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POVERTY INEQUALITY URBANISATION

Macro Economics

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16 views17 pages

POVERTY INEQUALITY URBANISATION

Macro Economics

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kevinnjogu2005
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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I.

POVERTY AND INEQUALITY

In 2022, the World Bank estimated that about 8% of the world’s population (which is almost
650 million people) lived on less than $2.15 per day. This state is known as “extreme
poverty.” While extreme poverty is the most urgent issue, 47% of the world’s population is
still struggling with less than $6.85 per day. What is poverty exactly?

In this article, we’ll provide a thorough definition alongside key facts everyone should know
and the best ways to take action.

Poverty occurs when individuals and communities don’t have enough money or resources for
a basic standard of living. That includes good housing, food, clean water, healthcare, and
much more. COVID-19 stalled years of progress on ending poverty, which makes solutions
like improved gender equity, universal health coverage, and taxes on the world’s richest all
the more essential.

What is poverty?
Poverty happens when someone lacks the income and resources necessary to maintain a good
standard of living. That includes safe housing, medical care, food, clean water, and so on.
The UN emphasizes that it’s also “more than a lack of income.” There are varying
socioeconomic factors at play such as race, sexuality, ethnicity, gender, the ability to access
services, and opportunities for decent work. Poverty also drives many social issues like poor
education, child labor, forced labour, poor health, violence, and more.
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For years, extreme poverty – which affects the poorest people on Earth – referred to living on
less than $1.90 a day. In 2022, the World Bank updated its line to $2.15. It was changed to
reflect cost increases for basic food, clothing, and shelter in low-income countries between
2011 and 2017 relative to the rest of the world. $2.15 in 2017 prices is equal to $1.90 in 2011
prices. Before COVID-19, the world was doing a decent job reducing extreme poverty.
According to the World Bank’s Poverty and Shared Prosperity report, 1 billion people
escaped extreme poverty over 30 years. Then, COVID hit. In 2020, 70 million fell below the
extreme poverty line. Based on estimates, about 7% of the world (most in Africa) will still be
in extreme poverty by 2030. There’s also the matter of those vulnerable to poverty. These are
people living on $2-$5 per day. There are 1.3 billion in this group. One financial setback like
an illness, injury, job loss, or other crisis would be enough to push them into extreme poverty.

What causes poverty?


Many factors drive poverty, which is one of the reasons why it’s so difficult to eliminate.
Here are five causes:
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A lack of good education
Education is key to breaking long poverty cycles. Without a good education, it’s very
difficult for people to get better-paying jobs that help them afford necessities and build
wealth. A 2017 report from UNESCO and the Global Education Monitoring Report found
that if all adults finished secondary school, the global poverty rate could be cut in half.
Unfortunately, for those who are already in poverty, completing school is often difficult or
impossible. Governments and NGOs need to step in to ensure students get as much education
as possible.

Conflict and war


Conflict and poverty have a close, reinforcing relationship. Poverty fuels conflict. Conflict
can then make poverty worse. The most obvious reason is that conflict disrupts people’s lives
and destroys infrastructure. Those displaced by violence – especially women, children,
disabled people, and the elderly – are much more likely to fall into poverty. Even when a
conflict has ended, recovery can take a long time and fail to support the most harmed.

Environmental disasters and climate change


Like conflict, environmental disasters disrupt communities and destroy infrastructure.
Climate change is quickly becoming a persistent source of disasters worldwide. While the
world’s poorest contribute the least to climate change, they’re impacted the most. This is
because poor people depend on agriculture, which climate change disrupts through floods,
famines, hurricanes, and more. If significant changes aren’t made, climate change could push
130 million people into extreme poverty over the next decade.

Inaccessible healthcare
Poor healthcare is both a cause and a consequence of poverty. Cost is a big reason why. One
expensive emergency can tip people into poverty and keep them there. Poverty also increases
the risk of health issues that quickly drain a person’s wallet. There are issues beyond pure
cost, however. Disenfranchised groups aren’t given equal access to information, services,
nutritious food, and other resources necessary for good health. Even if healthcare were more
affordable, there would be other steps needed to make it truly accessible.

