Chapter 7 Flashcards
why is it important to understand the reasons behind migration?
policy and planning, humanitarian aid, social integration, economic benefits, etc.
What do you believe are the primary factors driving people to leave rural areas for urban environments? Are these motivations primarily economic, social, or environmental?
economic the reasons people leave rural areas for urban environments fall under all three categories of economic, social, and environmental
- economic: employment opportunities, better wages, access to markets and services; urban areas have more diverse opportunity and higher income, agricultural jobs are limited and less lucrative
- social: access to better education, healthcare, and social services can attract people to cities; urban areas offer a higher quality of life, with more educational institutions, hospitals, and recreational facilities
- environmental: environmental degradation, natural disasters, and climate change can push people to migrate; rural areas may face challenges such as soil erosion, droughts, floods, which can make farming and living conditions difficult
how has the movement of people from rural to urban areas changed the economy and society in developing regions such as Africa and Asia?
- economic impact: urbanization can drive economic growth by concentrating labor and resources in cities, leading to increased productivity and innovation; however, it can also strain infrastructure and public services if not managed properly
- social impact: urbanization can improve access to education and healthcare, leading to better health outcomes and higher literacy rates; however, it can also lead to social challenges, such as the growth of informal settlements (slums) and increased inequality
- cultural impact: migration can lead to cultural exchange and diversity in urban areas, enriching social and cultural life; however, it can also result in the loss of traditional rural cultures and practices
given the challenges of urban migration, what policies do you think could help control rural-to-urban migration while still allowing economic growth in cities?
- rural development programs: investing in rural infrastructure, agriculture, and small-scale industries can create jobs and improve living conditions in rural areas, reducing the need for people to migrate to cities
- urban planning and infrastructure development: developing well planned cities with adequate infrastructure, public services, and affordable housing can help manage the influx of migrants and prevent the growth of informal settlements
- education and training programs: providing education and vocational training in rural areas can equip people with the skills needed for employment in both rural and urban settings, improving their economic prospects
- environmental sustainability: implementing policies to mitigate environmental degradation and promote sustainable environmental push factors and improve rural livelihoods
as economies develop
urbanization increases
the wealthier and more developed a country becomes,
the more urbanized it tends to be
urbanization rates increase when
urban population growth exceeds rural population growth
1 in 8 people live in
megacities
many developing countries are urbanizing too quickly, leading to challenges such as
overcrowding, inadequate infrastructure, and environmental stress
migration and urbanization dilemma shows the need for
sustainable planning to balance growth and quality of life in both developed and developing regions
Asia and Africa are leading in urban population growth, highlighting the
ongoing migration from rural to urban areas
Asia has the highest urban population among all regions, demonstrating
significant urban migration and growth
most regions, especially Europe show a decline in rural populations, emphasizing a
global shift towards urbanizaiton
urbanization is occurring across
all income levels, regardless of whether economic growth is positive and negative
even in cases of declining incomes, urbanization persists, suggesting that
factors beyond income such as domestic policies also play a significant role
urbanization in Africa is not associated with
industrialization, large cities exist even with low per capita income
small and medium cities in developing countries have experienced
greater population growth than megacities
megacities offer many benefits by bringing people and businesses closer, but they also face challenges like
congestion, crime, pollution, and social and health issues
there is a rapid rise of urbanization in
less developed regions
nearly all future increases in the world’s population will result from the growth of urban areas, this is due to two main factors:
- migrants will continue to move from rural areas into cities
- urbanization rates in developing regions are catching up to those in developed regions
rapid urbanization has led to significant growth in
slums and shantytowns
over 1 billion people live in
urban slum settlements, which is about 30% or the urban population in developing countries
urban population in slums (Sub-Saharan Africa vs China)
Sub-Saharan Africa = half population
China = smaller fraction
while population growth and rural-to-urban migration drive the rise of urban shantytowns,
government policies also play a significant role
misguided urban planning and outdated building codes lead to the growth of
illegal housing
governments may unintentionally drive migrants toward
slums due to these restrictive policies
there is a critical need for national governments to develop
effective policies to address urban growth trends
cities provide cost advantages to producers and consumers through agglomeration economies, which are of two types:
urbanization economies and localization economies
urbanization economies
these are benefits that come from the overall growth of a city (concentrated region); as more people and businesses gather in one area, everyone gains from shared resources and services
localization economies
these benefits are specific to certain sectors, like finance or automobiles; when businesses in the same industry are close together, they operate more efficiently
agglomeration economies benefit in two ways
forward linkage and backward linkage
forward linkage
