Taxes and quotas to reduce emissions -- 4.7 Trade measures in international environmental agreements -- 5.1 Decentralization as the devolution of powers -- 5.2 South Africa and Uganda: unifying a country through decentralization -- 5.3 Bosnia-Herzegovina and Ethiopia: decentralization as a response to ethnic diversity -- 5.4 India: a decentralizing federation? -- 5.5 Decentralization in China -- 5.6 Financing intermediate tiers of government -- 5.7 The cart before the horse: decentralization in Russia -- 6.1 Cities and urban areas: some definitions -- 6.2 Rural-urban linkages -- 6.3 The dispersal of industry in Korea -- 6.4 Africa: urbanization without growth -- 6.5 City development and land markets -- 6.6 Regionalism and local economic development: lessons from Europe -- 6.7 Know thy economy: the importance of local economic information -- 7.1 A spatial mismatch: Jakarta's kampung residents -- 7.2 Haiphong: partnering with consumers -- 7.3 Manila: a positive corporate image as an incentive to reduce pollution -- 7.4 Shenyang: social welfare in a struggling industrial city -- 7.5 Bangalore: citizens' report cards -- 8.1 Five case studies -- 8.2 The Arab Republic of Egypt at a glance -- 8.3 Hungary at a glance -- 8.4 Brazil at a glance -- 8.5 Pakistan at a glance -- 8.6 Tanzania at a glance -- Figures -- 1 Computers are linking the world -- 2 All but a few democracies have decentralized some political power.

3 Trade is growing much faster than national income in developing countries -- 4 Countries are joining the WTO in increasing numbers -- 5 Private capital flows to developing countries have increased dramatically -- 6 There are more countries and more democracies -- 7 Urban population is growing-primarily in developing countries -- 8 The incomes of rich and poor countries continue to diverge -- 9 Investment alone cannot account for variation in growth -- 10 Infant mortality fell in most developing countries from 1980 to 1995, even where income did not increase -- 11 The number of poor people has risen worldwide, and in some regions the proportion of poor has also increased -- 12 Life expectancies have risen greatly in some countries, but others have suffered setbacks -- 1.1 Exports of commercial services have surged in most regions since 1990 -- 1.2 An increasing number of developing countries is committed to trade reform -- 1.3 Nonperforming loans can account for up to 50 percent of all bank loans at the peak of a banking crisis -- 1.4 Resolving bank crises can cost up to 40 percent of GDP -- 1.5 Foreign direct investment was less volatile than commercial bank loans and total portfolio flows, 1992-97 -- 1.6 Temperatures are rising as concentrations of greenhouse gases increase -- 1.7 More countries are becoming democratic -- 1.8 Most urban dwellers reside in developing countries -- 1.9 Asia and Africa are just beginning the urban transition -- 1.10 The largest increase in urban populations during 1980-2020 will occur in Africa and Asia -- 2.1 Foreign trade has increased in most developing countries since 1970 -- 2.2 More of the world's exports are covered by WTO disciplines, especially exports from developing countries -- 2.3 More regional trading arrangements (RTAs) came into force in the 1990s than ever before.

2.4 Many developing countries started liberalizing before the end of the Uruguay Round -- 2.5 Equal players? African representatives at the WTO -- 2.6 The composition of many developing countries' exports was transformed in just over 10 years -- 2.7 New users initiated an increasing number of antidumping suits during 1987-97 -- 2.8 When filing antidumping investigations, industrial and developing countries target each other almost equally -- 2.9 Many countries bound their tariffs on agricultural products in the Uruguay Round at levels well above estimated actual tariffs in 1986-88 -- 2.10 Exports of commercial services increased in every region from 1985 to 1997 -- 3.1 Since 1980 net flows of foreign direct and portfolio investment to developing economies have grown enormously -- 3.2 Firms from developing countries are issuing more international debt than before -- 3.3 A growing pool of institutionally managed funds is invested abroad -- 3.4 A few developing countries received the lion's share of FDI invested outside industrial countries in 1997 -- 3.5 Bank intermediation typically accounts for a larger share of the financial sector in developing countries -- 4.1 Climate change jeopardizes crop yields, especially in developing countries -- 4.2 Atmospheric concentrations of ozone-depleting substances rose, then began to fall -- 4.3 A 1-meter rise in sea level would cut Bangladesh's rice production approximately in half -- 4.4 Energy consumption in developing countries is forecast to outstrip industrial country consumption -- 4.5 High-income countries use energy more intensely than countries in low-income regions -- 5.1 Subnational expenditures are a small share of public expenditures, except in industrial countries and large federations -- 5.2 Local governments never control a large share of public resources.

6.1 Urbanization is closely associated with economic growth.