CHAPTER 7: URBANIZATION AND MIGRATION
URBANIZATION
-​ it is the process through which cities grow, and higher and higher percentages of
population come to live in the city (National geographic society, 2023)
●​ Developing countries experience rapid urbanization, often leading to challenges.
●​ Critics argue that this excessive urbanization can result in overcrowded cities,
inadequate infrastructure, and poor living conditions.
●​ Rapid urban growth may outpace the ability of governments to provide essential services
like housing, sanitation, and transportation, ultimately impacting quality of life and
economic stability.
MIGRATION
-​ the movement of a person or people from one country, locality, or place of residence to
settle in another
MIGRATION AND URBANIZATION DILEMMA
-​ refers to the complex challenges that arise when people move from rural areas to urban
centers. This combination of migration and rapid urbanization can create several issues:
1.​ Overcrowding
2.​ Infrastructure strain
3.​ Economic disparities
4.​ Social tension
5.​ Environmental impact
FIGURE 7.1
-​ There is a positive relationship between urbanization and per capita income. Countries
with higher urban populations tend to have higher per capita incomes.
-​ Countries with more developed economies (higher per capita incomes) tend to have
larger urban populations. Developing countries, like Rwanda, have low urbanization and
low income.
FIGURE 7.2
-​ Urbanization and GDP per capita:
●​ There is a clear trend where higher GDP per capita is associated with higher
levels of urbanization. As countries become wealthier (moving right on the
x-axis), the percentage of people living in urban areas increases (moving up the
y-axis).
-​ Economic development:
●​ Lower-income countries (on the left) tend to have lower levels of urbanization,
while high-income countries (on the right) show very high levels of urbanization,
often above 80%.
ROLE OF CITIES
AGGLOMERATION ECONOMIES
-​ where firms and workers benefit from being close to each other in cities.
-​ leads to savings in transportation, access to skilled labor, shared infrastructure, and
knowledge spillovers, which boost productivity.
INDUSTRIAL DISTRICTS AND CLUSTERING
-​ the quality of industrial clusters (or districts) is crucial for sectoral efficiency.
Unfortunately, many developing countries struggle to make significant progress in this
area. However, China has made substantial advances in creating industrial districts over
the last decade
MIGRATION AND DEVELOPMENT
-​ Rural to urban migration was viewed positively until recently
-​ The current view is that migration is greater than the urban areas’ abilities to:
- create jobs
- provide social services
THE HARRIS-TODARO MIGRATION MODEL
-​ developed by John R. Harris and Michael P. Todaro
Verbal Description:
-​ Migration is a rational decision
-​ High rates of migration are outcomes of rural-urban imbalance
-​ The decision depends on expected rather than actual wage differentials
-​ The probability of obtaining a city job is inversely related to the urban unemployment rate
Five Policy Implications (Economic Theory of Rural-Urban Migration)
1.​ Reduction of urban bias
2.​ Imbalances in expected income opportunities is crucial
3.​ Indiscriminate educational expansion fosters increased migration and unemployment
4.​ Wage subsidies and scarcity factor pricing can be counterproductive
5.​ Programs of integrated rural development should be encouraged
CONGESTION COST
-​ which are the adverse effects of overcrowding, including traffic congestion, increased
pollution, and extended commute times. These issues can reduce a city's efficiency and
raise the cost of living and working there.
URBAN BIAS
-​ This implies a bias or emphasis on urban areas over rural ones, especially regarding
development and investment. Governments might favor cities, viewing them as
economic centers, which can result in disparities.
Causes of Urban Giantism
*Import substitution industrialization
*Bread and Circuses" to Prevent Unrest
*Hub and Spoke Transportation System
*Compounding effect of locating the national capital in the largest city
Import Substitution Industrialization (ISI)
-​ ISI is an economic policy where countries promote domestic industries to reduce
reliance on foreign trade. This often leads to industries concentrating in one large city to
minimize transportation costs, centralizing production and markets.
"Bread and Circuses" to Prevent Unrest
-​ Governments, especially in authoritarian regimes, use entertainment and public services
to keep people in large cities content and prevent unrest. While stable democracies tend
to distribute resources more evenly, unstable regimes focus on large cities to maintain
control through superficial offerings.
Hub and Spoke Transportation System:
-​ In a hub and spoke transportation model, one major city acts as the central hub, with
smaller cities connected to it. This system raises transportation costs for smaller cities,
making it less viable for industries and people to be based there, leading to more
concentration in the large hub city.
National Capital in the Largest City:
-​ When the political capital is located in the largest city, it creates a "compounding effect,"
drawing more people, businesses, and resources to the city. This accelerates the city's
growth, making it more dominant while smaller cities lag behind.