False economy What’s in it for me? Understand what makes the


Cities can play a major role in determining a



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Cities can play a major role in determining a 
nation’s economic success.
You may have noticed that major cities can 
serve as a good representation of a nation’s 
economic success or failure. That’s because the 
tricky business of development and urbanization 
can play a big role in a country’s economic 
prosperity.


For instance, nations with unstable governments 
will often have some bloated capital cities that 
reflect their problems.
During the time of the Roman Empire, Rome 
was a city that represented both abundant 
growth and the instability of the government. As 
well as being the center of commerce and 
industry, it was also filled with citizens 
demanding food, jobs and welfare. To support 
the outsized city, the surrounding areas were 
heavily taxed and made unsafe by constant 
warfare.
Today, overpopulated cities like Buenos Aires 
and Mexico City are similar in the way they 
reflect the lack of opportunity elsewhere in their 
countries.
In fact, 35 percent of the entire nation of 
Argentina resides in Buenos Aires. This statistic 
shows how the country’s failed agricultural 
programs have provided citizens with few 
options for prosperity other than by finding work 
in the city.
The same situation is visible in many of Africa’s 
cities, as well.
When a country rushes towards urbanization, it 
can often happen at the expense of the rest of 
the nation. The development of Zambia’s capital 
city of Lusaka was paid for by taxing the 
countryside. As a result, farmers were driven out 
of business, and forced to move to the city and 
live in slums known as shantytowns.
A successful city, by contrast, is one that 
contributes to a diversified national economy in 
more than one way.
Cities like Madrid and Chicago have thrived and 
remained healthy because their success is not 
dependent on one kind of business or 
technology. This is in stark contrast to a city like 
Detroit which relied too heavily on the 
automotive industry and ended up in economic 
despair when the industry dried up.

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