Columbia International Affairs Online: Working Papers

CIAO DATE: 04/2010

The City in the Global Crisis: Understanding Impacts and Strengthening the Performance of Stimulus Packages

hael Cohen

November 2009

The New School Graduate Program in International Affairs

Abstract

Though countries generate more than half their GDP in urban-­‐based economic activities, the G-­‐ 20 discussions in London and Pittsburgh devoted no recorded attention to urban infrastructure. Policy makers and designers of stimulus packages ignored two fundamental aspects of this crisis: Where the greatest impact of economic contraction are and where demand can be stimulated to generate the largest possible multipliers. This paper argues that while industrialized countries take urban and spatial dimensions of their economies for granted, this perspective is counterproductive for Latin American countries that are the most urbanized among developing countries.