Poverty Due to Urbanization - Research Paper Example

POVERTY DUE TO URBANIZATION In the 21st century, urbanization has increased throughout the world consequently leading to an increase in the rural to urban migration. Technological development and industrialization has led to emergence in new towns at an alarming rate. In developing countries such as majority of African countries, there has been an increase in the number of towns. Most of the rural areas have been converted to urban areas after transformation of villages into towns and cities. The impact of these global trends is not well known as the world shows new trends in terms of economic development. More people are moving from rural areas to urban areas in search for employment and the urban population is rising considerably, which is opposite to the population trend in the rural areas. While it is expected that urbanization would lead to economic development, it is clear that the poverty level is increasing. This is a major problem that researchers have come to associate with urbanization. As people move from the rural to urban areas, they reduce the potential of economic growth in the rural areas. In addition, overpopulation in the urban areas results to development of slums, which are regions of concentrated poverty. This essay examines the link between urbanization and poverty, and evaluates possible solution to this problem. The 21st century has been marked by increased urbanization and consequent rural to urban migration. As at now, it is estimated that close to half the population of the world is living in urban areas and that by the year 2025, the population in urban areas in developing countries will hit about 4 billion. In countries such as China, the pace of urbanization is alarming is accompanied by a massive movement of people from rural areas. A number of researchers admit that urbanization is a vital part of economic development as it paves way for higher employment rates. As industries open up in the urban areas, more job opportunities open and the living standards are expected to rise as more people get a consistent source of income. It is estimated that in developing areas, over 100,000 slum dwellers will have their lives improved due to urbanization (Shahbaz, Aamir & Shabir, 2010). On this note, it is clear that to some extent, urbanization results to economic development within developing areas. However, it is clear that the proponents of urbanization have ignored the other side of the coin that shows that urbanization can be a major cause of poverty. As people move from the rural to urban areas, they drop their income generating activities in the rural areas, which results to the collapse of the economy in these areas. Most rural areas form the agricultural areas within a country, which is responsible for producing food to sustain the urban regions. Also, these are the income generating activities that the rural dwellers partake in to earn a daily living. Therefore, moving from these areas reduces family income, especially due to the fact that the learned educated people are more likely to move to the urban areas. As this trend results to a reduction in the agricultural output, the country becomes dependent on foreign food, which results to an increase in the poverty level. In countries where farmers use agriculture not only for subsistence but also as a source of export income, reduction in agriculture results to increase in poverty rate. The reason why most people move from the rural is due to the notion that urban areas are more economically advantaged and that there are more opportunities for development (Calì & Menon, 2013). However, it is clear that this kind of development is two-edge knife and it can be both beneficial and a loss for the country. Another possible reason for the rise in poverty due to urbanization is the uncontrolled population increase in the urban areas. The movement towards rural areas results to a great increase in the population in the urban areas, which leads to economic adjustment in these urban areas. As the population increases, the demand for housing, health and other goods and services increases rapidly, making the life in the urban areas more expensive. Unfortunately, the population flowing from to the urban areas is too high more than the industries can absorb. The result of this is that the unemployment rate becomes high and those who cannot afford basic necessities end up living in the slums. This kind of adjustments results to increase in the poverty level as the number of those entering the slums becoming higher than those leaving the slums. The slums are regions of high poverty concentration, where the living standards of this population are much lower than those in the urban areas (Salvati, 2013). This trend shows that urbanization is resulting to an increase in poverty level both in the urban areas and the rural areas. To resolve the problem of increased poverty due to urbanization, it is crucial to weigh possible solutions to the rural to urban migration. While it is clear that it is a worthwhile decision for the rural dwellers to move to urban areas where job opportunities are more, it is crucial to control this kind of movement. To control the level of rural to urban migration, the government should focus on opening industries within the rural areas, rather than establishing them within urban areas. In developing countries, companies have tendency to open business within the urban areas where there is better infrastructure and there are more potential customers. Concentration of these industries is the reason why the public is flowing to these areas in search for employment. If the government gives a directive that companies establish their industries within the local areas, it is possible to control this movement and hence encourage most rural dwellers to remain within their local areas (Zenou, 2011). This will reduce the number of unemployed people in the urban areas, hence preventing population explosion within the slums. While this approach may be viable, it has its own challenges. Establishing industries in the rural areas is good strategy to reduce poverty in the rural areas, which is the key factor that drives people into the towns. However, it is a challenge for the government