Pre-crisis market analysis for disaster risk reduction in urban informal settlements A pilot study on housing market system in Polvorines, Peru
Today, the majority of the global population lives in urban areas and this rapid urbanization is a root
cause of increasing disaster risk (UNISDR, 2012; 2013). As more people settle in unregulated highrisk
areas, the greater the probability of casualties and economic losses is, as a result of climatic
events such as floods. This makes it critical to focus on disaster risk reduction in urban areas (UNISDR,
2012). This shift has contributed to one of the biggest challenges in developing countries: the formation
of unplanned informal settlements in high risk areas. In the Latin America and Caribbean region, informal
settlements are a significant feature of urban growth. According to UN-Habitat (2016), 104 million people
live in irregular settlements in the region, equivalent to 21% of its urban population as of 2014. In Peru
alone, 8.2 million people live in such peri-urban areas, which correspond to 34% of the urban population.
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