Then you obviously havent been to Halle/Silberhöhe. But as you said, the difference is the magnitude. The scale of informal economies is certainly higher in Brazil, Honduras or Colombia. While here, even in problematic spots of certain cities, you will have the occasional criminal, the economic situation of a whole city is not dependent on it.

Apart from a few trailer encampments of sinti/roma there really aren't. Those usually get demolished after a few month.