Question: In the 1970s and 1980s, many development planners were concerned a phenomenon known as ``over-urbanization", where many developing countries experienced rapid urban growth and simultaneously saw high levels of unemployment. Explain these concerns, referencing the Harris-Todaro model in your discussion. On the other hand, why might policies to restrict urban growth be misguided? Discuss.
Answer: In the 1970s and 1980s, development planners were concerned about "over-urbanization," which referred to the phenomenon of rapid urban growth in developing countries coupled with high levels of unemployment. The Harris-Todaro model, an economic model, explains this concern. According to the model, rural-urban migration is driven by the perception of higher urban wages. However, due to limited job opportunities in the urban areas, many migrants end up unemployed or working in the informal sector, leading to high urban unemployment rates.
On the other hand, policies aimed at restricting urban growth may be misguided. Urbanization can bring economic opportunities, improved access to services, and enhanced productivity. Restricting urban growth could hinder these benefits and perpetuate inequalities. Instead, policies should focus on promoting inclusive urban development, such as investment in job creation, infrastructure, and social services, to address the challenges associated with over-urbanization effectively.