Development of a society and economy is a dynamic process. The resulting population settlement is ongoing, not static, so the actual boundaries of rural and urban areas are constantly shifting. Spatial mobility allows individuals to respond to economic opportunity and helps to manage risks. Spatial agglomeration is good for both rural and urban populations. The increased concentration of population and economic activity through the process of urbanization reduces costs of production and service delivery, enlarges markets for goods and services, and creates a wider labor pool.
Urban areas account for the major share of income growth in most countries and of fiscal revenues.
Rural areas can often be more prosperous and productive when they are close to urban centers which provide major markets, financial resources, and employment options. Healthy and buoyant urban economies are essential not only to eliminate poverty within their own boundaries but also to create prospects for eliminating rural poverty altogether. The poor in both settings often rely on such multiple livelihoods and on social safety nets based in both locations. To escape poverty some, or all members of some rural households, especially from areas that are particularly resource-poor or with high transport costs, may have to move to where economic prospects are greater. How the country manages the shifts of economic structure and demographics, will affect the growth, nature, and persistence of poverty in both rural and urban locations.