Spatial analysis of public investment flows in urban Argentina : an approach to evaluating urban poverty and inequality

SPATIAL ANALYSIS OF PUBLIC INVESTMENT FLOWS IN URBAN ARGENTINA: AN APPROACH TO EVALUATING URBAN POVERTY AND INEQUALITY Anna Wellenstein Urban Cluster Finance, Private Sector and Infrastructure Latin America and Caribbean Region September 30, 1999  INTRODUCTION 1. Recent investigations into poverty in Argentina show that certain locations within urban areas concentrate poverty, as measured by unsatisfied basic needs.1 These same areas concentrate low levels of publicly provided infrastructure, possibly indicating public spending patterns which reinforce poverty. The results raise concerns about the effectiveness of local government action in using public infrastructure investments as a tool for poverty reduction. 2. This document will review the methodologies applied in Argentina in order to assess their possible application in other World Bank operations in the region. The document briefly presents major characteristics of urban areas in Argentina followed by an introduction to various poverty studies underway. The methodologies employed are then presented, as well as recommendations for future applications. Finally, the importance of spatial analysis of poverty and infrastructure investments, and suggestions for further research are discussed. BACKGROUND 3. Urban Argentina. Argentina is urbanized both in terms of population and economy. Approximately 89% of the population live in urban areas, with over 39% living in urban agglomerations of over one million.2 Metropolitan Buenos Aires concentrates over one-third of the total population of Argentina (population 10.700 million).3 The Metropolitan Area is composed of the Federal District with a population of nearly three million, plus the 19 surrounding municipalities (see Map 1).4 The Argentine economy is also highly urbanized. In 1996, 25% of GDP was generated in the City of Buenos Aires (Federal District) alone.5 4. Administrative Structure. Within the three tier structure of the Argentine government (federal, provincial and municipal), municipalities are dependant on provincial governments. The one exception is the Municipality of Buenos Aires which governs the federal district and has the rank of a provincial government. There is no metropolitan planning or management authority. The remaining 19 cities in the 1Unsatisfied Basic Needs is measured as the percentage of households with at least one of the following conditions: i) households in precarious housing; ii) home lacking sanitation; iii) homes with more than three people to a room; iv) household includes at least four members and head of household with low level of education. 2The World Bank, World Development Indicators, 1999, World Bank web page, Table 3.10 Urbanization. 3Equipo T