It is the claim of this paper that urbanization, long blamed for the ills of underdevelopment, is in fact an important development tool. The positive characteristics of urbanization and the dynamics by which it creates development are suggested by the communications model of social development. Based upon this model, a general strategy of national development is outlined. Appropriate economic policies, social policies, and political actions are suggested. These are illustrated by past experiences and current conditions in Latin America and other parts of the developing world.