CHAPTER 7 SUMMARY - CHAPTER 7 SUMMARY URBANISATION AND...

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CHAPTER 7 SUMMARY:URBANISATION AND RURAL-URBAN MIGRATION: THEORY AND POLICYThe Migration and Urbanisation DilemmaIn 2007, for the first time in human history, the world became more urban than ruralConsider both the modern sector and the urban informal sector in cities of LDCsUrbanisation: Trends and ProjectionsPositive association between urbanisation and per capita incomeToday’s LDC are far more urbanised than today’s developed countries were when they wrtr ay a comparable level of development -> LDCs are urbanising at a faster rateUrbanisation is occurring everywhere, at high and low levels of income and whether growth is positive or negativeWorld’s urban pop = 3 billion (2/3rds+ in developing)After 2015 the number of people in rural areas will decreaseAlmost all increments to the world’s population will be accounted for by the growth of urban areasKey question – How LDC cities will cope – economically, environmentally, and politicallyOpinion of Former World Bank president Robert McNamara -> “any economies of location are dwarfed by costs of congestion”Growth of huge slums and shantytowns -> represent over 1/3rdof the urban population in all developing countriesSub-saharan Africa is the world’s most rapidly urbanising regionNorthern Africa is the only developing region where the quality of urban life is improvingRural migrants constitute anywhere from 35% to 60% of recorded urban population growthPolicies that have emphasised industrial modernisation, technological sophistication, and metropolitan growth have created a substantial geographic imbalance in economic opportunities and contributed significantly to urban-rural migrationLook to the informal sector as a potential engine of growthUrban bias = the notion that most LDC governments favour the urban sector in their development policies, thereby creating a widening gap between the urban and rural economiesThe Role of CitiesGeneral:oCities provide cost advantages through agglomeration economiesoAgglomeration economies = cost advantages to producers and consumers from location in cities and towns, which take the forms of urbanisation economies (general benefits of a concentrated geographic region) and localisation economies (benefits captured by particular sectors often in the form of backward and forward linkages)Industrial Districts:
oCity = “an area with relatively high population density that contains a set of closely related activities”oBenefits of “industrial districts” or “clusters” include:Passive collective efficiency (benefits gained simply by location)Eg. Flexible specialisation as can contract out work easilyActive collective efficiency (benefits through collective action)Eg. lobbing for better infrastructureThe degree of collective action affects the dynamism of a districtSocial capital is important for collective action. (Social capital =

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