There’s an established link between poverty and social injustices like racism and gender
inequality. Take the United States. According to research from sociologist Regina Baker,
Black populations living in southern states with a “strong historical racial regime” experience
worse poverty. There’s also a wider poverty gap between Black and white populations in
these states. Worldwide, gender inequality and poverty are deeply linked. If everyone
received equal rights and opportunities, it would eliminate a lot of poverty.

What are the main facts about poverty?


There’s a lot to know about poverty, but here are three main facts everyone should remember:

1. Around 1 billion children live in poverty


Children are deeply affected by poverty. According to UNICEF, 1 billion kids don’t have
access to education, housing, nutrition, water, sanitation, or healthcare. Around 356 of those
kids are living in extreme poverty. As a result, kids from the poorest households die at twice
the rate of kids who aren’t as poor. The kids that do survive continue to face difficulties like
poor nutrition, chronic disease, mental health problems, and hindered emotional
development. Childhood poverty could even cause long-term effects on the brain, though
environmental factors affect behavior, too.

2. Poverty is concentrated in a few areas


According to data from the World Bank, South Sudan has the highest poverty rate at 82.30%.
Equatorial Guinea is next at 76.80%. This is followed by Madagascar (70.70%), Guinea-
Bissau (69.30%), and Eritrea (69.30%). In Burundi, which is a small country in East Africa
with 12.1 million people, 70% of the population is poor. 52% of kids under 5 have stunted
growth and high levels of malnutrition. In terms of GDP per capita, Burundi is the poorest
country in the world.

3. It’s not just poverty; it’s wealth inequality


Wealth inequality refers to differences in income, as well as the value of stocks, investments,
houses, personal possessions, and so on. According to the World Bank Gini Index,( is a
measure of statistical dispersion intended to represent the income inequality, the wealth
inequality, or the consumption inequality within a nation or a social group. developed by
Italian statistician and sociologist Corrado Gini) South Africa has the highest rate of wealth
inequality: 63%. That’s followed by Namibia (59.1%) and Suriname (57.9%). The United
States, which has the largest economy in the world, also has issues. 2021 data showed that
income at the top of the income distribution was 13.53 times higher than income at the
bottom. Inequality is a global problem; in the past ten years, the world’s richest 1% have
gotten almost 50% of all new wealth.

How can the world eliminate poverty?


The world was making great progress on ending poverty until COVID-19. Things need to
improve quickly if we’re going to achieve SDG Goal .1 by 2030. Because poverty is such a
complex, large-scale issue, it’s hard for individuals to make much of a difference on their
own. However, people can educate themselves on the best solutions and pressure those in
power to take action. Here are three solutions to learn more about:
https://borgenproject.org/10-ways-to-reduce-poverty-in-the-world/
https://www.un.org/en/global-issues/ending-poverty
read on these
1. Educate children
Education is one of the best solutions to poverty. Globally speaking, even the most basic
education – reading, writing and arithmetic – can open doors for children that would
otherwise be locked tight. But it’s more than that. Many experts say that the cycle of poverty
simply can’t be broken unless children receive education.

2. Provide clean water


Ensuring children have access to clean water is one of World Vision’s top solutions to
poverty. Safe water close to home can protect children from water-borne diseases, and free
them from long, often dangerous treks to fetch water. This gives them more time to be in
school, learning.
3. Ensure basic health care
Experts agree that affordable, accessible, basic health care is a critical solution to poverty.
According to the World Health Organization, about 100 million people are pushed into
extreme poverty each year, due to out-of-pocket spending on health. To reduce poverty,
affordable services should be available when and where families need them. They should
include health promotion and prevention, treatment and rehabilitation.
4. Improve childhood nutrition
According to the World Health Organization, eliminating malnutrition is one of the most
cost-effective solutions to poverty. The developmental, economic, social and medical impacts
of malnutrition are serious and lasting. It affects individuals as well as their families,
communities and countries. Nourishing babies and young children is one of the best ways to
fight poverty. Doing so in this critical window can improve children’s well-being for a
lifetime – not just as survivors. But as students, earners and leaders.
5. Support environmental programs
Climate change is drastically impacting poverty. In fact, experts agree that any viable
solutions to poverty must include environmental programming – not just in poor countries,
but around the world.
Between 2030 and 2050, climate change alone is expected to cause approximately 250,000
extra deaths per year. That’s from malnutrition, malaria, diarrhea and heat stress alone, says
the World Health Organization.
6. End war and conflict
No war means that budgets allocated to cover the cost of conflict can be used to deliver
public services. It also reduces risks faced by the most vulnerable communities, and ensures
that goals towards equality and inclusion can be maintained.