businesses located near their customers can reduce transportation costs when delivering goods and services
backward linkage
firms in related industries benefit from being close to one another, gaining access to a skilled labor pool and specialized infrastructure
having many people in close proximity can enhance the rate of
innovation
industrial districts consist of
firms engaged in similar or closely related activities, clustered together to maximize profitability
industrial districts improve efficiency by
helping companies share knowledge, observe one another, and exchange information; they also enable businesses to easily contract out work when needed
examples of industrial districts
technology firms and shoe suppliers
historically, artisans have gathered in specific villages or streets within towns. operating in well-established districts provides
marketing advantages, as potential customers know where to find the best selection of products
industrial districts or clusters in China
- before the 1980s, China’s industry was state-owned, and factories were
spread out for military reasons - in 1980, Special Economic Zones like Shenzhen were established to
attract foreign firms, leading to the emergence of township and village
enterprises (TVEs) - initially, TVEs operated independently without close industry clustering
- by the mid-1990s, rapid privatization and favorable local policies led to
localized industrial clusters, which are seen as temporary organizations - the Zhili Township children’s garment cluster demonstrated increased
specialization and outsourcing - entrepreneurs relied on personal savings rather than bank loans, which
enabled clusters to reduce the costs of starting businesses - research from 1995 to 2004 showed that China’s rapid industrialization is
characterized by increased clustering, which helps ease credit constraints and
improves resource allocation - while clustering can be beneficial in capital-scarce environments, it may serve
as a temporary solution until financial systems and investment opportunities
improve
if there are so many gains from urbanization, why not locate all industries in a country (or the world) in a single city?
this question prompts us to examine the trade-offs between the benefits of urban concentration and the challenges that arise from overcrowding
clustering similar industries can improve efficiency and encourage technology growth that helps other sectors, but there are significant costs to consider including
longer commutes, infrastructure expanses, housing trade-offs
longer commutes
workers may face increasing commute times, leading to demands for higher wages to compensate for these costs
infrastructure expenses
higher costs for essential services like sewage and water systems
housing trade-offs
a choice between lower rents further from the city center versus higher rents in more central locations
ultimately, the scale/size of a city depends on the
balance between benefits of being close together and the drawbacks of overcrowding
the optimal city size also varies by industry
ex: an agriculture-based economy may support fewer and smaller cities, while a financial hub could develop into a dense “city-state” like Hong Kong or Singapore
the urban informal sector includes
unregistered and unregulated jobs, where many new urban workers create their own employment
activities in the urban informal sector range from
street vending and junk collecting to skilled trades like carpentry and mechanics
in many developing countries, about half of the employed urban population works iin
the informal sector
workers often have limited education, are unskilled, and lack access to capital, resulting in
lower productivity and income compared to the formal sector
living conditions for informal sector workers are typically harsh, with many residing in
slums or inadequate housing lacking essential services; others may be homeless, relying on sporadic informal work for survival
why is it necessary to promote the urban informal sector?
promoting the urban informal sector is necessary for several reasons:
- the informal sector generates employment opportunities because it requires small capital
- it provides access to informal training and apprenticeships for skill development
- the sector creates demand for less-skilled to unskilled workers, accommodating a broader workforce
- it uses suitable technologies and makes good use of local resources
- many informal jobs help recycle waste materials, which promotes environmental sustainability
- the sector offers significant benefits to disadvantaged groups, particularly women, who are largely represented in informal employment
governments can support the informal sector by
- facilitating skills training to improve workforce capabilities
- providing access to credit, such as microfinance options, to enable business expansion for those without collateral
- improving infrastructure and setting up specific work areas for better efficiency
- improving workers’ living conditions to support their overall well-being
- promoting the informal sector in less crowded to reduce urban migration pressures
women constitute a significant portion of
rural-to-urban migrants in Latin America, Asia, and Africa
only a small minority of women can find jobs in the
formal sector, which is generally dominated by men
many women are limited to low-paying jobs in the informal sector, lacking
security benefits and job stability
the increase in single female migrants has led to
a rise in urban households headed by womenthe
in the informal sector, women in their households are often
poorer, face resource constraints, and have higher fertility rates
women in these households have limited access to
education, healthcare, and basic services, which contributes to higher school dropout rates among their children
how can issues of women in the informal sector be addressed?
governments should implement policies to integrate women into the economic mainstream, including
- legalizing informal-sector work to create more job opportunities for women
- removing restrictions on property rights
- improving access to training programs
- providing affordable childcare and family planning services to enhance women’s economic participation
why do people migrate?
