It leads to improvements in the living standards of a considerable part of the world s population. Most countries with high rates of urbanization during the last decade also experienced economic growth. In addition, an increasing number of cities have taken on significant roles in globalizing the economy, in terms of financial markets, trade and commerce. Poorly-managed cities lead to the deterioration of urban living conditions. 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. Massive urbanization is the only way the world can survive the massive population increase, says Mathias Hundsalz, Ph.D., who coordinated the report. Urban areas offer a higher life expectancy, lower absolute poverty, and can provide essential services more cheaply and on a larger scale than rural areas. The problem has never been that cities are worse places to live they are in fact much better for the poor the problem is that cities have more and more people living in them and relying on their services.