Urbanization is a sign of modernization, industrialization and mobility. It stands for a transformation in the social environment, political organization and division of work. On the other hand urbanization (especially in the developing world) poses various challenges: poverty, low social care and criminality, as well as problems of waste disposal and pollution.

While urban population in North America (more than 70%) and Europe (more than 60%) has already reached a high level, the proportion is much smaller in Asia. Apart from the city-states of Singapore and Hong Kong only Japan and South Korea are highly urbanized, along with Australia and New Zealand in the Pacific area.

Source: 2005 World Bank, UN Population Division's World Urbanisation

The global process of urbanization will continue into the twenty-first century, most significantly in the rapidly changing societies in Asia: Philippines, Indonesia, China and Malaysia. South Korea is exceptional for its continued urbanization after reaching a high level of economic development. The highly urbanized countries in developed Asia, Europe and North America on the other hand will see little change in the balance between countryside and city. The de-urbanization in Estonia and Latvia shows a significant social change in these post-communist states.

Asian cities will rise in prominence, spawning not only mega-cities of populations well over ten million, but also dominating the ranks of the world's largest cities. By 2015, Asia will be the home of 53 of the world's 100 most populous cities, compared to 11 in North America and 10 in Europe.