The Economics of Geographical Concentration

The process of urbanisation in both the developed Western world and the less developed areas of Africa, Asia and South America is creating immense difficulties for urban authorities. Before looking at these problems, it is first important to understand the economic forces at work causing this expansion in the urban population. The explanation is not simple and is not entirely economic in nature. The reasons why urbanisation occurs are complex and it would be incorrect to pretend that they are yet fully understood; nevertheless, some general principles are beginning to emerge.