The Costs of Urbanization: A Case Study of Pakistan

A methodology is developed for estimating the aggregate costs of urbanization in Pakistan for 1983–2003. These costs are then compared with the future investment resource pool, and are found to be larger than the total pool. Alternative policy solutions to alleviate the problem are explored. Although some capital-saving strategies (such as major public works programs in rural areas and labor-intensive employment policies) would be helpful, it will be impossible to avoid a substantial rise in the proportion of the urban population without services from about one quarter to about one half of the total. The paper concludes with suggestions for refining the methodology in future studies.