Tag Archives: urbanization

There are no country-bumpkin economists: A problem for economic research institutes

Since entering the world of economics a short while ago I have repeatedly been surprised by some major development institutions’ lack of regard for the country-side and rural activities. In the 2009 the World Development Report the World Bank called on an increase in urbanization, and therefore a reduction in rural employment, as “essential for economic success.” This development policy was adopted by both the World Bank and a number of senior economists after seeing the positive effects that industrialization has had in North America, Western Europe and Northeastern Asia.  One underlying view behind this popular urbanization theory is that the countryside is a breeding ground for poverty, which can only be relieved with mass migration to cities where “proper” economic activities in the service and business sectors can be undertaken.

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