Monday, October 29, 2012

Chart of the Day

As a general rule, urbanization goes hand in hand with economic growth. But general rules are made to be broken. This chart was taken from the latest World Development Report (2013 p.53).

[Image Credit: The Economist]


Walt French said...

Of the only-three examples that actually run counter to the “general rule,” you have (1) Liberia, subject of a long-running, devastating civil war; (2) Zimbabwe, the world's poster child for kleptocracy and financial mismanagement (drought also played an important role in exodus from agriculture); plus (3) Madagascar, also the unfortunate subject of multiple political upheavals and now under a government not recognized by the international community.

Methinks unintentionally you have highlighted that economic development proceeds best under stable governments that move in democratic directions. Oh, and that sensible policies, such as China's efforts to prevent the rural poor from migrating en masse into urban slums, also might help.

Those rules are long-standing and not broken by such cherry-picked examples as shown here.

Urban Demographics said...

Nice point Walt. Political instability messes up with pretty much anything.