http://www.theatlanticcities.com/job-and-economy/2014/01/why-so-many-mega-cities-remain-so-poor/8083
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London, England
tastybloggers.com |
Hello Everyone:
Today we're going to look at emerging mega-cities. Specifically, why so many of emerging mega-cities are so poor. The steady of urbanization has been the big story of global economic development over the past several decades. Couple with the increase in urban centers is the development of the mega-city. In an article for
Atlantic Cities titled "Why So Many Emerging Megacities Remain So Poor," Richard Florida looks at why cities in the "Global South," despite the increasing urbanization, remain so poor. Both urbanists and economists consider urbanization a good thing. In the history of cities, albeit Western cities, such as London, Paris, and New York, much of the story centers around progress and prosperity. However, Mr. Florida points out, "...those concerned with the 'Global South' have rightly pointed to the persistent poverty in some large, dense cities of Africa, Asia, and Latina America..." The basic question is "If urbanization really helps drive economic development, why do many global cities remain poor?"
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Karachi, Pakistan
krachiinformer.com |
This is an essential paradox that Harvard economist Edward Glaeser addressed in his current research as a National Bureau of Economic Research working paper, published this past December. Prof. Glaeser begins by drawing attention to the recent upswing in what he refers to as "poor country urbanization." Using 1960 as the baseline for his analysis, the poorest countries were typically the most rural. Urbanization occurred at a rate of under ten percent in most of the countries that had a per capita income of below $1,000. By comparison, presently there are no poor countries with rates of city living that low. Prof. Glaeser cites United Nations data that followed a huge increase in urbanization rates in under developed countries beginning in 1950 with a rate of eighteen percent to forty-seven percent in 2011.
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Dakar, Senegal
travelblog.com |
In the years between 1960 and 2011, cities such as Karachi, Pakistan; Dakar, Senegal; and Port-Au-Prince, Haiti have rapidly grown. In particular, Dhaka, Bangladesh and Nairobi, Kenya have greatly swelled in a way where generally poor countries see urbanization concentrated in one mega-region. In several charts presented with his paper (which can be viewed via the provided link), Edward Glaeser demonstrates the divergence between urbanization and national prosperity has been focused in developing nation over the last fifty years. The first chart presents the positive relationship between baseline levels of urbanization in 1960 and economic develop over time. There is a correlation in the overall positive relationship. Prof. Glaeser explains, "A ten percent higher level of urbanization among these poor countries in 1960 is associated with .23 log points faster growth between 1960 and 2010...The robust correlation should give us pause before embracing policies aimed at reducing the level or urbanization in a country."
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Port-Au-Prince, Haiti
madlynx.deviantart.com |
The next pair of charts compares urbanization rates to Gross Domestic Product per capita for 1960 and in 2010. (amounts are in 2012 dollars). In 1960 chart, the points are not as tightly clustered like the 2010 chart. "Not only has the overall level of urbanization increased, but the growth has been particularly dramatic among particularly poor places," states Prof. Glaeser. The graphs are not statements for a declining connection between and income. Instead, explains Prof. Glaeser, they demonstrate how significant the curious rise of very poor urbanizing nation has been. What is the explanation of the recent shift?
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Dhaka, Bangledash
thedidisociety.org |
The paper suggests several factors in play. Part of the answer what is the significance of the curious rise of very poor nations urbanizing is the a more fully globalizing economy. In particular, the severing of the link between the city the rural communities that supply the urban core with food and resources. Historically, cities have survived and thrived on the surplus food provided by the rural communities. Thus, the rise of New York or London could not have been possible without the fostering of productive and economically viable farm communities. The reverse of this is also true. However, today's vast international shipping networks and interconnected global food supply means that cities are no longer dependent on their own nation's agricultural supply. "It's a broken link," declares Edward Glaeser, this "has allowed for the puzzling and concerning rise of urban cities in some of the world's most stubbornly poor countries."
Because trade had alleviated the need for agricultural productivity, cities can develop despite enormously poor hinterlands. This creates both opportunity-the ability to escape terribly poor rural land-and a challenge. Massive cities can develop at far lower levels of income as we across the world today.
Simply put, "Today, globalization means that Port-Au-Prince can be fed with imported American rice."
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Nairobi, Kenya
enjoyourholiday.com |
According to Prof. Glaeser, many of these poor mega-cities have weaker institutions and problematic governing structures. The end result is that they are far less capable of dealing with the difficult issues they face and prior history point to a far less positive experience than the story of urbanization. The poorer cities have particular challenges in managing the good and bad consequences of density. Density creates positive externalities: easier movement of goods over a shorter distance, spread ideas, and the fostering of creativity. The negative externalities include: higher crime and congestion level and the spread of disease. Historically, cities have able to mitigate these negative effects through greater wealth and/or stronger institutions-everything from physical infrastructure to policing. Prof. Glaeser writes, "Almost all of these problems can be solved by competent governments with enough money." The problem is poorer mega-cities lack both. This is not really rocket science. These emerging mega-cities are often fraught with a corrupted body of institutions that make getting pot holes filled impossible.
Richard Florida concludes by stating that Edward Glaeser, the author of
Triumph of the City, remains optimistic about the role of cities in global development. Prof. Glaeser argues that cities give rise to all manner of social movements which have, and continue to, bring about needed institutions, better policies, and more transparency.
The cities of the developed world have been wellsprings for growth of politically-minded groups...Indeed, it is possible that an urban contribution to the growth of institutional quality may be the most important urban benefit.
This article is very timely, given the issue of income inequality has come to the forefront. As more people move into urban areas, it becomes increasingly necessary to address uneven development and inequality. This begins by asking the right questions. By asking the right questions, the insufficient portions of global development can, and must be, linked with appropriate policies, institutions, and strategies. Richard Florida predicts that over the next several decades, billions of people will make their homes in the cities-many in mega-cities and slums where crushing poverty still exists. If we're going to do something about it, let's do it right.
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