The Role of Industrialization for Urban Development in Bole Lemi Industrial Park

Table of Content

Contents

Declarations

Approval

Abstract

Acknowledgement

Table of Content

List of Tables

List of Figure

List of Annex

List of Acronym

CHAPTER ONE
1.INTRODUCTION
1.1Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.3.1 General Objective
1.3.2 Specific Objectives
1.4 Research Questions
1.5 Significance of the Study
1.6 Scope of the Study
1.6.1 Spatial Scope
1.6.2 Thematic Scope
1.6.3 Temporal Scope
1.7 Description of the study area
1.8 Organization of the Thesis
1.9 Limitation of the Study
1.10 Conclusion

CHAPTER TWO
2. LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual Definition of Terms
2.3 Theoretical Literature Review
2.3.1 The Basic Concept of Industrialization and Urbanization
2.3.2 History of Industrialization and Urbanization
2.3.3 The Nexus between Industrialization and Urbanization
2.3.4 Sustainable Urban Development
2.3.5 The Role of Industrialization for Urban Social Development
2.3.6 The Contribution of Industrialization for Urban Economic Development
2.3.7 The Impact of Industrialization on Urban Environment
2.3.8 Indicators of Urban Development
2.4 Empirical Literature
2.4.1 The Role of Industrialization for Urban Socio-Economic Development
2.4.2 The Impact of Industrialization on Urban Environment
2.4.3 Industrialization in Ethiopia
2.5 Research Gap
2.6 Conclusion

CHAPTER THREE
3.RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Methods of Data Collection
3.4 Sampling Design
3.4.1 Population of the study
3.4.2 Sampling Frame
3.4.3 Sample Size
3.4.4 Sampling Technique
3.5 Sources of Data
3.6 Data Analysis and Interpretation
3.7 Data Presentation
3.8 Conclusion

CHAPTER FOUR
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 Overview of Policy Environment in Ethiopia
4.2.1 FDRE Industry Development Strategy of 2001/1994 E.C
4.2.2 FDRE Urban Development Policy of 2013/2005 E.C
4.3 Overview of Industrialization in the City of Addis Ababa
4.4 Response Rate
4.5 Respondents Biography
4.6.1 Bole Lemi IP as a Part of Urban Development Projects in Addis Ababa
4.6.2 The Contribution of Bole Lemi IP for Social Development in Addis Ababa
4.6.3 The Role of Bole Lemi IP for Economic Development in Addis Ababa
4.6.4 The Outcome of Bole Lemi IP on the Urban Environment in Addis Ababa
4.6.5 Institutional Set-up for Implementation of Industry Led Urban Development Strategy
4.7 Data Interpretation and Discussion
4.7.1 The Contribution of Bole Lemi IP for Social Development in Addis Ababa
4.7.2 The Role of Bole Lemi IP for Economic Development in Addis Ababa
4.7.3 The Outcome of Bole Lemi IP on the Urban Environment in Addis Ababa
4.8 Conclusion

CHAPTER FIVE
5.CONCLUSION AND RECOMMENDATION
5.1 Introduction
5.2 Conclusions
5.3 Recommendations

References

Annexes

Declarations

I, Emebet Hailemichael Admassu, ID. Number ECSU1701323, do hereby declare that this thesis is my original work and it has not been submitted partially or in full by any other person for the award of a degree or a masters degree in any university or institution.

Name of Participant Signature Date

This thesis has been submitted for examination with my approval as University supervisor.

Name of Advisor Signature Date

Approval

The undersigned certify that they have read and hereby recommended to the Ethiopian Civil Service University to accept the Thesis submitted by Emebet Hailemichael Admassu, and entitled “The Role of Industrialization for Urban Development: The Case of Bole Lemi Industrial Park, Addis Ababa”, in partial fulfillment of the requirements for the award of a Master’s Degree in Urban Management.

Name of Advisor Signature Date

Name of Internal Examiner Signature Date

Name of External Examiner Signature Date

Name of Head of Department Signature

Abstract

Industrialization has brought a great socio-economic transformation and a huge wealth accumulation for the developed nations. It was the driving force in most developed and international cities that makes them to be the most developed and competitive city. Taking this experience into account, industrialization is generally accepted as the most prominent strategy to bring urban development in developing countries including Ethiopia. This study has investigated the role of industrialization for urban development specifically socio-economic development and environmental effect in Addis Ababa by using descriptive research design. Primary and secondary data were collected through multiple data gathering tools i.e. questionnaire, interview, observation and document review, and probability and non-probability sampling methods were applied. The collected data was analyzed through narration and descriptive analysis method. Bole Lemi IP has played role in achieving social development of the urban community through the provision of infrastructure and services to the previously underserved community. But the social development opportunity brought by this industrialization is unequal since communities living around the IP are still deprived of basic services and infrastructure. This is due to lack of integration between industrialization and urban development. The relocated households have been introduced with structural change in their way of life; however, they become exposed to the risk of impoverishment. Even if part of the urban community i.e. relocated households has become vulnerable to economic hardship and industrial employees remained the working poor, the IP is playing significant role for economic development. To boost the role of industrialization for holistic urban development creating strong integration between industrialization and urban development and building synergy between different government institution and their goals is a must. This is because swinging together with different feathers is not the choice that can be made it is obligatory instead.

Key words: Industrialization Urban Development Bole Lemi Industrial Parks

Acknowledgement

I would like to express my heartfelt gratitude for Ministry of Trade and Industry, Ethiopian Investment Commission, Industrial Parks Development Corporation, Addis Ababa Industry Development Bureau, Addis Ababa Environment Protection and Green Development Commission, Ethiopian Revenue and Custom Authority and Bole Lemi Industrial Park and their respective directors, experts and employees for their priceless contribution through the provision of data and information required for the successful accomplishment of this thesis. I would also like to pass my sincerely thank for Bole Sub City Woreda 11 residents for their cooperation in filling questionnaire. I am very much indebted to my advisor, Ato Molla Aynabeba , for his precious contribution in guiding me and supervising over my work. Finally, I would like to pass my appreciation to Ethiopian Civil Service University for its free internet service.

List of Tables Pages

Table 3.1: Manufacturing industries in Bole Lemi I Industrial Park.

Table 3.2: Sample proportion

Table 4.1: Respondents biography

Table 4.2: Opportunities brought by Bole Lemi IP to the society

Table 4.3: The contribution of Bole Lemi IP to provide improved access to electric power service to the community

Table 4.4: Increased access to safe drinking water due to the emergence of Bole Lemi IP

Table 4.5: Improved access to communication due to Bole Lemi IP

Table 4.6: The role of Bole Lemi IP in improving community access to education service

Table 4.7: Improved community access to safety and emergency services and transportation option due to Bole Lemi IP

Table 4.8: Housing subsidy for industry workers working in Bole Lemi IP

Table 4.9: Number of Bole Lemi IP project affected households by phases and sex of heads

Table 4.10: Proper compensation for the affected property

Table 4.11: Current living condition of displaced households

Table 4.12: Livelihood strategies/income sources of Bole Lemi IP Project affected HHs

Table 4.13: Annual export in Bole Lemi IP

Table 4.14: Number of employees in Bole Lemi IP in 2018/19

Table 4.15: The nature of industry jobs in Bole Lemi IP inspire employees to improve their education

Table 4.16: Income generation opportunities created by Bole Lemi IP to the community

Table 4.17: The adequacy of salary to cover all living expenses of industry workers in Bole Lemi IP

Table 4.18: Improved life of the urban community after the opening of Bole Lemi IP

List of Figure Page

Figure1.1 Location map of the study area

Figure 4.1 The role of Bole Lemi IP in improving community access to better quality road

Figure 4.2 Access roads and drainage structure in Bole Lemi site in 2015 and 2019

Figure 4.3 Electricity poles being erected in Bole Lemi site in 2015

Figure 4.4 Improved communication services provided to the community as a result of Bole Lemi IP

Figure 4.5 Primary school (Grade 1-8) under construction in 2015 and current status

Figure 4.6 Improved community access to health care service

Figure 4.7 Housing projects by Shintis ETP Garment PLC

Figure 4.8 Greenery inside Bole Lemi I IP

Figure 4.9 Types of waste produced by Bole Lemi IP

List of Annex Page

Annex I –Data Collection Tools

Annex II –Work plan and budget breakdown

Annex III – Oprationalization of framework

Annex IV – Letters of Introduction and Permission

Annex V- Industrialization in Addis Ababa

Annex VI - Employment type in Bole Lemi IP

Annex VII - Relocated Population, Affected Property, Compensation Estimate and Current Livelihood of Bole Lemi IP Projects Affected Households

Annex VIII - Amount of Waste Generated by Bole Lemi IP

List of Acronym

BA – Bachelor of Art

BSC – Bachelor of Science

CO2 – Carbon Dioxide

E.C – Ethiopian Calendar

E.F.Y – Ethiopian Fiscal Year

EIA – Environment Impact Assessment

EIC – Ethiopia Investment Commission

ERCA – Ethiopian Revenue and Custom Authority

ESIA – Environmental and Social Impact Assessment

ESMP – Environment and Social Management Plan

Est. – Establishment

ETB – Ethiopian Birr

FDI – Foreign Direct Investment

FDRE – Federal Democratic Republic of Ethiopia

FDRE-GTP II – Federal Democratic Republic of Ethiopia Growth and Transformation Plan