7. Advocate for Inclusive Policies:


Engage with policymakers and stakeholders to promote at least two significant policy
changes that support poverty reduction and equality at local and national levels.

8. Strengthen Social Protection Mechanisms:


Collaborate with governments and NGOs to develop effective social protection systems that
benefit 250,000 individuals, providing essential support during economic hardships and
crises.

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v=vvlozhvQPJw&pp=ygUOZW5kaW5nIHBvdmVydHk%3D
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%3D
Determinants of Poverty in Kenya

1. Lack of access to land (inadequate land/ unproductive land)


2. Low level of non-farm income
3. Irregular wage income usually in agricultural sector
4. Low levels of education
5. Lack of innovation or entrepreneurship
6. Lack of agricultural credit
7. Inappropriate technology in the marginal areas
8. Lack of access to social services like communication services, etc.

Causes of Landlessness

1. Privatization of land tenure system


2. Land sales to pay fees and personal debts, healthcare
3. Out migration to urban areas
4. Family instability
5. Land grabbing and violent evictions

Issues in Land Ownership

1. Land ownership concentration


2. Small holder innovations
3. Conflict between rural to rural migrants
4. Conflict between farmers and the pastoralists.

a) Policies to Arrest Land Ownership Concentration


(i) Intervention in land markets through land taxes, capital gain tax and
legislative restrictions
(ii) Improve return on alternative assets like bonds and savings
(iii) Income redistribution through progressive taxation
(iv) Redistribution of land to the landless
b) Policies to Improve Small Holder Innovation
(i) Improve access to credit
(ii) Improve access to non-farm income

c) Policies to Reduce Conflict between Rural-Rural Migrants and Pastoralists


(i) Privatize land tenure system in the marginal areas to minimize migrant
conflicts.
(ii) Provide social services and social infrastructure like schools, roads, etc.

INEQUALITY
Global Inequality : Our world's deepest pockets — "ultra high net worth individuals" — hold an
astoundingly disproportionate share of global wealth.
Inequality has been on the rise across the globe for several decades. Some countries have reduced the
numbers of people living in extreme poverty. But economic gaps have continued to grow as the very
richest amass unprecedented levels of wealth. Among industrial nations, the United States is by far the
most top-heavy, with much greater shares of national
+
wealth and income going to the richest 1 percent than any other country.

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https://www.youtube.com/watch?v=0xMCWr0O3Hs

What is inequality
Inequality can be viewed from different perspectives, all of which are related. Most common metric
is Income Inequality, which refers to the extent to which income is evenly distributed within a
population. Related concepts are lifetime Inequality (inequality in incomes for an individual over his
or her lifetime), Inequality of Wealth (distribution of wealth across households or individuals at a
moment in time), and Inequality of Opportunity (impact on income of circumstances over which
individuals have no control, such as family socioeconomic status, gender, or ethnic background). All
of these inequality concepts are related and offer different yet complementary insights into the causes
and consequences of inequality, hence providing better guidance to governments when designing
specific policies aimed at addressing inequality.
Global Income Inequality
World Inequality Report data show that the share of national income going to the richest 10 percent
has increased in nearly every country. The 10 countries where the richest 10 percent increased their
share of the national economic pie the most between 1980-2020 are India, Russia, South Africa,
Poland, China, Korea, the United States, Australia, Germany, and Japan. In several of these countries,
the sharp increase in inequality has coincided with the rollback of various post-World War II policies
aimed at narrowing economic divides.
Rapid economic growth in Asia (particularly China and India) has lifted many people out of extreme
poverty. But the global richest 0.1 percent and 1 percent have reaped a much greater share of the
economic gains, according to the World Inequality Report. In 2020, the richest 1 percent pocketed
20.6 percent of global income, up 2.8 percentage points since 1980. The top 0.1 percent pocketed 8.59
percent in 2020, up 1.98 percentage points since 1980. These ultra-rich individuals did take a hit in
the 2008 financial crisis, but the richest top 0.1 percent have nearly regained the global income share
they enjoyed in 2007.
According to the UBS Global Wealth Report, in 2023 the world’s richest 1 percent, those with more
than $1 million, owned 47.5 percent of all the world’s wealth – equivalent to roughly $214 trillion.
Adults with less than $10,000 make up nearly 40 percent of the world’s population, but hold less than
1 percent of the world’s wealth. UBS defines “wealth” as the value of financial assets plus real assets
(primarily housing) of an individual, minus their debts.
“Ultra high net worth individuals” — the wealth management industry’s term for people worth more
than $30 million — hold an astoundingly disproportionate share of global wealth. These wealth
owners held 6.5 percent of total global wealth, yet represent only a tiny fraction (0.003%) of the world
population, based on Institute for Policy Studies analysis of Capgemini and Credit Suisse wealth data
and UN Population Fund population estimates.

