This year it is believed that the number of people living in urban areas exceeded those in the countryside for the first time ever. This growing urban population breeds income inequalities which fuel negative social tensions.

“High levels of inequality can lead to negative social, economic and political consequences that have a destabilizing effect on societies,” said the State of the World’s Cities 2008/2009 report. “[They] create social and political fractures that can develop into social unrest and insecurity.”

Not surprisingly then the report finds that as populations rise, as they have in emerging Asia, inequalities widen, giving rise to food, religious, political and social riots as we have seen spreading across Asia. In the past few months, high oil prices competing with even higher inflation rates have widened the gap between the rich and poor leading to political clashes in Thailand, religious riots in India, as well as social unrest in China and the Philippines.

When gross inequalities are associated with unjust systems that perpetuate poverty, curb upward mobility and exclude the majority, you have a formula for trouble. Put another way: when inequalities are perceived as the result of unfair processes or the unequal distribution of opportunities, people are less likely to accept them. Indeed such perceptions can nurture high crime rates, social unrest or even conflict, the report says.

While ranking cities based on their levels on inequality, the UN report says In Bangladesh, India, Pakistan and Indonesia, levels of urban inequality are generally low and are comparable to many cities in Europe, Canada and Australia, even through urban poverty is much greater in the former. Inequalities are especially ripe in Hong Kong, New Delhi, Ho Chi Minh City, Davao and Colombo.

However, recent analyses suggest that India will experience rising levels of urban inequality in the future as a result of liberalization and industrialization policies coupled with lack of adequate investment in provision of public goods to the most vulnerable populations.

Cities in China tend to be more equal than other Asian cities, with Beijing being among the most equal city in the region, although some Chinese cities, such as Shenzhen, are experiencing relatively high inequality levels similar to those of Bangkok and Manila.

Unfortunately, it is too late to curtail the situation. Social scientists predict that as urban populations increase, social disharmony will raise its demonic head. Urban growth rates are highest in the developing world, which absorbs an average 5 million new urban residents a month and is responsible for 95 percent of world urban growth. The report predicts that Asian cities will grow the most in the next 40 years and could have 63 percent of the world urban population by 2050, the Guardian reported.

The report found that India was becoming more unequal as a direct result of economic liberalization and globalization. However, the most dramatic urbanization has been taking place in China, with many millions of people moving from the countryside to cities. The report says 49 new cities have been built in the past 18 years. The rapid transition to an urban society has brought great wealth but also many negative results.

“China has attained some of the deepest disparities in the world with urban incomes three times those in rural areas. Inequalities are growing, with disproportionate rewards for the most skilled workers … and serious problems for the unemployed and informal workers.”

This entry was posted on Friday, October 24th, 2008 at 12:05 pm and is filed under Research reports, Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.