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Major macroeconomic, social, and sectoral policies have often been directly opposed to the decentralization policy. Investments supported by governments and aid agencies have followed the same centralizing logic as private investments, and have built transportation facilities, educational and health institutions, and urban infrastructure and services where the demand exists – in the major city. Rural-urban migration has followed the same pattern. A major reason why so many migrants in recent decades went to cities such as Nairobi, Manila, Lagos, Mexico City, Sao Paulo, Rangoon, or Port au Prince was the dominant role each centre came to play in its national economy.

27. The macroeconomic and pricing policies pursued by governments further reinforced this concentration. The major cities. often the capital, usually receive a disproportionately large share of the total national expenditure on education and on subsidies to reduce the prices of water, corn, electric power, diesel fuel, and public transport. Railroad freight rates sometimes favour routes that pass through the capital. Property taxes in the city and surrounding districts may be undervalued. New or expanded industries given a boost by the import substitution policies are encouraged to establish in or near the captial.

28, Agricultural and food policies have also tended to promote rapid growth of lager cities. Low or even negative economic supports for agricultural products have driven smallholders off their land and added to the numbers of the rural poor. Urban food prices, held low by subsidies, have served to attract many of them to cities. In recent years, however, some developing countries have found it possible to begin to shift more income from the major cities to the rural areas and smaller towns. some cases, policies to promote small landholdings and intensive farming have had this effect. Increasing production, a growth agricultural employment, and higher average incomes have stimulated the development of small and intermediate centre, in /…