How is Income Inequality measured


Gini coefficient is a typical measure of income inequality. The coefficient varies between 0 and 1,
with 0 representing perfect equality and 1 perfect inequality. Most of the analysis is centered on the
concept of income inequality as captured by the Gini coefficient, which is available for a large
number of countries and relatively long periods. Unless specified otherwise, Gini income inequality
refers to disposable income or consumption and thus already reflects any redistribution through taxes
and transfers.
Figure. Gini Coefficient of Inequality
Back to Top
What Causes Inequality
A range of global and domestic factors — which may reinforce each other — have been proposed in
the theory and empirical literature to account for the income inequality trends. The key forces include
the following:
 Global factors, such as technological progress, globalization, and commodity price cycles,
play an important role. For instance, technological advancement has contributed to the skill
premium, because individuals with higher education have a comparative advantage in using
new technologies (Card and DiNardo, 2002). In Western Europe and the United States,
technological progress has also translated into a hollowing out of middle-class jobs, a
phenomenon known as job polarization (Goos and Manning, 2007).
 Country-specific factors, such as those related to economic developments and economic
stability as well as to domestic policies — including financial integration, redistributive fiscal
policies, and liberalization and deregulation of labor and product markets — also play an
important role in explaining inequality trends within countries.
What are Consequences of Inequality
While some inequality is inevitable in a market-based economic system as a result of differences in
talent, effort, and luck, excessive inequality could erode social cohesion, lead to political polarization,
and ultimately lower economic growth (Berg and Ostry, 2011; Rodrik 1999). But when is inequality
excessive? There is no easy answer, but it will depend on several country-specific factors, including
the growth context in which inequality arises, along with societal preferences.
Basic Facts About Income Inequality
 Global inequality has been declining fast since 1990s. During the nineteenth and most of the
twentieth centuries, global inequality increased dramatically, reflecting widening disparities
between countries’ per capita income as advanced economies took off sharply compared with
the rest of the world. The revival in global economic cooperation in the middle twentieth
century ushered in an era of growth and development. Subsequently, per capita GDP growth
rates accelerated in less developed countries, particularly in Asia, resulting in convergence in
income levels across countries (Bourguignon, 2015). Millions of households were lifted out
of poverty. As a result, the global income inequality first stabilized and then started to rapidly
decline over the last three decades. However, it should be noted that not all regions of the
world experience income convergences with more developed countries. In Sub-Saharan
Africa, for instance, income growth on average was more modest than in Asia. Some gains in
the reduction of global inequality are likely to be reversed as a result of the COVID-19 crisis.
It will likely deteriorate global inequality because advanced economies, in general, have more
resources to deal with the fallout from the pandemic and the ensuing recovery effort.
Figure. Global Income Inequality (Gini coefficient)
Sources: Historical series are from Van Zaden and others (2014), who build on Bourgui-gnon and
Morrisson (2002). Recent data is from Lakner and Milanovich (2013).
 Within-country inequality has risen in most countries. While the progress in the reduction of
global inequality over the last thirty years has been remarkable, within country inequalities
have increased, especially in advanced economies. Over the past three decades, more than
half of the countries and close to 90 percent of advanced economies have seen an increase in
income inequality, with some countries recording an increase in their Gini coefficients
exceeding two points. Some of key factors behind the increase in within-country income
inequality noted in the literature include technological progress, globalization, commodity
price cycles, and domestic economic policies such as redistributive fiscal policies, labor and
product market policies.
 Rising social spending has been used to combat inequality. Fiscal policy is a key policy
instrument available to governments to achieve their distributional objectives. In advanced
economies, taxes and transfers decrease income inequality by one-third, with most of this
being achieved via public social spending (such as pensions and family benefits) ( Immervoll
and rel="noopener noreferrer" others 2005; Paulus and others 2009). The extent of fiscal
redistribution is even higher if the redistributive impact of in-kind spending rel="noopener
noreferrer" (such as education rel="noopener noreferrer" and health) is included (Paulus,
Sutherland, and Tsakloglou, 2009). Thus, it is important to ensure that social spending is
adequate, effective and sustainable. Progressive income taxes also play an important
redistributive function in some countries. The lower redistributive impact of fiscal policy in
developing economies is also a key factor behind their high levels of inequality.
IMF and Income Inequality
Inequality is at the center stage of economic policy debate across the globe. A fair and equitable
distribution of income is a fundamental element of the social contract. Macroeconomic policies
(including government tax and spending policies) have significant effects on income distribution and
that inequality can have adverse political and social consequences, with the potential to undermine
macroeconomic stability and sustainable growth.
Inequality is thus, without any surprise, an important issue for the IMF in all three of its core
activities:
(1) lending to support macroeconomic adjustment programs;
(2) macroeconomic surveillance, including related policy analysis; and
(3) technical assistance to build capacity, especially on government taxation and spending.

