Is Urban Poverty More Challenging than Rural Poverty? A Review

In this article, we ask the question as to whether urban poverty is more challenging than rural poverty. We review the conceptual arguments and the existing literature examining the intensity of urban versus that of rural poverty, urban and rural inequality, and whether urban poverty lines should be higher than those for rural areas. The review of the existing research finds that the urban share of the poor is rising and that the ratio of urban poverty to total poverty incidence has risen with urbanization. Based on the review, we find that in many countries including India, urban inequality worsened during early 1990s to the late 2000s. We also find that there are several reasons why the defined poverty line must be higher in urban areas when compared with that in rural areas. Further, based on the survey, we find urban poverty can impose significant challenges to human capital for climate change mitigation; we summarize based on other studies why urban rather than rural poverty can be a challenge for donors and governments. Finally, we summarize the contribution made by the urban poor to the city economies, based on existing studies.