Slumonomics

As can be seen from the chart below, the number of people living in urban areas has been increasing steadily over the last several decades.


(Source: UN World Urbanization Prospects: The 2009 Revision)

This growth has and will continue to be accompanied by the growth of Informal Settlements, or Urban Slums.  Many estimate that the number of people living in Slums will reach 2 billion by about 2030 (Eaves, Elisabeth.  2007. Two Billion Slum Dwellers.  forbes.com).  

Never before in history have so many lived in such close quarters, especially in settlements that are widely considered illegal by the surrounding community.  In this blog I intend to discuss the economics of slums.  I will focus on the economic behavior of those who live within slums and the institutional arrangements that arise from such behavior.  Also, I will often discuss the interaction between the slums and the surrounding communities.  Especially, local governments (mostly futile) attempts to eradicate the informal settlements, or at least to exercise some sort of authority over the slum-dwellers.

I welcome any comments and insights from readers on future posts and hope that this blog creates a center for economic discussion and debate about slums.