Urbanization And Growth

Why is productivity higher in cities? Does urbanization cause growth or does growth cause urbanization? Do countries achieve rapid growth or high incomes without urbanization? How can policy makers reap the benefits of urbanization without paying too high a cost? Does supporting urbanization imply neglecting rural areas? Why do so few governments welcome urbanization? What should governments do to improve housing conditions in cities as they urbanize? Are innovations in housing finance a blessing or a curse for developing countries? How will governments finance the trillions of dollars of infrastructure spending needed for cities in developing countries? First in a series of thematic volumes, this book was prepared for the Commission on Growth and Development to evaluate the state of knowledge of the relationship between urbanization and economic growth. It does not pretend to provide all the answers, but it does identify insights and policy levers to help countries make urbanization work as part of a national growth strategy. It examines a variety of topics: the relevance and policy implications of recent advances in urban economics for developing countries, the role of economic geography in global economic trends and trade patterns, the impacts of urbanization on spatial inequality within countries, and alternative approaches to financing the substantial infrastructure investments required in developing-country cities. Written by prominent academics in their fields, Urbanization and Growth seeks to create a better understanding of the role of urbanization in growth and to inform policy makers tackling the formidable challenges it poses.

Structural change is a key driver of rapid growth: countries diversify into new industries, firms learn new things, people move to new locations. Anything that slows this structural change is also likely to slow growth. Because urbanization is one of the most important enabling parallel processes in rapid growth, making it work well is critical. Urbanization's contribution to growth comes from two sources: the difference between rural and urban productivity levels and more rapid productivity change in cities. In the early decades of development, when the majority of the population is still rural, the jump from rural to urban employment makes a big contribution to growth. As cities grow larger, the second effect faster gains in urban productivity - begins to dominate, as it operates on a larger base. Mortgages can improve households' ability to buy decent housing. But finance relaxes demand constraints only. Unless it is accompanied by measures to increase supply, better finance may result in overshooting prices. This volatility can jeopardize macroeconomic stability. In a typical pattern, strong income growth leads to a rapid increase in housing demand. An injection of liquidity from some source, often overseas, may help over stimulate the market, leading to over optimism and a dangerous concentration of wealth in real estate.

This volume brings together the late Vibhooti Shukla's writings on urbanization and economic development covering a vast canvas of interconnected issues. Her pioneering analysis with Indian data strongly indicates that the positive correlation between productivity and city sizes holds for India as well as for developed countries. In a well-knit framework, Dr Shukla addresses the problem of city size and the implications for industrial dispersal policies and the phenomenon of rural-urban migrations. She goes on to discuss the spatial dimension of rural non-farm employment, infrastructure investment and the government's role in these. It is her concern with policy issues which takes her to the subject of infrastructure investment, especially its spatial dimension. Dr Shukla demonstrates that better water supply, asphalt roads and increased drainage capacity can have a great impact on productivity. Her essays underline the fact that economic infrastructure is not enough. Social infrastructure, such as investment in health and education, not only creates a healthier, enlightened population but can result in higher industrial productivity.

Originally published in 1990, Economic Growth and Urbanization in Developing Areas is a wide-ranging collection of research studies focused on urban economic growth at various levels of urban and national development. The contributions range from studies of peripheral Third World states, such as Fiji and Malaysia, to countries of the so-called semi-periphery, such as Spain, South Africa, and Northern Australia. In addition the authors cover a variety of thematic topics within the framework of urban economic development, from the provision of basic services such as housing and food, to the functional preservation of historic cores, and the impact of economic change on family structure.

Cities are not only home to around half of the global population but also major centers of economic activity and innovation. Yet, so far there has been no consensus of what a city really is. Substantial differences in the way cities, metropolitan, urban, and rural areas are defined across countries hinder robust international comparisons and an accurate monitoring of SDGs. The report Cities in the World: A New Perspective on Urbanisation addresses this void and provides new insights on urbanisation by applying for the first time two new definitions of human settlements to the entire globe: the Degree of Urbanisation and the Functional Urban Area.

This volume presents a significant new collection that focuses on urbanization and its implications for economic development. Written for an advanced audience with an interest in urban economics and cities, the book contains case studies from India, Brazil, Tanzania, Lebanon, and South Africa.

Kozulj proposes a bold and vital idea: if the activities linked to urban development were reoriented towards the construction and reconstruction of sustainable cities, this would tend to solve a large part of the problem of structural unemployment,

Examines the trends, challenges, issues, and strategies developing countries evaluate when facing a population upsurge and expeditious development of urban environments. The volume explores the use of different governance techniques, trending patterns in urbanization and population growth, as well as tools and the appropriate allocation of resources used to address these issues.