THE WORLD BANK ESTIMATES that about 4.2 billion people, or 55 per cent of the world’s population, live in the cities. By 2050, this number will rise to 70 per cent. Urbanisation is often seen as inevitable when a country transforms from a ‘traditional society’ to one which is geared toward ‘high mass consumption’. These familiar terms are the first and last ‘stages of economic growth’ propounded by Walt Whitman Rostow.
Often, urbanisation is also correlated with economic development. The proof of the pudding is in the eating. Already, 80 per cent of global GDP is generated in cities. There exists a positive correlation between the higher GDP per capita income and urban population (as a percentage of the total population).
The level of the urban population in countries like Switzerland (73.92 per cent), Norway (82.97 per cent), US (82.66 per cent), Denmark (88.12 per cent), Sweden (87.98 per cent), Australia (86.24 per cent) and Canada (81.56 per cent) is significantly high.
Conversely, countries with lower levels of GDP per capita have lower levels of urban population. Burundi (13.1 per cent urban population), South Sudan (20.20 per cent), Afghanistan (26.03 per cent), Rwanda (17.43 per cent), Ethiopia (21.70 per cent), Kenya (28 per cent) and Myanmar (31 per cent) are some examples.
Let us look at the case of India. The Union Ministry of Statistics and Programme Implementation (MoSPI) had in 2019 estimated urban and rural per capita income in terms of Net Value Added (NVA) to be Rs 98,435 in urban areas and Rs 40,925 in rural areas, respectively. It is more than double in urban areas.
Esta historia es de la edición June 04, 2022 de Businessworld.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición June 04, 2022 de Businessworld.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
'Committed to helping India achieve carbon neutrality'
R. Purushothaman on how Danfoss India, part of Danish MNC, is supporting the nation's carbon neutrality goals with innovative products
INTELLECTUAL DEPTH & ACTIONABLE INSIGHTS
Anil K. Khandelwal is a transformational leader, who invites readers to rethink leadership as a journey rather than a destination. In The Gym of Leadership, he emphasises that helmsmanship is not a badge of authority but a commitment to creating a positive impact, says Srinath Sridharan
AN INDUSTR BENCHMAR
The MacBook Pro M4 doesn't just set the bar for laptops-it becomes the bar. With unmatched performance, breath-taking design and incredible endurance, Apple's latest offering redefines what a laptop can achieve, says Sahil Mohan Gupta
The drip of good health
IV therapy seems to be a popular procedure with people in pursuit of good health and glowing skin. We spoke to medical experts about aspects to keep in mind before walking into a wellness centre to get that drip.
"MACARONS FOR THE MASSES"
CHANDNI NATH ISRANI, the driving force behind Ladurée's India expansion, redefines luxury in the F&B sector. With four flourishing Ladurée outlets established since 2021, Israni is making iconic French pastries and delicacies accessible to the Indian market. BW Businessworld sits down with the visionary entrepreneur to discuss her journey in building the luxury brand and her strategy for democratising gourmet experiences
NAVIGATING THE PATH TO PROFITABILITY: A STARTUP'S BALANCING ACT
WHEN EVALUATING startup profitability, it’s crucial to break it down into two main components: unit economics and fixed costs. Unit economics refers to the profitability of delivering each singular order, which involves analysing transaction margins against costs incurred, such as delivery and payment gateway fees. This assessment helps gauge whether a business model is sustainable at a micro level.
THE HOLY GRAIL OF PROFITABILITY
Profitability for startups is elusive, often overshadowed by growth and investor expectations. Achieving profitability requires a delicate balance between revenue generation and cost management, with factors like market dynamics and competition playing significant roles
"WE ARE FOCUSED ON BUILDING A RESILIENT AND SELF-SUSTAINING SEMICONDUCTOR ECOSYSTEM"
S.KRISHNAN, Secretary of the Ministry of Electronics and Information Technology, outlines India's ambitious plan to build a resilient and globally competitive semiconductor industry through the India Semiconductor Mission
Shaping the Future of Cyber Risk Management
With its mission to advance cyber risk quantification through the FAIR (Factor Analysis of Information Risk) model, the institute empowers businesses to align cybersecurity with broader objectives using structured, data-driven insights. Managing Director TODD TUCKER discusses how the institute’s methodologies and community-driven approach are reshaping industry standards worldwide, including growing interest in India and Asia Pacific
THE PILLAR OF A RESILIENT DIGITAL FUTURE
The rapid evolution of digital technologies has transformed the world, driving unprecedented connectivity and innovation. Yet, as the digital realm expands, so do vulnerabilities, with cyber threats emerging as critical challenges for businesses, governments and individuals
