Even with the best of intentions, here's what you get when governments refuse to work with squatters to better their communities and instead evict them with the promise of permanent housing in the future: slums created by the government.
The Malaysian government tried exactly this. It promised squatters new homes, moved them to temporary camps, and demolished their former communities. The result, according to a story in The Star: "While squashing squatter zones, the move has ironically created urban slums where thousands of residents are forced to put up with woes ranging from hygiene, safety to basic amenities, on a daily basis."
The article outlines the classic nightmares of bad development: elevators that don't work, so people have to hike up 17 floors. Blocked drains and standing water, so people get dengue and malaria. All courtesy of the government.
And here's the crowning indignity: "On top of these problems, the low-income occupants have suffered loss of some RM5,000 incurred from down payment, interest and penalty for the units promised. Moreover, after two years of free stay at the PPR, they have to pay rental of RM147 per month and that is to be revised to RM250."
Of course, government could have worked with the squatters to improve their own neighborhoods, with none of these negative consequences.