G.C – Gregorian Calendar

GDP – Gross Domestic Product

GoE- Government of Ethiopia

Ha – Hectare

Hazmat – Hazardous Material

HH - Household

HRM- Human Resource Management

ICT Park – Information Communication Technology Park

IP - Industry Park

IPD – Industrial Parks Development

IPDC - Industry Parks Development Corporation

IPDC-CJCP- Industrial Parks Development Corporation-Competitiveness and Job Creation Project

M2 – Meter Square

M3 – Meter Cube

MA – Master of Art

MOTI – Ministry of Trade and Industry

MSC – Master of Science

MSE - Micro and Small Scale Enterprises

MW- Mega Watt

OSS – One-Stop-Shop

PAPs – Project Affected Persons

PIT- Personal Income Tax

PLC – Private Limited Corporation

PRPO – Peasant Rehabilitation Project Office

RAP – Resettlement Action Plan

TVET – Technical and Vocational Education and Training

UNCTAD - United Nations Conference on Trade and Development

UNECA -United Nations Economic Commission for Africa

UNIDO - United Nations Industrial Development Organization

USD – United States Dollar

VAT- Value Added Tax

VOC- Volatile Organic Compounds

CHAPTER ONE

1. INTRODUCTION

Industrialization is one of the greatest human achievements in history. The current prosperity and high level of urbanization of the Western is the result of industrialization that has been started centuries ago. However, industrialization and urbanization in Ethiopia is just a recent phenomenon and urbanization is not the result of industrialization. The current government has set agriculture led industrial and industry led urban development policy and strategies to bring a holistic development. Following these policies and strategies industries are being expanded throughout the country. In Addis Ababa the concentration of industries is getting higher from time to time. However, their role for sustainable urban development seems doubtful since the socio-economic problems and environmental degradation seems getting increasing. Therefore, it is necessary to conduct scientific investigation on the role that industrialization is really playing to bring urban development in general and its contribution for social development and economic advancement and its impact on the urban environment in particular. This is what inspired the researcher to conduct the study on this area.

1.1 Background of the Study

Industrialization is the process of transforming agrarian-rural society to industrial-urban community which is dominated by the production and distribution of tradable goods and services. It is conventionally traced back to the late 18th Century with the advent of industrial revolution in England. This period is distinguished by the proliferation and growth of manufacturing within the factory system which is mainly featured by mechanical power, the employment of specialized, waged labour and the mass production of commodities (Hayter 2012: 1). Of course this industrialization has brought a great socio-economic transformation and a huge wealth accumulation for those industrial nations. With this respect Signe (2018) asserted that industrialization has transformed the United States, United Kingdom, France, Germany and Japan into the world’s most prosperous nations throughout history. Most recently, China has become the fastest growing economy ever in the globe and this happened to China with the help of industrialization. However, this is not true in Africa since industrialization is a very recent phenomenon in the continent. UNECA and UNIDO (2006:1) articulated that African economies have scantly concentrated on agricultural production and mineral extraction which only generate very limited income for a largely rural population. Despite this shallow focus on primary production, there is a general consensus that industrial growth is imperative to the development of African cities (ibid). A vigorous industrial sector specifically manufacturing segment is generally understood as a very essential path to urban economic growth and development among policy makers and scholars (Signe 2018).

To realize the contribution of industrialization towards urban development in Africa developing urban centers and achieving high level of urbanization is a must. The great accumulation of people in urban centers is required for the development of industries since urban communities are both the workforce of industries and consumers of their product. World Economic Forum (2015: 3) expressed that urban centers are an efficient way of organizing people’s lives and the base for the increasing economies of scale and network effects. This is due to the existence of diversity of talent in close proximity which can spark innovation, breeding of new ideas and the increment of information and knowledge capital which is the prominent input for industrialization (ibid). Urban economic prosperity along with structural and social change becomes evident due to not only the concentration of large volume of people in relatively small geographic area but also the agglomeration of industries and services (Tsegaye 2010: 2; Nia & Mehdipou 2013: 177; UN-Habitat 2016:143; UNECA 2017).

Taking the experience of industrial nations, African countries are preaching the importance of industrial development and setting industrialization as their prior development strategy. The African Union has positioned the industrial sector in the front and at the heart of its Agenda 2063, and African governments are continuously looking for latest and innovative economic means and designing and implementing comprehensive strategies (Signe 2018). Likewise, Ethiopia has planned to become a lower middle income country by 2025 as described in FDRE-GTP II (2016) seeking to achieve double digit growth, increase its GDP, generate more job opportunities and increase international competitiveness. To achieve this industrial parks are being constructed with physical infrastructures and services. Moreover, the FDRE Urban Development Policy (2013: 10) has identified and set industrialization as the core urban development strategy. In spite of the general consensus that industrialization would bring urban development in developing countries, there are debates on the role of industrialization towards urban development. Storm (2017) outlined that Scholars like Ignacy Sachs (1979) argued that industrialization strategies in developing countries have failed to bring social and economic development and meet environmental requirement in urban areas. On the contrary, the Kaldorian approach declared manufacturing as a growth engine which drive structural change, labour productivity, saving and investment (ibid). Keeping this at the heart of the study, this research investigated the role of industrialization for urban development in the case of Bole Lemi Industrial Park, Addis Ababa.

1.2 Statement of the Problem

A good industrial policy and indeed industrial development needs to address and integrate social, economic and environmental aspect of urban development. This is because industrialization has its own detrimental effect on the social, economic and environmental facet of urban centers (Nia & Mehdipou 2013: 176). Although Ethiopia has a strong aspiration of achieving sustainable urban development through industrialization, the practice of integrating economic, social and environmental aspects of urban management with industrial development to bring concurrent development in all three dimensions seems constrained. Currently, Addis Ababa, the capital of Ethiopia, is struggling with various urban management crises which can broadly be segmented into social, economic and environmental mess. Since Addis Ababa is the largest city, huge number of people influx into the city looking better quality of life. This ever-increasing population becomes a challenge for the city and makes urban management task nearly beyond the reach of urban managers. This is because the discrepancy between demand and supply of urban services and infrastructure becomes wider; housing problem is reaching on its boom; homelessness, slums and informality are exploding; joblessness and income inequality are expanding; poverty is proliferating over time, and the living environment is getting highly deteriorated. These are the socio-economic and environmental urban calamities from which Addis Ababa is suffering. All these urban crisis need solution that is capable of ensuring social gain and security, bringing economic progress and keeping ecological balance, and industrializing the city seems a good solution.

Industry-led development strategy is set as the prominent urban development strategy in Ethiopia, and the Government of Ethiopia has earmarked land for industrial development across the country. This is also evident in Addis Ababa. Industrialization is believed to bring socio-economic transformation; expel poverty, joblessness, hunger, homelessness, service deprivation, infrastructure dispossession and environmental deterioration and to become self-reliant in the long run. The question is whether the prevailing industrialization process is integrated with other urban development tasks and really bringing the dreamed change in urban center or not. Besides, cities in Ethiopia are consumption cities where the role of manufacturing is very low. Manufacturing industry in Ethiopia is at its infant stage (Arkebe 2015: 69). Currently, manufacturing industries are expanded throughout the country, especially in Addis Ababa. However, the role of these industries in substituting imports and transforming Addis Ababa from consumption into production city seems suspicious that needs to be examined. Furthermore, the government is trying to attract investors through the provision of serviced land. This land provided to investors is mostly farm land located in the urban peripheries taken through land acquisition process. This in turn has its own socio-economic effect on the expropriated community. To this end, examining and analyzing the role of industries in Bole Lemi IP for the social and economic development of the urban community and environmental preservation in Addis Ababa becomes crucial. This is what this research seeks to achieve.

1.3 Objective of the Study

1.3.1 General Objective

The study aims to analyze the role of industrialization for urban development in the case of Bole Lemi Industrial Park, Addis Ababa.

1.3.2 Specific Objectives

The following specific objectives are spelt out:

1. To scrutinize the contribution of Bole Lemi IP for social development in Addis Ababa.
2. To examine the role of Bole Lemi IP for urban economic development in Addis Ababa.
3. To dissect the positive and negative outcome of Bole Lemi IP on the urban environment.

1.4 Research Questions

1. What are the social development contributions of Bole Lemi in Addis Ababa?
2. What are the economic development roles of Bole Lemi IP in Addis Ababa?
3. How Bole Lemi IP affected the environment in Addis Ababa?

1.5 Significance of the Study

This research will be significant to the government since it may provide valuable information that could be utilized for policy reform, to make a paradigm shift in its investment laws and development strategies and make informed decision that integrate economic, social and environmental aspects. This informed decision may bring change or progress on the life of the community in such a way that integrated development strategy enables to safeguard social gains and security. It will also be noteworthy for paving the way to urban managers to take a great part and play a pivotal role in urban development policy making, development program designing and their implementation as well as to follow up and promote the real contribution of industries for urban development instead of leaving the issue of industries to the industry related agencies. It will also inform them what gap may exist in urban development activities, how industrialization of cities will help them to eradicate urban management headache and how integrating urban management issues with the urban development activities is mandatory to bring real development for their cities.

Moreover, most of the times industrial development has been understood by urban managers as the engine of economic growth, and it is rare to understand and manage industrial development in such a way that can bring social transformation and ecological protection as well. This understanding undermines the role that industries might play for social development and environmental preservation. This indicates the existence of knowledge gap, and this study will play a prominent role in filling that discrepancy. In addition, it will serve as an input for other researchers especially researchers in urban development and management field. This study may spark other questions or resulted in breeding of new problems that are researchable and needs extra examination. Therefore, this research can be a baseline or just inspirational inscription for other deep and further investigation.

