This chapter considers the formalization of informal settlements in mainland Portugal. The country experienced a rise of illegal settlements during a period of economic growth (corresponding to the 1960s and 1970s). Informal developments culminated in an exploding social and environmental problem with hundreds of thousands of citizens living in informal settlements, mainly around the Portuguese capital. The Portuguese example evolved from the late 1970s "critical stage" to our days in which informal settlements are residual and about to be solved. The general aim of this review is to discuss how different types of informal settlements infl uence the way public policies are designed, in four complementary perspectives: informal settlements' characteristics, including physical, social-economic and livelihood; local public policies initiatives and models of action; national public policies and paradigms; political involvement and the bridging role of political leaders. In this context, the success of public policies depends on its capacity to co-evolve with local organization's initiatives involving informal settlement dwellers. The scope of this review concentrates on two kinds of informal settlements: those in spaces not belonging to the residents; and those in spaces involving land ownership. The methodology adopted will follow those four perspectives along the last fi ve decades (since the early 1960s). By demonstrating the benefi ts of long-term analysis of public policies in highly complex, hierarchical and dynamic environments as are informal settlements, the authors hope to stimulate more studies of similar nature.
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