ABSTRACT
This chapter explores the relationship between urbanisation and development in the South. It outlines a strict interpretation, namely a direct causal link from urbanisation to growth. The chapter summarises the available evidence, which actually challenges this perspective. It presents a broader view, namely a complex two-way relationship that is context-dependent. This suggests that urbanisation can foster development if suitable mediating conditions exist, but the connection is far from automatic. The chapter also focuses on a key supporting condition that is often neglected, namely the urban land–infrastructure–coordination nexus. The most common forms of empirical evidence used to assess the relationship between urbanisation and growth are cross-country correlations. A broader perspective seems more plausible, involving a two-way relationship between urbanisation and development with extensive feedback effects. The economic structure also influences whether the outcome is broad-based prosperity. Industrialisation seems to go with urbanisation to generate higher productivity, more employment and rising incomes.
