ABSTRACT
Cities of the Global South are still experiencing rapid processes of urbanization resulting in dynamically growing informal settlements, urban sprawl and the persistence of urban poverty. These challenges have outstripped the capacities of governments in many countries of the Global South. Gaps of governance between the sectors of the state, civil society and economy represent major obstacles to the implementation of effective, focused top-down strategies for urban management and poverty reduction. Furthermore, the lack of connection between self-help initiatives at the grassroots level and governmental authorities limits the scope of action of local communities in informal areas. In view of these challenges, a debate has flared up questioning established public policies and conventional modes of cooperation (Davis and Scherf, 2007, p. 73; Herrle, et al., 2006, p. 11; Moyo, 2010; Sangmeister, 2009; Seitz, 2009, p. 168; Mitlin and Satterthwaite, 2007, p. 484; Satterthwaite, 2008, p. 315).
