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That did exist in the US Northeast when I was a kid. Most everything we needed could be walked to. Walmart, Home Depot, and other chains eventually killed off all the walking distance mom and pop restaurants, grocery marts and shops.

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This is happening in my hometown Chitré, Panama, an 80k population town in a developing country. But ask almost anyone and they'll tell you how Chitré feels more and more like the capital city, i.e. more developed. No politician in her right mind is going to propose increasing tariffs on cars and taxes on fuel. People thinks its perfectly OK if pedestrians have access to the worst infrastructure, while cars proliferate. After all, you work hard, buy a car, close the windows, turn on the AC, and let the underachievers breathe burned fuel. The world is in order.

Update: I've also stayed several months in Chile, which based on GDP, HDI, and Gini Coefficient, is a more developed country. Fuel is twice the price as in Panama, pedestrian infrastructure is well maintained, and the car driver culture in terms of following rules is the opposite of Panama. Mom and pop shops are the norm there, everywhere I went.

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