1.6 Scope of the Study

1.6.1 Spatial Scope

The study is confined to Bole Lemi IP that has occupied a total area of 342 hectare of land in Addis Abba. The choice of the study area is driven by the fact that Bole Lemi IP is the first government owned industrial park in Ethiopia that established with the ultimate goal of bringing sustainable development to the country in general and to the urban community in particular. To make sure as the IP is contributing for the achievement of the intended goal it is necessary to investigate whether this IP is actually contributing for socio-economic development and how it is affecting the micro environment.

1.6.2 Thematic Scope

The study addressed issues related with the role of industrialization towards solving urban management crisis and ensuring urban development. It encompasses the contribution of Bole Lemi IP for urban social transformation in terms of improving access to physical and social infrastructure as well as the creation of sustainable livelihood for project affected persons. It also deals with its role for economic development in terms of increasing national GDP, role in inspiring domestic market, substituting import and transforming Addis Ababa into production city, creating employment opportunity and reducing poverty. It also deals with the environmental effect of the IP in terms of efficient resource use and environmental conservation, waste and pollution control and environmental management system.

1.6.3 Temporal Scope

This study was started on March 2019 and tentatively, it will be completed at June 2019 G.C.

1.7 Description of the study area

Bole Lemi Industrial Park is divided into two phases i.e. Bole Lemi I and II projects. Bole Lemi Phase I Industrial Park is the first industrial park in Ethiopia established by Industrial Parks Development Corporation. It is an export processing zone that has started operations in 2014 with all pre-erected factories already rented-out to more than 12 different corporations (IPDC 2015). It is located in the south eastern part of Addis Ababa, Bole Sub-City, Woreda 11; 15 km south east from the city center; 7k from the Ring Road; 6km from Bole International Air Port, and 4 km away from Goro Square. It has covered the total land area of 156 hectares (ibid), and it has a total of 20 sheds of which 10 sheds with an area of 11,000 m2 and the remaining 10 sheds occupied an area of 5500 m2 each. Industries in this IP are manufacturing industries which are in the cluster of apparel and textile and leather and leather products (shoes) (Ethiopian Investment Commission 2018). Similarly, Bole Lemi Phase II IP is one of the newly initiated IP project. Its location is the same to Bole Lemi I IP. It is currently being developed within the total land area of 186 hectares, and it includes both serviced land (from the beginning of 2016) and pre-erected factory shed (from 4th quarter of 2016) (IPDC 2015). It has only 2 pre-erected sheds built by Vests Garment Production PLC which is owned by an Indian investor currently operated in Bole Lemi I IP and the remaining part is just only serviced land. In Bole Lemi II project IPDC has changed its development strategy from providing pre-erected factories with the required social and physical infrastructure to the provision of land that is pre-serviced with the necessary facilities so as to allow investors to build their factories as their cluster of production aspire (personal phone interview with the After Care and IP Management Directorate Director of IPDC).

Abbildung in dieser Leseprobe nicht enthalten

Figure1.1 Location map of the study area (Source: IPDC-CJCP 2015)

1.8 Organization of the Thesis

This thesis is organized in to five chapters. Chapter one encompasses introduction ranging from background to limitation of the study. Chapter two deals with reviewing different theoretical and empirical literatures related with the subject under investigation as well as the research gap, and chapter three covers research design and methodology including research design, data source and data gathering method, sampling design and techniques of data presentation and analysis. The fourth chapter presents analyzes and interprets the collected data and the last chapter, chapter five, provides conclusion and recommendation. In addition to these, the thesis has preliminary and supplementary parts.

1.9 Limitation of the Study

Bole Lemi Industrial Park has resulted in the landlessness and eviction of 346 agricultural households, and the researcher has attempted to examine the effect of this relocation on the livelihood of those displaced households. The researcher has taken 15 households as a sample through simple random sampling technique and collected data from them through questionnaire. However, the sample size was too small that can never represent the total population, and this would have a detrimental effect on the reliability of the result of the study. To minimize the negative effect of this small sample size the researcher reviewed various official reports that has been compiled in 2014, 2015 and 2019, and backed up the scanty primary data with extensive secondary data.

1.10 Conclusion

Industrialization is generally understood as an important strategy for national development in general and urban development in particular. Based on this general consensus the GoE is expanding industries and IPs in different part of the country. Addis Ababa takes the lion share for the expansion of industries since it is obvious that most of industries in Ethiopia are concentrated in this city due to a lot of reason including the availability of better infrastructure and services. However, despite the general norm of setting industrialization for sustainable urban development, it is crucial to examine the practical contribution of industrial expansion for urban development. This thesis has investigated the contribution of industrialization specifically Bole Lemi IP towards social and economic progress and their effort of keeping ecological balance in Addis Ababa.

CHAPTER TWO

2. LITERATURE REVIEW

2.1 Introduction

Theoretical and empirical literatures related with the issue under study i.e. the role of industrialization for urban development are reviewed. Taking the objective into due consideration theories about the nexus between industrialization and urban development, the role of industrialization to social and economic development, environmental impacts of industrialization, indicators of urban development, and different countries experience in relation to the role of industrialization in their development process and the impact of industrialization in the environment are discussed.

2.2 Conceptual Definition of Terms

Consumption City: Resource-exporting urban centers where larger fraction of workers are employed in non-tradable services. Consumption cities are the result of an increase in natural resource revenue (Jedwab, Gollin & Vollarth 2016).

Development: The process of economic and social transformation that is based on complex cultural and environmental factors and their interaction (Business Dictionary 2019).

Industrialization: Sustained economic development based on factory production, division of labour, concentration of industries of industries and population in certain geographical areas, and urbanization (Business Dictionary 2019).

Industrial Park: A special area on the edge of a town where there are a lot of factories and businesses (Cambridge Dictionary 2019).

Manufacturing: The process of converting raw materials, components, or parts into finished goods that meet customers’ specification or expectation with the help of machineries and human power (Business Dictionary 2018).

Production Cities: Cities where a larger fraction of workers are engaged in manufacturing or tradable services. Production cities are the result of productivity improvements (Jedwab, Gollin & Vollarth 2016).

Sustainable Urban Development - Sustainable urban development is about ensuring economic development, social equity and ecological integrity in urban centers (Saha & Paterson 2008: 22).

2.3 Theoretical Literature Review

Concepts, theories and history that support the issue under investigation are discussed below.

2.3.1 The Basic Concept of Industrialization and Urbanization

Industrialization refers to a deep and pervasive transition from a pre-industrial to an industrial society and the emergence of modern economic growth that can be explained by a sustained and substantial increase in real gross domestic product per capita (Vries 2008). ‘Industrialization is a generic name for a set of economic and social processes related to the discovery of more efficient ways for the creation of value’ (Simandan 2009: 419). Industrial activity has spectacularly widened its scope and scale as manufacture has become replaced by machinofacture starting from the late seventeenth century. Industrialization is an emergent process (Vries 2008; Simandan 2009: 419) resulting from a collection of similar activities not a onetime event (Simandan 2009). The opening of one industrial plant in a specific geographic location cannot be labeled as industrialization. Instead the collection of events of the same kind that achieves sufficient significance for the local economy can be labeled as the process of industrialization. Industrialization is a qualitative economic change occurring whenever agrarian economy becomes affected by the opening of new industries to a great extent. It is an emergent property of an economic system resulting from the spatially patterned aggregation of similar economic activities (Simandan 2009: 419). It is necessary to measure the threshold of industrialization to make sure as industrialization is really taking place. There are three major ways to decide whether one national or regional economy is undertaking industrialization. These are comparison of relative contribution to gross domestic product of the manufacturing sector with that of the agriculture; comparing the percentage workforce employed in industry versus agriculture, and observing the landscape of a region (since industrial activities require an extreme alteration in the landscape they are easier to spot (ibid).

Industrialization is the causative factor of urbanization (Tah & Ghosh 2015: 115). Nsiah-Gyabaah (2003:4) defined urbanization as a massive transition of people from rural areas to urban centers and this movement is a spectacular consequence of industrialization that goes on the same direction even hand in hand with human settlement. Moreover, Rai (2017: 127) defined urbanization as a general increase in population and the amount of industrialization of a settlement, and it represent the movement of people from rural to urban areas. Urbanization is the process that can best be explained by the gradual as well as radical increment of population proportion residing in urban centers. On the same token, Nsiah-Gyabaah (2003: 2) stated that rapid urbanization is an in outward expansion of the built-up area, converting prime agricultural land into residential and industrial uses. It also leads to the construction of high-rise buildings and vertical commercial development in specific zones.

To sum up, industrialization is process that transforms the socio-economic structure since it is related with the mass influx of people from rural to urban areas and brings environmental transformation since it alters the landscape and change the natural environment into built-up area.

2.3.2 History of Industrialization and Urbanization

Industrialization started with industrial revolution which is one of the greatest and most celebrated watersheds in human history. It was the result of an economic expansion that began in the sixteenth century. The eighteenth century does represent a critical break in the history of technology and the economy. During this period a number of well-known inventions come into existence which includes the spinning jenny, the steam engine and coke smelting. These inventions make industrial revolution a technological revolution that took the West into the mass prosperity of the 21st century (Allen 2006: 1-2). Industrialization originated in England, and as depicted by historians of industrialization, industrialization has three periods. The first period of industrialization only refers to England and pertain historical incident between 1763 and 1864. The second encompasses countries such as United States of America, United States of Soviet Russia, Germany and Japan which became industrialized in the nineteenth and the beginning of twentieth century. The third period of industrialization refers to countries that have begun their industrialization after World War Second (e.g. the tigers and dragons of Southeast Asia). These periods of industrialization reflects as all other countries except England have had at least some other model of industrialization from which they could take lessons. England is unique in that their industrialization appeared spontaneously from the scratch (Simandan 2009: 420).

