In coming decades, urban populations will grow fastest in places where government capacity is most limited. If governments set the right priorities, these limits need not preclude successful urban economic development. The history of New York City shows that a government with limited capacity can implement measures that cost little, have a high social rate of return, increase its future tax base, and encourage the development of norms that support the rule of law. The Commissioner’s Plan of 1811 defined and protected a network of public space in the city’s expansion area that could then be used to encourage mobility, provide utilities, and directly enhance the quality of urban life. City governments that focus first on this foundation and then follow with laws and a system of enforcement that protect public health and limit violence can create urban environments in which private actions can drive successful economic development.

This talk was part of "Cities and Development: Urban Determinants of Success" — the NYU Development Research Institute's 2014 Conference, hosted jointly with the Marron Institute of Urban Management. The conference touched on the role of cities in the development process.

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