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Urbanization is a term that describes the process of movement of people from a rural area to an urbanized area. This phenomenon is closely connected with migration flows, labor supply, and innovations in the means of production. It had (and still has) a strong impact on the physical shape of the urbanized area and on the experience of urbanized people.

Urbanization is also related to the concept of modernization. Through the observation of changes occurring in the city during the Industrial Revolution, philosophers and social scientists described the birth of the modern era in many European and American cities.

Urbanization also brings diverse groups of individuals into a particularly intense daily contact, producing the conditions for the achievement of cityness, different forms of urbanities, and conflicts. The density and heterogeneity of people also imply the development of cultural disposition that, together with the concentration and reproduction of capital, has a strong impact on the development of consumer culture. According to Max Weber, cities are, above all, market settlements and places of commerce and trade. In addition, according to Georg Simmel, cities are centers for the promotions of culture and places where self-expression could be possible.

Since urbanization began, it has continued to evolve. It has changed its geography and proportion according to the global relocalization of production systems, moving from Western cities (such as Manchester and Chicago) to today's main centers for global economy in developing countries (e.g., Shanghai in China or São Paulo in Brazil), which have registered unprecedented rates of urbanization. According to the Global Urban Observatory at the United Nations, the rate of urbanization has been so considerable in the past fifty years that the majority of the world's population now lives in urban areas and it is expected to reach five billion people by 2030.

Urbanization and Capitalism

Different phases of the history of capitalism led to different urbanization phases. The term urbanization originally referred to the First Industrial Revolution of the eighteenth century, which took place in the United Kingdom. This phase gave rise to the classical factory towns (e.g., Manchester in the United Kingdom). The Second Industrial Revolution of the early nineteenth century, mainly due to the rapid expansion of innovations in the industrial sector and to the development of steam-powered ships and railway connections, produced an increase in urbanization rates in North European countries and North America. This phase resulted in rapid urban growth (e.g., Chicago in the United States). Later on, the twentieth century witnessed the rapid urbanization of the world's population, all basically bound to places where production complexes and their associated labor markets were localized. The rise of Ford's mass production was associated with the growth and spread of the large metropolis (e.g., Detroit in the United States).

At this point, capitalism was driven by mass consumerism, and consumption starts to be considered the engine that drives the economy of the Western world. A good example is the massive shift to an automobile-based service economy that accelerated the rate of suburbanization. A high number of workers moved to the suburbs, and a phenomenon described as “residential sprawl” became the new trend in urban growth, fostered by investments in high-speed motorways. This trend has been described as a counterurban movement because one of the reasons for moving away from the inner city is the perception of the city as congested and unsafe.

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