discuss the result of the British economic policies in the context of urbanisation
Answers
The growing concentration of the world’s population in major cities and towns in low- and middle-income countries means that the relationship between urbanization and development has become a major policy concern.(1) Almost coincidentally, the contribution of large cities to the prosperity of advanced economies has attracted the attention of leading North American and European economists, illustrated by the Nobel Prize awarded to Paul Krugman in 2008. Of course, the biggest practical challenges lie in Africa and Asia, where a vital question is whether rapid urban population growth can help to raise living standards and reduce poverty without degrading the ecosystems on which life depends. This paper focuses on the connection between urbanization and economic growth, but also refers to the implications for poverty and the environment.
Over the last decade, many influential global development organizations have shifted their perspective on this issue by advocating the view that urbanization supports growth and development and should be encouraged.(2) For example:
“No country has grown to middle income without industrializing and urbanizing. None has grown to high income without vibrant cities.
The relationship between urbanization and development is a vital policy concern, especially in Africa and Asia. This paper reviews the arguments and evidence for whether rapid urban population growth can help to raise living standards. The main finding is that the development effects of urbanization and the magnitude of agglomeration economies are very variable. There is no simple linear relationship between urbanization and economic growth, or between city size and productivity. The potential of urbanization to promote growth is likely to depend on how conducive the infrastructure and institutional settings are. Removing barriers to rural–urban mobility may enable economic growth, but the benefits will be much larger with supportive policies, markets and infrastructure investments. Cities should use realistic population projections as the basis for investing in public infrastructure and implementing supportive land policies. Governments should seek out ways of enabling forms of urbanization that contribute to growth, poverty reduction and environmental sustainability, rather than encouraging (or discouraging) urbanization per se.