Urbanization and amazing change
There is evidence that the emergence of cities in the world is a process that has taken place since ancient times. According to that, the emergence of cities or urban settlements is a process that existed during the collapse of historical human civilization. Mohendojaro and some ancient cities such as Rome are examples.
Different terms are used to define a settlement as a city. Generally, the areas with abundant infrastructure and commercial relations where various economic and cultural activities are concentrated are called cities. In the early days, the rural areas are often transformed into cities by the gradual development of infrastructure and the integration of various services. The constant migration from rural areas to cities in the hope of enjoying the various facilities that are concentrated in urban settlements is also a major reason for the growth of cities.
The number of people living in urban settlements out of the total population of the world or any country is called urban population. The gradual increase in the percentage of population in areas defined as urban population is called urban growth. When quantifying urbanization, the size of the urban population is expressed as a percentage of the total population.
Urbanization is a powerful social change in the world. It is a factor affecting the distribution of the population of a country as well as the world. Every country in the world can see a degree of urbanization. To be considered an urbanized country, the urbanization index of that country must exceed fifty percent. Today, the urban population is more important than the rural population in the world population. According to the United Nations urban data reports, in 1950 the urban population was 30% of the total population of the world. But by the year 2018, it is said that the urban population has grown to 50% of the total population of the world. By 2050, the urban population is expected to grow to 68% of the world's total population.
Urbanization process
Rural-urban migration
People constantly migrate from rural areas to urban areas in search of urban facilities and employment. The pull factor from urban areas is mainly due to this, overcrowding in urban areas and the gradual growth of suburbs around major cities.
Especially in developing countries, rapid urbanization is a factor that has had a stronger impact on migration. The concentration of economic, commercial, administrative, educational, and recreational opportunities and services in cities has led to rural-urban migration.
The natural growth of the urban population
The natural growth caused by the difference between the birth and death rates of the population in urban areas means that the population in urban areas is increasing and therefore the natural growth rate in urban areas is high.
Change in administration limits
The naming of land areas as cities for administrative purposes also happens in many countries. This is a factor affecting the increase in the level of urbanization, while international migration of people to urban areas is also a factor affecting the urban process. There is a high population migration to the developed countries of the world due to job opportunities and educational opportunities.
Positive characteristics of urbanization
It is generally accepted that urbanization is a fundamental feature of a country's development. But it is also a noticeable feature that urban poverty has become a serious problem in many developing countries. As there is a strong relationship between urbanization and economic development, urban areas contribute more than 80% to the gross national product at the global level. They also play a significant role as places that provide various opportunities including employment.
Job Opportunities
There is a possibility of attracting the rural population due to the abundance of employment opportunities in the industrial, commercial and service sectors, especially in the urban areas, so the cities help the people to get a high-paying job and a high standard of living. Due to rapid industrialization especially in developing countries, employment opportunities are common in the urban areas, therefore the availability of job opportunities is a major factor in attracting local and foreign migrants to the cities. Below are listed companies and their locations.
Below are some of the most attractive business companies in the world.
