“Three million people move to cities every week”: so how can cities plan for migrants?

Rio's Rocinha shantytown: informal settlements like this are booming as developing countries urbanise. Image: Getty.

The world’s population is becoming increasingly urban. Sometime in 2007 is usually reckoned to be the turning point when city dwellers formed the majority of the global population for the first time in history.

Today, the trend toward urbanisation continues: as of 2014, it’s thought that 54 per cent of the world’s population lives in cities – and it’s expected to reach 66 per cent by 2050. Migration forms a significant, and often controversial, part of this urban population growth.

In fact, cities grow in three ways, which can be difficult to distinguish: through migration (whether it’s internal migration from rural to urban areas, or international migration between countries); the natural growth of the city’s population; and the reclassification of nearby non-urban districts. Although migration is only responsible for one share of this growth, it varies widely from country to country.


In some places, particularly in poorer countries, migration is the main driver of urbanisation. In 2009, UN Habitat estimated that 3m people were moving to cities every week.

In global gateway cities such as Sydney, London and New York, migrants make up over a third of the population. The proportion in Brussels and Dubai is even greater, with migrants accounting for more than half of the population.

The 2015 World Migration Report (WMR) by the International Organisation for Migration argued that this mass movement of people is widely overlooked amid the global concern about urbanisation. And the report considers the widespread challenges, in terms of service provision, for the growing numbers of people moving into cities around the world.

Boon or burden?

Where the significance of migration to cities is recognised, it is widely seen as a problem. In 2013, a UN study of all 193 UN member states found that 80 per cent had policies to reduce rural to urban migration. This figure has risen substantially in recent decades, up from only 38 per cent in 1996. It is also more pronounced in poorer countries: 88 per cent of the least developed countries reported policies to reduce migration to urban areas.

But this negative attitude towards migration to cities may well be mistaken. The WMR argues that problems of access to services – such as housing, sanitation, education or employment – that result from rural to urban migration, are not inevitable. Rather, they are caused by poor planning. Although all socio-economic classes are reflected in migration to cities, migrants from rural areas are disproportionately poor, and inadequate planning is often a result of a weak political will to support them.

Yet, as the report pointed out, migrants are especially motivated individuals. It is not only the sheer numbers of people involved that makes migration worthy of attention. All around the world, populations of cities are now more diverse than surrounding rural areas.

In this way, migrants who come to cities can help diversify the networks that the city can draw upon – for instance, by linking cities to broader global networks. Perhaps the most famous example of this is Eastleigh in Nairobi. Known as “Little Mogadishu”, this neighbourhood has become a vibrant, global commercial hub, powered by enterprising members of the Somali, Ethiopian and Kenyan diasporas.

Changing with the times

So how are cities coping and changing with this influx of both internal and external migrants? While the vast majority of migration policies are set on a national basis, it is increasingly common for cities to develop their own approach to integrating people who come to settle.

For example, in the US, many cities support legislation calling for city police forces not to cooperate with certain forms of federal immigration control, which are deemed to be prejudiced against migrant groups. In 2012, the cities of Los Angeles and Chicago passed non-cooperation measures, and in 2014, New York City became the largest city to do so.

Yet much of the research into the impact of migrants on cities concerns international migrants in wealthier countries. A key contribution of the 2015 WMR has been to turn the focus of migration to cities in poorer countries. This migration is often shorter distance, from rural areas that are relatively close.

Slums spread close to the city of Mumbai. Image: liquidcrash/Flickr, CC BY-SA.

Rural to city migration is a much larger movement of people, at a global scale, and is accompanied by a very different set of issues. Adequate housing is probably the most significant of these. Although informal settlements exist all around the world, 97 per cent of slum dwellers live in poor countries.

My own research in Sri Lanka has shown that poor households in urban areas are more likely to be headed by women, and household members are more likely to be employed than the city’s average – this indicates that unemployment is not a key issue. Rather, problems tend to arise as a result of poor planning and forced behaviour change – particularly forced relocation.


These issues are exacerbated when informal settlements develop outside the administrative boundary of the city. For instance, in the Sri Lankan capital, Colombo, as many as 60,000 people are being relocated due to redevelopment of under-served, informal areas of the city.

The project I worked on examined the impact of violence on migrants in the city. Through the surveys conducted with groups of these relocated households, we witnessed the enormous contribution that local community and neighbourhood organisations can make to help those coping with forced relocation and the disintegration of migrant communities.

Migration to cities significantly contributes to urbanisation. And if well planned, migration can enhance the dynamism of cities making them healthier, more profitable and more interesting places to live.

Michael Collyer is a reader in geography at the University of Sussex

This article was originally published on The Conversation. Read the original article.

 
 
 
 

The ATM is 50. Here’s how a hole in the wall changed the world

The olden days. Image Lloyds Banking Group Archives & Museum.

Next time you withdraw money from a hole in the wall, consider singing a rendition of happy birthday. For today, the Automated Teller Machine (or ATM) celebrates its half century.

