Economic growth within many developing countries through the 1970’s was promoted through tariffs and subsides, which were designed to help developing countries’ supply their own domestic markets, while reducing their dependency on their primary exports. Urbanization in developing countries was promoted through import-substitution industrialization (ISI). During such time of economic gain, developing countries were experiencing urbanization; some even running the risk of over-urbanization, although it was thought to be too early to be concerned with such an idea. However, today’s evidence further suggests over-urbanization in developing countries.
While there have been other studies conducted, focusing more on the social and economic problems that come along with over-urbanization it was too early to be making such predictions, the countries were growing economically during the early 1970’s. However, the period of growth is over and now many countries are faced with the problem of urbanization. Bryan R. Roberts’ article, “Urbanization, Migration, and Development” examines the effect of the new international division of labor on the process of urbanization in the third world, more specifically Latin America. Roberts suggests that the urbanization, which is currently underway, is different from what existed before the 1970’s and that it is apparent that the world economy of today has increased the level of urbanization, leading to over-urbanization. As a result, the developing countries have become more and more financially dependent on the developed countries. “Loans are tied to policy requirements that severely limit the capacity of the governments of developing nations to intervene in urbanization and ameliorate its negative consequences” (666). The need for financially support from the government’s of the developing countries consequently leaves them powerless against the fight on urbanization.
By limiting himself to Latin America he is unable to examine the other developing countries’ histories and how that may have affected the timing and degree of urbanization within each, especially those countries that were less committed to ISI. Therefore Roberts starts by looking at the other non-core, developing, countries and any patterns of urbanization that may be found.
THE PATTERN OF URBANIZATION IN NONCORE COUNTRIES:
Noncore countries have gone through many different patterns of urbanization, both timing and the process of incorporation into the world economy provides the basis to understanding how a country’s history influences urbanization, particularly the array of changes in agriculture. From different geographical regions Roberts studied, he is able to divide the countries into five basic groups based upon when and how each was incorporation into the economic order. The first type Roberts discussions includes those areas that were incorporated the earliest. These regions have the highest levels of urbanization and therefore experienced the most extreme change in rural social relations. The various areas of Latin America fall into these type of incorporation.
The second type occurred mainly in India and China were internal markets had already been well established, thus upon entering into the new world system their economies were not reconstructed by incorporation. Therefore the rates and levels of urbanization were low. The Northern African experience is described by the third type of incorporation, although similar to India and China timing in response to change, the Northern African nations depend greatly upon external trade which in turn increases their levels of urbanization. The contrast of these regions, type two and three, exemplify the idea that the greater one’s reliance upon the international economy, the greater the levels of urbanization will be. The fourth type refers to Tropical Africa and South East Asia, which are characterized by fairly early incorporation, “with uneven restructuring, resulting in “islands” of export agriculture or mining amidst subsistence cultivation”, with low levels of urbanization, but high rates of urbanization. (669) And the fifth and final type, describes the newly incorporated Asian economies experience. These regions attracted foreign investment, which resulted in high rates of urbanization, in part with the political economy of the Cold War.
Two important factors to which variations of urbanization depended upon, which were not included in the five types were: 1) the central government’s ability to hold its country together against regionalism, and 2) “the strength of the “challenge” that the state faces from the emerging urban classes – the working class and also the middle class” (670). Such factors varied upon nations, but were key when determining the urban transformation. For example, when comparing Latin America to South Korea one is able to see the importance of such factors. Latin America’s labor force was well organized and politically involved, unlike parts of Asia. Therefore, the urban classes received support through subsides, union organizations and welfare, which consequently making it a less desirable site for the exportation of industrial assembly.
THE NEW WORLD ORDER AND URBANIZATION:
There are assortments of implications of the current transformation to a new world system for urbanization. Multinational corporations “operate a global strategy in which their various divisions are divided spatially: headquarters in one city, regional headquarters in another, and manufacturing or service delivery plants in yet other cites” (671). These corporations that operate on a global strategy have no real commitment to one particular city, therefore corporations often relocate according to the most cost-effective strategy, where the labor maybe cheaper, more available labor, or a lower tax rate. This also affects labor markets; cities of different hierarchy levels have different occupational structures. “Those “world” cities, such as New York or London, and particularly those of their centers, ten to polarize between well-paid professional and technical jobs, mainly concentrated in producer services, and low-paid unskilled jobs in personal service occupations, “sweatshop” manufacturing, and domestic out-work” (671).
The shift in development from the ISI phase to the new phase of economic liberalism in another important factor to take into account. “ISI created economic dependency through the investment of multinationals and the use of imported technology, but it was inward looking and aimed basically at the development and exploitation of the internal market” (672). Along the same lines, there were to key factors that played into urbanization: 1) the economic dependency on internal and fragmented markets, and 2) the dependency based upon the world markets. (672) Urban bias creates the foundation for “populist coalitions” which took place between the state, urban classes, and the industry. At the same time there were other urban classes that did not play as important of a role in the populist coalition received many benefits such as: health services, education services, and other subsides. During this period state employment increased dramatically, more specifically at around the major cities.
