Spatial policy and metropolitan economic growth in Sao Paulo,Brazil

The Sao Paulo Metropolitan Area is the second largest urban centre in terms of population among the developing countries of the world. The federal and state government authorities responsible for planning urban development in the State of Sao Paulo in Brazil have been actively considering whether to advocate a new policy initiative to decentralise manufacturing industry from the metropolitan area as a further strategy to restrain future growth. This paper discusses the particular situation facing policy-makers in Sao Paulo in the mid-eighties, as well as using the Sao Paulo policy problem to illustrate a number of themes of relevance to all would-be large city restraint strategies in developing nations. The paper draws upon a programme of research undertaken in the World Bank between 1980 and 1982; in particular, on a large industrial survey of companies establishing in new locations during 1977–1979 in the State. The policy recommendations are cautious, given continuing levels of ambiguity in policy objectives and of uncertainty in the pattern of underlying market forces.