The structural and economic implications of urbanization∗

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Abstract
This study surveys the policy issues associated with urbanization following the abolition of the pass laws. The demographic background is briefly sketched. Using neo‐classical analysis as a starting point, particular attention is paid to the present inefficiencies of city form associated with segregation. It is argued that current planning procedures are in danger of perpetuating or even worsening the situation. Obstacles to employment generation are considered and transport, local government and housing issues are discussed. On every front, urbanization policy is unstable and, even in the short term, there will be pressures to change it.