URBAN DIVERSIFICATION:
Gradual decline of urban primary is likely to be one of major consequences of the new order, where it was once pronounced and secondly, the growth of the intermediate-sized cities. The concentration of population and industrial activity was great during the period of ISI. When looking at Latin America between the years of 1970 and 1980 there was decline in the urban population along with an increase in the “intermediate-cities”. “This broadening of the urban hierarchy is both encouraged by and encourages the new international division of labor. Many noncore countries now have a range of cities with sufficient population and adequate infrastructure to support export industrialization” (673).
During the ISI period, the spatial segregation of classes come to an end and in main situations reversed; the middle class now seeks low-income accommodations, while the low-income families chose to settle close to their places of work. Thus the contrasts are now among the types of cities and the income/living opportunities that are offered to them. And lastly, noncore countries are likely to take different paths in terms of urbanization. Through ISI some countries were left out of urbanization for they were not as attractive to foreign investors as others.
THE CHANGING CHARACTER OF MIGRATION:
A high rate of population mobility is another major implication of the new world order. As some regions prosper and other stagnate due to the increasing economic integration of the new world system, which leads to labor shortages and abundance. And through multinational corporations there is an increase demand for low-waged labor and in the case that such labor is not available locally, international migration is promoted. While this may appear to look negative for the country, “emigration not only does little to diminish population growth in noncore countries, but it is mainly directed at densely populated areas of already developed countries” (677).
During the early years of ISI, the conditions were created to which the rural populations of noncore countries are to be displaced. The economic foundation of peasant agriculture has in large part been destroyed as a result of the distorted policies towards agriculture, however the new world system is working to change that. During the ISI migration was mostly rural to urban, while under the new world order, the migration dominant form of migration appears to be urban to urban. Similarly, urban to rural migration plays an important role as we see production jobs moving to the outskirts of the cities. Although the change in the migration pattern is important and has significant effects on social organization, it is not likely to strengthen the communal solidarities, thus adding racial conflict.
CHANGES IN LABOR MARKETS:
Labor market changes brought upon the new world system can be described as “casualization of labor in both core and noncore countries” (678). This process is a direct result of economic liberalism policies, which in turn has lead to a deregulation of labor worldwide. The goal of such policies for core and noncore countries alike is to lower costs and increase competitiveness bye increasing the percentage of females in the labor force. However, during the ISI period, self- and family employment dropped greatly.
“The expansion of informal enterprises was closely related to the expansion of formal ones; profits, pay and conditions of work improved in the informal sector in line with the expansion of the formal sector” (680). During the ISI period, such hand-in-hand expansion was common, unlike today, a couple of reason why are as followed: first, there is less of an emphasis on internal markets as there is on exporting goods. Secondly, within urban areas, there is increase in the cost of services/living. More over, during the ISI the informal markets have much more flexibility, which allowed the people to use it to their advantage. However, in comparison, in the new world order, the informal economies lose its social and economic dynamic. Thus the most likely outcomes in the noncore countries are occupational diversity and polarization.
URBAN SOCIAL ORGANIZATION AND SOCIAL MOVEMENTS:
Changing in migration, labor markets and spatial organization within the cities of noncore countries that affects the way people act. During ISI, “family and community networks served as a frequent substitute for state-provided welfare, providing help in emergencies and pooling resources to obtain housing, employment, or to generate small business” (681). More specifically, in Latin America, there was difference between the cities with well-established lively economies and those that were not in the strength of social organization. Roberts goes on to argue that it is not urbanization or the level of employment within factories that makes the difference towards the organization of households, but the context to which “proletarianization” and now available opportunity to earn wages and consume that the general changes are based upon. Moreover, during the ISI period, migrates and natives, alike, are faced with the challenge of creating a household while their struggles becomes one of the main political topic up for discussion. Under the new world order, much of the urban population is made up my natives to the city and their possibilities for mobility are declining.
CONCLUSION:
Roberts successfully lays out the ways to global economic system has impacted urbanization in the Third World. Staring with the ISI, the Third World countries’ urban population began to grow as a result of the world economy. Consequently, the noncore countries became increasingly dependent of the developed, first world countries. The new world order leads to other consequences such as: urban diversification, social organization, and different levels of migration. However, there are negative implications, both social and political, that come with this level of urbanization. And, more importantly urbanization will continue to rise along as the world economy continues to support the third world’s dependency.
Roberts, Bryan R., “Urbanization, Migration and Development”, Sociological Forum, Vol. 4, No. 4, Dec. 1989, pp. 665-691