The Paradox of Urbanization and Industrialization: Why More Industry Means Less Urban Population

Urbanization and industrialization are two major processes that have shaped the modern world. They are often seen as interrelated and mutually reinforcing, as industrialization creates economic growth and job opportunities that attract people to urban areas, while urbanization provides a skilled and educated workforce, infrastructure, and markets for industrial development. However, this relationship is not always linear or positive. In some cases, the percent of urbanized population is inversely related to degree of industrialization, meaning that more industry leads to less urban population. This article will explore some of the reasons and implications of this paradoxical phenomenon.

The Definition and Measurement of Urbanization and Industrialization

Before delving into the analysis, it is important to clarify what urbanization and industrialization mean and how they are measured. Urbanization is the process of population shift from rural to urban areas, usually accompanied by social, economic, and environmental changes. Industrialization is the process of transforming an agricultural economy into a manufacturing one, characterized by mass production, mechanization, and specialization.

There are different ways to measure urbanization and industrialization, depending on the data sources and indicators used. For urbanization, one common measure is the percentage of population living in urban areas, which can be defined by various criteria such as population size, density, administrative boundaries, or economic activities. For industrialization, one common measure is the percentage of GDP generated by the industry sector, which includes manufacturing, mining, construction, and utilities.

Using these measures, we can compare the levels of urbanization and industrialization across countries and regions. For example, according to the World Bank data for 2019¹, China had an urban population of 60.6% and an industry share of GDP of 39.5%, while India had an urban population of 34.5% and an industry share of GDP of 23.3%. These figures suggest that China is more urbanized and industrialized than India.

The Factors Behind the Inverse Relationship Between Urbanization and Industrialization

However, these measures do not capture the dynamics and complexities of urbanization and industrialization processes. In some cases, there may be an inverse relationship between urbanization and industrialization, meaning that more industry leads to less urban population. This can happen due to various factors, such as:

• The nature and location of industrial activities: Some industries may be more capital-intensive than labor-intensive, meaning that they require more machines and equipment than workers. This can reduce the demand for labor and hence the attraction of urban areas. Moreover, some industries may be located in rural or peri-urban areas due to lower land costs, environmental regulations, or proximity to natural resources. This can also reduce the migration from rural to urban areas.
• The quality and availability of urban services: Some urban areas may have poor or inadequate services such as housing, transportation, health care, education, water supply, sanitation, waste management, or security. This can lower the quality of life and increase the costs of living in urban areas. Moreover, some urban areas may have limited or restricted access to services due to social exclusion, discrimination, or segregation. This can also discourage people from moving to or staying in urban areas.
• The policies and institutions governing urbanization and industrialization: Some policies and institutions may hinder or constrain the development of urban areas or favor the development of rural areas. For example, some policies may impose taxes or regulations on urban activities or provide subsidies or incentives for rural activities. Some institutions may lack the capacity or authority to plan or manage urban growth or provide adequate services for urban residents. This can also affect the balance between urbanization and industrialization.

The Implications of the Inverse Relationship Between Urbanization and Industrialization

The inverse relationship between urbanization and industrialization has significant implications for both economic development and social welfare. On one hand, it may indicate a more efficient use of resources and a more balanced distribution of income and opportunities between rural and urban areas. On the other hand, it may also reflect a lack of dynamism and innovation in both sectors and a failure to address the challenges and needs of both populations.

Therefore, it is important to understand the causes and consequences of this phenomenon and adopt appropriate policies and strategies to foster a more harmonious and sustainable relationship between urbanization and industrialization. Some possible actions include:

• Promoting more labor-intensive and environmentally-friendly industries: This can create more jobs and income for both rural and urban workers while reducing pollution and greenhouse gas emissions.
• Improving the quality and accessibility of urban services: This can enhance the living standards and well-being of urban residents while reducing inequality and exclusion.
• Strengthening the coordination and cooperation between rural and urban areas: This can facilitate the exchange of goods, services, information, technology, and ideas between both sectors and regions.

Conclusion

Urbanization and industrialization are two major processes that have shaped the modern world. They are often seen as interrelated and mutually reinforcing, but in some cases, they may have an inverse relationship, meaning that more industry leads to less urban population. This phenomenon can be explained by various factors such as the nature and location of industrial activities, the quality and availability of urban services, and the policies and institutions governing both processes. This phenomenon has significant implications for both economic development and social welfare, and requires appropriate policies and strategies to foster a more harmonious and sustainable relationship between urbanization and industrialization.