Squatter Settlements in the Kathmandu Valley: Looking Through the Prism of Land Rights and Tenure Security

Abstract

Rural–urban migration has resulted in the rapid growth of slums and squatter settlements in the Kathmandu Valley. Such migration is due to low socio-economic growth, a poor land administration system, inadequate capacity to cope with housing needs and poor governance. These settlements are not recognised administratively, but they are legitimatised through the provision of amenities. However, due to the lack of land rights and tenure security, the squatter settlements are facing multiple problems, i.e. lack of urban investment, poor access to financing options, increasing vulnerability and social exclusion. The present trend of land development and housing provision is inadequate due to the limited allocation of land and housing units. A twofold strategy is necessary to reverse this trend. New policies are required to recognise the existing genuine slums and squatter settlements and prevent the formation of such areas in the future, to make provision for easy finance options and affordable housing units, as well as to establish special funds for upgrading and relocating squatters. At the local level, different forms of land tenure should be granted to squatters after classifying them based on their characteristics. Instead of providing freehold land title and free shelter and amenities, the identification of the right combination of grants and loans through the establishment of community credit and a microfinance system is recommended so that the relevant communities can purchase (rent or lease) the land and house and extend infrastructure development in the long run. Economic empowerment of the dwellers and coordination between local-level and national-level institutions are prerequisites to reverse the current situation of the settlements.