Juan Caballero: Upgrading informal settlements is economically justified

Upgrading informal settlements is economically justified and is already part of the real urban economy, including large-scale self-built housing.

Report informs that Juan Caballero, CEO of Build Change, said this while speaking at a panel session held as part of WUF13.

According to him, a significant share of housing construction in Latin America and other regions is effectively carried out by residents themselves.

"This turns the informal sector into a key element of the urban economy. In Latin America, up to 75% of cement sales are accounted for by self-construction in areas considered informal," he said.

Caballero also noted that physical risks in cities are technically measurable and, in most cases, manageable. Mass relocation of communities is often not a technical necessity, as most risks can be reduced through infrastructure solutions and gradual improvements in living conditions.

He added that decisions on relocation are often determined by political and economic factors rather than real threats.