Informal settlements should be viewed not only through the lens of vulnerability, but also as areas with economic and social potential.
Report informs that Washington Menezes Fajardo, representative of the Inter-American Development Bank, said this at the "Transforming Informal Settlements" event held as part of WUF13 in Baku.
"Informal settlements are a multidimensional phenomenon where high climate risks, spatial segregation and social exclusion coexist, while the communities living there have significant economic potential and a desire to integrate into society," he said.
According to him, studies in Brazil show that the combined economic potential of favelas is comparable to the economies of some countries in the region, demonstrating the need to view informal settlements as "points of opportunity," including for access to the labor market and entrepreneurship development.
Fajardo emphasized that including such areas in urban maps and data systems is a key element of effective policy, enabling governments to make more accurate decisions, especially amid climate risks and natural disasters.
"In Latin American and Caribbean countries, natural disasters, including hurricanes, can lead to significant economic losses, which increases the need for high-quality geospatial data for planning and response," he added.