Urbanization And Development: How Advanced And Emerging Economies Face Distinct Challenges

Western countries are struggling with what Ricard Florida, an urban development expert, has called "the new urban crisis" in his most recent book (Read excerpt here). The gist of the argument is that in recent years, the young, educated, and affluent have moved back to the cities and reversed decades of urban decline and flight to the cities' suburbs. 

This is generally a force for good, as dense concentrations of people favor increased productivity and innovation, as well as more efficient use of resources and public service provision. But all is not well, as leading cities are also struggling with challenges including rising land prices, unaffordability and gentrification, and inequality.

In the developing world, however, the gap between highly-productive cities and the people living in pockets of utter exclusion and poverty within them are starker. 

The Latin American Experience

Latin America, in particular, is one of the most urbanized regions on the planet, and some of its larger cities have become centers of economic activity. At the same time, however, a whopping 110 million people live in slums in Latin America. "Far from offering a pathway to opportunities, these slums often become poverty traps, as people are packed in vulnerable housing, disconnected from productive economic activity, and often partially excluded from basic services," Global Americans' Javier Gutierrez writes. 

A few cities in Latin America, such as Bogota and Curitiba, lead the way in creating effective transit systems and moving toward a compact, mixed-use style of development, Gutierrez explains. But most other places in the region suffer from inneffective connectivity, sprawl, and lack of affordable housing – most were also designed for cars, rather than pedestrians. These more chaotic places must adapt and deal with the many challenges of urbanization in order to ensure their inhabitants can improve their standards of living.