From probably the best economics blog in Southern Sudan, which writes:If you think that population density is important for political and economic outcomes (I do), this development could be pretty revolutionary.From a resources perspective, urbanization can be a positive trend in terms of efficiency (particularly energy used for transportation), beyond the other well-documented effects on improving market linkages, etc.
There are potential downsides as well. Anyone who has visited slums in the developing world can attest that poverty and unemployment in an urban setting can be an explosive combination. The urban poor are much more vulnerable to food price spikes than rural farmers (although the latter are more vulnerable than many people realize - surprisingly many are net buyers of tradable staple crops). And it may also be that one cause of this rapid urbanization is the inability of the rural economy - again, primarily agriculture - to provide sufficient economic opportunities to a growing population.
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