Roads are the arteries through which the economy pulses. By linking producers to markets, workers to jobs, students to school, and the sick to hospitals, roads are vital to any development agenda. Since 2002, the World Bank has constructed or rehabilitated more than 260,000 km of roads. It lends more for roads than for education, health, and social services combined. However, while roads bring economic and social benefits, they can also come with social costs such as pollution or deforestation. The Amazon rainforest is crisscrossed by almost 100,000 km of roads—enough to circle the Earth two and a half times. And the transport sector accounts for about 23 percent of global energy-related carbon dioxide emissions and a significant share of local particle pollution. Such tradeoffs need to be weighed when planning any intervention.
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How much are the government buildings, lands and other publicly-owned real estate of your country worth? According to recent publications, a lot. A 2013 IMF study estimated that non-financial assets are worth an average of 67 percent of the GDP of a selection of 32 countries.
More recently, a book by Dag Detter and Stefan Fölster underscored the incredible potential of improving public wealth management. According to their calculations, a one percent increase in returns to public assets worldwide (including real estate) would generate gains equal to roughly one percent of global GDP! In the United States, a one percent increase in yields from federal assets would be equivalent to the revenue raised from a four percent tax increase. But And what can they do to make better use of what they have?
Seeking to reap the fruits of smarter public real estate management, representatives from twenty countries from around the world met in Mexico last September. Participants discussed how to turn the management of public real estate assets into a tool for good governance, including strategies to optimize the use of government property and generate savings in maintenance. The conference was organized by The Workplace Network (TWN), an international public real estate management network, with participation of the World Bank and the Inter-American Development Bank.
In this video, Marisela Montoliu Muñoz, World Bank Director for Urban Development and Disaster Risk Management, provides a sweeping overview of the Bank’s Urbanization Reviews, and explains why a better understanding of the urbanization process is critical to helping countries grow sustainably and maximize their economic potential.
Click here to view a list of Urbanization Reviews that have been completed so far.