Abstract
Informal settlements pose a significant urban challenge affecting millions globally. This thematic review investigates the lock-in phenomenon of informal settlements and its implications for sustainable urban development, exploring pathways to transition out of informality. Analyzing 123 publications, the study categorizes the drivers of informality into institutional and policy, economic and poverty, political, and environmental domains. The findings reveal the persistence and proliferation of informal settlements stem from interconnected lock-ins across these domains. These lock-ins result in sociocultural exclusion, economic informality, health and security concerns, vulnerability to environmental hazards, and pressure on basic infrastructure, ultimately hindering the achievement of Sustainable Development Goals (SDGs). The study emphasizes the need for integrated, context-specific solutions and coordinated interventions in priority domains, such as economic development, infrastructure development, health and safety, community empowerment, and governance. By integrating these approaches and fostering resident engagement, this review concludes that informal settlements can be transformed into more inclusive, resilient, and sustainable urban neighborhoods.