ABSTRACT
The consequences of rapid urban population growth and concentrated urbanization in the Caribbean lead to diseconomies of scale and negative externalities. Rural development has a critical role to play in minimizing unmanageable rural-urban migration especially since it is increasingly apparent that migrants are no longer either the fuel for urban-industrial development or capable of being absorbed in "informal" activities. The rapid growth of the urban labour force in the Caribbean creates a supply of labour that, for policy purposes, is given when decisions are to be made concerning investment patterns, allocation of resources, and planning. Caribbean governments must enhance their investment incentive packages. Common features of both are unemployment and underdevelopment and the economic forecast, both currently and in the long-run, is for marginal growth; high levels of inefficiency; and continued centralized economic decision-making. The issue of greatest importance arising from rapid urban population growth and urbanization in the Caribbean is that of urban unemployment.
