Urbanization

Urbanization is defined as the process of human movement and centralization towards and into cities and urban areas, with the associated industrialization, urban sprawl and lifestyle that brings. The world’s population moved from a rural past into an urban future in 2007/2008, when, for the first time in history, more than half of the globe’s population could be classified as urban dwellers. A high percentage of city-dwellers are poor, with an estimated 1 billion living in slums.

Urbanization is now mainly a trend in Africa and Asia, where about 40 percent of the population is urban today. Driven by continued high population growth and slow economic growth in parts of the regions, the urban population is expected to double between 2000 and 2030, reaching 54 and 55 percent respectively. Corresponding figures for Europe and North America are 80 and 87 percent; for Latin America and the Caribbean 85 percent. All told, the world’s total urban population is expected to increase from 3.3 billion in 2008 to about 6.4 billion by 2050, or about 70 percent of the world population. The world’s rural population is expected to peak at 3.5 billion in 2019 and then slowly decline, to 2.8 billion in 2050. Increased urbanization will also drive the development of mega-cities with 10 million inhabitants or more. It is estimated that by 2025 there will be 27 mega-cities, 20 of these in the developing world.

Urbanization affects economic relations and social structure throughout the world. It contributes to the globalization trend, with increased cross-border trade and cross-cultural ties bringing the world closer together. At the same time, urbanization creates opportunities and challenges, not least regarding sustainability.

Urbanization is not only seen as an inevitable trend. It’s also considered a positive development because concentrations of people make it easier to offer basic infrastructure and public services such as education and health services. Urbanization and growth go together, and no country has ever reached middle-income status without a significant population shift from rural to urban areas. Urban environments, with close human interaction, also tend to spur innovation and economic development. In developing countries, urbanization is considered necessary to sustain growth. Urbanization represents many of the major environmental problems facing the world, however, and urban areas tend to be environmentally as well as socially unsustainable.

For the chemical and fertilizer industry, and Yara itself, there are two major aspects of urbanization that are particularly relevant: Food and health.

Urbanity and food involves the connection between the urbanization process and an urban livelihood, and the production and consumption of food. In most societies, agriculture has been responsible for laying the economic foundations for development, whereas urbanization lays the foundation for the next step in economic development, industrialization. Industrial activities are mostly located in urban areas, or the establishment of industrial enterprises spurs development of urban centers. Where land and water are scarce, urban areas compete with agriculture. Farmers can suddenly find themselves outbid for land by industrial firms, jeopardizing the production of food.

Food security is a major challenge closely connected to urbanization. The impact of urbanization on agriculture is also connected to the consumption patterns of city populations. Rising incomes lead to higher consumption and increased pressure on natural resources, especially in developed countries. Urban consumption may be a more imminent problem than the actual urban concentrations, causing a substantial urban footprint.

Urbanity and health involves the connection between urban life and the living conditions affecting human health. Although urbanization allows more accessibility to health services, it also creates health hazards. In poor parts of the cities, health problems include inadequate water and sanitation, limited or no waste disposal and poor air quality, as well as crowded living conditions and general poverty. In such urban areas the air, land and water are often contaminated, spreading disease. In cities in the more affluent parts of the world, health hazards resulting from urbanization are mainly connected to air pollution, as well as crime, traffic and lifestyle.

Some problems connected to the urban physical environment affect virtually everyone, particularly air pollution. The burning of fossil fuels from transportation, industry and energy production is the main culprit regarding outdoor urban air pollution. Another health hazard common in, but not exclusive to, the cities is connected to lifestyle and consumption patterns, including dietary changes and obesity.

Expanding urbanization changes the social fabric and economic relations in both urban and rural areas – and within the rural agricultural community that Yara serves with its fertilizer products and agronomic knowledge. The population shift from rural to urban areas not only affects agricultural activity and food production, it also tends to create new consumption patterns that further affect agricultural production and food demand.

Urbanization affects human health in several ways, from dietary patterns to the physical environment. The concentration of people in urban areas, with a multitude of economic activity including industrial production and extensive transportation, contributes to air pollution, which is a major health hazard. Yara is developing environmental solutions that have a direct as well as indirect impact on human health, through the improvement of the quality of air and water.

Increased urbanization offers challenges and opportunities for Yara to provide products and knowledge that help improve agricultural productivity and the nutritional value of food products. Other products and knowledge reduce harmful emissions and other pollutants to air and water. The growth of urban areas combined with stricter policies and regulations aimed at stemming local pollution as well as global warming offer new business channels for an industrial company like Yara.