Covid-19 and Global Inequality


Access to Covid vaccines has been highly unequal around the globe. As of mid-January 2022, the
number of vaccine doses administered per 100 people was almost than 13 times higher in high-
income than low-income countries, according to data from the WHO and the World Bank. This greed-
driven global vaccine gap has made the spread of the infection across borders even more difficult.
The economic toll of the pandemic has also been highly unequal. Oxfam reports that from March 18,
2020 to the end of 2020, global billionaire wealth increased by $3.9 trillion. By contrast, global
workers’ combined earnings fell by $3.7 trillion, according to the International Labor Organization, as
millions lost their jobs around the world.

SOLUTIONS TO INCOME INEQUALITY

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https://www.cnn.com/2013/10/29/opinion/sutter-solutions-income-inequality/index.html

With only around one-tenth of the SDG for eradicating inequality achieved to date, the question
remains as to which strategies might be deployed to close the gap.
Oxfam’s paper calls for governments to take a proactive role in shaping their economies to boost
equality. It proffers that this can be achieved through a mix of measures. These include:
 Guaranteeing public services such as healthcare, education, care and food security known to
address inequality
 Investment in public infrastructure and services
 Better governance of the public sector to ensure greater accountability and transparency
 Strengthening laws for gender and racial justice
 Improving business governance to avoid corporate power and wealth becoming too large
 Capping CEO pay while protecting payment of a living wage
 Creating more effective corporate tax regimes and ensuring enforcement
 Offering proactive support for sustainable, equitable business models through taxation and
other incentives.
Oxfam says it supports the idea that “every nation should aim for a situation in which inequality is
reduced to the point where the bottom 40% of the population have around the same income as the
richest 10%”.

II. URBANISATION
The challenges and solutions facing cities this decade | UN-Habitat (unhabitat.org)
Urbanization is a process whereby populations move from rural to urban areas, enabling cities and
towns to grow. It can also be termed as a progressive increase in the number of people living in towns
and cities. It is highly influenced by the notion that cities and towns have achieved better economic,
political, and social mileages compared to rural areas.

Accordingly, urbanization is very common in developing and developed worlds as more and more
people have the tendency to move closer to towns and cities to acquire “privileged” social and
economic services as well as benefits. These include social and economic advantages such as better
education, health care, sanitation, housing, business opportunities, and transportation.

“Urbanization (or urbanisation) refers to the population shift from rural to urban areas, the decrease in
the proportion of people living in rural areas, and the ways in which societies adapt to this change. It
is predominantly the process by which towns and cities are formed and become larger as more people
begin living and working in central areas.“

The majority of people move to cities and towns because they view rural areas as places with hardship
and backward/primitive lifestyles. Therefore, as populations move to more developed areas (towns
and cities), the immediate outcome is urbanization.

