National Urbanisation Policy - Ministry of Housing and Local ...

National Urbanisation Policy44Thrust 2:DEVELOPMENT OF AN URBAN ECONOMY THATIS RESILIENT, DYNAMIC AND COMPETITIVEThere is a need to identify the economic strengthand specialization of each urban centre to develop,promote and strengthen its future growth anddevelopment. A strong correlation betweeneconomic growth and urban growth further clarifiesthe role of the local economic base in nationaleconomic growth.A major conurbation will encounter challengesfrom globalisation and technological developmentincluding the emergence of knowledge-basedeconomy. The growth of knowledge based economyrequires a high level of competency amongadministrators, service providers and consumers.The improvement of skills of the urban dwellerswill further accelerate economic growth, expandknowledge, and lead to the upgrading ofskilled manpower.Thus, it is important for urban centres, regardlessof size, to create a dynamic economic environmentin support of commerce and value-added economicactivities and knowledge-based industries.Besides encouraging the growth and developmentof major urban centres, the economic developmentof medium and small sized urban centres shouldalso be supported as they provide consumer goodsto the urban population. Small towns also have animportant role in improving the standard of living ofthe rural population as they function as commercialand trading centres especially in marketingagricultural products. The growth of these smalltowns creates demand for agricultural products andprovides non-agricultural employment opportunities;both of which will improve the economic base of therural population.