Mexico officially the United Mexican States is a federal republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico. Covering almost two million square kilometres (over 760,000 sq mi), Mexico is the fifth largest country in the Americas by total area and the 13th largest independent nation in the world. With an estimated population of over 113 million, it is the eleventh most populous and the most populous Spanish-speaking country in the world and the second most populous country in Latin America. Mexico is a federation comprising thirty-one states and a Federal District, the capital city.
Urbanization is the increasing number of people that migrate from rural to urban areas. It predominantly results in the physical growth of urban areas, be it horizontal or vertical. The United Nations projected that half of the world’s population would live in urban areas at the end of 2008. By 2050 it is predicted that 64.1% and 85.9% of the developing and developed world respectively will be urbanized. Thus Urbanization is closely linked to modernization, industrialization, and the sociological process of rationalization. Urbanization can describe a specific condition at a set time, i.e. the proportion of total population or area in cities or towns, or the term can describe the increase of this proportion over time. So the term urbanization can represent the level of urban development relative to overall population, or it can represent the rate at which the urban proportion is increasing.
Urbanization is not merely a modern phenomenon, but a rapid and historic transformation of human social roots on a global scale, whereby predominantly rural culture is being rapidly replaced by predominantly urban culture. The last major change in settlement patterns was the accumulation of hunter-gatherers into villages many thousand years ago
Urbanization occurs when people move from rural to urban areas, so that the proportion of people living in cities increases while the proportion of people living in rural areas diminishes. In the last century, the world’s population has urbanized quickly. In 1900, just 13% of people lived in cities; by 1950, the proportion rose to 29%. According to projections, the proportion could reach 60% by 2030, or nearly 5 billion people.
Mexico City has undergone rapid urbanization according to the pattern seen in many developing countries. Mexico has rapidly changed from a primarily agricultural country to one with significant industry, including industrialized agriculture. Consequently, huge numbers of rural dwellers migrated to Mexico City, making it an extremely densely populated city of nearly 9 million.
Urbanization generally occurs with modernization and industrialization, and is often motivated by economic factors. These factors pull people to cities at the same time that they push people from rural homes.
Another term for urbanization is “rural flight.” In modern times, this flight often occurs in a region following the industrialization of agriculture—when fewer people are needed to bring the same amount of agricultural output to market—and related agricultural services and industries are consolidated. These factors negatively affect the economy of small- and middle-sized farms and strongly reduce the size of the rural labor market. Rural flight is exacerbated when the population decline leads to the loss of rural services (such as business enterprises and schools), which leads to greater loss of population as people leave to seek those features.
As more and more people leave villages and farms to live in cities, urban growth results. The rapid growth of cities like Chicago in the late nineteenth century and Mumbai a century later can be attributed largely to rural-urban migration. This kind of growth is especially commonplace in developing countries.
Urbanization occurs naturally from individual and corporate efforts to reduce time and expense in commuting, while improving opportunities for jobs, education, housing, entertainment, and transportation. Living in cities permits individuals and families to take advantage of the opportunities of proximity, diversity, and marketplace competition. Due to their high populations, urban areas can also have more diverse social communities than rural areas, allowing others to find people like them.
Urbanization occurs as individual, commercial, social and governmental efforts reduce time and expense in commuting and transportation and improve opportunities for jobs, education, housing, and transportation. Living in cities permits the advantages of the opportunities of proximity, diversity, and marketplace competition. However, the advantages of urbanization are weighed against alienation issues, stress, increased daily life costs, and negative social aspects that result from mass marginalization. Suburbanization, which is happening in the cities of the largest developing countries, was sold and seen as an attempt to balance these negative aspects of urban life while still allowing access to the large extent of shared resources.
Cities are known to be places where money, services, wealth and opportunities are centralized. Many rural inhabitants come to the city for reasons of seeking fortunes and social mobility. Businesses, which provide jobs and exchange capital are more concentrated in urban areas. Whether the source is trade or tourism, it is also through the ports or banking systems that foreign money flows into a country, commonly located in cities.
Economic opportunities are just one reason people move into cities, though they do not go to fully explain why urbanization rates have exploded only recently in places like China and India. Rural flight is a contributing factor to urbanization. In rural areas, often on small family farms or collective farms in villages, it has traditionally been difficult to access manufactured goods, though overall quality of life is very subjective, and may certainly surpass that of the city. Farm living has always been susceptible to unpredictable environmental conditions, and in times of drought, flood or pestilence, survival may become extremely problematic.
In a New York Times article concerning the acute migration away from farming in Mexico, life as a farmer was described as “hot and exhausting.” “Everyone says the farmer works the hardest but gets the least amount of money”. In an effort to counter this impression, the Agriculture Department of Thailand is seeking to promote the impression that farming is “honorable and secure”.
However, in Mexico, urbanization has also resulted in massive increases in problems such as obesity. City life, especially in modern urban slums of the developing world, is certainly hardly immune to pestilence or climatic disturbances such as floods, yet continues to strongly attract migrants. Examples of this were the 2011 Thailand floods and 2007 Jakarta flood. Urban areas are also far more prone to violence, drugs, and other urban social problems. In the case of the Mexico economy, industrialization of agriculture has negatively affected the economy of small and middle-sized farms and strongly reduced the size of the rural labour market.
Particularly in the developing world, conflict over land rights due to the effects of globalization has led to less political powerful groups, such as farmers, losing or forfeiting their land, resulting in obligatory migration into cities. In other Mexico cities, where land acquisition measures are forceful, there has been far more extensive and rapid urbanization (51%) than in capital (29%), where peasants form militant groups (e.g. Naxalites) to oppose such efforts. Obligatory and unplanned migration often results in rapid growth of slums. This is also similar to areas of violent conflict, where people are driven off their land due to violence. Bogota, Colombia is one example of this.
Cities offer a larger variety of services, such as specialist services that aren’t found in rural areas. Supporting the provision of these services requires workers, resulting in more numerous and varied job opportunities. Elderly individuals may be forced to move to cities where there are doctors and hospitals that can cater for their health needs. Varied and high quality educational opportunities are another factor in urban migration, as well as the opportunity to join, develop, and seek out social communities.
People located in cities are more productive than those working outside dense agglomerations. An important question for the policy makers as well as for clustering people deals with the causality of this relationship, that is whether people become more productive in cities due to certain agglomeration effects or are cities simply attracting those who are more productive. Economists have recently shown that there exists indeed a large productivity gain due to locating in dense agglomerations.[13] It is thus possible that agents locate in cities in order to benefit from these agglomeration effects.

