How Urban Economies Differ

Question 1

Kampala vs New York informal sector earnings

Answer 1

Kampala-33billion a year

Newyork: 1trillion a year

Question 2

Why the economies of developed and developing world cities differ

Answer 2

Cities in developed countries will gather more money in taxes (1) because most workers are in the formal economy and automatically pay tax, whereas as many as 80% of workers in developing countries are in the informal economy so may not pay tax

Question 3

Why is the world becoming increasingly urbanised

Answer 3

The world is becoming increasingly urbanised because more people are moving from rural villages to big cities (1), especially in developing countries where they want to find a job and have a better quality of life (1). Rural-to-urban migration is happening on a massive scale due to population pressure and a lack of resources in rural areas.