Abstract
A huge amount of the world's population exists in urban slums under precarious living conditions which pose a major challenge to sustainable development. Overcrowding, poor infrastructure, and the nonappearance of access to basic facilities like safe water, hygiene, & health, are defining these settlements. Urban slums are important to local and national economies, especially for informal economic activities that enable livelihoods for millions of people. Informal sector work such as street vending, waste collection, and domestic labor drive the livelihoods in slums largely and support the residents as well as the wider urban economy. Yet most of these livelihoods are often insecure and without the protection, formal employment can offer. In this review, the diverse factors that affect livelihoods in urban slums including poverty, unemployment, and the absence of basic infrastructure, are examined. The opportunities and challenges offered by slums for economic growth are explored with particular reference to informal markets and the need for inclusive development policies. The paper also points out the role of interventions such as government policies, community-led initiatives, and microfinance in improving livelihoods and enhancing economic growth in slum areas. Mitigating these challenges is critical to encouraging urban slums transformation into sustainable and thriving communities which perform vital roles in the national economy.
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