Chen et.al (2014: 2) stated that urbanization began during the Industrial Revolution. It refers to the increasing number of people that live in urban areas. Urbanization is not only about a simple enlargement in the number of urban residents but also involves a series change from rural to urban styles in terms of industry structure, employment, living conditions, and social public services. Fox (2012: 285-286) articulated that urbanization is a global historical process driven by technological and institutional transformation and population dynamics. Before the 19th century the proportion of people residing in urban area was small. This is because of the scarcity of surplus energy supplies and the proliferation of and inability to control communicable and parasitic diseases. However, the combination of technological and institutional innovations of 18th and 19th centuries eradicated these drawbacks and the proportion of urban population start growing through rural-to urban migration and natural growth especially due to the decline of mortality (ibid). This indicates the history of urbanization is more or less laid up on the history of industrialization. And this is true in the developed countries where their urbanization is highly associated with their socio-economic transition and technological and institutional transformation. However, it may not work for the developing countries. With this regard Jedwab, Gollin & Vollarth (2013: 2) asserted that there is no strong correlation between urbanization and level of industrialization in the sample of developing country. This indicates in developing nations the probability of urban center to be the consequences of industrialization is low. Samson & Tiwari (2012: 60) underlined that urbanization in developing countries is not concurring with industrialization which makes contrary to that of developed countries.

2.3.3 The Nexus between Industrialization and Urbanization

Urbanization can follow different pattern in different settings. In countries where there is structural transformation urbanization is a by-product of a push from agricultural productivity and a pull from industrial productivity growth. In such countries urbanization occurs following industrialization and generates production cities with a mix of workers in tradable and non-tradable sectors. In other countries that rely on natural resources exports, urbanization has increased a rapid pace. However, urbanization has not been associated with growth in the manufacturing or service share of GDP instead it is driven by the income effect of natural resources endowment (Jedwab, Gollin & Vollarth 2013: 2). Historically, the nexus between industrialization and urbanization has been broken down in most of developing nations, especially, in natural resource exporters that have urbanized without getting industrialized (Jedwab, Gollin & Vollarth 2016). Some countries which are natural resource exporters reach 80% urbanization rates with only 20% of their DGP coming from manufacturing and services. In Asia and Latin America urbanization is strongly associated with industrialization where the share of manufacturing and service in GDP is high. Where as in Africa and Middle-East there is no such association where the share of natural resources in GDP is associated with urbanization (ibid). This is also true in Ethiopia where urbanization is not happened as a result of industrialization and natural resources and agricultural products still takes the highest share of exports.

Jedwab, Gollin & Vollarth (2016) asserted that a strong positive relationship between industrialization and urbanization has been maintained in non-resource-exporting countries. The process of industrialization i.e. structural transformation from agriculture into manufacturing involves a shift of labour from rural areas into urban centers (Jedwab, Gollin & Vollarth 2013: 2). The Western development path has explicated as urbanization is the result of industrial development with succeeding demand for labour and growth in demand for diverse goods and services (Samson & Tiwari 2012: 65). Zhang (2017: 22) showed that urbanization seems to be directly related with industrial development and this is evident in China since China’s urbanization is successfully led by industrialization. Industrial development, specifically the rise of manufacturing segment, is broadly seen as the engine of economic growth which is one requirement for urban development (ibid). Alvarez-Cuadrado and Poschke (2011: 127-158); Michaels, Rauch & Redding (2012: 44-45) explained that urbanization and industrialization can be treated as the different pages of the same coin. This is due to the fact that industrialization brings the structural transformation from agriculture into manufacturing and services and this structural transformation resulted in the influx of agricultural workforce out of rural areas into urban centers which in turn increase the proportion of urban population and economic growth. In general, there is a strong association between industrialization and urbanization, and their nexus is evident throughout the history of many countries especially in developed Western nations since their urbanization and the current prosperity is the result of their industrialization process i.e. the industrial revolution, the most celebrated human history.

2.3.4 Sustainable Urban Development

Sustainable urban development is a broad concept and on-going process which deals with the social, economic and environmental aspects of urban areas. It brings a great challenge to urban managers since they have to deal with each and every aspect of social, economic and environmental issues of urban centers. To bring sustainable urban development there should be a balance between social issues, economic activities and the environment. Rasoolimanesh, Badarulzaman & Jaafar (2011: 623) stated that to achieve sustainable urbanization economic, social and environmental necessities must be kept at equilibrium. Cities need to develop their social and economic structure in such a way that could be able to achieve sustainable urbanization and urban development without any environmental cost. Sustainable development is a recently erected dominant policy paradigm which greatly expects cities in order to play a vigorous role (ibid). Sustainable urban development is an integrative process which encompasses the socio-cultural, economic and ecological aspects of urban areas. It is concerned about a wide variety of issues including good human health conditions, and it necessitates a strong integration between and among different stakeholders at different levels (Weiland 2006: 1).

The world urban population become increasing at alarming rate from annual average growth of 57 million between 1990-2000 to 77 million between 2000-2015 (UN-Habitat 2016: 6). Similarly, along with Asia, Africa is the epicenter of global urbanization since Africa is witnessing rapid urban population transition. It is expected to be the rapidly urbanizing region in the coming decades. In 1990 the total proportion of Africa’s population residing in urban centers were only 31% and it is expected or projected to reach 49% by 2035 (United Nations Economic Commission for Africa 2017). This increment of urban population has a critical influence on social, economic and environmental development due to the fact that the ever increasing urban population requires extra investment in education and training, health, housing and other social and physical infrastructure. In other word, these escalating urban population become challenges of urban development (UN-Habitat 2016: 6-12). Cities are facing different challenges as a result of global, regional and local changes and rapid population growth. These urban challenges require extensive approaches in the urban planning arena which can deal with these challenges and achieve sustainable urban development (Rasoolimanesh, Badarulzaman & Jaafar 2011: 630). Urban development strategy as a strategic planning tool trim down different urban challenges especially poverty, enhance economic growth and attain sustainable development (ibid). Urban planning as a tool provides a great contribution towards sustainable urban development (UN-Habitat 2009).

Sustainable Urban development has different dimensions. Social well-being, economic opportunity and environmental quality are the most prominent key dimensions of urban development (Lynch et al 2011: 20; Lin & Yang 2006). The social dimension of sustainable urban development encompasses social issues such as public services, health, security and safety, local or civic identity or sense of place, access to decent and affordable housing and services, access to open spaces and public recreation, and access to a variety of transportation options. The economic opportunity, which is the second dimension of sustainable urban development, centered on the urban aspects in relation with a diversified and competitive local and regional economy, transportation and other infrastructure coordinated with land use, growth plans that leverage existing assets, access to capital and credit, and access to education, jobs and training, urban production, enterprise investment and economic growth The environmental dimension encompass efficient land and resource use, waste or pollution minimization and management, climate change and natural disaster mitigation, adaptation and resilience, carbon efficient and environmentally sound transportation, fuel consumption, pollution, food and water consumption as well as a diverse natural environment and functional ecological systems (ibid).

In general, sustainable urban development is an emergent development process that eventually transforms the life of the urban society and even the surrounding rural community through the provision of social and physical infrastructure and economic opportunities that are environmentally viable required to lead better quality of life. Sustainable urban development can best be achieved through environmentally sound industrialization since industries play a great role towards socio-economic transformation.

2.3.5 The Role of Industrialization for Urban Social Development

Industrialization creates a massive job opportunities for a great number of workforce and vanish unemployment. This in turn increases real wage and promote earning, improve social security and change the standard of living of the society (Hopkins 2000: 251). Industrial development has a great impact on the life of the society since it resulted in social transformation. Social transformation is socio-cultural change in response to economic growth and development and other factors like industrialization, modernization (Castels 2001:1). Industrialization has made a great contribution to the world society through cultural and political change (Strautmane & Shartevich 2015: 159).

Baldwin (2014) described that urban development should take environmental, economic and governance aspect into account and the development process should integrate the impacts of the established plan with the social dimensions. Public spaces, housing and transport hubs offer unique opportunities for urban developers to create a strong positive social impacts and benefits. This shows industrialization as a great strategy for urban development should put social benefits at the heart of the development process.

The rapid structural change due to industrialization has a great role in the general socio-economic environment through the creation of employment opportunity, human capital development and improved social system in urban centers (Valencik & Mertl 2016: 38). This employment opportunity enables the urban society to make their own living and cover all their expenses and reduce urban poverty which is a great urban management problem and challenge for urban development process. Besides when people get job and become self-reliant their way of life become improved, and this leads to the formation of strong social capital which is characterized by engagement of people in their local affair, the influence of the local community on the decision that affect their area, social network and social support. Besides, industrialization enables the urban community to have access to road and other infrastructure, education, health care services and affordable housing. This is due to the fact that as explained by Valencik & Mertl (2016: 44) industrialization itself requires the systematic preparation and provision of infrastructure and services that are mandatory for industrial activities and which permit and promote great involvement of the population in industrial/economic activities in a new setting. Therefore, investments made on industrial development may mean investment on the community development since they are the beneficiaries of the new investment on the road, water, electricity, health care facility, safety (like fire and emergency services) and others. This in turn solves urban management problems and eases the task of urban management.

