The Benefits of Urbanization: A Catalyst for Development

1 In 1950, the percentage of the world's population living in urban areas was 30%. By 2014, the figure had increased to 54% and it is predicted that, by 2050, two-thirds of us will be living in cities (World Urbanization Prospects, 2014). This means that in just 100 years, the number of urban dwellers will have more than doubled. The overwhelming majority of this urbanization is expected to occur in Asia and Africa, as people migrate to find work and housing, and gain improved access to healthcare and education. London went from a population of one million to eight million in over a century. Some Asian cities have done so in 50 years or less. While many are concerned that this surge in urban populations will lead to housing shortages and increased competition for employment, there are arguably many significant benefits in terms of development. In fact, history has shown that notable developments in a country cannot take place without urbanization. This essay will therefore argue that urbanization in developing countries should be actively encouraged.

2 Perhaps the biggest benefit of urbanization is a growth in productivity. Rosenthal and Strange (2004) estimated that cities can increase productivity by approximately 3%–8% if they double their population size—a significant number. This increase arises through economies of scale, as the growth in labor in the city allows firms to produce more output while their fixed costs remain largely the same. Essentially, more products are made with fewer resources. Transportation is also a key factor as firms are able to connect more easily and cheaply with each other when they are concentrated in clusters. These agglomeration economies, as they are known, are catalysts of economic growth.

3 Another benefit of urbanization is, perhaps surprisingly, related to the environment. While this may seem counterintuitive, urban life is actually more environmentally friendly than rural life. Urban dwellers use notably less energy and fewer resources than those who live in rural areas. Buildings require less electrical heating than those in more remote places due to typically higher temperatures in urban areas and buildings which lock those temperatures in. Utility services can be offered more easily and affordably as people live in close proximity to each other. Similarly, public transportation is more viable in urban areas. It can be provided at a lower cost to a larger number of people and is more sustainable than private transportation. Public transportation has been proven to use less fuel for every passenger kilometer compared to private transportation (Chester et al., 2010). The more public transportation is used, the smaller a city's carbon footprint. In addition to this, when urban dwellers live close to their workplace and other important facilities including schools, hospitals, and shops, there is a greater tendency towards the use of non-polluting forms of transportation, such as bicycles. This contributes to the reduction of a city's carbon footprint even further, as well as the reduction of traffic congestion.

4 The final key advantage of urbanization is an increase in innovation. Areas of high density are known to inspire residents, entrepreneurs, and businesses to innovate more as they strive to enhance urban life. This includes local residents who work together to create better spaces for themselves and their communities, often regenerating neglected areas. Entrepreneurs look to invest in new technological innovations that create a greener environment by reducing carbon emissions, improving air quality, or developing more advanced, eco-friendly transportation systems. People within businesses innovate to improve systems or create new products with a view to both improving people's lives and making a larger profit. The sharing economy is one example of innovation that can be profitable and beneficial to people's lives and the environment. There are now companies which encourage people to share homes when they are not using them, share cars so they do not have to own one, and donate unwanted goods to those in need of them. Some local governments have schemes that allow private individuals or companies to use their facilities when empty (e.g. a school gym), to reduce spare capacity as much as possible.

5 To conclude, while urbanization in substantial numbers may bring challenges, it also provides significant opportunities. Increased productivity, greater innovation, and the ability to reduce our impact on the environment are three such cases in point. As no country has ever reached middle or high income status without urbanization, it is evident that urbanization must be encouraged to allow developing countries the opportunity to derive the same benefits as developed countries, i.e. an improved standard of living. Urbanization results in progress and a decrease in poverty levels (Global Monitoring Report, 2013). Through higher productivity, people will receive higher wages and housing will become more affordable. Governments will be able to collect more taxation and therefore afford to provide better education and healthcare. Social mobility will increase for all; something that no one can deny is a desirable goal.

What is the author's attitude toward urbanization according to Para. 1? The author's attitude toward urbanization according to Para. 1 is positive. They argue that urbanization in developing countries should be actively encouraged and that there are many significant benefits in terms of development.