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Introduction
It is important to note that neoliberalism is a system where the free market is put at a pedestal as a solution to all human problems, and governments are considered as something negative. It seeks to utilize human competitiveness and market forces as a prime facilitator of justice and fair development of society, which is a questionable statement requiring in-depth analysis. The modern economic conditions created an environment where informal settlements are becoming widespread, and governments are trying to redevelop them by actively demonizing slums. However, these measures do not address the root cause of the issue but rather seek to fix the symptoms. Neoliberalism and neoliberal ideas lie at the core of the rapid growth of slums around the globe due to marginalization and rural migration, where cooperation with inhabitants can lead to governmental socialization.
Growth of Informal Settlements Globally and the Relationship of the Phenomenon to Neoliberalist Framework
Informal settlements are growing at such a rapid pace worldwide because people from rural regions are migrating to large cities in search of economic opportunities absent in their hometowns. Neoliberalism prevents the creation of effective safety nets for vulnerable groups and regulation of the housing market, which results in the homeless and the poor gathering in urban peripheries. Firstly, in order to observe a clear connection between neoliberal ideology and informal settlements, it is critical to understand the fundamental principles of neoliberalism. The given framework seeks to minimize government intervention and establish free markets on the basis of laissez-faire economic liberalism. The core idea is anchored on a belief that free markets are flawless and most efficient at promoting human prosperity and wellbeing. By advocating minimal intervention from the state, markets become less regulated and less prone to ineffective as well as wasteful governmental policies.
However, the downside of neoliberalism is the fact that it exacerbates social and economic inequality. An unregulated capitalistic system is not harmless and flawless as neoliberalists want to present it because it can be detrimental to society. The most vulnerable groups become the victims of such a system since social programs and other forms of social safety nets disappear under the neoliberal agenda. Neoliberalism fails to account for structural violence in forms of poverty and racism, which go against the core essence of free markets accessible for everyone.
Secondly, it should be noted that slums are part of the urbanization problem. It is driven by the mass migration of people from rural regions to large cities in order to utilize economic opportunities. Informal settlements are defined by the fact that they lack basic urban services, such as access to clean water or electricity. Subsequently, one might wonder how slums are related to neoliberalism. The best example to see the intricate and tight connection between the two is New Delhi. It is stated that the capital city of India has also been significantly affected by this global phenomenon of the neoliberal space-making strategy (Ghosh 2020: 288). Since neoliberalism is built on the flawlessness of free markets, it assumes that they are accessible to everyone, which facilitates competition and efficiency.
However, neoliberalist framework fails to account for structural and cultural inequalities of opportunities, such as the caste system in India or racism in the US. It is evidenced by the fact that the current regime of neoliberal city-making, the urban poor, including the homeless, has become further marginalized (Ghosh 2020: 287). In other words, marginalization is not only neglected by neoliberalism, and the latter even contributes to higher inequality, which translates to less accessibility of these so-called free markets.
Demonization of Informal Settlements, Targeted Redevelopment, and Consequences of Interventions
Governments and authorities demonize slums and target these areas for redevelopment because they are inhabited by highly vulnerable, voiceless, marginalized, and economically undesirable groups of people under the neoliberal framework. For example, in the case of New Delhi, the city has been experiencing restructuring of its cityscape which is dominated by the construction of largescale infrastructure suitable for attracting business capital through eviction of slums and other anti-poor measures (Ghosh 2020: 296). In other words, neoliberalism seeks to make these areas more profitable and attractive for investment, but slums lack such opportunities since the inhabitants tend to have low purchasing power making them unattractive consumers.
Therefore, the poor and homeless are deprived of their political power as well, which makes them voiceless in politics. When commercial and business interests advocate the removal of slums, the inhabitants of these regions cannot voice their stance on the issue. It is reported that being homeless, they neither have any residential address nor any claim to citizenship. Thus, it is no wonder that 95% of Delhis homeless do not possess voting rights or ration cards (Ghosh 2020: 293). Many of the vulnerable groups lose their right to fight against unfair demonization by the systematic marginalization, such as linking voting rights with residential addresses unobtainable in a slum.
Obstacles, Economic Opportunities, and Political Opportunities in Slums
The obstacles found in slums include the lack of voting rights, lack of access to water, poverty, marginalization, crime, food insecurity, and vulnerability to disasters. A major political opportunity when it comes to slums is the socialization of government to become more open and accessible for civil discourse with the inhabitants. It is stated that one should account for these nonmovements as a form of deradicalized dissent that works to amend the existing social order rather than create a new one (Atia 2019: 9). In other words, the resistance of these groups counters the biggest flaws of the neoliberal agenda by exposing its problems in regards to fundamental human needs, such as housing. Economic opportunities can include recognition and support of slums as formal settlements to tax them and provide them with social benefits.
Conclusion
In conclusion, as with any economic, social, and political system, neoliberalism has its flaws, such as the removal of social safety nets and the inability to ensure protection for the most vulnerable groups. Since neoliberalism contributes to inequality, poverty is an inherent part of the given system. Deregulation of markets and reduction of the states authority on intervention leads to homelessness and poverty among groups with an inability to afford the housing market prices. These values are, in turn, driven by supply and demand, where demand can easily and substantively increase due to migration, but supply is limited since it is a challenge to build houses. The lack of support for the poor and homeless in conjunction with policies forbidding settling in urban centers leads to the gathering of such groups in urban peripheries. The end result is slums or informal settlements of large vulnerable groups, which are exposed to dangers of environmental, financial, political, legislative, and commercial natures.
Works Cited
Atia, Mona. Refusing A City Without Slums : Moroccan Slum Dwellers Nonmovements and The Art of Presence. Cities, vol. 1, 2019, pp. 1-10.
Ghosh, Subhamay. Understanding Homelessness in Neoliberal City: A Study from Delhi. Journal of Asian and African Studies, vol. 55, no. 2, 2020, pp. 285297.
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