2.3.6 The Contribution of Industrialization for Urban Economic Development

It is obvious that industrialization is a central pillar of economic development (Magsi 2014; Strautmane & Shartevich 2015). Industrial sector has made great contribution towards sustainable economic development for a number of nations and cities. Industrialization has been considered as a principal solution to accommodate the ever-increasing agricultural workforce, to increase productivity and income generation and to improve the life of the urban community (Sutikno & Suliswanto 2017: 231). Industries play a prominent role towards economic development since their marginal revenue products of labour are higher than the marginal revenue product of labour in agriculture. Therefore, the liberation of workforce from agricultural sector to the industrial sector increases the marginal product of labour in the agricultural sector and increases the overall output and revenue of the society which brings economic growth (Gylych, Iheoma & Abdurahman 2016:12). Industrialization has become an essential tool to bring economic development through the application of effective and efficient methods of production via mechanization as well as the division of work and labour organization based on specialization, technological innovation and organizational design (Strautmane & Shartevich 2015: 160).

Industrialization plays a prominent role in achieving economic development especially in underdeveloped countries. As the historical record portrays, the developed countries of the world broke the vicious circle of poverty by industrializing, rather than focusing on agricultural or the production of national resources (Saif 2018). Industrialization is the best contrivance that enables to bring swift structural change, provide wide employment opportunities that can absorb a large volume of workforce which in turn leads to the alleviation of unemployment, poverty and development in urban centers (Signe 2018). Industry plays a complex role in urban economic development. Its prominent role in economic development encompass increasing national outcome, achieving higher standard of living because of higher productivity, economic stability, improved balance of payment, stimulated progress in other sectors, increased job opportunities, greater specialization of labour, rise in agricultural production, greater control of economic activity, larger scope for technological progress, reduction in the rate of population growth through the adoption of family planning measures, increased saving and investments, market development and increase in government revenue (Saif 2018).

Rondinelli, Johnson, & Kasarda (1998: 71) asserted that the 21st century as a global century will increase international trade and investment and expand cross-border businesses and industries. Cities as a center of economic activities seek to enhance their economic stand to supply the required labour force, infrastructure and services that enable domestic and foreign industries to operate successfully in the national and global market. And this rapidly expanding global market will empower cities to get ready to cope up with the ever changing global challenges and provide their residents with enormous chance to accumulate wealth and improve their standard of living. At current global environment, urban economic development can be achieved through a sophisticated technology and knowledge based production system, and international trade and investment has become a prominent driving force of urban and regional development in general and essential sources of local employment and wealth in particular (ibid). Furthermore, the rapid and efficient communication system is a critical requirement for international trade and investment and cities development is highly depend of the availability and modernity of communication means. This is because industries must communicate and maintain a close attachment with their suppliers and customers (Rondinelli, Johnson, & Kasarda 1998: 93)

2.3.7 The Impact of Industrialization on Urban Environment

Industrialization has got global acceptance because of the vast development opportunities it hold. It brings improved productivity and production, improved access to infrastructure and services and of course conservation and efficient use of natural resources. Industrialization always seemed to be the only and prominent path to wealth and better living condition. However, it is the great enemy to the environment since it affects our living environment to a great extent and contributes to irreversible climate change (Mgbemene 2011: 49). The structural transition from agricultural to industrial production brings a change in economy and ecology as well. Development starts with economic growth that can be expressed by capital accumulation which in turn has its own impact on the natural environment. This is because economic growth becomes evident through mass production which causes the scale of emission and pollution to increase. With the more capital accumulation, the composition of input and outputs towards pollution oriented industrial production increases, and this brings the additional increment in the emission of pollutants (Cherniwchan 2010: 3).

Bhandari & Garg (2016: 281) affirmed that despite its good socio-economic effect on urban centers, industrialization has deteriorating penalties to the environment since the assenting economic and communal outcomes of development escorted by severe ecological dilapidation. Industrial activities are the prominent source of environmental pollution among other sources of effluence. Industrial wastes and other industrial pollutants have negative consequences on the environment including loss of unique genetic resources. Economic development comes into existence by rapid industrialization which in turn catalyzes unalterable and irrevocable environmental consequences which becomes a great threat to the fauna and flora as well as the human health (ibid).

Industrial pollution becomes health and environmental threats. In addition to the air pollution, the other hazards related to industrial expansion are noise, vibrations, greenhouse effect, radiation, chemicals, electromagnetic radiation and microbiological and social problems like stress and fatigue. Moreover, the chromium compounds are a typical cause of concern from dyes and tanneries and may lead to lung cancer and ulcers. Toxic and hazardous waste is mainly the by-product of the chemical and petrochemical dying industries, which are the eminent issues of the day in the country, because most of the industrial plants are inefficiently operated and maintained (Magsi 2014: 24).

The world cannot exist with industrial buildings and other human made events of built-up areas, the urban forest, with the tendency of being ignorant towards the natural ecology which is getting degrade overtime (Bhandari & Garg 2016:282). Therefore, to protect the urban environment from unwanted and irreversible consequences using improved production techniques emanated from progressive technological advancement that enable to trim down the emission level as dictated by (Cherniwchan 2010: 3) and keeping balance between industrial growth and the larger natural environment to dwindle the industrial emission and its environmental impact as explained by (Bhandari & Garg 2016: 281) is a must. Moreover, to reduce ecological crisis of industrialization in world cities strong emphasis should be given to eco-industrial development which strives for increasing the role of industrialization for economic growth while reducing its impact on the society and the environment (World Bank 2018). Sertyesilisik & Sertyesilisik (2016) asserted that eco-industrial development which encourage, use and maintain a closed loop production system should be implemented in an extensive manner to reduce environmental footprint of human beings and their survival activities.

2.3.8 Indicators of Sustainable Urban Development

Indicators are parameter that enables to describe situation that are difficult to be determined (Weiland 2006: 2). Indicators are tools that help to understand and communicate urban development level, as well as to involve stakeholders, empower them and solve conflict (ibid: 7). They can also be summary and synthesized measures that portray how well a system is performing (Flowers et al. 2005:240). Urban development indicators broadly classified into three categories. These are economic opportunities, social wellbeing and environmental quality (Lynch et al 2011: 22-23).

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Source: Lynch et al (2011: 26); Sarkozy-Banoczy (2010)

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Source: Lynch et al (2011: 26); Sarkozy-Banoczy (2010)

These indicators help to measure and analyze to what extent development is achieved in social and economic aspect of urban areas and how the urban environment is being treated. Urban development can be realized through a lot of development strategies. Industrialization is one of these urban development strategies, and it is expected to achieve social and economic development and to keep ecological balance. In other words industries are supposed to solve urban management problems and bring urban development. The socio-economic development and environmental quality that happen as a result of industrial development might be measured through one or more of these urban development indicators.

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Source: Lynch et al (2011: 26); Sarkozy-Banoczy (2010).

2.4 Empirical Literature

In this section empirical evidence on the role of urbanization for urban socio-economic development and the environmental impact of industrialization in different cities are presented.

2.4.1 The Role of Industrialization for Urban Socio-Economic Development

Siddiqui (2015: 85) articulated that the global economy has witnessed a remarkable change over the last few decades with the industrialized nations faced the decline of the relative importance of manufacturing segment in terms of output, income generation and employment creation. However, in India the manufacturing industry is still the merely alternative to secure better standard of living for the urban community. Despite of the importance of industries for the provision of better life for the people, India is unable to bring socio-economic transformation through economic development and general improvement in the living condition of the majority, the ordinary poor people (ibid). The inability of India to prove the role of industrialization for socio-economic development has been explained in different period. In 1970s the inability of India to succeed with industrialization was explained by wrong India’s industrial policies which decelerate growth rate and undermine the role of private economic actors and ineffective import substitution strategy that leads to high costs, inefficiencies and meager economic growth. In 1991, there have been a neoliberal policy reforms which empower the private actors and restrict government role in the economy. Nevertheless, this also could not be a solution for India since it is still facing a persistent economic and social deprivation. It will be misleading to think industrialization and modernization could be achieved with a limited investment on education and health. It has been more than twenty years since neoliberal policies have been launched, but industrialization unable to create wide job opportunity and enhance the living condition of the large proportion of Indian population. Combating this bottlenecks inherently need government policy intervention and vast investment in education, health care facility and other areas of investment that have a direct positive consequence on industrial growth and productivity (Siddiqui 2015: 96-97).

Similarly, Gresik, one of the areas in Eastern Java, has a number of large and small scale industries and several industrial zones. However, industrialization in Gresik has not been able to promote economic growth. Even if high level of investment in industry is expected to bring economic growth and development, this is not true in the case of Gresik. This means there is a lost connection between the process of industrialization and economic development (Sutikno & Suliswanto 2017: 235). Besides, the process of industrialization in Gresik is unable to create employment opportunity to the ever increasing urban workforces, and it has only limited role in combating unemployment. Furthermore, industrialization in Gresik does not play the expected role to reduce poverty and this has proved as investment in industries cannot be a policy option for poverty alleviation. However, industrialization has played a great role in improving the welfare of the community living around the industrial areas. Areas far from the industrial zones or the central industrial location are relatively underdeveloped and communities residing in those areas are disadvantaged. This shows inequality and this is the reason for the inability of industrialization in Gresik to bring economic development at the macro level. To overcome this inequality and enhance the share of industrialization for economic growth, the government of Gresik has to provide a policy framework that guarantee equal development opportunities and regulate the location of industrial centers, particularly for underprivileged areas. This in turn makes the disadvantaged groups to be the beneficiaries (ibid: 236-241). In Guangzhou city, industrial development especially manufacturing has a great role for urban sustainable development (Li, Xue & Huang 2018: 11). Industrialization has a negative effect on economic growth in Nigeria. This calls for a well prepared policy measure that enables to improve human capital which is a great input for improved productivity in industrial and other sectors and ensure sustainable development (Jellove & Isik 2016: 17).

