1 / 13

Migration and Urbanization

Migration and Urbanization. Koichi Fujita CSEAS, Kyoto University Japan. The Farm Problem after The Food Problem. Food problem The supply of food lags behind the demand for food.

vita
Download Presentation

Migration and Urbanization

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Migration and Urbanization Koichi Fujita CSEAS, Kyoto University Japan

  2. The Farm Problem after The Food Problem • Food problem The supply of food lags behind the demand for food. Because of 1) the rapid increase of demand for food arising from population growth and increase of per capita food consumption, and 2) the slow technological innovation in agricultural sector. • Farm problem The agricultural sector growth lags behind the other sector’s growth. Because of the slow growth of demand for agricultural products, which arises from the law of Engels. The law of Engels: the share of food expenditure to total household expenditure (the Engel’s coefficient) will decline when economic development continues.

  3. Food Problem Farm Problem Demand Supply Demand Supply P P Q Q

  4. The Farm Problem • GDP share of agriculture declines rapidly. • However, the share of labor force in agriculture remains much larger than its GDP share. • Because of this, the income disparity between agriculture and non-agriculture (or between rural and urban) will widen, which become a serious problem not only for the farmers but also for the government, too. • What are the government policies?

  5. The Government Policies for Farm Problem (1) • Promotion of agricultural diversification From foodgrains to high value-added crops and products 1) Horticultural crops such as vegetables, fruits and flowers 2) Livestock products such as meat, milk and eggs 3) Fishery products 4) Organic food and products • Promotion of non-agricultural sectors in rural areas Rural infrastructure development Such as road and bridge, market, electrification, communication, etc. Construction of Industrial Zones Financial and technical support to SMEs and microenterprises

  6. The Government Policies for Farm Problem(2) • Promotion of large farms Expansion of farm size through land purchase and/or land lease market Agricultural mechanization such as tractors, combine harvesters, etc. But it largely failed in Japan. → many part-time farmers in rural areas • Agricultural price support by the government 1) Restriction of food and agricultural products import from abroad, such as import ban, import quota, and import tariff. 2) Restriction of cropped area (such as rice in Japan and Korea) 3) Export subsidy (such as EU and USA) 4) Input subsidies → Multi-national Negotiations in WTO (World Trade Organization) round

  7. Migration to Urban Areas (1) • Harris-Todaro Model Todaro, “A Model of Labor Migration and Urban Unemployment in Less Developed Countries” (1969) Critiques to ‘Dual Sectors Development Model’ 1) Assumption of full employment in urban sector. 2) Assumption of fixed wage rate in urban sector until the diminishment of surplus labor in rural area. Rural people migrate in response to the ‘expected income disparity’. Rural area → Unemployment in urban area → Urban formal sector • Urban informal sector ILO (International Labor Organization) Such as petty traders, rickshaw pullers, garbage collectors, construction workers, waiters in small restaurants, and so on.

  8. Migration to Urban Areas (2) • Segmentation of urban labor market Entry barrier to urban formal sector = Higher education There are scarce cases to move from urban informal sector to formal sector. There is a large wage differentials between formal and informal sectors. The wage rate in urban informal sectors is higher than that of the unskilled laborers in rural areas, but the difference in living standard is not so large because of the high living cost in urban areas. • Problems of urban slums High cost for urban infrastructure development

  9. Migration and urban labor market • Seasonal migration vs. Circular migration vs. Permanent migration • Single migration vs. Family migration • “Chain” migration

  10. Rural-Urban Migration Problems in Communist Countries • China Discrimination of rural residents from urban residents Existence of ‘rural register’ and ‘urban register’ Protection of urban registers from the government 1) Job 2) Residence, including water, gas, electricity, etc. 3) Child education 4) Health Income differential is about 3 times between rural and urban areas. No rights of rural residents in urban areas

  11. Why Urban Cities Emerge and Develop? • Development of economic geography • Merit of urban areas Merit of agglomeration Preference of people to choose many variety of consumer goods and services • Demerit of urban areas Increasing cost arising from congestion Pollution Higher living cost for consumers

  12. International Migration • Large scale migration in the history 1) Migration from Europe to the New Continental 2) Migration from China to Southeast Asia 3) Migration from India to Sri Lanka, Southeast Asia and East Africa 4) Migration from Developing Countries to the Middle East

  13. END

More Related