to compel the organizations to move to the less developed areas without motivating them to invest in the country. Most developing countries need to provide a conducive environment for industrialization to take place, which is the ultimate solution to the high poverty levels in these countries. Therefore, forcing the companies to move to rural areas may be interpreted as lack of cooperation with industrializing companies. Secondly, the government would be tasked with the challenge of establishing efficient communication, electricity and transport infrastructures to motivate the people to move to these areas. This will cost the government a good deal if they have to successfully provide the industrial firms with an incentive to open companies in these regions of the country. The benefit of this is that the government will provide equitable development in both urban and rural areas, which will allow uniform economic development (Xiaobing & Weaver, 2013). On this note, it is clear that despite the challenges that can come along this procedure, it would be a long term process for developing rural areas. Another possible solution to the problem of poverty that results from rural to urban migration is for developing countries to focus on developing local activities such as Agriculture to be sufficiently beneficial to the people in these regions. The reason why many people move from rural areas to surrounding towns is because their local activities do not provide them with a comfortable living. In many developing countries, the rural population grow crops for subsistence only, and not for cash crops. Therefore, the poverty level in these remote areas is the driving force that pushes people to move to other regions of the country (Cengiz & Baydur, 2009). They feel that moving to these rural areas will help to generate income that can sustain them in the local areas. From a critical point of view, the government’s neglection of local agriculture is the reason why there is high poverty level within these local areas. Low farming technology and agricultural knowledge underpins low agricultural productivity. In developed countries, agriculture has been given more attention by the government to ensure that it provides enough food for the country. Therefore, providing infrastructure and technology necessary to improve agriculture in developing countries can help reduce high population flow into towns and hence eradicate poverty. The advantage of improving agriculture is that it becomes a source of income for the people as well as the country. Growth of cash crops helps to earn foreign exchange and this is particularly beneficial to the farmers who receive higher prices for their goods. In addition, this is a strategic plan that can be used to increase economic dependence within a country by eliminating the high cost of importing foodstuffs from foreign countries. The weakness of this method emanates from the weather and climatic condition in these areas. Some regions of the developing countries such as those in the Sub-Saharan Africa are completely dry and the communities living in these areas do not have any specific economic activity. Also, such regions are complex to transform to become agriculturally productive areas, which can sustain those living in these areas (Yabuuchi & Beladi, 2011). Therefore, it would be close to impossible to change the lives of those people in these areas. Investing in such areas would be an expensive project given the tight budget that these developing countries. This shows that the above plan would work well in some regions while it may disadvantage others. On this note, the government should focus on an integrative strategy to empower people in the local areas, as a way of controlling poverty that results from urbanization. In conclusion, urbanization results to high poverty levels, both in the rural and urban areas. The high increase in the pace of urbanization and consequential increase in mass movement from rural to urban areas has shaped the countries’ economic pattern. While urbanization provides better job opportunities, it is clear that urbanization reduces the agricultural productivity, reducing the ability of developing countries to sustain their food reserves. Also, the population explosion in rural areas results to increase in the number of people in slum areas, whose cumulative impact is that the level of crime goes higher in the towns. Therefore, it is crucial for the government to control the impact of urbanization to ensure that it does not lead to an increase to the poverty level in the country. Notably, it would be recommendable for developing countries to motivate industrial firms to move to local areas and to focus on developing local activities to ensure sustainability in these areas. Although the strategies have their own challenges, they will limit the movement from rural to urban areas, and consequently reduce poverty level that may result from urbanization. Bibliography Calì, M., & Menon, C. 2013. Does Urbanization Affect Rural Poverty? Evidence From Indian Districts. World Bank Economic Review, 27(2), 171-201. Cengiz, S, & Baydur, M 2009, 'Considering The Inefficiencies In Labor Market For An Explanation Of Migration Fact From Rural To Urban Areas In Turkey', Young Economists Journal / Revista Tinerilor Economisti, 7, 13, Pp. 113-129, Business Source Complete, Ebscohost, Viewed 14 May 2014. Salvati, L. 2013. Land Degradation, Rural Poverty And The Socioeconomic Context In The Mediterranean Region: A Brief Commentary. Current Politics & Economics Of Europe, 24(1/2), 1-21. Shahbaz, M., Aamir, N., & Shabir, M. 2010, Urbanization and Poverty Reduction: A Case Study Of Pakistan. Iup Journal Of Infrastructure, 8(4), 23-37. Xiaobing, W, & Weaver, N 2013, 'Surplus Labour And Urbanization In China', Eurasian Economic Review, 3, 1, Pp. 84-97, Business Source Complete, Ebscohost, Viewed 14 May 2014. Yabuuchi, S, & Beladi, H 2011, 'Rural-Urban Migration And Multinational Firms', Annals Of Regional Science, 46, 2, Pp. 417-426, Business Source Complete, Ebscohost, Viewed 14 May 2014. Zenou, Y 2011, 'Rural-Urban Migration And Unemployment: Theory And Policy Implications', Journal Of Regional Science, 51, 1, Pp. 65-82, Business Source Complete, Ebscohost, Viewed 14 May 2014. Read More