2.4.2 The Impact of Industrialization on Urban Environment

Industry has been developing at alarming rate following the Chinese government reform and opening up of China. Industrialization and extensive economic development in China has brought serious environmental consequences. The concentration of typical pollutants especially Cadmium (Cd) and Benzopyrene (BaP) in the sediment of Lake Taihu Lake reached 805 µg kg-1 and 27.8 ng g-1 respectively. Chinese government has taken a remarkable and effective environmental protection measures and achieved a great result and cramped the Cd and BaP concentration increment. Nevertheless, the concentration of pollutants in the environment is still high and increasing. Unless continuous and effective environmental protection measures are taken, the concentration of Cd and BaP are expected to reach 2015.5 µg kg-1 and 407.8 ng g-1, respectively, by 2030. To clean up this environmental mess the Chinese government has to make large investment (Li et al 2018: 10).

In the southern Indian region, particularly in Puducherry, industrialization has an impact on the environment and the environmental consequences include water pollution and surface water contamination; air pollution due to pollutant such as CO (carbon-mono-oxide), SO2 (sulphur dioxide), NO2, (nitrogen dioxide) and SPM (suspended particulate matter) emissions from industries; impacts on ecosystem due to deforestation and resources over utilization and the vulnerability of fauna and flora to a great danger of being extinct. The immediate causes of this environmental dilapidation include the uncontrolled industrial waste disposal, untreated industrial sewage discharge, absence of waste treatment system or facility, absence of secured hazardous waste landfill site, increased use of heavy metals and hazardous and toxic substances and hazardous and toxic wastes discharge and leakage. On the other hand, lack of complete commitment from industries to use environmental friendly approaches, inadequate management systems, ineffective institutional set-up for pollution control, limited access to technology and knowledge gap, lack of time and resources, and the improper perception of investors as pollution reduction is a cost instead of being a saving are identified as the root causes of environmental pollution in Puducherry (Patniak 2018: 3-5). Initiatives should be done to make industrialization sustainable in terms of preventing environmental damage and promoting environmentally friendly industries. The transition of industries into eco-industrial network to preserve the natural resources has emerged as a dynamic approach. Creating and maintaining a strong linkage between industry and related services helps to accelerate the transition to extensive, diversified and high income economy while providing safer environment (ibid: 6).

Rapid industrial growth has a detrimental effect on the natural environment. Industrial emission combined with vehicles exhaust caused widespread air pollution, and uncontrolled hazardous waste from industries caused extensive water pollution. The inadequacy of hazardous waste materials processing facility aggravate the problem and extend the pollution into public lands, rivers and other areas in Pakistan (Magsi 2014: 24). Industrial pollution is increasing rapidly and it became a threat for health and productivity. Major industrial contributors to water pollution are the pulp and paper, chemicals, petrochemicals, refining, metalworking, food processing and textile industries; power generation for various industrial purposes and brick kilns are major sources of air pollution (ibid).

2.4.3 Industrialization in Ethiopia

Ethiopia, with 94 million people in 2012, is one of the largest and least developed countries in Sub-Saharan Africa. In spite of its economic stagnation Ethiopia has suffered in 1970s and 1980s, it became one of the fastest growing economies in the world with 10% annual average gross domestic product growth rate since the last decade (Admasu 2017: 1). Ethiopia was ruled by imperial regime for a long period till 1974 which is earmarked by the down fall of Emperor Haileselassie the First, the last successor Solomonic dynasty. Following the overthrown on monarchical government, a military junta came to the throne. This period can be named as a period of war and conflict and even famine. In 1991 the Ethiopian Peoples’ Revolutionary Democratic Front dethrone the military government and came to the power (Arkebe 2015:61). During the imperial and the totalitarian Derg regime, industrial development was not as such remarkable and agriculture was the backbone of Ethiopian economy.

History of industrialization in Ethiopia can be traced back to the early 20th century (Zewde as cited in Arkebe 2015: 62). In line with different historical periods and government regimes, Ethiopia had to pass through industrial development stages. During the imperial regime, in 1950s, the contribution of manufacturing segment of the industrial sector to the country’s gross domestic product was 1.5%, and it grown to 5% in 1970 during the Derg period when industrialization was guided by command economy (Arkebe 2015: 62). After a long period and/or history of insufficient industrialization Ethiopia has given a great and even special emphasis to industrial development. However, even if remarkable economic growth has been achieved, the structural change lags behind (ibid: 103).

The performance of manufacturing industry and its contribution to gross national product remained low and even reduced from about 6% between 2002-2004 to about 4% during the first period of growth and transformation plan, 2010-2015. The aim of the second GTP is to enhance the contribution of manufacturing sector to GDP to 15% (Admasu 2017: 5). In spite of the priority given by the government to the manufacturing sector, it is characterized by meager productivity and scanty share to GDP (Admasu 2017: 5; Arkebe 2015: 65). The Ethiopian manufacturing sector is characterized by low level of industrialization and small firm domination. Its low level of industrialization can be explained through its small share to GDP, export earning which is below 10%, low technology dependent and very low manufacturing value added per capita which was $9 in 2010 in extreme contrast to Egypt’s $177 and Mauritius’s $522. All this indicates as Ethiopia’s manufacturing industry is at its incipient stage and it needs strong effort and extensive investment to grow up (Arkebe 2015: 66-69).

Currently, Ethiopia has embarked on extensive investments in manufacturing sector with the objective of utilizing the potential of the manufacturing sector to bring all rounded sustainable development, and also attracting foreign investment and widening its export destination which in turn increases export earning in terms of enlarged foreign exchange. To meet this objective Ethiopia has built and even still building export-processing industrial zones. And it is believed that Ethiopia is on the way to increase the share of manufacturing industries to GDP and export earnings. With this regard United Nations Conference on Trade and Development (UNCTAD 2018: 41) described that East Africa as the fastest growing African region received $7.6 billion in foreign direct investment in 2017, and from this FDI nearly half i.e. $3.6 billion was absorbed by Ethiopia. This makes Ethiopia the second largest foreign direct investment recipient next to Egypt. Currently, Ethiopia has become the destination of foreign investment. Investors from China, Turkey and other parts of the world are making an extensive investment in Ethiopia in different fields of investment especially in light manufacturing industries (ibid). The current industrialization process in Ethiopia might be a good start, and it might play a great role in minimizing urban management problems and bringing urban development.

2.5 Research Gap

Many researchers conduct research on industrialization and its effect on the economic growth, social development and the environment. Siddiqui (2015) study challenges of industrialization in India: state versus market policy with purpose of examining the growth and importance of the industrial sector in India. Shantrevich & Strautmane (2015) examine industrialization factors in post-industrial society with the objective of developing the model of modern industrialization development into post-industrial economy.Jellove & Isik (2016) study the impact of industrialization on economic growth: the Nigeria experience (2000-2013) with the major objectives of investigating the effect of fiscal and monetary policy on GDP, determining the relationship between government spending and industrial development, and to determine the effect of budget on investment and employment generation.Sutikno & Suliswanto (2017) study the impact of industrialization on the regional economic development and community welfare with the purpose of determining the impact of industrialization on the regional economic development in Gresik Regency. Patniak (2018) investigate impacts of industrialization on urban environment and sustainable solutions, reflections from a South Indian Region with the aim of understanding the local context and developing further course of action based on ground realities. Besides, Huang, Xue & Li (2018) investigate the role of manufacturing in sustainable urban economic development in the case of Guangzhou city, China with the aim of exploring the role of manufacturing in the sustainable development of world cities. All these researches stick on one or two issues of urban development. This might portrays as little might be done on the role of industrialization towards urban development in a wider sense and with a wider scope. The researcher finds out this as a research gap. Therefore, this study strives to study the role of industrialization for urban development with a wider thematic scope so as to fill this research gap.

2.6 Conclusion

This chapter has reviewed a vast literature about industrialization and its contribution to socio-economic aspects of urban development and impacts on urban environment. Theoretical literatures show as industrialization has a great contribution for socio-economic urban development, but great enemy for the living environment. However, empirical literatures portrayed as industrialization is not bringing the dreamed socio-economic development in different developing cities, and it is still the practical opponent of natural environment. These theoretical and empirical literatures are utilized in the discussion section for supporting or arguing against the finding of this research.

CHAPTER THREE

3. RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

This research is accomplished in a planned manner following scientific research methods and procedures. The research design and approach were pre-determined and other methodologies including sampling, data gathering tools, data presentation and analysis techniques were selected and implemented based on research questions i.e. descriptive research questions.

3.2 Research Design

The research strategy was survey research strategy that involves various data gathering instruments and quantitative and qualitative data obtained from a considerably large sample size. And the research design was descriptive in its very nature. The researcher prefers descriptive research design since the purpose of the study is to analyze and describe the role of industrialization for urban development in the case of Bole Lemi IP. Descriptive research design is to describe the existing situation without manipulating or introducing any change to the phenomenon under investigation as described by Best and Kahn (2005:21-22) and to answer questions like what, how, when and where is. Besides, mixed research approach was used since the research has involved collecting both quantitative and qualitative data so as to provide a complete understanding of the research problem. Based on the time dimension of the study this study used cross-sectional data and data was collected from respondents in different geographical location at a single point in time.

