Abstract

Based on the spatially adapted Murphy, Shleifer, and Vishny (MSV) model, this paper reviews major concepts of the World Development Report 2009-density, distance and division. It is argued that the concepts of poverty trap, and partial and complete industrialization in the model capture the stages of incipient (density), intermediate (distance), and advanced (division) urbanization, described in the report. In addition, the report explains the concepts of Critical Minimum Effort and the Critical Minimum Retreat through spatially blind, connective, and targeted policies, which are all appropriate policies for each stage of urbanization. Relevant Korean examples are provided.