Importance of Urbanization

Urbanization is defined as the population shift from the rural areas to the urban areas in search of new opportunities and a better standard of living. It can also be seen as the aftermath of industrialization and modernization. Today, the number of people living in the cities is more than the people living in the rural areas.

Though the urbanization happened a long time ago in the developed countries like the U.S, the developing countries like China, India, etc., are still experiencing this phenomenon. Many European countries experienced faster developments due to this phenomenon during the industrialization era. Urbanization helps in the overall growth of an economy.

importance of urbanization

Though this process has some disadvantages like environmental pollution, the high cost of living, etc., its advantages outweigh all of them. The growth of the economy would have been a far-fetched dream without the urbanization. Let us have a look at the changes it has brought on the various sectors of the economy and also its importance in a nation.

  • Urbanization has helped in the growth of the different type of businesses. People who move from the rural areas to the urban areas in search of new jobs, they will spend money on furniture, and household items. If the businessmen are smart enough to understand the taste and requirement of these new inhabitants in the city, they can easily improve their sales.
  • The rural areas are always deprived of the basic amenities, such as schools, hospitals, etc. When they shift to the cities, they get access to all these facilities. This will help in enhancing their standards of living.
  • The increase in the income of the people who have shifted from the rural areas will enable them to give their children, the opportunities to better educational facilities. This will give them more stability in the technologically advanced economy.
  • The urbanization has helped in the growth of infrastructure. When the population increases in the cities, the government will be forced to create new highways, airports and new public transit systems. The businesses will also grow along with the infrastructure. They can open new businesses in the newly established transit routes and hence, gain more profits.
  • Many superstitious believes like black magic, child marriages, etc., have gotten alleviated due to the urbanization.
  • The companies have the opportunity to use highly talented workers who have shifted to the cities and can offer better quality products and services to the economy.
  • The social and cultural integration has become possible with the advent of urbanization.
  • The urbanization has helped in solving many social issues and also in improving the labor productivity.
  • The whole standard of the society improves with the growth of the economy due to urbanization.
  • It gives more economic opportunities to the people, which otherwise would have been an implausible target to achieve.
  • The improvement in the infrastructure will help to improve the tourism sector. People from the foreign countries will become ready to invest their money in a country with better transportation facilities.
  • One of the major advantages of urbanization is the convenience of goods and services. More educational and medical services have helped in decreasing the rate of illiteracy and improving the health of the people respectively.
  • Urbanization has resulted in the increase in the number of jobs due to which people can earn more.
  • The modernization of agriculture has become possible because of the urbanization.
  • Urbanization has led to the improvement of public sanitation and hygiene.

Though the urbanization has led to the overall development of the economy, its rapid growth is a major challenge. The increase in the competition is due to this rapid change in the population of the urban areas. To create more space for the increasing population, we destroy the natural habitats of the animals, which is a threat to the environment. Pollution from the factories and vehicles also leads to various health effects in the living beings.

Irrespective of all these demerits, the urbanization is still a boon to our economy. No technological and industrial growth would have happened without this phenomenon. It has also led to a better standard of living of the people. It is due to the urbanization that the people from the different class and society unite to improve the economic condition of a country.

In short, urbanization is an inevitable process in the development of a country. Without the urbanization, many talents and creativities would have remained unnoticed in the rural areas, which otherwise could have helped in the economic progress.

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