3.3 Methods of Data Collection

Multiple data gathering instruments were used so as to be able to cross-check the reliability of data gathered from different sources using different data gathering tools. Both primary and secondary data gathering tools were employed. To collect primary data questionnaire (mixed type), semi-structured interview and observation were applied. The researcher had a large number of population i.e. industry workers working in Bole Lemi I IP and community living around Bole Lemi IP from which representative sample need to be taken which makes the sample size considerably large. Therefore, using questionnaire was a good choice since it enabled to obtain a large volume of data from large number of respondents with in a relatively short period of time. Besides, expropriated households were involved in the study and mixed type questionnaire has been administered to them. In addition, the researcher has collected in-depth information through expert interview from experts and managers working in government institutions i.e. MOTI, EIC, IPDC, Addis Ababa Industry Development Bureau, Addis Ababa Environment Protection and Green Development Commission, ERCA, Bole Lemi IP, City Government of Addis Ababa and Bole Sub City Administration which are expected to have a great role in guiding and controlling industrial development and urban management and development activity. Besides, secondary data was gathered through document review.

3.4 Sampling Design

3.4.1 Population of the study

The target population of the study was industry workers working in Bole Lemi I IP, people residing around Bole Lemi IP i.e. people living in Bole sub city Woreda 11 and displaced households. The total number of employees working in Bole Lemi I industrial Park was 15,134 (1,727 male and 13,407 female) (IPDC 2018) whereas the total population of residents in Woreda 11 of Bole sub city is 18, 441 (7,959 male and 10,482 female) (Ethiopian Population Census Commission 2007: 166). Besides, the total number of households expropriated by Bole Lemi Project I and II was 346 (155 and 191 HHs from Bole Lemi project I and II, respectively) (IPDC-CJCP 2015). It also includes experts and managers in 9 government institutions. The number of experts and/or managers concerned about the issue under investigation was less than 50. These particular universes are selected due to the fact that the purpose of the study is to investigate the role that industrial development in the area under investigation is actually playing for urban development. Therefore, they were valuable sources of information since they are working in and living around the IP and also concerned on the industrialization process and its relation to urban management and development. The units of analysis for this study were employees working in Bole Lemi I IP and residents of Woreda 11 of Bole sub city, project affected households, as well as experts and/or directors in 9 government institutions.

3.4.2 Sampling Frame

The target populations of this study were heterogeneous. Therefore, the study had more than one sampling frame. The industries in the table below were the sampling frame from which sample of industry workers were selected. In addition to this, Bole sub city woreda 11 was considered as the other sampling frame from which sample residents were taken. It became impossible to prepare the sampling frame in tabular form since the complete list of the population was unavailable. Besides, MOTI, EIC, IPDC, Addis Ababa Industry Development Bureau, Addis Ababa Environment Protection and Green Development Commission, Ethiopian Revenue and Custom Authority, City Government of Addis Ababa, Bole Sub City Administration, and Bole Lemi Industrial Park were the other sampling frame from which managers and experts were selected.

Table 3.1: Manufacturing industries in Bole Lemi I Industrial Park

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Source: Industrial Parks Development Corporation (2018)

3.4.3 Sample Size

To determine the sample size for this study Taro Yamane (Yamane 1967) formula has been applied. The formula is: Where n = sample size,

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With the total population of 33,575, at 95% confidence level, and + 5% sampling error or level of precision, and 50% degree of variability or significance level the sample size was calculated as follow.

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Therefore, the sample size of 395 was taken for the survey.

Since the target population was heterogeneous it was necessary to divide the population into homogenous groups i.e. strata based on common characteristics. Dividing the population into strata becomes necessary to avoid the risk of unbalanced sample representation since the unequal sample representation might have its own effect on the outcome of the study. Therefore, it was necessary to ensure the adequate representation of every stratum through stratified sampling. The total target population of the study was 33,575 from which 15,134 were industry workers and the remaining 18,441 were local residents. The two different strata were industrial workers and residents, and it was necessary to take equal proportion from each stratum.

Table 3.2 Sample proportion

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Based on the above table the sample size that was taken from the industrial workers is 178 cases while 217 cases were selected from the local residents.

To see whether the expropriated households have got proper compensation for the property they lost and to assess the current living condition of expropriated community at a glance as a sub part of the role of this industrialization process for social development 15 households were selected randomly from the total 346 expropriated households. That means nearly 5% of the total expropriated households were included in the study. It is too small but it is backed up by secondary data i.e. official action plan and report. On the other hand, the total population of experts in 9 government institution was less than 50, and the sample size for the expert interview was 17 which were selected from 9 government institutions i.e. 1 director in MOTI, 1 director and 1 expert in Addis Ababa Industry Development Bureau, 3 experts of OSS Department of EIC, 3 directors and 2 experts in IPDC, 1 expert in Bole Lemi Industry Park, 2 experts (team Leaders) in Addis Ababa Environment Protection and Green Development Commission, 1 expert in City Government of Addis Ababa, 1 manager in Bole Sub City Administration and 1 team leader in ERCA were interviewed. Consequently, the total sample size of this study was 427 cases or respondents.

3.4.4 Sampling Technique

Both probability and non-probability sampling techniques were used. Probability sampling technique was preferred since the researcher had to deal with a considerably large number of target population, and it was necessary to provide each element of the population with a chance of being selected to sample candidate. Random sampling is the best choice since it provides every member of population a non-zero probability of being included in the sample as described by Alvi (2016:12). Stratified sampling technique which is one type of probability sampling method was used. The target population was divided into residents and industrial workers stratum. And then from each stratum samples were selected using simple random sampling technique. Simple random sampling technique was chosen due to the fact that it enables to take a good representative sample without sampling bias.

Households that are expropriated from Bole Lemi as a result of the establishment of Bole Lemi Industrial Park were included in the study to see at a glance whether they are leading proper life with sustainable livelihood and to assess whether they are properly compensated to sustain their life in a new setting. Expropriated households are included in the study through simple random sampling.

On the other hand, since the target populations of experts were less than 50 probability sampling is not suitable method to select sample from experts and managers. This is due to the fact that probability sampling is for considerably larger population. Therefore, they were taken through non-probability sampling. Purposive sampling was used to select experts from industry related governmental institutions and urban management bodies i.e. Ministry of Trade and Industry, Ethiopian Investment Commission, Industrial Parks Development Corporation, Addis Ababa Industry Development Bureau, Addis Ababa Environment Protection and Green Development Commission, Ethiopian Revenue and Custom Authority, City Government of Addis Ababa, Bole Sub City Administration, and Bole Lemi Industrial Park. The whole employees working in these government institutions cannot be the population of the study. This is because all employees do not or can’t provide the information required for this study since each employee has their own specialization. Therefore, purposive sampling particularly expert sampling was applied to select experts who can provide relevant information about the issue under investigation.

3.5 Sources of Data

Primary and secondary data sources were used. Primary data sources are preferred to be able to obtain firsthand information about the issue under investigation, and secondary data was used to accompany the data obtained from primary sources. Primary data sources were industry workers, residents or people living around Bole Lemi Industrial Park, expropriated households and experts concerned with and in charge of industrial development activities and urban management and development tasks and working at 9 government institutions listed out under subsection 3.2. Primary data was collected from the industry workers and residents through questionnaire. Firsthand information from experts and managers was also collected via semi-structured interview. Secondary data sources were current industrial policy, urban development policy as well as resettlement action plan, need assessment reports and social safeguard report concerning Bole Lemi industrial park development projects and project affected persons.

3.6 Data Analysis and Interpretation

To select the right data analysis technique and statistical method the type of research questions this study is going to address, the research design that is employed and the type of data gathered were taken in to prior consideration. The type of research question is descriptive research questions; the research design is descriptive and qualitative and quantitative data was collected. Therefore, quantitative and qualitative data analysis techniques in general and descriptive analysis technique in particular were employed. Primary data obtained through interview, open ended questionnaire and observation as well as secondary data obtained from document review was analyzed qualitatively through narration process. On the contrary, primary data gathered through close ended questionnaire was analyzed quantitatively through descriptive analysis. Descriptive statistics was used to summarize and describe the data. Specifically, frequency and percentage were applied to count the redundancy or number of times a particular score is found and to articulate a set of scores, a percentage of the whole, respectively. To run the statistical analysis SPSS was utilized for easy handling and automation of a large volume of data.

3.7 Data Presentation

Data was mainly presented in textual, tabular, graphical and pictorial form. Textual presentation of data was used to present data textually using statement with and without number. For tabulation complex table was used, and for graphical data presentation bar graph, histogram and pie chart were applied.

3.8 Conclusion

The descriptive research method with different data gathering tools was applied to get proper findings for descriptive research questions that are the central theme of this study. The data gathered through different data collection tools from different response variable regarding the socio-economic contribution and environmental effect of Bole Lemi IP was presented and analyzed in the coming chapter.

CHAPTER FOUR

4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

In this chapter data gathered through questionnaire, interview, observation and document review are presented, analyzed and interpreted. This chapter is basically divided into four basic sections i.e. overview of Ethiopian policy environment, overview of industrialization in Addis Ababa city, data analysis and discussion and interpretation. Under overview section industrial and urban development policy intentions and trends of industrialization in Addis Ababa is presented. Under analysis section data collected with respect to the research questions is presented and analyzed through descriptive statistics and narrative process. Finally, the interpretation section interprets the statistical expression and narrative explanation in to meaningful synopsis.

