Urban Development and Urban Poverty
Over the last century, cities have become the dominant form of human settlement across low-, middle- and high-income countries. Urban populations grew slowly in the 19th century but accelerated in the 20th century: in 1800 about 50 million people lived in towns and cities worldwide; by 1975 there were roughly 1.5 billion; and by the year 2000 the global urban population reached about three billion. Cities draw people because they offer greater access to paid work, more diverse diets, and improved education and health services, making them a destination of choice for many households. Urban development both reflects and shapes broader social and economic transformation. Concentration of economic, social, political and administrative functions in cities makes them magnets for households across the income spectrum, and positions cities as key indicators of broader development trends. Debates on Urban GrowthObservers have long disagreed about the consequences of rapid urbanization. Some pessimists warn that large urban conglomerations, or megalopolises, are vulnerable to breakdowns driven by epidemics, conflict or environmental shocks. They view the rapid, unplanned growth of some cities as a threat to their long-term viability.Other analysts emphasize the resilience and benefits of urban concentration. Cities are engines of productivity, innovation and cultural life. For example, despite environmental and social challenges, Bangkok contributes a substantial share of Thailand's national output. Cities concentrate talent and infrastructure and often become wellsprings of technology, entrepreneurship and the arts. Inequality and Urban ExclusionAggregate figures for GDP and employment can mask deep inequalities within cities. In many low- and middle-income countries, the top 20 percent of the population control a large share of national income, trade and investment, while the poorest 20 percent hold only a tiny fraction of these resources. Such inequality means that urban growth can coexist with persistent poverty and social exclusion.When rural families migrate to cities, they often find that the housing, jobs and public services that attracted them are inaccessible. Municipal authorities may lack the capacity or the political will to provide adequate support, and new arrivals frequently turn to informal solutions to meet basic needs. Informality and LivelihoodsIn many developing-country cities a large share of the population live and work in informal settlements and rely on informal livelihoods. Estimates vary by context, but in some cities 30 to 75 percent of residents may live in squatter settlements or other forms of unplanned housing and depend on informal-sector activity for survival.Informal employment is often characterized by low productivity and precarious earnings, but it is also a major source of livelihoods and a flexible absorber of labour. The informal sector supplies many goods and services, creates opportunities for micro and small enterprises, and plays an important role in day-to-day urban economies.
Urban Poverty in India: A SnapshotIndia has recorded a long-term decline in national poverty rates when measured by consumer expenditure, yet tens of millions of poor people live in urban areas. Historically, some of India's largest cities have contained very large low-income populations: many households have some form of employment but face low productivity, underemployment and insecure incomes. A substantial portion of urban employment is in the informal sector, which both supports livelihoods and limits access to social protection and formal finance. Policy and Governance ChallengesUrban problems are complex and multi-causal. Shortcomings in housing, infrastructure, land management, credit and public services arise from a combination of factors within government and from structural constraints facing low-income households. Governments may face inadequate financial resources, fragmented institutions, weak or poorly implemented legislation, and shortages of trained staff. At the same time, many low-income households lack marketable assets, formal education and secure employment. Public services are often insufficient or unevenly distributed, and do not always reach low-income groups. As a result, households frequently develop their own means to secure housing, water, energy and other basic services, at times replicating public networks through informal arrangements. ReferencesADB (1991). The Urban Poor and Basic Infrastructure Services in Asia and the Pacific. Volume I, II and III. Proceeding of a Regional Seminar, January 22-28, 1991. Manila: Asian Development Bank and Economic Development Institute.Hardoy, J. and David Satterthwaite (1989), "The Emergence of New Attitudes and Policies for Housing" from Hardoy, J. and David Satterthwaite Squatter Citizen: Life in the Urban Third World, pp. 118-145. Kumata Y, et al. (1996) , "A City is not a City: Refletions on a New Language for Megacities". Paper presented at the Pre-Habitat II Conference on the World Cities and the Urban Future, 23-25 August, 1995. Sanders, Rickie (1987) "Towards a Geography of Informal Activity" Socio-Economic Planning Science Vol. 24, No.4, pp. 229-237. Sanyal, Bishwapriya (1988) "The Urban Informal Sector Revisited" Third World Planning Review Vol. 10, No. 1, pp. 65-83. Smith, Wallance (1975), Urban Development: The Process and the Problems. Berkely: University of California Press, 381 pp. Srinivas, Hari (1996), "Sustainable Partnerships for the Habitat Agenda: New Roles for Professional NGOs" Paper presented at the City Summit [UNCHS-HABITAT II], Istanbul, Turkey 4-16 June, 1996. Turner, J.C. (1968), "Housing Priorities, Settlement Patterns, and Urban Development in Modernizing Countries" AIP Journal, No-vember, pp. 354-363. UNDP (1991) Cities, People and Poverty: Urban Development Cooperation for the 1990s. A UNDP Strategy Paper. New York: United Nations Development Program, 94 p.
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