ABSTRACT
This chapter provides a conceptual framework for the analysis of the main policy issues in the context of available theoretical and empirical studies on urbanization, employment, and poverty in developing countries. Historically, the process of industrialization and economic development has been associated with considerable migration to the growing urban centres of labour demand. Raising average rural per capita income relative to urban income levels is thus critically dependent on lowering rural population growth, which is itself a function of natural population growth and rural-to-urban migration. Rapid urban population growth puts great stress on the existing stock of shelter and service infrastructure and frequently has deleterious effects on health and environmental conditions. The chapter has outlined the main policy problems requiring urgent attention in large cities in developing countries. The analytical issues discussed and the analysis of trends in urbanization, employment, and poverty provide an essential part of the policy framework within which specific policy issues need to be examined.
