1.3. Causes of Slums:
The rapid urbanization accompanied by industrialization has resulted in the growth of slums. The shortage of land for housing, the high prices of land beyond the reach of urban poor and a large rural migrations to the cities fuelling the development of slums. These slums give rise to many problems in the urban areas [ ]. Slums are also products of failed policies, bad governance, corruption, inappropriate regulation, dysfunctional land markets, unresponsive financial systems, and a fundamental lack of political will. Each of these failures adds to the toll on people already deeply burdened by poverty and constrains the enormous opportunity for human development that urban life offers [11].
1.4. Positive Slums (the Positive Aspect of Slums): …show more content…
In the developing world, slums are often the dwelling places of much of the labour force of the city [12]. The contribution of slum residents to the border economy is considerable [13] as they provide a number of important goods and services for the formal economy [12]. This informal economy is generating a very large part of the economic value of the country [12]. Informal sector economists such as Hernando de Soto have long argued that the poor are sitting on huge amounts of ‘dead capital’. However, it is important to consider the positive and vibrant nature of the communities and activities within slum settlements [12]. These cities-within-cities are wellsprings of entrepreneurial energy, yet their brutal physical conditions limit residents' ability to realize welfare improvements from their own efforts alone [13]. They have the potential to produce a significant share of domestic capital formation through self-built housing, yet their lives are made insecure by the absence of key public interventions that would catalyze and facilitate private investment
The rapid urbanization accompanied by industrialization has resulted in the growth of slums. The shortage of land for housing, the high prices of land beyond the reach of urban poor and a large rural migrations to the cities fuelling the development of slums. These slums give rise to many problems in the urban areas [ ]. Slums are also products of failed policies, bad governance, corruption, inappropriate regulation, dysfunctional land markets, unresponsive financial systems, and a fundamental lack of political will. Each of these failures adds to the toll on people already deeply burdened by poverty and constrains the enormous opportunity for human development that urban life offers [11].
1.4. Positive Slums (the Positive Aspect of Slums): …show more content…
In the developing world, slums are often the dwelling places of much of the labour force of the city [12]. The contribution of slum residents to the border economy is considerable [13] as they provide a number of important goods and services for the formal economy [12]. This informal economy is generating a very large part of the economic value of the country [12]. Informal sector economists such as Hernando de Soto have long argued that the poor are sitting on huge amounts of ‘dead capital’. However, it is important to consider the positive and vibrant nature of the communities and activities within slum settlements [12]. These cities-within-cities are wellsprings of entrepreneurial energy, yet their brutal physical conditions limit residents' ability to realize welfare improvements from their own efforts alone [13]. They have the potential to produce a significant share of domestic capital formation through self-built housing, yet their lives are made insecure by the absence of key public interventions that would catalyze and facilitate private investment