1.
INCLUSIVE CITIES FOR THE URBAN WORKING POOR:
LESSONS FROM AFRICA
MARTY CHEN
WIEGO NETWORK & HARVARD UNIVERSITY
AFRICA RESEARCH INSTITUTE FEBRUARY 24, 2016

2.
REMARKS
 Informal Economy in Africa
 recent statistics
 comparative perspective
 WIEGO Network
 overview
 presence in Africa
 Urban Informal Workers in Africa
 Informal Economy Monitoring Study (2012)
 other key WIEGO findings
 Inclusive Cities for the Urban Working Poor
 key demands
 enabling conditions
 promising examples: Accra and Durban

3.
INFORMAL ECONOMY:
TWO OFFICIAL DEFINITIONS
 Informal Sector = unincorporated enterprises that may also be
unregistered and/or small (1993 ICLS)
 Informal Employment = jobs or work without employment-based
social protection in informal enterprises, formal firms and/or
households (2003 ICLS) - including:
 self-employed: employers + own account workers + contributing family
workers
 wage workers: employees + casual day laborers
 contracted & sub-contracted workers: including those who work from
their own homes (called homeworkers)
ICLS = International Conference of Labour Statisticians convened by the
International Labour Organization

4.
INFORMAL EMPLOYMENT AS
% OF NON-AGRICULTURAL
EMPLOYMENT 2004-2010
Average & Range by Regions
South Asia: 82%
62% in Sri Lanka to 84% in India
Sub-Saharan Africa: 66%*
33% in South Africa to 82% in Mali*
East and Southeast Asia: 65%
42% in Thailand to 73% in Indonesia
Latin America: 51%
40% in Uruguay to 75% in Bolivia
Middle East and North Africa: 45%
31% in Turkey to 57% in West Bank & Gaza
Source: Vanek et al. 2014 WIEGO Working Paper No. 2.
*More recent data: 89% in Madagascar, 94% in Uganda (see ILOSTATS)

5.
INFORMAL ECONOMY IN AFRICA:
A COMPARATIVE PERSPECTIVE
Comparted to other developing regions,
 Africa is the region…
 where the informal economy was “discovered” - Keith Hart in Ghana and
ILO Mission to Kenya in early 1970s
 with the highest rates of informality - along with South Asia
 with impressive on-going research and debates on the informal economy
 Africa is also known for…
 very different rates of informality across the region - highest in West Africa,
lowest in South Africa, and quite low in North Africa
 relatively high concentration of informal employment in trade, commodity
production, and mining - less so in manufacturing
 relative high levels of female informal employment overall and, especially, in
trade and commodity production
 relatively high levels of informal institutions: trade networks, mutual aid
societies, savings-and-loan groups
 segmentation of informal economy and informal networks along ethnic lines
(not just race, gender and religion)
 low economic growth and Structural Adjustment Programs- have contributed
to high informality

6.
 Informality & Poverty
 Most informal workers are poor; most working poor are informally
employed
 Earnings are low and costs-plus-risks are high, on average, in the
informal economy
 Informal Economy & Cities
 Informal economy = broad base of urban workforce, enterprises and
output
 Informal workers & their livelihoods are directly impacted by city
policies, plans and practices
 Cites, as they modernize, are becoming increasingly hostile to the
informal economy: penalizing or criminalizing informal workers +
undermining or destroying their livelihood activities
Inclusive Cities, that support the working poor, are key
pathway to reducing urban poverty and inequality.
INFORMALITY & CITIES:
WIEGO POINT OF DEPARTURE

7.
WIEGO IN BRIEF
WIEGO is a global action-research-policy network
 goal & objectives: to improve status of the working poor, especially women,
in the informal economy through systemic change by increasing their Voice +
Visibility + Validity
 3 constituencies: organizations of informal workers +
researchers/statisticians + development professionals ► each constituency
elects representatives to the WIEGO Board of Directors
 defining feature: bridging ground reality of the working poor & mainstream
disciplines and discourses
 6 core programs: organizing/representation + statistics + global trade +
social protection + urban policies + law
 4 core functions: networking/capacity building of organizations of informal
workers) + research/statistics + good practice documentation + policy
analysis and dialogues
 scope: 147 members (42 countries) + 44 team members (14 countries) + 10
board members (7 countries) + activities in circa 50 countries
 scale: from Focal Cities (Accra, Bangkok, Delhi, Lima) to Global Forums
(this year, Habitat III and International Labour Conference General
Discussion on Global Value Chains)
 will turn 20 in 2017!

