<span>isolation caused the Chinese people to lag behind the world in technological and cultural advancements</span>
Generally speaking, Medieval villages grew into towns because of the growth of the "agricultural sector," since this led to the increase in GDP for many towns which led to greater building projects.
A "municipality" is a unit of local government incorporated by the state. The powers vested in this entity can range a great deal, but in general they are subordinate to the state.