Impacts of rapid urbanisation - advantages and disadvantages
India's economic changes have caused rapid urbanisationA growth in the urban population, usually resulting in the extension of towns or cities.. This has several advantages and disadvantages.
Advantages
- The increase in population in urban areas creates a skilled workforce that attracts trans-national corporation (TNC)A company that operates in many different countries. creating jobs for example in call centres and software millAn office building in India where computer science graduates write software for banks and other financial service industries. (Instead of producing a manufactured product as textile mills would, they produce software.). This increases the wealth of the country and through the multiplier effectThis occurs when a positive change happens, which then has a knock-on effect on other businesses. For example a new office may open, which leads to an increase in lunchtime sandwich sales at the local café and more bus passengers. and also creates other jobs for less skilled people.
- The increase in wealth is used to develop both secondary and university education, further increasing the skills base of the urban area. This triggers cumulative causationAn economic theory that shows how when one industry locates in an area (such as a car plant) other industries (such as car part manufactures) locate in the same are increasing the size of the economy of the area. and the creation of Indian high tech companies.
- The increase in wealth is used to develop sanitation within the urban areas reducing water-borne diseases and so reducing infant mortality rates.
Disadvantages
In some cases this rapid urbanisation happens too fast for the city authorities to cope with. This can result in a lack of affordable accommodation causing many recent migrants from rural areas to rely on self-built housing such as Dharavi in Mumbai. The growth of Dharavi and other slums can create many problems - for example inadequate waste disposal, high incidences of disease and conflict. Rapid urbanisation also puts pressure on transport systems and job opportunities. This can result in people working in poor conditions, for long hours and low pay.