Examining the Interdependencies Between Urbanization, Internal Migration, Urban Poverty, and Inequality: Evidence from Indonesia

Abstract

The Global Monitoring Report 2013 published by the World Bank and the International Monetary Fund (IMF) has put a special focus on internal migration research, particularly on the issues of rural–urban dynamics, urbanization, and its relationship with progress of the Millennium Development Goals (MDGs). The report indicates that urbanization in the developing countries has been very fast, with around half of the developing world population currently living in urban areas. This report argues that urbanization has been a significant determinant of poverty reduction and progress in other MDGs (World Bank and IMF 2013). Countries that experience a higher rate of urbanization (e.g., the People’s Republic of China [PRC] and countries in East Asia and Latin America) have lowered their poverty rates, calculated by the international standard of less than US$ 1.25 per day measured at 2005 PPP. This is better compared to countries which have experienced lower rates of urbanization, such as those in South Asia and Africa (World Bank and IMF 2013).