The document discusses inclusive cities for the urban working poor based on lessons from Africa. It provides statistics showing the large percentage of informal employment in Africa and other regions. The WIEGO network aims to improve the status of informal workers through research, organizing, and policy engagement. Key findings from the Informal Economy Monitoring Study in multiple African cities show that insecure work spaces, harassment, and lack of infrastructure negatively impact street vendors, waste pickers, and home-based workers. The document outlines demands for protection, promotion and participation from cities and discusses enabling conditions like platforms for dialogue between informal workers and government. It provides examples of policy victories for street vendors in Accra and legal victories for street vendors in Durban achieved through WIEGO
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Inclusive cities for the urban working poor – lessons from Africa
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!
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
Thanks to Edward Paice and the Africa Research Institute for inviting me to speak this evening
And thanks to all of you for coming
When WIEGO was formed in 1997, the official statistical definition of the “informal sector” had recently been approved. And the terms “informal sector” and “informal economy” were used interchangeably. WIEGO and SEWA felt something was missing – informal workers who did not work for informal enterprises. So together we began promoting an employment-based definition of informality. Little did we know, that our name foreshadowed that new concept and term “informal employment”.
Informal employment = more than half of non-ag employment in most developing regions
If agriculture is included, the share of informal employment is higher still – but no international agreement yet on how to measure informality in agriculture
Again, WIEGO worked with the ILO to generate these regional estimates and to create a joint data base on the ILO website
Research and debates: not only in development studies but also urban planning
Informal employment is a greater source of employment for women than for men in 3 (out of 5) developing regions:
South Asia: 83% women, 82% men
Sub-Saharan Africa: 74% women, 61% men
Latin America and the Caribbean: 54% women, 48% men
Informal employment is an equal source of employment for women and men in South East Asia: 66%.
Informal employment is a greater source of employment for men, than women, in the Middle East & North Africa: x men, y women
But, in all regions men comprise a greater share of the informal workforce than women due to relatively low female labour force participation rates.
WIEGO = part think tank (the organization) and part social movement (the network)
WIEGO Theory of Change:
Increased Organization and Representation ► Increased Voice
Improved Statistics, Research & Policy Analysis ► Increased Visibility
Increased Voice + Visibility► Increased Validity or Legitimacy
Increased Validity ► Ability to Demand Changes in the Wider Policy, Regulatory & Legal environment
Ability to Demand Changes in the Wider Environment►
Ability to Realize & Secure Economic Rights
Cote d’Ivoire
Lesotho
Liberai
Madagascar
Mali
Mauritius
Namibia
South Africa
Tanzania
Uganda
Zambia
Zimbabwe
Significance:
HBWs = significant share of urban employment, especially women’s, in Asia – over 30% of women’s employment in India and Pakistan
SVs = represent large share of urban informal employment, especially in African cities
12 to 24 per cent of total urban informal employment in cities of Sub-Saharan Africa (ILO and WIEGO 2013)
11 per cent of total urban employment, 14 per cent of total urban informal employment in India (ibid.)
9 per cent of total urban informal employment in Peru (ibid.)
WPs = around 1% of urban workforce around the world
Note: the Accra sample include market traders who do not face these problems, except the fear of evictions and relocations. Their concerns were lack of infrastructure services as well as fire and safety hazards in the built markets.
When dialogues and negotiations fail, organizations of informal workers may resort to litigation.