4.2 Overview of Policy Environment in Ethiopia

In this sub section, the Federal Democratic Republic of Ethiopia Industrial Development Policy of 2001 (1994 E.C) and Urban Development Policy of 2013 are reviewed at a glance to provide an overview of the policy environment in relation to industry and urban development. This is because before analyzing the collected data about the actual or practical relationship of industrialization and urban development it is necessary to see the policy proposition or intention.

4.2.1 FDRE Industry Development Strategy of 2001/1994 E.C

The FDRE industry development strategy gives great room for the involvement of private investors in the development and expansion of industries in Ethiopia. Industry and the active involvement of private investors are given high attention to transform Ethiopian economy from agriculture-led to industry-led economy that is based on free market principles. One of the guiding principles of national industry development strategy is empowering private investors to be the driving engine of the industry development. This industrial development policy focuses on increasing the international competitiveness of Ethiopia and its investors in the ruthless international free market. However, there are a number of bottlenecks that hamper the international competitiveness of domestic investors and achieve the dreamed industry-led national growth and development. These hindrances include lack of competitive knowledge, skill and advanced technology, capital constraint and absence of strong capital market, underprivileged management capacity, poor governance and institutional capacity and meager infrastructure and service provision. To realize the role of private investors in industry development wiping these obstructions out and creating fertile ground for investors has been given priority.

Following agriculture-led industry development strategy is the second guiding principles of the industrial development policy. The policy gives emphasis to rural and agriculture based industrial development strategy that creates a backward and forward linkage between agriculture and industry. The industrial sector is expected to follow the development direction set by the agricultural sector and provide equipment and inputs to agriculture, and take agricultural products and provide them to the market by processing them and adding value. This is due to the fact that Ethiopia is still agricultural country where the majority of its population is living in rural areas with agricultural livelihood. Therefore, it is impossible and even unthinkable to jump into industry-led industrial development strategy while agriculture is the backbone of the economy. Instead it is mandatory to strengthen productivity in both agricultural and industrial sector and achieve development through strong integration and mutual benefit and then eventually the direction will be converted into industry-led industrial development strategy where industry will play the leading role in the over-all development process. Till the time when industry will take and play the leading part comes, strengthening agricultural productivity through making industry the supporter and close partner of agriculture and making one sector the great market opportunity for another is a must. This strategy can be taken as a good policy intervention that suits to the existing reality and context in Ethiopia.

The third guiding principle is following export-led industry development strategy. This is about adding value to agricultural products and providing them to the international market. This principle inspire the importance of initiating and expanding export-oriented industries that process and utilize agricultural products, add value to them and provide them to international market to gain foreign exchange in return. Promoting industries that utilizes human power in an extensive manner is the fourth guiding principles of the industrial development strategy. This is due to the fact that with the existing capital and technology Ethiopia can hardly be able to compete with developed once. The only choice that it has to compete with others is cheap labour force. Therefore, initiating and developing human labour intensive industries with minimum capital requirement is the best choice than capital intensive industries, and increasing labour skill, competence and productivity through capacity building is the prominent issue that must be underlined.The fifth guiding principle of industrial development strategy is promoting and utilizing domestic and foreign investors. The industry development strategy gives a wide room to foreign investors due to the fact that domestic investors do not have the sophisticated technology, huge capital, international market network, and modern management system that the foreign investors do. Therefore, attracting and retaining foreign investors is the best choice to tackle these constraints and accelerate industrialization in Ethiopia. The policy also promotes the necessity of domestic investors for sustainable investment and development. Enabling the government to play strong and active role in the industry development process is the sixth guiding principle. This is not to promote government intervention in each and every aspect of development. It is rather to facilitate government role in designing and implementing marketing strategies that suit to the context of the country, reducing market failure (when its intervention becomes critical, not for all market failure) and enhancing the capacity of investors so as to be able to take the lion share in the industrialization process. The last principle of industry development strategy is promoting the active involvement of the whole community in industry development, and this becomes necessary as a result of the mere involvement of government and private investors in industrial development will not be fruitful without active community participation and support. Therefore, creating synergy between government, private investors and the larger agrarian and urban community is crucial.

All these seven principles are the corner stone of the strategy. Creating fertile environment for the industry development and developmental investors, and providing direct support and leadership to the developmental investors are the two big strategies of industry development. To create fertile investment eliminating sense of dependency and providing support to investors, promoting sustainable and suitable macro-economic environment, installing modern and proper finance system, providing sustainable infrastructure and services, building the capacity of human resources through education and training, providing good governance and creating effective law enforcement system are determined as obligatory approach. Similarly, identifying priority areas like promoting textile, garment and apparel industry, beef, leather and leather products industry, agro-processing industry, construction industry; enhancing small scale enterprises, and being well-prepared to ensure sustainable industry development are set as a means to achieve the second strategy.

This industry development gives strong emphasis to the expansion of all infrastructure and services that are required for the effective and efficient development and expansion of industries to all small towns and big cities as well as rural centers. It dictates that urban centers should give high priority for industry development when they prepare their development plan, and they must provide adequate serviced land for industry development. It gives high priority for the establishment of industry villages with all required physical infrastructure in urban areas. It also gives high attention for the importance of human capital development through vast investment on the expansion of quality education and training, but no policy statement on the requirement of extensive investment on health. This can be taken as a gap due to the fact that it may be wrong to think that industrial development will be achieved with the mere investment on infrastructure and education with scanty or no investment on health especially in our country where human labour-intensive industrial development is initiated. In general, this industry policy sets urban area or cities as the center of industrialization, and this shows as the policy creates strong relationship or nexus between urbanization and industrialization.

To sum up, the industrial development strategy of Ethiopia can be considered as a golden policy intervention that promotes a step by step growth and development. Instead of daydreaming a skyrocketed growth and development through the promotion and establishment of heavy industries that can hardly be suitable with the existing situations of Ethiopia, it puts a baby-step strategy that flows from simple to complex. And this is appropriate strategy to the country and its people who are deprived of sophisticated technology, advanced knowledge and skill, necessary capital, modern infrastructure and services, well-established and powerful institutions, international market network, modern and influential leadership and management as well as good governance.

4.2.2 FDRE Urban Development Policy of 2013/2005 E.C

The FDRE Government Urban Development Policy was formulated and ratified at May 2013 (Genbot 2005 E.C). The policy has identified lack of development and good governance as the major bottlenecks of Ethiopian urban centers. Lack of infrastructure, lack of adequate social services, housing problem, lack of recreational centers and environmental pollution, inability of urban centers to integrate with other urban centers as well as rural area and unbalanced urban development were identified as urban development problems. On the other hand, lack of administrative and political decentralization, deficiency of democratic attitude and culture, absence of participatory development and administration, absence of good urban management, lack of well-trained/skilled manpower and inability of urban centers to generate and utilize their own income were identified as problems of democracy and good governance.

Therefore, the importance of this policy is to eradicate these development bottlenecks, to ensure good and democratic governance in urban centers and ensure rapid and sustainable urban development through decentralized and balanced urbanization and urban-rural and urban-urban linkage. The vision of this policy is to see cities being prosperous through making them center of development and model of democracy, integrated, internationally competitive and a better place for living that ensure sustainable development and fast and adequate service provision for their residents. Its objective is to enable cities being development center and make great contribution to rural development and the national economy, and making urban dwellers to be power holders and the beneficiaries of development as well as to reach at the living standard of those people having middle income level. The policy is designed following the principles of federalism to encourage the emergence and development of many urban centers and to make them decentralized power holder as well as allow regional states to administer cities in their respective jurisdiction.

The developmental strategies of this policy are rural-urban linkage (development integration) which aims at ensuring balanced development throughout the country and industrial development which aimed at making big cities to be the center of industry and small cities to be center of agricultural industry which utilize the local agricultural products/inputs and idle human resources. The second strategy i.e. industry-led urban development strategy require cities to have willing developmental investors and fulfill skilled human power and high quality infrastructure and services that are pre-requisite for the expansion and development of industries. The guiding principles of the policy include creating sustainable urban-rural and urban-urban linkage, providing balanced urban development opportunities for all cities, ensuring decentralized urban system, putting poverty alleviation at the heart of urban development activities, promoting participatory development, creating strong companionship with investors, and making cities autonomous or self governing through decentralization.

The roles of cities for national development and democracy include accelerating rural development, being market, service and industry center, strengthening relationship between people, being democratic model and creating strong democratic and economic base. To ensure rapid and just/fair development in cities expanding small enterprises and providing them with extensive support, housing development, land development and management, infrastructure provision, social service expansion, urban categorization, planning and environmental protection is a must and these operations are to be done by the government and various stakeholders at various level. This policy is to be implemented by a government at different level i.e., at federal, regional and local (city government) level.

Generally, FDRE Urban Development Policy has a lot of strong points with respect to community development elements. The policy has designed rural-urban integration and industrial development which enable to minimize rural-urban migration, create more job opportunity, increasing productivity and national economic development as a core strategy and those strategies basically tend to address community development issues in one or another way. It pays good attention to community development issues such as housing development, infrastructure and social service provision, environmental protection and the like. This urban development policy follows industry led urban development strategy which strives for the expansion of industries with all required physical and social infrastructure and the absorption of the ever growing work force especially those agricultural workforce migrate from rural centers. This shows as urban development policy creates a strong and even indispensable nexus between industrialization, urbanization and urban development.

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