This normally contributes to land development for use in commercial properties, social and economic
support institutions, transportation, and residential buildings. Eventually, these activities raise several
urbanization issues.

To learn more about urbanization, here are its causes, effects, and solutions.

Various Causes of Urbanization


There are several causes of urbanization. Some of the most common include:
1. Industrialization
Industrialization is the shift from the old agricultural economics to a novel non-agricultural economy,
which creates a modernized society. Through the industrial revolution, more people have been
attracted to move from rural to urban areas due to improved employment opportunities.
Industrialization and urbanization
The industrialization has increased employment opportunities by giving people the opportunity to
work in modern sectors in job categories that aid in stirring economic developments.

2. Commercialization
Commerce and trade play a major role in urbanization. The distribution of goods and services and
commercial transactions in the modern era has developed modern marketing institutions and exchange
methods. This has tremendously given rise to the growth of towns and cities.
Commercialization and trade come with the general perception that the towns and cities offer better
commercial opportunities and returns compared to the rural areas.

3. Social Benefits and Services


There are numerous social benefits attributed to life in cities and towns. Examples include better
educational facilities, better living standards, better sanitation and housing, better health care, better
recreation facilities, and better social life in general.
On this account, more and more people are prompted to migrate into cities and towns to obtain
various social benefits and services unavailable in rural areas.

4. Employment Opportunities
In cities and towns, ample job opportunities continually draw people from rural areas to seek a better
livelihood.
Therefore, most people frequently migrate to urban areas to access well-paying jobs, as urban areas
have countless employment opportunities in all developmental sectors, like public health, education,
transport, sports and recreation, industries, and business enterprises.

Services and industries generate and increase higher value-added jobs, leading to more employment
opportunities.

5. Modernization and Changes in the Mode of Living


Modernization plays a very important role in the process of urbanization. As urban areas become
more technology-savvy, together with highly sophisticated communication, infrastructure, medical
facilities, dress code, enlightenment, liberalization, and other social amenities available, people
believe they can lead a happy life in cities.
In urban areas, people also embrace changes in the modes of living, namely residential habits,
attitudes, dressing, food, and beliefs. As a result, people migrate to cities, and the cities grow by
absorbing the increasing number of people day after day.

6. Rural-urban Transformation
As localities become more fruitful and prosperous due to the discovery of minerals, resource
exploitation, or agricultural activities, cities emerge as the rural areas transform into urbanism. The
increase in productivity leads to economic growth and higher value-added employment opportunities.
This brings about the need to develop better infrastructure, learning institutions, health facilities,
transportation networks, and the establishment of banking institutions, better governance, and
housing.
As this occurs, rural communities start to adopt the urban culture and ultimately become urban centers
that continue to grow as more people move to such locations in search of a better life.

Effects of Urbanization on Our Cities


Urbanization has both positive and negative effects on our cities. Let’s explore some of these impacts;

1. Positive Effects of Urbanization


Urbanization yields several positive effects if it happens within the appropriate limits.
Some of the positive implications of urbanization include:
The creation of employment opportunities
Technological and infrastructural advancements
Improved transportation and communication
Quality educational and medical facilities
Improved standards of living.
However, extensive urbanization mostly results in adverse effects. Below listed points are a few of
them.

2. Housing Problems
Urbanization attracts people to cities and towns, leading to a high population increase. With the
increase in the number of people living in urban centres, there is a continued scarcity of houses.
This is due to insufficient expansion space for housing and public utilities, poverty, unemployment,
and costly building materials that only a few individuals can afford.

3. Overcrowding
Overcrowding is a situation whereby a huge number of people live in a small space. This form of
congestion in urban areas is consistent because of overpopulation, an aspect that increases daily as
more people and immigrants move into cities and towns for better livelihood.
Most people from rural or undeveloped areas always have the urge to migrate into the city, normally
leading to congestion of people within a small area.

