Urbanization and Foreign Aid

Urbanization and Foreign Aid

Introduction

Urbanization can be defined as the increase in share of a nation's population living in the urban areas with a relative decrease in the share of rural population. Urbanization usually takes place due to the migration of rural population to the cities (Cohen, 2006). The rate of urbanization defines the rate at which the share of population varies with time. This definition aims to keep a distinction between the implications of urbanization and the urban population growth, which are two different phenomena.

There are a number of reasons that can lead to the urbanization and foreign aid from donor nations which might include an increase in the number of births, migration from rural to urban areas. Other reasons might include that the population and industrial development in a rural area making it reclassified as a city. This paper will include an examination of urbanization and foreign aid along with the positive and negative results of urbanization within India.

Discussion

Urbanization is a process which involves the rural populace moving to cities, usually in search of education and employment opportunities or even for personal reasons (Cohen, 2006). During the 20th century, the pace of this process skyrocketed; as of 2011 more than half of the world's residents resided in cities and their neighbourhoods, in accordance with the official data by the UN. However, apart from its advantages, urbanization also has certain drawbacks to offer.

Positive results of Urbanization

Economic Growth

Urbanization has resulted in moving the focus of Indian economy from agricultural production to other types of services and goods, incorporating electronics, banking and particularly information technology. As stated by Oxfam association, as the income of people increases, they tend to buy more luxury goods, but once they have enough sustenance to avert being hungry, they are not likely to buy additional food. An urbanized economy in India has gained the capacity to improve its production and increase its revenue, as opposed to agriculture subjugated economy (Henderson, 2003).

Investments

Urbanization as a process has proved to be a driving force for India regarding foreign and domestic investment. Growing demand for urban development and infrastructure expansion in India combined with the requirement to deal with issues in deprived areas has increased the level of private and public investment.

Social Mobility

In large cities there is an ease of education and employment opportunities for qualified individuals, ensuring meritocracy to particular extent. While in rural settings educational ...