ABSTRACT
This chapter addresses two central issues in the political economy of metropolitan development: public policies and governance. It reviews the international and national urban development agendas and the policies, strategies and activities that different tiers of government implement to promote economic development in metropolitan areas, and suggests some guidelines for the design of metropolitan economic strategies. Increasing local, national and international attention has centred on policies and governance in the field of economic development. However, actual policies specific to metropolitan areas remain elusive. In practice, most policies and governance structures are local and uncoordinated and follow the old-style standards of economic strategies based on incentives to attract businesses and create employment. Although Mexico is one of the countries that have recently developed explicit urban agendas, unlike other federalist countries, such as the US, extensive urban and metropolitan reform is needed in light of the recent economic performance of its metropolitan areas. Adequate governance and policies will depend on the country’s institutional and financial frameworks, the design of intergovernmental relations and local circumstances and structures.
