Migration and Urbanization

in Developing Countries
This presentation explores the complex dynamics of migration and
urbanization in developing countries, focusing on the movement of
people from rural areas to cities in Africa, Asia, and Latin America. The
world became more urban than rural in 2008, marking a significant shift
in human history. This presentation will examine the role of cities in
fostering economic development, analyze the rural-urban labor transfer,
and evaluate policy options for managing migration flows and urban
unemployment.

by Apple Jan Wagan

Understanding Migration: Definitions and Types
Migration is defined as the geographic movement of people across a specified boundary to establish a new permanent or
semi-permanent residence. A migrant is a person who moves from one place to another, seeking work or better living
conditions. International migration involves movement between countries, with immigrants entering a country and emigrants
departing to another. Internal migration occurs within a country, with in-migrants moving into a new area and out-migrants
leaving an area.

Migration patterns are complex, including rural-urban, rural-rural, urban-urban, and urban-rural movements. Rural-urban
migration is particularly important due to the growing population share of cities and the potential development benefits of
urban economic activity.

Migration International Internal

Geographic movement to establish Movement between countries. Movement within a country.
a new residence.
Migration and Development: A Complex
Relationship
Rural-urban migration has been dramatic, playing a significant role in economic development. However, migration can worsen
rural-urban structural imbalances by increasing the growth rate of urban job seekers and depleting rural areas of human
capital. Urban job creation is often more difficult and costly than rural job creation, leading to chronic urban surplus labor.

Migration in excess of job opportunities is both a symptom of and a contributor to underdevelopment. Understanding the
causes and consequences of migration is crucial for formulating effective development policies. Economic and social policies
that affect rural and urban real incomes will directly or indirectly influence the migration process.

Supply Side Demand Side

Migration increases urban job seekers, depleting rural Urban job creation is more difficult and costly than rural job
human capital. creation.
Migration Policies and Global Patterns
Migration policies have evolved over time, influencing global migration patterns. Before 1914, open policies encouraged
immigration as a source of labor and development. The 1920s and 1930s saw "closed door" policies linked to economic
depression. After 1945, more open policies supported reconstruction in Europe and economic growth in America. Since 1973,
policies have become more stringent, with a rise in refugees and illegal immigration.

Emigration can be an indicator of economic and/or social failures of a society. Between 2 million and 3 million people emigrate
each year. From 1965 to 2000, 175 million people migrated, representing 3% of the global population.

After 1945
Before 1914 More open policies for reconstruction and
Open policies for labor and development. growth.

1 2 3 4

1920s-1930s After 1973

"Closed door" policies due to economic Stringent policies, rise in refugees and illegal
depression. immigration.
Types of Migration: Internal,
International, and Local
Migration can be categorized as internal, international, or local. Internal
migration occurs within a country, crossing domestic jurisdictional
boundaries, with little government control. Factors include employment,
retirement, and education. International migration involves crossing a
national boundary and is subject to government control. Local migration
involves moving within a city or region, often due to changes in income
or lifestyle.

Voluntary migration is the migrant's decision to move, while involuntary

migration is forced, such as slavery or displacement due to war or
disaster. Many migrations are selective, with differences in age, sex, and
education among migrants.

International

Internal

Local
The Todaro Model: Expected Income and
Migration
The Todaro model explains migration as a rational economic decision based on urban-rural differences in expected income
rather than actual earnings. Migrants compare their expected incomes in the urban sector with prevailing average rural
incomes and migrate if the former exceeds the latter. This model recognizes that migration occurs despite urban
unemployment because migrants are motivated by the prospect of higher potential earnings.

The theory assumes that workers compare the expected incomes for a given time horizon in the urban sector (the difference
between returns and costs of migration) with prevailing average rural incomes and migrate if the former exceeds the latter.

Rural Income
1
Average rural income.

Urban Income
2
Potential urban income.

Migration Decision
3
Migrate if urban income exceeds rural income.
Brain Drain: Selective Migration and its
Consequences
Brain drain refers to educationally specific selective migrations, where countries lose their most educated segment of the
population. This can benefit the receiving country by providing highly qualified labor but can be a problem for the country of
origin, which loses potential leaders and talent. Remittances can partially offset the negative impact, and some migrants may
eventually return with new skills and connections.

High-skilled immigrants fill positions in science, technology, and education, while low-skilled immigrants fill low-paid jobs in
agriculture and services. This can maintain low wages in low-skilled jobs and create an informal economy.

Receiving Country Country of Origin

Gains highly qualified labor, promotes economic growth, Loses potential leaders, impacts long-term growth, may
avoids education costs. receive remittances.
Push-Pull Factors and Behavioral Explanations of
Migration
The push-pull theory explains migration as a response to negative factors in the current area of residence (push) and positive
factors in the potential destination (pull). Push factors include high unemployment, poverty, crime, and disasters, while pull
factors include job availability, higher wages, and better lifestyles.

Behavioral explanations consider migrants as risk-takers who are more motivated, innovative, and adaptable. Migrations are
also linked to events in one's life, such as education, career, and family. No single theory can fully explain migration, but each
contributes to understanding why people move.

Economic Factors
Job opportunities and higher wages.

Push Factors
Negative aspects of the origin.

Pull Factors
Positive aspects of the destination.
A Comprehensive Migration and Employment
Strategy
Continued urbanization and rural-urban migration are likely inevitable. A comprehensive strategy to improve the migration and
employment situation in developing countries includes creating an appropriate rural-urban economic balance, expanding
small-scale, labor-intensive industries, eliminating factor price distortions, choosing appropriate labor-intensive technologies,
modifying the linkage between education and employment, reducing population growth, and decentralizing authority to cities
and neighborhoods.

China and India are entering their most rapid migration and urbanization period, making policies toward urbanization and
migration of momentous importance for the character of economic development for many decades to come.

1 Rural-Urban Balance 2 Labor-Intensive 3 Appropriate Technologies

Integrated rural development and Industries Development of labor-intensive
nonfarm opportunities. Expansion of small-scale methods and technologies.
industries in urban and rural
areas.