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Urbanization and DevelopmentMultidisciplinary Perspectives$
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Jo Beall, Basudeb Guha-Khasnobis, and Ravi Kanbur

Print publication date: 2010

Print ISBN-13: 9780199590148

Published to Oxford Scholarship Online: January 2011

DOI: 10.1093/acprof:oso/9780199590148.001.0001

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The Legacy Effect of Squatter Settlements on Urban Redevelopment

The Legacy Effect of Squatter Settlements on Urban Redevelopment

(p.165) 9 The Legacy Effect of Squatter Settlements on Urban Redevelopment
Urbanization and Development

Ignacio A. Navarro

Geoffrey K. Turnbull

Oxford University Press

The chapter presents a theoretical model that seeks to answer the question of why former squatter settlements tend to upgrade/redevelop at a slower pace than otherwise similar settlements originating in the formal sector. We argue that squatter settlers' initial strategy to access urban land creates a ‘legacy effect’ that curtails settlement upgrading possibilities even after the settlements are granted property titles. This chapter tests our model using the case of Cochabamba, Bolivia, and obtains results consistent with the theoretical model prediction. The chapters's results suggest that the commonly used ‘benign neglect while keeping the threat of eviction’ policy has profound impacts on how land is developed in the informal sector and this poses costly consequences for local governments after legalization.

Keywords:   informal settlements, neighbourhood upgrading, squatters, urban development, urban redevelopment, JEL classification, R52, O43

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