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The definition of a squatter settlement varies widely from country to country and depends on a variety of legal and other aspects. In general, it is considered an area within an urban locality or city, inhabited by low-income householders who have no access to tenured land of their own and, hence, “squat” or illegally occupy vacant land, either privately or publicly owned. While the phenomenon of squatting can be seen in both developing countries (predominantly by illegally occupying a piece of land and building a rudimentary house) and in developed countries (predominantly by illegally occupying a vacant or abandoned building), the focus in this entry is on squatter settlements in developing countries.

For the millions of poor in developing countries around the world, urban areas have always been a means for improving their quality of life and environment, besides being able to work in better jobs and obtain higher incomes. This, in addition to deteriorating conditions in the rural areas, has generated a considerable flow of migrants to cities, particularly in the last three to four decades. The United Nations estimates that by the year 2020, more than half of the human population will be living in urbanized areas or cities.

Priorities of migrants arriving in urban areas change over time, depending on the conditions in which they find themselves. But one of the first dilemmas that they face, and one that persists for a long period for many households, is the question of finding adequate shelter. With little resources, financial or otherwise, and few skills or access to skills, the drastic option of illegally occupying a vacant piece of land to build a rudimentary shelter is the only one available to most of them.

The problem is further compounded by the apathy, and even antipathy, of various government agencies who view squatter settlements as an invasion of urban areas by the masses and the development of squatter settlements as a social evil that has to be eradicated. Such confusing and knee-jerk reactions and attitudes toward squatter settlements have not helped answer the more basic question of providing adequate housing for all.

As a result, there is a high level of uncertainty living in a squatter settlement—the lack of ownership of the land, the threat of eviction from public authorities, vulnerability to manipulation by criminal gangs, and geophysical risks arising from living on marshy lands or river banks. This leads to squatter households not investing in their houses and using temporary building materials, such as cardboard, plywood, and tin sheets, resulting in poor quality houses and environments.

While urban squatter settlements are probably inevitable in a growing, developing economy, local governments have tried a variety of approaches to ease these challenges, from forced evictions of the households to new locations to more accommodating approaches such as settlement upgrading, sites-and-services, and land sharing.

In the past, city authorities have tried to evacuate and clear squatter settlements, but more recently, they have recognized the contribution of migrants to the urban economy and have attempted to upgrade squatter settlements or at least provide some essential services, such as water or electricity. The World Bank argues that granting the residents legal title to their land is the key to improving housing standards and cites that between 1980 and 1985, a total of 200,000 land titles were granted in Santiago, Chile. Such an action provided the necessary incentive and impetus for improvement of the houses in squatter settlements.

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