In Urbanizing China, Big Cities Get the Blues

The government's Central Economic Work Conference concluded with a clear goal: “Vigorously and steadily promote urbanization, and strive to improve the quality of urbanization."

History and experiences from around the world indicate that urbanization is indeed the only way for a developing country to modernize. Economies of scale and industrial clustering can improve labor productivity. Urban incomes can rise when an economy's industries and services are highly concentrated.