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 enhancement. The exodus of population and economic activities. while creating severe economic and social difficulties, reduces urban congestion, allows new uses for abandoned buildings, protects historic urban districts from the threat of speculative demolition and reconstruction, and contributes to urban renewal. The de-indutrialization of these cities is often counterbalanced by the growth of the services sector, which brings its own problems. But this trend creates opportunities to remove heavy industrial pollution sources from residential and commercial areas.

23. The combination of advanced technology, stronger national economies, and a developed institutional infrastructure give resilience and the potential for continuing recovery to cities in the industrial world. With flexibility, space for manoeuvre, and innovation by local leadership, the issue for industrial countries is ultimately one of political and social choice. Developing countries are not in the same situation. They have a major urban crisis on their hands.

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II. THE URBAN CHALLENGE IN DEVELOPING COUNTRIES
}} 24. Settlements – the urban network of cities, towns, and villages – encompass all aspects of the environment within which societies' economic and social interactions take place. Internationally, the major cities of the world constitute a network for the allocation of investment and for the production and sale of most goods and services. These centres are the first to be plugged into this network. through air- and seaports and telecommunications. New technologies usually arrive and are first put into practice in large and then smaller cities. Only if centres are firmly connected to this network can they hope to attract investment in technologies and manufacturing goods for world markets. Nationally, cities are veritable incubators of economic activities, Some enterprises are large-scale by the vast majority are small, doing everything from selling snack foods to mending shoes and building houses. The growth of these activities is the foundation of the domestic economy.

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1. National Urban Strategies
}} 25. The natural evolution of this network of settlements, however, has caused apprehension in most developing countries. Of particular concern has been the phenomenal growth of often one or two major cities. In some countries, the desire to limit this growth has led to spatial policies designed to accelerate the development of secondary centres, Underlying this has been a particular concern that unbalanced growth is increasing interregional disparities and creating economic and social imbalances that can have serious consequences in terms of national unity and political stability.

26. Although far from conclusive, the available evidence suggests that most attempts by central governments to balance spatial development have been both expensive and ineffective. /…