Virtually all projections suggest that the urban population in the Third World countries will expand at an alarming rate in the coming years, thus calling for special emphasis on policy and action on the urban front. A disturbing feature of this trend is the proliferation of slums and squatter settlements. The proportion of city population living in them seems quite substantial already in the 197Os. Between a quarter and half the city population in many developing countries seem to live under appalling con- ditions, lacking the minimum infrastructure and basic amenities. With projected trends in urban population, further deterioration through ‘squatterisation’ seems inevitable - unless of course effective remedial measures are undertaken immediately. The population of such settlements is expected to rise by over 1000 millions in 20 years, by the end of the year 2000.2 If however one looks at the urban population lacking not only basic shelter and support services but also such basic need items as minimal nutrition and education then the projected addition appears to be smaller - about 600 million by the year 2000.