THE world is not flat, contrary to recent theory, and geography still counts for much in the global economy.
A new report from the World Bank refutes the popular notion that globalisation and technology have flattened out differences between nations.
It maintains that economic success will remain unbalanced in a country because of inherent geographical barriers, so trying to spread growth within borders will be counter-productive.
Citing the experience of developed countries, it stated: 'A generation of economic research confirms this: there is no good reason to expect economic growth to spread smoothly across space.'
Instead, developing mega cities is still the best way to promote growth and galvanise a population's productivity and governments should make it easier for people to move to urban centres.
'Big cities, mobile people and connected countries - these are necessary for progress,' said the report's director, Dr Indermit Gill, who spoke at the Institute of Southeast Asian Studies yesterday.
'People fear bigger cities, fear the need to move to places that are doing well, and fear greater openness to trade.
'But we say these are things that are absolutely necessary for economic development. If countries want to grow, they must also think about how to increase economic density, shorten economic distance and lower economic divisions.'
The aim is also to include all groups in society, so no one is left out.
For the full story, read Saturday's edition of The Straits Times
