Globalization is a natural outcome of the sustained technological and economic growth, which originated with the Industrial Revolution in Britain during the 18th century. This path to continuing economic growth spread initially to continental Europe and North America, and brought with it the creation of large towns and substantial social change. By the mid 1970s, there were great contrasts in the living standards between developed and developing nations, but since then this situation has begun to change, albeit in a very uneven way. A number of factors have driven this change, including increased international trade, the wider availability of capital, improvements in communication, the internationalization of education and the transfer of technological and managerial skills. Unfortunately, there are a large number of people in some developing countries who have not benefited from these aspects of globalization. An important feature of current growth patterns is that the world is rapidly becoming urbanized, and by the year 2025, it is likely that almost two-thirds of the world's population will be urban dwellers. Also, in 1994, the 15 largest cities in the world had populations of more than 10 million people. For both developed and developing countries, the matter of sustainability is of prime importance, even though there is some vagueness about what constitutes a sustainable built environment. Another problem is the determination of sustainability policies, which are efficient and practicable as well as politically acceptable. This paper examines a number of factors that have led to recent patterns of development and globalization, and reviews some of the critical issues bearing on sustainable development of the built environment. The special role of universities as a part of this process is also discussed.