Technology and IT
1. Apple Inc – Cupertino, California, USA
2. Microsoft Corporation – Redmond, Washington, USA
3. Google (Alphabet Inc.) – Mountain View, California, USA
4. Amazon – Seattle, Washington, USA
5. Facebook (Meta Platforms) – Menlo Park, California, USA
6. IBM – Armonk, New York, USA
7. Samsung Electronics – Suwon, South Korea
8. Intel Corporation – Santa Clara, California, USA
Finance and Banking
1. JPMorgan Chase – New York City, New York, USA
2. HSBC – London, United Kingdom
3. Goldman Sachs – New York City, New York, USA
4. Citigroup – New York City, New York, USA
5. Barclays – London, United Kingdom
Automotive
1. Toyota Motor Corporation – Toyota City, Aichi, Japan
2. Volkswagen Group – Wolfsburg, Germany
3. Ford Motor Company – Dearborn, Michigan, USA
4. BMW – Munich, Germany
5. Tesla, Inc. – Austin, Texas, USA
Healthcare and Pharmaceuticals
1. Pfizer – New York City, New York, USA
2. Johnson & Johnson – New Brunswick, New Jersey, USA
3. Novartis– Basel, Switzerland
4. Roche – Basel, Switzerland
5. AstraZeneca – Cambridge, United Kingdom
Retail and Consumer Goods
1. Walmart – Bentonville, Arkansas, USA
2. Procter & Gamble (P&G) – Cincinnati, Ohio, USA
3. Unilever – London, United Kingdom & Rotterdam, Netherlands
4. Nestlé – Vevey, Switzerland
Energy and Oil
1. ExxonMobil – Irving, Texas, USA
2. Royal Dutch Shell – London, United Kingdom & The Hague, Netherlands
3. BP (British Petroleum) – London, United Kingdom
4. Chevron Corporation – San Ramon, California, USA
5. Saudi Aramco – Dhahran, Saudi Arabia
Telecommunications
1. AT&T – Dallas, Texas, USA
2. Verizon Communications – New York City, New York, USA
3. Vodafone Group – Newbury, United Kingdom
4. China Mobile – Beijing, China
Knowledge and technology
Cities are also important as centers of knowledge and technology. Many of the world's major universities and research centers are located around major cities, such as Cambridge and Oxford University. In both developed and developing countries, schools, major schools, universities, other higher education institutions, and research institutions are centrally located in major cities, so cities play a major role as centers of knowledge and technology. Both local and foreign students have been given educational opportunities in the vicinity of the city.
1. Massachusetts Institute of Technology (MIT) - Cambridge, Massachusetts, United States
2. Stanford University - Stanford, California, United States
3. Harvard University - Cambridge, Massachusetts, United States
4. California Institute of Technology (Caltech) - Pasadena, California, United States
5. University of Oxford - Oxford, United Kingdom
6. University of Cambridge - Cambridge, United Kingdom
7. ETH Zurich (Swiss Federal Institute of Technology) - Zurich, Switzerland
8. Imperial College London - London, United Kingdom
9. University of Chicago - Chicago, Illinois, United States
10. University College London (UCL) - London, United Kingdom
Contribution of the informal sector
The informal sector, also known as the shadow economy or gray market, plays a key role in the global economy. It includes a wide range of economic activities that are not regulated by the government and are not usually included in formal economic statistics. Despite its unofficial status, the informal sector contributes significantly to employment, income generation, and economic resilience in many countries.
The informal sector is an integral part of the global economy, providing livelihoods to millions of people worldwide. According to the International Labor Organization (ILO), about 2 billion people, representing 61% of the world's workforce, earn their income through informal sector activities. This sector is particularly prominent in developing regions such as Africa, the Arab States, Asia and the Pacific, where formal employment opportunities are limited. For example, the ILO reports that 85.8% of the labor force in Africa, 66.6% in the Arab States and 68.2% in Asia and the Pacific are engaged in informal work. The informal sector remains significant even in regions with more developed economies such as the Americas (40%) and Europe and Central Asia (25.1%).
Economic contribution
The informal sector contributes to the economy in several ways:
1. Job creation The informal sector is a major source of employment, especially in developing countries where formal employment opportunities are scarce. It absorbs a large part of the workforce, including those who cannot find formal employment due to lack of skills, education or other barriers. This sector provides employment in various sectors such as agriculture, construction, retail and services, thereby reducing unemployment and underemployment.
2. Income generation The informal sector is a major source of income for many households. It enables individuals to earn a living through small-scale businesses, self-employment, and casual work. This income is critical to the survival and well-being of families, especially in areas with high poverty rates. Money generated in the informal sector often circulates within local communities, stimulating economic activity and supporting other informal businesses.
3. Flexibility and Resilience The informal sector is characterized by its adaptability and resilience. It can respond quickly to economic changes and give people the opportunity to earn an income even in times of crisis. For example, during economic downturns or natural disasters, the informal sector often expands when people turn to informal work to cope with job losses and lower incomes. This flexibility helps stabilize economies and support recovery efforts.
4. Entrepreneurship and Innovation The informal sector is a hotbed for entrepreneurship and innovation. Many successful businesses started as informal businesses before transitioning to the formal economy. The informal sector allows people to experiment with new ideas, products, and services without the constraints of formal regulations. This entrepreneurship contributes to economic growth and diversification.