One major control of urbanization in Mexico is through wage inflation which has started to yield results and demand for more mature food stuffs are on the up. There is much development still needed. The provisions of social amenities available in rural areas are going on, and this follows through into demand for temporary measures such as generators. Companies benefiting from this specifically are Aggreko, the largest generator maker globally. Also, JCB announced strong demand for their vehicles (diggers) as construction ahead of the Rio Olympics is well under way. After some good results recently, it is inherent demand in emerging markets is on the up and up.

Emerging market investment funds will be your best bet to capture some of this upside. First State Global Emerging Market Leaders would be my choice, however with such a pull on infrastructure spending still such a necessity, First States Global Listed Infrastructure fund is prime for growth.
These rapidly expanding countries have the size and ability to become some of the leading economies in the world, however it will not be a smooth ride and the management of growth throughout the whole country is needed.

1. “UN says half the world’s population will live in urban areas by end of 2008”. International Herald Tribune. Associated Press. 26 February 2008. Archived from the original on 9 February 2009.
2. “Urban life: Open-air computers”. The Economist. 27 October 2012. Retrieved 20 March 2013.
3. Christopher Watson, Trends in urbanisation
4. “United Nations, Department of Economic and Social Affairs”.
5. Patricia Clarke Annez, Robert M. Buckley, Urbanization and growth
6. “World Urbanization Prospects: The 2005 Revision, Pop. Division, Department of Economic and Social Affairs, UN”.
7. “UN State of the World Population”. UNFPA. 2007.
8. Ankerl, Guy (1986). Urbanization Overspeed in Tropical Africa. INUPRESS, Geneva. ISBN 2-88155-000-2.
9. “Population Bulletin 2007/2008” (Press release). Milton Keynes intelligence Observatory. 10/03/2008. Retrieved 11/06/2008.
10. based on 2000 U.S. Census Data
11. Fuller, Thomas (5 June 2012). “Thai Youth Seek a Fortune Away From the Farm”. New York Times. Retrieved 5 June 2012.
12. “Early Death Assured In India Where 900 Million Go Hungry”. Bloomberg. 13 June 2012. Retrieved 13 June 2012.
13. Borowiecki, Karol J. (2013) Geographic Clustering and Productivity: An Instrumental Variable Approach for Classical Composers, Journal of Urban Economics, 73(1): 94–110

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