Explanation:
A primary purpose of this report is to stimulate within the
U.S. Agency for International Development (A.I.D.) a discussion
on urbanization in developing countries and the importance
urbanization can play in shaping national economic growth and
development. Directed to project and program designers and
Mission strategists, the report contends that there has been a
rural-urban "divide" in the Agency and in developing country
governments. The divide is viewed in the context of a growing
antiurban bias and in the perception that urbanization is somehow
"bad. n Although urbanization is not occurring along the same
lines in the developing countries as it has in Western countries,
it can, and in some cases does, contribute effectively to overall
national economic growth and development.
This report argues that urbanization in developing countries
falls along a continuum between extreme types. Type 1 occurs
when overall national economic growth and development are pre-
sent. Type 2 occurs when there is inadequate overall growth,
even underdevelopment.
In a review of regional trends, much of Sub-Saharan African
urbanization falls under Type 2, namely, rapid urbanization and
urban growth with limited national development. The Near East is
skewed toward increased concentration of urban peoples in the
largest cities, but generally in the context of moderate devel-
opment across the region. Asia shows a mixture of Types 1 and 2,
a case of "mixed" urbanization. There, Type 1 applies mainly to
the middle-income, newly industrializing countries, while Type 2
applies mostly to low-income countries experiencing low
agricultural production, low employment and income, and high
rates of rural migration to megacities. For Latin America, a
mixture of Types 1 and 2 also occurs, mainly in the form of
"overurbanization" and slowed development.
Factors of national importance in urbanization include
socioeconomic conditions and policies that have a direct impact
on a country’s human settlements; for example, national policy
that directly affects income and employment has indirect effects
on those settlements. Another major factor that affects urbani-
zation is migration by rural households to urban areas in
response to economic incentives. In developing countries,
households respond to such incentives in choosing places to work.
Equally important is the character of rural-urban linkages. In
places where urbanization is of Type 1, rural-urban linkages
actively contribute to a dynamic marketing system; but for Type
2, such linkages do not create opportunities for
