The Legacy Effect of Squatter Settlements on Urban Redevelopment

Abstract

The paper 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. We test our model using the case of Cochabamba, Bolivia and obtain results consistent with our theoretical model prediction. Our 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.

The value of formal titles to land in residential property transactions

“…Hananasif (WAT Human Settlement Trust, 2010). However the fact that these settlements started as informal, the legacy effect of informality guarantees poor neighbourhood amenities despite being formal (Navarro & Turnbull, 2010). It is unlikely for many such areas to obtain a significantly higher premium out of title, the premium must be determined outside titles.…”

“…A., 2008). The multiplicities of housing utility determinants suggest that title alone may not be an important signal of expected prices in legal pluralistic markets (Navarro & Turnbull, 2010). Other factor must be considered in the modelling process.…”

Do physical characteristics of housing and neighborhood environment impact high Jeonse price ratio?: Focusing on whether Jeonse is a high risk

“…전세제도는 우리나라 고유의 주택임대차 계 약형태로 정의되고 있다 (서승환, 1998). 그러나 일부 연구에 의하면 해외에도 존재하고 있는 제도이며, 인도, 아프가니스탄, 볼리비아 등의 소수국가에서 시행되고 있는 것으로 나타났다 (김진유, 2015;Farfan, 2004;Feather, 2018;Navarro and Turnbull, 2010) (김기중, 2023;김기중 외, 2021;김지연․남진, 2021;Yun, 2021). 이뿐만 아니라 해외에서 국내의 전세제도를 바라봤을 때, 사금 융 역할을 하는 제도의 성격이 강한 특이한 한 국의 고유한 계약형태로 평가받고 있다 (Ambrose and Kim, 2008;Ronald and Jin, 2015).…”

Intra-urban residential mobility and tenants' workplace choices in Kinondoni municipality

“…The observation that non-mover tenants working within their ward of residency are likely to rent smaller space compared to other tenant groups suggest that they will concentrate a lot of activities in smaller spaces leading to deterioration of environmental qualities which is a typical characteristics of their residency wards. It is important to note that the informal history of some of these wards might have created a "legacy effect" which inhibits housing improvement by owners (Navarro & Turnbull, 2010). Further, tenants in these wards may be trapped in terms of residential options because many are experienced tenants who have locked themselves within the local limits of their wards.…”

“…However, these neighbourhood factors have also been found to play a very limited role in Ghana (Acheampong & Anokye, 2013). This is probably because the informal nature of many settlements lead to low quality housing which are difficult to redevelop or improve (Navarro & Turnbull, 2010). Such settlements are often characterised by high population density and are prime target for lowincome households.…”