SHAPING THE FUTURE HOW CHANGING DEMOGRAPHICS CAN POWER HUMAN DEVELOPMENT

The benefits of
urbanization have not
been equally shared
162
FIGURE 5.9:
Wealth tends to rise with urbanization
Sources: Based on UN DESA 2015a and World Bank 2015a.
FIGURE 5.10:
Urbanized countries rank higher on the Human
Development Index
Notes: Human Development Index values are from 2014,
urbanization rates are for 2015.
Sources: based on UNDP 2015a and UN DESA 2015a.
on the ability to nurture a capable workforce,
and absorb its talents through the generation
of decent work.
Whether measured in terms of growth,
human development or demographic dividends,
urbanization’s full potential can only be reached
one way: through the people who live in cities.
Sound urban management is imperative so that
cities become places where every resident has opportunities
to thrive. Issues of equity and access
are paramount, particularly since the benefits
of urbanization have not been equally shared.
URBAN POVERTY AND SOCIAL
EXCLUSION
One of the most compelling challenges for
Asia-Pacific cities today involves urban poverty
and social exclusion, with future human development
prospects largely hinging on how well
these are managed. They often result from the
failure of governments to plan for and accommodate
burgeoning urban populations. Many
new city inhabitants end up poorly integrated
into city structures, including those necessary
for secure and well-paid jobs, adequate housing,
and high-quality education and health care.
In Viet Nam and Thailand, for example,
rural-urban migrant households tend to have
fewer assets, live in worse housing conditions,
are further from quality public schools, and have
lower adult educational levels than urban native
households. 30 In several countries, new arrivals
lack access to formal systems of social protection
or legal status, which exposes them to risks.
Urban poverty rates are generally lower than
those in rural areas in Asia-Pacific (Figure 5.11).
As city populations are so large, however, the
numbers of urban poor are still high in many
countries. For example, despite significant progress
in reducing urban poverty in India in the
last two decades, it still has about 81 million
impoverished urban residents. 31
Differences in the pace at which poverty
rates are falling in rural and urban areas are in
fact reshaping the face of poverty in Asia-Pacific.
Rural poverty in the region has declined by 2.5
percentage points annually, but urban poverty,
while lower, fell by only 1.5 percentage points.
The share of urban poor among impoverished
people overall increased from 18 percent in 1990
to 23 percent in 2008, reflecting the ‘urbanization’
of poverty.
The level of urban poverty and pace of
poverty reduction vary between East Asia and
the Pacific and South Asia. In the former, the
prevalence of urban poverty dropped sharply
from 24 percent to 4 percent from 1990 to 2008
(Table 5.2); the poverty rate in rural areas is now
five times higher. South Asia also substantially
reduced urban poverty, but not as rapidly. Its
share of the urban poor within Asia-Pacific has
risen significantly, from 47 percent in 1990 to
80 percent in 2008. Across the region, urban