The Economy in Urban Areas in 2018

Why do cities exist?

Have you ever give thought to the existential force behind cities? More than 70% of the world’s Gross Domestic Product (GDP) is generated by urban areas. Cities are the main drivers of economic growth. This makes sense as urban areas contain the biggest concentration of firms and economically active people. Cities attract job seekers, especially in developing countries where there is an ever-growing discrepancy between urban and rural wages.

Rural-to-urban migration is a reality in 2018. It is estimated that the global percentage of people living in urban areas will increase from 50% to over 65% by 2030. Providing new economic resources to urban areas in transition is of the main issues that define the public agenda. If governments fail to keep up with the influx of economically active people, it can stifle economic growth and lead to urban poverty.

There are vast benefits associated with urbanization. This is one of the biggest reasons that cities exist. The responsibility of guiding urbanization towards expansion falls on the public sector. Administrative organs within governments make use of actionable plans and policies to prepare and harness the power of agglomeration economies.

The role of public administration sectors

Public administrative agencies are key role players in governments’ endeavours to provide urban areas with the means to cope with increasing populations. These agencies gather and analyze information, identify potential problem areas, formulate and implement remedial or precautionary policies, and manage people and resources. Their routine activities include safety inspections and systems analyses.

The biggest challenges that these public administration sectors face is to go about their activities while remaining politically neutral and to formulate and implement strategies without raising taxes. They have to gear their activities toward ensuring that city infrastructure, transport systems, employment, and land utilization are tied together and growing as a whole.

Connectivity is one of the key components of a functional urban space. Reliable connections between employers and job seekers, businesses, and city residents ensure effective communication and productivity throughout the urban economy.

Difficulties public administrators face

Administrative sectors have to deal sufficiently with economic costs such as pollution, congested roads and strained municipal infrastructure. Paying attention to the possibility of urban growth during planning and layout phases of roads and networks and making the necessary provisions can prevent these stifling forces from inhibiting urban economic growth.

If you are someone that is captivated by urban planning and the development of infrastructure, you may want to be working in the public sector. As a public administrator, your activities will be aimed at assisting governments with urban planning and assuring economic urban growth. Your ultimate goal will always be to maximize the economic benefits of urbanization and to manage negative factors and stifling economic conditions.

When workers in the public administration sector perform optimally, the economic and social benefits for a community can be superabundant. Governments will have a clear understanding of urban areas’ economic driving forces, low-income households will have more opportunity to boost their income, and all residents will enjoy an increased quality of living. Increased connectivity can result in lower input costs, allowing the production sector to grow and employ more people, and stimulate the urban economy.


Cities have to employ sound financial management policies in order to have funding available for capital projects and the implementation of urban development strategies. It is the responsibility of the public administrative sector to help the government formulate and implement revenue maximizing efforts.

These efforts are pivotal in ensuring that urban expansion is controlled and accommodating to the influx of people. Without these efforts, governments will find it difficult to invest in infrastructure and development without raising taxes.


Public administrative sectors, their task teams, and the people that are active within these teams are vital for the continued growth of urban economies. When these sectors’ performance isn’t up to par it can have detrimental consequences that will trickle down to the household level. Likewise, sufficient administration of public service programs can affect every single role player in the urban economy in a positive way.


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