Fifty years ago, the first cash machine was put to work at the Enfield branch of Barclays Bank in London. Two days later, a Swedish device known as the Bankomat was in operation in Uppsala. And a couple of weeks after that, another one built by Chubb and Smith Industries was inaugurated in London by Westminster Bank (today part of RBS Group).

These events fired the starting gun for today’s self-service banking culture – long before the widespread acceptance of debit and credit cards. The success of the cash machine enabled people to make impromptu purchases, spend more money on weekend and evening leisure, and demand banking services when and where they wanted them. The infrastructure, systems and knowledge they spawned also enabled bankers to offer their customers point of sale terminals, and telephone and internet banking.

There was substantial media attention when these “robot cashiers” were launched. Banks promised their customers that the cash machine would liberate them from the shackles of business hours and banking at a single branch. But customers had to learn how to use – and remember – a PIN, perform a self-service transaction and trust a machine with their money.

People take these things for granted today, but when cash machines first appeared many had never before been in contact with advanced electronics.

And the system was far from perfect. Despite widespread demand, only bank customers considered to have “better credit” were offered the service. The early machines were also clunky, heavy (and dangerous) to move, insecure, unreliable, and seldom conveniently located.

Indeed, unlike today’s machines, the first ATMs could do only one thing: dispense a fixed amount of cash when activated by a paper token or bespoke plastic card issued to customers at retail branches during business hours. Once used, tokens would be stored by the machine so that branch staff could retrieve them and debit the appropriate accounts. The plastic cards, meanwhile, would have to be sent back to the customer by post. Needless to say, it took banks and technology companies years to agree common standards and finally deliver on their promise of 24/7 access to cash.

The globalisation effect

Estimates by RBR London concur with my research, suggesting that by 1970, there were still fewer than 1,500 of the machines around the world, concentrated in Europe, North America and Japan. But there were 40,000 by 1980 and a million by 2000.

A number of factors made this ATM explosion possible. First, sharing locations created more transaction volume at individual ATMs. This gave incentives for small and medium-sized financial institutions to invest in this technology. At one point, for instance, there were some 200 shared ATM networks in the US and 80 shared networks in Japan.

They also became more popular once banks digitised their records, allowing the machines to perform a host of other tasks, such as bank transfers, balance requests and bill payments. Over the last five decades, a huge number of people have made the shift away from the cash economy and into the banking system. Consequently, ATMs became a key way of avoiding congestion at branches.

ATM design began to accommodate people with visual and mobility disabilities, too. And in recent decades, many countries have allowed non-bank companies, known as Independent ATM Deployers (IAD) to operate machines. The IAD were key to populating non-bank locations such as corner shops, petrol stations and casinos.

Indeed, while a large bank in the UK might own 4,000 devices and one in the US as many as 12,000, Cardtronics, the largest IAD, manages a fleet of 230,000 ATMs in 11 countries.


Bank to the future

The ATM has remained a relevant and convenient self-service channel for the last half century – and its history is one of invention and re-invention, evolution rather than revolution.

Self-service banking and ATMs continue to evolve. Instead of PIN authentication, some ATMS now use “tap and go” contactless payment technology using bank cards and mobile phones. Meanwhile, ATMs in Poland and Japan have used biometric recognition, which can identify a customer’s iris, fingerprint or voice, for some time, while banks in other countries are considering them.

So it’s a good time to consider what the history of cash dispensers can teach us. The ATM was not the result of a eureka moment of a single middle-aged man in a bath or garage, but from active collaboration between various groups of bankers and engineers to solve the significant challenges of a changing world. It took two decades for the ATM to mature and gain widespread, worldwide acceptance, but today there are 3.5m ATMs with another 500,000 expected by 2020.

Research I am currently undertaking suggests that ATMs may have reached saturation point in some Western countries. However, research by the ATM Industry Association suggests there is strong demand for them in China, India and the Middle East. In fact, while in the West people tend to use them for three self-service functions (cash withdrawal, balance enquiries, and purchasing mobile phone airtime), Chinese customers consumers regularly use them for as many as 100 different tasks.

Taken for granted?

Interestingly, people in most urban areas around the world tend to interact with the same five ATMs. But they shouldn’t be taken for granted. In many countries in Africa, Asia and South America, they offer services to millions of people otherwise excluded from the banking sector.

In most developed counties, meanwhile, the retail branch and the ATM are the only two channels over which financial institutions have 100 per cent control. This is important when you need to verify the authenticity of your customer. Banks do not control the make and model of their customers’ smart phones, tablets or personal computers, which are vulnerable to hacking and fraud. While ATMs are targeted by thieves, mass cybernetic attacks on them have yet to materialise.

The ConversationI am often asked whether the advent of a cashless, digital economy heralds the end of the ATM. My response is that while the world might do away with cash and call ATMs something else, the revolution of automated self-service banking that began 50 years ago is here to stay.

Bernardo Batiz-Lazo is professor of business history and bank management at Bangor University.

This article was originally published on The Conversation. Read the original article.