The Process of Rural-Urban Migration in Developing Countries

The Process of Rural-Urban Migration in Developing Countries

by Machel McCatty

An Honours essay submitted to Carleton University in fulfillment of the requirements for the course ECON 4908, as credit toward the degree of Bachelor of Arts with Honours in Economics.

Department of Economics Carleton University

Ottawa, Ontario

May 11, 2004

TABLE OF CONTENTS

Page

1.0

Introduction ……………………………………………………………………..1 1.1 Background……………………………………...............................................4

2.0

Causes of Rural-Urban Migration.......................................................................6 2.1 Issues Faced in Rural Areas……………………………………….................6 2.2 Migration Forces…………………………………………………..................8 2.3 Poverty and Lack of Opportunities in Rural Areas…………………………..9 2.4 Urban Job Opportunities……………………………………………………..10 2.5 Urban Informal Sector……………………………………………………….11 2.6 Government Policies Creating Urban Bias…………………………………..13

3.0

Benefits and Costs of Urbanization…………………………………………….13 3.1 Benefits………………………………………………………………………13 3.2 Costs………………………………………………………………………….14

4.0

Models……………………………………………………………………………16 4.1 Migration and the Dual Sector Model of Economic Development………….17 4.2 The Family/Household Migration Model……………………………………20 4.3 Choosing the Best Strategy…………………………………………………..23 4.4 Todaro Model of Migration………………………………………………….25

5.0

Policy Implications of Rural-Urban Migration……………………………….28 5.1 Policies and Politics………………………………………………………….28 5.2 Appropriate Policies………………………………………………………….29 5.3 Policies to Reduce Urban Bias - Promoting Rural Development……………29 ii

Page

5.4 Pricing Policies………………………………………………………………30 5.5 Promotion of Secondary Cities………………………………………………31 5.6 Decentralization……………………………………………………………...32

Case Studies……………………………………………………………………………..33 6.0 Case Study: Bolivia……………………………………………………………...34 6.1 Country Statistics……………………………………………………………34 6.2 Rural-Urban Migration in...