Since cities are of such great economic performance, it follows that their efficient functioning influences future national economic growth. It is also being recognized that poverty in developing countries is not confined to rural areas and that there are significant levels of urban poverty. This drift to urban areas which can be explained from the economic standpoint, causes a number of problems which if unresolved will limit the ability of the city to support the population. The rapid increase in population causes a shortage of facilities to meet the increasing demand in such services as adequate housing, water supply, sewage facilities, power, health care and public transport. Transportation is important in both economic and social terms.
Transport policy can influence the development of urban areas in both the short and longer term.
Enlightened transport policy can assist in alleviating endemic traffic congestion which causes significant disruption to business and commercial activity and causes higher than necessary distribution costs in urban areas. Transportation policy can influence the growth of urban areas thus substantially reducing costs for infrastructure and services by using what exists more efficiently. Inexpensive access to income generating opportunities is important to the urban poor as this is the key to progress up the economic ladder. Those confined to walking or cycling to work have more restrictive opportunities for employment. In most large cities in the region, public transport services are affordable thus increasing employment opportunities.