Nomadism & Decentralization

Decentralization is the redistribution of social and economic activities across a territory, from the administrative centers (regional and national capital cities) to the surrounding areas. There is a correlation between urbanization and centralization, but urbanization doesn’t have to imply centralization.

Why do people move to bigger cities? Cities are cultural centers, by definition―more things to do, more people to meet: humans are social animals genetically programmed to mingle.

It’s not an anthropological constant, however. Most people move to bigger cities because they are forced to. Centralization implies job concentration, thus, a side-effect of centralization is pauperization of smaller cities and rural areas. A decrease in the number of available jobs is a decrease in both purchasing and bargaining power, as quality employment is proportional to the local job market. Increasing the employment rate is useless if the job quality doesn’t follow. Oddly enough, industries which are the most susceptible to go remote are also becoming increasingly concentrated in fewer cities. Equal access to high paying jobs is not going to solve itself, yet talent is evenly distributed while opportunities aren’t.

It’s not uncommon to see young white collars give up their employee benefits package to buy a farm and grow their own veggies. Ruralization has become a privilege. Nomadism can play a key role in revitalizing forgotten towns and cities.

The tendency, however, is for digital nomads to join nomad hubs. Nomad hubs are dense urban areas where digital nomads enjoy heading to, characterized by an infrastructure of mobility (public and private transportation, internet access), cheap living costs and a booming startup ecosystem. Ubud and Chiang Mai are famous nomad hubs.

In my opinion, it’s missing the entire point of being able to work from anywhere. Why are digital nomads moving to hubs instead of benefiting locations that need them most? The digital divide all countries around the world experience is still the main obstacle in developing digital nomadism. Decentralization is still a political concern: only strong digital policies can create the infrastructure needed, but a nomad can still empower local economies on the road.

Another con to centralization is an increase in commute time. I remember commuting for three hours in Shanghaï on a daily basis, interning in a company located in an industrial area way out of the city center. The wait was agonizing: three hours per day accumulate to a huge amount of time over a year. You can try reading a book or listening to a podcast to make the most out of your commute, but it’s still not optimal.

Decentralizing is not only getting time and money back but also reducing the environmental impact of the population.