rural-urban dynamics_report.pdf - Khazar University

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102 RURAL-URBAN DISPARITIES AND DYNAMICS GLOBAL MONITORING REPORT 2013 evidence (Levinsohn 2007). On average, women are more reliable remitters than men and form the backbone of rural household support in many cases (Vullnetari and King 2011; Piotrowski and Rindfuss 2006; Tacoli and Mabala 2010). Urbanization has not always led to poverty reduction. In most countries, structural transformation from agriculture to manufacturing and services has been in lockstep with urbanization. Industrialization often begins in a light manufacturing export sector and has created large numbers of better-paying jobs, stimulating the urbanization process by attracting rural migrants to the urban areas (Chandra, Lin, and Wang 2013). In Latin America, where the share of the urban population is over 80 percent, quantitative analysis confirms that in 10 of 18 Latin American countries, changes in labor income explain more than half the reduction in poverty, and in another five countries, more than a third (World Bank 2013). Sub-Saharan Africa’s higher poverty rates and lower income levels have created a perception that African cities have grown larger without enjoying the attendant benefits of urbanization—better-paying jobs, prosperity, and higher standards of living. It appears that the advantages of urbanization set in only after it has reached a critical level: countries with urbanization rates of 40 percent or less have distinctly lower income levels and higher poverty rates (maps 2.4 and 2.5). They also have the largest rural-urban differentials, especially in access to basic services. Links between urbanization and rural poverty Urbanization and poverty reduction are linked in numerous ways. Rural-urban migration and nonfarm economic activity are two of them. Other intricate links between rural and urban sources of growth generate additional potential for poverty reduction. The concentration of the rural population in agriculture has gone hand in hand with poverty in most developing countries. In developed countries, about 20 percent of the population lives in rural areas and 5 percent is dependent on agriculture for employment. In South Asia and Sub-Saharan Africa, more than half the labor force is employed in agriculture, mostly as unpaid family workers (figure 2.9). Indeed, in the absence of adequate safety nets, agriculture is an important fallback option for family members who lose their job to economic shocks or other crises. A consequence of limited job opportunities outside agriculture in low-income countries is that agriculture, by default, absorbs extra labor, which leads to underemployment, low labor productivity, and thus low farm incomes. Economic growth is another link between rural and urban areas, where what happens in one area affects the other. Rural growth contributes to urban growth and vice versa, but rural growth cannot occur without good access to (urban) markets and vibrant farm and nonfarm activities. Successful land reforms and the green revolution in agriculture preceded East Asia’s rapid population and economic growth in urban areas (with some exceptions, such as the Republic of Korea) (Gollin 2009; Mellor 1996). Rural growth helped to lower food prices and real wages for urban areas and created demand for urban goods. Rising income in rural areas allowed rural households to invest in their own businesses and in their children’s health and education, better preparing them for their future. This cycle is not happening as fast in Sub-Saharan Africa and South Asia, where rural poverty is most pervasive. A large literature documents how lack of market access adversely affects agricultural productivity as well as commercialization and specialization. Da Mata et al. (2007) found that the growth of cities in Brazil was positively associated with market potential in surrounding rural areas (measured by rural per capita income weighted by distance). Using household data from Nepal, Emran and Shilpi (2012) analyzed the relationship between market size, defined as the size of the population in a certain area, and the distance of that area to the closest market. They found that the crop portfolio of a village becomes
GLOBAL MONITORING REPORT 2013 RURAL-URBAN DISPARITIES AND DYNAMICS 103 MAP 2.4 Level of urbanization in 1990 ibrd 39874 april 2013 % population that was urban in 1990 0 40 50 55 60 100 Source: GMR team 2013. Note: For the definition of “urban” please see UN 2011. MAP 2.5 Level of urbanization in 2010 % population that was urban in 2010 0 40 50 55 60 100 Source: GMR team 2013. Note: For the definition of “urban” please see UN 2011.
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Global Monitoring Report 2013 Rural
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© 2013 International Bank for Reco
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vi CONTENTS GLOBAL MONITORING REPOR
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viii CONTENTS GLOBAL MONITORING REP
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Foreword Global Monitoring Report (
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Acknowledgments This report has bee
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Abbreviations and Acronyms ADB Asia
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GMR 2013 Rural-Urban Dynamics and t
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4 OVERVIEW GLOBAL MONITORING REPORT
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10 OVERVIEW GLOBAL MONITORING REPOR
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Goals and Targets from the Millenni
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Progress toward the MDGs Only two y
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primary completion, and access to s
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FIGURE 1a Poverty rates (living on
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MDG 2 Achieve universal primary edu
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MDG 3 Promote gender equality and e
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MDG 4 Reduce child mortality In mos
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MDG 5 Reduce maternal mortality MDG
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MDG 6 Combat HIV/AIDS, malaria, and
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FIGURE 6e Children under age 5 who
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FIGURE 7b Access to sanitation by r
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Improving the measurement of develo
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1 Macroeconomic, Trade, and Aid Dev
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GLOBAL MONITORING REPORT 2013 MACRO
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GLOBAL MONITORING REPORT 2013 MACRO
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GLOBAL MONITORING REPORT 2013 URBAN
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Appendix Table A1.1 Classification
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ECO-AUDIT Environmental Benefits St
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