Such high densities are only feasible in situations where your hands are kinda tied. In other words, a bunch of people won't voluntarily live in one spot if they aren't forced to by various circumstances.
In the Walled City's case, it was the perfect storm. The city was in a sort of 'limbo' state in which it was technically controlled by China, yet it was not controlled in virtually any sense by Chinese authorities. And because British and Hong Kong authorities had no jurisdiction there, it became a sort of paradise for anarchy.
So the Triads and other gangs, people on the run from Chinese authorities, illegal immigrants, and others who were looking for haven all made their homes and businesses here. And unlike other small foreign regions that require identification papers to cross (military bases; consulates; etc.), the 'border' was completely free and unguarded. So residents of the Walled City weren't completely restricted to the stifling and dank corridors of the City, while still being able to live under no officially recognized authority.
But the term 'anarchy' only refers to the fact there were no officially recognized governments or authorities governing the City. It doesn't mean that it was a wild lawless place where anything could happen with no real consequences. Rather, my guess is that the Triads were the unofficial police of the City.
It was a mutual relationship for them. They needed a place of business that wasn't under the scrutiny of authorities, but they also needed this place to be stable enough to carry on their business with minimal muss and fuss. So they themselves did the policing of the City, with both actual policing and their reputation, in order to achieve this stability. In turn, this helped keep the City safe enough for the other residents to live and do their business without much fear.
So in reality, while many were forced to live in the Walled City out of necessity - running from the law; no official papers in either China or Hong Kong; no license to practice a profession in the Mainland or Hong Kong; etc. - they stayed and thrived there because it was safe and comfortable enough to make a life there. And more and more people came and did the same because the reputation of the City became stronger. It still probably wasn't a great place to live by any stretch, but under their circumstances with the Chinese or British government, it was the only place.
I really can't imagine such density occurring in Mumbai or other cities with big slums. Although the poor live in these slums because they can't afford anyplace else, the slums are not restricted to only a small parcel of land. Indeed, I've heard stories of slums surrounding the runways of Mumbai's airport. So these slums generally grow outwards, not upwards, as more people come to live in them.
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I take the high road because it's the only route on my GPS nowadays. #selfsatisfied
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