- people migrate for various reasons, including wage differences, age, and education
- other factors can include remarrying, relocating family members, the distance and cost of moving, and events like, disease, or violence
- in addition, families may move to diversify their economic risks by settling some members in areas less affected by economic shocks
- rural-urban migration plays an important role in economic development
- however, in many countries, the rate of migration often surpasses urban areas’ capacity to create jobs and provide essential social services
- this imbalance - where migration exceeds available job opportunities - reflects and contributes to underdevelopment
- in addition, policies that impact rural and urban incomes influence migration patterns, which in turn affect economic activity, income distribution, and population growth
how can government policies influence migration patterns and income distribution between rural and urban areas?
- wages and income polices
- employment promotion programs
- land tenure policies
wage and income policies
setting the minimum wage or providing living wages can directly impact the income levels of workers in both urban and rural areas, affecting their migration decisions
employment promotion programs
initiatives that create job opportunities in both rural and urban areas can help retain populations and reduce the pressure for migration
land tenure policies
improving land rights and access to land for rural communities can enhance agricultural productivity and income, reducing the need to migrate to cities
theory of rural-urban migration
- the economic development of Western Europe and the United States was linked to labor movement from rural to urban areas, with agriculture declining and industry growing through rural-urban migration
- developing countries have looked at this pattern as a model for their own growth, using it as a blueprint for structural change as seen in the Lewis model of labor transfer
- however, the significant rural-to-urban migration despite rising levels of urban unemployment and underemployment challenges this model’s validity
why do people move to the city even when there is rising level of urban unemployment
one theory that explains the rise in rural-urban migration despite increasing urban unemployment is the Todaro migration model, particularly the Harris-Todaro model
the Todaro migration model explains
why people move from rural to urban areas, even when urban unemployment is high
unlike the Lewis model where rural residents wait for urban job opportunities due to capital reinvestment, this Todaro migration model suggests that
migration decisions are based on expected income differences rather than actual earnings
migrants weigh the potential income in cities against the income they could earn in rural areas, for example:
if a rural worker can earn 50 units as a farm laborer or 100 units in a city, traditional models would suggest moving to the city for the higher wage
the Harris-Todaro Model builds on the
Todaro Model by incorporating urban unemployment
the Harris-Todaro Model introduces the idea that
migration can lead to increased urban unemployment levels
in the Harris-Todaro Model, migrants compare the
expected urban wage with the likelihood of securing a job
if the chances of finding employment are low,
the expected income may not justify the move
looking at the Harris-Todaro Model, the rural and urban wages are not equal, instead
the rural wage will be equal to the unexpected urban income
Harris-Todaro Models: key points
- migration is driven by rational economic decisions based on relative benefits and costs
- the decision to migrate depends on expected urban-rural wage differentials which are influenced by actual wage differences and the likelihood of securing urban employment
- the probability of obtaining an urban job is directly related to the urban employment rate and inversely related to the urban unemployment rate
economic theory of rural-urban migration goal
the goal is to create a balanced economic environment that reduces forced rural-to-urban migration
key policy implications of the economic theory of rural-urban migration
- reduce urban bias that favors investment in cities over rural areas
- simply creating urban jobs isn’t enough. if urban employment increases without improving rural incomes, it may lead to more migration and worsen urban unemployment
a larger urban population is
unavoidable
the rate and way cities grow will be important for
achieving key economic development goals
China and India, making up over one-third of the world population, are experiencing
rapid migration and urbanization (African and Asian countries are beginning to enter this phase as well)
today’s policies on urbanization and migration will greatly affect
future economic development because of fixed costs like infrastructure and land use
