This paper discusses the relationship between corruption and economic development. It questions the view that, under certain conditions, corruption may enhance efficiency and argues that though corruption may benefit powerful individuals it will indubitably lead to greater inefficiency and a waste of resources at a macro-economic level. Following a brief introduction, the author suggests that a possible cause of corruption is the weak productive base, the essential condition for the appearance of shortage which, in turn, spurs corruption. Some possible impacts of corruption are then examined. While no specific policy measure is suggested, a more accountable political system would certainly be a move in the right direction.

Never before has the Bolivian state made such a serious effort to promote peasant participation in local development. In 1994, it promulgated the Law of Popular Participation which institutionalised a Participatory Municipal Planning methodology. While fully recognising its progressive nature, it is not too difficult to discover authoritarian flaws within this methodology. The authors argue that the concept of participation should be viewed as 'negotiation' in order to increase the scope of peasant participation in the planning process. This in turn implies some major methodological changes, but would result in Municipal Development Plans with the flexibility to account for the specific situations of the Bolivian peasantry.

The MOLAND methodology adopts earth observation techniques combined with geoprocessing tools and statistical data to monitor environmental and morphological changes in urban areas. The methodology is an aid to understanding urban development processes as well as a tool for planning. The MOLAND methodology provides detailed territorial information at a regional scale, enabling development agencies accurately to derive specific environmental indicators, and to improve existing urban sustainability indicators. This article describes the kinds of information that can be produced with the MOLAND methodology, efforts to develop comparable data series over time in different locations, and applications of these data to planning tasks involving population growth, mobility and security, strategic and environmental impact assessment on a large scale, and urban sprawl. Recent experiences in applying the methodology to Eastern European and Third World cities are discussed.

Until very recently private capital flows to developing countries have been growing rapidly. In the wake of the 1997 East Asian financial crisis, foreign direct investment has been identified as a vital ingredient to restore and invigorate the economies in the Asian region and beyond. In an attempt to attract overseas capital and to stimulate economic development, countries such as the Philippines have stepped up the adoption of policies that allow for greater access by foreign investors. Increasingly, it appears that foreign capital, provided through transnational corporations, is set to replace official aid and to promote economic development first and foremost, with 'trickle-down' social benefits to follow. This study examines the role of one transnational corporation called the Alliance, in the promised development of Bohol in the Philippines, as a by-product of a water treatment and supply proposal linking the island provinces of Bohol and Cebu. The findings suggest that economic objectives tend to take priority over social development. The Alliance seemed to expound its economic and technical ability, with less effort given to involving and consulting with affected communities. This resulted in residents being disenfranchised from the development process, and gave rise to a feeling of mistrust and resentment.

Despite improvements in access to urban land and services since the 1980s, in both Brazil and Mexico, the consolidation of peripheral urban settlements has accentuated social segregation. Such trends highlight the continuing existence of poverty on a global scale. How have urban planners and urban managers chosen to frame the challenges facing low-income communities? How far does the language used by the technical experts allow them to engage in a dialogue with the people living in these marginalised communities, who place little faith in the outcomes of negotiations with the state?

With reference to Dar es Salaam, this paper examines experience to date with the concept of urban environmental planning and management (EPM), an approach promoted by the UN agencies concerned with human settlements (UNCHS) and environment (UNEP) to enhance the capacity of local governments to manage rapid urban growth and development in partnership with key stakeholders. The paper highlights the opportunities EPM provides to revitalise urban management, particularly in capacity-starved contexts such as those seen in Tanzania. Militating against sustained partnership between local governments and key stakeholders are constraints including weak political will, overemphasis on short-term physical outputs, reluctance to share power, and the protracted nature of the EPM process. Changing entrenched attitudes and habits of the political and administrative e´lites (e.g. conservatism or inflexibility, mystification of urban planning and management, and the monopolisation of power) is imperative if EPM is to be institutionalised within Tanzania. Other issues include how to sustain consensus among diverse stakeholders, the balancing of long-term strategies with immediate or shortterm expectations in poverty-stricken environments, in addition to problems of dialogue with substantive participation by civil society in immature multi-party democracies.

Centralised housing provision has co-existed in Cuba with the widespread reliance on self-help approaches to meeting housing needs, though there has been no mechanism to articulate the two with each other. The author discusses ways in which to bring together the technical and financial resources of the state sector with the creativity and vision of people living in Cuba's towns and cities in order to generate approaches that are socially and ecologically sustainable.

High rates of urbanisation in the South have led to unsustainable development in its cities and towns. The form of development that is taking place is 'parasitic', in that it excludes the poor and follows the development paradigm of the North rather than one more appropriate to the situations faced in the South. Sustainable development is seen as a measure to counterpoise economic growth with environmental concerns, but it remains doubtful whether this can be realised since the impact of participation of the countries of the South in the global market has proved disastrous. This paper highlights the need to be aware of a country's 'carrying' and 'caring' capacity, and argues that work towards sustainable development needs to go from the poor upwards. The Philippines epitomises these concerns, especially regarding the high rate of urbanisation in Metro Manila, where environmental problems and lack of services have led to a deterioration in the quality of life. This is seen by the author to be the responsibility of five overlapping power groups - the state, business, the church, the media, and international aid agencies. The latter tend to follow the Northern development paradigm, which places the South in a vulnerable position and forces Southern governments to act against their country's best interests. A new development paradigm is desperately needed that will avoid the mistakes of the past and improve future prospects for the poor and the environment.

The concept of 'community' became a popular buzzword towards the end of the twentieth century. However, its meaning is increasingly vague because of its rhetorical use in politics, as well as in development, gender, and environmental circles. Based on the experience of a Mohlakeng Township Site and Service Scheme that was undertaken between 1990 and 1994, the paper examines some of the implications of the flexible use of the term 'community' in South Africa.