in the country, and because an enormous number of corporations have their head-
quarters in the city. The city also functions as a cultural center, serving as a capital
for art, design, music, and theater. New York is somewhat unusual as a primate city
in that it does not function as the national capital.
In developing countries the overwhelming dominance of a primate city may
lead to a clearcore-peripherypattern and distortions in economic development.
In addition, political power and decision-making may become highly concentrated
in such urban leviathans. The concentration of wealth and power may lead to
resentment in the country’shinterlandand exacerbate centrifugal forces. On the
other hand, the allure and opportunity represented by a primate city may also com-
pound the challenges the city must face. Until recently, Mexico City had to absorb
thousands of new residents every month as people migrated to the city seeking
employment. These new arrivals placed enormous stresses on the city’s infrastruc-
ture and facilities. Housing and services were in short supply, leading to the emer-
gence ofbarrios—a ring of slums surrounding the main city. In spite of these
difficult conditions, thousands of Mexico’s citizens would migrate to the city if
allowed, indicating that the dominant role of primate cities appears destined to
become greater, as theurbanizationof populations around the world increases.
Purchasing Power Parity
A concept employed when attempting a comparison of economic conditions
across countries, which according to its proponents provides a more accurate
assessment of relative wealth and economic conditions. A common way to com-
pare economic conditions between countries is to use a measure of Gross National
Product (GNP) per capita. This figure is usually reported in U.S. dollars—the GNP
per capita in the United States in 2008 was approximately $47,000, while in Tur-
key it was approximately $10,000. The figure for Turkey is based on the current
exchange rate between the American dollar and the Turkish lira. This implies that
on average, an American is more than four times wealthier than a resident of Tur-
key. But this comparative measure also assumes that costs are the same for compa-
rable goods in both countries, which in reality is rarely the case. The cost of basic
necessities in Turkey may be much less than in the United States, meaning that the
relative wealth of the average person there is actually greater, perhaps significantly
greater, than is indicated in the GNP per capita comparison. Purchasing Power
Parity (PPP) is a comparative measure that attempts to account for the difference
in prices, inflation, variances in exchange rates, and other economic factors that
are not included in other methods. There are two types of PPP commonly used:
Purchasing Power Parity 269