8.
WIEGO IN THE WORLD

9.
WIEGO “3 V” THEORY OF CHANGE:
VOICE + VISIBILITY►VALIDITY►POWER
Increased Organization
& Representation
▼
Increased Voice
Improved Statistics,
Research & Policy
Analysis
▼
Increased Visibility
Increased Validity or
Legitimacy
▼
Ability to Influence
Wider Environment

10.
WIEGO IN AFRICA

11.
WIEGO IN AFRICA
NETWORKS
StreetNet Intl. (2000)
Africa Domestic Workers
Network (2013)
Waste Picker Alliance
Home-Based Workers
Conference
PROJECTS
Inclusive Cities
Universal Health, OHS, Child
Care
Fair Trade
Law & Informality
Collective Bargaining/Platforms
FOCAL CITIES
Accra
Durban*
RESEARCH
Street Trade Regional Review
Informal Economy Budget
Analysis
Health & OHS
Informal Economy Monitoring
Study
Technology
STATISTICS
Statistical Briefs:
Ghana
Kenya
South Africa
ILO-WIEGO Data Base:
11 countries
(See ILOSTAT)
LOSTA

12.
INFORMAL ECONOMY MONITORING STUDY:
RESEARCH DESIGN
 Conceptual Framework
 Key Drivers of Change
 macroeconomic trends
 city government policies and practices
 value chain dynamics
 Responses by Informal Workers
 Mediating Institutions & Production Linkages
 Methods: combination of qualitative & quantitative
 Qualitative: Set of Focus Group Tools (developed with
Caroline Moser)
 15 FGs (5 workers each) per sector/city
 Quantitative: Survey Questionnaire
 150 workers per sector/city

13.
INFORMAL ECONOMY MONITORING STUDY:
CITIES & SECTORS
City Sector
Latin America
Belo Horizonte, Brazil Waste pickers
Bogotá, Colombia Waste pickers
Lima, Peru Street vendors
Africa
Accra, Ghana Street vendors
Durban, South Africa Street vendors, waste pickers
Nakuru, Kenya Street vendors, waste pickers
Asia
Ahmedabad, India Street vendors, home-based workers
Bangkok, Thailand Home-based workers
Lahore, Pakistan Home-based workers
Pune, India Waste pickers

14.
CITIES & STREET VENDORS
Insecure work space + harassment by local authorities, including
fines/bribes and confiscation of stock + evictions/relocations ►
loss of working hours + need to borrow to replenish working
capital ► increased interest payments and reduced earnings
 Insecure workspace, abuse of authority, and evictions/relocations
accounted for 44% of all Focus Group mentions of the city as a
driver of change; abuse of authority by police and local officials
was the only driver to be ranked in top three in every city
 Fruit and vegetable vendors twice as likely as other vendors to
experience insecurity, harassment, confiscations, and evictions –
and women are more like than men to sell fruit and vegetables
“[The] municipality is locking the street traders if they do not have a permit. Should they come
to your table or stall while you are away at the toilet, they will ask for permit; if others report
that you are on your way back, they will simply confiscate your stock.” (Fruit vendor, Durban)

15.
CITIES & WASTE PICKERS
Legal/regulatory/policy environment determines access to waste + state
resources - the policy environment varied across the study cities
 Belo Horizonte: municipality has formal partnership with MBOs and
supports waste pickers with access to waste, infrastructure, subsidies and
worker education
 Bogota, Durban and Nakuru: two thirds of the waste pickers reported lack
of access to waste and lack of work space as significant problems; half
also faced harassment
 Nakuru: worst situation for waste pickers as local authorities do not
recognize waste pickers or engage with them
 Access to waste is a major problem: 15% (BH) vs. 73% (Nakuru)
 Harassment is a problem: 27% (BH) vs. 50% (Nakuru)
 Regulations are a problem: 22% (BH) vs. 46% (Nakuru)
“The municipality harasses us because we don not have permits to go inside (the dump). They do not want
us to get in. They also chase away the cars that are helping us (by bringing us their recyclables).” (Waste
picker, Durban)

16.
CITIES & HOME-BASED WORKERS
Lack of /high cost of basic infrastructure services ► decreased production OR
increased expenditure on basic infrastructure services ► low earnings
 Survey Respondents: one-third reported lack of basic infrastructure services as a
problem (more so in Ahmedabad and Lahore than in Bangkok)
 Focus Groups: all 15 in Lahore and 6 (out of 15) in Ahmedabad ranked irregular
electricity supply and/or high price of electricity as major negative drivers
High cost of transport► high business costs ► low earnings or operating at a
loss
 Survey Respondents:
 transport costs comprised 30% of business costs
 25% of those who spent on transport operated at a loss
“Because there is no public transport, we have to walk to the contractor’s place.
While coming back, we have to carry the raw materials. During the monsoon season,
we face a lot of problems.” (Homeworker, Ahmedabad )

