DefinePK

Abstract

One of the issues of large cities, in general, and Islamabad in particular is slums (Kachi Abadis). According to Capital Development Authority CDA, there are about 52 kachi abadis in Islamabad, out of which it recognises only 10. The population of these slums exceeds 100,000. We find considerable literature about the determinants of slums from various resources. This paper aims to contribute in the available knowledge by examining the determinants of slums in large cities, in general, and Islamabad in particular through a philosophical approach. The paper assumes that the creation of slums in modern world is a natural outcome (by-product or negative externality) of the conventional philosophy of maximisation. We know that all subjects of social sciences in general and economics, in particular are based on the philosophy of maximisation of private gains. This philosophy of optimisation has led to the creation of various institutions such as banks and investment corporations whose main job is to maximise the profits. The study hypothesises that this philosophy of maximisation has left the provision of houses to the market forces. While the market forces are efficient in the provision of houses to the higher segment of society, however, is inefficient and badly fails to launch even a scheme of affordable houses for the lower segment of society. It provides a case study of Centaurus in Islamabad, as is evident, in support of the hypothesis. The study shows that the philosophy of maximisation helps the planner of Centaurus project in Islamabad to attract billions from market and serve the rich. However, a plan of affordable houses is less likely to attract investments from markets. This is in spite of the fact that housing shortfall is currently estimated at over 10 million units across country. Based on the case study of Centaurus in Islamabad, the study claims that without giving up the philosophy of maximisation, we might not be able to solve the issue of the creation of slums in Islamabad and elsewhere.