As a result, cities play an increasingly important role in the economic standing of nations. Urban areas, with their anonymity and fast pace, can be unconducive to societal cooperation. In many cases, interactions between parties are not repeated and therefore there is no incentive to develop reciprocal relations. In urban settings, people tend to cluster together in small communities and networks of support, but trust and goodwill for those outside immediate groups is minimal. Inequality and Social Exclusion Nowhere is inequality more apparent than in urban areas where the rich and poor live and work in close proximity to each other, but rarely develop relationships.
Inequality can threaten social cohesion.
Housing and Isolation Inequality is exemplified and sometimes exacerbated through housing. Many urban poor live in slums or ghettos which are physically isolated from business, health facilities and public transportation. The spatial isolation of the poor is compounded by social isolation. The rich and the poor rarely participate in the same activities, groups and associations. They do not have social ties to one another.