Agglomeration economies and productive inclusion in cities systems: key to the implementation of the New Urban Agenda

During Habitat II, urbanization and the role of local authorities were not still identified as an important engine of development. Generally, it was understood that economic growth and job creation depended on macroeconomic aggregates and exogenous conditions. Today the economic urban thinking has been remarking that local governments can be crucial fostering competitiveness in both national and city levels. Agglomeration economies, both specialization and diversification, could be the great lever for local economic growth and even for national growth. Although Latin America is showing successful results in the fight against poverty, income inequality and inequality of opportunities are still remarkable high. Inequality of opportunities remains as one of the most significant challenge for the region. Cities should overcome the conventional framework based on the primacy of efficiency and economic growth, in order to implement broader approaches, which includes multidimensional objectives, equity and sustainable concerns. Focusing on people, productive inclusion and social inclusion should be achieved simultaneously during the urban development process. A suitable implementation of the new urban agenda proposed by UN-Habitat could be directed to enhance cities to achieve a strong pattern of social and productive inclusion. The proposed event aims to discuss the specific role of local governments in the economic performance of cities and how they can incentivize the exploitation of agglomeration economies. Additionally, the event will include the discussion about mechanisms to introduce the notion of a simultaneous pattern of social and productive inclusion in the urban public policy agenda.