Effect of urbanization on urban povertyin iran,1989-2014

Fotros, Mohammad Hassan (1); Sahrai, Razieh (2); Yavari, Masumeh (3) (2018). 'Effect of Urbanization on Urban povertyin Iran,1989-2014' Paper presented at the annual conference of the HDCA, Buenos Aires, Argentina 2018.

Abstract

Urbanization refers to the population shift from rural to urban areas, i.e. an increase in the proportion of people living in urban areas, and also it is a process in which a society adapts this change. According to The United Nations half of the world's population lived in urban areas at the end of 2008 and it is predicted that by 2050 about 64% of the developing world and 86% of the developed world will be urbanized. That is equivalent to approximately 3 billion urbanites by 2050, much of which will occur in Africa and Asia. Urbanization significantly exacerbated poverty. In developing countries, cities have experienced unprecedented and largely unplanned growth causing inadequate and skewed distribution of services. A city has arisen in an area that previously contained rural settlements scattered around a small (colonial) administrative center. It is now exploding with people from remote villages around the country seeking employment opportunities and better services. Perceived employment opportunities draw them, resulting from the concentration of jobs and facilities in the city. Though the city has become a magnet for them, it lacks enough absorptive capacity. There is, hence, jobless growth and poverty escalation (Kneuoe, 2014, 5).The Islamic Republic of Iran is situated in Middle East, with over 81 million inhabitants; Iran is the world's 18th-most-populous country.  It is the second-largest country in the Middle East and the 17th-largest in the world.In recent years, urbanization in Iran has been considered as an increasingly visible phenomenon. Level of urbanization rate was 31% in 1973and reached to 74% in 2014 and 74.37% in 2017. Significant increase of urban population in a short span of time can creates various problems including high cost of living, crime, social problem, environmental deterioration, unemployment and urban poverty.

Urbanization refers to the population shift from rural to urban areas, and it significantly exacerbated poverty. Cities in developing countries are now exploding with people from remote villages around the country seeking employment opportunities and better services. Though the city has become a magnet for them, it lacks enough absorptive capacity. The Islamic Republic of Iran is situated in Middle East, urbanization in Iran has been considered as an increasingly visible phenomenon. Level of urbanization rate was 31% in 1956 and reached to 74.37% in 2017. The question is that whether urbanization has increased urban poverty in Iran?

The purpose of this study is to assess the effect of urbanization on urban multidimentional poverty (MPI) in Iran for the period of 1989-2014. The main question in the present research is whether urbanization has increased urban MPI in Iran? For this purpose, urbanization rate and multi-dimensional poverty indicator, have been used. The data were obtained from Department of Statistics of I.R. of Iran.

Methodology

The global Multidimensional Poverty Index (MPI) complements traditional income-based poverty measures by capturing the severe deprivations that each person faces at the same time with respect to education, health and living standards. In this study has been used of multidimensional poverty index (MPI) based on Alkire and Foster method, that is  measured by Fotros and Ghodsi in article: “Comparing Iranian Development Plans by Multidimensional Poverty Index Calculated by Alkire-Foster Method”. The results show that urban poverty is decreased in Iran during the period 1989-2014.

 Conclusion

Graphs indicate an inverse relationship between the urbanization rate and the urban MPI in Iran. Therefore, increasing urbanization has led to the reduction of urban poverty and the improvement of the urban population in Iran.

References

•Zhang. Y (2016) “Urbanization, Inequality, and Poverty in the People’s Republic of China”   Asian Development Bank Institute (ADBI) working paper series. 584. 1-35. •Siwar. C & Ahmed. F & Bashawir. A & Mia. Md. S (2016) “Research Article Urbanization and Urban Poverty in Malaysia: Consequences and Vulnerability” Journal of Applied Sciences, 16 (4), 154- 160.  •Fotros. M. H & Ghodsi. S. (2017) “comparing Iranian Development Plans by Multidimensional Poverty Index Calculated by Alkire-Foster Method” Quarterly Journal of economic growth and development research, Vol. 7, No. 27 (45-64) •Tacoli. C & McGranahan.G & Satterthwaite.D (2014)“Urbanization, Rural–urban Migration and Urban Poverty” WORLD MIGRATION REPORT 2015, International Organization for Migration (IOM), 1-32 -
scroll to top