rural urban

Urbanization

The process where the percentage of a population living in urban areas increases, expected to reach 7.7 billion people in cities by 2050.

Rural-to-Urban Migration

The movement of people from rural areas to cities, contributing to urban population growth and often leading to slum development.

Urban Slums and Shantytowns

Makeshift housing areas that arise from inadequate infrastructure for migrants, with examples like favelas in Rio de Janeiro and bustees in Kolkata.

Agglomeration Economies

Economic benefits from firms and people clustering in cities, including urbanization economies and localization economies.

Industrial Districts

Regions where related firms cluster, promoting learning and innovation, with social capital enhancing their efficiency.

Clusters

A theory by Michael Porter suggesting industries gain competitive advantages by being located together, supported by social capital and government.

Efficient Urban Scale

The balance between localization economies and congestion costs, where urban density can lead to both benefits and increased costs.

Congestion Costs

Drawbacks of high population density, including high real estate costs and expenses related to vertical construction.

Backward and Forward Linkages

Economic interconnections where one industry's output serves as another's input (backward) or the final product serves the next stage (forward).

First-City Bias

The phenomenon where a country's largest city receives a disproportionate share of public investment, leading to overcrowding and inefficiencies.

Urban Giantism

The excessive growth of the largest city in developing countries due to political centralization and transportation networks.

Urban Informal Sector

Unregulated, small-scale activities providing employment in urban areas, often characterized by low wages and job insecurity.

Women in the Informal Sector

Increasing migration of women to urban areas for economic opportunities, often leading to work in the informal sector.

Migration and Development

Rural-urban migration exacerbates structural imbalances, affecting job creation and labor supply in urban areas.

Todaro Migration Model

A model explaining migration driven by economic considerations, where expected income influences the decision to migrate.

Harris-Todaro Model

A representation of migration as a balance between urban expected wages and rural income, influenced by imperfect information.

Policy Implications

Addressing market and government failures is crucial for managing migration and urbanization challenges.

Comprehensive Strategy for Urbanization

Strategies must focus on rural-urban balance, infrastructure improvement, and addressing urban poverty and climate migration.