Attraction of urban areas
There are well-publicised disadvantages of life in the megacities of the developing world:
-) Poor housing: shanty towns
-) Water and powers shortages
-) Pollution exposure
However, these cities are still highly desirable places to live for people wanting to migrate from rural areas. Part of the appeal is the highly active environment and the strong formal and informal economies which promise to generate far more wealth than what could be obtained in the rural regions.
-) Formal economy: activities and income that are within government regulation, taxation and observation.
-) Informal economy: activities and income that are partially or fully outside government regulation, taxation, and observation. This type of activity allows employers, paid employees, and the self-employed to reduce their costs by evading taxation and social contributions.
-) Poor housing: shanty towns
-) Water and powers shortages
-) Pollution exposure
However, these cities are still highly desirable places to live for people wanting to migrate from rural areas. Part of the appeal is the highly active environment and the strong formal and informal economies which promise to generate far more wealth than what could be obtained in the rural regions.
-) Formal economy: activities and income that are within government regulation, taxation and observation.
-) Informal economy: activities and income that are partially or fully outside government regulation, taxation, and observation. This type of activity allows employers, paid employees, and the self-employed to reduce their costs by evading taxation and social contributions.
Why do megacities grow so quickly?
The concentration of physical infrastructure, such as water supply, roads, power, play a pivotal role in the growth of productivity.
This growth could not take place if the same investment in infrastructure was diluted around the country as whatever finances available are invested into developing a growth centre for the country to build its wealth upon.
This growth could not take place if the same investment in infrastructure was diluted around the country as whatever finances available are invested into developing a growth centre for the country to build its wealth upon.