Reason New Cities Support Poverty Eradication

Poverty indicates a decline in economic activities – be it in economies, homes, or individual’s life. It has long been projected that there would be population explosion by 2050 in many countries. And if economic activities do not grow alongside this projected growth, poverty would increase in these economies. So how can the economy be grown to cushion the effect of this projection?

In addition to reforms in sectors such as education, energy, transport, housing and environment, city planning, industrialisation and trade must be made critical parts of governance to overcome economic challenges as population grows. Without, reliable data to measure real economic performance, plan, and drive improvements in many economies, it is hard to project the exact rate of poverty eradication but you can project the rate of wealth creation and increase in disposable income. It was found that in rural Kagera, Tanzania during 1991/4–2010, one in two individuals/households who exited poverty did so by transitioning from agriculture into the rural nonfarm economy or secondary towns and this is likeable to growing unplanned cities.

As people shift out of agriculture to more remunerative activities off the farm, or into mechanized farming and outside the rural areas, a positive virtuous economic dynamic could be set in motion, with new opportunities being generated, by attracting migration and convergence of people; thus forming new cities, increase in trade and movement of people. Therefore, wealth creation in an economy could come by commitment, policy, and planning. It could come by way of acquiring relevant marketable skills, working, investing, writing, resourcefully adapting, and through other key economic activities such as trading that support circulation of money, empowerment of people and increase in disposable income in evolving economies. One of such is the building of new cities to improve living standards, create employments, deliver affordable mobility, improve health and education of the populace.

Cities are usually designed, planned, and built to withstand current and future economic pressure because of human activities, growth and other activities that affect the surroundings. Because cities have economic hubs and recreational parks amongst many others to provide skilled, highly skilled and semi-skilled jobs, businesses and improve lives, poverty is reduced in them or through activities that take place in them directly or indirectly even if they are remote. Even when not planned or designed, it is a fact that the more economic activities in an area, the more it turns into a city over time. Many of such unplanned cities are found in developing and emerging economies obviously due to policy priorities, economic focus, and governance competence.

As movement of people increase with increase in trade and search for economic well-being across the world, developing and emerging economies will continue to manage the development of new cities weather planned or unplanned.

Why? Because people will always (or attempt to) develop, grow wealth, and/or, become rich enough to be contempt and live, at least, above poverty line. The need for increase in disposable income, will drive many in cities into creativity, innovation, foreign trade, and trade relations, and into highly paid employments. City growth and development could therefore be linked to personal growth and development, employment, money in circulation, and governance priority and economic focus at any time. For example, planned cities would ordinarily have industrial strategies in its economic blueprint that nowadays should emphasis on creativity, resourcefulness, power of thoughts, technology, and innovation as well as adaptability measures. This in turn means there would be more money in people’s hands, more employments, and more wealth.

Planned cities have far more economic values than unplanned cities. For example, planned cities have lesser congestion, more resources, more customers for good and services, access to standard basic amenities, and can indeed withstand greater pressure – be it environmental, social, industrial, job creation and/or population - than unplanned cities would. Planned new cities, therefore, offer quicker way to live above poverty line than unplanned new cities.

The big question is will new more cities be planned, and at what rate – be it in developed, developing and emerging economies ahead of the projected population growth?