What is the role of urbanization in poverty reduction?

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What is the role of urbanization in poverty reduction?

Urbanization plays a significant role in poverty reduction. As people migrate from rural areas to cities in search of better opportunities, urbanization can lead to increased access to education, healthcare, and employment opportunities. Cities often offer higher wages and a wider range of job options, which can help lift individuals and families out of poverty. Additionally, urban areas tend to have better infrastructure, including transportation, sanitation, and utilities, which can improve living conditions and overall quality of life for residents. However, it is important to note that urbanization can also lead to challenges such as increased inequality and the creation of informal settlements. Therefore, effective urban planning and policies are crucial to ensure that the benefits of urbanization are shared equitably and that poverty reduction efforts are sustainable.