In 2008, for the first time in history, more than half of the world’s population lived
in urban areas (UNFPA 2007). In an unprecedented process of urbanization, up to five
billion people will be living in towns and cities by 2030, according to recent estimates.
Natural population growth in urban areas and rural-urban migration are the essential
drivers of this process. Especially in Asia and Africa, urbanization takes place both in
the inner-city areas as well as at the peri-urban fringes. Although urbanization might
have positive impacts on poverty reduction, urbanization processes can also increase
poverty. Severe destitution is growing in cities and towns and is being transferred from
rural areas to urban areas via migration, leading to an overall urbanization of poverty.
Urban poverty is closely associated with ecologically degraded slum areas and shanty
towns with poor access to water, sanitation and other basic services. Furthermore, it is
also reflected in the increasing loss of traditional livelihoods such as agriculture and
fishing in the peri-urban areas due to rapid urban sprawl. In both inner-city areas and
urban peripheries, livelihoods of the poor population are under immense pressure and
will experience further stress given the future urban growth trends.