Graduation Day Dress Up, South Africa

Other terms that are often used interchangeably with "slum" include shanty town, favela, skid row, barrio, and ghetto although each of these may have a somewhat different meaning. Slums are distinguished from shanty towns and favelas in that the latter initially are low-class settlements, whereas slums are generally constructed early on as relatively affluent or possibly a prestigious communities. The term "shanty town" also suggests that the dwellings are improvised shacks, made from scrap materials, and usually without proper sanitation, electricity, or telephone services. Skid row refers to an urban area with a high homeless population and a term is most commonly used in the United States. Barrio may refer to an upper-class area in some Spanish-speaking countries and is used to describe only a low-class community in the United States. Ghetto refers to a neighbourhood based on shared ethnicity. By contrast, identification of an area as a slum is based solely on socio-economic criteria, not on racial, ethnic, or religious criteria.
Characteristics
The characteristics and politics associated with slums vary from place to place. Slums are usually characterized by urban decay, high rates of poverty, illiteracy, and unemployment. They are commonly seen as "breeding grounds" for social problems such as crime, drug addiction, alcoholism, high rates of mental illness, and suicide. In many poor countries they exhibit high rates of disease due to unsanitary conditions, malnutrition, and lack of basic health care. However, some like Dharavi, Mumbai, are a hive of business activity such as leather work, cottage industries, etc. Rural depopulation with thousands arriving daily into the cities makes slum clearance an uphill struggle.