The reasons that slums arise varies from country to country, but one common factor is rapid migration from rural to urban surroundings. The infrastructure of a city can’t hold and infinite number of people and the over-spill make their own communities in bits of land that are either too crap for anyone else to use or far enough from the city that they haven’t been claimed by anyone yet.
This is one of the many Mumbai slums.
Other factors that produce slums include economic stagnation or depression, high unemployment, poverty, poor town planning and natural disasters.
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