Papua New Guinea's Institute of National Affairs says governments need to ensure that the development of settlements is properly planned and social issues are dealt with.
The Institute's Executive Director, Paul Barker, was reacting to the police-led demolition of about 50 houses at the Tete squatter settlement in Port Moresby.
This came after this week's murder of prominent businessman, Sir George Constantinou, which has been blamed on youths from the Tete camp.
Mr Barker says it is an easy reaction to eliminate the alleged location of a problem, but it is not a solution.
He says the problem with the various settlements is the lack of planning and the lack of opportunities provided for the residents.
"The need for proper planning for where new dwelling settlements should actually be, and which should be adequately supported by water and other utilities, and one's got to address the various social issues and the concerns that exist within those settlements."