Economic growth in most countries is driven by a few urban centers
that have a high concentration of economic activity. , generate 63% of total GDP, and were responsible for 64% of GDP growth between 2000 and 2013 (EuroStat
). These cities are national and regional growth engines. This is of particular importance for lagging region policies, as it indicates that
This importance of cities for regional and national development now serves as a foundation for the dialogue between the World Bank and the European Commission, with respect to the design of the European Regional Development Fund
(ERDF) for the 2014-2020 Programming Period. The ERDF is the world’s largest investment program targeting sub-national public infrastructure investments.
In this video, World Bank Senior Director Ede Ijjasz-Vasquez and Marcel Ionescu-Heroiu, Senior Urban Development Specialist from Romania Country Office team, discuss the importance of cities in regional and national growth and development, and the role the Bank is playing in the design of the world’s largest sub-national investment fund.