Research Reveals Untapped Economic Opportunity in Indian Slums
Experts share groundbreaking findings from satellite image analysis & on-the-ground inquiries of more than 4,500 slum households over 7 years
BENGALURU, India, July 24, 2018 /PRNewswire/ -- Two new reports released Monday provide insight into the lives of some of India's most vulnerable citizens—urban slum dwellers—and how city leaders can help. With implications for slums across India, the reports reveal an average purchase price of INR 15 Lakh (~USD $23,000) for slum households in Bengaluru. The implication is clear - slums are a sizeable economic asset hiding in plain sight for many residents and government officials. Formal recognition and documentation of slums could generate tremendous, unprecedented revenue for Indian cities, improving civic services and overall economic growth.
Across India, more than 105 million people live in informal settlements, or slums, and many do not have recognized rights to their land and property. Without formal documentation, slum properties are untapped 'wealth' for both residents and the government, as residents cannot easily leverage or sell their property and governments cannot collect taxes or effectively provide basic services such as clean water. The study also points to the host of spinoff benefits to urban society including improvement in the quality of life across the social spectrum, efficient delivery of amenities and more equitable and inclusive India.
The Sanford School of Public Policy at Duke University, in partnership with global impact investment firm Omidyar Network, North Carolina State University, and University of North Carolina, Chapel Hill, released the reports at the recent workshop, "One Way Ticket—New Migrants, Emerging Settlements, and Stickiness with Bengaluru Slums," organised at IIM Bangalore, an initial partner of the new research.
Titled "Studying the Real Slums of Bengaluru" and "Characterizing Irregular Settlements Using Machine Learning and Satellite Imagery," the reports focus on Bengaluru, India's fastest growing city in the last decade. Findings from the report can inform a range of stakeholders in the region and beyond on the real needs of slum dwellers and how technology can help develop effective solutions at scale, as the following points demonstrate:
- Government databases are out of sync, vastly underreporting the amount of slums in existence. Official records show 597 slums in Bengaluru, but machine learning algorithms now reveal there are nearly 2,000 slums in the same area.
- Slums are not transitory in nature, dispelling the myth that increasing slum populations are due to the recent boom in urban migration. In Bengaluru, a slum resident is likely to have lived there for 20 years.
- The average slum in Bengaluru is worth an estimated INR 15 Lakh (~USD $23,000). Without formal documentation, neither residents nor government can utilize this economic asset.
- Slums exist across of spectrum of living conditions. Some slums in Bengaluru lack basic needs such as clean water and sanitation, and others need education and job opportunities. Policy must be responsive to the continuum of slums.
- Technology must be a part of the solution. Satellite imagery and machine learning algorithms can help authorities map and monitor the growth of slums quicker, cheaper and more accurately than ever before.
"What we found truly remarkable in the reports' findings were the ingenuity and determination of slum dwellers in the face of these challenges," said Professor Anirudh Krishna from Duke University, who has led the research team since 2010. "Bengaluru's slum dwellers have learned to make do with a robust informal market with lawyers, brokers, and politicians, where there are at least 18 different documents circulating with varying levels of legitimacy and enforceability. These residents need and deserve a better system for securing their land and property rights, and this research is an important step in the right direction."
Roopa Kudva, partner and managing director of Omidyar Network in India said, "The in-depth insights from more than 4,500 slum households over seven years, combined with the data on value of property transactions clearly underscores the economic potential locked in the slums. Governments too are recognizing this – in Odisha, we are working with the state government, using drones to map 250,000 slum households enabling them to provide formal property titles to 1 million slum residents. Property titling for slum dwellers has a clear link to overall economic development, and Omidyar Network will continue to support creation of robust data to drive the discourse and decision making in this field."
To learn more about the two new reports and receive a copy, contact [email protected].
About The Sanford School of Public Policy at Duke University
Founded in 1971 as the Institute of Policy Sciences and Public Affairs, the Sanford School of Public Policy at Duke University in Durham, North Carolina, offers undergraduate, masters and doctoral degrees in public policy and international development policy to more than 700 students annually. With a core faculty of 70 scholars and practitioners, The Sanford School is home to a number of interdisciplinary programs, including, POLIS: The Center for Political Leadership, Innovation and Service, the Duke Center for International Development, the Duke Center for Child and Family Policy and the DeWitt Wallace Center for Media and Democracy, as well as research units focused on health policy, terrorism and security studies. For more information, visit www.sanford.duke.edu.
About Omidyar Network
Established in 2004 by eBay founder Pierre Omidyar and his wife Pam, Omidyar Network invests in and helps scale innovative organizations to catalyze economic and social change. The firm has committed more than $1 billion through investments in for-profit companies and grants to nonprofit organizations that foster economic advancement and encourage individual participation across multiple initiatives, including Digital Identity, Education, Emerging Tech, Financial Inclusion, Governance & Citizen Engagement and Property Rights. In India, Omidyar Network focuses on helping the hundreds of millions of Indians in low-income and lower-middle-income populations, defined as ranging from the poorest in society to the existing middle class. To learn more, visit www.omidyar.com and follow on Twitter @omidyarnetwork #PositiveReturns.
About Indian Institute of Management Bangalore
Established in 1973, the Indian Institute of Management Bangalore (IIMB) is widely acknowledged as one of the premier management institutes in India with an international reputation for its programs, alumni and faculty. IIMB's research centres include the Centre for Public Policy, the Nadathur S Raghavan Centre for Entrepreneurial Learning, the Centre for Financial Markets and Risk Management, the Centre for Corporate Governance and Citizenship, the Centre for Software and IT Management, the Centre for Supply Chain Management and the Centre for Enterprise Resource Planning. IIMB collaborates with over a hundred leading management schools in the world for various research initiatives and student and faculty exchange programs. For more information, visit www.iimb.ac.in/.
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