LAHORE - The world development report 2009 on "reshaping economic geography" by the World Bank has predicted that the economic growth would be unbalanced, but development still could be inclusive. As economies grow from low to high income, production becomes more concentrated spatially. Some places, cities, coastal areas, and connected countries are favoured by producers. As countries develop, the most successful ones also institute policies that make living standards of people more uniform across space. "The way to get both the immediate benefits of the concentration of production and the long-term benefits of a convergence in living standards is economic integration." Although the problems of economic integration defy simple solutions, the guiding principle does not have to be complex. The policy mix should be calibrated to match the difficulty of the development challenge, determined by the economic geography of places. Today, policy discussions about geographic disparities in development often start and end with a consideration of spatially targeted interventions. The report reframes these debates to include all instruments for economic integration-institutions, infrastructure, and incentives. In places where integration is hardest, the policy response should be commensurately comprehensive: institutions that unite, infrastructure that connects, and interventions that target. It further revealed that "Place is the most important correlate of a person's welfare. In the next few decades, a person born in the United States will earn a hundred times more than a Zambian, and live three decades longer. Behind these national averages are numbers even more unsettling. Unless things change radically, a child born in a village far from Zambia's capital, Lusaka, will live less than half as long as a child born in New York City-and during that short life, will earn just $0.01 for every $2 the New Yorker earns. The New Yorker will enjoy a lifetime income of about $4.5 million, the rural Zambian less than $10,000. A Bolivian man with nine years of schooling earns an average of about $460 per month, in dollars that reflect purchasing power at US prices. But the same person would earn about three times as much in the United States. A Nigerian with nine years of education would earn eight times as much in the United States than in Nigeria. This "place premium" is large throughout the developing world. The best predictor of income in the world today is not what or whom you know, but where you work. These disparities in incomes and living standards are the outcome of a striking attribute of economic development-its unevenness across space. Somewhat unfairly, prosperity does not come to every place at the same time. This is true at all geographic scales, from local to national to global. Cities quickly pull ahead of the countryside. Living standards improve in some provinces while others lag. And some countries grow to riches while others remain poor. If economic density were charted on a map of the world, the topography at any resolution would be bumpy not smooth. Growing cities, ever more mobile people, and increasingly specialised products are integral to development. These changes have been most noticeable in North America, Western Europe, and Northeast Asia. But countries in East and South Asia and Eastern Europe are now experiencing changes that are similar in their scope and speed. World Development Report 2009: Reshaping Economic Geography concludes that such transformations will remain essential for economic success in other parts of the developing world and should be encouraged. These transformations bring prosperity, but they do not happen without risk and sacrifice. Look at three of the world's most prosperous places: The first is Tokyo, the largest city in the world with 35 million people, a quarter of Japan's population, packed into less than 4 percent of its land. The second is the United States, the largest economy in the world and perhaps also the most mobile, where about 35 million people change residences each year. The third is Western Europe, the most connected continent in the world today, where countries trade about 35 percent of their gross domestic product (GDP), more than half among neighbours. Visitors to Tokyo can see people being crushed into trains by professional train-packers. Millions of people willingly subject themselves to the unpleasantness of such a crush. Tokyo generates a big part of Japan's wealth-to get a share of it, people have to live close by. The most striking feature of this map is density-the concentration of wealth in Tokyo and Osaka. In the United States, each year in the days before the Thanksgiving holiday, about 35 million people try to get back to their families and friends. It is the start of winter in some parts of the country, so flights often are cancelled. But Americans put up with the pain of leaving friends and family, because economic activity is concentrated in a few parts of the country. To get a part of this wealth, you have to get closer to it. That is why 8 million Americans change states every year, migrating to reduce their distance to economic opportunity. The most striking feature of this map is distance. Across the Atlantic, in Western Europe, another massive movement takes place every day-not of people but of products. One example is Airbus, which makes parts of planes and assembles them in France, Germany, Spain, and the United Kingdom as well as in other countries. Huge sections of aircraft are loaded onto ships and planes, as places specialise in making different parts and producing them in scale. Countries in a region that was divided not so long ago now trade with former enemies to become an ever-more-integrated European Union (EU). As this integration has increased, economic divisions have decreased, making specialisation and scale possible. This Report in detail has discussed the spatial transformations that also must happen for countries to develop. Higher densities, shorter distances, and lower divisions will remain essential for economic success in the foreseeable future. They should be encouraged. With them will come unbalanced growth. When accompanied by policies for integration calibrated to the economic geography of nations, these changes also will bring inclusive development - sooner not much later. The World Bank President Robert B Zoellick wrote foreword of the "world development report 2009" stating that "Production concentrates in big cities, leading provinces, and wealthy nations. Half the world's production fits onto 1.5 percent of its land. Cairo produces more than half of Egypt's GDP, using just 0.5 percent of its area. Brazil's three south-central states comprise 15 percent of its land, but more than half its production. And North America, the European Union, and Japan-with fewer than a billion people-account for three-quarters of the world's wealth. But economic concentration leaves out some populations. In Brazil, China, and India, for example, lagging states have poverty rates more than twice those in dynamic states. More than two-thirds of the developing world's poor live in villages. A billion people, living in the poorest and most isolated nations, mostly in Sub-Saharan Africa and South and Central Asia, survive on less than 2 percent of the world's wealth. These geographically disadvantaged people cope every day with the reality that development does not bring economic prosperity everywhere at once; markets favour some places over others. But dispersing production more broadly does not necessarily foster prosperity. Economically successful nations both facilitate the concentration of production and institute policies that make people's living standards-in terms of nutrition, education, health, and sanitation-more uniform across space. Getting the benefits of both economic concentration and social convergence requires policy actions aimed at economic integration. Integration should begin with institutions that ensure access to basic services such as primary education, primary health care, adequate sanitation, and clean drinking water for everyone. As integration becomes more difficult, adaptive policies should include roads, railways, airports, harbours, and communication systems that facilitate the movement of goods, services, people, and ideas locally, nationally, and internationally. Reshaping Economic Geography has stimulated a much-needed discussion on the desirability of "balanced growth," which has proved elusive. And by informing some important policy debates, it will point the way toward more inclusive and sustainable development.