Notes on informal urban livelihoods
Download as PPTX, PDF3 likes1,457 views
This document discusses informal urban livelihoods. It notes that those in the informal sector often lack income, assets, and basic services. They face barriers such as physical distance, financial fees and regulations, legal issues like registration and citizenship, and socio-cultural discrimination. Those in the informal sector are vulnerable to poverty due to factors like exclusion from the formal economy, informal costs, and urban penalties like potential eviction. The document also discusses definitions related to informality and debates different perspectives on the informal sector. It outlines capabilities, assets, and strategies that contribute to sustainable livelihoods for those participating in the informal economy.
Notes on informal urban livelihoods
- 1. notes on informal urban livelihoods jorge carrillo-rodriguez { 11th March 2013
- 2. Dimensions Lack of income and productive assets Lack of basic services Lack of power Barriers Physical: distance, accessibility Financial: fees, regulations Legal: registrations, citizenship Socio-cultural discrimination Political poverty and vulnerability
- 3. Monetized economy Exclusion by design Informal costs Opportunity costs Urban penalty Eviction and environmental hazards Social capital Information urban living
- 4. “Informality is a term that has the dubious distinction of combining maximum policy importance and political salience with minimal conceptual clarity and coherence in the analytical literature.” (Kanbur, 2009) terms used interchangeably, i.e. informal economy, informal sector, informal employment, etc. difficulty in identifying the boundaries between formal and informal misconceptions on the role, contribution and impact informality
- 5. Informal economy Informal sector Informal employment Informal work Informal workers Related terms Shadow/underground economy Informal settings defining terms
- 6. Basic { Complementary { “Holistic” { finding boundaries
- 7. Informality poverty Large IE = weak FE Small size limits dynamism & growth Exploitative Safety net Low entry cost Flexible and heterogeneous Local knowledge/innovation perspectives
- 8. Capabilities Assets (material and social) Strategies A livelihood is sustainable when it can cope with and recover from external stresses and shocks, maintain or enhance its capabilities and assets now and in the future while not undermining the natural resource base. livelihood
- 9. Human: skills, knowledge, ability to work, health Financial: savings, credit, remittances, transfers Social: networks, trust, services Physical: infrastructure, transport, shelter capabilities and assets
- 10. More income Increased well-being Reduced vulnerability Increased resilience Sustainable living standard livelihood outcomes
- 11. Mainly urban Urban and rural Income raising • domestic service - e.g. cleaning and childcare (esp. • home gardening girls and women) • processing, hawking, vending transporting goods • urban agriculture • casual labour/piece work • renting out rooms • specialised occupations (e.g. tinkering, food • multiple jobs (formal/informal) preparation, shoe-shining) • mortgaging and selling assets • migration for seasonal work Lowering expenditure • scavenging • changes in purchasing habits (e.g. small frequent • reduce transport costs purchases, rather than cheap bulk buys, and/or poorer quality food) • discrimination and triage (e.g. giving less food to weaker/ less favoured household members). Social capital • shared childcare and for elders • mutual help e.g. loans from friends or saving groups • informal worker’s associations • family splitting • collective action • remittances from household members working away Strategies
- 12. Worldwide: around 66% of total employment Developed Countries: 25-40% of total employment Developing Countries: 50-90% of total employment Highest: Sub-Saharan Africa and South Asia (as high as 90% in many countries) Medium: South East and East Asia + Latin America (around 65% in most countries) Lowest: North Africa and West Asia (around 50% in most countries) informal is normal
- 13. It does not mean Simple regulation and taxation but also getting registered and paying taxes being covered by legal and social protection receiving support to become productive and remunerative becoming organized and gaining voice and power (Chen, 2009) formalization
- 14. Formalizing the Informal: not just regulation + taxation but also… assets + opportunities + productivity-enhancing support economic rights: commercial + labor + property social protection organization and representative voice “Informalizing” the Formal: reform of economic policies and institutions to include the informal economy/workforce as legitimate… part of the total economy target of economic policies + incentives stakeholder in policy-making and rule-setting institutions (Chen, 2009) new urban economy