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Officials of rapidly growing cities in developing countries discourage the building of houses that do not meet international standards for sanitation and construction. Also discouraged are private individuals offering transportation in vehicles that lack decent tires, brakes, and other safety features. Yet the residents prefer substandard housing to no housing, and they prefer unsafe transportation to no transportation.

What would be the advantages and problems for a city if health and safety standards for housing, transportation, and other services were relaxed?

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