ABSTRACT
There is a general consensus among economists and urban scholars that urbanization plays a positive role in social and economic development. Historically, countries with the highest rates of economic growth have also been those with the most rapid increase in levels of urbanization, and cities are recognized as important drivers of overall economic development (Montgomery et al, 2003; Overman and Venables, 2005). Economies of scale and agglomeration economies in the production of goods and services reduce costs and support innovation. Proximity fosters synergies between different economic sectors, which can help optimize the use of resources and the disposal of wastes. Access to health services, education, basic infrastructure, information and knowledge are on average better in urban centres than in rural areas (UN-Habitat, 1996; Njoh, 2003; Champion and Hugo, 2004), although, as described later in this chapter, aggregate statistics can hide deep inequalities in access.