Challenges and issues
While the informal sector offers various benefits, it also faces several challenges:
1. Lack of Social Security Workers in the informal sector often lack access to social security programs such as health insurance, pensions, and unemployment benefits. This leaves them vulnerable to economic shocks, health crises and other risks. A lack of social protection can lead to increased poverty and inequality.
2. Poor working conditions Employment in the informal sector is often associated with poor working conditions, including low wages, long hours and unsafe environments. Workers may face exploitation and have limited opportunities for skills development and career advancement. Improving working conditions in the informal sector is essential to ensure the well-being and dignity of workers.
3. Limited Access to Finance Informal businesses generally have limited access to formal financial services such as loans, credit and banking facilities. This limits their ability to invest, expand and improve their operations. Lack of access to finance makes it difficult for informal entrepreneurs to formalize their businesses and achieve long-term sustainability.
4. Regulatory Barriers The informal sector operates outside of the formal regulatory framework, which can create legal and bureaucratic barriers for informal workers and businesses. These barriers can include complex registration processes, high taxes and restrictive regulations. Simplifying and streamlining regulatory procedures can encourage informal businesses to migrate to the formal economy.
Policy implications and recommendations
To harness the potential of the informal sector and address its challenges, policymakers should consider the following recommendations.
Improving Social Security Social Security programs should be extended to informal workers to improve their economic security and well-being. This could include introducing affordable health insurance schemes, pensions, and other social safety nets. Expanding social security coverage can help reduce poverty and inequality.
Improvement of working conditions Efforts should be made to improve working conditions in the informal sector. This may include enforcing labor standards, providing training and skills development programs, and promoting occupational health and safety. Ensuring decent employment in the informal sector can increase productivity and contribute to economic growth.
Facilitating Access to Finance Increasing access to finance for informal businesses is critical to their growth and development. Government and financial institutions can develop innovative financial products and services according to the needs of informal entrepreneurs. This could include microcredit, mobile banking, and digital payment platforms. Expanding financial inclusion can support entrepreneurship and economic diversification.
Simplifying regulatory frameworks: Streamlining regulatory procedures and reducing bureaucratic barriers can encourage the formalization of informal businesses. Governments can introduce simplified registration processes, tax incentives, and support services to facilitate the transition to the formal economy. Creating a favorable regulatory environment can promote business growth and formalization.
conclusion
The informal sector is an integral part of the global economy and provides employment, income and economic resilience to millions of people. While it faces challenges such as lack of social protection, poor working conditions, and limited access to finance, targeted policies and interventions can unlock its potential and promote inclusive economic development. By recognizing and addressing the needs of the informal sector, governments, and stakeholders can create a more just and prosperous future for all.
International relations
International relations, relations in global organizations, and multinational companies are very important. Those connections are important for various Sectors, Education, cultural activities, business, and links. Those connections will increase cooperation between the world's cities and help ensure that they overcome common challenges such as natural disasters and global climate change.
For example, look at the C40 Cities collection. 70 of the world's largest cities have come together to organize this Greenhouse Gas Emissions and Environmentally Friendly Association.
These relationships enable cities around the world to work together to identify environmentally friendly, climate-smart, and nature-friendly strategies for a safe and sustainable future.
Cultural Diffusion
The diffusion of cultural beliefs and various social practices from one group to another is called cultural diffusion. Accordingly, the mixing of different cultures takes place through different races or groups of people. Urban groups contribute to cultural diffusion to a large extent.
Beliefs and values ​​In cultural diffusion, the beliefs and values ​​of one group can be constructed in another group. Thus, popular and peaceful shows, movies, music and literature can spread this.
Encompassing various words used in the English language and other languages. Also, globally English is a language with maximum depth, which is screened for other languages.
Although Australia is a country based on aboriginal culture, British culture is still important today, and the legends and beliefs of these countries come together in Australian society.
Jazz and reggae music that originated in Africa and the Caribbean can be cited as an example of the spread of certain music styles around the world.
Australia is a country based on aborigine culture, but nowadays a British culture has spread to a large extent.
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