Rapid urbanisation in Less Economically Developed Countries (LEDCs) is causing many problems. Many new migrants to cities in LEDCs cannot afford housing. They are forced to build temporary accommodation in spontaneous settlements. These settlements are commonly known as ‘shanty towns’. They are also called favelas (Brazil) or bustees (India). Three main features of a shanty town are:

1. Houses are made from scrap materials such as wood and metal sheeting 
2. Often housing is do not have services such as sanitation, water or electricity.
3. The settlements are usually very overcrowded.

Rio de Janeiro, Brazil is an example of a city with a large area of shanty settlements or favelas.