Editing Slum (section)

===Informal economy===
Many slums  grow because of growing informal economy which creates demand for workers. Informal economy is that part of an economy that is neither registered as a business nor licensed, one that does not pay taxes and is not monitored by local, state, or federal government.<ref>{{cite web |title=The Informal Economy: Fact Finding Study |url=http://rru.worldbank.org/Documents/PapersLinks/Sida.pdf |publisher=Department for Infrastructure and Economic Cooperation |access-date=November 20, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111027063706/http://rru.worldbank.org/Documents/PapersLinks/Sida.pdf |archive-date=October 27, 2011}}</ref> Informal economy grows faster than formal economy when government laws and regulations are opaque and excessive, government bureaucracy is corrupt and abusive of entrepreneurs, labour laws are inflexible, or when law enforcement is poor.<ref>Dan Andrews, Aida Caldera Sánchez, and Åsa Johansson (May 30, 2011). [http://www.oecd-ilibrary.org/economics/towards-a-better-understanding-of-the-informal-economy_5kgb1mf88x28-en "Towards a better understanding of informal economy"] {{Webarchive|url=https://web.archive.org/web/20150109045139/http://www.oecd-ilibrary.org/economics/towards-a-better-understanding-of-the-informal-economy_5kgb1mf88x28-en |date=2015-01-09}}. OECD France.</ref> Urban informal sector is between 20 and 60% of most developing economies' GDP; in Kenya, 78 per cent of non-agricultural employment is in the informal sector making up 42 per cent of GDP.<ref name="whyslums" /> In many cities the informal sector accounts for as much as 60 per cent of employment of the urban population. For example, in Benin, slum dwellers comprise 75 per cent of informal sector workers, while in Burkina Faso, the Central African Republic, Chad and Ethiopia, they make up 90 per cent of the informal labour force.<ref>[http://www.unhabitat.org/downloads/docs/3974_95355_A%20Fact%20Sheet%20on%20UN-HABITAT%20and%20Youth%20sr%20Oct%2026.doc "The state of world's cities"] {{Webarchive|url=https://web.archive.org/web/20090704145004/http://www.unhabitat.org/downloads/docs/3974_95355_A%20Fact%20Sheet%20on%20UN-HABITAT%20and%20Youth%20sr%20Oct%2026.doc |date=2009-07-04}} UN Habitat (2007)</ref> Slums thus create an informal alternate economic ecosystem, that demands low paid flexible workers, something impoverished residents of slums deliver. In other words, countries where starting, registering and running a formal business is difficult, tend to encourage informal businesses and slums.<ref>Geoffrey Nwaka (May 2005). [http://www.globalurban.org/Issue1PIMag05/NWAKA%20article.htm "The Urban Informal Sector in Nigeria"] {{Webarchive|url=https://web.archive.org/web/20130913160353/http://www.globalurban.org/Issue1PIMag05/NWAKA%20article.htm |date=2013-09-13}}. ''Global Urban Development Magazine''. Vol 1, No 1.</ref><ref>Sam Sturgis (January 3, 2013). [http://nextcity.org/informalcity/entry/in-nairobis-slums-potential-and-problems-as-big-as-africa-itself "In nairobi's slums, problems and potential as big as Africa itself"] {{Webarchive|url=https://web.archive.org/web/20150109002105/http://nextcity.org/informalcity/entry/in-nairobis-slums-potential-and-problems-as-big-as-africa-itself |date=2015-01-09}}. Rockefeller Foundation.</ref><ref>Jim Yardley (December 28, 2011). [https://www.nytimes.com/2011/12/29/world/asia/in-indian-slum-misery-work-politics-and-hope.html?pagewanted=all&_r=0 "In one slum, misery, work, politics and hope"] {{Webarchive|url=https://web.archive.org/web/20150108233014/http://www.nytimes.com/2011/12/29/world/asia/in-indian-slum-misery-work-politics-and-hope.html?pagewanted=all&_r=0 |date=2015-01-08}} ''The New York Times''.</ref> Without a sustainable formal economy that raise incomes and create opportunities, squalid slums are likely to continue.<ref>Minnery et al., "Slum upgrading and urban governance: Case studies in three South East Asian cities", ''Habitat International'', Volume 39, July 2013, Pages 162–169.</ref>

[[File:Ramos Arizpe slums.jpg|thumb|A slum near [[Ramos Arizpe]] in [[Mexico]].]]
The World Bank and UN Habitat estimate, assuming no major economic reforms are undertaken, more than 80% of additional jobs in urban areas of developing world may be low-paying jobs in the informal sector. Everything else remaining same, this explosive growth in the informal sector is likely to be accompanied by a rapid growth of slums.<ref name="whyslums" />