Interesting - I didn't get that impression from the article.
There was speculation from the author that the slums are inherently "greener" because they recycle and don't consume as much energy, etc. But every mention of hard data or studies about urban density being more efficient seems to be about the City in general, not the slums per se; and it's really about the unsurprising fact that centralizing populations leads to innovation and economies of scale for services and infrastructure.
The only quote talking about data on whether the slums are greener laments the lack of proper 'footprint analysis':
"The concept has been very useful in shaming cities into better environmental behaviour, but comparable studies have yet to be made of rural populations, whose environmental impact per person is much higher than city dwellers. Nor has footprint analysis yet been properly applied to urban squatters and slum dwellers, which score as the greenest of all."
The argument for an unplanned self-improving community is interesting, but it is unclear how is that different from any other community structure that does something like that (from condominiums and suburbia to unincorporated towns) - and how it relates to the other measurable efficiencies described in the article, which in the slums still have roots on central planning (electricity, garbage collection, sanitization, etc).
The single paragraph is too vague an argument to know whether this is a process that complements underlying infrastructure (in which case slums are a bad, but interesting, example), or *the main process* for improving the community - in which case slums are the best example, and they confirm it is a *horrible* argument.
I won't argue that shanty-towns don't evolve as communities in an "organic" fashion, and are surprisingly efficient at addressing survival needs. But those "organic" constructions and waterways do not help when a strong rain wipes out neighborhoods under a mudslide, or ad-hoc sewage systems contaminate the local water supply.