Urban poverty results because in many countries, national and local governments cannot plan for the population increases, and fail to provide the required infrastructure, services and jobs. Good governance is needed for sustainable urban development. It requires stronger roles for citizen groups, community organizations and NGOs. The Habitat report says that the shift from agriculturally based to industrial and service- based economies has caused an irreversible movement to cities and the urbanization of rural areas. Urban areas offer a higher life expectancy and lower absolute poverty, and can provide essential services more cheaply and on a larger scale than rural areas.
Cities have many other advantages.
The high population densities mean lower costs per household and per enterprise for the provision of water, waste disposal and health care. Cities can also provide emergency services much more quickly than rural settlements. In addition to their ability to provide health and social services, cities foster opportunities for greater education. This improved education often leads to reduced birth rates. Thus, urbanization will help reduce population growth.