17.
KEY FINDINGS FROM OTHER
WIEGO RESEARCH IN AFRICA
 Occupational Health & Safety, Accra & Durban
 risks: high for informal workers, but under-researched
 regulations: designed for formal workers/workplaces, not informal workers/workplaces
 Informal Economy Budget Analysis, Accra
 revenue: significant amount of internally generated revenue from informal economy, mainly market
traders but also street vendors
 expenditure: trader-related expenditures =11.6 per cent of total expenditures in 2013 but only 8.1 per
cent in 2014
 Technology & Future of Informal Work, Durban
 improved tools & equipment: major deterrent to investment is threat of confiscation by local
authorities & lack of secure storage near workplace
 city-level technological systems: city-level choices – technology, design and privatization - re energy
supply, transport services and solid waste management have major impacts on informal workers
 Law & Informality, Accra & Cape Town
 reach of the state: most urban policies, regulations and bye-laws regulations impact the urban
informal workforce; many informal self-employed are registered with local authorities and pay taxes,
fees or bribes to local authorities
 inappropriate vs. appropriate regulations: in the absence of appropriate regulations, informal
workers are often criminalized; they want legal recognition and protection
Street Vendor Slogan in Accra: “Regulate Us, Don’t Criminalize Us”

18.
INCLUSIVE CITIES
FOR THE URBAN WORKING POOR:
KEY DEMANDS
 Protection
 home-based workers: housing rights as their home=workplace + mixed use
zoning regulations that allow commercial activities in residential areas
 street vendors: legal right to vend + secure vending site in good location
 waste pickers: legal right to access waste + to bid for solid waste
management contracts
 all: legal identity as legitimate workers/economic agents + social protection
 Promotion
 home-based workers: basic infrastructure services to improve
home=workplace
 street vendors: basic infrastructure services at vending sites
 waste pickers: equipment & infrastructure services, such as sorting-storage
sheds & compacting machines
 all: financial & business development services + affordable public transport
 Participation
 all: organization + representation in policy-making & rule-setting
institutions

19.
INCLUSIVE CITIES FOR
THE URBAN WORKING POOR:
KEY ENABLING CONDITIONS
 Guiding Principle: elected city officials and local administrators need to engage
positively with informal workers to explore mutual solutions.
 Platforms: several types of platforms can serve as a mechanism for ensuring productive
engagements between cities and urban informal workers.
 Information Sharing Platforms - space for sharing information and discussing
common interests on a regular basis between urban informal workers, government
authorities, and NGOs, researchers, and academics.
 Dialogue Platforms – facilitated dialogues between workers and government officials
for building awareness/understanding
 Negotiating Platforms - space for negotiation between urban informal workers and
government authorities on specific issues with authority to make agreements
 Necessary Inputs:
 capacity-building activities to help strengthen the advocacy capacity of membership-
based organizations (MBOs) of urban informal workers = Voice
 research, statistics and documentation to provide the information necessary to support
informed decision-making at the city level = Visibility
Note: these platforms, and the inputs into them, are the core methods of the WIEGO Focal
City approach: successfully developed and tested in Lima, Peru and Accra, Ghana and now
being expanded to Bangkok, Thailand and Delhi, India.

20.
POLICY VICTORIES FOR
STREET VENDORS, MARKET TRADERS &
MARKET PORTERS: ACCRA, GHANA
 WIEGO research ► advocacy with/for
organizations of informal workers:
 occupational, health and safety
 law and informality
 Informal Economy Monitoring Study
 Informal Economy Budget Analysis
 2000+ head porters (Kayayei) registered at a
subsidized rate in the Ghana National
Health Insurance Scheme
 Dialogue Platform established for informal
worker leaders/organizations to engage with
city authorities on an on-going basis►1000+
street vendors/market traders engaged with
city authorities on key policy issues
 Accra Metropolitan’s expenditures relating
to street vendors/market traders rose from 0.9
per cent in 2012 to 4.3 per cent in 2014.

21.
LEGAL VICTORIES FOR
STREET VENDORS: DURBAN, SOUTH AFRICA
 City informal economy policy and programme in
inner Durban/eThekwini (1999-2007) – provided
dedicated space, infrastructure (shelter,
walkways), technical support to street vendors
and other informal workers
 Asiye eTafuleni (AeT) founded by two ex-city
employees to provide design, legal and other
support to 6-7,000 street vendors in Warwick
Junction (2008)
 Legal Resources Center, at request of AeT and
with support from WIEGO among others, filed 2
successful cases against city plans to build a
mall in the middle of Warwick Junction
(2009)
 Legal Resources Center, again at request of AeT
and with support from WIEGO, filed successful
case to challenge power of municipality to
confiscate and impound street vendor goods
(2014-2015)

22.
CLOSING REFLECTIONS
 WIEGO is an action-research-policy network – our research
team are all involved in coordinating programme activities – so
we learn, as a network, through both action and research
 WIEGO’s approach to knowledge generation
 Inductive – building conceptual frameworks from ground
realities
 Descriptive – focusing on ground-level patterns and dynamics
 Policy-Oriented – for use by organizations of informal
workers in their on-going advocacy with dominant
stakeholders
 Capacity-Building Oriented – involving organizations of
informal workers in research design and analysis

23.
Thank You!
Eager to Hear Your
Questions & Comments!