Over 15% of the urban population in Latin America experiences multidimensional poverty. Image: Gabriel/Unsplash

Latin America and the Caribbean is one of the most urbanized regions in the world. Approximately 82% of its population resides in urban areas, well above the global average of 55%. And, while cities have undoubtedly become powerful engines for economic growth and social progress, rapid urbanization has also brought rising inequality. Although the region achieved a significant reduction in monetary poverty, reaching 26% in 2022, the nature of poverty has shifted, becoming predominantly urban. The proportion of people living in poverty in urban areas increased from 66% in 2000 to 73% in 2022, reflecting a profound transformation in the geography of deprivation.

Urban poverty is no longer defined solely by insufficient income. Rather, it is characterized by a combination of overlapping disadvantages. The concept of multidimensional poverty captures this reality, recognizing that households may earn income while still lacking access to adequate housing, education, healthcare and essential services. Recent research by ECLAC and UNDP shows that over 15% of the urban population in Latin America experiences multidimensional poverty. Although this rate remains lower than in rural areas, the absolute number of people affected is considerable due to the region’s high urban concentration. This includes families living in informal settlements without safe water or sanitation, neighbourhoods where malnutrition persists and communities with limited educational and economic opportunities.

The scale of the challenge is further highlighted by recent estimates showing that just three countries in the region, Brazil, Venezuela and Mexico, account for 59% of all individuals living in extreme poverty in Latin America. This concentration, which affects more than 52 million people living on less than $3.65 a day, underscores the need for urgent, targeted and integrated action.

The intersection of urban inequality and climate vulnerability

Rapid urban expansion, combined with the growing effects of climate change, has created conditions that further entrench poverty. Many cities have grown faster than their governments can plan or regulate, leading to widespread informal development in areas exposed to environmental risks. Settlements located on hillsides, floodplains and peri-urban zones often lack the infrastructure needed to withstand extreme weather events. Climate-related shocks tend to impact the poorest the most, as they are more likely to live in vulnerable housing and lack the resources to recover. Without urgent corrective measures, the region risks seeing decades of social progress undone. Some estimates suggest that climate shocks could increase the number of people living in extreme poverty by as much as 300% by 2030.

Climate change also intensifies pre-existing inequalities. As rural populations are displaced by droughts, storms or land degradation, many migrate to urban areas and settle in already overburdened informal neighbourhoods. This increases pressure on public services, exacerbates exclusion and feeds a cycle of poverty. Women in urban areas are particularly affected. One in four households in the region’s cities is headed by a woman, the highest proportion globally. These households often face additional challenges, including informal employment, caregiving responsibilities and limited access to social protection. Following climate-related disasters, women and girls are also at greater risk due to barriers in mobility, lower access to resources and a lack of secure shelter.

From vulnerability to opportunity: sustainable and inclusive cities

Despite the complexity of the challenge, cities across the region are also spaces of innovation. Numerous examples show that it is possible to reduce multidimensional poverty while simultaneously building urban resilience. In Medellín, Colombia, the strategy of social urbaniization has helped to transform some of the city’s most vulnerable areas. Investment in inclusive infrastructure, such as public transport, libraries, green spaces and cultural centres, has strengthened community cohesion and contributed to significant reductions in violence. Similarly, sustainable mobility solutions in cities like Curitiba, Bogotá and Mexico City have expanded access to economic opportunities, reduced travel times and improved air quality, particularly benefitting those on low incomes.

Nature-based solutions are increasingly being adopted to mitigate climate risks. Initiatives, such as tree planting, the creation of urban forests and the restoration of wetlands in cities like Lima and Bogotá contribute to regulating temperature, preventing floods and creating public spaces that enhance well-being. In Quito, Ecuador, the implementation of urban laboratories has involved communities, universities and local authorities in co-designing urban improvements. These participatory models have proven effective in delivering low-cost, high-impact solutions while fostering a stronger sense of belonging and agency among residents.

These efforts demonstrate that collaboration among local actors, supported by knowledge-sharing and strategic partnerships, can drive meaningful change. Urban resilience and social inclusion do not depend solely on large-scale investments, but also on innovation, adaptability and the will to place people at the centre of policy decisions.

A shared commitment to dignity and resilience

Addressing the complex relationship between urban poverty, inequality and climate vulnerability requires integrated and long-term responses. Cities must be planned and managed with a focus on equity, environmental sustainability and risk reduction. This includes ensuring that land use is regulated to avoid high-risk zones, while providing adequate infrastructure, housing and essential services in areas that are safe, accessible and conducive to human development.

Investments in inclusive infrastructure are particularly important. Affordable and sustainable transport systems, energy-efficient housing, resilient water and sanitation networks and public spaces that promote safety and social interaction can have transformative effects. At the same time, strong urban social protection systems are needed to help communities withstand shocks. Measures, such as early warning systems, disaster preparedness training and community-led adaptation strategies, have proven critical in reducing vulnerability.

Financing these transformations requires innovative mechanisms, including improved local revenue collection, incentives for green investment and access to blended finance instruments. Where possible, urban policy should be aligned with social and environmental goals to avoid fragmented or siloed approaches. Gender-responsive planning, data-informed decision-making and inclusive governance processes must also be prioritized.

Finally, it is essential to recognize the role of human behaviour and collective awareness. Transformative change will not come from infrastructure alone. When communities adopt more sustainable behaviours, strengthen social cohesion and actively engage in shaping their urban environments, they help build more resilient and just cities.

The multidimensional nature of urban poverty calls for a conversation that goes beyond metrics. It is about dignity, opportunity and the right to thrive in environments that support health, safety and wellbeing. As urbanization continues to reshape the region, there is a window of opportunity to reimagine our cities as drivers of inclusive, low-carbon development. Bringing this conversation to broader platforms, fostering collaboration across regions and disciplines and placing people at the heart of urban transformation are essential steps to ensuring that no one is left behind. Placing people at the heart of this transformation is not only a moral imperative, but a pathway towards more equitable, sustainable and prosperous urban futures.

This article is republished from the official website of the World Urban Forum. To read the original article, please visit:

https://www.weforum.org/stories/2025/04/how-human-centred-cities-address-multidimensional-poverty-and-build-urban-resilience-in-latin-america/