4. Unemployment
The problem of joblessness is highest in urban areas and affects even the educated people. The youths
are the most affected demographic group, and it’s estimated that they are three times more likely to be
unemployed than adults.
And, as much as income in urban areas is high, the costs of living make the incomes seem horribly
low. The increasing relocation of people from rural or developing areas to urban areas is the leading
cause of urban unemployment.

5. Development of Slums
The cost of living in urban areas is very high. When this is combined with random and unexpected
growth and unemployment, there is the spread of unlawful resident settlements represented by slums
and squatters.
Slum and Urbanization
The growth of slums and squatters in urban areas is even further exacerbated by fast-paced
industrialization, lack of developed land for housing, a large influx of rural immigrants to the cities,
and the elevated prices of land beyond the reach of the urban poor.

6. Water and Sanitation Problems


Because of overpopulation and rapid population increase in most urban centers, inadequate sewage
facilities are likely to be common.
Municipalities and local governments are faced with serious resource crisis in managing sewage
facilities. As a result, sanitation becomes poor and sewages flow chaotically, draining into
neighbouring streams, rivers, lakes, or seas. Eventually, communicable diseases such as typhoid,
dysentery, plague, and diarrhoea spread very fast, leading to suffering and even deaths. On top of that,
overcrowding highly contributes to water scarcity as supply is less demand.

7. Poor Health and Spread of Diseases


The social, economic, and living conditions in congested urban areas affect access and utilization of
public health care services.Slum areas, in particular, experience poor sanitation and insufficient water
supply, making the people living there susceptible to communicable diseases. Environmental
problems such as urban pollution also cause many health problems, namely allergies, asthma,
infertility, food poisoning, cancer, and even premature deaths.
8. Traffic Congestion
When more people move to towns and cities, one of the major challenges posed is in the transport
system. More people means an increased number of vehicles, leading to traffic congestion and
vehicular pollution.
Many people in urban areas drive to work, creating a severe traffic problem, especially during rush
hours. Also, as the cities grow in dimension, people will move to shop and access other social
needs/wants, often causing traffic congestion and blockage.

9. Urban Crime
Issues of lack of resources, overcrowding, unemployment, poverty, and lack of social services and
education habitually lead to many social problems, including violence, drug abuse, and crime.
Most crimes, such as murder, rape, kidnapping, riots, assault, theft, robbery, and hijacking, are
reported to be more prominent in urban vicinities. Besides, poverty-related crimes are the highest in
fast-growing urban regions. These acts of urban crime normally upset the peace and tranquility of
cities/towns.

Solutions to Urbanization
Although most effects of urbanization are negative, there are a few that can be done to help mitigate
the negative impacts.
These include:
1. Building Sustainable and Environmentally-friendly Cities
Governments should pass laws that plan and provide environmentally sound cities and smart growth
techniques, considering that people should not reside in unsafe and polluted areas.
The objective here is to build sustainable cities that embrace improved environmental conditions and
safe habitats for all urban populations.
Governments should also encourage sustainable use of urban resources and support an economy based
on sustainable environments, such as through investment in green infrastructure, sustainable
industries, recycling and environmental campaigns, pollution management, renewable energy, green
public transportation, and water recycling and reclamation.

2. Provision of Essential Services


Urban stakeholders must ensure all populations within the urban areas have access to adequate
essential social services, namely education, health, sanitation and clean water, technology, electricity,
and food.
This will provide and implement employment opportunities and wealth creation activities so that
people can earn a living to pay for the maintenance of the services.
The governments can also avail subsidies to lower the costs of basic healthcare, basic education,
energy, education, public transportation, communication systems, and technology.

3. Creation of More Jobs


To lessen the negative effects of rapid urbanization while at the same time conserving natural
ecosystems, private investments should be encouraged to utilize natural resources and create more job
opportunities.
Tourism promotion and the sustainable exploitation of natural resources can create more jobs for
urban populations. Subsidies and grants may as well be provided to foreign and private investment in
environmentally friendly development projects that encourage job creation.

4. Population Control
Key stakeholders in urban areas must provide campaigns and counseling for effective medical health
clinics and family planning to help reduce the high rates of population growth.
Medical health clinics oriented towards family planning options must be made accessible across the
entire urban area with the objective of controlling diseases and population growth.
Read and make notes on more solutions
Read and make notes on Tatu City and Konza metropolis

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