Policy Implications and Conclusions

The study provides valuable information to the policy makers through this comparative study; for example, negative externalities and problem SS can be solved through internalization process. Quito has a chronic SS problem; however, it is reducing in the recent years. The problem is increasing in Kathmandu. However, Kathmandu does not have a clear action plan and active preventive policies to discourage new development of squatters in the city. In both cities, political influence is an important key in supporting squatting as people living in these settlements are potential voters for the political parties. In Kathmandu, people living in squatter feel as second-degree citizens and are viewed as threat by the community. However in Quito, slum dwellers’ perception of their status is one of forthcoming integration through strategies for the progressive upgrading of living conditions and social inclusion. As people in squatter are the major source of informal workers in the city to maintain urban economy, there is a need to change the perception of people living in and around the squatter and also the government to design socially inclusive plans and policies regarding squatter settlements.