Why slum relocation schemes are not effective? Examine the problems in brief with an emphasis on slums as a offering solutions and its economic prospects.

The Government of India, for purposes of the implementation of various schemes relating to urban development, has defined a slum area as follow: "A slum area means any where such dwellings predominate, which by reason of dilapidation, overcrowding, faulty arrangement and design of buildings, narrowness and faulty arrangement of street, lack of ventilation, lack of sanitation facilities, inadequacy of open spaces and health or morale." These slum area are also referred to as the 'blighted area'; 'renewal area'; 'deteriorated area', 'lower class neighborhood'; 'lower income area', etc. in India, these areas are also known as 'Jeropadpatti'; Juggi Jhounpadi'; 'Bastee'; 'Akatas' and 'Cherri', in regional vocabularies.

With respect to slums, there is a pattern where people are willing to give up better living conditions (more space and toilets on premises) for better opportunities in the core areas near city (in contrast to peripheral areas near periphery).

1. Some of them do not move to the new/relocated areas as their livelihood is deeply rooted in these slums (core) and the new areas have poor accessibility and livelihood options are limited. Intrinsic skills like zari making are related to specific markets. Relocation renders these skills redundant.
2. The credit ecosystem that existed based on trust, social relationship and nurtured for generations is also lost. Unemployment and credit opportunities have a cyclical impact on each other. Credit makes it easy for people to start small businesses and skill-based work such as carpentry, driving autorickshaws and taxis, and employment makes it easy for people to get and pay back credit on time.  Read more...