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EMERGING ISSUES IN INDIAN ECONOMY — Economics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsEMERGING ISSUES IN INDIAN ECONOMY5 Marks
Question
Explain the Effects of Urbanization.
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Answer

$1.$ Introduction:
  • India is next to China in the world in the process of urbanization.
  • It is an evidence of India's rapid progress.
  • Due to the process of economic progress in India the emergence of urbanization has created positive and negative effects.
$2.$ Positive Effects of Urbanization $($Advantages$):$
  • The following positive effects of urbanization are observed.
  • They are desirable.
$(1)$ Increase in facilities of infrastructure:
  • Owing to urbanization there is continuous increase in infrastructural facilities such as education, health, transportation, communication, insurance, electricity etc.
  • Industry and service sector have developed very fast and ample of employment opportunities are created.
  • It has directly created many opportunities of employment.
  • On the other hand, with the increase in their income their purchasing power too has increased, which has increased the demand of industry and services.
  • Along with the development of this sector, new employment opportunities are created.
  • Thus increase in employment leads to increase in income and cycle of growth in income and employment keeps going on.
  • Ample of job employment has reduced the problem of unemployment.
$(2)$ Decrease in Poverty:
  • Poverty and unemployment are mutually interdependent.
  • Normally poverty reduces with the increase of employment.
  • Due to urbanization industry and service sector has employed number of people and poverty is reduced to some extent.
  • In the urban areas labour based employment is available according to the capacity.
  • They can feed themselves by doing small labour work.
  • Poor labourers from rural area comes to the city and gets employment as per their capacity and poverty is reduced to some extent.
  • In short percentage of poverty in villages is higher than in the cities because employment opportunities and wages in the cities are higher than those in the rural areas.
$(3)$ Cultural progress:
  • In the cities facilities of qualitative higher education is available in plenty, so an individual can develop himself through education and develop his capacity for earning.
  • Sufficient number of students are available in schools and colleges in cities.
  • Therefore they can attain required education easily and society is gifted with cultured human being.
  • In the city area various types of libraries with modern amenities, book stalls and various cultural programs enrich people culturally and make them more cultured.
$(4)$ Most Modern Health Services:
  • In the cities due to education and population growth, health related facilities also are available.
  • Today there are many multi specialty hospitals and services of expert doctors are available.
  • Most modern treatment of every disease is possible.
  • Private hospitals with modern amenities attract people who desire world class health services. E.g. : Ahmedabad, Mumbai etc.
  • Moreover government and local self-government also has started this type of hospitals which directly benefit the middle class and the poor people so that their health may improve.
  • It's direct effect is observed on productivity.
$(5)$ Social Effects: Modern Thinking:
  • Compared to villages social obstinacy is less in the cities due to spread of education.
  • The level of untouchability, discrimination of caste and creed is less.
  • City dwellers accept social changes more naturally than the people living in the villages.
  • Changes come along with economic progress.
  • People residing in the cities are from different areas, therefore social bondages no longer remain and people live with integrity.
  • Feeling of fraternity spreads in the society.
  • Compared to villages, education and cultural, is spread more in the cities.
  • Due to use of modern equipments of communication and transportation their thinking and mentality has changed.
  • Being familiar with the global trend their speech, behaviour, life style and customs have changed.
$(6)$ Higher standard of living:
  • Compared to rural areas in the urban areas there are more opportunities of employment and on the other side most modern infrastructural amenities are available.
  • Therefore their standard of living has gone up.
  • It has raised.
  • They can use modern equipments like vehicles and communication gadgets like $A.C.,$ Fridge, $TV.$ etc.
$3.$ Negative effects of urbanization $($Disadvantages$):$
  • Unregulated urbanization has created many problems.
  • The negative effect of urbanization are as under:
$(1)$ Economic Disparity:
  • Owing to urbanization, economic inequality has increased to a greater extent.
  • Educated people of city are intellectual and earn high income.
  • They spend extremely luxurious life.
  • On the other hand vast poor class has migrated to cities in search of employment.
  • They are under educated and lack skill and training, therefore they get only labour work.
  • Except this labour work they hardly earn any other income.
  • It is very difficult for them to make both ends meet.
  • This type of economic inequality is observed in the cities.
$(2)$ Social Disparity:
  • Along with economic inequality, social inequality is observed in the urban areas.
  • Rich and elite educated class of the urban area holds modern ideology while the poor and uneducated rural person holds orthodox and traditional ideology.
$(3)$ Issue of slum residency:
  • People coming from villages to cities in search of employment cannot live in good 'Pucca' house as they cannot afford it.
  • They are compelled to live in the hutments and slums very far from the cities or near railway lines, in the open land of the factory or in the slums in public owned open land, Due to urbanization dirty slums and dirty areas have increased considerably.
  • It is difficult to remove these dirty slums, once existed, in the name of humanity.
$(4)$ Law and order issue:
  • Due to uncontrolled urbanization and population, growth in urban areas has made law and order very difficult to maintain.
  • Along with urbanization the scope of urban area expands.
  • Work place is very far from residence which creates the problem of providing transportation Service.
  • It is not possible to provide this service on regular basis and adequately.
  • So as, option to transportation number of auto rickshaw, two wheelers, etc. are observed.
  • Rich class purchases motorcars.
  • In short all this adds to the problems of traffic in the city area.
  • Along with this, problem of road accident creates a severe problem.
  • Attraction for higher standard of living and on the other hand for many people it is hard to make both ends meet.
  • Under these circumstances when an individual is not successful in life in doing so, he adopts unlawful ways and means such as bribe, corruption, theft, robbery etc.
  • Such incidents are quite common in urban areas which disturbs peace of the people and puts safety in danger.
  • In short social evils are more in the urban areas due to rat race after material wealth than in the rural areas.
$(5)$ Problem of Infrastructural Facilities:
  • Owing to urbanization the demand and need for infrastructural facilities such as transportation, communication, electricity, banking, potable water, drainage, discharge of waste water etc. increase.
  • Local administration fails to provide these facilities efficiently therefore water based diseases increase.
$(6)$ Issue related to Pollution of Environment:
  • Urbanization is the result of industrialization.
  • In the cities unregulated industries are established ignoring the problem of pollution.
  • Pollution has increased to uncontrollable level in the urban areas.
  • Factories do not have proper system of discharge of waste water.
  • This adversely affects human health.
  • High level of pollution of air, noise and water has created health problems. e.g. more than 50% poor people suffer from skin and respiratory diseases.

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